Background

The popularity of craft beer has been steadily increasing as more people want to support small, local businesses and desire a more complex tasting beer. As demand for craft beer has increased, so has supply. By the end of 2016, there were over 5300 craft breweries in America, with another 2000 in the planning stages—a seventeen percent increase from 2015. The Brewers Association categorizes an American craft brewery as “small” if less than six million barrels a year, “independent” if less than twenty-five percent of the brewery is owned or controlled by a non-craft brewer industry member, or “traditional if the majority of beer derives flavor from traditional brewing ingredients and their fermentation).

While beer lovers the world over can appreciate a good craft beer, behind the industry lies a slew of adverse environmental consequences. One of the most pressing environmental issues craft breweries are facing is the processing and disposal of wastewater. When brewery wastewater is dumped into public waters without being treated, it can cause plant, algae, and bacteria growth, which all lead to reduced oxygen levels and can eventually lead to the eutrophication of a body of water, making it uninhabitable to most aquatic life. This is mostly an effect of the solid waste in brewery wastewater – including spent grains, yeast, and hops – that can weigh up to fifty pounds per barrel of beer produced.

Production and Regulation

Water is the most essential part of the brewing process. Not only does water make up about ninety percent of the actual finished product, it is used in every part of the production process from growing hops to cleaning the equipment after a brew. As a result, one barrel of beer takes about seven barrels of water to create using traditional methods. Accordingly, breweries use an enormous amount of water. The United States produces more than twenty million barrels of beer a year, and although craft breweries only contribute to twenty percent of total U.S. production, the craft brewing industry can potentially place a huge strain on water supplies. However, craft breweries have shown themselves to be sustainably minded and oriented toward conservation. Many craft brewers have been able to decrease the amount of water used in production from seven barrels to just three per barrel of beer.

The Clean Water Act (“CWA”) regulates the discharging of all pollutants discharged into United States waters. The CWA has specific requirements for discharging industrial waste into publically-owned water treatment facilities. Unlike most domestic wastewater, brewery wastewater is high in sugar, alcohol, solids, and temperature which municipal water treatment plants were not designed to process. For this reason, breweries are often required to pre-treat their wastewater before sending it to municipal treatment plants. Violating the Clean Water Act can lead to enormous fines, which can cripple a craft brewery as most are relatively small businesses. Yuengling, a major craft brewery out of Pennsylvania, was recently charged with allegedly violating the CWA by the Department of Justice for not pre-treating its wastewater. Although both parties entered into a consent decree—a settlement agreement where the defendant does not admit liability—the brewery still had to pay 2.8 million dollars in penalties for violating the CWA as part of the settlement. Aside from the CWA, municipal water regulations may also affect craft breweries by limiting certain types of pollution such as: biochemical oxygen demand (BOD), chemical oxygen demand (COD), total suspended solids (TSS), total dissolve solids (TDS), and pH. Such local regulations can also carry huge fines if violated.

Wastewater Treatment Advances

Managing wastewater is one effective way that craft breweries have found to reduce overall water consumption – saving water and simultaneously reducing costs of operations. Bear Republic Brewing Company out of Sonoma, California has installed a bio-electrically enhanced wastewater treatment mechanism called EcoVolt in response to the crippling drought that California breweries are facing. EcoVolt is unique as the first and only industrial-scale, bio-electrically enhanced treatment system. The system introduces electrically active organisms that eliminate up to ninety percent of the biological oxygen demand—a pollutant. The system also converts carbon dioxide into biogas—mixtures of gases—hat can be used to generate heat and electricity for Bear Republic’s production process. EcoVolt allows Bear Republic to reuse around twenty-five percent of its wastewater, which cuts down the amount of water used for production to 3.5 barrels per barrel of beer instead of the traditional seven. As an added benefit, the system cuts Bear Republics’ baseload electricity use in half. Savings in both water and energy use have cut the brewery’s operational costs by hundreds of thousands of dollars annually. As Bear Republic has proven, installing new wastewater treatment systems is an effective way to save water and simultaneously reduce costs of operations in the long run. However, it is often too expensive for smaller microbreweries to install.

New Belgium Brewing Company out of Fort Collins, Colorado utilizes a different treatment process than Bear Republic. New Belgium uses microbes to consume residual biomass leftover from the brewing process. Aside from cleaning the water, the microbes also produce methane that is collected and turned into electricity that powers New Belgium’s production process. After being exposed to the microbes, the water is sent through an aerobic digester, which breaks down any remaining organic matter through the use of oxygen. New Belgium claims that its wastewater comes out so clean after the aerobic digestion process that the brewery could legally discharge it directly into the nearest river if it so wished.

As of now, wastewater is generally banned for human consumption, however Clean Water Services in Oregon is trying to change that. Oregon regulations have long allowed treated wastewater to be used for the industrial processes of the brewing process, but not as a part of the final product to be consumed. Clean Water Services petitioned the state for permission to use wastewater that has been treated with the company’s “high-purity” treatment system in beer, and were granted limited permission to do so. As a test run, Clean Water Services gave its treated wastewater to the Oregon Brew Crew, whose members made small batches of beer for a sustainable water brewing challenge. The company has recently installed its “high-purity” system at the four wastewater treatment plants it owns and operates in the Portland area, and the purity of the water exceeds even the most stringent standards for water quality. Clean Water Services is so confident in the effectiveness of its treatment system that it claims it can turn sewage into drinking water.

Conclusion

Although craft brewing is a water-intensive process, the industry has fortunately proven itself to be highly water conscious and dedicated to conservation. Most craft breweries are installing advanced wastewater treatment systems to offset both costs of production and costs to the environment. Although such options still remain relatively expensive, advanced wastewater treatments have proven to be a financially strategic option for those craft breweries that can afford it. Furthermore, such treatment options have the potential to cut a craft brewery’s water use in half, and in places where it may soon be legal to include wastewater in the finished product, water use could potentially be cut even further. Especially in the West, where drought periodically plagues the land, it is important that these advances in wastewater treatment continue to proliferate.

Jeremy Frankel

Image: Craft Beer Sampler. Flickr user QuinnDombrowski, Creative Commons.

 

Sources

Bear Republic Brewing Company and Cambrian Innovation Unveil Pioneering Wastewater Treatment to Energy System, Cambrian Innovation (Jan. 15, 2014), http://cambrianinnovation.com/bearrepublic_announcement.

Cassanra Profita, Why Dump Treated Wastewater When You Can Make Beer With It?, NPR (Jan. 28, 2015), http://www.npr.org/sections/thesalt/2015/01/28/381920192/why-dump-treated-wastewater-when-you-could-make-beer-with-it.

Hannah Fish, Effects of the Craft Beer Boom in Virginia: How Breweries, Regulators, and the Public Can Collaborate to Mitigate Environmental Impacts, 40 Wm. & Mary Envtl. L. & Pol’y Rev. 273 (2015).

Home Brew Competition to Feature Beer Made with Water from Wastewater Treatment Plant, Clean Water Services (Sept. 7, 2016), https://www.cleanwaterservices.org/newsroom/2016/home-brew-competition-to-feature-beer-made-with-water-from-wastewater-treatment-plant.

James Tilton, Drinking Beer is Not a Conservation Measure, U. Denv. Water L. Rev. (Nov. 24, 2015), http://duwaterlawreview.com/drinking-beer-not-a-conservation-measure.

K.C. Cunilio, An In-Depth Look at Yuengling’s 10 Million Dollar Clean Water Act Settlement, Porchdrinking.com (July 28, 2016), https://www.porchdrinking.com/articles/2016/07/18/in-depth-look-yuenglings-10-million-dollar-clean-water-act-settlement.

RJ Alexander, Sustainable Craft Brewing: The Legal Challenges, TriplePundit (June 6, 2012), http://www.triplepundit.com/2012/06/legal-issues-in-beer-brewing.

 

 


The highly-anticipated EPA study “Hydraulic Fracturing for Oil and Gas: Impacts from the Hydraulic Fracturing Water Cycle on Drinking Water Resources in the United States” (“study”) released in December 2016, sent shockwaves through media outlets due to a change in the language of the study’s major finding from the draft version that emerged in June 2015. The 2015 draft stated that the EPA “did not find evidence that” fracking mechanisms “have led to widespread, systematic impacts on drinking water in the United States.” In contrast, the new study revealed conclusions that describe “how activities in the hydraulic fracturing water cycle can impact—and have impacted—drinking water resources and the factors that influence the frequency and severity of those impacts.”

Because ambiguity in the study’s findings can be construed to support different sides, the study provides fuel for both anti-fracking activists and industry supporters. Nevertheless, the study also provides scientific insight into the process that can be used by state and local policy makers to create tailored regulations to mitigate potential water contamination risks. Thus far, the federal government has not passed any legislation directly addressing fracking, so much of the regulation has been left to state and local governments. Further, with the new administration’s plans to reduce the size of the EPA and roll back environmental regulation, state and local governments will likely continue to be the major source of fracking regulation.

The study provides local governments with much needed data about when risks of contamination are greatest and the factors that contribute to the occurrence and severity of contamination. Local governments can use the data to create targeted mitigation procedures and regulations to ensure that cheap energy sources can continue to be tapped while protecting valuable drinking water resources.

 

The Study

The goal of the EPA’s study was to assess the potential for activities in the fracking water cycled to impact the quality and quantity of drinking water, and identify factors that affect the frequency and severity of those impacts. The study broke down the fracking water cycle into five stages to examine the potential for contamination of drinking water during each stage. The stages and activities of the fracking water cycle are: (1) water acquisition; (2) chemical mixing; (3) well injection; (4) produced water handling; and (5) wastewater disposal and reuse. Each step will be summarized in turn along with policy recommendations.

 

Water Acquisition

Water acquisition is the first stage in the fracking process where ground water is withdrawn or surface water is transferred to make fracking fluids. The study found that fracking uses a small percentage of water relative to total water use with some notable exceptions. Notable for state and local governments, the EPA concluded that, despite fracking using a relatively small percentage of water, fracking water withdrawals can affect the quantity and quality of drinking water resources by changing the balance between other local demands. The EPA found that water management strategies could be used to reduce the frequency and severity of such impacts.

To address water acquisition concerns, local governments should explore alternative sources to be used for fracking in order to preserve freshwater resources for other uses. Incentivizing the recycling of produced water and tapping alternative resources such as brackish water to be used in the fracking process would mitigate the impact that fracking water acquisition has on local resources.

 

Chemical Mixing

Chemical mixing is the stage in the fracking process where water is mixed with sand, proppants, and other additives at the wellsite in preparation for injection. The EPA found that spills of fracking fluid and additives during chemical mixing have reached surface water resources in some cases and have the potential to reach ground water resources. Large volume spills have the greatest potential to reach ground water resources, and highly concentrated spills have the potential to most severely impact drinking water resources. Naturally, large volume spills have the potential to increase the frequency of impacts on drinking water, and groundwater impacts would likely be more severe than surface water impacts given that it is generally difficult to remove chemicals from groundwater resources.

Chemical mixing concerns require regulations to mitigate the potential for spills, especially when large volumes or highly concentrated mixtures are being handled. The oil and gas industry could play a major role in spill mitigation by adopting standard mixing and handling procedures.

 

Well Injection

Well injection is the point in the water cycle when fracking fluids are injected into a production well in order to free oil and gas molecules from the targeted rock formation. The EPA found that water in the injection stage has impacted drinking water resources due to mechanical failures that have allowed gases or liquids to move to underground drinking water resources. The study highlighted the importance of the distance of vertical separation between the targeted rock formation and drinking water resources by highlighting cases of contamination where little or no vertical separation existed between the targeted formation and drinking water resources existed.groundwater in Pavillion, Wyoming.

Geological surveying can be used to analyze whether adequate vertical separation exists between the targeted formation and drinking water resources. However, this is a limitation identified by the study because most of the geological information is proprietary to the operator and is not readily searchable by the public. The study asserts that the presence of casing, cement, and thousands of feet of rock between drinking water and the target formation can reduce the frequency or impacts during the water injection stage. However, when inadequate vertical separation exists, local governments should impose permitting requirements based on environmental impacts studies in order to mitigate instances of contamination during the well injection stage. Additionally, casing and cement integrity should be monitored before and after injection, and pressure should be monitored to ensure that the barriers did not fail during the process.

 

Produced Water Handling 

Produced water handling is the stage when water returns to the surface after fracking and is transported for disposal or reuse. The EPA found that spills of produced water during the water handling stage have reached groundwater and surface water resources in some cases. Like water spilled in the mixing stage, large volume spills have higher potential of reaching groundwater resources. Furthermore, the saline produced water can potentially migrate through soil into groundwater resources, leading to longer-term groundwater contamination.

As with mixing concerns, produced water handling impacts can be mitigated by enforcing standardized collection and handling procedures. Minimizing human error could greatly reduce the frequency and severity of spills while handling produced water. Also, creation of response mitigation plans for when spills do occur would reduce the severity of impact from spills.

 

Wastewater Disposal

The wastewater disposal and reuse stage typically involves the injection of produced water into disposal wells. Water is sometimes disposed of by using evaporation ponds and percolation pits also. Wastewater is sometimes put to beneficial uses such as irrigation if the quality is high enough, or it can be treated at water treatment facilities and discharged into surface water resources. Additionally, an increasing percentage of produced water has been reused in the fracking process. The EPA found that aboveground disposal of fracking water has impacted the groundwater and surface water in some instances, particularly where water was inadequately treated before discharge into surface water resources. Disposal in lined and unlined pits has also impacted groundwater and surface water resources, particularly because unlined pits provide a direct pathway for contaminants to reach groundwater. The EPA also noted that disposal wells have been associated with earthquakes in several states, thus reducing the availability of their use.

Each method of disposal and reuse presents unique problems that require collaboration between the industry and local governments. Increasing the availability of water treatment facilities is an attractive solution, because treated water could in turn be used for other beneficial uses. However, treatment is expensive and would likely require public and industry investment. The potential to turn produced water into useable water could help Colorado communities that have growing domestic needs as well as growing industrial needs meet their growing water demands. Funding mechanisms such as tax-exempt bonds, public improvement fees, or tax increment financing could be used get water treatment facilities built. Additionally, depending on which entity would have the legal rights to the newly cleaned water, water could be sold on the open market to help service the debt that was incurred by the entity to build the facility.

 

Conclusion

In conclusion, fracking continues to play a vital role in helping the United States achieve its energy goals. The study provides an initial roadmap of areas for local governments to target potential risks of drinking water contamination during the fracking process in a meaningful way. The study has set local governments up to create targeted mitigation procedures and regulations to ensure that cheap energy sources can continue to be tapped while protecting valuable drinking water resources.

Dalton Kelley

Sources

Envtl. Prot. Agency, Draft: Assessment of the Potential Impacts of Hydraulic Fracturing for Oil and Gas on Drinking Water Resources (June 2015), https://www.epa.gov/sites/production/files/2015-06/documents/hf_es_erd_jun2015.pdf.

Coral Davenport, Reversing Course, E.P.A. Says Fracking Can Contaminate Drinking Water, The New York Times (Dec. 13, 2016),

https://www.nytimes.com/2016/12/13/us/reversing-course-epa-says-fracking-can-contaminate-drinking-water.html.

Timothy Cama, Trump Team Plans Big Cuts at EPA, The Hill (Jan. 23, 2017, 9:57 AM),

http://thehill.com/policy/energy-environment/315607-trump-team-plans-big-cuts-at-epa.

Envtl. Prot. Agency, Assessment of the Potential Impacts of Hydraulic Fracturing for Oil and Gas on Drinking Water Resources (Dec. 2016), http://ofmpub.epa.gov/eims/eimscomm.getfile?p_download_id=530159.

 

Image: A natural gas drilling rig on the Pinedale Anticline, just west of Wyoming’s Wind River Range. WikiCommons user Bureau of Land Management, Creative Commons.”