Oklahoma’s oil, gas and power plant industries have an opportunity to provide feedback on the state’s plans to comply with the federal Clean Air Act by 2026.
Some energy industry leaders in the state have already indicated they are concerned about costs.
This week, the Oklahoma Department of Environmental Quality issued a 60-day information gathering period, encouraging input from stakeholders in developing the state plan and learning how these regulations could impact their industries.
“We don’t want a federal implementation plan in Oklahoma,” said Kendall Stegmann, director of the Oklahoma DEQ Air Quality Division. “We want to design a plan that is specific to our state and that will help the people of Oklahoma.”
The Environmental Protection Agency’s new requirement requires greenhouse gas emissions to be reduced by 95% within the two-year period, which could lead to facility closures within the industries if energy companies decide they cannot meet the new standards .
The department hopes to gain insight from industry stakeholders, state agencies, tribal partners, community organizations and Oklahomans on how to develop a state plan to meet EPA requirements.
“Right now, these requirements are law,” Stegmann said. “It’ll take a little bit [of time] for the government, and the new government, to get their feet on the ground and figure out which direction they want to go. But once we get that direction as guidance, we will act accordingly.”
The law gives the EPA the authority to create new standards to regulate what it calls “affected facilities,” but gives states the power to apply less stringent standards to certain existing sources. These regulations primarily affect newly constructed, modified or reconstructed sources of air pollutants and emissions, said Melanie Foster, manager of the Oklahoma DEQ’s environmental program.
“ODEQ is receiving and requesting delegations to enforce these,” Foster said. “Typically, states must create some type of regulation to set state standards, and states’ compliance will vary based on emissions guidelines.”
Although the presidential election could make changes to the law’s requirements, Oklahoma DEQ officials said the department has begun the development process in efforts to meet the two-year timeframe and would adjust plans as necessary as President-elect Donald Trump takes office.
“We are moving forward with our state mitigation plan because we are on a tight schedule,” Stegmann said.
Oil and gas
There are a total of 172,477 active wells operating in Oklahoma. The oil and gas industry controls 124,286.
The new state plan would identify “super emitters” of greenhouse gases and mitigate leaks in the oil and gas industry.
Facilities in the oil and gas industry fall into four categories: well sites, central tank batteries, compressor stations and other types of facilities. The department wants industry stakeholders to provide information on the number of facilities, estimated methane emissions, the sum of emissions and the type of plant equipment found in each category. The agency also asks about the economic impact of rules, such as how many closures are expected, how many jobs will be eliminated and how much revenue will be lost.
The department is also soliciting feedback from community stakeholders on the proximity of facilities to homes, schools and workplaces. Information is also requested on the health, environmental and economic impacts of each facility, such as employment and spillovers.
According to the DEQ, the sector accounts for 16.7% of the workforce.
“Oklahoma’s oil and gas industry is a critical source of employment and economic activity,” said Erin Hartfield, an Oklahoma DEQ spokesperson. “Additionally, many oil and gas sector jobs are located in rural parts of the state, leading to an even greater degree of economic dependence on this sector in economically vulnerable communities.”
Despite this, the oil and gas facilities also emit several air pollutants, mainly due to socio-economically disadvantaged communities, the Oklahoma DEQ found, making them subject to the new changes added to the Clean Air Act.
“Balancing the economic and environmental aspects of any regulatory action is a challenge,” Hartfield said. “DEQ is seeking feedback on both the environmental benefits of reducing emissions and the economic costs of new regulations.”
Electric power plants
Many power plants operate in the state, six of which run on coal and seven on gas, said Leon Ashford, showing a map showing a total of about 25 such facilities.
“Electric generators provide the energy needs for many facets of our lives, but emit large amounts of greenhouse gases in the process,” says Hartfield. “ODEQ is seeking feedback on both the environmental benefits of reducing emissions and the economic costs of new regulations.”
Increments for progress (IoPs) ensure steady progress toward compliance while providing transparency. Increases require deadlines at the state’s discretion, based on each unit’s unique circumstances. A final audit is submitted to the air pollution control agency, in this case the Oklahoma DEQ, at the earliest interval between steps, along with a compliance deadline.
“Increases to progress for units in the medium and long term appear appropriate to meet compliance,” said Leon Ashford, Oklahoma DEQ environmental programs specialist.
The next step would be the implementation of emission reduction plans.
Ashford said the EPA has developed a four-point plan to address reliability throughout the implementation period: rule structure, RULOF provisions, compliance flexibility and reliability mechanisms.
“If we request information from the power stations to find out what their plans are… we can make more informed comments,” Ashford said.
The EPA regulations do not include combustion turbine facilities under the four-point plan regulatory structure. Oklahoma has about a dozen power plants that use turbines, according to the Oklahoma DEQ. However, the EPA is interested in more information about existing natural gas-fired turbines to plan a more comprehensive approach in the future.
Although state plans generally require the same “rigorous standards” as EPA requirements, the Clean Air Act allows regulations to take into account factors based on the Consideration of Remaining Useful Life and Other Factors (RULOF), among others.
“(RULOF) and balancing the federal requirement to reduce industry emissions against the economic impact of those requirements will be the primary focus of ODEQ’s regulatory and planning efforts,” Hartfield said. “Public feedback will assist ODEQ in evaluating RULOF and determining whether these factors justify delaying requirements on some generators.”
This article originally appeared on Oklahoman: New state plan will impact oil and gas and power plant industries
