Document ID: EPA-HQ-OPA-2005-0001-0169
Agency: epa
Document Type: Rule
Title: Oil Pollution Prevention; Spill Prevention, Control, and Countermeasure Plan Requirements--Amendments, December 26, 2006
Posted Date: 2006-12-26T05:00Z

[Federal Register: December 26, 2006 (Volume 71, Number 247)]
[Rules and Regulations]               
[Page 77266-77293]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr26de06-8]                         

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ENVIRONMENTAL PROTECTION AGENCY

40 CFR Part 112

[EPA-HQ-OPA-2005-0001; FRL-8258-3]
RIN 2050-AG23

 
Oil Pollution Prevention; Spill Prevention, Control, and 
Countermeasure Plan Requirements--Amendments

AGENCY: Environmental Protection Agency.

ACTION: Final rule.

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SUMMARY: The Environmental Protection Agency (EPA or the Agency) is 
amending the Spill Prevention, Control, and Countermeasure (SPCC) Plan 
requirements by: first, providing the option for owners and operators 
of facilities that store 10,000 gallons of oil or less and meet other 
qualifying criteria to self-certify their SPCC Plans in lieu of review 
and certification by a Professional Engineer; second, providing an 
alternative to the general secondary containment requirement without 
requiring a determination of impracticability for facilities that have 
particular types of oil-filled equipment; third, defining and exempting 
particular vehicle fuel tanks and other on-board bulk oil storage 
containers used for motive power; and fourth, exempting mobile 
refuelers from the sized secondary containment requirements for bulk 
storage containers. The Agency also is removing and reserving the SPCC 
requirements for animal fats and vegetable oils that are specific to 
onshore oil production facilities, onshore oil drilling and workover 
facilities, and offshore oil drilling, production, or workover 
facilities. Finally, the Agency is extending the SPCC compliance dates 
for farms. These changes significantly reduce the burden imposed on the 
regulated community for complying with the SPCC requirements, while 
maintaining protection of human health and the environment. In a 
separate document in this Federal Register, the Agency is proposing to 
extend the compliance dates for all facilities.

DATES: This final rule is effective February 26, 2007.

ADDRESSES: The public docket for this final rule, Docket ID No. EPA-HQ-
OPA-2005-0001, contains the information related to this rulemaking, 
including the response to comment document. All documents in the docket 
are listed in the http://www.regulations.gov index. Although listed in 

the index, some information may not be publicly available, e.g., 
Confidential Business Information or other information the disclosure 
of which is restricted by statute. Certain other material, such as 
copyrighted material, will be publicly available only in hard copy. 
Publicly available docket materials are available either electronically 
in http://www.regulations.gov or in hard copy at the EPA Docket, EPA/

DC, EPA West, Room B102, 1301 Constitution Ave., NW., Washington, DC. 
The Public Reading Room is open from 8:30 a.m. to 4:30 p.m., Monday 
through Friday, excluding legal holidays. The telephone number of the 
Public Reading Room is 202-566-1744, and the telephone number to make 
an appointment to view the docket is 202-566-0276. The EPA Docket 
Center suffered damage due to flooding during the last week of June 
2006. The Docket Center is continuing to operate. However, during the 
cleanup, there will be temporary changes to Docket Center telephone 
numbers, addresses, and hours of operation for people who wish to visit 
the Public Reading Room to view documents. Consult EPA's Federal 
Register notice at 71 FR 38147 (July 5, 2006) or the EPA Web site at 
http://www.epa.gov/epahome/dockets.htm for

[[Page 77267]]

current information on docket status, locations and telephone numbers.

FOR FURTHER INFORMATION CONTACT: For general information, contact the 
Superfund, TRI, EPCRA, RMP and Oil Information Center at 800-424-9346 
or TDD 800-553-7672 (hearing impaired). In the Washington, DC 
metropolitan area, call 703-412-9810 or TDD 703-412-3323. For more 
detailed information on specific aspects of this rule, contact Vanessa 
E. Rodriguez at 202-564-7913 (rodriguez.vanessa@epa.gov), or Mark W. 
Howard at 202-564-1964 (howard.markw@epa.gov), U.S. Environmental 
Protection Agency, 1200 Pennsylvania Avenue, NW., Washington, DC 20460-
0002, Mail Code 5104A.

SUPPLEMENTARY INFORMATION: The contents of this preamble are:

I. General Information
II. Entities Potentially Affected by This Rule
III. Statutory Authority and Delegation of Authority
IV. Background
V. Today's Action
    A. Qualified Facilities
    1. Overview of the Qualified Facilities Proposal
    2. Summary of This Final Rule for Qualified Facilities
    3. Eligibility Criteria
    a. Total Facility Oil Storage Capacity Threshold
    b. Reportable Discharge History
    4. Requirements for Qualified Facilities
    a. Self-Certification of Plan and Plan Amendment
    b. Elements of Self-Certification and Plan Amendments for Owners 
and Operators of Qualified Facilities
    c. Environmental Equivalence and Impracticability Determinations
    B. Qualified Oil-Filled Operational Equipment
    1. Oil-Filled Operational Equipment Definition
    2. Oil-Filled Manufacturing Equipment
    3. Eligibility Criteria
    a. Reportable Discharge History
    b. Consideration of Alternative Qualification Criteria
    4. Requirements for Qualified Oil-Filled Operational Equipment 
in Lieu of Secondary Containment
    a. Contingency Plans and Written Commitment of Manpower, 
Equipment and Materials
    b. Inspections or Monitoring Program
    c. Alternative Options Considered
    5. Qualified Oil-Filled Operational Equipment and Qualified 
Facilities Overlap
    C. Motive Power
    1. Definition of Motive Power
    2. Exemption
    D. Mobile Refuelers
    1. Definition of Mobile Refueler
    2. Amended Requirements
    E. Animal Fats and Vegetable Oils
    F. Extension of Compliance Dates for Farms
    1. Eligibility Criteria
    2. Compliance Date Extension for Farms
VI. Statutory and Executive Order Reviews
    A. Executive Order 12866--Regulatory Planning and Review
    B. Paperwork Reduction Act
    C. Regulatory Flexibility Act
    D. Unfunded Mandates Reform Act
    E. Executive Order 13132--Federalism
    F. Executive Order 13175--Consultation and Coordination With 
Indian Tribal Governments
    G. Executive Order 13045--Protection of Children From 
Environmental Health & Safety Risks
    H. Executive Order 13211--Actions That Significantly Affect 
Energy Supply, Distribution, or Use
    I. National Technology Transfer and Advancement Act
    J. Congressional Review Act

I. General Information

    The Environmental Protection Agency (EPA or the Agency) is amending 
the Spill Prevention, Control, and Countermeasure (SPCC) Plan 
requirements of the Oil Pollution Prevention regulation at 40 CFR part 
112 to streamline the regulatory requirements for owners and operators 
of a subset of facilities by: (1) Providing an option to allow the 
owners or operators of facilities with an oil storage capacity of 
10,000 gallons or less and who meet other qualifying criteria to self-
certify their SPCC Plans in lieu of review and certification by a 
Professional Engineer; (2) allowing owners and operators of facilities 
that have particular types of oil-filled operational equipment to use 
an oil spill contingency plan along with an inspection or monitoring 
program as an alternative to secondary containment for qualified 
equipment without requiring a determination of impracticability; (3) 
providing an exemption for newly defined ``motive power containers''; 
and (4) exempting mobile refuelers from the specifically sized 
secondary containment requirements for bulk storage containers. In 
addition, the Agency is removing and reserving certain SPCC 
requirements for animal fats and vegetable oils; and is extending the 
compliance dates for farms. The purpose of this rulemaking is to 
provide streamlined, alternative approaches for compliance with oil 
spill prevention requirements for these entities, and to improve net 
welfare by reducing the costs of regulation and improving compliance, 
resulting in greater environmental protection.

II. Entities Potentially Affected by This Rule

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               Industry sector                         NAICS code
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Oil Production...............................                     211111
Farms........................................                   111, 112
Electric Utility Plants......................                       2211
Petroleum Refining and Related Industries....                        324
Chemical Manufacturing.......................                        325
Food Manufacturing...........................                   311, 312
Manufacturing facilities using and storing                      311, 325
 animal fats and vegetable oils (AFVO).......
Metal Manufacturing..........................                   331, 332
Other Manufacturing..........................                      31-33
Real Estate Rental and Leasing...............                    531-533
Retail Trade.................................              441-446, 448,
                                                                 451-454
Contract Construction........................                         23
Wholesale Trade..............................                         42
Other Commercial.............................             492, 541, 551,
                                                                 561-562
Transportation...............................                    481-488
Arts Entertainment & Recreation..............                    711-713
Other Services (Except Public Administration)                    811-813
Petroleum Bulk Stations and Terminals........                       4247

[[Page 77268]]

Education....................................                         61
Hospitals & Other Health Care................                   621, 622
Accommodation and Food Services..............                   721, 722
Fuel Oil Dealers.............................                      45431
Gasoline stations............................                       4471
Information Finance and Insurance............                     51, 52
Mining.......................................                        212
Warehousing and Storage......................                        493
Religious Organizations......................                     813110
Military Installations.......................                     928110
Pipelines....................................                4861, 48691
Government...................................                         92
------------------------------------------------------------------------

    The list of potentially affected entities in the above table may 
not be exhaustive. The Agency's aim is to provide a guide for readers 
regarding those entities that potentially could be affected by this 
action. However, this action may affect other entities not listed in 
this table. If you have questions regarding the applicability of this 
action to a particular entity, consult the person listed in the 
preceding section entitled FOR FURTHER INFORMATION CONTACT.

III. Statutory Authority and Delegation of Authority

    Section 311(j)(1)(C) of the Clean Water Act (CWA or the Act), 33 
U.S.C. 1321(j)(1)(C), requires the President to issue regulations 
establishing procedures, methods, equipment, and other requirements to 
prevent discharges of oil from vessels and facilities and to contain 
such discharges. The President delegated the authority to regulate non-
transportation-related onshore facilities to EPA in Executive Order 
11548 (35 FR 11677, July 22, 1970), which has been replaced by 
Executive Order 12777 (56 FR 54757, October 22, 1991). A Memorandum of 
Understanding (MOU) between the U.S. Department of Transportation (DOT) 
and EPA (36 FR 24080, November 24, 1971) established the definitions of 
transportation-related and non-transportation-related facilities. A MOU 
among EPA, the U.S. Department of the Interior (DOI), and DOT, 
effective February 3, 1994, has re-delegated the responsibility to 
regulate certain offshore facilities from DOI to EPA.

IV. Background

    On July 17, 2002, EPA published a final rule amending the SPCC 
rule, formally known as the Oil Pollution Prevention regulation (40 CFR 
part 112), promulgated under the authority of section 311(j) of the 
CWA. (The SPCC rule was originally promulgated on December 11, 1973 (38 
FR 34164).) This rule included revised requirements for SPCC Plans and 
for Facility Response Plans (FRPs). It also included new subparts 
outlining the requirements for various classes of oil; revised the 
applicability of the regulation; amended the requirements for 
completing SPCC Plans; and made other modifications (67 FR 47042). The 
revised rule became effective on August 16, 2002. After publication of 
this rule, several members of the regulated community filed legal 
challenges to certain aspects of the rule. Most of the issues raised in 
the litigation have been settled, following which EPA published 
clarifications in the Federal Register to several aspects of the 
revised rule (69 FR 29728, May 25, 2004).\1\ In addition, concerns were 
raised about the implementability of certain aspects of the 2002 rule.
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    \1\ American Petroleum Institute v. Leavitt, No. 1:102CV02247 
PLF and consolidated cases (D.D.C. filed Nov. 14, 2002). The 
remaining issue to be decided concerns the definition of ``navigable 
waters'' in Sec.  112.2.
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    EPA has extended the dates for compliance with the 2002 rule by 
extending the dates for amending and implementing revised SPCC Plans in 
40 CFR 112.3(a), (b), and (c), most recently by notice dated February 
17, 2006 (71 FR 8462). Please see the Federal Register notice for 
further discussion on the compliance extensions. EPA took the most 
recent action in order to allow time to finalize the revisions in 
today's final rule and to provide the regulated community time to 
review and understand the material presented in the SPCC Guidance for 
Regional Inspectors, which was made available in December of 2005. The 
Agency also was concerned that the effects of the September 2005 
hurricanes on many industry sectors might adversely impact their 
ability to meet the compliance dates if no extension was provided.
    October 31, 2007 is the current deadline for amending and 
implementing revised SPCC Plans for facilities (including mobile 
facilities) that were in operation on or before August 16, 2002. 
Facilities that came into operation after August 16, 2002 also must 
prepare and implement an SPCC Plan on or before October 31, 2007. As 
discussed in Section V.F of this preamble, today's final rule provides 
an additional extension of the compliance date for farms. Today's rule, 
which is effective February 26, 2007, does not modify the compliance 
dates for owners and operators of facilities other than farms. 
Elsewhere in today's Federal Register, EPA is proposing to extend the 
compliance dates for owners and operators of facilities until July 1, 
2009 based on further SPCC regulatory revisions that EPA is 
considering, and that it expects to propose in 2007.
    On September 20, 2004, EPA published two Notices of Data 
Availability (NODAs). The first NODA solicited comments on submissions 
to EPA that suggested more focused requirements for owners and 
operators of facilities subject to the SPCC rule that handle oil below 
a certain threshold amount, referred to as ``certain facilities'' (69 
FR 56182). Streamlined approaches for owners and operators of 
facilities with oil capacities below a certain threshold were discussed 
in the NODA-related documents. The second NODA solicited comments on 
whether alternate regulatory requirements would be appropriate for 
owners and operators of facilities with oil-filled and process 
equipment (69 FR 56184). EPA has reviewed the public comments and data 
submitted in response to the NODAs in developing today's final rule.
    Additionally, on December 2, 2005, EPA issued the SPCC Guidance for 
Regional Inspectors. This guidance document is intended to assist 
regional inspectors in reviewing implementation of the SPCC rule at a 
regulated facility. The guidance document is designed to facilitate an 
understanding of the rule's applicability, to help clarify the role of

[[Page 77269]]

the inspector in the review and evaluation of a facility owner or 
operator's compliance with the performance-based SPCC requirements, and 
to provide a consistent national policy on several SPCC-related issues. 
The guidance is available to owners and operators of facilities that 
may be subject to the requirements of the SPCC rule and to the general 
public on the Agency's Web site at http://www.epa.gov/oilspill. This 

guidance document is a living document and will be revised, as 
necessary, to reflect any relevant future regulatory amendments, 
including today's action.
    Based on the comments received on the NODAs, as well as other 
information received, EPA proposed to amend the SPCC rule to address a 
number of issues raised, including those pertaining to qualified 
facilities, qualified oil-filled operational equipment, motive power 
containers, airport mobile refuelers, animal fats and vegetable oils, 
and the compliance date for farms. (See 70 FR 73524, December 12, 
2005.) EPA discusses each of these issues in Section V of this 
preamble. The preamble generally discusses the comments received on the 
proposal, EPA's response, and any modifications made to the proposal. 
For a more detailed discussion of the comments received and EPA's 
response, see ``Summary and Response to Comments,'' which is included 
in the docket for today's final rule.
    The scope of today's final rule was intended to address only 
certain targeted areas of the SPCC requirements, and a number of issues 
and concerns raised by the regulated community. As highlighted in the 
EPA Regulatory Agenda and the 2005 OMB report on ``Regulatory Reform of 
the U.S. Manufacturing Sector,'' EPA is considering further amendments 
to address other areas where regulatory reform may be appropriate. For 
these additional areas, the Agency expects to issue a proposed rule in 
2007. Areas where regulatory reform may be appropriate include, and are 
not limited to, oil and natural gas exploration and production, farms, 
and Tier I facilities. EPA, in conjunction with DOE, has been 
conducting an energy impact analysis of the SPCC requirements, and, to 
the extent that the analysis is available, will consider it to inform 
the Agency's 2007 rulemaking.
    Because it is highly unlikely that the Agency will be able to 
promulgate such regulatory amendments before the current October 31, 
2007 compliance date for SPCC becomes effective, EPA believes it is 
appropriate to provide an extension of the compliance date. Such an 
extension has been proposed elsewhere in today's Federal Register.
    The Agency is not in a position, at this time, to indicate all the 
areas for possible regulatory reform that may be addressed as part of 
the 2007 SPCC proposal. Nevertheless, the Agency recognizes that owners 
and operators of facilities need time to determine which changes may be 
made to the rules that may impact the requirements they are subject to 
in order to determine when they need to comply with the new 
requirements.
    This approach would allow those potentially affected in the 
regulated community an opportunity to make changes to their facilities 
and to their SPCC Plans necessary to comply with the revised 
requirements, rather than with the existing requirements. Regarding 
modifications of the SPCC regulations, EPA is proposing in a separate 
notice in today's Federal Register to extend the deadlines for 
compliance to July 1, 2009.

V. Today's Action

A. Qualified Facilities

1. Overview of the Qualified Facilities Proposal
    On December 12, 2005 (70 FR 73524), EPA proposed to amend the SPCC 
rule to provide an option to allow the owner or operator of a facility 
that meets the qualifying criteria (hereafter referred to as a 
``qualified facility'') to self-certify the facility's SPCC Plan in 
lieu of review and certification by a licensed Professional Engineer 
(PE). EPA proposed to amend Sec.  112.3 to describe the SPCC 
eligibility criteria that a regulated facility must meet in order to be 
considered a qualified facility.
    As proposed, the eligibility criteria for a qualified facility 
would be a facility subject to the SPCC rule that (1) has an aggregate 
oil storage capacity of 10,000 gallons or less; and (2) had no 
discharges as described in Sec.  112.1(b) during the ten years prior to 
self-certification. Self-certified Plans could not include 
``environmentally equivalent'' alternatives to required Plan elements 
as provided in Sec.  112.7(a)(2) or contingency planning in lieu of 
secondary containment as provided in Sec.  112.7(d) on the basis of 
``impracticability.'' However, the proposal included specified 
``environmentally equivalent'' measures with respect to security and 
integrity testing that would be available to facility owners and 
operators that choose to self-certify. Self-certification would be 
optional for owners and operators of facilities meeting the eligibility 
criteria, so that those owners and operators of qualified facilities 
that found the existing rules more cost-effective in achieving 
compliance with the SPCC requirements, would continue to have the 
option of complying with the streamlined approach or could choose to 
comply with the existing SPCC requirements (including the PE 
certification) to take advantage of the flexibility offered by PE-
certified impracticability determinations and environmentally 
equivalent measures.
    In general, the Agency agrees with the commenters who supported the 
qualified facilities proposal for self-certification and believe that 
this revision will relieve regulatory burden on small oil storage 
facilities. As one commenter noted, self-certification should result in 
greater compliance rates across the board. Therefore, today's rule 
finalizes the proposed provision with a few modifications.
    As described in the preamble to the proposed rule, EPA also 
considered, but did not propose, a multi-tiered structure option based 
on an analysis prepared for the U.S. Small Business Administration's 
(SBA) Office of Advocacy that included a tiered system for facilities 
that have total oil storage capacities between 1,321 and 5,000 gallons, 
between 5,001 and 10,000 gallons, and greater than 10,000 gallons. 
Under this option, Tier I facilities (1,321 to 5,000 gallons oil 
storage capacity) would not need a written SPCC Plan (and therefore no 
PE certification), but would adhere to all other SPCC requirements. 
Tier II facilities (5,001 to 10,000 gallons oil storage capacity) would 
be required to have a written SPCC Plan, but no PE certification 
requirement. Tier III facilities (greater than 10,000 gallons oil 
storage capacity) would be required to have a written SPCC Plan, 
certified by a PE. A significant number of commenters on the proposed 
rule supported a multi-tiered approach.
    The Agency continues to believe that a facility owner or operator 
cannot effectively implement an oil spill prevention program, or any 
other program (business or otherwise), without documentation of that 
program's action items. As a matter of practice, it would be extremely 
difficult for a facility owner or operator to be able to follow the 
regulatory requirements and to comply with all the recordkeeping 
components without the documentation that is the Plan itself. The Plan 
also serves as an important communication and training tool for both 
management and oil-handling personnel at the facility. The sole action 
of having to document compliance with all of the requirements can 
assist in

[[Page 77270]]

uncovering flaws in the program's implementation, and may serve as a 
tool to correct them. Additionally, the documentation of compliance 
with the rule's requirements in a written Plan serves as a facility-
specific oil spill response and prevention planning exercise which is 
designed to improve oil spill prevention. Nevertheless, the Agency 
understands the concerns, particularly of owners and operators of 
facilities with a smaller oil storage capacity and likely more limited 
resources, of the potential effort needed to develop a complicated 
Plan. Thus, the Agency has been exploring the possibility of developing 
a further simplified Plan for facilities that handle between 1,320 and 
5,000 gallons of oil. However, because the Agency is considering 
removing or changing some of the regulatory requirements and developing 
a standardized form/checklist for ease of implementation, the Agency 
chose not to finalize this option without taking further comment. 
Therefore, although EPA is not adopting a multi-tiered approach in 
today's final rule, the Agency intends to propose a simplified approach 
for facilities that handle between 1,320 and 5,000 gallons of oil 
within the near future. In that proposal, the Agency expects to discuss 
the implementation of the SPCC rule for these facilities.
    The preamble to the proposed rule also described an approach 
whereby the Agency would require owners and operators of qualified 
facilities to make a one-time notification to EPA if they have been in 
operation or subject to the SPCC requirements for a period less than 
ten years from the time of Plan certification, and therefore could not 
show a ten-year clean spill history as a qualifier. The comments 
generally opposed a notification requirement, arguing that it would 
impose additional burden with no clear benefit for the regulated 
community. EPA is not adopting this one-time notification requirement, 
because the Agency does not believe it would offer any further 
environmental protection. The additional burden of a notification 
requirement was not considered necessary and would be contrary to the 
intent of today's rule.
2. Summary of This Final Rule for Qualified Facilities
    Today's rule finalizes the proposed option with modifications to 
the reportable discharge history criterion and to the self-
certification limitations for qualified facilities. The final rule also 
places the alternative self-certification provisions in Sec.  112.6, 
rather than in Sec.  112.3(g) as proposed. A facility owner or operator 
may qualify to prepare a Plan that meets the alternative requirements 
in Sec.  112.6 of today's final rule, in lieu of a Plan prepared in 
accordance with the general requirements contained in Sec.  112.7 and 
the applicable requirements in subparts B and C of the rule. Finally, 
today's action allows a qualified facility owner or operator to use 
environmentally equivalent measures or an impracticability 
determination provided they are certified by a PE.
    To qualify for this option, a facility must meet the following 
eligibility criteria: the facility had no single discharge as described 
in Sec.  112.1(b) exceeding 1,000 U.S. gallons or no two discharges as 
described in Sec.  112.1(b) each exceeding 42 U.S. gallons within any 
twelve month period in the three years prior to the SPCC Plan 
certification date, or since becoming subject to 40 CFR part 112 if the 
facility has been in operation for less than three years, and the 
facility has 10,000 gallons or less in aggregate aboveground oil 
storage capacity. Discharges as described in Sec.  112.1(b) that are 
the result of natural disasters, acts of war, or terrorism will not 
disqualify a facility owner or operator from using the self-
certification option.
    An owner or operator of a qualified facility may prepare, self-
certify and implement an SPCC Plan that complies with all of the 
applicable requirements of the rule in accordance with Sec.  112.6 of 
today's final rule. No PE certification is required for qualified 
facilities' Plans. A qualified facility owner or operator also may 
choose to prepare a Plan in accordance with the general Plan 
requirements in Sec.  112.7 and applicable requirements in subparts B 
and C, including having the Plan certified by a Professional Engineer 
as required under Sec.  112.3(d). The qualified facility approach in 
today's final rule is optional; owners or operators of facilities that 
qualify may choose not to exercise this option.
    In proposing this option for facilities handling smaller amounts of 
oil, the Agency sought to focus on those smaller operations that may be 
concerned about the impact of utilizing a PE on their limited budget. 
Some of the current noncompliance with the SPCC regulation may be 
attributed to those concerns. The Agency believes that providing a 
simpler, less costly option for owners and operators of these smaller, 
less complex facilities will improve the overall compliance for the 
SPCC regulation, ultimately resulting in greater environmental 
protection.
3. Eligibility Criteria
a. Total Facility Oil Storage Capacity Threshold
    EPA proposed to limit the maximum aggregate oil storage capacity at 
a qualified facility to 10,000 gallons or less. EPA considered many 
different factors before selecting this maximum storage capacity. As 
explained in the preamble to the proposal (70 FR 73529), EPA has 
established 10,000 gallons as a threshold in several other rules 
relating to oil discharges. The National Oil and Hazardous Substances 
Pollution Contingency Plan size classes define an oil discharge to 
inland waters exceeding 10,000 gallons as a major discharge. An oil 
discharge of 10,000 gallons or more to waters of the U.S. and adjoining 
shorelines that could reasonably be expected to cause substantial harm 
to the environment also is one of the factors used in identifying 
facilities whose owners and operators must prepare and submit a 
Facility Response Plan (see 40 CFR 112.20(f)(1)(D). A number of State 
regulations also differentiate regulatory requirements based on a 
facility's total storage capacity, with some States specifying a 
10,000-gallon threshold (e.g., Maryland, Minnesota, Oregon, New York, 
Wisconsin). Finally, 10,000 gallons is a common storage container size.
    More commenters supported than opposed the proposed threshold 
eligibility criterion of total oil storage capacity of 10,000 gallons 
or less, while others offered alternative thresholds. Many commenters 
supported the idea of establishing tiers for qualified facilities. (As 
noted earlier, the Agency intends to propose a more streamlined 
approach for owners and operators of facilities with a total oil 
storage capacity of 5,000 gallons or less.) Many supporters believed 
that the proposed 10,000-gallon threshold would reduce the financial 
burden on owners and operators of small facilities. Among commenters 
that opposed the threshold, at least one stated that the proposed 
10,000-gallon threshold did not provide enough regulatory relief to 
owners and operators of small facilities, but others noted that smaller 
storage sizes do not necessarily correlate with lower spill risk.
    Facilities handling smaller amounts of oil are typically simpler in 
layout and operation. Most facilities with an oil storage capacity of 
10,000 gallons or less are in industrial sectors that are end-consumers 
of oil (i.e. farms, real estate, rental and leasing, retail trade, 
construction [see the Regulatory Impact Analysis for this action, found 
in the docket for today's final rule]). These

[[Page 77271]]

facilities are commonly not in an oil production or distribution 
business and tend to use oil on-site for heating purposes, or to fuel 
emergency power generators or heavy machinery. The configuration of the 
oil-related equipment tends to be relatively standard and simple. Oil 
is commonly stored in a few bulk storage containers which are often 
bought off-the-shelf from a tank manufacturer or installer (e.g., 
standard UL-142 tanks) and connected with few short lengths of piping 
in a standard configuration that changes relatively little from one 
facility to another.
    Additionally, these facilities typically do not have significant 
transfers of oil because they do not further distribute the oil. A 
survey conducted by EPA of oil storage facilities (1995 SPCC Survey of 
Oil Storage Facilities) found that the larger the storage capacity at a 
facility, the greater the likelihood of larger spills, more spills, and 
more cleanup costs annually. Our regression analyses of the 1995 survey 
data (see ``Analysis of the Relationship between Facility 
Characteristics and Oil Spill Risk,'' found in today's docket) 
confirmed similar linkages for facilities with a greater number of 
tanks and larger annual throughput. These analyses were performed 
because storage capacity, number of tanks, and throughput were 
identified as important individual factors in explaining the total 
annual spill volume, number of spills, and cleanup costs. Thus, these 
factors were used together in a multivariate regression model to ensure 
that these three variables continue to be statistically significant 
variables when assessing whether there is potential bias (i.e., an 
overstatement of the importance of the variable in explaining the 
variation in the dependent variable). After performing these analyses, 
storage capacity and number of tanks were found to be statistically 
significant in relation to all three measures of spill risk (i.e., 
total number, volume, and cleanup costs of oil spills). The Agency 
believes simple oil storage configuration, in conjunction with the 
smaller quantities of oil handled at qualified facilities, makes self-
certification an appropriate alternative. Therefore, the Agency has 
decided to maintain the maximum aggregate oil storage capacity for 
qualified facilities at 10,000 gallons as proposed.
    The development of streamlined requirements for owners and 
operators of those facilities with a smaller size or storage volume is 
not new; industry standards, engineering codes and practices, State 
regulations, local fire codes and local ordinances often recognize the 
differences between sizes and complexity of their target facilities 
and/or equipment and as a result incorporate simplified requirements. 
The Agency believes that today's action provides an alternative 
compliance option for owners and operators of facilities handling 
smaller amounts of oil that will ultimately result in increased 
environmental protection by making it easier and less burdensome to 
comply.
    EPA recognizes that an oil discharge of less than 10,000 gallons 
can be harmful (see 40 CFR part 110, where the Agency defines what 
constitutes a discharge of oil in quantities that may be harmful). 
Nevertheless, EPA believes that it is reasonable to allow owners and 
operators of facilities with a capacity of no more than 10,000 gallons 
the option to prepare and implement SPCC Plans without the involvement 
of a PE (except in those cases where environmental equivalence or an 
impracticability determination is requested by an owner or operator and 
that the owner or operator chooses to have a PE certify part or all of 
the facility SPCC Plan). Therefore, the Agency is adopting in today's 
rule a threshold capacity of 10,000 gallons as a criterion for those 
facilities that are qualified for self-certification.
    Some commenters argued that the 10,000-gallon threshold would still 
preclude owners and operators of smaller facilities from taking 
advantage of the self-certification alternative. For example, a 
facility with two 5,000-gallon storage containers and a few totes just 
exceeds the 10,000-gallon threshold. Commenters argued that these kinds 
of facilities have low volumes of oil and simple operations, and that 
perhaps a slightly higher threshold would be more appropriate. The 
Agency recognizes that regardless of the threshold quantity selected, 
there are likely to be facilities just above that threshold that will 
be excluded. To the extent that facility owners or operators want to 
take advantage of the streamlined approach, they always have the option 
of reducing the storage capacity of oil at their facility by either 
removing containers from the facility inventory, or permanently closing 
containers in accordance with Sec.  112.2.
    Other commenters suggested higher threshold quantities, generally 
based upon the quantities of oil used or stored in their particular 
industry sector. EPA does not agree that this provides a rational basis 
for raising the threshold limit for qualified facilities. Higher 
thresholds would potentially allow owners and operators of facilities 
(in some cases unmanned) with more complex operations or more complex 
oil system configurations, designs and layouts, and with the potential 
for an increased number of transfers, the option of foregoing the 
services of a PE. Thus, self-certification for owners and operators of 
more complex facilities would not be commensurate with their potential 
spill risks.
    By limiting the self-certification option to owners and operators 
of facilities with a maximum aggregate oil storage capacity of 10,000 
gallons, the Agency believes that an owner or operator of a qualified 
facility should be able to self-certify compliance the facility's SPCC 
Plan, and that offering this simpler and streamlined alternative will 
result in greater environmental protection by improving compliance with 
the SPCC rule. Owners and operators of facilities handling smaller 
amounts of oil would still be required to comply with the SPCC 
requirements and to prevent and prepare to respond to oil discharges to 
navigable waters and adjoining shorelines, but they would be able to do 
so in a less costly manner. We believe this alternative certification 
provision will prove to be an incentive for compliance.
b. Reportable Discharge History
    Clean Water Act section 311(b)(3) prohibits ``the discharge of oil 
* * * into or upon the navigable waters of the United States, the 
adjoining shorelines, or into or upon the waters of the contiguous 
zone'' or in connection with specified activities in waters ``in such 
quantities as may be harmful * * *.'' Section 311(b)(4) requires 
regulations to define the quantities of oil, ``the discharge of which 
may be harmful to the public health or welfare or the environment of 
the United States, * * *.'' 33 U.S.C. 1321(b)(3), (4). In part 110, EPA 
defines a ``discharge of oil in such quantities that may be harmful'' 
as a discharge of oil that violates applicable water quality standards; 
a discharge of oil that causes a film or sheen upon the surface of the 
water or on adjoining shorelines; or a discharge of oil that causes a 
sludge or emulsion to be deposited beneath the surface of the water or 
adjoining shorelines (40 CFR 110.3). The Agency refers to such 
discharges as reportable discharges or as ``a discharge as described in 
Sec.  112.1(b)'' of the rule. Any person in charge of a facility must 
report any such discharge of oil to waters of the United States, 
adjoining shorelines, the contiguous zone or in connection with 
specified activities in waters from the facility to the National 
Response Center (NRC) at 1-800-424-8802 immediately. While EPA 
recognizes that past discharge

[[Page 77272]]

history does not necessarily translate into a predictor of future 
performance, the Agency believes that discharge history is a reasonable 
indicator of a facility owner or operator's ability to develop an SPCC 
Plan for his smaller oil storage capacity facility without the 
involvement of a PE.
    EPA proposed that a qualified facility subject to the SPCC 
requirements must have no reportable oil discharges as described in 
Sec.  112.1(b) during the ten years prior to self-certification or 
since becoming subject to the SPCC requirements, whichever time period 
is less. The Agency proposed using a facility's reportable discharge 
history as a reasonable indicator of the effective implementation of an 
SPCC Plan based on an established record of good oil spill prevention. 
The reportable discharge history criterion was intended to limit the 
option of self-certification to owners and operators of those 
facilities that had demonstrated an effective implementation of spill 
prevention measures in the past.
    The commenters who supported the proposed reportable discharge 
requirement agree that it is important for a facility to have a clean 
spill history. However, a significant number of commenters argued 
against the proposed reportable discharge history criterion as an 
appropriate criterion, and that the small storage capacity alone should 
be sufficient to allow self-certification. One reason is that some 
reportable discharges are not the facility owner or operator's fault, 
but caused by outside sources. For example, a number of commenters 
pointed to the recent hurricanes in the Gulf Coast states that led to 
oil discharges that were not within the control of the facility owner 
or operator. A further reason is that facilities that have a clean 
discharge history might not always remain spill-free. As for the 
proposed ten-year period, one commenter stated that facility owners and 
operators are only required to keep records for SPCC Plans for three 
years; most owners and operators keep them for five years. Another 
commenter stated that a discharge history of ten years would almost be 
impossible to prove. Another commenter believed that the qualification 
for a qualified facility should not be based on the ten-year discharge 
history, but should be based on the discharge history under the current 
operator. A few commenters believed that risk of discharge should 
determine self-certification. Additionally, many commenters recommended 
alternative discharge history timeframes in place of the ten-year 
timeframe EPA proposed. Half of the commenters believed that three 
years should be the time frame for the reportable discharge history 
since the SPCC record-keeping requirement for facility owners and 
operators is three years. Two commenters mentioned that if a discharge 
occurs and the Regional Administrator (RA) responds, and after review 
of the SPCC Plan the RA does not require an amendment in the Plan, then 
the discharge should not count against the facility owner or operator 
when determining its compliance with a spill-history criterion.
    After consideration of the comments received, EPA is finalizing the 
reportable discharge criterion for qualified facilities but for three 
years, rather than ten years. The Agency agrees with commenters that a 
ten-year spill history is unreasonable, particularly since the facility 
owner or operator is only required to keep records for three years. In 
addition, EPA is modifying the types of discharges that must be 
considered for this criterion. The final rule provides that for the 
three years prior to the SPCC Plan certification date, or since 
becoming subject to 40 CFR part 112 if the facility has been in 
operation for less than three years, the owner or operator of a 
facility must certify that the facility has (1) had no single discharge 
as described in Sec.  112.1(b) exceeding 1,000 U.S. gallons or (2) had 
no two discharges as described in Sec.  112.1(b) each exceeding 42 U.S. 
gallons within any twelve month period. When determining spill history, 
the gallon amount specified in the criterion (either 1,000 or 42) 
refers to the amount of oil that actually reaches waters of the United 
States, adjoining shorelines, the contiguous zone or in connection with 
specified activities in waters and not the total amount of oil spilled. 
For example, a facility only experiencing one discharge over the past 
ten years in which 1,500 gallons of oil discharged onto the ground but 
only 20 gallons reached waters of the United States (causing a sheen 
and reportable to the NRC) would meet the reportable discharge history 
criterion. However, a facility having 1,500 gallon discharge to waters 
of the United States would not meet the reportable discharge history 
criterion.
    In the preamble to the proposed rule, EPA requested comment on how 
extreme events such as natural disasters, acts of war or terrorism, 
sabotage or other calamities might potentially affect the discharge 
history criterion for qualified facilities. Many commenters stated that 
it would not be appropriate to include these events in the discharge 
history criterion. The Agency agrees that those reportable discharges 
caused by external factors beyond the control of the facility owner or 
operator such as natural disasters, acts of war, or terrorism should 
not disqualify owners and operators of otherwise qualified facilities 
from taking advantage of the self-certification option. Therefore, we 
have excluded those events from consideration in the reportable 
discharge criterion in today's final rule. The Agency did not include 
sabotage/vandalism in the final list of reportable discharge history 
extreme events because these are not necessarily beyond the control or 
planning ability of the facility owner or operator. Only those 
discharges as described in Sec.  112.1(b) that are the result of 
natural disasters, acts of war, or terrorism will not disqualify any 
owner or operator of an otherwise qualified facility from using the 
self-certification option.
    The discharge criterion finalized in today's rule is similar to the 
provision in Sec.  112.4(a) for discharges that must be reported to the 
EPA Regional Administrator (RA). A discharge that must be reported to 
the RA pursuant to Sec.  112.4(a) may result from improper Plan 
implementation, rather than from a deficiency in the Plan itself, which 
would likely not cause the RA to require the facility owner or operator 
to amend its Plan. Therefore, the EPA does not agree with the 
commenters that suggested excluding those discharges as described in 
Sec.  112.1(b) from the eligibility criterion that have been 
investigated by the RA with no subsequent requirement for a Plan 
amendment.
    The determination of eligibility based on reportable discharge 
history is made at the time the SPCC Plan is certified--i.e., when the 
SPCC Plan is amended to comply with the SPCC rule revisions in today's 
final rule and those promulgated in July 2002. Once the compliance date 
extension ends, Plans must be amended, certified and implemented. Any 
discharges to navigable waters and adjoining shorelines that occur from 
a qualified facility after the SPCC Plan has been certified do not 
impact the eligibility of an owner or operator of the qualified 
facility to take advantage of the self-certification option. The 
facility does not lose eligibility status as a result of a discharge as 
described in Sec.  112.1(b), unless the RA requires an amendment to the 
SPCC Plan in accordance with Sec.  112.4(d) and specifically requires 
PE-certification. If an owner or operator cannot certify that the 
facility meets the eligibility criterion at the initial date of Plan 
certification, but can later demonstrate a clean spill history of three 
years, as well as compliance with any remedial actions required by the 
RA

[[Page 77273]]

following a spill, then a technical amendment to the Plan can be self-
certified and the Plan can be revised to allow for qualified status.
4. Requirements for Qualified Facilities
    In today's rule, the Agency is creating a new section, Sec.  112.6, 
with requirements specific for qualified facilities whose owners and 
operators choose to self-certify their Plans. Owners and operators of 
qualified facilities with an aggregate aboveground oil storage capacity 
of 10,000 gallons of oil or less may choose to comply with the 
requirements in Sec.  112.6 by completing and implementing a self-
certified SPCC Plan. A qualified facility's Plan, whether certified by 
a PE or self-certified, must comply with all of the applicable 
requirements of Sec.  112.7 and subparts B and C of the rule. We note, 
however, that a facility's SPCC Plan does not need to conform to any 
particular format. There is flexibility with respect to how a facility 
owner or operator chooses to maintain the documentation comprising the 
facility's Plan, just as there is flexibility with respect to how the 
owner or operator chooses to carry out the elements of the Plan.
a. Self-Certification of Plan and Plan Amendment
    The commenters who supported self-certification for owners and 
operators of qualified facilities believed that it would relieve burden 
on the owners and operators. The commenters who opposed self-
certification did so for four main reasons. First, some commenters 
believe that the preparation of the SPCC Plan requires scientific, 
engineering, and professional judgment skills that are unique to 
engineers. Second, some commenters believe owners and operators of 
small facilities often cannot afford the cost of responding to a spill, 
and it is important that the SPCC Plan is prepared carefully and 
thoroughly by a PE. Third, some commenters believe that not having a PE 
involved would adversely affect public health, safety, and welfare. 
Fourth, some commenters believe that the proposal would allow non-
engineers to perform a function that is only allowed by engineers under 
the National Council of Examiners for Engineering and Surveying, a 
Model Law adopted by the majority of States.
    The self-certification option is designed for owners and operators 
of those facilities that store smaller amounts of oil. These smaller 
amounts of oil generally translate to facilities with simpler, pre-
engineered installations, such as restaurants, office buildings, family 
farms, automotive repair shops, and rural electrical substations. EPA 
believes that a differentiated option for users of smaller amounts of 
oil has merit as other official bodies, such as standards setting 
organizations have provided differentiations in their standards for 
smaller users of oil. For example, the National Fire Protection 
Association (NFPA) provides differentiated requirements based on type 
of facility and size of tanks. Specifically, NFPA 30 (Flammable and 
Combustible Liquids Code, 2000 Edition) applies to tanks that exceed 
3,000 liters (793 gallons) and does not apply to facilities storing 
flammable and combustible liquids as covered by NFPA 395, Standard for 
the Storage of Flammable and Combustible Liquids at Farms and Isolated 
Sites. The Agency believes that the relative simplicity of operations 
at facilities using smaller amounts of oil has served as a basis for 
other official bodies to develop requirements that are simpler in 
scope.
    To this end, the Agency is amending the certification language so 
that it clearly states that the owner or operator of the facility is 
the certifying official for those who choose the option to self-certify 
the Plan for qualified facilities. The Agency also intends to develop 
materials to assist these owners or operators in developing SPCC Plans. 
It should also be remembered that while owners and operators of these 
facilities may choose not to have their SPCC Plans certified by a PE, 
they will still be required to comply with all of the SPCC requirements 
and to develop and implement a spill prevention program in accordance 
with good engineering practices, and they may do so by following 
regulatory guidance, industry recommended practices and standard design 
and operation protocols. Finally, to the extent that a State has 
adopted a law, such as one based on the National Council of Examiners 
for Engineering and Surveying, that requires that a PE to perform 
certain functions, including certifying Plans, nothing in today's rule 
affects whether a facility owner or operator would be required to 
utilize a PE to meet the state or local requirements since today's rule 
does not pre-empt any State or local requirements.
    The Agency believes providing the added flexibility of self-
certification for the smaller oil handlers/simpler operations will 
yield an increase in overall compliance for this segment of the 
regulated community, which will result in improved compliance with the 
rule and as a result, improve overall spill prevention and 
environmental protection. However, owners or operators of some 
qualified facilities with complicated operations may nonetheless find 
that having a PE-certified Plan offers a more cost-effective method of 
achieving compliance than the proposed option. Therefore, a qualified 
facility owner or operator could choose to follow the existing SPCC 
requirements (including the PE certification).
    The Agency also proposed and is finalizing today that an owner or 
operator of a qualified facility may self-certify technical amendments 
to the Plan, including modification of site diagrams, and that owners 
and operators of facilities with PE-certified Plans that qualify for 
self-certification can choose to self-certify future technical 
amendments rather than hire a PE to certify the technical amendment. 
Owners and operators of facilities that are not eligible to self-
certify are required to have a PE certify such modifications. In all 
cases, any technical amendment in an SPCC Plan must be certified in 
writing. As described in the preamble to the proposed rule, the Agency 
notes that under the existing SPCC regulations, the RA, after reviewing 
the facility's Plan, has the authority in Sec.  112.4 to require an 
owner or operator of a facility that has had a discharge as described 
in Sec.  112.1(b) or that poses an imminent danger of a discharge as 
described in Sec.  112.1(b), to amend its SPCC Plan, including 
requiring PE certification in accordance with Sec.  112.3(d).
b. Elements of Self-Certification and Plan Amendments for Owners and 
Operators of Qualified Facilities
    The finalized requirements for owners and operators of qualified 
facilities are similar to those in the proposed qualified facilities 
option in the proposed rule. An owner or operator of a qualified 
facility may choose to comply with the requirements in Sec.  112.6 by 
completing and implementing a self-certified SPCC Plan in lieu of 
having a PE certified Plan. The SPCC Plan must comply with all of the 
applicable requirements of Sec.  112.7 and subparts B and C of the 
rule.
    Owners and operators that choose to self-certify their Plans must 
certify that they are familiar with the requirements of the SPCC rule; 
they have visited and examined the facility; the Plan has been prepared 
in accordance with accepted and sound industry practices and standards; 
procedures for required inspections and testing have been established; 
the Plan is being fully implemented; the facility meets the 
qualification criteria set forth under Sec.  112.3(g); the Plan does 
not include any

[[Page 77274]]

environmental equivalence measures as described in Sec.  112.7(a)(2) or 
determinations of impracticability under Sec.  112.7(d) unless each 
alternative method and/or determination has been reviewed and certified 
by a PE in accordance with Sec.  112.6(d); and the Plan and the 
individual(s) responsible for implementing the Plan have the full 
approval of management and the facility owner or operator has committed 
the necessary resources to fully implement the Plan.
    The qualified facility self-certification approach is optional. 
Under today's final rule, an owner or operator of a qualified facility 
may choose to prepare and implement a PE-certified SPCC Plan to comply 
with the requirements under 40 CFR part 112.
c. Environmental Equivalence and Impracticability Determinations
    Under Sec.  112.7, all facility owners and operators have the 
flexibility to deviate from specific rule provisions if the Plan states 
the reason for nonconformance and if equivalent environmental 
protection is provided by some other means of spill prevention, 
control, or countermeasure. These ``environmentally equivalent'' 
measures must be described in the SPCC Plan, including how the 
equivalent environmental protection will be achieved based on good 
engineering practice. Allowance for ``environmentally equivalent''' 
deviations is provided in Sec.  112.7(a)(2), and the deviations are 
available only for the specific requirements listed in Sec.  
112.7(a)(2), such as fencing and other security measures, evaluation of 
the potential for catastrophic tank failure due to brittle fracture, 
integrity testing, and overfill prevention. Environmental equivalence 
is not available for secondary containment or the administrative or 
recordkeeping requirements of the SPCC rule. As part of the SPCC Plan, 
any environmentally equivalent measures are required to be certified by 
a PE and the owner or operator, and the PE is required to consider 
industry standards in the development of the Plan. Thus, when a PE 
certifies a Plan that includes any environmentally equivalent 
protection measure, the PE is certifying that these alternative 
measures are consistent with relevant industry standards.
    The SPCC rule also provides flexibility for owners or operators who 
determine that the general secondary containment requirements in Sec.  
112.7(c) or any of the applicable additional requirements for secondary 
containment in subparts B and C are impracticable. Where 
impracticability is demonstrated, Sec.  112.7(d) allows facility owners 
and operators the flexibility to instead develop a contingency plan and 
comply with additional requirements. The SPCC Plan must explain why 
secondary containment measures are not practicable. Section 112.7(d) 
requires that, when containment for bulk storage containers is deemed 
impracticable, the owner or operator must conduct both periodic 
integrity testing of the containers and periodic integrity and leak 
testing of the valves and piping. The owner or operator also must 
provide an oil spill contingency plan that follows the provisions of 40 
CFR part 109 (Criteria for State, Local and Regional Oil Removal 
Contingency Plans), and a written commitment of manpower, equipment, 
and materials required to expeditiously control and remove any quantity 
of oil discharged that may be harmful as described in 40 CFR part 110. 
A PE must certify any determinations that secondary containment is 
impracticable, as well as the additional measures implemented in lieu 
of secondary containment.
    Because of the expertise that a PE has in evaluating whether 
particular measures provide equivalent environmental protection and in 
knowing how to effectively implement such measures, EPA believes that 
the flexibility in these performance-based provisions is best suited to 
SPCC Plans that are reviewed and certified by a PE. The same expertise 
is necessary in determining whether the required secondary containment 
is impracticable.
    EPA proposed that when a Plan is self-certified, the owner or 
operator would not be able to use environmentally equivalent measures 
or to make impracticability determinations with respect to secondary 
containment. Instead, EPA proposed specific alternative measures for 
compliance with security and integrity testing requirements at 
qualified facilities that self-certify. The commenters who supported 
this approach indicated that it added a safety factor into the self-
certification. Most commenters opposed this approach because 
impracticability determinations and environmental equivalence were 
originally created to relieve burden, and owners and operators of small 
facilities still need the flexibility these mechanisms provide. Some 
commenters believed that the agricultural industry would be negatively 
affected because the environmental equivalence and impracticability 
provisions are an important element to reduce the burden on owners and 
operators of these facilities due to topography and operations. As for 
the proposed specific alternative to environmentally equivalent 
measures for security, one commenter supported this proposal.
    With respect to integrity testing, the Agency proposed to allow 
self-certifying owners and operators of qualified facilities to perform 
integrity testing by relying on industry standards for the integrity 
testing requirements as an alternative to the existing bulk storage 
containing integrity testing requirements. All but one commenter 
supported the proposal. One commenter supported it, but also wanted 
visual inspection of individual shop-fabricated tanks up to 10,000 
gallons. Another commenter agreed, but believed that the expense of the 
Steel Tank Institute's (STI) Tank Inspection Standard, SP001 (July 
2005), was high and the STI standard and accompanying checklists are 
not applicable to small facilities. A hybrid approach also was 
suggested whereby owners and operators of qualified facilities would be 
allowed to use the self-certification option, and, in the event that an 
environmental equivalency or impracticability determination is needed, 
the owner or operator must consult a PE for just that aspect of their 
program, rather than requiring a full PE review and approval of the 
entire Plan.
    The Agency continues to believe that the flexibility afforded by 
the environmental equivalence or impracticability determinations should 
be available only to owners and operators of facilities having those 
elements reviewed and certified by a PE. At the same time, the Agency 
recognizes that by restricting these options for owners and operators 
of qualified facilities, the alternative of self-certification may not 
be as attractive for some owners or operators because they will lose 
the added flexibility of further tailoring the SPCC requirements to 
their facility's characteristics. The Agency agrees with commenters 
that under the proposed rule, there would likely be certain 
circumstances where, because of cost considerations, a facility owner 
or operator would not choose to self-certify because it would be more 
cost effective for a PE to prepare an SPCC Plan that utilizes 
environmentally equivalent measures or impracticability determinations.
    In today's final rule, the Agency therefore is adopting a hybrid 
approach. This approach finalizes the alternatives for addressing 
security measures and integrity testing and also allows owners or 
operators of self-certified facilities to include environmentally 
equivalent measures with respect to requirements other than facility 
security and integrity testing, as well as to make

[[Page 77275]]

impracticability determinations, provided they have a PE certify these 
environmentally equivalent measures or impracticability determinations. 
Because qualified facilities typically have less complex operations and 
petroleum system configurations and storage capacities than other 
facilities subject to SPCC requirements, EPA believes that the 
alternative requirements for facility security and bulk storage 
container integrity testing finalized today are appropriate for self-
certification. However, today's rule does not preclude a qualified 
facility from choosing to have a PE certify the integrity testing and/
or security measures in the facility's Plan as environmentally 
equivalent measures. For example, where there are no industry standards 
to guide integrity testing at a qualified facility, the alternative 
integrity testing option in Sec.  112.6(c)(4)(ii) is not available. 
However, the facility owner/operator is allowed to have a PE certify an 
integrity testing protocol in the Plan that is environmentally 
equivalent to the applicable requirements in subpart B or C. The Agency 
believes that this ``hybrid'' approach will further expand the 
flexibility offered by the self-certification compliance option to 
owners and operators of qualified facilities without compromising 
proper environmental protection.
    Similarly, EPA is adopting a hybrid approach to certification of 
technical amendments to a qualified facility's SPCC Plan in Sec.  
112.5. PE-certified sections of a qualified facility's ``hybrid'' SPCC 
Plan require PE certification of any technical amendments to that 
portion of the Plan. Technical amendments to the non-PE certified 
sections of a qualified facility's ``hybrid'' Plan can be certified by 
the owner or operator.

B. Qualified Oil-Filled Operational Equipment

    The definition of bulk storage container in Sec.  112.2 
specifically excludes oil-filled electrical, operating, and 
manufacturing equipment (``oil-filled equipment''). Therefore, oil-
filled equipment is not subject to the bulk storage container 
requirements in Sec. Sec.  112.8(c), 112.9(c), and 112.12(c). However, 
oil-filled equipment must meet the general requirements of Sec.  112.7, 
including the general secondary containment requirements of Sec.  
112.7(c). The general secondary containment requirements are intended 
to address the most likely oil discharge from oil-filled equipment. 
Although oil-filled equipment differs from bulk storage containers in 
several ways, the oil storage capacity of oil-filled equipment still 
counts towards the aggregate oil storage capacity of the facility.
    EPA proposed to amend the SPCC rule to provide a definition of oil-
filled operational equipment and an optional alternative to the general 
secondary containment requirements for oil-filled operational equipment 
at a facility that meets the qualifying criterion (hereafter referred 
to as ``qualified oil-filled operational equipment''). These amendments 
are being finalized in today's rule. The rule allows owners and 
operators of facilities with eligible oil-filled operational equipment 
as defined in Sec.  112.2 the option to prepare an oil spill 
contingency plan and a written commitment of manpower, equipment, and 
materials to expeditiously control and remove any oil discharged that 
may be harmful without having to make an individual impracticability 
determination as required in Sec.  112.7(d). If an owner or operator 
takes this option, he or she is also required to establish and document 
an inspection or monitoring program for this qualified oil-filled 
operational equipment to detect equipment failure and/or a discharge in 
lieu of providing secondary containment.
    New provisions in Sec.  112.7(k) define the criterion that 
facilities must meet in order to be considered eligible for the 
``qualified oil-filled operational equipment'' option. Eligibility of a 
facility with oil-filled operational equipment is determined by 
considering the reportable discharge history from only oil-filled 
operational equipment at the facility; the Agency is adopting the same 
reportable discharge history criterion that it adopted for qualified 
facilities, as discussed in Section V.A.3.b above. That is, the 
qualified oil-filled operational equipment criterion specifically 
requires that the facility did not discharge more than 1,000 U.S. 
gallons in a single discharge as described in Sec.  112.1(b) or 
discharge more than 42 U.S. gallons in each of two discharges as 
described in Sec.  112.1(b) within twelve months, from any oil-filled 
operational equipment in the three years prior to the SPCC Plan 
certification date, or since becoming subject to 40 CFR part 112 if the 
facility has been in operation for less than three years.
    As proposed, the final rule provides an alternative means of SPCC 
compliance for this equipment; therefore, an owner or operator could 
choose to comply with the existing SPCC requirements to provide general 
secondary containment for each piece of qualified oil-filled 
operational equipment in accordance with Sec.  112.7(c), if desired. 
For example, oil-filled operational equipment at electrical substations 
is often surrounded by a gravel bed, which serves as a passive fire 
quench system and support for the facility grounding network that can 
restrict the movement of oil in the event of a release. Gravel beds, if 
designed to prevent a discharge as described in Sec.  112.1(b) (i.e., 
drainage systems that do not serve as a conduit to surface waters) may 
meet the general secondary containment requirements of Sec.  112.7(c). 
EPA further notes that oil-filled operational equipment located within 
buildings with limited drainage and which prevent a discharge as 
described in Sec.  112.1(b), may already meet the requirements for 
general secondary containment of Sec.  112.7(c).
    In some situations, permanent containment structures, such as 
dikes, may not be feasible (i.e., for certain electrical equipment). 
Section 112.7(c) allows for the use of certain types of active 
containment measures (countermeasures or spill response capability), 
which prevent a discharge to navigable waters or adjoining shorelines. 
Active containment measures are those that require deployment or other 
specific action by the owner or operator. These measures may be 
deployed either before an activity involving the handling of oil 
starts, or in reaction to a discharge so long as the active measure is 
designed to prevent an oil spill from reaching navigable waters or 
adjoining shorelines. Thus, a method of detecting a discharge is of 
great importance to effectively implement the use of active containment 
measures. If an owner or operator provides secondary containment for 
oil-filled operational equipment by the use of active measures, a 
contingency plan for this equipment is not necessary. Ultimately, the 
decision whether to use the optional approach to secondary containment 
for qualified oil-filled equipment must be made by the owner or 
operator.
1. Oil-Filled Operational Equipment Definition
    EPA proposed to define ``oil-filled operational equipment'' as 
``equipment which includes an oil storage container (or multiple 
containers) in which the oil is present solely to support the function 
of the apparatus or the device. Oil-Filled operational equipment is not 
considered a bulk storage container, and does not include oil-filled 
manufacturing equipment (flow-through process).'' Many of the 
commenters supported this definition and therefore, we are finalizing 
this definition in today's rule and including examples in the

[[Page 77276]]

definition to provide additional clarity. Examples of oil-filled 
operational equipment include, but are not limited to, hydraulic 
systems, lubricating systems (i.e., those for pumps, compressors and 
other rotating equipment, including pumpjack lubrication systems), gear 
boxes, machining coolant systems, heat transfer systems, transformers, 
circuit breakers, electrical switches, and other systems containing oil 
solely to enable the operation of the device. When piping is intrinsic 
to the oil-filled operational equipment in a closed loop system, i.e., 
inherent to the equipment and used solely to facilitate operation of 
the device, (e.g., for lubrication) then EPA will consider the piping 
to be a component of the oil-filled operational equipment. However, 
piping not intrinsic to the operational equipment (i.e., flowlines, 
transfer piping or piping associated with a process) will not be 
considered to be part of the oil-filled operational equipment.
    The Agency received comments that included alternatives to the 
definition proposed. Specifically, commenters suggested that the word 
``storage'' be removed from the definition of ``oil-filled operational 
equipment.'' The Agency disagrees with the suggestion to remove the 
word ``storage'' from the definition because oil-filled operational 
equipment includes oil inherent to the device which is stored prior to 
and during use for the operation of the equipment and when the oil-
filled operational equipment is in standby.
    Some commenters asked that EPA identify generators (``gensets'') as 
oil-filled operational equipment. EPA's position is that gensets are a 
combination of oil-filled operational equipment and a bulk oil storage 
container, and the oil that is consumed to generate electricity is not 
inherent to the device. (The bulk storage container on a genset often 
requires the transfer of oil.) Therefore, although gensets incorporate 
oil-filled operational equipment, such as the lubrication oil system, 
gensets, as a whole unit, do not meet the definition of oil-filled 
operational equipment in today's final rule. In situations where it is 
impracticable to provide appropriate secondary containment for gensets 
(for either the bulk storage containers or oil-filled operational 
equipment of the genset), a PE can make a determination of 
impracticability in accordance with Sec.  112.7(d) and develop a 
contingency plan following the provisions of 40 CFR part 109 and 
provide a written commitment of manpower, equipment and materials to 
expeditiously control and remove any quantity of oil discharged that 
may be harmful. See Chapter 4 of the SPCC Guidance for Regional 
Inspectors for further explanation regarding when sized secondary 
containment is required for mobile or portable containers that are in a 
stationary, unattended mode.
    Several commenters argued that by combining oil-filled electrical 
with other operational equipment, EPA diluted the strong case for 
differentiation of oil-filled operational equipment. Commenters also 
suggested that EPA redefine electrical equipment to include not only 
circuit breakers, transformers, and electrical switches, but also 
hydraulic systems, lubricating systems, gear boxes, machining coolant 
systems, heat transfer systems, etc. In July 2002, when EPA clarified 
that oil-filled electrical, operating, and manufacturing equipment are 
not bulk storage containers, the Agency agreed to continue to evaluate 
whether the general secondary containment requirements found in Sec.  
112.7(c) should be modified for small electrical and other types of 
equipment which use oil for operating purposes. Today's definition of 
oil-filled operational equipment describes the function of both 
electrical equipment, as well as other types of operating equipment 
(hydraulic systems, lubricating systems, etc.)
    Oil-filled electrical and operating equipment share common 
characteristics. They both typically have minimal oil throughput 
because such equipment does not require frequent transfers of oil. 
Further, the oil contained in oil-filled operational equipment, such as 
cooling or lubricating oil, is intrinsic to the operation of the device 
and facilitates the function of the equipment. Utilities have strong 
economic incentives to prevent power outages, to discover and respond 
to an outage, and to correct the conditions that produced the outage as 
quickly as possible. Other industry sectors also have strong incentives 
to prevent discharges to avoid disruption in business and costs of a 
cleanup. The Agency believes it is appropriate to allow the same 
alternative means of compliance with the general secondary containment 
requirements of Sec.  112.7(c) for oil-filled operational equipment at 
all facilities. In addition, oil-filled operational equipment often is 
subject to routine maintenance and inspections to ensure proper 
operation. Therefore, the Agency believes it is appropriate to allow 
the same alternative means of compliance with general secondary 
containment requirements to apply to both oil-filled electrical and 
operational equipment. We have included both types of equipment into 
the definition of oil-filled operational equipment.
2. Oil-Filled Manufacturing Equipment
    The Agency is not finalizing a definition of oil-filled 
manufacturing equipment because we did not propose and seek comment on 
a definition. Additionally, the Agency does not agree with commenters 
that the alternative option to general secondary containment should 
also apply to oil-filled manufacturing equipment. Oil-filled 
manufacturing equipment is inherently more complicated than oil-filled 
operational equipment because it typically involves a flow-through 
process and is commonly interconnected through piping. For example, 
oil-filled manufacturing equipment may receive a continuous supply of 
oil, in contrast to the static capacity of other, non-flow-through oil-
filled equipment. Examples of oil-filled manufacturing equipment 
include, but are not limited to, process vessels, conveyances such as 
piping associated with a process, and equipment used in the alteration, 
processing or refining of crude oil and other non-petroleum oils, 
including animal fats and vegetable oils.
    The final rule does not change any requirements for oil-filled 
manufacturing equipment. Oil-filled manufacturing equipment remains 
subject to the general SPCC requirements under Sec.  112.7, including a 
demonstration of impracticability under Sec.  112.7(d) if the SPCC Plan 
does not provide for general secondary containment as required by Sec.  
112.7(c). The oil storage containers associated with the storage of raw 
products or finished oil products are bulk oil storage containers and 
are not considered oil-filled manufacturing equipment or oil-filled 
operational equipment. Oil-filled manufacturing equipment is distinct 
from bulk storage containers in its purpose and is described in the 
SPCC Guidance for Regional Inspectors. Oil-filled manufacturing 
equipment stores oil only as an ancillary element of performing a 
mechanical or chemical operation to create or modify an intermediate or 
finished product. Some more specific examples of oil-filled 
manufacturing equipment may include reaction vessels, fermentors, high 
pressure vessels, mixing tanks, dryers, heat exchangers and 
distillation columns. Under the SPCC rule, flow-through process vessels 
are generally considered oil-filled manufacturing equipment since they 
are not intended to store oil. EPA expects the owner or operator and 
the certifying PE to delineate bulk storage containers from the oil-
filled manufacturing equipment

[[Page 77277]]

in the facility's SPCC Plan (i.e., on the facility's diagram and in 
discussion of compliance with inspection requirements of the rule). 
Additionally, although oil-filled manufacturing equipment is not a bulk 
storage container and is therefore not subject to the frequent visual 
inspection requirement for bulk storage containers under Sec.  
112.8(c)(6), EPA believes that it is good engineering practice to have 
some form of visual inspection or monitoring for oil-filled 
manufacturing equipment in order to prevent discharges as described in 
Sec.  112.1(b). Furthermore, it is a challenge to comply with several 
of the SPCC provisions (for example, requirements for security under 
Sec.  112.7(g)) and to address countermeasures for discharge discovery 
under Sec.  112.7(a)(3)(iv)) without some form of inspection or 
monitoring program.
3. Eligibility Criteria
a. Reportable Discharge History
    Part 110 defines a discharge of oil in such quantities that may be 
harmful to the public health, welfare, or the environment of the United 
States as a discharge of oil that violates applicable water quality 
standards; a discharge of oil that causes a film or sheen upon the 
surface of the water or on adjoining shorelines; or a discharge of oil 
that causes a sludge or emulsion to be deposited beneath the surface of 
the water or adjoining shorelines (40 CFR 110.3). The Agency refers to 
such discharges as reportable discharges or as ``a discharge as 
described in Sec.  112.1(b)'' of the rule. Any person in charge of a 
facility must report any such discharge of oil from the facility to the 
National Response Center (NRC) at 1-800-424-8802 immediately. While EPA 
recognizes that past release history does not necessarily translate 
into a predictor of future performance, the Agency believes that 
discharge history is a reasonable indicator of a facility owner or 
operator's ability to develop an SPCC Plan for the facility without the 
involvement of a PE.
    Under the proposal, the alternative compliance approach for general 
secondary containment for oil-filled operational equipment would not be 
allowed to be implemented at the facility unless the owner or operator 
had no reportable discharge from any oil-filled operational equipment 
in the ten years prior to the SPCC Plan certification date, or since 
becoming subject to 40 CFR part 112 if the facility had been in 
operation for less than ten years. This criterion was based on a 
proposal submitted by the Utility Solid Waste Activities Group (USWAG), 
as described in the documents supplementing the September 20, 2004 
Notice of Data Availability (NODA) at 69 FR 56184.
    Many commenters agreed with the proposed eligibility requirement. 
However, several comments requested that the qualifier be dropped and 
the type of equipment be the only qualifier. These commenters argued 
that reportable discharge history was not a suitable criterion for a 
number of reasons, including: (1) It is arbitrary and capricious--
eligibility should be rationally related to equipment or equivalent 
facility performance; (2) it is not effective to identify bad actors 
who do not report discharges; (3) it is unreasonable for crude oil and 
natural gas production facilities, so no requirements should apply; and 
(4) it does not take into consideration the volume of oil or location 
of equipment in assessing risk. Other commenters suggested considering 
the criterion for submitting reports to EPA under Sec.  112.4 to be the 
eligibility criterion for oil-filled operational equipment. Another 
commenter requested EPA clarify that the discharge is from regulated 
equipment, i.e., equipment that is greater than 55 gallons.
    Although EPA recognizes that past discharge history does not 
necessarily predict future performance, the Agency believes that 
discharge history can be used as a surrogate measure for a facility 
owner or operator's ability to appropriately manage its oil. Hence, as 
with ``qualified facilities,'' EPA is using this discharge history 
criterion to identify a facility owner or operator's ability to 
effectively implement its SPCC Plan and prevent discharges in 
quantities that may be harmful. In establishing a good oil spill 
prevention history for its oil-filled operational equipment, a facility 
then qualifies for the oil spill contingency plan option in lieu of 
secondary containment. Because the Agency believes it is appropriate to 
extend this approach to all oil-filled operational equipment, 
regardless of the oil storage capacity of the equipment, the spill 
history criterion is critical to establish an appropriate balance 
between environmental protection and streamlined requirements by 
identifying those facilities whose owners or operators have 
demonstrated good spill prevention practices in the past.
    EPA does not agree that this is unreasonable for crude oil and 
natural gas production facilities because the reportable discharge 
criterion is applicable only to the oil-filled operational equipment at 
the facility and is not affected by other discharges that may have 
occurred from the facility from other types of oil storage containers. 
One commenter pointed out that discharges from compressors, pumpjacks, 
and similar equipment are extremely rare and unlikely to reach 
navigable waters and adjoining shorelines.
    Many commenters suggested an alternate reportable discharge history 
period of five years. One commenter suggested three years and another 
suggested either two or five years. A few commenters suggested the time 
period should be five years with a Sec.  112.4 spill notification 
trigger.
    In response to comments received on the proposed rule, EPA has 
reduced the discharge history period from ten years to three years, 
which is consistent with the recordkeeping requirements in Sec.  
112.7(e). In addition, rather than including all discharges reportable 
to the National Response Center, the Agency is specifying amounts of 
more than 1,000 U.S. gallons in a single discharge as described in 
Sec.  112.1(b) or more than 42 U.S. gallons in two discharges as 
described in Sec.  112.1(b) within a twelve month period during the 
three-year timeframe, or since becoming subject to 40 CFR part 112 if 
the facility has been in operation for less than three years, only from 
oil-filled operational equipment at the facility. This criterion does 
not include oil discharges as described in Sec.  112.1(b) that are the 
result of natural disasters, acts of war, or terrorism. The approach is 
similar to the discharges that are reportable to the Regional 
Administrator under Sec.  112.4(a), with the exception that the 
criterion finalized today applies only to discharges from oil-filled 
operational equipment and not all oil containers at a facility as in 
the case of Sec.  112.4(a). When determining spill history, the gallon 
amount specified in the criterion (either 1,000 or 42) refers to the 
amount of oil that actually reaches waters of the United States, 
adjoining shorelines, the contiguous zone or in connection with 
specified activities in waters and not the total amount of oil spilled. 
For example, a facility only experiencing one discharge over the past 
ten years in which 1,500 gallons of oil discharged onto the ground but 
only 20 gallons reached waters of the United States (causing a sheen 
and reportable to the NRC) would meet the Reportable Discharge History 
criterion. However, a facility having 1,500-gallon discharge to waters 
of the United States would not meet the Reportable Discharge History 
criterion.
    The determination of eligibility based on reportable discharge 
history is made at the time the SPCC Plan is certified.

[[Page 77278]]

That is, when the SPCC Plan is amended to comply with the SPCC rule 
revisions in today's final rule and those promulgated in July 2002. 
Once the current compliance date extension ends, Plans must be amended, 
certified and implemented. Any discharges to navigable waters and 
adjoining shorelines that occur from oil-filled operational equipment 
at the facility after the SPCC Plan has been certified do not impact 
the eligibility of qualified oil-filled operational equipment at the 
facility. The facility does not lose eligibility status as a result of 
a discharge as described in Sec.  112.1(b), unless the RA requires an 
amendment to the SPCC Plan in accordance with Sec.  112.4(d) and 
specifically requires secondary containment for oil-filled operational 
equipment. If an owner or operator cannot certify that the oil-filled 
operational equipment meets the eligibility criterion at the initial 
date of Plan certification, but can later demonstrate a clean spill 
history of three years, then a technical amendment to the Plan can be 
certified and the Plan can be revised to allow for qualified status for 
oil-filled operational equipment.
    In the preamble to the proposed rule, EPA requested comment on how 
extreme events such as natural disasters and acts of war, terrorism , 
sabotage, or other calamities might potentially affect the discharge 
history criterion for qualified facilities. Many commenters agreed (and 
no commenters disagreed) that EPA should account for extreme events 
such as natural disasters, acts of war or terrorism, etc. in granting 
eligibility status. The Agency agrees that reportable discharges caused 
by external factors beyond the control of the facility owner or 
operator such as natural disasters, acts of war, or terrorism should 
not disqualify a facility from eligibility for the qualified oil-filled 
equipment provision. Therefore we have excluded those events from 
consideration in the reportable discharge eligibility criterion in 
today's final rule. The Agency has excluded sabotage/vandalism from the 
final list of extreme events not to be considered in the reportable 
discharge history because these are not necessarily beyond the control 
or planning ability of the facility owner or operator.
b. Consideration of Alternative Qualification Criteria
    One commenter suggested that the inspection and monitoring program 
be the only qualifier for a facility owner or operator to take 
advantage of this option. Other suggestions would allow eligibility to 
be based on the type of equipment and a commitment or duty to properly 
maintain that equipment such as the duty in 40 CFR 122.41(e) to 
maintain wastewater treatment equipment. In this case, facility owners 
or operators would lose eligibility based on their performance or SPCC 
inspection results (i.e. failure to maintain oil-filled electrical 
equipment). The Agency is not finalizing these alternatives as part of 
the eligibility criteria because we believe it is in the owner or 
operator's best interest to properly maintain equipment at the facility 
and a commitment to the Agency to maintain equipment is not necessary.
    The Agency believes that inspections and monitoring are part of an 
effective spill prevention program and it is more appropriate to 
include these prevention practices as a component of the alternative 
option for compliance with general secondary containment requirements 
for oil-filled operational equipment. To include these spill prevention 
practices as a basis for qualification raises questions on the length 
of time and scope of the inspection and monitoring program necessary to 
be in place at the facility in order to demonstrate qualification.
    Additionally, the SPCC regulations already provide EPA the 
authority to require SPCC Plan amendments under Sec.  112.4 so it is 
not necessary to include an automatic loss of eligibility based on 
facility performance or SPCC inspection results. Section 112.4(a) 
requires an owner or operator of a facility that has discharged more 
than 1,000 U.S. gallons of oil in a single discharge as described in 
Sec.  112.1(b) or that has discharged more than 42 U.S. gallons of oil 
in each of two discharges as described in Sec.  112.1(b) within any 
twelve month period, to submit information to the EPA RA within 60 days 
of the date of the discharge. As per Sec.  112.4(d), the RA may require 
the facility owner or operator to amend the SPCC Plan in order to 
prevent and contain discharges, including a requirement that a facility 
owner or operator provide secondary containment for qualified oil-
filled operational equipment. The time frame for this review and 
amendment process is described in Sec.  112.4. The facility owner or 
operator may choose to appeal the RA's decision to require a Plan 
amendment under Sec.  112.4. In addition, a discharge of oil ``in such 
quantities as may be harmful'' as defined in 40 CFR 110.3 that does not 
trigger the reporting requirements of Sec.  112.4(a) must still be 
reported to the National Response Center. Criminal action can be taken 
against an owner or operator of a facility if discharges are willfully 
not reported. EPA also receives copies of the NRC reports and has the 
authority under Sec.  112.1(f) to require a facility owner or operator 
to prepare and implement an SPCC Plan or any applicable part of a Plan.
    Owners and operators of facilities with qualified oil-filled 
operational equipment that choose the alternative to secondary 
containment and that subsequently have a discharge would not 
automatically lose eligibility for today's optional approach. Owners or 
operators of facilities that discharge oil in quantities that may be 
harmful from oil-filled operational equipment should re-evaluate the 
effectiveness of the SPCC Plan (specifically the contingency plan, 
written commitment of resources, and inspections/monitoring alternative 
discussed in today's final rule) and determine the need for secondary 
containment measures in lieu of contingency planning. Additionally, the 
Regional Administrator may determine that a facility owner or operator 
is no longer eligible to have a contingency plan in lieu of secondary 
containment without making an impracticability determination, and such 
owners or operators may be required to amend their Plans to provide 
secondary containment for their oil-filled operational equipment.
4. Requirements for Qualified Oil-Filled Operational Equipment In Lieu 
of Secondary Containment
a. Contingency Plans and a Written Commitment of Manpower, Equipment, 
and Materials
    As described in the preamble to the proposed rule, EPA believes 
that secondary containment often may be impracticable for oil-filled 
operational equipment because of inherent design and safety 
considerations, as well as site configuration. The oil associated with 
oil-filled operational equipment remains inside the equipment and 
transfers do not occur regularly; for oil-filled electrical equipment 
(i.e., transformers) transfers typically occur infrequently, if at all. 
The complexity of the equipment and the nature of the use of this 
equipment does not lend itself to traditional bulk storage containment 
methods and thus flexibility is appropriate in this area and may 
improve compliance with oil pollution prevention measures. EPA proposed 
amendments to Sec.  112.7 to give owners and operators of facilities 
with qualified oil-filled operational equipment the option of 
implementing an inspection and monitoring program, developing an oil 
spill contingency plan and providing a written commitment of resources

[[Page 77279]]

required to expeditiously control and remove any quantity of oil 
discharged that may be harmful, in lieu of secondary containment for 
this equipment, without having to make an impracticability 
determination for each piece of oil-filled operational equipment. The 
inspection and/or monitoring program, contingency plan and written 
commitment of resources would be included in the facility SPCC Plan. 
Commenters generally supported this proposal and the provision is being 
finalized in Sec.  112.7(k) as proposed.
    A number of commenters were unclear regarding the intent of an oil 
spill contingency plan. For example, a common industry interpretation 
of an ``oil spill contingency plan'' covers anticipated responses to 
oil spills both on land, as well as spills that reach navigable waters. 
Some commenters suggested that the contingency plan be in lieu of an 
SPCC Plan entirely. Others suggested that it is an administrative 
burden to identify downstream water users and the majority of 
commenters suggested that it is inappropriate to consider large 
discharges to water since the goal should be to prevent oil from 
getting to navigable waters in the first place. Several commenters 
suggested that implementation of a contingency plan in accordance with 
the requirements of 40 CFR part 109 was inappropriate because the 
purpose of the contingency plan should be to prevent a discharge to 
navigable waters and adjoining shorelines.
    Commenters suggested that the oil spill contingency plan should 
instead contain four major elements: hazard identification, 
vulnerability analysis, risk assessment and response actions. Many of 
the commenters that suggested simplifying the contingency planning 
option to allow for hazard identification, vulnerability analysis, risk 
assessment, and response actions may already be in compliance with the 
general secondary containment requirements of the SPCC rule by 
utilizing active secondary containment measures.
    We do not believe that a contingency plan, by itself, is sufficient 
to substitute for an SPCC Plan. The purpose of the SPCC Plan is to 
prevent discharges of oil from reaching navigable waters and adjoining 
shorelines and includes a combination of procedures, measures and 
equipment to achieve that goal, e.g., procedures for inspections and 
personnel training, equipment to prevent and control discharges of oil 
and security measures. Conversely, a contingency plan is a detailed oil 
spill response and removal plan that addresses controlling, containing, 
and recovering an oil discharge in quantities that may be harmful to 
navigable waters or adjoining shorelines. Contingency plans have a dual 
purpose. The first purpose is to outline the response capability or 
countermeasures to limit the quantity of a discharge from reaching 
navigable waters or adjoining shorelines (if possible). The second is 
to address the facility owner or operator's effective preparation for a 
response to a discharge of oil that has already reached navigable 
waters or adjoining shorelines. A contingency plan should include the 
ability to expeditiously control and remove any quantity of oil 
discharged that may be harmful.
    The elements of the contingency plan are outlined in Sec.  109.5, 
and include: definition of the authorities, responsibilities, and 
duties of all persons, organizations, or agencies that are to be 
involved or could be involved in planning or directing oil removal 
operations; establishment of notification procedures for the purpose of 
early detection and timely notification of an oil discharge; provisions 
to ensure that full resource capability is known and can be committed 
during an oil discharge situation; provisions for well-defined and 
specific actions to be taken after discovery and notification of an oil 
discharge; and specific and well-defined procedures to facilitate 
recovery of damages and enforcement measures as provided for by state 
and local statutes and ordinances.
    An owner or operator of a facility with oil-filled operational 
equipment that has submitted a Facility Response Plan (FRP) to EPA in 
accordance with Sec.  112.20 would not need to also develop a 
contingency plan in accordance with 40 CFR part 109 for the oil-filled 
operational equipment because an FRP is more comprehensive than a 
contingency plan. Additionally, the contingency planning requirement 
can be met either by a whole new plan or by ensuring that the elements 
called for in 40 CFR part 109 and the accompanying written commitment 
of manpower, equipment and materials are integrated into the SPCC Plan 
or another plan already in place at the facility (provided that a 
section cross-referencing the location of requirements listed in 40 CFR 
part 109 and the equivalent requirements in the other response plan is 
included).
    For a contingency plan to satisfy the requirements listed in Sec.  
112.7(k) of today's final rule, a facility owner or operator must be 
able to implement the contingency plan. Activation of the contingency 
plan depends on the capability of the owner or operator of the facility 
to quickly detect a discharge. Therefore, as part of an evaluation of 
the adequacy of a contingency plan to satisfy the requirements of Sec.  
112.7(k), EPA will consider the time it takes facility personnel to 
detect and mitigate a discharge as described in Sec.  112.1(b).
    Inspections or monitoring are particularly important to detect an 
oil discharge when there is no secondary containment in place. 
Therefore, EPA proposed and is finalizing the provision to require 
owners and operators of facilities with qualified oil-filled 
operational equipment that choose to develop and implement contingency 
plans to also develop and implement an inspection or monitoring 
program, as further discussed in this section of the preamble. Because 
the qualified oil-filled operational equipment approach is optional, an 
owner or operator of a facility with such equipment may choose to 
provide general secondary containment in accordance with Sec.  112.7(c) 
for this oil-filled operational equipment, if desired. Ultimately, this 
is the decision of the owner or operator of the facility.
    The comments received suggest there is a misunderstanding 
concerning the general secondary containment requirements of Sec.  
112.7(c). General secondary containment under Sec.  112.7(c) should be 
designed to address the most likely discharge from the primary 
containment system, i.e., appropriate containment and/or diversionary 
structures or equipment must be designed to prevent a discharge as 
described in Sec.  112.1(b). Secondary containment may be either 
passive measures or active measures (countermeasures or land-based 
spill response capability) since both are designed to prevent a 
discharge from reaching navigable waters or adjoining shorelines.
    Passive measures are permanent installations (such as dikes or 
berms) and do not require deployment or action by the owner or 
operator. However, permanent (passive) containment structures, such as 
dikes, may not always be feasible for certain oil-filled operational 
equipment (i.e., electrical transformers, capacitors, switches). The 
owner or operator of an SPCC-regulated facility may instead use the 
flexibility of active containment measures to comply with the general 
secondary containment requirements for oil-filled operational 
equipment.
    Active containment measures are those that require deployment or 
other specific action by the owner or operator of a facility. These 
active measures may be deployed either before an activity involving the 
handling of oil starts, or in reaction to a discharge, so long as the

[[Page 77280]]

active measure is designed and can reasonably be implemented to prevent 
an oil spill from reaching navigable waters or adjoining shorelines. 
The efficacy of active secondary containment measures to prevent 
discharges depends on their technical effectiveness (i.e., mode of 
operation, absorption rate), placement and quantity, and timely 
deployment prior to, or following a discharge. A method of detecting a 
discharge is therefore of great importance to effectively implement the 
use of active containment measures. These active measures must be 
implemented effectively and in a timely manner to prevent oil from 
reaching navigable waters and adjoining shorelines, as required by 
Sec.  112.7(a)(3)(iii) and (c).
    Many commenters indicated that the 40 CFR part 109 plan is designed 
for local governments and therefore inappropriate for facilities. Some 
commenters suggested using environmental equivalence to tailor a 40 CFR 
part 109 plan or allow flexibility for facility owners and operators to 
comply only with applicable requirements. Other commenters suggested 
the use of generic and multi-facility plans. Some commenters suggested 
expanding the training requirements to apply to more than just the oil-
handling personnel at the facility. Commenters also indicated that it 
is onerous to list each piece of equipment in a Plan, and that it is 
burdensome to keep the Plan up-to-date to account for mobile equipment.
    Environmental equivalence is available to allow for alternative 
means of fulfilling the same function as the specific provision listed 
in Sec.  112.7(a)(2). Because the contingency plan elements in part 109 
do not contain specific requirements as to how those elements are 
fulfilled, there is no need to provide for environmentally equivalent 
means of fulfilling those requirements, Thus, the Agency believes that 
there is already sufficient flexibility in the criteria for an oil 
spill contingency plan in 40 CFR part 109. Moreover, since the purpose 
of the plan is to prepare for response to a discharge of oil that has 
reached navigable waters or adjoining shorelines, each of the elements 
of a contingency plan listed in 40 CFR part 109 are appropriate. 
Although the elements of a contingency plan listed in 40 CFR part 109 
were originally developed to outline procedures for local and regional 
oil removal contingency plans, these elements can be adapted for SPCC 
regulated facilities. A sample contingency plan adapted to the needs of 
an SPCC-regulated facility following the provisions of 40 CFR part 109 
is included in Appendix F of the SPCC Guidance for Regional Inspectors 
which is available on the EPA Web site at http://www.epa.gov/oilspill. 

The guidance document also provides more information on active and 
passive secondary containment measures.
    Other commenters suggested the use of generic and multi-facility 
SPCC Plans. In July 2002, the Agency stated that a multi-facility SPCC 
Plan may be appropriate for operating equipment (oil-filled operational 
equipment) (see 67 FR 47042, 47080.) This type of SPCC Plan is intended 
for electrical utility transmission systems, electrical cable systems, 
and similar facilities whose owners and operators might aggregate 
equipment located in diverse areas into one Plan. Multi-facility Plans 
would include all elements required for individual SPCC Plans. Site-
specific information would be required for all equipment included in 
each Plan. However, the site-specific information might be maintained 
in a separate location, such as a central office, or an electronic 
database, as long as such information was immediately accessible to 
responders and inspectors. If you keep the information in an electronic 
database, you must also keep a paper or other backup that is 
immediately accessible for emergency response purposes, or for EPA 
inspectors, in case the computer is not functioning. It is not clear 
what the commenters meant by a generic Plan, however, the Agency 
believes that any Plan developed must be in accordance with the 
requirements of 40 CFR part 112.
    Commenters recommended that training at a facility be expanded 
beyond the personnel involved in oil handling, with one commenter 
suggesting that training include any individuals who could reasonably 
be expected to implement any component of the contingency plan; they 
also suggested rule language for such an approach. The Agency agrees 
that any employee who is required to implement any component of an oil 
spill contingency plan may be considered ``oil-handling personnel'' and 
require training in accordance with Sec.  112.7(f). This would consist 
of training in the operation and maintenance of equipment to prevent 
discharges; discharge procedure protocols; applicable pollution control 
laws, rules and regulations; general facility operations; and the 
contents of the facility SPCC Plan (including the contingency plan). 
Contractors involved in oil handling activities at the facility should 
also have appropriate oil spill response training.
    Additionally, commenters indicated that it is onerous to list each 
piece of equipment in an SPCC Plan, and that it is burdensome to keep 
the Plan up-to-date to account for mobile equipment. The Agency agrees 
that it may be burdensome to frequently update an SPCC Plan for mobile 
equipment. However, we believe there is sufficient flexibility in the 
SPCC rule to address this concern. For example, EPA has stated that if 
you store mobile containers in a certain area, you must mark that area 
on the diagram. You may mark the contents of each container either on 
the diagram of the facility, or on a separate sheet or log if those 
contents change on a frequent basis. More information on the 
flexibility of the SPCC rule for mobile/portable containers is 
available in the SPCC Guidance for Regional Inspectors available on the 
EPA Web site at http://www.epa.gov/oilspill.

b. Inspections or Monitoring Program
    The majority of commenters supported the proposal to include an 
inspection and monitoring program. A facility owner or operator must be 
able to quickly detect a discharge from oil-filled operational 
equipment in order for a contingency plan to be effective. Therefore, 
the Agency is including a requirement for an inspection and monitoring 
program in today's rule. Facility owners or operators who wish to take 
advantage of this alternative are required to develop an appropriate 
set of procedures for inspections or a monitoring program for qualified 
oil-filled operational equipment. For facility owners and operators 
that rely on contingency planning in lieu of secondary containment for 
qualified oil-filled operational equipment, the discovery of a 
discharge by inspection or monitoring is of paramount importance for 
effective and timely implementation of the contingency plan. An 
inspection or a monitoring program ensures that facility personnel are 
alerted quickly of equipment failures and/or discharges. A written 
description of the inspection or monitoring program is required to be 
included in the SPCC Plan. Under the requirement in Sec.  112.7(e), the 
owner or operator is required to keep a record of inspections and 
tests, signed by the appropriate supervisor or inspector, for a period 
of three years.
    Although oil-filled operational equipment is not a bulk storage 
container and is therefore not subject to the frequent visual 
inspection requirement for bulk storage containers under Sec.  
112.8(c)(6), EPA believes that it is good engineering practice to have

[[Page 77281]]

some form of visual inspection or monitoring for oil-filled operational 
equipment in order to prevent discharges as described in Sec.  
112.1(b). Therefore, in lieu of secondary containment, the proposal 
included the requirement for a facility owner or operator to establish 
and document an inspection or monitoring program, in addition to the 
preparation of a contingency plan and a written commitment of manpower, 
equipment, and materials to expeditiously control and remove discharged 
oil. One commenter suggested requiring only inspection and monitoring 
for oil-filled operational equipment up to 5,000-gallon capacity and no 
other written Plan. The Agency continues to believe that a written SPCC 
Plan is essential to document the prevention procedures and 
countermeasures employed at the facility and is necessary for effective 
implementation of an SPCC program, or any other program (business or 
otherwise). As a matter of practice, it would be extremely difficult 
for a facility owner or operator to be able to follow the regulatory 
requirements and to comply with all the recordkeeping components 
without the documentation that is the Plan itself. The Plan also serves 
as an important communication tool for both management and operators at 
the facility. The sole action of having to document all of the 
requirements can assist in uncovering flaws in the program 
implementation, and may serve as a tool to correct them. The Plan is 
also used to communicate these procedures and measures to employees. 
Additionally, the documentation of compliance with the rule's 
requirements in a written Plan serves as a facility specific oil spill 
response and prevention planning exercise which is designed to improve 
oil spill prevention.
c. Alternative Options Considered
    Many commenters believed, and supported the Agency's proposal to 
not include, a capacity threshold qualifier. There was also significant 
support for the USWAG multi-tiered option for electrical equipment, 
with some commenters suggesting that the Agency differentiate between 
electrical and other oil-filled operational equipment and then adopt 
the USWAG proposal providing an exemption for most small equipment. 
Other commenters specifically commended EPA for not including a volume 
threshold for applicability of relief based on lack of data to suggest 
that large oil-filled equipment have greater potential for discharge 
over small oil-filled equipment. However, these commenters indicated 
that small equipment should be exempt because of lack of spill data. 
Multiple commenters requested exemption or deferral requirements in the 
same manner as proposed for farms. Others requested suspension of the 
requirements.
    The Agency agrees with commenters that no threshold qualifier is 
necessary to allow for an alternative means of compliance with 
secondary containment requirements for oil-filled operational 
equipment. The alternative measure is appropriate based on the type of 
equipment, i.e., the oil is intrinsic to the operational equipment and 
present solely to support the apparatus and there is minimal oil 
throughput because such equipment does not require frequent transfers 
of oil. The Agency did not finalize the multi-tiered approach for 
electrical equipment to allow for an exemption for smaller pieces of 
oil-filled operational equipment because we believe there is still a 
reasonable potential for discharges from oil-filled operational 
equipment with an oil storage capacity of 1,320 gallons or less, thus 
coverage by some type of SPCC Plan is warranted. An exemption of these 
smaller pieces of oil-filled operational equipment could in some cases 
allow for large amounts of aggregate capacity that would not be counted 
for SPCC or FRP purposes, and would therefore be unregulated, posing a 
threat to the environment. However, in the July 17, 2002 Federal 
Register notice, EPA stated ``We believe that it is not necessary to 
apply SPCC or FRP rules requiring measures like secondary containment, 
inspections, or integrity testing, to containers smaller than 55 
gallons storing oil because a discharge from these containers generally 
poses a smaller risk to the environment.'' (67 FR 47066). Oil-filled 
operational equipment with a capacity of less than 55 gallons is not 
subject to the rule.
    Oil-filled electrical and operating equipment share common 
characteristics. They both typically have minimal oil throughput 
because such equipment does not require frequent transfers of oil. 
Further, the oil contained in oil-filled operational equipment, such as 
cooling or lubricating oil, is intrinsic to the operation of the device 
and facilitates the function of the equipment. Should oil-filled 
electrical equipment fail, utilities responsible for such equipment 
have strong economic incentives to prevent power outages, to discover 
and respond to an outage, and to correct the conditions that produced 
the outage as quickly as possible to prevent an oil discharge. 
Similarly, when other critical oil-filled operating equipment fails, 
the industry sectors responsible for such equipment also have strong 
incentives to respond and address failures to avoid disruption in 
business and costs of a cleanup. In addition, oil-filled operational 
equipment often is subject to routine maintenance and inspections to 
ensure proper operation. Therefore, the Agency is not promulgating 
different requirements, but believes it is appropriate to offer the 
same alternative means of compliance with the general secondary 
containment requirements of Sec.  112.7(c) to both oil-filled 
electrical and operational equipment. Both types of equipment are 
addressed in the definition of oil-filled operational equipment.
    The Agency has decided not to provide an indefinite extension or 
suspension for owners and operators of facilities with oil-filled 
operational equipment. The regulated community, particularly owners and 
operators of electrical facilities, identified secondary containment 
for oil-filled operational equipment as one of its major cost concerns. 
Today's rule addresses that concern and offers an alternative means of 
compliance for oil-filled operational equipment, while maintaining 
protection of human health and the environment.
5. Qualified Oil-Filled Operational Equipment and Qualified Facilities 
Overlap
    Some facilities will meet the criteria for qualified facilities and 
have qualified oil-filled operational equipment on-site. Owners and 
operators of such facilities are able to benefit from both of the 
alternative compliance approaches finalized in today's rule. The owner 
or operator can choose to develop an oil spill contingency plan, a 
written commitment of manpower, equipment and materials and an 
inspection or monitoring program as an alternative to secondary 
containment for qualified oil-filled operational equipment. Since no 
impracticability determination is necessary for qualified oil-filled 
operational equipment, the owner or operator can self-certify his/her 
SPCC Plan and is not required to have a PE develop and certify the 
contingency plan for the qualified oil-filled operational equipment. 
The responsibility of preparing a contingency plan and identifying the 
necessary equipment, materials and manpower to implement the 
contingency plan would fall on the owner or operator of the qualified 
facility.

[[Page 77282]]

C. Motive Power

    In the proposed rule, EPA addressed specific types of motor 
vehicles (including aircraft, buses, sport utility vehicles, small 
construction vehicles, cherry pickers, self-propelled cranes, self-
propelled aviation ground service equipment vehicles, self-propelled 
forestry, agricultural, construction, and excavation vehicles and 
locomotives) that contain oil in capacities greater than or equal to 55 
gallons solely for the purpose of providing fuel for propulsion, or 
solely to facilitate the operation of the vehicle, such as lubrication 
of moving parts or operation of onboard hydraulic equipment. Such oil 
storage containers are technically subject to the SPCC rule, including 
the requirement for secondary containment and other SPCC requirements. 
This means that heavy equipment dealers, commercial truck dealers, or 
certain parking lots may be subject to the SPCC requirements (including 
bulk storage secondary containment, inspection, and overfill 
protection) solely because of the presence of motive power containers. 
EPA never intended to regulate these motive power containers or 
facilities where these vehicles might be located and who are not 
otherwise subject to the SPCC requirements because of the 
impracticability of application of the SPCC requirements to such 
vehicles. These individually provide their own means of propulsion from 
location to location within or between facilities. The management, 
record keeping, and compliance with the spill prevention requirements 
associated with motive power containers would be difficult due to their 
movement throughout and between facilities. For example, a truck with a 
large fuel tank and associated large capacity hydraulic units that 
moves throughout a facility and between facilities would require 
tracking and containment under the SPCC requirements. This is 
impracticable because such vehicles are not stationary or located in a 
specific operational area, as is the case with mobile non-vehicular 
mobile/portable containers that are placed in specific oil handling or 
operational areas. Motor vehicles with a storage tank capacity of 55 
gallons or greater, such as a number of semi-rigs delivering materials 
to an otherwise regulated SPCC facility that enter and leave a facility 
on a routine basis would provide a significant challenge for compliance 
with the SPCC requirements. Finally, these containers are either ``end 
use'' fuel tanks or oil-filled operational equipment in which transfers 
from the container are rare unlike other mobile portable containers. To 
correct this unintended application of the SPCC rule, EPA proposed to 
exempt motive power containers from the SPCC requirements. Commenters 
generally favored this proposal and agreed that subjecting motive power 
containers to SPCC requirements would be impracticable. In today's 
action, EPA is clarifying its position on motive power containers 
associated with self-propelled motor vehicles by finalizing the 
proposed definition and exemption.
    The Agency believes that the general protection and the spill 
response and planning activities in place at an otherwise regulated 
SPCC facility will address any discharges associated with these motive 
power containers.
    For those facilities whose capacity is comprised solely of motive 
power containers, today's action may result in the facility no longer 
being subject to the SPCC requirements. However, for owners and 
operators of these facilities, EPA maintains the authority, under 
311(j)(1)(C) of the CWA, to impose requirements to prevent oil 
discharges from motive power containers. EPA believes that owners and 
operators of these facilities will continue to act prudently to prevent 
discharges from motive power containers from reaching navigable waters 
and owners and operators of non-transportation-related facilities that 
fail to do so can be required by the EPA Regional Administrator (RA) to 
develop an SPCC Plan. The RA has the option under Sec.  112.1(f) to 
require owners and operators of facilities, including those with motive 
power containers, to prepare and implement an SPCC Plan or any 
applicable part, if a determination is made that it is necessary to 
prevent a discharge of oil into waters of the United States. EPA will 
continue to encourage owners and operators of facilities that are no 
longer regulated under the SPCC rule, as a result of today's action, to 
provide prevention, planning and response measures to prevent oil 
discharges from motive power containers.
1. Definition of Motive Power
    One commenter generally supported the definition as proposed. 
Several other commenters opposed the proposed definition and additional 
comments were submitted with alternate definitions of motive power 
containers. Those who opposed the definition indicated that it will not 
effectuate its purpose, simply because the gas tank, for example, is 
not used solely to power the movement of a motor vehicle. Other reasons 
for opposition note that the definition may not be broad enough, and it 
should be modified to clarify the scope of ``motor vehicle.'' The 
definition may not cover all motive power configurations, and it may 
not cover ground service equipment, including ground service equipment 
in the airport industry sector.
    Recommendations included expanding the definition to include other 
mobile equipment like forestry and mining equipment. Other commenters 
indicated that the scope of the definition should be modified to 
clarify that a motor vehicle includes not just automobiles and trucks, 
but all types of motor vehicles including cranes, cherry pickers, or 
production drill rigs at mining sites and equipment that may be 
stationary for a temporary duration. Commenters also suggested that the 
definition be revised to cover various motive power configurations.
    EPA agrees with the commenters that the scope of the definition 
should be clarified to include motor vehicle bulk storage containers 
that serve a non-operational purpose in addition to the propulsion of 
the motor vehicle (for example, a bulk storage container that supplies 
fuel to an engine which provides the propulsion for that motor vehicle, 
as well as its auxiliary units and functions (i.e., heaters, air 
conditioning units, and electrical power generation, etc.). As noted by 
commenters, the term ``solely'' in the definition of motive power 
containers limits the inclusion of motor power fuel tanks that serve 
one of the non-operational functions listed above in addition to 
providing fuel for propulsion of the motor vehicle. In response to this 
comment, EPA has removed the word ``solely'' and replaced it with the 
word ``primarily.'' The definition of motive power containers only 
applies to motor vehicles where the primary purpose of the bulk storage 
container is to supply fuel to power the movement of the vehicle and, 
secondly, power other equipment on board the vehicle, so long as no 
further distribution (transfers) of oil occurs from the container as in 
the case with some mobile refuelers.
    EPA agrees with the commenters that additional clarification is 
needed to describe the type of motor vehicles covered under the 
definition of motive power containers. Only motor vehicles which 
provide their own means of propulsion fall within the scope of this 
definition for the purposes of 40 CFR part 112. For example, aircraft, 
cherry pickers, self-propelled cranes, self-propelled aviation ground 
service equipment vehicles, self-propelled heavy (forestry, 
agricultural, mining, excavation and construction) vehicles and 
locomotives, all of which

[[Page 77283]]

individually provide their own means of propulsion from location to 
location within a facility or between facilities, are considered motor 
vehicles for the purposes of this definition and 40 CFR part 112. 
However, towed aviation ground service equipment, non-self-propelled 
construction/cargo cranes, non-self-propelled (forestry, agricultural, 
mining, excavation or construction) equipment, diesel powered 
generators, fire pumps, and compressors are examples of oil-filled 
equipment and bulk storage containers not considered motor vehicles for 
the purposes of this definition because they do not provide their own 
means of propulsion. The exemption was based on the impracticability of 
application of SPCC requirements to motor vehicles and their unique 
self-propelled capability of movement within and between facilities, 
typically without restriction.
2. Exemption
    This final rule amendment exempts motive power containers, as 
defined above, from SPCC rule applicability by adding a new paragraph 
(7) under the general applicability section, Sec.  112.1(d). 
Furthermore, the capacity of these storage containers are not counted 
toward facility oil storage capacity under Sec.  112.1(d)(2). The RA 
has the option under Sec.  112.1(f), however, to require owners and 
operators of facilities, including those with motive power containers, 
to prepare and implement an SPCC Plan or any applicable part, if a 
determination is made that it is necessary in order to prevent a 
discharge of oil into waters of the United States, or adjoining 
shorelines.
    EPA notes that although this amendment provides an exemption from 
the SPCC requirements for the fuel tanks and ancillary onboard oil-
filled operational equipment of motor vehicles, the oil transfer 
activities occurring within an SPCC-covered facility continue to be 
regulated. An example of such an activity would be the transfer of oil 
from an on-site tank via a dispenser to a motive power container. This 
transfer activity is subject to the general secondary containment 
requirements of Sec.  112.7(c).
    An onboard bulk storage container that supplies oil for the 
movement of a vehicle or operation of onboard equipment, and at the 
same time, is used for the distribution or storage of this oil, is not 
eligible for this exemption. For example, a mobile refueler that has an 
onboard bulk storage container used to distribute fuel to other 
vehicles on a site may also draw its engine fuel (for propulsion) from 
that bulk container. However, such bulk storage containers (on a mobile 
refueler, as defined in today's rule under 112.2) are exempt from the 
sized secondary containment requirements in Sec. Sec.  112.8(c)(2) and 
(11) and 112.12(c)(2) and (11), as applicable (see Section D below).
    EPA is also not extending the exemption for motive power containers 
to oil drilling and workover equipment, including rigs. The Agency 
believes that because of the unique nature of oil drilling and workover 
rig operations and the large amounts and high flow rates of oil 
associated with these activities, it would not be appropriate or 
environmentally sound to exempt them from the SPCC requirements, and 
thus they remain subject to 40 CFR part 112. Although drilling and 
workover rigs are not exempt, other types of motive power containers 
located at drilling or workover facilities (i.e., trucks, automobiles, 
bulldozers, seismic exploration vehicles, or other earth-moving 
equipment) are exempted. The Agency believes that the general 
protection and the spill response and planning activities provided at 
an otherwise regulated SPCC facility will help the facility owner or 
operator to address any spills associated with these motive power 
containers. However, the specific provisions (such as blowout 
prevention), which are present in the rule for drilling or workover 
rigs, need to be preserved to maintain an adequate level of 
environmental protection for these unique activities. Therefore, an 
exemption for drilling and workover equipment, including rigs, is 
inappropriate.
    Some commenters, representing the aviation, forestry, mining, 
recycling, and construction industries, requested that stationary 
cranes, gensets, and other non-self-propelled operational and towed 
ground service equipment be included in the exemption. The Agency 
believes that where these kinds of non-self-propelled, stationary or 
towed equipment operate in pre-determined oil handling areas, an SPCC 
Plan can reasonably address oil spill prevention measures under Sec.  
112.8(c)(2) and (11). For example, the Agency understands that towed 
ground service equipment at an airport is typically located at terminal 
gates for use when aircraft are parked at the gates. This equipment 
typically is staged and operated in an area that includes other oil 
storage containers such as airport mobile refuelers (see Section D 
below). As such, the identified oil spill prevention approach that 
addresses potential spills from an airport mobile refueler at the gate 
should also address potential spills from nearby ground service 
equipment used by airline personnel at the same gate. Thus, the 
exemption does not include non-self-propelled stationary or towed 
equipment, such as towed ground service equipment or any type of 
gensets, but only motor vehicles that can provide propulsion to another 
location. See Chapter 4 of the SPCC Guidance for Regional Inspectors 
for further explanation regarding when sized secondary containment is 
required for mobile or portable containers that are in a stationary, 
unattended mode.

D. Mobile Refuelers

    EPA proposed to amend the SPCC rule to define an airport mobile 
refueler as a vehicle with an onboard bulk storage container designed 
or used solely to store and transport fuel for transfer into or from 
aircraft and ground service equipment (such as belt loaders, tractors, 
luggage transport vehicles, deicing equipment, and lifts) at airports. 
Airport mobile refuelers have onboard bulk storage containers that are 
used solely to transport and transfer fuel and are subject to the SPCC 
rule because they are containers used to store oil prior to further 
distribution and use. As such, they are subject to all applicable SPCC 
rule provisions, including the sized secondary containment provisions 
of Sec. Sec.  112.8(c)(2) (applicable to all bulk storage containers) 
and 112.8(c)(11) (applicable more specifically to mobile/portable bulk 
storage containers). These provisions require a secondary means of 
containment, such as a dike or catchment basin, sufficient to contain 
the capacity of the largest single compartment or container with 
sufficient freeboard to contain precipitation.
    As described in the preamble to EPA's proposed rule, members of the 
aviation sector have expressed concern that requiring sized secondary 
containment for airport mobile refuelers is not practicable for safety 
and security reasons. They argued that requiring refuelers to park in 
specifically sized secondary containment areas located within an 
Airport Operations Area (AOA) could create a safety and security hazard 
because it entails grouping the vehicles or placing impediments in the 
AOA. In response to these concerns, EPA proposed to exempt airport 
mobile refuelers from the specifically sized secondary containment 
requirements for bulk storage containers in Sec.  112.8(c)(2) and (11), 
while preserving environmental protection (especially for fuel 
transfers associated with airport mobile refuelers), afforded by the 
spill

[[Page 77284]]

prevention provisions outlined in Sec.  112.7(c).
    Members of the aviation sector were generally supportive of the 
proposal. Commenters generally supported the proposed exemption of 
airport mobile refuelers from certain provisions of the SPCC 
regulations and noted that general secondary containment is already 
practiced at airports. Commenters stated that requiring secondary 
containment around airport mobile refuelers, while they are stationary 
or idle creates serious safety and security risks. One commenter did 
have reservations about certain provisions of the rule still governing 
airport mobile refuelers, specifically the provisions of Sec.  112.8(c) 
and the general secondary containment requirements of Sec.  112.7(c). A 
Professional Engineering firm opposed the exemption of airport mobile 
refuelers from certain provisions of the SPCC regulation. The commenter 
asserted that the argument regarding the accident potential for not 
excluding airport fuel transporters is highly questionable, since 
airport fuel spills are well documented.
    The Agency agrees with the commenter that fuel spills at airports 
are well documented, and that potential spills from airport mobile 
refuelers need to be addressed in the facility's SPCC Plan. 
Nevertheless, the Agency agrees with those commenters that argued that 
the sized secondary containment requirement did present safety and 
security concerns and therefore, we are finalizing the proposal to 
exclude mobile refuelers as defined in today's rule in Sec.  112.2 from 
the specifically sized secondary containment requirements for bulk 
storage containers in Sec. Sec.  112.8(c)(2) and (11) and 112.12(c)(2) 
and (11). General secondary containment still applies for mobile 
refuelers at non-transportation-related facilities, unless permanently 
closed as defined in Sec.  112.2.
    Although the Agency did not propose to extend this exclusion to 
other mobile refuelers that may operate within the confines of a non-
transportation facility, we requested comment as to whether the 
proposed exclusion should be more broadly applied to other types of 
mobile refuelers. Commenters responded that the proposed exclusion for 
airport mobile refuelers from the sized secondary containment 
requirements should be extended to mobile refuelers at industrial 
sites, construction sites, chemical complexes (i.e., refineries), 
mining sites, seaport terminals, and tank truck home bases. Several 
commenters indicated that the same rationale discussed in the proposed 
rule preamble supporting this exclusion applies to owners and operators 
of industrial facilities as well. Specifically, one commenter stated 
that: (1) Requiring sized secondary containment for industrial mobile 
refuelers is not practicable and distracts from safety and security 
monitoring by providing a blind spot and hiding location behind the 
containment unit; (2) requiring refuelers to park in specially 
designated secondary containment areas located within an industrial or 
chemical facility operating area will create safety and security 
hazards by grouping the vehicles or placing impediments in the 
operations area; and (3) requiring mobile refuelers to return to 
containment areas located within the industrial facilities tank farm 
between refueling operations will increase the risk of accidents (and 
therefore accidental oil discharge), as the vehicles would travel with 
increased frequency through the busy industrial operating areas. 
Another commenter also indicated that the clarification should extend 
to rail cars, since rail cars are less mobile then airport mobile 
refuelers and additional rail car movements in congested rail yards 
exposes these vehicles to many of the hazards identified for airport 
mobile refuelers.
    The Agency agrees with commenters that the exclusion provided for 
airport mobile refuelers should be extended to mobile refuelers at 
other types of facilities. The Agency agrees that providing sized 
secondary containment for vehicles that move frequently within a non-
transportation-related facility to perform refueling operations can 
raise safety and security concerns, so the exclusion from complying 
with the sized secondary containment requirements provided for airport 
mobile refuelers is being extended to mobile refuelers that are 
vehicles with an onboard bulk storage container used to store and 
transport oil for transfer into or from other vehicles, ground service 
equipment or another oil storage container.
    Furthermore, the Agency continues to believe that other mobile/
portable bulk storage tanks that are being towed by vehicles or 
otherwise moved to or from a designated area typically cannot be 
provided with sized secondary containment as per Sec. Sec.  112.8(c)(2) 
and (11) and 112.12(c)(2) and (11), as applicable, during that movement 
or relocation. However, when these mobile/portable bulk storage 
containers (except mobile refuelers) are placed in a designated area of 
a site (e.g., a construction site) whereby a dike or catchment basin 
sufficient to contain the capacity of the largest single compartment or 
container with sufficient freeboard to contain precipitation can be 
installed, sized secondary containment requirements would apply. In the 
same vein, the Agency believes that rail cars cannot be provided with 
sized secondary containment when entering, moving within, or exiting 
the confines of a facility. Conversely, when they are situated in 
defined locations at an otherwise regulated facility, sized secondary 
containment, such as a catchment basin, could be provided. See Chapter 
4 of the SPCC Guidance for Regional Inspectors for further explanation 
regarding when sized secondary containment is required for mobile or 
portable containers that are in a stationary, unattended mode.
1. Definition of Mobile Refueler
    EPA is amending the SPCC rule to exempt mobile refuelers from the 
requirements of Sec. Sec.  112.8(c)(2) and (11) and 112.12(c)(2) and 
(11). In today's final rule, EPA defines a mobile refueler as ``a bulk 
storage container, onboard a vehicle or towed, that is designed or used 
solely to store and transport fuel for transfer into or from an 
aircraft, motor vehicle, locomotive, vessel, ground service equipment, 
or other oil storage container.'' The definition is intended to 
describe vehicles of various sizes equipped with a bulk storage 
container such as a cargo tank or tank truck that is used to fuel or 
defuel aircraft, motor vehicles, locomotives, tanks, vessels or other 
oil storage containers. The definition is also intended to describe 
tank full trailers and tank semi-trailers including those at airports 
that are used to fuel or defuel aircraft. The definition does not 
include other mobile or portable oil storage containers that are not 
involved in fueling activities. When these other mobile or portable 
containers are in a stationary, unattended mode and not under the 
direct oversight or control of facility personnel, the requirements of 
Sec. Sec.  112.8(c)(2) and (11) and 112.12(c)(2) and (11) apply. (See 
Chapter 4 of the SPCC Guidance for Regional Inspectors.) In addition, 
the Agency intends the secondary containment exemption to apply to 
vehicles used for refueling, and not vehicles used primarily for the 
bulk storage of oil in a stationary location, in place of stationary 
oil storage containers.
    A commenter from the aviation sector supported EPA's proposed 
definition and encouraged the inclusion of fuel transfers into or from 
ground service equipment. Two commenters from the chemical 
manufacturing sector stated that the definition that was proposed is 
too broad and unlawfully extends EPA's

[[Page 77285]]

jurisdiction. The MOU between DOT and EPA establishes non-
transportation facilities to include ``highway vehicles and railroad 
cars which are used for the transport of oil exclusively within the 
confines of a non-transportation-related facility and which are not 
intended to transport oil in interstate or intrastate commerce.'' EPA 
understands that mobile refuelers that operate solely within the 
confines of an airport, or other type of facility that is subject to 
SPCC regulations would be covered by the definition of mobile refuelers 
at Sec.  112.2. Thus, a mobile refueler that operates solely on airport 
property, or some other type of facility would be subject to Sec.  
112.7(c) during all periods of operation. Conversely, for a mobile 
refueler that operates on highways (i.e., intended to transport oil in 
interstate or intrastate commerce) in addition to an airport, or other 
type of facility, then only the period of actual transfer operations at 
a non-transportation facility would be subject to the general secondary 
containment requirements of Sec.  112.7(c), unless the transfer occurs 
at a loading/unloading rack, whereby the rack and vehicle are subject 
to the requirements at Sec.  112.7(h).
    Similarly, another commenter suggested applying the existing 
requirements for portable fueling facility requirements of Sec.  
112.3(c) to mobile refuelers when in a fixed, non-transportation mode. 
Specific requirements for mobile facilities should be developed as a 
separate subpart through rulemaking. The Agency disagrees that a 
separate rulemaking be initiated for mobile refuelers. We believe that 
the modification being promulgated today provides the owner or operator 
with considerable flexibility to identify the appropriate spill 
prevention measures under Sec.  112.7(c) applicable to the mobile 
refueler operation operating solely at a non-transportation facility. 
Furthermore, we disagree that Sec.  112.3(c) needs to be modified to 
apply to this type of mobile refueler that enters a non-transportation 
facility as this provision already addresses a portable fueling 
facility operating in a fixed, non-transportation-related mode. For 
either type of mobile refueler, Sec.  112.7(c) applies.
2. Amended Requirements
    This amendment revises Sec. Sec.  112.8(c)(2) and (11) and 
112.12(c)(2) and (11) to specifically exempt mobile refuelers, as 
defined above, from these provisions. As noted above, the Agency is 
expanding the proposed exemption from the sized secondary containment 
requirements to apply to any person that operates a mobile refueler. 
Since mobile refuelers are mobile or portable bulk storage containers, 
the other provisions of Sec. Sec.  112.8(c) and 112.12(c) still apply. 
Secondary containment systems sufficient to contain the capacity of the 
largest single compartment or container with sufficient freeboard to 
contain precipitation are no longer required. A commenter representing 
small business expressed concerns about the security, safety and 
logistical concerns for the proposed amendment for airport mobile 
refuelers. The commenter recommended that EPA further revise the SPCC 
requirements so that general secondary containment applies only when 
airport mobile refuelers are transferring fuel. The Agency disagrees 
that the amendment should be limited to transfer operations only, as 
another commenter asserts that mobile refuelers can experience leaks 
and spills (e.g., vehicular accidents, line leaks, or other equipment/
container failure). Thus, we believe that the general secondary 
containment provisions at Sec.  112.7(c) should apply to all mobile 
refueler operations.
    Per Sec.  112.7(c), appropriate containment and/or diversionary 
structures or equipment must be designed to prevent a discharge as 
described in Sec.  112.1(b). The Agency believes general secondary 
containment should be designed to address the most likely discharge 
from the primary containment system (i.e., the storage container). 
Section 112.7(c) allows for the use of certain types of active 
containment measures (countermeasures or spill response capability) 
which prevent a discharge to navigable waters or adjoining shorelines. 
One aviation commenter indicated that the availability of ``active 
measures'' is necessary to make the general secondary containment 
provision workable in an airport setting. To clarify, EPA believes that 
active containment measures are those that require deployment or other 
specific action by the owner or operator. These measures may be 
deployed either before an activity involving the handling of oil 
starts, or in reaction to a discharge, so long as the active measure is 
designed and can reasonably be implemented to prevent an oil spill from 
reaching navigable waters or adjoining shorelines. Passive measures are 
permanent installations and do not require deployment or action by the 
owner or operator. The efficacy of active containment measures to 
prevent a discharge depends on their technical effectiveness (i.e., 
mode of operation, absorption rate), placement and quantity, and timely 
deployment prior to, or following a discharge. For discharges that 
occur only during manned activities, such as those occurring during 
transfers, an active measure (i.e., sock, mat, other portable barrier, 
or land-based response capability) may be appropriate, provided that 
the measure is capable of containing the oil discharge volume and rate, 
and is timely and properly constructed/deployed. The Agency also 
believes that these active measures may be appropriately applied to 
other situations (i.e., when the refueler is not engaged in transfer 
operations or moving around the facility).
    In summary, EPA believes that the general provisions for secondary 
containment address the most likely spill scenarios associated with 
this equipment (i.e., during oil transfers into or from the mobile 
refuelers). Section 112.7(c) does not prescribe a size for a secondary 
containment structure, but does require appropriate containment and/or 
diversionary structures or equipment to prevent a discharge as 
described in Sec.  112.1(b) including the use of active measures. This 
final rule would maintain environmental protection, while still 
allowing the necessary flexibility for compliance with the general 
secondary containment requirements of the rule for mobile refuelers at 
airports or other types of facilities.

E. Animal Fats and Vegetable Oils

    The Agency proposed to amend Subpart C of part 112 by removing 
Sec.  112.13 (requirements for onshore oil production facilities), 
Sec.  112.14 (requirements for onshore oil drilling and workover 
facilities), and Sec.  112.15 (requirements for offshore oil drilling, 
production, or workover facilities) and by reserving these sections of 
Subpart C of the regulation because they are not appropriate for animal 
fats and vegetable oils. Commenters generally supported this proposal 
and therefore, the Agency has amended the final rule to remove these 
provisions. In addition, the Agency also requested comment on whether 
different requirements were appropriate for animal fats and vegetable 
oils from the requirements for petroleum and other oils. Some 
commenters provided suggestions for differentiating animal fats and 
vegetable oils from other classes of oils in the SPCC rule. The Agency 
is continuing to examine these issues to determine the appropriateness 
of amendments to the regulatory scheme to differentiate the SPCC 
requirements for animal fats and vegetable oils from the requirements 
for petroleum and other oils and plans to

[[Page 77286]]

address this issue in a future rulemaking.
    As a point of clarification, EPA also removed the phrase ``for 
onshore facilities (excluding production facilities)'' from the title 
of Sec.  112.12 Spill Prevention, Control, and Countermeasure Plan 
requirements. Section 112.2 of the rule defines production facility to 
mean ``all structures (including, but not limited to, wells, platforms, 
or storage facilities), piping (including, but not limited to flowlines 
or gathering lines), or equipment (including, but not limited to 
workover equipment, separation equipment, or auxiliary non-
transportation-related equipment) used in the production, extraction, 
recovery, lifting, stabilization, separation or treating of oil, or 
associated storage or measurement, and located in a single geographical 
oil or gas field operated by a single operator.'' The exclusion of 
production facilities from Sec.  112.12 was originally intended to 
differentiate requirements based on facility type and Sec.  112.13 
applied to onshore production facilities. Since this final rule removes 
the inapplicable requirements for animal fats and vegetable oils, it is 
no longer necessary to differentiate onshore oil production facilities 
from other facilities in Sec.  112.12.
    As an editorial change, EPA revised the provisions in Sec.  
112.7(a)(2) and 112.7(d) to eliminate reference to the inapplicable 
provisions in Sec. Sec.  112.13 and 112.14, because these sections have 
been removed.

F. Extension of Compliance Dates for Farm

    While determining if the agriculture sector warrants specific 
consideration under the SPCC rule, EPA proposed to extend the 
compliance dates for preparing or amending and implementing SPCC Plans 
for farms that have a total storage capacity of 10,000 gallons of oil 
or less either indefinitely or until the Agency publishes a final rule 
in the Federal Register establishing a new compliance date. This final 
rule provides an extension for all farms as defined in this notice 
until the Agency promulgates a rule specifically addressing how farms 
should be regulated under the SPCC rules.
1. Eligibility Criteria
    Most commenters, primarily from the agricultural sector, generally 
supported EPA's proposed extension of compliance for farms with a 
storage capacity of 10,000 gallons of oil or less. Several commenters 
who supported the extension suggested modifications to the extension as 
proposed, such as expanding the extension to all farms. Supporters 
argued the proposal reduces unnecessary regulatory burden on the 
agricultural community, while the Agency determines if this sector 
warrants specific consideration under the SPCC rule. Others argued that 
the sector is already regulated by state and local agencies for 
pollution-related activities on farms. Support for the argument that 
the physical layout of a farm makes this sector unique within the 
universe of SPCC-regulated facilities was also offered. Comments also 
were offered in opposition to the extension and potential exemptions 
from SPCC requirements for farms. Commenters argued that farms may 
endanger the environment, farmers, and their neighbors and expressed 
concern that farms are often close to surface waters. Commenters 
opposing the extension also argued that farms should have been in 
compliance with the original SPCC rule and that current technology 
makes compliance relatively inexpensive and easy.
    In finalizing the compliance extension for farms, EPA is adopting 
the definition of ``farm,'' as proposed, for purposes of part 112 and 
the extension in the final rule. EPA defines ``farm,'' in part, by 
adapting the definition used by the National Agricultural Statistics 
Service (NASS) in its Census of Agriculture. NASS defines a farm as any 
place from which $1,000 or more of agricultural products were produced 
and sold, or normally would have been sold, during the census year. 
Operations receiving $1,000 or more in Federal government payments are 
counted as farms, even if they have no sales and otherwise lack the 
potential to have $1,000 or more in sales.
    EPA also considered the definition it uses to exempt farm tanks 
under the Underground Storage Tank (UST) regulations at 40 CFR part 
280. As defined in 40 CFR 280.12, a farm tank is a tank located on a 
tract of land devoted to the production of crops or raising of animals, 
including fish. The preamble to the UST rule explains that the term 
``farm'' includes fish hatcheries, rangeland, and nurseries with 
growing operations, but does not include laboratories where animals are 
raised, land used to grow timber, and pesticide aviation operations. 
This term also does not include retail stores or garden centers where 
the product of nursery farms is marketed, but not produced, nor does 
the Agency interpret the term ``farm'' to include golf courses or other 
places dedicated primarily to recreational, aesthetic, or other non-
agricultural activities. (See 53 FR 37082, 37117, September 23, 1988.) 
EPA utilized elements of the UST definition of farm, in combination 
with the Census definition, in developing the proposal and final rule. 
By combining elements of both of these approaches, the Agency believes 
the definition more specifically targets the intended universe for the 
extension.
    Several commenters provided general remarks on definitions of 
facility, farm, farming facility, farming operation, and/or 
agribusiness for purposes of the SPCC rule; some proposed alternate 
definitions of farm. One suggested alternative was to use the 
definition of eligible agricultural businesses used in the 
``Agricultural Business Security Tax Credit Act of 2005'' (S. 052). 
Most broadly, the term ``eligible agricultural business'' means any 
person in the trade or business of: selling agricultural products, 
including specified agricultural chemicals, at retail predominantly to 
farmers and ranchers, or manufacturing, formulating, distributing, or 
aerially applying specified agricultural chemicals. The Agency 
disagrees with expanding the definition as suggested because we believe 
it would apply to businesses that are distinctly different from farms, 
e.g., oil marketing and distribution to farmers, that do not present 
the same unique issues that farms raise. In fact, these agribusinesses 
are more like industrial or manufacturing operations and thus, it would 
be inappropriate to include these businesses within the compliance 
extension. Several commenters suggested that the farm definition 
specify that operations comprised of non-contiguous or non-adjacent 
agricultural lands would not be considered a single ``farm facility'' 
for purposes of fuel tank storage capacity regardless of whether such 
parcels of land are under common ownership or control. They also 
suggested that the Agency allow for aggregate tank storage capacity to 
be determined separately for each field or parcel of such agricultural 
lands. The definition of facility as provided in Sec.  112.2 currently 
provides the flexibility for the owner or operator of a farm to 
determine the scope of his or her facility as recommended by the 
commenters. However, the Agency will further explore these questions in 
a future rulemaking addressing farms.
    The Agency is also expanding the extension to owners and operators 
of all facilities that meet the definition of farm finalized in today's 
rule, which was supported by many of the commenters. This action allows 
the Agency to study the universe and determine whether the current 
requirements are appropriate for farms. The Agency is expanding this 
extension because, upon further

[[Page 77287]]

assessment, we believe it is premature for the Agency to determine that 
the current SPCC requirements are appropriate for farms with oil 
storage capacities greater than 10,000 gallons before we undertake our 
study of the universe of farms.
2. Compliance Date Extension for Farms
    With today's action, EPA extends the compliance dates for the owner 
or operator of a farm, as defined in Sec.  112.2, to prepare or amend 
and implement the farm's SPCC Plan until the effective date of a rule 
addressing whether to provide differentiated requirements for farms. 
The Agency will announce the new compliance date in the Federal 
Register. The Agency will be conducting additional information 
collection and analysis to determine if differentiated SPCC 
requirements may be appropriate for farms. The Agency will be working 
with USDA to collect data that would more accurately characterize oil 
handling at these facilities, thereby allowing the Agency to focus on 
priorities where substantial environmental improvements can be 
obtained.
    Some commenters argued that EPA should provide a suspension of 
requirements rather than an extension of the compliance date. We 
believe that providing a compliance extension in the same manner as 
previous compliance extensions that have been granted is appropriate. 
We are not aware that the farming community has had concerns with the 
previous compliance extensions that have been granted. In addition, we 
would have concerns about the impact that such an action may have as 
some number of farms handle significant quantities of oil and it would 
not be appropriate to issue a blanket suspension of all spill 
prevention requirements for owners and operators of these facilities. 
By extending the compliance date, the Agency is allowing for burden 
relief, while it makes a determination of whether the agriculture 
sector warrants specific consideration under the SPCC rule. Regardless 
of whether the Agency ultimately determines that differentiated 
requirements for farms are warranted, we will publish a notice in the 
Federal Register proposing new compliance dates for farms.

VI. Statutory and Executive Order Reviews

A. Executive Order 12866--Regulatory Planning and Review

    Under section 3(f)(1) of Executive Order (EO) 12866 (58 FR 51735, 
October 4, 1993), this action is an ``economically significant 
regulatory action'' because it is likely to have an annual effect on 
the economy of $100 million or more. Accordingly, EPA submitted this 
action to the Office of Management and Budget (OMB) for review under EO 
12866 and any changes made in response to OMB recommendations have been 
documented in the docket for this action.
    In addition, EPA prepared an analysis of the potential costs and 
benefits associated with this action. This analysis is contained in the 
``Regulatory Impact Analysis for the Final Revisions to the Oil 
Pollution Prevention Regulations'' (October 2006). A copy of the 
analysis is available in the docket for this action and the analysis is 
briefly summarized here.
    The regulatory impact analysis developed in support of today's 
action compares the compliance costs for owners and operators of 
facilities affected by the 2006 amendments to the costs owners and 
operators would face under the SPCC rule as amended in 2002 with 
respect to the four major components of the final rule: (1) Qualified 
facilities with 10,000 gallons or less of storage capacity; (2) 
facilities with certain types of oil-filled operational equipment; (3) 
facilities with motive power containers; and (4) facilities with mobile 
refuelers.
    For each of these components, the benefits consist of reductions in 
costs accruing from reductions in compliance costs. The main steps used 
to estimate the compliance cost impacts of the SPCC final Rule are as 
follows:
     Develop the baseline universe of SPCC-regulated 
facilities;
     Estimate the number of facilities affected by the final 
rule amendments;
     Estimate changes in compliance cost elements resulting 
from the final rule;
     Estimate total compliance cost savings to owners and 
operators of potentially affected facilities; and
     Annualize compliance cost savings over a ten-year period, 
2008 through 2017, and discount the estimates using 3 and 7 percent 
discount rates.
    Based on these procedures, EPA estimated the average annual number 
of potentially affected facilities and the annual compliance cost 
savings associated with each of the four major components of the final 
rule, as can be seen in Exhibit 1. EPA assumes cost minimization 
behavior applies to all owners and operators of facilities that qualify 
for reduced regulatory requirements, whereby all those affected will 
seek burden relief. These estimates are not necessarily additive, given 
that they do not account for interactions among the various components 
of the final rule. Exhibit 1 presents one compliance cost savings 
scenario for each rule component, whereby all qualified facilities, 50 
percent of qualified oil-filled operational equipment, 10 percent of 
motive power containers, and 50 percent of mobile refuelers are 
affected.

                      Exhibit 1.--Compliance Cost Savings Associated With This Final Action
----------------------------------------------------------------------------------------------------------------
                                                     Projected average annual       Estimated annual compliance
                                                   number of affected facilities      cost savings ($2005 in
       Major components of the final rule        --------------------------------            millions)
                                                                                 -------------------------------
                                                     Existing           New        Discounted 3%   Discounted 7%
----------------------------------------------------------------------------------------------------------------
Qualified Facilities............................         337,000           7,260          $37.9           $37.7
Qualified Oil-filled Equipment..................           \1\ 0           5,040           53.1            52.8
Motive Power Containers.........................          28,500             516            1.07            1.07
Mobile Refuelers................................           \1\ 0           2,940           34.4            34.2
----------------------------------------------------------------------------------------------------------------
\1\ The number of existing facilities with qualified oil-filled operational equipment and mobile refuelers is
  zero because EPA assumed that existing SPCC-regulated facilities would already have secondary containment or a
  determination of the impracticability of secondary containment in accordance with Sec.   112.7(d).

    EPA also prepared an Alternative Baseline that describes the 
estimated changes in cost savings resulting from the 2006 SPCC final 
rule assuming partial (50 percent) compliance. For this alternative 
analysis, EPA assumed 50 percent compliance with both the 2002 and 2006 
rules. The Agency anticipates the compliance rate under the 2006 final

[[Page 77288]]

rule to be at the same level as it would have been under the 2002 rule, 
or higher.

B. Paperwork Reduction Act

    The information collection requirements for the final rule were 
submitted for approval to the Office of Management and Budget (OMB) 
under the Paperwork Reduction Act, 44 U.S.C. 3501 et seq. The 
Information Collection Request (ICR) document prepared by EPA has been 
assigned EPA ICR number 0328.13.
    EPA does not collect the information required by the SPCC rule on a 
routine basis. SPCC Plans ordinarily need not be submitted to EPA, but 
must generally be maintained at the facility. Preparation, 
implementation, and maintenance of an SPCC Plan by the facility owner 
or operator helps prevent oil discharges, and mitigates the 
environmental damage caused by such discharges. Therefore, the primary 
user of the data is the facility personnel. While EPA may, from time to 
time, request information under these regulations, such requests are 
not routine.
    Although facility personnel are the primary data user, EPA also 
uses the data in certain situations. EPA reviews SPCC Plans: (1) When 
it requests a facility owner or operator to submit required information 
in the event of certain discharges of oil or to evaluate an extension 
request; and, (2) as part of EPA's inspection program. State and local 
governments also use the data, which are not necessarily available 
elsewhere and can greatly assist local emergency preparedness efforts. 
Preparation of the information for affected facilities is required 
under section 311(j)(1) of the Act as implemented by 40 CFR part 112.
    EPA estimates that in the absence of this rulemaking, approximately 
580,000 facilities would be subject to the SPCC rule in 2006 and have 
SPCC Plans. In addition, EPA estimates that approximately 17,500 new 
facilities would become subject to SPCC requirements annually. In the 
absence of this final rulemaking, EPA projects that the average annual 
public reporting and recordkeeping burden for this information 
collection would be 2,695,329 hours.
    Under today's rulemaking, owners and operators of qualified 
facilities no longer need a licensed Professional Engineer to certify 
their Plans. Facilities that store oil solely in motive power 
containers are no longer regulated, while owners and operators of 
facilities with oil storage in addition to motive power containers may 
incur lower compliance costs. Today's rule also allows greater use of 
contingency plans and written commitment of manpower, equipment, and 
resources without requiring an impracticability determination when 
combined with an inspection or monitoring program as an alternative to 
secondary containment for qualified oil-filled operational equipment. 
It also allows mobile refuelers at airports and facilities within other 
industries, to fall under a facility's general secondary containment 
requirements, rather than require specifically sized secondary 
containment.
    Under today's rule, an estimated 434,000 regulated facilities would 
annually be subject to the SPCC information collection requirements of 
this rule during the information collection period. This figure 
excludes farms, to reflect the final compliance extension. Under this 
rule, the estimated annual average burden over the next three-year ICR 
period would be approximately 2,191,069 hours, resulting in a 19 
percent average reduction. The estimated average annual public 
reporting for owners and operators of individual facilities already 
regulated under the SPCC rule would range between 3.3 and 7.1 hours, 
while the burden for owners and operators of newly regulated facilities 
would range between 40.1 and 70.1 hours as a result of this final 
action. The net annualized capital and start-up costs for the SPCC 
information collection portion of the rule would average $1.4 million 
and net annualized operation and maintenance (O&M) costs are estimated 
to be $34.3 million for owners and operators of all of these facilities 
combined.
    Burden means the total time, effort, or financial resources 
expended by persons to generate, maintain, retain, or disclose or 
provide information to or for a Federal agency. This includes the time 
needed to review instructions; develop, acquire, install, and utilize 
technology and systems for the purposes of collecting, validating, and 
verifying information, processing and maintaining information, and 
disclosing and providing information; adjust the existing ways to 
comply with any previously applicable instructions and requirements; 
train personnel to be able to respond to a collection of information; 
search data sources; complete and review the collection of information; 
and transmit or otherwise disclose the information.
    An agency may not conduct or sponsor, and a person is not required 
to respond to a collection of information unless it displays a 
currently valid OMB control number. The OMB control numbers for EPA's 
regulations in 40 CFR are listed in 40 CFR part 9.

C. Regulatory Flexibility Act

    The Regulatory Flexibility Act generally requires an agency to 
prepare a regulatory flexibility analysis of any rule subject to notice 
and comment rulemaking requirements under the Administrative Procedure 
Act or any other statute unless the agency certifies that the rule will 
not have a significant economic impact on a substantial number of small 
entities. Small entities include small businesses, small organizations, 
and small governmental jurisdictions.
    For purposes of assessing the impacts of today's final rule on 
small entities, small entity is defined as: (1) a small business as 
defined in the SBA's regulations at 13 CFR 121.201--the SBA defines 
small businesses by category of business using North American Industry 
Classification System (NAICS) codes, and in the case of farms and 
production facilities, which constitute a large percentage of the 
facilities affected by this final rule, generally defines small 
businesses as having less than $500,000 in revenues or 500 employees, 
respectively; (2) a small governmental jurisdiction that is a 
government of a city, county, town, school district or special district 
with a population of less than 50,000; and (3) a small organization 
that is any not-for-profit enterprise that is independently owned and 
operated and is not dominant in its field.
    After considering the economic impacts of today's final rule on 
small entities, I certify that this action would not have a significant 
economic impact on a substantial number of small entities. In 
determining whether a rule has a significant economic impact on a 
substantial number of small entities, the impact of concern is any 
significant adverse economic impact on small entities, since the 
primary purpose of the regulatory flexibility analyses is to identify 
and address regulatory alternatives ``which minimize any significant 
economic impact of the final rule on small entities.'' 5 U.S.C. 603 and 
604. Thus, an agency may certify that a rule will not have a 
significant economic impact on a substantial number of small entities 
if the rule relieves regulatory burden, or otherwise has a positive 
economic effect on all of the small entities subject to the rule.
    This rule reduces regulatory burden on owners and operators of 
qualified facilities and facilities with qualified oil-filled 
operational equipment. Owners and operators of qualified facilities no 
longer need a licensed

[[Page 77289]]

Professional Engineer to certify their Plans. Facilities that store oil 
solely in motive power containers are no longer regulated, while owners 
and operators of facilities with oil storage in addition to motive 
power containers may incur lower compliance costs. Today's rule also 
allows greater use of contingency plans and a written commitment of 
manpower, equipment, and materials without requiring an 
impracticability determination as an alternative to secondary 
containment for qualified oil-filled operational equipment when 
combined with an established and documented inspection or monitoring 
program. It also allows mobile refuelers no matter the industry to fall 
under a facility's general secondary containment requirements rather 
than require specifically sized secondary containment. The Agency has 
therefore concluded that today's rule relieves regulatory burden for 
small entities.
    Overall, EPA estimates that today's rule will reduce annual 
compliance costs by roughly $38 million for owners and operators of 
qualified facilities, $53 million for owners and operators of 
facilities with qualified oil-filled equipment, $1 million for owners 
and operators of facilities with motive power containers, and $34 
million for owners and operators of facilities with mobile refuelers. 
Total costs were annualized over a 10-year period using both 3 and 7 
percent discount rates assuming all qualified facilities, 50 percent of 
qualified oil-filled operational equipment, 10 percent of motive power 
containers, and 50 percent of mobile refuelers are affected under this 
scenario. EPA derived these savings by estimating the number of 
facilities affected by each provision in the final rule; identifying 
the specific behavioral changes (e.g., choosing to self-certify an SPCC 
Plan rather than using a licensed PE) that may occur; estimating the 
unit costs of compliance measures under the baseline and regulatory 
scenarios; and applying the change in unit costs to the projected 
number of affected facilities.
    We have therefore concluded that today's final rule will relieve 
regulatory burden for all affected small entities.

D. Unfunded Mandates Reform Act

    Title II of the Unfunded Mandates Reform Act of 1995 (UMRA), Public 
Law 104-4, establishes requirements for Federal agencies to assess the 
effects of their regulatory actions on State, local, and tribal 
governments and the private sector. Under section 202 of UMRA, EPA 
generally must prepare a written statement, including a cost-benefit 
analysis, for proposed and final rules with ``Federal mandates'' that 
may result in expenditures to State, local, and tribal governments, in 
the aggregate, or to the private sector, of $100 million or more in any 
one year. Before promulgating an EPA rule for which a written statement 
is needed, section 205 of UMRA generally requires EPA to identify and 
consider a reasonable number of regulatory alternatives and adopt the 
least costly, most cost-effective or least burdensome alternative that 
achieves the objectives of the rule. The provisions of section 205 do 
not apply when they are inconsistent with applicable law. Moreover, 
section 205 allows EPA to adopt an alternative other than the least 
costly, most-effective or least burdensome alternative if the 
Administrator publishes with the final rule an explanation why that 
alternative was not adopted.
    Before EPA establishes any regulatory requirements that may 
significantly or uniquely affect small governments, including tribal 
governments, it must have developed under section 203 of UMRA a small 
government agency plan. The plan must provide for notifying potentially 
affected small governments, enabling officials of affected small 
governments to have meaningful and timely input in the development of 
EPA regulatory proposals with significant Federal intergovernmental 
mandates, and informing, educating, and advising small governments on 
compliance with the regulatory requirements. EPA has determined that 
this final rule does not contain a Federal mandate that may result in 
expenditures of $100 million or more for State, local, and tribal 
governments, in the aggregate, or the private sector in any one year. 
Today's final rule would reduce compliance costs on owners and 
operators of affected facilities by as much as $126 million annually, 
although EPA acknowledges this estimate is derived from analyses of 
each of the four major components of the final rule and are not 
necessarily additive, given that they do not account for interactions 
among the various components. Thus, today's rule is not subject to the 
requirements of sections 202 and 205 of the UMRA.
    EPA has determined that this rule contains no regulatory 
requirements that might significantly or uniquely affect small 
governments. As explained above, the effect of final rule would be to 
reduce burden and costs for owners and operators of qualified regulated 
facilities, including certain small governments that are subject to the 
rule.

E. Executive Order 13132--Federalism

    Executive Order 13132, entitled ``Federalism'' (64 FR 43255, August 
10, 1999), requires EPA to develop an accountable process to ensure 
``meaningful and timely input by State and local officials in the 
development of regulatory policies that have federalism implications.'' 
``Policies that have federalism implications'' is defined in the 
Executive Order to include regulations that have ``substantial direct 
effects on the States, on the relationship between the national 
government and the States, or on the distribution of power and 
responsibilities among the various levels of government.''
    This final rule does not have federalism implications. It would not 
have substantial direct effects on the States, on the relationship 
between the national government and the States, or on the distribution 
of power and responsibilities among the various levels of government, 
as specified in Executive Order 13132. Under CWA section 311(o), States 
may impose additional requirements, including more stringent 
requirements, relating to the prevention of oil discharges to navigable 
waters. EPA encourages States to supplement the Federal SPCC program 
and recognizes that some States have more stringent requirements. 56 FR 
54612 (October 22, 1991). This final rule would not preempt State law 
or regulations. Thus, Executive Order 13132 does not apply to this 
final rule.

F. Executive Order 13175--Consultation and Coordination With Indian 
Tribal Governments

    Executive Order 13175, entitled ``Consultation and Coordination 
with Indian Tribal Governments'' (65 FR 67249, November 9, 2000), 
requires EPA to develop an accountable process to ensure ``meaningful 
and timely input by tribal officials in the development of regulatory 
policies that have tribal implications.'' This final rule does not have 
tribal implications, as specified in Executive Order 13175. Today's 
rule would not significantly or uniquely affect communities of Indian 
trial governments. Thus, Executive Order 13175 does not apply to this 
rule.

G. Executive Order 13045--Protection of Children From Environmental 
Health & Safety Risks

    Executive Order 13045, ``Protection of Children from Environmental 
Health Risks and Safety Risks'' (62 FR 19885, April 23, 1997), applies 
to any rule that: (1) Is determined to be ``economically significant'' 
as defined under Executive Order 12866; and (2) concerns an 
environmental health or safety risk that EPA has reason to believe may 
have a disproportionate effect on children. If the regulatory action 
meets both criteria, the Agency must evaluate the

[[Page 77290]]

environmental health or safety effects of the planned rule on children, 
and explain why the planned regulation is preferable to other 
potentially effective and reasonably feasible alternatives considered 
by the Agency. EPA interprets Executive Order 13045 as applying only to 
those regulatory actions that are based on health or safety risks, such 
that the analysis required under section 5-501 of the Order has the 
potential to influence the regulation. This final rule is not subject 
to Executive Order 13045 because the Agency does not have reason to 
believe the environmental health or safety risks addressed by this 
action present a disproportionate risk to children.

H. Executive Order 13211--Actions That Significantly Affect Energy 
Supply, Distribution, or Use

    This rule is not a ``significant energy action'' as defined in 
Executive Order 13211, ``Actions Concerning Regulations that 
Significantly Affect Energy Supply, Distribution, or Use'' (66 FR 
28355, May 22, 2001) because it is not likely to have a significant 
adverse effect on the supply, distribution, or use of energy. The 
overall effect of the rule is to decrease the regulatory burden on 
facility owners or operators subject to its provisions.

I. National Technology Transfer and Advancement Act

    Section 12(d) of the National Technology Transfer and Advancement 
Act of 1995 (``NTTAA''), Public Law 104-113, section 12(d) (15 U.S.C. 
272 note) directs EPA to use voluntary consensus standards in its 
regulatory activities unless to do so would be inconsistent with 
applicable law or otherwise impractical. Voluntary consensus standards 
are technical standards such as materials specifications, test methods, 
sampling procedures, and business practices that are developed or 
adopted by voluntary consensus standards bodies. The NTTAA directs EPA 
to provide Congress, through OMB, explanations when the Agency decides 
not to use available and applicable voluntary consensus standards.
    This rule does not involve technical standards. Therefore, EPA did 
not consider the use of any voluntary consensus standards.

J. Congressional Review Act

    The Congressional Review Act, 5 U.S.C. 801 et seq., as added by the 
Small Business Regulatory Enforcement Fairness Act of 1996, generally 
provides that before a rule may take effect, the agency promulgating 
the rule must submit a rule report, which includes a copy of the rule, 
to each House of the Congress and to the Comptroller General of the 
United States. EPA will submit a report containing this rule and other 
required information to the U.S. Senate, the U.S. House of 
Representatives, and the Comptroller General of the United States prior 
to publication of the rule in the Federal Register. A major rule cannot 
take effect until 60 days after it is published in the Federal 
Register. This action is a ``major rule'' as defined by 5 U.S.C. 804(2) 
because it will likely result in an annual effect on the economy of 
$100 million or more. This rule will be effective February 26, 2007.

List of Subjects in 40 CFR Part 112

    Environmental protection, Airports, Animal fats and vegetable oils, 
Farms, Fire prevention, Flammable materials, Materials handling and 
storage, Oil pollution, Oil spill response, Penalties, Petroleum, 
Reporting and recordkeeping requirements, Tanks, Water pollution 
control, Water resources.

    Dated: December 12, 2006.
Stephen L. Johnson,
Administrator.

0
For the reasons stated in the preamble, the Environmental Protection 
Agency amends 40 CFR part 112 as follows:

PART 112--OIL POLLUTION PREVENTION

0
1. The authority citation for part 112 continues to read as follows:

    Authority: 33 U.S.C. 1251 et seq.; 33 U.S.C. 2720; and E.O. 
12777 (October 18, 1991), 3 CFR, 1991 Comp., p. 351.

Subpart A--[Amended]

0
2. Amend Sec.  112.1 by revising paragraph (d)(2)(ii) and adding 
paragraph (d)(7) to read as follows:

Sec.  112.1  General applicability.

* * * * *
    (d) * * *
    (2) * * *
    (ii) The aggregate aboveground storage capacity of the facility is 
1,320 gallons or less of oil. For the purposes of this exemption, only 
containers with a capacity of 55 gallons or greater are counted. The 
aggregate aboveground storage capacity of a facility excludes the 
capacity of a container that is ``permanently closed,'' and the 
capacity of a ``motive power container'' as defined in Sec.  112.2.
* * * * *
    (7) Any ``motive power container,'' as defined in Sec.  112.2. The 
transfer of fuel or other oil into a motive power container at an 
otherwise regulated facility is not eligible for this exemption.
* * * * *

0
3. Amend Sec.  112.2 by adding definitions for ``Farm,'' ``Mobile 
refueler,'' ``Motive power container,'' and ``Oil-filled operational 
equipment'' in alphabetical order to read as follows:

Sec.  112.2  Definitions.

* * * * *
    Farm means a facility on a tract of land devoted to the production 
of crops or raising of animals, including fish, which produced and 
sold, or normally would have produced and sold, $1,000 or more of 
agricultural products during a year.
* * * * *
    Mobile refueler means a bulk storage container onboard a vehicle or 
towed, that is designed or used solely to store and transport fuel for 
transfer into or from an aircraft, motor vehicle, locomotive, vessel, 
ground service equipment, or other oil storage container.
    Motive power container means any onboard bulk storage container 
used primarily to power the movement of a motor vehicle, or ancillary 
onboard oil-filled operational equipment. An onboard bulk storage 
container which is used to store or transfer oil for further 
distribution is not a motive power container. The definition of motive 
power container does not include oil drilling or workover equipment, 
including rigs.
* * * * *
    Oil-filled operational equipment means equipment that includes an 
oil storage container (or multiple containers) in which the oil is 
present solely to support the function of the apparatus or the device. 
Oil-filled operational equipment is not considered a bulk storage 
container, and does not include oil-filled manufacturing equipment 
(flow-through process). Examples of oil-filled operational equipment 
include, but are not limited to, hydraulic systems, lubricating systems 
(e.g., those for pumps, compressors and other rotating equipment, 
including pumpjack lubrication systems), gear boxes, machining coolant 
systems, heat transfer systems, transformers, circuit breakers, 
electrical switches, and other systems containing oil solely to enable 
the operation of the device.

0
4. Amend Sec.  112.3 as follows:
0
a. By redesignating paragraph (a) as paragraph (a)(1).
0
b. By adding paragraph (a)(2).
0
c. By redesignating paragraph (b) as paragraph (b)(1).

[[Page 77291]]

0
d. By adding paragraph (b)(2).
0
e. By revising paragraph (d) introductory text.
0
f. By adding paragraph (g).

Sec.  112.3  Requirement to prepare and implement a Spill Prevention, 
Control, and Countermeasure Plan.

* * * * *
    (a)(1) * * *
    (2) If your onshore facility is a farm as defined in Sec.  112.2, 
the compliance date described in paragraph (a)(1) of this section is 
delayed until the effective date of a rule establishing SPCC 
requirements specifically for farms or otherwise establishes dates by 
which farms must comply with the provisions of this part.
    (b)(1) * * *
    (2) If your onshore facility meets the definition of farm in Sec.  
112.2, the compliance date described in paragraph (b)(1) of this 
section is delayed until the effective date of a rule establishing SPCC 
requirements specifically for farms or otherwise establishes dates by 
which farms must comply with the provisions of this part.
* * * * *
    (d) Except as provided in Sec.  112.6, a licensed Professional 
Engineer must review and certify a Plan for it to be effective to 
satisfy the requirements of this part.
* * * * *
    (g) Qualified Facilities. The owner or operator of a qualified 
facility as defined in this subparagraph may self-certify his or her 
facility's Plan, as provided in Sec.  112.6. A qualified facility is 
one that:
    (1) Has an aggregate aboveground storage capacity of 10,000 gallons 
or less; and
    (2) Has had no single discharge as described in Sec.  112.1(b) 
exceeding 1,000 U.S. gallons or no two discharges as described in Sec.  
112.1(b) each exceeding 42 U.S. gallons within any twelve month period 
in the three years prior to the SPCC Plan self-certification date, or 
since becoming subject to this part if the facility has been in 
operation for less than three years (other than discharges as described 
in Sec.  112.1(b) that are the result of natural disasters, acts of 
war, or terrorism).

0
5. Amend Sec.  112.5 by revising paragraph (c) to read as follows:

Sec.  112.5  Amendment of Spill Prevention, Control, and Countermeasure 
Plan by owners or operators.

* * * * *
    (c) Except as provided in Sec.  112.6, have a Professional Engineer 
certify any technical amendments to your Plan in accordance with Sec.  
112.3(d).

0
6. Add Sec.  112.6 to read as follows:

Sec.  112.6  Qualified Facility Plan Requirements.

    (a) Preparation and Self-certification of Plan. If you are the 
owner or operator of a facility that meets the qualified facility 
qualification criteria in Sec.  112.3(g), you may choose to self-
certify your Plan. You must certify in the Plan that:
    (1) You are familiar with the requirements of this part;
    (2) You have visited and examined the facility;
    (3) The Plan has been prepared in accordance with accepted and 
sound industry practices and standards, and with the requirements of 
this part;
    (4) Procedures for required inspections and testing have been 
established;
    (5) The Plan is being fully implemented;
    (6) The facility meets the qualification criteria set forth under 
Sec.  112.3(g);
    (7) The Plan does not deviate from any requirement of this part as 
allowed by Sec. Sec.  112.7(a)(2) and 112.7(d), except as provided in 
paragraph (c) of this section; and
    (8) The Plan and individual(s) responsible for implementing the 
Plan have the full approval of management and the facility owner or 
operator has committed the necessary resources to fully implement the 
Plan.
    (b) Self-certification of Technical Amendments. If you self-certify 
your Plan pursuant to paragraph (a) of this section, you must certify 
any technical amendments to your Plan in accordance with paragraph (a) 
of this section when there is a change in the facility design, 
construction, operation, or maintenance that affects its potential for 
a discharge as described in Sec.  112.1(b) except:
    (1) If a Professional Engineer certified a portion of your Plan in 
accordance with paragraph (d) of this section, and the technical 
amendment affects this portion of the Plan, you must have the amended 
provisions of your Plan certified by a Professional Engineer in 
accordance with Sec.  112.6(d)(2).
    (2) If the change is such that the facility no longer meets the 
qualifying criteria in Sec.  112.3(g) because it exceeds 10,000 gallons 
in aggregate aboveground storage capacity, you must prepare a Plan in 
accordance with the general Plan requirements in Sec.  112.7 and the 
applicable requirements in subparts B and C, including having the Plan 
certified by a Professional Engineer as required under Sec.  112.3(d).
    (c) Applicable Requirements. Except as provided in this 
subparagraph, your self-certified SPCC Plan must comply with Sec.  
112.7 and the applicable requirements in subparts B and C of this part:
    (1) Environmental Equivalence. Your Plan may not include alternate 
methods which provide environmental equivalence pursuant to Sec.  
112.7(a)(2), unless each alternate method has been reviewed and 
certified in writing by a Professional Engineer, as provided in 
paragraph (d) of this section.
    (2) Impracticability. Your Plan may not include any determinations 
that secondary containment is impracticable and provisions in lieu of 
secondary containment pursuant to Sec.  112.7(d), unless each such 
determination and alternative provision has been reviewed and certified 
in writing by a Professional Engineer, as provided in paragraph (d) of 
this section.
    (3) Security (excluding oil production facilities). You must 
either:
    (i) Comply with the requirements under Sec.  112.7(g); or
    (ii) Describe in your Plan how you secure and control access to the 
oil handling, processing and storage areas; secure master flow and 
drain valves; prevent unauthorized access to starter controls on oil 
pumps; secure out-of-service and loading/unloading connections of oil 
pipelines; address the appropriateness of security lighting to both 
prevent acts of vandalism and assist in the discovery of oil 
discharges.
    (4) Bulk Storage Container Inspections. You must either:
    (i) Comply with the requirements under Sec.  112.8(c)(6) or Sec.  
112.12(c)(6), as applicable; or
    (ii) Test/inspect each aboveground container for integrity on a 
regular schedule and whenever material repairs are made. 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, 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

[[Page 77292]]

practices satisfy the recordkeeping requirements of this paragraph.
    (d) Professional Engineer Certification of Portions of a Qualified 
Facility's Self-certified Plan. As described in paragraph (c) of this 
section, the facility owner or operator may not self-certify 
alternative measures allowed under Sec.  112.7(a)(2) or (d), that are 
included in the facility's Plan. Such measures must be reviewed and 
certified, in writing, by a licensed Professional Engineer as follows:
    (1) For each alternative measure allowed under Sec.  112.7(a)(2), 
the Plan must be accompanied by a written statement by a Professional 
Engineer that states the reason for nonconformance and describes the 
alternative method and how it provides equivalent environmental 
protection in accordance with Sec.  112.7(a)(2). For each determination 
of impracticability of secondary containment pursuant to Sec.  
112.7(d), the Plan must clearly explain why secondary containment 
measures are not practicable at this facility and provide the 
alternative measures required in Sec.  112.7(d) in lieu of secondary 
containment.
    (2) By certifying each measure allowed under Sec.  112.7(a)(2) and 
(d), the Professional Engineer attests:
    (i) That he is familiar with the requirements of this part;
    (ii) That he or his agent has visited and examined the facility; 
and
    (iii) That the alternative method of environmental equivalence in 
accordance with Sec.  112.7(a)(2) or the determination of 
impracticability and alternative measures in accordance with Sec.  
112.7(d) is consistent with good engineering practice, including 
consideration of applicable industry standards, and with the 
requirements of this part.
    (3) The review and certification by the Professional Engineer under 
this paragraph is limited to the alternative method which achieves 
equivalent environmental protection pursuant to Sec.  112.7(a)(2) or to 
the impracticability determination and measures in lieu of secondary 
containment pursuant to Sec.  112.7(d).

0
7. Amend Sec.  112.7 as follows:
0
a. By revising paragraph (a)(2).
0
b. By revising paragraph (c) introductory text.
0
c. By revising paragraph (d) introductory text.
0
d. By adding paragraph (k).

Sec.  112.7  General requirements for Spill Prevention, Control, and 
Countermeasure Plans.

* * * * *
    (a) * * *
    (2) Comply with all applicable requirements listed in this part. 
Except as provided in Sec.  112.6, your Plan may deviate from the 
requirements in paragraphs (g), (h)(2) and (3), and (i) of this section 
and the requirements in subparts B and C of this part, except the 
secondary containment requirements in paragraphs (c) and (h)(1) of this 
section, and Sec. Sec.  112.8(c)(2), 112.8(c)(11), 112.9(c)(2), 
112.10(c), 112.12(c)(2), and 112.12(c)(11), where applicable to a 
specific facility, if you provide equivalent environmental protection 
by some other means of spill prevention, control, or countermeasure. 
Where your Plan does not conform to the applicable requirements in 
paragraphs (g), (h)(2) and (3), and (i) of this section, or the 
requirements of subparts B and C of this part, except the secondary 
containment requirements in paragraph (c) and (h)(1) of this section, 
and Sec. Sec.  112.8(c)(2), 112.8(c)(11), 112.9(c)(2), 112.10(c), 
112.12(c)(2), and 112.12(c)(11), you must state the reasons for 
nonconformance in your Plan and describe in detail alternate methods 
and how you will achieve equivalent environmental protection. If the 
Regional Administrator determines that the measures described in your 
Plan do not provide equivalent environmental protection, he may require 
that you amend your Plan, following the procedures in Sec.  112.4(d) 
and (e).
* * * * *
    (c) Provide appropriate containment and/or diversionary structures 
or equipment to prevent a discharge as described in Sec.  112.1(b), 
except as provided in paragraph (k) of this section for qualified oil-
filled operational equipment. The entire containment system, including 
walls and floor, must be capable of containing oil and must be 
constructed so that any discharge from a primary containment system, 
such as a tank or pipe, will not escape the containment system before 
cleanup occurs. At a minimum, you must use one of the following 
prevention systems or its equivalent:
* * * * *
    (d) Provided your Plan is certified by a licensed Professional 
Engineer under Sec.  112.3(d), or, in the case of a qualified facility 
that meets the criteria in Sec.  112.3(g), the relevant sections of 
your Plan are certified by a licensed Professional Engineer under Sec.  
112.6(d), if you determine that the installation of any of the 
structures or pieces of equipment listed in paragraphs (c) and (h)(1) 
of this section, and Sec. Sec.  112.8(c)(2), 112.8(c)(11), 112.9(c)(2), 
112.10(c), 112.12(c)(2), and 112.12(c)(11) to prevent a discharge as 
described in Sec.  112.1(b) from any onshore or offshore facility is 
not practicable, you must clearly explain in your Plan why such 
measures are not practicable; for bulk storage containers, conduct both 
periodic integrity testing of the containers and periodic integrity and 
leak testing of the valves and piping; and, unless you have submitted a 
response plan under Sec.  112.20, provide in your Plan the following:
* * * * *
    (k) Qualified Oil-filled Operational Equipment. The owner or 
operator of a facility with oil-filled operational equipment that meets 
the qualification criteria in paragraph (k)(1) of this sub-section may 
choose to implement for this qualified oil-filled operational equipment 
the alternate requirements as described in paragraph (k)(2) of this 
sub-section in lieu of general secondary containment required in 
paragraph (c) of this section.
    (1) Qualification Criteria--Reportable Discharge History: The owner 
or operator of a facility that has had no single discharge as described 
in Sec.  112.1(b) from any oil-filled operational equipment exceeding 
1,000 U.S. gallons or no two discharges as described in Sec.  112.1(b) 
from any oil-filled operational equipment each exceeding 42 U.S. 
gallons within any twelve month period in the three years prior to the 
SPCC Plan certification date, or since becoming subject to this part if 
the facility has been in operation for less than three years (other 
than oil discharges as described in Sec.  112.1(b) that are the result 
of natural disasters, acts of war or terrorism); and
    (2) Alternative Requirements to General Secondary Containment. If 
secondary containment is not provided for qualified oil-filled 
operational equipment pursuant to paragraph (c) of this section, the 
owner or operator of a facility with qualified oil-filled operational 
equipment must:
    (i) Establish and document the facility procedures for inspections 
or a monitoring program to detect equipment failure and/or a discharge; 
and
    (ii) Unless you have submitted a response plan under Sec.  112.20, 
provide in your Plan the following:
    (A) An oil spill contingency plan following the provisions of part 
109 of this chapter.
    (B) A written commitment of manpower, equipment, and materials 
required to expeditiously control and remove any quantity of oil 
discharged that may be harmful.

[[Page 77293]]

Subpart B--[Amended]

0
8. Amend Sec.  112.8 by revising paragraphs (c)(2) and (c)(11) to read 
as follows:

Sec.  112.8  Spill Prevention, Control, and Countermeasure Plan 
requirements for onshore facilities (excluding production facilities).

* * * * *
    (c) * * *
    (2) Construct all bulk storage tank installations (except mobile 
refuelers) so that you provide a secondary means of containment for the 
entire capacity of the largest single container and sufficient 
freeboard to contain precipitation. You must ensure that diked areas 
are sufficiently impervious to contain discharged oil. Dikes, 
containment curbs, and pits are commonly employed for this purpose. You 
may also use an alternative system consisting of a drainage trench 
enclosure that must be arranged so that any discharge will terminate 
and be safely confined in a facility catchment basin or holding pond.
* * * * *
    (11) Position or locate mobile or portable oil storage containers 
to prevent a discharge as described in Sec.  112.1(b). Except for 
mobile refuelers, you must furnish a secondary means of containment, 
such as a dike or catchment basin, sufficient to contain the capacity 
of the largest single compartment or container with sufficient 
freeboard to contain precipitation.
* * * * *

Subpart C--[Amended]

0
9. Amend Sec.  112.12 by revising the section heading and by revising 
paragraphs (c)(2) and (c)(11) to read as follows:

Sec.  112.12  Spill Prevention, Control, and Countermeasure Plan 
requirements.

* * * * *
    (c) * * *
    (2) Construct all bulk storage tank installations (except mobile 
refuelers) so that you provide a secondary means of containment for the 
entire capacity of the largest single container and sufficient 
freeboard to contain precipitation. You must ensure that diked areas 
are sufficiently impervious to contain discharged oil. Dikes, 
containment curbs, and pits are commonly employed for this purpose. You 
may also use an alternative system consisting of a drainage trench 
enclosure that must be arranged so that any discharge will terminate 
and be safely confined in a facility catchment basin or holding pond.
* * * * *
    (11) Position or locate mobile or portable oil storage containers 
to prevent a discharge as described in Sec.  112.1(b). Except for 
mobile refuelers, you must furnish a secondary means of containment, 
such as a dike or catchment basin, sufficient to contain the capacity 
of the largest single compartment or container with sufficient 
freeboard to contain precipitation.

Sec.  112.13  [Removed and Reserved]

0
10. Remove and reserve Sec.  112.13.

Sec.  112.14  [Removed and Reserved]

0
11. Remove and reserve Sec.  112.14.

Sec.  112.15  [Removed and Reserved]

0
12. Remove and reserve Sec.  112.15.

 [FR Doc. E6-21509 Filed 12-22-06; 8:45 am]

BILLING CODE 6560-50-P