Air and Radiation EPA 430-R-00-010
,____ ., _ . nnnj
February 2001
www.epa.gov/lmop
North Carolina
State Primer
Developing
North Carolina's
Potential
NCDENR
LANDFILL METHANE
OUTREACH PROGRAM
NORTH CAROLINA
ENVIRONMENT AND N
Printed on paper that contains at least
30 percent postconsumer fiber.
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Contents
Introduction
1. The Goals of This Primer iii
2. LFG Projects in North Carolina iv
3. About the Landfill Methane Outreach Program v
4. Where to Go for More Information x
Part 1: Standards 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) 4
1.4 Clean Water Act, Section 401 5
1.5 Other Federal Permit Programs 5
2. State Regulations and Permits 6
3. Overview of Local Regulations and Permits 9
Part 2: Incentive Programs
1. Overview of Federal Incentive Programs 11
1.1 Renewable Energy Production Incentive (REPI) 11
1.2 Qualifying Facilities Certification 11
1.3 Section 29 Tax Credit 12
2. State Incentive Programs 12
3. Electricity Restructuring and LFG 12
4. Voluntary Reporting of Greenhouse Gases Program 13
Tables
Table A Candidate Landfills for LFG Projects in North Carolina vi
Table B Small Candidate Landfills in North Carolina viii
Table 2.1 Summary Table of State Regulations/Permits 7
Table 2.2 Solid Waste Permits Summary and Checklist 7
Table 2.3 State Air Program Requirements and Checklist 8
Table 3.1 Local Regulations and Permits 10
Appendix A
State Contacts 20
A Primer on Developing North Carolina's Landfill Gas Utilization Potential
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Introduction
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. 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. 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. The primers can
be used to guide LFG project developers through the state permitting process and to help them to take advan-
tage of state incentive programs. This primer provides information on federal and state regulations and incentives
affecting LFG projects. LMOP and North Carolina state officials hope to facilitate development of many of the
landfills listed in Table A.
To develop this primer, the state of North Carolina identified all the permits and funding programs that could
apply to LFG projects developed in North 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 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 North Carolina. It provides informa-
tion for developers of LFG projects, as well as all other participants in such projects.
• Landfill operators • Engineers
• Utility companies • Equipment vendors
• Independent power producers • Community officials
• Utility regulators • Landfill owners
• 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
North Carolina, 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 North Carolina.
A Primer on Developing North Carolina's Landfill Gas Utilization Potential Mi
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Local Regulations and Permits. Local permit approval will often be needed for LFG projects. This section
offers a step-by-step process you can follow to secure this approval.
Federal Incentive Programs. This section presents information on federal incentives that may apply to LFG
projects.
State Incentive Programs. This section presents information about environmental infrastructure financing
opportunities in the state of North Carolina.
Electricity Restructuring. This section discusses how renewable energy provisions in state electricity
restructuring regulations might apply to LFG projects.
LFG Projects in North Carolina
North Carolina is a member of the LMOP State Ally Program, which encourages cooperation between EPA and
state energy and environmental agencies to promote the development of LFG resources. As a state ally, the
North Carolina Department of Environment and Natural Resources works to develop consensus among landfill
operators, utility companies, independent power producers, project developers, utility regulators, and state regula-
tors to promote new energy and environmental opportunities from which all North Carolina residents will benefit.
Fifteen LFG projects are currently operating in North Carolina and several more are under consideration. With
the closure of unlined landfills located in almost every county, North Carolina has a number of landfills with the
potential to support economically viable LFG utilization projects. In addition, North Carolina has approximately
42 operating lined (Subtitle D) landfills that can be characterized as "large" facilities. As such, they should offer
opportunities for landfill gas utilization on a larger scale.
Table A (page vi) lists operating landfills and those that were recently closed. All municipal solid waste landfills
operating in North Carolina after January 1, 1998 are required to be lined. These are considered candidate land-
fills by EPA because they meet certain size and age requirements. Most of the permitted, lined landfills in North
Carolina will be subject to the New Source Performance Standards requirements. Several are in the process of
installing the requisite controls. All landfills that closed in 1998 have passive vents as part of the closure. The
notation of "Flare" indicates that an active collection system is installed. Facilities owned by private industry are
so identified.
North Carolina is a national pioneer in developing landfill gas utilization projects for small (<1 million tons of
waste) landfills. At the small Yancey/Mitchell County landfill a unique partnership of public, private, nonprofit, eco-
nomic and educational consortiums worked together to implement a unique plan. A second project at Avery County
has secured funding and the gas collection system will be installed in the fall of 2000.
Working with the local junior college and high school, the Yancy/Mitchell County project is raising native orna-
mental plants, such as wild azaleas and rhododendrons for sale to local nursery growers and reforestation
projects. The greenhouses are warmed via hotwater radiators. The water is heated in a low-pressure boiler fired
with the landfill gas. In conjunction with "Hands-Across-America," the region's fine potters and glass blowers are
being provided incubator gallery space, access to landfill gas-fired glass blowing equipment and ceramic kilns.
Unique educational opportunities are available to the region's school children, with emphasis on sustainable
development, recycling and alternative energy supplies.
iv Landfill Gas Projects in North Carolina
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Other forward-thinking counties have formed working groups and are evaluating a diverse and creative universe
of possibilities for using their small landfill gas. Projects under consideration include additional greenhouses,
using the gas to fire a "burnhouse" for training firefighters, and using the gas to power refrigeration equipment
for cold storage of apples and other crops.
North Carolina is committed to finding uses for as much landfill gas as possible. For more information, contact
the State LMOP coordinator (page x).
Table B contains a list of small landfills in North Carolina. EPA considers small landfills to have less than 1 million
tons of waste in place. Landfills that closed after April 1994 have passive vents installed as a condition of closure.
The landfills are located in counties that are predominantly rural and many are considered economically depressed,
underemployed or otherwise candidates for possible economic incentive funding.
Information on North Carolina facilities is available via the internet. The URL is: http://wastenot.enr.state.nc.us/swhome.
This site lists the operational status, location, contact name and other information on North Carolina landfills. The
same site also has a comprehensive database on the amount and type of waste disposed of in the state. The ton-
nages of materials disposed of, by type, and recycled are reported on an annual basis. Data are available from
fiscal year 1992-1993 to the present.
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 LEG project development, and
• Removing barriers to developing LEG projects.
To achieve these goals, EPA establishes alliances with these 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 land-
fills. The alliance members also recognize that the widespread use of landfill gas as an energy resource will
reduce methane and other air emissions, and commit 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.
A Primer on Developing North Carolina's Landfill Gas Utilization Potential
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Table A
Candidate Landfills for LFG Projects in North Carolina
Facility
Alamance
Alamance
Ashe
Avery
E. Carolina Regional (Bertie)
Brunswick
Cabarrus
Caldwell
Caldwell
Cherokee
Cleveland
Cleveland
Columbus
Craven
Crswma-lrlc (Craven)
Crswma-lrlc (Craven)
Fort Bragg (Cumberland)
Durham City
Edgecombe
Piedmont Regional (Forsyth)
Gaston
Highpoint-Kersey Valley (Guilford)
Harnett-Dunnerwin
Harnett-City
Haywood
Johnston
Johnston
Lee
Lenior
Lincoln
Macon
Madison
Mecklenburg
Permit
0101
0104
0501
0601
0803
1007
1302
1401
1403
2002
2301
2301
2401
2503
2504
2509
2602
3201
3301
3406
3606
4104
4302
4303
4407
5101
5102
5301
5403
5503
5703
5803
6001
Lined
No
Yes
Yes
No
Yes
No
No
No
Yes
Yes
No
Yes
No
No
Yes
Yes
No
No
No
Yes
Yes
Yes
No
No
Yes
No
Yes
No
No
Yes
Yes
Yes
No
Status Notes
Closed
Closed 10/93
Republic Industries
Closed 1/98
Closed 1/98
Closed 1/98
Republic Industries
Closed 1/98
Closed 1/98
Closed 10/93
Closed 8/99
Closed 1/98
Closed 1/98 Flare
Closed 1/98
Waste Mngt Inc. Flare
Vents
Closed 1/98
Closed 4/94
Closed 1/98 Vents
Closed 10/93
Closed 1/98
Closed 10/93
VI
Landfill Gas Projects in North Carolina
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Facility
Mecklenberg
Montgomery
Uwharrie Regional (Montgomery)
Nash
New Hanover
Camp Lejeune (Onslow)
Camp Lejeune (Onslow)
Onslow
Orange
Upper Piedmont Env. (Person)
Randolph
Robeson
Robeson
Rockingham
Rowan
Sampson
Sampson
Albemarle-City (Stanly)
Stokes
Surry-Airy
Surry
Transylvania
Wake-South
Watauga
Wayne
Wayne
Wilkes
Wilson
Permit
6019
6201
6204
6401
6504
6703
6708
6709
6801
7304
7601
7803
7803
7901
8003
8201
8202
8401
8501
8602
8606
8807
9203
9502
9601
9606
9704
9801
Lined
Yes
No
Yes
No
Yes
No
Yes
Yes
Yes
Yes
No
No
Yes
Yes
Yes
Yes
Yes
Yes
No
No
Yes
Yes
No
No
No
Yes
Yes
No
Status Notes
Closed 1/98 Flare
Republic Industries
Closed 1/98
Closed 1/98
Republic Industries
Closed 1/98
Closed 1/98
Waste Industries Flare
Waste Industries
Closed 4/94
Closed 1/98
Closed 1/98
Closed 4/94 Flare
Closed 1/98
Closed 1/98
A Primer on Developing North Carolina's Landfill Gas Utilization Potential vii
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Table B
Small Candidate Landfills in North Carolina
Facility
Alexander
Allegheny
Anson
Beaufort
Bertie
Bladen
Burke
Carteret
Caswell
Chatham
Cherokee
Clay
Currituck
Dare
Davie
Duplin
Franklin
Graham
Granville-Oxford
Granville-Butner
Greene
Halifax
Canton City (Haywood)
Hertford
Hoke
Western Carolina Univ.
Jackson
Jones
McDowell
Martin
Moore
Permit
0201
0302
0401
0702
0801
0901
1203
1602
1701
1901
2001
2201
2701
2802
3001
3101
3501
3801
3901
3902
4002
4204
4404
4601
4701
5001
5002
5201
5601
5901
6301
Lined
No
No
No
No
No
No
No
No
No
No
No
No
No
No
No
No
No
No
No
No
No
No
No
No
No
No
No
No
No
No
No
Status
Closed 1/98
Closed 4/94
Closed 4/94
Closed 10/93
Closed 10/93
Closed 4/94
Closed 1/98
Closed 10/93
Closed 4/94
Closed 10/93
Closed 1/98
Closed 4/94
Closed 4/94
Closed 10/93
Closed 4/94
Closed 10/93
Closed 4/94
Closed 4/94
Closed 1/98
Closed 1/98
Closed 1/98
Closed 1/98
Closed 4/94
Closed 4/94
Closed 4/94
Closed 10/93
Closed 1/98
Closed 4/94
Closed 4/94
Closed 4/94
Closed 10/93
viii Landfill Gas Projects in North Carolina
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Facility
Northhampton
Onslow
Pamlico
Pasquotank
Render
Perquimans
Person
Polk
Richmond
Rutherford
Scotland
Surry-Elkin
Swain
Union
Vance
Warren
Washington
Watauga
Yadkin
Permit
6601
6705
6902
7002
7101
7201
7301
7502
7702
8103
8301
8603
8701
9001
9101
9301
9402
9502
9902
Lined
No
No
No
No
No
No
No
No
No
No
No
No
No
No
No
No
No
No
No
Status
Closed 10/93
Closed 1/98
Closed 10/93
Closed 4/94
Closed 4/94
Closed 4/94
Closed 4/94
Closed 4/94
Closed 10/93
Closed 1/98
Closed 1/98
Closed 1/98
Closed 4/94
Closed 1/98
Closed 1/98
Closed 4/94
Closed 4/94
Closed 4/94
Closed 4/94
A Primer on Developing North Carolina's Landfill Gas Utilization Potential ix
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D
Where To Go For More Information
Ed Mussler, RE.
North Carolina Department
of Environment and Natural Resources
Division of Waste Management—Solid Waste Section
401 Oberlin Road
Suite 150
Raleigh, NC 27605-1350
Tel: (919) 733-0692
Fax: (919) 733-4810
Email: Ed.Mussler@ncmail.net
Mail Address:
Division of Waste Management
Solid Waste Section
1646 Mail Service Center
Raleigh, NC 27699-1646
In the Western half of the state, contact:
Al Hetzall, Waste Management Specialist
North Carolina Department
of Environment and Natural Resources
Division of Waste Management—Solid Waste Section
Asheville Regional Office
59 Woodfin Place
Asheville, NC 28801
Tel: (828) 251-6208
Fax: (828)251-6452
Email: AI.Hetzall@ncmail.net
In the Eastern half of the state, contact:
Ben Barnes, Waste Management Specialist
North Carolina Department
of Environment and Natural Resources
Division of Waste Management—Solid Waste Section
Raleigh Regional Office
3800 Barrett Drive
Suite 101
Raleigh, NC 27609
Tel: (919) 571-4700
Fax: (919) 571-4718
Email: Ben.Barnes@ncmail.net
Other contacts
within North Carolina State Government
Division of Air Quality
Rahul P. Thaker, PE,QEP
North Carolina Department
of Environment and Natural Resources
Division of Air Quality
2728 Capital Blvd.
Raleigh, NC 27626
Tel: (919) 715-6238
Fax: (919) 733-5317
Email: rahul.thaker@ncmail.net
and
Booker T. Pullen, EIT
North Carolina Department
of Environment and Natural Resources
Division of Air Quality
2728 Capital Blvd.
Raleigh, NC 27626
Tel: (919) 715-6248
Fax: (919) 733-5317
Email: booker.pullen@ncmail.net
Mail Address:
Division of Air Quality
1641 Mail Service Center
Raleigh, NC 27699-1641
Department of Commerce
John K. Nelms, Jr., Recycling Specialist
Business/Industry Development Division
301 N. Wilmington Street
Raleigh, NC 27626
Tel: (919) 715-5904
Fax: (919) 733-4563
email: jnelms@mail.commerce.state.nc.us
ERA'S LMOP program:
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
Landfill Gas Projects in North Carolina
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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 specific
requirements. 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 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.
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.
A Primer on Developing North Carolina's Landfill Gas Utilization Potential
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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 (NO^), 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 "nonattainment." 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 per-
mit requirements 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.)
1 Landfills with less than 2.5 million Mg are required to file a design capacity report.
2 Landfill Gas Projects in North Carolina
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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 I areas)2
Minor sources (i.e., below 100/250 tons per year) are exempt from this process, but these sources may still be
required to obtain a construction and operating air permit. See 40 CFR 52.21 for more information on PSD.
Nonattainment Air Permitting
A source locating in an area that has been designated nonattainment for one or more of the six criteria pollutants
may be subject to the nonattainment NSR for such pollutants. Ozone is the most pervasive nonattainment pollu-
tant, 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/NOX and PM-10). To obtain a nonattainment NSR
permit for criteria pollutants, a project must meet several requirements:
• 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
2Class I areas are specific under the Clean Air Act and include national parks. Projects situated within a certain distance from Class I areas are sub-
ject to more stringent criteria for emissions levels.
A Primer on Developing North Carolina's Landfill Gas Utilization Potential
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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 appli-
cability 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 , then the source is required to obtain a title V permit.
The 12-month deadline for submitting a timely and complete title V application is triggered by
the criterion in 40 CFR 70.3 or 71.3 which first causes a source to become subject to title V.
Description Title V permits incorporate the requirements of the CAA 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 per-
formance 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.
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1.3 National Pollutant Discharge Elimination System (NPDES) Permit
Importance LFG projects may need to obtain NPDES permits for discharging wastewaterthat 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 facili-
ties or pipelines to transport LFG.
The applicant must obtain a water quality certification from the State in which the discharge will originate.
The certification should then be sent to the U.S. Army Corps of Engineers. The certification indicates that such
discharge will comply with the applicable provisions of Sections 301, 302, 303, 306 and 307 of the Clean Water
Act (CWA).
1.5 Other Federal Permit Programs
The following are brief descriptions of how other federal permits could apply to LFG project development.
• RCRA Subtitle C could apply to 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
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form of on-sife treatment In some cases, fhe condensafe 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 North Carolina for the development
of a LFG project.
For an overview of the primary state-required permits, see Tables 2.1 through 2.3. The criteria and gener-
al checklists for LFG collection and LFG systems are provided in Tables 2.2 and 2.3. Please note that
these checklists are for general guidance only. The summary for Air Quality is geared toward imple-
menting controls of non-methane organic compounds (NMOC) for large landfills (regulated under the
Clean Air Act). Developers of gas projects at smaller landfills should contact the Division of Air Quality for
requirements that may apply to their projects. In all cases, the project developer should contact the per-
mitting agency for further information and requirements.
Summary of Permits
The two principal permits required for LFG projects in North Carolina are related to air quality and solid
waste. These are regulated by the North Carolina Department of Environment and Natural Resources (NCDENR),
Division of Waste Management and Division of Air Quality. Other permits may be necessary and must be
acquired from the Division of Land Quality, which is also a part of NCDENR.
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Table 2.1
Summary Table of State Regulations/Permits
Standard
Permit
Agency/Contact
Landfills
Solid Waste Permit
Division of Waste Management-
Solid Waste Section (see p. x)
Air
Construction & Operating Permit
Division of Air Quality (see p. x)
Table 2.2
Solid Waste Permits Summary and Checklist
E] Active gas collection systems may be required to comply with 15A NCAC 136.1626(4) to control methane
gas releases.
E] Submit a conceptual plan for placement of gas wells, blowers, collection lines, blowers, flares, other con-
trol devices and related infrastructure.
E] The conceptual plans should include: the proposed well design, wellhead design, collection lines, valve
and control types and locations, condensate devices, cap penetration details, construction quality assur-
ance (CQA) protocols and testing, maintenance and repair procedures, closure of the system (including
decommissioning of wells), and any other related engineering details. A professional engineer (PE) must
seal plans and submissions.
E] Following installation, provide as-built drawings and CQA certification, which must be sealed by a PE.
EJ Include other pertinent landfill features that may affect operations at the landfill (or maintenance if the
landfill is closed).
EJ Provide a plan for collection, control and disposal of gas condensate. Condensate may be discharged
into the leachate collection lagoons or storage tanks at lined facilities. Condensate may be included in a
leachate recirculation system ONLY at lined landfills.
EJ Modify the landfill operation plan to include a detailed emergency response plan for landfill fire. The plan
should include provision to train landfill employees in the proper response to a fire with specific steps
taken concerning the gas collection system.
EJ Modify the landfill operations plan to coordinate the presence and operation of the gas system with other
landfill operations.
EJ Describe routine maintenance requirements for the gas collection system.
EJ Modify the closure plan to incorporate the landfill gas collection system.
EJ Revise the closure and post-closure cost estimates and related financial assurance requirements.
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Table 2.3
State Air Program Requirements and Checklist
Q Municipal Solid Waste (MSW) landfills having a design capacity of less than 2.5 million megagrams by
mass or 2.5 million cubic meters by volume must submit an initial design capacity.
LI These same landfills are also required to submit initial and annual NMOC emission reports.
LI MSW landfills, regardless of size or volume, must submit initial design capacity and initial NMOC reports.
Q MSW landfills having a design capacity equal to or greater than 2.5 million Mg and 2.5 million cubic
meters must submit initial design capacity report, initial NMOC report, and subsequent annual NMOC
reports.
LI Annual NMOC emission rate reports that indicate emissions greater than 50 megagrams per year will
require submission of a landfill gas collection and control system (GCCS) design plan certified by a PE.
a Install and operate a GCCS for control of NMOC.
Q Design the GCCS for the maximum expected LFG flow rate and operate the system for at least 15 years.
Collect LFG from each landfill in which initial solid waste has been placed for a period of five years if
active or two or more years if closed.
Q Operate the collection system with negative pressure at each wellhead except for fire or increased well
temperatures, use of a geomembrane or synthetic cover, and a decommissioned well.
Q Operate the collection system so that the methane concentration is less than 500 ppmv above the back-
ground at the surface of the landfill.
Q Develop a surface methane emission monitoring plan.
LI Operate the collection so that all collected LFG is routed to the control system.
LI Operate the control or treatment system at all times when the collected LFG is routed to the system.
Q Install sampling port and thermometer or similar measuring device at each wellhead of the active
collection system.
Q Measure gauge pressure on each gas header on a monthly basis.
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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.
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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. A typical 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. The setback of build-
ings from property lines and drain field, access, size and shape of foundation walls, air
vents and window access are also required, as are heating or cooling plants (where
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 con-
struction 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.
Solid Waste Disposal
A LFG project may generate solid wastes, such as packaging material, cleaning sol-
vents 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.
Wastewater
The primary types of wastewater likely to be generated by a LFG 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 signifi-
cant 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.
Noise
Most local zoning ordinances stipulate the maximum allowable decibel levels from
noise sources. These levels vary depending on the location of the site. For example,
LFG recovery projects located near residential areas will likely have to comply with
stricter noise level standards than projects located in non-populated areas.
10
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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 2003.3 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 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. This period begins 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
Tel: (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
Tel: (202) 586-2206
1.2 Qualifying Facilities Certification
LFG projects that generate electricity will benefit from Qualifying Facilities (QF) certification, which is granted
through the Federal Energy Regulatory Commission (FERC). The following describes the benefits of QF status
and the steps for applying for such status.
The Public Utility Regulatory Policies Act (PURPA)—one of five parts of the National Energy Act of 1978—was
designed to promote 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
1 Final Rule Making, 10 Federal Register Part 451, July 19, 1995, Vol. 60, No. 138.
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QF status. In either case, the applicant must also file Form 565, which is a list of questions about the project, and
must pay any filing fees associated with certifications, exemptions, and other activities. FERC will provide the QF
"Info Packet" that describes the necessary steps, requirements, and background information. After submitting the
initial application, 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
Tel: (202) 208-0577
http://www.ferc.fed.us
1.3 Section 29 Tax Credit
Developers of LFG projects who sell LFG to an unrelated third party may qualify for a tax credit under Section 29
of the Internal Revenue Service (IRS) tax code. In order to take advantage of the 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 had a gas sales agreement in place by December 31, 1996 and are
placed in service (had an operational well field and flare in place) by June 30, 1998. The credit has been extend-
ed several times by the U.S. Congress, but currently it is discontinued.
State Incentive Programs
The State of North Carolina does not currently provide tax incentives for LFG projects. However, as a State Ally in
the Landfill Methane Outreach Program, the Department of Environment and Natural Resources will continue to
evaluate the creation of incentives within North Carolina 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 mar-
kets. Until now, electric utilities operated as monopolies authorized by federal and state regulatory agencies to be
the sole provider of electric service to consumers within a specific service territory. Under restructuring, utilities
will lose these monopolies, which will enable 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 the passage of the Public Utilities Regulatory
Policies Act (PURPA). The Act requires utilities to buy 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 and allowed more types of unregulated compa-
nies 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
to 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 legislation.
12 Landfill Gas Projects in North Carolina
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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. The proposal includes a Renewable Portfolio Standard (RPS) which
guarantees 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
Green marketing programs are one of the most promising mechanisms to encourage utilities and other energy
marketers to participate in LFG projects. Green marketing allows energy marketers to position renewable energy
products (including LFG) as premium products. This means that they can collect a premium price from their cus-
tomers. Green marketing also allows energy marketers in competitive marketplaces to differentiate their energy
product, and allows utilities in non-restructured marketplaces to gain critical product marketing experience.
However, the general public is less familiar with LFG than other sources of renewable energy. Support from the
LMOP is often critical to insure 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 North Carolina, 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.
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