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Source: Daily Environment Report: News Archive > 2011 > March > 03/18/2011 > News > Climate Change: EPA Gives Tacit Approval to Air Permit With Greenhouse Gas Emissions Limits
Climate Change
EPA Gives Tacit Approval to Air Permit With Greenhouse Gas Emissions Limits
The Environmental Protection Agency has given its tacit approval to an air pollution permit issued in January by Louisiana regulators for an iron and steel mill, the first issued under agency requirements to control greenhouse gas emissions.
EPA had until March 14 to object to the permit, issued by the Louisiana Department of Environmental Quality to Nucor Corp. for the proposed iron and steel mill in St. James Parish, but declined to do so (27 DEN A-11, 2/9/11).
Nucor announced March 7 that it has broken ground on the project.
The permit has drawn criticism from environmental groups, although primarily for the way it addresses conventional air pollutants rather than greenhouse gases.
The Nucor permit includes an energy efficiency standard for the plant as a surrogate for a carbon dioxide emissions limit, a move that followed EPA guidance issued in November 2010 saying that PSD permits for greenhouse gases are likely to emphasize energy efficiency.
Energy Used Per Output of Steel
According to the Louisiana DEQ, the permit expresses the greenhouse gas emissions limit as measurement of energy used per output of steel. The limit is 13 million British thermal units of natural gas per metric ton of direct reduced iron, which the company will use to produce steel. DEQ estimates the plant will emit 3.39 million metric tons of carbon dioxide per year.
Since Jan. 2, EPA has required permitting and control for greenhouse gas emissions created by new large stationary sources or modification of existing sources.
The permits are issued under prevention of significant deterioration provisions (PSD) of the Clean Air Act, which requires new and modified sources that increase emissions to control and get permits for them. Emissions are controlled using best available control technology, determined individually at each source.
EPA issued guidance Nov. 10 that emphasized energy efficiency as the way to satisfy greenhouse gas emissions permitting requirements under PSD (217 DEN A-5, 11/12/10).
Possible Model for Other Applications
Richard Alonso, an attorney at Bracewell & Giuliani, told BNA the permit could serve as a model for other greenhouse gas permit applications, at least for similar facilities. It may not help those with different processes, he said.
Asked if the Nucor permit would serve as a model for greenhouse gas provisions in other PSD permits, Kevin P. Holewinski, an attorney at Jones Day said in an e-mail, “Perhaps so, but as you know, I think the game is not yet over vis-a-vis Sierra Club and LEAN [Louisiana Environmental Action Network].”
These groups had extensive objections to the permit during the comment phase.
Joanne Spalding, senior attorney at the Sierra Club, told BNA March 9, “We have a lot of problems with the Nucor permit.” She said, however, that the group has “more problems with the way they treat conventional pollutants” than greenhouse gases.
Alonso said he suspected one reason EPA did not object to the Nucor permit was because the agency is under fire for greenhouse gas regulation. Legislation is moving in the House to rescind EPA authority over greenhouse gas emissions, and several proposals have been offered in the Senate.
EPA also is defending the regulations in several federal court challenges.
By Steven D. Cook
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