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COLORADO DEPARTMENT OF PUBLIC HEALTH AND ENVIRONMENT <br />Stationary Sources Program / Air Pollution Control Division <br />PS Memo 11-02 <br />TO: Stationary Sources Staff, Local Agencies, Regulated Community <br />FROM: Kirsten King and Roland C. Hea <br />DATE: March 1, 2011 <br />RE: Operating Permits and the Greenhouse Gas Tailoring Rule <br />Background <br />40 CFR § 70.5(c)(3)(1) and Colorado Regulation No. 3, Part C, § III.C.3.a require that Operating <br />Permit applications must include "all emissions of pollutants for which the source is major, and <br />all emissions of regulated air pollutants." <br />The definition of "regulated air pollutants" can be found in § 70.2 and in Colorado Regulation <br />No. 3, Part A, § I.B.37. Neither definition includes Greenhouse Gasses (GHG). <br />The inclusion of GHG as a pollutant triggering Title V applicability is addressed in Federal <br />Register 75:106 (June 3, 2010) p. 31514. In that rulemaking, the definition of "Subject to <br />Regulation" was added to 40 CFR §70.2. In Colorado Regulation No. 3, that revision is <br />addressed in the definition of major source in Part A, § I.B.25.c. and the definition of subject to <br />regulation in Part A, § I.B.44. The result of the revisions is that a major source for Title V <br />purposes now includes any stationary source that as of July 1, 2011 emits or has the potential to <br />emit 100,000 tpy C02 equivalent (C02e) emissions and 100 tpy total GHG mass emissions from <br />all six GHG pollutants (Note: these are not C02e emissions). <br />Similarly, the definition of "Subject to Regulation" was added to 40 CFR §51.166. In Colorado <br />Regulation No. 3, that revision is addressed in the definition of regulated NSR pollutant in Part <br />D, § II.A.38. and the definition of subject to regulation in Part A, § I.B.44. The result of the <br />revisions is that a major stationary source for New Source Review (NSR) now includes any <br />stationary source that as of July 1, 2011 emits or has the potential to emit 100,000 tpy C02 <br />equivalent (C02e) emissions and 100 tpy (for listed sources) or 250 tpy (for all other sources) <br />total GHG mass emissions from all six GHG pollutants (Note: these are not C02e emissions). <br />Source Obligations <br />The GHG rules as set forth in the June 3, 2010, Federal Register are implemented in two steps: <br />Step 1 is from January 2, 2011 to June 30, 2011. Step 2 is from July 1, 2011 to June 30, 2013. <br />See the attached Scenarios for additional guidance.