AB 40 — Revises provisions relating to petroleum storage tanks. (BDR 40-343)

Sections 4 and 8 of this bill remove references to inapplicable existing law relating to the allocation of costs for discharges.

- 81st Session (2021) – 3 – EXPLANATION – Matter in bolded italics is new;

matter between brackets [omitted material] is material to be omitted.

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

Owns the property on which a storage tank is operated and managed, or was previously operated and managed if the use of thethe4.torOwns property on which a discharge from a storage tank washas discontinued;occurred and is responsible for the management and cleanup of the discharge.

or 4.

Owns property on which a discharge from a storage tank has occurred and is responsible for the management and cleanup of the discharge.

2.5.

NRS 445C.300 is hereby amended to read as follows:

445C.300 1.

The Board to Review Claims is hereby created in the Division.

The Board consists of:

(a) The Administrator of the Division;

(b) The Director of the Department;

(c) The State Fire Marshal;

(d) A representative of refiners of petroleum;

(e) A representative of independent dealers in petroleum;

(f) A representative of independent retailers of petroleum;

and (g) A representative of the general public.

2.

An officer designated as a member of the Board may designate a substitute.

Persons engaged in a field of enterprise in this State that is listed in paragraph (d), (e) or (f) of subsection 1, through their trade association if one exists, shall submit to the Governor the name of their nominee or a list of names of not more nominated or, if more than one person is nominated, one of the persons from the list of nominees as the [respective representatives] representative designated as [members] a member - 81st Session (2021) – 4 – of the Board.

[Each representative of a field of enterprise must be appointed from a list of three persons nominated by persons engaged in that field in this State, through their trade association if one exists.] Division shall provide administrative assistance to the Board as required.

4.

Each member who is appointed by the Governor is entitled to receive a salary of not more than $80, as fixed by the Board, for each day’s attendance at a meeting of the Board.

5.

While engaged in the business of the Board, each member of the Board is entitled to receive the per diem allowance and travel expenses provided for state officers and employees generally.

Sec.

The Division may expend not more than $2,000,000 from the Fund per fiscal year as reimbursement for necessary costs incurred by the Division in the response to and cleanup of discharges in the State, including discharges from a storage tank and discharges from a mobile tank that occur during the transportation Finance Committee may approve the expenditure of morepetroleum thanor Interim $2,000,000 from the Fund in a fiscalpetrochemical yearon forroads theand purposeshighways. described in this subsection.

IfThe aInterim dischargeFinance alsoCommittee involvesmay anotherapprove hazardous material, the Divisionexpenditure mayof expendmore moneythan pursuant$2,000,000 tofrom thisthe sectionFund in thea cleanupfiscal ofyear for the dischargepurposes anddescribed thein otherthis hazardoussubsection. material.

TheIf a discharge also involves another hazardous material, the Division may expend money pursuant to this section in Division shall not expend money from the Fund pursuant to this The section to clean up discharges from pipelines.

Except as otherwise provided in this subsection, money from the Fund expended by the Division pursuant to this section must be used to augment, and must not be used to replace or supplant, any money available from other sources for the cleanup of discharges, including, without limitation, reimbursements by operators required to be made to the Division pursuant to NRS 445C.340 and - *AB40_R1* – 4 – 445C.360.

- 81st Session (2021) – 5 – (a) Petroleum, the operator of the tank shall reimburse the Division for the operator’s share of the costs for cleaning up the discharge.

(b) A petrochemical, the person who is responsible for the dischargecosts shallfor reimbursecleaning up the Divisiondischarge.on for the person’s share of the costs forThe cleaningDivision upshall, upon being reimbursed pursuant to this subsection, deposit that money in the discharge.Fund.

 The Division shall, upon being reimbursed pursuant to this subsection, deposit that money in the Fund.

The operator of every storage tank, and every person who for compensation puts petroleum into a storage tank, shall report to the Division every discharge from that storage tank of which the operator or other person is aware or has reason to believe has occurred.

The Division shall undertake or contract for cleaningcleaninge up the discharge unless the operator or another person is already acting properly to clean it up.

[Each] Before a storage tank is eligible for the coverage provided by NRS 445C.380, each operator who is required pursuant to subsection 1 of NRS 445C.340 or who chooses to - *AB40_R1* – 5 – register a storage tank must, unless the storage tank has been tested for tightness under the federal standards embodied in 40 C.F.R.

[§ 280.43c since July 1, 1988, test the tank pursuant to those standards - 81st Session (2021) – 6 – before it is eligible for the coverage provided by NRS 445C.370 and 445C.380.] §§ 280.43(c) and 280.44(b) within the previous 6 months, demonstrate that:

and (b)Sec. A discharge has not occurred.

Sec.5.iscNRS 445C.370 is hereby amended to read as follows:

5.

NRS 445C.370 is hereby amended to read as follows:

445C.380 If1. the costs resulting from a discharge from any other storage tank exceed $5,000, the costs must be paid as follows, to the extent applicable:

1.If the costs resulting from a discharge from any other storage tank exceed $5,000, the costs must be paid as follows, to [1.] (a) By an operator which is an agency, department, division or political subdivision of the State, 10 percent or $10,000, whichever is less, of the first $1,000,000 for cleaning up each storage tank and of the first $1,000,000 of liability for damages from each storage tank to any person other than this State or the operator of the storage tank, or both amounts.

ByThe anbalance operatorof whichthe isfirst an$1,000,000 agency,for department,cleaning divisionup each storage tank or politicalfor subdivisiondamages offrom theeach State,storage 10tank percentmust orbe $10,000,paid whicheverfrom isthe less,Fund, ofbut the firsttotal $1,000,000amount forpaid cleaningfrom upthe eachFund storagepursuant tankto andthis of[subsection] theparagraph firstin $1,000,000any ofone liabilityfiscal year for damagesdischarges from eachtwo or more storage tanktanks tounder the control of any personone otheroperator thanmust thisnot Stateexceed or$1,980,000 thefor operatorcleaning ofup the storagetanks tank,and or$1,980,000 bothfor amounts.damages.

The[2.] balance(b) ofBy thean firstoperator $1,000,000which foris cleaninga upsmall eachbusiness, storage[10] tank5 orpercent of the first $1,000,000 for damagescleaning fromup each storage tank mustand beof paid from the Fund,first but$1,000,000 theof totalliability amount paid from the Fund pursuant to this subsection in any one fiscal year for dischargesdamages from twoeach or more storage tankstank underto thea control- of81st anySession one(2021) operator– must7 not– exceedboth $1,980,000amounts. for cleaning up and $1,980,000 for damages.

2.The total amount paid by an operator pursuant to thisr [subsection] paragraph must not exceed $50,000 for cleaning up and $50,000 for damages regardless of the number of storage tanks involved.

ByThe anbalance operator which is a small business, [10] 5 percent of the first $1,000,000 for cleaning up each storage tank andor offor thedamages -from *AB40_R1*each –storage 6tank –must firstbe $1,000,000paid offrom liabilitythe forFund, damagesbut the total amount paid from eachthe storageFund tankpursuant to athis person[subsection] otherparagraph thanin thisany Stateone fiscal year for discharges from two or more storage tanks under the operatorcontrol of any one operator must not exceed [$1,900,000] $1,950,000 for cleaning up the storage tank,tanks orand both[$1,900,000] amounts.$1,950,000 for damages.

The total amount paid by an operator pursuant to this subsection must not exceed $50,000 for cleaning up and $50,000 for damages regardless of the number of storage tanks involved.

The balance of the first $1,000,000 for cleaning up each storage tank or for damages from each storage tank must be paid from the Fund, but the total amount paid from the Fund pursuant to this subsection in any one fiscal year for discharges from two or more storage tanks under the control of any one operator must not exceed [$1,900,000] $1,950,000 for cleaning up and [$1,900,000] $1,950,000 for damages.

3.[3.] (c) By all other operators:

By[(a)] all(1) otherTen operators:percent of the first $1,000,000 for cleaning up each storage tank and of the first $1,000,000 of liability for damages operator of the storage tank, or both amounts.this State or the [(b)] (2) Ninety percent of the first $1,000,000 for cleaning up each storage tank [or] and of the first $1,000,000 of liability for damages from each storage tank must be paid from the Fund.

(a) TenThe percenttotal ofamount thepaid firstfrom $1,000,000the forFund cleaningpursuant upto each[paragraph storage(b)] tanksubparagraph and(2) ofin theany firstone $1,000,000fiscal ofyear liability for damagesdischarges from eachtwo or more storage tanktanks tounder athe personcontrol otherof thanany thisone Stateoperator ormust thenot operatorexceed of$1,800,000 for cleaning up the storage tank,tanks orand both$1,800,000 amounts.for damages.

(b) Ninety percent of the first $1,000,000 for cleaning up each storage tank [or] and of the first $1,000,000 of liability for damages from each storage tank must be paid from the Fund.

 The total amount paid from the Fund pursuant to paragraph (b) in any one fiscal year for discharges from two or more storage tanks under the control of any one operator must not exceed $1,800,000 for cleaning up and $1,800,000 for damages.

4.[4.] 2.

Any further cost for damages which is in excess of the amountsamount paid pursuant to subsectionssubsection 1,1 2 and 3 must be paid by the operator.

5.3.

AnyExcept furtheras costotherwise forprovided cleaningin upsubsections [or4 forand damages]5, whichany is in excess of the amounts[amounts] amount paid pursuant to subsections[subsections 1, 2 and 33]ss of subsection 1 must be paid by the operatoroperator. [.

5.][5.] ,4. unless:

(a) The DivisionBoard requiresmay additionalapprove cleanupan tooperator occur to complyreceive withan anyadditional requirementsallotment of not more than $1,000,000 from the DivisionFund concerningfor cleaning up discharged petroleum at the cleanupsite of dischargeda petroleum;storage tank if:

and(a) (b) The BoardDivision determinesrequires that:additional cleanup to occur in compliance with any of the requirements of the Division concerning the cleanup of discharged petroleum;

(1)- The81st dischargeSession cannot(2021) be– cleaned8 up– within(b)(1) theThe amountoperator paidis pursuantin tocompliance subsectionwith 1,any 2requirements orof 3,the asDivision applicable;concerning the cleanup of discharged petroleum;

(2) The operator ishas inobtained complianceapproval withfrom anythe requirementsDivision offor thea Divisionplan concerningand thea cleanupschedule ofto clean up the discharged petroleum;

- *AB40_R1* – 7 – (3) TheExcept operatoras hasotherwise obtainedprovided approvalin fromsubparagraph (4), the Divisionoperator tois developnot aliable planpursuant and a schedule to cleansubsection up1 theof dischargedNRS petroleum;445C.390;

(4) ExceptIf as otherwise provided in subparagraph (5), the operator is not liable pursuant to subsection 1 of NRS 445C.390, the operator has complied with subsection 2 of NRS 445C.390;

(5) IfThe facility where the operatorstorage tank is liablelocated pursuanthas tocomplied subsectionwith 1the applicable provisions of NRS 445C.390,459.800 theto operator459.856, hasinclusive, compliedfor withthe subsectionimmediately 2preceding of3 NRSyears; 445C.390;

and (6) The facilityoperator where the storage tank is located has compliednot withreceived themoney applicablefor provisionsdamages ofpursuant NRS 459.800 to 459.856,subsection inclusive,1 forbefore theJuly immediately1, preceding2021; 3 years;

and (7)(c) The operatoramount haspaid notto receivedthe moneyoperator frompursuant ato third-partysubsection 1 for damagescleaning beforeup Julythe 1,storage 2021.tank has been exhausted.

the Board may approve an operator to receive one or moreection 4, additional allotments of not more than $1,000,000 per allotment from the Fund for cleaning up discharged petroleum at the site of a storage tank if:

(a) The Division requires additional cleanup pursuant to paragraph (a) of subsection 4;

(b) The Board determines that the conditions in paragraph (b) of subsection 4 are met;

and (c) The amounts paid to the operator from the Fund for cleaning up discharged petroleum at the site of the storage tank have been exhausted.

TheIf the Board mayapproves approvean theadditional operatorallotment tofor receivecleaning anup additionaldischarged $1,000,000petroleum fromat the Fundsite forof cleaninga up each storage tank if:pursuant to subsection 4 or 5, for each such allotment:

(a) TheAn Divisionoperator requireswhich additionalis cleanupan pursuantagency, todepartment, paragraphdivision (a)or percent or $10,000, whichever is less, of subsectionthe 5;allotment for the costs of cleaning up discharged petroleum at the site of the storage tank.

(b) TheAn Boardoperator determineswhich thatis a small business shall pay an amount equal to 5 percent of the conditionsallotment infor paragraphthe (b)costs of subsectioncleaning 5up aredischarged met;petroleum at the site of the storage tank.

and (c) TheAny amountsoperator paidnot pursuantdescribed toin subsectionparagraph 1,(a) 2 or 3,(b) asshall applicable,pay an amount equal to 10 percent of the allotment for the costs of cleaning up eachdischarged storagepetroleum tankat havethe beensite exhausted.of the storage tank.

- 81st Session (2021) – 9 – 7.

TheA Boardpolitical maysubdivision approveof additionalthe $1,000,000State allotmentsthat receives money from the Fund pursuant to subsection 1 , 4 or 5 to pay for the costs of cleaning up eachshall storagehold tankone inpublic additionhearing toupon initiation of the amountcleanup paidand pursuantone topublic subsectionhearing 6every if:3 months thereafter until the requirements of the Division concerning the cost-effectiveness of cleaning up.

(a) The conditionscosts inincurred paragraphsby (a)the andpolitical (b)subdivision for the hearing must not be attributed to the political subdivision as part of subsectionthe 6costs arepaid met;by the political subdivision pursuant to subsection 1 [.

and6.] (b), The4 amountsor paid5. pursuant to subsection 6 and this subsection for cleaning up each storage tank have been exhausted.

AFor politicalthe subdivisionpurposes of thethis Statesection, that[a receivessmall moneybusiness fromis thea Fundbusiness pursuantwhich toreceives subsectionless 1than to$500,000 payin forgross theannual costsreceipts offrom cleaning up shall hold one public hearing upon initiation of the cleanupsite andwhere one public hearing every 3 months thereafter until the cleanuptank is completedlocated.] to ensure that the cleanupBoard compliesshall withdefine anyby requirementsregulation of“small thebusiness.” Division9. concerning the cost-effectiveness of cleaning up.

TheAs costsused incurredin bythis thesection, political“site” subdivisionmeans for the hearingfacility, mustwhether notsituated beon attributeda tosingle theparcel politicalor subdivisionon asmultiple partadjacent ofparcels, thewhere costs paid by the politicalstorage subdivisiontank pursuantis tolocated. subsection 1.

[6.]Sec. 9.

For the purposes of this section, [a small business is a business which receives less than $500,000 in gross annual receipts from the site where the tank is located.] the Board shall define by regulation “small business.” - *AB40_R1* – 8 – Sec.

If a discharge occurs, the site of the storage tank and any other premises affected by the discharge must be brought intosubsection compliance1.ce with any applicable standard as described in subsectionSec. 1.

Sec.

The operator of a tank exempted by paragraph (b) of subsection 1 may obtain the coverage provided by NRS [445C.370 and]- 445C.38081st bySession applying(2021) to– the10 Board,– paying the fee set pursuant to NRS 445C.340 for its registration, and, if the tank is used to store fuel for jet or turbine-powered aircraft, reporting monthly the number of gallons of fuel put into the tank and paying the fee required by NRS 445C.330.

H~~~~~ 21 - *AB40_R1*81st Session (2021)