: TWENTY-THIRD LEGISLATURE OF THE VIRGIN ISLANDS a : Territory of the Virgin Islands . REGULAR/SPECIAL SESSION 20. Biro. 23-020? | LAN h3-07H/ ct Date: G, Hf Va Short Title: To amerid Title 12, Virgin Islands Code, by adding Chapter 16, pertaining to Under- ground Storage Tanks and for other related purposes LEGISLATIVE HISTORY (a) Introduced and sent to Committee on...........0...c00ccceeeeceeeseeceeees Dates ee te-os bets ers er Cee noida say nacabens (b) Reported from Committee and sent to Rules on...........sssscsssssssesessesessesessesseceseseesereeceveececeseeceseceece (G) iM eReported trom Conmnitics OW RUIES «1, sceccsczsnccsicscaivesenacclvtetdavets sl easse. he secs cccse.concessdec (d) Recalled from Committee by Speclali Orden. teecenecmn eeu nessye sae eee meee te CGS Sip ire teed et Merce la Satake seeder entc cn a desc nesdllvcnansaw icc deh ger ek sau dtu cenceeloceesee aac OPA eet dnt Cie aaa tax cent Ahocst lectern tipuetetedteaied | cw Me eee tN GN a steed Gate NOr OM es sees eons anpnaniens teu rnewrpemmivecaweleasaviveals basis ietinterebncses, dnc. eee (h) Reconsidered by Legislature and passed or rejected OVER GOVeInOores! VEtO: ONIN. carsales sates etinescce wm on enet See geaeaNe Melo Shots orca etiaeevae leone en: MEMBERS YEA; NAY NOT VOTING ABSENT BENNERSON, Gregory A. /Y | BERRY, Lorraine L. BRYAN, Adelbert M. COE, Donald “Ducks” ‘ \ T DAVID, Roosevelt St. C. DONASTORG, Adlah “Foncie” GOLDEN, Violet Anne GOMEZ, Judy M. GOODWIN, George E. HANSEN, Alicia “Chucky” JN. BAPTISTE, Norman JONES, David S. LIBURD, Almando “Rocky” PETRUS, Allie-Allison RICHARDS Vargrave A. REPAIRS, PS Certified true and correct / y 04/1* ‘00 -AMENDED AND REPORTED OUT TO THE FLOOR 03/0: 00 - HELD FOR 20 DAYS 02/24/00 - HELD UNTIL NEXT MEETING 01/28/00 - REPORTED OUT THE COMMITTEE ON RULES BILL NO. 93-00-0/ Twenty-Third Legislature of the Virgin Islands of the United States JANUARY 21, 2000 To amend Title 12, Virgin Islands Code, by adding chapter 16, pertaining to Underground Storage Tanks and for other related purposes PROPOSED BY: Senator Adlah “Foncie” Donastorg oxy BE IT ENACTED by the Legislature of the Virgin Islands: SECTION 1. Title 12, Virgin Islands Code, is amended by adding thereto chapter 16 to read as follows: “CHAPTER 16, UNDERGROUND STORAGE TANKS SECTION ANALYSIS 651 Short title 652 Declaration of purpose 653 Definitions 654 Powers and duties 655 Registration of underground Storage Tanks; renewal fees 656 Transfer of registration; notice of change of registration information COON OO AWN = SON Oo aGArakQARHN = a. NNN NNNNBBE_E_ EEE EO OGMAABON=BWOWOAN AO UAWN AO 657 Placement of new underground storage tanks systems 658 New underground storage tank systems; permits 659 Existing underground storage tanks systems: permits 660 Duration of permit; fees 661 Operating requirements for all underground storage tank systems 662 Non-operational underground storage tanks; tank closure 663 Certification; renewal; re-certification; reciprocity; fees 664 Certificate classification; denial, suspension, or revocation of certification; proof of insurance 665 Recording of Underground Storage Tank in land records 666 Tank integrity tests 667 Release detection 668 Reporting, investigating and assessing releases, spills and overfills 669 Financial Responsibility 670 Corrective Action 671 Cost recovery by Territory 672 Environmental Assurance Fee 673 Record keeping; furnishing information 674 Inspection; right of entry 675 Prohibited acts 676 Emergency orders 677 Administrative proceedings 678 Review 679 Enforcement 680 Penalties 681 Public participation 682 Confidentiality 683 Field citation authorization 684 Virgin Islands Underground Storage Tank Revolving Trust Impress Account §651. Short title This chapter may be cited as the Virgin Islands Underground Storage Tank Act. §652. Declaration of purpose The ground and surface waters of the United States Virgin Islands are a significant and essential portion of the natural resources of the territory protected by various chapters of this title. The failure of underground systems for the storage and handling of petroleum liquids, related sludge and other chemicals may result in the significant contamination of these resources, as well as hazards to human health and the environment. It is the purpose of this chapter to regulate in the public interest underground storage tanks within the territory so as to prevent ground and a COON OG AWN = NN-VYQHNNN ND 2 2B 2 FA A ew A BD OoTdeAh_WwnNnNomeodnmenrwseoddaAhQhN = surface water contamination, as well as soil or subsoil contamination from the failure of underground storage tank systems. §653. Definitions As used in this chapter: (a) The term, ‘abandoned underground storage tank’ means an underground storage that: (1) is not intended to be returned to service; (2) has been out of service for more than one year; (3) has been rendered permanently unfit for use; or (4) has not been subjected to tank closure consistent with the provisions of this chapter. (b) The term, ’above-ground release’ includes any release to the surface of the land or to surface water, releases from the above-ground portion of an underground storage tank system and about ground releases associated with overfills and transfer operations as the regulated substance moves to or from an Underground Storage Tank system. (c) The term, ‘Act’ means Virgin Islands Underground Storage Tank Act. (d) The term, ‘ancillary equipment’ means any devices including, piping, fittings, flanges, valves, and pumps used to distribute, meter, or control the flow of regulated substances to and from as underground storage tank. (e) The term, ‘below-ground release’ means any release to the subsurface of the land and to ground water. This includes, but is not limited below- ground portions of an Underground Storage Tank system and below ground releases associated with overfills and transfer operations as the regulated substance moves to or from an UST system. (f) The term, “cathodic protection” means a technique to prevent corrosion of a metal surface by making that surface the cathode of an electrochemical cell. ed COON OUAWRHN =. NUNN NNUNNY 2 2 2B EEA i A BD OoTAh_WNmro*eoeaworwouwiraWhHN = (g) The term, ‘certification’ means the recognition by the Department that a person is competent and thus authorized to perform or supervise the performance of any task consistent with the provisions of this chapter and his certificate classification. (h) The term, ‘Commissioner’ means the Commissioner of the Department of Planning and Natural Resources or the Commissioner’s designee. (i) The term, ‘corrective action’ means those actions necessary to protect human health and the environment in the event of a release from an UST System. Corrective action includes those activities required for response to and cleanup of regulated substances from underground storage tanks, including, initial response, initial abatement measures and site check, initial site characterization, free product removal, investigations and remedial actions to clean up soil, subsoil, surface water and ground water and preparation and implementation of a corrective action plan which shall include actions necessary to monitor, assess and evaluate the effectiveness of remedial action after a release has occurred. G) The term, ‘Department’ means the Virgin Islands Department of Planning and Natural Resources. (k) The term,’ excavation zone’ means the volume containing the tank system and back-fill material bounded by the ground surface, walls and floor of the pit and trenches into which the UST system is placed at the time of installation. (1) The term, ‘existing underground storage tank system’ means a tank system used to contain an accumulation of regulated substances or for which installation has commenced on or before December 22, 1988. Commencement of Installation means: (A) The owner or operator has obtained all federal and territory local approvals or permit necessary to begin physical construction of the site or installation of the tank system and if: (B) Either a continuous on-site physical construction has begun; or = eeoanrogaAabQh =. NNN NB NNNYDN 2 2 A FA iv 2 FD OoTdeRhi_WNwrao*ocamervwoaoauw»nrnrhwn =-_ (C) The owner or operator has entered into contractual obligations, which cannot be canceled or modified without substantial loss, for physical construction at the site or installation of the tank system to be completed within a reasonable time. (m) The term, ‘free product’ means a regulated substance that is present as a non- aqueous liquid, e.g. liquid not dissolved in water. (n) The term,’ Hazardous substance UST system’ means an underground storage tank system that contains a hazardous substance defined in section 101 (14) of the federal Comprehensive Environmental Response, Compensation and Liability Act of 1980, but does not mean a substance regulated as a hazardous waste under subtitle C of the Resource Conservation and Recovery Act, or a mixture of such a substance and petroleum, and which is not a petroleum system. (0) The term, ‘maintenance’ means the normal operational upkeep to prevent an underground storage tank from releasing product. (p) The term, ‘motor fuel’ means petroleum or a petroleum-based substance that is motor gasoline, aviation gasoline, No. 1 or No. 2 diesel fuel, or any grade of gasohol, and is typically used in the operation of a motor engine. (q) The term, ‘monitoring system’ means a system capable of detecting leaks or discharges, or both leaks and discharges, other than an inventory control system, used in conjunction with an UST system and tightness testing. (1) The term, “new tank system’ means a tank system that will be used to contain an accumulation of regulated substances and for which installation has commenced after December 22, 1988. See, ‘existing tank system in subsection (k) of this section. (s) The term, ‘non-operational underground storage tank’ means any underground storage tank, which contains no, regulated substances or from which no regulated substances are dispensed. aa CO OnN OO AON = NUN NYNNUNNNY 2 2B 2 ee ew AB BD OoTgdeRhiWNwrod*oeomwnrnrwos»rArhbowdwn = 14 $657. Placement of new UST system (a) All UST systems installed after the effective date of this chapter shall be located a distance not less than 100 feet from a water well or other source of groundwater. (b) In areas where the water level is less than six (6) feet from the bottom of excavation for the installation of any UST system, a sheet of impermeable material shall be installed around the perimeter of the excavation. (c) All underground storage tanks installed in areas of occasional high water tables shall be properly secured to prevent the tank from floating. (d) An underground storage tank may not be installed below the water level of the area. $658. New UST systems; permits (a) It is unlawful for an owner or operator to use or operate an underground storage tank system that is installed after the effective date of this chapter without first having obtained a permit issued by the Commissioner. (b) A permit to use or operate an UST system may not be issued unless: (1) the tank, whether of single or double-walled construction, is properly designed and constructed, and any portion underground that routinely contains product is protected from corrosion, in accordance with a code of practice developed by a nationally recognized association or independent testing laboratory, and; (A) will prevent releases due to corrosion, structural failure, or manufacturing defects for the operational life of the tank; (B) is cathodically protected against corrosion, constructed of non- corrosive material, steel clad with a non-corrosive material, or designed in a manner to prevent the release or threatened release of any stored substance; and = COON OG AWN = NN NO NNONNDUVN 2 BB A FES em& BB BD OoTdwhl wWwNnNbB modenmamnrnweodseaAaWNRKN = 15 (C) the material used in the construction or lining of the tank is compatible with the substance to be stored. (2) such piping that routinely contains regulated substances and is in contact with the ground is properly designed, constructed, and protected from corrosion in accordance with a code of practice developed by a nationally recognized association or independent testing laboratory or as may be prescribed by regulation; (3) spill and overfill prevention equipment, as specified by the Department or by regulation, has been properly installed and will prevent the release of product into the environment in the event of such occurrence; (4) An owner and operator has ensured that one of the following methods of certification, testing, or inspection has been used to demonstrate compliance with subsections (b)(1) and (b)(2) of this section: (A) The installer has been certified or licensed by the tank and piping manufacturers; or (B) The installer has been certified or licensed by the Department; or (C) The installation has been inspected and certified by a registered professional engineer with education and experience in UST system installation; or (D) The installation has been inspected and approved by the Department; or (E) All work listed in the manufacture’s checklist has been completed; or (F) The owner and operator have complied with another method of ensuring compliance with subsections (b)(1) and (b)(2) of this section that is determined by the Department to be no less protective of human health and the environment.” 1. Page 39, beginning on line 10, insert a new section 684 to read as follows; “Section 684. Virgin Islands Underground Storage Tank Revolving Trust Impress Account = COON OU AWN = NNAVONNNNBBA2W_E_EQ_ ED = 2B BD OqgAhWANBZOODCAOAnN OU AWD = 16 (a) There is established the Virgin Islands Underground Storage Tank Revolving Impress Account (hereinafter the “Account’’). The Commissioner shall be the responsible for the account. (b) The account shall consist of all underground storage tank registration fees collected pursuant to section 655 of this chapter, all initial certification service fees, re-certification fees and late filing fees collected pursuant to section 663 of this chapter, all environmental assurance fees collected pursuant to section 672 of this chapter, all fund disbursements that have been recovered pursuant to the provisions of this chapter, all funds available for use through the Federal Leaking Underground Storage Tank Trust Fund or any other funding available through federal law or from any other funding source. (c) Disbursements from the account shall be made from the Account by the Commissioner only for the following purposes; (1) In the event of a release or threat of release of a regulated substance from a petroleum UST system, to take emergency action necessary to assure that the public health or safety is not threatened; (2) Where the owner or operator has not been identified or is unable or unwilling to perform corrective action, to take preventative or corrective action where the release of a regulated substance presents and actual or potential threat to human health or the environment. However, the cost for providing for items (1) and (2) of this subsection shall not exceed $2,000,000; (3) To provide compensation for the property damage of third parties affected by items (1) and (2) of this subsection. However; (A) A property owner shall not be considered a third party if the property was transferred by the owner or operator of a UST system in anticipation of damage due to a release; ah COO ON OU AWD = NNAONNNNBBBWE_Q_ De BB BD Oqahl_ ANB Ocanoauhwnhn = 17 (B) Third party liability property damage shall be reimbursed based on the rental costs of comparable property during the period of loss of use up to a maximum amount as established by regulation of the Department; (C) In the case of property that has been destroyed as a result of a regulated substance, reimbursement shall be an amount necessary to replace, restore or repair the destroyed property, whichever is less; (D) Loss of business or damages as a result thereof is not recoverable under the provisions of this section; (E) Compensation under the provisions of this item shall not exceed a total of $2,000,000 per occurrence and shall not include any claim for attorney’s fees, punitive damages, or damages for mental anguish; (4) To pay all necessary costs for the administration of the account; (5) To reimburse eligible owners or operators who have completed and provided corrective action as provided under the provisions of this chapter; and (6) To provide payments to contractors hired by the Department to provide corrective action for regulated substances from UST systems. (c) The Commissioner shall provide to the Governor and the Legislature an accounting of all of the deposits and disbursements from the account, on an annual bases. (5) all tanks, connected piping and ancillary equipment have been properly installed in accordance with the provisions of this chapter and inspected and approved by the Department. The requirements specified in this subsection do not affect the necessity to comply with any other applicable provisions of the Virgin Islands Code, or rules and regulations promulgated thereunder, including, the provisions of the Fire Prevention Code set forth in chapter 9 of title 23. on oah WN = 18 $659. Existing UST system; permits (a) All existing UST systems must comply with one of the following requirements by December 22, 1998, and may not be operated beyond that date without having been issued a permit by the Commissioner : (1) new UST system performance standards pursuant to the provision of section 657, subsection (b) of this chapter; (2) tank upgrading requirements as specified by regulation, of which continued operation of the UST system shall be subject to the issuance of a permit by the Department; or (3) closure and corrective action requirements as provided by this chapter. $660. Duration of permits; fees (a) Permits issued pursuant to this chapter shall be issued for a specified term, as prescribed by regulation, but such a permit may not be issued for more than five years. Upon expiration of a permit, the Commissioner may issue a new permit following a review by the Department in accordance with such rules and regulations as may be prescribed. (b) The Commissioner, by regulation, may establish and collect reasonable fees in amounts sufficient to cover the cost of processing permit applications, renewal of permits and for the processing of late applications for permit renewal. §661. Operating requirements for all UST systems. All owners and operators of UST systems for the protection of human health and the environment shall comply with all regulations promulgated by this Department which are no less stringent than the corresponding federal requirements to ensure that: (a) releases due to spilling and overfilling do not occur; (b) all steel UST systems with corrosion protection are in compliance with all territorial and federal requirements and operated and maintained to continuously provide protection from corrosion for as long as the UST system is used to store a regulated substance;