GHG Tailoring Rule

Highlights:

Jan 2, 1011 to June 30, 2011:
Only sources that are major due to emissions of a non-GHG pollutant would be subject to PSD and Title V if their CO2e PTE is 75,000 tpy or more.

July 1, 2011 and on:
Sources would not have to be major for a non-GHG in order to be major due to GHG emissions. The major source threshold for PSD and Title V will be 100,000 tpy CO2e. The major modification threshold for PSD will be 75,000 tpy CO2e.

By July 1, 2012:
EPA will complete rulemaking to address smaller sources of GHGs.

The rule does not provide any BACT guidance, but EPA recognizes the need and is working on it. They plan to issue technical guidance and tools by June 2010 and policy guidance by the end of 2010.

Fact sheet link

Final rule link

Part 71 Minor Source Transition Policy

2/11/2010 e-mail from EPA R8 to Marathon Oil Company regarding implementation of the "Part 71 50% PTE Transition Policy." Link to the policy memo is included at the end of the post.

_________________________________________
Mr. Blanco,

EPA Region 8 received your letters dated February 10, 2009, announcing Marathon Oil's intention of utilizing the Part 71 50% PTE Transition Policy. Three facilities were identified in your submittals:

--Wolding 14-24H Oil & Gas Production Facility operating on the Fort Berthold Reservation

--Jay Sandstrom 34-31H Oil & Gas Production Facility operating on the Fort Berthold Reservation

--AH 34-23H Oil and Gas Production Facility operating on the Fort Berthold Reservation.

The purpose of the Transition Policy is allow those sources not otherwise subject to Part 71 permitting whose PTE is less than 50% of the trigger level for Part 71 (100 tpy) to avoid part 71 permitting until such time that a minor pre-construction permitting program is promulgated for sources operating in Indian Country.

This policy does not apply to avoiding pre-construction PSD permitting or NESHAP standards. It only applies to avoiding the Part 71 operating permit program for those sources who are not subject to any other CAA requirements and whose actual emissions for the previous year are less than or equal to 50 tpy. Please note that Part 71 is triggered upon start-up and an application is due with in one year of the start-up date.

Examples of ways that facilities can otherwise trigger Part 71 as defined in 71.3 and in the transition policy memo you attached to each of your letters, includes:

-- Any major source. Major source as defined in Part 71 includes major PSD and NESHAP sources.

-- Any source (including minor sources) subject to NSPS (part 60) requirements promulgated after July 21, 1992 unless the NSPS specifically exempts minor sources from Part 71 permitting.

-- Any source (including minor sources)subject to NESHAP (part 61 and 63 ) requirements promulgated after July 21, 1992 unless the NESHAP specifically exempts minor sources from Part 71 permitting.

-- Any Acid Rain source

You have identified each of these facilities as having potential uncontrolled VOC emissions of 106.82, 102.94 and 135.65 tons per year each, respectively; and actual VOC emissions of 25.18, 25.18, and 35.97
tpy, respectively. In addition, your submittal states that these facilities are not otherwise subject to Part 71.

Based on the information you provided, it appears these facilities are eligible for the Part 71 permitting exemption under the Part 71 50% PTE Transition Policy.

Please be aware that upon promulgation of the Federal Minor New Source Review Permitting program for sources located in Indian Country, the 50% PTE Policy will no longer be in effect. All facilities that utilized
this policy will be required to submit a minor NSR application to the EPA to make the actual emissions legally enforceable.

If you have any questions, please feel free to call or email me.

Kathy

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Kathleen Paser
Region 8 Air Program
303-312-6526
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US EPA Region 8
1595 Wynkoop Street
M/C 8P-AR
Denver, Colorado 80202
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Link to 1999 Transition Policy Memo

Minor Sources in Indian Country - EPA Policy

March 7, 1999 policy memo.

"This memorandum discusses EPA’s transition policy concerning potential to emit (PTE) limits for stationary air pollution sources located in Indian country. Under this policy, EPA would treat a source as nonmajor for the purposes of the Federal Operating Permits Program (part 71) if its actual emissions area nd remain below 50 percent of the PTE thresholds for major source status, for every consecutive 12-month period (beginning with the 12 months immediately preceding the date of this memorandum) and it maintains adequate records to demonstrate that its actual emissions are kept below these levels."

EPA - Policy and Guidance Record - Potential to Emit (PTE) Transition Policy for Part 71 Implementation in Indian Country