EPA’s Clean Air Act Advisory Committee (“CAAAC”) met on October 5, 2010 and October 6, 2010 to discuss the CAAAC Climate Change Work Group’s newest report on the implementation of Best Available Control Technology (“BACT”) for greenhouse gas (“GHG”) permitting.  While the report was issued on August 5, 2010, the report was not formally considered by CAAAC until this week.  CAAAC formally accepted the report and transmitted it to EPA.

EPA’s Assistant Administrator Gina McCarthy commissioned the report in April after CAAAC released its first report in February supporting the use of the traditional BACT process for GHGs.  The report addresses two issues:  (1) how the BACT process could be used to encourage the development of energy efficient processes and technologies and (2) how an existing BACT waiver for “innovative control technology” could be used to promote and develop lower-emitting processes and practices for GHGs. 

At the same time, EPA’s GHG BACT guidance remains under consideration at the Office of Management and Budget.  Formal issuance of the guidance is expected in the near future.