BACT to the Present: New Permitting Guidance Could Affect Industry
In November 2010, the U.S. Environmental Protection Agency (EPA) released PSD and Title V Permitting Guidance for Greenhouse Gases to help state and local air quality agencies to incorporate greenhouse gases (GHGs) into permits for certain large utility and industrial emission sources.
Major sources of regulated air pollutants have long been subject to permitting under the New Source Review Prevention of Significant Deterioration (PSD) and Title V Operating Permit programs of the Clean Air Act. Under PSD, applicable new and modified facilities must implement “best available control technology” (BACT) to mitigate air pollutant emissions.
BACT has traditionally been applied to such air pollutants as nitrogen oxides (NOx), sulfur dioxide (SO2), volatile organic compounds (VOCs), and particulate matter, among others. BACT, which includes techniques, operating practices, and material and fuel characteristics as well as technologies, is determined on a case-by-case basis considering availability, energy, environmental and economic impacts.
A series of actions emerging from a 2009 U.S. Supreme Court ruling has obliged EPA to begin incorporating GHGs into stationary source air regulations. Beginning on Jan. 2, 2011, certain new PSD and Title V Operating Permits will need to include BACT provisions for GHGs .
The phase-in of GHG BACT will be guided by the EPA GHG Tailoring Rule. Initially only facilities that could increase GHG emissions by at least 75,000 tons per year (tpy) as CO2-equivalent (CO2e) and would be subject to PSD anyway due to non-GHG emissions would be subject to GHG BACT. Starting July 1, 2011, new facilities that can emit at least 100,000 tpy CO2-e and modified facilities that could increase emissions by at least 75,000 tpy CO2-e would be subject to PSD permitting and BACT even if they do not significantly increase emissions of other pollutants. EPA may then consider an additional phase that could reduce the applicability threshold to 50,000 tpy CO2-e.
Energy Efficiency as BACT
The EPA has been forthright in stating that energy efficiency will be central to BACT compliance. In a recent press release the agency said, “In most cases, [the BACT determination] process will show that the most cost effective way for industry to reduce GHG emissions will be through energy efficiency.” Energy efficiency is viewed by the EPA as a more sensible and cost-effective option than carbon capture and sequestration (CSS) and other possible compliance paths in most cases.
Since BACT is determined on a case-by-case basis rather than being a predetermined numerical limitation on pollutants, energy efficiency options for meeting BACT will vary by facility based on individual context. Permitting authorities are expected to determine a balance between potential efficiency upgrades and project cost on a site-specific basis. To assist state and local permitting agencies in establishing a BACT analysis process that encompasses GHGs, the EPA has published a series of technical white papers that offer examples of emissions control techniques and technologies for select emission-intensive industrial sectors.
Additional Resources
- EPA Clean Air Act Permitting for Greenhouse Gases
- PSD and Title V Permitting Guidance for Greenhouse Gases (PDF)
- EPA Tailoring Rule Fact Sheet (PDF)
- BCSE Coverage on the Alliance/BCSE Co-Sponsored “Intro to the Clean Air Act” Seminar
