By: Alvarado S.B. No. 900
A BILL TO BE ENTITLED
AN ACT
relating to the safety of aboveground storage tanks.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 26.341(b), Water Code, is amended to
read as follows:
(b) The legislature declares that it is the policy of this
state and the purpose of this subchapter to:
(1) maintain and protect the quality of groundwater
and surface water resources in the state from certain substances in
underground and aboveground storage tanks that may pollute
groundwater and surface water resources; [and]
(2) require the use of all reasonable methods,
including risk-based corrective action, to implement this policy;
and
(3) promote the safety of aboveground storage tanks by
the adoption of performance standards for the design, construction,
operation, and maintenance of aboveground storage tanks, with the
objective of protecting groundwater and surface water resources in
the event of accidents and natural disasters.
SECTION 2. Section 26.342, Water Code, is amended by
amending Subdivision (1) and adding Subdivision (7-a) to read as
follows:
(1) "Aboveground storage tank":
(A) means a stationary, nonvehicular device
that:
(i) is[: (A)] made of nonearthen materials;
(ii) is [(B)] located on or above the
surface of the ground or on or above the surface of the floor of a
structure below ground such as a mineworking, basement, or vault;
and
(iii) has a capacity of 21,000 gallons or
more of a regulated substance; and
(B) does not include:
(i) a tank used in or associated with the
production of crude oil or natural gas;
(ii) an aboveground storage tank operating
above 0.5 Pounds per Square Inch Gauge;
(iii) heated tanks;
(iv) a tank that is part of a stormwater or
wastewater collection system;
(v) a surface impoundment, pit, pond, or
lagoon;
(vi) a flow-through process tank, including
a pressure vessel or process vessel and oil and water separators;
(vii) an intermediate bulk container or
similar tank that may be moved within a facility;
(viii) a tank regulated under the Surface
Mining Control and Reclamation Act (30 U.S.C. 1201 et seq.);
(ix) a tank used for the storage of products
regulated under the Federal Food, Drug, and Cosmetic Act (21 U.S.C.
301 et seq.);
(x) a tank, including piping and collection
and treatment systems, that is used in the management of leachate,
methane gas, or methane gas condensate, unless the tank is used for
storage of a regulated substance;
(xi) a tank or pressure vessel that is used
to store liquid petroleum gas;
(xii) any other tank otherwise excluded by
the commission; or
(xiii) any pipe that is connected to a tank
or other facility described in this paragraph
[(C) designed to contain an accumulation of
petroleum].
(7-a) "National consensus standards" means any
performance standard for aboveground storage tanks, or a
modification thereof, which:
(A) has been adopted and promulgated by a
nationally recognized standards-producing organization under
procedures whereby it can be determined by the commission that
persons interested and affected by the scope or provisions of the
standard have reached substantial agreement on its adoption; and
(B) was formulated in a manner which afforded an
opportunity for diverse views to be considered.
SECTION 3. Sections 26.344 (c), (d), and (f), Water Code,
are amended to read as follows:
(c) Notwithstanding Subsection (f), an [An] interstate
pipeline facility, including gathering lines, or an aboveground
storage tank connected to such a facility is exempt from regulation
under this subchapter if the pipeline facility is regulated under
49 U.S.C. Section 60101 et seq. and its subsequent amendments or a
succeeding law.
(d) Notwithstanding Subsection (f), an [An] intrastate
pipeline facility or an aboveground storage tank connected to such
a facility is exempt from regulation under this subchapter but is
not exempt from performance standards adopted under Section 26.3442
if the pipeline facility is regulated under one of the following
state laws:
(1) Chapter 111, Natural Resources Code;
(2) Chapter 117, Natural Resources Code; or
(3) Subchapter E, Chapter 121, Utilities Code.
(f) An aboveground storage tank that is located at or is
part of a petrochemical plant, a petroleum refinery, an electric
generating facility, or a bulk facility as that term is defined by
Section 26.3574(a) [of this code] is exempt from regulation under
this subchapter but is not exempt for purposes of the fee imposed
under Section 26.3574 or the performance standards adopted under
Section 26.3442 [of this code].
SECTION 4. Section 26.3441(b), Water Code, is amended to
read as follows:
(b) The commission may not develop a regulatory program for
aboveground storage tanks that is more extensive than the
regulatory program authorized by this subchapter and Section
26.3442 unless additional regulation of aboveground storage tanks
is necessary to comply or be in conformity with requirements
adopted by the United States Environmental Protection Agency or
with federal law.
SECTION 5. Subchapter I, Chapter 26, Water Code, is amended
by adding Sections 26.3442, 26.3443, and 26.3444 to read as
follows:
Sec. 26.3442. ABOVEGROUND STORAGE TANK SAFETY PROGRAM AND
PERFORMANCE STANDARDS. (a) This section applies only to an
aboveground storage tank described by Section 26.342(1).
(b) Not later than September 1, 2023, the commission shall
establish an Aboveground Storage Tank Safety Program as described
in this section to provide for the protection of public health and
safety as well as groundwater and surface water resources from a
release of substances from an aboveground storage tank in the event
of an accident or natural disaster.
(c) In establishing the Aboveground Storage Tank Safety
Program under this section, the commission shall include but is
limited to critical safety elements from the following statutes and
regulations as applicable to an aboveground storage tank:
(1) Clean Air Act Risk Management Plan Rule and
Maximum Achievable Control Technology/National Emission Standards
for Hazardous Air Pollutants program requirements;
(2) Resource Conservation and Recovery Act
requirements for Treatment, Storage, and Disposal Facilities (40
C.F.R. Parts 264/265, Subparts A-E);
(3) OSHA Standards for Process Safety Management,
Emergency Action Plans, and Hazardous Waste Operations and
Emergency Response;
(4) Spill Prevention, Control, and Countermeasure
Regulations (40 C.F.R. part 112); and
(5) any other requirements under federal law,
including regulations, in effect on the date on which the program is
established or as amended.
(d) The Aboveground Storage Tank Safety Program under this
section shall include but is limited to critical safety elements
from the following national consensus standards as applicable to an
aboveground storage tank:
(1) for aboveground storage tanks constructed on or
before September 1, 2027, and currently in service:
(A) from API Standard 653: Tank Inspection,
Repairs, Alteration, and Reconstruction, the commission shall
require adherence to the protocol to applicable tanks included in
this standard for the following:
(i) Section 4.3: Tank Shell Evaluation;
(ii) Section 4.4: Tank Bottom Evaluation;
(iii) Section 4.5: Tank Foundation
Evaluation;
(iv) Section 6.2: Inspection Frequency
Considerations;
(v) Section 6.3: Inspections from the
Outside of the Tank;
(vi) Section 6.4: Internal Inspection, if
applicable in accordance with Section 6.3;
(vii) Section 8: Design Considerations for
Reconstructed Tanks; and
(viii) Section 9: Tank Repair and
Alteration;
(B) from API Standard 2350: Overfill Protection
for Storage Tanks in Petroleum Facilities, the commission shall
include the following critical safety elements for aboveground
storage tanks included in this standard:
(i) Section 4: Overfill Prevention
Systems, including management systems and operational procedures
before and after product receipt as applicable;
(ii) Section 5: Overfill Prevention
Systems, including requirements for manual or automated overfill
prevention systems as applicable, including use of remote operated
shutoff valves;
(iii) the requirements referenced in
Subparagraphs (i) and (ii) only apply to atmospheric tanks as
specified in API Standard 2350; and
(iv) API 2350 assessment protocol to
determine how to manage overfill through engineered controls,
administrative controls, and hazard class in applicable
quantities; and
(C) from National Fire Protection Association 30
Ch. 22 or API Recommended Practice 2001, the commission shall
require fire suppression systems on aboveground storage tanks
subject to the applicable standard; and
(2) for aboveground storage tanks constructed and
brought into service after September 1, 2027:
(A) all of the standards listed in Subdivision
(1); and
(B) API 650: Welded Tanks for Oil Storage and
National Fire Protection Association 30, chapter 22 and location
standards, or an equally stringent standard as applicable to an
aboveground storage tank.
(e) The applicable standard in Subsection (d)(1)(C) only
applies to material stored at atmospheric pressure with a
flashpoint less than or equal to 100 Fahrenheit as defined by OSHA
Process Safety Management.
(f) The applicable standard in Subsection (d)(2)(B) only
applies to atmospheric aboveground storage tanks as defined in API
650 and does not apply to aboveground storage tanks already
regulated or managed under OSHA Standards for Process Safety
Management.
(g) The commission may require a plan to control spills from
Atmospheric Storage Tanks that includes recommended practices in
NFPA 30.
(h) An owner or operator of an aboveground storage tank
shall assess and report to the commission its current compliance
status with the Aboveground Storage Tank Safety Program no later
than September 1, 2027.
(i) An owner or operator of an aboveground storage tank
shall comply with the Aboveground Storage Tank Safety Program
requirements consistent with and upon completion of the next
regularly scheduled out-of-service maintenance of the aboveground
storage tank by the owner or operator that occurs after September 1,
2027. Any modifications or retrofits necessary for compliance with
the Aboveground Storage Tank Safety Program should be made during
these out-of-service maintenance periods as identified by the owner
or operator unless the owner or operator makes and records a
demonstration of infeasibility.
(j) The Aboveground Storage Tank Safety Program shall
require an owner or operator of an aboveground storage tank or a
designated third party as assigned by the owner or operator to
certify compliance status every 10 years with the standards
referenced in Subsections (c) and (d) as applicable.
(k) The Aboveground Storage Tank Safety Program under this
section shall allow for exemptions for aboveground storage tanks
with low risk of floods, storm surges, hurricanes, accidents,
fires, explosions, or other hazards.
(l) The commission shall keep confidential information
reported to, obtained by, or otherwise submitted to the commission
that is subject to restrictions on dissemination under federal law,
including but not limited to off-site consequence analysis
information subject to Title 40, Part 1400, Code of Federal
Regulations, or may otherwise present a security risk, if disclosed
publicly.
Sec. 26.3443. CERTIFICATION FEE. (a) The commission by
rule shall establish fees in amounts sufficient to recover the
reasonable costs to:
(1) review certifications;
(2) amend certifications;
(3) inspect certified facilities; and
(4) enforce certification of compliance with
applicable standards of Sections 26.3442(c) and (d) and the rules
and orders adopted by this certification.
(b) The certification fee under Subsection (a) shall be
deposited to the credit of an account to be named the Aboveground
Storage Tank Safety Program Account.
SECTION 6. The heading to Section 26.347, Water Code, is
amended to read as follows:
Sec. 26.347. UNDERGROUND STORAGE TANK STANDARDS.
SECTION 7. This Act takes effect September 1, 2021.