By the OGJ Online Staff
HOUSTON, July 10 -- The National Petrochemical & Refiners Association said Tuesday that the US Environmental Protection Agency's new source review program, as currently interpreted, threatens current and future energy supplies.
Bob Slaughter, NPRA general counsel, said NSR also discourages the installation of technology that could enhance energy efficiency and help produce cleaner fuels. He testified at an EPA hearing on NSR in Cincinnati.
Slaughter said the refining industry has dramatically reduced its direct and indirect emissions since Clean Air Act regulation began.
NPRA said that according to EPA data, between 1980 and 1996 the refining industry reduced its criteria pollutant air emissions by 74%. Recently, EPA said that between 1970 and 1999 total emissions of the Clean Air Act's six criteria pollutants decreased 31% at a time of considerable growth in both the economy and population.
Slaughter said, "EPA's current approach to NSR applicability makes it extremely difficult for refiners to determine when NSR permitting controls are required and leaves refiners in enforcement jeopardy unless they consider NSR for any and all operational changes.
"EPA has reinterpreted the program in recent years so as to enable the agency to allege that virtually any change a source might make requires NSR permitting and controls, even if emissions have not increased. NSR was never intended to impose new controls on older facilities simply because of their age and/or need for routine maintenance."
Slaughter said refiners need a flexible and efficient NSR program and permitting system to allow capacity expansions.
"The NSR program, as currently interpreted, cannot be relied upon to facilitate this growth and, in fact, discourages environmental improvement. At the same time, the refining industry also must implement extensive new environmental regulations in the next 3 to 5 years. The current state of the NSR program directly threatens the industry's ability to meet the deadlines for this suite of new regulations.
"The decision criteria for many NSR issues are so opaque, and have changed so many times that, in our view, it is neither fair, nor just, nor sound public policy to make them the excuse for an aggressive enforcement program."
NPRA proposed the NSR program be reformed by incorporating a market-based compliance alternative featuring a cap-and-trade mechanism based on performance standards. It said such an approach would encourage plant operators to find the most cost-efficient means of achieving emissions reductions.
