Post-EPA Workshop Discussion: Is your SPCC AST inspection program compliant?

(This article was written without AI tools, i.e., ChatGPT.)

During our Environmental Protection Agency (EPA) Spill Prevention, Control, and Countermeasure (SPCC) workshop this year, Mark W. Howard was asked several questions concerning aboveground storage tank (AST) inspections under the SPCC rule. This is aways a hot topic, and I see companies regularly getting in trouble, either for not complying with it properly or being confused about how to manage it. Below are examples of compliance issues I see frequently, along with ones addressed during the conference.

• Failure to implement an inspection program
• Wrong standard used for tanks
• Improperly claiming environmental equivalencies
• Inspection reports not completed per standard or signed incorrectly
• Inspection findings not addressed
• Only some tanks are being inspected and tested due to companies not realizing all regulated containers must be addressed
• SPCC Plans do not correctly address the written discussions for this requirement

Today’s article does not dive deep into industry standards, but will highlight what companies should do when developing their SPCC Plans.

Finding an optimal starting point for this conversation is challenging, as the components of the AST inspection rule can be complicated and are not easily addressed in a two-page article. Based on numerous client conversations, and how Mark tackled questions at the workshop, I thought it best to address the two primary industry standards used, along with things we see companies regularly getting dinged on during audits. If you have more in-depth questions, feel free to email me at the address below.

Today’s conversation focuses on inspections pertaining to regulated aboveground storage tanks (AST) under the SPCC Rule: ASTs that are 55 gallons or larger that contain oil (as defined in the rule). In the SPCC rule, the EPA defines ASTs as:

Bulk storage container means any container used to store oil. These containers are used for purposes including, but not limited to, the storage of oil prior to use, while being used, or prior to further distribution in commerce. Oil-filled electrical, operating, or manufacturing equipment is not a bulk storage container.

The SPCC rule is broken out into several components. The first part —that everyone must comply with— is §112.7. From there, it separates into sectors, e.g., §112.8: most onshore operations, §112.9: upstream operations, §112.10: onshore drilling workover facilities, §112.11: offshore drilling activities, and §112.12: animal and plant-based oils and greases. Each part has unique inspection, physical, and planning requirements.

This article will only review the requirements for ASTs under §112.8: onshore operations. The other SPCC subsections have additional standards or alternatives that apply. To learn more about these, review the guidance document linked below.

As always, let’s review what the rule says:

(6) Test or inspect each aboveground container for integrity on a regular schedule and whenever you make material repairs. You must determine, in accordance with industry standards, the appropriate qualifications for personnel performing tests and inspections, the frequency and type of testing and inspections, which take into account container size, configuration, and design (such as containers that are: shop-built, field-erected, skid-mounted, elevated, equipped with a liner, double-walled, or partially buried). Examples of these integrity tests include, but are not limited to visual inspection, hydrostatic testing, radiographic testing, ultrasonic testing, acoustic emissions testing, or other systems of non-destructive 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 satisfy the recordkeeping requirements of this paragraph.

If you are new to the SPCC, or not part of a large oil major, the above language may have you scratching your head. What industry standard? Which appropriate qualifications?

There are two recognized industry standards. The first is API 653, a standard designed by the American Petroleum Institute (API) (industry) and accepted by the EPA for tanks primarily 30,000 gallons and larger that are field-erected. The second is the Steel Tank Institute’s STI SP001 standard, which was developed with input from the EPA and is primarily limited to tanks 30,000 gallons or smaller (There are some exceptions and can go up to 70,000 gallons).? The SPCC rule allows a Professional Engineer (P.E.) to develop a hybrid and/or environmentally equivalent program. However, once you deviate from a recognized and published standard, the P.E. and company take on an extra level of liability. I don’t want to dive too far into these two areas, as plan owners and their P.E. need to review their specific risks.

During our workshop, Mark focused on the practice of claiming environmental equivalencies for shop-built elevated tanks. He noted that while environmental equivalencies are allowed, they don’t make sense here and are frowned upon, as the standards apply directly to these types of tanks. Environmental equivalencies are generally reserved for tanks that don’t fit into any of the standards or for very unusual circumstances you may have. Trying to claim one when there is a standard in place will make it hard to defend yourself in court if there is a tank failure.

The SPCC Guidance for Regional Inspectors manual provides invaluable “plain English” insights and explanations on complying with the SPCC rule. More importantly, Chapter 7: Inspections, Evaluation, and Testing provides an overview of the SPCC inspection, evaluation, and testing requirements, as well as how environmental equivalence may apply to these requirements. This chapter also discusses the role of the EPA inspector in determining a facility's compliance with the inspection, evaluation, and testing rule requirements; it also provides a summary of industry standards, code requirements, and recommended practices that apply to different types of equipment.

If you are an operator with tanks and an SPCC Plan but have not instituted your inspection program yet and are not a new facility, read Chapter 7.4 on Baselining (linked above).

What is the purpose of baselining? When companies aren’t in compliance, it is usually due to costs. This is not a valid excuse under the SPCC regulations. Baselining helps you develop a staggered program to get into compliance. It is a risk-based approach to determining a compliance schedule.

The bottom line is that the SPCC regulations have multiple options, each accompanied by a host of requirements. As a plan owner, it is important to understand that your plan (a plan signed by management and sealed by a P.E.) is your contract with the EPA. Failure to comply or having invalid programs can lead to fines and facility closures.

Common EPA audit findings:

• Commonly overlooked items: tank alarms and gauges – must be part of your inspection program. Drum/tote storage areas – not every individual container has to be inspected, but the area must be checked for concerns. Regulated oil-filled operational equipment skipped – items like transformers, hydraulic reservoirs, etc., must be included with visual inspections. Containments not documented – containments are part of the visual inspections, and their conditions must be reported. Oil water separators (OWS) skipped – inspections must check on oil levels (if kept full, they will lose their exemption for containment versus an AST) and if they function correctly.
• When it comes to the documented visual inspection, the SPCC Plan only states “conducted regularly.” The SPCC Plan must state the frequency in which these are completed, i.e., monthly. Both API and STI require monthly visual inspections.
• When conducting visual inspections, the inspection form doesn’t identify every regulated piece of equipment and tank; instead, it just has one form that indicates everything has been inspected. Visual inspection forms must list everything noted on the SPCC Plan’s tank table.
• Similar to the item above, visual inspection forms do not address the minimum inspection requirements outlined in the rule. SPCC Plan owners must ensure visual inspection forms match the standard referenced or the minimum SPCC Plan requirements if not using a formal standard.
• The plan doesn’t specifically state which industry standard is used or provide details if relying on an environmental equivalency. In many cases, SPCC Plans will state, “tanks inspected per industry standards.” SPCC Plans must clearly state which standard(s) are being used. If using an environmental equivalency, the SPCC Plan must clearly state everything done to show it is a reasonable alternative.
• The SPCC Plan doesn’t contain a table or description noting record retention requirements, inspector requirements, and type of inspection per the standard. See the example below of how the EPA has preferred to see this.
• Formal inspection records are not maintained per standard, inspections are not done correctly per standard, or corrective inspection actions are not performed. Plan owners must ensure that properly trained inspectors are used and that there is a program to follow up on internal post-tank inspections.?
• Many facilities have developed Integrated Contingency Plans: SPCC retention requirements are three years. The EPA’s Facility Response Plan (FRP) records retention requirements, for its components, are five years. Additionally, plan owners must be mindful of the individual inspection standards, as some require “life of tank” retention.

Example (partial table clip):

Another essential component of today’s discussion is inspections of overfill protection systems, which include alarms, gauges, systems, etc. The EPA recently highlighted the importance of these inspections. This article highlights areas the EPA has recognized as having a “lack of attention” and points out other elements companies should address.

Lastly, your inspection program should take into account all apparatuses, equipment, piping, containments, etc., that are regulated under this program. For some of these items, there are additional standards referred to in the guidance document. Others just need to be defined by your P.E. and accounted for with your visual program.

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For a complete listing of archived articles and compliance insights, click here. Past articles cover training requirements, clarification of additional unclear elements within the above rules, and more.

We are here to help solve your compliance questions and challenges. If you need compliance assistance or have questions, please email John K. Carroll III ([email protected]), Associate Managing Director – Compliance Services, or call +1 954-625-9373.

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