MARCH 2011
                                        

EPA allows biomass companies to defer GHG rules

The EPA is granting an exemption under its controversial greenhouse gas (GHG) reporting requirements, saying that it will provide a three year reprieve for facilities that burn biomass to generate electricity.

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 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.

A score of lawmakers had urged EPA to delay applying new rules aimed at curbing GHGs from large emitters and facilities that burn biomass.

The agency will also issue guidance shortly that will provide a basis that state or local permitting authorities may use to conclude that the use of biomass as fuel is the best available control technology for GHG emissions until the agency can complete action on the three year deferral in July.

On January 2, 2011, air permitting requirements began for large GHG emitting industries that are planning to build new facilities or make major modifications to existing ones. These facilities must obtain air permits and implement energy efficiency measures or, where available, cost-effective technology to reduce their GHG emissions. This includes the nation’s largest GHG emitters, such as power plants and refineries. Emissions from small sources, such as farms and restaurants, are not covered by these GHG permitting requirements.

By July 2011, EPA plans to complete a rulemaking that will defer permitting requirements for CO2 emissions from biomass-fired and other biogenic sources for three years. During the three-year period, the agency will seek input on critical scientific issues from its partners within the federal government and from outside scientists who have relevant expertise. EPA will also further consider the more than 7,000 comments it received from its July 2010 Call for Information, including comments noting that burning certain types of biomass may emit the same amount of CO2 emissions that would be emitted if they were not burned as fuel, while others may result in a net increase in CO2 emissions. 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.