Air Pollution Update

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Air Pollution Update

• Colorado Petroleum Association Annual Meeting

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Topics of Interest

• Vision for the Future
• Flash Emissions
• Self Audit Law
• Alternative Operating Scenario
• MACT
• Tribal
• Other Issues
• Supplemental Environmental Project Policy
• Compass

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Vision for the Future

• Integrate sustainability, stewardship, and
  resource conservation goals to become more of a
  resource management entity vs. regulatory
  response agency
• Create value for these activities
• Leverage resources, partnerships, collaboration
• Performance incentives for beyond-compliance
  behavior

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Vision for the Future

• Cataloging the successes and innovations
  currently being done throughout department
  proposing implementation strategies to make them
  systematic and ongoing
• Every important decision joins together the
  dynamics of past, present and future in the life
  of an individual or organization.
• R. Brian Stanfield, The Courage to Lead

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Vision for the Future

• Developing proposals that identify and strategize
  solutions for the big remaining environmental
  issues, substantive and process changes
• Progress lies not in enhancing what is, but in
  advancing toward what will be.
• Kahlil Gibran

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Flash Emissions

• Identified as source of emissions some companies
  have controlled, others have not
• Regulatory issues MACT, APENs, construction
  permits, operating permits, PSD
• Met with industry associations
• Cooperate in providing information
• Division review data and determine path forward

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Self Audit Program

• Initial Self Audit Law
• May 2000 MOU EPA and CDPHE
• Consultative process
• Timely notification and information exchange

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Self Audit Program

• July 2001 Implementation Protocol
• Provide copies of disclosures
• Confidential status preserved
• Provide any relevant enforcement information
  within 21 days
• If disclose to State for non-delegated program
  notify company no jurisdiction
• Dual disclosures / dual jurisdiction closely
  consult state opportunity take lead

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Self Audit Law

• Air has received about 8 applications most are
  minor violations (failure submit APEN, obtain
  construction permit)
• Questions
• Voluntary self-evaluation / audit
• Due diligence in addressing problem
• History of violations constitute pattern of
  continuous or repeated violations

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Alternative Operating Scenario

• Replace existing engine or turbine with engine or
  turbine, can do so without obtaining a new permit
  if have AOS in permit
• Like-kind or specific type is listed in permit
• Turbines
• List of equipment not considered replacement
• New turbine subject to NSPS
• Separate permit if existing unit is grandfathered
• Portable monitoring 14 days
• Permanent engines stack test 45 days if fail
  monitoring

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Alternative Operating Scenario

• Prevention of Significant Deterioration
• AOS does not protect from PSD requirements
• If PSD source, permit all engines/turbines below
  thresholds (15, 40, 100 tpy)
• Non-PSD sources can do temporary or permanent
  replacement without such limits

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MACT

• Need synthetic minor before June, 2002
• Construction permit 90-120 d. processing 30 d.
  public comment
• Title V
• One-stop shopping
• 18 months processing (can do in 2-3 months)
• 30 d. public comment, 45 d. EPA review
• About 40-50 oil and gas operations in Title V

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Tribal

• Division still writing true minor permits
• EPA writing Title V permits and inspecting
• EPA not recognize State synthetic minor permits
  issue for PSD and Title V applicability
• State met with tribe last week to establish
  Tribal Commission
• Need federal legislation by December 31, 2001, or
  agreement no longer in effect

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Other Issues

• Fee increase effective July 1, 2001
• 119.96 APEN
• 59.98 per hour permit processing
• 17.97 per ton criteria
• 119.96 per ton HAP
• September 12, 2001 EPA letter to API

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Colorados SEP Policy

• Multi-media benefits
• Emphasizes P2, E2, alternative energy
• Community-based and education
• Environmental management systems (EMS)
• Lower multiplier for certain projects
• Traditional emissions reduction projects
• Must quantify environmental benefits and submit
  SEP Completion Report

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Compass

• Commitment between EPA and State develop more
  meaningful measures of agency performance
• Traditionally measure whats easy - of
  inspections, permits, enforcement actions,
  penalties, etc.
• We become convinced that what we measure is
  important and reflects our environmental goals
• Value what is measured thats where the
  greatest resources are allocated

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Compass

• Partnerships, compliance assistance, P2,
  incentives do achieve environmental goals but
  we need to measure them
• May result in a reallocation of resources
• Possible changes in regulatory structure
• Partnership with CAPA integrates non-regulatory
  leadership principles
• Learn what motivates compliance, beyond
  compliance, continual environmental improvements
• Obtain information on whether more intensive, up
  front efforts superior environmental outcomes

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Compass

• Partnership that integrates non-regulatory
  leadership principles
• General permit development, compliance assistance
  tools
• Work with participating companies to develop
  benchmark environmental performance
• Site assessments
• Environmental Management System (EMS) template
  for industry

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