CHAPTER 3 STATE AIR PROGRAM DEVELOPMENTS
| Jurisdiction | United States |
(Feb 2013)
STATE AIR PROGRAM DEVELOPMENTS
DCP Midstream, LP
Denver, Colorado former Director, Air Pollution Control Division Colorado Department of Public Health and Environment
Nancy Vehr
Wyoming Attorney General's Office
Cheyenne, Wyoming
Bryce Bird
Division of Air Quality
Utah Department of Environmental Quality
Salt Lake City, Utah
William Allison
Air Pollution Control Division
Colorado Department of Public Health and Environment
Denver, Colorado
PAUL R. TOURANGEAU is an Assistant General Counsel for DCP Midstream, LP, one of the nation's largest natural gas gathering and processing concerns, with operations in twenty-six states. Mr. Tourangeau is responsible for all environmental and safety legal matters in the company, among other subject matter areas. Prior to his current position with DCP Midstream, Mr. Tourangeau was Director of the Colorado Air Pollution Control Division responsible for all aspects of air quality regulation, policy permitting and enforcement in the state (2006-2011). Mr. Tourangeau also served as General Counsel for environmental, health and safety matters for Duke Energy Corporation (2002-2006), as in house counsel for Kinder Morgan, Inc. and Duke Energy Field Services (1997-2002), as Assistant Attorney General on environmental issues for the Colorado Attorney General (1992-1997), and in private environmental law practice in California (1989-1992). Mr. Tourangeau is a graduate of the University of California Hastings College of the Law (1989), and the University of California at Davis (1984, B.A. Economics).
NANCY VEHR is a Senior Assistant Attorney General in the Water and Natural Resources Division of the Wyoming Attorney General's Office. Since 2003, Nancy has represented the Wyoming Department of Environmental Quality, Air Quality Division. Nancy graduated from Creighton University's School of Nursing in 1984 and worked as an intensive care nurse until she received her J.D. from the University of Wyoming in 1999. Prior to her current position at the Attorney General's Office, Nancy represented Wyoming Medicaid, the Office of State Lands and Investments, the Board of Land Commissioners, and the State Loan and Investment Board.
BRYCE BIRD is head of the Utah Division of Air Quality (DAQ) in Salt Lake City. He has an extensive history in working to resolve issues that impact groups with differing points of view in developing a state implementation plan for very fine particles known as particulate matter 2.5 (PM 2.5). He began his career at DAQ in 1991, after completing a degree in biology at the University of Utah. He worked as a compliance inspector for seven years, then later as the manager of the Hazardous Air Pollutants Section and Compliance Branch, before being appointed to head the Planning Branch in 2007. He also serves in the Utah National Guard where he has been a member of the 23rd Army Band for 24 years.
WILLIAM ALLISON, since August 2011, has been the Director of the Colorado Air Pollution Control Division of the Colorado Department of Public Health and Environment in Denver, Colorado. He has a broad background in Colorado environmental issues. Prior to joining the agency, Will represented the State of Colorado in matters relating to air quality, water quality, and hazardous and solid wastes. He managed the Environmental Quality Unit within the Natural Resources and Environment Section of the Colorado Attorney General's Office. Prior to joining the State of Colorado, Will was in private practice in Washington, D.C.
State Air Program Developments - Colorado
Air Quality Issues Affecting Oil, Gas and Mining Development in Colorado
— William Allison, Director, Air Pollution Control Division, Colorado Department of Public Health & Environment
Introduction
Colorado is a state of extraordinary and diverse natural beauty. Our mountains, streams, wildlife and clean air support not only healthy lifestyles, but a healthy recreation and tourist economy. Colorado is also home to abundant energy resources including natural gas, oil, coal, wind and solar. In particular, there has been tremendous growth in domestic oil and gas development in recent years, and Colorado and adjacent Western states have been at the forefront of this important domestic resource. Hydraulic fracturing and advances in directional drilling have enabled operators to increase both the geographic and volumetric scope of development. While much of the focus and debate has been on potential water impacts associated with this activity, attention is increasingly focusing on air quality issues. Burning natural gas results in fewer emissions than coal, yet still presents its own air quality issues. Oil and gas emissions increase concentrations of criteria pollutants such as ozone, hazardous pollutants such as benzene, and non-traditional pollutants such as greenhouse gases. The continuing expansion of oil and gas activity is creating many more emission sources, particularly in the Piceance Basin on the Western Slope, and the Denver-Julesburg Basin northeast of Denver. Development is occurring closer to heavily populated communities that may not have a history and familiarity with the oil and gas industry. Moreover, many of these communities are located in Colorado's existing ozone non-attainment area. These and other important considerations highlight the need for responsible development, utilizing best management practices and cost effective strategies to minimize air emissions.
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Colorado's Oil and Gas Regulatory Framework
In Colorado, oil and gas oversight is shared between the Department of Natural Resources' Oil and Gas Conservation Commission (OGCC) and the Department of Public Health and Environment's Air Pollution Control Division (Division). 2007 legislation promotes collaboration amongst the two agencies on a variety of oil and gas issues, including odors, citizen complaints, and environmental performance. Colorado, HB 07-1341. The OGCC is authorized to foster the responsible development of oil and gas in a manner consistent with the protection of public health, safety, and welfare, including protection of the environment and wildlife. Colorado, HB 07-1341, Sec. 2, amending C.R.S. § 34-60-102(1). The Division has a complementary role in regulating oil and gas operations. The Division is responsible for implementing regulations promulgated by the Colorado Air Quality Control Commission (AQCC). C.R.S. § 25-7-111(1). This includes responsibility for permitting and inspecting air pollution sources. Between the CDPHE and OGCC, there is a comprehensive regulatory framework. While this framework can be complex and frustrating at times, it is necessary to protect public health and the environment, creates a level playing field in the industry, and has been developed with diverse input and support from across Colorado.
The explosive growth of oil and gas development in the West presents significant resource challenges for state agencies. Permitting and compliance inspections must keep pace with growth, while planning and policy analysis must look ahead at ways to implement cost-effective strategies to meet current and future standards. In 2012, Division oil and gas permitting actions increased approximately 30% from 2011 levels, which in turn were about double 2008 levels. Oil and gas sources now account for over 50% of Colorado's air permitting.
The CDPHE has taken several steps to address this challenge. As one example, the Division has created a general permit that covers engines (reciprocal internal combustion engines, or RICE). Colorado Air Pollution Control Division, GP-02 (8/1/11); see also, Reg. 3, Part B, Sec. III.I (5 CCR 1001-5). Almost 40% of our individual permit applications have been for engines, and this general permit simplifies and reduces the permitting process for that equipment. The Division also has general permits for condensate storage tank batteries and produced water storage tank batteries. In addition, in 2012 the Division added 11 oil and gas permit engineers and field inspectors to help meet the increasing regulatory demands.
Regional Haze
Oil, gas and mining development in Colorado will be impacted by the 2010 "Clean Air - Clean Jobs Act" (CACJA). Colorado, HB 10-1365, adding Part 2, of Article 3.2, Title 40 C.R.S. This landmark legislation, passed in 2010 with bipartisan support, was the first of its kind in the nation. The Act promotes the retirement of older, less efficient coal burning power plants with natural gas and other cleaner sources of energy. The legislation was largely spurred by air quality issues such as the Denver/North Front Range ozone non-attainment area, haze in national parks and wilderness areas, and tightening emission standards that are likely in the near future.
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The Act directed Black Hills Energy and Colorado's largest power provider, Public Service Company of Colorado (d/b/a Xcel Energy), to evaluate shutting down older coal-fired power plants, converting plants to natural gas operation, and adding advanced pollution control technology to the state's largest coal-burning power units. C.R.S. § 40-3.2-204.
Plans were developed under the CACJA and combined with other emission reduction strategies developed pursuant to the federal Regional Haze Rule. These plans were then included in Colorado's Regional Haze State Implementation Plan. The regional haze plan is designed to achieve gradual and continuous visibility improvements in areas of great scenic importance, such as National Parks and Wilderness Areas. Colorado has 12 areas that fall under the program, including Rocky Mountain National Park, Mesa Verde National Park, the Great Sand Dunes, and the Black Canyon of the Gunnison.
Colorado's Regional Haze SIP was crafted with wide participation from industry and environmental groups. The...
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