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HomeMy WebLinkAboutAir Quality Advisory Board - Minutes - 12/12/2022 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 acceptably. − 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 if Director discretion has been removed. Cassie responded, yes, the Director discretion verbiage had 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. − Cassie also brought up the concern around operational standards. The City is making the case that there are enough regulations but 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. − Financial assurances are another new rule at the State level. The sole local operator AIR QUALITY ADVISORY BOARD TYPE OF MEETING – REGULAR 12/12/22 – MINUTES Page 4 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 in 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 seconded to approve the 2023 work plan. It unanimously passed 8-0. AIR QUALITY ADVISORY BOARD TYPE OF MEETING – REGULAR 12/12/22 – MINUTES Page 5 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.