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EPA Finalizes GHG Tailoring Rule Step 3 and GHG PALs

On June 29, 2012, U.S. EPA issued a final rule that retains the GHG major source and major modification thresholds from Steps 1 and 2 of the Tailoring Rule:  100,000 tons/yr CO2 equivalent (CO2e) major source threshold and 75,000 tons/yr CO2e for major modifications at GHG major sources.  EPA had considered applying PSD and Title V permitting requirements for smaller sources of GHGs; however, EPA determined that state and local agencies do not yet have the expertise and capacity to regulate these smaller sources.

U.S. EPA also finalized changes to PSD regulations to facilitate the use of Plantwide Applicability Limits (PALs) for GHG on a CO2e basis (in addition to the GHG mass basis PALs allowed in the current rules).  EPA also included revisions to allow for the use of GHG PALs at facilities that are only major sources for GHGs, which will allow the facility to retain its minor source status for non-GHG pollutants.

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