New Air Emission Rules Affecting Texas Oil and Gas Drilling

The U.S. Environmental Protection Agency (EPA) has proposed standards to reduce regulated air emissions from oil and gas drilling operations. These proposed updated standards, issued in response to a court order, would rely on existing technologies to reduce emissions. The proposal would cut volatile organic compound (VOC) emissions from several types of processes and equipment used in the oil and gas industry, including a 95% reduction in VOCs emitted during the completion of new and modified hydraulically fractured wells.

EPA’s analysis of the proposed changes, which also include requirements for storage tanks and other equipment, estimates a net savings to the industry of $10s of millions annually from the value of natural gas that would no longer escape to the air. The proposal includes reviews of four air regulations for the oil and natural gas industry as required by the Clean Air Act: a new source performance standard for VOCs from equipment leaks at gas processing plants; a new source performance standard for sulfur dioxide emissions from gas processing plants; an air toxics standard for oil and natural gas production; and an air toxics standard for natural gas transmission and storage.

EPA is under a consent decree requiring the agency to sign a proposal by July 28, 2011 and take final action by Feb. 28, 2012. As part of the public comment period, EPA will hold three public hearings, in the Dallas, Denver and Pittsburgh areas.

Caltha LLP provides expert environmental consultant services in Texas to obtain environmental permits, evaluate regulatory requirements, and to prepare compliance programs, including SWPPP Plans, SPCC Plans prepared to meet TCEQ requirements.

For further information contact Caltha LLP at info@calthacompany.comor Caltha LLP Website

GHG Permit Requirements For Biomass Fuel Units

The Environmental Protection Agency (EPA) has announced a plan to defer for three years green house gas (GHG) permitting requirements for carbon dioxide (CO2) emissions from biomass-fired and other biogenic sources. EPA intends to use this time to seek further independent scientific analysis and then to develop a rulemaking on how these emissions should be treated in determining whether a Clean Air Act permit is required.

By July 2011, EPA plans to complete a rulemaking that will defer permitting requirements for CO2 emissions from biomass-fired and other biogenic sources for three years. During the three-year period, the agency will seek input on scientific issues. EPA will also further consider the comments it received from its July 2010 Call for Information, including comments noting that burning certain types of biomass may emit the same amount of CO2 emissions that would be emitted if they were not burned as fuel, while others may result in a net increase in CO2 emissions. Before the end of the three-year period, the agency intends to issue a second rulemaking that determines how these emissions should be treated or counted under GHG permitting requirements.

The agency also plans to issue guidance that will provide a basis that state or local permitting authorities may use to conclude that the use of biomass as fuel is the best available control technology for GHG emissions until the agency can complete an action on the three-year deferral in July.

Caltha LLP provides expert environmental consultant services in Texas to obtain environmental permits, evaluate regulatory requirements, and to prepare compliance programs, including SWPPP Plans, SPCC Plans prepared to meet TCEQ requirements.

For further information contact Caltha LLP at info@calthacompany.comor Caltha LLP Website

Texas TCEQ Required To Update GHG Permit Program Under Tailoring Rule

The U.S. Environmental Protection Agency (EPA) is moving forward with its plan to require certain states to update their Clean Air Act implementation plans to cover greenhouse gas (GHG) emissions. These updates are required to ensure that beginning in January 2011 the largest industrial GHG emissions sources can receive permits. This action is part of EPA’s “Tailoring Rule”.

Texas is one of 13 states that EPA has identified need to make changes to their plans, allowing them to issue permits that include GHG emissions. These states include: Arizona, Arkansas, California, Connecticut, Florida, Idaho, Kansas, Kentucky, Nebraska, Nevada, Oregon, Texas, and Wyoming.

The Clean Air Act requires states to develop EPA-approved implementation plans that include requirements for issuing air permits. When federal permitting requirements change, as they did after EPA finalized the GHG tailoring rule, states may need to modify these plans.

In January 2011, industries that are large emitters of GHGs, and are planning to build new facilities or make major modifications to existing ones, will work with permitting authorities to identify and implement the most efficient control technologies to minimize their GHGs. This includes the largest GHG emitters, such as power plants, refineries and cement production facilities. Emissions from small sources are not covered by these GHG permitting requirements.

Related links:
Proposed EPA GHG Tailoring Rule

Additional background on greenhouse gas GHG permitting requirements

Caltha LLP provides expert environmental consultant services in Texas to obtain environmental permits, evaluate regulatory requirements, and to prepare compliance programs, including SWPPP Plans, SPCC Plans prepared to meet TCEQ requirements.

For further information contact Caltha LLP at info@calthacompany.com or Caltha LLP Website

Audit Program Option for TCEQ Flexible Permit Holders

U.S. Environmental Protection Agency (EPA) has released its voluntary Audit Program to help companies in Texas with Flexible Permits obtain air quality permits that meet state and federal requirements and the protections of the Clean Air Act (CAA). The TCEQ's Flexible Permits program was never approved by EPA into the state implementation plan (SIP).

The Audit Program will offer a covenant from civil enforcement by the federal government, for instances where companies with Flexible Permits operated outside of federal requirements provided that companies agree to and complete the proposed audit program. In addition, companies who enter the audit will no longer be subject to EPA's use of Title V tools for permits issued that do not contain all CAA requirements.

The Audit Program is available for 90 days after publication in the Federal Register. Participants who sign up in the first 45 days can take advantage of a reduced penalty incentive for potential violations.

Under the program, a third-party auditor will conduct an independent review of operations, modifications, and permitting activities that occurred since the issuance of the flexible permit, so that the federally-applicable requirements can be identified for a new permit. These independent findings would be directly transmitted to the company and EPA and used to establish new limits in state-issued permits. EPA anticipates the audit process to take about one year.

The Audit Program requires participants to obtain federally-approved state permits from the TCEQ. A company would enter into a Consent Agreement and Final Order with EPA based on the findings of the third-party audit. This audit program and CAFO would resolve any New Source Review non-compliance issues that occurred while operating with the Flexible Permit provided that the companies complete the audit program.

The federal audit program is one of two paths available for companies to transition their flexible permits to a permit that meets federal and state requirements. EPA is also inviting companies to contact the EPA Region 6 Compliance Assurance and Enforcement Division if they are interested in more direct negotiations with EPA that would result in federally-enforceable permits and resolution of non-compliance and Title V uncertainty.

Caltha LLP provides expert environmental consultant services in Texas to obtain environmental permits, regulatory auditing auditting and to develop cost effective compliance programs.

For further information contact Caltha LLP at info@calthacompany.com or Caltha LLP Website

EPA Proposes Voluntary Compliance Audits To Address Air Issue

EPA has announced final disapproval of the flexible permit program that the Texas Commission on Environmental Quality (TCEQ) had submitted for inclusion in its clean-air implementation plan. EPA has determined that this program does not meet several national Clean Air Act requirements that help to assure the protection of health and the environment.

To insure no disruptions for facilities, EPA has entered into discussions on how to convert existing flexible permits into more detailed permits that comply with the Clean Air Act. One tool proposed by EPA is encouraging flexible permit holders to participate in a voluntary compliance audit program. The program will expedite efforts to identify emission limits, operating requirements and monitoring, reporting and recordkeeping data. Public comment on the proposed audit program closes on July 2, 2010.

Caltha LLP provides expert environmental consultant services in Texas to obtain environmental permits, evaluate regulatory requirements, and to develop cost effective compliance programs.

For further information contact Caltha LLP at info@calthacompany.com or Caltha LLP Website

TCEQ Qualified Facilities Exemption Rule

EPA disapproved the Qualified Facilities exemption rule that TCEQ had submitted for inclusion in its federally approved State Implementation Plan (SIP). The rule allowed companies that have air permits to avoid certain federal requirements including public review when they modify their plants. EPA has determined that this regulation does not meet several federal Clean Air Act requirements.

In September 2009, EPA issued a Federal Register Notice proposing to disapprove the TCEQ’s Qualified Facilities Program and invited public comment. EPA has been meeting with TCEQ, industry representatives, and environmental groups to discuss deficiencies with current State air emission permits.

Before the end of 2010, EPA plans to issue final decisions on two additional changes: 1) the Flexible Permits Program and 2) New Source Review Reform regulations.

Caltha LLP provides expert environmental consultant services in Texas to obtain environmental permits, evaluate regulatory requirements, and to develop cost effective compliance programs.

For further information contact Caltha LLP at
info@calthacompany.com
or
Caltha LLP Website