Framework for Variance Discussion
Variance “Mini” Agenda for October 19
1. Introduction - DEQ’s current view of variances
2. Goals and objectives for use of individual variances
3. Overview of the EPA Economic Analysis Guidance
4. Illustration scenarios and examples from other States
Handouts
1. Framework for Variance Discussion
2. DEQ’s Current Views, Goals and Objectives for Variances
3. Variance Illustration Scenarios
4. Summaries of Variances (that have been granted and approved by EPA)
5. Overview of the EPA Economic Analysis Guidance
Meeting Objective
The purpose of today’s discussion is to increase everyone’s understanding of variances. DEQ will describe scenarios under which a variance could be an appropriate permitting solution, as well as:
• the information that would need to be provided to DEQ to support an individual variance request, and
• the requirements that would be included in the permit during the variance period.
Scenarios included for discussion today:
• Industrial facility/legacy man-made background pollutant
• Municipality/economic feasibility
• Inflow and Infiltration issue
• Groundwater cleanup/natural pollutant
• Industry/economic feasibility scenario
DEQ is seeking RWG reaction and input with regard to how variances may be granted under these scenarios. This document and associated scenarios are intended to lay the groundwork for a discussion of how DEQ would grant individual variances; however, we expect this discussion may also lead us to identify a situation that may be appropriate for a multiple discharger variance. DEQ would need to develop additional rules to address that situation, and would have that discussion separately with the RWG.
Focus of Variance Discussions with RWG:
1. Reach a common understanding of the major aspects of how DEQ would evaluate and make a decision whether or not to grant a variance based on the justification.
2. Feedback from the RWG on the situations requiring interim actions to reduce or offset pollutant loading.
3. Feedback from the RWG on the types of actions or milestones that would be required of a facility in particular scenarios.
Items DEQ will complete outside of the RWG:
1. Consult with DOJ to revise the administrative process relative to the variance provision.
2. Agreement with EPA on coordination and approval of variance requests.
3. Take feedback from RWG and further develop and document in an Internal Management Directive the information and rationale needed for DEQ to evaluate and grant a variance.
DEQ’s Current Views, Goals, and Objectives for Variances
Current View of Variances:
1. Variances are a currently available, legal tool under federal CWA and state water quality rules.
2. Variances have been successfully used in other states and approved by EPA; they can and have been used as a tool to make environmental progress.
3. Variances cannot be granted unless they are justified based upon one of the factors at 40 CFR 131.10(g).
4. Cumbersome administrative procedures should not effectively prohibit the use of this tool where it is justified.
5. This tool could be a viable solution for the background pollutants issue.
6. This tool could provide opportunities to use solutions such as offsets or trading where meeting a WQBEL is not feasible through end-of-pipe treatment, but offsets or trading provide cost-effective toxics reduction opportunities.
7. Variances should be granted for the minimum amount of time needed and justified; in no case shall a variance period be greater than 10 years.
Goal Statement:
Propose revisions to Oregon’s variance authorizing provision that will:
• Ensure variances, where justified, are granted and implemented consistently through a transparent, well-defined, and reliable process;
• Foster water quality improvement during the variance period; and
• Promote certainty in the variance process by ensuring that variances can be granted within a reasonable time frame.
Objectives:
1. Propose rule revisions to ensure efficiency in the administrative process for granting individual variances, while also maintaining integrity in that process.
2. Propose rule revisions to clarify what interim conditions and requirements apply during the variance period.
3. Describe the information and rationale needed to request and justify a variance. (IMD)
4. Describe how DEQ will coordinate internally and with EPA to foster predictable and timely processing and decisions on variance requests. (separate interagency agreement)