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.
    1-8        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
   4-18  accounts.
   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
   11-5  oil.
   11-6        SECTION 5.  Section 40.107, Natural Resources Code, is
   11-7  amended to read as follows:
   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
  13-16  plan.
  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
  15-12  discharged;
  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
  16-11  necessary.
  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
  17-12  resources.
  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
  19-18  obsolete;
  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
  19-23  chapter.
  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:
  21-13  (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
  22-14  following:
  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.