On November 10, 2010, EPA issued guidance on permitting of
greenhouse gas (GHG) emissions under the Clean Air Act (CAA). Most
significantly, the guidance addresses how the Prevention of
Significant Deterioration (PSD) program's "best available
control technology" (BACT) standard can be applied to regulate
GHGs. In addition to PSD, the guidance also discusses applicability
of the Title V operating permits program to sources of GHGs
pursuant to EPA's recently published GHG Tailoring Rule (75
Fed. Reg. 31,514 (June 3, 2010)).
Although currently subject to legal challenges, the Tailoring
Rule purports to phase in the requirements of the CAA –
namely, the statutory PSD and Title V thresholds – and
the permitting of stationary sources emitting GHGs above those
thresholds. According to EPA, the Tailoring Rule is necessary
because, the statutory thresholds (100 and 250 tons per year) would
result in triggering tens of thousands of PSD permits and millions
of Title V permits.
