The Alaska Department of Environmental Conservation (ADEC) proposes to issue Air Quality Control Minor Permit No. AQ0035MSS07 to Tesoro Alaska Company, LLC, Kenai Pipeline Company, and Tesoro Logistics Operations, LLC (Tesoro) for the three aggregated Tesoro facilities: Kenai Refinery, Kenai Pipeline Terminal (KPL), and Nikiski Terminal. Additionally, ADEC proposes to incorporate the revisions issued under this minor permit, using the integrated review procedures described in 18 AAC 50.326(c)(1), into the Title V operating permit renewals for the Kenai Refinery (Title V Permit AQ0035TVP03), the KPL (Title V Permit AQ0033TVP04), and the Nikiski Terminal (Title V Permit AQ0036TVP04).

Applicants: Tesoro Alaska Company, LLC, P.O. Box 3369, Kenai, AK 99611

Kenai Pipe Line Company, P.O. Box 3369, Kenai, AK 99611

Tesoro Logistics Operations LLC, 200 E. Hardin Street, Findlay, OH 45840

 

Location: Nikiski Terminal: Mile 21, Kenai Spur Highway

Kenai Pipeline Terminal: Mile 22, Kenai Spur Highway

Kenai Refinery: Mile 22.5, Kenai Spur Highway

Kenai, Alaska  99611

 

Activity: The Kenai Refinery is capable of processing 72,000 barrels of crude oil per day into a variety of petroleum products. Crude oil and other feedstocks are transported to the refinery through the KPL by ocean tanker, barge, and pipeline or tanker truck. The KPL is a marine vessel loading and crude oil storage facility owned by Kenai Pipeline Company, a subsidiary of Tesoro Alaska Company, LLC. The crude is then pumped into bulk storage tanks at the refinery. The refinery includes an underground pipeline system that extends from the refinery to the Kenai Pipeline facility, as well as, the Anchorage and Nikiski Terminals. The Nikiski Terminal is a bulk petroleum terminal which receives fuel products, such as gasoline, jet fuel and diesel fuel, into storage tanks via piping from the Kenai Refinery. The petroleum products are loaded into tank truck cars for transport to consumers.

Application: On March 27, 2017, the Department received an application for a concurrent integrated review with Tesoro’s application for Minor Permit No. AQ0035MSS07, seeking to incorporate the requirements of Consent Decree (CD) Civil No. Civ. SA-16-cv-00722, filed July 18, 2016. On June 16, 2017, the Permittee submitted and addendum to the original Minor Permit AQ0035MSS07 application.

 

The Department received the following applications for Title V operating permit renewal for: ·      

 

Kenai Refinery, Permit No. AQ0035TVP03 received on January 13, 2017, and amendments to the application on February 24, 2017, March 27, 2017, May 4, 2020, September 16, 2020, and December 31,2021;

Kenai Pipeline Terminal, Permit No. AQ0033TVP04 received on December 15, 2020; and

Nikiski Terminal, Permit No. A0036TVP04 received on December 2, 2020.

Emissions: The permit action does not change potential emissions at the stationary source. The potential annual emissions of regulated air pollutants at the source are:

 

For the Kenai Refinery, 72.8 tons of particulate matter, 696 tons of nitrogen oxides, 101 tons of sulfur dioxide, 565 tons of carbon monoxide, and 1,077 tons of volatile organic compounds (including 145 tons hazardous air pollutants (HAPs)). The potential annual emissions for greenhouse gases in carbon dioxide equivalent (CO 2 e) is 842,942 tons. The total potential emissions of regulated air pollutants, other than greenhouse gases, is 2,512 tons per year. 

 

For the KPL, 0.13 tons of particulate matter, 2.24 tons of nitrogen oxides, 0.21 tons of sulfur dioxide, 0.39 tons of carbon monoxide, 871 tons of volatile organic compounds (including 39.5 tons of HAPs). The potential annual emissions for greenhouse gases in carbon dioxide equivalent (CO 2 e) is 516 tons. The total potential emissions of regulated air pollutants, other than greenhouse gases, is 874 tons per year.

 

For the Nikiski Terminal, 0 tons of particulate matter, 0 tons of nitrogen oxides, 0 tons of sulfur dioxide, 0 tons of carbon monoxide, 41 tons of volatile organic compounds (including 1.2 tons of HAPs). The potential annual emissions for greenhouse gases in carbon dioxide equivalent (CO 2 e) is 0 tons. The total potential emissions of regulated air pollutants, other than greenhouse gases, is 41 tons per year. ADEC

Preliminary Review: Based on review of the application, ADEC drafted a preliminary permit decision for the Kenai Refinery, KPL, and Nikiski Terminal under AS 46.14 and 18 AAC 50.  

Available Information: Copies of the permit applications, ADEC’s preliminary minor permit, technical analysis report (TAR), draft operating permits, statements of basis (SOB), and administrative records are available at the following offices:

ADEC Air Permits Program, 410 Willoughby Avenue, 2 nd Floor, Juneau, AK 99801-1795

ADEC Air Permits Program, 555 Cordova Street, Anchorage, AK 99501

The documents are also available at the Department’s website at: http://dec.alaska.gov/Applications/Air/airtoolsweb/AirPermitsApprovalsAndPublicNotices.

Opportunity for Public Participation: Any interested person may present written statements relevant to the preliminary decision within 30 days after the first publication date. ADEC will consider all comments received and make any changes ADEC finds beneficial or necessary to assure compliance with 18 AAC 50 or state law. ADEC will issue a final decision to issue or deny the permit after the close of the public comment period. 

 

ADEC complies with Title II of the Americans with Disabilities Act of 1990. If you are a person with a disability who may need a special accommodation in order to participate in this public process, please contact Claire Fishwick at (907) 465-5066 or TDD Relay Service 1-800-770-8973/TTY or dial 711 by the 15th day of this public comment period to ensure that any necessary accommodations can be provided.

 

Comments relevant to the preliminary minor permit and proposed operating permit may be submitted electronically via ADEC’s public notice site at https://aq.alaskadec.commentinput.com/?id=9EjFr or to Grace Germain by mail to 555 Cordova Street, Anchorage, AK 99501, or by email to grace.germain@alaska.gov. Comments must be received by close of public comments period at 11:59 p.m. Alaska time on April 15, 2022.  

Publish: Alaska Web                        

Close of Public Comment Period: 11:59 P.M., April 15, 2022