S.B. No. 900
 
 
 
 
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; [and]
               (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:
         Sec. 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 Section 26.343, Water Code; 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
  liquefied 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 Vessels
  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 Safety at
  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 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 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; 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 Performance Standards for Safety at
  Storage Vessels Program.
         SECTION 3.  This Act takes effect September 1, 2021.
 
 
 
 
 
  ______________________________ ______________________________
     President of the Senate Speaker of the House     
 
         I hereby certify that S.B. No. 900 passed the Senate on    
  April 29, 2021, by the following vote: Yeas 31, Nays 0; and that
  the Senate concurred in House amendments on May 27, 2021, by the
  following vote: Yeas 31, Nays 0.
 
 
  ______________________________
  Secretary of the Senate    
 
         I hereby certify that S.B. No. 900 passed the House, with
  amendments, on May 24, 2021, by the following vote: Yeas 145,
  Nays 0, one present not voting.
 
 
  ______________________________
  Chief Clerk of the House   
 
 
 
  Approved:
 
  ______________________________ 
              Date
 
 
  ______________________________ 
            Governor