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.