Washington (Platts)--3Jul2012/224 pm EDT/1824 GMT

The US Environmental Protection Agency said Tuesday it will maintain its current greenhouse gas thresholds that target power plants, refineries and other large facilities while streamlining flexibility with emission limits applied source-wide rather than at specific emission points.

The rule, called the GHG Tailoring Rule Step 3, will take effect 30 days after it appears in the Federal Register.

With this final rule, EPA will not lower current GHG thresholds for large facilities considered major GHG sources that must obtain permits under the Clean Air Act's "prevention of significant deterioration" program and Title V provisions.

The agency said at this point state and local permitting authorities have not had enough time to develop sufficient resources and expertise to expand their GHGs permitting requirements to cover additional, smaller sources of these pollutants linked to climate change.

Current GHG thresholds required for a PSD permit are 100,000 tons per year carbon dioxide equivalent for new facilities, and an increase in GHG emissions by at least 75,000 tons/year CO2e for existing facilities with emissions of at least 100,000 tons/year CO2e emissions. New and existing sources with GHG above 100,000 tons/year CO2e must also get operating permits under Title V.

These thresholds were established by the agency in its 2011 Tailoring Rule aimed at reducing GHG emissions from power plants, refineries and other large stationary sources.

The final rule for Step 3, however, will revise provisions to streamline the PSD permitting process through "plantwide applicability limitations," or PALs, as a means to help state and local permitting agencies.

PSD PERMITS ISSUED

Under these revisions, a facility that emits or has the potential to emit more than 100,000 tons/year CO2e yet emits other regulated pollutants at "minor source levels" can apply for a GHG PAL and maintain its "minor source status."

With a PAL, a facility can undergo modifications without triggering PSD requirements for GHGs as long as the emissions stay at or below the limit set by its PAL.

EPA said that as of May 21, the federal agency and state permitting authorities have issued 44 PSD permits addressing GHG emissions. Those permits have required new facilities and existing facilities that make major modifications to implement energy efficiency measures to reduce their GHG emissions, the agency said.

The GHG Tailoring Rule addresses six greenhouse gases: carbon dioxide, methane, nitrous oxide, hydrofluorocarbons, perfluorocarbons and sulfur hexafluoride.

Industry and environmentalists Tuesday were still mulling the final rule that phases in step three of the Tailoring Rule. Further review of the rule is expected by the agency in a couple years to determine whether there will be a lowering of the threshold in the future.

"EPA's greenhouse gas regulations continue to require businesses wishing to expand to jump through unnecessary requirements, slowing business expansion and job creation that America needs to help strengthen our economy," said Howard Feldman, the American Petroleum Institute's director of regulatory and scientific affairs.

--Cathy Cash, cathy_cash@platts.com
--Edited by Robert DiNardo, robert_dinardo@platts.com

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