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Update on Greenhouse Gas Rules Affecting the Lead Industry ABR Spring Meeting Longboat Key, FL May 20, 2011 Neal Lebo All4 Inc.

Update on Greenhouse Gas Rules Affecting the Lead Industry

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Page 1: Update on Greenhouse Gas Rules Affecting the Lead Industry

Update onGreenhouse Gas Rules

Affecting the Lead Industry

ABR Spring Meeting Longboat Key,

FL

May 20, 2011

Neal LeboAll4 Inc.

Page 2: Update on Greenhouse Gas Rules Affecting the Lead Industry

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Agenda

Terms of Art Greenhouse Gas (GHG) Reporting Rule

• Amendments• Confidential Business Information (CBI)• Electronic Greenhouse Gas Reporting Tool

GHG Tailoring Rule• Implementation• Impact on Permit Application Process

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Terms of Art

What gases are considered GHG? • Six (6) recognized greenhouse gases (GHG)

Carbon dioxide (CO2) Methane (CH4) Nitrous oxide (N2O) Hydrofluorocarbons (HFC) Perfluorocarbons (PFC) Sulfur hexafluoride (SF6)

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Terms of Art

Global Warming Potential (GWP) A measure of how much a given mass of GHG is estimated to contribute to global warming. It is a relative scale which compares the gas in question to CO2.

GHG GWP

CO2 1

Methane 21

N2O 310

HFC-32 650

PFC-14 6,500

SF6 23,900

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Terms of Art

Emissions measured in CO2 equivalency (CO2e).

Each gas placed on CO2e basis by multiplying GWP.

For GHG Reporting Rule emissions are measured in metric tons.1 metric ton = 2,204.62 lbs

For GHG Tailoring Rule emissions are measured in short tons.1 short ton = 2,000 lbs1 short ton = 0.907186 metric tons

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GHG Reporting Rule

Effective Date – December 29, 2009. Established 40 CFR Part 98 – Mandatory

Greenhouse Gas Reporting.• Subpart A - General Provisions• Subparts C to PP - Specific Source Categories

Data monitoring and recordkeeping requirements began January 1, 2010.

Annual GHG emissions must be reported by March 31 of each year (except this year).

Lead smelters that emit ≥ 25,000 mtCO2e/yr combined from all listed sources must report.

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GHG Reporting Rule

Amendments Since Promulgation 7/12/2010 – Added new source categories and

amended General Provisions.

9/22/2010 – Added reporting of corporate parent, NAICS Code, and co-generation information.

10/28/2010 – Made technical corrections, clarifications, and other amendments to various provisions of Part 98.

11/30/2010 – Added new source category and amended General Provisions.

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GHG Reporting Rule

Amendments Since Promulgation 12/1/2010 – Added new source categories and

amended General Provisions.

12/17/2010 – Revisions to various provisions of Part 98.

12/27/2010 – Deferral of the reporting date for certain data elements.

3/18/2011 – Extension of reporting deadline for year 2010 data.

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GHG Reporting Rule

CBI Proposed Confidential Business Information (CBI)

Determinations – July 2010.• “Inputs to emission equations” are not CBI. This

includes data on production, throughput, raw material consumption.

In response to comments, in December 2010 U.S. EPA:• Issued interim rule to defer reporting of inputs

to emission equations until August 31, 2011.• Proposed a rule to further defer reporting of

inputs to emission equations until March 31, 2014.

• Issued a Call for Information (CFI) on Inputs to Emission Equations Under the GHG Reporting Rule.

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GHG Reporting Rule

CBI ABR submitted a response to the CFI:• Designation of inputs as “emission data” is

legally improper.• Public availability of inputs to emission

equations causes harm.• Inputs to emission equations are kept

confidential.• No comparable additional calculation or

measurement approaches exist that do not use sensitive information.

• There are alternative verification approaches not requiring release of sensitive business information.

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March 18, 2011 – U.S. EPA extended the deadline for reporting 2010 GHG data to September 30, 2011. • Allow U.S. EPA to further test the reporting

system.• Give industry the opportunity to test the

reporting tool, provide feedback, and become familiar with it prior to reporting.

GHG Reporting Rule

When To Report?

Action Initial Deadline New Deadline

User Registration January 30, 2011 August 1, 2011

Data Entry – 2010 Emissions

March 31, 2011 September 30, 2011

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GHG Reporting Rule

How To Report? U.S. EPA’s Electronic Greenhouse Gas Reporting

Tool

• User registration.• Certificate of Representation.• Data entry and submittal.

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GHG Reporting Rule

e-GGRT Unveiled U.S. EPA webinars throughout May.• Instruction on how to use e-GGRT to report

under different source category subparts.• Webinars focused on 13 of the 25 source

category subparts that report 2010 emissions. In June there will be an opportunity to test-drive e-

GGRT.• A “sandbox” test environment in which users

can play, uploading test data in the reporting screens for the various subparts covered by 40 CFR Part 98.

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GHG Reporting Rule

How To Report?

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GHG Reporting Rule

No Time to Rest An accurate, written GHG Monitoring Plan is a rule

requirement.• If you wrote your Plan based on the original

rule, it needs to be updated.• Addressing all the amendments means making

a lot of revisions throughout the Plan. If you developed a calculation tool based on the

original rule it will probably need to be updated. Calculate your 2010 GHG emissions now and

have them ready to report.• You will want to find out if you have any data

gaps now before the deadline approaches.

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GHG Tailoring Rule

Prevention of Significant Deterioration (PSD) and Title V Greenhouse Gas (GHG) Tailoring Rule.• Amends 40 CFR Parts 51, 52, 70, and 71.• Effective Date – August 2, 2010.• Sets timing and thresholds for addressing GHG

emissions from stationary sources under Clean Air Act (CAA) permitting programs.

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GHG Tailoring Rule

How Did We Get Here? 2007 Supreme Court Decision in Massachusetts vs.

EPA. The Light Duty Vehicle Rule (April 2010) established

GHG emission standards. GHGs become “subject to regulation” under the

CAA on January 2, 2011. U.S. EPA concludes that regulating GHG tailpipe

emissions triggers regulating GHG under major source permitting programs (PSD and Title V).

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GHG Tailoring Rule

What Does It Do? Major source permitting program emission

thresholds are 100 and 250 tons per year (tpy). Without the GHG Tailoring Rule:

• Tens of thousands of new PSD permits.• Millions of new Title V permits.

GHG Tailoring Rule “tailors” these requirements to limit facilities required to get permits for GHG emissions.

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GHG Tailoring Rule

Implementation GHG Tailoring Rule is implemented for the largest

sources of GHG emissions in two (2) steps.• Step 1 – January 2, 2011 to June 30, 2011.• Step 2 – July 1, 2011 to at least June 30, 2013.

U.S. EPA will begin rulemaking in 2011 to establish requirements for smaller sources. Any new requirements will be effective July 1, 2013.

In general, sources with GHG emissions below 50,000 tpy of carbon dioxide equivalent (CO2e) will not be regulated for at least six (6) years.

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GHG Tailoring Rule

Implementation - PSD PSD Applicability for GHG emission sources.

• Projects adding new or modifying emission units. Step 1 – January 2, 2011 to June 30, 2011.

• No sources become major for PSD based solely on GHG emissions.

• Sources major for any PSD pollutant other than GHG will also be major for GHG if the project increases GHG emissions by 75,000 tpy CO2e or more.

Step 2 – July 1, 2011 to at least June 30, 2013.• Regardless of other PSD pollutants, the following must meet

PSD permitting requirements: New sources that emit GHGs at or above 100,000 tpy

CO2e. Modifications that increase GHG emissions by at least

75,000 tpy CO2e.

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GHG Tailoring Rule

Implementation – Title V Title V Applicability for GHG emission sources.

• Applications for new permits, renewals or revisions. Step 1 – January 2, 2011 to June 30, 2011.

• No sources become major requiring a Title V permit based solely on GHG emissions.

• Sources currently subject to Title V program for pollutants other than GHG must apply applicable Title V requirements to their GHG emissions.

Step 2 – July 1, 2011 to at least June 30, 2013.• Facilities with GHG emissions of 100,000 tpy CO2e or more

must obtain a Title V Operating Permit if they do not already have one.

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GHG Tailoring Rule

Implementation – Title V What are Title V requirements for GHG emissions?

• GHG currently “subject to regulation” but not a “regulated pollutant” (e.g., regulated under Section 111 or 112 of the CAA).

• No current Title V requirements to control GHG.• No other current CAA requirements (e.g.,

NESHAP, NSPS) applicable to GHG.• State rules may have requirements (e.g.,

monitoring, recordkeeping and reporting).• Federal GHG Reporting Rule is not a Title V

requirement.

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GHG Tailoring Rule

Impact on Permit Application Process Emission inventories for PSD applicability must

include GHG pollutants for comparison to thresholds.

Permit applications pending may have to be reopened or amended to address GHG pollutants.

Even minor applications will need to demonstrate that thresholds are not exceeded.

Title V renewal or modification applications should explain GHG applicable requirements.

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Future GHG Rulemaking Impacts

U.S. EPA plans to issue NSPS for Fossil Fuel-Fired Electric Generating Units (EGU) with GHG as a pollutant in May 2012.

GHG will become a “regulated pollutant” for Title V purposes.

Title V applications will need to be updated with GHG information including:• GHG emission information for existing emission

units.• Add new emission units that emit only GHG.• Reclassify insignificant units as significant due to

GHG emissions.

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Future GHG Legislative & Legal Impacts

Proposed legislation in both U.S. House of Representatives and U.S. Senate to postpone or pre-empt U.S. EPA regulation of GHG emissions under the CAA.

Numerous legal challenges to U.S. EPA GHG Regulations are proceeding through the courts.

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Questions?

[email protected](610) 933-5246,

extension 13

All4 Inc.2393 Kimberton Road

P.O. Box 299Kimberton, PA 19442

www.all4inc.com