UNITED SOYBEAN BOARD Environmental Audit Presentation Overview • • • • • • Background The CAFO Rule Federal Air Quality Requirements State Regulatory Comparisons Total Maximum Daily Load (TMDLs) Compliance Costs and Assistance Programs Environmental Audit BACKGROUND Environmental Concerns from Livestock Operations • Water Quality – Sources • Manure runoff • Lagoon failures – Pollutants • • • • • • • Nutrients (N, P) Pathogens Organic matter Metals Salts Hormones Antibiotics • Air Quality – Dust – Odors and Other Emissions • Hydrogen Sulfide (H2S) • Ammonia • Methane Why the Environmental Focus? • I990’s: The “Perfect Storm” – Changing Livestock Industry • Consolidation – Impacts from Nutrients • In Central US watersheds, manure contributes – 37% N – 65% P • Historic over-application of P – Urbanization (odors) Proportions of Non-Point Nitrogen Sources in Selected Watersheds Palouse River , WA Platte River, NE Red River of the North, MN, ND Fox River, WI White River, IN Source: Puckett, 1994 (USGS) Susquehanna River, PA Willamette River , OR Potomac River, D C Snake River , ID Tar River, NC San Joaquin River, CA EXPLAN ATION Nitrogen source Atmosphere Fertilizer Manure Point sources Connecticut River , CT Altamaha River, GA South Platte River, CO Apalachicola River, FL Trinity River, TX White River, AR Source: Puckett, 1994 (USGS) Percentage of Soil Samples with High Soil Test P Source: Fixen and Roberts, 2000 60 22 59 55 22 48 53 31 42 42 53 38 Percent of samples testing high or above <25% 25 – 50% >50% 54 58 40 42 41 41 64 47 55 31 66 53 40 21 84 75 85 82 78 69 40 63 42 62 74 61 41 43 76 30 79 39 54 49 North American average of 47% soils testing medium or below for P Nutrient Concerns • Nitrogen – Leaching to groundwater – Primary concern is health • Drinking water standard of 10 mg/L • Phosphorus – Transport to surface water – Primary concern is eutrophication Environmental Audit THE CAFO RULE The Road to Regulation USDA/USEPA Unified National AFO Strategy CAFOs defined as “point sources” 2003 Revised CAFO Rule Issued Clean Water Action Plan 2008 Revised CAFO Rule Issued “Original” CAFO Rule 1972 1974 1Waterkeeper 1998 2000 2012 Final CAFO Rule Issued 2002 2004 2006 2008 2010 2012 Court Ruling1 Court Ruling2 Alliance et al. v. EPA (2nd Circuit Court), 2005 2National Pork Producers Council v. EPA (5th Circuit Court), 2011 A CAFO is…. • An Animal Feeding Operation (AFO) that… – Confines animals for 45 days in 12 months – Sustains no vegetation in confinement area • … and meets the following criteria: – Large • Based on number of animals; varies by animal type – Medium • Stream running through confinement area • Man-made conveyance to surface water – Small • Same qualitative criteria as medium • Determined to be a significant contributor of pollutants to surface waters (“designated”) CAFO Size Thresholds Animal Type Large CAFO Medium CAFO Mature Dairy Cows (milked or dry) > 700 200 - 699 Veal Calves > 1,000 300 - 999 Cattle (other than mature dairy cows or veal calves) > 1,000 300 – 999 Swine ( > 55 pounds) > 2,500 750 – 2,499 Swine (< 55 pounds) > 10,000 3,000 – 9,999 Turkeys > 55,000 16,500 – 54,999 Laying Hens or Broilers (liquid manure handling > 30,000 9,000 – 29,999 systems) Chickens (other than laying hens & other than liquid > 125,000 37,500 – 124,999 Laying Hens (other than liquid manure handling > 82,000 25,000 – 81,999 systems) Animal Unit (old terminology) >1,000 300-1,000 manure handling systems) Major Elements of CAFO Rule* • “Duty to Apply” for an NPDES permit – Only required if an actual discharge occurs • Effluent Limitation Guidelines – No discharge unless rainfall from greater than specified storm events (large CAFOs) – Best Management Practices * Including 2003, 2008, and 2012 revisions Major Elements of CAFO Rule (cont’d)* • Nutrient Management Plan (NMP) required – – – – All CAFOs must implement Keep onsite Must be submitted to regulators Terms of the NMP are incorporated into the permit • Annual report required • Can be implemented through general or individual permits * Including 2003, 2008, and 2012 revisions Driver for 2008 CAFO Rule Revisions Waterkeeper vs. USEPA (2nd Circuit Court), 2005 NMPs are effluent limitations and so must be: • reviewed by permitting authority • included in NPDES permits • subject to public hearing process USEPA can regulate only actual discharges, not potential discharges USEPA to investigate pathogens Driver for 2012 CAFO Rule Revisions National Pork Producers Council vs. USEPA (5th Circuit Court), 2011 Vacated CAFO “duty Removed voluntary to apply” provisions certification option for for proposed unpermitted CAFOs discharges Emerging Issues and Initiatives • Manure classification – Some say manure classified as hazardous waste under current “Superfund” law – Congress continues to seek exemption under “Superfund Common Sense Act” • Endocrine disruptors – USEPA Multi-Year Plan (2007) focus: • Tools to evaluate CAFOs as source of environmental estrogens • Evaluate occurrence and potential risks of endocrine-disrupting chemicals in CAFO discharges Environmental Audit FEDERAL AIR QUALITY REQUIREMENTS Federal Air Quality Regulations • Regulations: – Clean Air Act – Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA) – Emergency Planning and Community Right-to-know Act (EPCRA) – Greenhouse Gas Reporting Rule • Together, address: – – – – Particulates (dust) Nitrogen Oxides (NOx) Hydrogen Sulfide (H2S) Ammonia (NH3) CERCLA/EPCRA Requirements • Historically, EPCRA and CERCLA required AFOs to report emissions >100 lbs in in 24-hour period of NH3 and H2S: • December 2008: EPCRA/CERCLA revisions: – Exempted small AFOs from reporting at all under EPCRA • Large CAFOs must still report if emissions trigger thresholds – Exempted all AFOs from reporting under CERCLA – Changes challenged by environmental groups and livestock associations • October 2010: Court remanded rule to USEPA for reconsideration/modification – New or revised rule expected in 2012 Greenhouse Gas Reporting Rule (40 CFR Part 98.360) • Effective December 2009 • AFOs required to report if they emit > 25,000 metric tons carbon dioxide (CO2) equivalents • Manure management (Subpart JJ) requirements not yet enforced because of Congressional restriction – The FY 2013 House Subcommittee Report Section 421 continues a provision prohibiting the expenditure of funds for enforcement • Will only affect only very large operations Enforcement of Federal Air Regulations for CAFOs • Difficulties in implementing air regulations – No consensus on emission factors to use – Would need to measure emissions at each facility to determine which operations might meet thresholds/triggers • National Air Emissions Monitoring Study (NAEMS) initiated to provide foundation for emission estimate methodologies – $4.6 M program – Funding from livestock producer associations National Air Emissions Monitoring Study (NAEMS) • Objectives: – Accurately assess emissions from livestock operations – Compile a database for estimating emission rates – Promote a national consensus for emission estimation methods and procedures • 2.5 year program – Data collection completed in 2011 NAEMS Facilities Source: Purdue University, NAEMS website National Air Emissions Monitory Summary (NAEMS) Results • Extensive data collection of air emissions at animal farms • Few summary documents to date • Study criticized – Not enough facilities monitored to represent different types of farms and manure handling practices – Mitigation techniques were not investigated • USEPA says additional data will supplement study • USEPA published draft emission-estimating methodologies in March 2012: – dairy/swine lagoons – broiler operations • Additional methodologies expected Air Quality Expected to be an Increasing Focus • Enforcement – New emissions estimating models will facilitate – GHG monitoring – Expected to impact mostly large facilities • Ammonia regulations – States allowed to regulate NH3 emissions from agricultural operations to meet NAAQS for PM2.5 – Development of secondary NAAQS for NH3 recommended Environmental Audit STATE REGULATORY COMPARISONS Implementation of Federal CAFO Rule State-based Air Quality Regulations • Generally different focus than federal rule • Qualitative – “Nuisance” prohibitions – Odor management plans • Quantitative – H2S, Total Reduced Sulfur (TRS) limits • Concentration as ppb or ppm – Odor limits • Detection-to-threshold, D/T • Odor concentration units (o.u.) Odor Standards States with Sulfur Compound and Odor Standards State Sulfur Compound Concentration 2 Dilutions-to-Threshold (D/T) at receptor, 7 D/T at property line Colorado Kentucky Iowa 7 D/T 30 ppb H2S 8 to 24 D/T depending upon property use (i.e., residential, industrial, etc.) Illinois Minnesota 30 ppb H2S (30 min. avg., detected twice in 5 days; 50 ppb H2S (30 min. avg. detected twice per year) Missouri 0.05 ppm (30 min. avg. detected twice per year) Nebraska 10 ppm TRS (1) max 1 minute avg; 0.10 ppm TRS max 30 minute rolling avg. North Dakota North Carolina Wyoming Odor Limit 5.4 D/T (field measurement), 7 D/T violation (lab measurement) 7 Odor Units For new or modified swine facilities: 7 D/T at property line or max n-butanol concentration is 225 ppm 7 D/T at property line H2S = hydrogen sulfide TRS = total reduced sulfur (includes H2S) D/T = dilutions-to-threshold (number of dilutions needed to make odor undetectable) Odor Control Requirements for CAFOs Other Control Mechanisms • Public health/nuisance ordinances • Moratoria • Legal action – Nuisance-based • “home rule” vs. “right to farm” – Water-quality-based – Instigated by private and public entities • Agreements/settlements – $15M Smithfield Foods (NC) – $3M Seaboard (OK) – $1M Premium Standard Farms (MO) Example of Local Control Variability: Missouri Ordinances & Zoning County Health Ordinance County Zoning Ordinance Township Zoning and Planning Township Zoning and Planning and County Health Ordinance County Health Ordinance Passed By County Health Board But Challenged by County Commission Source: http://nmplanner.missouri.edu/regulations/mocountyrules/ Local Controls on AFOs Trends to Watch • Move to agricultural agency as lead for CAFO environmental programs • Focus on climate change – Voluntary greenhouse gas emission reductions – Carbon credits/trading – Programs • USEPA AgStar • Nutrient trading Environmental Audit TMDLS TMDL Overview • Regulatory program under the Clean Water Act to address impaired waters • Impaired water: Water quality in receiving water does not meet a water quality objective – Numeric standards for certain pollutants (e.g. coliform bacteria) – Narrative (toxic to aquatic organisms) • Impairments are water body and pollutant specific • Federal mandate for states to develop numeric nutrient criteria – May increase stringency of CAFO permits TMDL Process WLA – wasteload allocation LA – load allocation MOS – margin of safety TMDLS and CAFOs • Pathogens and nutrient impairments are primary concerns for CAFOs and TMDLs • Best Management Practices (BMPs) can be used to reduce pollution from CAFOs TMDL Case Study • North Bosque River, Texas – Phosphorus (P) loadings caused excessive algal growth – Primary sources • Wastewater Treatment Facilities (WWTFs) • AFOs and CAFOs – 2001 TMDL Action items: • New and amended permits for WWTFs and CAFOs • Revised rules for CAFOs • BMP implementation for AFOs/CAFOs • Education/outreach • Environmental monitoring • Compliance enforcement – By 2006, watershed met goal of over 50% in average P reductions Nutrient Criteria • Nutrient pollution is leading cause of water quality impairments in the US • USEPA has identified animal agriculture as a significant source of nutrient pollution • USEPA requires nutrient criteria development for: – – – – Rivers/streams Lakes/reservoirs Estuaries/coastal waters Wetlands in some cases • Criteria to evaluate nutrients may include phosphorus, nitrogen, Secchi depth, chlorophyll a Nutrient Criteria Implementation Status Gulf of Mexico Hypoxia Task Force • Partnership between state and federal agencies, including USEPA and USDA • Established in 1997 with goal to reduce size, severity and duration of hypoxia zone • Watershed based task force, not currently a TMDL driven process Map taken from Task Force 2011 Annual Report Chesapeake Bay TMDL • Establishes in 2010 a pollutant reduction plan for N, P and sediment • States submit watershed plans to address required load reductions • Milestones for control measures: – By 2017: 60% required measures implemented – 2025: All measures implemented Environmental Audit COMPLIANCE COSTS AND ASSISTANCE PROGRAMS Number of Operations vs. Cost of Compliance Distribution of No. of CAFO Operations verses Distribution of CAFO Compliance Costs by Sector 100 90 80 Broilers 2,204 Broilers $20.5 Hogs $34.8 Percentage 70 60 Hogs 5,461 Dairy $151.1 50 40 30 Dairy 3,429 20 10 0 Cattle $88.2 Turkeys Layers - Wet Layers - Dry Broilers Hogs Dairy Veal Heifers Cattle Cattle 1,955 No. Potential Operations Defined or Designated as CAFOs by Industry (1997) Estimated Industry-wide Compliance Costs by CAFO Sector ($2001, millions, Pre-tax) Compliance Costs vs. Operation Size Distribution of Estimated Industry-wide Compliance Costs by CAFO Sector and CAFO Size Category (2001 Dollars, Millions, Pre-tax) 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Cattle Heifers <300 AU (designated) $0.5 $0.0 $0.1 300 -1000 AU $1.9 >1000 AU $85.8 $0.1 Veal $0.1 $2.4 $3.8 Dairy $0.9 $22.0 $128.2 Hogs Broilers $0.4 $1.3 $9.5 $2.4 $24.9 $16.8 CAFO Sector Layers - Layers - Turkeys Dry Wet $0.2 $0.1 $0.3 $0.1 $0.5 $0.3 $7.2 $8.4 $8.1 Per Facility Compliance Costs for New CAFO Rule Annual Pre-tax 2001 Dollars Cattle Heifers Veal Dairy Hogs Broilers Layers - Dry Layers - Wet Turkeys Average Across All Sectors May not add due to rounding >1000 AU $48,584 $413 $316,667 $88,414 $6,346 $10,294 $9,877 $21,932 $20,876 300 -1000 AU $10,920 $435 $342,857 $11,288 $6,397 $4,615 $3,846 $20,833 $8,108 <300 AU (designated) $33,333 $0 $33,333 $30,000 $7,692 $25,000 $100,000 $12,500 $30,000 $26,905 $8,783 $22,093 Total $45,115 $424 $286,364 $44,065 $6,372 $9,301 $9,908 $21,687 $20,000 $21,525 Assistance Programs • USDA-NRCS Environmental Quality Incentives Program – Payments 1997-2002: $107M – Payments 2011: $865M – Farm BIll expired October 2012 for first time since 1950’s, but EQIP funding extended to 2014 • • • • Section 319 Non-point Source Program FSA Farm Ownership and Operating Loans SBA Pollution Control Loans AgSTAR – Promotes use of methane generation and capture technologies at livestock facilities • Other national and state-based programs available EQIP: Fiscal Year 2011 Allocations to States AgSTAR Anaerobic Digester Projects 20002011 Conclusion • Implementation of federal 2012 CAFO Rule – Varied status across country, especially due to recent 2011 ruling National Pork Producers Council v. USEPA. • Air Quality Regulations – States have shown increased regulatory focus on odor management – Potential increased enforcement of federal regulations pending development of emission estimating models • General – Increased focus on endocrine disruptors – Possible “slow trend” to agricultural agency oversight – Focus on greenhouse gases – Possible trends away from County/local controls Questions? Photos Courtesy NRCS Photo Gallery Art by Scott Patton, NRCS