87R24783 TYPED
By: Alvarado S.B. No. 900
(Paddie, Perez, Burns)
Substitute the following for S.B. No. 900: No.
A BILL TO BE ENTITLED
AN ACT
relating to the safety of 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;
(2) require the use of all reasonable methods,
including risk-based corrective action, to implement this policy;
and
(3) promote the safety of storage vessels as defined
in Section 26.3442, by adopting requirements for the design,
construction, operation, and maintenance of 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 PERFORMANCE STANDARDS FOR SAFETY AT STORAGE
VESSELS
(a) Definitions:
(1) Storage Vessel:
(A) is made of nonearthen materials;
(B) is located on or above the surface of the
ground;
(C) has a capacity of 21,000 gallons or more of a
regulated substance as defined by TWC Sec. 26.343; and
(D) 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 tanks, including any pipe that is
connected to the tank, are not considered to be storage vessels and
are exempt from regulation under the Performance Standards for
Safety at Storage Vessels requirements in Sections 26.3442,
26.3443, and 26.3444:
(1) a tank used in or associated with the production or
gathering 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 Performance Standards for Safety at Storage Vessels
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 Performance
Standards for Safety at Storage Vessels 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 vessels 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 Performance
Standards for Safety at Storage Vessels 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 vessels as delineated in the
applicability section of each cited national consensus standard:
(1) for in-service 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 or API Recommended
Practices 2350: Overfill Protection for Storage Tanks in Petroleum
Facilities, the commission shall include the following critical
safety elements for 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 storage
vessels subject to the protocol in the applicable standard; and
(2) for in-service 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; and
(C) NFPA 30, chapter 22 location standards,
except for reconstruction standards at an original storage vessel
location.
(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 storage vessels as defined in API 650.
(h) The commission may require a plan to control spills from
atmospheric storage vessels that includes recommended practices in
NFPA 30.
(i) An owner or operator of a storage vessel shall register
with the commission, assess and report to the commission its
current compliance status with the Performance Standards for Safety
at Storage Vessels Program no later than September 1, 2027. For
storage vessels constructed and brought into service after
September 1, 2027, an owner or operator of a storage vessel shall
register and certify its compliance status to the commission with
the Performance Standards for Safety at Storage Vessels program no
later than 30 days after start of operation.
(j) An owner or operator of a storage vessel shall comply
with the Performance Standards for Safety at Storage Vessel Program
requirements on completion of the next regularly scheduled
out-of-service maintenance of the 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 Performance Standards for Safety at Storage
Vessels 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 Performance
Standards for Safety at Storage Vessels Program shall require an
owner or operator of a 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 Performance Standards for Storage
Vessels 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 Performance Standards for Safety at Storage
Vessels Program under Section 26.3442, may approve exemption of
specific 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 or regulation or national consensus standard is
amended in a way that materially conflicts with the commission's
current implementation of the Performance Standards for Safety at
Storage Vessels 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 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
Sections 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 Performance
Standards for Safety at Storage Vessels Program Account.
(c) The commission may use the money in the Performance
Standards for Safety at Storage Vessels Program account to pay:
(1) necessary expenses associated with the
administration of the Performance Standards for Safety at Storage
Vessels Program;
(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 Performance Standards for Safety at
Storage Vessels Program.
SECTION 2. This Act takes effect September 1, 2021.