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Regulation of Petcoke in Chicago
Dave Graham and Jennifer HesseFebruary 18, 2015
What is Petcoke?
• Petroleum Coke, or “petcoke,” is a solid, carbon material derived as a byproduct of the oil refining process.
• Petcoke is typically used as a fuel source in power plants and cement kilns.
Why has petcoke been in the news?
• On August 30, 2013, a resident posted a photo on Facebook showing a cloud of black dust.
• At the end of 2013, BP completed the expansion of its refinery in Whiting, IN, resulting in a massive influx of petcoke on Chicago’s southeast side.
Where is petcoke stored?
• KCBX Terminals Company has two sites along the Calumet River with outdoor storage piles.
• The Beemsterboer family also had two sites, which have since shut down.
• A small amount of petcoke is also stored at Horsehead, Corp., for use in their manufacturing process KCBX South – 10730 S. Burley
What are the health impactsof petcoke?
• Breathing any dust, whether from petcoke, coal, or other materials, can cause short-term health impacts such as coughing, wheezing or shortness of breath. Dust can also aggravate respiratory conditions, such as asthma.
• There are no other known illnesses associated with exposure to petcoke, according to a report issued by the U.S. Environmental Protection Agency (EPA), based on available scientific data.
How did the City respond to public concern?
• Increased inspections
• Issued a public call asking residents to report petcoke issues through 311 or by email
• Filed a lawsuit with the State Attorney General against one of the facilities (Beemsterboer), resulting in the removal of all petcoke from the site
• Created Rules and Regulations for Bulk Solid Materials
• Passed an ordinance to ban new petcoke transfer facilities & require quarterly reporting from existing facilities
Why did CDPH issue Regulations?
• CDPH enforces the Environmental Code and regulates facilities that impact the environment.
• Previously, there were no specific rules for facilities handling dusty bulk materials.
• The purpose of the regulations is to protect public health and the environment by minimizing emissions of airborne particulate matter.
Public Process
• Proposed rules were posted and opened for public comment on December 19, 2013
• CDPH received verbal comments at a special public community hearing held on January 14, 2014
• After an extended 50-day comment period, CDPH received written comments from 60+ individuals and organizations, totaling approx. 1600 pgs
What do the Regulations require?
• Full enclosure of petcoke and coal within 2 years, plus stringent dust control measures in the interim
• Prohibition on visible dust beyond the property line and opacity limit within the site
• Submission of a Fugitive Dust Plan describing dust control measures at all facilities
• Continuous dust monitoring around all facilities
• Other best management practices to control dust
What is required for full enclosure?
• Coke and coal must be entirely surrounded by a completely roofed and walled structure
• Must be designed, permitted and constructed in accordance with the Building Code
When are outdoor piles allowed?
• Coke and coal may be stored outdoors while the enclosure is being constructed, subject to an Interim Fugitive Dust Plan
• Non-coke and coal materials may be stored outside subject to all the requirements set forth in the regulations
How will outdoor piles be controlled?
• The piles may not be higher than 30 feet
• The piles must be sprayed with water or other dust suppressants as needed
• Piles may not be disturbed during high wind conditions without effective controls
Other requirements forboth indoor & outdoor sites
• All conveyors must be covered or enclosed• All transfer points must be controlled• Must follow an approved Dust Control Plan
More requirements tokeep neighborhoods clean
• Vehicles must be tarped
• Facility roads must be paved
• Trucks must be cleaned
• Stormwater runoff must be managed
• Surrounding streets must be swept
How can we be sure the controlsare working?
• Facility must install and maintain real-time dust monitors with a data logger to record all readings
• Facilities must test visible dust and opacity on a quarterly basis
• City will conduct random, unannounced inspections
When do the rules take effect?
• Immediately (3/13/14): Ban on fugitive dust; roadway cleaning & housekeeping, recordkeeping, monthly enclosure reports
• 90 days (6/11/14): Dust plan, enclosure plan, dust monitoring, wind monitoring, vehicle covering, etc.
• Six months (9/13/14): Covered conveyors
• One Year (3/13/15): Paved facility roads
• Two Years from submission of Enclosure Plan (6/9/16): Construction of buildings
What if a facility does not comply?
• Violators can be fined $1,000 - $5,000 per day for any air pollution violation
• Repeat violators are subject to additional enforcement, including shut-down of operations
What if a facility needs more time?
• The Rules include a variance process
• Facilities may apply for a variance from any requirement other than enclosure
• Rules set forth criteria for issuing variances, including consideration of public comments
• Variances may be granted only if they will not adversely impact the surrounding environment and properties and will not create a public nuisance
Variance Requests
• KCBX initially submitted a request for a variance from 5 requirements:- Pile height- Covering of conveyors- Winter operation of dust suppressant system- Suspending disturbance of piles during
maintenance- Runoff management
• Eight other bulk material facilities requested variances from some of the rules, including the dust monitoring requirement
Variance Decision
• After an extended comment period, CDPH received 12 comments on KCBX’s variance request, including detailed comments from the Natural Resources Defense Council (NRDC) and the Southeast Environmental Task Force (SETF)
• With technical assistance from environmental consultant CDM Smith, CDPH issued the variance determination on December 9, 2014
• We denied the request to increase pile height and leave certain conveyors uncovered. The other requests were granted with conditions.
Enclosure Time Line
• KCBX also requested a 14-month extension of the deadline for enclosing all petcoke and coal, from June 9, 2016 to August 24, 2017.
• On February 16, 2015, CDPH informed KCBX that the variance request was insufficient and would not be granted at this time.
Next Steps
• KCBX asked for reconsideration of the variance denial regarding conveyors. This request is under review.
• Decisions will be made on the non-petcoke variance requests after additional information is received from the applicants
• CDPH will continue to inspect the facilities, respond to complaints, and review dust plans
