Transcript Regulation of Petcoke in Chicago

Regulation of Petcoke in
Chicago
Dave Graham and Jennifer Hesse
February 18, 2015
What is Petcoke?
• Petroleum Coke, or “petcoke,” is
a solid, carbon material derived
as a byproduct of the oil refining
process.
• Petcoke is typically used as a fuel
source in power plants and
cement kilns.
Why has petcoke been in the news?
• On August 30, 2013, a
resident posted a photo on
Facebook showing a cloud
of black dust.
• At the end of 2013, BP
completed the expansion of
its refinery in Whiting, IN,
resulting in a massive influx
of petcoke on Chicago’s
southeast side.
Where is petcoke stored?
• KCBX Terminals Company has
two sites along the Calumet
River with outdoor storage
piles.
• The Beemsterboer family
also had two sites, which
have since shut down.
• A small amount of petcoke is
also stored at Horsehead,
Corp., for use in their
manufacturing process
KCBX South – 10730 S. Burley
What are the health impacts
of petcoke?
• Breathing any dust, whether from petcoke, coal,
or other materials, can cause short-term health
impacts such as coughing, wheezing or
shortness of breath. Dust can also aggravate
respiratory conditions, such as asthma.
• There are no other known illnesses associated
with exposure to petcoke, according to a report
issued by the U.S. Environmental Protection
Agency (EPA), based on available scientific data.
How did the City respond to
public concern?
• Increased inspections
• Issued a public call asking residents to report petcoke issues
through 311 or by email
• Filed a lawsuit with the State Attorney General against one of
the facilities (Beemsterboer), resulting in the removal of all
petcoke from the site
• Created Rules and Regulations for Bulk Solid Materials
• Passed an ordinance to ban new petcoke transfer facilities &
require quarterly reporting from existing facilities
Why did CDPH issue Regulations?
• CDPH enforces the
Environmental Code and
regulates facilities that impact
the environment.
• Previously, there were no
specific rules for facilities
handling dusty bulk materials.
• The purpose of the regulations is to protect public
health and the environment by minimizing emissions
of airborne particulate matter.
Public Process
• Proposed rules were posted and opened for public
comment on December 19, 2013
• CDPH received verbal comments at a special public
community hearing held on January 14, 2014
• After an extended 50-day comment period, CDPH
received written comments from 60+ individuals
and organizations, totaling approx. 1600 pgs
What do the Regulations require?
• Full enclosure of petcoke and coal within 2 years,
plus stringent dust control measures in the interim
• Prohibition on visible dust beyond the property line
and opacity limit within the site
• Submission of a Fugitive Dust Plan describing dust
control measures at all facilities
• Continuous dust monitoring around all facilities
• Other best management practices to control dust
What is required for full enclosure?
• Coke and coal must be entirely surrounded by a
completely roofed and walled structure
• Must be designed, permitted and constructed in
accordance with the Building Code
When are outdoor piles allowed?
• Coke and coal may be stored outdoors while the
enclosure is being constructed, subject to an Interim
Fugitive Dust Plan
• Non-coke and coal materials may be stored outside
subject to all the requirements set forth in the
regulations
How will outdoor piles be controlled?
• The piles may not be
higher than 30 feet
• The piles must be sprayed
with water or other dust
suppressants as needed
• Piles may not be
disturbed during high
wind conditions without
effective controls
Other requirements for
both indoor & outdoor sites
• All conveyors must be covered or enclosed
• All transfer points must be controlled
• Must follow an approved Dust Control Plan
More requirements to
keep neighborhoods clean
• Vehicles must be tarped
• Facility roads must be
paved
• Trucks must be cleaned
• Stormwater runoff must be
managed
• Surrounding streets must
be swept
How can we be sure the controls
are working?
• Facility must install and maintain
real-time dust monitors with a
data logger to record all
readings
• Facilities must test visible dust
and opacity on a quarterly basis
• City will conduct random,
unannounced inspections
When do the rules take effect?
• Immediately (3/13/14): Ban on fugitive dust; roadway cleaning
& housekeeping, recordkeeping, monthly enclosure reports
• 90 days (6/11/14): Dust plan, enclosure plan, dust monitoring,
wind monitoring, vehicle covering, etc.
• Six months (9/13/14): Covered conveyors
• One Year (3/13/15): Paved facility roads
• Two Years from submission of Enclosure Plan (6/9/16):
Construction of buildings
What if a facility does not comply?
• Violators can be fined $1,000 - $5,000 per day for any air
pollution violation
• Repeat violators are subject to additional enforcement,
including shut-down of operations
What if a facility needs more time?
• The Rules include a variance process
• Facilities may apply for a variance from any requirement
other than enclosure
• Rules set forth criteria for issuing variances, including
consideration of public comments
• Variances may be granted only if they will not adversely
impact the surrounding environment and properties and
will not create a public nuisance
Variance Requests
• KCBX initially submitted a request for a variance
from 5 requirements:
- Pile height
- Covering of conveyors
- Winter operation of dust suppressant system
- Suspending disturbance of piles during
maintenance
- Runoff management
• Eight other bulk material facilities requested
variances from some of the rules, including the dust
monitoring requirement
Variance Decision
• After an extended comment period, CDPH received 12
comments on KCBX’s variance request, including detailed
comments from the Natural Resources Defense Council
(NRDC) and the Southeast Environmental Task Force
(SETF)
• With technical assistance from environmental consultant
CDM Smith, CDPH issued the variance determination on
December 9, 2014
• We denied the request to increase pile height and leave
certain conveyors uncovered. The other requests were
granted with conditions.
Enclosure Time Line
• KCBX also requested a 14-month extension of the
deadline for enclosing all petcoke and coal, from
June 9, 2016 to August 24, 2017.
• On February 16, 2015, CDPH informed KCBX that the
variance request was insufficient and would not be
granted at this time.
Next Steps
• KCBX asked for reconsideration of the variance
denial regarding conveyors. This request is under
review.
• Decisions will be made on the non-petcoke
variance requests after additional information is
received from the applicants
• CDPH will continue to inspect the facilities,
respond to complaints, and review dust plans
@ChiPublicHealth
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/ChicagoPublicHealth
www.CityofChicago.org/Health