On May 13, the U.S. Environmental Protection Agency (EPA) finalized a "Tailoring Rule" that requires greenhouse gas (GHG) emissions permits for the construction, renovation and operation of large facilities. The Clean Air Act New Source Review Prevention of Significant Deterioration (PSD) and title V stationary source permit programs were triggered for GHGs once the agency began regulating such gases under the Act, which happened when it finalized first-ever GHG emission limits for new motor vehicles on April 1. The Tailoring Rule temporarily raises the emissions thresholds specific to GHGs that apply to large facilities and sets a timetable for phasing in the permitting of medium and possibly even small facilities.
AGC, its Chapters and members have cautioned EPA about the implications of using the Clean Air Act to regulate GHG emissions. EPA admits that without the Tailoring Rule, the lower emissions thresholds would have taken effect automatically for GHGs on January 2, 2011. PSD and title V requirements at the lower thresholds would have lead to dramatic increases in the number of required permits—tens of thousands of PSD permits and around six million title V permits. Right now, PSD permits typically can take a year to obtain and states only manage a few hundred each year. Existing title V permits number around 15,550. If the lower emissions thresholds had remained in place for GHGs, new construction and renovation would literally have come to a halt from permitting delays.
Under the Tailoring Rule, the new emissions thresholds and timelines for permitting under the Clean Air Act PSD and title V Operating Permit programs are as follows:
- In January 2011, the PSD and title V permitting requirements will kick in for large facilities that are already obtaining Clean Air Act permits for other pollutants. Those facilities will be required to include GHGs in their permit if they increase these emissions by at least 75,000 tons per year (tpy).
- In July 2011, these permitting requirements will expand to cover all new facilities with GHG emissions of at least 100,000 tpy and modifications at existing facilities that would increase GHG emissions by at least 75,000 tpy. Permits must demonstrate use of best available control technologies to minimize GHG emission increases when facilities are constructed or significantly modified.
- In 2012, EPA will introduce another rulemaking to establish the phasing-in of medium sources and decide whether certain smaller sources can be permanently excluded from permitting requirements. If established, EPA states that it would not require permitting for sources with GHG emissions below 50,000 tpy prior to April 2016.