Biomass Gets a Break

Beginning on January 2, 2011, the EPA required large plants and factories planning to make major modifications or build new facilities to obtain pre-construction permits addressing their GHG emissions. These facilities, such as oil refineries and power plants, must obtain air permits and carry out energy efficiency measures or use cost-effective technology to reduce their greenhouse gas emissions.

Recently, however, the EPA has taken a significant step away from regulation by proposing to defer, for three years, Prevention of Significant Deterioration (PSD) and Title V permitting requirements for carbon dioxide (CO2) emissions from bioenergy and other biogenic stationary sources.

CO2 emissions from biomass-fired and other biogenic sources are generated during the combustion or decomposition of biologically based material. Sources covered by this decision would include facilities that emit CO2 as a result of burning forest or agricultural products for energy, wastewater treatment and livestock management facilities, landfills and fermentation processes for ethanol production.

Before the end of the three-year period, the agency intends to issue a second rulemaking that determines how these emissions should be treated or counted under GHG permitting requirements.

Comments on the proposed deferral are being accepted until May 5, 2011.

This post was authored by Hamilton Consulting Group's intern, Emily Kelchen, a third year law student at the University of Wisconsin Law School.