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HomeMy WebLinkAbout03/20/2023 - Air Quality Advisory Board - Agenda - Regular Meeting AIR QUALITY ADVISORY BOARD REGULAR MEETING Monday, March 20, 2023 5:30 – 8:00 PM (dinner for board members and presenters served at 5:15 pm) 222 Laporte Ave | Colorado River Room (first floor) AGENDA Page 1  Meeting link for hybrid access (requires internet access): https://us02web.zoom.us/j/7503764516 Phone in option: 1-346-248-7799 (Meeting ID: 750 376 4516) 1. CALL TO ORDER 2. ROLL CALL 3. AGENDA REVIEW 4. PUBLIC PARTICIPATION 5. APPROVAL OF MINUTES 6. PREVIOUS BUSINESS 7. NEW BUSINESS a. O&G Updates; 6:00-7:00 The Board will review recommendations related to O&G Land Use Code updates and consider potential for additional recommendations. (Action) b. Board Priorities for 2023; 7:00-7:30 The Board will review the 2023 work plan and have discussion about preferred air quality focus areas. (Discussion) c. Elections; 7:30-7:45 The Board will nominate and consider candidates for Board Chair, Vice-Chair and Bicycle Advisory Committee Representative. (Action) 8. BOARD MEMBER REPORTS 9. OTHER BUSINESS a. 6-month Calendar review b. Agenda planning 10. ADJOURNMENT AIR QUALITY ADVISORY BOARD TYPE OF MEETING – REGULAR Monday, December 12, 2022, 5:30 – 8:00 pm via Zoom 12/1 2 /22 – MINUTES Page 1 1. CALL TO ORDER 5:33pm 2. ROLL CALL • List of Board Members Present − Karen Artell – Chair − Mark Houdashelt – Vice Chair − Wayne Chuang − Greg Boiarsky − John McDonagh − Dan Welsh − Sandra LeBrun − Greg Clark • List of Board Members Absent - Thomas Gifford (Resigned) • List of Staff Members Present − Cassie Archuleta, Staff Liaison, Air Quality Program Manager − Jason Komes, Senior Specialist, Environmental Services − Julie Pignataro, Councilmember, Council Liaison • List of Guests 3. PUBLIC PARTICIPATION • No public comment 4. APPROVAL OF MINUTES • Mark moved and Greg C seconded a motion to approve the November AQAB minutes as amended. Motion pass unanimously 8-0 5. PREVIOUS BUSINESS a. Update on Ozone SIP AIR QUALITY ADVISORY BOARD TYPE OF MEETING – REGULAR 12/12/22 – MINUTES Page 2 − Wayne provided an update on how NOx estimates were underestimated for oil and gas operations and how it is affecting SIP. The division found the NOx numbers were increased by 10%. The change caused the Division to withdraw portions of the 2008 SIP to allow for time to reevaluate the numbers and bring it back to the commission with new inventory and modeling next year. Separately, the 2015 SIP is due in January and moving ahead to the commission this week. Wayne clarified that the 2015 SIP is due before the 2008 SIP because the attainment date for the 2015 SIP is sooner (2024) than the attainment date for the 2008 SIP (2027), so they have more time to prepare the documents. It has already been projected that it will not be possible in 2023 to reach attainment of the 70 ppb ozone standard, nor even 75 ppb, the looser standard. 6. NEW BUSINESS a. O&G Recommendation − John mentioned they just received version two of the regulations this afternoon. He saw there had been some changes but has not had time to go through them. He is advocating for a slower pace to give appropriate time as some of the changes could affect the AQAB recommendations. Karen thought they could still send a recommendation but make a note saying they just received the updated oil and gas regulations. Then if Council stretches out the 2nd reading, the Board could have more time to look at them. Greg B mentioned he saw a lot of their asks were answered in the second version but there were still a couple of things he wanted to talk about. − Sandra asked about just recommending an outright ban on oil and gas drilling. Greg C added that a moratorium would also be an appropriate next step. In light of these considerations, John has been recommending a multiprong approach. If one of the prongs fails, then you can still ensure oil and gas will happen responsibly and adequately. − Cassie provided updates on some of the changes from version one to version two and provided some additional context about the pace of adoption. They have been working on these regs for about three years and the regulatory environment has changed during that time. The City thinks there is now enough in the State regulations and County resources to regulate operations, but that is a point of discussion for the Board. − Cassie also discussed offramps with zoning districts and setbacks. The City needs the setbacks even though the State has setbacks, so the City has control over AIR QUALITY ADVISORY BOARD TYPE OF MEETING – REGULAR 12/12/22 – MINUTES Page 3 exemptions and because the City also added additional things like parks and streams instead of just occupied buildings to the setbacks. − John asked about the changes with pipelines. Cassie clarified that the intent is to exclude them from residential zones and oil and gas pipelines are subject to a type two review but will check with Kirk on the language. Cassie also discussed the issue of notification and changed the language to include notification to the owners of record and occupants. John also asked about the Director discretion and if that has been removed. − John recommended including something in the document about not having an opportunity to review version two due to timing. John also had concerns about failure to provide notice and how it does not give rise to any right to challenge the decision. Karen thinks it is an important point that is addressed in both drafts. She also had concerns about modifications and variances and how in the 1041 regulations certain modifications don’t work and she is hoping to put something like that in the oil and gas regulations. − Cassie also brought up the concern around operational standards. The City is making the case that there are enough regulationsbut is exploring enforcement gaps. There are two groups that do regulations: Colorado Oil and Gas Conservation Commission (COGCC), who handle oil and gas permitting, and CDPHE, who handle air quality permitting. For enforcement, the County has started resourcing oil and gas staff and is a designee of the State to support enforcement. The City is going to leverage their trained staff and use the newly acquired FLAIR camera to work together so that there are not compliance issues in Fort Collins. − John is concerned about this approach as the County regulations do not apply in the City, they wouldn’t have authority, and any attempt to use enforcement and inspections would not apply. He stated SB-181 was written as a way to empower local governments to go beyond the State, not just rely on it. He urges the City to not have weaker regulations than the County. Cassie clarified the County has inspection authority and the enforcement would come from the State based on the County’s assessment. Greg is concerned about the State having enough resources. − Cassie mentioned the City and County previously collaborated and successfully advocated through the State to stop a redevelopment application within the County (outside, but near, City limits). It is a different State agency than three years ago, and they want to test it before layering on their own regulations. They are also pushing for a cease and desist on a site close to City limits. Within City limits are only low producing wells that have never had complaint issues. The issues are coming from storage facility just outside of Fort Collins City limits AIR QUALITY ADVISORY BOARD TYPE OF MEETING – REGULAR 12/12/22 – MINUTES Page 4 − Financial assurances are another new rule at the State level. The sole local operator did submit a Financial Assurance Plan, the City reviewed it, and they have some problems with it. The City and County are going to request a hearing on it as the plan is insufficient in their opinion. Another concern in the financial assurance plan is they have two low producing wells and have said they are evaluating if they can redevelop them. John recommended a roadmap into the future with respect to operational standards and financial assurances, and Cassie believes that is something the City can offer. She also mentioned that there is usually a several year lead time to new oil and gas development. − John believes it is important to distinguish financial assurance requirements from operational standards. He stated a major concern in the environmental community is that the COGCC regulations are a bit weak. He believes that, even if you don’t layer all the operational standards, it would be straightforward to put some requirement for a financial assurance in the plan review. It would then give you the authority in the situations where you felt the State is inadequate to add a bump or increment. Cassie mentioned that advocacy groups were involved in the standards regarding financial assurances, and she believes people were happy with the outcome from the State on dollar amounts being sufficient. Now the question is, is the State going to hold them to it? John recommended putting a simple provision in the code that gives the City the authority to test the State, and if they come up short, the City can jump in. − Greg C stated that it seems to him the Board is almost validating a moratorium, as there are so many unknowns the way the State and County will behave. He also recommended funding a City implementation plan that can jump into place when the City notices a gap. − Dan stated that air quality impacts is another tool the City could use. They should have to demonstrate a plan and maintenance schedule to prove and ensure that there are no violations of ambient air quality standards and have clear consequences for those instances in which violations occur. It could set a pretty tremendous hurdle to any proposed operation. He stated in theory you can have these operations, but you cannot do them in a manner that negatively affects air quality. − Mark moved and Greg B. seconded a motion to approve the oil and gas memo. Motion pass unanimously 8-0 b. 2023 Annual Work Plan − The Board reviewed and edited the draft 2023 work plan. John moved and Wayne AIR QUALITY ADVISORY BOARD TYPE OF MEETING – REGULAR 12/12/22 – MINUTES Page 5 seconded to approve the 2023 work plan. It unanimously passed 8-0. c. 2022 Annual Report − The Board will review this in January. 7. BOARD MEMBER REPORTS a. None provided. 8. OTHER BUSINESS a. Agenda Planning − January − Board pushing meeting to January 30th. − City Clerk will do Board orientation for current members and incoming members. − Finalize 2022 annual report. − Election for Chair 9. ADJOURNMENT − The meeting was adjourned at 8:29 pm. Oil and Gas Regulations –Panel Discussion 03-09-2023 Ginny Sawyer Senior Project and Policy Manager Facilitator: 2Participation During Panel Q&As: Panelists will be addressing and answering questions during the last portion of the panel. Questions can only be asked through the Q&A function. How To Ask Q&As: Open the Q&A window at the bottom of the Zoom screen. This will allow you to ask questions to the host and panelists. These can be anonymous if desired. You can "thumbs up" questions that other participants ask. This will let us know to prioritize a question. 3Objective/Panelists Cassie Archuleta, Air Quality Program Manager Noah Beals, Development Review Manager Matt Lafferty, Principal Planner Lea Schneider, Environmental Health Planner Kate Fury, Air Quality Oil and Gas Liaison OBJECTIVE: Provide information and answer questions regarding proposed Land Use Code provisions related to oil and gas facilities and operations for the City of Fort Collins. 4Overview/FAQs •CONTEXT AND PROPOSED LAND USE CODE-What are key provisions in proposed code?-Will oil and gas development still be possible?-How will operational regulations be addressed and enforced? •COUNTY ROLE-What land use restrictions apply around Fort Collins?-What land use restrictions apply in City owned natural areas outside of City limits?-What is County’s role regarding inspection and compliance in Fort Collins? •STATE ROLE-What State rules apply in and around Fort Collins?-What is State’s role regarding compliance with regulations in and around Fort Collins? •ADD YOUR QUESTIONS AS WE GO! Regional Context Active Wells: •Colorado: 48,952 •Weld County: 17,579 •Larimer County: 249 •Growth Management Area + City: 17 •City of Fort Collins: 10 5 Fort Collins Well (producing, injecting, shut-in or abandoned) City Limits O&G Website: www.fcgov.com/oilandgas Fort Collins Field 6 DOUGLAS RD TURNBERRY RDCOUNTRY CLUB RD One Operator •Prospect Energy 10 Active Wells •2 Producing •3 Injecting •5 Shut-In 20 Inactive Wells 2019 2020 2021 2022 7Timeline –Fort Collins consideration of code OCT 2022 WS and City/County IGA JAN 2021 WS –Zoning and Setbacks OCT 2019 WS –Initial Council direction APR 2019 Senate Bill 19-181 Adopted APR 2022 COGCC -Financial Assurance Rules MAR 2022 WS –Operational Standards and Reverse Setbacks AUG 2022 CDPHE –Compliance Advisory Senate Bill 19-181 (April 2019): •Change in Colorado Oil and Gas Conservation Commission (COGCC) Mission from fostering responsible, balanced development to regulating in a manner that protects public health, safety & environment COGCC = Colorado Oil and Gas Conservation Commission; CDPHE = Colorado Department of Health and Environment DEC 2022 O&G Code 1st Reading (New Wells) NOV 2020 COGCC Mission Change Rules Objectives: •No new oil and gas development within City limits •No new oil and gas development in City Natural Areas Top Concerns: Public Process (2019-2020)8 Sub-surface Water Quality Regional Air Quality Traffic Odors and Emissions Leaks and Spills Climate Change Impacts •Boards and Commissions •Open houses •Online forum 9Areas of Focus New Oil & Gas Facilities Siting requirements Approval procedures Design standards Operational Standards for Existing/New Facilities Emissions controls Leak detection and repair Spill detection and response Reverse Setbacks Distance for new development from existing wells Ready for 2nd Reading;April 4, 2023 No new code (for now); leverage State and County regulations and resources Minor code refinements proposed; coming in 2023 10Proposed Code: New Oil and Gas Facilities Objective: •Limit new oil and gas development within City limits Council Feedback/Direction: •Restrict to Industrial Zone Districts •Apply 2000’ minimum setbacks from occupied buildings, trails and natural areas Current Status: •1st Reading, passed unanimously •2nd Reading scheduled for April 4, 2023 BEFORE AFTER •2000’ setbacks (could be modified by COGCC) •3% Land Available •Industrial Zones and 2000’ setbacks •<1% Land Available OPEN SPACE 11Development Review Process –Type 2 Conceptual Review Neighborhood Meeting Application Submittal Rounds of Review Public Hearing and Decision Appeal Period Final Plan Submittal Rounds of Review Recording Building Permit Submittal Building Permit Review and Issuance Inspections and Construction approval Three Parts of Development Review Project Development Plan Final Plan Building Permit 12Development Review Process –Type 2 Development Review Includes: •City Planner •Traffic Engineer •Water Utilities Engineer •Light and Power Engineer •Erosion Control •Forestry •Enviromental Planner •Historic Preservation Planner •Poudre Fire Authority •Building Code Plan Examiner Reviewers:Codes and Regulations: •Land Use Code •Traffic Code •Water and Storm Water Regulations •Light and Power Regulations •Erosion Control •Tree Protection and Planting •Enviromental Protection Standards •Landmark Preservation Standards •Fire Code •Building Code 13Operational Standards Review (2020-2022) Identify Gaps State Rulemaking Enforcement/ Actions Objective •Mitigate (or eliminate) impacts from existing and potential future wells 14Operational Standards Review (2020-2022) Identify Gaps State Rulemaking Enforcement/ Actions Objective •Mitigate (or eliminate) impacts from existing and potential future wells State Rulemaking: •Participated in comprehensive rulemakings through COGCC and CDPHE (2019-2022) •November 2019 -Pipelines and Flowlines (COGCC) •December 2019 –Methane Emissions (CDPHE) •September 2020 –Air Quality Monitoring requirements (CDPHE) •November 2021 –“Mission Change” (COGCC) •March 2022 –Financial Assurances (COGCC) •Current –Cumulative Impacts (COGCC) 15Operational Standards Review (2020-2022) Identify Gaps State Rulemaking Enforcement/ Actions Objective •Mitigate (or eliminate) impacts from existing and potential future wells State Rulemaking: •Participated in comprehensive rulemakings through COGCC and CDPHE (2019-2022) Enforcement/Actions: •Financial Assurances rule and request for Hearing (January 2023) •Requests to Plug and Abandon Existing Wells (In progress) •Purchase of optical gas imaging (OGI) camera for use in leak detection (Intergovernmental Agreement approved, purchase in progress) 16Operational Standards Review (2020-2022) Identify Gaps State Rulemaking Enforcement/ Actions Objective •Mitigate (or eliminate) impacts from existing and potential future wells State Rulemaking: •Participated in comprehensive rulemakings through COGCC and CDPHE (2019-2022) Enforcement/Actions: •Financial Assurances rule and request for Hearing (January 2023) •Requests to Plug and Abandon Existing Wells (In progress) •Purchase of optical gas imaging (OGI) camera for use in leak detection (Intergovernmental Agreement approved, purchase in progress) Recommendation to City Council (October 2022 Work Session): •Adopt proposed LUC changes to restrict locations for new and modified wells •Provide frequent progress updates, and return to community and Council discussion if additional regulatory or enforcement gaps or opportunities are encountered •Restrict locations for new locations •Pending adoption of proposed LUC •Identify and address gaps in regulations for local operations •Addressed through engagement in State rulemaking •Identify and address gaps in enforcement •In progress through Larimer County Health Department and Colorado Department of Public Health and Environment •New objective? Consider redundancy for increased local control? •Additional community engagement (public workshops?) and Council Work Session recommended 17Next steps Clarify Objectives 18 PAUSE FOR QUESTIONS ABOUT PROPOSED CITY ROLE NEXT UP: LARIMER COUNTY LARIMER COUNTY HOW DO LARIMER COUNTY OIL AND GAS FACILITY REGULATIONS COMPLIMENT CITY OF FORT COLLINS OBJECTIVES MARCH 9, 2023 Matthew Lafferty, AICP Principal Planner Community Development Department Advanced Planning 200 W Oak Street, Suite 3100 Fort Collins, Co 80521 W: 970.498.7721 mlafferty@larimer.org Lea Schneider, REHS Environmental Health Planner Air Quality & Zoonotic Supervisor Health and Environment Department 1525 Blue Spruce Drive, 2nd Floor Fort Collins, Co 80524 W: 970.498.6777 lschneider@larimer.org LOCATIONAL RESTRICTIONS MARCH 9, 2023 Article 11.3.2.A. of the Larimer County Land Use Code does not allow oil and gas facilities to be situated in certain zoning districts. Zoning Districts LOCATIONAL RESTRICTIONS MARCH 9, 2023 •2000 Feet As measured from the property line of any school facility, hospital, medical clinic, senior or assisted living facility, multi-family dwelling, or state licensed day care as defined by Colorado state law. •1000- 2000 Feet As measured from the property line of any existing or platted residential building unit, unless one or more of the following conditions are satisfied: All existing building unit owners/tenants within 2000 feet explicitly agree with informed consent to an alternate location. Any wells, tanks, separation equipment, or compressors are located more than 2000 feet away. The Board of County Commissioners authorize a lessor setback based upon demonstration that such location will achieve substantially equivalent protections for the Public health, safety, and welfare including environmental and wildlife resources. Article 11.3.2. of the Larimer County Land Use Code regulates oil and gas facility locations through the application of setbacks/buffers as follows: Setbacks/Buffers LOCATIONAL RESTRICTIONS MARCH 9, 2023 •Placing a no surface occupancy status upon said properties unless the County Commissioners allow reasonable siting alternatives as demonstrated by the applicant after consultation with the appropriate local lead entity managing the resource. Such reasonable siting shall be largely based upon the best management and compensatory mitigation requirements of the “mountain to Plains Energy by Design, Report to the Colorado State Land Board”. •Only approving siting locations, including all on-site and off -site mitigation, that will not result in a net loss of any natural, cultural, agricultural, recreational, or scenic values on such lands as determined by the Board of County Commissioners. Article 11.2.4. of the Larimer County Land Use Code acknowledges the importance and public conservation lands that the County, local municipalities and land trusts have used public funds to purchased fee title or conservation easements to protect conservation values such as natural, cultural, agricultural, or scenic values by: Natural Resource Protection REGULATORY ROLE MARCH 9, 2023 •LCDHE operates under a contract with the Air Pollution Control Division (APCD)as a local regulatory agency to investigate complaints and inspect regulated sources of pollution. APCD’s Compliance and Enforcement Program reviews compliance evaluations conducted by LCDHE staff to determine appropriate enforcement actions. •LCDHE also supports the Larimer County Planning Department with oil and gas activities under Article 11 of the Land Use Code. Collaborate on reviews for new and existing oil and gas proposals within and adjacent to Larimer County. Investigate complaints received through the County’s oil and gas website on odors, noise, water quality, etc, to determine compliance with local and federal regulations. Promote public health protections through policy review and public comment with state agencies, including APCD and Colorado Oil & Gas Conservation Commission (COGCC). •LCDHE recently entered into an Intergovernmental Agreement with Fort Collins to enhance our APCD contract activities. Collaborating on the purchase of an Optical Gas Imaging (OGI) camera. OGI camera will enhance detection of uncontrolled hydrocarbon emissions within Larimer County and our municipalities for correction and enforcement the appropriate agency. Larimer County Health Department (LCDHE) is the health agency representing all of unincorporated Larimer County including our local municipalities. Regulatory Role 24 PAUSE FOR QUESTIONS ABOUT LARIMER COUNTY ROLE IN AND AROUND FC NEXT UP: COLORADO DEPARMENT OF PUBLIC HEALTH AND ENVIRONMENT Fort Collins Oil and Gas Panel Kate Fury, Air Quality Oil and Gas Liaison Briefing to City of Fort Collins Stakeholders 3/9/2023 26Topics to be covered •Agencies that Regulate Oil and Gas •Fort Collins Specific Information •Hearthfire and Krause Prospect Energy Facilities •Brief Overview of Air Pollution Control Division’s Oil and Gas Monitoring and Oversight •Useful Contact Information 27Multiple agencies regulate oil and gas Facility Location Water Air Equipment Solid Waste Other Department of Natural Resources (DNR) Colorado Oil and Gas Conservation Commission (COGCC)  Colorado Parks and Wildlife  Colorado Department of Public Health and Environment (CDPHE) Air Pollution Control Division (APCD) Water Quality Control Division  Hazardous Materials and Waste Management Division  Local Governments * 28Fort Collins specific information •Fort Collins has one of the best air quality programs in the state •The city only has two active production locations •SB19-181 has truly changed the landscape •Fort Collins is in a fundamentally different position then other cities were prior to the passage of the bill and the completion of the mission change rulemaking at the Colorado Oil and Gas Commission (COGCC) •There is not a “rush” to develop in Fort Collins •Regulating facility siting through land use is one of the best ways for cities and counties to control the amount of oil and gas development in their jurisdictions 29Krause and Hearthfire •Krause •Compliance issues include odor complaints and emissions from thief hatches •Cease and desist issued in Aug 2022, lifted in Nov 2022 as operator was able to meet terms of the cease and desist •Operator agreed to redesign the facility, which included installation of a new enclosed combustion device •Hearthfire •Consists of multiple sites, collectively known as Hearthfire •Main issues have been with the enclosed combustion device •Hearthfire shares some equipment with Krause Krause Outside City limits Outside GMA City of Fort Colins Hearthfire Outside City limits Inside GMA 30Krause and Hearthfire (cont.) •APCD is aware of these sites and they are inspected and monitored frequently •We have invested in specialized monitoring equipment to measure compounds associated with the Krause facility •We continue to devote significant resources to investigating complaints regarding this operator and these facilities •We continue to pursue enforcement actions against Prospect Energy •We work closely with Larimer County and Fort Collins •We continue to work with other agencies to ensure potential violations that fall outside our jurisdiction are enforced 31Brief overview of APCD monitoring •We have invested in four mobile monitoring vans, in addition to our air monitoring trailer and solar powered portable total volatile organic compound sensors -Two vans are currently operating, one exclusively focused on toxic air contaminants from certain stationary facilities and the other exclusively focused on oil and gas -Two additional vans are being built and should be delivered this year •We are in the process of deploying six additional permanent monitoring stations that can measure a wide range of pollutants •Since May 2021, every new well must have a Division-approved monitoring plan in place prior to the start of drilling -Operator pays for air monitoring –data collected by a third-party -Data starts being collected at least 10 days before drilling and continues for at least 6 months into production -Monthly reports submitted to APCD 32Brief overview of APCD over site •We consult with the Colorado Oil and Gas Conservation Commission during their permitting process to ensure best management practices (BMPs) are written into COGCC’s permits •We have expanded our inspections and permitting staff and implemented stronger permitting requirements, including requiring emissions modelling determinations on minor source permits •We continue to prioritize complaints and investigate every complaint we receive •We are conducting a stakeholder process this year to identify additional emissions controls for oil and gas facilities •And so much more… 33Contact information •Where to file a complaint related to health impacts, odors, or suspect emissions related to oil and gas: -Oil and Gas Health Information and Response Program –Website: https://cdphe.colorado.gov/health/oil-and-gas-and-your-health –Email: cdphe_oghealth@state.co.us –Voicemail: (303)389-1687 •Where to file a complaint related to noise, light, or other COGCC regulated topic related to oil and gas: -COGCC complaints –Website: https://cogcc.state.co.us/complaints.html#/complaints •You can also contact me directly at kate.fury@state.co.us 34Resources For new O&G facilities: Council will consider adoption of land use restrictions on April 4, 2023 More information: fcgov.com/oilandgas/ OTHER OPPORTUNITIES FOR FEEDBACK 1.Email City staff, City Leaders or City Council 2.Public comment at Council meeting 3.Other? City staff are available by invitation for small or large group discussion. FUTURE CONSIDERATIONS? •Ongoing community dialog about regulatory gaps, redundancy, compliance issues and enforcement QUESTIONS? 35