1



## GHG Permitting Programs Ready to Go by January 2 **nd**



### National Association of Clean Air Agencies

October 28, 2010

With the onset of greenhouse gas (GHG) permitting only two months away, every state but one is poised to ensure that sources can obtain precons truction permits under the Clean Air Act come January 2, 2011. While most states already have th e authority to permit GHGs under preconstruction permit – or Prevention of Significant Deterioration (PSD) – programs, EPA has identified programs in 1 3 states that need to revise their State Implementati on Plans (SIPs) in order to gain authority to issue PSD permits for GHG emissions. Excepting only one, pro grams in all states on the list have indicated that they will either revise their PSD rules by January 2, 2011 or very shortly thereafter, or accept a Fed eral Implementation Plan (FIP) that will give EPA author ity to issue the GHG portion of PSD permits until state rules are revised. This provides that source s required to apply PSD controls to their GHG emiss ions will be able to obtain the necessary permits and av oid construction delays.

In August of this year, EPA proposed two companion rulemakings to ensure that authority to issue PSD permits for GHG emissions is in place by January 2, 2011. In the first action, Proposed Fi nding of Substantial Inadequacy and SIP Call, 1 EPA identified programs in 13 states that did not appear to have the authority to apply their PSD programs to GHG em issions (“Presumptive SIP Call List”). States on t he Presumptive SIP Call List were asked to send a lett er to EPA by October 4, 2010 confirming that GHGs are not included in their PSD programs and identify ing a deadline for submitting SIP revisions to EPA for approval. The agency proposed allowing programs to identify a SIP submittal date as early as December 22, 2010, or three weeks from issuance of the final SIP Call. In the second action, Proposed Federal Implementation Plan, 2 EPA proposed to immediately promulgate a FIP for a ny program unable to submit SIP revisions by the identified deadline, providing states a federal backstop in the event that they c ould not change their own rules by January 2, 2011. Pro grams unable to revise their rules by January 2, 20 11 have the option of choosing the earliest SIP submit tal date, allowing EPA to immediately promulgate a

FIP. 3

The National Association of Clean Air Agencies (NA CAA), the association of air pollution control agencies in 52 states and territories and over 165 metropolitan areas across the country, has reviewed and briefly summarized the responses of the program s on EPA’s Presumptive SIP Call List. 4 The letters summarized below are from programs in 14 states: t he 13 identified by EPA in the Presumptive SIP Call List plus one state that asked to be added to the l ist. Of these, programs in 7 states indicated that they anticipate revising their rules by January 2, 2011 or very shortly thereafter, while programs in 6 sta tes indicated that they will accept a FIP to apply PSD requirements to GHG emissions. Only one state declined to revise its rules or accept the FIP.

1 75 Federal Register

53892.

2 75 Federal Register

53883.

3 The agency also indicated that authority to permit GHGs under Title V operating permit programs will b e addressed separately at a later date.

4 All letters are available in Docket # EPA-HQ-OAR-2 010-0107. The following summary includes responses from only those states that were identified by EPA as pa rt of, or asked to be added to, the Presumptive SIP Call List.2 

### State-By-State Summary of GHG SIP Call Letters

**AGENCY SUMMARY O**  **F RESPONSES** 
Alaska  A laska is currently in the process of revising its regulat ions to allow the state to comply with federal rules regarding GHG permitting, and anticipates that those revisions will be in effect by January 2, 2011.  The state anticipates submitting its SIP revisions to EPA by December 22, 2010, and asks to be dropped from the SIP Call list upon submittal. The state requests parallel processing of its SIP revisions, and for n otification if EPA is unable to approve the SIP revisions by January 2, 2011. Pinal Co., AZ  Pinal Co.’s PSD program does not currently include GHGs. The county plans to
amend its rules to include GHGs and submit SIP revi sions to EPA.  Until then, the county asks for the implementation of a FIP to address GHGs under its PSD program, and will request delegation of the FIP.

Arizona 5  A rizona does not have the authority to permit GHGs under it s PSD program, and does not agree that its program is therefore inadeq uate.  The state will accept the imposition of a FIP imple menting PSD requirements for GHGs, and does not object to a SIP submittal deadli ne as short as 3 weeks from
the date of the final SIP Call.

Arkansas  A rkansas confirms its status as a state that does not currently have the authority to permit GHGs under its PSD program. Wh ile the state plans to develop the authority to include GHGs in its PSD pr ogram, and to ask for parallel processing of its associated SIP revisions , it will not be submitting SIP revisions by December 2010.  The state does not object to the shortest SIP submi ttal deadline of 3 weeks from the date of the final SIP Call, and subsequent implementation of a FIP to address PSD requirements for GHGs. The state prefe rs not to accept delegation
of the FIP.
Sacramento, CA  Sacramento concludes, after further re view, that its SIP does contain general authority to implement PSD requirements for GHGs. Nonetheless, the district plans to revise its PSD rules for clarity in Januar y 2011.  If EPA disagrees with the district’s reading of its SIP as a whole as conferring authority to apply PSD requirements to GHGs, then t he district would not object to a SIP submittal deadline of January 31, 2011.

Connecticut  C onnecticut confirms that its SIP does not currently apply its PSD program to GHGs. The state intends to revise its PSD program to include GHGs, and will seek expedited processing of those regulatory revis ions. A public hearing on the initial draft proposal is scheduled for October 18, 2010. The state requests parallel processing of its SIP revisions.  The state does not object to a SIP submittal deadli ne of March 1, 2011.

Florida  F lorida confirms that its SIP does not apply PSD req uirements to GHGs; the state cannot develop adequate authority and submit SIP revisions by December

2010.  The state does not object to a SIP submittal deadli ne of December 22, 2010, and subsequent implementation of a FIP to address G HG PSD requirements.

5 Excluding Maricopa Co., Pima Co., and Indian Count ry.3

Idaho  I daho confirms that its current SIP does not authori ze the issuance of PSD permits for GHGs. The state intends to incorporate GHGs into its PSD program, and will submit SIP revisions after approval by its legislature (between April and June 2011).
 The state requests a SIP submittal deadline of Dece mber 22, 2010, and the subsequent implementation of a FIP to address PSD r equirements for GHGs.

Kansas  K ansas confirms that it does not currently have the author ity to include GHGs in its PSD permits. The state is in the process of re vising its regulations to include GHGs, and intends to publish the final rules in Nov ember 2010 with an implementation date of January 2, 2011. The state has requested parallel processing of its SIP revisions, and submitted a dr aft to EPA on October 1, 2010. The final rule will be submitted as soon as possibl e after the close of public comments on October 26, 2010.  The state requests that EPA take action on its SIP revisions no later than January 2, 2011. If EPA is unable to act in time and the s tate remains on the proposed SIP Call list, the state requests the shortest poss ible SIP submittal deadline of December 22, 2010 or 3 weeks from the final SIP Cal l, and subsequent implementation of a FIP to address PSD requirements for GHGs. If so, the state requests immediate delegation of the FIP. Jefferson Co., KY  Jefferson Co. is in the process o f revising its PSD regulations to incorporate GHGs. The district anticipates adopting the revise d regulations prior to December 1, 2010, and requests parallel processing of its SIP submittal.  In the event that the district is unable to adopt t he revised regulations by December 1, 2010, it would not object to a SIP subm ittal deadline of January 1,

2011. Kentucky  K entucky intends to amend current regulations to incorporate GHGs into its PSD program, and anticipates submitting SIP amendme nts by January 1, 2011.  The state proposes a SIP submittal deadline of Marc h 31, 2011.

Nebraska  Nebraska intends to adopt regulations to apply its PSD program to GHGs. A rulemaking is already underway, and the state antic ipates final promulgation by January 2, 2011. The state requests parallel proce ssing of its SIP revision.  The state does not object to a SIP submittal deadli ne of March 1, 2011. Clark Co., NV  Clark Co. submitted SIP revisions concerning its PSD applicab ility provisions and definitions earlier this year, though further revis ions to incorporate GHGs are required. The county is in the process of amending its PSD regulations to incorporate GHGs, and anticipates submitting SIP re visions to EPA by December 1, 2010.  If, due to unforeseen circumstances, the county doe s not submit its SIP revisions by December 1, 2010, it would not object to a SIP submittal deadline of July 1, 2011. Oregon  O regon confirms that its SIP PSD program does not cu rrently apply to GHGs. The state plans to develop authority to apply its P SD program to GHGs, and submit SIP revisions to EPA by the end of February 2010.  The state does not object to a SIP submittal deadli ne of December 22, 2010.

Texas  T exas does not believe that its SIP is inadequate because it does not include GHGs, and questions the legality of EPA’s SIP Call proposal.  The state does not believe EPA’s proposed SIP submi ttal deadline is reasonable.4

Wyoming  W yoming indicates that its laws prevent the state fr om regulating GHGs, and
asks to be moved to the SIP Call List.  The state does not object to a SIP submittal deadli ne of December 22, 2010, and subsequent implementation of a FIP to address P SD requirements for

GHGs.