SENATE BILL REPORT
SB 5281
BYSenators Kreidler, McCaslin, Gaspard, Newhouse and Vognild
Regulating underground storage tanks.
Senate Committee on Environment & Natural Resources
Senate Hearing Date(s):February 2, 1989
Majority Report: That Substitute Senate Bill No. 5281 be substituted therefor, and the substitute bill do pass and be referred to Committee on Ways & Means.
Signed by Senators Metcalf, Chairman; Amondson, Vice Chairman; Barr, DeJarnatt, Kreidler, Owen, Patterson, Sutherland.
Senate Staff:Gary Wilburn (786-7453)
February 2, 1989
Senate Committee on Ways & Means
Senate Hearing Date(s):
Senate Staff:Charles Langen (786-7715)
AS OF FEBRUARY 13, 1989
BACKGROUND:
Leaking underground tanks that store petroleum or hazardous substances may pose a serious threat to state and national groundwater resources. It has been estimated that a one gallon leak of gasoline can render one million gallons of groundwater unpalatable. According to the U.S. Environmental Protection Agency (EPA), approximately 96 percent of the fresh water in the United States is groundwater and most groundwater aquifers are within a half mile of the surface.
In 1984, Congress passed Subtitle I of the Resource Conservation and Recovery Act (RCRA), giving EPA the authority to regulate underground storage tanks (USTs) containing petroleum products and hazardous substances. EPA was directed to set up a regulatory program that would require the following respecting underground storage tanks: (1) leak detection systems; (2) record-keeping systems; (3) corrective (cleanup) actions in response to releases; (4) reporting of releases and corrective actions; and (5) standards for tank closure. This law also required that UST owners notify the state of the existence of tanks and specify the age, size, type, location, and uses of the tanks.
In 1986, the Legislature designated the Department of Ecology as the state agency in Washington to coordinate the tank owner notification process and report back to the Legislature. This notification process has been completed, with tank owners reporting more than 34,000 USTs in the state. According to the department's report over 40 percent of the USTs in the state are over 15 years old. Tanks of that age are considered statistically likely to begin leaking due to corrosion or structural failure.
Over 95 percent of the USTs in the state store petroleum products.
More than two-thirds of these tanks are in western Washington, where soil corrosivity is relatively high.
Approximately 75 percent of tanks are located at commercial facilities, with over 25 percent located at gasoline service stations.
Most tanks lack protection from corrosion and many lack adequate leak detection systems.
In 1986 Congress added UST requirements in the Superfund Amendments and Reauthorization Act (SARA). Most owners and operators of underground tanks were required to have at least $1 million of insurance or other proof of financial responsibility to pay for the costs of cleaning up leaks and compensating injured parties for personal injuries and property damage.
In 1988, the EPA promulgated regulations establishing technical standards for the design and operation of USTs and financial responsibility requirements for owners and operators of USTs.
The technical standards include leak detection methods, corrosion protection, and spill/overfill prevention. Existing tanks must be upgraded by 1998 and are required to have a leak detection method in place within five years, depending upon the age of the tank. Tanks with the following installation dates must have leak detection by the following compliance dates: (1) installed before 1965 or unknown: by 1989; (2) 1965-1969: by 1990; (3) 1970-1974: by 1991; (4) 1975-1979: by 1992; (5) 1980-Dec., 1988: by 1993.
Owners and operators of USTs at facilities engaged in petroleum production, refining, or marketing are required to demonstrate financial responsibility in the amount of $1 million per occurrence. Other owners and operators who handle less than 10,000 gallons of petroleum per month must show financial responsibility in the amount of $500,000 per occurrence.
Compliance with financial responsibility requirements is phased- in over a two-year period, depending on the type of owner/operator and number of tanks owned. Businesses with a net worth of over $20 million must comply by January of 1989, and those with a net worth of less than $20 million have until October of 1990 to comply. Local governments also have until October of 1990 to comply. Marketers with the following number of tanks must comply by the following dates: (1) more than 1,000: by January 24, 1989; (2) 100 to 999: by October 26, 1989; (3) 13 to 99: by April 26, 1990; (4) 1 to 12: by October 26, 1990.
States may apply to the EPA for delegation of the underground storage tank regulatory program. States are also encouraged to create state mechanisms to help owners and operators meet financial responsibility requirements, as insurance is either not available from the private market or is prohibitively expensive for many tank owners and operators. According to the EPA, states with delegated underground storage tank regulatory programs will be allowed to modify financial responsibility compliance dates within a two-year parameter. Additionally, the EPA may grant further extensions of the financial responsibility compliance dates in states that are actively pursuing the establishment of an underground storage tank financial responsibility program.
In 1988, the Legislature established the Joint Select Committee on Storage Tanks to study program options and directed the department to conduct a statewide inventory of aboveground petroleum storage tanks. The Joint Select Committee on Storage Tanks has developed legislation establishing a Washington Underground Storage Tank Regulatory Program and a Washington Pollution Liability Reinsurance Program. The department has completed the inventory of aboveground storage tanks.
SUMMARY:
The Washington Underground Storage Tank Regulatory Program is established in the Department of Ecology. The department is directed to:
(1) Adopt statewide regulations for underground storage tanks that are consistent with and no less stringent than the federal regulations;
(2) Adopt rules to be used in designating local environmentally sensitive areas and in approving local regulations that are more stringent than the statewide standards in these areas, including local tank fees;
(3) Establish an administrative and enforcement program that meets minimum federal requirements and encourages the delegation of program responsibilities to local governments;
(4) Establish a tank tagging program that will clearly identify to persons delivering products whether the tank is in compliance with state requirements; and
(5) Consult with the State Building Code Council when adopting rules.
In addition, the department is authorized to establish certification programs for persons who conduct underground storage tank inspections, testing, closure, cathodic protection, interior tank lining, corrective action, or other required activities.
The department is required to establish a statewide underground storage tank administration and enforcement program. Cities and counties may apply to the department for delegation of program responsibilities. Fire protection districts are authorized to enter into interlocal agreements with the city or county to assume some or all of the delegated responsibilities. The department is required to administer and enforce the program where no delegation has occurred.
The department is directed to establish physical site criteria to be used in designating local environmentally sensitive areas. Cities and counties may apply to the department separately or jointly to obtain this designation. If approved by the department, cities and counties may set UST standards in these areas that are more stringent than the statewide regulations and impose annual local tank fees if necessary for enhanced program administration and enforcement. To be approved by the department, local regulations in environmentally sensitive areas must be reasonably consistent with previously approved local regulations for similar environmentally sensitive areas.
Delivery of regulated substances to untagged underground storage tanks is prohibited. This prohibition only applies to direct transfers and does not apply to suppliers who sell regulated substances to persons delivering regulated substance to USTs.
The department and local agencies enforcing underground storage tank requirements may: (1) require information and documents of owners and operators and may subpoena relevant witnesses and documents; (2) require an owner or operator to conduct testing or monitoring; and (3) enter private property to conduct inspections, copy records, or obtain samples.
The director is authorized to issue orders or sue in Thurston County Superior Court to: (1) enjoin threatened or continuing violations of program requirements; (2) restrain persons engaging in unauthorized activities that violate program requirements and endanger or damage public health or the environment; (3) require compliance with requests for information, access, testing, or monitoring; and (4) assess and recover civil penalties.
Penalties not to exceed $5,000 per day per violation are established for violations of program requirements.
An annual state tank fee is required of underground storage tank owners. The fee will be set by the department based on the size of the tank and the cost of administering and enforcing the program. The fees will be deposited in a new underground storage tank account. Money in the account is subject to legislative appropriation and may only be spent for the administration and enforcement of the underground storage tank program.
The department is authorized to approve additional annual local tank fees in designated environmentally sensitive areas when necessary for enhanced program administration or enforcement. Local fees may not exceed 50 percent of the annual state fee.
The department is directed to establish a collection process for all fees that takes into account administrative ease and impact on the regulated community.
As of July 1, 1990, the statewide underground storage tank regulations will preempt other state and local regulations governing the same areas of regulation. There are two exceptions to preemption: (1) local regulations pertaining to local authority to immediately respond to releases; and (2) existing local underground storage tank regulations that are more stringent than the federal regulations and the uniform building and fire codes.
The department is required to submit an annual report to the Legislature on the implementation of the underground storage tank program.
EFFECT OF PROPOSED ENVIRONMENT & NATURAL RESOURCES COMMITTEE SUBSTITUTE:
The act takes effect only if a bill establishing a state reinsurance program for tank owners is enacted before July 1, 1989. If such a program is enacted subsequent to that date, the act takes effect on the date of enactment of the reinsurance bill.
Appropriation: none
Revenue: yes
Fiscal Note: available
Effective Date:July 1, 1990 for the prohibition against delivery of regulated substances to untagged tanks and for preemption of other regulations. Emergency clause for all other provisions.
Senate Committee - Testified: ENVIRONMENT & NATURAL RESOURCES: Bruce Wishart, Sierra Club (pro); Tom Eaton, Department of Ecology (pro); Thom Lufkin, Department of Ecology (pro); Gary Smith, Independent Business Association (pro); Tim Hamilton, AUTO (pro); Randy Ray, WOMA/WAWG (pro); Kathleen Collins, Association of Washington Cities (pro)