Compliance with Petroleum Bulk Storage Regulations

1. Compliance with Petroleum Bulk Storage Regulations

2. Overview • Applicable Federal and State Laws • Registration Requirements • What is a Facility • Recent Amendments • Equipment Requirements • Maintenance and Recordkeeping • Training • Enforcement

3. Why you should care—Consequences • Fines up to $37,500 per day • DEC focus is on failure to register • Consent orders $1,000 • Orders after hearing $5,000 per facility • Authority to shut down or stop deliveries • Authority to order tank removal

4. Federal and State Laws • Federal Laws • Underground Storage Tank regulations (40 CFR Part 280) • Energy Policy Act • State Laws • ECL Article 17 • 6 NYCRR Parts 612-614

5. Federal Laws • Why Important • Changes to Federal Laws trigger revisions to State Law • Recent 2008 Amendments to ECL Article 17 • Federal Funding for Bulk Storage Program • Underground Storage Tanks

6. State Laws • ECL Article 17 • 6 NYCRR Parts 612-614 • DEC Guidance Documents • Information and documents available at: www.dec.ny.gov

7. Registration Requirements • DEC focus-registration key to program • Who has to register • Underground tanks (UST) • 110 gallons • Aboveground tanks (AST) • combined capacity of 1,100 gallons • Fines for failure to register • Range from $1,000 to $5,000 • Potential of daily up to $37,500

8. What is a Facility • Definition of Petroleum • Facility property • Stationary Tanks • Combined Capacity • UST 110 gallons • AST 1,100 gallons • PBS Worksheet

9. Statutory Definition of Facility • Facility means a single property or adjacent properties used for a common purpose which are owned or operated by the same person and which contain • One or more stationary tanks which singularly or combined contain more than 1,100 gallons of petroleum • Any tank whose capacity is > 110 gallons and is beneath the ground surface (10% of volume)

10. Definition of Petroleum • Recently Amended to include: • crude oil and any fraction thereof; • any mixture containing crude oil or any fraction thereof; and • any synthetic forms of lubricating oil, dielectric oils, insulating oils, hydraulic oils and cutting oils. • Includes asphaltic emulsions

11. Exclusions to Petroleum Definition • Heating oil tanks, unless otherwise qualify as a Facility; • Tanks 1,100 gallons or less at a farm or residence unless otherwise qualify as a Facility; • Tanks used to store or contain asphalt, however asphaltic emulsions are included.

12. DEC 2009 Enforcement Discretion Directive • To counter the new definition of petroleum DEC will not apply current regulatory requirements to: • Asphaltic emulsion tanks • Tanks, machinery and equipment storing petroleum for operational purposes (product stored, but not consumed) • Transformers, electrical cable oil reservoirs, hydraulic lift tanks, tanks storing hydraulic oil that are integral to a machine

13. Regulations being drafted • DEC currently drafting new regulations to comply with 2008 amendments (effective July 2009). • Expected date of release for public review late fall 2010. • As of today, DEC still expected to treat asphalt emulsion tanks and operational tanks as exempt.

14. Registration • Registration Form (www.dec.ny.gov) • 30 days in advance of operation • Fill in completely or will be rejected • Registration Fees • 1,100 to 2,000 gals $100 • 2,000 to 5,000 gals $300 • 5,000 to 400,000 gals $500 • 5-year renewals—operator responsibility • Nassau, Suffolk, Rockland, Westchester and Cortland County have own programs

17. Beyond Registration I • Tanks must be properly equipped: • Color coded fill ports to identify product stored • Shutoff valves for pumping systems and dispensers • Gauges on AST to show level of product or high level warning alarm • Tank must be marked with design capacity, working capacity and identification number • Check or operating valves on pipes • Secondary containment • Over 10,000 gallons, or • Could reasonably be expected to discharge petroleum to waters of the State • Barrier protection if potential traffic hazards

24. Beyond Registration II • Monthly Inspection logs for AST • Visual Inspections includes: • Tanks properly labeled • Exterior surfaces for leaks/maintenance deficiencies (peeling paint, corrosion) • Identify cracks, areas of wear, corrosion, excessive settling of tank • Is equipment functioning properly • Inspect and monitor all leak detection systems • Must keep inspection logs for 10 years • AST if resting on grade must have 10 year inspections for tightness and structural integrity

25. Beyond Registration III • Maintenance • Repair peeling/chipping paint • Repair inoperative equipment or take tank out of service • Keep a maintenance log

26. UST’s Brief Summary • 1998 requirements- • Secondary containment • Leak detection/ interstitial space monitoring • Part 614 equipment requirements • Daily inventory records, reconciled every 10 days • Notify DEC of unexplained losses within 48 hrs.

27. Changes to the Facility • Must give DEC written notice (on-line form) 30 day in advance of making any substantial modifications • Add a tank, take a tank out of service (close) or otherwise substantially modify a tank • Closure of tank (temporary or permanent) • Specific requirements in regulations • Hire qualified contractor and keep documentation • Give DEC 30 days advance notice • Tanks which are removed and do not meet requirements for new tanks cannot be reused

28. New AST Tanks and Facilities • Must comply with 6 NYCRR Part 614 (effective date Dec. 1985) • AST must be made of steel and meet manufacturing specifications contained in §614.9 • Underlain by impermeable barriers or, if rests on ground, cathodically protected • Leak monitoring system • Painting specifications • Applies when a new tank is added or an existing tank is replaced.

29. Additional Part 614 requirements • When an existing tank is repaired or reconditioned, work must comply with §614.12 • Installation requirements (§614.13) • Comply with NYS Uniform Fire Prevention and Bldg Code • Foundation prevent movement, rolling, settlement of tank • Must avoid exposure of tanks to traffic hazards • All tanks must be tightness tested prior to installation • Must notify local code enforcement official 24 hours prior to installation

30. New Training Requirements • ECL 17-1015: DEC to adopt training requirements for operators of PBS Facilities • Class A: Persons having primary responsibility for on-site operation and maintenance of storage tank systems • Class B: Persons having daily on-site responsibility for operation and maintenance of storage tank systems • Class C: Daily, on-site employees having primary responsibilities for addressing emergencies from spill or release.

31. Training Requirements (continued) • Class A and B operators will be evaluated and need to demonstrate competency (i.e., DEC certification) • Class C operators can be trained by Class A or B operators • EPA requires training be completed by no later than August 8, 2012 • Training/testing requirements still being developed by DEC. • Currently considering private training with written certification examination • Not sure of validity period for certification

32. Spills • Required to report within 2 hours • DEC hotline 1-800-457-7362 (should be posted on site) • Not reportable—less than 5 gallons, contained within 2 hours, will not reach State waters or land • Spill Response/Spill kit on site • Spill Prevention Control and Countermeasure Plan (SPCC)

33. Enforcement • DEC Inspections • Potential Fines • Recent Violations

34. DEC Inspections • Inspection form • Recordkeeping important • Monthly Inspection Logs • Maintenance Records • Registration current and Certificate on site • Inspector may give operator opportunity to correct violations -- DO IT!

35. Major Violations (In DEC’s View) • Failure to register or renew registration • Failure to transfer ownership • Failure to notify DEC of substantial modifications • Failure to keep records • Failure to report a spill

36. Enforcement -- What can DEC do to you? • Stop Deliveries– leaking or potential to leak • Removal of Tank • Maintenance • Fines– Law allows up to $37,500 per day of continued violation • DEC PBS Enforcement Policy

37. Enforcement Examples • 2009 consent orders for failure to renew registrations: $1,000 fine if resolve by CO, up to $37,500 if request hearing. • Example 1: no registration, failure to maintain spill prevention equipment, no recordkeeping--$5,000 • Example 2: expired registration, failure to list UST, improper labeling--$10,000 • Example 3: failure to register 6 facilities--$87,000 • Example 4: failure to notify of spill and properly contain it--$75,000

38. Summary If you meet the definition of a facility: • Register all tanks-fill out form completely and submit 30 days in advance; keep copy of registration certificate on site. • Notify DEC of any substantial modifications to the facility at least 30 days in advance. • Keep Monthly Inspection Logs. • Properly label and equip your tanks. • Properly maintain your tanks and keep a maintenance log. • Train on site personnel. (required by 8/2012) • Call DEC Spill Hotline within 2 hrs. if have a spill • Have a good SPCC plan.