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September 1997
Interim meetings of House and Senate Legislative Committees
began this month in Tallahassee, including those concerned with
water and natural resources issues. Between Legislative Sessions,
Committees focus on specific subject matter as interim projects
for in-depth study. A summary of two interim projects appears
in this issue.
Civil Immunity for Petroleum Tank Owners
In 1986 the Legislature extended immunity from civil actions involving
damages from petroleum storage systems to the owners and operators
of the tanks. Immunity from civil actions is now provided to
an owner/operator whose petroleum storage system is in compliance
with DEP rules as contained in chapter 17-61, Florida Administrative
Code.
The provision of ss. 376.313(4), FS, that extends immunity is
set to expire on October 1, 1998, and is scheduled for a "sunset
review" during the coming Session. The Senate staff report
is part of the normal sunset process and clarifies immunity as
it currently exists and makes recommendations for the future of
the statute.
The report found that immunity from civil damages for owners or
operators of petroleum storage systems benefits both the industry
and the citizens of Florida. By encouraging compliance ahead
of schedule, the immunity may prevent further damage from a leaking
site or diminish the possibility of new discharges. Because owners
or operators are more inclined to report discharges without fear
of liability, remedial action likely occurs sooner. The provision
providing immunity is an important provision in abating potential
litigation. Finally, the immunity and its effect on litigation
may promote the entry of new insurers in the market place and
generate competitive rates.
BACKGROUND
The integrity of Florida's ground waters and inland surface waters
is of great concern. Due to the significant number of petroleum
storage systems in Florida, discharges have occurred throughout
the state. Petroleum storage systems, however, are a necessary
part of the industry's effort to provide fuel for the population
of Florida. While citizens enjoy the advantages of convenient
storage sites for an important resource like fuel, there are a
large number of aging, leaking facilities that pose threats to
the environment.
Once the large number of leaking sites was recognized in 1986,
comprehensive legislation was enacted to provide for cleaning
up contaminated sites, improving management of current sites and
ensuring that owners or operators who attempt to comply with the
law would not be penalized. The immunity currently provided in
law appears reasonable in view of the need for convenient fueling
stations throughout the state as well as comprehensive environmental
regulation of petroleum storage systems.
The law provides that in any civil action brought after July 1,
1986, against the owner or operator of a petroleum storage system
for damages arising from a petroleum storage system discharge,
the normal liability provisions do not apply if it can be shown
that:
FINDINGS
The staff report found that immunity from civil actions likely
encourages compliance ahead of scheduled deadlines, thereby protecting
the environment. The law stipulates that an owner or operator
must be in compliance at the time of discharge to qualify for
the immunity regardless of the specified deadline. Some department
rules have extended deadlines, such as the requirement for secondary
containment in 2009. Installing devices like tanks with secondary
containment earlier than required will prevent further discharge
from a leaking site or eliminate a possible discharge. The department,
however, was unaware of any cases where the provisions of the
law have been used as a defense. Nonetheless, any attempts at
early compliance resulting from the provision would seem to benefit
the environment.
Owners covered by the immunity from civil actions might be more
inclined to report discharges, and therefore remedial action might
occur sooner. Notably, the tank regulatory rules of DEP exceed
federal requirements. Consequently, any owners or operators in
compliance with DEP rules have a decreased potential for harmful
discharges. However, when a discharge occurs, those owners/operators
in compliance and protected by the immunity may report the discharge
sooner because they are less worried about third party liability.
When the department is made aware of a discharge, remedial steps
can be taken to prevent further environmental damage.
Dry-cleaning Contamination Cleanup Program
In 1994, the Legislature enacted the dry-cleaning
contamination cleanup program which was modeled somewhat after
the underground petroleum storage tank program. Unlike the underground
petroleum storage tank cleanup program, the dry-cleaning site
cleanup program was never designed as a reimbursement program
without prior DEP approval of costs. The program is handed primarily
from a 2 percent gross receipts tax which is levied on dry cleaning
facilities and a $5-per-gallon tax on perchloroethylene (PERC)
used by dry-cleaners.
The gross revenue from these taxes is approximately $8 million
a year. These moneys are deposited into the Water Quality Assurance
Trust Fund and are to be used to pay for the cleanup of contaminated
dry-cleaning sites. Depending on when application for the program
was made, certain deductibles apply. Applications for the program
may be made through December 31, 2005. Until that time, it is
difficult to determine the actual number of sites which may be
ultimately eligible for cleanup under the program.
Since 1983, there has been an increased focus and dedication toward
cleaning up sites contaminated by hazardous wastes, hazardous
substances, and other pollutants in order to protect Florida's
drinking water supply and it's fragile natural resources. The
1983 Water Quality Assurance Act established the Water Quality
Assurance Trust Fund to provide a source of funding for hazardous
waste contaminated sites.
In 1986, the Legislature further acknowledged that a major threat
To Florida's drinking water was caused by contamination from leaking
underground petroleum storage Systems. As a result, the Legislature
created the Inland Protection Trust Fund to finance the clean
up of petroleum contaminated Sites throughout Florida
In 1994, serious concerns were expressed regarding the contamination
and potential health and environmental risks as a result of the
discharge of solvents commonly used in the dry-cleaning process.
Due to the nature of dry-cleaning solvents, cleanup of these types
of contaminated sites was expected to be both difficult and costly.
As a result, small, independent owners of dry-cleaning facilities
may not have the financial resources to investigate, clean up,
and monitor these sites. Dry-cleaning solvents are considered
to be hazardous substances under both state and federal law; therefore,
the owner or operator of a dry cleaning facility may be subject
to third party liability as a result of damages resulting from
discharge of dry-cleaning solvents. Dry-cleaning solvent contaminated
sites were not eligible for cleanup under the underground petroleum
storage tanks program, and the Water Quality Assurance Trust Fund
did not have the financial resources to address the problem. As
a result, the 1994 Legislature established the dry-cleaning contamination
cleanup program, which was, modeled somewhat after the underground
petroleum storage tank program.
PERC evaporates when exposed to air and dissolves only slightly
when mixed with water. Most releases of PERC to the environment
are to the air. This is why the EPA, pursuant to the Clean Air
Act Amendments of 1990, regulates the emissions of PERC as one
of 189 toxic chemicals. When a PERC release occurs on the ground,
it does not bind well with the soil and can move through the ground
and into the ground water, making cleanup costly and difficult.
The first 85 sites are now nearing the completion of the first
task in the rehabilitation process. As more experience is gained
cleaning up and remediating those sites, it is anticipated that
both the remediation costs and the time necessary to clean up
these sites will decrease. To further these efforts, the DEP
needs to have clear and specific statutory direction to use innovative
approaches to cleanup efforts and the authority to use RBCA principles
for these sites. Although the ultimate penalty for failing to
register a dry-cleaning facility with the DEP is ineligibility
for the cleanup program, penalties for failure to register with
the DEP should be imposed to assure that these facilities promptly
register and pay the appropriate registration fees timely. The
time period in which a facility may apply to the program should
be shortened to December 31, 1998, in order to provide more predictability
as to the number of sites requiring rehabilitation and bring some
closure to the program and assure that the state is committed
to cleaning up only contamination that has occurred prior to the
requirements for secondary containment. The concept of gross
negligence should be clarified for purposes of eligibility determinations
for the program. In order to meet the legislative intent of maximizing
clean-ups, additional incentives should be provided to encourage
voluntary clean up. Such incentives could include tax incentives
and streamlining and expediting the clean-up approval process.
The DEP's staffing of the program should be realigned with the
actual revenues in order to maximize the funds available. |