Texas codifies storage tank safety

MEET THE STANDARDS

STORAGE TANKS • THERE ARE THOUSANDS OF STORAGE TANKS IN TEXAS; ITS SENATE HAS DECIDED IT IS HIGH TIME THERE WERE SOME CLEAR RULES AND SAFETY STANDARDS IN PLACE

THE GOVERNOR OF Texas signed into effect the bipartisan Texas Senate Bill 900 (SB 900) this past 8 June and it went into effect on 1 September. The Bill directs the Texas Commission on Environmental Quality (TCEQ) to establish a programme to set and monitor standards for bulk storage tanks and, as it amends parts of the Water Code, to create and enforce safety requirements to protect ground and surface water, mitigate potential safety hazards and minimise catastrophic incidents in the event of an accident or natural disaster.

SB 900 was developed in the wake of the March 2019 fire at the Intercontinental Terminals (ITC) terminal in Deer Park that burned for a week, producing harmful air pollution, ground and surface water contamination and millions of gallons of hazardous waste; it also led to a temporary closure of the Houston Ship Channel and was investigated by the Chemical Safety Board (CSB). Industry is now widely referring to SB 900 as the ‘ITC rule’.

The Bill’s sponsors stated: “The ITC fire and several additional fires at similar facilities underscore the insufficiency of state safety measures. This incident in particular highlights the existing regulatory scheme’s failure to protect public health and safety, ground and surface water, and the environment. Currently, the state lacks a comprehensive program to oversee these complex facilities.”

Given the extent of the oil and chemical industry in the state of Texas and the immense number of storage tanks at processing plants and storage terminals, such a programme seems to be long-overdue. Furthermore, it is an illustration of the seriousness with which the authorities are taking the rule that TCEQ has been provided with funding for 50 additional personnel specifically for the programme.

INSPECT AND VERIFY On closer inspection, the impact on tank operators ought to be limited. The rule will require compliance with industry best practice and established standards, a level of safety oversight that all operators should already be achieving. These include, for example, API 650 and 653 and NFPA 30. The rule will in effect provide TCEQ with the jurisdiction to investigate those rules and standards that already apply. There will, though, certainly be an additional burden on tank operators in terms of reporting, inspections, certifications and fees. The level of those fees will be set at an amount sufficient to cover the reasonable costs of the programme.

TCEQ is charged with publishing its initial rule under the Bill by 1 September 2023 and industry will have until 1 September 2027 to meet its requirements, register with TCEQ and report to TCEQ its current compliance status

THE MARCH 2019 FIRE AT THE ITC TERMINAL IN DEER

PARK HAS GENERATED A LOT OF TALK AND PAPER, WITH

for existing tanks. Any new tanks entering service after that date must be registered within 30 days of starting operations.

Owners or operators of storage tanks must comply with the programme’s requirements on completion of the next regularly scheduled out-of-service maintenance of each tank and must certify compliance status no later than 1 September 2037. Any modifi cations or retrofi ts necessary for compliance with the programme should be made during these out-of-service maintenance periods. The compliance status will need to be re-certifi ed every ten years thereafter. TCEQ will conduct on-site inspections of all facilities at least every fi ve years to determine compliance.

WHAT’S IN, WHAT’S OUT The amendments to the Water Code created by the Bill are very specifi c about the scope of the programme. It applies to aboveground tanks with a capacity of 21,000 gal (80 m3) or more, used to store ‘a regulated substance’ (as already defi ned), and located at or part of a petrochemical plant, petroleum refi nery or bulk storage terminal (which includes end-of-line pipeline terminals).

Signifi cantly, the programme covers only atmospheric tanks; in addition, crude oil and natural gas gathering tanks, heated tanks and those used for the storage of wastewater are not in scope. The programme also excludes tanks that are already regulated under federal rules, including the Surface Mining Control and Reclamation Act, the Federal Food, Drug and Cosmetic Act, or Pipeline and Hazardous Materials Safety Administration (PHMSA) provisions.

Conversely, TCEQ is charged establishing its performance standards for safety with reference to other federal statutes and regulations, including the Clean Air Act’s Risk Management Plan rule; the Resource Conservation and Recovery Act’s requirements for treatment, storage and disposal facilities; the Spill Prevention, Control and Countermeasure Regulations; and the Environmental Protection Agency’s (EPA) Risk Management Plan rules.

Among other things, this will place a clear regulatory requirement, enforceable by TCEQ, for tank owners and operators to have in place spill control plans, overfi ll protection devices and, for low-fl ash products, fi re suppression systems. Again, these should already be in place but TCEQ will now have a clear jurisdiction to inspect for compliance.

The full text of the Bill can be found at https://legiscan.com/TX/text/SB900/ id/2406365.