HOUSE BILL REPORT

 

 

                                    HB 1086

 

 

BYRepresentatives Ferguson, Rust, Wang, May, Haugen, Winsley, R. Meyers, Betrozoff, Beck, Sayan, Nelson, Miller, Moyer, Dellwo, Heavey, Pruitt, D. Sommers, Walker, Brough, Schoon, Phillips, Spanel, Valle and Anderson

 

 

Regulating underground storage tanks.

 

 

House Committe on Environmental Affairs

 

Majority Report:  The substitute bill be substituted therefor and the substitute bill do pass.  (12)

      Signed by Representatives Rust, Chair, Valle, Vice Chair, D. Sommers, Ranking Republican Member, Brekke, G. Fisher, Fraser, Phillips, Pruitt, Schoon, Sprenkle, Van Luven and Walker.

 

      House Staff:Bonnie Austin (786-7107)

 

 

Rereferred House Committee on Revenue

 

Majority Report:  The substitute bill by Committee on Environmental Affairs as amended by Committee on Revenue do pass.  (15)

      Signed by Representatives Wang, Chair; Pruitt, Vice Chair; Holland, Ranking Republican Member; Horn, Appelwick, Basich, Brumsickle, Fraser, Fuhrman, Grant, Haugen, Morris, Phillips, Rust and H. Sommers.

 

House Staff:      Nancy Stevenson (786-7136)

 

 

               AS REPORTED BY COMMITTEE ON REVENUE MARCH 3, 1989

 

BACKGROUND:

 

Leaking underground tanks that store petroleum products 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 Environmental Protection Agency (EPA), approximately 96 percent of the fresh water in the United States is groundwater, 50 percent of the nation's drinking water comes from 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 (UST's) containing petroleum products and hazardous substances.  EPA was directed to set up an underground storage tank regulatory program that would require leak detection systems, record-keeping systems, corrective (cleanup) actions in response to releases, reporting of releases and corrective actions, and 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 (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 UST's in the state.  According to Ecology's report:

 

-Over forty percent of the UST's in the state are over 15 years old (at which time they are considered statistically likely to begin leaking due to corrosion or structural failure).

 

-Over 95 percent of the UST's 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 revisited the federal law in the Superfund amendments and Reauthorization Act (SARA).  A sixth requirement was added to the underground storage tank regulatory program,  requiring most owners and operators of underground tanks 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 UST's.  UST's installed after December 31, 1988, are required to have a leak detection method in place and meet upgrading requirements (corrosion protection and spill/overfill prevention) upon installation. 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:  installed before 1965 or unknown: by 1989; 1965-1969: by 1990; 1970-1974: by 1991; 1975-1979: by 1992; 1980-Dec., 1988: by 1993.

 

The EPA has also promulgated financial responsibility regulations.  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.

 

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 the two-year parameter.  Additionally, the EPA will 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. The Committee has developed two pieces of legislation establishing a Washington Underground Storage Tank Regulatory Program and a Washington Pollution Liability Reinsurance Program.

 

SUMMARY:

 

SUBSTITUTE BILL:  The Washington Underground Storage Tank Regulatory Program is established in Ecology.  Ecology 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 product whether the tank is in compliance with state requirements; and

 

(5)  Consult with the State Building Code Council when adopting rules.

 

In addition, Ecology 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.

 

Ecology is required to establish a statewide underground storage tank administration and enforcement program.  Cities and counties may apply to Ecology 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.  Ecology is required to administer and enforce the program where no delegation has occurred.

 

Ecology is directed to establish physical site criteria to be used in designating local environmentally sensitive areas.  Cities and counties may apply to Ecology separately or jointly to obtain this designation.  If approved by Ecology, 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.  Local governments that apply for designation as an environmentally sensitive area later than five years after the date of Ecology's final rules may only propose more stringent regulations for new tanks.  To be approved by Ecology, 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 UST's.

 

Ecology 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 tank per day of violation are established for violations of program requirements.

 

An annual state tank fee, to be assessed per tank, is required of underground storage tank owners.  The fee will be set by Ecology 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.

 

Ecology 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.

 

Ecology 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.  Two exceptions to preemption are listed:  (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.

 

Ecology is required to submit an annual report to the legislature on the implementation of the underground storage tank program.

 

SUBSTITUTE BILL COMPARED TO ORIGINAL:  Local governments that apply for designation as an environmentally sensitive area later than five years after the date of Ecology's final rules may only propose more stringent regulations for new tanks.

 

Ecology is directed to distribute funds to local governments when program responsibilities are delegated.  State tank fees will be assessed per tank.

 

Annual reporting is limited to five years.  Other technical changes were made.

 

This bill will not take effect unless an underground storage tank reinsurance bill is enacted before July 1, 1989.

 

CHANGES PROPOSED BY COMMITTEE ON REVENUE:  The Department of Ecology is allowed to collect annual tank fees on a phased-billing schedule rather than by July 1st of each year.  A change is made to allow, under specific circumstances, existing local tank programs to continue fees and permits which would have otherwise been pre-empted.

 

Revenue:    The bill has a revenue impact.

 

Fiscal Note:      Available.

 

Effective Date:July 1, 1990 for the prohibition against delivery of regulated substances to untagged tanks and for preemption of local regulations.  Emergency clause for all other provisions if an underground storage tank reinsurance bill is enacted prior to the enactment of this law.  If an underground storage tank reinsurance bill is enacted after the date of this bill, the effective date for all other provisions is the date the underground storage tank reinsurance bill is enacted.

 

House Committee ‑ Testified For:    (Environmental Affairs) Jim Boldt, Washington Auto Dealers; Bruce Wishart, Sierra Club; Gary Smith, Independent Business Association; Tim Hamilton, AUTO; Richard J. Law, Squaw Rock Resort; Douglas R. Williams, Whistlin' Jack Lodge; Terry Husseman, Department of Ecology.

 

(Revenue) Randy Ray, Washington Oil Marketers Association; Vern Lindskog, Western States Petroleum Association; Gary Smith, Independent Business Association; Tim Hamilton, AUTO; Bruce Wishart, Sierra Club; Terry Husseman, Department of Ecology.

 

House Committee - Testified Against:      (Environmental Affairs) None Presented.

 

(Revenue) None Presented.

 

House Committee - Testimony For:    (Environmental Affairs) Forty percent of the tanks in this state are over 15 years old and may be leaking.  We need this program to ensure better tank management practices.  Gasoline contains benzine, lead, and other toxic substances.  Leaking tanks can jeopardize drinking water supplies.  This program has the elements Ecology needs for delegation of the federal program.

 

(Revenue) This program is needed to meet federal requirements to prevent pollution from underground storage tanks.

 

House Committee - Testimony Against:      (Environmental Affairs) None Presented.

 

(Revenue) None Presented.