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December 10, 2014 Gas Vapor Regulations: The Legislature’s Decentralized Approach Neither Requires nor Produces Consistency, and Current Regulations May Be Requiring Outdated Technology Zane Potter Preliminary Report

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Page 1: December 10, 2014 Gas Vapor Regulations: The Legislature’s Decentralized Approach Neither Requires nor Produces Consistency, and Current Regulations May

December 10, 2014

Gas Vapor Regulations: The Legislature’s Decentralized Approach Neither Requires nor Produces Consistency, and Current Regulations May Be Requiring Outdated Technology

Zane Potter

Preliminary Report

Page 2: December 10, 2014 Gas Vapor Regulations: The Legislature’s Decentralized Approach Neither Requires nor Produces Consistency, and Current Regulations May

Gasoline Vapor Regulation

Key Points in Today’s Presentation

December 10, 2014 2/25

Fees the local agencies set vary as well as the methodologies used to determine agency fees

Gas station inspection processes are similar, but the frequency of inspection varies

Current gas station regulations may be requiring outdated technology

2

3

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Page 3: December 10, 2014 Gas Vapor Regulations: The Legislature’s Decentralized Approach Neither Requires nor Produces Consistency, and Current Regulations May

Gasoline Vapor Regulation

Federal Clean Air Act Regulates Air Emissions in the United States

December 10, 2014 3/25

Gasoline vapors are a source of ground-level ozone (smog) which poses a risk to human health and the environment

Environmental Protection Agency is responsible for establishing air quality standards and regulations

Federal Act gives states flexibility in how to organize themselves to meet EPA’s standards and regulations

Page 4: December 10, 2014 Gas Vapor Regulations: The Legislature’s Decentralized Approach Neither Requires nor Produces Consistency, and Current Regulations May

Gasoline Vapor Regulation

Washington’s Clean Air Act Allows Decentralized Approach to Regulating Air Quality

December 10, 2014 4/25

Cowlitz 

Wahkiakum 

Clark 

Skamania 

Lewis Southwest

Clean Air Agency

Mason 

Clallam 

Jefferson

GraysHarbor

Thurston 

Pacific

Olympic Region Clean Air Agency

Snohomish

King

Pierce 

Kitsap

Puget Sound Clean Air Agency

Grant 

WallaWalla 

Franklin 

Adams 

Lincoln

FerryStevens

PendOreille

 

Whitman 

Columbia 

Garfield 

Asotin 

Ecology: Eastern Regional Office

Spokane

Spokane Regional Clean Air Agency

Yakima Yakima Regional

Clean Air Agency

SanJuan

Ecology: Northwest Regional Office

Whatcom

Skagit Island

 

Northwest Clean Air Agency

Kittitas 

Chelan

Okanogan 

Douglas

Ecology: Central Regional Office

Klickitat Ecology: Central

Regional Office

Benton 

Benton Clean Air Agency

Greyed areas = Tribal landsNote: EPA has authority over air quality issues on reservation lands

Page 5: December 10, 2014 Gas Vapor Regulations: The Legislature’s Decentralized Approach Neither Requires nor Produces Consistency, and Current Regulations May

Gasoline Vapor Regulation

Other States Use a Decentralized Approach to Regulating Air Quality

December 10, 2014 5/25

CO

OH

WA

CAIN

TN

FL

KS

NE

MO

TX

AL

PA

MAOR

NV

AZ

IA

NM

KYNC

MD

AK

IL

NY

MT

Single Statewide Clean Air Agency 1-3 Local Clean Air Agencies 4 or more Local Clean Air Agencies

Page 6: December 10, 2014 Gas Vapor Regulations: The Legislature’s Decentralized Approach Neither Requires nor Produces Consistency, and Current Regulations May

Gasoline Vapor Regulation

Washington Has Approximately 2,800 Gas Stations

December 10, 2014 6/25

Puget Sound1,300 stations

Northwest166 stations

Ecology416 stations

Spokane172 stations

Benton74 stations

Yakima103 stations

Olympic292 stations

Southwest334 stations

Page 7: December 10, 2014 Gas Vapor Regulations: The Legislature’s Decentralized Approach Neither Requires nor Produces Consistency, and Current Regulations May

1. Washington’s Current Regulations May Be Requiring Outdated Technology

Page 8: December 10, 2014 Gas Vapor Regulations: The Legislature’s Decentralized Approach Neither Requires nor Produces Consistency, and Current Regulations May

Gasoline Vapor Regulation

Stage I Vapor Recovery Systems Are Used During the Transfer of Gasoline from Tanker Trucks to Gas Stations

December 10, 2014 8/25

Vapor

Liquid

Vapor

Liquid

Page 9: December 10, 2014 Gas Vapor Regulations: The Legislature’s Decentralized Approach Neither Requires nor Produces Consistency, and Current Regulations May

Gasoline Vapor Regulation

Stage II Vapor Recovery Systems Capture Gasoline Vapors During the Refueling of Motor Vehicles

December 10, 2014 9/25

1990 federal legislation required Stage II in 27 states (including WA) to meet federal ozone standard

Costs $20K to $60K to install per station; $3,000 per year to maintain

Vapor

Liquid

Gas tank

Vapor recovery

nozzle

Coaxial hose

vapor

liquidvaporliquid

Page 10: December 10, 2014 Gas Vapor Regulations: The Legislature’s Decentralized Approach Neither Requires nor Produces Consistency, and Current Regulations May

Gasoline Vapor Regulation

Onboard Refueling Vapor Recover (ORVR) Systems Also Capture Gasoline Vapor During Refueling of Vehicles

December 10, 2014 10/25

Federal legislation required EPA to adopt ORVR regulations for automobile manufacturers

This system was phased in for new vehicles beginning in 1998

Vapor

Liquid

Balance nozzle

ORVR canister

liquid

Gas tankvaporliquid

Page 11: December 10, 2014 Gas Vapor Regulations: The Legislature’s Decentralized Approach Neither Requires nor Produces Consistency, and Current Regulations May

Gasoline Vapor Regulation

Stage II Systems Were Intended to Help Regions Meet the Federal Ozone Standard

December 10, 2014 11/25

Three jurisdictions require Stage II systems at more than 1,300 gas stations across seven counties

Three agencies require Stage II systems at about 1,300 gas stations across seven counties:Puget Sound Clean Air Agency• Snohomish• King• Kitsap• Pierce

Ecology• Thurston• Cowlitz

Southwest Clean Air Agency• Clark

SNOHOMISH

KING

PIERCE

KITSAP

THURSTON

COWLITZ

CLARK

Page 12: December 10, 2014 Gas Vapor Regulations: The Legislature’s Decentralized Approach Neither Requires nor Produces Consistency, and Current Regulations May

Gasoline Vapor Regulation

Feds No Longer Require Stage II Vapor Recovery Systems Limited compatibility between ORVR systems

installed on cars and some Stage II systems may increase emissions

In 2012 EPA determined that Stage II systems have become largely redundant because more cars have ORVR

EPA determination allowed, but did not require, states to remove Stage II Published guidance to help states determine when to

remove Stage II

December 10, 2014 12/25

Page 13: December 10, 2014 Gas Vapor Regulations: The Legislature’s Decentralized Approach Neither Requires nor Produces Consistency, and Current Regulations May

Gasoline Vapor Regulation

Other States Taking Steps to Remove Stage II

December 10, 2014 13/25

NJNV

OR

WA

CAOHIN

TN

TX

WI

IL

GA

LA

AZ

PA

MEVT

CT RI

DEMD

NH

VAKYMO

NY

Has not determined when to remove Stage II

Completed analysis, determined that Stage II needed until about 2017

Completed analysis, will keep Stage II for at least another decade

Taking steps to remove Stage IINot completed Stage II analysisNo Stage II requirement

MA

Page 14: December 10, 2014 Gas Vapor Regulations: The Legislature’s Decentralized Approach Neither Requires nor Produces Consistency, and Current Regulations May

Gasoline Vapor Regulation

Ecology and Local Agencies Have Not Determined When to Remove Stage II Ecology has yet to undertake emissions analysis Southwest completed an analysis in 2012, but

agency staff indicated that it was not shared with Board or made publicly available

Puget Sound completed two analyses; however, concerns were raised by author of EPA’s guidance document

December 10, 2014 14/25

JLARC staff worked with EPA staff and estimated that Stage II systems could begin to increase emissions as soon as 2020 in Southwest and Puget Sound

Page 15: December 10, 2014 Gas Vapor Regulations: The Legislature’s Decentralized Approach Neither Requires nor Produces Consistency, and Current Regulations May

Gasoline Vapor Regulation

Legislative Auditor Recommendation:Complete Emissions Analysis

December 10, 2014 15/25

The Department of Ecology and the local clean air agencies should estimate and publish when Stage II requirements will begin to increase emissions.

This analysis should determine whether keeping Stage II systems helps the regions meet EPA’s current ozone standard and the costs and cost effectiveness associated with keeping these systems.

Page 16: December 10, 2014 Gas Vapor Regulations: The Legislature’s Decentralized Approach Neither Requires nor Produces Consistency, and Current Regulations May

2. Fees the Local Agencies Set Vary As Well As the Methodologies Used To Determine Agency Fees

Page 17: December 10, 2014 Gas Vapor Regulations: The Legislature’s Decentralized Approach Neither Requires nor Produces Consistency, and Current Regulations May

Gasoline Vapor Regulation

Washington’s Clean Air Act Allows Decentralized Approach to Regulating Air Quality

December 10, 2014 17/25

Cowlitz 

Wahkiakum 

Clark 

Skamania 

Lewis Southwest

Clean Air Agency

Mason 

Clallam 

Jefferson

GraysHarbor

Thurston 

Pacific

Olympic Region Clean Air Agency

Snohomish

King

Pierce 

Kitsap

Puget Sound Clean Air Agency

Grant 

WallaWalla 

Franklin 

Adams 

Lincoln

FerryStevens

PendOreille

 

Whitman 

Columbia 

Garfield 

Asotin 

Ecology: Eastern Regional Office

Spokane

Spokane Regional Clean Air Agency

Yakima Yakima Regional

Clean Air Agency

SanJuan

Ecology: Northwest Regional Office

Whatcom

Skagit Island

 

Northwest Clean Air Agency

Kittitas 

Chelan

Okanogan 

Douglas

Ecology: Central Regional Office

Klickitat Ecology: Central

Regional Office

Benton 

Benton Clean Air Agency

Greyed areas = Tribal landsNote: EPA has authority over air quality issues on reservation lands

Page 18: December 10, 2014 Gas Vapor Regulations: The Legislature’s Decentralized Approach Neither Requires nor Produces Consistency, and Current Regulations May

Gasoline Vapor Regulation

Ecology and Local Agencies May Require Businesses to Register and Pay a Fee

Fees may only be used for administering an agency’s registration program

December 10, 2014 18/25

No State Auditor’s Office audit findings regarding: Any of the agencies' registration programs Use of the fees to administer the programs

Page 19: December 10, 2014 Gas Vapor Regulations: The Legislature’s Decentralized Approach Neither Requires nor Produces Consistency, and Current Regulations May

Gasoline Vapor Regulation

Annual Gasoline Station Fees Charged by Agencies Vary

December 10, 2014 19/25

Puget SoundAvg Fee: $713

NorthwestAvg Fee: $919

EcologyNo Fee

SpokaneAvg Fee: $601

BentonAvg Fee: $525

YakimaAvg Fee: $439

OlympicAvg Fee: $251

SouthwestAvg Fee: $332

Page 20: December 10, 2014 Gas Vapor Regulations: The Legislature’s Decentralized Approach Neither Requires nor Produces Consistency, and Current Regulations May

Gasoline Vapor Regulation

Methodologies Used by Clean Air Agencies to Determine Fees Vary

December 10, 2014 20/25

Puget SoundAmount of gas dispensed

NorthwestAmount of gas dispensed

EcologyNumber of underground storage tanks

SpokanePolluter-pays

BentonAmount of gas dispensed

YakimaFixed fee based on average workload

OlympicFixed fee based on average workload

SouthwestPolluter-pays

Page 21: December 10, 2014 Gas Vapor Regulations: The Legislature’s Decentralized Approach Neither Requires nor Produces Consistency, and Current Regulations May

Gasoline Vapor Regulation

Methodologies Are Consistent with Government Accountability Office Guidance

December 10, 2014 21/25

GAO provides four criteria when setting fees:

Policymakers must consider tradeoffs among the criteria and recognize that no single fee design satisfies all interests

• Efficiency • Equity• Revenue adequacy• Administrative burden

Page 22: December 10, 2014 Gas Vapor Regulations: The Legislature’s Decentralized Approach Neither Requires nor Produces Consistency, and Current Regulations May

3. Gas Station Inspection Processes Are Similar, But the Frequency of Inspection Varies

Page 23: December 10, 2014 Gas Vapor Regulations: The Legislature’s Decentralized Approach Neither Requires nor Produces Consistency, and Current Regulations May

Gasoline Vapor Regulation

Gas Station Inspection Processes Are Similar, Frequency of Inspections Varies Amongst Agencies

December 10, 2014 23/25

Puget SoundAbout 20% inspected annually

NorthwestAnnually

EcologyNot currently conducted

SpokaneAnnually

BentonOnce every two years

YakimaAt least once every 3 years

OlympicAt least once every 2 years

SouthwestEvery 5 years

Page 24: December 10, 2014 Gas Vapor Regulations: The Legislature’s Decentralized Approach Neither Requires nor Produces Consistency, and Current Regulations May

Gasoline Vapor Regulation

Three Agencies Require Testing of Stage II Systems

December 10, 2014 24/25

Local Clean Air Agency

Testing Frequency

Puget Sound Once every six months

Olympic Region Annual

Southwest Annual for one type of Stage II system

Tests cost about $300 per test and are performed by private contractors

Page 25: December 10, 2014 Gas Vapor Regulations: The Legislature’s Decentralized Approach Neither Requires nor Produces Consistency, and Current Regulations May

Next Steps and ContactsProposed Final Report: January 7, 2015

Zane Potter, Research [email protected] 360-786-5194

Eric Thomas, Research [email protected]

Valerie Whitener, Project [email protected] 360-786-5191

www.jlarc.leg.wa.gov