Texas 2021 - 87th Regular

Texas Senate Bill SB900 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1		-	S.B. No. 900
	1	+	87R24783 TYPED
	2	+	By: Alvarado S.B. No. 900
	3	+	(Paddie, Perez, Burns)
	4	+	Substitute the following for S.B. No. 900: No.
2	5
3	6
	7	+	A BILL TO BE ENTITLED
4	8		AN ACT
5	9		relating to the safety of storage vessels.
6	10		BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
7	11		SECTION 1. Section 26.341(b), Water Code, is amended to
8	12		read as follows:
9	13		(b) The legislature declares that it is the policy of this
10	14		state and the purpose of this subchapter to:
11	15		(1) maintain and protect the quality of groundwater
12	16		and surface water resources in the state from certain substances in
13	17		underground and aboveground storage tanks that may pollute
14		-	groundwater and surface water resources; ~~[and]~~
	18	+	groundwater and surface water resources;
15	19		(2) require the use of all reasonable methods,
16	20		including risk-based corrective action, to implement this policy;
17	21		and
18	22		(3) promote the safety of storage vessels as defined
19	23		in Section 26.3442, by adopting requirements for the design,
20	24		construction, operation, and maintenance of storage vessels, with
21	25		the objective of protecting groundwater and surface water resources
22	26		in the event of accidents and natural disasters.
23	27		SECTION 2. Subchapter I, Chapter 26, Water Code, is amended
24	28		by adding Sections 26.3442, 26.3443, and 26.3444 to read as
25	29		follows:
26		-	Sec. 26.3442. PERFORMANCE STANDARDS FOR SAFETY AT STORAGE
27		-	VESSELS. (a) Definitions:
	30	+	Section 26.3442 PERFORMANCE STANDARDS FOR SAFETY AT STORAGE
	31	+	VESSELS
	32	+	(a) Definitions:
28	33		(1) Storage Vessel:
29	34		(A) is made of nonearthen materials;
30	35		(B) is located on or above the surface of the
31	36		ground;
32	37		(C) has a capacity of 21,000 gallons or more of a
33		-	regulated substance as defined by ~~Section~~ 26.343~~, Water Code~~; and
	38	+	regulated substance as defined by TWC Sec. 26.343; and
34	39		(D) is located at or is part of a petrochemical
35	40		plant, a petroleum refinery, or a bulk storage terminal as that term
36	41		is defined by subsection (a)(2).
37	42		(2) "Bulk Storage Terminal" means a site in this
38	43		state, including end-of-line pipeline storage terminals (excluding
39	44		breakout tanks), refinery storage terminals, for-hire storage
40	45		terminals, and rail and barge storage terminals.
41	46		(3) "National consensus standards" means any
42	47		performance standard for storage tanks, or a modification thereof,
43	48		that:
44	49		(A) has been adopted and promulgated by a
45	50		nationally recognized standards-producing organization under
46	51		procedures whereby it can be determined by the commission that
47	52		persons interested and affected by the scope or provisions of the
48	53		standard have reached substantial agreement on its adoption; and
49	54		(B) was formulated in a manner that afforded an
50	55		opportunity for diverse views to be considered.
51	56		(b) The following tanks, including any pipe that is
52	57		connected to the tank, are not considered to be storage vessels and
53	58		are exempt from regulation under the Performance Standards for
54	59		Safety at Storage Vessels requirements in Sections 26.3442,
55	60		26.3443, and 26.3444:
56	61		(1) a tank used in or associated with the production or
57	62		gathering of crude oil or natural gas;
58	63		(2) a tank that is part of a stormwater or wastewater
59		-	collection system;
	64	+	collection system
60	65		(3) a flow-through process tank, including a pressure
61	66		vessel or process vessel and oil and water separators;
62	67		(4) a storage vessel operating above 0.5 Pounds per
63	68		Square Inch Gauge;
64	69		(5) heated tanks;
65	70		(6) an intermediate bulk container or similar tank
66	71		that may be moved within a facility;
67	72		(7) a tank regulated under the federal Surface Mining
68	73		Control and Reclamation Act (30 U.S.C. Sec. 1201 et seq.);
69	74		(8) a tank used for the storage of products regulated
70	75		under the Federal Food, Drug, and Cosmetic Act (21 U.S.C. Sec. 301
71	76		et seq.);
72	77		(9) a tank, including piping and collection and
73	78		treatment systems, that is used in the management of leachate,
74	79		methane gas, or methane gas condensate, unless the tank is used for
75	80		storage of a regulated substance;
76	81		(10) a tank or pressure vessel that is used to store
77		-	~~liquefied~~ petroleum gas; and
	82	+	liquid petroleum gas; and
78	83		(11) a tank regulated under the U.S. Department of
79	84		Transportation's (DOT's) Pipeline and Hazardous Materials Safety
80	85		Administration (PHMSA) (49 U.S.C. 60101 et seq.).
81	86		(c) Not later than September 1, 2023, the commission shall
82	87		establish a Performance Standards for Safety at Storage Vessels
83	88		Program as described in this section to provide for the protection
84	89		of groundwater and surface water resources from a release of
85	90		substances from a storage vessel in the event of an accident or
86	91		natural disaster.
87	92		(d) In establishing the portion of the Performance
88	93		Standards for Safety at Storage Vessels Program governed by this
89	94		subsection, the commission shall, except as provided by Section
90	95		26.3443, include all and only those critical safety elements that
91	96		are applicable to a storage vessel, and that the commission
92	97		determines to be critical in this state for the protection
93	98		described by subsection (c), from the following federal statutes
94	99		and regulations, ensuring that the correct critical safety elements
95	100		are applied to the correct types of storage vessels as delineated in
96	101		the applicability section of each cited federal statute and
97	102		regulation:
98	103		(1) Clean Air Act Risk Management Plan Rule and
99	104		Maximum Achievable Control Technology/National Emission Standards
100	105		for Hazardous Air Pollutants program requirements;
101	106		(2) Resource Conservation and Recovery Act
102	107		requirements for Treatment, Storage, and Disposal Facilities (40
103	108		C.F.R. Parts 264/265, Subparts A-E);
104	109		(3) Spill Prevention, Control, and Countermeasure
105	110		Regulations (40 C.F.R. part 112); and
106	111		(4) EPA Risk Management Plan Rules regarding accident
107	112		prevention at facilities that use certain hazardous substances.
108	113		(e) In establishing the portion of the Performance
109	114		Standards for Safety at Storage Vessels Program governed by this
110	115		subsection, the commission shall, except as provided by Section
111	116		26.3443, include all and only those critical safety elements that
112	117		are applicable to a storage vessel, and that the commission
113	118		determines to be critical in this state for the protection
114	119		described by Subsection (c), from the following national consensus
115	120		standards, ensuring that the correct critical safety elements are
116	121		applied to the correct types of storage vessels as delineated in the
117	122		applicability section of each cited national consensus standard:
118	123		(1) for in-service storage vessels constructed on or
119	124		before September 1, 2027:
120	125		(A) from American Petroleum Institute (API)
121	126		Standard 653: Tank Inspection, Repairs, Alteration, and
122	127		Reconstruction, the commission shall require adherence to the
123	128		protocol to applicable tanks included in this standard for the
124	129		following:
125	130		(i) Section 4.3: Tank Shell Evaluation;
126	131		(ii) Section 4.4: Tank Bottom Evaluation;
127	132		(iii) Section 4.5: Tank Foundation
128	133		Evaluation;
129	134		(iv) Section 6.2: Inspection Frequency
130	135		Considerations;
131	136		(v) Section 6.3: Inspections from the
132	137		Outside of the Tank;
133	138		(vi) Section 6.4: Internal Inspection, if
134	139		applicable in accordance with Section 6.3;
135	140		(vii) Section 8: Design Considerations for
136	141		Reconstructed Tanks; and
137	142		(viii) Section 9: Tank Repair and
138	143		Alteration;
139	144		(B) from API Standard 2350 or API Recommended
140	145		Practices 2350: Overfill Protection for Storage Tanks in Petroleum
141	146		Facilities, the commission shall include the following critical
142	147		safety elements for storage vessels included in this standard:
143	148		(i) Section 4: Overfill Prevention
144	149		Systems, including management systems and operational procedures
145	150		before and after product receipt as applicable;
146	151		(ii) Section 5: Overfill Prevention
147	152		Systems, including requirements for manual or automated overfill
148	153		prevention systems as applicable, including use of remote operated
149	154		shutoff valves;
150	155		(iii) the requirements referenced in
151	156		Subparagraphs (i) and (ii) only apply to atmospheric tanks as
152	157		specified in API Standard 2350; and
153	158		(iv) API 2350 assessment protocol to
154	159		determine how to manage overfill through engineered controls,
155	160		administrative controls, and hazard class in applicable
156	161		quantities; and
157	162		(C) from either National Fire Protection
158	163		Association (NFPA) 30 Ch. 22 or API Recommended Practice 2001, the
159	164		commission shall require fire suppression systems on storage
160	165		vessels subject to the protocol in the applicable standard; and
161	166		(2) for in-service storage vessels constructed after
162	167		September 1, 2027:
163	168		(A) all of the standards listed in Subdivision
164	169		(1); and
165	170		(B) API 650: Welded Tanks for Oil Storage and
166	171		NFPA 30, chapter 22 location standards; and
167	172		(C) NFPA 30, chapter 22 location standards,
168	173		except for reconstruction standards at an original storage vessel
169	174		location.
170	175		(f) The applicable standard chosen by the commission under
171	176		Subsection (e)(1)(C) only applies to material stored at atmospheric
172	177		pressure with a flashpoint less than or equal to 100 Fahrenheit as
173	178		defined by OSHA Process Safety Management.
174	179		(g) The applicable standard in Subsection (e)(2)(B) only
175	180		applies to atmospheric storage vessels as defined in API 650.
176	181		(h) The commission may require a plan to control spills from
177	182		atmospheric storage vessels that includes recommended practices in
178	183		NFPA 30.
179	184		(i) An owner or operator of a storage vessel shall register
180	185		with the commission, assess and report to the commission its
181	186		current compliance status with the Performance Standards for Safety
182	187		at Storage Vessels Program no later than September 1, 2027. For
183	188		storage vessels constructed and brought into service after
184	189		September 1, 2027, an owner or operator of a storage vessel shall
185	190		register and certify its compliance status to the commission with
186	191		the Performance Standards for Safety at Storage Vessels program no
187	192		later than 30 days after start of operation.
188	193		(j) An owner or operator of a storage vessel shall comply
189		-	with the Performance Standards for Safety at Storage ~~Vessels~~
190		-	~~Program~~ requirements on completion of the next regularly scheduled
	194	+	with the Performance Standards for Safety at Storage Vessel Program
	195	+	requirements on completion of the next regularly scheduled
191	196		out-of-service maintenance of the storage vessel by the owner or
192	197		operator that occurs after September 1, 2027. However, all
193	198		facilities must certify compliance status by no later than
194	199		September 1, 2037. Any modifications or retrofits necessary for
195	200		compliance with the Performance Standards for Safety at Storage
196	201		Vessels Program should be made during these out-of-service
197	202		maintenance periods as identified by the owner or operator unless
198	203		the owner or operator makes and records with the commission a
199	204		demonstration of technical impracticability that the commission
200	205		approves.
201	206		(k) The commission in implementing the Performance
202	207		Standards for Safety at Storage Vessels Program shall require an
203	208		owner or operator of a storage vessel or a designated third party as
204	209		assigned by the owner or operator to certify compliance status
205	210		every 10 years with the standards referenced in Subsections (d) and
206	211		(e) as applicable.
207	212		(l) The commission shall keep confidential information
208	213		reported to, obtained by, or otherwise submitted to the commission
209	214		that:
210	215		(1) is subject to restrictions on dissemination under
211	216		federal law, including off-site consequence analysis information
212	217		subject to Title 40, Part 1400, C.F.R.; or
213	218		(2) may otherwise present a security risk, if
214	219		disclosed publicly.
215	220		(m) the commission shall conduct on-site inspections of the
216	221		registered/certified facilities at least once every five years to
217		-	determine compliance with the Performance Standards for ~~Safety at~~
218		-	~~Storage~~ Vessels Program. This subsection does not limit the
219		-	~~commission's~~ ability to inspect a facility under other state or
220		-	~~federal~~ regulations.
	222	+	determine compliance with the Performance Standards for Storage
	223	+	Vessels Program. This subsection does not limit the commission's
	224	+	ability to inspect a facility under other state or federal
	225	+	regulations.
221	226		Sec. 26.3443. CERTAIN COMMISSION EXEMPTIONS AND RULES;
222	227		AMENDMENTS AND ALTERNATIVE STANDARDS. (a) The commission, in
223	228		implementing the Performance Standards for Safety at Storage
224	229		Vessels Program under Section 26.3442, may approve exemption of
225	230		specific storage vessels otherwise subject to Section 26.3442 from
226	231		regulation under the program if the legal owner or operator submits
227	232		a request to the commission demonstrating that the vessel presents
228	233		a sufficiently low risk of floods, storm surges, hurricanes,
229	234		accidents, fires, explosions, or other hazards such that it does
230	235		not warrant regulation under the program.
231	236		(b) The commission shall establish through rulemaking the
232	237		effective date of a federal law or regulation that the commission is
233	238		implementing under Section 26.3442(d), or a national consensus
234	239		standard that the commission is implementing under Section
235	240		26.3442(e). The commission shall amend through rulemaking changes
236	241		if a federal law or regulation or national consensus standard is
237	242		amended in a way that materially conflicts with the commission's
238	243		current implementation of the Performance Standards for Safety at
239	244		Storage Vessels Program except to the extent that the commission
240	245		determines, after a cost-benefit analysis and if not prohibited
241	246		under federal law, that the program as currently implemented by the
242		-	commission is sufficiently effective for protection of the health,
	247	+	commission sufficiently effective for protection of the health,
243	248		safety, and welfare of the citizens of this state.
244	249		(c) Notwithstanding the requirement of Section 26.3442(e)
245	250		that the commission include only critical safety elements from
246	251		specified national consensus standards, the commission may
247	252		initiate a rulemaking proceeding to determine whether, for certain
248	253		vessels in certain situations, an alternative national consensus
249	254		standard would be at least as effective for public health and safety
250	255		but more cost effective for the persons affected to implement. The
251	256		commission may by rule apply the alternative national consensus
252	257		standard in circumstances under which it has determined the
253	258		alternative standard is as effective for public health and safety
254	259		but more cost effective.
255	260		Sec. 26.3444. CERTIFICATION FEE. (a) The commission by
256	261		rule shall establish fees in amounts sufficient to recover the
257	262		reasonable costs to:
258	263		(1) implement a registration program for affected
259		-	facilities;
	264	+	facilities.
260	265		(2) review initial and ten-year certifications;
261	266		(3) amend certifications;
262	267		(4) inspect certified facilities; and
263	268		(5) enforce compliance with applicable standards of
264		-	~~Section~~ 26.3442 and rules and orders adopted under those
	269	+	Sections 26.3442 and rules and orders adopted under those
265	270		subsections.
266	271		(b) The certification fee under Subsection (a) shall be
267	272		deposited to the credit of an account to be named the Performance
268	273		Standards for Safety at Storage Vessels Program Account.
269	274		(c) The commission may use the money in the Performance
270	275		Standards for Safety at Storage Vessels Program account to pay:
271	276		(1) necessary expenses associated with the
272	277		administration of the Performance Standards for Safety at Storage
273		-	Vessels Program; ~~and~~
	278	+	Vessels Program;
274	279		(2) expenses associated with the review and amendment
275	280		of certifications, inspection of certified facilities, and
276	281		enforcement of the applicable standards of Section 26.3442 and the
277	282		rules and orders adopted by the Performance Standards for Safety at
278	283		Storage Vessels Program.
279		-	SECTION 3. This Act takes effect September 1, 2021.
280		-	______________________________ ______________________________
281		-	President of the Senate Speaker of the House
282		-	I hereby certify that S.B. No. 900 passed the Senate on
283		-	April 29, 2021, by the following vote: Yeas 31, Nays 0; and that
284		-	the Senate concurred in House amendments on May 27, 2021, by the
285		-	following vote: Yeas 31, Nays 0.
286		-	______________________________
287		-	Secretary of the Senate
288		-	I hereby certify that S.B. No. 900 passed the House, with
289		-	amendments, on May 24, 2021, by the following vote: Yeas 145,
290		-	Nays 0, one present not voting.
291		-	______________________________
292		-	Chief Clerk of the House
293		-	Approved:
294		-	______________________________
295		-	Date
296		-	______________________________
297		-	Governor
	284	+	SECTION 2. This Act takes effect September 1, 2021.