Oil Spill Prevention, Control, and Countermeasure (SPCC)
Introduction
Environmental regulations can be complicated and overlapping, often proving difficult to identify all requirements that apply to an operation. In each Related Program Index (RPI) this task is simplified by identifying implications one program applicably often has on others. This RPI uses the J. J. Keller & Associates, Inc., broad regulatory knowledge to recommend regulations and compliance programs that may also apply when the Oil Spill Prevention, Control, and Countermeasure (SPCC) rule (at 40 CFR 112 Subparts A to C and Appendices A, B, C, and G) covers an operation.
For this RPI, please note that the term oil means “oil of any kind or in any form, including, but not limited to, fats, oils, or greases 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,” as defined at 112.2.
If the SPCC rule applies, you should also consider…
Discharge of oil
EPA regulation 40 CFR 110 is called “Discharge of Oil” but is also known as the “sheen rule.” The regulation applies to the discharge of oil prohibited by law, including, but not limited to, discharge quantities that cause a sheen or discoloration on the surface of the water or adjacent shorelines. A qualifying discharge triggers requirements to report to the National Response Center. The failure to report such a discharge may result in criminal sanctions under the Clean Water Act. However, it is worth noting that Part 110 has a few exemptions.
If an oil container or oil operation is exempted by Part 112, it does not mean it is also exempted by Part 110. The exemptions for Part 112 and Part 110 are not the same. Therefore, the facility will want to consider the applicability of each regulation separately.
Like the SPCC rule, the Discharge of Oil Standard has reporting requirements, but again, these reporting requirements must be treated separately, as meeting one reporting requirement does not mean the other is also met. While there is some overlap in reporting elements, the reporting triggers, complete list of reporting elements, who to contact, and the method of reporting are different. It is possible to fall under both reporting requirements or one reporting requirement but not the other when the facility suffers a discharge.
Regulatory citation:
- 40 CFR 110 – Discharge of Oil
Related Compliance Network subjects:
Facility response plan
EPA regulation 40 CFR 112 is called “Oil Pollution Prevention.” Subparts A through C of 40 CFR 112, along with Appendices A, B, C, and G, are often referred to as the spill prevention, control, and countermeasure regulations, or simply the “SPCC rule,” focusing primarily on facility-related oil spill prevention, preparedness, and response.
However, Part 112 also includes requirements for facility response plans (FRPs) that address oil discharge preparedness requirements for a subset of SPCC-regulated facilities that:
- Have 42,000 gallons or more of oil storage capacity and transfer oil over water to or from vessels; or
- Have a total oil storage capacity of one million gallons (or more) and one of the following is true:
- There is not sufficient secondary containment for each aboveground storage area;
- The facility is located such that a discharge of oil could harm fish, wildlife, and sensitive environments;
- The facility is located such that discharge of oil would shut down a public drinking water intake; or
- The facility has had a reportable oil discharge within the last five years in an amount greater than or equal to 10,000 gallons.
The FRP requirements at subpart D of 40 CFR 112 and Appendices A to F define who must prepare and submit an FRP and what must be included in the plan. All FRP-regulated facilities are also subject to the SPCC requirements and must develop and implement an SPCC Plan. However, on the flip side, not all SPCC-regulated facilities are subject to the FRP requirements.
SPCC and FRP only cover non-transportation-related facilities, apply only when specific thresholds are exceeded, and offer a number of exclusions.
Regulatory citation:
- 40 CFR 112 – Oil Pollution Prevention
Related Compliance Network subjects:
Stormwater
Depending on your facility and its oil operations, you may need to consider the impacts of stormwater discharges. Facilities that store oil containers outdoors at any time may need to address the potential for stormwater runoff hazards through secondary containment, National Pollutant Discharge Elimination System (NPDES) permitting, or both. The risks posed by oil would fall under the “industrial activity” discharge type.
The term “stormwater discharge associated with industrial activity” means a stormwater discharge from one of several categories of industrial activity defined at 40 CFR 122.26. Facilities engaged in SPCC-covered operations should consider any potential stormwater risks and their potential coverage under 122.26.
It’s worth noting that EPA’s industrial stormwater regulations cover several industrial activities, including, but not limited to, oil and gas exploration, production, processing or treatment operations, or transmission facilities that discharge stormwater that has been contaminated by contact with raw material, intermediate products, finished products, by-products, or waste products.
Where EPA is not the permitting authority for stormwater from industrial facilities, it has delegated the states or territories to regulate stormwater discharges from these industrial activities. Therefore, it is worth checking state/territorial stormwater regulations and permits.
Regulatory citation:
- 40 CFR 122.26 – Storm water discharges (applicable to State NPDES programs, see 123.25)
Related Compliance Network subject:
Wastewater
Wastewater discharges from industrial and commercial facilities may be contaminated with pollutants that could negatively affect surface waters or publicly owned treatment works (POTWs). EPA sets limits on the pollutants that may be discharged from industrial sources through the NPDES wastewater permitting program. Many states have been authorized to run their own wastewater permitting program and must meet these limitations.
Industrial and commercial sources that discharge wastewater directly to receiving waters will need to obtain an individual or general NPDES permit. Whereas, industrial and commercial sources that discharge wastewater to the municipal sewer system (indirect discharges) will be covered by the NPDES pretreatment process.
However, oil and water mixture containers are subject to the SPCC rule. A mixture of wastewater and oil is “oil” under the statutory and regulatory definition of the term (33 U.S.C. 1321(a)(1) and 40 CFR 110.2 and 112.2). A discharge of wastewater containing oil to navigable waters or adjoining shorelines in a “harmful quantity” (40 CFR 110) is prohibited.
One example of an oil and water mixture is produced water. Produced water is the oil and water mixture resulting from the separation of crude oil or gas from the fluids or gases extracted from the oil/gas reservoir, prior to disposal, subsequent use (e.g., re-injection or beneficial reuse), or further treatment.
As stated earlier, oil discharges to navigable waters or adjoining shorelines from an oil/water mixture in a produced water container may cause harm. Such mixtures P are regulated as oil under the SPCC rule. Therefore, the capacity of produced water containers counts toward the facility aggregate oil storage capacity. Produced water containers at oil production, oil recycling, or oil recovery facilities are also not eligible for the wastewater treatment exemption in 112.1(d)(6).
The wastewater treatment exemption excludes from the SPCC requirements facilities or parts of facilities that are used exclusively for wastewater treatment and are not used to meet 40 CFR 112 requirements. Facilities need not count the capacity of these exempt containers when calculating facility aggregate capacity. However, the exemption does not apply to a wastewater treatment facility (or part of that facility) that is used to store oil.
A wastewater treatment facility (or parts of that facility) used to meet a 40 CFR 112 requirement, including an oil/water separator used to meet any SPCC requirement, is also not exempt from SPCC. Oil/water separators used to meet SPCC requirements include those used to satisfy the secondary containment requirements of 112.7(c), 112.7(h)(1), and/or 112.8(c)(2) or 112.8(c)(11). Although not exempt, oil/water separators used to satisfy secondary containment requirements of the SPCC rule do not count toward storage capacity under SPCC.
Many of the wastewater treatment facilities or parts thereof are subject to the NPDES or state-equivalent permitting requirements that involve operating and maintaining the facility to prevent discharges. The NPDES or state-equivalent process ensures review and approval of the facility’s plans and specifications; operation/maintenance manuals and procedures; and stormwater pollution prevention plans (SWPPP), which may include best management practice (BMP) plans.
Regulatory citations:
- 40 CFR 110 – Discharge of Oil
- 40 CFR 122 – EPA Administered Permit Programs: The National Pollutant Discharge Elimination System
- 40 CFR 400 – 471 – Effluent Guidelines and Standards
- 40 CFR 419 – Petroleum Refining Point Source Category
- 40 CFR 435 – Oil and Gas Extraction Point Source Category
Related Compliance Network subject:
Underground Injection Control
Storage or disposal of water and fluids may be managed by injecting them underground using injection wells. Injection wells are regulated by the Underground Injection Control (UIC) Program to protect underground sources of drinking water. EPA’s regulations group injection wells into six classes (I to VI).
The UIC program regulates injection wells used in the oil and gas production process for produced water disposal, enhanced recovery, or hydrocarbon storage, and these wells are considered as Class II wells. Minimum UIC Class II well requirements, as outlined in 40 CFR 144, involve specific construction, operation, and closure standards, as well as provisions for ensuring that the owner, operator, and/or transferor of the well maintain financial responsibility and resources to plug and abandon the well.
EPA collects monitoring data and test results from operators of Class II injection wells, and Class II well owners or operators must submit permit applications, monitor their wells and report the results, and submit plugging and abandonment reports when they close their wells.
Regulatory citation:
- 40 CFR 144 – Underground Injection Control Program
Related Compliance Network subject:
Emergency Planning and Community Right-to-Know Act (EPCRA)
EPCRA was created to help communities plan for chemical emergencies. It also requires industry to report on the storage, use and releases of hazardous substances to federal, state, tribal, and local governments.
SPCC-covered facility owners or operators with oil storage may be subject to the EPCRA requirements. Hazardous chemicals, which include crude oil and refined oil products, typically are subject to EPCRA Sections 311 and 312. Oil storage facility owners and operators may also be subject to other provisions of EPCRA. The statute has five major provisions:
- Emergency planning (EPCRA section 301 to 303),
- Emergency release notification (EPCRA section 304),
- Hazardous chemical storage reporting requirements (EPCRA section 311 and 312),
- Toxic chemical release inventory (EPCRA section 313), and
- Trade secrecy (EPCRA section 322).
Additionally, rail yards that store hazardous chemicals (including crude oil and refined oil products) may also be subject to the EPCRA requirements. Hazardous chemicals present at rail yards are subject to EPCRA Sections 311 and 312 if they are not stored incident to transportation, and they are present at the rail yard in amounts equal to or in excess of the minimum thresholds in 40 CFR 370.10(a).
Regulatory citations:
- 40 CFR 350 – Trade Secrecy Claims for Emergency Planning and Community Right-to-Know Information and Trade Secret Disclosures to Health Professionals
- 40 CFR 355 – Emergency Planning and Notification
- 40 CFR 370 – Hazardous Chemical Reporting: Community Right-to-Know
- 40 CFR 372 – Toxic Chemical Release Reporting: Community Right-to-Know
Related Compliance Network subject:
Hazardous waste
The definition of “oil” in 40 CFR 112.2 includes, but is not limited to, “oil mixed with wastes other than dredged spoil.” Therefore, oils covered under the SPCC rule include hazardous wastes that are oils, as well as certain hazardous wastes that are mixed with oils. On the flip side, hazardous wastes that are neither oils nor mixed with oils are not subject to SPCC rule.
Containers storing these SPCC-covered hazardous wastes may also be covered by the Resource Conservation and Recovery Act (RCRA). That legislative Act gives EPA the authority to control hazardous waste from “cradle-to-grave.” This includes the generation, transportation, treatment, storage, and disposal of hazardous waste. The hazardous waste regulations include requirements related to:
- Hazardous waste identification;
- Determination of hazardous waste generator category;
- Proper marking, labeling, and placarding;
- Management of central and satellite accumulation areas, including secondary containment;
- Employee training and emergency planning;
- Notification of EPA of waste activities and any other applicable hazardous waste recordkeeping and reporting; and
- Any other requirements specific to your facility, the type of waste you generate, and/or your hazardous waste generator status.
Although the SPCC rule contains an exemption for completely buried tanks that are subject to all underground storage tank (UST) technical requirements of 40 CFR 280 and/or a state program approved under 40 CFR 281, tanks containing RCRA hazardous wastes are not subject to the UST rules. Therefore, when RCRA hazardous waste tanks located at a facility subject to the SPCC rule also contain oil, they are subject to the SPCC rule requirements.
Regulatory citations:
- 40 CFR 260 – 278 – Hazardous Waste Regulations
Related Compliance Network subject:
Used oil
Because the SPCC rule covers oil of any kind, it also covers used oil, an oil mixed with wastes. EPA 40 CFR 279.1 defines “used oil” as any oil that has been refined from crude oil or any synthetic oil that has been used and as a result of such use is contaminated by physical or chemical impurities. Simply put, used oil is exactly what its name implies — any petroleum-based or synthetic oil that has been used. Many types of businesses handle used oil, including generators, collection centers and aggregation points, transporters, re-refiners and processors, burners, and marketers.
The Standards for the Management of Used Oil at 40 CFR 279 are meant to encourage recycling and prevent mismanagement of used oil, without placing unnecessary regulatory burdens on participants in the used oil management system. The management standards require that proper methods be used to transport, process, re-refine, burn, market, and dispose of used oil and prohibit improper storage of used oil and the mixing of used oil with hazardous wastes.
Regulatory citation:
- 40 CFR 279 – Standards for the Management of Used Oil
Related Compliance Network subject:
Underground storage tanks
The regulations at 40 CFR 280 to 282 comprise the Underground Storage Tank (UST) Program, which requires owners and operators of new and existing USTs to prevent, detect, and clean up releases. When a facility has applicable USTs, several requirements must be met, including operator training, periodic inspection and maintenance, cathodic protection, etc.
A UST system is a tank, and any underground piping connected to the tank, that has at least 10 percent of its combined volume underground. Federal UST regulations apply only to underground tanks and piping storing either petroleum or certain hazardous substances.
The SPCC rule only regulates a subset of oil-storage tanks covered by the UST Program regulations. For example, any USTs that are not completely buried are considered aboveground storage tanks and subject to the SPCC rule.
Under 40 CFR 112.1(d)(4), the SPCC rule exempts completely buried storage tanks, as well as connected underground piping, underground ancillary equipment, and containment systems, when such tanks are subject to all of the technical requirements of 40 CFR 280 or a state program approved under 40 CFR 281. Although these tanks are exempt from the SPCC requirements, they must still be marked on the facility diagram if the facility is otherwise subject to the SPCC rule (see 112.7(a)(3)).
On the other hand, the following completely buried tanks are either excluded from the definition of UST or are exempt from the UST regulations (and therefore may be subject to the SPCC rule if they contain oil):
- Tanks with a capacity of 110 U.S. gallons or less;
- Farm or residential tanks with a capacity of 1,100 U.S. gallons or less used for storing motor fuel for non-commercial purposes;
- Tanks used for storing heating oil for consumptive use on the premises where stored;
- Tanks storing non-petroleum oils, such as animal fat or vegetable oil;
- Tanks on or above the floor of underground areas (e.g., basements or tunnels);
- Septic tanks and systems for collecting stormwater and wastewater;
- Flow-through process tanks;
- Emergency spill and overfill tanks that are expeditiously emptied after use;
- Surface impoundments, pits, ponds, or lagoons;
- Any UST system holding RCRA hazardous waste;
- Any equipment or machinery that contains regulated substances for operational purposes such as hydraulic lift tanks and electrical equipment tanks;
- Liquid trap or associated gathering lines directly related to oil or gas production or gathering operations;
- Pipeline facilities regulated under the Natural Gas Pipeline Safety Act of 1968, the Hazardous Liquid Pipeline Safety Act of 1979, or intrastate pipelines regulated under state laws comparable to the provisions of these laws; and
- Any UST system that contains de minimis concentration of regulated substances.
The following are examples of deferrals from the UST regulations (and therefore may be subject to the SPCC rule):
- Wastewater treatment tank systems;
- Any UST systems containing radioactive materials that are regulated under the Atomic Energy Act of 1954;
- Airport hydrant fuel distribution systems; and
- UST systems with field-constructed tanks.
Note that, at an otherwise SPCC-regulated facility, any transfer to or from completely buried storage tanks is regulated under the SPCC rule because it is a potential source of discharge of oil into navigable waters or adjoining shorelines. Because a loading/unloading rack, or other transfer area, associated with a UST is not typically part of the UST system, it is not subject to all of the technical requirements of 40 CFR 280 or 281. Therefore, such a loading/unloading rack is regulated under the SPCC regulations in the same manner as any other transfer equipment or transfer activity located at an otherwise SPCC-regulated facility.
Additional and/or more stringent requirements may exist in a state-approved program under 40 CFR 281, and they may also impact SPCC applicability.
Regulatory citations:
- 40 CFR 280 – Technical Standards and Corrective Action Requirements for Owners and Operators of Underground Storage Tanks (USTs)
- 40 CFR 281 – Approval of State Underground Storage Tank Programs
- 40 CFR 282 – Approved Underground Storage Tank Programs
Related Compliance Network subject:
Toxic Substances Control Act
The Toxic Substances Control Act (TSCA) directs EPA to evaluate the lifecycle (i.e., manufacture, importation, processing, distribution, use, and disposal) of industrial and commercial chemicals for unreasonable risks and, if warranted, to regulate such chemicals. In fact, EPA has issued and continues to issue regulations designed to gather health, safety, and exposure information on, require testing of, and control exposure to chemical substances and mixtures.
To prevent unreasonable risks, EPA may select from a broad range of control actions under TSCA, with everything from requiring hazard-warning labels to outright bans on the manufacture or use of chemicals with unreasonable risks. Drugs, cosmetics, foods, food additives, pesticides, and nuclear materials are exempt from TSCA, however.
An SPCC-covered facility may find that its oil also comes under TSCA coverage. TSCA does not just cover “toxic” chemicals, but rather “chemical substances,” as defined in the statute. The major TSCA provisions call for:
- Companies to generate hazard and exposure information through specific tests or measurements on chemicals in certain circumstances;
- Premanufacture notices (PMNs);
- Significant new use notices (SNUNs);
- Adherence to the regulations of existing chemical substances and mixtures;
- Chemical data reporting (CDR) and other reporting and retention of information about chemical production, use, and possible adverse effects to human health and the environment;
- Export notifications; and
- Import certification.
Regulatory citations:
- 40 CFR 700 to 799 – Toxic Substances Control Act Regulations
Related Compliance Network subject:
Pesticides
Pesticide formulations may include petroleum- or vegetable-based oils in concentrated formulations or may contain crop oil or adjuvant oil in the mix formulations added just prior to application. However, pesticide application equipment and related mix containers are exempt from the SPCC rule, under 40 CFR 112.1(d)(10) and the facility capacity calculations in 112.1(d)(2)(ii).
Pesticide application equipment includes ground boom applicators, airblast sprayers, and specialty aircraft containers/equipment that are used to apply measured quantities of pesticides to crops and/or soil. Related mix containers are those used to mix pesticides with water and, as needed, adjuvant oils, just prior to loading into the application equipment.
EPA adopted the SPCC exemption because this type of pesticide use and related mix containers are already subject to regulation under the Federal Insecticide, Fungicide, and Rodenticide Act (FIFRA), as codified in Standards for Pesticide Containment Structures in 40 CFR 165, to assure the safe use (including discharge), reuse, storage, and disposal of pesticide containers.
However, be aware that containers (55 U.S. gallons or greater in capacity) storing oil prior to blending it with the pesticide, and containers used to store any pesticides after they have been mixed with oil, are considered bulk storage containers and are regulated as such under the SPCC rule.
Because many pesticide formulations may include oils, it is important to know that EPA is charged with ensuring that pesticides do not pose unreasonable risks to the public and to the environment. The agency has authority under the law to regulate the use of pesticides. Most pesticides may legally be sold in the U.S. if they have been “registered” by EPA and if they bear an EPA registration number.
Federal pesticide registration, however, is only the first step in preventing pesticide risks. Other regulations call for proper pesticide labeling, effective pesticide management, restricted use of certain pesticides, and the protection of agricultural workers from pesticide hazards, for example. EPA also regulates pesticide residues on food and pesticide imports and exports and has other responsibilities under the law.
State agencies, too, may regulate and enforce pesticide laws and regulations for their jurisdictions. In general, states have primary authority for compliance monitoring and enforcing against illegal pesticide use. Anyone applying pesticides must comply with federal and state pesticide laws.
Regulatory citations:
- 40 CFR 150 to 189 – Pesticide Programs
Related Compliance Network subject:
Air programs
Oil-related operations can trigger air-related regulations. The Clean Air Act (CAA) and its amendments are designed to “protect and enhance the nation’s air resources so as to promote the public health and welfare and the productive capacity of the population.” The CAA consists of six sections, known as titles, which direct EPA to establish national standards for ambient air quality and for EPA and the states to implement, maintain, and enforce these standards through a variety of mechanisms.
Under the CAA, facilities may be required to obtain operating permits that consolidate their air emission requirements. State and local governments oversee, manage, and enforce many of the requirements of the Act.
At the federal level, CAA regulations appear at 40 CFR 50-99. From and oil extraction, production, refining, and storage standpoint, some air regulations that come to mind include those listed in the regulatory citations list, which is not exhaustive.
Regulatory citations:
- 40 CFR 98 – Mandatory Greenhouse Gas Reporting
- 40 CFR 60 Subpart J - Standards of Performance for Petroleum Refineries
- 40 CFR 60 Subpart Ja - Standards of Performance for Petroleum Refineries for Which Construction, Reconstruction, or Modification Commenced After May 14, 2007
- 40 CFR 63 Subpart R - National Emission Standards for Gasoline Distribution Facilities (Bulk Gasoline Terminals and Pipeline Breakout Stations)
- 40 CFR 63 Subpart CC - National Emission Standards for Hazardous Air Pollutants from Petroleum Refineries
- 40 CFR 63 Subpart HH – National Emissions Standards for Hazardous Air Pollutants from Oil and Natural Gas Production Facilities
- 40 CFR 63 Subpart UUU - National Emission Standards for Hazardous Air Pollutants for Petroleum Refineries: Catalytic Cracking Units, Catalytic Reforming Units, and Sulfur Recovery Units
- 40 CFR 63 Subpart ZZZZ - National Emissions Standards for Hazardous Air Pollutants for Stationary Reciprocating Internal Combustion Engines
- 40 CFR 63 Subpart YYYY - —National Emission Standards for Hazardous Air Pollutants for Stationary Combustion Turbines
- 40 CFR 63 Subpart BBBBBB - National Emission Standards for Hazardous Air Pollutants for Source Category: Gasoline Distribution Bulk Terminals, Bulk Plants, and Pipeline Facilities
- 40 CFR 63 Subpart CCCCCC - National Emission Standards for Hazardous Air Pollutants for Source Category: Gasoline Dispensing Facilities
Related Compliance Network subject:
Risk Management Program
The Risk Management Program (RMP) regulation at 40 CFR 68 requires owners and operators of a facility that manufactures, uses, stores, or otherwise handles more than a threshold quantity of a “listed” regulated substance in a process to implement a set of hazard assessment, accident prevention, and emergency response elements and to submit a single written Risk Management Plan to EPA or the state implementing agency for all covered processes at the facility.
The universe of chemicals regulated by SPCC and that of RMP are not identical, but there may be cross over. However, the facility does not need to consider the following flammable substances when determining RMP applicability:
- Gasoline, when in distribution or related storage for use as fuel for internal combustion engines.
- Naturally occurring hydrocarbon mixtures prior to entry into a petroleum refining process unit or a natural gas processing plant, as defined at 68.3. Naturally occurring hydrocarbon mixtures include condensate, crude oil, field gas, and produced water.
- Any flammable substances listed in 68.130 when they are used as a fuel or held for sale as a fuel at a retail facility.
The thresholds associated with SPCC and RMP are also not the same, so a facility may, for example, come under one regulation or both, based on thresholds. It is worth noting that the threshold determination provisions at 68.115 touch on concentrations of a regulated flammable substance in a mixture. Whereas, SPCC regulates oil mixtures, no matter the concentration, so 100 gallons of an oil-based mixture is considered 100 gallons of oil under SPCC.
Furthermore, while both the SPCC and RMP written plans are about preventing and responding to discharges/releases, unlike SPCC, the RMP regulation requires the submission of the written plan to EPA or the state implementing agency.
EPA offers some RMP discussion about gasoline (an oil), naturally occurring hydrocarbon mixtures, and bulk storage terminals, which may interest SPCC-covered facilities:
- Although gasoline is not specifically listed as an RMP-regulated substance under 40 CFR 68.130, it may contain one or more regulated substances and be covered if the threshold is met, unless the gasoline is otherwise exempted.
- The RMP exemption from threshold determination for regulated substances in gasoline or in naturally occurring hydrocarbon mixtures applies only to regulated flammable substances. Any regulated toxic substance (e.g., hydrogen sulfide) which is present in gasoline or in naturally occurring hydrocarbon mixtures must be considered when determining whether an RMP threshold amount of that substance is present in a process at a stationary source.
- There is no general RMP exemption for bulk storage terminals. However, the threshold exemption for “regulated substances in naturally occurring hydrocarbon mixtures prior to entry into … a petroleum refining processing unit” would exempt certain storage terminals, such as crude oil storage terminals where the regulated substances in the crude oil meet the listing criteria for flammable mixtures (i.e., NFPA 4, greater than 1 percent concentration of listed flammable substance), provided the mixture has not undergone processing in a refinery. Additionally, flammable substances used as fuel or held for sale as fuel at a retail facility are not covered under RMP. For flammable mixtures not eligible for either of these exemptions, the bulk storage terminal facility owner or operator needs to evaluate on a case-by-case basis whether they trigger the NFPA-4 and greater than 1 percent criteria. Keep in mind that regulated substances in gasoline, when in distribution or related storage for use as fuel for internal combustion engines, also are exempt from RMP threshold determination.
Regulatory citations:
- 40 CFR 68 – Chemical Accident Prevention Provisions
- 40 CFR 68.130 – List of Substances
Related Compliance Network subject:
CSB Accidental Release Reporting
The U.S. Chemical Safety and Hazard Investigation Board (CSB) regulation at 40 CFR 1604 requires an owner or operator of a stationary source to submit a report to CSB for any accidental chemical release resulting in a:
- Fatality,
- Injury or illness that results in a death or inpatient hospitalization, or
- Property damage equal to or greater than $1 million.
A release amount that results in any of the above consequences would qualify for CSB reporting. The CSB requirements for how, what, and when to report an accidental release are spelled out in Part 1604, and the agency provides a reporting form on its website. The purpose of Part 1604 is to ensure that the CSB receives rapid, accurate reports of any qualifying accidental release, so that the agency can decide which incidents to investigate.
According to CSB, regulated substances are those listed under 40 CFR 68, the RMP regulation, and the term extremely hazardous substance (EHS) means any substance that may cause any of the three consequences listed earlier. An “accidental release” is defined by the agency as an unanticipated emission of a regulated substance or other EHS, from the stationary source into the atmosphere inside or outside a stationary source.
An SPCC-covered facility could, in fact, have oil that discharges in such a way that it results in the three Part 1604 consequences, making it an EHS, by definition, under Part 1604. Therefore, these facilities need to be aware of the CSB Accidental Release Reporting requirements.
Interestingly, SPCC only covers non-transportation-related facilities, and under 40 CFR 112, interstate and intrastate onshore and offshore pipeline systems are considered transportation-related facilities not covered by EPA’s SPCC rule. Instead, only pipelines used to transport oil exclusively within the confines of a non-transportation-related facility are SPCC-covered.
CSB’s Part 1604 applies to “stationary sources.” However, CSB explains in a question-and-answer format: “[Question] Is our interpretation that the CSB’s Accidental Release Reporting Rule does not apply to transportation-related facilities, such as pipelines, pipeline facilities, and liquefied natural gas facilities, correct? [Answer] No, that interpretation is not correct. Oil and gas pipelines and pipeline facilities, underground natural gas storage facilities, and liquefied natural gas facilities meet the definition of a stationary source in the CSB’s Accidental Release Reporting Rule. As such, the owner or operator of a stationary source must report any accidental release resulting in a fatality, serious injury [or illness], or substantial property damage. Although the CSB and [National Transportation Safety Board (NTSB)] have a memorandum of understanding that, among other things, designates the NTSB as the lead agency for the investigation of releases that are transportation-related, this interagency agreement does not impact the Accidental Release Reporting Rule. To be clear, the CSB can investigate transportation-related accidental releases such as those implicated in this question, whether jointly with the NTSB or on its own if the NTSB declines to investigate, per the CSB’s enabling statute and the existing MOU between the agencies …”
Should there be an oil discharge at an SPCC-covered facility, the owner or operator must be mindful of not only the discharge reporting requirements at 112.4, but the possible reporting requirement at Part 1604. The two sets of reporting requirements differ in criteria, when to report, reporting elements, reporting method, and to whom to report. Therefore, the two reporting requirements should be considered separately.
Regulatory citations:
- 40 CFR 68 – Chemical Accident Prevention Provisions
- 40 CFR 1604 – Reporting Accidental Releases
Related Compliance Network subjects:
OSHA Process Safety Management
The Process Safety Management (PSM) Standard at 29 CFR 1910.119 contains requirements for the management of hazards associated with processes using chemicals deemed to be “highly hazardous.” PSM applies to those companies that deal with:
- Any of more than 130 specific toxic and reactive chemicals in listed quantities; or
- Any Category 1 flammable gas, or a flammable liquid with a flashpoint below 100 °F (37.8 °C) onsite in one location, in a quantity of 10,000 pounds or more except for:
- Hydrocarbon fuels used solely for workplace consumption as a fuel (e.g., gasoline for vehicle refueling), if such fuels are not a part of a process containing another highly hazardous chemical covered by 1910.119;
- Flammable liquids with a flashpoint below 100 °F (37.8 °C) stored in atmospheric tanks or transferred which are kept below their normal boiling point without benefit of chilling or refrigeration.
The world of chemicals regulated by SPCC and that of PSM are not identical, but there may be cross over. However, it is worth noting a few PSM exemptions:
- Retail facilities,
- Oil or gas well drilling or servicing operations, or
- Normally unoccupied remote facilities.
The thresholds associated with SPCC and PSM chemicals are not the same, so a facility may, for example, come under one regulation or both, based on thresholds.
Finally, while both SPCC and PSM requirements may provide protections from chemical hazards such as explosion, fire, and release, the two regulations differ in who or what they aim to protect. SPCC intends to protect public health, safety, and the environment, but PSM is geared to protect employees at the facility.
Regulatory citation:
- 29 CFR 1910.119 and Appendices – Process Safety Management of Highly Hazardous Chemicals
Related Compliance Network subjects:
OSHA flammable liquids
Many oils are also considered flammable liquids. OSHA 29 CFR 1910.106 defines a flammable liquid as any liquid having a flashpoint at or below 199.4 °F (93 °C). The flash point is the temperature at which a liquid produces enough vapor to be ignited. The lower the flashpoint, the more flammable the material. OSHA’s Flammable Liquids Standard applies to the handling, storage, and use of flammable liquids, with the following exceptions:
- Bulk transportation of flammable liquids;
- Storage, handling, and use of fuel oil tanks and containers connected with oil-burning equipment;
- Storage of flammable liquids on farms;
- Liquids without flashpoints that may be flammable under some conditions, such as certain halogenated hydrocarbons and mixtures containing halogenated hydrocarbons;
- Mists, sprays, or foams, except flammable aerosols covered in 1910.106(d); and
- Installations made in accordance with requirements of the following standards: National Fire Protection Association (NFPA) 32-1970, NFPA 35-1970, NFPA 36-1967, and NFPA 37-1970.
Depending on the type of work yielding the exposure, the quantities, and other factors, an employer may have varying requirements. In general, employers covered by 1910.106 are required to:
- Properly design and install flammable liquid storage tanks, drainage, dikes, and walls for aboveground tanks;
- Use only approved containers for flammable liquids and storage cabinets and not exceed storage amount limitations;
- Follow the construction requirements for inside storage rooms;
- Follow flammable liquid storage amount limitations outside of buildings and for warehouses or storage buildings;
- Follow the precautions to prevent the ignition of flammable vapor;
- Follow the requirements for providing appropriate firefighting equipment in areas where flammable liquids are stored and used; and
- Employ the required maintenance and operating practices to control leakage and prevent the accidental escape of flammable liquids.
The SPCC rule, too, has requirements for using suitable containers and providing sized secondary containment. However, while 40 CFR 112 is intended to prevent, control, and clean up oil spills that may impact navigable waters or adjoining shorelines, 1910.106 is intended to protect workers from exposure to flammable liquids. Part 112 also emphasizes the use of good engineering practices.
Regulatory citation:
- 29 CFR 1910.106 – Flammable Liquids
Related Compliance Network subject:
OSHA HAZWOPER
OSHA’s (HAZWOPER) standard, 29 CFR 1910.120, covers three primary categories of work operations:
- Hazardous waste cleanup operations;
- Operations involving hazardous waste treatment, storage, and disposal (TSD) operations (including large- and small-quantity hazardous waste generator storage); and
- Emergency response operations for releases of, or substantial threats of releases of, “hazardous substances” without regard to the location of the hazard.
The HAZWOPER Standard is intended to provide a framework for employers to implement, to protect their workers from these hazards during any of the above work operations. Each operation type requires worker training under the HAZWOPER Standard.
Activities related to stopping an oil spill or containing spilled oil may be considered “emergency response” activities under 1910.120(q), as defined at 1910.120(a)(3). Shoreline cleanup is considered “post-emergency cleanup operations” under 1910.120(q)(11). In addition, cleanup sites may be considered or may become hazardous waste cleanup sites and should follow the requirements under HAZWOPER 1910.120(b) to (o), if certain applicability criteria are met.
Regulatory citation:
- 29 CFR 1910.120 – Hazardous Waste Operations and Emergency Response
Related Compliance Network subject:
OSHA hazard communication
The Hazard Communication Standard (HCS) covers “any chemical which is known to be present in the workplace in such a manner that employees may be exposed under normal conditions of use or in a foreseeable emergency,” unless exempted by subparagraph 1910.1200(b)(6). Exposure or exposed means that an employee is subjected in the course of employment to a chemical that is a physical or health hazard, and includes potential (e.g., accidental or possible) exposure.
According to the HCS, chemical manufacturers and importers are required to evaluate the hazards of the chemicals they produce or import and prepare labels and safety data sheets to convey the hazard information to their downstream customers. All employers with hazardous chemicals in their workplaces must have labels and safety data sheets for their exposed workers, and train them to handle the chemicals appropriately.
A number of oil-related products, of course, pose a physical or health hazard to exposed employees in the workplace. Unless exempted at 1910.1200(b)(6), these oil-related products are regulated by the HCS.
Regulatory citation:
- 29 CFR 1910.1200 – Hazard Communication
Related Compliance Network subject:
OSHA Emergency Action Plans
Oil spills may pose an emergency in the workplace, and these spills could be covered by the Emergency Action Plans (EAPs) Standard at OSHA 29 CFR 1910.38. An EAP covers designated actions employers and employees must take to ensure employee safety from fire and other emergencies. An EAP must be in writing, kept in the workplace, and available to employees for review. However, an employer with 10 or fewer employees may communicate the plan orally to employees.
Not all employers are required to establish an EAP, however. Section 1910.38 technically applies only to those employers who are required to have an EAP by a particular OSHA standard, including:
- 1910.119(n), Process Safety Management of Highly Hazardous Chemicals;
- 1910.120(l), (p)(8), and (q)(1), Hazardous Waste Operations and Emergency Response (HAZWOPER);
- 1910.157(a)-(b), Portable Fire Extinguishers;
- 1910.160(c), Fixed Extinguishing Systems, General;
- 1910.164(e)(3), Fire Detection Systems;
- 1910.272(d) and (i)(2), Grain Handling Facilities;
- 1910.1047(h), Ethylene Oxide (EtO);
- 1910.1050(d), Methylenedianiline (MDA); and
- 1910.1051(j), 1,3-Butadiene.
The elements of the EAP are listed in 1910.38, along with employee training, employee review, and employee alarm system requirements.
Like the SPCC plan, the EAP calls for procedures for reporting the emergency. However, where the SPCC plan goes over countermeasures for discharge discovery, response, and cleanup, the EAP is about emergency evacuation, headcount, and rescue. The EAP also has procedures for employees who remain to operate critical plant operations before they evacuate.
In short, the SPCC plan is about preventing, controlling, and responding to oil releases, while the EAP is about reporting and evacuating from a fire or other emergency. Therefore, an oil discharge could create an emergency scenario where one or both the SPCC plan and EAP are needed. If the preventive measures in the SPCC plan work as planned, hopefully a facility will never need to activate the EAP for an oil spill.
Regulatory citation:
- 29 CFR 1910.38 – Emergency Action Plans
Related Compliance Network subject:
Occupational Safety and Health Act
When a facility falls under a regulation like 40 CFR 112, which covers oil storage and oil discharges, it is likely that safety and health regulations also apply to the same facility. While EPA is charged with protecting the environment and the general public, OSHA’s mission is to protect employees from workplace hazards.
Oil-related materials may pose various physical and health hazards to employees when used or stored in the workplace. As such, OSHA has several regulations that require employers to protect employees from these hazards.
Regulatory citations:
- 29 CFR 1910 Subpart E — Exit Routes and Emergency Planning
- 29 CFR 1910 Subpart H – Hazardous Materials
- 29 CFR 1910 Subpart I – Personal Protective Equipment
- 29 CFR 1910.146 – Permit-required Confined Spaces
- 29 CFR 1910 Subpart L – Fire Protection
- 29 CFR 1910.178 – Powered Industrial Trucks
- 29 CFR 1910 Subpart Z – Toxic and Hazardous Substances
Related Compliance Network subjects:
DOT Hazardous Materials Transportation
The Department of Transportation’s (DOT) Hazardous Materials Regulations (HMR) at 49 CFR 171 to 185 apply not only to persons who transport hazardous materials (hazmat) in commerce but also to persons who cause hazmat to be transported in commerce.
The EPA SPCC rule does not have jurisdiction over “transportation-related” facilities. For example, DOT regulates highway vehicles and railroad cars that are used for the transport of oil. DOT also regulates railroad cars used for the transport of oil in interstate or intrastate commerce and the related equipment and appurtenances. DOT jurisdiction even includes railroad cars that are passing through a facility or are temporarily stopped on a normal route.
Yet, it’s important to understand that just because oil is in a truck or railcar does not make it transportation-related in all cases:
- EPA regulates tank trucks (or mobile refuelers) as “mobile/portable containers” under the SPCC rule if they operate exclusively within the confines of a non-transportation-related facility.
- Tank trucks that are used in interstate or intrastate commerce can be regulated by EPA if they are operating in a fixed, non-transportation mode. For example, if a home heating oil truck makes its deliveries, returns to the facility, and parks overnight with a partly filled fuel tank, it is subject to the SPCC rule if it, or the facility, has a capacity above the threshold amount, and there is a reasonable expectation of discharge to navigable waters or adjoining shorelines. However, if the home heating oil truck’s fuel tank contains no oil when it is parked at the facility, other than any residual oil present in an emptied vehicle, it would be regulated by DOT, not EPA’s SPCC rule.
- The EPA SPCC rule regulates the activity of loading or unloading oil in bulk into storage containers (such as those on tank trucks or railroad cars), as well as all equipment involved in this activity (e.g., a hose or loading arm attached to a storage tank system). Different SPCC requirements apply depending on whether the facility has an oil transfer area or loading/unloading rack.
A facility with both transportation-related and non-transportation-related activities is a “complex” and is subject to the dual jurisdiction of EPA and DOT or the U.S. Coast Guard. The jurisdiction over a component of a complex is determined by the activity occurring at that component. An activity might at one time subject a facility to one agency’s jurisdiction, and a different activity at the same facility using the same structure or equipment might subject the facility to the jurisdiction of another agency.
Note that the SPCC rule mandates oil-handling personnel training at 112.7(f). On top of training, the SPCC rule calls for briefings for oil-handling personnel at least once a year. Finally, a facility must designate someone to be accountable for oil discharge prevention and report discharges to facility management.
From a DOT perspective, HMR-covered persons, including shippers, must comply with the training requirements at 49 CFR 172.704. The requirements for “hazmat employees,” must be completed every three years and cover training topics including general awareness, safety (including emergency response), security, and function-specific topics.
Regulatory citations:
- 49 CFR 171 to 185 – Hazardous Materials Regulations
Related Compliance Network subjects:
Pipeline transportation
Only pipelines used to transport oil exclusively within the confines of a non-transportation-related facility are covered by the SPCC rule. That’s because the SPCC rule only covers non-transportation-related facilities, and under 40 CFR 112, interstate and intrastate onshore and offshore pipeline systems are considered transportation-related facilities, exempt from SPCC. That means interstate and intrastate onshore and offshore pipeline systems are covered by the Department of Transportation (DOT), not the EPA’s SPCC rule.
Although breakout tanks can be used to relieve surges in an oil pipeline system or to receive and store oil transported by a pipeline for reinjection and continued transportation by pipeline, they are sometimes used for bulk storage (i.e., non-transportation-related storage). Thus, breakout tanks may be regulated by the EPA, the DOT, or both, depending on how the tank is used.
Breakout tanks used solely to relieve surges in a pipeline, not used for any non-transportation-related activity (i.e., pipeline-in and pipeline-out configuration, and with no transfer to other equipment/mode of transportation such as a tank truck), are not subject to EPA SPCC jurisdiction. Bulk storage containers used to store oil while also serving as a breakout tank for a pipeline or other transportation-related purposes may be subject to both EPA and DOT jurisdiction. Determining agency jurisdiction can be difficult and should be treated on a case-by-case basis.
Any pipeline or piping that transports oil between facilities or from a facility to a vessel is considered transportation-related and is therefore outside the jurisdiction of EPA and not subject to the SPCC rule. EPA recognizes that gathering lines are often outside of the EPA’s jurisdiction because they transport oil outside of an oil production facility. However, EPA has jurisdiction over non-transportation-related facilities, including pipelines that transport oil within a facility.
From the DOT standpoint, the Office of Pipeline Safety under the Pipeline and Hazardous Materials Safety Administration (PHMSA) has federal authority to ensure the safe, reliable, and environmentally sound operation of our nation’s pipeline transportation system. Pipeline operators are responsible for the safe and reliable operation and maintenance of their hazardous liquid and natural gas pipelines and liquefied natural gas facilities. Operators are subject to federal and state pipeline safety regulations.
The pipeline transportation system includes hazardous liquid and gas pipelines. DOT pipeline safety regulations identify petroleum, petroleum products, or anhydrous ammonia as “hazardous liquids.” Whereas, the pipeline safety regulations consider gas to be natural gas, flammable gas, or gas which is toxic or corrosive.
Regulatory citations:
- 49 CFR 190 – 199 – Pipeline Safety Regulations
Related Compliance Network subjects:
Marine terminal safety
A marine terminal is an example of a “complex” subject to both U.S. Coast Guard (USCG) and EPA SPCC jurisdiction. The jurisdictional boundary of a complex facility for both USCG and EPA is defined in 33 CFR 154, Facilities Transferring Oil or Hazardous Material in Bulk, under the definition of a marine transportation-related facility at 154.1020.
The USCG regulates the pier structures, transfer hoses, hose-piping connection, containment, controls, and transfer piping associated with the transfer of oil between a vessel and an onshore facility. EPA, on the other hand, regulates the tanks, internal piping, loading racks, and vehicle/rail operations that are completely within the non-transportation portion of the facility.
EPA SPCC jurisdiction begins at the first valve inside secondary containment. If there is no secondary containment, EPA jurisdiction begins at the valve or manifold adjacent to the storage tank. Appendix H of the SPCC Guidance for Regional Inspectors offers a section called “EPA Jurisdiction at Complexes,” which includes drawings that show EPA’s regulatory jurisdiction at complexes, including an example of a marine terminal.
Regulatory citation:
- 33 CFR 154 – Facilities Transferring Oil or Hazardous Material in Bulk
Related Compliance Network subjects: