Gulf Coast CHP Application Center
Creating a Community of Enthusiasm for CHP in the Gulf Coast Region
About the Center What is CHP? Markets Regulations News & Events Resource Library
U.S. EPA Regulations & Publications

Clean Air Act of 1970
The federal Clean Air Act of 1970 and its amendments, especially the 1990 Amendments, are the basis of most air pollution policy and regulation in the United States. The Clean Air Act is the comprehensive federal law that regulates air emissions from area, stationary, and mobile sources. One of the most important components of this law is the requirement for EPA to establish National Ambient Air Quality Standards (NAAQS) to protect public health and the environment. The NAAQS, as promulgated by the EPA from time to time, form the foundation of the U.S. air quality program. The NAAQS set standards for 6 "criteria pollutants" of which NOX (a precursor to ground-level ozone or smog), CO, SO2 and PM are of the greatest relevance to distributed generation/CHP. [Read more]

The NAAQS goals of health-based standards for the quality of ambient air are designed to ensure that the air everywhere in the U.S. is fit to breathe. Locations throughout the country are classified as either "in attainment" or "nonattainment" for a given pollutant. Areas in Texas and Louisiana are currently in non-attainment for the 8-hour ozone standard:
Louisiana - Baton Rouge
Ascension ParishLivingston Parish
East Baton Rouge ParishWest Baton Rouge Parish
Iberville Parish
Texas - Houston/Galveston/Brazoria (Moderate)
Brazoria CountyHarris County
Chambers CountyLiberty County
Fort Bend CountyMontgomery County
Galveston CountyWaller County
Texas - Dallas/Fort Worth (Moderate)
Collin CountyKaufman County
Dallas CountyParker County
Denton CountyRockwall County
Ellis CountyTarrant County
Johnson County
Texas - Beaumont/Port Arthur (Marginal)
Hardin CountyOrange County
Jefferson County
Texas - San Antonio (Subpart 1 EAC)
Bexar CountyGuadalupe County
Comal County

Deploying CHP technologies in these areas can be significantly harder due to stricter air quality permitting rules on certain equipment such as large engines. Currently, emissions limits are input-based, that is, they have been established on a unit of pollutant emitted per unit of fuel input (lb/MMBtu) basis. This approach relies on the application of pollution control devices to reduce emissions and does not explicitly recognize the efficiency of the process in converting fuel input into a useful output. As such, input-based regulations do not encourage pollution reductions through energy efficiency. If, instead, emissions limits were calculated on an output basis the inherent efficiencies of combined heat and power technologies would be properly accounted. Read more about output-based regulations.

New Source Review Process
To meet the NAAQS goals, the Clean Air Act requires pre-construction environmental permitting of new stationary facilities in all parts of the U.S. that emit criteria pollutants. The new source permitting program, generically known as new source review (NSR), sets emission control requirements for the criteria pollutants for new and modified facilities. Technically the new source permitting program comprises the prevention of significant deterioration (PSD) and the nonattainment new source review programs however, the entire program is generically referred to as NSR. The permitting process determines what pollution controls will be required. The permitting process is administered by the states, which leads to a high degree of variability in its implementation.

Where environmental permitting problems exist for new CHP/DG projects, NSR is the most likely concern. The manner in which the NSR permitting process applies to a proposed project is determined by the "potential emissions" of the affected source. Potential emissions means the total annual emissions if the source were to run at full capacity for an entire year. New or modified sources that exceed certain potential emissions thresholds are called "major sources" and are subject to the federal NSR program. If emissions are below the major source threshold, sources are subject to "minor source review". Finally, there is usually an emission or size threshold below which sources are exempt from environmental permitting. To learn more about the emissions standards in Gulf Coast states, please review the desired state's information page.

Title V
Title V of the 1990 Clean Air Act Amendments requires all major sources and some minor sources of air pollution to obtain an operating permit. A Title V permit grants a source permission to operate. The permit includes all air pollution requirements that apply to the source, including emissions limits and monitoring, record keeping, and reporting requirements. [Read More]

EPA State Implementation Plan (SIP) Guidance for Renewable Energy and Energy Efficiency Measures
In August 2004, EPA released an air quality guidance document that describes how states and localities can estimate emission reductions from energy efficiency and renewable energy measures and include them in State Implementation Plans (SIPs).

The guidance document includes: A basic four-step process to quantify SIP credits; discussion of important factors that need to be considered (for example, cap-and-trade programs and future control requirements); references, information, databases and tools to help quantify emission reductions; and two real-world examples of measures proposed for SIP credit.

The guidance covers electric-sector projects, initiatives, or measures that result in quantifiable emission reductions at fossil-fuel-fired electric generating units and improve air quality in non-attainment areas. Example measures include: programs that replace existing electrical devices with more efficient ones; projects that save energy through design, construction, or reconstruction; and programs that increase the generation of electricity from renewable resources, such as CHP. [Read More]

Emissions Performance Standards for Equipment

Publications
On June 20, 2007, EPA proposed to strengthen the national ambient air quality standards for ground-level ozone, the primary component of smog. The proposed revisions reflect new scientific evidence about ozone and its effects on people and public welfare. EPA's proposal would revise both ozone standards: the primary standard, designed to protect human health; and the secondary standard, designed to protect welfare (such as vegetation and crops).

EPA will take public comment for 90 days following publication of the proposal in the Federal Register. The agency also will hold four public hearings on the proposal in: Los Angeles and Philadelphia on Aug. 30, and Chicago and Houston on Sept. 5.
Air quality trends can vary from one area to another. Local trends are available at individual monitoring locations with an adequate record of historical data. Please visit this EPA website for trend data on the following pollutants: Carbon Monoxide, Ground-level Ozone, Lead, Nitrogen Dioxide, Particulate Matter, and Sulfur Dioxide.
The AirData Web site gives you access to air pollution data for the entire United States. Want to know the highest ozone level measured in your state last year? Ever wonder where air pollution monitoring sites are located? Are there sources of air pollution in your town? You can find out here! AirData produces reports and maps of air pollution data based on criteria that you specify.
This database is organized by state. Click on an individual state on the map or choose a state from the drop-down box. Each state page provides information for emissions regulations, siting regulations and regulatory codes. Additionally, information is presented on "exit fees", standby rates and economic incentives if information is available. The database provides an extensive assortment of links to other sites for further information. (Maintained by Energy & Environmental Analysis, Inc.)
NREL, 2002 - Relatively small distributed generation projects offer unique opportunities for enhancing the U.S. electric system. This report finds that current air quality regulatory practices are inappropriately inhibiting the development of DG through a failure to recognize the environmental benefits offered by DG or by imposing requirements designed for larger systems that are not appropriate to DG systems. The report recommends that air quality regulation be made more efficient and appropriate for DG by establishing national standards for DG equipment.
University of California Energy Institute, May 2005 - The authors of this paper conducted a series of case studies within California that combined air dispersion modeling and exposure assessment to investigate the air pollution impacts of DG compared to central power stations. They conclude that states should be cautious to embrace distributed generation.
Draft Report - U.S. EPA, September 2005
Page Updated/Reviewed: 08/29/2007 9:45 AM