SENATE BILL REPORT

ESSB 6741

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

Relating to storage tanks.

Senate Committee on Environment & Natural Resources

Senate Hearing Date(s):February 4, 1988

Majority Report:     That Substitute Senate Bill No. 6741 be substituted therefor, and the substitute bill do pass and be referred to Ways & Means Committee.

     Signed by Senators Metcalf, Chairman; Smith, Vice Chairman; Barr, Benitz, Kreidler, Patterson.

Senate Staff:Henry Yates (786-7708)

                February 5, 1988

Senate Committee on Ways & Means

Senate Hearing Date(s):February 5, 1988; February 8, 1988

Majority Report:     That Substitute Senate Bill No. 6741 as recommended by Committee on Environment & Natural Resources be substituted therefor, and the substitute bill be referred to Committee on Rules without recommendation.

     Signed by Senators McDonald, Chairman; Craswell, Vice Chairman; Bauer, Bluechel, Cantu, Deccio, Gaspard, Hayner, Johnson, Lee, Moore, Newhouse, Vognild, Warnke, Zimmerman.

Senate Staff:Chuck Langen (786-7715)

                March 4, 1988

House Committe on Environmental Affairs

AS PASSED SENATE, FEBRUARY 16, 1988

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 (Subtitle I, Resource Conservation and Recovery Act) 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 (ESB 6085) partially exempted petroleum from its regulatory provisions until July 1990, unless a storage tank bill is enacted with specific funding.

SUMMARY:

It is the intent of the Legislature to develop a comprehensive storage tank program for the management and cleanup of petroleum and regulated substances.  The program is to be developed as early as possible to meet federal requirements and address public health and safety issues.

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 are inadequate.  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 1) needed federal requirements for full state authority to manage an underground storage tank program; 2) the relationship between state and local governments in managing underground storage tank programs, including the designation of sensitive areas allowing sole local management; 3) federal financial responsibility requirements; 4) the cost of tank program administration, method of funding and local/state revenue sharing and 5) a timetable for implementation by June 1, 1989.

The committee is also to make recommendations on the following: 1) methods of providing tank owners and operators with a program to assure compliance with federal financial responsibility mandates and to limit state liability; 2) risk retention pools to meet financial responsibility requirements for those who cannot obtain adequate and reasonably priced private insurance; 3) cost estimates of administering risk retention pools; 4) ways to ensure that the tank owners and operators eligible to obtain funds from risk retention pools comply with all applicable standards; 5) adequate means to ensure the state will have the necessary resources to address the obligations of the risk retention pool(s); 6) adequate and reasonable contributions by the owner or operator which will provide compliance with federal financial responsibility requirements and 7) 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.

Appropriation:  $450,000

Revenue:   yes

Fiscal Note:    requested February 4, 1988

Senate Committee - Testified:   ENVIRONMENT & NATURAL RESOURCES: Randy Ray, Washington State Wheat Growers (pro); Don Wessels, Inland Empire Fuel (pro); Tim Hamilton, United Automotive Trades Organization (pro); Earl Tower, Dept. of Ecology; Kathleen Collins, Association of Washington Cities

HOUSE AMENDMENT:

The report prepared by the Joint Select Committee is also to be submitted to the Senate Financial Institutions and Insurance Committee and the House Financial Institutions and Insurance Committee.  The Senate and House Financial Institutions and Insurance Committees are to staff the Joint Select Committee as well as the Environment and Ways and Means Committees of the House and Senate.

The definition of above-ground petroleum storage tank is not to include farm or residential tanks of 1,100 gallons or less capacity used for storing fuel for noncommercial purposes and tanks used for storing heating oil for consumptive uses on the premises where stored.  Language was deleted referring to recommendations on the study of underground storage tank cleanup.