Analysis Item 43: Department of Environmental Quality Air Monitoring Equipment

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1 Analysis Item 43: Department of Environmental Quality Air Monitoring Equipment Analyst: Paul Siebert Request: Allocate $225,000 from the Emergency Fund to acquire metals and particulate monitoring equipment to investigate public health concerns due to air toxics pollution. Recommendation: Approve the request. Analysis: During the 2016 legislative session, the Department of Environmental Quality (DEQ) was appropriated $2.5 million General Fund to focus on increased air toxics metals monitoring efforts on hotspots discovered in Portland and to develop a risk-based approach to air permitting for industrial sources through rulemaking. The rulemaking process will allow DEQ to modify existing air permits to be risk-based. The appropriation included enough funding to purchase and set up two full air metals and particulate monitoring stations. The air toxics monitoring funding approved during the session was based on preliminary moss collection and analysis from the U.S. Forest Service that included only some of the metals of concern. In addition, after consulting with the Oregon Health Authority about the data needs for health assessments, it was determined that adequate monitoring around hot spot facilities should be monitored using four sites with two monitors per site collecting different metals at each monitor. In order to respond to public demands and provide scientifically verifiable results, DEQ identified the need for many more metals monitors than the two approved for purchase within the $2.5 million. To meet this immediate need the U.S. Environmental Protection Agency (EPA) temporarily loaned DEQ 21 of its metals monitors. This was only a temporary solution as EPA needs the monitors back in early summer to be available for potential forest fire monitoring. DEQ is requesting $200,000 to acquire replacement monitors and $25,000 for the costs associated with deploying the new monitors. The will allow DEQ to have 13 monitoring sites (26 monitors) assessing identified hot spots. These monitors can be used in the future to, among other things, ensure compliance with the new health based permitting regulations. DEQ reports that the discovery of high metals emissions from two glass manufacturing facilities has generated unprecedented public concern. To meet this quickly developing crisis, DEQ had to assign agency staff outside the Air Quality program and its dedicated funding sources, which has created major funding challenges in the Air Quality program. Also, the Land Quality program has incurred unanticipated costs due to extensive soil sampling on land surrounding the glass making facilities. In February and March alone, DEQ incurred $415,000 in unanticipated costs that is currently being funded from the $2.5 million intended for rulemaking, not crisis response. DEQ reports it is investigating additional federal funding, but if the current level of work continues it would likely return to the Emergency Board in September to request reimbursement of crisis response costs. The Legislative Fiscal Office recommends approval of the request to allocate $225,000 General Fund from the Emergency Fund to purchase 24 metals and particulate air pollution monitors to replace monitors currently being borrowed from the EPA. Legislative Fiscal Office Emergency Board May 2016

2 43 Department of Environmental Quality Connolly Request: Allocate $225,000 from the State Emergency Fund for the purchase of 24 metals monitors and the associated mobilization costs. Recommendation: Approve the request. Discussion: The Department of Environmental Quality (DEQ) is investigating the public health implications of air toxics hotspots in Portland that were identified by a US Forest Service moss study. The agency received $2.5 million General Fund during the February 2016 Session to investigate air toxics in Portland through additional monitoring and to develop a health based approach to air permitting for industrial sources. The new funding included $350,000 of capital outlay purchases which covers two new monitoring sites that sample for a full suite of air toxics and two mobile metal only monitoring sites. Subsequently, in consultation with the Oregon Health Authority, the agencies determined adequate monitoring of certain potential hot spot areas required multiple sites for each hot spot. Two monitors are needed at each site as different metals are collected in each monitor. In order to accomplish that level of monitoring, DEQ borrowed 21 metals monitors from the US Environmental Protection Agency (EPA) and has been using those since February. However, EPA can request the return of the monitors at any time. Because the monitors can also measure particulate in the air, there may be a need for their use during upcoming wildfire season around the country. The requested funding is to replace the borrowed monitors with 24 new metals monitors ($200,000) and to pay for the costs associated with installing and moving the monitors such as permits, electricity drops, rent and extra travel to set up the new sites ($25,000). If this request is approved, DEQ will have the capacity to set up 13 monitoring sites in groups that are appropriate to the size and location of a facility or other potential hot spots that have been identified. The investment in this equipment will support the implementation of the new rules DEQ is developing that will use a health-based approach to air permitting for industrial sources. The equipment could also be used to measure particulate material in the air caused by Oregon wildfires. The agency has considered using its current resources to purchase the new monitors. However, because of the significant effort the agency has made in the last four months to address the issue of air and land toxics in Portland the agency is already consuming some of the $2.5 million that is meant for new monitoring and rulemaking on crisis response and does not have available funding. The agency has directed staff to focus on this issue and staff from other programs are being used to address the crisis. Because much of DEQ s funding is dedicated, the Air Quality program must pick up the cost of staff from other programs. In addition, DEQ s Land Quality program incurred substantial costs for extended soil sampling work. DEQ does not have sufficient resources to purchase 24 metals monitors. Department of Administrative Services 43-i May 25, 2016

3 Legal Reference: Allocate $225,000 from the State Emergency Fund to supplement the appropriation made by chapter 593, section 1(1), Oregon Laws 2015, for the Department of Environmental Quality, Air Quality Program, for the biennium. Department of Administrative Services 43-ii May 25, 2016

4 Department of Environmental Quality Agency Headquarters 811 SW Sixth Avenue Kate Brown, Governor Portland, OR (503) FAX (503) TTY 711 April 22, 2016 The Honorable Senator Peter Courtney, Co-Chair The Honorable Representative Tina Kotek, Co-Chair State Emergency Board 900 Court Street NE H-178 State Capitol Salem, OR Dear Co-Chairpersons: Nature of the Emergency The Department of Environmental Quality is requesting funding for the purchase of metals monitoring equipment and the associated mobilization costs to investigate public health impacts in areas identified as hot spots by the recent U.S. Forest Service moss study. DEQ has very few metals monitors and is currently borrowing 21 monitors from the U.S. Environmental Protection Agency to meet demands at three high priority sites. The borrowed monitors, which also measure particulates, will have to be returned to EPA for response to other crisis, including wildfires, in other parts of the Western United States. Agency Action In February 2016, the Legislature provided funding to investigate concerns about air toxics through additional monitoring and to develop a health based approach to air permitting for industrial sources. The air monitoring resources provided were for two metals monitoring sites, additional moss studies, data analysis and two full air toxics monitoring sites for rotation around the state. The funding included $350,000 for capital outlay purchases. At the time of the February 2016 policy package development, DEQ had incomplete metals hot spot information. The U.S. Forest Service maps included only limited information on a few metals (nickel, cadmium and arsenic) and we are still waiting for release of additional maps of other metals like cobalt and chromium. Also, after consulting with the Oregon Health Authority about the data needs for health assessment analysis and the heightened public concern, it was determined that adequate monitoring around some hot spot facilities means four sites with two monitors per site collecting different metals in each monitor. In order to respond to public demands and provide scientifically sound coverage of metals hot spots, DEQ had to borrow 21 metals monitors from EPA. We will have to return them and need to purchase our own metals monitors if we are to meet these demands. Since the discovery of high metals emissions from the two art glass manufacturing facilities, there has been unprecedented public concern and outcry, and DEQ s response has had a dramatic impact on the agency s work and Air Quality program funding. DEQ had to assign agency staff outside of the Air Quality program to do Air Quality crisis response work. Since staff outside of the Air Quality program can t statutorily use their normal funding sources for air quality work, a substantial amount of unanticipated costs have been shifted to the Air Quality program. Also, in response to public concerns about metals deposition on the land around the art glass manufacturers, DEQ s Land Quality program incurred substantial costs for extensive soil sampling work.

5 The agency s crisis response work continues. In February and March, DEQ incurred $415,000 in unanticipated and unbudgeted costs in the Air and Land programs. We are investigating opportunities for additional funding through federal sources but for now we are spending a portion of the $2.5 million that was meant for rule development and monitoring on crisis response. If this level of effort is to continue, DEQ will likely return to the Emergency Board in September to request funding for crisis response costs. Action Requested DEQ is requesting an additional $200,000 in capital outlay funding to purchase 24 metals monitors. The additional monitors would allow us to maintain the level of monitoring afforded by the loaned EPA monitors and continue to monitor in multiple identified hot spots at one time, thus providing adequate coverage to analyze health impacts. Along with the additional monitors that will allow us to move to more sites, DEQ is requesting an additional $25,000 in Services and Supplies funding to pay for the costs associated with monitor mobilization. Costs include city/county permits, electricity drops, rent and extra travel to set up the monitors. Long-term, once all of the metals hot spots have been investigated, DEQ can redeploy the monitors to measure ambient metals levels to ensure compliance with new permitting regulation. Also, the monitors are capable of measuring particulate levels and can be deployed to Oregon wildfires and prescribed burn events to inform other crisis response work. Legislation Affected If the request is approved, the $225,000 in General Fund should be added to Senate Bill 5507 (2015), Chapter 593, Section 01, Sub-section 01. Sincerely, Pete Shepherd Interim Director Cc: Cathy Connolly, Policy and Budget Analyst, Chief Financial Office Paul Siebert, Senior Legislative Analyst, Legislative Fiscal Office