United States Environmental Protection Agency Office of Enforcement and Compliance Assurance (2201A) EPA 300-N-99-014 C/EPA Enforcement Alert Volume 2, Number 9 Office of Regulatory Enforcement October 1999 Proper Monitoring Essential to Reducing 'Fugitive Emissions' Under Leak Detection and Repair Programs The Clean Air Act requires refineries to develop and imple- ment a Leak Detection and Repair (LDAR) program to control fugitive emissions. Fugitive emissions occur from valves, pumps, compressors, pressure relief valves, flanges, con- nectors and other piping components. Comparison monitoring con- About Enforcement Alert "Enforcement Alert" \ published periodically by the Office of Regulatory Enforcement to inform and educate the public and regulated community of important environmental enforcement issues, recent trends and significant enforcement actions. This information should helpthe regulated community anticipate and prevent violations of federal environmental law that could otherwise lead to enforcement action. Reproduction and wide dissemination of this newsletter is encouraged. See Page 4 for useful EPA Websites and additional resources. Eric V. Schaeffer Director, Office of Regulatory Enforcement Editor: Virginia Bueno (202) 564-8684 bueno.virginia@epamail.epa.gov (Please email all address and name changes or subscription requests for this newsletter.) ducted by the U.S. Environmental Protection Agency's (EPA) National Enforcement Investigations Center (NEIC) shows that the number of leaking valves and components is up to 10 times greater than had been re- ported by certain re- fineries (see Table, ^^^^^" Page 2). EPA believes this great disparity be- tween what refineries are reporting and what EPA is finding may be attributable to refiner- ies not monitoring in the manner prescribed in 40 CFR Part 60, Appendix A, Method 21. Federal regulations require refiners to rou- tinely monitor for leaks and to fix any equip- ment found leaking. Failure to identify leaking equipment re- sults in necessary repairs not being made and continuing fugitive emis- sions of volatile organic chemicals (VOCs) and other hazardous chemi- cals. EPA estimates that the failure to identify and repair leaks at petro- leum refineries could be resulting in additional VOC emissions of 80 mil- lion pounds annually. VOCs contrib- ute to ground-level ozone, a principal component of smog, which can cause significant health and environmental problems. PA estimates that leaks not found and repaired could be resulting in additional volatile organic chemical emissions of 80 million pounds annually. What the Law Requires Specific requirements for refinery fugitive emissions are identified in 40 CFR Part 60, New Source Perfor- mance Standards (NSPS), and 40 CFR Parts 61 and 63, National Emission Standards for Hazard- ous Air Pollutants (NESHAP). Many State and local air agencies incorporate federal requirements but some have estab- lished more stringent requirements as au- thorized by law. The various regulations re- quire refineries to implement an LDAR program to reduce fu- gitive emissions from valves, pumps, com- pressors, pressure re- ^^^^^^_ lief valves, flanges, connectors, and other piping components. Valves are usually the single larg- est source of fugitive emissions. Emis- sions from any single piece of equip- ment are usually small. Based on the large number of equipment compo- nents that can leak and are subject to LDAR requirements, however, cumu- lative emissions can be very large. To obtain a proper reading of emissions from leaking components the monitor- ing equipment must be calibrated cor- Continued on page 2 This publication is found on the Internet at http://www.epa.gov/oeca/ore/enfalert ------- Enforcement Alert Continued from page 1 rectly and held at the component interface where leakage could oc- cur (e.g., at the seal be- tween the valve stem and housing) for a suffi- cient length of time to obtain a valid measure- ment. LDAR Prog rams Should Consist of Several Processes LDAR programs are generally comprised of four processes. Regula- tions vary but usually require refineries to: • Identify compo- nents to be included in the program; • Conduct routine monitoring of identified components; • Repair any leak- ing components; and • Report monitor- ing results. Compliance issues associated with each of these processes have resulted in numerous enforcement actions by EPA Regional offices, State agencies, or local air boards, depending on the specific regulations. Common viola- tions include: • Failure to identify process units and components that must be monitored; • Failure to follow prescribed monitoring procedures; • Use of incorrect or expired calibration gasses; OCTOBER 1999 Comparative Monitoring Results Refinery A B C D E F G H I J K L M N 0 P Q Company Monitoring: Valves/Leaks 7,694/170 7,879/223 3,913/22 2,229/26 5,555/96 42,505/124 14,307/226 20,719/736 5,339/9 8,374/78 6,997/101 12,686/26 4,160/40 5,944/29 7,181/112 8,532/203 6,640/36 Total 170,717/2,266 NEIC Monitoring: Valves/Leaks 3,363/354 3,407/216 2,008/108 1,784/24 2,109/112 3,053/53 3,852/236 3,351/179 2,754/84 2,981/55 1,658/114 3,228/125 1,926/222 2,487/106 2,897/130 4,060/181 2,608/74 47,526/2,372 Leak Rate: Company/ NEIC (%) 2.3/10.5 2.8/6.3 0.6/5.4 1.2/1.4 0.7/5.3 0.3/1.7 1.6/6.1 3.6/5.3 0.2/3.1 0.9/1.8 1.4/6.9 0.2/3.8 1.0/11.5 0.5/4.3 1.6/4.5 2.4/4.5 0.5/2.8 1. 3/5.0 (avg) Emissions Rate: Company/ NEIC (Ib/hr) 38.8/106.6 44.0/73.5 18.3/90.1 15.5/17.1 50.7/125.8 154.7/382.3 122.2/369.7 332.2/469.7 16.9/76.6 50.8/78.5 56.1/201.2 34.9/84.0 25.7/192.2 26.1/112.3 60.8/140.9 98.8/167.5 30.5/87.5 1.177.0/ 2,775.5 Potential Emissions: Undetected Leaks (Ib/hr) 67.8 29.5 71.8 1.6 75.1 227.6 247.5 137.5 59.7 27.7 145.1 49.1 166.5 86.2 80.1 68.7 57.0 1,598.5 • Failure to repair components within specified timeframes; and • Failure to submit quarterly re- ports and maintain appropriate cali- bration and/or monitoring records. Refinery Monitoring Reports; What EPA is Finding During the past several years, NEIC has monitored for leaking com- ponents at refineries. For 17 facilities investigated by NEIC, the average leak rate reported by the facilities was 1.3 percent. The average leak rate de- termined by NEIC and confirmed by the facilities was 5.0 percent. One ex- planation for this difference in leak rates may be found in a report pub- lished by the Bay Area Air Quality Management District ("Rule Effec- tiveness Study"). The Bay Area Air Quality Management District deter- mined that when valves were in- spected at a distance of one centime- ter (0.4 inches) from the component instead of at the interface with the component, as the regulations require, Continued on page 3 ------- Enforcement Alert Continued from page 2 57 percent of the leaking valves would be missed when monitoring above the 500 ppm level. Fugitive emissions account for 22 percent of all emissions from non-re- fineries but account for more than 55 percent of all refinery emissions iden- tified in the 1996 Toxic Release In- ventory (TRI). Since TRI includes only "reportable" hydrocarbons, total fugitive emissions were significantly larger than the 3 3 million pounds then identified by reporting refineries. The failure to identify leaks means that they remain unrepaired and will continue to release VOCs and hazard- ous substances into the atmosphere. Emission estimates using a 50/50 split between components in gas/light liq- uid service (see Table, Page 2) sug- gest that these 17 refineries' annual fugitive emissions could be more than 6,000 tons per year greater than pre- viously believed. Extrapolating this dif- ference to all refineries larger than the smallest refinery investigated by NEIC also suggests that there may be an additional 80 million pounds of VOCs EPA Policies for Reducing, Eliminating Penalties for Self-Policing EPA has adopted two policies designed to encourage the regu- lated community to comply with environmental laws. For more information, see EPA's Audit Policy Website at: http://www.epa.gov/oeca/ auditpol.html, and the Small Busi- ness Policy at: http:// www.epa.gov/oeca/smbusi.html. being emitted each year because re- finery leaks are not being identified properly and repaired promptly, as re- quired by LDAR programs. Signifi- cantly and as recognized by industry, fugitive emissions can be reduced by up to 90 percent if leaks are detected and repaired in a timely manner. Regulatory Impacts of Inadequate Fugitive Monitoring By not fully identifying all leaking components, refineries are likely caus- ing the unnecessary release of excess hydrocarbons. The impacts of these additional hydrocarbon releases may result in: • Additional VOC emissions that could worsen local or transboundry smog problems; • Under reporting of fugitive emissions on the annual Toxic Report- ing Inventory; • Under reporting of various TRI chemicals on annual Form R sub- missions; and • Delayed or denied permits for expansion. Most LDAR regulations allow for decreased monitoring frequency if cer- tain performance standards are con- sistently achieved. Monitoring fre- quency is decreased from quarterly to annual monitoring if less than two per- cent of the valves within a process unit are found leaking. Conversely, if greater than two percent of the valves are found to be leaking, monitoring must be conducted quarterly. EPA monitoring showing a greater than two percent leak rate has resulted in re- fineries reverting back to quarterly monitoring. OCTOBER 1999 Improving Leak Detection Monitoring Reliability Although not required under cur- rent LDAR programs, several prac- tices appear to improve the reliability of monitoring data and LDAR com- pliance: • Energetic LDAR coordina- tors (advocates) with the responsibil- ity and authority to make things hap- pen; • Continuing education/re- fresher programs for plant operators. Plant operators can have a major im- pact on LDAR compliance; • Diligent and well-motivated monitoring personnel; • Use of a lower than required leak definition. Several refineries use a leak definition lower than the regu- latory limit. For example, several re- fineries use a500 ppm limit ratherthan the regulatory limit of 10,000 ppm; • More frequent monitoring than required. Rather than monitor- ing annually, some refineries monitor quarterly. More frequent monitoring also may permit lower emissions to be reported on the annual Toxic Re- porting Inventory and/or Form Rs; and • Established Quality Assur- ance/Quality Control procedures. Sev- eral refineries have initiated a program to check the monitoring results sub- mitted by the monitoring team (in- house or contractor). EPA's Office of Enforcement and Compliance Assurance is encouraged by efforts currently underway by the National Advisory Committee on En- vironmental Policy and Technology (NACEPT) petroluem refining workgroup to find more cost-effec- tive ways to identify significant leaks Continued on page 4 __ 3 ------- c/EPA United States Environmental Protection Agency Office of Regulatory Enforcement 2248A Washington, D.C. 20460 Official Business Penalty for Private Use $300 Continued from page 3 through new technology that allows for quick identification of the most sig- nificant losses. Meanwhile, however, the regulated industry is expected to comply fully with existing LDAR re- quirements. Contact Ken Goring, National Enforcement Investigations Cen- ter, (303)236-6658;Email: garing.ken@epa.gov; Tom Ripp, Office of Compliance, Manufac- turing, Energy and Transportation Division, (202564- 7003; Email: ripp.tom@epamail.epa.gov; or Jim Jackson, Office of Regulatory En- forcement, Air Enforcement Divi- sion, (202) 564-2002;Email: jackson.james@epamail.epa.gov. ERA'S Y2K Enforcement Policy EPA's "Y2K Enforcement Policy is designed to encourage the expeditious testing of computer associated hard- ware and software that may be poten- tially vulnerable to Y2K problems. Under this policy, which was pub- lished in the Federal Register on March 10, 1999, EPA intends to waive 100 percent of the civil penalties and rec- ommend against criminal prosecution for environmental violations resulting from Y2K testing designed to identify and eliminate Y2K-related malfunctions. To receive the policy's benefits (e.g., waiver of penalties due to testing), regu- lated entities must address specific cri- teria and conditions identified in the policy. For more about the Y2K Enforcement Policy, contact Gary Jonesi, Office of Regulatory Enforcement, (202) 564-4002 or E- mail: jonesi.gary@jepa.gov. Useful Websites EPA's Technical Web site for Information Transfer and Sharing Related to Air Pollution Topics: http://www.epa.gov/ttn/ Toxics Release Inventory (TRI): http://www.epa.gov/opptintr/tri/ EPA Home Page: http://www.epa.gov/epahome National Enforcement Investigations Center: http://www.epa.gov/oeca/oceft/neic/ index.html EPCRA Hotline: 1-800-424-9346. For callers in the DC area, please call (703) 412-9810. Also, the TDD is (800) 553-7672. Office of Regulatory Enforcement http://www.EPA.gov/oeca/ore.html EPA Compliance Assistance Centers: http://www.epa.gov/ oeca/mfcac.html Small Business Gateway: http://www.epa/gov/smallbusiness Recycled/Recyclable. 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