WASHINGTON, DC, May 14, 2010 (ENS) – The U.S. Environmental Protection Agency unveiled a final rule to address greenhouse gas emissions from the largest industrial facilities, while shielding millions of small sources of greenhouse gases from Clean Air Act permitting requirements.
Announced Thursday, the rule will address facilities like coal-fired power plants and oil refineries that are responsible for 70 percent of the greenhouse gases from stationary sources that threaten American's health and welfare.
The rule flows from a determination by EPA Administrator Lisa Jackson last December that the emission of greenhouse gases endanger the public health and welfare. This endangerment finding paved the legal path for this so-called "tailoring" rule, which sets greenhouse gas emissions thresholds to define when permits under the Clean Air Act's New Source Review program are required for new and existing facilities.
"After extensive study, debate and hundreds of thousands of public comments, EPA has set common-sense thresholds for greenhouse gases that will spark clean technology innovation and protect small businesses and farms," said Administrator Jackson introducing the rule.
Senator John Kerry, the Massachusetts Democrat who co-authored the American Power Act introduced in the Senate on Wednesday, said the EPA rule increases the urgency of Senate action on energy and climate legislation. The bill establishes a nationwide cap on greenhouse gas emissions and a market for trading emissions allowances.
EPA's phased-in approach will start in January 2011, when Clean Air Act permitting requirements for greenhouse gases will kick in for large facilities that are already obtaining Clean Air Act permits for other pollutants. Those facilities will be required to include greenhouse gases in their permit if they increase these emissions by at least 75,000 tons per year.
In July 2011, Clean Air Act permitting requirements will expand to cover all new facilities with greenhouse gas emissions of at least 100,000 tons per year and modifications at existing facilities that would increase GHG emissions by at least 75,000 tons per year.
These permits must demonstrate the use of best available control technologies to minimize greenhouse gas emission increases when facilities are constructed or significantly modified.
Senate Republicans oppose the regulation of greenhouse gas emissions under the Clean Air Act. Commenting Thursday, Oklahoma Senator James Inhofe put the Obama administration on notice that the rule will be challenged in court.
While Inhofe and other Senate Republicans are opposed to EPA regulation of greenhouse gases, they are also opposed to the American Power Act introduced by Senator Kerry and co-author Senator Joe Lieberman, a Connecticut Independent.
The American Forest & Paper Association objects to the rule because it fails to differentiate power generated by burning biomass, such as logging slash and agricultural waste, from fossil-fuels.
"The forest products industry is proud of its voluntary reductions in greenhouse gases and our increasing reliance on domestically grown, renewable and carbon neutral biomass to power our mills – all of which are important for a sustainable future," said Harman.
"This rule is another example of why the Clean Air Act is the wrong tool to regulate greenhouse gases," she said.
But meanwhile, the EPA's final rule governing greenhouse gas emissions will take effect in January and ramp up in July 2011.
Under the new emissions thresholds for greenhouse gases that begin in July 2011, EPA estimates approximately 900 additional permitting actions covering new sources and modifications to existing sources would be subject to review each year.
In addition, 550 sources will need to obtain operating permits for the first time because of their greenhouse gas emissions.
In April 2010, EPA set the first national greenhouse gas tailpipe standards for passenger cars and light trucks.
When greenhouse gas emissions limits for these vehicles go into effect in January 2011, EPA is also required to address greenhouse gas emissions from stationary sources under the Clean Air Act's permitting programs, which it is doing in the final rule.
The final rule addresses a group of six greenhouse gases: carbon dioxide (CO2), methane (CH4), nitrous oxide (N2O), hydrofluorocarbons (HFCs), perfluorocarbons (PFCs), and sulfur hexafluoride (SF6).
EPA issued a proposed rule in October 2009 and held a 60-day public comment period. The agency received about 450,000 comments, which were reviewed and considered during the development of the final rule.