Things to Know About the EPA’s New Rule for Oil Refineries

The EPA’s updated Clean Air Act standard is putting major burdens on power production and manufacturing plants across the US. While coal powered plants have been the most talked-about target, oil refineries are also under scrutiny. The Clean Air Act’s goal is to reduce the toxic burden on “fenceline” communities that sit next to major oil refineries. With over 140 major refineries in the US, there is plenty of pushback from refinery owners on just how strict and expensive these new regulations will be.

Here are the top things you should know about these new crucial oil refinery rules:

1. Oil refineries that border fenceline communities will be required to monitor AND report levels of airborne chemicals, including benzene. The new rule requires continuous monitoring of airborne chemical concentrations, even at very low levels, using sensors that surround the refinery. The equipment needed to monitor and control emission output is of great concern to refineries across the country since these new tight limits on toxic air pollution come with a high price while providing few, if any, health benefits.

2. The EPA has set out incentives for refineries to fix pollution issues quickly and provides for alternative monitoring methods that will allow for real-time monitoring and reporting, but many refineries feel that is not enough. The EPA will now require reports every three months, instead of twice a year as before, on emission levels of these chemicals. If any dangerous levels of emissions are detected, refineries are required to take corrective action, which can be costly for maintenance plans and repairs since minimal emissions come not only from smokestacks, but also gas flares, pressure relief devices and even storage tanks.

3. The new rules would require some unprecedented changes for oil refineries, including installing technology to measure benzene at the fenceline and making those data publicly available within six months. The EPA’s one-size-fits-all approach to emissions monitoring will require every facility in the U.S., regardless of risk, to install costly monitoring equipment. It’s important to note that most industry groups feel this proposal is not only unnecessary but overly burdensome since most refinery emissions are already below levels that would endanger people’s health.

4. The estimated initial total capital investment, as suggested by the EPA, is said to be approximately $240 million with $40 million of operating costs a year for all refineries. Industry representatives contest this figure, claiming these new strict standards would cost the refining industry in excess of $1 billion, plus tens of millions in annual operating costs. Maybe the greatest concern for everyone in the oil refining industry is the fact that the health benefit gains are insignificant by any measure, meaning this rule will have financial impacts to the economy with essentially no measurable benefits.

Contact Industrial Access today to set up a maintenance plan that can help keep costs down with these new strict standards set forth by the EPA.