The climate change debate has spawned considerable activity by regulators and legislators alike, with the result so far being a little bit of regulation and a lot of uncertainty as to what the regulatory picture will look like in the future. Some clarity is emerging, though.

With Senate Majority Leader Harry Reid's announcement in July that climate provisions were being stripped from proposed energy legislation, effectively ruling out Congressional action on climate change legislation this year, it appears that, at least for the near term, greenhouse gases (GHGs) will be regulated under the Clean Air Act (CAA) by the U.S. Environmental Protection Agency (EPA) and those states to whom the EPA has delegated authority to implement the CAA permit programs. The EPA has some regulations in place already and others set to take effect in the near future. The following is a general overview of the emerging picture with comments on how the new regulations may apply to various classes of businesses. More detailed information is available using the link within the Contact Us section below or the first option within the Useful Links section to the left.

• Large and Specialized Facilities Only—Unless your facility is a major emitter of GHGs, or one of an identified list of specialized types of facilities, it is not likely that your facility is covered under any of the existing or near-future EPA GHG regulations. The majority of boilers and other combustion units used by small- and medium-sized businesses do not meet the threshold for regulation. Rules expected to be promulgated by the Minnesota Pollution Control Agency (MPCA) in 2011 may cast a somewhat wider net, but the reach of those rules remains to be seen.
• GHG Reporting Is in Effect—If you are a large emitter of GHGs or one of the specialized types of facilities identified by the EPA, you may be required to record and report your GHG emissions for 2010. The EPA Mandatory Reporting of Greenhouse Gases Rule (MRR), which requires reporting of emissions of carbon dioxide (CO₂) and other GHGs, is already in effect. For facilities covered under the MRR, the first annual GHG emissions report is due to EPA on March 31, 2011. The MPCA is expected to issue its own mandatory reporting rule in 2011.
• GHG Permit Requirements Are Coming Soon—If your facility is among the largest stationary GHG emitters, the new EPA Tailoring Rule may impose additional requirements on your facility through the CAA Prevention of Significant Deterioration (PSD) and Title V permitting programs. Beginning on January 2, 2011, certain facilities will have PSD and/or Title V permit requirements relating to GHGs. These requirements will cover an increasing number of facilities in multiple future phases. For facilities covered under the PSD and/or Title V programs, specified control technology requirements also will likely be required. However, unless you are constructing a new emissions unit or making a change that significantly increases the facility's potential to emit a pollutant other than GHGs, you will not be subject to any of the new requirements under the EPA Tailoring Rule until at least July 2011.
• Additional Guidance and Regulations on the Horizon—EPA continues to develop regulations in preparation for the rapidly advancing January 2, 2011, Tailoring Rule effective date. The EPA is expected to address possible control requirements this fall. The agency is evaluating whether to develop new source performance standards for specific industry sectors and is in the process of generating guidance on best available control technology (BACT) for GHGs. The EPA also has proposed rules relating to state implementation plans under the CAA.