SPCC Rule Update

1. SPCC Rule Update Iowa AWMA SPCC Workshop March 9, 2004 *Excerpts taken from SPCC Rule Update presentation given by Mark Howard, USEPA at the API 2003 Storage Tank Conference November 5, 2003

2. History of EPA’s Oil Program • Federal Water Pollution Control Act Amendments • Original SPCC Rule 40 CFR Part 112 • Ashland Oil Spill – SPCC Task Force • Exxon Valdez in Alaska • Oil Pollution Act • Proposed SPCC Rule – complete revision of existing rule • Proposed SPCC Rule – amendments • Final Facility Response Plan (FRP) Rule • Additional proposed SPCC amendments • Draft Final SPCC Rule – remanded to OMB • Final SPCC rule published 7/17/02, effective 8/16/02 • SPCC compliance date extension issued

3. Major Issues Associated with July 2002 Rule • Litigation • American Petroleum Institute (API) • Petroleum Marketers Association of America (PMAA) • Marathon Oil • Policy questions and concerns • Compliance dates extended 18 months

4. Deadlines to Amend or Prepare and Implement SPCC Plan NOTE: Facilities subject to 40 CFR Part 112 and in operation before August 16, 2002, and without an existing Plan, must immediately prepare and implement a Plan and are considered in violation until Plan implementation.

5. Litigation Update • Three complaints have been consolidated (API, PMAA, Marathon) • All EPA SPCC policy analysis since June 2003 has focused on lawsuit items termed “Tier 1” • Settlement discussions have been ongoing for several months • Environmental groups have shown interest in the litigation • Discussions associated with the litigation are very limited • Work on non-litigation issues, termed “Tier 2” has been impacted

6. Tier I – Litigation Issues • Secondary containment / cost-impracticability (can cost play a factor?) • Loading racks (definition of?) • Navigable waters (SWANCC) • Produced waters (want wastewater exemption extended to) • Should to shall/must – SBREFA (procedural challenge; didn’t consider small business impacts)

7. Tier II – High Priority Non Litigation Issues • Applicability to motive power (airplanes, “John Deere Issue”) • Scope and definition of operational equipment / process vessels • Distinction between various secondary containment requirements • Applicability of rule to various forms of piping • Integrity testing for small bulk containers (tie to SBREFA Tier I issue) • Applicability of rule to mobile / portable containers (tanker truck issues) • Wastewater exemption & applicability of rule to oil water separators

8. Status of EPA Tier II Policy Review • Extensive interaction with stakeholders • EPA technical workgroup has reviewed and provided recommendations • Senior EPA mgmt briefings held • Decisions pending on actions EPA will take to address Tier I policy issues • Other offices in EPA must be consulted on the technical workgroup’s recommendations

9. EPA 10 Policy Papers Red: Litigation Issue

10. Stakeholder Meetings / White Papers • Small Business Association (SBA) • API Coalition • Utility Solid Waste Activities Group (USWAG)** • Edible Oil Industries** • API • Airline Industry • Hogan & Hartson – (Law firm representing a company coalition comprised of, for example, GE & Verizon) • Agriculture ** EPA has stated that Electrical and Food/Edible Oils Industry concerns will require specific attention

11. SBA Activities • New policy proposals • Electrical • SPCC/Stormwater overlap • PE tiered certification proposal • 1st Tier: <5,000 gallons of oil, exempt from having a written plan and/or PE certification • 2nd Tier: 5,000 to 10,000 gallons of oil, required to have a written plan but not necessarily certified by a PE; PE site visit would not be required • 3rd Tier: >10,000 gallons of oil, written plan certified by a PE

12. API-led Coalition • Coalition’s white papers align with EPA 10 policy papers • Concerns: • Upcoming compliance deadline • Budgeting/Capital Improvements

13. USWAG • USWAG has provided policy recommendations for electrical equipment • USWAG Proposal • Allow each piece of equipment to be designated a facility • Tier I: Designate a “qualified facility” • 20,000 gallon threshold • No SPCC Plan requirement • Tier II: All other regulated facilities

14. Food / Edible Oil • Concerns with the applicability of the rule to unique equipment/processes • Some SPCC sections can be deleted, others might be modified

15. Agricultural Sector • EPA has met with USDA, EPA Agricultural Center and EPA Agricultural Liaison – Jean Mari Peltier • Impact of rule on farmers • Potentially large area of non-compliance

16. Airline Industry • Mobile fuelers • Scope of rule • Applicability to motive power (Jet SPCC Plans???)

17. Timetable for Policy Clarification • EPA Goal: Clarify Tier I & II issues by March 2004 • Stakeholder meeting planned for first week in March • Proposed revisions to be published in the Federal Register • Guidance, policy, and regulatory change are all possible • All issues will not be resolved • Performance based rulemaking • Role of the PE

18. Timetable Notes • EPA does not anticipate another extension… however • Litigation timing is impacting Tier II issues • EPA has stated they will provide a six-month notice for amending SPCC Plans in areas impacted by the Tier I & II issues

19. Melody Evans Maytag - Amana Appliances

20. Alan J. Arnold Alliant Energy

24. SPCC Project for John Deere Ottumwa Works Liping Zhang, P.E. Deere & Company March 9, 2004

25. Project Background • Five loading/unloading locations for oils and chemicals. • None of them has containment • Consolidates all the loading/unloading areas into one location and install one concrete containment • Chemical loading/unloading area is also considered in this project

39. Lessons Learned • The ramp design • The land survey

41. Art Potratz General Mills, Inc.