By Berlanga H.B. No. 2188
Substitute the following for H.B. No. 2188:
By Raymond C.S.H.B. No. 2188
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the prevention of, damage, cleanup, costs related to,
1-3 and liability for oil spills in coastal waters of the state;
1-4 providing for response to the discharge of oil and other pollutants
1-5 in the coastal waters of the state; authorizing appropriations from
1-6 the coastal protection fund.
1-7 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-8 SECTION 1. Section 40.002, Natural Resources Code, is
1-9 amended to read as follows:
1-10 Sec. 40.002. POLICY. (a) The legislature finds and
1-11 declares that the preservation of the Texas coast is a matter of
1-12 the highest urgency and priority. It is the policy of this state
1-13 to keep its coastal waters, rivers, lakes, estuaries, marshes,
1-14 tidal flats, beaches, and public lands as pristine as possible,
1-15 taking into account multiple use accommodations necessary to
1-16 provide the broadest possible promotion of public and private
1-17 interests. Spills, discharges, and escapes of crude oil,
1-18 petroleum, and other such substances resulting from their handling,
1-19 storage, and transportation, particularly by vessel, endanger the
1-20 coastal environment of the state, public and private property on
1-21 the coast, and the well-being of those deriving their livelihood
1-22 from marine-related activity in coastal waters. The hazards posed
1-23 by the handling, storage, and transportation of these substances in
2-1 the coastal waters are contrary to the paramount interests of the
2-2 state. These state interests outweigh the economic burdens imposed
2-3 under this chapter.
2-4 (b) The legislature finds and declares that the natural
2-5 resources of the state and particularly those in the coastal waters
2-6 of the state offer significant benefits to the citizens of Texas.
2-7 These natural resources are important for their existence and their
2-8 recreational, aesthetic, and commercial value. It is the policy of
2-9 the state to protect these natural resources and to restore,
2-10 rehabilitate, replace, and/or acquire the equivalent of these
2-11 natural resources with all deliberate speed when they have been
2-12 damaged. The legislature finds and declares that it is difficult
2-13 to assess the value of these natural resources and to quantify
2-14 injury to natural resources at a reasonable cost. The procedures
2-15 and protocols utilized by the trustees must therefore consider the
2-16 unique characteristics of each spill incident and the location of
2-17 the natural resources affected. It is the intent of the
2-18 legislature that natural resource damage assessment methodologies
2-19 be developed for the purpose of reasonably valuing the natural
2-20 resources of the State of Texas in the event of an oil spill and
2-21 that the state recover monetary damages or have actions commenced
2-22 by the spiller as early as possible to expedite the restoration,
2-23 rehabilitation, and/or replacement of injured natural resources.
2-24 (c) The legislature intends by this chapter to exercise the
2-25 police power of the state to protect its coastal waters and
3-1 adjacent shorelines by conferring upon the Commissioner of the
3-2 General Land Office the power to:
3-3 (1) prevent spills and discharges of oil by requiring
3-4 and monitoring preventive measures and response planning;
3-5 (2) provide for prompt response to abate and contain
3-6 spills and discharges of oil and ensure the removal and cleanup of
3-7 pollution from such spills and discharges;
3-8 (3) provide for development of a state coastal
3-9 discharge contingency plan through planning and coordination with
3-10 the Texas Water Commission to protect coastal waters from all types
3-11 of spills and discharges; and
3-12 (4) administer a fund to provide for funding these
3-13 activities and to guarantee the prompt payment of certain
3-14 reasonable claims resulting from spills and discharges of oil.
3-15 (d) <
(c)> The legislature declares that it is the intent of
3-16 this chapter to support and complement the Oil Pollution Act of
3-17 1990 (Pub. L. 101-380) and other federal law, specifically those
3-18 provisions relating to the national contingency plan for cleanup of
3-19 oil and hazardous substance spills and discharges, including
3-20 provisions relating to the responsibilities of state agencies
3-21 designated as natural resources trustees. The legislature intends
3-22 this chapter to be interpreted and implemented in a manner
3-23 consistent with federal law.
3-24 SECTION 2. Section 40.003, Natural Resources Code, is
3-25 amended to read as follows:
4-1 Sec. 40.003. DEFINITIONS. In this chapter:
4-2 (1) "Barrel" means 42 United States gallons at 60
4-3 degrees Fahrenheit.
4-4 (2) "Coastal waters" means the waters and bed of the
4-5 Gulf of Mexico within the jurisdiction of the State of Texas,
4-6 including the arms of the Gulf of Mexico subject to tidal
4-7 influence, and any other waters contiguous thereto that are
4-8 navigable by vessels with a capacity to carry 10,000 gallons or
4-9 more of oil as fuel or cargo.
4-10 (3) "Commissioner" means the Commissioner of the
4-11 General Land Office.
4-12 (4) "Comprehensive assessment method" means a method
4-13 including sampling, modeling, and other appropriate scientific
4-14 procedures to make a reasonable and rational determination of
4-15 injury to natural resources resulting from an unauthorized
4-16 discharge of oil.
4-17 (5) "Comptroller" means the comptroller of public
4-19 (6) < (5)> "Crude oil" means any naturally occurring
4-20 liquid hydrocarbon at atmospheric temperature and pressure coming
4-21 from the earth, including condensate.
4-22 (7) < (6)>(A) "Damages" means compensation:
4-23 (i) to an owner, lessee, or trustee for
4-24 any direct, documented loss of, injury to, or loss of use of any
4-25 real or personal property or natural resources injured < damaged> by
5-1 an unauthorized discharge of oil;
5-2 (ii) to a state or local government for
5-3 any direct, documented net loss of taxes or net costs of increased
5-4 entitlements or public services; or
5-5 (iii) to persons, including but not
5-6 limited to holders of an oyster lease or permit; persons owning,
5-7 operating, or employed on commercial fishing, oystering, crabbing,
5-8 or shrimping vessels; persons owning, operating, or employed by
5-9 seafood processing concerns; and others similarly economically
5-10 reliant on the use or acquisition of natural resources for any
5-11 direct, documented loss of income, profits, or earning capacity
5-12 from the inability of the claimant to use or acquire natural
5-13 resources arising solely from injury < damage> to the natural
5-14 resources from an unauthorized discharge of oil.
5-15 (B) With respect to natural resources, "damages"
5-16 includes the cost to assess, restore, rehabilitate, or replace
5-17 injured < damaged> natural resources, or to mitigate further injury
5-18 < damage>, and their diminution in value after such restoration,
5-19 rehabilitation, replacement, or mitigation.
5-20 (8) < (7)> "Discharge of oil" means an intentional or
5-21 unintentional act or omission by which harmful quantities of oil
5-22 are spilled, leaked, pumped, poured, emitted, or dumped into or on
5-23 coastal waters or at a place adjacent to coastal waters where,
5-24 unless controlled or removed, an imminent threat of pollution to
5-25 coastal waters exists.
6-1 (9) < (8)> "Discharge cleanup organization" means any
6-2 group or cooperative, incorporated or unincorporated, of owners or
6-3 operators of vessels or terminal facilities and any other persons
6-4 who may elect to join, organized for the purpose of abating,
6-5 containing, removing, or cleaning up pollution from discharges of
6-6 oil or rescuing and rehabilitating wildlife or other natural
6-7 resources through cooperative efforts and shared equipment,
6-8 personnel, or facilities. Any third-party cleanup contractor,
6-9 industry cooperative, volunteer organization, or local government
6-10 shall be recognized as a discharge cleanup organization, provided
6-11 the commissioner or the United States properly certifies or
6-12 classifies the organization.
6-13 (10) < (9)> "Federal fund" means the federal Oil Spill
6-14 Liability Trust Fund.
6-15 (11) < (10)> "Fund" means the coastal protection fund.
6-16 (12) < (11)> "Harmful quantity" means that quantity of
6-17 oil the discharge of which is determined by the commissioner to be
6-18 harmful to the environment or public health or welfare or may
6-19 reasonably be anticipated to present an imminent and substantial
6-20 danger to the public health or welfare.
6-21 (13) < (12)> "Hazardous substance" means any substance,
6-22 except oil, designated as hazardous by the Environmental Protection
6-23 Agency pursuant to the Comprehensive Environmental Response,
6-24 Compensation, and Liability Act of 1980 (42 U.S.C. Sec. 9601 et
6-25 seq.) and designated by the Texas Water Commission.
7-1 (14) < (13)> "Marine terminal" means any terminal
7-2 facility used for transferring crude oil to or from vessels.
7-3 (15) < (14)> "National contingency plan" means the plan
7-4 prepared and published, as revised from time to time, under the
7-5 Federal Water Pollution Control Act (33 U.S.C. Sec. 1321 et seq.)
7-6 and the Comprehensive Environmental Response, Compensation, and
7-7 Liability Act of 1980 (42 U.S.C. Sec. 9601 et seq.).
7-8 (16) < (15)> "Natural resources" means all land, fish,
7-9 shellfish, fowl, wildlife, biota, vegetation, air, water, and other
7-10 similar resources owned, managed, held in trust, regulated, or
7-11 otherwise controlled by the state.
7-12 (17) < (16)> "Oil" means oil of any kind or in any
7-13 form, including but not limited to crude oil, petroleum, fuel oil,
7-14 sludge, oil refuse, and oil mixed with wastes other than dredged
7-15 spoil, but does not include petroleum, including crude oil or any
7-16 fraction thereof, which is specifically listed or designated as a
7-17 hazardous substance under Subparagraphs (A) through (F) of Section
7-18 101(14) of the Comprehensive Environmental Response, Compensation,
7-19 and Liability Act of 1980 (42 U.S.C. Sec. 9601 et seq.) and which
7-20 is subject to the provisions of that Act, and which is so
7-21 designated by the Texas Water Commission.
7-22 (18) < (17)> "Owner" or "operator" means:
7-23 (A) any person owning, operating, or chartering
7-24 by demise a vessel; or
7-25 (B) any person owning a terminal facility or a
8-1 person operating a terminal facility by lease, contract, or other
8-2 form of agreement.
8-3 (19) < (18)> "Person in charge" means the person on the
8-4 scene who is directly responsible for a terminal facility or vessel
8-5 when a discharge of oil occurs or a particular duty arises under
8-6 this chapter.
8-7 (20) < (19)> "Person responsible" or "responsible
8-8 person" means:
8-9 (A) the owner or operator of a vessel or
8-10 terminal facility from which an unauthorized discharge of oil
8-11 emanates or threatens to emanate;
8-12 (B) in the case of an abandoned vessel or
8-13 terminal facility, the person who would have been the responsible
8-14 person immediately prior to the abandonment; and
8-15 (C) any other person who causes, allows, or
8-16 permits an unauthorized discharge of oil or threatened unauthorized
8-17 discharge of oil.
8-18 (21) < (20)> "Pollution" means the presence of harmful
8-19 quantities of oil from an unauthorized discharge in coastal waters
8-20 or in or on adjacent waters, shorelines, estuaries, tidal flats,
8-21 beaches, or marshes.
8-22 (22) < (21)> "Response costs" means:
8-23 (A) with respect to an actual or threatened
8-24 discharge of oil, all costs incurred in an attempt to prevent,
8-25 abate, contain, and remove pollution from the discharge, including
9-1 costs of removing vessels or structures under this chapter, and
9-2 costs of any reasonable measures to prevent or limit damage to the
9-3 public health, safety, or welfare, public or private property, or
9-4 natural resources; or
9-5 (B) with respect to an actual or threatened
9-6 discharge of a hazardous substance, only costs incurred to
9-7 supplement the response operations of the Texas Water Commission.
9-8 (23) < (22)> "Terminal facility" or "facility" means
9-9 any waterfront or offshore pipeline, structure, equipment, or
9-10 device used for the purposes of drilling for, pumping, storing,
9-11 handling, or transferring oil and operating where a discharge of
9-12 oil from the facility could threaten coastal waters, including but
9-13 not limited to any such facility owned or operated by a public
9-14 utility or a governmental or quasi-governmental body, but does not
9-15 include any temporary storage facilities used only in connection
9-16 with the containment and cleanup of unauthorized discharges of oil.
9-17 (24) < (23)> "Trained personnel" means one or more
9-18 persons who have satisfactorily completed an appropriate course of
9-19 instruction developed under Section 40.302 of this code or < and>
9-20 all other training requirements as determined by the commissioner.
9-21 (25) "Trustee" means a natural resources trustee of
9-22 the state as designated by the governor under federal law.
9-23 (26) < (24)> "Unauthorized discharge of oil" means any
9-24 discharge of oil, or any discharge of oil emanating from a vessel
9-25 into waters adjoining and accessible from coastal waters, that is
10-1 not authorized by a federal or state permit.
10-2 (27) < (25)> "Unauthorized discharge of hazardous
10-3 substances" means a spill or discharge subject to Subchapter G,
10-4 Chapter 26, Water Code.
10-5 (28) < (26)> "Vessel" includes every description of
10-6 watercraft or other contrivance used or capable of being used as a
10-7 means of transportation on water, whether self-propelled or
10-8 otherwise, including barges.
10-9 (29) < (27)> "Texas Water Commission" means the Texas
10-10 Natural Resource Conservation Commission.
10-11 SECTION 3. Subsection (d), Section 40.053, Natural Resources
10-12 Code, is amended to read as follows:
10-13 (d) The commissioner shall establish regional response
10-14 committees or utilize the area committees established by federal
10-15 law to advise and provide input in the development of site-specific
10-16 discharge contingency response plans.
10-17 (1) Membership on these committees shall include
10-18 broad-based representation from local governments, industry,
10-19 resource agencies, and citizens groups and shall include staff from
10-20 the General Land Office.
10-21 (2) The committees shall develop regional response
10-22 recommendations and provide evaluation of response and
10-23 recommendations for improvement to the commissioner following an
10-24 actual or threatened unauthorized discharge.
10-25 SECTION 4. Section 40.102, Natural Resources Code, is
11-1 amended by adding Subsection (d) to read as follows:
11-2 (d) The state or federal on-scene coordinator may authorize
11-3 the decanting of recovered water during containment, cleanup, and
11-4 response activities resulting from an unauthorized discharge of
11-6 SECTION 5. Section 40.107, Natural Resources Code, is
11-7 amended to read as follows:
11-8 Sec. 40.107. < PRESUMPTION OF> NATURAL RESOURCES DAMAGES.
11-9 (a)(1) In any action to recover natural resources damages, the
11-10 amount of damages established by the commissioner in conjunction
11-11 with the < state-designated natural resources> trustees, according
11-12 to the procedures and plans contained in the state coastal
11-13 discharge contingency plan, shall create a rebuttable presumption
11-14 of the amount of such damages.
11-15 (2) The commissioner shall represent the consensus
11-16 position of the trustees whenever a collective decision or
11-17 agreement is required by this section.
11-18 (3) Whenever trustees cannot achieve a consensus, the
11-19 commissioner may invoke mediation to settle any disputed matter
11-20 related to this section. The mediation shall be immediately
11-21 commenced and shall be concluded within 10 days of its
11-22 commencement. The trustees shall abide by the consensus achieved
11-23 through mediation.
11-24 (4) The trustees shall enter into a memorandum of
11-25 agreement which describes the mediation process of Subdivision (3)
12-1 of this subsection.
12-2 (b) The commissioner may establish the rebuttable
12-3 presumption by submitting to the court a written report of the
12-4 amounts computed or expended according to the state plan. The
12-5 written report shall be admissible in evidence.
12-6 (c)(1) The commissioner, in conjunction with the trustees,
12-7 shall develop an inventory that identifies and catalogs the
12-8 physical locations, the seasonal variations in location, and the
12-9 current condition of natural resources; provides for data
12-10 collection related to coastal processes; and identifies the
12-11 recreational and commercial use areas that are most likely to
12-12 suffer injury from an unauthorized discharge of oil. The inventory
12-13 shall be completed by September 1, 1995, and shall be incorporated
12-14 into the state coastal discharge contingency plan after public
12-15 review and comment.
12-16 (2) The physical locations surveyed for the inventory
12-17 of natural resources shall include, at a minimum, the following
12-18 priority areas:
12-19 (A) the Galveston Bay system and the Houston
12-20 Ship Channel;
12-21 (B) the Corpus Christi Bay system;
12-22 (C) the lower Laguna Madre;
12-23 (D) Sabine Lake; and
12-24 (E) federal and state wildlife refuge areas.
12-25 (3) The current condition of selected natural
13-1 resources inventoried and cataloged shall be determined by, at a
13-2 minimum, a baseline sampling and analysis of current levels of
13-3 constituent substances selected after considering the types of oil
13-4 most frequently transported through and stored near coastal waters.
13-5 (4) The commissioner shall adopt administrative
13-6 procedures and protocols for the assessment of natural resource
13-7 damages from an unauthorized discharge of oil. As developed
13-8 through negotiated rulemaking with the trustees and other
13-9 interested parties, the procedures and protocols shall require the
13-10 trustees to assess natural resource damages by considering the
13-11 unique characteristics of the spill incident and the location of
13-12 the natural resources affected. These procedures and protocols
13-13 shall be adopted by rule, by the trustee agencies after
13-14 negotiation, notice, and public comment, by June 1, 1994, and
13-15 shall be incorporated into the state coastal discharge contingency
13-17 (5) The administrative procedures and protocols shall
13-18 include provisions which address:
13-19 (A) notification by the commissioner to all
13-20 trustees in the event of an unauthorized discharge of oil;
13-21 (B) coordination with and among trustees, spill
13-22 response agencies, potentially responsible parties, experts in
13-23 science and economics, and the public; and
13-24 (C) participation in all stages of the
13-25 assessment process by the potentially responsible party, as
14-1 consistent with trustee responsibilities.
14-2 (6) The administrative procedures and protocols shall
14-3 also require the trustees to:
14-4 (A) assist the on-scene coordinator, during
14-5 spill response activities and prior to the time that the state
14-6 on-scene coordinator determines that the cleanup is complete, in
14-7 predicting the impact of the oil and in devising the most effective
14-8 methods of protection for the natural resources at risk;
14-9 (B) identify appropriate sampling and data
14-10 collection techniques to efficiently determine the impact on
14-11 natural resources of the unauthorized discharge of oil;
14-12 (C) initiate, within 24 hours after approval for
14-13 access to the site by the on-scene coordinator, an actual field
14-14 investigation which may include sampling and data collection; the
14-15 protocols shall require that the responsible party and the trustees
14-16 be given, on request, split samples and copies of each other's
14-17 photographs utilized in assessing the impact of the unauthorized
14-18 discharge of oil; and
14-19 (D) establish plans, including alternatives that
14-20 are cost-effective and efficient, to satisfy the goal of restoring,
14-21 rehabilitating, replacing, and/or acquiring the equivalent of the
14-22 injured natural resources.
14-23 (7)(A) The administrative procedures and protocols
14-24 shall also include the following types of assessment procedures and
14-25 deadlines for their completion:
15-1 (i) an expedited assessment procedure
15-2 which may be used in situations in which the spill has limited
15-3 observable mortality and restoration activities can be speedily
15-4 initiated and/or in which the quantity of oil discharged does not
15-5 exceed 1,000 gallons; the purpose of utilizing the expedited
15-6 assessment procedure is to allow prompt initiation of restoration,
15-7 rehabilitation, replacement, and/or acquisition of an equivalent
15-8 natural resource without lengthy analysis of the impact on affected
15-9 natural resources; this procedure shall, at a minimum, require that
15-10 the trustees consider the following items:
15-11 (aa) the quantity and quality of oil
15-13 (bb) the time period during which
15-14 coastal waters are affected by the oil and the physical extent of
15-15 the impact;
15-16 (cc) the condition of the natural
15-17 resources prior to the unauthorized discharge of oil; and
15-18 (dd) the actual costs of restoring,
15-19 rehabilitating, and/or acquiring the equivalent of the injured
15-20 natural resources;
15-21 (ii) a comprehensive assessment procedure
15-22 for use in situations in which expedited or negotiated assessment
15-23 procedures are not appropriate; and
15-24 (iii) any other assessment method agreed
15-25 upon between the responsible person and the trustees, consistent
16-1 with their public trust duties.
16-2 (B) The trustees shall determine, within 60 days
16-3 of the determination by the on-scene coordinator that the cleanup
16-4 is complete, whether:
16-5 (i) action to restore, rehabilitate, or
16-6 acquire an equivalent natural resource is required;
16-7 (ii) an expedited assessment which may
16-8 include early commencement of restoration, rehabilitation,
16-9 replacement, and/or acquisition activities, may be required; or
16-10 (iii) a comprehensive assessment is
16-12 (C) The trustees may petition the commissioner
16-13 for a longer period of time to make the above determination by
16-14 showing that the full impact of the discharge on the affected
16-15 natural resources cannot be determined in 60 days.
16-16 (D) The trustees shall complete the
16-17 comprehensive assessment procedure within 30 months of the date of
16-18 the determination by the on-scene coordinator that the cleanup is
16-19 complete. The trustees may petition the commissioner for a longer
16-20 period of time to complete the assessment by showing that the full
16-21 impact of the discharge on the affected natural resources cannot be
16-22 determined in 30 months.
16-23 (E) Any assessment generated by the trustees
16-24 shall be reasonable and have a rational connection to the costs of
16-25 conducting the assessment and of restoring, rehabilitating,
17-1 replacing, and/or acquiring the equivalent of the injured natural
17-2 resources. The trustees shall ensure that the cost of any
17-3 restoration, rehabilitation, replacement, or acquisition project
17-4 shall not be disproportionate to the value of the natural resource
17-5 before the injury. The trustees shall utilize the most
17-6 cost-effective method to achieve restoration, rehabilitation,
17-7 replacement, or acquisition of an equivalent resource.
17-8 Furthermore, the trustees shall take into account the quality of
17-9 the actions undertaken by the responsible party in response to the
17-10 spill incident, including but not limited to containment and
17-11 removal actions and protection and preservation of natural
17-13 (F) The potentially responsible party shall make
17-14 full payment within 60 days of the completion of the assessment by
17-15 the trustees or, if mediation pursuant to this paragraph is
17-16 conducted, within 60 days of the conclusion of the mediation. To
17-17 facilitate an expedited recovery of funds for natural resource
17-18 restoration and to assist the trustees and the responsible party in
17-19 the settlement of disputed natural resource damage assessments at
17-20 their discretion and at any time, all disputed natural resource
17-21 damage assessments shall be referred to mediation as a prerequisite
17-22 to the jurisdiction of any court. Results of the mediation and any
17-23 settlement offers tendered during the mediation shall be treated as
17-24 settlement negotiations for the purposes of admissibility in a
17-25 court of law. Either the trustees or the potentially responsible
18-1 person may initiate the mediation process, after an assessment has
18-2 been issued, by giving written notice to the commissioner, who
18-3 shall give written notice to all parties. One mediator shall be
18-4 chosen by the trustees and one mediator shall be chosen by the
18-5 responsible parties. Within 45 days of the receipt of the
18-6 assessment from the trustees, the mediators shall be designated.
18-7 The mediation shall end 135 days after the receipt of the
18-8 assessment from the trustees.
18-9 SECTION 6. Subsection (a), Section 40.114, Natural Resources
18-10 Code, is amended to read as follows:
18-11 (a) Any vessel with a capacity to carry 10,000 gallons or
18-12 more of oil as fuel or cargo that operates in coastal waters or
18-13 waters adjoining and accessible from coastal waters shall maintain
18-14 a written vessel-specific discharge prevention and response plan
18-15 that satisfies the requirements of rules promulgated under this
18-16 chapter. This section shall not apply to any dedicated response
18-17 vessel or to any other vessel for activities within state waters
18-18 related solely to the containment and cleanup of oil, including
18-19 response-related training or drills.
18-20 SECTION 7. Subsection (a), Section 40.152, Natural Resources
18-21 Code, is amended to read as follows:
18-22 (a) Money in the fund may be disbursed for the following
18-23 purposes and no others:
18-24 (1) administrative expenses, personnel and training
18-25 expenses, and equipment maintenance and operating costs related to
19-1 implementation and enforcement of this chapter;
19-2 (2) response costs related to abatement and
19-3 containment of actual or threatened unauthorized discharges of oil
19-4 incidental to unauthorized discharges of hazardous substances;
19-5 (3) response costs and damages related to actual or
19-6 threatened unauthorized discharges of oil;
19-7 (4) assessment, restoration, rehabilitation, or
19-8 replacement of or mitigation of damage to natural resources damaged
19-9 by an unauthorized discharge of oil;
19-10 (5) in an amount not to exceed $50,000 annually, the
19-11 small spill education program;
19-12 (6) in an amount not to exceed $1,250,000 annually,
19-13 interagency contracts under Section 40.302 of this code;
19-14 (7) < (6)> the purchase of response equipment under
19-15 Section 40.105 of this code within two years of the effective date
19-16 of this chapter, in an amount not to exceed $4 million; thereafter,
19-17 for the purchase of equipment to replace equipment that is worn or
19-19 (8) an inventory under Section 40.107 of this code, to
19-20 be completed by September 1, 1995, in an amount not to exceed $6
19-21 million; and
19-22 (9) < (7)> other costs and damages authorized by this
19-24 SECTION 8. Section 40.201, Natural Resources Code, is
19-25 amended to read as follows:
20-1 Sec. 40.201. FINANCIAL RESPONSIBILITY. (a) Each owner or
20-2 operator of a vessel subject to Section 40.114 of this code and
20-3 operating within coastal waters or waters adjoining and accessible
20-4 from coastal waters or any terminal facility subject to this code
20-5 shall establish and maintain evidence of financial responsibility
20-6 for costs and damages from unauthorized discharges of oil pursuant
20-7 to federal law or in any other manner < a lesser amount as> provided
20-8 in this chapter.
20-9 (b) If a vessel subject to Section 40.114 of this code or a
20-10 terminal facility is not required under federal law to establish
20-11 and maintain evidence of financial responsibility, the owner or
20-12 operator of that vessel or terminal facility shall establish and
20-13 maintain evidence in an amount and < a> form prescribed by rules
20-14 promulgated under this code.
20-15 (c) Any owner or operator of a vessel that is a member of
20-16 any protection and indemnity mutual organization, which is a member
20-17 of the international group or any other owner or operator that is
20-18 an assured of the Water Quality Insurance Syndicate, or an insured
20-19 of any other organization approved by the commissioner, and which
20-20 is covered for oil pollution risks up to the amounts required by
20-21 federal law is in compliance with the financial responsibility
20-22 requirements of this chapter. The commissioner shall specifically
20-23 designate the organizations and the terms under which owners and
20-24 operators of vessels shall demonstrate financial responsibility.
20-25 (d) After an unauthorized discharge of oil, a vessel shall
21-1 remain in the jurisdiction of the commissioner until the owner,
21-2 operator, or person in charge has shown the commissioner evidence
21-3 of financial responsibility. The commissioner may not detain the
21-4 vessel longer than 12 hours after the vessel has proven < proving>
21-5 financial responsibility.
21-6 (e) < (d)> In addition to any other remedy or enforcement
21-7 provision, the commissioner may suspend a registrant's discharge
21-8 prevention and response certificate or may deny a vessel entry into
21-9 any port in coastal waters for failure to comply with this section.
21-10 SECTION 9. Section 40.203, Natural Resources Code, is
21-11 amended to read as follows:
21-12 Sec. 40.203. LIABILITY FOR NATURAL RESOURCES DAMAGES.
21-13 (a) The commissioner, on behalf of the trustees, shall seek
21-14 reimbursement from the federal fund for damages to natural
21-15 resources in excess of the liability limits prescribed in Section
21-16 40.202 of this code. If that request is denied or additional money
21-17 is required following receipt of the federal money, the
21-18 commissioner has the authority to pay the requested reimbursement
21-19 from the fund for a period of two years from the date the federal
21-20 fund grants or denies the request for reimbursement.
21-21 (b) In addition to liability under Section 40.202 of this
21-22 code, persons responsible for actual or threatened unauthorized
21-23 discharges of oil are liable for < all> natural resources damages
21-24 attributable to the discharge.
21-25 (c) The total liability for all natural resource damages of
22-1 any person responsible for an actual or threatened unauthorized
22-2 discharge of oil from a vessel shall not exceed the following:
22-3 (1) for a tank vessel, the greater of:
22-4 (A) $1,200 per gross ton; or
22-5 (B)(i) for a vessel greater than 3,000 gross
22-6 tons, $10 million; or
22-7 (ii) for a vessel of 3,000 gross tons or
22-8 less, $2 million; or
22-9 (2) for any other vessel, $600 per gross ton or
22-10 $500,000, whichever is greater.
22-11 (d) The total liability for all natural resource damages of
22-12 any person responsible for an actual or threatened unauthorized
22-13 discharge of oil from a terminal facility shall not exceed the
22-15 (1) for each terminal facility with a capacity:
22-16 (A) above 150,000 barrels, $70 per barrel not to
22-17 exceed $350,000,000;
22-18 (B) from 70,001 to 150,000 barrels, $10,000,000;
22-19 (C) from 30,001 to 70,000 barrels, $5,000,000;
22-20 (D) from 10,000 to 30,000 barrels, $2,000,000;
22-21 (2) for any other terminal, $500,000.
22-22 (e) The commissioner shall ensure that there will < There
22-23 may> be no double recovery of damages or response costs.
22-24 (f) If any actual or threatened unauthorized discharge of
22-25 oil was the result of gross negligence or wilful misconduct or a
23-1 violation of any applicable federal or state safety, construction,
23-2 or operating regulation, the person responsible for such gross
23-3 negligence or wilful misconduct or a violation of any applicable
23-4 federal or state safety, construction, or operating regulation is
23-5 liable for the full amount of all damages to natural resources.
23-6 SECTION 10. Subsection (c), Section 40.255, Natural
23-7 Resources Code, is repealed.
23-8 SECTION 11. Subchapter G, Chapter 40, Natural Resources
23-9 Code, is amended by adding Section 40.304 to read as follows:
23-10 Sec. 40.304. SMALL SPILL EDUCATION PROGRAM. The
23-11 commissioner shall develop and conduct a voluntary spill prevention
23-12 education program that targets small spills from commercial fishing
23-13 vessels, offshore support vessels, ferries, cruise ships, ports,
23-14 marinas, and recreational boats. The small spill education program
23-15 shall illustrate ways to reduce oil contamination of bilge water,
23-16 accidental spills of motor oil and hydraulic fluid during routine
23-17 maintenance, and spills during refueling. The program shall
23-18 illustrate proper disposal of oil and promote strategies to meet
23-19 shoreside oil handling and disposal needs of targeted groups. The
23-20 program shall include a series of training materials and workshops
23-21 and the development of educational materials.
23-22 SECTION 12. This Act takes effect September 1, 1993.
23-23 SECTION 13. The importance of this legislation and the
23-24 crowded condition of the calendars in both houses create an
23-25 emergency and an imperative public necessity that the
24-1 constitutional rule requiring bills to be read on three several
24-2 days in each house be suspended, and this rule is hereby suspended.