Tailoring Rule - Title V Scenarios

1. Tailoring Rule - Title V Scenarios July 20, 2010 Katherine N. Blue Principal Consultant, Climate Change Services Troutman Sanders/Trinity Consultants PSD and Title V Tailoring Rule Seminar trinityconsultants.com

2. Founded 1974 Offices nationwide Regulatory compliance and environmental management services for industry Historical focus in air permitting and regulatory compliance ISO 9001 Certified Introduction – Trinity Consultants

4. New GHG Applicable Requirements • PSD BACT - BACT emission limitations (and related monitoring/recordkeeping requirements) from a PSD permitting action • New Source Performance Standard (NSPS) - NSPS limitation on CO2 • State-Only Requirements - state/regional cap and trade or state GHG reporting requirement (possibly) • Reporting Rules - EPA Mandatory Reporting Rule is not an applicable requirement under Title V

5. General Title V Requirements • Deviation reporting every six months • Annual compliance certifications (ACCs) • Renewal applications every five years • Emissions inventory annually and due with renewals (state-dependent) • Compliance Assurance Monitoring (CAM)

6. Scenarios for Title V Regulation • Scenario A –existing Title V minor that will become subject to Title V in Step 2 • Scenario B – existing Title V major, pending Title V permit application when GHGs become subject to regulation in Step 1 • Scenario C – existing Title V major, incorporation of new GHG applicable requirements • Scenario D – existing Title V minor that will become subject to Title V in Step 2 (but wants to take a limitation to remain minor)

7. Scenario A • Scenario: • Existing Title V minor that will become subject to Title V in Step 2 (GHG PTE >100,000 tpy CO2e on and after July 1, 2011) • Requirements: • Submit permit application within 12 months after the source becomes subject to the program (or such earlier depending on state) – generally by July 1, 2012

8. Scenario A • Characterization of New Title Vs • EPA estimating new Title V sources = 550 • Expectation that most sources will already be subject to applicable requirements under the CAA as they have been historically subject to regulation (e.g., NSPS) • Industrial/general manufacturing sources, large landfills, and oil and gas production and commercial sources such as large hospitals • Few “empty permits” although there may be permits “empty” for GHG purposes – many more “empty requirements” under Step 3 (will work to potentially exclude those with “empty permits” under “absurd results” doctrine)

9. Scenario B • Scenario • Existing Title V major, pending Title V renewal when GHGs become subject to regulation in Step 1 • Requirements • Additional requirements may become applicable to a source, after submittal of renewal (but prior to draft permit), source must supplement its application (and ensure compliance at time of permit issuance) • State may also request additional information from the source.

10. Scenario C • Scenario • Existing Title V major, incorporation of new GHG applicable requirements • Requirements • For new applicable requirements through a PSD permit, must revise Title V permit within 12 months or commencing operation (or earlier, state dependent). • If source becomes subject to additional applicable requirements, agency required to reopen permit if there are 3+ years remaining and the requirements will be in effect prior to the permit expiration date.

11. Scenario D • Scenario • Existing Title V minor that will become subject to Title V in Step 2 (but wants to take a limitation to remain minor) • Requirements • Work with state to obtain minor NSR permit limitations to limit PTE to less than 100,000 tpy CO2e • Would need to have limitations in place prior to July 1, 2012 (or earlier – state dependent) to avoid requirement to obtain Title V permit • HOWEVER, remember that a new Title V major source (as of July 1, 2011) without PTE limitations will also be PSD major (and therefore needing to track modifications to ensure that PSD SERs are not tripped – e.g., 40 tpy NOx, 40 tpy SO2, 15 tpy PM10, 10 tpy PM2.5, 75,000 tpy CO2e (and 0 tpy GHG mass basis)…..subject to further state/EPA guidance on treatment of minor sources

12. Questions?