Download Federal Greenhouse Gas Regulations

Federal Greenhouse Gas
Regulations
Paul F. Simon
Regional Climate Change Program Advisor
U.S. Environmental Protection Agency
Region 2
Regulatory Initiatives
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Endangerment Finding
Motor Vehicle Standards
Permitting Requirements for Stationary Sources
GHG Reporting Rule
New Source Performance Standards for Power
Plants and Petroleum Refineries
• Renewable Fuel Standard
• Geologic Sequestration Rule
EPA Regulatory Actions on Greenhouse Gas
Emissions
• Taking action on climate change is one of the top seven
priorities Administrator Jackson has set for the EPA
• The Administrator’s principles to guide EPA regulatory
actions on GHG’s:
– Common Sense
– Cost-Effectiveness
– Clarity, Achievability and Flexibility
– Transparency
– Focus on the largest emitters
EPA Regulatory Actions on Greenhouse Gas Emissions
U.S. Supreme Court Decision
GHG
Endangerment
Finding
First GHG
Standards for
Passenger
Vehicles
Clean Air Act
Process for
Stationary
Sources
Supreme Court Decision
• In Massachusetts v. EPA (2007), the Supreme
Court held that GHGs are air pollutants covered
by the Clean Air Act and that EPA must determine
whether or not emissions of GHGs from new
motor vehicles cause or contribute to air
pollution which may reasonably be anticipated to
endanger public health or welfare.
Endangerment Finding
• Issued by EPA on Dec. 15, 2009 in response to the Supreme
Court decision and a petition that EPA issue standards to
control emissions of GHGs from new motor vehicles.
• Findings:
– Six greenhouse gases* in combination endanger public
health & welfare.
– The combined emissions of these GHGs from new motor
vehicles and motor vehicle engines contribute to the GHG
air pollution that endangers public health and welfare.
______________
• (carbon dioxide, methane, nitrous oxide, hydrofluorocarbons,
perfluorocarbons, and sulfur hexafluoride )
Endangerment Finding
• “Warming of the climate system is unequivocal, as is now
evident from observations of increases in global average air
and ocean temperatures, widespread melting of snow and
ice, and rising global average sea level.”
• “The scientific evidence is compelling that elevated
concentrations of heat trapping GHGs are the root cause of
recently observed climate change.”
• “There continues to be no reason to expect that, without
substantial and near-term efforts to significantly reduce
emissions, atmospheric levels of greenhouse gases will not
continue to climb, and thus lead to ever greater rates of
climate change.”
Endangerment Finding
• Adverse public health impacts from climate change
include:
– Health impacts from increased levels of ambient
ozone in broad areas of the country
– Increased number of heat-related deaths
– Health impacts from increased extreme-weather
events
• Motor vehicles in U.S. account for 4% of total global
GHG emissions and thus they contribute to the
climate change problem.
GHG Standards for Passenger Vehicles
• Endangerment Finding made it necessary
for EPA to issue standards to control GHG
emissions from motor vehicles.
• Standards issued in April 2010 by EPA and
NHTSA -- the first-ever GHG emission
standards under the CAA.
• Standards arrived at through cooperative
process with automakers and states.
• Apply to model year 2012-2016 cars and light trucks.
• Fuel economy will be increased by ~5%/year.
• The standards set an average emissions level of 250 grams of CO2
per mile in model year 2016—equivalent to 35.5 mpg if met solely
through fuel economy.
GHG Standards for Passenger Vehicles
• The standards will save consumers more than $3,000 over the
lifetime of a model year 2016 vehicle
• Will reduce greenhouse gas emissions by nearly 950 million
metric tons and conserve 1.8 billion barrels of oil over the
lifetime of these model year 2012-2016 vehicles.
• July 2011: EPA and NHTSA announce plan to propose fuel
efficiency and GHG emission reductions for model year 20172025 light-duty vehicles.
• Plan calls for steady improvement in efficiency and emissions
such that by MY 2025, on an average industry fleet-wide basis,
vehicles would need to meet the equivalent of 54.5 miles per
gallon, reducing oil consumption by 2.2 million barrels/day.
• EPA and NHTSA are expected to detail this plan in a proposed rule
very shortly.
GHG Standards for Heavy- and Medium-Duty
Trucks
• EPA and NHTSA have also established the
first-ever program to reduce GHG
emissions from and improve fuel efficiency
of medium and heavy-duty vehicles
(semi trucks, buses, etc.).
• Rules finalized on Aug. 2011 and apply to
model years 2014-2018.
• Require up to 20% reduction in fuel consumption and GHG
emissions by MY 2018.
• Projected to reduce GHG emissions by ~270 million metric tons
and save 530 million barrels of oil.
• A semi truck owner could realize net savings of $73,000 through
reduced fuel costs over the truck’s useful life.
GHGs from Stationary Sources
• Because EPA’s light-duty vehicle
standards for GHGs took effect on
January 2, 2011, on that date CAA
permitting requirements (PSD and
Title V req’mts) began to apply to
stationary sources of GHGs as well.
• EPA issued a rule in 2010 which
tailored the CAA permitting program
for GHGs, so that the permitting req’mts
are focused on the largest GHG emitters.
• The following GHGs are covered:
- Carbon dioxide
- Nitrous oxide
- Perfluorocarbons
- Methane
- Hydrofluorocarbons
- Sulfur hexafluoride
Prevention of Significant Deterioration (PSD): Permitting
Steps under the Tailoring Rule
EPA’s 2010 “Tailoring Rule” phases in the Clean Air Act permitting
requirements for stationary sources of greenhouse gases in several
steps:
Step 1 - January 2, 2011 to June 30, 2011:
Only sources already subject to PSD “anyway”
New sources: 75,000 tons per year (tpy) of carbon dioxide equivalent (CO2e)
Modifications: 75,000 tpy CO2e
Step 2 - July 1, 2011 to June 30, 2013:
Continue Step 1 sources plus other large GHG emission sources
New sources: 100,000 tpy CO2e
Modifications: 75,000 tpy CO2e
Step 3 - Rulemaking to conclude no later than July 1, 2012:
Evaluate whether additional sources of GHG emissions should also be subject to
permitting req’mts., but the permitting threshold would be no lower than
50,000 tpy.
Best Available Control Technology (BACT) Basics
• Since EPA is the PSD permitting authority in P.R. and U.S.V.I., EPA
plays the key role in determining BACT for each project in P.R. and
U.S.V.I where PSD is triggered.
• EPA Guidance on PSD and Title V Permitting for GHGs (March 2011):
– BACT determinations will continue to be a state- and projectspecific decision.
– Permitting authorities can continue to use the five-step case-bycase BACT selection process that has been used under the Clean
Air Act for many years.
– The guidance emphasizes the importance of BACT options that
improve energy efficiency.
– Carbon Capture and Sequestration is currently an expensive
technology and unlikely to be selected as BACT in most cases.
– Specific types of fuels or facility design are neither required nor
precluded by the guidance.
Regulation of Biomass Sources
• July 2011: EPA issues a rule deferring for 3 years the application
of the Clean Air Act PSD and Title V permitting requirements to
carbon dioxide emissions from bioenergy and other “biogenic”
stationary sources.
• Biogenic CO2 emissions are emissions of CO2 directly resulting
from the combustion or decomposition of biologically-based
materials other than fossil fuels and mineral sources of carbon.
• Purpose of the 3-year deferral is to give EPA time to conduct a
detailed examination of the science associated with biogenic
CO2 emissions and other technical issues.
• EPA intends to develop a final rule by the conclusion of the
3-year deferral period regarding how biogenic CO2 emissions
should be treated and accounted for in PSD and Title V
permitting.
Greenhouse Gas Reporting Rule
Goal: To provide a better understanding of where U.S. GHG
emissions are coming from and help guide development of
policies and programs to reduce emissions.
• Directed by Congress in 2008 Appropriations Act.
• Applies to facilities emitting large quantities of GHGs (≥25,000 metric tons
of CO2e. There are also 22 “all-in” categories).
• Requires annual reporting by 41 source categories, accounting for 85-90%
of U.S. GHG emissions, including 33 types of direct emitters and 6 types of
suppliers of fuel and industrial GHGs.
• First annual reports were due September 30, 2011. Approx. 6700 reports
submitted.
• Public release of data expected in December 2011.
• Some categories of sources don’t need to submit their first reports until
2012 (some by March 31, 2012, others by Sept. 28, 2012).
Emission Standards for Power Plants & Refineries
• EPA will soon be proposing GHG emission standards
(“New Source Performance Standards” under the Clean
Air Act) for fossil fuel-fired power plants and petroleum
refineries.
• The standards will set a limit on the amount of GHGs that
new or modified power plants and refineries may emit.
• Also, EPA will issue guidelines that states and territories
will have to address in preparing their own plans to
control GHG emissions from existing power plants and
refineries.
• EPA’s draft rule on power plant GHG emissions now
undergoing OMB review.
Renewable Fuel Standard (RFS)
• Program required by Congress in order to ensure that transportation
fuel sold in the U.S. contains a minimum volume of renewable fuel.
• The increased use of renewable fuels required by the RFS is expected
to reduce dependence on foreign sources of crude oil and increase
domestic sources of energy, while at the same time providing
reductions in GHG emissions.
• Goal is to increase the use of renewable, low-carbon fuels in motor
vehicles to 36 billion gallons by 2022 and decrease GHG emissions.
• The renewable fuels must achieve GHG emission reductions
compared to the gasoline and diesel fuels they replace.
• EPA is required to set renewable fuel standards each November for
the following year based on gasoline and diesel projections from the
Energy Information Administration, and also set an annual cellulosic
biofuel standard.
Other Power Plant Regulations
• EPA has proposed new emission standards to
cut hazardous air pollutants (e.g., mercury)
from coal- and oil-fired power plants. The rule
is expected to be finalized shortly.
– Could have co-benefit of reducing GHG
emissions.
Litigation
• EPA’s various GHG regulatory actions are currently being
challenged in court. Litigation pending in DC Circuit.
• American Electric Power Co. v. Connecticut (Supreme Court,
June 20, 2011):
– State and local governments sued five major power companies
under the federal common law of nuisance to seek abatement of
the power co.’s’ contributions to global climate change.
– Plaintiffs sought a court order setting CO2 emission limits.
– HELD: Clean Air Act and the EPA rulemaking actions that the Act
authorizes displace any federal common-law right to seek
abatement of CO2 emissions from fossil fuel-fired power plants.