United States
                   Environmental Protection
                   Agency

Air and Radiation
(6202J)


EPA430-R-01-003
February 2001
www.epa.gov/lmop
vvEPA          Utah  State  Primer


                                                   A Primer on
                                                   Developing
                                                   Utah's Landfill

                                                   Gas Utilization
                                                   Potential


                   LANDFILL METHANE
                   OUTREACH PROGRAM
                   Printed on paper that contains at least
                   30 percent postconsumer fiber.


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Contents
       Introduction
       1.   The Goals of This Primer	i
       2.   LFG Projects in Utah 	ii
       3.   About the Landfill Methane Outreach Program	iii
       4.   Where to Go for More Information 	iii
       Part 1:  Regulations and Permits
       1.   Overview of  Federal Regulations and Permits  	1
           1.1   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 	6
       2.   State Regulations and Permits	6
       3.   Overview of  Local Regulations and Permits	16
       Part 2:  Incentive Programs
       1.   Overview of  Federal Incentive Programs	19
           1.1   Renewable Energy Production Incentive (REPI)  	19
           1.2   Qualifying Facilities Certification	19
           1.3   Section 29 Tax Credit 	20
       2.   State Incentive Programs	20
       3.   Electricity Restructuring and LFG	20
       4.   Voluntary Reporting of Greenhouse  Gases Program	21
       Tables
       Table 2.1  Summary Table of State Regulations/Permits 	7
       Table 2.2 Title V Operating  Permits	8
       Table 2.3 Air Quality Approval Order	10
       Table 2.4 Solid Waste Permit	11
       Table 2.5 Surface Water Discharge  Permit	12
       Table 2.6 Construction Permit for Wastewater Treatment Facilities	13
       Table 2.7 Indirect Discharges	14
       Table 2.8 Storm  Water Permit	15
       Table 3.1  Local Regulations and Permits	17
       Table 3.2 Local Health Departments	18

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

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

To develop this  primer, the state of Utah identified all the permits and funding programs that could apply to LFG
projects developed in Utah. 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 gov-
ernment proposes new directions for state and local  governments. LFG  project developers should verify and
continuously monitor the status of  laws and rules that might affect their plans or the operations of their projects.

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

            • Landfill operators                 • Engineers

            • Utility companies                 • Equipment vendors

            • Independent power  producers     • Landfill owners

            • Utility regulators                  •Community officials

            • State regulators

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

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

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

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

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

            • Federal Incentive Programs. This section presents information on federal incentives that may apply
             to LFG projects.
                                       A Primer on Developing Utah's Landfill Gas Utilization Potential

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

             Electricity Restructuring. This section discusses how renewable energy provisions in state electricity
             restructuring regulations might apply to LFG projects.

             Voluntary Reporting of Greenhouse Gases. This section discusses a program allowing organizations
             to gain recognition for environmental achievements related to greenhouse gas emissions.
        LFG Projects  in Utah
While the State of Utah currently has no LFG projects, seven candidate landfills have been identified with poten-
tial to generate approximately 15 megawatts of power. The medium-sized candidate landfills (50,000-100,000
tons per year) include:

        •  Logan City Landfill

        •  Bountiful City Landfill

        •  Iron County Landfill

        •  Washington County Landfill

Three large landfills (greater than 100,000 tons per year) in the state also have been identified as candidate sites.
These include:

        •  Salt Lake Valley Landfill

        •  Trans Jordan Landfill

        •  South  Utah Valley Landfill

A LFG project feasibility study has been completed for the Salt Lake Valley Landfill. In addition, an end user
and/or project partner has been identified. It is most  likely that this will be the first operational LFG project in
the state.
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 LFG project development

            •  Removing barriers to developing LFG projects

To achieve these goals, EPA establishes alliances with four key constituencies:

            •  State environmental and energy agencies

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

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

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


i i       Landfill Gas Projects in Utah

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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 land-
fills,  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 2000, more than 320 landfill methane recovery projects were operating in the United States. EPA
estimates that up to 650 landfills across the United  States could install economically viable landfill gas projects.
D
Where To Go For More Information
Utah Landfill Methane Task Force Members

           Romney M. Stewart
           Director of Solid Waste
           Salt Lake Valley Solid
             Waste Management Council
           6030 West  1300 South
           Salt Lake City, Utah 84104
           Phone: (801)974-6920
           Fax (801) 974-6936
           e-mail:  rstewart@slvswmf.net

           Darin Olson
           ECDC Environmental LC.
           1111 West Highway 123
           P.O.  Box 69
           East Carbon, UT 84520
           Phone: (435) 888-4418
           Fax (435) 888-0407
           e-mail: dolson@awin.com

           Ralph T. Bohn
           State of Utah
           Department of Environmental Quality
           Division of Solid and Hazardous Waste
           P.O.  Box 144880
           Salt Lake City, Utah 84114-4880
           Phone: (801) 538-6170
           Fax:  (801) 538-6715
           e-mail:  rbohn@deq.state.ut.us
                                                       Dwayne J. Woolley
                                                       Trans Jordan Cities
                                                       10873 S. 7200 West
                                                       P.O. Box 95610
                                                       South Jordan, UT 84095-0610
                                                       Phone: (801) 569-8994
                                                       Fax (801) 352-0578
                                                       e-mail: landfill@qwest.net

                                                       Roy VanOs,  Ph.D.
                                                       State of Utah
                                                       Department of Environmental Quality
                                                       Division of Solid and Hazardous Waste
                                                       P.O. Box 144880
                                                       Salt Lake City, Utah 84114-4880
                                                       Phone: (801) 538-6170
                                                       Fax: (801) 538-6715
                                                       e-mail: rvanos@deq.state.ut.us

                                                       Lisa Yoder
                                                       Office of Energy Services
                                                       Alternative Fuels and
                                                        Transportation Program
                                                       324 South State, Suite 500
                                                       Salt Lake City, UT 84111
                                                       Phone (801) 538-8767
                                                       Fax (801) 538-8660
                                                       e-mail: lyoder@dced.state.ut.us
                                      A Primer on Developing Utah's Landfill Gas Utilization Potential
                                                                                           MI

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           Bernell Loveridge
           Office of Energy Services
           Local Government Energy
             Efficiency Program
           324 Soufh Sfafe, Suife 500
           Salf Lake Cify, UT 84111
           Phone (801) 538-8768
           Fax (801) 538-8660
           e-mail: bloverid@dced.sfafe.utus

           Mary Paf Buckman
           Salf Lake Valley Health Deparfmenf
           Division of Environmenfal Health
           788 E. Woodoak Ln (5380 S), #120
           Murray, UT 84107-6707
           e-mail: mbuckman@co.slc.ut.us
                                                      Daniel Bauer
                                                      Salt Lake Valley Solid
                                                        Waste Management Council
                                                      6030 West 1300 South
                                                      Salt Lake City,  Utah 84104
                                                      Phone: (801)974-6920
                                                      Fax (801) 974-6936
                                                      e-mail: dbauer@slvswmf.net

                                                      Jesse McDonald
                                                      State of Utah
                                                      Department of Environmental Quality
                                                      Division of Air Quality
                                                      P.O. Box 144820
                                                      Salt Lake City,  Utah 84114-4880
                                                      Phone (801) 536-4062
                                                      Fax (801) 536-4099
                                                      e-mail: jmcdonald@deq.state.ut.us
For more information about EPA's LMOP program, contact:

           U.S. Environmental Protection Agency
           Landfill Methane Outreach Program (6202J)
           1200 Pennsylvania Avenue, N.W.
           Washington DC 20460
           (888) STAR-YES (782-7937)
           Fax (202) 565-2077
           http://www.epa.gov/lmop
IV
Landfill Gas Projects in Utah

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Part 1: Regulations and  Permits
The following section discusses federal regulations that may pertain to LFG projects. LFG 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 regulations for carrying out the federal
mandates. Specific requirements may therefore differ among states. Project developers will have to contact rele-
vant federal agencies and, in some cases, state agencies for more detailed information and applications. The
discussion of each key federal regulation/permit contains three components:

           •  Importance of the regulation/permit to LFG project developers

           •  Applicability to LFG projects

           •  Description of each regulation/permit
1.1    Clean Air Act (CAA)
The CAA regulates emissions of pollutants to protect public health and the environment. The CAA contains
three provisions that may affect LFG projects. The first two provisions, the New Source Performance Standards
(NSPS)/Emission Guidelines (EG) and New Source Review (NSR) are currently in effect. The third provision,
the Maximum Achievable Control Technology (MACT) standard, was recently proposed and may be finalized in
late 2001.

Facilities planning to construct a new LFG system or those planning to modify a landfill operation to incorporate
a LFG system must obtain a Construction and Operating Permit from the responsible air regulatory agency if
emissions from the project exceed the major facility emission thresholds. The Construction and Operating Permit
specifies the NSPS/EG and NSR requirements that the project must meet. The general requirements of the
NSPS/EG, NSR, and Title V for LFG projects are discussed below.
New Source Performance Standards (NSPS)
and Emissions Guidelines for MSW Landfills
Importance   LFG projects can be part of a compliance strategy to meet EPA's emissions standards for landfill
              gas.

Applicability  Landfills meeting certain design capacity, age and emissions criteria are required to collect  LFG.
              Numerous control options to combust LFG are provided to landfill owner/operators including but
              not limited to LFG projects.
Description   EPA final regulations under the CAA amendments require affected landfills to collect and control
              LFG. Specifically, landfills that are 2.5 million megagrams and 2.5 million cubic meters in  size and
              have estimated emissions of nonmethane organic compounds (NMOC) of at least 50 megagrams
              per year must reduce their emissions of landfill gas. The regulations identify NMOC as a surrogate
              for landfill gas. Therefore, the emission reductions required in the rules are specified as reductions
              of NMOC.

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               Landfill gas emissions were targeted in these rules because of the potential negative impact on
               human health and the environment from the volatile organic compounds contained in the gas.
               In addition, the contribution of landfill gas to local smog formation, local odors, and potential
               explosives were included in the decision-making process. Finally, the potential for landfill fires was
               also factored into the decision.
               For landfills that received waste after November 8, 1987 ("existing landfills"), the Emission Guidelines
               (40 CFR Part 60 Subpart Cc) apply. For landfills that commenced construction, reconstruction, or
               modification on or after May 30,  1991 ("new landfills") the New Source Performance Standards
               (40 CFR Part 60 Subpart WWW) apply. The collection and control requirements in each of these
               standards is the same; only the start of the compliance clock differs.

               The final  regulations can be found  in the Federal Register, March 12,  1996, Vol. 61, No. 49,
               pages 9257-9262.

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 Mg1  (and 2.5 million cubic
      meters, about 2.75 million tons). If NMOC emissions are less than 50 Mg for a facility greater than 2.5
      million Mg and 2.5 million cubic meters, reporting is required.  If the annual emissions are 50 Mg or
      more for these landfills, collection and control of landfill gas are required.
    • Emissions—annual  NMOC emission rate  is greater than 50 Mg  (about 55 tons).

Air Emissions: New Source Review (NSR) Permitting  Process
Importance    New LFG projects may be required to obtain construction permits under New Source Review
               (NSR). Depending on the area  in which the project is located, obtaining these permits may be
               the most  critical aspect of project approval.
Applicability  The combustion of LFG results in emissions of carbon monoxide, oxides of nitrogen and PM-10.
               Requirements vary for control of these emissions depending on local  air quality. The relevant
               standards for a particular area  will be discussed in Section 2, State Standards and Permits.
               Applicability of these standards to LFG projects will depend on the level of emissions resulting
               from the technology used in the project and the project's location (i.e., attainment or nonattain-
               ment area).
Description   CAA regulations require new stationary sources and  modifications to  existing sources of certain
               air emissions to undergo NSR  before they can operate. The purpose  of these regulations is to
               ensure that sources meet the applicable air quality standards for the area in which they are located.
               Because these regulations are  complex, a landfill owner or operator or the owner/operator of the
               LFG project may want to consult an attorney or expert familiar with NSR for more information
               about  permit requirements in a particular area.
The existing CAA regulations for attainment and maintenance of ambient air quality standards regulate six criteria
pollutants—ozone, nitrogen dioxide (NO2), carbon monoxide (CO), particulate matter (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 classi-
fied as being  in "attainment" for that  pollutant and those that do not are in "nonattainment." Because each state
       ' Landfills with less than 2.5 million Mg are required to file a design capacity report.

        Landfill Gas Projects in Utah

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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 require-
ments will vary by state. However, the minimum requirements of the federal permitting regulations must still be
met. (See 40 CFR 51.160-51.166 for more information.)

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

Prevention of Significant Deterioration Permitting

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

All areas are governed to some extent by PSD regulations,  because no location is in nonattainment for all criteria
pollutants. At this time, applicants must determine PSD applicability for each individual pollutant based on its
attainment/nonattainment status. 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 (unless it is a listed source
category).

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

    • Monitoring of local air quality
    • Source impact analysis/modeling

    • Additional impact analysis/modeling  (i.e., impact on vegetation, visibility and Class areas)2
Minor sources (i.e., below 100/250 tons per year) are exempt from this process, but these sources  may still be
required to obtain a construction and operating air permit.  See  40 CFR 52.21 for more information on PSD.

Nonattainment Air Permitting
A source locating in an area that has been designated nonattainment for one or more of the six criteria pollu-
tants may  be subject to the nonattainment NSR for such pollutants. Ozone is the most pervasive nonattainment
pollutant, and the one most likely to  affect LFG  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  modification  is classified as major (i.e., if the new or modified source exceeds specified emissions thresholds,
typically 100 tons per year, but lower in some cases for VOC/NOxand PM-10). To obtain a nonattainment NSR
permit for criteria pollutants, a project must meet several requirements:
    2Class 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 Utah's Landfill Gas Utilization Potential

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    • Use technology that achieves the Lowest Achievable Emissions Rate (LAER) for the
      nonattainment pollutant
    • Arrange for an actual emissions reduction at an existing combustion source that  offsets the emissions
      from the new project at specific ratios

Title V Operating Permit

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

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

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


1.2    Resource Conservation and Recovery Act Subtitle  D

Importance   Before a LFG project can be developed, all Resource Conservation  and Recovery Act (RCRA)
              Subtitle D requirements (i.e., requirements for non-hazardous waste management) must be satisfied.
Applicability  Methane is explosive in certain concentrations and poses a hazard  if it migrates beyond the land-
              fill facility boundary. Landfill gas collection systems must meet RCRA Subtitle D standards for
              gas control.

Description   In October 1979, federal regulations were promulgated under Subtitle D of RCRA, requiring
              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  perfor-
               mance standards for combustible gas migration control. Monitoring requirements must be met at
              landfills not only during their operation, but also for a period of  30 years after closure.

Landfills affected by RCRA Subtitle D are required to control gas by establishing a program to periodically check
for methane emissions and prevent offsite migration. Landfill owners and operators  must ensure that the concen-
tration of methane gas does not exceed:

    • 25 percent of the lower explosive limit for methane in facilities' structures, and
    • 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 col-
lection 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.

4       Landfill Gas Projects in Utah

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1.3   National Pollutant Discharge Elimination System (NPDES) Permit
Importance    LFG projects may need to obtain NPDES permits for discharging wastewater that is generated
               during the energy recovery process.
Applicability  LFG condensate forms when water and other vapors condense out of the gas stream due to
               temperature and pressure changes within the collection system. This wastewater must be
               removed from the collection system. LFG projects may also generate wastewater from system
               maintenance and cooling tower 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.
LFG projects 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 this information.
      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    LFG projects may need CWA Section 401 certification for constructing pipelines that cross
               streams or wetlands.
Applicability  LFG recovery collection pipes or distribution pipes from the landfill to a nearby gas user may
               cross streams or wetlands. If the construction or operation of such pipes causes any discharge
               of dredge into streams or wetlands, it may require Section 401 certification.
Description    Any construction or operation  of facilities that results in any discharge into streams or wetlands,
               is regulated  under Section 401. This requirement may affect the construction of LFG project facil-
               ities or pipelines to transport  LFG.
The applicant must obtain a water quality certification from the State in which the discharge will originate.
The certification should then be sent to the U.S. Army Corps of Engineers. The certification indicates that such
discharge will comply with the applicable provisions of Sections 301, 302,  303, 306 and 307 of the Clean Water
Act (CWA).
                                      A Primer on Developing Utah's Landfill Gas Utilization Potential

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1.5   Other Federal Permit Programs
The following are brief descriptions of how other federal permits could apply to LFG project development.

    • RCRA Subtitle C  could apply to a LFG project if it produces hazardous waste. While some LFG projects
      can return condensate to the landfill, many dispose of it through the public sewage system after some
      form of 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  habitat for
      endangered species.
       State Regulations and Permits
This section provides information on permits required by the State of Utah for the development of a LFG project.3
For an overview of required permits, contact information, and length of the review period, see Table 2.1. Tables 2.2
through  2.8 present more detailed information about the required permits. Information provided on each permit
includes:

           • How the permit is applicable to LFG projects

           • The appropriate agency contact

           • A description of the permit

           • The statute/regulation

           • Information required and suggestions for a successful application

           • The application and review process

           • The review/approval period.
3 The permits contained in this handbook were suggested by state permitting agencies.

6      Landfill Gas Projects in Utah

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 Table 2.1
Summary Table of State Regulations/Permits
Standard
Permit
Agency/Contact
Length of
review period
Air
Title V Operating Permit
Division of Air Quality
Richard Sprott
(801) 536-4000
18 months
                Air Quality Approval Order
                                Division of Air Quality
                                Richard Sprott
                                (801) 536-4000
                                 90 days
Landfills
Solid Waste Permit
Division of Solid
and Hazardous Waste
Ralph Bohn
(801) 538-6170
60 days to
6 months
Water
Surface Water Discharge Permit
Division of Water Quality
Gayle Smith
(801) 538-6170
60 days to
6 months
                 Construction Permit
                                Division of Water Quality
                                Kiran Bhayani
                                (801) 538-6080
                                 60 days to
                                 6 months
                 Indirect Discharges to
                 Municipal Sanitary Sewers
                                Division of Water Quality
                                Gayle Smith
                                (801) 538-6170
                                 60 days to
                                 6 months
                 Storm Water Permit
                                Division of Water Quality
                                Gayle Smith
                                (801) 538-6170
                                 60 days to
                                 6 months
                                     A Primer on Developing Utah's Landfill Gas Utilization Potential

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 Table 2.2
Title V Operating Permits
Applicability to
Landfill Gas Projects
Agency Contact
Description
Statute/Regulation
           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.

           Operating permit required for facilities with landfill design capacity of 2.5 million
           megagrams or more regardless of "major" status as defined above. 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.

           Richard W. Sprott, Acting  Director
           Utah Division of Air Quality
           150  North 1950 West
           P.O. Box 144820
           Salt Lake City, Utah 84114-4820
           (801)536-4000

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

           The Clean Air Act (42 USC §§ 7401 et seq.); 40 CFR Part 70. Utah Administrative
           Code R307-415
Information
Required/Suggestions
           Facilities subject to Part 70 must submit an application within one year of applicability
           to the Title V program that describes all sources of air pollution and quantifies emis-
           sions from those sources. The application must identify all applicable federally
           enforceable requirements to those sources as well.
       Landfill Gas Projects in Utah

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Application Process
Review Process
Review/Approval
Period
The facility submits an application developed by the Division of Air Quality. This appli-
cation will contain the information necessary to describe all air pollution sources and
quantify emissions from these sources.

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 per-
formed. When a permit is drafted, it undergoes several reviews, including one by the
facility. A public notice of the draft permit is then issued for a 30-day public comment
period; if comments are received, the draft is either revised and re-noticed or a reply
to the comments is issued and the permit goes to EPA for a 45-day comment period,
after which these comments (if any) are addressed and the permit is finalized.

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
adjusted annually by the State Legislature as appropriate to sufficiently fund the Title V
program. There are no application fees.
                                        A Primer on Developing Utah's Landfill Gas Utilization Potential

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 Table 2.3
       Air Quality Approval Order
Applicability to
Landfill Gas Projects
Agency Contact
Description
Statute/Regulation
                  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..

                  Operating permit required for facilities with landfill design capacity of 2.5 million
                  megagrams or more regardless of "major" status as defined above. 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.

                  Richard W. Sprott, Acting  Director
                  Utah Division of Air Quality
                  150 North  1950 West
                  P.O. Box 144820
                  Salt Lake City, Utah 84114-4820
                  (801) 536-4000

                  An Approval  Order may be necessary for equipment that collects, handles, or treats
                  landfill gas. Before any air pollution source is constructed, an Approval Order must be
                  obtained from the Division of Air Quality.

                  Utah Administrative Code  R307-400 series
Information
Required/Suggestions
Application Process
Review Process
                  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. A Notice of Intent (NOI) is prepared by the source for review. An
                  air dispersion  modeling analysis for the air pollutant emissions may also be  necessary.
                  A guide to preparing a  NOI is available for download at
                  http://www.deq.state.ut.us/eqair/permits/pmtforms.htm.

                  The facility submits a NOI. The NOI will contain the information necessary to describe
                  all  landfill-oriented air pollution sources and quantify emissions from these sources.
                  The NOI should also contain drawings and other supporting material as necessary.

                  After the NOI is deemed administratively complete, a technical review is performed. A
                  draft permit is issued for the applicant to review before it is published for public com-
                  ment and finalized.
Review/Approval
Period
                  The Approval Order must be issued within 90 days of the NOI being deemed admin-
                  istratively complete.
Fees
                 Application fees, review fees, and initial inspection fees are applicable.
10
Landfill Gas Projects in Utah

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 Table 2.4
Solid Waste Permit
Applicability to
Landfill Gas Projects
Agency Contact
Description
         A permit is required to operate a solid waste disposal facility. Closure and post-
         closure plans are required as part of the permit. Closed landfills are required to
         continue to monitor the landfill for a 30 year post-closure care period  under a post-
         closure care permit. As a requirement of the permit the facility must prevent offsite
         migration of landfill gas.  Landfill gas collection systems and landfill gas recovery
         projects may be major permit modifications.

         Ralph Bohn, Manager
         Solid Waste Section
         Division of Solid and Hazardous Waste
         P.O. Box 144880
         Salt Lake City, Utah 84114-4880
         (801) 538-6170

         Devices installed for the  control of landfill gas and methane would fall under the solid
         waste permit as they relate to cell design, operation, closure and post-closure care.
         Modification of the permit to add or change the approved operation and design
         requires approval of the  Executive Secretary of the Solid and Hazardous Waste
         Control Board.
Statute/Regulation
Information
Required/Suggestions
Application Process
Review/Approval
Period
         The Executive Secretary of the Solid and Hazardous Waste Control Board has been
         authorized to issue permits for construction, operation and closure of landfills in Utah.
         See Solid and Hazardous Act Utah Code Annotated 19-6 and Utah Administrative
         Code R315-301 through 320.

         Any landfill that is constructing a gas collection system must submit the design draw-
         ings and other details of the system to the Executive Secretary for review and approval.
         Permits also require that funds for the closure and post-closure care of the landfill
         be maintained. Any landfill gas collection system will be included  in the financial
         assurance costs.

         Design drawings and specifications of the landfill gas control  and  collection system
         along with cost estimates for construction, operation and  maintenance should be
         submitted to the Executive Secretary for approval. Discussion of the project with the
         Division prior to submittal of the plans is recommended.

         Copies of the Solid Waste Permitting and Management Rules, Permit application doc-
         uments, and other useful information can be found at the Solid Waste Section's web
         site at www.eq.state.ut.us/eqshw/sws.htm.

         60 days to 6 months
                                        A Primer on Developing Utah's Landfill Gas Utilization Potential
                                                                                     11

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 Table 2.5
        Surface Water Discharge Permit
Applicability to
Landfill Gas Projects
                  Discharging waste water to surface waters, including storm drains, requires a permit
                  prior to beginning operations. Utah Pollutant Discharge Elimination System (UPDES)
                  Permits are  required for all industrial, municipal and federal facilities, except those on
                  Indian lands.
Agency Contact
                  Gayle Smith, Ph.D., Manager
                  Permits and Compliance Section
                  Utah Division of Water Quality
                  P.O. Box 144887
                  Salt Lake City Utah 84114-4887
                  (801) 538-6779
Description
                         This permit describes the discharge/effluent limitation, monitoring, and reporting
                         requirements, compliance responsibilities, and general requirements including
                         reopener provisions.
Statute/Regulation
Information
Required/Suggestions
                 The UPDES permitting program is authorized under Section 19-4-108 UCA and the
                 permit requirements and procedures under Section 19-5-109 UCA.

                  Information should include applicant and facility description, basic discharge description
                  (including location, duration, receiving water body, quantity, treatment given, chemical
                  and biological quality), scheduled improvements and their schedules.
Application Process
Review Process
Review/Approval
Period
                  Contact the Division of Water Quality for information on permits needed and submit
                  completed application forms. The Division issues a draft permit, seeks public com-
                  ment in area newspapers, holds necessary public hearings and issues final permits.

                  This process includes consultation/meeting with the applicant to discuss specifics of
                  the "Draft Permit," public comment and review of at least 30 days, and consultation
                  with EPA Region 8 permitting staff.

                  60 days to 6 months
Fees
                  Range from $270 to $10,800, depending upon type, size and complexity of
                  proposed facility.
12
Landfill Gas Projects in Utah

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 Table 2.6
Construction Permit for Wastewater Treatment Facilities
Applicability to
Landfill Gas Projects
         Facilities treating wastewater may need construction permits unless they discharge
         into a municipal sanitary sewer system.
Agency Contact
          Kiran Bhayani, RE., Manager
          Design Evaluation Section
          Utah Division of Water Quality
          P.O. Box 144887
          Salt Lake City Utah 84114-4887
          (801) 538-6080
Description              ^ construction permit or an approval is required before construction of any waste-
                         water treatment facility or land application of effluents or residuals.
Statute/Regulation
Information
Required/Suggestions
          19-5 Utah Code annotated, and R317, Water Quality Rules, Utah Administrative Code.
          Refer specifically to R317-3.

          Conceptual proposal
          Design basis and calculations
          Construction plans
          Please  refer to R317-3 for further details.
Application Process
Review Process
         Contact the Division of Water Quality for information on permits needed and submit
         completed application forms. The Division issues a draft permit, seeks public com-
         ment in area newspapers, holds necessary public hearings, and issues final permits.

         Public  comments are required only for ground water and surface water permits.
         Generally, construction permits do not require a public notice/comment period.

         Typically completed in 30 days. However, complexities in the proposal may require
         more time.
Review/Approval
Period
          60 days to 6 months
          30 days on an average
Fees
          Range from $270 to $10,800, depending upon type, size, and complexity of
          proposed facility

          Plan review fee: $60/hour. Ground water, storm water, and surface water discharge
          permits may be different. Refer to Schedule of Fees.
                                       A Primer on Developing Utah's Landfill Gas Utilization Potential
                                                                                   13

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 Table 2.7
       Indirect Discharges (to municipal sanitary sewers)
Applicability to
Landfill Gas Projects
Agency Contact
                 A state permit is needed to discharge into sewers if the municipality or sewer district
                 does not have a state approved pre-treatment program or authority to issue its own
                 permits. A permit from a local control authority, usually the publicly owned treatment
                 works (POTW), is needed if the POTW has a state-approved pretreatment program.

                 Gayle Smith, Ph.D., Manager
                 Permits and Compliance Section
                 Utah Division of Water Quality
                 P.O. Box 144887
                 Salt Lake City Utah 84114-4887
                 (801) 538-6779
Description
Statute/Regulation
                  Landfill leachate and landfill gas condensate from nonhazardous landfills has been
                  determined by EPA not to require pretreatment before being discharged to a POTW.
                  However, the discharge may be subject to local limits and permitting. Landfill leachate
                  and landfill gas condensate derived from listed petroleum refining processed wastes
                  (K169-172) that were disposed of before, but not after, February 5, 1999 are exempt
                  from RCRA requirements provided the  leachate and condensate is regulated under
                  the Clean Water Act and not stored in surface impoundments after February 13, 2001.

                  40 CFR Part 261 (February 11, 1999) UAC R317-8-8, various local ordinances and
                  resolutions.
Information
Required/Suggestions
Application Process
                  Each POTW has unique wastewater treatment capabilities. Those with approved waste-
                  water pretreatment programs, have developed local limits for pollutants to protect their
                  treatment systems. All prospective non-domestic dischargers will need a  permit from the
                  receiving POTW before beginning to discharge.

                  Contact the Division of Water Quality for information on permits needed and submit
                  completed application forms. The Division issues a draft permit, seeks public com-
                  ment in area newspapers, holds necessary public hearings, and issues  final permits.
Review Process
                  Evaluation of application for completeness.
Review/Approval
Period
                  60 days to 6 months
Fees
                  Range from $270 to $10,800, depending upon type, size, and complexity of
                  proposed facility.
14
Landfill Gas Projects in Utah

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 Table 2.8
Storm Water Permit
Applicability to
Landfill Gas Projects
Agency Contact
Description
Statute/Regulation
          Discharge permits are required for most industries that discharge storm water runoff
          to surface waters such as lakes or streams. Storm water pollution prevention plans
          must be in place prior to application.

          All construction activities that disturb more than 5 acres (clearing, grading, and exca-
          vating) are  required to obtain a UPDES Construction Stormwater Permit (mainly for
          sediment and erosion control)

          Gayle Smith, Ph.D., Manager
          Permits and Compliance Section
          Utah Division of Water Quality
          P.O. Box 144887
          Salt Lake City Utah 84114-4887
          (801) 538-6779

          Storm Water Discharge Permits require the installation of Best Management Practices
          (BMPs) to control the quality of the storm water discharges to waters of the state.

          Utah Administrative Code R317-8-3.8
Information
Required/Suggestions
Application Process
Review Process
Review/Approval
Period
           In most cases creation of a Storm Water Pollution Preventive Plan (SWP3) is required
           prior to submitting a Notice of Intent to Discharge (NOT) to the Division of Water
           Quality. Review of SWP3  plans are accomplished through onsite inspections.

           Contact the Division of Water Quality for information on permits needed and submit
           completed application forms. The Division issues a draft permit, seeks public com-
           ment in area newspapers, holds necessary public hearings, and issues final permits.

           Notice  of Intent (NOT) forms are reviewed for completeness. Permit fees are required
          to be submitted with the NOT. Review for compliance with the permit is accomplished
          through onsite inspections.

           60 days to 6 months
Fees
           Range from $270 to $10,800, depending upon type, size, and complexity of proposed
           facility. Industrial permits are $500 for 5 years of coverage (may be prorated).
                                       A Primer on Developing Utah's Landfill Gas Utilization Potential
                                                                                     15

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ET
Overview of Local Regulations  and Permits
Within the framework of federal and state regulation, local governments will have some jurisdiction over LFG
development in nearly all cases. Typically, local permits address issues that affect the surrounding community.
These permits generally fall under the categories of construction, environment and health, land use and water
quality/use. In  addition to issuing their own permits, local governments are also responsible for administering
some permits for federal  and state  regulations. 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 regu-
lations are more strict than state or federal regulations.

Steps  to Successful Local Permits Approval:
The following 7 steps will help LFG project developers successfully obtain local permits approval.
     Step 1.    Determine which local authorities have jurisdiction over the project site.

     Step 2.    If necessary, determine route for LFG  pipes and contact easement officials to get
               easements/right of ways.
     Step 3.    Contact  local, city and/or county planning and public works departments to obtain information
               about applicable permits and to discuss your plans. Meeting with agency staff to discuss the
               LFG project and required permits often helps to expedite the permitting process.

     Step 4.    Obtain essential information regarding each permit,  including:
                  • What information  is required,

                  • The permitting process that should be followed, and
                  • Time frames (including submittal, hearing, and decision dates).

     Step 5.    Obtain copies of the regulations to compare and verify what is  required in the permit applica-
               tions. If they differ,  contact the appropriate permitting agency.
     Step 6.    Submit a complete application. Incomplete applications typically result in processing delays.

     Step 7.    Attend meetings or hearing(s) 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
Table 3.1  lists typical local permits and approvals required for LFG projects. Table 3.2 lists local health depart-
ments in the state.
16      Landfill Gas Projects in Utah

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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
           require compliance with several types of building codes, such as plumbing and elec-
           trical. 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).

           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              Some local public works departments require a permit for discharges during
Management              construction and operation of a LFG project. Good facility design that maintains the
                          pre-development runoff characteristics of the site will typically enable the project to
                          meet permitting requirements easily.
Zoning/Land Use
Solid Waste Disposal
Wastewater
Fire Hazards
and Precautions
Noise
          A LFG 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. Costs of disposal should also be considered.

          The primary types of wastewater likely to be generated by a LFG  project include main-
          tenance 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.

          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 2.5 percent of the lower  explosive
          limit (LEL) in a facility's structures. County regulations may call for even stricter
          standards to be observed at the landfill. Local fire departments often require material
          safety data sheets for landfill gas.

          Most local zoning ordinances stipulate the maximum allowable decibel levels from
          noise sources. These levels vary depending  on the location of the site. For example,
          LFG recovery  projects located near residential areas will likely  have to comply with
          stricter noise level standards than projects located in non-populated areas.
                                        A Primer on Developing Utah's Landfill Gas Utilization Potential     17

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 Table 3.2
       Local  Health Departments
Bear River District Health Department
655 East 1300 North
Logan, Utah 84321
Phone: (435) 752-3730
FAX (435) 750-0396

Central Utah Public Health  Department
70 West View Drive
Richfield, Utah 84701
Phone: 435/896-5451
FAX (435) 896-4353

Davis County Health Department
Courthouse Room 24
28 East State Street, POB 618
Farmington, Utah 84025-0618
Phone: (801)451-3296
FAX (801) 451-3122

Salt Lake Valley County Health Department
1954 East Fort Union Blvd., Suite #100
Salt Lake City, Utah 82121
Phone: (801)944-6600
FAX (801) 944-6608

Southeastern Utah District  Health Department
28 South 1st East, POB 800
Price, Utah 84501
Phone (435) 637-3671
FAX (435) 637-1933

Southwest Utah  Public Health Department
88 East Fiddlers Canyon Road, Suite H
Cedar City, Utah 84720
Phone: (435) 586-2437
FAX (435) 586-4851
                                           Summit County Public Health Department
                                           85 North  50 East, POB 128
                                           Coalville, Utah 84017
                                           Phone: (435) 336-4451 Ext 222
                                           FAX (435) 336-4219

                                           Tooele County Health Department
                                           151 North Main Street
                                           Tooele, Utah 84074
                                           Phone: (435) 843-2340
                                           FAX (435) 843-2304

                                           TriCounty Health Department
                                           147 East Main Street
                                           Vernal, Utah 84078
                                           Phone: (435) 781-5473
                                           FAX (435) 781-5319

                                           Utah County Health  Department
                                           589 South State Street
                                           Provo, Utah 84606
                                           Phone: (801) 370-8771
                                           FAX (801) 370-8709

                                           Wasatch City/County Health Department
                                           805 West 100 South, POB 246
                                           Heber City, Utah 84032
                                           Phone: (435) 654-2700
                                           FAX (435) 654-2705

                                           Weber/Morgan  District Health Department
                                           2570 Grant Avenue
                                           Ogden, Utah 84401
                                           Phone: (801) 399-8433
                                           FAX (801) 399-8306
18
Landfill Gas Projects in Utah

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 Part 2:  Incentive Programs
D
Overview of Federal Incentive Programs
There are three federal incentive programs that may apply to LFG projects: the Section 29 Tax Credit, the
Renewable Energy Production Incentive (REPI), and the Qualifying Facilities (QF) Certification. 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 renewable energy
sources, such as landfills, that began operation between October 1993 and September 2003.4 Private sector enti-
ties 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 insufficient 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
           http://www.eren.doe.gov/power/repi.html

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

The Public Utility Regulatory Policies Act (PURPA) — one of five parts of the National Energy Act of 1978 — was
designed to promote 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 QFs at each utility's avoided
cost of generating power.  PURPA  provides that a small power production facility, such as a LFG project that
meets FERC standards, can  become a QF.

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, exemptions, and other activities. FERC will
4 Final Rule Making, 10 Federal Register Part 451, July 19, 1995, Vol. 60, No. 138.
                                       A Primer on Developing Utah's Landfill Gas Utilization Potential
                                                                                           19

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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.f e rc.f ed. 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 landfill gas. Section 29 tax credits are available through 2007
to LFG projects that have a contract in place by  December 31, 1996 and are placed in service by June 30, 1998. The
credit has been extended several times by the U.S. Congress, but there is no guarantee that these extensions will
continue. The credit is worth $3.00 per barrel of oil-equivalent (on a MMBtu basis) and is adjusted annually for infla-
tion; currently, it is worth $0.979 per MMBtu - about 1.2 0/kWh for a typical landfill gas electricity project.
        State Incentive Programs
The State of Utah does not currently provide tax incentives for LFG projects. However, as a State Ally in the
Landfill Methane Outreach Program, Utah will continue to evaluate the creation of further incentives within the
state for this purpose.
        Electricity Restructuring and LFG
 What Is Electricity Restructuring?
 Electricity restructuring refers to the introduction of competition into both the wholesale and retail electricity
 markets. Until recently, electric utilities operated as monopolies authorized by federal and state regulatory author-
 ities 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 ener-
 gy 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 delegat-
 ed states the authority to introduce competition among electric utilities within their borders. As of January 2001,
 24 states have enacted some form of  restructuring legislation, while the remaining 26 are considering such legis-
 lation. Utah's Electrical  Deregulation and Customer Choice Task Force is  preparing legislation to implement an
 electrical restructuring plan.

20      Landfill Gas Projects in Utah

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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. LFG is one such green energy source.

In March 1998, the Clinton Administration unveiled its "Comprehensive Electricity Competition Plan" to restruc-
ture 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 LFG).

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 LFG  projects is the development of green marketing programs. Green marketing programs are
designed to enable energy marketers to position renewable energy products (including LFG) as premium prod-
ucts, 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 preparation for competition. However, the general
public is less familiar with LFG than other sources of renewable energy; support from the LMOP can help ensure
the  success of  early LFG green marketing efforts.

Get the Latest Information on Electricity Restructuring in Your State
For up-to-date information on electricity restructuring in Utah, visit the National Conference of State Legislatures
Web site at: http://www.ncsl.org/programs/esnr/restru.htm. This site contains a glossary of terms related to
restructuring, as well as links to the full text of restructuring legislation passed  by states.


       Voluntary Reporting of Greenhouse Gases Program

The Voluntary Reporting of Greenhouse Gases Program, created by Congress under Section 1605(b) of the
Energy Policy Act of 1992, provides an opportunity for any company, organization, or individual to establish a
public record of their greenhouse gas emissions,  reductions, or sequestration  achievements in a national data-
base. The data submitted to  the program is made publicly available via CD-ROM  and the Internet. Those who
report to 1605(b) can gain recognition for environmental stewardship, demonstrate support for voluntary
approached to  achieving environmental policy goals, support information exchange, and inform the public
debate about greenhouse gas emissions.
Additional information about  the program, as well as reporting forms and technical assistance, are available
through Energy Information Administration's (ElA's) Communications Center (202-586-0688, toll free at
800-803-5182,  or via e-mail at infoghg@eia.doe.gov) and on the program's Web site at
http://www.eia.doe.gov/oiaf/1605/frntvrgg.html.
                                      A Primer on Developing Utah's Landfill Gas Utilization Potential     21

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