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October 31, 2011 | Vol. 61, No. 21

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In This Issue
Dear PEI Member:

The Environmental Protection Agency's (EPA) proposal to revise its underground storage tank (UST) regulations was signed by EPA Administrator Lisa P. Jackson on October 25. EPA has made available a pre-publication copy of the proposed rule. There you will find:
  • A 414-page document that contains the proposed changes to the UST regulations;
  • A summary comparison of the 1988 UST regulations and key changes to the proposed regulations;
  • A red line strikeout version showing the proposed changes imbedded into the existing regulations;
  • A link to the Federal Register version notice (when available); and
  • Additional resources to help you understand the proposed changes.

EPA hopes the proposed rule will be published in the Federal Register this week.

EPA's proposal revises the UST technical regulation in 40 CFR 280 by:

  • Adding periodic operation and maintenance requirements for UST systems;
  • Adding secondary containment requirements for new and replaced tanks and piping;
  • Adding operator training requirements for UST system owners and operators;
  • Removing certain deferrals;
  • Adding new release prevention and detection technologies;
  • Updating codes of practices; and
  • Making editorial and technical corrections.

The following paragraphs briefly describe EPA's proposal, starting with requirements for periodic operation and maintenance of UST systems.

Adding periodic operation and maintenance requirements for UST systems. The 1988 UST regulation required owners and operators to install improved UST system equipment to detect and prevent releases; however, it did not require operation and maintenance for all of that equipment. EPA proposes to add requirements for periodic spill, overfill, secondary containment and release detection testing, along with periodic walkthrough inspections, to prevent and quickly detect releases.

EPA Proposes Revisions to UST Rule

Biodiesel Sales Hit Record

EPA Extends SPCC Deadline For Farmers


PEI and Industry News »


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EPA's proposal would add a new §280.37 requiring owners and operators to perform walkthrough inspections of their UST systems at least once every 30 days. According to the proposal, owners and operators could inspect equipment:

  • By following specific EPA guidelines described in the rule;
  • According to a standard code of practice developed by a nationally recognized association or independent testing laboratory; or
  • By following guidelines developed by the implementing agency that are comparable to EPA's guidelines.

EPA used PEI's Recommended Practices for the Inspection and Maintenance of UST Systems (PEI/RP900) as a guide as it developed the proposed walkthrough requirements. RP900 could be used to satisfy the proposed walkthrough requirements since it qualifies as a standard code of practice developed by a nationally recognized trade association. EPA also proposes to allow owners and operators to hire a third party to conduct walkthrough inspections instead of performing the inspections themselves.

EPA proposes that spill prevention equipment testing be performed at installation and at least once every 12 months. Spill prevention equipment testing would not be required in those situations where spill prevention equipment has two walls and the space between the walls is monitored continuously.

EPA's proposal would add a requirement that owners and operators test proper operation of overfill prevention equipment (automatic shutoff devices, flow restrictors and high level alarms) and secondary containment areas at installation and every three years. EPA proposes staggering implementation over a three-year period based on the installation date of the oldest UST at the facility.

In §280.40, EPA proposes that UST owners and operators perform annual operation and maintenance tests on electronic and mechanical components of their release detection equipment to ensure the equipment is operating properly. EPA proposes that owners and operators begin meeting this requirement no later than one year after the effective date of the final UST regulation.

EPA proposes that owners and operators meet the testing requirements for spill prevention equipment, overfill prevention equipment, interstitial integrity and operability for release detection methods according to one of the following: manufacturer's instructions; a code of practice developed by a nationally recognized association or independent testing laboratory; or requirements developed by the implementing agency. EPA notes in its proposal that it knows of one code of practice currently being developed―PEI's Recommended Practices for the Testing and Verification of Spill, Overfill, Release Detection and Secondary Containment Equipment―that may address testing of this equipment. EPA says it will review the code of practice after it is issued in final form and decide whether to include it in the final UST regulation.

Adding secondary containment requirements for new and replaced tanks and piping. EPA proposes that all owners and operators install secondary containment (including interstitial monitoring) for new or replaced tanks and piping installed after the effective date of the final UST regulation. That would include Indian country and the two states (Missouri and Kansas) that currently use the financial responsibility for manufacturers and installers option provided in the Energy Policy Act. EPA does not propose secondary containment for safe suction piping systems and piping associated with field-constructed tanks and airport hydrant fuel distribution systems. EPA also proposes to remove the option in §280.42 for owners and operators to use a release detection method other than interstitial monitoring for hazardous substance USTs installed after the effective date of the final UST regulation.

EPA also proposes that owners and operators install under-dispenser containment beneath new dispenser systems at UST systems. EPA considers a dispenser system new when both the dispenser and equipment needed to connect the dispenser to an UST system are installed at an UST facility. EPA proposes that check valves, shear valves, unburied risers or flexible connectors, and other transitional components be included as equipment that connects a dispenser to an UST system. If an owner or operator replaces a dispenser but uses existing equipment to connect a dispenser to an UST system, then under-dispenser containment is not required. EPA is also proposing owners and operators install under-dispenser containment beneath new dispenser systems at UST systems, irrespective of whether they dispense motor fuel. This would require kerosene dispensers to have under-dispenser containment.

Adding operator training requirements for UST system owners and operators. The operator training provision of the Energy Policy Act of 2005 requires that state implementing agencies, as a condition of receiving federal Subtitle I money, develop state-specific training requirements for three classes of UST system operators. EPA issued grant guidelines that provide minimum requirements state operator training programs must include in order for states to continue receiving federal Subtitle I money. The operator training grant guidelines apply to most UST systems in the United States; however, all are not covered. UST systems not covered include those in Indian country where EPA is the primary implementing agency, and in states and territories that do not meet the requirements of EPA's operator training grant guidelines. In EPA's proposal, the Agency closes the gap in coverage and ensures all operators are trained according to their level of responsibility, designated as Class A, B or C. 

Removing certain deferrals. Certain categories of UST systems were deferred from the requirements of 40 CFR 280 in the 1988 UST regulation. In EPA's proposal, it will continue to defer the aboveground components associated with airport hydrant systems and USTs with field-constructed tanks. EPA proposes to regulate the underground components associated with airport hydrant systems and USTs with field-constructed tanks. In addition, EPA proposes to regulate wastewater treatment tank systems and UST systems that store fuel solely for use by emergency power generators.

Providing for other changes to improve release prevention and detection and program implementation. EPA proposes language to various sections of 40 CFR 280 that would accomplish the following:

  • Require testing after repairs to spill and overfill prevention equipment, and interstices;
  • Eliminate flow restrictors in vent lines as an overfill prevention option for all new tanks and when overfill devices are replaced;
  • Require closure of lined tanks that cannot be repaired according to a code of practice;
  • Clarify the responsibilities of UST owners and operators regarding interstitial alarm monitoring results, including alarms, under 40 CFR 280, subpart E;
  • Provide notification of UST ownership change to the implementing agency within 30 days;
  • Eliminate groundwater and vapor monitoring as release detection methods; and
  • Establish requirements for determining compatibility for owners and operators who choose to store regulated substances containing greater than 10 percent ethanol and/or 20 percent biodiesel.

Making general updates to the regulation. EPA proposes to include technologies developed since the 1988 UST regulations were issued and clarify the use of those technologies by:

  • Revising a tank definition to allow UST owners and operators to be able to use jacketed tanks to meet EPA's proposed requirement for secondary containment and interstitial monitoring;
  • Revising a piping definition to allow UST owners and operators to install other piping, such as flexible piping, that does not corrode;
  • Adding statistical inventory reconciliation (SIR) and continuous in-tank leak detection (CITLD) as release detection methods; and
  • Adding three methods of interstitial monitoringvacuum, pressure and liquid-filled methodsas distinct interstitial monitoring methods.

PEI is thoroughly reviewing the proposal and will be preparing comments for EPA. Look for additional analysis in the PEI Journal and future issues of the TulsaLetter.

A record 119 million gallons of biomass-based diesel were sold in the United States during the month of September, according to EPA. That marks the sixth consecutive monthly sales record for the fuel and an 8 percent increase over the previous high of 110 million gallons in August. Year-to-date biodiesel sales through September totaled 686 million gallons for 2011.

On October 19, Senator John McCain (R-Ariz) withdrew an amendment he proposed two days earlier that would have prevented any agriculture-related appropriations funds from being used for ethanol infrastructure, such as the purchase and installation of blender pumps. Blender pump projects received less than $3 million of the total $38.6 million in Rural Energy for America Program (REAP) grants and loans the U.S. Department of Agriculture (USDA) awarded to hundreds of projects in rural areas throughout the country this year. But 54 blender pump projects were funded, and even more blending dispensers will be purchased and installed as a result of the funding assistance. 

Cortland Pump & Equipment Inc.
, headquartered in Cortland, New York, recently hired 20-year industry veteran Mark Giaconia as manager of its new branch office in Albany, New York. The company celebrated the grand opening of its Albany branch on October 27.
Additech's board of directors has named Bolling H. (Bo) Sasnett III to serve as the company's president and chief executive officer.
Containment Solutions, Conroe, Texas, has hired Randy Murphy as its new regional manager for eastern Canada. Based in Halifax, Nova Scotia, he will be responsible for underground and aboveground sales in the eastern provinces of Canada, including Ontario, Quebec and Nova Scotia.

On October 18, the U.S. EPA extended the date by which farmers must prepare or amend and implement their Spill Prevention, Control, and Countermeasure (SPCC) Plans to May 10, 2013. EPA says the deadline extension for farmers is necessary due to the numerous floods and fires that disproportionately affected farmers throughout the continental United States this year. The amendment does not extend the November 10, 2011, SPCC compliance deadline for petroleum bulk plants.

The amendment does not remove the regulatory requirement for owners or operators of farms in operation before August 16, 2002, to maintain and continue implementing an SPCC Plan in accordance with SPCC regulations then in effect. Such farms continue to be required to maintain plans during the interim until the applicable compliance date for amending and implementing the plans. Finally, the amendment does not relieve farms from the liability of any oil spills that occur.

Submersible pump manufacturer
. BJM Pumps, LLC, 123 Spencer Plain Road, Old Saybrook, Connecticut 06475, has applied for manufacturer division membership. Mike Bjorkman is director of marketing and IT for the firm, which was established in 1983. The company manufactures submersible pumps for DEF dispensing units, sump pumps, sewage pumps, storm water runoff pumps and explosion-proof pumps, which are sold through distributors. Sponsored for PEI membership by Bill Tegethoff, ANSDis, Tucson, AZ.
Petroleum equipment manufacturer. Yenen Engineering Ltd., Aksemsettin Mahallesi, Tavukcuyolu Sokak no. 23, Sultanbeyli, Istanbul, Turkey 34925, has applied for manufacturer division membership. Isil Yenen is a partner in the firm, which was established in 1991. The company manufactures equipment used in petroleum and autogas stations. The equipment is sold through distributors. Sponsored for PEI membership by João Mendes, PetrotecPT, Guimarães, Portugal.
Georgia management compliance firm. 1st Choice Compliance, Inc., P. O. Box 70246, Albany, Georgia 31708, has applied for affiliate division membership. Elizabeth Fleming is president of the firm, which was established in 2008. The company manages compliance issues for petroleum storage and distribution centers/facilities. Sponsored for PEI membership by Brad Hoffman, Tanknology, Austin, TX.

Jordan installation and service firm. Albelal Technical Trading Est., Prince Hasan St. Amman Custom Circle, Building Number 507, Amman, Jordan 11110, has applied for service and construction division membership. Nahar AlSaidat is general manager for the firm, which was established in 1997. The company designs, maintains and installs refueling stations. It also cleans USTs, and services ATG, POS and payment systems. Sponsored for PEI membership by Jay Walsh, Franklin, Madison, WI.
Texas installation and service company. T & P Service, LLC, P. O. Box 972, Palestine, Texas 75802, has applied for service and construction division membership. Kyle McGill is president of the firm, which was established in 1960. The company provides turnkey installations and remodeling of convenience stores. Sponsored for PEI membership by Mark Barron, PtrSolutns, McAllen, TX.


  • T. L. Stinson Associates LLC, Bloomfield Hills, MI (aff)
  • Refuel Environmental Services, LLC, Columbus, OH (S&C)
  • B & D Petroleum Service, New Oxford, PA (S&C)
  • Eric Rosequist, United Refining Company, Warren, PA (O&E)
  • Chandra Ramcharran, Rubis West Indies Limited, East Bank Demerara, Guyana (O&E)


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Petroleum Equipment Institute
P. O. Box 2380
Tulsa, OK 74101-2380

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.