What Will Compliance in the Next Generation Look Like for New Oil and Gas Operations?
For the past few years, the U.S. Environmental Protection Agency (U.S. EPA) has been talking about a “…modern approach to compliance, taking advantage of new tools and approaches…” that they refer to as Next Generation Compliance. Overall, Next Generation Compliance represents a multi-pronged approach intended to improve compliance across the nation. The effort includes five (5) specific components including: Better permit and regulation design, use of advanced emissions/pollutant detection technology, electronic reporting, transparency (i.e., increased public access to information), and development of “innovative enforcement” approaches. These components have resulted or will result in a heavy dose of electronic reporting with increased transparency to the public, increased and advanced monitoring (e.g., imaging of fugitive emissions), third-party verification of compliance, and other mechanisms that U.S. EPA is currently exploring. Next Generation Compliance even has its own website.
So why should you be interested or concerned about this?
Why worry about something that you don’t have to do yet?
Next Generation Compliance is already happening! Other industries and facilities are already complying with rules that have Next Generation Compliance components incorporated [e.g., 40 CFR Part 60, Subparts IIII and JJJJ (Reciprocating Internal Combustion Engines), 40 CFR Part 63, Subpart LLL (Portland Cement)]. The proposed Standards of Performance for Crude Oil and Natural Gas Facilities for New Sources (New Source Performance Standards or NSPS Subpart OOOOa) rule include several of these Next Generation Compliance mechanisms. Mechanisms such as periodic fugitive emissions surveys using optical gas imaging (OGI) from well sites and compressor stations, leak detection and repair (LDAR) for open-ended valves or lines, electronic reporting through the Compliance and Emissions Data Reporting Interface (CEDRI) (which allows the public immediate electronic access to the report after U.S. EPA review), and more.
ALL4 has been busy helping clients in other sectors with monitoring plans, test data reporting and compliance demonstrations via U.S. EPA’s Electronic Reporting Tool (ERT), CEDRI, and Central Data Exchange (CDX). Our experience has shown that electronic reporting can be a complex and time-consuming effort. Don’t take it lightly!
As things happen, ALL4 will keep you updated on the status of the proposed rules, changes, and how they will affect your environmental compliance. In the meantime, if you have any specific questions, please don’t hesitate to reach out to me at scunningham@all4inc.com or JP Kleinle at jkleinle@all4inc.com.
Vacatur of the 50 and 100-hour Nonemergency “Exemption” Provisions…What Does It All Mean? Some Much Needed Clarity
All4 Inc. (ALL4) has blogged about this issue previously (here and here). In short…
On May 1, 2015, the U.S. Court of Appeals for the District of Columbia Circuit issued a decision which vacated (rendered null and void) portions of the National Emission Standards for Hazardous Air Pollutants (NESHAP) for Stationary Reciprocating Internal Combustion Engines (RICE) and the New Source Performance Standards (NSPS) for Stationary Compression Ignition and Spark Ignition Internal Combustion Engines. The paragraphs that were vacated specified circumstances in which emergency engines may operate for a limited number of hours per year in two (2) situations: (1) emergency demand response when the Reliability Coordinator has declared an Energy Emergency Alert Level 2, and (2) when there is a deviation of voltage or frequency of 5% or greater below standard voltage or frequency. U.S. EPA requested and received a stay (suspension) of both court decisions until May 1, 2016.
The pair of decisions left in their wake many unanswered questions. Most notably; “How do I operate my RICE in compliance with the rules considering the vacatur of these two (2) related provisions?” The answer to this and other related questions was, “I don’t know”, at least until now.
Since the stay expires on May 1, 2016, on May 2, 2016 the decisions to vacate the specific portions of the RICE Rules will be in effect. Based upon this guidance, U.S. EPA will henceforth interpret the decisions to mean that an emergency RICE may not operate in the circumstances described in the vacated portions for any number of hours per year unless the emergency RICE is in compliance with the emissions standards and other applicable requirements for a non-emergency RICE.
It behooves facilities with remaining questions about these decisions to take another fresh look at their RICE operations and determine if they’ll remain compliant with the RICE Rules after the vacatur mandate is in effect on May 2, 2016. If you need help with that or have questions, contact Ron Harding at rharding@all4inc.com or (610) 933-5246, extension 119.
Recap of the Georgia A&WMA Spring 2016 Regulatory Update Conference
If you were not able to attend the Air & Waste Management Association (A&WMA) Georgia Chapter Spring Regulatory Update Conference on March 29, 2016, you are in luck because ALL4 was there! The conference consisted of U.S. Environmental Protection Agency (U.S. EPA) and Georgia Environmental Protection Division (GEPD) staff presenting the latest news on a variety of air quality and waste management regulatory topics. A summary of the key air quality portions of the conference is provided below.
- Promulgation of the electronic reporting rule for New Source Performance Standards (NSPS) is expected in September 2016.
- U.S. EPA’s air quality enforcement initiatives:
- The air toxics enforcement initiative will focus on excess emissions from refineries, chemical plants, and terminals.
- The New Source Review (NSR) enforcement initiative will focus on coal-fired utilities, cement, glass, and acid manufacturing industries.
- Georgia is not expected to have an approved state plan in place that implements emissions guidelines for sewage sludge incinerators.
- GEPD will be discontinuing its free smoke school in 2017.
- GEPD is evaluating alternative funding approaches based on an expected revenue shortfall related to its emissions fees program, largely because of the retirement of coal-fired utilities and natural gas conversion projects.
- National Ambient Air Quality Standards (NAAQS):
- The entire state of Georgia is designated as attainment for the 1997 annual PM2.5 NAAQS. Attainment was achieved in February 2016.
- The Metro Atlanta area is expected to be designated as attainment for the 2012 annual PM2.5 NAAQS in spring 2016, which means the entire state would be in attainment.
- For the 2008 ozone NAAQS, a maintenance plan is under development for the Atlanta metro area, and a redesignation to attainment is expected in 2016, which means the entire state would be in attainment.
- For the 2015 ozone NAAQS, the Atlanta metro area is expected to be a marginal nonattainment area. No additional emissions controls are anticipated to be required.
- GEPD plans to release its statewide Prevention of Significant Deterioration (PSD) emissions inventory to the public in mid-2016.
- GEPD’s current approach (subject to change) to address the Startup, Shutdown, and Malfunction (SSM) SIP Call (November 22, 2016 SIP submittal deadline to U.S. EPA):
- GEPD proposes to create alternative work practice standards for periods of startup and shutdown that would subsume numerical limits.
- Affected facilities would either comply with the emissions limits at all times OR they would have the following compliance options:
- Implement GEPD-developed general standards for air pollution control devices
- Follow a work practice standard contained in an applicable NSPS or National Emission Standards for Hazardous Air Pollutants (NESHAP)
- Case-by-case basis enforceable work practice standards for startups and shutdowns (e.g., as part of PSD permit or Title V permit)
- GEPD provided some preliminary information on some other U.S. EPA Region 4 states with varying approaches.
The only thing constant about air quality regulations is change, and attending these types of conferences is one (1) way for ALL4 to stay ahead of the curve. If you have questions about the topics discussed during the conference or would like to learn more details regarding the discussions, please contact reach out to us.
I’ll Have the Green Eggs and Ham…with a Side of Growth
I bet you were either the kid that would try any type of food OR the one that would pass…on everything, unless of course you didn’t have a choice. In which case, and with a pursed lip and a furrowed brow; having already determined that said food would be awful – you tried a miniscule bite, choked, gagged and declared, “See, I told you I wouldn’t like it.” I was the latter kid. This process, and my reaction, reminds me, to this day, of Daniel’s reaction to Sam-I-am asking the magical question: “Do you like green eggs and ham?” from Dr. Seuss’ masterpiece “Green Eggs and Ham”.
“I do not like green eggs and ham! I do not like them Sam-I-am”
Fast forward 10, 20…maybe even 40 years for some of you folks, and ask yourself “am I still that same kid?” Change is the adult version of green eggs and ham and we all know…sometimes we have a choice and sometimes we don’t. Think about your workplace. Who are the Sam-I-ams? Who are the Daniels? Most importantly…who are you? Unfortunately for many of us Daniels, the rules of the game have changed dramatically. When the boss tells you to try that new accounting software or has added a new process that you have to start yesterday, it is no longer acceptable to choke or gag. That doesn’t play out too well when it’s in front of your boss (trust me).
“Would you? Could You? In a car? Eat them! Eat them! Here they are.”
So here’s how it works when Daniel and Sam-I-am have grown up… Green eggs and ham (aka change) is presented. The Sam-I-am’s of the group say – “Hey it’s not so bad, try that new system, you’ll like it here and you’ll like it there!” Some will listen… and join in, “Would you? Could you? In a car? Eat them! Eat them! Here they are!” Their enthusiasm creates momentum, and their attitude positively impacts the organization – by simply embracing the unknown of change. There are also those Daniels of the group who are going to tell you the opposite, “I would not, could not, in a car!” There’s a problem though. When we were kids, if you didn’t like that split pea soup (still makes me gag), it’s no big deal, and it has no impact on anyone else. But now, those resisting change impact others – and not in an awesome, productive way!
So what’s the real difference between Daniel and Sam-I-am? They both still have to try the same green eggs in the work world. Why is Sam-I-am so positive while Daniel is flapping around? I suspect we both know the answer… It’s between their ears.
That’s right, between your ears. It’s your thinking. Change your thinking and you’ll change your results.
“Sam! If you will let me be, I will try them. You will See.”
What if this is how you choose to think about change? Change = growth. Any time there is a change, you’re trying something new/different/totally uncomfortable…inevitably, you will grow. When you stretch yourself, you’re going to gain mental strength, courage, and confidence… which means GROWTH; both personally and professionally.
What’s possible if you always thought of change in this way? Change = growth. Would your results be different? I bet they would. And for those folks that appreciate the scare tactic, think of it this way: if you’re not growing, you’re dying…morbid but true.
“I do so like green eggs and ham! Thank you! Thank you, Sam-I-am”
More good news. I know, I know…you’re asking yourself, “How can this get any better??” In every situation where change is present, you have a choice. Your choice is how you are going to react – how you’re going to be about the change.
So I’m challenging all of you Daniels out there. Next time you’re gathered together griping over the next batch of green eggs and ham… Act like Daniel after listening to Sam-I-am “If you let me be, I will try them. You will see.” (mantra: change = growth). Your choice to embrace change could lead you on an interesting journey of growth – “I do so like green eggs and ham! Thank you! Thank you, Sam-I-am!”
Attention Existing Oil & Gas Sources – Information Collection Request and Emissions Regulations are Looming
On March 10, 2016, the U.S. Environmental Protection Agency (EPA) announced that they are moving to regulate existing oil and natural gas sources as their next step in reducing emissions from the oil and gas industry. This announcement comes only a few months after the U.S. EPA’s August 2015 proposed standards for new and modified sources in the oil and gas industry. The combination of these two (2) regulatory actions impact the trifecta of oil and gas sources: new, modified, and existing.
Those who were not previously engaged in the August 2015 proposed standards for new and modified sources [e.g., your company’s drilling and/or construction activities slowed or even stopped] should expect to assume a more hands-on approach this time. U.S. EPA stated they will utilize a formal process [i.e., Information Collection Request (ICR)] to require companies operating existing oil and gas sources to provide information to assist in the development of comprehensive regulations.
U.S. EPA’s preliminary outreach to states, industry, and environmental groups has begun. The formal ICR process is expected to begin this month. U.S. EPA published a fact sheet that provides additional insight on the ICR process and provides a recap of recent actions taken to further address methane emissions from the oil and gas industry. I’ve listed below a few key steps in the ICR process that interested parties should know.
Five (5) items you should know about the ICR:
- A draft ICR will be made available for public comment.
- The approved ICR will be issued to industry.
- Industry is required to respond and attest that the information it provides is accurate.
- ICR can include surveys and emissions monitoring.
- U.S. EPA’s goal is to receive the first phase of information from industry during 2016.
As always, ALL4 will be following this topic closely as well as other oil and gas regulatory happenings. Give me a call to discuss this blog or check in for updates. My contact information is (610) 933-5246, extension 120 or jkleinle@all4inc.com.
