Workshop A Best Practices in Air Permitting & Compliance Amid - - PDF document

Workshop A

Best Practices in Air Permitting & Compliance Amid ‘Regulatory Chaos’ … Key Strategies for Expedited Permitting, Corporate Audits and Intensive EPA Scrutiny

Wednesday, July 25, 2018 1 p.m. to 2:30 p.m.

Biographical Information

Todd Scarborough, Senior HES Professional, Marathon Pipe Line LLC 539 S. Main St., Findlay, OH 45840 419.429.9511 tscarborough@marathonpetroleum.com

• Mr. Scarborough has 27 years of experience in the air pollution regulatory field. He is now using

his knowledge and experience to lead all air permitting and compliance efforts at Marathon Pipe Line LLC in Findlay Ohio. Marathon Petroleum Corporation has credited Mr. Scarborough with “moving Marathon Pipe Line’s air permitting and compliance program forward by light years.” Marathon Pipe Line has passed all full compliance evaluations with no violations since Mr. Scarborough’s arrival. Previously, Mt Scarborough worked as an Environmental Specialist 3 (Senior Environmental Specialist) with Ohio EPA’s Central District Office. His routine district office responsibilities included extensive interaction with various internal and external stakeholders while completing the review of air permit applications, drafting of air permits, performance of compliance inspections, witnessing of emissions testing and initiation and resolution of enforcement actions. While at Ohio EPA, Mr. Scarborough lead and completed complex permitting assignments, significant civil litigation, and criminal enforcement action. In addition,

• Mr. Scarborough was actively engaged and held leadership positions in Ohio EPA’s efforts to

improve overall quality and efficiency of its processes and work environment. These efforts include DAPC’s Permitting and Enforcement Steering Committee, DEAL Review Committee and multiple Permitting Processing Efficiency Committee projects.

• Mr. Scarborough is a graduate of The Ohio State University (B.A. Physics)

Adam Ward, Vice President Environmental Affairs, Sustainability and Energy Policy American Municipal Power, Inc., 1111 Schrock Rd. Ste. 100, Columbus, OH 43229- 614.540.0946 award@amppartners.org

• Mr. Ward directs the Environmental Affairs, Sustainability and Economic Development efforts at

American Municipal Power, Inc. Tasked with maintaining regulatory compliance across AMP’s diverse generation fleet, his group handles all permitting, compliance measures, audits and interactions with both state and federal resource agencies. Adam spearheads the development and implementation of policies designed to minimize risks and maximize asset value. He also

• versees AMP’s sustainability reporting and programs, which include a green power-purchasing

program, carbon management program, REC certifications, and distributed energy resource assistance. Prior to AMP, Ward held various positions at Ohio EPA managing compliance, enforcement, permitting, and state implementation planning programs. Throughout his 22-year career, he has participated in countless improvement efforts focused on developing and implementing practical cost-conscious solutions to complicated regulatory challenges. Ward holds a bachelor’s degree from Bowling Green State University and a master’s degree from the University of Findlay.

Best Practices in Air Permitting & Compliance Amid Regulatory Chaos – Key Strategies for Expedited Permitting, Corporate Audits and Intensive EPA Scrutiny

2018 MEC Conference

Todd Scarborough MPL Air Subject Matter Expert

Overall Goals and Objectives

• Share perspectives from two holistic

experiences

• Provide straightforward and simple guidance
• Describe real-world examples scaling the

summit

• Focus on positive experiences
• Empower through sharing sound strategies

2

Understanding Perspective

3

Regulatory Function

• Issue permits/review permit applications
• Complaints
• Provide compliance assistance

–USEPA vs. States

• Review routine facility reports
• Perform inspections and attend stack tests
• Initiate enforcement

Understanding Perspective

4

Current Regulatory Environment

• Significant policy changes

–USEPA –States

• Funding

–Significant impact

• Staffing levels

–Retirements

• Also a significant impact

–Attrition –New hires

• The combination of the above key factors

creates/defines the challenge

Permitting Drives Compliance

5

Why is the permit so important?

• Identifies requirements
• Identifies applicable rules
• Defines compliance strategy
• Where the war is won

Our biggest challenges in the permitting arena

6

The three U’s: unlawful, unreasonable, unnecessary

• How is PTE determined?

–The least understood concept

• Exactly what belongs in a Title V

permit?

• Synchronizing permit requirements
• Applicable rules
• New requirements

Permit Applications/Review Process

7

The critical process

• Applicant input

–Who drives the bus? –A complete application is critical

• Permitting process involvement is key
• Many opportunities are provided for input

–Propose terms and conditions –Request review of pre-draft versions –Administrative permit modifications – great for refining permit terms –Appeal rights

Report Review Process

8

The most often-missed opportunity

• Reports are reviewed in accordance with

permit requirements

–Research example reporting templates for Title V, synthetic minor and non-Title V facilities –Send draft reports for review to regulators? –Inspections are the key opportunity

• Regulators will provide feedback

–Relationship building

Simple Reporting Guidance

9

Key concepts

• Reporting format:

–Make it clear –Hit bullseye

• Timeliness
• Due diligence

–Is compliance documented? –Is the process for determining compliance documented?

A1

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Author, 6/8/2018

Routine Inspection Process

10

Your day to shine

• States schedule facility inspections
• Prioritized by USEPA agreement

–Title V, MACT, NESHAPs –FEPTIO, Synthetic Minor –State PTIO

• Encourage communication with inspectors

–Most productive use of everyone’s time

Routine Inspection Process

11

Preparation is the critical factor

• Full Compliance Evaluation

–Have all records available/ready to go –Review reports –Monitoring personnel available –Key emission units in operation –Key control equipment operating –Demonstrate your compliance program

Routine Inspection Findings

12

What makes it work?

• Compliance is attained and maintained

through….

–Highly trained operations and monitoring personnel –Organized compliance processes –Routine record review and follow up –Compliance calendars/reminders –Attention to detail

• Constant permitting and rule updates

Stack Testing Findings

13

A challenging process

• Compliance is attained and maintained

through…. –Planning well in advance for success –Selection of the right testing firm for the job –High level of communication between all parties involved

• Operations, testing firm, compliance personnel,

Ohio EPA, etc.

–Organized and thorough stack test report

Real World #1- Fast permitting

14

MVS- Most Valuable Skill

• Key Elements

–Alignment of team players

• Who is on your team?

–Communication

• You win with people but only if they speak

effectively with each other

–Execution

• Each team member must play like varsity

Real World #1- Fast permitting continued

15

Cajun Challenge

• Major project

–Number of emissions units –Cost

• Critical need

–Success is the only option

• Relationships

–Never underestimate the value of meeting face to face

Real World #2- You need the air permit when?

16

One-tank wonder

• Expedited process

–Big $$$$

• Your “A” team must be known to you

–Surround yourself with great people

• Short story

–Sudden need –Critical need

• Outcome

–65 days

• Done is better than perfect

–Two-step process

• Everything in place before first day of operation

Real World #3- Inspection A

17

Change is a constant

• The system matters

–Creates a lasting impression

• Total transparency

–Drives outstanding relationships

• Questions answered directly

–Credibility –Are you listening to yourself

• 100% compliance

Real World #4- A whole new kind of inspection

18

Comprehensive at a whole new level

• Multiple Inspectors

–Latest technology

• Program understanding

–Do you know why you are doing what you are doing?

• Comprehensive/detailed

–9 typed pages

• Described records for review
• Interrogatories
• Great outcome

Real World #5- Patience pays off

19

A win for everyone

• Over permitted

–Several sites –20 plus years

• Re-permitted

–Reclassified

• Title V to FESOP
• Title V to Minor
• FESOP to Minor

Wrap up

20

Relationship-centric approach drives winning with people!

• Compliance is achieved through…..

–Outstanding relationships –Outstanding communication –Outstanding technical command of the subject matter

• Results will speak for themselves!!!

Questions?

21

Always glad to offer assistance

Todd Scarborough (419)429-9511

Best Practices in Air Permitting & Compliance Amid ‘Regulatory Chaos’…Key Strategies for Expedited Permitting, Corporate Audits and EPA Scrutiny

Adam Ward – VP Environmental Affairs, Sustainability and Energy Policy

Topics

• Context
• Notable Activity
• Permit Case Study
• Audit Success
• Lessons

About AMP and Our Members

• AMP is the wholesale power supplier and services provider

for 135 member municipal electric systems across 9 states

• Combined, AMP members serve more than 650,000

customers

• AMP members are units of local government; they are

municipally owned and governed

• Fossil fuel-based generation units include NGCC, NGSC,

diesel owned by AMP or AMP members

AMP Member Footprint

Regulatory Oversight

Scope of regulatory reach at AMP:

• 65 permits across portfolio including 56 air

permits (TV, SM, minor)

• 145 Regulated Units
• AMP provides environmental services to

numerous members

• Monitoring and advocacy of state and federal

agencies on behalf of members

26

Federal Activity

• Outward Facing

 Clean Power Plan (CPP)  Waters of the US (WOTUS)  Administrator Scott Pruitt

• Behind the scenes

 Restructuring  Process adjustments  Fundamental policy changes

Notable Federal Activity

12/07/17 Actual-to-Projected Actual Applicability Test for NSR 01/25/18 Once-In-Always-In 03/13/18 Project Emissions Accounting under NSR Preconstruction Review 2018 NAAQS Memos ? TBD

Notable State Activity

• Engineering Guide #80

Potential to Emit (PTE)

• Engineering Guide #88

MACT/GACT

• How is ‘Once-In-Always-In’ handled by OEPA?
• Office Memo: BAT Guidance for permits (incorporation
• f Senate Bill 265)
• BAT related Engineering Guides #86, 87, 89

Case Study

Step 1: Application Development

• We hired a consultant to prepare our

application and calculations

• Recognized and respected air experts
• Very knowledgeable with federal NSR

Lesson  Trust but verify  Ask questions

Case Study

Step 2: Agency review

• Application submitted and in person meeting
• Communicated deadline
• Requested permit review pre-issuance

Lesson  Be clear about timing needs  Request to review permit terms

Case Study

Step 3: Pre-issuance review

• Examined justification for limits
• Fully explored permit obligations
• Clarified questions via email and calls

Lesson  Review of terms is time well spent  Look for voluntary limit citation --31-05(F)  Old habits die hard

Corporate Audit

• A golden opportunity to find:
• non-compliance
• questionable work practices
• gaps in knowledge
• Include your Legal Dept. in the process
• Be transparent and follow through with

recommendations

• If needed, contact Ohio EPA’s Compliance

Assistance Office for confidential advice

Lessons for working with Agency

• Decades of doing more with less means

consolidation of functions is inevitable

• States are having a difficult time keeping up with

the federal policy changes

• If you have questions, ask them
• If you think you should elevate an issue, then

elevate

• Always be polite, persistent and organized

For questions or further information: Adam Ward (c) 614.325.4662 (o) 614.540.0946 award@amppartners.org