If your campus has. Oil Pollution Prevention Rules (con.) Oil Pollution Prevention Rules (con.)

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1 De-Mystifying the Oil SPCC Rules Presented by: Karen Townsend, P.E. Project Manager Woodard & Curran August 9, 2004 Agenda 1. Oil SPCC Regulatory Background 2. Highlights of 2002 Oil SPCC Amendments 3. Recent Regulatory Actions 4. Oil SPCC Issues at Colleges & Universities 5. Q&A Oil Pollution Prevention Rules (40 CFR Part 112) Applicable to: Non-transportation related facility (fixed or mobile) involved in oil production, refining, storage or well-drilling Oil of any kind (petroleum oil, mineral oil, vegetable or animal oils) Reasonable expectation that a discharge in harmful quantity (causes a sheen) could get to navigable waters (waters of the U.S.) 1

2 Oil Pollution Prevention Rules (con.) Applicable to (con.): Bulk oil storage containers (e.g., aboveground storage tanks [ASTs], underground storage tanks [USTs], drums) Oil-containing equipment (e.g., hydraulic elevators and lifts, electrical transformers, hydraulic units on machinery) Oil Pollution Prevention Rules (con.) Regulatory Thresholds: Aggregate aboveground storage capacity > 1,320 gals Aggregate underground storage capacity > 42,000 gals (tanks that are not already subject to state or federal UST rules) Includes containers and oil-containing equipment with capacity of 55 gals or more. If your campus has More than 1,320 gals of oil in ASTs, drums, operating equipment; and/or More than 42,000 gals of oil in USTs; and There is a reasonable risk of a discharge of oil to waters of the U.S. Your campus is subject to Oil Pollution Prevention rules and must prepare/implement an Oil Spill Prevention, Control and Countermeasures (SPCC) Plan. 2

3 Oil SPCC Regulatory History December 11, 1973: Oil SPCC rules originally promulgated under Section 311 of CWA. July 17, 2002: EPA amendments intended to relieve some regulatory burden, provide clarification, plain language format. April 17, 2003: Original deadline for existing facilities to update Oil SPCC Plans. August 17, 2004: 18-month extension of deadline for updating Oil SPCC Plans. Highlights of the 2002 Oil SPCC Rule Amendments 1. Clarifies definition of oil storage facility - any mobile or fixed, onshore or offshore building, structure, installation, equipment, pipe, or pipeline used in oil well drilling operations,, or in which oil is used. Facility boundaries depend on site-specific specific factors such as ownership or operation of buildings, structures, and equipment on the same site. Highlights of the 2002 Oil SPCC 2. Oil is defined as oil of any kind or in any form, including, but not limited to: fats, oils, or greases of animal, fish, 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 waste other than dredge spoil. 3

4 Highlights of the 2002 Oil SPCC 3. Threshold criteria amended to: Exclude 660 gals in single aboveground container. Only containers of oil with capacity > 55 gals are counted. Threshold does not apply to permanently closed tanks. USTs subject to all technical requirements of federal or state UST rules do not have to be included. Highlights of the 2002 Oil SPCC 4. Plan must be certified by registered Professional Engineer (P.E.), who must attest to a 5-Point Certification: She/he is familiar with the regulatory requirements. She/he or her/his agent has visited and examined the facility. The Plan has been prepared in accordance with good engineering practice, including consideration of applicable industry standards. Procedures for required inspections and testing have been established. The Plan is adequate for the facility. Highlights of the 2002 Oil SPCC 5. Must include a Facility Diagram that shows: Location and contents of oil storage tanks and containers > 55 gals. Completely buried tanks that are otherwise exempt from the rule (i.e., USTs covered under federal rules). Location of oil transfer stations and connecting piping. 4

5 Highlights of the 2002 Oil SPCC 6. Plan must be reviewed at least once every 5 years. Must document completion of the review and sign statement as to whether Plan requires amendment. If amendments are required, must be completed within 6 months. Technical amendments must be certified by P.E. Highlights of the 2002 Oil SPCC 7. Adequate secondary containment must be provided for all bulk oil storage containers. Definition of bulk oil storage container does not include oil-filled electrical, operating, or manufacturing equipment. Secondary Containment Containment system must provide the capacity of single-largest largest container, plus freeboard for precipitation. Containment system must be sufficiently impervious to prevent a discharge until it is cleaned up. Plan must describe how containment is designed, implemented and maintained to be sufficiently impervious. Sufficiently impervious is not defined. Preamble states the standard is to prevent a discharge using good engineering practice. 5

6 If it is not practical to install secondary containment Must explain why in the Plan; Provide a strong spill contingency plan in accordance with 40 CFR Part 109; Provide a written commitment of manpower, equipment, and materials required to control and remove oil discharged; and Conduct periodic integrity testing of the containers, valves and piping. Examples of Secondary Containment Spill pallet. Double-walled tank construction. Concrete containment dike. Earthen berm. Building/room can provide containment if it is has a poured concrete floor with no cracks, seams, floor drains or doorways to allow oil to escape from the room. Highlights of the 2002 Oil SPCC (c)(6) requires ASTs to be tested for integrity on a regular schedule and when material repairs are done. Frequency and type of testing will depend on the tank (certifying P.E. must determine what s appropriate). Combine visual inspection with another testing technique. 6

7 Inspection and Testing Program Must include periodic visual inspection of outside of tank or container (EPA interprets periodic as meaning at least monthly). Program should be in accordance with applicable industry standard for the tank system (e.g., STI, API). Plan must state frequency of integrity testing. State-specific requirements should be incorporated into Plan. Applicable Industry Standards Steel Tank Institute (STI) American Petroleum Institute (API) Underwriters Laboratories (UL) National Fire Protection Association (NFPA) National Association of Corrosion Engineers (NACE) Building Officials and Code Administrators (BOCA) STI SP Standard for Inspection of In-Service Shop Fabricated aboveground Tanks for Storage of Flammable and Combustible Liquids Applicable to single-wall and double-wall shop-fabricated steel tanks built to a nationally recognized standard. Monthly, quarterly, annual inspections by owners. Certified Inspection by Qualified Inspector every 10 years. Includes an integrity test to determine the minimum remaining wall thickness. 7

8 API 653 Tank Inspection, Repair, Alteration and Reconstruction Applicable to carbon steel tanks built to API Standard 650 (Welded Steel Tanks for Oil Storage). Well-suited to large field-erected erected steel tanks. Routine in-service inspections by Owner. Formal visual external inspection or UT measurement every 5 years. Formal internal inspections every 10 years if corrosion rate is not known (tank has to be empty and clean for internal inspection). Certifying P.E. needs specific information Age of tank Standard of construction (e.g., UL 142, UL 2085, API 650 Appendix J, API 12F, STI F911 Results of past inspections (e.g., presence of water in tank) Results of past tests Highlights of the 2002 Oil SPCC 9. Tank car and tank truck loading/unloading rack must be equipped with a containment system to hold at least the maximum capacity of any single compartment of the tank car or tank truck. For a tank truck, that s 3,000 to 6,000 gallons. 8

9 What is a loading/unloading rack? Term is not defined in regulation. It is considered a permanent or fixed structure appurtenant to the tank that the tank car or rail car connects to during the transfer process. Recent Regulatory Actions March 2004: EPA partially settles four of five legal challenges to 2002 Oil SPCC Amendments. March 31, 2004: EPA conducts Stakeholders Meeting in March, 2004, to present settlement agreement and additional regulatory interpretations. June 17, 2004: EPA issues proposed rule to extend regulatory compliance deadline. EPA Settlement Agreement 1. Integrity Testing and Equivalent Environmental Protection 2. Loading/Unloading Racks 3. Security 4. Cost and Impracticability 5. Issue of updated definition of navigable waters was not resolved 9

10 Equivalent Environmental Protection 40 CFR 112.7(a)(2) Allows for annual integrity inspections in lieu of integrity tests for: Well-designed shop-fabricated ASTs with shell capacity of 30,000 gallons or less (with secondary containment). All sides of the tank are visible. Tanks are visually inspected in accordance with industry standard. Plan must explain why annual integrity inspection will provide equivalent environmental protection. Loading/Unloading Racks 40 CFR 112.7(h) Preamble language in July 2002 amendments lead to misinterpretation of term loading/unloading rack. Term is not defined within rule. EPA did not intend to interpret 112.7(h) to apply beyond loading/unloading rack area. Bottom line secondary containment is not required for oil transfer areas outside of tank car and tank truck loading/unloading racks. Security 40 CFR 112.7(g) Rule states, Fully fence each facility handling, processing, or storing oil, and lock and/or guard entrance gates when facility is unattended. Plaintiffs put forth two scenarios as providing equivalent environmental protection. EPA agrees that fencing all discrete areas directly involved in oil handling and storage, and restricting access to pumping equipment provides equivalent environmental protection to fencing entire facility footprint. 10

11 Cost and Impracticability 40 CFR 112.7(d) Rule states that where secondary containment is not practicable, a facility may use a contingency plan instead. Plaintiffs challenged role of cost in determining impracticability. EPA does not believe it is appropriate to consider cost or economic impact as a reason to not provide secondary containment. Secondary containment may not be considered impracticable solely because a contingency plan is cheaper. Secondary containment is the preferred method for prevention of discharges. Oil SPCC Issues at Colleges & Universities Wide variety of oils used/stored on campus: Heating oils (No. 6 and No 2) Gasoline and diesel fuel for vehicles/equipment Hydraulic and lubricating oils for vehicle/equipment maintenance Cooking oils and waste grease Many sources of oil-containing operating equipment Electrical transformers Fuel oil associated with emergency generators Hydraulic oil reservoirs in elevators Waste kitchen grease and grease traps in cafeteria and food service operations Oil/water separators 55-gallon drums of oil products or waste oils Machinery containing hydraulic or lubricating oil (e.g., compactors, pumps) 11

12 Remote facilities with oil storage Research/field stations Laboratories Athletic facilities Off-site student housing/apartments These may be included in the campus Oil SPCC Plan depending on interpretation of facility Campus construction sites often have sources of oil Portable oil storage tanks to fuel/maintain equipment Contractors should be required to provide secondary containment for all oil sources Perform periodic inspections for compliance Construction of new campus facilities often results in new oil storage sources Heating oil ASTs Elevators Transformers Oil SPCC Plans must be amended to include new sources within 6 months and certified by P.E. 12

13 Responsibility for oil storage facilities may reside within multiple departments Facilities Management Environmental Health & Safety Heating Plant Housing Grounds Maintenance Vehicle Maintenance Coordination required for compliance with Oil SPCC Plan Common Oil SPCC Violations EPA finds at Colleges & Universities No Plan at all, or incomplete Plan. Plan not certified by P.E. Plan not reviewed and updated every 5 years. All sources of oil not included. Numerous small ASTs (e.g., 275 gal. ASTs) not included. Oil storage locations and spill pathways not identified. Inspections and training do not take place/are not documented. Summary A comprehensive, facility-specific, up-to to-date Oil SPCC Plan is an important tool for: Proper management of oil storage facilities; Maintaining regulatory compliance; and Overall asset and risk management. Financial and public relations impacts of a spill or EPA violation can be devastating, and can be avoided with a rigorous oil pollution prevention program at your college or university. 13

14 Questions? Contact Information Karen Townsend, P.E. Project Manager Woodard & Curran 41 Hutchins Drive Portland, Maine Tel: Fax: Website: 14