February 2011

Air Alert: EPA Expected to Extend its Muscle with a Section 114 (CAA) Request to Refiners

What you need to know … The United States Environmental Protection Agency (EPA) is nearing the completion of a process that will result in a broad Clean Air Act Section 114 request (Refinery 114 request) being sent to all 152 active petroleum refineries in the United States. A request under Section 114 mandates a response, similar to a legal subpoena. A number of refineries will also be asked to conduct stack and other emission testing. On February 2, 2011, EPA published a Federal Register notice that EPA has sent an Information Collection Request (ICR) to the federal Office of Management and Budget (OMB) (public comment open until March 4, 2011) requesting approval to transmit the Refinery 114 request to the industry. The data in EPA's notice indicates that EPA expects that the average refinery will expend 456 hours (~ 0.25 full time employees) and over $200,000 in expenses to complete the 114 request. If EPA's currently planned due dates remain unchanged, portions of the Refinery 114 request responses will be due May 31, June 30, and August 31, 2011.

Click here to read more - 2011_Fed_Reg_Notice_Refinery_ICR.pdf

Background … In September 2009, EPA published a proposed Information Collection Request (ICR) to gather an extensive list of data from US petroleum refineries. On February 2, 2011, EPA published notice that EPA had sent the ICR to the OMB seeking approval to submit the information request to the industry (comments regarding this ICR request may be submitted by March 4, 2011) (www.regulations.gov). The ICR will be submitted to the industry as a Clean Air Act Section 114 request, and will address the residual risk evaluations required for refinery emission sources under the regulations traditionally referred to as New Source Performance Standards (NSPS) J, Refinery maximum achievable control technology (MACT)1 (Subpart CC) and Refinery MACT2 (Subpart UUU). In addition, the Refinery 114 request will also include information for NSPS GGG, QQQ, and Benzene Waste Operations NESHAP (BWON) (Subpart FF).

While the primary trade groups (American Petroleum Institute [API]/National Petrochemical and Refiners Association [NPRA]) objected to many of the provisions in the September 2009 version, EPA rejected many of the trade groups' arguments. Therefore, EPA's current draft documents will likely represent what will be included in the Section 114 request.

Timing … Based on EPA’s docket for this ICR, EPA apparently expects quick OMB approval. EPA’s draft documents indicate that the initial portions of the refinery emission information mandated under this request will be due to EPA by May 31, 2011, with testing and other data due August 31, 2011. While there is potential for changes to the due dates, this timing demonstrates EPA’s current intent.

Summary of the request … 152 US petroleum refineries will receive a Section 114 request to provide the information in Components 1 – 3. Selected refineries (click here for for a list of EPA's intended recipients) will be required to provide testing data for Component 4. Emission records data will be based on 2010 actual emissions.

Component 1 – 5/31/2011	Component 2 – 6/30/2011	Component 3 – 8/31/2011	Component 4 – 8/31/2011
General facility information	Emissions inventory data (2010 tons/year – criteria and hazardous air pollutants [HAPs]) Accuracy of data must be reported using an EPA grading scale (1 – CEMS; 4 – estimate) Separate reporting of start-up/shutdown/malfunction (SSM) and other non-routine events. Maximum actual pounds/hour during normal operation during 2010 stack parameters	Analyses of feed composition to each distillation column (with different feed streams) 3 separate sets of samples at least 30 days apart. Maintain chain of custody records. Measuring specified metals and inorganics, high heating value (HHV), density, gravity	For selected refineries: Stack testing Emissions testing Fuel gas testing Cooling water system testing Wastewater treatment system testing Collect 30 days of specified process data during testing period.
Process unit and other emission sources at the refinery
Provide copies of filed incident reports
Cost data to install/operate pollution control equipment (these include pollution control equipment installed in last 5 years, not including process changes (ultra-low-sulfur [ULSD], Gasoline benzene, etc.)
Existing emissions monitoring (continuous emissions monitoring systems [CEMS] daily averages 2010) and source test (copies of all tests after 1/1/2005) data

Trihydro recommends that you develop your plans now for data collection. We believe that EPA could issue the Section 114 request to the refining industry as early as late March 2011. EPA anticipates electronic versions of the request forms being available by mid-March 2011.

Each refinery will require a separate response, and will need to have the Department of Energy and Energy Information Administration (DOE/EIA) Form 810 and 820 available to complete the response.
Significant energy efficiency information is required (if the refinery has an energy coordinator, they should be included as part of the response team).
Refinery process engineering input will be needed.
The refinery's LDAR database should contain much of the required equipment leak information.
A significant amount of information ultimately required to document compliance with the Heat Exchanger MACT will be required to respond to the questions due by 5/31/2011.
Plan for the timing necessary to complete the distillation column testing (required for all refineries) and stack and other emissions testing. Distillation testing will need to commence by May to meet timing requirements of the 114 request, and stack testing companies will likely become difficult to schedule closer to the deadlines.