No. 27196 (Amendment): R311-203. Underground Storage Tanks: Notification, New Installations, and Registration Fees

DAR File No.: 27196
Filed: 05/29/2004, 08:55
Received by: NL

 

RULE ANALYSIS

Purpose of the rule or reason for the change:

This proposed amendment removes the requirement that certified installation companies pay a $200 per tank installation fee in situations when the installation company does not receive any coverage under the Petroleum Storage Tank Fund; codifies the policy of the Executive Secretary (UST) regarding payment of past-due UST registration fees for issuance of a certificate of compliance when the facility owner/operator changes; and provides requirements for UST testing.

 

Summary of the rule or change:

In Subsection R311-203-3(c), adds wording to specify that the $200 per tank installation permit fee is paid only for a full UST installation and for certain work done on a tank that does not have a certificate of compliance. In Subsection R311-203-4(e), adds wording to specify that all past-due registration fees shall be paid when a certificate of compliance is issued or re-issued, and allow for enforcement discretion to decline active collection of past due fees when the tanks are closed within one year of the change of owner/operator. In Section R311-203-5, adds wording to provide requirements for tank, automatic line leak detector, containment sump, and cathodic protection testing, and to specify the information to be submitted by the tester with the test results.

 

State statutory or constitutional authorization for this rule:

Sections 19-6-105 and 19-6-408

 

Anticipated cost or savings to:

the state budget:

It is anticipated that the State Budget will lose approximately $1,000 per year in UST Installation permit fees due to the reduced number of tank installation projects that require payment of the $200 per tank installation fee. As a tank owner/operator, the State could save the $200 per tank fee in situations where the fee would no longer be required. The aggregate amount saved would depend on the number of UST installations for which the fee would no longer be due under the change. The proposed change regarding payment of UST registration fees before a certificate of compliance is issued puts into rule a policy that is already in place. This policy has generally been applied to previously-unknown underground storage tanks that have been found and reported. In the last 3 years, approximately $5,000 - $8,000 per year has been collected, and approximately $20,000 - $30,000 per year has been considered noncollectible. The amounts collected and considered noncollectible each year depend on the number of tanks found and the specific circumstances of each situation. As an underground storage tank owner, the state could be charged past-due registration fees for previously unknown tanks that are found on state property. The amount to be paid could range from $200 per tank to approximately $2,000 per tank, depending on the circumstances of the situation. The aggregate amount that might be paid would depend on the number of tanks found. The proposed requirements for testing of automatic line leak detectors and containment sumps could result in a yearly cost to the State of approximately $50 per test for electronic line leak detectors and approximately $100 per test for containment sumps when a sump sensor is used as a leak detector. The aggregate cost would depend on the number of state-owned tanks that would have to be tested. Few state-owned facilities would be affected, because most or all are already being tested annually.

 

local governments:

As a tank owner/operator, a local government could save the $200 per tank fee in situations where the fee would no longer be required. The aggregate amount saved would depend on the number of UST installations for which the fee would no longer be due under the change. As an underground storage tank owner, a local government could be charged past-due registration fees for previously unknown tanks that are found on its property. The amount to be paid could range from $200 per tank to approximately $2,000 per tank, depending on the circumstances of the situation. The aggregate amount that might be paid would depend on the number of tanks found. A yearly cost of approximately $50 per test for electronic line leak detectors and cost of approximately $100 per test for containment sumps when a sump sensor is used as a leak detector. The aggregate cost would depend on the number of local government-owned tanks that would have to be tested.

 

other persons:

Underground storage tank owner/operators would save the $200 per tank fee in situations where the fee would no longer be required. The aggregate amount saved would depend on the number of UST installations for which the fee would no longer be due under the change. These situations currently occur infrequently, approximately three to five times per year. An underground storage tank owner could be charged past-due registration fees for previously unknown tanks that are found on the owner's property. The amount to be paid could range from $200 per tank to approximately $2,000 per tank, depending on the circumstances of the situation. The aggregate amount that might be paid would depend on the number of tanks found. A yearly cost of approximately $50 per test for electronic line leak detectors and cost of approximately $100 per test for containment sumps when a sump sensor is used as a leak detector. The aggregate cost would be approximately $21,000 yearly to test the electronic leak detectors and sump sensors that are not currently being tested by certified individuals.

 

Compliance costs for affected persons:

The proposed change regarding payment of UST registration fees before a certificate of compliance is issued affects previously-unknown tanks that are found and reported. The registration fees that would be due if the owner were to qualify the tank for a certificate of compliance would be up to approximately $2000 per tank, depending on the age of the tank. If the owner were to permanently close the tank, and the Executive Secretary decided not pursue collection of the fees (generally because the cost of collection would exceed the amount to be collected), the cost to the owner would be the fees for the years he owned the tank ($200 up to approximately $2,000 per tank), and the cost of permanently closing the tank, approximately $2,000 - $3,000 per tank. The proposed testing requirements will require that all line leak detectors be tested annually. Because the interpretations of the Federal regulations regarding testing of electronic leak detectors, many of these are not currently being tested. The cost to test them would be approximately $50 per leak detector each year. When a containment sump sensor is used as a leak detector, the sump will also have to be tested for tightness. The cost of this test would be approximately $100 per sump per year.

 

Comments by the department head on the fiscal impact the rule may have on businesses:

The change most likely to have a significant impact on businesses involves the payment of UST registration fees for abandoned underground tanks that are found on property undergoing development. In almost all cases, these tanks are removed by the property owner. The cost of closure of the tanks is the principal fiscal impact, and the fees assessed are generally only for the time the current owner owned the property. The fees for previous years are generally considered non-collectible. Because the proposed change only codifies a policy already in place, no significant change in the current impact of these situations is anticipated. The proposed requirement for testing of line leak detectors and containment sumps will mean that some UST owner/operators who have not been testing the leak detectors or sumps will incur a cost to have them tested. Because most leak detectors are already tested yearly, the overall additional cost will be a small percentage of the total cost for testing all the leak detectors and containment sumps. Dianne R. Nielson, Ph.D., Executive Director

 

The full text of this rule may be inspected, during regular business hours, at the Division of Administrative Rules, or at:

Environmental Quality
Environmental Response and Remediation
168 N 1950 W
SALT LAKE CITY UT 84116-3085

 

Direct questions regarding this rule to:

Gary Astin at the above address, by phone at 801-536-4103, by FAX at 801-359-8853, or by Internet E-mail at [e-mail]

 

Interested persons may present their views on this rule by submitting written comments to the address above no later than 5:00 p.m. on:

07/15/2004

 

Interested persons may attend a public hearing regarding this rule:

7/06/2004 at 1:30 PM, Department of Environmental Quality, 168 N 1950 W, Room 101, Salt Lake City, UT

 

This rule may become effective on:

08/16/2004

 

Authorized by:

Dianne R. Nielson, Executive Director

 

 

RULE TEXT

R311. Environmental Quality, Environmental Response and Remediation.

R311-203. Underground Storage Tanks: Notification, New Installations, [and ]Registration Fees, and Testing Requirements.

R311-203-1. Definitions.

Definitions are found in Section R311-200.

 

R311-203-2. Notification.

(a) The owner or operator of an underground storage tank shall notify the Executive Secretary whenever:

(1) new USTs are brought into use;[ or]

(2) the owner or operator changes;[ or]

(3) changes are made to the tank or piping system; or

(4) release detection, corrosion protection, or spill or overfill [protection]prevention systems are installed, changed or upgraded.

(b) All notifications shall be submitted on the current approved notification form within 30 days of the completion of the work or the change of ownership.

(c) Notifications shall include the latitude and longitude of the facility.

(d) To satisfy the requirement of Subsection 19-6-407(1)(c) the certified installer shall:

(1) complete the appropriate section of the notification form to be submitted by the owner or operator, and ensure that the notification form is submitted by the owner or operator within 30 days of completion of the installation; or

(2) provide separate notification to the Executive Secretary within 60 days of the completion of the installation.

 

R311-203-3. New Installations, Permits.

(a) Certified UST installers who intend to perform any of the activities listed in R311-203-3(c) or R311-203-3(d)(1) through (4) shall notify the Executive Secretary at least 30 days before commencing the activity.

(b) The fees assessed under 19-6-411(2)(a)(i) shall be determined based on the number of full UST installations performed by the installation company in the 12 months previous to the fee due date. Installations for which the fee assessed under 19-6-411(2)(a)(ii) and R311-203-3(c) is charged shall count toward the total installations for the 12-month period.

(c) The UST installation company shall submit to the Executive Secretary an UST installation permit fee of $200 [for]when the following work is performed on an UST system that has not qualified for a certificate of compliance before the commencement of the work:

(1) each full UST system installation;

(2) the installation of underground product piping for one or more tanks at a facility, separate from the installation of one or more tanks at a facility;

(3) the internal lining of a previously-existing tank;

(4) the installation of a cathodic protection system on one or more previously-existing tanks at a facility where the structural integrity of the UST was required to be assessed, or there is no documentation of a properly working cathodic protection system on the UST within 10 years of the proposed upgrade;

(5) the installation of a bladder in a tank, or any other retro-fit, replacement, or installation that requires the cutting of a manway into the tank, or

(6) installation of other UST system components as determined by the Executive Secretary.

(d) The UST installation permit fee shall not be required when the following activities are performed separately from the activities listed in R311-203-3(c):

(1) installation of spill prevention devices;

(2) installation of overfill prevention devices;

(3) installation of a leak detection monitoring system;

(4) installation of an automatic line leak detector; or

(5) replacement or repair of valves, dispensers, or leak detection system components.

(e) When a new [tank]UST system, tank only, or product piping only is installed, the owner or operator shall submit to the Executive Secretary a site plat or an as-built drawing, to scale, which shall include: the excavation, buildings, tanks, product lines, vent lines, cathodic protection systems, tank leak detection systems, and product line leak detection systems.

(f) For the purposes of Sections 19-6-411(2)(a)(ii), 19-6-407(1)(c), and R311-203-2(d), an installation shall be considered complete when:

(1) in the case of installation of a new UST system, tank only, or product piping only, the new installation first holds a regulated substance; or

(2) in the case of installation of the components listed in Section R311-203-3(c)(3) through R311-203-3(c)(6), the new installation is functional and the UST holds a regulated substance and is operational.

(g) If, before completion of an installation for which an UST installation permit fee is required, the owner or operator decides to install additional UST system components, the installer shall notify the Executive Secretary of the change. When additions are made, the UST installation permit fee shall not be increased unless the original UST installation permit fee would have been higher had the addition been considered at the time the original fee was determined.

(h) The number of UST installation companies performing work on a particular installation shall not be a factor in determining the UST installation permit fee for that installation. However, each installation company shall identify itself at the time the UST installation permit fee is paid.

 

R311-203-4. Underground Storage Tank Registration Fee.

(a) Registration fees shall be assessed by the Department against all tanks which are not permanently closed for the entire fiscal year, and shall be billed per facility.

(b) Registration fees shall be due on July 1 of the fiscal year for which the assessment is [being ]made, or, for underground storage tanks brought into use after the beginning of the fiscal year, underground storage tank registration fees shall be due when the tanks are brought into use, as a requirement for receiving a certificate of compliance.

(c) The Executive Secretary may waive all or part of the penalty assessed under Subsection 19-6-408(5) if no fuel has been dispensed from the tank on or after July 1, 1991 and if the tank has been properly closed according to Sections R311-204 and R311-205, or in other circumstances as approved by the Executive Secretary.

(d) The Executive Secretary shall issue a certificate of registration to owners or operators for individual underground storage tanks at a facility if:

(1) the tanks are in use or are temporarily closed according to 40 CFR Part 280 Subpart G[ adopted by Section R311-202]; and,

(2) the underground storage tank registration fee has been paid.

(e) Pursuant to 19-6-408(5)(c), all past due registration fees, late payment penalties and interest must be paid before the Executive Secretary may issue or re-issue a certificate of compliance regardless of whether there is a new owner or operator at the facility. However, the Executive Secretary may decline active collection of past due registration fees, late payment penalties and interest if a certificate of compliance is not issued and the new owner or new operator properly closes the underground storage tanks within one year of becoming the new owner or operator of the facility.

 

R311-203-5. UST Testing Requirements.

(a) Tank tightness testing. The testing method must be able to test the UST system at the maximum level that could contain regulated substances. Tanks with overfill prevention devices that prevent product from entering the upper portion of the tank may be tested at the maximum level allowed by the overfill device.

(b) Automatic line leak detector testing. Line leak detectors shall be tested annually for functionality according to 40 CFR 280.44(a) and R311-200-1(b)(3). An equivalent test may be approved by the Executive Secretary. The test shall simulate a leak and provide a determination based on the test whether the leak detector functions properly and meets the requirements of 40 CFR 280.44(a). If a sump sensor is used as an automatic line leak detector, the sensor shall be located as close as is practical to the lowest portion of the sump.

(c) Containment sump testing. When a sump sensor is used as a leak detector, the secondary containment sump shall be tested for tightness annually according to the manufacturer's guidelines or standards, or by another method approved by the Executive Secretary.

(d) Cathodic protection testing. Cathodic protection tests shall meet the inspection criteria outlined in 40 CFR 280.31(b)(2), or other criteria approved by the Executive Secretary. The tester who performs the test shall provide the following information: location of test points, test results in volts or millivolts, pass/fail determination for each tank, line, flex connector, or other UST system component tested, the criteria by which the pass/fail determination is made, and a site plat showing locations of test points.

(e) UST testers performing tank and line tightness testing shall include the following as part of the test report: pass/fail determination for each tank or line tested, the measured leak rate, the test duration, the product level for tank tests, the pressure used for pressure tests, the type of test, and the test equipment used.

 

KEY: fees, hazardous substances, petroleum, underground storage tanks[*]

[July 14, 1997]2004

Notice of Continuation March 6, 2002

19-6-105

19-6-408