Legislation intended to protect drinking water supplies from chemical storage tank leaks would likely cover “tens of thousands” of tanks nationwide and lead to “substantial” compliance costs for tank owners and operators, according to a Congressional Budget Office (CBO) analysis released on June 5.
The CBO reached these conclusions after reviewing the “Chemical Safety and Drinking Water Protection Act” (S. 1961), which the Senate Environment and Public Works (EPW) Committee approved in April. The bill would direct states to establish new oversight and inspection programs for chemical storage facilities that could threaten water supplies. Covered facilities would be required to meet minimum leak detection, spill control, and employee training standards.
While CBO said the total costs of the program to the private sector would “ultimately depend on the minimum requirements developed by EPA and states,” they could amount to “tens of thousands of dollars per tank.” This, combined with the “tens of thousands” of tanks likely to fall under the program led CBO to conclude the “cost of the private-sector mandates would probably be substantial.”
CBO also estimated that only a “small proportion” of tanks likely to be covered by the program are owned and operated by local government entities, but the exact scope of the program will remain uncertain until the bill is passed and EPA develops detailed coverage standards. AMWA has previously raised concerns that a broad interpretation of the bill could lead to new regulations on chemical storage tanks at water treatment facilities that pose no risk to source waters.
There is currently no timetable for S. 1961 to receive a vote on the Senate floor, and CBO’s cost estimate could slow its advancement even further. Some Senate Republicans have signaled discomfort with parts of the bill, and the estimated costs to the private sector might only add to these concerns.