April 20, 2006

1901 N. Fort Myer Dr. - Suite 500,

Arlington, VA 22209-1604

Web site: www.pmaa.org

Petroleum Marketers as owner/operators must be able to help the Professional Engineer (PE)

understand their business and how the new SPCC regulations affect them. Petroleum Marketers should:

SPCC plans for the storage of petroleum regulated substances.

structures.

Agreement, Industry Standards, SBA Considerations and Federal Regulations.

gallons).

The Oil Pollution Prevention regulation, also known as the SPCC regulation, was promulgated on

December 11, 1973, under the authority of §311(j) (1)(C) of the Clean Water Act (CWA). The regulation

established procedures, methods, and equipment requirements for non-transportation-related facilities

with aboveground oil storage capacity greater than 1,320 gallons in a single tank or 1,320 gallons total

aggregate capacity. The regulation also applies to underground aggregate storage capacity greater than

42,000 gallons not in compliance with Federal or State underground storage tank regulations.

The US EPA proposed revisions to the SPCC rule in 1991, 1993, and 1997. These revisions will

become effective on October 31, 2007.

The regulation requires that all regulated facilities have a Registered PE develop a Spill Plan

before the new facility begins operations or within six months of the effective date for existing facilities.

The US EPA Federal Regulation 40 CFR part 112 requires that a SPCC Plan be prepared for all

onshore and offshore oil storage facilities that have discharged (spilled/leaked) oil or could reasonably be

applies to non-vehicle or non-pipeline facilities involving storage facilities where any single above ground

tank is larger than 1,320 gallons or the aggregate total above ground storage is over 1,320 gallons.

Amendments to the SPCC plan are required to be reviewed by a Registered PE when the facility

adds or removes tanks, begins storing different oil products, other changes at the facility result in an

increase in spill potential and when amendments are required by US EPA.

US EPA provides an option that would allow owners or operators of facilities that store less than

A qualified facility is a facility subject to the SPCC requirements that (1) has a maximum total

facility oil storage capacity of 10,000 gallons or less; and (2) had no reportable oil discharge as described

in Sec. 112.1(b) during the ten years prior to self-certification or, since becoming subject to the SPCC

requirements if the facility has been in operation for less than ten years. Under this approach, facility

impracticability determinations in their SPCC Plans as described under Sec. 112.7(d). The two

exceptions are that facility owners/operators of qualified facilities choosing to self-certify their SPCC Plans

would have flexibility with respect to the security requirements and container integrity testing. Thus, in

effect, the US EPA is allowing owners and operators of qualified facilities to consult and rely on industry

standards or qualified container inspectors/testing personnel to determine the appropriate qualifications

for tank inspectors/testing personnel and the type/frequency of integrity testing required for a particular

container size and configuration. The US EPA is allowing qualified facilities to make this determination in

accordance with industry standards without the need to develop a PE-approved environmentally

1) Storage of tanks/drums/barrels/containers less than 55 gallons is exempt from the aggregate capacity

calculation. All underground storage tanks (USTs) are exempt from the new regulation if under a

Federal/State UST Program.

2) Only aboveground tanks with single tank storage capacity greater than 1,320 gallons or a group of

tanks/drums/barrels/containers with an aggregate capacity greater than 1,320 gallons are subject to

the regulation.

3) The SPCC Plan review requirement by the owner/operator has been changed from every 3 years to

every 5 years.

4) Integrity testing of tanks & piping must be performed in accordance with industry standards or in

5) When repairs are done, integrity testing must be accomplished by companies/individuals in

accordance with industry standards (STI, NFPA, API, PEI or PE).

6) All buried piping that is installed or replaced after 8-16-02, must have protective coating and wrapping

and cathodic protection, or meet 40 CFR part 280 or a state program.

7) Overfill prevention systems & alarms must be installed in accordance with industry standards and Fire

Codes. Overfill prevention must be inspected/tested in accordance with industry standards. Vent

whistles can be used at smaller facilities where vent whistle can be heard during tank filling. Another

equivalent method is allowed: If a facility operator/driver will check containers visual tank gauge prior

to the unloading process and allow driver/facility operator to check tank gauge during tank filling

process at frequent intervals.

8) All “shoulds” in the existing regulation are changed to “must or shall” in the revised regulation.

9) Secondary containment systems or their equivalents for Bulk Tanks, Loading & Unloading areas and

Piping Systems must be sufficiently impervious. Compacted Clays, Uncoated Concrete, Liners, Geo-

Membranes may meet this requirement upon PE review;

10) Security Fencing and Area Security Lights are required; Equivalent environmental protection for

facility fencing that may be approved by the PE may include security guards, regular police patrols,

and fencing only oil handling equipment/tanks.

11) The Facility diagram must include the location of the USTs (if applicable), type of oil in each AST and

size, surface flow direction, loading/unloading areas, area lights, & aboveground piping;

12) Requires all Loading/Unloading Rack(s) and aboveground piping to have secondary containment.

When secondary containment is not practical from an engineering standpoint, then this would not be

required. Some engineering reasons why this would not be required are; insufficient space,

loading/unloading spill risk potential, adverse weather conditions (ice, snow that would cause a

vehicular collision) in the area of the loading/unloading systems. The PE will make this

13) Revises the trigger for submitting information on spills at SPCC regulated facilities to US EPA.

Facilities are now required to submit information after having 2 discharges (over 42 gallons) in any

12-month period or a single discharge of more than 1,000 gallons.

self certification facilities under 10,000 gallons.

new standards that have been established by the industry and will be enforced by US EPA. Some

relevant industry standards are API 340, API 2610, API 653, API 12R1, API 570, API 2350, NFPA30,

PEI-RP200 and STI-SP001-00.

are typically intra-state lakes, rivers, streams (including intermittent streams), mudflats, sandflats,

wetlands, sloughs, prairie potholes, wet meadows, playa lakes, tributaries, wetlands, industrial waters,

of animal, fish, or marine mammal origin; vegetable oils, including oils from seeds, nuts, fruits, or kernels;

and, other oils and greases, including petroleum, fuel oil, sludge, synthetic oils, mineral oils, oil refuse, or

oil mixed with wastes other than dredged spoil.

The U.S. Coast Guard (USCG) compiled a list of substances it considers oil, based on the CWA

however, that the USCG list is not comprehensive and does not define “oil” for purposes of 40 CFR part

112. EPA may determine that a substance, chemical, material, or mixture is oil even if it is not on the

USCG list.

1. Drainage from containment structures

2. Oil Storage Tanks

3. Facility Transfer

4. Loading and Unloading Facilities

5. Inspection and Test Records

6. Security

7. Personnel Training and Spill Prevention Procedures

8. Precipitation Release Schedule

1. Plot Drawing of Facility and Map

2. Certification of Substantial Harm Criteria Form

of secondary containment is to contain oil from escaping the facility and reaching the environment. An

§112.1(b), dikes, berms, or retaining walls must be capable of containing oil and preventing such

discharges. Discharges as described in §112.1(b) may result from direct discharges from containers, or

US EPA believes that it may be appropriate for an owner or operator to consider costs or

economic impacts in determining whether he can meet a specific requirement that falls within the general

to utilize good engineering practices and come up with an alternative that provides “equivalent

environmental protection.” However, US EPA believes that the secondary containment requirement in

§112.7(d) is an important component in preventing discharges as described in §112.1(b) and is

environmentally preferable to a contingency plan prepared under 40 CFR part 109. The owner or

operator may only provide a Contingency Plan in his SPCC Plan and otherwise comply with §112.7(d).

Therefore, the purpose of a determination of impracticability is to examine whether space or other

geographic limitations of the facility would accommodate secondary containment; or, if local zoning

ordinances or fire prevention standards or safety considerations would not allow secondary containment;

or, if installing secondary containment would defeat the overall goal of the regulation to prevent

Without question, secondary containment is a top priority of the US EPA and marketers must

demonstrate best efforts in attempting to provide containment where practical

Applicable only if containment structures and provisions of preceding paragraph, "Containment and

Drainage Control Structures", are not practicable. Owner must demonstrate the impracticability by

explanation and justification. This CONTINGENCY Plan must be a "stand-alone" section of the SPCC

Plan and must be sent to the US EPA Regional Administrator.

The inspections are for the basic part of the Plan. All owner inspection records are to be kept for

requirements in paragraphs (c) and (h)(1) of this section, and §§ 112.8(c)(2),112.8(c)(11), 112.9(c)(2),

112.10(c), 112.12(c)(2), 112.12(c)(11),112.13(c)(2), and 112.14(c), where applicable to a specific facility,

paragraphs (g), (h)(2) and (3), and (i) of this section, or the requirements of subparts B and C of this part,

except the secondary containment requirements in paragraphs (c) and (h)(1) of this section, and §§

112.8(c)(2), 112.8(c)(11), 112.9(c)(2), 112.10(c), 112.12(c)(2), 112.12(c)(11), 112.13(c)(2), and 112.14(c),

Administrator determines that the measures described in your Plan do not provide equivalent

environmental protection, he may require that you amend your Plan, following the procedures in §

112.4(d) and (e).

spill prevention, control, or countermeasure. It is US-EPA’s view that for well-designed shop-built

containers with a shell capacity of 30,000-gallons or under, combining appropriate visual inspection with

the measures described below would generally provide environmental protection equivalent to that

provided by visual inspection plus another form of testing. Specifically, the US EPA generally believes

that visual inspection plus elevation of a shop-built container in a manner that decreases corrosion

potential (as compared to a container in contact with soil) and makes all sides of the container, including

the bottom, visible during inspection (e.g., where the containers are mounted on structural supports,

would generally provide equivalent environmental protection to place a shop-built container on an

adequately designed, maintained, and inspected synthetic liner. US EPA believes these approaches

would generally provide equivalent environmental protection when used for shop-built containers (which

generally have a lower failure potential than field-erected containers), because these approaches

generally reduce corrosion potential and ensure detection of any container failure before it becomes

significant.

In determining the appropriate SPCC plan requirements for visual inspection of containers

managed as described above, US EPA suggest that the PE begin by consulting appropriate industry

standards, such as those listed in Steel Tank Institute Standard SP001 and API Standard 653.

Similarly,

in assessing whether a shop-built container is well designed, the PE may wish to consult industry

inspections and tests kept under usual and customary business practices will suffice for purposes of this

paragraph.

Sub-Part B 112.8-(c) (6) Test each aboveground container for integrity on a regular schedule, and

whenever you make material repairs. The frequency of and type of testing must take into account

container size and design (such as floating roof, skid-mounted, elevated, or partially buried). You must

combine visual inspection with another testing technique such as hydrostatic testing, radiographic testing,

ultrasonic testing, acoustic emissions testing, or another system of non-destructive shell testing. You

must keep comparison records and you must also inspect the container’s supports and foundations. In

addition, you must frequently inspect the outside of the container for signs of deterioration, discharges, or

accumulation of oil inside diked areas. Records of inspections and tests kept under usual and customary

business practices will suffice for purposes of this paragraph.

document is intended to assist regional inspectors in reviewing a facility's implementation of the Spill

Prevention, Control, and Countermeasure (SPCC) rule at 40 CFR part 112 and understanding the rule's

applicability, and to help clarify the role of the inspector in the review and evaluation of the performancebased

SPCC requirements. The guidance document is also available to owners and operators of facilities

that may be subject to the requirements of the SPCC rule and the general public on how EPA intends the

SPCC rule to be implemented. The document is designed to provide a consistent national policy on

several SPCC-related issues.

The 520 page guidance document can be downloaded at:

US EPA guidance addresses issues such as inspection frequency, scope (e.g., internal and /or

external), training and/or qualifications of persons conducting the inspections, environmental equivalence,

secondary containment and impracticability determinations, oil water separators, site diagrams and other

measures that may be appropriate at a given site (e.g., measures to detect the presence of water in a

container). US EPA has used industry standards in developing such guidance.

The US EPA does not interpret §112.7(h) to apply beyond activities and/or equipment associated

with tank car and tank truck loading/unloading racks. Therefore, loading and unloading activities that take

place beyond the rack area would not be subject to the requirements of 40 CFR §112.7(h) (but, of course,

would be subject, where applicable, to the general containment requirements of 112.7(c)). US EPA

interprets §112.7(h) only to apply to loading and unloading “racks.” Under this interpretation, if a facility

does not have a loading or unloading “rack,” §112.7(h) does not apply. The US EPA did not mean to

imply that any particular categories of facilities, such as production facilities, are likely to have loading or

unloading racks present. US EPA believes that the proper standard of ‘‘sufficient freeboard’’ to contain

precipitation is that amount necessary to contain precipitation from a 25-year, 24-hour storm event.