Cleaner Air Oregon. What You Need to Know

Transcription

1 Cleaner Air Oregon What You Need to Know August 1, 2018

2 OPENING REMARKS Abbie Laugtug (OBI) 2

3 CAO GOAL The long-term goal of Cleaner Air Oregon is to achieve a 50% reduction in the number of existing facilities posing either an excess cancer risk of more than 25 in 1 million or a Hazard Index of 1 by the year OAR (2) 3

4 CLEANER AIR OREGON OVERVIEW Will ultimately consist of two programs: Source-specific program Currently out for public comment Area source program To be developed in 2019 not really covering today Key aspects of source specific program Applicable only to stationary industrial sources Broad array of air toxics considered Cumulative risk assessment Toxics not considered in isolation 4

5 EXISTING SOURCE PROGRAM Applies to new, reconstructed and existing sources Call-in relatively subjective Requires site-wide cumulative risk assessments Existing Sources: Step 1: Prepare toxics emissions inventory Step 2: Perform cumulative risk assessment Four tiers allowed from a simple screening to a (sort of) site-specific risk assessment Step 3: Compare cumulative risk to Risk Action Levels (RAL) 5

6 RISK ACTION LEVELS 6

7 EXISTING SOURCE PROGRAM Outcomes based on cumulative risk: >0.5/0.5 apply for a Permit Addendum >25/1, public meeting >50/5, Risk Reduction Plan TBACT assessment If TBACT must be installed, then deadline is:» 2 years + up to 2 year extension for chronic risk» 1 month for acute risk Up to 5 month extension dependent on risk presented If all TEUs have TBACT» Permit Addendum issued with Source Risk Limit to maintain risk 200/10 HI (5) subject to further rulemaking 7

8 EXISTING SOURCE PROGRAM Outcomes based on cumulative risk: >200/10, Risk Reduction Plan + Source Risk Limits to reduce risk below these levels 2 years + up to 3 year extension for chronic Apparently 1 month with up to 5 month extension for acute still applies >500/20, Immediate Curtailment Level No Permit Addendum will be issued 8

9 CONSTRUCTION APPROVAL Starts when you apply for a Permit Addendum Prior to this, no toxics construction approval requirements Varies with whether new or modified TEU is: Exempt (10 day notice) De minimis (Permit Addendum unless no revisions required) Significant Revised application if Permit Addendum not issued Revised Permit Addendum if issued Requirement waived if no new conditions required and risk remains at or below permitted level 9

10 COMMUNITY ENGAGEMENT Much improved from prior Focuses on impacted community DEQ runs meetings Source pays for them Source must attend 10

11 AMBIENT MONITORING Much improved from prior Source has option to perform ambient monitoring Must first conduct a Level 3 or Level 4 risk assessment If risk 200/20, then get Permit Addendum addressing monitoring only After completion of monitoring, results incorporated into risk assessment and full Permit Addendum applied for 11

12 AREA MULTI-SOURCE PROGRAM Constraints imposed by SB 1541 One area chosen based on impacts from all sources Can only apply in Washington or Multnomah County Cannot be larger than 2.5 miles in diameter Two criteria for stationary source to be affected: Cumulative impacts from stationary sources alone must be double the RAL A particular source must significantly contribute to that exceedance 12

13 CHRONOLOGY OF CAO DEVELOPMENT February 2016: Bullseye April 2016: Pete Shepherd sends letter to Governor promising surprise inspections for 100+ facilities in 6 weeks April 2016: CAO rulemaking starts May 19, 2016: Bullseye Cease & Desist Order July 2016: Technical RAC meets October 2016: Regulatory RAC starts meetings Nov 2016: Toxics Inventory demand letter 13

14 CHRONOLOGY OF CAO DEVELOPMENT March 2017: DEQ proposes existing source Allowable Risk Levels and Public Notification Thresholds of 10/1 Summer 2017: DEQ shifts to Risk Action Levels of 25/ Legislative Session: SB 1541 shifts Risk Action Level to 50/5 with DEQ ability to drop some HIs to 3 Current rule proposal intended to implement SB

15 LEGISLATIVE PANEL Heath Curtiss (OFIC) Kathryn VanNatta (NWPPA) Mike Freese (Romain Group) 15

16 CONSULTANT PANEL Sarah Kronholm (SLR) Chad Darby (Maul Foster) Don Caniparoli (Jacobs/CH2M) 16

17 Question 1: What is the status of DEQ and the toxics emissions inventories? 17

18 Question 2: What are de minimis and exempt units and how can I use those classifications? 18

19 Question 3: How do I go about doing a TBACT analysis? 19

20 Question 4: How do NOCs work under proposed program? When do new requirements apply? 20

21 Question 5: What issues and pitfalls should I anticipate if I am required to perform modeling? 21

22 Question 6: Given the community engagement process, what sort of tools should people bring to the table? 22

23 Final Question: What is the air speed velocity of an unladen swallow? 23

24 CLEANER AIR OREGON FEES Kathryn VanNatta (NWPPA) 24

25 CAO FEE BACKGROUND 2018 Ramp Up Fees put in statute by SB 1541 See Sections One-time fees billed fall 2018 Increases to current TV and ACDP permit holders Title V will have yearly CPI increase added on and on increase 1.99% Red font = no comment by 8/ Implementation Yearly CAO base fee invoices fall 2019 Transition to CAO activity fees as facilities as call-in starts CAO fees based generally on size and complexity of activity General Fund support continues in DEQ base budget from 2016 Green font = comment by 8/6

26 CAO 2018 PROGRAM FEES Add ramp-up, one-time fees to current air permit fees (SB 1541) $383 General ACDP $568 Simple ACDP $2,271 Standard ACDP $2,013 + $15.22/ton -- Title V AOP 26

27 CAO 2019 PROPOSED YEARLY PROGRAM FEES All permitted/registered air sources pay ongoing yearly CAO fees that have an up to 3% yearly increase factor based on need from SB $151 Basic ACDP $50 to $806 General ACDP by class $806 or $1,612 Simple ACDP by class $3,225 Standard ACDP $2,859 + $21.61/ton -- Title V ($2,916 + $22.04/ton with est. 1.99% CPI but timing is unclear on whether DEQ may increase fee in year 2019 invoice) 27

28 TITLE V AOP BUDGETING ESTIMATES TV Fees % CPI 2018 CPI adopted 7/18 CAO Fee Up to 7,000 tons TOTAL TV Fee Invoiced in fall Base Fee $ 8,169 $2,013 $10,182 Emission / ton $ $15.22 $ DEQ est. from rule of +1.99% Assumption of % CPI Estimated budgeting scenario 2 increases Base Fee $ 8,331* $2,916 $11,347 Emission / ton $ 62.98* $22.04 $

29 CAO PROPOSED ACTIVITY FEES Can increase up to 3% yearly based on need unless more $ in DEQ budget DEQ Activity Fees begin with program call-in and stop??? 25 classes of activity fees across 4 permit types (complexity & size?) Activity Fees are additive Budgeting will be difficult if you don't know about call-in timing Facilities face other additional costs: Staff time Consultants for modeling/risk assessment/monitoring/ source testing and/or control technology analysis Legal fees Community engagement/outreach and/or public relations consultants 29

30 CAO ACTIVITY FEE EXAMPLES Basic/Simple ACDP Low Cost $1,000 Call-in $500 EI doc modification??? $1,000 Level 1 RA no permit $2,500 is the lowest likely fee scenario $1,550 if Basic ACDP permit but unlikely in Year 1 Complex TV Expensive $10,000 Call-in $2,500 EI doc modification??? $6,000 Source test review 34,600 Level 4 RA with permit $6,700 Risk reduction plan 12,000 TBACT on 3 TEUs $25,900 Monitoring plan review $8,000 Comm. engagement $105,700 total 30

31 FEE OBSERVATIONS AND LESSONS LEARNED Up to 3% increases: Title V based on CPI; CAO fees based on need Agency CAO continuing service budget includes General Fund Ramp-up, one-time 2018 fees are less than 2019 on-going fees DEQ listened to RAC on activity fee amounts Fees changed with CAO rule drafts Community meetings from $10,800 per event to $8,000, $4,000 or $1,000 Source testing fees moved from $5,900 to $6,000, $4,200 or $1,400 DEQ predicts current fee levels (w/increases) will sustain CAO 5 years (2023) 31

32 WHAT IS NEXT? 32

33 ANTICIPATED SCHEDULE End of comment period: August 6; 4:00 pm Environmental Quality Commission: November in Portland Implementation: HI rulemaking which is expected next spring May proceed with CAO in advance of HI rulemaking Individual source CAO will proceed independently of Area Multi-Source Program 33

34 STAY TUNED! 34