1. EPA Region IV December 11-12, 2007 Atlanta, GA Case Study: Permitting Mississippi’s Experiences

2.  Three Permitted Sites –None have completed construction  Two Sites with Permits Pending –One received approval to begin construction prior to receiving permit  Met specific criteria for pre-permit construction approval –One application is under our normal processing Ethanol Production

3.  Processing efficiency has improved during the last 30 years.  In 2005, the use of ethanol reduced the U.S. trade deficit by $8.7 billion by eliminating the need to import 170 million barrels of oil. –Source: LECG, LLC January 2006 Ethanol Production

4.  Nine Permitted Sites  Only a few have been constructed and are producing. Biodiesel

5.  Two Sites with Permits Pending  Additional Pre-Application Meetings Conducted Biodiesel

6.  Production Incentives –2002 Farm Bill Commodities Credit Corporation –MS House Bill 1130 of 2002  Established ethanol production incentives outlined in MS Code 69-51-5. –MS House Bill 960 of 2005  Revised 69-51-5 to include biodiesel production incentives –MS 69-51-5 remains an unfunded program  Tax Incentives –IRS Tax Credits Driving Factors

7.  Clean Air Act –New Source Review  Major Source Threshold? –New Source Performance Standards –NESHAP  Specific MACT?  State Requirements Applicable Air Emission Regulations

8.  Clean Water Act –NPDES Effluent Guidelines? –NPDES Storm Water  State Requirements –Pretreatment Effluent Guidelines? –Pretreatment SIU? –No Discharge Permit? Applicable Wastewater and Storm Water Discharges

9.  Very little from EPA prior to 2006  Considered what other states had done in permitting –Varied somewhat Practical Guidance

10.  Most proposed ethanol and biodiesel production facilities identified 2869 as the appropriate SIC Code. (Industrial Organic Chemicals, Not Elsewhere Classified)  EPA clarified the major source threshold for NSR May 1, 2007.  Evaluate NSPS applicability –Subparts A, RRR, NNN, VV, etc.  Evaluate MACT applicability –Subparts A, B, FFFF, GGGG, etc. Conservative Approach Air Emissions

11. Multimedia Guidance for Ethanol Production Multimedia Guidance for Ethanol Production http://www.epa.gov/region07/priorities/agriculture/ethanol_plants_manual.pdf

12.  NPDES Storm Water Construction  NPDES Storm Water Baseline  NPDES Non-Storm Water Discharges –Process  Applicable Effluent Guidelines? –Non-Process  Pretreatment (Indirect) Discharges  Wastewater Treatment with No Discharge Facility Discharges

13. Good Experiences

14. Bad Experiences

15. More Bad Experiences

17. Bryan Collins, P.E., BCEE Chief, Energy & Transportation Branch Environmental Permits Division Mississippi Department of Environmental Quality 601-961-5239Bryan_Collins@deq.state.ms.us Contact Information

18. Questions?