U.S. Environmental Protection Agency Office of Emergency Management Oil Program November 2004

1. U.S. Environmental Protection AgencyOffice of Emergency ManagementOil ProgramNovember 2004

2. SPCC Update Outline • Introduction-What is SPCC? • Regulatory History • Implementation Issues • Next Steps Continues

3. Spill Prevention, Control, and Countermeasure Rule • Establishes procedures, methods, and equipment requirements to help prevent oil spills that could reach navigable waters. • Requires that facilities develop and implement Spill Prevention, Control, and Countermeasure (SPCC) Plans.

4. Scope of the SPCC Rule • Applies to non-transportation related facilities that: • Could reasonably be expected to discharge oil into navigable waters of the United States or adjoining shorelines, and • Have an aggregate aboveground storage capacity greater than 1,320 gallons (counting only containers with a capacity of 55 gallons or more), or • Have a total underground storage capacity greater than 42,000 gallons. • Excludes permanently closed containers and completely buried storage tanks subject to all technical requirements of 40 CFR Parts 280 and 281.

5. Organization of the Rule

6. Subpart AAll Facilities, All Types of Oil • Section 112.1 • General applicability • Section 112.2 • Definitions • Section 112.3 • Requirement to prepare and implement Plans, including: • Compliance dates • Professional Engineer certification • Maintaining and making Plan available • Extension of time Continues

7. Subpart AAll Facilities, All Types of Oil (continued) • Section 112.4 • Amendment of SPCC Plan by Regional Administrator • Section 112.5 • Amendment of SPCC Plan by owners or operators • Section 112.7 • Prepare Plans in writing and according to good engineering practices • Management approval • Alternative formats

8. Section 112.7General Requirements

9. Section 112.7General Requirements (continued)

10. Subparts B and CSpecific Facility Requirements • Sections 112.8 and 112.12 • Onshore Facilities (excluding production facilities) • Facility drainage – 112.8(b) and 112.12(b) • Bulk storage containers – 112.8(c) and 112.12(c) • Facility transfer operations – 112.8(d) and 112.12(d) • Section 112.9 • Oil Production Facilities (onshore) • Section 112.10 • Oil Drilling and Workover Facilities (onshore) • Section 112.11 • Oil Drilling, Production, or Workover Facilities (offshore)

11. SPCC Regulatory History

12. SPCC Rule Timeline Continues

13. SPCC Rule Timeline (continued)

14. Ashland Oil Spill • In 1988, an aboveground storage tank owned by the Ashland Oil Company collapsed and spilled approximately 3.8 million gallons of diesel fuel. • Approximately 750,000 gallons were released into the Monongahela River. • EPA formed an SPCC Task Force to: • Focus on the prevention of large, catastrophic oil spills. • Make recommendations on the SPCC program.

15. Photos courtesy of NOAA Office of Response and Restoration, National Ocean Service

16. 2002 Final Rule • Revised rule incorporates suggestions of the SPCC Task Force following the Ashland Oil Spill. • Is performance-based rather than prescriptive. • Incorporates aspects of the 1991, 1993, and 1997 proposals. • Uses a new format and “Plain English” style.

17. Overview of Rule Changes • Provides regulatory relief: • Exempts completely buried tanks, small containers, and most wastewater treatment systems. • Raises the regulatory threshold. • Reduces information required after a discharge, and raises the regulatory trigger for submission. • Increases the frequency of Plan review from 3 to 5 years. • Allows for alternative formats for SPCC Plans with cross-reference. Continues

18. Overview of Rule Changes (continued) • Clarifies applicability for the operational use of oil. • Makes the Professional Engineer certification more specific. • Clarifies mandatory requirements. • Establishes brittle fracture evaluation. • Clarifies employee training requirements. • Allows flexibility in meeting many rule provisions by providing equivalent environmental protection or developing contingency plans.

19. Implementation Issues

20. Compliance Date Extensions • Compliance dates for the SPCC amendments were extended in 2003 and 2004 (§§112.3(a) and (b)). • Provides additional time for regulated community to update or prepare Plans, especially following the litigation settlement (2004 extension). • Alleviates the need for individual extension requests. • The 2004 extension also amended the compliance deadlines for onshore and offshore mobile facilities (§112.3(c)).

21. Current Compliance Dates Onshore and offshore mobile facilities must prepare, implement, and maintain a Plan as required by the rule. • A facility must amend and implement the Plan, if necessary to ensure compliance with the rule, on or before 8/18/06.

22. Loading racks Impracticability Produced water and wastewater treatment Integrity testing Security Facility Navigable waters (Not resolved through settlement) Litigation • Lawsuits filed by American Petroleum Institute, Petroleum Marketers Association of America, and Marathon Oil. • Terms of partial settlement published in Federal Register on Tuesday May 25, 2004 (69 FR 29728.) • Litigation Issues:

23. Notices of Data Availability • Considering alternative approaches to ensure protection from oil spills. • Facilities that handle oil below a certain threshold amount • Oil-filled and process equipment • Published notices in the Federal Register on Monday September 20, 2004 (69 FR 56182) • Information available for public review and comment. • Comment period ends November 19, 2004. • See www.epa.gov/oilspill for more information.

24. Notices of Data Availability “Certain Facilities” • The following areas discussed in the NODA documents are examples of the kinds of data we request be submitted: • Data to support development of criteria (e.g. facility oil capacity, activity, etc.) to define a threshold for streamlined requirements for “certain facilities.” • Spill rates for facilities handling oil in various amounts • Cost differences for preparation and PE certification for the SPCC Plan related to size of facility or amount of oil handled. • SPCC compliance rates for facilities handling oil in various amounts We are not soliciting comments in this NODA on any other topic

25. Small Business Administration Small Facility Initiative • Responds to complaints that PE certification would be too expensive for small facilities. • Tiered requirements based on facility oil storage capacity:

26. Notices of Data Availability Oil-Filled and Process Equipment • The following areas discussed in the NODA documents are examples of the kinds of data we request be submitted: • Data to support development of criteria to define oil-filled and process equipment • Data to support the development of streamlined requirements for facilities with oil-filled and process equipment. We are not soliciting comments in this NODA on any other topic

27. Oil-Filled Electrical Equipment • Utility Solid Waste Activities Group proposes amendments to oil-filled electrical equipment. • Two recommendations: • Base regulatory threshold for oil-filled operating equipment on storage capacity of each piece of equipment, rather than aggregate capacity of facility. • Establish tiered requirements based on the oil storage capacity.

28. Next Steps

29. During the extension… The regulated community will update/prepare Plans and have additional time to understand recent clarifications of the rule. EPA is developing guidance to address the performance-based nature of the rule. Facilities must maintain a Plan in accordance with the extension. After the extension… Regional Guidance will be available to the public Facilities must have an SPCC Plan in compliance with revised rule provisions. EPA will address additional issues as needed. Extension

30. Regional Guidance • EPA acknowledges there are additional policy issues that require clarification and is working to address them. • Clarifications can often be addressed through performance-based provisions of the rule. • Currently developing guidance to regional inspectors on how to evaluate SPCC Plans when environmental equivalence and impracticability are claimed.

31. Performance-Based Natureof the Rule • Environmental Equivalence (§112.7(a)(2)) • Facilities may deviate from certain substantive requirements of the SPCC rule (except secondary containment) by implementing alternate measures that provide equivalent environmental protection. • Impracticability (§112.7(d)) • In situations where secondary containment is not practicable, the SPCC Plan must explain the reason. • The owner/operator must prepare an oil spill contingency plan and a written commitment of manpower, equipment, and materials.

32. Performance-Based Natureof the Rule Document! Document! Document!

33. Environmental Equivalence State reason for nonconformance in Plan Describe in detail the alternative method and how you will achieve environmental equivalence. Impracticability Clearly explain why containment measures are impracticable. Conduct integrity testing Develop a contingency plan (40 CFR 109) Provide written commitment of manpower, equipment, and materials. Performance-Based Natureof the Rule

34. Regional Guidance • Examples of issues to address in guidance: • Loading rack • Integrity Testing • Security • Piping • Mobile/portable containers

35. Summary • Background and History of SPCC • Overview of the SPCC provisions • Extension • NODAs • Certain Facilities • Oil-filled and Process Equipment • Regional Guidance and performance-based provisions of the rule

36. For More Information • U.S. EPA Region 7, Air, RCRA, and Toxics Division, Storage Tanks and Oil Pollution Branch, 901 North 5th Street, Kansas City, KS 66101-2907 • 1-800-223-0425 • hancock.alan@epa.gov , walker.stanley@epa.gov EPA Oil Program Website www.epa.gov/oilspill RCRA, Superfund, and EPCRA Call Center 1-800-424-9346