Government Affairs Brief

Joel Pastorek, Executive Vice President of Integrated Services & Logistics and Exploration & Production at Ergon, Inc., began his career with the company 18 years ago as a Project Engineer.

“My introduction to terminals began with overseeing expansion projects at our terminaling facilities,” Pastorek said. “I later moved into operations leadership roles within our terminaling business.”

Throughout his career, Pastorek has found one thing has risen to the top in terms of his favorite aspect of his job.

“The best part of my job is the people,” he said. “I have an opportunity to work alongside team members to develop logistics solutions that provide value to our customers.”

In a May 9, 2023, meeting with industry representatives, including ILTA members, the Environmental Protection Agency (EPA) discussed an upcoming Technology Review of the New Source Performance Standards (NSPS) for storage tanks, 40 CFR Part 60 Subpart Kb, which applies to the construction, reconstruction, or modification of tanks storing volatile organic liquids. Pursuant to a consent decree in Environmental Integrity Project, et al. and Concerned Citizens of St. John et al. v. Michael Regan, the EPA is expected to release a proposed new NSPS, 40 CFR Part 60 Subpart Kc, by September 29, 2023.

On May 23, EPA released its proposed greenhouse gas (GHG) standards for fossil fuel-fired power plants, a suite of guidelines to improve the emissions performance of applicable electric generating units. While the proposal would set new limits for certain gas, coal, and other types of power plants, the proposal also sets a pathway for the co-firing of low-GHG hydrogen. EPA’s proposal reflects the growing demand for more sustainable fuels, justifies a growing network of hydrogen infrastructure, and offers a key role for liquid terminals to play in the energy transition.

Like many industries, the power sector provides a strong opportunity for liquid terminals to benefit and contribute towards the energy transition. EPA’s proposal drives additional demand for hydrogen by setting forth a potential best system of emissions reduction (BSER) for low-GHG hydrogen. These potential pathways allow for the co-firing of low-GHG hydrogen by 30 percent by volume by 2032 and 96 percent by volume by 2038, driving efficient electricity generation and reducing GHG emissions. These pathways deliver a signal to generating companies and utilities to shift the mix of generating assets towards lower-carbon fuels, and in turn providing liquid terminals a key role in the hydrogen supply chain under the energy transition as there will be a growing need for substantial hydrogen transportation, storage, and distribution nationally.

Over the course of two days and three panels, ILTA’s annual conference featured renown experts who delved into the challenges, advances and updates regarding PFAS chemicals and their presence in the firefighting foams commonly used by ILTA members. Importantly, the experts provided information on remediation techniques where contamination has occurred and on the development of PFAS-free foams for use at terminal facilities. Each of these panels provided both practical and strategic information aimed at ensuring participants have the tools needed to navigate this changing and complex issue. Here’s a quick look at what was covered:

On May 3, Senator Cynthia Lummis (WY), along with Senators John Boozman (AR), Kevin Cramer (ND), Lindsey Graham (SC), Markwayne Mullin (OK), Peter Ricketts (NE), Dan Sullivan (AK), and Roger Wicker (MS) sponsored a package of five bills regarding PFAS release liability which were referred to the Committee on Environment and Public Works. Each of these bills exempted a specific type of organization from CERCLA obligations regarding the release of per and polyfluoroalkyl substances. This includes agricultural operators, solid waste/compost operators, water/wastewater treatment facilities, AFFF users and airports. The bills prevent any third party, including federal and state governments or Indian Tribes, from recovering costs or damages from these groups.