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

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

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 CO 2  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

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)

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)

Scenario A  Scenario:  Existing Title V minor that will become subject to Title V in Step 2 (GHG PTE >100,000 tpy CO 2 e 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

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)

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.

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.

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

Questions?