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Environmental Update ROHIT SHARMA LyondellBasell, Environmental Issues Manager August 21, 2013.

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Presentation on theme: "Environmental Update ROHIT SHARMA LyondellBasell, Environmental Issues Manager August 21, 2013."— Presentation transcript:

1 Environmental Update ROHIT SHARMA LyondellBasell, Environmental Issues Manager August 21, 2013

2 2 AGENDA Monitoring Data Air Quality Regulatory Activity Impact to Utilities

3 3 REAL & MEASURED IMPROVEMENTS

4 4 C78 C555 C560 C557 C26 C561 C559 C554 C408 C562 C410 C409 C53 C84 C558 C619 C1034 C1022 C620 C570 C572 C571 C406 C45 C608 C556 C35 C552 C611 C610 C553 C551 C607 C617 C1015 C15 C603 C1 C405 C8 C403 C601 C81 C411 C604 C11 C618 Location of Ozone Monitors in HGB TCEQ HRM City Harris County Independent C1016 C5005 Source: Houston Regional Monitoring (HRM)

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12 REGULATORY ACTIVITY 12

13 13 OZONE hr Ozone Standard (120 ppb) HGB Area must meet the standard by November 15, Very close to meeting standard. Controls: Billions $ spent on overall 80% NOx controls and HRVOC monitoring hr Ozone Standard (85 ppb) HGB Area must meet the standard by June 15, Very close to meeting the standard. Controls: A 25% reduction in the overall HRVOC cap hr Ozone Standard (75 ppb) Bush administration/EPA lowered standard to 75 ppb Obama administration/EPA immediately announced lowering of standard to between 60 – 70 ppb but eventually did not Texas non-attainment counties Dallas/Ft Worth - Collin, Dallas, Denton, Ellis, Johnson, Kaufman, Parker, Rockwall, Tarrant, Hood, Wise Houston – Brazoria, Chambers, Fort Bend, Galveston, Harris, Liberty, Montgomery, Waller Controls: TCEQ is conducting modeling; Also looking at Exceptional Events and International Emissions contributions Next Standard Next 5 year review cycle for the Standard is underway Current EPA timeline is to publish a draft proposal by year end 2013 and a final rule by Sept Compliance deadline will depend on classification of Area: 2017 for Marginal, 2020 for Moderate, 2023 for Serious, and 2029 for Severe Proposals are for standard to be lowered to between 55 – 70ppb

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15 15 BOILER MACT Final rule issued on March 21, Applicable to Boilers & Process Heaters Reconsidered final published in Federal Register Existing sources – have 3 years from publication to comply. May request an additional year. New sources – comply Jan 31, 2013 or upon startup Many more subcategories of Boilers Requirements include CO / O2 CEMS, performance tests, energy assessments, and controls if not meeting emission limits. Strict PM, HCL, Hg, CO and Dioxin limits for existing liquid and some fuel gas burning boilers Very strict limits for coal burning boilers

16 16 BOILER MACT Boiler Energy Assessments A visual inspection of the boiler or process heater system. An evaluation of operating characteristics of the boiler or process heater systems, specifications of energy using systems, operating and maintenance procedures, and unusual operating constraints. An inventory of major energy use systems consuming energy from affected boilers and process heaters and which are under the control of the boiler/process heater owner/operator. A review of available architectural and engineering plans, facility operation and maintenance procedures and logs, and fuel usage. A review of the facility's energy management practices and provide recommendations for improvements consistent with the definition of energy management practices, if identified. A list of cost-effective energy conservation measures that are within the facilitys control. A list of the energy savings potential of the energy conservation measures identified. A comprehensive report detailing the ways to improve efficiency, the cost of specific improvements, benefits, and the time frame for recouping those investments. And a lot more requirements…………………..

17 Other Rules Risk and Technology Review (RTR rules) Polymers & Resin IV, Pesticides, Polyether Polyols (3P) rule proposed Jan 9, Final rule by Jan 31, 2014 Polycarbonate, Acrylic & Modacrylic fibers, Polymers & Resins III proposal by Dec 11, 2013 Off-Site Waste & Recovery Operations (OSWRO) proposal by Dec 11, 2013 Ethylene MACT Section 114 request likely to be sent out in 4Q 2013 OLD, MON, HON, NSPS review could be in 2014 Flares EPA pursuing Consent Decrees EPA planning to propose Refinery rule on flares. 1Q Will set precedent for the chemicals sector 17

18 Greenhouse Gas (GHG) NSPS for GHGs NSPS for GHGs for Utilities (new sources) – EPA to re- propose by Sept 20, 2013 and finalize by June 1, NSPS for GHGs for Utilities (existing sources) – EPA to propose by June 1, 2014 and finalize by June 1, NSPS for GHGs for Refineries – after the Utilities Presidents Climate Action Plan (CAP) 17% reduction in carbon emissions from 2005 to 2020 Energy efficiency standards for industry Mandatory Reporting Rule (MRR) CBI data – possible proposal 4Q 2013 TCEQ had two outstanding suits against EPA on GHGs – On July 26, 2013 the Court of Appeals sided with EPA 18

19 Impact to Utilities On Aug 21, 2012 the Cross State Air Pollution Rule (CSAPR) vacated by the courts but CAIR remains in place. Goal is power sector emissions reductions However, was broadened to include chemical/refinery sector co-generation facilities EPA/NGOs successfully petitioned to Supreme Court Mercury & Air Toxics Standard (MATS) Cooling Tower Intake Rule Effects Utilities with large intake of cooling water from streams 19

20 Source: American Coalition For Clean Coal Electricity (ACCCE) 20

21 2013 Texas Legislative Session HB 788 (PASSED) - This bill authorizes the TCEQ to accept delegated authority from EPA for greenhouse gas permitting and streamlines the permit process. HB 788 SB 1300 (PASSED) - amends the Texas Environmental, Health, and Safety Audit Privilege Act to expand the definition of "environmental or health and safety audit" to include a systematic voluntary evaluation, review, or assessment of compliance with environmental or health and safety laws or with any permit issued under an environmental or health and safety law conducted by a person, including an employee or independent contractor of the person, that is considering the acquisition of a regulated facility or operation. SB 1300 SB 1727 (PASSED) - Relating to the use of the Texas Emissions Reduction Plan (TERP) fund. Several changes to the TERP program were made in this bill along with language negotiated by industry relating to credit for 185 fees. SB 1727 SB 1756 (PASSED) - Relating to the expedited processing of certain applications for permits under the Clean Air Act. Requires TCEQ to adopt a program to expedite the processing of permits, amendments, registrations, or variances for applicants for projects that will benefit the local or state economy. SB


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