Commission Staff A ctivities 



requirements to small and mediiim-sized commimities (Phase II). The basic requirement is 

 that "municipal storm sewer systems" must have NPDES permits - this would include any 

 system owned or operated by a city, county, or other state or federal entity. Cities and 

 coimties subject to Phase II were required to apply for those permits by March 10, 2003. 



For a variety of reasons, the Phase II rulemaking process has been prolonged and 

 the rules for implementing the Phase II program in North Carolina have not been adopted. 

 As a result, the Department of Environment and Natural Resources (DENR), as the 

 delegated permitting agency in North Carolina, has not issued any Phase II permits. 

 NPDES permits are enforceable by EPA, by the State, and by any person through the filing 

 of a citizen suit. 



At its 6 February 2004 meeting, the Commission heard fi-om many of the 

 stakeholders and interested parties involved in the Phase II discussions. At the request of 

 the Co-Chairs of the Commission, Commission staff convened a working group to discuss 

 the possibility of legislative actions that could help alleviate some of the controversy 

 surrounding the Phase II Stormwater Management program. Meetings of the working 

 group were held on 27 April 2004, 3 May 2004, and 7 May 2004. 



Although the working group was able to identify what it believed to be the primary 

 issues related to implementation of the Phase II Stormwater program, the working group 

 has not been able to resolve all issues or achieve consensus on a proposed bill as of this 

 report. As a result, neither of the legislative proposals recommended for consideration by 

 the General Assembly, "Phase II Stormwater Management- 1" and "Phase II Stormwater 

 Management-2" reflect a consensus on this issue. The working group will continue to meet 

 during the 2004 Regular Session. 



Leaking Petroleum Underground Storage Tanks 



This working group, which dates back to the enactment of the Leaking Petroleum 

 Underground Storage Tank Cleanup Act of 1988 (G.S. 143-215.94A et seq.), is perhaps 

 the longest running and most successful of the environmental and natural resources 

 working groups. The working group was convened in November 2003 in response to S.L. 

 2003-352, Section 12.(a), which authorized the Commission to study issues related to the 

 Leaking Petroleum Underground Storage Tank Cleanup Program. The legislation 

 authorized the Commission to evaluate any of the following issues: 



( 1 ) The adequacy of program funding. 



(2) Options for management of available funds, including prioritization of 

 cleanups and preapproval of cleanups. 



(3) Changes in deductible and co payment requirements. 



(4) Options to increase program funding. 



(5) The availability and use of private insurance to pay or reimburse the costs 

 of the assessment and cleanup of releases and discharges of petroleum from 

 petroleum underground storage tanks and of any liability of owners and 

 operators of those tanks to third parties. 



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