What's New

TSA has released updated guidelines for establishing and implementing security plans for pipeline systems and facilities. This replaces the November 2008 draft. The “Pipeline Security Guidance” document significantly expands the scope of corporate security programs (CPS) for pipeline operations. It provides a more prescriptive CSP model that outlines key plan elements, recommends approaches to risk analysis, and identifies an extensive list of baseline and enhanced security measures.

On December 1, the U.S. Environmental Protection Agency (EPA) finalized a rule to ensure industries planning to build new, large facilities or making major expansions to existing plants will be able to obtain a NSR PSD permit to control greenhouse gases (GHG) emissions.　 The rule calls on 13 states (Arizona, Arkansas, California, Connecticut, Florida, Idaho, Kansas, Kentucky, Nebraska, Nevada, Oregon, Texas and Wyoming) to make changes to their PSD permitting regulations.　 For all other states, EPA has issued preliminary guidance for implementing GHG emissions controls under the PSD and Title V operating permitting programs.　 The guidance includes considerations for permitting authorities to determine what constitutes "best achievable control technology" (BACT) for GHG emitters.　 It outlines a five-step process for identifying all available emission reduction options and then selecting the appropriate controls by taking into account technical feasibility, cost and other economic, environmental and technical considerations.　 While the guidance does not prescribe GHG BACT for any source type, it offers technical papers that suggest control measures for six industrial sectors: electric generating units; large industrial/commercial/institutional boilers; pulp and paper; cement; iron and steel; refineries; and, nitric acid plants.　 For additional information on EPA’s GHG regulations, visit EPA’s website.

November 2010

On November 30, the Chemical Sector Coordinating Council submitted an industry proposal for implementing a personnel surety program that would meet the requirements of the Chemical Facility Anti-Terrorism Standards.　 The proposal incorporates two departures from the FHS approach published for comment in June 2009 and April 2010: First, it would allow the use of existing credentials for the purpose of demonstrating clearance against the Terrorist Screening Database.　 Second, it would eliminate any requirement for personally identifiable information to be submitted to the Department of Homeland Security by each facility to which the individual has been granted unescorted access. For additional information, contact Peter Weaver.

During November, the National Academy of Engineering and the National Research Council released an interim report on the root causes of the 2010 BP Deepwater Horizon oil spill.　 Additionally, the White House oil spill commission issued a separate preliminary report on its investigation of the accident.　 In both reports, investigators stated that BP, rig contractors Halliburton and Transocean, and the U.S. Minerals Management Service were each partially responsible for the well blowout and subsequent explosion, fire and oil spill.

October 2010

On October 19, OSHA proposed a new enforcement policy interpretation for its General Industry and Construction Occupational Noise Exposure Standard. This rule requires employers to use administrative or engineering controls to reduce noise exposures above acceptable levels if such controls are considered economically “feasible.” Under the proposed interpretation, OSHA is re-defining the standard for economic feasibility to mean that such controls “will not threaten the employer’s ability to remain in business.” This interpretation is contrary to the rule’s 27-year enforcement history allowing employers to utilize personal protective equipment as a more cost-effective means of compliance rather than compelling costly controls. Industry comments are due December 20. For additional information, click here.

On October 7, the New Jersey Offices of Emergency Management and Homeland Security & Preparedness launched a voluntary Essential Employee Credentialing Project. This will enable companies to register individual employees whom they consider essential and whose responsibilities would require them to travel to a facility during a declared State of Emergency. During November, implementation is planned for the petroleum sector. Program coordinator Cindy Fullerton has indicated that the first verification cards should be issued prior to year-end.

September 2010

PHMSA has amended its Hazardous Materials Regulation HM-218D to revise the shipping names and identification numbers for fuel blends composed of more than 10 percent ethanol in gasoline. Effective October 1, the new name for this fuel is “ethanol and gasoline mixture, 3, UN3475, PGII.” For additional guidance, click here.

August 2010

On August 25, ILTA signed a letter to the House Committee on Energy Commerce and a letter to the Senate Committee on Environment and Public Works requesting a public hearing on the introduction of mid-level ethanol blends into commerce. The letters urged the committees to require EPA Administrator Lisa Jackson and Secretary of Energy Steven Chu to testify before Congress regarding the potential impact that mid-level blends may have on different types of road and non-road engines. (Note: Please disregard the "draft" stamp on the Senate letter as it was removed before it was sent.)

The ILTA-sponsored Terminal Employee Compensation and Benefits Survey was distributed to participating companies. This report contains detailed statistics on compensation levels and employee benefit policies at ILTA terminal member companies. In total, 28 terminal companies participated in 2010. Terminal member companies that did not participate in the survey may purchase the repot for $150. Call ILTA at 202-842-9200 for additional information.

July 2010

ILTA published its annual survey of terminal facility recordable incident rate data, as reported in 2009 on OSHA form 300A. This industry benchmarking report is available exclusively to ILTA terminal member companies that participated in the survey. Among reporting companies, the survey data found an average recordable incident rate of 2.5 per 100 employees, compared to 2.6 for the prior year. This figure remains well below the 2008 OSHA reported warehousing and storage sector (NAICS 493) rate of 6.6.

On July 16, five companies were ordered to pay a total of $14.5 million in fines and court costs relating to the December 2005 explosion and fire at the Buncefield Oil Storage Depot in the U.K. Despite setting a record for the highest pollution-related penalty in the U.K., this ruling was modest compared to the overall damage caused by the incident. To date, the accident remains the most costly industrial accident in Britain with damage exceeding $1.5 billion. For more information, click here.

June 2010

In June, the Department of Homeland Security approved and adopted three standards for the Voluntary Private Sector Preparedness Accreditation and Certification Program (PS-PREP). The program, which was recommended by the 9/11 Commission, aims to enhance nationwide resilience in an “all-hazards” environment through the voluntary implementation of plans that would reduce the impact of a disaster or other emergency. By statute, DHS cannot impose these requirements on any private sector entity. Click here to download the PS-PREP standards.

On June 18, the EPA released its draft 2011-2015 strategic plan. The draft includes several regulatory objectives designed to reform EPA’s chemical management program, address climate change, improve water quality, and boost environmental clean-up efforts across the country. Comments are due July 30.

On June 21, a new Department of Labor rule went into effect that requires many federal contractors and subcontractors to post a notice that describes the right of employees to unionize and collectively bargain with their employers about wages, hours, and other terms and conditions of employment. The notice must be posted by federal contractors who have a single covered federal contract of at least $100,000. The poster can be found on the DOL website.

May 2010

ILTA presented the 2010 ILTA Safety Awards on Tuesday, May 25, during the 30th Annual Operating Conference in Houston, TX. Fourteen terminal member companies were recognized for their exceptional safety performance.

2010 Platinum Safety Award Recipients:

Asphalt Operating Services, LLC (small terminal award)
Flint Hills Resources (large terminal award)

2010 Safety Excellence Award Recipients.

Buckeye Terminals, LLC
Hess Corporation
Houston Fuel Oil Terminal Company
Intercontinental Terminals Company
International Raw Materials, Ltd/
Marathon Petroleum Company LLC
Motiva Enterprises – New Jersey Complex
Murphy Oil Company
NuStar Energy, LP
Oiltanking Houston, L.P.
Petro-Diamond Terminal Company
U.S. Oil Co., Inc.

Thirty-eight companies participated in ILTA’s 2010 Safety Survey and Recognition Program, a 10 percent increase from 2009. This is on top of the 20 percent increase from 2008. For additional information on the safety survey or award program, contact Katie Vassalli at kvassalli@ilta.org.

April 2010

As reported in the April issue of ILTA News, ILTA submitted comments to Connecticut, New York and Pennsylvania on proposals that would reduce the allowable sulfur content in home heating oil. ILTA’s comments expressed the terminal industry’s support of a 500 ppm limit, provided that ample time is provided to make appropriate modifications throughout the supply chain. ILTA stressed the importance of deferring any evaluation of need for further reductions until this interim reduction is met. ILTA further noted that a minimum sulfur level of 50 ppm for home heating oil would ensure that any distillate marginally exceeding the EPA’s 15 ppm standard could be placed without penalty into an allowable, though limited, market.

March 2010

During March, ILTA submitted comments to DHS expressing the terminal industry’s opposition to a DHS rule that would regulate gasoline terminals under its Chemical Facility Terrorism Standards (CFATS. The comments were in response to a January 15 Federal Register notice inviting comments on issues raised in ILTA’s May 12, 2009 Petition for Declaratory Order. For more information, click here.

On March 15, ILTA co-signed a letter to EPA Administrator Lisa Jackson requesting a second public comment period on the introduction of mid-level ethanol blends into commerce. The letter, initiated by the National Petrochemical and Refiners Association, was signed by 42 associations representing the fuel and chemical supply chains, engine manufacturers, food and agriculture companies, and environmental protection groups.

February 2010

As reported in the February issue of ILTA News, ILTA submitted comments to the New Jersey Department of Environmental Protection (NJDEP) on a proposed rulemaking that would reduce the maximum sulfur content and sulfur dioxide emissions standards for fuel oil over the next six years. ILTA supports the initial reduction in sulfur content in heating (No. 2) oil to 500 ppm because it could assist the state in complying with federal air quality standards. However, ILTA does not support any further reduction. For more information, click here.

January 2010

On January 4, ILTA launched its 2010 Safety Survey and Recognition Program. The survey solicits terminal member data on reportable incident rates at facilities. Participation is voluntary; however, ILTA strongly urges all terminal members to participate, regardless of company size or incident rate. A high level of participation among member companies results in more accurate reporting of the terminal industry’s overall safety performance record. All information will remain confidential. Survey participants will be considered for an ILTA Safety Recognition Award. As in 2009, this year’s program will include two levels of awards: the “Excellence Award” and the “Platinum Award.” For more information click here.

As referenced in the January issue of ILTA News, EPA published a notice in the December 15, 2009 Federal Register declaring that greenhouse gas emissions endanger public health and welfare and therefore are subject to regulation under the Clean Air Act. For more information, click here.

The Process Safety Leadership Group recently issued a final report entitled Safety and Environmental Standards for Fuel Storage Sites. The purpose of the report is to specify the minimum standards of control that should be in place at all U.K. facilities storing large volumes of gasoline.