FINAL BILL REPORT

SSB 6741

                                  C 215 L 88

BYSenate Committee on Environment & Natural Resources (originally sponsored by Senators Metcalf, Kreidler and Sellar)

Relating to storage tanks.

Senate Committee on Environment & Natural Resources and Committee on Ways & Means

House Committe on Environmental Affairs

SYNOPSIS AS ENACTED

BACKGROUND:

Storage tanks, especially those located underground, are being recognized as a major environmental issue due to the number of tanks and the threat that they pose to groundwater.  According to a recent Department of Ecology notification program, more than 33,000 underground tanks were identified.  More than 40 percent of these tanks are over 15 years old, at which time they become statistically more likely to leak.  Estimates on the number of leaking tanks varies widely, from 1 percent to 20 percent depending on the source.  Approximately 60 percent of the state's population relies on groundwater for drinking.

Washington has no program which comprehensively addresses underground storage tanks. In pursuing enforcement action on those whose tanks are leaking, the agency must use other laws, such as water pollution and hazardous waste statutes.

The federal government has developed several storage tank regulatory programs, primarily aimed at underground tanks.  In 1984, Congress passed legislation requiring all tank owners to notify state environmental agencies by May 1986 that they have tanks.  This process has been completed in Washington.

In 1986, as part of the reauthorized federal Superfund hazardous waste cleanup law, Congress required owners or operators of tanks to have at least $1 million of insurance or other proof of financial responsibility for tanks and created a fund for cleaning up leaking tanks for which there is no owner.

Last October, the state Superfund law partially exempted petroleum from its regulatory provisions until July 1990, unless a storage tank bill is enacted with specific funding.

SUMMARY:

The Legislature finds that planning and development of a program for regulating storage tanks must begin as soon as possible.  The program is to be at least as stringent as federal requirements.

The Legislature also finds that affordable private methods of ensuring that owners and operators of tanks have funds to address potential contamination and property or personal injury may not be available.  In addition, the Legislature finds that 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.

A joint select committee is to be established with six members of the Senate and six members of the House of Representatives.  The committee is to seek input from persons and organizations representing various groups.  The committee is to report to the appropriate legislative committees by December 10, 1988.

It is to address needed federal requirements for full state authority to manage an underground storage tank program; the relationship between state and local governments in managing underground storage tank programs; federal financial responsibility requirements; the cost of tank program administration, method of funding and local/state revenue sharing; and a timetable for implementation.

The committee is also to make recommendations on methods of providing tank owners and operators with a program to assure compliance with federal financial responsibility mandates and to limit state liability; risk retention pools to meet financial responsibility requirements for those who cannot obtain adequate and reasonably priced private insurance; cost estimates of administering risk retention pools; ways to ensure that the tank owners and operators eligible to obtain funds from risk retention pools comply with all applicable standards; adequate means to ensure the state will have the necessary resources to address the obligations of the risk retention pool(s); adequate and reasonable contributions by the owner or operator which will provide compliance with federal financial responsibility requirements; and a timetable for risk retention pool implementation by June 1, 1989.

By December 10, 1988, the Department of Ecology is to provide a report on above-ground storage tanks.  The department is to establish a definition for above-ground petroleum storage tanks with the advice of the joint select committee.

VOTES ON FINAL PASSAGE:

      Senate    49     0

      House 96   0 (House amended)

      Senate    44     0 (Senate concurred)

EFFECTIVE:March 23, 1988