Texas Tank Truck Carriers Association, Inc.


Circular Letter No. 1256

April 2, 1999


PETROLEUM STORAGE TANK PROGRAM
HB 2815 & HB 2816, 76TH TEXAS LEGISLATURE

PROPOSED LEGISLATION FOR OWNER/OPERATOR CERTIFICATION OF COMPLIANCE FOR UNDERGROUND STORAGE TANKS

 

SUMMARY

During the past 18 months we have had several meetings with various associations, Senators and Representatives concerning the proposed legislation of the Texas Petroleum Marketers and Convenience Store Association (TPCA) regarding certification of compliance of underground storage tanks (USTs). TPCA has introduced two bills through Representative Junell, HB 2815 and HB 2816, Appendix A and B respectively.

HB 2815

The highlights of HB 2815 are as follows:

· An underground or above-ground storage tank must be registered with the TNRCC.

· TNRCC shall establish rules and procedures to maintain current registration information.

· TNRCC shall also require that an owner or operator of an underground storage tank complete an annual underground storage tank compliance certification form.

· TNRCC shall issue a compliance confirmation certificate.

· Makes it the responsibility of the owner or operator of a UST to accurately complete the registration form pertaining to certification of compliance.

· Failure to provide of registration or certification of compliance subjects the owner or operator of a UST to civil penalties.

· Provides that a person commits an offense if the persons deposits or has deposited any regulated substance into a UST regulated under Chapter 26, unless the UST has been issued a valid, current UST registration and certificate of compliance form under Section 26.346.

· Creates a presumption that in favor of a depositor if in the exercise of good faith a person depositing, or causing to be deposited, a regulated substance into a UST receives and registration and certificate of compliance for the UST, the receipt of the registration shall be considered prima facie evidence of compliance.

· Creates a June 23, 1998, demarcation date for a corrective action plan by owner/operators.

· If an owner or operator has a corrective action plan approved by the TNRCC and before December 23, 1999, has met the goals specified in the plan, the fee shall be as stated in Section 26.3572.

· Proposed effective date is September 1, 1999.

HISTORY

The United States Environmental Protection Agency created rules in 1988 to regulate the operation of underground storage tanks. By federal law, the State of Texas was directed to implement and enforce these rules. The Texas Natural Resource Conservation Commission (TNRCC) is the designated state agency for implementation and enforcement of these rules. It is illegal since January 1, 1990, to put product into non-certificated tanks. The current rule is TNRCC Rule, §334.5(b), General Prohibitions, Delivery, a copy of which is enclosed as Appendix C.

Under the certificate process, the owner and operator of the UST system must have sufficient insurance and must certify that the UST is in compliance with the current TNRCC rules regarding the petroleum storage tank system. The TNRCC then issues a registration certificate which would identify the tank that is in compliance.

TTTCA suggested that the third party ordering the delivery of the fuel should be liable also. In many cases, this will be the motor carrier's customer and a prominent oil company. There are approximately 35,000 facilities and 85,000 tanks in Texas and maybe 40% of them are not registered. So we still have a very serious enforcement problem at TNRCC.

Please refer to TTTCA Circular Letter No. 1241 for a complete analysis up through the filing of HB 2815 and HB 2816.

COMMENTS ON HB 2815

We request that each member, and especially the safety director of each company, review this proposed legislation carefully. Please send us any comments as soon as possible. Our fax number is (512) 479-8726.

The proposed legislation is slightly less onerous than the current law which is seen in the attached Appendix C. It also creates a presumption of prima facie evidence of compliance if the motor carrier can show a registration and or certificate of compliance.

However, this proposed legislation still falls short of our ultimate goal which was to make the third party completely liable. The party who orders the fuel delivered to a UST would, in our opinion, be the proper party to give full responsibility, along with the owner and operator of the UST.

HB 2816 - Relates to the fee on delivery of certain petroleum products and the termination of the petroleum storage tank program.

Its key elements are:

· 50% reduction of all fees currently listed under Section 26.3574(b) of the Water Code. Please see Appendix B for the complete text.

· Provides that after September 1, 2001, the TNRCC may not collect a fee which is currently imposed on the delivery of a petroleum product on withdrawal from bulk of that product.

· Provides for a reimbursement of the petroleum storage tank program if the balance of the petroleum storage tank remediation fund falls below $ 25 million.

· Further provides that the reimbursement program will expire September 1, 2003, and eliminates the program altogether.

· Proposed effective date is September 1, 1999.

TTTCA was involved from the beginning in trying to mold a usable and practical petroleum storage tank program which would not be burdensome to the tank truck industry. We are suggesting to Representative Junell that he make the following amendment to HB 2816 to add after the phrase "10,000 gallons", the language "or legal carrying capacity of the tank."

The current language states a fee for the delivery into a cargo tank having capacity of 8,000 gallons or more, but less than 10,000 gallons. We want to add the proposed language because there are some pieces of equipment that are over 10,000 gallons, but their legal carrying capacity would only be about 9,400 gallons.

CONCLUSION

Please send any comments regarding these two proposed bills to the Association by mail or fax as soon as possible.

Mailing Address: Patrick C. Long, Executive Director

Texas Tank Truck Carriers Association, Inc.

P.O. Box 2307

Austin, Texas 78768

Phone: (512) 472-6207

Fax: (512) 479-8726



Return to TTTCA Home Page


long@onr.com