New York Tightens Petroleum Storage Regulations: Implications for Environmental Due Diligence

In June 2023, the New York State Department of Environmental Conservation (NYSDEC) implemented significant revisions to its petroleum storage regulations, which are detailed in 6 NYCRR Part 613. The implications of these changes could have a considerable effect on environmental due diligence measures for numerous corporations and law firms.

The amended regulations, which came into effect on October 17, set the groundwork for the state’s updated approach to managing petroleum spill incidents. These changes dictate new responsibilities and standards for oil storage facility owners and operators, particularly concerning spill reporting and response obligations.

The novel provisions essentially require that any oil spill from a storage facility, regardless of size, must be reported to the NYSDEC within two hours of discovery. This contrasts the previous policy, under which only spills exceeding 25 gallons or causing a sheen on nearby waters were subject to these stringent reporting requirements.

Moreover, the amendments have introduced more specific measures regarding petroleum bulk storage tank tightness testing requirements. The requirement for stringent inspection protocols for tank systems installed on or after October 11, 2015, will enforce tank system integrity and significantly minimize risk of petroleum spills.

These regulatory changes have far-reaching implications for legal professionals representing oil storage facilities, refineries, and other entities dealing with petroleum bulk storage. Significant revamping of existing compliance programs might be necessary, and a considerable investment of resources may be required for effective implementation of the new standards.

The changes come in the wake of increasing focus on environmental impact and sustainability, which has led to tighter environmental regulations globally. New York’s move represents a growing trend toward stricter environmental accountability and it serves as a reminder to the legal community to stay vigilant about ongoing changes in environmental laws and regulations.