By:  Earley                                           H.B. No. 2016
       73R5112 JJT-F
                                 A BILL TO BE ENTITLED
    1-1                                AN ACT
    1-2  relating to the regulation of the storage of hazardous liquids in
    1-3  salt dome storage facilities; providing civil and criminal
    1-4  penalties.
    1-5        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-6        SECTION 1.  The Natural Resources Code is amended by adding
    1-7  Title 11 to read as follows:
    1-8          TITLE 11.  MISCELLANEOUS USES OF NATURAL RESOURCES
    1-9                  CHAPTER 211.  HAZARDOUS LIQUID SALT
   1-10                        DOME STORAGE FACILITIES
   1-11                   SUBCHAPTER A.  GENERAL PROVISIONS
   1-12        Sec. 211.001.  DEFINITIONS.  In this chapter:
   1-13              (1)  "Commission" means the Railroad Commission of
   1-14  Texas.
   1-15              (2)  "Hazardous liquid" means:
   1-16                    (A)  petroleum or any petroleum or liquid natural
   1-17  gas product; or
   1-18                    (B)  any substance or material in a liquid state,
   1-19  other than liquefied natural gas, that has been determined by the
   1-20  United States secretary of transportation to be a hazardous liquid.
   1-21              (3)  "Salt dome storage of hazardous liquids" means the
   1-22  storage of a hazardous liquid in a salt dome storage facility but
   1-23  does not include a facility covered by the Hazardous Liquid
   1-24  Pipeline Safety Act of 1979 (49 App.  U.S.C. Section 2001 et seq.)
    2-1  or the Natural Gas Pipeline Safety Act of 1968 (49 App. U.S.C.
    2-2  Section 1671 et seq.).
    2-3              (4)  "Salt dome storage facility" includes a new or
    2-4  existing salt dome storage cavern and any equipment, facility, or
    2-5  building used or intended for use in the storage of a hazardous
    2-6  liquid in the salt dome cavern.
    2-7        Sec. 211.002.  POWERS OF LOCAL GOVERNMENTS.  (a)  This
    2-8  chapter does not reduce, limit, or impair the authority provided by
    2-9  law to any municipality, except as provided by Subsection (b) of
   2-10  this section.
   2-11        (b)  A municipality or county may not adopt or enforce an
   2-12  ordinance or other regulation that establishes safety standards or
   2-13  practices applicable to hazardous liquid salt dome storage
   2-14  facilities that are subject to regulation by federal or state law.
   2-15                SUBCHAPTER B.  REGULATION OF FACILITIES
   2-16        Sec. 211.011.  JURISDICTION.  The commission has jurisdiction
   2-17  over all salt dome storage of hazardous liquids and over facilities
   2-18  used for the storage of hazardous liquids in salt domes.
   2-19        Sec. 211.012.  RULES AND STANDARDS.  (a)  The commission
   2-20  shall adopt rules to establish safety standards for and practices
   2-21  applicable to the storage of hazardous liquids in salt domes and
   2-22  the facilities used for such storage.  The rules shall require:
   2-23              (1)  the installation and periodic testing of safety
   2-24  devices at a salt dome storage facility;
   2-25              (2)  the establishment of emergency notification
   2-26  procedures in the event of a release of a hazardous substance that
   2-27  poses a substantial risk to the public;
    3-1              (3)  fire prevention and response procedures;
    3-2              (4)  employee and third-party contractor safety
    3-3  training; and
    3-4              (5)  other requirements that the commission finds
    3-5  necessary and reasonable for the safe construction, operation, and
    3-6  maintenance of salt dome storage facilities.
    3-7        (b)  The commission may grant exceptions to its rules or
    3-8  impose additional requirements in any permit or amended permit
    3-9  issued to a facility if the facility, as permitted, will not cause
   3-10  an unreasonable danger to the public.
   3-11        Sec. 211.013.  RECORDS AND REPORTS.  (a)  Each owner or
   3-12  operator of a hazardous liquid salt dome storage facility shall
   3-13  maintain records, make reports, and provide any information the
   3-14  commission may require with respect to the construction, operation,
   3-15  or maintenance of the facility.  The operator of a hazardous liquid
   3-16  salt dome storage facility shall report the results of any test of
   3-17  a safety device installed at the facility to the commission within
   3-18  10 days after the day of the test.
   3-19        (b)  The commission by rule shall designate the records
   3-20  required to be maintained and the reports required to be filed by
   3-21  the owner or operator and shall provide forms for reports if
   3-22  necessary.
   3-23        (c)  The commission may require the owner or operator of a
   3-24  hazardous liquid salt dome storage facility to prepare a safety
   3-25  procedural manual for the facility.  The commission may require the
   3-26  owner or operator to file the manual with the commission for
   3-27  approval or to make the manual available for inspection by an
    4-1  employee or agent of the commission.
    4-2        Sec. 211.014.  INSPECTIONS AND EXAMINATIONS.  (a)  The
    4-3  commission or its employee or designated agent may enter property
    4-4  on which a hazardous liquid salt dome storage facility is located
    4-5  or any other property relating to the storage of a hazardous liquid
    4-6  in a salt dome, and may inspect and examine the property and any
    4-7  records located on the property to the extent relevant to determine
    4-8  if a person is acting in compliance with this chapter and any rules
    4-9  adopted by the commission under this chapter.
   4-10        (b)  Before the commission or its employee or agent enters
   4-11  property for the purposes of this section, the person requesting
   4-12  entry must present proper credentials to the person in charge of
   4-13  the property.
   4-14        (c)  An entry, examination, or inspection under this section
   4-15  may be made only at a reasonable time and in a reasonable manner.
   4-16                      SUBCHAPTER C.  ENFORCEMENT
   4-17        Sec. 211.031.  CIVIL PENALTY.  A person who violates this
   4-18  chapter or a rule adopted by the commission under this chapter is
   4-19  subject to a civil penalty of not less than $50 nor more than
   4-20  $1,000 for each act of violation and for each day of violation.
   4-21  The total amount of penalties that may be assessed under this
   4-22  section for a related series of violations may not exceed $200,000.
   4-23        Sec. 211.032.  ENFORCEMENT BY COMMISSION AND ATTORNEY
   4-24  GENERAL.  (a)  If it appears that a person has been or is violating
   4-25  this chapter or a rule of the commission adopted under this
   4-26  chapter, the commission may institute a civil suit in a district
   4-27  court for injunctive relief to restrain the person from continuing
    5-1  the violation or for the assessment and recovery of a civil penalty
    5-2  under Section 211.031 of this code, or for both the injunctive
    5-3  relief and the civil penalty.
    5-4        (b)  On application for injunctive relief and a finding that
    5-5  a person has violated or is violating this chapter or a rule of the
    5-6  commission adopted under this chapter, the district court shall
    5-7  grant the injunctive relief that the facts warrant.
    5-8        (c)  At the request of the commission, the attorney general
    5-9  shall institute and conduct a suit under this section in the name
   5-10  of the state.
   5-11        Sec. 211.033.  CRIMINAL PENALTY FOR VIOLATION OF CHAPTER AND
   5-12  RULES.  (a)  A person who intentionally or knowingly violates this
   5-13  chapter or a rule of the commission adopted under this chapter
   5-14  commits an offense.
   5-15        (b)  An offense under this section is punishable by a fine of
   5-16  not more than $25,000, confinement in the institutional division of
   5-17  the Texas Department of Criminal Justice for a term of not more
   5-18  than five years, or both the fine and imprisonment.
   5-19        Sec. 211.034.  CRIMINAL PENALTY FOR DAMAGING OR DESTROYING
   5-20  STORAGE FACILITIES.  (a)  A person who intentionally or knowingly
   5-21  damages or destroys or attempts to damage or destroy any hazardous
   5-22  liquid salt dome storage facility in this state commits an offense.
   5-23        (b)  A person who intentionally or knowingly disables a
   5-24  safety device in a hazardous liquid salt dome storage facility
   5-25  commits an offense.
   5-26        (c)  An offense under this section is punishable by a fine of
   5-27  not more than $25,000, confinement in the institutional division of
    6-1  the Texas Department of Criminal Justice for a term of not more
    6-2  than 15 years, or both the fine and imprisonment.
    6-3        SECTION 2.  (a)  This Act takes effect September 1, 1993,
    6-4  except as provided by Subsection (b) of this section.
    6-5        (b)  Subchapter C, Chapter 211, Natural Resources Code, as
    6-6  added by this Act, takes effect January 1, 1994.
    6-7        (c)  The Railroad Commission of Texas shall adopt rules for
    6-8  the administration of Chapter 211, Natural Resources Code, as added
    6-9  by this Act, before December 1, 1993.
   6-10        SECTION 3.  The importance of this legislation and the
   6-11  crowded condition of the calendars in both houses create an
   6-12  emergency and an imperative public necessity that the
   6-13  constitutional rule requiring bills to be read on three several
   6-14  days in each house be suspended, and this rule is hereby suspended.