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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 Program. Federal Water Pollution Control Act Amendments

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SPCC Rule Update

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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


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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


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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


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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.


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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


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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)


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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


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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


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EPA 10 Policy Papers

Red: Litigation Issue


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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


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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


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API-led Coalition

  • Coalition’s white papers align with EPA 10 policy papers

  • Concerns:

    • Upcoming compliance deadline

    • Budgeting/Capital Improvements


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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


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Food / Edible Oil

  • Concerns with the applicability of the rule to unique equipment/processes

  • Some SPCC sections can be deleted, others might be modified


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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


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Airline Industry

  • Mobile fuelers

  • Scope of rule

  • Applicability to motive power (Jet SPCC Plans???)


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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


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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


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Melody Evans

Maytag - Amana Appliances


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Alan J. Arnold

Alliant Energy


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SPCC Project for John Deere Ottumwa Works

Liping Zhang, P.E.

Deere & Company

March 9, 2004


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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


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Lessons Learned

  • The ramp design

  • The land survey


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Art Potratz

General Mills, Inc.


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