EPA Announces Rule for Major Greenhouse Gas Emitters

Date: May 13, 2010

Source: US EPA

The EPA has unveiled a final rule for regulating major emitters of greenhouse gases (GHGs), like coal-fired power plants, under the Clean Air Act (CAA). Beginning in July 2011, new sources of at least 100,000 tons of GHGs per year and any existing plants that increase emissions by 75,000 tons will have to seek permits. In the first two years, the EPA expects the rule to affect about 15,550 sources, including coal-fired plants, refineries, cement manufacturers, solid waste landfills and other large polluters said Gina McCarthy, the agency's assistant administrator. Last fall, EPA said it was looking to set the bar at 25,000 tons per year, which would have imposed the permit requirement on smaller entities such as family farms and large apartment buildings. Intense industry lobbying, including that from the waste industry, seems to have influenced the agency's decision. Last year the EPA issued a finding that carbon dioxide and other GHGs posed a threat to human health, which under the CAA allowed the agency to regulate them. The Obama administration later made it clear that the finding was meant to push Congress to supersede the agency by passing its own climate change legislation.

EPA PRESS RELEASE

May 13, 2010

  • EPA Sets Thresholds for Greenhouse Gas Permitting Requirements

  • Small businesses and farms will be shielded

The U.S. Environmental Protection Agency (EPA) today announced a final rule to address greenhouse gas (GHG) emissions from the largest stationary sources, while shielding millions of small sources of GHGs from Clean Air Act permitting requirements. The phased-in, common-sense approach will address facilities like power plants and oil refineries that are responsible for 70 percent of the greenhouse gases from stationary sources that threaten American's health and welfare.

"After extensive study, debate and hundreds of thousands of public comments, EPA has set common-sense thresholds for greenhouse gases that will spark clean technology innovation and protect small businesses and farms," said EPA Administrator Lisa P. Jackson. "There is no denying our responsibility to protect the planet for our children and grandchildren. It's long past time we unleashed our American ingenuity and started building the efficient, prosperous clean energy economy of the future."

EPA's phased-in approach will start in January 2011, when Clean Air Act permitting requirements for GHGs 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, Clean Air Act 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. These permits must demonstrate the use of best available control technologies to minimize GHG emission increases when facilities are constructed or significantly modified.

Under the new emissions thresholds for GHGs that begin in July 2011, EPA estimates approximately 900 additional permitting actions covering new sources and modifications to existing sources would be subject to review each year. In addition, 550 sources will need to obtain operating permits for the first time because of their GHG emissions.

In April 2010, EPA set the first national GHG tailpipe standards for passenger cars and light trucks. When GHG emissions limits for these vehicles go into effect in January 2011, EPA is also required to address GHG emissions from stationary sources under the Clean Air Act's permitting programs, which it is doing in the plan outlined today.
The final rule addresses a group of six greenhouse gases: carbon dioxide (CO2), methane (CH4), nitrous oxide (N2O), hydrofluorocarbons (HFCs), perfluorocarbons (PFCs), and sulfur hexafluoride (SF6).

EPA issued a proposed rule in October 2009 and held a 60-day public comment period. The agency received about 450,000 comments, which were carefully reviewed and considered during the development of this final rule.

More information: www.epa.gov/nsr/actions.html.

For more information, contact:
Cathy Milbourn
202-564-7849
202-564-4355
milbourn.cathy@epa.gov.

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