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
ChiefGas 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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Landfill Gas Projects in South Carolina
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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.
A Primer on Developing South Carolina's Landfill Gas-to-Energy Potential
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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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Landfill Gas Projects in South Carolina
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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
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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
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Landfill Gas Projects in South Carolina
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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.
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Landfill Gas Projects in South Carolina
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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
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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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