United States
             Environmental Protection
             Agency

               Air and Radiation
               (6202J)

EPA430-K-99-037
November 1999
www.epa.gov/lmop

&EPA
South Carolina  State
Landfill Gas Primer


                                       A Primer on Developing
                                       South Carolina
                                       Landfill Gas-to-Energy



                          _

                              ergy



                Printed on paper that contains at least
                30 percent postconsumer fiber.




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Introduction	i
1.   The Goals of This Primer	i
2,   LFGTE Projects in South Carolina	ii
3.   About the Landfii! Methane Outreach Program	iii
4,   Public Information and Education	iv
Part 1: Regulations      Permits
1.   Overview of Federal Regulations and Permits  	1
    11    Clean Air Act (CAA)  	1
    1.2   Resource Conservation and Recovery Act Subtitle D  	4
    1,3   National  Pollutant Discharge Elimination System Permit (NPDES)  	5
    1,4   Clean Water Act, Section 401  	5
    1.5   Other Federal Permit Programs and Regulations  	6
2,   State Regulations and Permits	7
3.   Overview of Local Regulations and Permits	21
     2:
1.   Overview of Federal Incentive Programs  	23
    1,1    Renewable Energy Production Incentive (REPI) 	23
    1.2   Qualifying Facilities Certification	23
    1.3   Section 29  Tax Credit	24
2.   State Incentive  Programs	25
3.   Electricity Restructuring and LFGTE	26
Tables
Table A  Candidate  Landfills for LFGTE Projects in South Carolina  	iii
Table 2.1  Summary Table of State Regulations/Permits 	8
Table 2.2 Permit Approval Timeline	9
Table 2.3 Title V (Part 70) Operating Permits	10
Table 2.4 Air Quality  Construction and Operating Permits	11
Table 2,5 Oil and Gas Permits	12
Table 2.6 Solid Waste Permits	14
Table 2.7 Pump and  Haul Approval	16
Table 2.8 Pretreatment	17
Table 2.9 Land Application of Wastewater	18
Table 2,10 Discharge of Wastewater	19
Table 2.11 Accommodating Utilities on Highway Rights-of-Way	20
Table 3.1  Local Regulations and Permits	22
          A: South  Carolina Department of Transportation Contacts	27

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 Introduction
Q     The Goals of This Primer
 Throughout the country, the number of LFGTE projects is growing. Recovering methane gas at solid waste land-
 fills 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 landfill gas-to-energy (LFGTE) project development vary greatly from
 state to state. To guide LFGTE project developers through the state permitting process and to  help them to take
 advantage of state incentive programs, the U.S. Environmental Protection Agency's (EPA's) Landfill Methane
 Outreach Program (LMOP) works with state agencies to develop individual primers for states participating in the
 State Ally Program. By presenting the latest  information on federal and state regulations and incentives affecting
 LFGTE projects in this primer, the LMOP and South Carolina state officials hope to facilitate development of the
 landfills listed in Table A (p. iii).

 To develop this primer, the state of South Carolina identified all the permits and funding programs that could
 apply to LFGTE projects developed in South Carolina. It should be noted, however, that  the regulations, agencies,
 and policies described are subject to change.  Changes are likely to occur whenever a state legislature meets, or
 when the federal government imposes new directions on  state and local governments. LFGTE  project developers
 should verify and continuously monitor the status of laws  and rules that might affect  their plans or the operations
 of their projects.

 Who Should Read This Primer?
 This primer is designed to help realize the potential of landfill gas recovery in the state of South Carolina. It
 provides information for developers of LFGTE projects, as well as all other participants in such  projects:

     • Landfill operators                       • State regulators

     • Utility companies                       • Engineers

     • Independent power producers           • Equipment vendors

     • Utility regulators

 What Information Does This Primer Contain?
 If you are interested  in taking advantage of the economic  and environmental opportunities in LFGTE recovery in
 South Carolina, you  will need to know the regulatory requirements that apply. You will also need to know what
 economic incentives are available to help make these projects more economically viable.

 To address these needs, this primer covers the following topics:

     • Federal Regulations and Permits. This section provides information on federal  regulations that may pertain
      to LFGTE projects, including solid  waste, air quality, and water quality regulations.

     • State Regulations and Permits. This section  provides information on state permits that apply to landfill gas
       recovery projects in South Carolina.

     • Local Regulations and Permits. Local  permit approval will often be needed for LFGTE projects. This
      section offers a step-by-step process you can follow to secure this approval.
                               A Primer on Developing South Carolina's Landfill Gas-to-Energy Potential

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

      State Incentive Programs. This section presents information on the environmental infrastructure financing
      opportunities that are available in the state of South Carolina.

      Electricity Restructuring. This section discusses how renewable energy provisions in state electricity
      restructuring regulations might apply to LFGTE projects.
       LFGTE Projects in South Carolina
Several landfills in South Carolina have already been identified as candidates for LFGTE projects. These landfills are
listed in Table A on the next page. For more information about LFGTE Projects in South Carolina, contact the South
Carolina LMOP Task Force:
Holly Barnes
Solid Waste Specialist
Georgetown County
Department of Solid Waste
P.O. Drawer 1270
Georgetown, SC 29442
(843) 546-1043
gcoswm@aol.com

Kate Billing
LMOP State Program Coordinator
South Carolina Energy Office
1201  Main Street, Suite 820
Columbia, SC 29201
phone (803) 737-8030
fax (803) 737-9846
kbilling@drd.state.sc.us

Sonny DuBose
Program Coordinator
South Carolina Energy Office
1201  Main Street, Suite 820
Columbia, SC 29201
(803) 737-8030
sdu bose@d rd .state.sc.us

Vernon L. Gainey
Gas Pipeline Investigator
S.C. Public Service Commission
101 Executive Center Drive
Columbia, South Carolina 29201
(803) 896-5166
vernon.gainey@psc.state.sc.us
Larry Gallagher
Director of Environmental Services
Georgetown County
Department of Solid Waste
P.O.  Drawer 1270
Georgetown, SC 29442
(843) 546-1043
gcdswm@aol.com

Jean-Paul Gouffray
Program Information Coordinator
South Carolina Energy Office
1201  Main Street, Suite 820
Columbia, SC 29201
(803) 737-8030
jpgouffray@drd.state.sc.us

Van Keisler
Section  Manager, Solid Waste
Section
S.C.  Department of Health and
Environmental  Control
2600 Bull Street
Columbia, South Carolina 29201
(803) 896-4014
keislecv@columb34. dhec.state.se. us

Marion Leaphart
Utilities Manager
S.C.  Department of Transportation
P.O.  Box 191
Columbia, SC 29202-0191
(803) 737-1296
leaphartme@dot.state.sc.us
Brent Sires
Chief—Gas Area
S.C.  Public Service Commission
101 Executive Center Drive
Columbia, South Carolina 29201
(803) 896-5115
brent.si res@psc.state.sc.us

Patricia Tangney
Planner
South Carolina Energy Office
1201  Main Street, Suite 820
Columbia, SC 29201
(803) 737-8030
ptang ney@d rd.state.sc. us

Ken Taylor
Director, Division of Hydrology
S.C.  Department of Health and
Environmental Control
2600 Bull Street
Columbia, South Carolina 29201
(803) 896-4011
taylorgk@columb34.dhec.state.sc.us
       Landfill Gas Projects in South Carolina

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Table A
Identified Candidate  Landfills
Landfill Name
Georgetown County Landfill
Horry County Landfill
Hickory Hill Landfill
Palmetto Landfill
Screaming Eagle Landfill
County
Georgetown County
Horry County
Jasper County
Spartanburg County
Richland County
Operational
Closed
Closed/Open
Open
Open
Open
Status





       About the Landfill Methane  Outreach Program
To promote the use of landfill gas 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 landfill gas-to-energy project development

    • Removing barriers to developing LFGTE 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 (MOU). By signing the MOU, each ally
and partner acknowledges a shared commitment to promoting landfill gas energy recovery at solid waste
landfills, recognizes that the widespread use of landfill gas 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 September 1999, more than 270 landfill methane recovery projects are operating in the United States. EPA
estimates that up to 750 landfills could install economically viable landfill energy projects.

For more information about LMOP, contact:

U.S. Environmental Protection Agency
Landfill Methane Outreach Program (6202J)
401 M Street, SW
Washington, DC 20460
(888) STAR-YES (782-7937)
Fax: (202) 565-2077
http://www.epa.gov/lmop
                             A Primer on Developing South Carolina's Landfill Gas-to-Energy Potential
                                                                                   MI

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       Public Information  and Education
Public information and education are as important as technical issues in the development of a LFGTE project.
The support of neighbors along with the local community is essential to preventing unnecessary delays in the
permitting process. Education should occur early and often throughout the project development.

LFGTE projects should be promoted both as a benefit to the  environment and the local economy. Information
about the project should include the following positive points:

    • LFGTE is a form of recycling.

    • Project will have a positive effect on air quality; provide comparative examples of improvement effect (i.e.,
      equivalent number of cars removed or trees planted).

    • Emphasize innovative nature of the project.

    • Supported by EPA; capitalize on their credibility and environmental protection.

    • No effort required by or inconvenience to  public.

Information should be directed to specific audiences as well as to the general public. Environmentalists,
politicians, media, and immediate  neighbors should be provided detailed information early and often. This will
prevent false assumptions and unnecessary concern. By addressing concerns early in the project development,
citizens may become advocates rather than  adversaries, and their support can help gain the backing of local
politicians who may  be asked to provide their approval during the permitting process.

Dissemination of information and educational materials can be accomplished in a variety  of ways:

    • Community newsletter

    • Press releases tied to other positive topics (i.e., improved air quality, new jobs)

    • Model/display available for public viewing

    • Open house at new facility during construction and at completion

    • Presentations  at civic meetings,  chamber of commerce, and schools

    • Inclusion on a local web site

Although these methods of education  can be time-consuming, EPA's Landfill Methane Outreach Program has
created numerous templates that are available to any entity that becomes a partner in the program. Using LMOP
materials eliminates the need for a public relations consultant or time-consuming staff commitments. The materi-
als are professionally prepared and include slides, newsletters, press releases, and videotapes. The use of locally
respected technical experts and community leaders as presenters of the information can  provide an added bene-
fit in building  community confidence.
iv      Landfill Gas Projects in South Carolina

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 Part  1:  Regulations and  Permits
QOverview Of Federal Regulations And Permits
        The following section discusses federal regulations that may pertain to LFGTE projects. LFGTE projects
        can 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 regu-
        lations for carrying out the federal mandates. Specific requirements may therefore differ among states.
        Project developers will have to contact relevant federal agencies and, in some cases, state agencies for
        more detailed information and applications. The discussion of each key federal standard/permit contains
        three components:

            • Importance of the standard/permit to LFGTE project developers

            • Applicability to LFGTE projects

            • Description of each standard/permit


 1.1    Clean Air Act (CAA)
        The CAA regulates emissions of pollutants to ensure that air quality meets specified health and welfare
        standards. The CAA contains two provisions that may affect LFGTE projects: New Source Performance
        Standards (NSPS) and New Source Review (NSR). Facilities that are planning to construct a new LFGTE
        system or that plan to modify a  landfill operation to incorporate a LFGTE system must obtain an
        Authority to Construct (ATC) permit from the responsible air regulatory agency if emissions from the
        project exceed the major facility emission thresholds. The ATC permit  specifies the NSPS and NSR
        requirements that the project must meet. Once construction is complete, the facility must obtain an oper-
        ating permit that meets the requirements defined in Title V of the 1990 CAA Amendments. The general
        requirements of NSPS, NSR, and Title Vfor LFGTE projects are discussed below.

        New Source Performance Standards (NSPS) and  Emissions Guidelines
        for MSW Landfills

            Importance:  LFGTE projects can be part of a compliance strategy to meet EPA's new emissions
                         standards for landfill gas.

            Applicability: Landfills meeting certain design capacity, age, and emissions criteria are required to
                         collect LFG and to either flare  it or use it for energy.

            Description: EPA final regulations under Title I of the CAA Amendments  require affected landfills
                         to collect and control LFG. Specifically, the CAA targets reductions in the emissions
                         of non-methane organic compounds (NMOCs) found in LFG, such as benzene,
                         carbon tetrachloride, and chloroform, because they contribute to local smog
                         formation. For landfills that received waste after November 8, 1987 ("existing
                         landfills"), the standards are Emissions Guidelines (EG), and for landfills that
                         commenced construction, reconstruction, modification, or began accepting waste on
                         or after May 30, 1991 ("new landfills"), the standards are New Source Performance
                         Standards (NSPS). The final regulations can be found in the Federal Register, March
                         12,  1996, Vol. 61,  No. 49, pgs.  9907-9944.

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                          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
                              (or 2.5  million cubic meters, about 2.75 millions tons)1

                             • Emissions — annual NMOC emission rate is greater than 50 Mg (about 55 tons).

                          Note: As of  October 1999, South Carolina was in the process of enacting the  State
                          Implementation Plan (SIP) as this federal legislation requires.

       Air Emissions: New Source Review (NSR) Permitting Process
            Importance:   New LFGTE projects may be required to obtain construction permits under New
                          Source Review (NSR). Depending on the area in which the project is located,  obtain-
                          ing these permits may be the most critical aspect of project approval.

            Applicability: The combustion of LFG results in emissions of carbon monoxide and oxides of nitro-
                          gen. 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 LFGTE 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 may want to consult an attorney or expert famil-
                          iar 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 (PM-10),
       sulfur dioxide (SO2), and lead. The CAA authorizes the EPA to set both health and  public welfare-based
       national ambient air quality standards (NAAQS) for each criteria pollutant. 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 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. (See 40 CFR
       51.160-51.166 for more information.)

       The location of the LFGTE project will dictate what kind of construction and operating  permits are
       required. If the landfill is located in an area that is in attainment for a particular pollutant, the LFGTE
       project must undergo Prevention of Significant Deterioration permitting. Nonattainment Area permitting is
       required for those landfills that are located in areas that do  not meet the NAAQS for a particular air pollu-
       tant. 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.
       1 Landfills with less than 2.5 million Mg are required to file a design capacity report.

2      Landfill Gas Projects in South Carolina

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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 nonattainment for all
criteria pollutants. Applicants must determine PSD applicability for each individual pollutant. For gas-fired
sources, 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.

For each pollutant for which the source is considered major, the PSD major NSR  permitting process
requires that the applicants determine the maximum degree  of reduction achievable through the  applica-
tion of available control technologies. Specifically, major sources may have to undergo any or all of the
following four 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  areas)2

Minor sources and modifications (i.e., below 250 tons per year) are exempt from this process, but these
sources must still obtain construction and operating air permits (see CFR. 40 CFR 52.21 for more
information on PSD).

Nonattainment Air Permitting
An area that does not meet the NAAQS for one or more of the six criteria pollutants is classified as  being in
"nonattainment" for that pollutant. Ozone is the most pervasive nonattainment pollutant, and the one most
likely to affect LFGTE projects. A proposed new emissions source or modification of an existing source
located in a nonattainment  area must undergo nonattainment major NSR if the new source or the modifica-
tion is classified as major (i.e., if the new or modified source exceeds specified emissions thresholds). To
obtain a nonattainment NSR permit for criteria pollutants, a project must meet two requirements:

    • Must use technology that achieves the Lowest Achievable Emissions Rate (LAER) for the
      nonattainment pollutant

    • Must arrange for an  emissions reduction at an existing combustion source that offsets the
      emissions from the new project at specific ratios

As of October 1999, all of South Carolina was in  attainment,  but if any section of the state were to be
designated as being non-attainment, then  all of the above would apply to those sections.

Potential Exemptions
EPA recently furnished  a guidance document to  state and regional permitting  authorities that provides
an exemption from major NSR permitting  requirements for landfill  projects that qualify as "pollution
control projects." An existing landfill that plans to install a LFGTE recovery project may qualify as  a pollu-
tion control project as long as it reduces non-methane organic compounds (NMOC) at the site. Under
the guidance, the permitting authority may exempt the  project from major NSR, provided it meets all
other requirements under the CAA and the state, including minor source requirements. In nonattainment

^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.

                       A Primer on Developing South Carolina's Landfill Gas-to-Energy Potential      3

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       areas, offsets will sfill be required, buf need not exceed a 1:1  ratio. States have discretion to exercise the
       increased flexibility allowed by the guidance on a case-by-case basis.

       Title V Operating Permit

           Importance:   Many LFGTE projects must obtain operating permits that satisfy Title V of the
                          1990 CAA Amendments.

           Applicability:  Any LFGTE plant that is a major source, as defined by the Title V regulation
                          (40 CFR Part 70), must obtain an operating permit.

           Description:   Title V of the CAA requires that all major sources obtain new federally enforceable
                          operating permits. Title V is modeled after a similar program established under the
                          National  Pollution Discharge  Elimination System (NPDES). Each major source must
                          submit an application for an operating permit that meets guidelines spelled out in
                          individual state Title V programs.  The operating permit describes the emission limits
                          and operating conditions that a facility must satisfy, and specifies the reporting
                          requirements that a facility must meet to show compliance with the air pollution
                          regulations. A Title V operating permit must be renewed every 5 years.


1.2    Resource Conservation and Recovery Act Subtitle D
           Importance:   Before a LFGTE 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. Landfill gas collection systems must  meet
                          RCRA Subtitle D standards for gas control.

           Description:   Since October 1979, federal regulations promulgated under Subtitle D of RCRA
                          required  controls on migration of  landfill gas. 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 periodical-
       ly check for methane emissions and prevent offsite migration. Landfill owners and operators must ensure
       that the concentration of methane gas does not exceed:

             • 25  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 a 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).
       Landfill Gas Projects in South Carolina

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1.3    National Pollutant Discharge Elimination System (NPDES) Permit
           Importance:  LFGTE 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. In addition, LFGTE projects
                         may generate wastewater from system  maintenance and cooling tower blowdown.

           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. The 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. A LFGTE project would be included in the "wastewater discharges to surface water from
       industrial facilities" category and would require an individual permit. An  individual permit application for
       wastewater discharges typically requires information on:

           • Water supply volumes

           • Water utilization

           • Wastewater flow

           • Characteristics and disposal methods

           • Planned improvements

           • Storm water treatment

           • Plant operation

           • Materials and chemicals used

           • Production

           • Other relevant information.


1.4    Clean Water Act, Section 401
           Importance:  LFGTE 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. When construction or operation of such pipes
                         causes any discharge of dredge into streams or wetlands, the project may require
                         Section 401 certification.

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

       The applicant must obtain a water quality certification from the State in which the discharge will


                             A Primer on Developing South Carolina's Landfill Gas-to-Energy Potential      5

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       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 and Regulations
       The following are brief descriptions of how other federal permits and regulations could apply to LFGTE
       project development.

           • RCRA Subtitle C could apply to a LFGTE project if it produces hazardous waste. While some
             LFGTE projects can return condensate to the landfill, many dispose of it through the public sewage
             system after some form of on-site 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 habi-
             tat for endangered species.

           • The federal pipeline safety regulations (Title 49 Code of Federal Regulations) issued under the
             Natural Gas Pipeline Safety Act apply when landfill gas is transported through pipelines. These
             regulations are enforced in South Carolina by the South Carolina Public Service  Commission. For
             more information, contact:

             Office of Pipeline Safety
             Research and Special Programs Administration
             U.S. Department of Transportation
             400 Seventh Street, SW Room  7128
             Washington, DC 20590
             (202) 366-4595
             http://ops.dot.gov

             Vernon Gainey,  Pipeline Safety  Investigator
             Gas Pipeline Safety Department
             South Carolina  Public Service Commission
             101 Executive Center Drive
             Columbia, SC 29201
             (803) 896-5166
             vernon.gainey@psc.state.sc.uss
       Landfill Gas Projects in South Carolina

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H    State Regulations and Permits
        This section provides information on permits required  by the State of South Carolina for the development
        of a LFGTE project.3  Information provided on each permit includes how the permit is applicable to
        LFGTE projects, the appropriate agency contact, a description of the permit, the statute/regulation, infor-
        mation required and suggestions for a successful application, the application and review process, the
        review/approval period, and any fees required. For an  overview of required permits, contact information,
        and length of the  review period, see Tables 2.1  and 2.2.
         3The
permits contained in this handbook were suggested by state permitting agencies.
                                A Primer on Developing South Carolina's Landfill Gas-to-Energy Potential

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Table 2.1
Summary Table of State Standards/Permits
Standard
      Permit
Agency/Contact
Appropriate
Review Period
Air
       Operating Permit
South Carolina Department of Health     Up to 18 months
and Environmental Control (SCDHEC)
Bureau of Air Quality
Transportation
                    Air Quality
                    Construction and
                    Operating Permit
                          SCDHEC Bureau of Air Quality
      Accommodating
      Utilities on Highway
      Rights-of-Way
South Carolina Department of
Transportation Districts (Appendix A)
                                   3 months
Waste Oil and Gas Permit
Solid Waste Permit
Pump and Haul
Approval
Pretreatment
Land Application of
Wastewater
Discharge of
Wastewater
SCDHEC Bureau of Land and Waste
Management
SCDHEC Bureau of Land and Waste
Management
SCDHEC Federal, Energy,
and Pretreatment Section
SCDHEC Federal, Energy,
and Pretreatment Section
SCDHEC Industrial Wastewater
Permitting Section
SCDHEC Industrial Wastewater
Permitting Section
30 days
varies
30 days
30-120 days
75-125 days
75-125 days
varies
       Landfill Gas Projects in South Carolina

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Table 2.2
Permit Approval Timeline
                         Air
             Operating Permit
       Air Quality Construction
         and Operating Permit
                      Waste
            Oil and Gas Permit
           *Solid Waste Permit

                      Water
      Pump and Haul Approval
                 Pretreatment
 Land Application of Wastewater
       Discharge of Wastewater

               Transportation
       * Highway Rights-of-Way
                                                   I
                                                   6
                                            8     10     12     14     16     18
                              Notes
                              Solid black line denotes the minimum review/approval
                              period (where applicable); gray line denotes the maximum.

                              Varies
       The remainder of Section 2 contains information about each of the permits required by the State of
       South Carolina for LFGTE project development. The information is organized  into tables and each table
       contains the following information:
               Applicability to LFG Projects
               Agency Contact
               Description of the Regulation
               Statute/Regulation
               Information Required/Suggestions
                                              Application Process
                                              Review Process
                                              Review/Approval Period
                                              Fees
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Table 2.3
       Title V (Part 70) Operating Permits
Applicability to
Landfill Gas Projects
                  Facilities defined as "major" with potential to emit 100 tons/year or more of any regu-
                  lated pollutant, 10 tons/year or more of any single hazardous air pollutant (HAP), or
                  25 tons/year or more of any combination of HAPs.

                  Facilities subject to Section 111 (New Source Performance Standards) and 112 (HAPs)
                  of the Clean Air Act (CAA). (Those facilities not deemed "major" by the regulations
                  listed above are not currently  required to obtain Title V Operating Permits.)

                  Facilities subject to Title IV of the CAA.
Agency Contact
                  South Carolina Department of Health and Environmental Control
                  Bureau of Air Quality
                  Carl Richardson
                  2600 Bull Street
                  Columbia, South Carolina 29201-1708
                  (803) 898-4123
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
Information
Required/Suggestions
                  Facilities subject to Part 70 must submit an application that describes all sources of
                  air pollution and quantify 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 of forms developed by the department. These
                  forms 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; if comments are
                  received, the draft is either revised and re-noticed or a reply to the comments is
                  issued and the permit is then finalized.
Review/Approval
Period
                  All Title V operating permits must be issued within 18 months of receipt.
Fees
                  Collection of fees is necessary to fund the Title V program. Operating permit fees are
                  levied at a rate of $25 per ton of actual emissions (up to 4,000 tons/year), adjusted
                  for the Consumer Price Index. There are no application fees.
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Table 2.4
Air Quality Construction and Operating Permits
Applicability to
Landfill Gas Projects
          All equipment used to collect, handle, or treat landfill gas where there is an applicable
          state or federal regulation.
Agency Contact
           South Carolina Department of Health and Environmental Control
           Bureau of Air Quality
           Carl Richardson
           2600 Bull Street
           Columbia, South Carolina 29201-1708
           (803) 898-4123
Description
           Construction and operating permits may be necessary for equipment that collects,
           handles, or treats landfill gas. Before any air pollution source is constructed, a
           construction  permit must be obtained from the Bureau of Air Quality. An operating
           permit for the facility is obtained afterwards. Operating permits have a lifespan of
           5 years and may be renewed upon review by the bureau.
Statute/Regulation
           The Clean Air Act (42 USC §§ 7401 et seq.).

           S.C. Regulation 61-62.1. Section II A. (Construction) and B. (Operating)
Information
Required/Suggestions
          A description of the landfill, the collection system, and control devices, if any.
          Quantification of LFG production rates and the accompanying air pollutant emission
          rates are necessary. Permit application forms developed by the bureau facilitate the
          gathering of this information. An air dispersion modeling analysis for the air pollutant
          emissions is also necessary.
Application Process
           The facility submits an application of forms developed by the bureau. These forms
           will contain the information necessary to describe all landfill-oriented air pollution
           sources and quantify emissions from these sources. They should also contain
           drawings and other supporting material as necessary. A professional engineer's
           signature is required for all construction permits for landfills.
Review Process
           A completeness review is made upon receipt of an application package. After the
           application is deemed administratively complete, a technical review is performed.
           Deficiencies and/or questions are posed to the applicant during this review as
           needed. A draft permit is usually issued for the landfill to review before it is finalized.
Review/Approval
Period
           All construction and operating permits must be issued within 90 days of receipt of
           application, excluding days the bureau is waiting for information from the applicant.
Fees
           Operating permit fees are levied at a rate of $25 per ton of actual emissions (up to 4,000
           tons/year), adjusted for the Consumer Price Index. There are no application fees.
                               A Primer on Developing South Carolina's Landfill Gas-to-Energy Potential
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Table 2.5
       Oil and Gas Permits
Applicability to
Landfill Gas Projects
                  An oil and gas permit is specifically required by the South Carolina Oil and Gas Act. It
                  requires that all municipal solid waste landfills prevent the waste of gas and use this
                  gas in a beneficial manner.
Agency Contact
                  South Carolina Department of Health and Environmental Control

                  Ken Taylor, Director
                  Division of Hydrogeology
                  Bureau of Land and Waste Management
                  2600 Bull Street
                  Columbia, South Carolina 29201
                  (803) 896-4011

                  Van Keisler, Section Manager
                  Solid Waste Section
                  Bureau of Land and Waste Management
                  2600 Bull Street
                  Columbia, South Carolina 29201
                  (803) 896-4014
Description
                  Production and utilization of landfill gas is specifically regulated by the South Carolina
                  Department of Health and Environmental Control. The intent is to minimize the waste
                  of this resource and prevent pollution of the state's land and water.
Statute/Regulation
                  State Statute: O'\\ and Gas Exploration, Drilling, Transportation and Production Act,
                  Section 48-43-10 through 850.

                  State Regulation: Oil and Gas Exploration, Drilling and Production Regulation
                  R.  121-8-0 through 28.
Information
Required/Suggestions
                  Design diagrams and plans should be submitted to the department. In addition, a
                  financial  assurance mechanism should be submitted capable of financing the opera-
                  tion and/or abandonment of the system by a third party. Requests should also be
                  made for permits to drill wells. Interested individuals are encouraged to contact the
                  department at the beginning of the permitting  process.
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Application Process
All information required by the Oil and Gas Act should be submitted to the
department for review and comment. This should include all necessary forms
(Organization Report, Application for Permit to Drill, and Affidavit of Ownership or
Control), along with requests for approval to drill wells.
Review Process
All information submitted to the department will be assigned to a project manager for
review. Typically a question and comment letter will be sent to the applicant if
clarification of issues is necessary. Upon completion of the review, a public notice will
be sent to interested parties. A public hearing may or  may not be held by the depart-
ment depending on the response to the public notice.
Review/Approval
Period
Review and approval will be completed consistent with the time frames outlined in
the Oil and Gas Act. Permits will typically be issued within 30 days of submittal of
complete information on the project. Well drilling permits will also be issued within 30
days of a completed application.
Fees
No fees are associated with this activity.
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Table 2.6
       Solid Waste Permits
Applicability to
Landfill Gas Projects
                 A municipal solid waste (MSW) permit is required for all operating MSW landfills.
                 A post-closure care permit is also required for all closed MSW landfills. As a
                 requirement of these two  permits, control of landfill gas (methane) to prevent
                 offsite migration is required. Landfill gas-to-energy (LFGTE) projects would be
                 considered a minor modification to the solid waste  permit.
Agency Contact
                  South Carolina Department of Health and Environmental Control

                  Bob Gill, Section Manager
                  Facility Engineering Section
                  Bureau of Land and Waste Management
                  2600 Bull Street
                  Columbia, South Carolina 29201
                  (803) 896-4210

                  Van Keisler, Section Manager
                  Solid Waste Section
                  Bureau of Land and Waste Management
                  2600 Bull Street
                  Columbia, South Carolina 29201
                  (803) 896-4014
Description
                  Devices installed for the control of landfill gas and methane would fall under the
                  MSW permit as they relate to long-term, post-closure care of the facility. In order to
                  add or change the landfill gas control devices, owners are required to obtain approval
                  of a modification of the existing landfill permit.
Statute/Regulation
                  State: Municipal Solid Waste Landfill Regulation, R. 61-107.258.

                  Federal: Federal Resource Conservation and Recovery Act (RCRA) Subtitle D and 40
                  CFR Parts 257  and 258.
Information
Required/Suggestions
                  Design diagrams and specifications of the landfill gas control and collection system
                  should be submitted for department review and approval. An operational plan may
                  be required which addresses system maintenance and safety issues. Discussion of
                  the project with the  department prior to submittal of plans is recommended.
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Application Process
Design drawings and specifications should be submitted to the department as part
of the post-closure care plan.
Review Process
Information related to the projects should be submitted to the department where it
will be assigned to a project manager. Upon review, the applicant is notified of any
deficiencies. Upon final review, approval of the system will be granted.
Review/Approval
Period
No specific review and approval time frames are assigned to these projects. However,
every effort will be made to expedite the review process.
Fees
No fees are associated with this activity.
                               A Primer on Developing South Carolina's Landfill Gas-to-Energy Potential      15

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Table 2.7
       Pump and  Haul Approval
Applicability to
Landfill Gas Projects
                 This is applicable when condensate or other wastewater is hauled by vehicle, vessel,
                 or aircraft from the site of production to a Publicly Owned Treatment Works (POTW)
                 or other means of disposal. Where there is existing approval for leachate disposal by
                 pump and haul, hauling of condensate would require additional written approval.
Agency Contact
                 South Carolina Department of Health and Environmental Control

                 Bill Softs, Manager
                 Federal, Energy, and Pretreatment (FEP) Section
                 Industrial Wastewater
                 2600 Bull Street
                 Columbia, SC  29201
                 (803) 898-3982
                 bottswc@columb32.dhec.state.sc.us
Description
                  N/A
Statute/Regulation
                  S.C. Code Title 48, Chapter 1, The Pollution Control Act

                  S.C. Regulation 61-67, "Standards for Wastewater Facility Construction," §300.G,
                  Pump and Haul Operations.
Information              N/A
Required/Suggestions
Application Process
                 A written description of the operation must be prepared by a S.C. Registered
                 Engineer and submitted for approval before a facility stores or hauls waste.
Review Process
                  Review of the submittal will be coordinated by an engineer associate in the FEP
                  Section and a letter of approval will be sent if the activity is appropriate.
Review/Approval
Period
                 Approximately 30 days from receipt of a complete submittal.
Fees
                 There is no fee for review and approval of a pump and haul request.
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Table 2.8
Pretreatment
Applicability to
Landfill Gas Projects
          This requirement is applicable if wastewater is discharged to a publicly owned treatment
          works (POTW) and there is any treatment of the wastewater by the discharger or the
          wastewater pipeline does not consist of a "service connection" per S.C. Reg. 61-67
Agency Contact
          South Carolina Department of Health and Environmental Control

          Bill Softs, Manager
          Federal, Energy, and Pretreatment (FEP) Section
          Industrial Wastewater
          2600 Bull Street
          Columbia, SC 29201
          (803) 898-3982
          bottswc@columb32.dhec.state.sc.us
Description
          A "Pretreatment Permit" must be obtained from the POTW as the permit restricting
          the quantity and quality of the wastewater. Also, a Wastewater Facility Construction
          Permit must be obtained from the FEP Section of DHEC before beginning
          construction of wastewater facilities. The construction permit will not be issued by
          DHEC until the Pretreatment Permit is issued, but review of a construction permit
          application can proceed based  on a draft Pretreatment Permit.
Statute/Regulation
          S.C. Code Title 48, Chapter 1, The Pollution Control Act

          S.C. Regulation 61-67, "Standards for Wastewater Facility Construction"

          S.C. Regulation 61-30, "Environmental Protection Fees"
Information
Required/Suggestions
          N/A
Application Process
          An engineering report and detailed plans and specifications for wastewater facilities
          along with a construction  permit application must be submitted to the FEP Section of
          S.C.  DHEC. The permit must be issued before wastewater facility construction begins.
Review Process
          Review of the submittal will be coordinated by an engineer associate in the FEP
          Section and a Construction Permit will be issued if the activity is appropriate.
Review/Approval
Period
          Review must be competed within 120 days; however, the normal review time after
          receipt of a complete submittal is about 30 days.
Fees
          Fees for pipelines, where a permit is required, range from $100 to $350. For simple
          treatment systems, the fee is $200, and for more complex treatment, $600.
                              A Primer on Developing South Carolina's Landfill Gas-to-Energy Potential
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Table 2.9
       Land Application of Wastewater
Applicability to
Landfill Gas Projects
                  This requirement is applicable to any source that discharges pollutants directly or
                  indirectly into groundwaters of the state and to the land of the state.
Agency Contact
                  South Carolina Department of Health and Environmental Control

                  Melinda Vickers, Manager
                  Industrial Wastewater Permitting (IWP) Section
                  2600 Bull Street
                  Columbia, SC 29201
                  (803) 898-4186
                  vickermg@columb32.dhec.state.sc.us.
Description
                  For this type of discharge of wastewater (including condensate from landfill methane
                  collection), two different permits are required from this office. The first of these is a
                  State No-Discharge (ND) permit defining  and limiting the quantity and quality of the
                  discharge and stating the monitoring requirements for the permittee. The second
                  permit is a wastewater facility construction permit for any treatment facilities and for
                  piping for land  application.
Statute/Regulation
                  S.C. Code Title 48, Chapter 1, The Pollution Control Act

                  S.C. Regulation 61-9.505, "Land Application Permits and State Permits"

                  S.C. Regulation 61-67, "Standards for Wastewater Facility Construction"

                  S.C. Regulation 61-30, "Environmental  Protection Fees"
Information
Required/Suggestions
                  Groundwater evaluations by a geologist are usually necessary for approval.
Application Process
                 Separate applications are required for the ND Permit and the Construction Permit.
                 The engineering report under S.C. Reg. 61-67 is needed for both the ND Permit and
                 the Construction Permit.
Review Process/
Approval Period
                 An engineer associate in the IWP Section will coordinate review of the submittal. A
                 draft of the ND Permit would be sent to the permittee 30 to 60 days after receipt of a
                 complete application. A public notice of the ND Permit must be issued for 30 days after
                 agreement with the permittee before issuance. Occurrence of significant public concern
                 about the land application would necessitate  holding a public hearing, requiring an
                 additional 30-day notice period  and 30 additional days for review and determination.
                 A Construction Permit could be issued 15 days after issuance of the ND Permit.
Fees
                  The construction permit fee for a small, new wastewater treatment system for an ND
                  discharge is $700, which must be submitted with the construction permit application.
                  The annual operating fee for an ND Permit is $400, and this must be submitted
                  before the ND Permit is issued.
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Table 2.10
Discharge of Wastewater
Applicability to
Landfill Gas Projects
          This requirement is applicable to any source which discharges pollutants into waters
          of the state or to a conveyance to waters of the state.
Agency Contact
          South Carolina Department of Health and Environmental Control

          Melinda Vickers, Manager
          Industrial Wastewater Permitting (IWP) Section
          2600 Bull Street
          Columbia, SC  29201
          (803) 898-4186
          vickermg@columb32. dhec.state.se. us.
Description
          For this type of discharge of wastewater (including condensate from landfill methane
          collection), two different permits are required from this office. The first of these is an
          NPDES permit defining and limiting the quantity and quality of the discharge and
          stating the monitoring requirements for the permittee. The second permit  is a waste-
          water facility construction permit for any wastewater facilities.
Statute/Regulation
          S.C. Code Title 48, Chapter 1, The Pollution Control Act
          S.C. Regulation 61-9, "Water Pollution Control Permits"
          S.C. Regulation 61-67, "Standards for Wastewater Facility Construction"
          S.C. Regulation 61-30, "Environmental Protection Fees"
Information
Required/Suggestions
          Whole effluent toxicity will be a concern for this type of discharge; limits and
          periodic monitoring may be required.
Application Process
          Separate applications are required for the NPDES Permit and the Construction
          Permit. NPDES application  consists of U.S. EPA Forms 1 and 2D and S.C.
          supplements. The engineering report under S.C. Reg. 61-67 is needed for both the
          NPDES Permit and the Construction Permit.
Review Process/
Approval Period
          An engineer associate in the IWP Section will coordinate review of the submittal.
          A draft of the NPDES permit would be sent to the permittee 30 to 60 days after
          receipt of a complete application. A public notice of the NPDES permit must be
          issued for 30 days after agreement with the permittee before issuance. Occurrence
          of significant public concern about the discharge would necessitate holding a public
          hearing, requiring an additional 30-day notice period and about 30 additional days for
          review and determination. A Construction Permit could be  issued 15 days after
          issuance of the NPDES permit.
Fees
          The construction permit fee for a small, new wastewater treatment system for an
          NPDES discharge is $700, which must be submitted with the construction permit
          application. The annual operating fee for a small (50,000 gallons per day) NPDES
          Permit is $400, and this must be submitted before the NPDES  permit is issued.
                              A Primer on Developing South Carolina's Landfill Gas-to-Energy Potential
                                                                                     19

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Table 2.11
       Accommodating Utilities on Highway Rights-of-Way
Applicability to
Landfill Gas Projects
                 An encroachment permit must be issued before any utility is installed or any other
                 work is performed on a state highway right-of-way.
Agency Contact
                 District Engineering Administrators or Resident Maintenance Engineers
                 (See Appendix A for a list of District Engineering Administrators.)
Description
                 N/A
Information
Required/Suggestions
                 The application should contain a concise description of the work to be performed,
                 along with a sketch showing a north arrow, pavement width, the right-of-way lines, and
                 location of work to be performed.
Application Process
Review Process/
Approval Period
                 A Form 637 permit application can be obtained from the District Engineering
                 Administrator's or Resident Maintenance Engineer's office. Application is
                 submitted to the local Resident Maintenance Engineer.

                 Permits are issued after complete review and approval of the South Carolina State
                 Highway Engineer or his/her designee. Once this process is complete, the document
                 becomes the approved permit. Should additional permits be required, they will be
                 identified during the review process.
Fees
                 N/A
20
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Overview of Local Regulations and Permits
Within the framework of federal and state regulation, local governments will have some jurisdiction over
LFGTE 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. Local governments are also responsible for administering some permits
for federal and state regulations in addition to their own. For example, many local governments are
responsible for ensuring compliance with federal air quality regulations. It should be noted, however, that
some local standards and regulations are more strict than state or federal regulations.

Steps to Successful Local Permit Approval:
The following six steps will assist LFGTE project developers to achieve successful local permit approval:

    Step 1     Determine which local authorities have jurisdiction over the project site.

    Step 2     Contact local, city,  and/or county planning and public works departments to obtain infor-
               mation about applicable permits and to discuss your plans. Meeting with agency staff to
               discuss the landfill  gas project and required permits often helps expedite the permitting
               process.

    Step 3     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 4     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 5     Submit a  complete application. Incomplete applications typically result in processing
               delays.

    Step 6     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.

Typical Local Permits
The table on the following page provides information about typical local  permits and approvals required
for LFGTE projects.
                       A Primer on Developing South Carolina's Landfill Gas-to-Energy Potential     21

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Table 3.1
       Local Regulations and Permits
Permit
                  Description
Building Permit
                  Most county/local governments require building permits for construction, which entail
                  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. A landfill gas 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 a LFGTE project. Good facility design that maintains
                  the pre-development runoff characteristics of the site will typically enable the project
                  to  meet permitting requirements easily.
Solid Waste Disposal
                  A LFGTE project may generate solid wastes, such as packaging material, cleaning
                  solvents, and equipment fluids. If the landfill is closed, disposal of these solid wastes
                  may be subject to review by a local authority.
Wastewater
                  The primary types of wastewater likely to be generated by a LFGTE project include
                  maintenance wastewater and cooling tower blowdown. The city engineer's office
                  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 landfill gas 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 25 percent of the lower
                  explosive limit (LEL) in a facility's structures. County regulations may call for as strict
                  or stricter standards to be observed at the landfill.
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 energy recovery projects located near residential areas will likely have to comply
                  with stricter noise level standards than projects located in non-populated areas.
22
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 Part  2: Incentive Programs
Q    Overview of Federal Incentive Programs
        Currently, two federal incentive programs may apply to LFGTE projects: the Renewable Energy Production
        Incentive (REPI), the Qualifying Facilities (QF) Certification, and the Section 29 Tax Credit. Each program is
        described  below.
 1.1    Renewable Energy Production Incentive (REPI)
        The Renewable Energy Production Incentive (REPI), mandated under the Energy Policy Act of 1992,
        may provide a cash subsidy of up to 1.5 cents per kilowatt hour to owners and operators of qualified renew-
        able energy sources, such as landfills, that began operation between October 1993 and September 2003.4
        Private sector entities may qualify to earn tax incentives based on a tier system. Tier 1 facilities (solar, wind,
        geothermal, or closed loop biomass) receive full payments or pro rata payments if funds are too minimal to
        match all requests. Any remaining funds fall to Tier 2 which includes landfill gas facilities. If there are insuffi-
        cient funds to  cover Tier 2 applicants, a pro-rata system is implemented. The Department of Energy (DOE)
        will make incentive payments for 10 fiscal years, beginning with the fiscal year in which application for
        payment for electricity generated by the facility is first made and the facility is determined by DOE to be
        eligible for receipt of an incentive payment. The period for payment under this program ends in fiscal year
        2013. REPI payments are subject to adjustment because they are appropriated by Congress each year.

        For further information, contact:

        U.S. Department of Energy
        National Renewable Energy Laboratory
        Golden  Field Office
        Golden,  Colorado  80403
        (303) 275-4795

        U.S. Department of Energy
        Efficiency and Renewable Energy
        Forrestal Building,  Mail  Station EE-10
        1000 Independence Avenue, S.W.
        Washington, DC 20585
        Phone: (202) 586-2206


 1.2    Qualifying Facilities  Certification
        LFGTE 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 conservation of energy and energy security  by removing barriers to the
        development of cogeneration facilities and facilities that employ waste or renewable fuels. Such facilities
        are called Qualifying Facilities, or QFs. Under PURPA,  utilities are required to purchase electricity from

        4 Final Rule Making, 10 Federal Register Part 451, July 19, 1995, Vol. 60, No. 138.


                              A Primer on Developing South Carolina's Landfill Gas-to-Energy Potential     23

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        QFs at each utility's avoided cost of generating power. PURPA provides that a small power production
        facility, such as a LFGTE project that meets FERC standards, can become a QF.

        In order to apply for QF status, applicants must prepare either (1) a Notice of Self-Certification, which
        asserts compliance with the FERC's 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, exemp-
        tions, and other activities. FERC will provide the QF "Info Packet" that describes the necessary steps,
        requirements,  and background information. After submittal of the initial  application, further justifications
        and submittal  of information may be required.

        For the QF Info Packet and applications, contact:

        Federal Energy Regulatory Commission
        Qualifying Facilities Division
        825 North Capitol Street, N.E.
        Washington, DC  20426
        Phone: (202) 208-0577
        http://www.ferc.fed.us


1.3    Section 29 Tax Credit
        Developers of  LFGTE 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 credits,
        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 land-
        fill gas. Section 29 tax credits are available through 2007 to LFG projects that have a gas sales agreement
        in place by December 31, 1996, and are placed in service by June 30, 1998. The credit has been extend-
        ed several times by the U.S. Congress, but currently it is discontinued.
24     Landfill Gas Projects in South Carolina

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       State Incentive Programs


2.1    EnerFund Business Energy Improvement and Recycling Market
       Development Revolving  Loan Fund
       The South Carolina Energy Office, an office of the State Budget and Control Board, Division of Regional
       Development, administers a business loan fund. EnerFund A provides low-interest loans for energy
       efficiency improvements in facilities and equipment.  EnerFund B loans are available for installation of
       equipment and technology for conversion of recyclable materials. Eligible EnerFund B projects include
       use of waste material as an energy source, manufacture of new products from recycled materials, and
       processing of recyclable materials for specified end  users.

       Loans range in  size from $25,000  to $500,000. The maximum duration for EnerFund A loans is 10 years
       and for EnerFund B loans, 15 years. Interest rates are calculated based on 90% of the average of rates for
       comparable duration U.S. Treasury Notes issued during the past 12 months. The current (November 1999)
       Enerfund rate for a 10-year loan is 4.7 percent. A loan origination fee equal to 1% of the loan amount is
       charged and payable at closing. Also, an irrevocable  letter of credit is required for loan security.

       To apply for a loan, a business completes a loan application form and submits it with a project
       description prepared by a registered South Carolina Professional Engineer to the South Carolina Energy
       Office. Audited financial summaries for the past three years and a current financial statement are also
       required. Once the application is complete, the Energy Office prepares a statement of proposed loan
       terms. Technical and credit reviews are conducted by Energy  Office staff and then by an external Loan
       Review Committee. Recommended loans are approved by the Directors of the Energy Office and the
       Division of Regional Development and then  reported to the State Budget and Control Board. The
       review/approval period is approximately 30 days from receipt  of a complete loan application  package.

       Once a loan is  approved, Energy Office staff prepare a standard loan closing package and submit it
       for review to the client's counsel. Upon satisfactory review, the client's counsel conducts the  closing.
                             A Primer on Developing South Carolina's Landfill Gas-to-Energy Potential     25

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        Electricity Restructuring and  LFGTE

        What Is Electricity Restructuring?

        Electricity restructuring refers to the introduction of competition into both the wholesale and retail
        electricity markets. Until now, electric utilities operated as monopolies authorized by federal and state
        regulatory authorities as the sole provider of electric service to consumers within a specific service
        territory. Under restructuring, utilities will  lose these monopolies, enabling other energy providers to
        compete for their customers. The result may be more energy options for consumers, lower energy
        prices, and greater use of renewable energy sources.

        Efforts to restructure the electric utility industry began in 1978 with passage of the  Public Utilities
        Regulatory Policies Act (PURPA), which required utilities to buy a  portion of their power from
        unregulated power generators in an effort to encourage the development of smaller generating facilities,
        new technologies, and renewable energy sources. The National Energy Policy Act of 1992 (EPACT)
        expanded on PURPA, allowing  more types of unregulated companies to generate and sell electricity,
        effectively creating a competitive wholesale market for electric power.

        Restructuring at the retail level has been  a hot  issue in many states since the passage of EPACT, which
        delegated states the authority to introduce competition among electric  utilities within their borders. As of
        January 1999, 22 states have enacted some form of restructuring  legislation, while  the remaining 28 are
        considering such legislation.

        How Do These Changes Affect Landfill Gas Recovery?

        Many states are including  renewable energy provisions in their restructuring legislation. Such provisions
        mandate utilities to include a certain percentage of electricity generated from renewable, or "green
        energy," sources into their energy mixes. LFGTE is one such green energy source.

        In March 1998, the Clinton Administration unveiled its "Comprehensive  Electricity Competition Plan" to
        restructure the electricity industry nationwide. Contained in that proposal is a Renewable  Portfolio
        Standard (RPS) that would guarantee that a minimum percentage of the nation's electricity be powered
        by green energy.  Energy service providers would be required  to cover a percentage of their electricity
        sales with generation from non-hydroelectric renewable sources such as wind, solar, geothermal, and
        biomass (which includes LFGTE).

        Marketing Landfill Gas Recovery as Green Power

        One of the emerging areas and most promising  mechanisms to encourage utilities and other energy
        marketers to participate in LFGTE projects is the development of green marketing programs. Green
        marketing programs are designed to enable energy marketers to position  renewable energy products (includ-
        ing LFGTE) as premium products, and therefore, collect a premium price from their customers. In addition,
        green marketing allows energy marketers in competitive marketplaces to differentiate their energy product,
        and allows utilities in non-restructured  marketplaces to gain critical product marketing  experience in prepara-
        tion for competition. However, the general  public is less familiar with  LFGTE than other sources of renewable
        energy; support from the LMOP can help to ensure the success of early LFGTE green marketing efforts.

        Get the Latest Information on Electricity Restructuring in South Carolina

        South Carolina has not yet enacted electricity restructuring legislation.  For up-to-date information on
        electricity restructuring in South Carolina, visit http://www.state.sc.us/energy/deregulation.htm.
26     Landfill Gas Projects in South Carolina

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Appendix A: South Carolina Department of Tranportation Contacts
Headquarters

South Carolina Department of Transportation
955 Park Street
Post Office Box 191
Columbia, South Carolina 29202-0191
(803) 737-2314
District Engineering Administrators

District One
1400 Shop Road
Columbia, SC 29201
(803) 737-6660

District Two
510 W. Alexander Avenue
Greenwood, SC 29646
(864) 227-6971

District Three
Post Office Box 6608 - Station B
Greenille, SC 29606
(864) 241-1010

District Four
J.A. Cochran Bypass
Post Office Box 130
Chester, SC 29706
(803) 377-4155
District Five
Post Office Box 1911
Florence, SC 29501
(803) 661-4710

District Six
6355 Fain Blvd.
North Charleston, SC 29406-4989
(803) 740-1665

District Seven
US Route 178 East
Bowman Road
Drawer 1086
Orangeburg, SC 29116-1086
(803) 531-6850
Note: Engineering districts are shown on page 28.
                            A Primer on Developing South Carolina's Landfill Gas-to-Energy Potential
                                                            27

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Appendix A: South Carolina Department of Tranportation Contacts
(continued)
Engineering Districts
    Engineering Districts
28    Landfill Gas Projects in South Carolina

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