Flare Management Plans: Legal Strategies and Compliance Risks Post 11/11/2015

Transcription

1 4C HSE Conference Flare Management Plans: Legal Strategies and Compliance Risks Post 11/11/2015 February 20, 2017 LeAnn Johnson Koch (202) Perkins Coie LLP

2 Flare Management Plans: 40 CFR a Core Requirements Develop, submit, and comply with a flare management plan by November 11, 2015 (earlier if it s a new flare) Update it periodically to account for changes in the operation of the flare, such as new connections to the flare or the installation of a flare gas recovery system Resubmit only if owner/operator adds an alternative baseline flow rate, revises an existing baseline, installs a flare gas recovery system, or is required to change flare designations and monitoring methods (emergency, secondary, or flare gas recovery) 2

3 Two Types of Requirements: Prescriptive and Non-Prescriptive A suite of standards that apply at all times... Prescriptive: list the process units, ancillary equipment, and fuel gas systems connected to the flare,... description and simple process flow diagram showing certain interconnections... Non Prescriptive: assess whether discharges can be minimized... implement flow minimization or provide a statement, with justifications, why flow cannot be reduced... 3

4 A list of refinery process units, ancillary equipment, and fuel gas systems connected to the flare; a(a)(1) Know the definitions: Ancillary equipment: storage tanks, product loading operations, wastewater treatment systems, steam- or electricity-producing units (including coke gasification units), pressure relief valves, pumps, sampling vents and continuous analyzer vents Have A System In Place to Track Additions/Changes MOCs; Work Orders; Hot Tap Permits; Changes at TAR 4

5 Flare Minimization a(a)(2) An assessment of whether discharges to affected flares from these process units, ancillary equipment and fuel gas systems can be minimized. clear rationale in terms of costs (capital and annual operating), natural gas offset credits (if applicable), technical feasibility, secondary environmental impacts and safety considerations for the selected minimization alternative(s) or a statement, with justifications, that flow reduction could not be achieved. identify the minimization alternatives implemented by the due date and include a schedule for the prompt implementation of any selected measures that cannot reasonably be completed as of that date. 5

6 Evaluation of Baseline Flow a(a)(4) Baseline flow is not defined Determined after implementing the minimization assessment Exceeding the baseline triggers root cause reporting Changes to the baseline require resubmission of the FMP Alternative baselines are allowed Require detailed tracking; pros and cons of adding an alternative baseline 6

7 Procedures to Minimize or Eliminate Flow During Planned Startup and Shutdown, Fuel Gas Imbalance, and Flare Gas Recovery System Outages; 40 CFR a(a)(5)-(7) Some refiners have developed detailed plans for each process unit and ancillary equipment; others describe a generic plan. The procedures are required to be included in the FMP. Some refiners refer or summarize them, but have not included them in the plan. Plans may need to be updated periodically when new units and ancillary equipment are added. 7

8 Some Strategery (page 1 of 2) Skip the background... The refinery is capable of processing 150,000 bpd... Skip what s not asked for... The flare was modified on... Skip the interpretations of the regulations or the FMP requirements... Relief valve leakage means... Follow the order of the requirements in the regulations... use the text in your plan 8

9 More Strategery (page 2 of 2) Don t use the plan to set internal goals... Through this plan we will seek to reduce the number of flaring incidents to less than 3 per year. Don t incorporate additional requirements in your plan... All modifications to the plan will be logged on appendix A Have a schedule and system to periodically review your plan... and remember what triggers resubmission 9

10 Refiners May Receive Another Bite at the Apple But No Promises In the NSPS subpart Ja final preamble, EPA says: Refiners will be notified if plan is deemed deficient. This could include findings that the plan does not contain all the required elements, alternative flare reduction options were not evaluated or selected when reasonable, or the baseline or alternative baseline flow rates are considered unreasonable. The owner or operator must either revise the plan to address the deficiencies or provide additional information to document the reasonableness of the plan. 77 Fed. Reg (Sept. 12, 2012). 10

11 The FMP Can Collide with Many Other Moving Parts... Flares are discussed in many ways, in many places: Consent Decrees: flare root cause and corrective action requirements Deviation Reports Title V Compliance Certification Continuous Release Reports 11

12 Questions? (202)