De Devel elopment opment of of Di District strict Rul ule e - - PowerPoint PPT Presentation

De Devel elopment

• pment of
• f Di

District strict Rul ule e 4460 460 (Petr troleum

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munity Ai Air Moni r Monitoring

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November 5, 2019 webcast@valleyair.org

Wh Why ar y are e we h e her ere? e?

• Safety incidents at large refineries in

Bay Area and South Coast raised concerns about safety practices, public health, and emergency preparedness

• As a result, state legislation developed

to require additional safety precautions at petroleum refineries – “California Refinery Jobs and Safety Action Plan” (includes AB 1647, Muratsuchi)

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Assembly ssembly Bil ill l (AB) B) 1647

• AB 1647 (signed by governor 10/8/17) requires that by January 1, 2020:

– Petroleum refineries develop, install, operate and maintain a fenceline air monitoring system at and near refineries in accordance to guidance developed by CARB and local air district – Air districts design, develop, install, operate and maintain a refinery-related community air monitoring system – Real-time data be made accessible to the public – AB 1647 requires that petroleum refineries implement fenceline air monitoring according to guidance developed by District – District guidance shall take into account technological capabilities and incorporate input from affected parties, and be informed by refinery-related guidance developed by CARB (will need to consider unique characteristics of Valley refineries) – Per AB 1647, the owner or operator of a petroleum refinery shall be responsible for the costs of implementing AB 1647 requirements

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Pu Public ic Pr Proc

• cess

ess to D

• Dat

ate

• New District Rule 4460 (Petroleum Refinery Fenceline and Community

Air Monitoring) and Rule 3200 (Petroleum Refinery Community Air Monitoring Fees) being developed through a public process to address AB 1647 requirements

• District has held focus group meetings with Valley refineries

throughout 2019 to understand potential air monitoring options and associated costs

• District has researched air monitoring costs in other regions, and has

met with air monitoring technology vendors to understand equipment capabilities and estimate Valley-specific costs

• District held scoping meeting on October 3, 2019, to discuss initial

concepts and seek stakeholder input

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Cal alif iforn

• rnia

ia Petr trol

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eum Ref efin iner erie ies b s by Air y Air Ba Basi sin

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50,000 100,000 150,000 200,000 250,000 300,000 350,000 400,000 SCAQMD BAAQMD SLOAPCD SJVAPCD

Throughput (barrels per day)

California Petroleum Refinery Production Throughputs (U.S. Energy Information Administration, Refinery Capacity Report, 2018)

Smallest Refinery Largest Refinery

Al Alon

• n USA
• Currently non-operating

independent oil refining company located in Bakersfield, CA

• Permitted capacity of 60,000

barrels of oil per day

• When operating, key areas of

production include ultra-low sulfur diesel, gasoline, jet fuel, and asphalt products

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Ker ern Oi n Oil & R & Ref efin inin ing Co.

• .
• Independent oil refining company

located in Bakersfield, CA

• Produces up to 27,000 barrels of
• il per day
• Gasoline and diesel production

(key supplier for Southern San Joaquin Valley)

• Co-processes and blends various

biofuels with fossil fuel production process

• Currently employs 155 employees

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San an Jo Joaq aqui uin n Ref efin inin ing Co.

• .
• Independent oil refining company located

in Bakersfield, CA

• One of smallest refineries in state,

produces up to 15,000 barrels of various petroleum-based products per day

• Distribution network ships products for a

variety of industries through the Port of Los Angeles

• Majority of product used in asphalt

production

• Also serves industries with applications for

diesel fuel, drilling fluids, fuel additives, hydraulic fluids, lubricants, tires, etc.

• Currently employs 130 employees

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Ai Air Qu Qual alit ity y Reg egulat ulation ions s – Petr trol

• leu

eum m Ref efin iner erie ies

• Valley petroleum refineries currently subject to multiple District rules,

shown to be most stringent rules feasible for implementation

• Refineries subject to variety of performance standards under local,

state, and federal regulations to reduce emissions of air pollutants

– Refineries required to continuously monitor for leaks – Ongoing reporting required – Regular District inspections to ensure compliance

• Various federal New Source Performance Standards apply to new and

modified equipment at refineries

– Subparts J and Ja Standards of Performance for Petroleum Refineries – Subparts K, Ka, Kb Volatile Organic Liquid Storage Vessels – Subpart XX Bulk Gasoline Terminals – Subpart GGG and GGGa Equipment Leaks of VOC at Petroleum refineries – Subpart QQQ VOC Emissions from Refinery Wastewater Systems

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Ai Air Qu Qual alit ity y Reg egulat ulation ions s – Petr trol

• leu

eum m Ref efin iner erie ies s (cont’d)

• Valley petroleum refineries subject to stringent District regulations, including:

– Rule 2201 – New and Modified Stationary Source Review Rule – Rule 4101 – Visible Emissions – Rule 4012 – Nuisance – Rule 4311 – Flares – Rules 4305 - 4307, 4320, 4351 – Boilers, Steam Generators, and Process Heaters – Rule 4453 –Refinery Vacuum Producing Devices or Systems – Rule 4454 – Refinery Process Unit Turnaround – Rule 4455 – Components at Refineries, Gas Liquids Processing Facilities, and Chemical Plants – Rule 4623 – Storage of Organic Liquids – Rule 4624 – Transfer of Organic Liquid – Rule 4651 – Soil Decontamination Operations – Rules 4701 and 4702 – Internal Combustion Engines – Rule 4703 – Stationary Gas Turbines

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Val alle ley y Petr trol

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eum Ref efin iner ery y Em Emis issi sion

• ns T

s Tren ends ds

• Refinery criteria and

toxics emissions reduced through enhanced control measures, including vapor recovery, lower- emitting combustion, and other process upgrades

• Valley refinery toxics

emissions reduced under AB 2588 “Air Toxics Hot Spots” program

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100 200 300 400 500 600 700

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

SJV Petroleum Refinery Emissions (tons per year)

ROG NOx SOx PM

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ng Eq Equi uipme ment: nt: Op Open P en Pat ath-FT FTIR IR Tec echnology nology

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Image courtesy of CEREX, 2019

• Used for fenceline monitoring

at large industrial facilities

• Significant up-front cost, up to

$2,000,000 per open path system (continuous monitoring along refinery boundary), plus

• ngoing maintenance and data

processing costs

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Image courtesy of airpointer, 2019

• Can be used upwind/downwind of

refinery for fenceline monitoring and community monitoring

• Up-front cost up to $700,000 per

unit, plus ongoing maintenance and data processing costs

• Capable of monitoring wide range
• f pollutants

AB 1647 I 7 Implement plementation tion in in Other ther Di Distri strict cts

• Bay Area AQMD Rule 12 Regulation 15 adopted April 20, 2016

– Applies to 5 active refineries (range in size from 88,000 bpd – 240,000 bpd) – Requires open path and point monitors for fenceline air monitoring plans

• South Coast AQMD Rule 1180 adopted December 1, 2017

– Applies to 8 active refineries (range in size from 54,000 bpd – 363,000 bpd) – Requires open path and point monitors for fenceline air monitoring plans – Exempts refineries that produce 40,000 barrels per day of crude oil or less

• San Luis Obispo County APCD evaluating implementation of AB 1647

– One refinery in air basin (throughput of 44,500 bpd)

• Santa Barbara County APCD evaluating implementation of AB 1647

– One small asphalt production facility in air basin (throughput of 10,000 bpd)

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Pr Propos posed ed Rule ule 446 460 R 0 Req equirement uirements

• District is not proposing to incorporate South Coast AQMD

40,000 barrels per day of crude oil exemption for small refineries

• District is proposing to include specific requirements for Valley

refineries for the following categories:

–Refineries with permitted production capacity greater than or equal to 40,000 barrels/day of crude oil –Refineries with permitted production capacity less than 40,000 barrels/day of crude oil

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Ref efiner ineries ies with th Per ermitt mitted d Pr Producti duction

• n Capac

pacity ity Gr Great eater er tha han n or r eq equal ual to 40,000 ,000 ba barr rrels/da els/day y of f Crude rude Oil

• Require fenceline monitoring consistent with South Coast

AQMD Rule 1180

–Open path monitoring around facility

• Require community monitoring consistent with South Coast

AQMD Rule 1180

–Community air monitoring fee to support stationary air monitoring site with criteria and toxics monitoring (GC-MS)

• Alon USA expected to fall in this category, if resuming refining
• perations

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Ref efin iner erie ies wit s with Per ermi mitt tted ed Pr Prod

• ducti

uction

• n Cap

apacity acity Le Less ss th than an 40,000 40,000 bar arrels els/da /day y of

• f Crude

ude Oi Oil

• Require fenceline monitoring

–Open path or point source monitoring at facility

• Require community monitoring

–Community air monitoring fee to support stationary air monitoring site with criteria and targeted toxics monitoring (NOx, PM2.5, VOCs, SO2, H2S, Benzene, Toluene, Ethylbenzene, Xylenes)

• Kern Oil, San Joaquin refineries expected to fall in this

category

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Fen ence celine line Air ir Mo Monit nitoring

• ring Pl

Plan an Pr Process cess

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• Affected refineries to submit fenceline air monitoring plan to

District for review and approval (consistent with South Coast Rule 1180)

• District to provide guidance to assist in plan submittal process
• Required fenceline air monitoring plan elements include:

–Pollutants to be measured based on facility emissions (start with OEHHA refinery pollutant list) –Equipment to be used to conduct air monitoring –Location of air monitoring system on property –How facility will ensure the quality and validity of the collected data –Real-time public display of monitoring data

Fen ence celine line Air ir Mo Monit nitor

• ring

ing Pl Plan an Compliance pliance Sch chedule edule

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• Fenceline monitoring plans submitted to District by July 1, 2020
• Plan available for public review/input 30 days prior to approval
• Must install and begin operating monitoring within 1 year of District

approval

• For affected facilities currently not refining:

– Must submit notification to District within 30 days of adoption of rule to establish non-refining status – Must submit proposed fenceline monitoring plan at least six (6) months prior to planned resumption of refining operations – Must have approved fenceline monitoring plan and install system prior to resumption of refining operations

Rul ule e 32 3200 00 – Petr trol

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• mmuni

munity ty Ai Air Mon

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ng Fee ees

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• As required by AB 1647, refineries to pay fee to cover capital cost of

community monitoring by July 1, 2020

• As required by AB 1647, refineries to pay fee to cover ongoing operation and

maintenance costs annually starting in 2021

• Estimated fees – District continuing to evaluate through public process:

Refine inery y Categor egory Initi tial l Capital al Cost t Fee ee An Annual Operat ating ing and Mainten enanc nce Fee ee Refineries with permitted production capacity greater than or equal to 40,000 barrels/day of crude oil ~$700,000 ~$150,000 Refineries with permitted production capacity less than 40,000 barrels/day of crude oil ~$250,000 ~$75,000

Ne Next xt Step eps: s: Pub ublic ic En Enga gagement gement Process

• cess for
• r

Ref efiner inery y Fen enceline celine and nd Comm mmuni unity ty Air r Monit nitoring

• ring Rul

ule e De Developm elopment ent

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Governing Board Public Hearing 12/19 Public comment period 11/19 – 12/3 Publication

• f proposed

rule package to the District web 11/19 Workshop Public Comments Due 11/13 Public Workshop #2 11/5

Public Participation and Comment Invited throughout Process

Contac ntact

Cont

• ntact

act: Ariana Hooks Ma Mail: l: San Joaquin Valley APCD 1990 E. Gettysburg Ave Fresno, CA 93726 Ph Phone:

• ne:

(559) 230-5800 Fax ax: (559) 230-6064 Em Emai ail: l: ariana.hooks@valleyair.org Listser tserv: v:

http://lists.valleyair.org/mailman/listinfo/petroleum_refineries

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Questions uestions/Comme /Comments nts

webcast@valleyair.org

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