&EPA
  United States
  Environmental Protection
  Agency

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                              LANDFILL METHANE
                              OUTREACH PROGRAM

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State Primer
                                    :
                       A Primer for the


                       Commonwealth of
                       	

                       Pennsylvania for Developing
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                       Landfill Gas Utilization



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                              Printed on paper that contains at least

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Contents
   Foreward  	iii
   Introduction
       1.  Primer Goals 	1
          1.1   Primer Use 	1
          1.2   Information in the Primer	1
       2.  Landfill Gas Energy Recovery Benefits and Projects in Pennsylvania	3
          2.1   LFG Energy Recovery Benefits  	3
          2.2   LFG Energy Projects in Pennsylvania 	4
          2.3   Candidate Facilities for LFG Utilization Projects 	7
       3.  Landfill Methane Outreach  Program 	8
       4.  Further Information	8
   Part 1—Regulations and  Permits
       1.  Overview of Federal Regulations and  Permits 	9
          1.1.  Clean Air Act (CAA) 	9
          1.2.  Resource Conservation and Recovery Act (Subtitle D)	12
          1.3.  National Pollutant Discharge Elimination System (NPDES) Permit	13
          1.4.  Clean Water Act, Section 401 	14
          1.5.  Other Federal Permit Programs	14
       2.  State of Pennsylvania Regulations and Permits  	14
          2.1   Municipal Waste Permit 	14
          2.2   Bureau of Air Quality (AQ) Regulation 	16
       3.  Overview of Local Regulations and Permits 	21
          3.1   Steps to Successful Local Permits Approval 	21
          3.2   Typical  Local Permits 	22
          3.3   Local Health Departments  	22
   Part 2—Incentive Programs
       1.  Overview of Federal Incentive Programs 	23
          1.1.  Qualifying Facilities Certification	23
          1.2.  Section 29 Tax Credit	24
          1.3.  Section 45 Tax Credit	24
       2.  State of Pennsylvania Incentive Programs 	25
          2.1   Office of Energy and Technology Development	25
          2.2   Act 198 for Waste Minimization  	25

                     A Primer for the Commonwealth of Pennsylvania for Developing Landfill Gas Utilization       i

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  3.  Electricity Restructuring and Landfill Gas Energy	25
     3.1  What Is Electricity Restructuring	25
     3.2  Effect of Renewable Energy Programs on LFG Recovery	26
     3.3  Marketing LFG Recovery as Green Power	27
  4.  Voluntary Reporting of Greenhouse Gases Program 	28

Tables
  Table 2.1.    Pennsylvania Landfills Currently Operating a Gas Recovery Project  	5
  Table 3.1.    A Summary Table for Pennsylvania Department of Environmental Protection
              Regulations/Permits	20
  A Primer for the Commonwealth of Pennsylvania for Developing Landfill Gas Utilization

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       FO REWARD

Promoting Pennsylvania's indigenous alternative energy resources is a critical mission for the
Commonwealth. With full support from Governor Rendell, the Pennsylvania Department of Environmental
Protection (DEP) has launched a number of initiatives that encourage the development and use of clean
and renewable energy projects from alternative energy sources such as biomass, wind, solar, small-scale
hydroelectric, waste-coal, coal-bed methane, and landfill methane gas.

Pennsylvania has encouraged expansion of the use of alternative energy sources, such as landfill
methane gas, by increasing the state's purchase of green electricity  from 5 percent to 10 percent,
beginning July  1, 2004, with a commitment to increase that amount to 20 percent in the future.  DEP
has recommended that qualifying alternative energy sources include: wind, solar and biomass,  as well
as landfill methane gas. DEP has also supported the establishment of an Advanced Energy Portfolio
Standard, which would require 10 percent of the electricity sold in Pennsylvania to be generated from
alternative energy sources. DEP has proposed that landfill methane  gas be included in the portfolio.

New funding opportunities such as the Energy Harvest Grant Program have already issued an alternative
energy grant for a cogeneration project using landfill methane gas to generate electricity and as a fuel
source for heating. Established programs such as the Alternative Fuels Incentive Grant (AFIG)  program will
continue to provide funding opportunities to  landfill operators to install cleaning, liquefying,  and  distribution
equipment for using  landfill methane gas as a transportation fuel, as well as covering a percentage of the
cost to purchase vehicles that operate on the landfill methane gas.

Finally, Pennsylvania's commitment to financing both large- and small-scale advanced indigenous
alternative energy projects was underscored this year by the reauthorization of the Pennsylvania Energy
Development Authority (PEDA). PEDAhas $300 million in non-revenue bonding authority.

DEP is embracing advanced alternative energy sources because they will not only help to restore
Pennsylvania's environment by ensuring that more power generation comes from environmentally
beneficial resources, but will also promote economic development by encouraging investments  in clean
technologies and fostering the local development and deployment of indigenous energy resources.
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   Introduction
        Primer Goals


Throughout the country, the number of landfill gas (LFG) utilization projects is growing. Recovering
methane gas at solid waste landfills provides significant environmental and economic benefits by
eliminating methane emissions while capturing the emissions' energy value. The methane captured from
landfills can be transformed into a cost-effective fuel source for generating electricity and heat, firing
boilers, or even powering vehicles.

Permits, incentive programs, and policies for LFG project development vary greatly from state to state.
To guide LFG project developers through the state permitting process and to help them take advantage of
state incentive programs, the U.S. Environmental Protection Agency's (EPA's) Landfill Methane Outreach
Program (LMOP) has worked with state agencies to develop individual primers for states participating in
the State Partner Program. By  presenting the latest information on federal and state of Pennsylvania
regulations and incentives affecting LFG projects in this primer, LMOP and Pennsylvania State Officials
hope to facilitate development of many of candidate and potential landfills.

To develop this primer,  the Pennsylvania Department of Environmental Protection (DEP) identified all the
permits and funding programs that could apply to LFG  projects developed in Pennsylvania. It should be
noted, however, that the regulations, agencies, and policies described are subject to change. Changes can
occur through state legislation or rulemaking or when the federal government proposes new directions for
state and local governments. LFG project developers should verify and continuously monitor the status  of
laws and rules that  might affect their plans or the operations of their projects.

1.1.  Primer  Use

This primer is designed to help facilitate the recovery of LFG in the state of Pennsylvania. It provides
information for landfill owners, operators, and developers of LFG projects as well as all other participants
such as:
       • Engineers                         • Utility regulators

       • Utility companies                   • Community officials

       • Equipment vendors                  • Public/local environmental groups

       • Independent power producers        • State regulators

1.2.  Information in the Primer

If you are interested in  taking advantage of the economic and environmental opportunities in LFG  recovery
in Pennsylvania, you will need to know the regulatory requirements that apply.

You will also need to know the  economic incentives available to help make these projects more
economically viable. To address these needs, this primer covers the following topics:
       •  LFG Projects in Pennsylvania: This section provides information on the  Pennsylvania landfills
          that currently have operating LFG projects.
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          Federal Regulations and Permits: This section provides information on federal regulations that
          may pertain to LFG projects, including solid waste, air quality, and water quality regulations.

          State Regulations and Permits: This section provides information on DEP permits that apply to
          LFG recovery projects in Pennsylvania.

          Local Regulations and Permits: Local permit approval will often be needed for LFG projects.

          Federal Incentive Programs: This section presents information on federal incentives that may
          apply to LFG projects.

          State Incentive Programs: This section presents information about environmental
          infrastructure financing opportunities in the state of Pennsylvania.

          Electricity Restructuring: This section discusses how renewable energy provisions in state elec-
          tricity restructuring regulations might apply to LFG projects.

          Voluntary Reporting of Greenhouse Gases: This section discusses a program allowing organi-
          zations to gain recognition for environmental achievements related to greenhouse gas
          emissions.

          Environmental Benefits of LFG Recovery: This section discusses the environmental
          benefits of LFG recovery for use  in the public involvement process to facilitate the approval
          of necessary permits and  local government approvals.
        Landfill Gas Energy  Recovery  Benefits and
        Projects  in Pennsylvania
2.1.  Landfill  Gas Energy Recovery Benefits

The use of landfill gas (LFG) for creating energy has economic and environmental benefits, such as:
       •   Reducing the use of fossil fuels such as coal and natural gas.
       •   Reducing methane emissions,  which is a potent greenhouse gas.
       •   Reducing local air pollution.
       •   Creating jobs, revenues, and cost savings

Despite its many benefits,  LFG emitted from decomposing garbage is a reliable and renewable fuel
option that remains largely untapped at many landfills. Generating energy from LFG creates a number of
environmental and economic benefits:

Directly  Reduces Greenhouse Gas Emissions

Municipal  solid waste landfills are the largest human-generated source of methane emissions in the
United States. Given that all landfills generate methane gas, it makes sense to use the gas for the
beneficial  purpose of energy generation rather than emitting it into the atmosphere. Methane gas is a very
potent greenhouse gas that is a key contributor to global climate  change (more than 21 times stronger than
CO2). Methane also has a  short (10-year)  atmospheric life. Since methane is both potent and short-lived,
reducing methane emissions from landfills is one of the best ways to achieve a near-term beneficial impact
in mitigating global climate change.


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It is estimated that an LFG project will capture roughly 60 to 90 percent of the methane emitted from the
landfill, depending on the system design and effectiveness. The captured methane is destroyed (converted
to water and the much less potent CO2) when the gas is burned to produce electricity.  The greenhouse gas
reduction benefits of a typical 4-megawatt LFG project equate to planting over 60,000 acres of forest per
year or removing the annual carbon dioxide emissions from over 45,000 cars. This amount of energy would
also offset the use of 1,000 railcars of coal or prevent the use of almost 500,000 barrels of oil.

Directly Reduces Air  Pollution

Producing energy from LFG avoids the need to use non-renewable resources such as coal,  oil, or natural
gas to produce the same amount of energy. LFG projects can reduce gas end-user and power plant
emissions of CO2 and pollutants such as sulfur dioxide (which is a major contributor to acid rain),
particulate matter (a respiratory health concern), nitrogen oxides (NOX), and trace hazardous air pollutants.

It should be noted that LFG electricity generation devices, like all combustion devices,  generate some
emissions of NOX, which can contribute to local ozone and smog formation.  Depending on the fuels and
technologies used by the power plant and the landfill project, the NOX emission reductions from the power
plant may not completely offset the NOX emitted from the LFG electricity  project. However, the overall
environmental improvement from LFG electricity generation projects  is significant because of the large
methane  reductions, hazardous air pollutant reductions, and avoidance of the use of limited  non-renewable
resources such as coal and oil that are more polluting than LFG.

Benefits the Local Economy

Collecting LFG to produce electricity improves the air quality of the surrounding community by  reducing
landfill odors. Burning LFG to produce electricity also destroys most  of the non-methane organic
compounds that are present at low concentrations in uncontrolled LFG, thereby reducing possible health
risks from these compounds. Gas collection can also improve safety by reducing explosion hazards from
gas accumulation in structures on or near the landfill. Generating electricity from existing landfills is also
a relatively cost-effective way to provide new renewable energy generation capacity to supply community
power needs, and it can create jobs that help build the  local economy.

LFG projects generate revenue from the sale of the gas. LFG use can also create jobs associated with
the design, construction, and operation of energy recovery systems.  LFG projects  involve engineers,
construction firms, equipment vendors, and utilities or end-users of the power produced. Much of this cost
is spent locally for drilling, piping, construction, and operational personnel, helping communities to realize
economic benefits from increased employment and local sales. Businesses are also realizing the cost
savings associated with using LFG as a replacement for more expensive fossil fuels, such as natural gas.
Some companies will save millions of dollars over the life of their LFG energy projects.

Reduces Environmental Compliance Costs

Current regulations under the Clean Air Act require landfills to collect and combust LFG. There are several
compliance options, including flaring the gas, or installing an LFG use system. Only  LFG energy recovery
offers communities  and landfill owners the opportunity to reduce the  costs associated with regulatory
compliance by turning pollution  into  a valuable community resource.
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2.2.  LFG Energy Projects  in Pennsylvania

The Pennsylvania Department of Environmental Protection (DEP) is a member of the LMOP State Partner
Program, which encourages cooperation between EPA and state energy and environmental agencies to
promote the development of LFG resources. Pennsylvania's Landfill Gas Recovery Program focuses
on facilitating LMOP possibilities by providing regulatory information, state incentives (such as grants),
and assisting landfills by identifying end users so they can work together to promote  new energy and
environmental opportunities from which all Pennsylvania residents will benefit. The operator of a landfill
may identify the benefits of a gas project as part of the environmental assessment phase of applications
submitted to DEP.

There are currently over 20 landfills in Pennsylvania operating more than 24  LFG recovery projects for
beneficial use as of June 2004, with other projects under construction. Based on a 1999 EPA report, there
were eight operational direct-use projects delivering 28 million standard cubic feet per day of gas to indus-
trial and commercial end users. According to the DEP, at least 20 additional landfills have the potential to
operate an economically viable gas recovery system.

In 1986, the Greater Lebanon Refuse Authority Landfill started an LFG recovery project for the beneficial
use of methane gas, making it the first landfill in Pennsylvania to do so. The beneficial use of methane gas
has a broad scope. At the Lycoming County Landfill, LFG is used to fuel two  on-site boilers, which heat
buildings, such as the  recycling center,  during cold weather. A common use for LFG in Pennsylvania is
burning the gas to produce electricity. The electricity is either sold to a local power utility that incorporates
the electricity onto the electrical grid system or is used by the generating facility.

In addition to the electrical power provided by these landfills, economic benefits from these projects create
jobs and  tax revenue.  Earlier this year, the EPA conducted a study in Pennsylvania to determine the eco-
nomic benefits of the average 3  MW electricity project. This  study reviewed direct,  indirect, and  induced
economic affects throughout the entire supply chain of the project. The study estimated the construction
costs and annual operating costs of a typical LFG electricity project and  used readily available economic
multipliers to estimate  total effects on the local and state economy and employment.  The results of the
study, highlighted below, are intended to be a general approximation for a typical project rather than  a
detailed analysis of an individual project.
        •   Direct spending during construction for locally purchased materials and five full time equivalents
           (FTE) of construction labor is $900,000. Considering  ripple effects, this spending adds about
           $2.3 million to Pennsylvania's total output (overall production), up to $1,558,000 in earnings,
           and more than 14 jobs during construction of the project.

        •   Nationally,  each 3 MW project is estimated to increase output by $14 million, earnings by
           $3.5 million and add 90 jobs during the construction phase.

        •   Once in operation, the plant will add a $220,000 payroll to the local economy, which generates
           $913,000 in earnings statewide.

        •   Corporate and personal income taxes on the plant payroll generate about $13,800 in state
           revenues.

        •   Property taxes and school district taxes generate about $14,400 for local  governments.

        •   Revenues from the indirect and induced earning would be about three times these amounts.
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In Pennsylvania, the Wayne Township Landfill in 2000 devised an innovative yet simple approach to
solving potentially harmful emissions from the landfill. The Solid Waste Authority partnered with the Jersey
Shore Steel Company to capture and utilize LFG as an alternative source of energy. The LFG is currently
being used as a medium-Btu gas for reheating railroad rails to create a high-quality angle iron. The landfill
provides approximately 600 cubic feet per minute to the mill, or 18 million Btu  per hour.

The following table describes the projects at Pennsylvania's 21  landfills currently operating an LFG
recovery project.
 Table 2.1
Pennsylvania Landfills Currently Operating a Gas Recovery Project
Landfill Name
Amity Landfill, Environmental &
Recycling Services, Residual Waste LF
Bradford County Landfill
Commonwealth Environmental
Systems (CES) Landfill
Dauphin Meadows Landfill
Grand Central Sanitary Landfill
Greater Lebanon Refuse Authority Landfill
Greenridge Reclamation
GROWS Landfill
Keystone Landfill
Lake View Landfill
Lycoming County Landfill
Lycoming County Landfill
Modern Landfill
Monroeville Landfill
Mountain View Landfill
Methane Use
Electricity
Electricity
Direct Use
Direct Use
Electricity
Electricity
Direct Use
Direct Use
Electricity
Electricity
Electricity
Direct Use
Electricity
Direct Use
Electricity
Beneficial Use
Production of electricity
Production of electricity
Under-construction production
of electricity. Generating
steam used to convert raw
potatoes into dehydrated flakes.
Leachate evaporation
Production of electricity
Production of electricity
Leachate evaporation
Pipeline to gas utility
Production of electricity, power
sold to wholesaler and a plastic
manufacturer
Production of electricity, used
on site, surplus sold to power
company
Production of electricity
Used to heat building
Production of electricity, used
on site, surplus sold to power
company
Pipeline to gas utility
LFG blended with petroleum-
based liquid fuel for production
of electricity
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Pottstown Landfill
Rolling Hills Landfill
Southern Alleghenies Landfill
Superior (Onyx) Greentree Landfill
Tullytown Landfill
Valley Landfill
Wayne Township Landfill
Electricity
Electricity
Direct Use
Direct Use
Direct Use
Direct Use
Direct Use
Production of electricity
Under construction for
production of electricity
Leachate evaporation
Under construction. Pipeline to
gas utility
Pipeline to gas utility
Pipeline to gas utility
Piped to a steel company for
use as a fuel source
The following photographs depict a recently operational LFG recovery facility in Pennsylvania.
Figure 1—An aerial view of a landfill with the surrounding industry and the LFG recovery and conversion
project at Mountain View in Pennsylvania.  Methane gas is sent to the INGENCO Distributed Energy facility
through approximately one mile of pipe.
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Figure 2—Indicates several engines at INGNECO, which run by methane gas, turning generators for
electric production that is placed onto the electrical grid system.
2.3.  Candidate Facilities for LFG  Utilization Projects

At least 20 landfills have been identified as candidates for LFG projects in Pennsylvania. These landfills
meet the minimum volume/tonnage requirements for being able to produce an adequate LFG supply.
However, nearly all operating landfills in Pennsylvania  have the capability to provide sufficient LFG
depending on the size and scope of the proposed project. The location of all operating municipal waste
landfills can be found on the Department's Web site at:
          www.dep.state.pa.us/dep/deputate/airwaste/wm/MRW/Docs/LandfillJist.htm

For more information about LFG utilization projects in Pennsylvania, contact the Pennsylvania Department
of Environmental Protection at:
          Bureau of Land  Recycling & Waste Management
          Division of Municipal & Residual Waste
          P.O. Box 8472
          Harrisburg, PA 17105-8472
          (717)787-7381

          Or consult the Department Web  site at:

          www.dep.state.pa.us/lmop
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        Landfill Methane  Outreach Program


To promote the use of LFG as an energy source, EPA has established the Landfill Methane Outreach
Program (LMOP). The goals of LMOP are to reduce methane emissions from landfills by:
       •  Encouraging environmentally and economically beneficial  LFG project development.

       •  Removing barriers to developing LFG projects.

To achieve these goals,  EPA establishes alliances with four key constituencies:
       •  State environmental and energy agencies.

       •  Energy users/providers (including investor owned, municipal and other public power utilities,
          cooperatives, direct end users, and power marketers).

       •  Industry (including developers, engineers, and equipment  vendors).

       •  Community partners (municipal and small private landfill owners and operators, cities, counties,
          and other local governments, and community groups).

EPA establishes these alliances through a Memorandum of Understanding (MOD). By signing the MOD,
each Partner acknowledges a shared commitment to promoting LFG energy recovery at solid waste
landfills, recognizes that the widespread use of LFG as an energy resource will reduce methane and other
air emissions, and commits to certain activities that enhance the development of this resource.

As of December 2004, more than 380 operational LFG energy projects in the United  States and EPA estimates
that more than 600 landfills across the United States could install economically viable LFG  projects.
        Further Information
For further information about the Landfill Methane Outreach Program, contact:
          U.S. Environmental Protection Agency
          Landfill Methane Outreach Program (6207J)
          1200 Pennsylvania Avenue, N.W.
          Washington DC 20460
          (888) STAR-YES (782-7937), Fax (202) 565-2077

          www.epa.gov/lmop
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        Overview of Federal  Regulations  and  Permits
The following section discusses federal regulations that may pertain to landfill gas (LFG) projects. LFG
projects may be subject to solid waste, air quality, and water quality regulations. The federal regulations
are presented in general terms because individual state/local governments generally develop their own
regulations for carrying out the federal mandates. Specific requirements may therefore differ among states.
Project developers will need to contact relevant federal agencies and, in some cases, state agencies for
more detailed information and applications.

The discussion of each key federal regulation/permit contains three components:
        •  Importance of the regulation/permit to LFG project developers

        •  Applicability to LFG projects

        •  Description of each regulation/permit

1.1.  Clean  Air Act

The Clean Air Act (CAA)  regulates emissions of pollutants to protect public health and the  environment.
The CAA contains three provisions that may affect LFG projects. The first two provisions, the New Source
Performance Standards (NSPS)/Emission Guidelines (EG) and New Source Review (NSR), are currently in
effect. The third provision, the Maximum Achievable Control Technology (MACT) standard, was proposed
and finalized.

Facilities planning to construct a new LFG system or those planning to modify a landfill operation to incor-
porate an LFG  system must obtain a Construction and Operating Permit from the responsible air regulatory
agency if emissions from the project exceed the major facility emission thresholds. The Construction and
Operating Permit specifies the NSPS/EG, and NSR requirements that the project must meet. The general
requirements of the NSPS/EG, NSR, and Title V for LFG  projects are discussed below.

NSPS  and EG for Municipal Solid Waste Landfills

Importance      LFG projects can be part of a compliance strategy to meet EPAs emissions standards
               for LFG.

Applicability     Landfills meeting certain design capacity, age, and emissions criteria are  required to
               collect LFG. Numerous control options to combust LFG are provided to landfill
               owner/operators, including but not limited to LFG projects.

Description      EPA final regulations under the CAA amendments require affected landfills to collect and
               control LFG. Specifically, landfills that are 2.5 million mega grams and 2.5 million cubic
               meters in size and have estimated emissions of non-methane organic compounds
               (NMOC) of at least 50 mega grams per year must reduce their emissions of LFG. The
               regulations identify NMOC as a surrogate for LFG. Therefore, the emission reductions
               required in the rules are specified as reductions of NMOC.

               LFG emissions are targeted in these rules because of the potential negative impact on
               human health and the environment from the volatile organic compounds contained in the
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                gas. In addition, the contribution of LFG to local smog formation, local odors, and potential
                explosives were included in the decisionmaking process. Finally, the potential for landfill
                fires was also factored into the decision.

                For landfills that received waste after November 8, 1987 ("existing landfills"), the Emission
                Guidelines (40 CFR Part 60 Subpart Cc) apply. For landfills that commenced construction,
                reconstruction, or modification on or after May 30, 1991 ("new landfills"), the New Source
                Performance Standards (40 CFR Part 60 Subpart WWW) apply. The collection  and control
                requirements in each of these standards are the same; only the start of the compliance
                clock differs.

                The final regulations can be found in the Federal Register, March 12, 1996, Vol. 61, No.
                49, pages 92579262.

                The basic requirements are the same for both existing and new landfills. Landfills that
                meet both of the following criteria must comply with the regulations.
                     Capacity. Maximum design capacity greater than or equal to 2.5 million Mg (and 2.5
                     million cubic meters, about 2.75 million tons). If NMOC emissions are less than 50
                     Mg for a facility greater than 2.5 million Mg and 2.5 million cubic meters,  reporting is
                     required. If the annual emissions are 50 Mg or more for these landfills, collection
                     and control of LFG are  required.1

                     Emissions. Annual NMOC emission rate is  greater than 50 Mg (about 55 tons).

Air Emissions: New Source Review Permitting Process

Importance      New LFG projects may be required to  obtain construction permits under New Source
                Review (NSR). Depending on the area in which the project is located, obtaining these
                permits may be the most critical aspect of project approval.

Applicability     The combustion of LFG results  in emissions of carbon monoxide, oxides of nitrogen, and
                particulate matter (PM10). Requirements vary for control of these emissions depending on
                local air quality. The relevant standards for a particular area will be discussed in Section 2,
                State Standards and Permits. Applicability of these standards to LFG projects will depend
                on the level of emissions resulting from the technology used in the project and  the
                project's location (i.e., attainment or non-attainment area).

Description      CAA regulations require new stationary sources and modifications to existing sources
                of certain air emissions to undergo NSR before they can operate. The purpose of these
                regulations is to ensure that sources meet the applicable air quality standards for the area
                in which they are located. Because these regulations are complex, a landfill owner or
                operator or the owner/operator of the LFG project  may want to consult an attorney or expert
                familiar with NSR for more information about permit requirements in a particular area.

                The existing CAA regulations for attainment and maintenance of ambient air quality
                standards regulate six criteria pollutants: ozone, nitrogen dioxide (NO2), carbon monoxide
                (CO), particulate matter (PM10), sulfur dioxide (SO2), and lead. The CAA authorizes the
                EPA to set National Ambient Air Quality Standards (NAAQS) for each of the six criteria
                pollutants. Areas that meet the NAAQS for a particular air pollutant are classified as being
                in "attainment" for that pollutant and those that do not are in "non-attainment." Because
1 Class I areas are specified under the Clean Air Act and include national parks. Projects situated within a certain distance
 from Class I areas are subject to more stringent criteria for emissions levels.

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                each state is required to develop an air quality implementation plan (called a State
                Implementation Plan  or SIP) to attain and maintain compliance with the NAAQS in each
                Air Quality Control Region within the state, specific permit requirements will vary by state.
                However, the minimum requirements of the federal permitting regulations must still be
                met.  (See 40 CFR 51.16051.166 for more information.)

                The location of the LFG project will dictate what kind of construction and operating permits
                are required. If the LFG project is located in an area that is in attainment for a particular
                pollutant, the LFG project must undergo Prevention of Significant Deterioration permitting for
                that pollutant (and possibly others). Non-attainment Area permitting is required for those  LFG
                projects that are located in areas that do not meet the NAAQS for a particular air pollutant.
                Furthermore, the level of emissions from the project determines whether the project must
                undergo major NSR or minor NSR. The requirements of major NSR permitting are greater
                than those for minor NSR. The following provides more detail on new source permits.

Prevention of Significant Deterioration Permitting

Prevention of Significant Deterioration (PSD) review is used in attainment areas to determine whether a
new or modified emissions source will cause significant deterioration of local air quality. The State air office
can assist LFG project developers in determining whether a proposed project requires PSD approval.

All areas are governed to some extent by PSD regulations, because no location is in non-attainment for all
criteria pollutants. At this time, applicants must determine PSD applicability for each individual pollutant
based on its attainment/non-attainment status.  For gas fired sources, a PSD major NSR is required if the
new source will emit or has the  potential to emit any criteria pollutant at a level greater than 250 tons per
year (unless it is a listed source category).

If the source is considered major, the PSD major NSR permit process is required for the major pollutant
(except for a non-attainment pollutant) and any other pollutant emitted in  significant amounts. This process
requires in  part that applicants determine the maximum degree of reduction achievable through the
application of available control strategies. Major sources generally must undergo the following PSD steps:
        •   Best Available Control Technology (BACT) analysis

        •   Monitoring of local air quality

        •   Source impact analysis/modeling

        •   Additional impact analysis/modeling (i.e., impact on vegetation, visibility and Class I areas)2

Minor sources (i.e., below 100/250 tons per year) are exempt from this process, but these sources may still be
required to obtain a construction  and operating air permit. See 40 CFR 52.21 for more information on PSD.

Non-attainment Air Permitting

A source locating in an area that has been designated non-attainment for one or more of the six criteria
pollutants may be subject to the non-attainment NSR for such pollutants. Ozone is the most pervasive
non-attainment pollutant and the one most likely to affect LFG projects. A proposed new emissions source,
or modification of an existing source located in a non-attainment area, must undergo a non-attainment  major
2 Class I areas are specified under the Clean Air Act and include national parks. Projects situated within a certain distance
 from Class I  areas are subject to more stringent criteria for emissions levels.

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NSR if the new source or the modification is classified as major (i.e., if the new or modified source exceeds
specified emissions thresholds, typically 100 tons per year, but lower in some cases for VOC/NOX and PM-10).
To obtain a non-attainment NSR permit for criteria pollutants, a project must meet several requirements:
        •  Use technology that achieves the Lowest Achievable Emissions Rate (LAER) for the
          non-attainment pollutant.

        •  Arrange for an actual emissions reduction at an existing combustion  source that offsets the
          emissions from the new project at specific ratios.

Title V Operating  Permit

Importance     LFG projects will likely be part of a source that is required to obtain an operating permit
               under Title V of the CAA. Regulations  implementing this Title can  be found at 40 CFR
               parts 70 and 71.

Applicability     A source becomes subject to Title V permitting as a result of triggering one or more of the
               applicability criteria found in 40 CFR 70.3 or 71.3. For example, if a source is a major
               source under section 112, section 302, or part D of Title I, then  the source is required to
               obtain a Title V permit. The 12 month deadline for submitting a  timely and complete Title V
               application is triggered by the criterion in 40 CFR 70.3 or 71.3 which first causes a source
               to become subject to Title V.

Description     Title V permits incorporate the requirements of the CAA that apply to a source and clarify
               how these requirements apply. In the process of applying for a  Title V  permit, many
               sources have discovered that they are out of compliance with various  applicable
               requirements. The regulations at 40 CFR parts 70 and 71 require sources to self
               certify compliance with applicable requirements initially and annually and provide an
               opportunity for the public to comment on whether a source is complying with its  applicable
               requirements. A permit requires a  source to promptly report deviations from the permit and
               helps ensure ongoing emissions reductions at the source.

1.2.  Resource Conservation  and Recovery Act (Subtitle D)

Importance     Before an LFG project can be developed, all  Resource Conservation and Recovery
               Act (RCRA) Subtitle D requirements (i.e., requirements for non  hazardous waste
               management) must be satisfied.

Applicability     Methane is explosive in certain concentrations and poses a hazard if it migrates
               beyond the landfill facility boundary. LFG collection systems must meet RCRA Subtitle D
               standards for gas control.

Description     In October 1979, federal regulations were promulgated under Subtitle  D of RCRA that
               required controls on migration of LFG. In 1991, EPA promulgated landfill design  and
               performance standards; the newer standards apply to municipal solid waste landfills that
               were active on or after October 9, 1993.  Specifically, the standards require monitoring of
               LFG and establish performance standards for combustible gas  migration control.
               Monitoring requirements must be met at  landfills not only during their operation,  but
               also for a period  of 30 years after closure.

               Landfills affected by RCRA Subtitle D are required to control gas by establishing a program
               to periodically check for methane emissions and prevent offsite  migration. Landfill owners
               and operators must ensure that the concentration of methane gas does not exceed:
12
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                    Twenty-five percent of the lower explosive limit for methane in facilities' structures.

                    The lower explosive limit for methane at the facility boundary.

               Permitted limits on methane levels reflect the fact that methane is explosive within the
               range of 5 to 15 percent concentration in air. If methane emissions exceed permitted
               limits, corrective action (i.e., installation of an LFG collection system) must be taken.
               Subtitle D may provide an  impetus for some landfills to install energy recovery projects
               in cases where a gas collection system is required for compliance. See 40 CFR Part 258
               for more information.

1.3.  National Pollutant Discharge Elimination System
       (NPDES) Permit

Importance     LFG projects may need to obtain NPDES permits for discharging wastewater that is
               generated during the energy recovery process.

Applicability     LFG condensate forms when water and  other vapors condense out of the gas stream due
               to temperature and  pressure changes within the collection system. This wastewater must
               be removed from the collection system.  LFG projects may also generate wastewater from
               system maintenance and cooling tower blow down.

Description     NPDES permits regulate discharges of pollutants to surface waters. The authority to issue
               these permits is delegated to state governments by EPA. The permits, which typically last
               five years, limit the quantity and concentration of pollutants that may be discharged.
               To ensure compliance with the limits, permits require wastewater treatment or impose
               other operation conditions. State water offices or EPA regional office can provide further
               information on these permits.

               The permits are required for three categories of sources and can be issued as individual
               or general permits. LFG projects would be included in the "wastewater discharges to sur-
               face water from industrial facilities" category and would require an individual  permit. An
               individual permit application for wastewater discharges typically requires the  following
               information:
                    Water supply  volumes

                    Stormwater treatment

                    Water utilization

                    Plant operation

                    Wastewater flow

                    Materials and chemicals used

                    Characteristics and disposal methods

                    Production

                    Planned improvements

                    Other relevant information
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1.4.  Clean Water Act, Section 401

Importance     LFG projects may need CWA Section 401 certification for constructing pipelines that
              cross streams or wetlands.

Applicability    LFG recovery collection pipes or distribution pipes from the landfill to a nearby gas user
              may cross streams or wetlands. If the construction or operation of such pipes causes any
              discharge of sediment into streams or wetlands, Section 401 certification may be required.

Description     Any construction or operation of facilities that results in any discharge into streams or
              wetlands is regulated under Section 401. This requirement may affect the construction of
              LFG project facilities or pipelines to transport LFG.

              The applicant must obtain a water quality certification from the state in which the
              discharge will originate. The certification should then be sent to the U.S. Army Corps of
              Engineers. The certification indicates that such discharge will comply with the applicable
              provisions of Sections 301, 302, 303, 306 and 307 of the Clean Water Act (CWA).

1.5.  Other Federal  Permit Programs

The following are brief descriptions of how other federal permits could apply to LFG project development:
       •  RCRA Subtitle C could apply to an LFG project if it produces hazardous waste. While some
          LFG projects can return condensate to the landfill, many dispose of it through the public
          sewage system after some form of onsite treatment. In some cases, the condensate may
          contain high enough concentrations of heavy metals and organic chemicals for it to be
          classified as a hazardous waste, thus triggering federal regulation.

       •  The Historic Preservation Act of 1966 or the Endangered  Species Act could apply if power lines
          or gas pipelines associated with a project infringe upon an historic site or an area that provides
          habitat for endangered species.
        State  of Pennsylvania  Regulations and  Permits

This section provides information on permits required by the Pennsylvania Department of Environmental
Protection (DEP) for the development of a landfill gas (LFG) project.

2.1.  Municipal Waste  Permits

Applicability to LFG Projects
A person or municipality may not operate a municipal waste processing or disposal facility unless the
person or municipality has first applied for and obtained a permit from the DEP for the facility. AN LFG
recovery project is considered a processing operation and the permit may be obtained through modification
of the landfill's operating permit or through a general permit for processing and/or beneficial use.
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Agency Contact
          Department of Environmental Protection
          Bureau of Land Recycling & Waste Management
          Division of Municipal and Residual Waste
          P.O. Box 8472
          Harrisburg, PA 17105-8472
          (717)787-7381

Description

The municipal waste regulations require that the operator implement an LFG management plan to address
gas monitoring and control. If gas recovery and reuse are proposed as part of the LFG management plan,
the plan must include drawings  and a narrative detailing the location and design of components of the
system. If the landfill operator will  be managing the gas recovery and reuse, the project may be approved
through modification of the existing landfill permit. This can be a major or minor permit modification
depending on the existing landfill permit related to design and operation. If a third party is managing the
gas recovery and reuse project, the operator is required to provide the information as part of a separate
application, normally a general permit for beneficial use. To facilitate the recovery and reuse of LFG, DEP
has developed two general permits for the processing and beneficial use of LFG as a substitute for natural
gas or other fuel (WMGM001 or WMGM002).

Statute/Regulation

Solid Waste  Management Act (35 P.S. § 6018.105(a))
Municipal Waste Regulations, 25 Pa. Code,  Chapters 271 through 285
The regulations are available at the following Web address:
          www. pacode. com/secu re/data/02 5/02 5toc. html

Information Required/Suggestions

The municipal waste regulations also require the operator to demonstrate sufficient financial responsibility
for the operation of processing and disposal facilities. Any LFG collection system will be included in the
financial assurance costs.

DEP strongly encourages all persons interested in obtaining a waste management permit to first contact
the appropriate  Regional Office  to schedule  a pre-application meeting to discuss the permitting procedures.
Locations of DEP Regional Offices can be found in the following Web address.
          www.dep. state, pa. us/dep/deputate/fieldops/default.htm

Application Process

Technical guidance and forms can be obtained from the DEP Web site at:
          www.dep.state.pa. us/dep/deputate/airwaste/wm/MRW/MRW.htm

Public Input/Participation

Permit applications may be subject to any or all of the following: notice in the Pennsylvania Bulletin or other
publication of general circulation; a public meeting; and a public hearing. These opportunities  for public
input are often required by regulation or statute, but may also occur at the discretion of the  Department.
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Review/Approval  Period

For general permits, 60 days for a determination of applicability under an existing general permit and
160 days for a new general permit. The review period for a landfill permit modification is 140 days but
may be variable depending upon whether the application is for a minor or major permit modification.

Fees

$500 for a determination of applicability under the existing general permits related to the processing and
beneficial use of LFG. $300 for a minor modification to an existing landfill operating permit. $7,800 for a
major modification to  an existing landfill operating permit.

2.2.  Bureau of Air  Quality (AQ) Regulation

As stated in Pa. Code Title 25  §127.11 (Plant approval requirements), the construction of either a landfill or
a gas collection system will require the submission of a Plan Approval application and subsequent approval
by the Department. Pa.  Code Title 25 §127.1 requires that the emissions of new sources,  including land-
fills, shall be controlled to the maximum extent possible, consistent with the best available technology
(BAT) as determined  by the Department as of the date of issuance of the Plan Approval for the new
source. Once compliance has  been demonstrated, a five-year Air Quality Operating Permit will be issued.

The following DEP Web address contains the requirements for an AQ permit:
          www.dep.state.pa.us/dep/deputate/airwaste/aq/permits/plan/lnst_pln.pdf

Title  V Operating Permits

Title V facility

A stationary air contamination  source, or a group of stationary sources, located on one or more  contiguous
or adjacent properties, which are under common control of the same person (or persons  under common
control), belonging to  a  single  major industrial  grouping and that are described in subparagraph Title V. For
the purposes of this definition,  a stationary source or group of stationary sources will be considered part of
a single industrial grouping if the air contaminant emitting activities at the source, or group of sources, on
contiguous or adjacent properties belong to the same major group, (i.e., all have the same two-digit code,
as described in the Standard Industrial Classification Manual,  1987).

(i)      A major stationary source under section 112 of the Clean Air Act, is defined as one of the following:
        (A)    For air contaminants other than radionuclides,  a stationary source or group of stationary
              sources  located within a contiguous area and under common control that emits or has the
              potential to emit, in the aggregate, 10 tons per year (tpy) or more of any hazardous air
              pollutant, including any fugitive emissions of the pollutant, which has been listed under
              section 112(b) of the Clean Air Act,  25 tpy or more  of a combination of the hazardous  air
              pollutants, including any fugitive emissions of the pollutants, or the lesser quantity as the
              Administrator of the EPA may establish by regulations promulgated under the Clean Air Act.
              Notwithstanding the above, emissions from an oil or gas exploration or production well, with
              its associated equipment and emissions from a pipeline compressor or pump station,  may
              not be aggregated with emissions from other similar units, whether or not the units are in a
              contiguous area or under common control, to determine whether the units  or stations  are a
              major  source.

        (B)    For radionuclides, the meaning specified by the Administrator of the EPA in regulations
              promulgated under the Clean Air Act.

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A major stationary source of air pollutants, as defined in section 302 of the Clean Air Act
(42 U.S.C.A. § 7602), that directly emits or has the potential to emit, 100 tpy or more of any
air contaminant, including a major source of fugitive emissions of the pollutant, as determined
by regulations established under the Clean Air Act. The fugitive emissions of a stationary source
may not be considered in determining whether it is a major stationary source for the purposes of
section 3020 of the Clean Air Act, unless the source belongs to one or more of the following
categories of stationary source:
(A)     Coal cleaning plants, with thermal dryers
(B)     Kraft pulp mills
(C)     Portland cement plants
(D)     Primary zinc smelters
(E)     Iron and steel mills
(F)     Primary aluminum ore  reduction plants
(G)     Primary copper smelters
(H)     Municipal incinerators capable of charging more than 250 tons of refuse per day
(I)     Hydrofluoric, sulfuric or nitric acid plants
(J)     Petroleum refineries
(K)     Lime plants
(L)     Phosphate rock processing plants
(M)     Coke oven batteries
(N)     Sulfur recovery plants
(O)     Carbon black plants, furnace process
(P)     Primary lead smelters
(Q)     Fuel conversion plants
(R)     Sintering plants
(S)     Secondary metal production plants
(T)     Chemical process  plants
(U)     Fossil-fuel boilers, or combination thereof, totaling more than 250 million Btus per hour heat
       input
(V)     Petroleum storage and transfer units with a total storage capacity exceeding 300,000
       barrels
(W)    Taconite ore processing plants
(X)     Glass  fiber-processing plants
(Y)     Charcoal production plants
(Z)     Fossil-fuel-fired steam  electric plants of more than 250 million Btus per hour heat input
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        (AA)  Other stationary source categories regulated by a standard promulgated under section
              111 or 112 of the Clean Air Act, but only with respect to air contaminants that have been
              regulated for that category, when required by the Clean Air Act or the regulations thereunder.

(iii)    A major stationary source as defined in Title I, Part D of the Clean Air Act (42  U.S.C.A. §§
       7501—7515), including:
        (A)    For ozone non-attainment areas, sources with the potential to emit 100 tpy or more of
              VOCs or NOX in areas classified as "marginal" or "moderate," 50 tpy or more in areas
              classified as "serious," 25 tpy or more in areas classified as "severe" and  10 tpy or more in
              areas classified as "extreme."

        (B)    For ozone transport regions established under section 184 of the Clean Air Act (42 U.S.C.A.
              § 7511c), sources with the potential to emit 50 tpy or more, of VOCs or 100 tpy or more of
              oxides of NOX.

        (C)    For carbon monoxide non-attainment areas that are classified as "serious," and in which
              stationary sources contribute significantly to carbon monoxide levels as determined under
              rules issued by the Administrator of the EPA, sources with the potential to  emit 50 tpy or
              more of carbon monoxide.

        (D)    For particulate matter (PM-10) non-attainment areas classified as "serious," sources with
              the potential to emit 70 tpy or more of PM-10.

(iv)    A source located at a facility that does not meet the requirements of subparagraphs (i)- (iii) after the
       Administrator of the EPA completes a rulemaking requiring regulation of those sources under Title
       V of the Clean Air Act (42 U.S.C.A. §§ 7661-7661f).

Title V permit

An operating permit issued by the Department to a Title V facility.

Title V regulated air pollutant

For purposes of the requirements of Title V of the Clean Air Act, the term means one or more of the
following:

(i)     NOX or VOCs.

(ii)     An air contaminant for which a National Ambient Air Quality Standard has been promulgated.

(iii)    An air contaminant that is subject to a standard promulgated under section  111 of the Clean Air Act.

(iv)    A Class I or II substance subject to a standard promulgated under or established by Title VI of the
       Clean Air Act  (42 U.S.C.A. §§ 7671-7671g).

(v)     An air contaminant subject to a standard promulgated under section 112 or other requirements
       established under section 112 of the Clean Air Act, including subsections (g), (j) and (r), including
       the following:

(A)    An air contaminant subject to requirements under section 112(j) of the Clean Air Act. If the
       Administrator of the EPA fails to promulgate a standard by the date established under section
       112(e) of the Clean Air Act,  an air contaminant for which a subject source would be major shall
       be considered to be regulated on the  date 18 months after the applicable date established under
       section 112(e) of the Clean Air Act.
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       (B)     An air contaminant for which the requirements of section 112(g)(2) of the Clean Air Act have
              been met, but only with respect to the individual source subject to a section 112(g)(2)
              requirement.

Agency Contact

For further information contact a Facilities Permitting Chief from the appropriate DEP Regional Office:

              Southeast Regional Office           Northeast Regional Office
              2 East Main Street                 Two Public Square
              Norristown,  PA 19401               Wilkes-Barre, PA 19711-0790
              Telephone: (484) 250-5920          Telephone:  (570) 826-2531

              Southcentral Regional Office         Northcentral Regional Office
              909 Elmerton Avenue               208 West 3rd Street, Suite 101
              Harrisburg, PA 17110               Williamsport, PA 17701
              Telephone: (717) 705-4702          Telephone:  (570) 327-3637

              Southwest Regional  Office           Northwest Regional Office
              400 Waterfront Drive                230 Chestnut street
              Pittsburgh, PA 15222-4745           Meadville, PA 16335-3481
              Telephone: (412) 442-4174          Telephone:  (814) 332-6940

Description

Title V is a comprehensive operating permit program that specifies all federally enforceable air regulations
applicable to a facility in one document.

Statute/Regulation

The Clean Air Act (42 USC §§7401 et seq.); 40 CFR Part 70. Pennsylvania Code §127.501-§127.543.

Required/Suggestions

Facilities subject to Part 70 must submit an application within one year of applicability to the Title V
program that describes all sources of air pollution and quantifies emissions from those sources. The
application must identify all applicable federally enforceable requirements to those sources as well.

Application Process

The facility submits an application on forms developed by the Bureau of Air Quality. This application will
contain the information necessary to describe all air pollution sources and quantify emissions from these
sources.

Review Process

Within 60 days of receipt of a Title V application, a completeness review is made. After the application is
deemed administratively complete, a technical review is  performed. When a permit is drafted, it undergoes
several reviews,  including one by the facility. A public notice of the draft permit is then issued for a 30-day
public comment period; if comments are received, the draft is either revised and re-noticed or a reply to the
comments is issued and the permit goes to the EPA for a 45-day  comment period, after which these
comments (if any) are addressed and the permit is finalized.
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Review/Approval Period

All Title V operating permits must be issued within 18 months of receipt.

Fees

Collection of emission fees is necessary to fund the Title V Program. Emissions fees are adjusted annually,
as appropriate, to sufficiently fund the Title V program. Application fees do apply.

Landfills

For non-major source (i.e., non-Title V) and major source landfills, the Bureau of Air Quality has
established a guidance document titled Air Quality Permitting Criteria Including Best Available Technology
Criteria For Municipal Waste Landfills. This document can be found at:
          www.dep.state.pa.us/info.htm

(Click Air Quality; click Regs/Plans;  click Technical Guidance; click Best Available Technology and Other
Permitting Criteria—Effective February 23, 1996).

For non-major source landfills, contact a New Source Review Chief at the appropriate DEP Regional Office:
          Southeast Regional Office              Northeast Regional Office
          2 East Main Street                     Two Public Square
          Norristown, PA 19401                  Wilkes-Barre, PA 19711-0790
          Telephone: (484) 250-5920             Telephone: (570) 826-2531

          Southcentral Regional Office            Northcentral Regional Office
          909 Elmerton Avenue                  208 West 3rd Street, Suite 101
          Harrisburg, PA 17110                  Williamsport, PA 17701
          Telephone: (717) 705-4702             Telephone: (570) 327-3637

          Southwest Regional  Office              Northwest Regional Office
          400 Waterfront Drive                   230 Chestnut street
          Pittsburgh, PA 15222-4745             Meadville, PA 16335-3481
          Telephone: (412) 442-4174             Telephone: (814) 332-6940
 Table 3.1
A Summary Table for Pennsylvania Department of
Environmental Protection Regulations/Permits
Standard                     Permit Agency/Contact                   Length of review period

Minor, Major                  DEP                                   2 to 6 months
Modification or GP             Division of Municipal and
                             Residual Waste
                             P.O. Box 8472
                             Harrisburg, PA 17105-8472
                             (717)787-7381

Bureau of Air Quality           Air Pollution Control Engineer or           Up to 18 months
                             Air Quality Program Specialist
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        Overview  of  Local  Regulations  and  Permits


Within the framework of federal regulations and state of Pennsylvania regulations, local governments
will have some jurisdiction over landfill gas (LFG) development in nearly all cases. Typically, local permits
address issues that affect the surrounding community. These permits generally fall under the categories
of construction, environment and health, land use, and water quality/use. In addition to issuing their own
permits, local governments are also responsible for administering some permits for federal and state of
Pennsylvania regulations. For example, some local governments are responsible for ensuring compliance
with federal air quality regulations. It should be noted, however, that some local standards and regulations
are stricter than state or federal regulations.

3.1.  Steps  to  Successful Local  Permits Approval

The following seven steps will help LFG project developers successfully obtain local permits approval.
       Step 1.       Determine which local authorities have jurisdiction over the project site.

       Step 2.       If necessary, determine route for LFG pipes  and contact easement officials to
                    get easements/right of ways.

       Step 3.       Contact local, city and/or county planning, and public works departments to obtain
                    information about applicable permits and to discuss your plans. Meeting with
                    agency staff to discuss the LFG project and  required permits often helps to
                    expedite the permitting process.

       Step 4.       Obtain essential information regarding each  permit, including:

                    • What information is required.

                    • The permitting process that should be followed.

                    • Time frames, including submittal, hearing, and decision dates.

       Step 5.       Obtain copies of the regulations to compare  and verify what is required in the permit
                    applications.  If they differ, contact the appropriate permitting agency.

       Step 6.       Prepare and provide background information on the environmental benefits of the
                    project, including:

                    • Current emissions from existing LFG control system.

                    • Projected reduction in emissions from existing LFG control system.

                    • Projected emissions from LFG beneficial use.

                    • Emissions offset by LFG beneficial use (i.e. emissions/kwh or emissions/Btu from
                     fossil fuels).

                    • Net emissions  from LFG beneficial use.

       Step 7.       Submit a complete application. Incomplete applications typically result in processing
                    delays.

       Step 8.       Attend meetings or hearings where the application will  be discussed to respond to
                    any questions that are raised. Failure to do so could result in delays.
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3.2.  Typical  Local  Permits

Building Permit

Most county or local governments require building permits for construction. These permits require
compliance with several types of building codes, such as  plumbing and electrical. Atypical building permit
application may require detailed final plans for structures, including electrical and plumbing plans, floor
layout, sewage facilities, storm water drainage plan, size and shape of lot and buildings, setback of
buildings from property lines and drain field, access, size  and shape of foundation walls, air vents,
window access, and heating or cooling plants (if included in the design).

Zoning/Land  Use

Most communities have a zoning and land use plan that identifies where different types of development
are allowed (i.e., residential, commercial, and industrial). The local zoning board determines whether a
particular project meets local land use criteria and can grant variances if conditions warrant. An LFG
project may require an industrial zoning classification.

Storm Water Management

Some local public works departments require a permit for discharges during construction and operation of
an LFG project.  Good facility design that maintains the pre development runoff characteristics of the site
will typically enable the project to meet permitting requirements easily.

Wastewater

The primary types of wastewater likely to be generated by an LFG project include maintenance wastewater
and cooling tower blow down. The local authority or municipal officials should be contacted to provide
information about available wastewater handling capacity and any unique condensate treatment
requirements or permits for landfills.

Fire Hazards and Precautions

The mix of gases in LFG has a moderate to high explosion potential; methane is explosive in concentrations
of 5 to 15 percent in air. Because methane has the potential  to migrate from the landfill to onsite or offsite
structures, it poses a significant public safety hazard.  EPA requires that methane concentrations be less
than 5 percent at a landfill property line, and less than 2.5  percent of the lower explosive limit (LEL) in a
facility's structures. County regulations may call for even stricter standards to be observed at the landfill.
Local  fire departments  often require material safety data sheets for LFG.

Noise

Most local zoning ordinances stipulate the maximum allowable decibel levels from noise sources. These levels
vary depending on the location of the site. For example, LFG recovery projects located near residential areas
will likely have to comply with stricter noise level standards than projects located in non-populated areas.

3.3.  Local Health Departments

The Pennsylvania Department of Health's Web site, shown below, contains information for City and County
health  Departments.
          www. dsf. health, state, pa. us/health/CWP/view.asp?A=180&QUESTION_ID=199412


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   Part 2:  Incentive Programs
        Overview  of  Federal Incentive  Programs
Several federal incentive programs have traditionally applied to landfill gas (LFG) energy projects: the
Section 29 Tax Credit, the Renewable Energy Production Incentive (REPI), and the Qualifying Facilities
(QF) Certification. In October 2004, Congress extended and amended the Section 45 Production Tax
Credit to include LFG electricity projects.

However, as of June 2005, these programs might all be affected by evolving energy legislation. Currently,
the REPI incentive and the Section 29 tax credit are not available to new projects. Projects that have
already qualified for Section 29 tax credits are eligible to receive the tax credit until 2007. The QF
Certification is still available but has been removed from current drafts of the energy bill legislation.
Information about the Section 45, Section 29, and QF Certification credits are provided below.

For the latest updates on state and federal incentives, please refer to the following sources:
       •  LMOP's Funding Guide—http://www.epa.gov/lmop/res/index.htmS1

       •  Database for State Incentives for Renewable Energy—http://www.dsireusa.org

1.1.  Qualifying Facilities Certification

LFG projects that generate electricity will benefit from Qualifying Facilities (QF) certification, which is
granted through the Federal Energy Regulatory Commission (FERC). The following describes the benefits
of QF status and the steps for applying for such status.

The Public Utility Regulatory Policies Act (PURPA), one of five parts of the National Energy Act of 1978,
was designed to promote energy conservation and security by removing barriers to the development of
cogeneration facilities and facilities that use waste fuels or renewable fuels. Such facilities are called
Qualifying Facilities (QF). Under PURPA, utilities are required to purchase electricity from QF at each
utility's avoided cost of generating power. PURPA provides that a small power production facility, such
as a LFG project that meets FERC standards, can become a QF.

To apply for QF status, applicants must prepare either (1) a Notice of Self-Certification, which asserts
compliance with FERC technical and ownership criteria, or (2) an Application for Commission Certification
of Qualifying Status, which requires a draft Federal Register notice and which provides actual FERC
approval of QF status. In either case, the applicant must also file Form 565, which is  a list of questions
about the project, and must pay any filing fees associated with certifications, exemptions, and other
activities. FERC will provide the QF "Info Packet" that describes the necessary steps, requirements, and
background information. After submitting the initial application, the applicant may be asked o provide fur-
ther justifications and submittal of information. To obtain the QF information and application packet,
contact:
          Federal Energy Regulatory Commission
          Qualifying Facilities Division
          825 North Capitol Street, N.E.
          Washington, DC 20426
          Phone: (202) 208-0577
          www.ferc.fed.us
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Again, please check the status for QF Certification when energy legislation is implemented.

1.2.  Section 29  Tax Credit

Developers of LFG projects who sell LFG to an unrelated third party may qualify for a tax credit under
Section 29 of the Internal Revenue Service (IRS) tax code. In order to take advantage of the Section 29
credit, project developers may bring in an outside party when developing power projects. The Section 29
tax credit was established in 1979 to encourage development of unconventional gas resources, such as
LFG. Section 29 tax credits are  available through 2007 to LFG projects with a contract in place as of
December 31, 1996 and that were placed in service by June 30, 1998. The credit has been extended
several times by the U.S. Congress, but there is no guarantee that these extensions will continue. The
credit is worth $3.00 per barrel of oil-equivalent (on a MM Btu basis) and is adjusted annually for inflation.
Currently, it is worth $0.979 per MM Btu, which is approximately 1.2 0/kWh for a typical LFG electricity
project. This credit applies to existing projects only.

1.3.  Section 45  Tax Credit

The expanded Section 45 tax credit is available for electricity produced from LFG, open  loop biomass
(including waste wood and agricultural livestock waste nutrients), trash combustion, geothermal, solar,
and small irrigation power facilities that  are placed in  service prior to January 1, 2006. The credit is
$0.009/kW-hr paid out over a period of five years. "Placed in service" refers to having the electricity
generator sets (GENCO) in place prior to the January 1, 2006 deadline.  The project does not have to be
generating electricity by January 1, 2006 but must be ready to generate  electricity. In addition to having
the GENCO in place, it is also advisable to have the power purchase and interconnection agreements in
place prior to January  1, 2006.
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        State of  Pennsylvania  Incentive  Programs


2.1.  Office of Energy  and  Technology  Development

An incentive for LFG energy projects offered by the Office of Energy and Technology Development (OETD)
is provided as grant funding through the Energy Harvest Grant Program. The Energy Harvest Grant Program
provides funds for projects that promote and build markets for advanced or renewable energy technologies.
The intent is to provide a stimulus for opportunities that better manage our energy resources in  a way that also
improves our environment, supports economic development, and enhances our quality of life. Energy Harvest
is not a research initiative. It is about deployment of new and innovative  technologies in the market place.
Energy Harvest is particularly interested in supporting proposals that are market-driven, create jobs, and
produce economic development within the Commonwealth. Energy Harvest is a yearly grant offering from DEP.

Another incentive program under the purveyance of OETD is the Alternative Fuels Incentive Grant Program
(AFIG). This program could provide funding for LFG projects if the project cleans and liquefies the methane
into a compressed natural gas or a  liquefied natural gas to be  used in transportation vehicles. The AFIG
Program provides financial assistance for these portions of a project:  purchasing alternative fuel vehicles;
converting or repowering existing vehicles to operate on an alternative fuel; purchasing and  installing
alternative fuel refueling facilities; purchasing and installing recharging facilities; developing and evaluating
innovative alternative fuel vehicles;  and developing refueling or recharging facilities.

2.2.  Act  198 for Waste  Minimization

Pennsylvania's Solid Waste—Resource Recovery Development Act of 1974 (Act 198) demonstration grant
program provides financial assistance to establish resource recovery projects in Pennsylvania  that recover
at least 50 percent materials or energy from solid waste entering into the system. Only a select number of
unique and innovative projects are funded each year. The grant provides up to 75 percent of the costs
associated with developing resource recovery projects and cannot exceed $100,000. Any county, municipality,
or county or municipal authority in Pennsylvania is eligible to apply for the grant. A Pennsylvania private or
non-profit sector entity may partner with a public entity to apply for mutually beneficial demonstration projects.
        Electricity Restructuring and Landfill Gas  Energy


3.1.  What Is Electricity Restructuring?

Electricity restructuring refers to the introduction of competition into both the wholesale and retail electricity
markets. Until recently, electric utilities operated as monopolies authorized as the sole provider of electric
service to consumers within a specific service territory. Under restructuring, electric energy is no longer
treated as a natural monopoly but instead is treated as a commodity, and new energy suppliers can enter
the marketplace. Electric distribution (the wires and poles) is still treated as a regulated monopoly. (A single
electric distribution company can provide better and cheaper service than two or three different companies
running duplicate poles and wires.) With more energy suppliers, there are more energy options for
consumers, including renewable energy sources.
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Efforts to restructure the electric utility industry began in 1978 with passage of the Public Utilities
Regulatory Policies Act (PURPA), which required utilities to purchase power from independent power
producers in an effort to encourage the development of smaller generating facilities, new technologies,
and renewable energy sources. The National Energy Policy Act (EPACT) of 1992 expanded on PURPA,
effectively creating a competitive wholesale market for electric power.

Many states, including Pennsylvania, have enacted some form of restructuring legislation, while others
are considering action. The status of the state of Pennsylvania electric industry restructuring activity is
available at the Energy Information Agency Web site:
          www.eia. doe. gov/cneaf/electricity/chg_str/ta b5rev.html

In  1999, Pennsylvania adopted the Electricity Generation Customer Choice & Competition Act. The full text
of  the act is available at:
          www2.legis.state.pa.us/WU01/LI/BI/BT/1995/0/HB1509P4282.pdf

The Electricity Generation Customer Choice & Competition Act enables Pennsylvania companies and
residents to shop for electric suppliers. As of March 2004, there were 46 licensed competitive electric
generation suppliers (EGS) in Pennsylvania. Eight electric generation  suppliers offer 15 energy supply
products to residential customers in Pennsylvania. There are several renewable energy supply offerings
with Green Mountain  Energy serving all territories. Green Mountain Energy offers either a 50 or 100
percent  renewable option. Community Energy offers a 100 percent "New Wind Energy Renewable Add-On"
option in all territories except Allegheny. Additional renewable and  standard energy supply offerings are
available in PECO service territory, and the suppliers include Electric America, Energy Cooperative
Association,  Power Choice, andACN Energy.

A quarterly report  on utility competition in Pennsylvania is available at:
          www.puc.paonline.com/com_info/Commission%20Reports/comm_rpts.asp#Keystone%20Competition

A list of  licensed electric suppliers is available at:
          www.puc.paonline.com/electric/eleclist.asp

Additional information on electric competition can be found at:
          www.utilitychoice.org and www.oca.state.pa.us.
3.2.  Effect of Renewable Energy Programs on  LFG  Recovery

Many states are establishing mandatory renewable energy provisions. Such  provisions mandate electric
suppliers to include a certain percentage of electricity generated from renewable, or "green energy,"
sources into their energy mixes. LFG is one such green energy source. These mandatory provisions are
generally defined as renewable portfolio standards.
Pennsylvania is considering several renewable programs. There is draft legislation that would provide
for the acquisition or sale of electricity energy generated from renewable and environmentally beneficial
sources. The standards establish a certain amount of renewable energy be included as part of the
sources of electric generation by the electric utilities within Pennsylvania. The drafts differ on the timing
of implementation, ranging from 10 to  15 years, with  varying annual ranges for phase in periods.
Pennsylvania has launched some major initiatives to build a clean, diversified energy industry in the state,
including a second round for the Pennsylvania Energy Harvest grant program, which encourages clean and
renewable energy projects.

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Pennsylvania has a green power initiative with the state government purchasing 10 percent of its energy
from renewable energy sources. Building on the leadership position of having already doubled the amount
of "green" energy that Pennsylvania uses, the Governor has directed agencies to redouble that effort to
20 percent.

Pennsylvania has also revitalized the Energy Development Authority to provide financing to help build
clean power plants. The Pennsylvania administration also has proposed an Advanced Energy Portfolio
Standard to ensure that in 10 years, 10 percent of all of the energy generated in the commonwealth comes
from clean, efficient sources.

The electric utility industry restructuring process in Pennsylvania brought together stakeholder groups as
active participants. These groups contributed to restructuring settlements for Metropolitan Edison Company
(Met-Ed), Pennsylvania  Electric Company (Penelec), PECO  Energy (PECO), PP&L (PPL), and Allegheny
Power/West Penn  Power Company (WPP). These settlements provided new opportunities for renewable
and sustainable energy  production services and enterprises.

Each of the five settlement agreements established a separate and independent sustainable energy fund
to promote:
       •  The development and use of renewable energy and clean energy technologies.

       •  Energy conservation and energy efficiency.

       •  Renewable energy  business initiatives.

       •  Projects, which improve the environment in the Companies' service territories, related to the
          transmission and distribution facilities (Met Ed &  Penelec).

3.3.  Marketing LFG Recovery  as  Green Power

Under federal law (PURPAsec. 210) utilities are required to  buy electricity from small (i.e., less than
80 MW) renewable projects.  However, utilities will buy the power only at wholesale energy prices, which
are often 2.5 cents/kWh or less.

A more promising development in electric competition is the  success of green energy marketers. Electricity
from LFG projects could be sold to and marketed by one of these green marketers as premium products
and collect a premium price from their customers. Electric marketers offering renewable energy options in
Pennsylvania include: Green Mountain, Community Energy,  Electric America, Energy Cooperative
Association, Power Choice, andACN Energy.

In addition, green marketing  allows energy marketers to differentiate their energy product. However, the
general public is less familiar with LFG than  other sources of renewable energy; support from LMOP can
help ensure the success of LFG green marketing efforts.
          Other useful links are: www.ferc.gov/ and www.eia.doe.gov/.
                      A Primer for the Commonwealth of Pennsylvania for Developing Landfill Gas Utilization    2 7

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        Voluntary  Reporting of Greenhouse  Gases

        Program


The Voluntary Reporting of Greenhouse Gases Program, created by Congress under Section 1605(b)
of the Energy Policy Act of 1992, provides an opportunity for any company, organization, or individual to
establish a public record of their greenhouse gas emissions, reductions, or sequestration achievements
in a national database. The data submitted to the program is made publicly available via CD-ROM and
the Internet.  Those who report to 1605(b) can gain recognition for environmental stewardship, demonstrate
support for voluntary approached to achieving environmental policy goals, support information exchange,
and inform the public debate about greenhouse gas emissions.

Additional information about the program, as well as reporting forms and technical assistance, are
available through:
         Energy Information Administration's Communications Center
         202-586-0688
         800-803-5182
         E-mail at infoghg@eia.doe.gov

         www.eia.doe.gov/oiaf/1605/frntvrgg.html.
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