Dear PEI Member:
Who must have coverage? The state implements the financial responsibility guidelines by requiring manufacturers and installers of underground storage systems regulated under 40 CFR 280.12 to show evidence of financial responsibility. On the manufacturer side, only manufacturers of underground storage tanks and piping are included. There is a possibility that "piping" can be defined narrowly and not include flexible piping, unions and nipples, but the federal guidance is not clear on this point. What is clear is that the manufacturer requirement does not include makers of “underground ancillary equipment or containment systems.” We take that to mean that, under the federal grant guidelines, manufacturers of such items like automatic tank gauges, dispenser and tank top sumps, vents and spill buckets do not have to provide evidence of financial responsibility. Note that states can be more restrictive than the federal guidelines and include all this equipment.
Financial responsibility is also required of companies that install part or all of an underground storage tank system. As we read it, the federal guidance does not exempt installers of underground ancillary equipment or containment systems from the federal financial responsibility requirements.
Scope of coverage. States must require a minimum of $1 million per occurrence and $2 million annual aggregate for manufacturers to cover the cost of corrective action of a release from a regulated storage tank or piping, as appropriate, caused by improper manufacturing. The states must also require a minimum of $1 million per occurrence and $2 million annual aggregate for installers to cover the cost of corrective action of a release from a regulated storage system due to improper installation. The limits do not include legal defense costs.
Length of coverage. States must require manufacturers of tanks and piping to maintain financial responsibility coverage for 30 years after installation, or until the tank is permanently closed, whichever comes first. Installers of underground tank systems must maintain financial responsibility coverage for 10 years after installation, or until the tank is permanently closed, whichever comes first. Installers that are also tank owners are not required to maintain financial responsibility for the tanks they own and install.
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Notification and recordkeeping. The federal EPA recognized that an extensive system of recordkeeping and notification among installers, manufacturers, insurers, tank owners and state agencies must be established if this option is elected by the states. At a minimum, states requiring tank manufacturer/installer financial responsibility must “reasonably address” the following questions:
What happens next? Now the states finally have some guidance from the federal EPA on the two options they must consider: secondary containment or financial responsibility for installers and manufacturers. We still believe about 42 states will go the secondary containment route. Two states, Missouri and Kansas, seem committed to financial responsibility. That leaves approximately six states that are taking a hard look at their options and will be making a decision soon. If you manufacture, install or repair UST equipment, here are some thoughts going forward with regard to those states considering financial responsibility:
Lessons from Missouri. Missouri seems to be ahead of every other state in developing financial responsibility regulations for manufacturers and installers. Officials there held a telephone conference meeting January 17 to present their thoughts on their potential regulations and field questions from interested parties. An audio recording of the 66-minute seminar is available by clicking here. The calls we received after the Missouri meeting gave us some indication about what to expect after a state passes a financial responsibility statute. From the feedback we received, we anticipate:
ZCL COMPOSITES TO ACQUIRE XERXES
WEIGHTS AND MEASURES TO VOTE ON TEMPERATURE COMPENSATION
Amend the Method of Sale Regulation in Handbook 130 by adding the following:
2.XX. Refined Petroleum Products
2.XX.A. Where not in conflict with other statutes or regulations, refined petroleum products delivered through any meter may be sold with the volume adjusted to compensate for temperature. When petroleum products are sold temperature-compensated:
(a) All sales shall be in terms of liters or U.S. gallons at 15 °C (60 °F);
(b) The temperature compensation shall be accomplished through automatic means;
(c) The primary indicating elements, recording elements, and all recorded representations (receipts, invoices, bills of lading, etc.) shall be clearly and conspicuously marked to show that the volume delivered has been adjusted to the volume at 15 °C (60 °F);
(d) All sales by the same person or company for the same metering application within the same state shall be sold temperature compensated in 12-month increments. For example, a person or company may not choose to operate some meters at one location within a state with automatic temperature compensators and others without. Nor may a person or company choose to engage the automatic temperature compensator on a device only during certain times of the year.
Note: As defined in Handbook 130 Engine Fuels, Petroleum Products, and Automotive Lubricants Inspection Law, refined petroleum products are products obtained from distilling and processing of petroleum (crude oil), unfinished oils, recycled oils, natural gas liquids, refinery blend stocks, and other miscellaneous hydrocarbon compounds.
PEI SERVICE & CONSTRUCTION MANAGERS CONFERENCE,
APRIL 26-28, 2007, IN ST. LOUIS
The two-day conference will offer a combination of general session and roundtable discussion topics specifically geared to the needs of both the service manager and construction manager. The conference will include presentations by Mark Mayberry on three topics of interest to both groups:
Those attending the meeting will also have an opportunity to discuss issues with other managers from across the nation in a roundtable format. Roundtable topics for both service and construction managers include:
Roundtable topics for service managers include:
Topics for construction managers include:
Registration for PEI members up to March 30, 2007, is $275 ($535 for nonmembers). The fee beginning March 31 goes up to $325 for members and $635 for nonmembers. The fees include all conference materials, three general sessions, four roundtable discussions, three meals, and two receptions.
Register at PEI’s web site at www.pei.org/events/conference.htm. Printed programs and registration materials will be mailed within the next few weeks.
The conference will be held at the Adam’s Mark Hotel in downtown St. Louis, Missouri. Conference registration does not include sleeping room accommodations. Those attending the conference who wish to stay at the Adam’s Mark can make reservations by clicking here or by calling 1-888-409-2326. Mention that you are attending the PEI Service and Construction Managers Conference to receive the PEI rate of $115 per night. Reservations must be made prior to March 27, 2007, to receive the special rate.
PEI members sponsoring the conference are Central Illinois Mfg., Morrison Bros. Co., PMP Corporation, RDM Industrial Electronics, R.S. Electronic Controls, Riverside Steel, Inc., and Universal Valve Co.
PEI members responsible for planning the conference are Blake Bammer, Guardian Fueling Technologies, Jacksonville, FL; Jack Carmitcheal, Double Check Company, Inc., Kansas City, MO; Steve Fletcher, Northwest Pump & Equipment Company, Portland OR; Bill Giles, Oscar W. Larson Company, Clarkston, MI; John C. Keller, Petroleum Solutions, Inc., San Antonio, TX; Joe McKuskie, SolvOne, Sacramento, CA; Mickey Meyer, M & M Service Station Equipment, Silver Grove, KY; and Ryan Riley, Service Station Systems, Inc., San Jose, CA.
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The TulsaLetter (ISSN 0193-9467) is published two or three times each month by the Petroleum Equipment Institute. Robert N. Renkes, Executive Vice President, Editor. Opinions expressed are the opinions of the Editor. Basic circulation confined to PEI members.
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