EPA Finalizes Standards Impacting Hazardous Air Pollution Emissions at Gasoline Distribution Facilities

Earlier this month the U.S. Environmental Protection Agency (“EPA”) released a rule finalizing standards for technology reviews (“TR”) conducted for the national emission standards for hazardous air pollutants (“NESHAP”) at gasoline distribution facilities, as well as the review of new source performance standards (“NSPS”) for bulk gasoline terminals. Gasoline distribution facilities transfer and store fuel as it is distributed from petroleum refineries to gasoline dispensing facilities. Potential sources of hazardous air pollution at these facilities include emissions during cargo tank loading and storage as well as leaks in gasoline service equipment.

These new standards seek to reduce toxic air pollution from gasoline distribution facilities and cut down on emissions from storage tanks, loading operations, and equipment leaks. The EPA projects that these rules will reduce emissions of air toxics connected with gasoline distribution by 2,220 tons per year, and emissions of volatile organic compounds (“VOC’s”) by 45,400 tons per year. 

In preparation of publishing this rule, EPA considered input received during the public comment period and adjusted the rule to enhance environmental protection without imposing significant impacts on small businesses or gas prices. This action will require gasoline distribution facilities to adopt cost-effective practices and control technologies to reduce emissions. Because the rules will reduce inefficiencies in the gasoline distribution process, such as leaks and unintentional emissions, EPA projects that compliance will result in annualized cost savings which will benefit the regulated community and consumers alike.

The final action also includes revisions related to emissions during periods of startup, shutdown, and malfunction of distribution facilities. Additionally, it provides monitoring and operating provisions for control devices and electronic reporting protocols. EPA is also finalizing New Source Performance Standards for Bulk Gasoline Terminals to reflect the best system of emissions reduction for loading, operations, and equipment leaks. The Clean Air Act requires the EPA to review and, if appropriate, revise their standards under NESHAP and NSPS for source categories every eight years.

The text of the final rule can be viewed here. Additional information pertaining to EPA’s regulation of gasoline distribution can be found at the MACT and GACT: NESHAP webpage. For questions regarding this final rule or compliance for gasoline distribution facilities, please contact Jeff Stravino, Mike Hecker, or any member of Hodgson Russ Environment & Energy Group.

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