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Texans Breathing Easier After Big EPA Enforcement Settlement
The recent enforcement action against a Port Arthur, Texas chemical manufacturer once again proves the EPA’s dedication to getting industrial facilities to clean up their act, and their community’s air, or face penalties and costly improvements. The company, which operates 24 hours a day, 365 days a year, has the capacity to produce 1.4 billion pounds of ethylene and 700 million pounds of propylene each year. In the production process, the hazardous air pollutants (HAPs) benzene and 1,3 butadiene are formed and emitted. Port Arthur is considered to be a vulnerable community that is disproportionately impacted by air pollution from industrial sources in the area.
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In the late March announcement, the EPA alleged violations of the Clean Air Act (CAA) at the company’s three steam-assisted flares that resulted in “excess” emissions of smog-forming volatile organic compounds (VOCs) and HAPs including benzene, which is considered a carcinogen by the EPA. Specific violations cited included:
- New Source Review/Prevention of Significant Deterioration (NSR/PSD) and Minor New Source Review, 40 CFR Parts 51 and 52
- New Source Performance Standards (NSPS), 40 CFR. Part 60, Subparts A and VV
- National Emission Standards for Hazardous Air Pollutants (NESHAP), 40 CFR Part 61, Subparts A and V
- National Emission Standards for Hazardous Air Pollutants (NESHAP), 40 CFR Part 63, Subparts A, H, and UU, G
- Title V and the Title V permits at the company’s facilities
- Texas State Implementation Plan (SIP) requirements
In the settlement, the company will pay a $350,000 penalty, but will also implement a range of operational improvements that will effectively reduce VOC and HAP emissions by an estimated 1,880 tons per year, while greenhouse gas (GHG) emissions will drop about 69,000 tons per year of CO2 equivalents. The improvements include:
- Preparation of an enforceable flare waste gas minimization plan updated annually,
- Preparations of a root-cause analysis and corrective action for reportable flare incidents,
- Installation of a Flare Gas Recovery System (FGRS) with maximum recovery capacity of 4.5 million standard cubic feet per day (scfd) of process gas that is operational a high percentage of the time,
- Flare improvements that include compliance with regulations, new equipment, monitoring systems, automated control systems for high efficiency, and specific limitations and requirements for flares,
- Leak detection and repair (LDAR) including compliance with regulations, and an enhanced LDAR Program,
- Benzene waste operations NESHAP (BWON) requirements including a third-party compliance audit, new control devices that are more stringent than regulations require, and benzene sampling, analysis and corrective action, and
- Continued use of fence-line monitoring, with investigation and corrective action requirements when benzene and 1,3 butadiene emissions exceed thresholds.
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According to the EPA, the flare improvements have been implemented at a cost of approximately $16 million and the LDAR improvements will cost about $28 million when complete. In addition, the company will also implement two mitigation projects within the Port Arthur community. The first will cost the company about $2 million and will retrofit, repower, replace, and/or retire diesel vehicles owned and operated by the City of Port Arthur. The second project will include the purchase and installation of environmentally beneficial technologies to reduce energy demand in low-incomes homes and will cost the company $350,000.