Air Quality Permitting Information for Greenhouse Gas (GHG)

Deferral for Carbon Dioxide (CO2) Emissions from Biogenic Sources Under Part 70 and New Source Review

On July 20, 2011, in response to comments received and a petition on the subject of biogenic CO2 emissions, the EPA decided that further analysis is needed related to permitting requirements for biogenic CO2 emissions. Consequently, the EPA decided to defer including biogenic CO2 emissions in permitting while it studied the question further. Under the federal deferral, biogenic CO2 emissions will be excluded when determining whether a stationary source meets the PSD and Title V applicability thresholds. This deferral lasts until July 21, 2014. See more information: July 20, 2011, Federal Register.

At this time the MPCA is proceeding with the permanent state rulemaking process needed to implement the tailoring rule. See more information: Possible Rule to Adopt Federal Air Permit Thresholds for Greenhouse Gases. That permanent rule will include the biogenic deferral. Until that rule is final, the MPCA will implement the deferral as a policy per the November 3, 2011, Program Management Decision Memorandum:

• Deferral for CO2 Emissions From Biogenic Sources (aq-rule4-05q)

Due Date for Minor Amendment Applications Required by GHG Regulatory Changes

Several insignificant activities in Minn. R. 7007.1300 will be revised slightly under the greenhouse gas permitting rule revisions that are expected to become effective in late January, 2011. The activities that have changed are: subp. 2(A)(3) and 2(G)(1); subp. 3(A), (B)(2), and 3(I); subp. 4.  See more information: Possible Rule to Adopt Federal Air Permit Thresholds for Greenhouse Gases.

Facilities must determine if any equipment or processes which were insignificant in a prior permit or permit application will no longer qualify as insignificant under the revised rules. If this is the case and the facility has a General Permit, Capped Permit, or Registration Permit, the Permittee needs to update the equipment list and verify that they continue to qualify for their current permit.

For all other permit types, if it is determined that any previously-insignificant activities no longer qualify as insignificant, the Permittee needs to submit a minor amendment application to the MPCA to incorporate the equipment into their permit. The amendment application is due on the effective date of the regulatory change (i.e., the effective date of the Minnesota GHG Rule changes – likely late January, 2011). However, the MPCA will refrain from taking enforcement action for not submitting this application by the effective date, provided the application is received by July 1, 2011. Please contact Katie Koelfgen at 651-757-2499 for more information regarding enforcement of this requirement. See the Air Permit Forms page for information on submitting Minor Amendment Applications.

GHG Permitting FAQs

Q. I have an Option C registration permit and have some GHG-emitting units, but they all qualify as insignificant under Minn. R. 7007.1300, subp 2 and 3. Can I keep my current permit?

A. Yes, you continue to qualify under the revised Minn. R. 7007.1125, subp. 1.

Q. I currently have a Part 70 permit and I’ve completed PTE calculations for GHG and I am under 100,000 tpy of CO2e. Do I need to submit my PTE calculations to the MPCA?

A. You are required to complete PTE calculations by July 1, 2011 (see Minn. R. 7007.0150, subp. 1(E)), but you do not have to submit these calculations to the MPCA. If you are under 100,000 tpy, just keep records of your calculations. If you are over 100,000 tpy, you need to submit a notification by June 30, 2011. Send this notification to:
Air Quality Compliance Tracking Coordinator
Minnesota Pollution Control Agency
520 Lafayette Road North
St Paul, MN 55155

Q.I have an Option A Registration Permit. Do I need to do the PTE calculations required by Minn. R. 7007.0150, subp. 1(E)?

A. Yes, Option A facilities do need to calculate their PTE but not because of this portion of the rule. Instead, registration permit holders should follow the provisions in their specific part of the rule (7007.1110-1130). This will be clarified in the permanent rule. You need to assess whether or not you still qualify for an Option A permit by re-evaluating your insignificant activities and calculating your GHG potential emissions. If you can continue to qualify, you do not need to take any further action. If you no longer qualify for your Option A permit, you need to notify the MPCA of this by February 23, 2011.

If you now qualify for a different registration permit, you need to submit the new registration application by February 23, 2011. If need to apply for some other type of permit, you must apply by July 23, 2011.

See Greenhouse Gas Information Updates for Holders of Registration Permits for what is required for the various registration permit options.

Q. I have a Part 70 permit that includes limits to avoid being major under New Source Review. In addition, my permit includes some flexibility in that it lets me make changes to my facility as long as I remain a minor source as required by the permit (with some recordkeeping, notifications, and possibly minor/moderate amendments required, depending on the change). I’ve calculated by GHG PTE and I know that it is greater than 100,000 tpy CO2e. I know I eventually want to add limits to my permit to remain minor under NSR including GHGs, but I don’t see any deadline in the rule by when I need to do this. Can I continue to make modifications/changes under my permit after 7/1/11 and then just include GHG limits when my permit is up for renewal in 3 years?

A. While the rule does not require you to add limits for GHG to your permit (i.e., you can become a major NSR source), .you may wish to get an amendment to incorporate new GHGs so that you can remain a minor NSR source. As of July 1, 2011, with each change that you propose to make, you will need to determine if you are an existing major source under NSR. It is possible that proposed changes will need to be analyzed based on your facility being major for NSR (e.g., using form CH-04a, not CH-04b) – meaning that changes that might have previously only required a minor amendment could now require a major amendment in order to take limits to avoid NSR. It is likely in your best interest to apply for a major amendment to incorporate limits on GHGs sooner rather than later.

In addition, for any changes you plan to make after 7/1/11, you need to complete the calculations/analyses required by Minn. R. 7007.0150, subp. 1(C). See Greenhouse Gas Information Updates for Holders of Individual (Part 70 or State) Permits for more information on what is required by the new rules for facilities who have an individual Part 70 permit.

Q. I have an Option C or an Option D permit. Do I need to calculate my PTE?

A. No. Follow the specific requirements for registration permits and for Option C or D facilities in Minn. R. 7007.1100, 7007.1125 and 7007.1130.

Q. I have an Option D permit. Do I need to submit my monthly GHG calculations to the MPCA?

A. No, you do not have to submit this information on a monthly basis. Starting in January 2, 2011, you must start calculating your GHG emissions. Keep records as you do for your other pollutants. Once you have more than 12 months of calculations, track your 12-month rolling sum to ensure your actual emissions are below the Option D thresholds.

However, you will need to submit your calculated actual emissions when you submit your annual emissions inventory which is due in April of each year. While many facilities will not have to report their GHG to the MPCA, those facilities with Capped Permits or Option D Registration permits will have to report these emissions as required by Minn. R. 7019.3020(D) and (E).

Q. Where can I find GHG emission factors?

A. Emission factors for GHGs are still being developed for many industries. Typical sources for emissions are US EPA’s AP-42. AP-42 has GHG factors for fuel use and for some industries, such as asphalt plants. Additionally, US EPA’s Reporting Rule has calculation information for sources included in the rule. However, not all types of equipment at a facility subject to reporting are covered. Other possible options include The Climate Registry, test results, or data from your industry, association or equipment manufacturer, or mass/chemical balance. You may also make a proposal to the MPCA to use other sources of data.

The U.S. Environmental Protection Agency also has a set of questions and answers about this subject on their Implementing GHG Permitting page.