| EPA
Should Clearly Define “Oil” in its Oil Spill Rules |
| Agency |
Environmental Protection Agency (EPA) |
| Submitter |
American Chemistry Council (ACC), National Paint and Coatings
Association (NPCA) |
| Nominated |
February 28, 2008 |
| Description |
The Spill Prevention,
Control, and Countermeasure (SPCC) rules, 40 CFR, Part 112, govern the
prevention and response requirements applicable to facilities that store
oil where there is a potential threat of a release of oil to navigable
waters. |
| Small entities affected |
The SPCC rules affect
hundreds of thousands of small businesses; a new definition of oil would
affect the regulatory status of nonpetroleum oils and chemicals at more
than 10,000 small firms. |
| Regulatory burden |
The rule has been in place
since 1973, and many facilities are unsure whether a given product is
considered “oil” or not, and therefore whether the SPCC rules apply. In
June 2007, ACC and NPCA requested that EPA provide some additional
guidance as to the definition of oil to eliminate ambiguity in the
current broad definition. The current definition relies on the creation
of an “oil sheen” or discoloration on surface water—a very broad
definition that relies on the judgment of the person making the
observation and a variety of other factors. EPA has also moved away from
the Coast Guard list of materials that are considered oil. |
| Proposed burden reduction |
The ACC urges the EPA to return to the 1975 decision tree procedure
developed by the EPA’s Office of Water, as well as the Coast Guard’s
list. This decision tree supported a distinction between materials
thought to be oil generated at petroleum refineries, and agricultural
product processing materials and chemicals created through processing in
the chemical production and related industries. The Coast Guard approach
relies on this decision tree procedure. |
| Small entity benefits |
According to the nominator, more than 10,000 small facilities with
products that are not petroleum-based oil could be relieved from the
burdens of meeting the SPCC rules, which were designed to prevent oil
spills. |
| Status (8/28/08) |
On May 30, 2008 EPA and representatives of the U.S. Coast Guard met with small business stakeholders. EPA has not formally announced its intention to review its definition of oil in its oil spill program. |
| Advocacy contact |
Kevin Bromberg, advocacy@sba.gov |
