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

History of EPA’s Oil Program1972 Federal Water Pollution Control Act Amendments1974 Original SPCC Rule 40 CFR Part 1121988 Ashland Oil Spill – SPCC Task Force1989 Exxon Valdez in Alaska1990 Oil Pollution Act1991 Proposed SPCC Rule – complete revision of existing rule1993 Proposed SPCC Rule – amendments1994 Final Facility Response Plan (FRP) Rule1997 Additional proposed SPCC amendments2001 Draft Final SPCC Rule – remanded to OMB2002 Final SPCC rule published 7/17/02, effective 8/16/022003 SPCC compliance date extension issued

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

Deadlines to Amend or Prepare and Implement SPCC Plan

A facility starting operation…

Must…

On or before 8/16/02 Maintain existing Plan Amend Plan no later than 8/17/04 Implement Plan no later than 2/18/05

After 8/16/02 through 2/18/05

Prepare and implement a Plan no later than 2/18/05

After 2/18/05 Prepare and implement a Plan before beginning operations

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.

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

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)

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

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

EPA 10 Policy PapersLoading/Unloading Areas/Racks

Wastewater Exemption: Produced Waters

Secondary Containment and Cost

Integrity Testing for Small Storage Tanks

Applicability to Piping Types of Secondary Containment

Applicability to Motive Power Applicability to Mobile Storage Containers

Operational Equipment/Process Tanks

Wastewater and Oil/Water Separators

Red: Litigation Issue

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

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

API-led Coalition Coalition’s white papers align with

EPA 10 policy papers Concerns:

Upcoming compliance deadline Budgeting/Capital Improvements

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

Food / Edible Oil Concerns with the applicability of

the rule to unique equipment/processes

Some SPCC sections can be deleted, others might be modified

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

Airline Industry Mobile fuelers Scope of rule Applicability to motive power (Jet

SPCC Plans???)

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

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

Melody Evans

Maytag - Amana Appliances

Alan J. Arnold

Alliant Energy

SPCC Project for John Deere Ottumwa Works

Liping Zhang, P.E.Deere & Company

March 9, 2004

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

Lessons Learned

1. The ramp design

2. The land survey

Art Potratz

General Mills, Inc.