EPA Requests Comments on Biomass Tailoring Rule Deferment by May 5, 2011

As part of the EPA’s quest to release rules and guidance to state and federal Title V permitting agencies to implement the application of the Prevention of Significant Deterioration (PSD) and the Tailoring Rule, they have granted a request by the National Alliance of Forest Owners (NAFO) to reconsider the rule and issued interim guidance. Comments must be received on or before May 5, 2011.

Since our last report in the December 2010 Forest2Fuel newsletter, on January 12, 2011, the EPA announced the following steps to address the issues associated with biogenic CO2 emissions from stationary sources. These facilities include electric utilities burning biomass, wood products manufacturers, wood pellet fuel manufacuturers and pulp and paper manufacturers.

Granting the Petition for Reconsideration filed by the National Alliance of Forest Owners regarding PSD and the Tailoring Rule.

Based on comments from stakeholders and due to the complexities involved with determining the net atmospheric impact of CO2 emissions, the EPA granted the Petition for Reconsideration. Those offering comments suggested several accounting methodologies and approaches for making these determinations by:

• Case-by-case, facility-specific assessments of the net atmospheric impact of the intended biomass fuels.
• Categorical exclusion that rests on the idea that all biological sources are part of the “active carbon cycle” in which CO2 is cycled between the land and atmosphere in a relatively short timeframe.
• Contingent exclusion, that in addition to categorical exclusion, that so long as the U.S., and even perhaps on a state scale, remains in a net carbon sink, all facilities that emit CO2 from bioenergy or other biogenic sources would be excluded from applicability.
• The feedstock-based approach, that feedstocks are different and that net impact of bioenergy and other biogenic sources may be traceable to the feedstocks that are used, and therefore such feedstocks should be categorized.

Issuing a rule deferring the application of PSD and Title V permitting requirements to biogenic CO2 emissions from stationary sources for three years from application.

The deferral applies to biogenic CO2 emissions from biogenic feedstocks, rather than to specific types of facilities. However, all non-biogenic emissions from a facility will continue to be included throughout the deferral period.

Concurrently issuing interim guidance on how these emissions should be treated until final decisions have been made.

During this three-year deferral time period, through proposed rulemaking and commentary, the Agency can develop an appropriate accounting methodology that satisfies the principles of predictability, practicality, and scientific soundness.

Until the deferral if finalized in July 2011, there will be a need for PSD permitting determinations, and the EPA will be offering interim guidance based upon the current and existing regulations that are in place. The EPA is seeking comments about approach, rationale and other considerations the Agency should take into account where the permit requirements to biogenic CO2 emissions are concerned.

Engaging federal partners, technical experts and an independent scientific panel to consider technical issues and conduct a detailed scientific examination of biogenic CO2 emissions from stationary sources.

The EPA requires time to examine the science of biogenic CO2 emissions from stationary sources, engage with an independent scientific panel and if appropriate, initiate a notice and comment rulemaking to implement an appropriate accounting approach. This study is intended to be conducted within the three-year deferral period.

The EPA wants to allow sufficient time to consider the unique characteristics and attributes of biogenic CO2 feedstocks. They believe without this consideration, there will be additional permitting burdens in terms of time and resources requirements. The interim guidance will help alleviate some of the burden, as they expect increases in diverse users of biomass combustion or other biogenic CO2 sources will be affected under the Tailoring Rule because of trigger permitting requirements related to their GHG emissions. During this time period, they intend to exclude, temporarily, biogenic CO2 emissions from the definition of “subject to regulation”.

Based upon feedback from the scientific and technical review, developing a final rule on how biogenic CO2 emissions should be treated and accounted for in PSD and the Tailoring Rule.

From the information collected at this point, the EPA does not have sufficiently developed methodologies to perform the calculations needed to determine the net atmospheric impact of a facility and take into account the net carbon cycle impacts. The deferral will allow the EPA to consider the results of the scientific examination and develop appropriate accounting methodologies for biogenic CO2 emissions when determining PSD applicability.

8 Tips for Preparing Your Comments

The Federal Register provides these tips to remember when preparing your comments:

• Identify the rulemaking by docket number or other identifying information.
• Follow directions as the EPA may ask specific questions or organize their commentary by referencing a CFR part or section number.
• Explain why you agree or disagree, suggest alternatives or provide substitute language for requested changes.
• Describe any assumptions and provide technical information, detail and/or data that you have used to support those assumptions.
• Explain how you arrived at potential costs or burdens in adequate detail as to be reproduced.
• Be specific. Illustrate your concerns and suggest alternatives.
• Make your views clear without the use of profanity or personal threats.
• Submit your information and comments within the comment period in order to be considered. To ensure proper receipt by the EPA, be sure your package is addresses appropriately and include the docket ID number, name, date and Federal Register citation assigned to this action in the subject line of the first page of your response. If you wish to expedite review of your comments by Agency Staff or supply a CBI, you are encouraged to send a separate copy of your information and comments. Do not transmit CBI by email.

Information and Comment Submission Information

Identify by Docket ID No. EPA-HQ-OAR-2011-0083

Online: Federal eRulemaking Portal. Follow the online instructions for submission.

E-Mail: GHGbiogenic@epa.gov . Include Docket ID No. in the subject header line.

Fax:  (202) 566-9744

Mail:   Environmental Protection Agency

EPA Docket Center (EPA/DC)

Mail Code 28221T

Attention: Docket ID No. EPA-HQ-OAR-2011-0083

1200 Pennsylvania Avenue, NW

Washington, DC 20460

Hand/Delivery Courier: EPA Docket Center

Public Reading Room

EPA West Building

Room 3334

1301 Constitution Avenue, NW

Washington, DC 20004

Phone: (202) 566-1744

Note: Deliveries are only accepted during normal business hours of operation and special arrangements need to be made for deliveries of boxed information.

For specific instructions on what to include in your response, see the Federal Register instructions.