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.
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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.
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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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