Proposed GHG Tailoring Rule Implementation Rules

The U.S. Environmental Protection Agency (EPA) is proposing two rules to ensure that businesses planning to build new, large facilities or make major expansions to existing ones will be able to obtain Clean Air Act permits that address their greenhouse gas (GHG) emissions. In the spring of 2010, EPA finalized the GHG Tailoring Rule, which specifies that beginning in 2011, projects that will increase GHG emissions substantially will require an air permit.

The Clean Air Act requires states to develop EPA-approved implementation plans that include requirements for issuing air permits. When federal permitting requirements change, as they did after EPA finalized the GHG Tailoring Rule, states may need to modify these plans.

In the first rule, EPA is proposing to require permitting programs in 13 states to make changes to their implementation plans to ensure that GHG emissions will be covered. The programs that are required to revised their current GHG programs include all or portions of:

Alaska;
Arizona;
Arkansas;
California;
Connecticut;
Florida;
Idaho;
Kansas;
Kentucky;
Nebraska
Nevada:
Oregon; and
Texas.

Within 30 days after the rule is published in the Federal Register, each permitting agency must submit a letter to EPA that explains its GHG permitting authority status and documents why their programs cannot cover GHG emissions.

Because some states may not be able to develop and submit revisions to their plans before the Tailoring Rule becomes effective in 2011, EPA is also proposing a federal implementation plan, which would allow EPA to issue permits for large GHG emitters located in these states. This would be a temporary measure that is in place until the state can revise its own plan and resume responsibility for GHG permitting.

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