Is your SPCC AST inspection program compliant? – Fresh Look

It has been a couple of years since I wrote anything on today’s topic. Like many of the requirements with the Spill Prevention Control and Countermeasure (SPCC) regulations, it too causes a lot of confusion, and it’s something people regularly ask for Witt O’Brien’s assistance. Before going too far today, let me note today’s article is not a deep dive into industry standards. Today's focus will be to highlight what companies should do when developing their SPCC Plans.

When I first wrote about this requirement, I struggled with figuring out where best to start this conversation, as the components that are part of this can be very complicated and not something easily addressed in a two-page Monday article. Based on numerous conversations I have had with clients over the years, I thought it best to address the two main industry standards (high-level) that are used and a handful of things we see companies regularly getting dinged on during audits. If you have more in-depth questions you are looking to get answered, feel free to email me at the below address.

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Therefore, today’s conversation is focused on inspections as they pertain 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 Environmental Protection Agency (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 varying components. §112.7 is the first part with which everyone must comply. 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 its own special inspection, physical, and planning requirements. Today we will only review the requirements for ASTs under §112.8 operations. The other SPCC subsections have additional standards or alternatives that apply to them; 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 new to the SPCC world or not part of one of the large oil majors, the above may have you scratching your head. Industry-standard, what? Appropriate qualifications, what?

There are two recognized industry standards. The first one is API 653. API 653 is a standard designed by the American Petroleum Institute (API) (industry) and accepted by the EPA. This standard is for tanks primarily 30,000 gallons and larger. The second standard is the Steel Tank Institute’s STI SP001 standard. STI SP001 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 it deviates 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 the risk here. That noted, these two terms are also used in cases where companies have small or large tanks that are elevated tanks. Companies with varying sizes of tanks, may develop a hybrid program that uses applicable standards for tanks based on their sizes. In so doing, they are not changing anything in the standards, only applying each standard as applicable based on tank sizes/configurations. For tanks that are small and elevated off the ground, companies will, in some cases, develop an alternative program/environmental equivalency. This is generally done as one can see all sides of the tank. The tank is in a dike; generally, these are small tanks, so the risk is low on not catching tank failures, etc.

The SPCC Guidance for Regional Inspectors manual provides invaluable “plain English” insights and explanations on how to comply 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; and 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 you're not a new facility, read chapter 7.4 on Baselining, linked above. This will walk you through how to get your program up and running. What is the purpose of baselining? When companies haven’t complied, it is usually due to costs; not a valid excuse under the SPCC regulations. Baselining will help develop a staggered program to get one into compliance.

Bottom line: the SPCC regulations have multiple options, with each option 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 have programs that are not valid 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 inspected 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 documented. 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 are functioning 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.
• When conducting visual inspections, the inspection form doesn’t identify every regulated piece of equipment and tank; rather, 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.
• Similarly, to the bullet above, visual inspection forms do not address minimum inspection requirements as set forth in the rule. SPCC Plan owners need to ensure visual inspection forms match either 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 simply 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 that is done to show it is a reasonable alternative.
• 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 these days.
• Formal inspection records are not maintained per standard, or inspections are not done correctly per standard or corrective inspection actions are not performed. Plan owners must ensure properly trained inspectors are used and have a program in place to follow up on post-tank inspections internally.?

1. Many facilities have developed Integrated Contingency Plans: SPCC retention requirements are three years. Facility Response Plan (FRP) record 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):

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

We are here to help solve your compliance questions and challenges. Need some compliance assistance, or have a question? Please email John K. Carroll III ([email protected]), Associate Managing Director – Compliance Services, or call +1 954-625-9373.

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