Workshop D Air Permitting & Compliance … Air P rmitting & Compliance … From R om Regulat gulators t to R Regulat gulated -- d -- Priceless Insights on Navigating Priceless Insights on Na vigating the R the Regulat gulatory Process & Process & Current Challenges Current Challenges Wednesda dnesday, July 19, 20 July 19, 2017 1 p.m. t 1 p.m. to 2:30 p.m. 2:30 p.m.
Biographical Information Adam Ward, Vice President Environmental Affairs, Sustainability and Energy Policy American Municipal Power, Inc., 1111 Schrock Rd. Ste. 100, Columbus, OH 43229- 614.540.0946 award@amppartners.org Adam has over 21 years of combined experience both as a regulator and as a regulated entity. He currently directs the Environmental Affairs program and Sustainability efforts at American Municipal Power, Inc. His responsibilities encompass maintaining compliance with state and federal requirements, policy development and implementation, and regulatory filings. Sustainability efforts include a green power purchasing program, REC certification for AMP hydro resources and distributed energy resource assistance. Previously, Adam’s career at Ohio EPA included various positions within the Air Pollution Control program and central Ohio region managing compliance, enforcement, permitting, and state implementation planning programs. In addition, he has participated in countless Agency improvement efforts with an emphasizing efficiency, transparency and implementing practical solutions. Ward holds a bachelor’s degree in environmental health from Bowling Green State University; a master’s degree in environmental, safety and emergency management from the University of Findlay; and is a Certified Public Manager through the Ohio State University John Glenn School of Public Affairs. Todd Scarborough, Senior HES Professional, Marathon Pipe Line LLC 539 S. Main St., Findlay, OH 45840 614-507-9394 tscarborough@marathonpetroleum.com Mr. Scarborough has 26 years of experience in the air pollution regulatory field. He is now using his knowledge and experience to lead all air permitting and compliance efforts at Marathon Pipe Line LLC in Findlay Ohio. Recently, Marathon Petroleum Corporation conducted an internal stakeholder’s survey and credited Mr. Scarborough with “moving Marathon Pipe Line’s air permitting and compliance program forward by light years.” Previously he worked as an Environmental Specialist 3 (Senior Environmental Specialist) with Ohio EPA’s Central District Office. His routine district office responsibilities included extensive interaction with various internal and external stakeholders while completing the review of air permit applications, drafting of air permits, performance of compliance inspections, witnessing of emissions testing and initiation and resolution of enforcement actions. For the past decade, Mr. Scarborough has lead and completed complex permitting assignments, significant civil litigation, and criminal enforcement action. While at Ohio EPA, Mr. Scarborough was actively engaged and held leadership positions in Ohio EPA’s efforts to improve overall quality and efficiency of its processes and work environment. These efforts include DAPC’s Permitting and Enforcement Steering Committee, DEAL Review Committee and multiple Permitting Processing Efficiency Committee projects. Mr. Scarborough is a graduate of The Ohio State University (B.A. Physics).
Air Permitting and Compliance – Priceless Insights on Navigating the Regulatory Process and Current Challenges Adam Ward – VP Environmental Affairs, Sustainability and Energy Policy
Topics • Context • Big Picture Activity • Looking to the Future • Applications & Permits • Compliance & Enforcement
About AMP and Our Members • AMP is the wholesale power supplier and services provider for 135 member municipal electric systems in 9 states • AMP members are units of local government, they are municipally owned and governed • Our members serve more than 650,000 customers • 2016 system peak: 3,402 MW • Total assets of more than $6.7 billion • Since 2000, all AMP construction project financing and entity ratings have been in the “A” category
AMP Member Footprint
Regulator to Regulated: Common Questions How was your transition to the private sector? What’s different about your job now? What was/is it like on the other side? This presentation contains business confidential information
Federal Activity • New Administration is taking a 180 degree turn on many issues • Executive Orders – Permit Streamlining Action Plan – Evaluation of existing regulations • Clean Power Plan • Ozone This presentation contains business confidential information
Climate Related Activity • Regional Transmission Organizations (RTO) PJM in this region • Companies – RE100, Sustainability Goals • States and Cities • Carbon Tax
Looking to the future • New perspective on regulatory burden is refreshing, but… • Cooperative Federalism = more unfunded mandates? • As funding is cut (either state or fed), difficult decisions will need to be made – Ohio EPA is currently under excellent leadership and direction – Be available to provide assistance and feedback This presentation contains business confidential information
Working with Agencies • Balance is critical • Many regulations can be – Subject to interpretation – Unnecessarily burdensome – Complicated or confusing • Fair interpretation by regulatory agencies is critical This presentation contains business confidential information
Application • Notify Agency of deadlines – ( Be realistic, if the permit is a renewal, or not relevant, don’t rush it) • Compile a good application – cutting corners only slows the process • Assignment of application • Schedule periodic calls with the permit staffer; i.e. weekly, bi-weekly • Answer questions honestly and straightforward This presentation contains business confidential information
Issued Permit • Most permits are not cookie cutter • Be aware of Voluntary Limits • Terms and Conditions (pre-issued permit) • Seek legal advice if any questions arise during application or permit review This presentation contains business confidential information
Compliance • Recognize that you are a “bean” • Be prepared • Does the inspector know your process? • Follow the permit and applicable rules • Courtesy, honesty and straightforward answers • Follow up with records if not available This presentation contains business confidential information
Enforcement • Direction is dictated by leadership and USEPA • Ohio EPA needs to follow USEPA policies and justify when they veer away from protocols • State, Federal and Attorney General are different organizations and measure success differently
Balance • State Agencies need to operate in a functional and realistic manner – Balance strict adherence to regulations and policies, with practical implementation • Job is not easy and discretionary judgement does happen • Not getting a balanced/fair shake? …then speak up • Be polite, persistent and organized
Questions? Adam Ward (c) 614.325.4662 (o) 614.540.0946 award@amppartners.org
Air Permitting and Compliance – Priceless Insights on Navigating the Regulatory Process and Current Challenges 2017 MEC Conference Todd Scarborough MPL Air Subject Matter Expert
Overall Goals and Objectives Share perspectives from two holistic experiences Provide straightforward and simple guidance Describe real-world examples scaling the summit Focus on positive experiences Empower through sharing sound strategies 17
What is the Regulatory Role? Understanding perspective Review permit applications Issue permits Provide compliance assistance –USEPA vs. States Review routine facility reports Perform inspections and attend stack tests Execute enforcement should a facility fail to comply 18
Permitting Drives Compliance Why is the permit so important? Identifies requirements Identifies applicable rules Defines compliance strategy Focus of compliance efforts 19
Pitfalls to Avoid/Common Misconceptions The three U’s …../Unlawful/Unreasonable/Unnecessary Title V PTE vs. NSR PTE Changing limits in a Title V permit Conflicting limits Evolving BAT Applicable rules New requirements 20
Permit Applications/Review Process The critical process Permittee certainly has a say in what the permit says – within reason Permitting process involvement is key Many opportunities are provided for input –Propose terms and conditions –Request review of pre-draft versions –Administrative permit modifications – great for refining permit terms –Appeal rights 21
Report Review Process The most often-missed opportunity Reports are reviewed in accordance with permit requirements –Research “example” reporting templates for Title V, synthetic minor and non-Title V facilities –Send draft reports for review to regulators? –Most regulators will provide advice –Relationship building 22
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