1997 ANNUAL REPORT
REFINING

Air and water quality issues emerged on both the technical and the regulatory fronts in 1997 as environmental and "neighborhood" activists pressured government to adopt more stringent rules that could impact refining throughout the West.

For example, WSPA coordinated efforts in the Bay Area to ensure that amendments to two volatile organic compound (VOC) regulations would be based on current emission and cost-effectiveness data. These two regulations focus on controls for fugitive emissions and pressure safety valves (PSV). Much of the submitted data was based upon significant information collected by the South Coast and Bay Area refiners. The most notable concern associated with the proposed amendments includes a potentially burdensome and costly fugitive emissions inspection and maintenance program for leaks down to 100 parts per million (ppm) and abatement of atmospheric PSV lifts through extremely costly abatement devices (i.e. flares). WSPA expects the Bay Area Air Quality Management District (BAAQMD) Board to vote on these amendments by the first quarter of 1998.

Air Quality Status in Bay Area Faces Downgrade

The federal Environmental Protection Agency (EPA), Region IX, has recommended that the Bay Area attainment status should be downgraded to "moderate" due to remarkably hot and stagnant atmospheric conditions conducive to ground level ozone formation in 1995 and 1996. These conditions occurred on the heels of the San Francisco Bay Area’s redesignation as the largest metropolitan region in the country to reach federal attainment for ozone. EPA, Region IX’s recommendations have been sent to the governor of California and federal EPA for review, comment and, potentially, implementation.

Actions to Address Refinery Emissions to Continue

Attempts to defer implementation of the Bay Area Air Quality Management District’s refinery nitrogen oxide (NOx) rule have been unsuccessful. WSPA presented a proposal that essentially provided flexibility, cost savings and similar downwind air quality benefits as those generated by the refinery NOx rule. The inflexible nature of the California Clean Air Act and the complexity of the data used contributed to difficulties associated with this effort.

Meanwhile, a study conducted for WSPA in the South Coast determined that emission levels under current South Coast Air Quality Management District (SCAQMD) fugitive emission rules are significantly less than in improving air quality than the SCAQMD realizes. This conclusion was reached by developing a fugitive emission baseline for both upstream and downstream sources using data from the 1995-1996 fiscal year.

Progress Made on Water Quality Issues

With opposition registered by both WSPA and the California State Water Resources Control Board (SWRCB), Governor Wilson vetoed proposed legislation that would have extended funding for the Bay Protection and Toxic Cleanup Program (BPTCP) for four more years. The BPTCP was designed to identify toxic hot spots in California’s coastal and bay waters, rank those sites and develop cleanup plans. WSPA opposed the extension of the BPTCP because the program has failed to produce a credible ranking system due to accurate, but incomplete data. It is expected that proponents of the vetoed legislation will seek to extend the original legislative deadlines and continue the discharger-based fee program by introducing new legislation next year.

Efforts by local activists to label the San Francisco Bay a dioxin hotspot have received little support from local air and water boards. Both agencies have been involved in an extensive program to understand dioxin levels in the bay and potential sources of contamination. WSPA has participated with these agencies in providing data and technical resources for their review. The results of this effort suggest that there is not a dioxin problem in the San Francisco Bay. Dioxin levels found in the Bay are characteristic with levels seen in other parts of the country and world. It is expected that the issue will remain a high priority for activists in 1998.

The California Toxics Rule (CTR), which establishes water quality criteria for toxic pollutants, has been issued by EPA, Region IX, and is being used by the SWRCB to develop implementation guidelines for the Enclosed Bays and Estuaries (EBE) plan. The EBE is the principal water quality regulation for any discharges into enclosed bays or estuaries in California. WSPA will submit comments from both Bay Area and South Coast refiners on the EBE plan by year’s end.

Accidental Release Prevention Program

WSPA’s Process Safety Management Group (PSMG) registered remarkable success this year by partnering with California’s Office of Emergency Services (OES) in an effort to provide the public with effective accidental release risk management data while giving industry an equitable regulatory climate in which to conduct business. The PMSG was formed last year in response to 1996 legislation which requires the OES to develop and implement a new federally-mandated chemical accidental release program for the state.

The PMSG-OES partnership led to postponement of the state chemical registration deadline until next year, giving facilities with multiple processing units more time to inventory covered chemicals.

"Environmental Justice" Issues Driving Environmental Policy

The South Coast Air Quality Management District (SCAQMD) brought the issue of "environmental justice" to the forefront in Southern California in 1997. The SCAQMD’s new board chair introduced a 10-point initiative calling for programs such as localized air sampling, rapid response task forces and the creation of community action teams to investigate environmental justice claims. WSPA responded by participating in a series of community meetings held by the City of Los Angeles, SCAQMD and EPA.

Proponents of "environmental justice" claim that poor and minority communities are disproportionately impacted by emissions from industrial and commercial sources because their residences tend to be near industrial sites. Supporters of the position have been active in many parts of the country in recent years.

While community awareness, outreach and emergency response planning have long been part of facility operations, environmental justice raises community activism to a new level. WSPA is aware of the heightened sensitivity surrounding this issue and will work in association with local facilities to enhance our communication efforts particularly with the communities adjacent to petroleum facilities.

1997 WSPA Annual Report
Refining