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Jan 16, 2013

EPA Proposes Approval of Wisconsin’s Greenhouse Gas Tailoring & @Biomass Deferral @WDNR Rules

On December 28, 2012, EPA published a proposed rule that will make two key elements of the Wisconsin State Implementation Plan (SIP) consistent with the vast majority of other air permitting jurisdictions in the United States. First, the proposed rule would approve revisions to the SIP modifying the State’s prevention of significant deterioration (PSD) program to increase the significant emission thresholds for determining when a new or modified stationary source becomes subject to PSD permitting obligations because of greenhouse gas (GHG) emissions. Second, EPA has proposed approving Wisconsin rules that will defer until July 21, 2014 the application of PSD permitting requirements to the carbon dioxide (CO2) emissions that are generated from bioenergy and biogenetic stationary sources. EPA will accept comments on its proposed approval of these rules until January 28, 2013.

....Tailoring Rule
After finalizing the four rules described above, EPA quickly understood that the 100 and 250 TPY thresholds that are appropriate for other regulated air pollutants are simply not appropriate for CO2. This is because CO2 emissions are so ubiquitous and are emitted in such great quantities that the 100 and 250 TPY thresholds would result in hundreds of thousands of new sources being subject to air permitting obligations under the Clean Air Act. In an effort to avoid this adverse impact on the economy and state regulatory agencies, EPA crafted the "Tailoring Rule" which increased the Title V and PSD permitting thresholds to 100,000 TPY which would ensure that the regulatory burden on GHG regulation would fall principally on larger industrial sources.

In response to these rulemaking efforts, each state, including Wisconsin, was obligated to craft rules establishing these alternative "Tailoring Rule" permitting thresholds for CO2. WDNR crafted these rules and submitted them to EPA for approval. In the December 28, 2012 Federal Register, EPA has announces its intent to approve these rules for inclusion in Wisconsin SIP.

Please read full by Todd E. Palmer and Anna J. Wildeman at: http://www.michaelbest.com/pubs/pubDetailMB.aspx?xpST=PubDetail&pub=3231