A Regional Approach to Managing the Ecosystem

1. Managing Cumulative Effects of Air Emissions in the Capital Region.  A Regional Approach to Managing the Ecosystem Oil Sands Environmental Management Alberta Environment

2. Oil Sands Basics • Three large oil sands deposits located in Northern Alberta contain approximately 1.7 trillion barrels of crude bitumen and cover an area of roughly 140,200 km2 • 173 billion barrels are economically viable for extraction • with today’s technology

3. Oil Sands Basics • The petroleum product in oil sands is called bitumen • Raw oil sands are a naturally occurring mixture of bitumen (10-12%), water (4-6%), and sand and clay (80-85%) • Crude bitumen is semi-solid, extremely viscous and dense, as well as high in sulphur and metals content • Recovered by surface mining and in-situ methods • Bitumen is upgraded to synthetic crude oil

4. Oil Sands Basics – Surface Mining Open pit mining by truck and shovel is the current method used to recover shallow bitumen deposits Surface mining will account for 10 – 20 per cent of oil sands recovery

5. Oil Sands Basics – In-situ • The name in-situ is Latin for in place, and in-situ techniques will represent a majority of oil sands extraction. In-situ is needed for deposits too deep for surface mining • Methods include Cyclic Steam Stimulation (CSS), Steam Assisted Gravity Drainage (SAGD), and Toe to Heal Air Injection (THAI)

6. Oil Sands Basics – Upgrading and Refining • The bitumen from primary extraction at oil sands mines or in situ operations is piped to upgraders. Upgraders refine the bitumen into crude oil (through coking or hydro-conversion). • Currently about 2/3rds of Alberta’s bitumen is upgraded to synthetic crude oil before being shipped to refineries. The remaining 1/3rd is blended with diluents and shipped to refineries outside of Alberta. • The crude oil is shipped to refineries in Canada and internationally (mostly USA)

7. Environmental Concern Concerns related to the environment include: • Land disturbance - threats to boreal forest, wetlands and biodiversity • Air Pollution • GHGs and Climate Change • Water Usage • Water Pollution • Tailings Ponds • Dangerous Wastes

8. Environmental Management Business as Usual Air Quality Management Impact on Environment Water Management Land Reclamation/Tailings Management GHG Management Cumulative Effects Management Desired State Oil Sands Development

9. Air Management in the Industrial Heartland Area

10. Alberta’s Capital Region • The population in the Capital Region's 25 communities from Legal to Leduc and from Wabamun to Lamont, is expected to nearly double by 2041

11. Opportunity & Challenge • Opportunity: • Sustainable quality of life and environment • Enable smart growth • Keep air, water, and land clean • Challenge: • Regional and comprehensive • Integrated and future focused • Effective collaboration among stakeholders and timely action.

12. Capital Region Integrated Growth Management Plan • Project initiated by Premier Stelmach in June 2007 • Report released December 2007 • Environmental issues identified as primary responsibility of the provincial government • Cumulative effects management approach in the Industrial Heartland sited, including the setting of a cumulative airshed target for all large industrial facilities • Capital Region Board established April 2008 • Long range planning for growth now underway

13. Alberta Environment Role • Minister Renner announced the Heartland Cumulative Effects initiative in October 2007 • Includes: • Regional targets for air, land and water • Emissions thresholds for NOX and SO2 • Framework to address water quantity and quality • Land issues and impacts • Working with stakeholders to validate and implement air land and water framework

14. Air – The Physical System IMPORT EXPORT [Terrain effects] EMITTINGManagement of SourcesSource Monitoring DISPERSINGModellingAmbient Monitoring RECEIVINGResearch (Studies)Effects Monitoring AENV regulatory responsibility is limited to this activity.Also, potential federal overlap here.

15. Monitoring of particulate matter and ozone indicates that ground-level ozone levels are approaching the Canada Wide Standards (CWS) Exceedance Trigger Action Level. Stakeholders in the Edmonton area have been charged with developing an air quality management plan by the end of 2008 aimed at taking preventative actions to ensure that air quality levels remain below CWS levels Canada Wide Standards for Ozone and PM PM and Ozone PM = very small particles that can be directly emitted by any combustion source e.g.. Automobiles and industrial sources; which create chemical reactions in the atmosphere involving NO2, SO2 and other pollutants. Ozone = major component of summer-time smog and is produced during hot weather conditions by emissions of chemicals from automobiles, industry and other sources in and around urban areas.

16. Air Management in the Industrial Heartland • Need for regional air management in the Industrial Heartland: • Amount and pace of industrial development • Ambient air quality moving toward ambient objectives • Federal Clean Air Regulatory Agenda • Regional air management system to achieve desired outcomes for the region (environmental, social, and economic) by addressing cumulative effects to air including: • Industrial point source emissions • Industrial non-point source emissions • Residential and biogenic sources

17. Air Background • Commitment of the Department to establishing and enforcing acceptable environmental outcomes • Growth in industrial activity in Capital region area • Need for an air quality management plan for the region identified through Particulate Matter and Ozone management framework • Regulatory stability to inform business decisions and drive behaviour • Regional effects on air quality lend to a regional (Airshed) approach for policy-making • Need to inform engineering, financial decisions • Federal Clean Air Regulatory Agenda

18. Air Management in the Industrial Heartland • The work done to date on industrial point source emissions of NOx and SO2 is a subset of overall air management in the region • Other air management initiatives in the region include: • Emissions Management Framework for the Electricity Sector (developed by Clean Air Strategic Alliance) – includes emission standards for coal-fired power plants • Management Framework for Particulate Matter and Ozone (developed by the Clean Air Strategic Alliance) – will include non-point sources

19. Air Management area Air management region (outlined in blue) is larger than Heartland zoning area.

20. Industrial Air Management Framework • Regional targets for NOx and SO2 emissions in the Industrial Air Management Area announced by AENV in October 2007 • Multi-stakeholder working group struck to advise Minister on design and implementation of an Industrial Air Management Framework, effective 2010

21. Industrial Air Management Framework • Multi-stakeholder Working Group to ensure that advice provided balances environmental and economic outcomes, and would: • Align with Alberta’s objective to foster the development of a world class chemical cluster • Maintain competitive advantage over other North American jurisdictions • Provide regulatory certainty to investors • Allow time for examination and implementation of cost effective options for regional emissions reductions • Provide public assurance re. future development and bolster support of value maximization strategy

22. Air Working Group • Alberta Environment has been working with stakeholders to: • Validate the information used in establishing the thresholds • Design the management framework • Membership includes: • Industry • Environment Canada • GoA Partners • Municipal governments • ENGOs • Links to Particulate matter and ozone planning process

23. Review of Thresholds • Commitment was made to validate information used is setting thresholds • Thresholds were based on a combination of: • Modeling • Technology • Federal Clean Air Regulatory Agenda • Particulate matter and ozone levels and need for management planning • Revisions made to air dispersion modeling inputs • Flaring (during upset conditions) raised as concern by both residents (impact) and Industry (ability to manage within the threshold) • Review of thresholds is not yet complete

24. Next Steps for Air Complete air management framework – two options presented to Minister of Environment; Minister to announce decision in fall 2008. Complete further analysis ( Ozone Modeling, Economic Analysis, Jurisdictional Review; Monitoring); develop regulatory tools if needed enable the air management framework Complete PM and Ozone management plan in winter 2008 Optimize management processes Environmental assessment and approval Regional monitoring and sustainability reporting

25. Alberta Environment Desired Outcomes • Cleanergrowth • Air quality will remain good for area residents • Provide best combination of environmental and economic outcomes • Requiring and Incenting emission reductions allows for future growth without sacrificing environmental health • Maintain provincial regulation of air pollutants

26. Cumulative Effects Approach • Outcome based (where do we want to end up) • Set targets/limits/thresholds and make decisions to help get us there • Manage collective impacts within these targets/limits/thresholds • Monitor and evaluate • Adapt and adjust as needed Industrial Heartland Cumulative Effects Prototype • Response of the Premier’s direction to Minister Renner to “Develop a new environmental management regulatory framework to enable sustainable development by addressing the cumulative effects of development on the environment”

27. Questions? • Randall Barrett randall.barrett@gov.ab.ca Cumulative Effects Website at Alberta Environment • http://www.environment.alberta.ca/1930.html