ITEM 6: UPGRADING UNDERGROUND STORAGE TANKS -- FINAL CERTIFICATION OF EMERGENCY RULEMAKING AMENDMENTS TO TITLE 23, DIVISION 3, CHAPTER 16, SECTION 2662 AND 2664, CALIFORNIA CODE OF REGULATIONS (CCR), UNDERGROUND STORAGE TANK (UST) REGULATIONS RELATING TO THE USE OF BLADDERS TO UPGRADE USTS BY THE DECEMBER 22, 1998 DEADLINE.

DISCUSSION: The State Water Resources Control Board (SWRCB) is being asked to consider final certification of the emergency amendments to Sections 2662 and 2664 of Chapter 16 which became effective on December 26, 1997, and will expire on April 26, 1998 unless the proposed amendments are adopted for final certification. The SWRCB adopted the proposed amendments as emergency regulations at its November 18, 1997 meeting. A notice of proposed rulemaking regarding the proposed amendments was published in the February 20, 1998 California Regulatory Notice Register. February 20, 1998 was the beginning of the 45-day public comment period which will end on April 6, 1998. Any adverse comments (up to March 31) regarding the proposed regulatory action will be summarized and discussed at the April 1, 1998 workshop. Any additional adverse comments received between March 31 and April 6, 1998 will be summarized and discussed at the April 16, 1998 meeting.

In order to ensure their tanks meet standards which go into effect on December 22, 1998, owners of petroleum tanks may choose to either upgrade or replace their tanks. Section 2662(c) CCR authorizes tank owners to upgrade by having a lining sprayed onto the interior surface of their tanks to reinforce the tank walls and to protect against interior corrosion. This section also authorizes the installation of a bladder inside the tank as an upgrade option, however, Section 2664 requires the tank to be lined before installation of the bladder.

Bladder manufacturers believe the requirement to pre-line the tank is superfluous, adding unnecessary expense to the upgrade process and discouraging tank owners from using this technology without providing a benefit in return. They point out that bladder systems provide internal corrosion prevention measures and the monitoring method used for these systems provides superior protection against releases than a single-walled tank.

Available information from the U.S. Environmental Protection Agency and corrosion engineers, as well as information from the industry, supports the conclusion that pre-lining a tank is not necessary if the following provisions are included: the tank must have external cathodic protection, the tank walls must be free of thin areas or flaws, and the tank's interior surface must be smooth to ensure that the bladder is not likely to be punctured.

POLICY ISSUE: Should the SWRCB adopt final certification of the emergency amendments to Sections 2662, and 2664 of Title 23, Division 3, Chapter 16, CCR as proposed?

FISCAL IMPACT: none

RWQCB IMPACT: none

STAFF RECOMMENDATION: Adopt final certification of the emergency amendments to Sections 2662(c) and 2664(b) CCR to eliminate the requirement for lining a tank before installing a bladder system and to require that bladder systems have the protections listed above.

DRAFT March 23, 1998

WHEREAS:

1. Section 25299.3 of Chapter 6.7, Health and Safety Code (H&SC) authorizes the SWRCB to adopt regulations to implement the provisions of Chapter 6.7 relating to underground storage tanks (USTs).

2. Section 25292(d) H&SC requires that by December 22, 1998, all USTs installed before January 1, 1984 be upgraded or replaced to prevent releases due to corrosion or spills and overfills.

3. Sections 2662(c) California Code of Regulations (CCR) authorizes tank owners to use either interior lining or interior lining and bladders to upgrade their USTs. Section 2664(c) requires lining USTs before installing bladders.

4. Available information supports the conclusion that bladders alone, without interior lining, provide sufficient protection against releases and that the benefit from adding interior lining is not sufficient to warrant the requirement.

5. Requiring pre-lining of a UST discourages tank owners from installing bladders when, in fact, bladder systems are at least as protective of the environment as lined systems.

6. The SWRCB adopted the proposed amendments as emergency regulations at its November 18, 1997 meeting (non-substantial changes have been made since that meeting) , and these emergency regulations became effective on December 26, 1997. Unless final certification of the emergency regulations is adopted, the amendments will expire on April 26, 1998.

THEREFORE BE IT RESOLVED THAT:

The State Water Resources Control Board adopts final certification of the emergency amendments to Sections 2662 and 2664 of Chapter 16, Title 23 of the California Code of Regulations. Specifically, Sections 2662 and 2664 shall read as follows:

§ 2662. Requirements for Upgrading Underground Storage Tanks

(c)(2). Bladder system, interior lining, and cathodic protection -

(A) Bladder systems shall be installed in accordance with the requirements of section 2664.

(B). When upgrading a fiberglass or clad tank with a bladder system, interior lining and cathodic protection are not required if a special inspector and the local agency determine they are not necessary.

Authority: Health and Safety 25299.3, 25299.7

Reference: Health and Safety 25291 and 25296 and 40 CFR 280.1

§ 2664. Requirements for Using Bladder Systems

(b) Materials used in the bladder system and in the installation process shall be approved by an independent testing organization based on voluntary consensus standards, an industry code, or engineering standard for the applicable use of the bladder system. Evidence of this approval shall be provided to the local agency before the local agency authorizes the installation. The following conditions shall be met:

1. The bladder system shall be installed under the direct supervision of a representative of the bladder system fabricator or a contractor certified by the fabricator.
   
2. The entire interstitial space between the tank and the bladder shall be monitored in accordance with subsection 2632(c)(2).
   
3. Materials used in the bladder system shall be product-tight and compatible with the substance stored.
   
4. The bladder system shall include an internal striker plate (wear plate) which meets the requirements of section 2631(c).
   
5. If the underground storage tank is constructed of steel, cathodic protection shall be installed in accordance with section 2635(a)(2)(A) and, before installing a bladder system, a special inspector shall certify that the underground storage tank has sufficient structural integrity to seal the interstitial space between the bladder and the underground storage tank and provide secondary containment. The special inspector shall make this certification by entering and inspecting the entire interior surface of the tank and shall base this certification upon the set of procedures and criteria specified in 2663(b)(2), except that abrasive blasting is only required to the extent deemed necessary by manufacturers specifications, or the special inspector, to assess the structural integrity of the underground storage tank.
   
6. The bladder installer shall certify in writing to the local agency that sufficient measures have been taken to minimize or eliminate the potential for the underground storage tank or interstitial monitoring system components to puncture the bladder.
   
7. Before installing a bladder, thin areas or other flaws in the underground storage tank walls that need additional reinforcing shall be reinforced in accordance with section 2661(d).
   
8. If required by manufacturers' specifications or the special inspector, the underground storage tank shall be lined in accordance with section 2663 prior to installation of the bladder except only to the thickness deemed necessary by the more stringent requirement of the manufacturers' specifications or the special inspector.
   
9. (c). Before installing a bladder system in a steel tank, the tank interior shall be lined in accordance with section 2663 and shall be provided with cathodic protection as required by section 2635(a)(2)(A). The periodic inspection specified in subsection 2663(h) is not required unless the bladder system is removed for repairs or replacement. Unless the local agency determines otherwise, the limiting criteria specified in section 2663(b)(2)(B)(i) through (iv) do not apply if the lining is 250 mil fiberglass reinforced plastic or equivalent.

Authority: Health and Safety Code 25299.3, 25299.7

Reference: Health and Safety Code 25292, 25292.1, 40 CFR 280.21, 280.32(d), 281.33

The undersigned, Administrative Assistant to the Board, does hereby certify that the foregoing is a full, true, and correct copy of a resolution duly and regularly adopted at a meeting of the State Water Resources Control Board held on April 16, 1998.

_______________________________

Maureen Marché

Administrative Assistant to the Board