A host of industrial facilities across the country face being subject to permitting rules and other regulatory requirements under the Environmental Protection Agency’s Greenhouse Gas Tailoring Rule. The rule stands to impact facilities that were previously considered “minor” sources of air pollution – including gas processing plants, fractionating plants, compressor stations and other midstream energy assets.

Phase II of the Tailoring Rule began on July 1, 2011 and expanded the GHG permitting requirements from “anyway” sources (sources that were already subject to New Source Review permitting programs due to their non-GHG pollutant emissions) to include “non-anyway” sources (sources subject to permitting based solely on their GHG emissions).

Not only do the Tailoring Rule’s permitting thresholds impose GHG permitting requirements, they also reduce the permitting threshold for non-GHGs due to EPA’s “major for one, major for all” policy, which deems a source to be major if it emits even one pollutant in major amounts.

The Phase II expansion will have the collateral effect of increasing the number of PSD permits required for non-GHG pollutants, as sources that have traditionally been minor sources that were quickly permitted through permit-by-rule or standard permits may now need to be permitted as major sources for NOx, VOC, SO2, PM and other traditional pollutants solely because of their “major” GHG emissions.

For more details on this development, click here.