AN ACT Relating to storage tanks; creating new sections; and declaring an emergency.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

NEW SECTION. Sec. 1. It is the intent of the legislature to develop a comprehensive storage tank management and cleanup program for tanks containing petroleum and regulated substances. The legislature finds that planning and development of these programs must begin as early as possible in order to meet federal and state requirements and address public health and safety issues related to underground storage tanks. The legislature further finds that the economic well-being of small businesses in the state that own or operate petroleum storage tanks is dependent on a clear state policy and an adequate state program.

Further, the legislature finds that additional information is necessary before developing specific standards for a regulatory and cleanup program and addressing the requirements for financial responsibility mandated in 42 U.S.C. Sec. 6991b.(d). The legislature intends for a state underground petroleum storage tank program to include at a minimum, requirements for tank installation, leak detection, operational recordkeeping, reporting of leaks, corrective action, upgrading of existing underground storage tanks, tank closure, sufficient funding to meet federal financial responsibility requirements and any other provision necessary for compliance with federal underground storage tank laws.

In addition, the legislature finds that affordable private methods of ensuring financial responsibility are likely to not be available and it is necessary to study the development of risk retention pools to aid underground petroleum storage tank owners and operators to meet federal financial responsibility requirements and provide moneys for corrective action.

It is the intent of this act to develop and implement these programs by June 1, 1989.

NEW SECTION. Sec. 2. There is hereby created the joint select committee on storage tanks. The committee shall consist of six members from the senate appointed by the president of the senate and six members from the house of representatives, appointed by the speaker of the house of representatives. The committee shall include equal numbers of members from the majority and minority parties of each house.

The committee shall seek input from persons and organizations representing major petroleum companies, agriculture, environmental protection, petroleum jobbing, vehicle sales and repair firms, insurance underwriting, gasoline retailing, cities, counties, other units of local government, fuel oil retailing, the general business community, and the public. The committee shall use staff from the senate committees on environment and natural resources and ways and means and the house of representatives committees on environmental affairs and ways and means. The department of ecology, department of general administration, and the insurance commissioner shall provide necessary staff and resources to assist the committee in carrying out its purpose and preparing to implement programs recommended by the joint select committee on or before June 1, 1989.

The committee shall report its findings and recommendations to the senate committees on environment and natural resources and ways and means and the house of representatives committees on environmental affairs and ways and means by December 10, 1988.

NEW SECTION. Sec. 3. The committee shall make recommendations on topics including, but not limited to the following:

(1) Elements of an underground storage tank regulatory program necessary to meet the requirements of 42 U.S.C. Sec. 6991b.(d) and to allow full delegation of the federal program to the state. The committee shall determine and report on any circumstances under which it may be advisable to develop standards and requirements more stringent than those provided in federal regulations;

(2) Provisions necessary to implement a state-wide underground petroleum storage tank program including preemption of local laws governing the regulation of tanks, but which allow for local programs that address environmentally sensitive areas;

(3) Financial responsibility requirements for underground petroleum storage tanks. The requirements shall meet federal financial responsibility provisions mandated pursuant to 42 U.S.C. Sec. 6991b.(d);

(4)(a) The cost of administering a state storage tank program;

(b) The method of funding program administration and limitations on fees charged by local governments for tank operating regulations; and

(5) The method by which implementation and operation of storage tank programs will be coordinated between state and local government; and

(6) A timetable for implementing a state program by June 1, 1989.

NEW SECTION. Sec. 4. The committee shall also make recommendations on topics including, but not limited to, the following:

(1) Methods of providing owners and operators of underground petroleum storage tanks with a tank owner or operator funded program to assure compliance with federal financial responsibility requirements under 42 U.S.C. Sec. 6991b.(d) and to limit the state's liability;

(2) One or more risk retention pools designed to provide financial responsibility for owners and operators who cannot obtain adequate and reasonably priced private insurance;

(3) Estimates of the costs of administering any risk retention pools recommended by the joint select committee;

(4) Ways to ensure that owners and operators of tanks eligible to obtain funds from the risk retention pools will comply with the applicable state storage tank standards;

(5) Adequate means of ensuring that the state will have the necessary resources to address the obligation of the risk retention pools in the event that regular contributions are insufficient, including but not limited to a petroleum products tax;

(6) Adequate yet reasonable contributions from the owner or operator to ensure that there will be adherence to the standards for federal financial responsibility developed under 42 U.S.C. Sec. 6991b.(d); and

(7) A timetable for implementation of the risk retention pools by June 1, 1989.

NEW SECTION. Sec. 5. (1) By December 10, 1988, the department of ecology shall provide a report to the legislature on the following:

(a) An inventory of above-ground tanks containing petroleum in existence in this state, their sizes, location, types, and products stored therein;

(b) An analysis of the current practices and requirements applicable to above-ground storage tanks containing petroleum, including an examination of any causes of releases from such tanks and appropriate response;

(c) Recommendations for a cleanup program, if necessary, to protect the public health and environment, along with proposals for adequate funding sources; and

(d) Recommendations for a state program, if necessary for the installation, operation, and closure of above-ground storage tanks.

(2) For the purposes of this study and notwithstanding the provisions of chapter 34.04 RCW, the department, with the advice of the joint select committee established in section 2 of this act, shall develop a definition of above-ground petroleum storage tanks except that the definition shall not include barrels or drums commonly used for the transportation and temporary storage of petroleum products.

(3) In carrying out the study, the department may require a person, firm, corporation, or government entity other than a federal government entity, to respond to requests for information necessary to meet the requirements of this study.

NEW SECTION. Sec. 6. This act is necessary for the immediate preservation of the public peace, health, and safety, the support of the state government and its existing public institutions, and shall take effect immediately.