By: Alvarado S.B. No. 900
(In the Senate - Filed March 1, 2021; March 11, 2021, read
first time and referred to Committee on Natural Resources &
Economic Development; April 20, 2021, reported adversely, with
favorable Committee Substitute by the following vote: Yeas 8,
Nays 0; April 20, 2021, sent to printer.)
Click here to see the committee vote
COMMITTEE SUBSTITUTE FOR S.B. No. 900 By: Alvarado
A BILL TO BE ENTITLED
AN ACT
relating to the safety of bulk storage vessels.
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 bulk storage vessels as
defined in Section 26.3442, by adopting requirements for the
design, construction, operation, and maintenance of bulk storage
vessels, with the objective of protecting groundwater and surface
water resources in the event of accidents and natural disasters.
SECTION 2. Subchapter I, Chapter 26, Water Code, is amended
by adding Sections 26.3442, 26.3443, and 26.3444 to read as
follows:
Section 26.3442 BULK STORAGE VESSEL PERFORMANCE STANDARDS
PROGRAM. (a) Definitions:
(1) "Bulk storage vessel" means a stationary,
nonvehicular device that:
(A) is made of nonearthen materials;
(B) is located on or above the surface of the
ground;
(C) has a capacity of 8,000 barrels or more;
(D) contains a regulated substance:
(i) listed under Section 101(14) of the
Comprehensive Environmental Response, Compensation, and Liability
Act of 1980 (42 U.S.C. Section 9601 et seq.), but does not include a
substance regulated as a hazardous waste under the federal Solid
Waste Disposal Act (42 U.S.C. Section 6921 et seq.); or
(ii) listed under Environmental Protection
Agency 40 C.F.R. 68.130; and
(E) is located at or is part of a petrochemical
plant, a petroleum refinery, or a bulk storage terminal as that term
is defined by Subsection (a)(2).
(2) "Bulk storage terminal" means a site in this
state, including end-of-line pipeline storage terminals (excluding
breakout tanks), refinery storage terminals, for-hire storage
terminals, and rail and barge storage terminals.
(3) "National consensus standards" means any
performance standard for storage tanks, or a modification thereof,
that:
(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 that afforded an
opportunity for diverse views to be considered.
(b) The following aboveground storage tanks, including any
pipe that is connected to the tank, are not considered to be a bulk
storage vessel and are exempt from regulation under the Bulk
Storage Vessel Performance Standards Program requirements in
Sections 26.3442, 26.3443, and 26.3444:
(1) a tank used in or associated with the production of
crude oil or natural gas;
(2) a tank that is part of a stormwater or wastewater
collection system;
(3) a flow-through process tank, including a pressure
vessel or process vessel and oil and water separators;
(4) a storage vessel operating above 0.5 Pounds per
Square Inch Gauge;
(5) heated tanks;
(6) an intermediate bulk container or similar tank
that may be moved within a facility;
(7) a tank regulated under the federal Surface Mining
Control and Reclamation Act (30 U.S.C. Sec. 1201 et seq.);
(8) a tank used for the storage of products regulated
under the Federal Food, Drug, and Cosmetic Act (21 U.S.C. Sec. 301
et seq.);
(9) 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;
(10) a tank or pressure vessel that is used to store
liquid petroleum gas; and
(11) a tank regulated under the U.S. Department of
Transportation's (DOT's) Pipeline and Hazardous Materials Safety
Administration (PHMSA) (49 U.S.C. 60101 et seq.).
(c) Not later than September 1, 2023, the commission shall
establish a Bulk Storage Vessel Performance Standards Program as
described in this section to provide for the protection of
groundwater and surface water resources from a release of
substances from a storage vessel in the event of an accident or
natural disaster.
(d) In establishing the portion of the Bulk Storage Vessel
Performance Standards Program governed by this subsection, the
commission shall, except as provided by Section 26.3443, include
all and only those critical safety elements that are applicable to a
storage vessel, and that the commission determines to be critical
in this state for the protection described by Subsection (c), from
the following federal statutes and regulations, ensuring that the
correct critical safety elements are applied to the correct types
of storage vessel as delineated in the applicability section of
each cited federal statute and regulation:
(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) Spill Prevention, Control, and Countermeasure
Regulations (40 C.F.R. Part 112); and
(4) EPA Risk Management Plan Rules regarding accident
prevention at facilities that use certain hazardous substances.
(e) In establishing the portion of the Bulk Storage Vessel
Performance Standards Program governed by this subsection, the
commission shall, except as provided by Section 26.3443, include
all and only those critical safety elements that are applicable to a
storage vessel, and that the commission determines to be critical
in this state for the protection described by Subsection (c), from
the following national consensus standards, ensuring that the
correct critical safety elements are applied to the correct types
of storage vessel as delineated in the applicability section of
each cited national consensus standard:
(1) for in-service bulk storage vessels constructed on
or before September 1, 2027:
(A) from American Petroleum Institute (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 bulk storage
vessels 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 either National Fire Protection
Association (NFPA) 30 Ch. 22 or API Recommended Practice 2001, the
commission shall require fire suppression systems on bulk storage
vessels subject to the protocol in the applicable standard; and
(2) for in-service bulk storage vessels constructed
after September 1, 2027:
(A) all of the standards listed in Subdivision
(1); and
(B) API 650: Welded Tanks for Oil Storage and
NFPA 30, Chapter 22 location standards.
(f) The applicable standard chosen by the commission under
Subsection (e)(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.
(g) The applicable standard in Subsection (e)(2)(B) only
applies to atmospheric bulk storage vessels as defined in API 650.
(h) The commission may require a plan to control spills from
atmospheric bulk storage vessels that includes recommended
practices in NFPA 30.
(i) An owner or operator of a bulk storage vessel shall
register with the commission, assess and report to the commission
its current compliance status with the Bulk Storage Vessel
Performance Standards Program no later than September 1, 2027. For
bulk storage vessels constructed and brought into service after
September 1, 2027, an owner or operator of a bulk storage vessel
shall register and certify its compliance status to the commission
with the Bulk Storage Vessel Performance Standards Program no later
than 30 days after start of operation.
(j) An owner or operator of a bulk storage vessel shall
comply with the Bulk Storage Vessel Performance Standards Program
requirements on completion of the next regularly scheduled
out-of-service maintenance of the bulk storage vessel by the owner
or operator that occurs after September 1, 2027. However, all
facilities must certify compliance status by no later than
September 1, 2037. Any modifications or retrofits necessary for
compliance with the Bulk Storage Vessel Performance Standards
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 with the commission a demonstration of
technical impracticability that the commission approves.
(k) The commission in implementing the Bulk Storage Vessel
Performance Standards Program shall require an owner or operator of
a bulk storage vessel 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 (d) and (e) as applicable.
(l) The commission shall keep confidential information
reported to, obtained by, or otherwise submitted to the commission
that:
(1) is subject to restrictions on dissemination under
federal law, including off-site consequence analysis information
subject to Title 40, Part 1400, C.F.R.; or
(2) may otherwise present a security risk, if
disclosed publicly.
(m) The commission shall conduct on-site inspections of the
registered/certified facilities at least once every five years to
determine compliance with the Bulk Storage Vessel Performance
Standards Program. This subsection does not limit the commission's
ability to inspect a facility under other state or federal
regulations.
Sec. 26.3443. CERTAIN COMMISSION EXEMPTIONS AND RULES;
AMENDMENTS AND ALTERNATIVE STANDARDS. (a) The commission, in
implementing the Bulk Storage Vessel Performance Standards Program
under Section 26.3442, may approve exemption of specific bulk
storage vessels otherwise subject to Section 26.3442 from
regulation under the program if the legal owner or operator submits
a request to the commission demonstrating that the vessel presents
a sufficiently low risk of floods, storm surges, hurricanes,
accidents, fires, explosions, or other hazards such that it does
not warrant regulation under the program.
(b) The commission shall establish through rulemaking the
effective date of a federal law or regulation that the commission is
implementing under Section 26.3442(d), or a national consensus
standard that the commission is implementing under Section
26.3442(e). The commission shall amend through rulemaking changes
if a federal law, regulation, or national consensus standard is
amended in a way that materially conflicts with the commission's
current implementation of the Bulk Storage Vessel Performance
Standards Program except to the extent that the commission
determines, after a cost-benefit analysis and if not prohibited
under federal law, that the program as currently implemented by the
commission is sufficiently effective for protection of the health,
safety, and welfare of the citizens of this state.
(c) Notwithstanding the requirement of Section 26.3442(e)
that the commission include only critical safety elements from
specified national consensus standards, the commission may
initiate a rulemaking proceeding to determine whether, for certain
vessels in certain situations, an alternative national consensus
standard would be at least as effective for public health and safety
but more cost effective for the persons affected to implement. The
commission may by rule apply the alternative national consensus
standard in circumstances under which it has determined the
alternative standard is as effective for public health and safety
but more cost effective.
Sec. 26.3444. CERTIFICATION FEE. (a) The commission by
rule shall establish fees in amounts sufficient to recover the
reasonable costs to:
(1) implement a registration program for affected
facilities;
(2) review initial and ten-year certifications;
(3) amend certifications;
(4) inspect certified facilities; and
(5) enforce compliance with applicable standards of
Section 26.3442 and rules and orders adopted under those
subsections.
(b) The certification fee under Subsection (a) shall be
deposited to the credit of an account to be named the Bulk Storage
Vessel Performance Standards Program Account.
(c) The commission may use the money in the Bulk Storage
Vessel Performance Standards Program Account to pay:
(1) necessary expenses associated with the
administration of the Bulk Storage Vessel Performance Standards
Program; and
(2) expenses associated with the review and amendment
of certifications, inspection of certified facilities, and
enforcement of the applicable standards of Section 26.3442 and the
rules and orders adopted by the Bulk Storage Vessel Performance
Standards Program.
SECTION 3. This Act takes effect September 1, 2021.
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