By Berlanga                                           H.B. No. 2188
                                 A BILL TO BE ENTITLED
    1-1                                AN ACT
    1-2  relating to the prevention of, the damage, cleanup, and costs
    1-3  related to, and liability for oil spills in coastal waters of the
    1-4  state; providing for natural resource response to the discharge of
    1-5  oil and other pollutants in the coastal waters of the state;
    1-6  authorizing an appropriation from 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  damage 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 damaged 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  damage 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 damaged by an
    5-1  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 damage to the natural resources from
   5-14  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  damaged natural resources, or to mitigate further damage, and their
   5-18  diminution in value after such restoration, rehabilitation,
   5-19  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 properly certifies the organization.
   6-12              (10) <(9)>  "Federal fund" means the federal Oil Spill
   6-13  Liability Trust Fund.
   6-14              (11) <(10)>  "Fund" means the coastal protection fund.
   6-15              (12) <(11)>  "Harmful quantity" means that quantity of
   6-16  oil the discharge of which is determined by the commissioner to be
   6-17  harmful to the environment or public health or welfare or may
   6-18  reasonably be anticipated to present an imminent and substantial
   6-19  danger to the public health or welfare.
   6-20              (13) <(12)>  "Hazardous substance" means any substance,
   6-21  except oil, designated as hazardous by the Environmental Protection
   6-22  Agency pursuant to the Comprehensive Environmental Response,
   6-23  Compensation, and Liability Act of 1980 (42 U.S.C. Sec.  9601 et
   6-24  seq.) and designated by the Texas Water Commission.
   6-25              (14) <(13)>  "Marine terminal" means any terminal
    7-1  facility used for transferring crude oil to or from vessels.
    7-2              (15) <(14)>  "National contingency plan" means the plan
    7-3  prepared and published, as revised from time to time, under the
    7-4  Federal Water Pollution Control Act (33 U.S.C. Sec. 1321 et seq.)
    7-5  and the Comprehensive Environmental Response, Compensation, and
    7-6  Liability Act of 1980 (42 U.S.C. Sec. 9601 et seq.).
    7-7              (16) <(15)>  "Natural resources" means all land, fish,
    7-8  shellfish, fowl, wildlife, biota, vegetation, air, water, and other
    7-9  similar resources owned, managed, held in trust, regulated, or
   7-10  otherwise controlled by the state.
   7-11              (17) <(16)>  "Oil" means oil of any kind or in any
   7-12  form, including but not limited to crude oil, petroleum, fuel oil,
   7-13  sludge, oil refuse, and oil mixed with wastes other than dredged
   7-14  spoil, but does not include petroleum, including crude oil or any
   7-15  fraction thereof, which is specifically listed or designated as a
   7-16  hazardous substance under Subparagraphs (A) through (F) of Section
   7-17  101(14) of the Comprehensive Environmental Response, Compensation,
   7-18  and Liability Act of 1980 (42 U.S.C. Sec. 9601 et seq.) and which
   7-19  is subject to the provisions of that Act, and which is so
   7-20  designated by the Texas Water Commission.
   7-21              (18) <(17)>  "Owner" or "operator" means:
   7-22                    (A)  any person owning, operating, or chartering
   7-23  by demise a vessel; or
   7-24                    (B)  any person owning a terminal facility or a
   7-25  person operating a terminal facility by lease, contract, or other
    8-1  form of agreement.
    8-2              (19) <(18)>  "Person in charge" means the person on the
    8-3  scene who is directly responsible for a terminal facility or vessel
    8-4  when a discharge of oil occurs or a particular duty arises under
    8-5  this chapter.
    8-6              (20) <(19)>  "Person responsible" or "responsible
    8-7  person" means:
    8-8                    (A)  the owner or operator of a vessel or
    8-9  terminal facility from which an unauthorized discharge of oil
   8-10  emanates or threatens to emanate;
   8-11                    (B)  in the case of an abandoned vessel or
   8-12  terminal facility, the person who would have been the responsible
   8-13  person immediately prior to the abandonment; and
   8-14                    (C)  any other person who causes, allows, or
   8-15  permits an unauthorized discharge of oil or threatened unauthorized
   8-16  discharge of oil.
   8-17              (21) <(20)>  "Pollution" means the presence of harmful
   8-18  quantities of oil from an unauthorized discharge in coastal waters
   8-19  or in or on adjacent waters, shorelines, estuaries, tidal flats,
   8-20  beaches, or marshes.
   8-21              (22) <(21)>  "Response costs" means:
   8-22                    (A)  with respect to an actual or threatened
   8-23  discharge of oil, all costs incurred in an attempt to prevent,
   8-24  abate, contain, and remove pollution from the discharge, including
   8-25  costs of removing vessels or structures under this chapter, and
    9-1  costs of any reasonable measures to prevent or limit damage to the
    9-2  public health, safety, or welfare, public or private property, or
    9-3  natural resources; or
    9-4                    (B)  with respect to an actual or threatened
    9-5  discharge of a hazardous substance, only costs incurred to
    9-6  supplement the response operations of the Texas Water Commission.
    9-7              (23) <(22)>  "Terminal facility" or "facility" means
    9-8  any waterfront or offshore pipeline, structure, equipment, or
    9-9  device used for the purposes of drilling for, pumping, storing,
   9-10  handling, or transferring oil and any pipeline, structure,
   9-11  equipment, or device used for the purposes of drilling for,
   9-12  pumping, storing, handling, or transferring oil which is operating
   9-13  where a discharge of oil from the facility could threaten coastal
   9-14  waters, including but not limited to any such facility owned or
   9-15  operated by a public utility or a governmental or
   9-16  quasi-governmental body.
   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 40.107, Natural Resources Code, is
   11-1  amended to read as follows:
   11-3  (a)  In any action to recover natural resources damages, the amount
   11-4  of damages established by the commissioner in conjunction with the
   11-5  <state-designated natural resources> trustees, according to the
   11-6  procedures and plans contained in the state coastal discharge
   11-7  contingency plan, shall create a rebuttable presumption of the
   11-8  amount of such damages.
   11-9        (b)  The commissioner may establish the rebuttable
  11-10  presumption by submitting to the court a written report of the
  11-11  amounts computed or expended according to the state plan.  The
  11-12  written report shall be admissible in evidence.
  11-13        (c)(1)  The commissioner shall develop an inventory that
  11-14  identifies and catalogs the physical locations, the seasonal
  11-15  variations in location, and the current condition of natural
  11-16  resources, including the recreational and commercial use areas that
  11-17  are most likely to suffer damage from an unauthorized discharge of
  11-18  oil.  The inventory shall be completed by December 1, 1994, and
  11-19  shall be incorporated into the state coastal discharge contingency
  11-20  plan after public review and comment.
  11-21              (2)  The physical locations surveyed for the inventory
  11-22  of natural resources shall include, at a minimum, the following
  11-23  priority areas:
  11-24                    (A)  the Galveston Bay system and the Houston
  11-25  Ship Channel;
   12-1                    (B)  the Corpus Christi Bay system;
   12-2                    (C)  Sabine Lake; and
   12-3                    (D)  federal and state wildlife refuge areas.
   12-4              (3)  The current condition of selected natural
   12-5  resources inventoried and cataloged shall be determined by, at a
   12-6  minimum, a baseline sampling and analysis of current levels of
   12-7  constituent substances selected after considering the types of oil
   12-8  most frequently transported through and stored near coastal waters.
   12-9              (4)  The commissioner shall develop administrative
  12-10  procedures and protocols for the assessment of natural resource
  12-11  damages from an unauthorized discharge of oil.  The procedures and
  12-12  protocols shall require the trustees to assess natural resource
  12-13  damages by considering the unique characteristics of the spill
  12-14  incident and the location of the natural resources affected.  These
  12-15  procedures and protocols shall be adopted by rule, after notice and
  12-16  public comment, by March 1, 1994, and shall be incorporated into
  12-17  the state coastal discharge contingency plan.
  12-18              (5)  The administrative procedures and protocols shall
  12-19  include provisions which address:
  12-20                    (A)  notification by the commissioner to all
  12-21  trustees in the event of an unauthorized discharge of oil;
  12-22                    (B)  coordination with and among trustees, spill
  12-23  response agencies, potentially responsible parties, experts in
  12-24  science and economics, and the public; and
  12-25                    (C)  participation in all stages of the
   13-1  assessment process by the potentially responsible party.
   13-2              (6)  The administrative procedures and protocols shall
   13-3  also require the trustees to:
   13-4                    (A)  assist the on-scene coordinator and the
   13-5  potentially responsible party, during spill response activities and
   13-6  prior to the time that the cleanup is deemed complete, in
   13-7  predicting the impact of the oil and in devising the most effective
   13-8  methods of protection for the natural resources at risk;
   13-9                    (B)  identify appropriate sampling and data
  13-10  collection techniques to efficiently determine the impact on
  13-11  natural resources of the unauthorized discharge of oil;
  13-12                    (C)  initiate, within 12 to  18 hours after
  13-13  approval for access to the site by the on-scene coordinator, an
  13-14  actual field investigation which includes sampling and data
  13-15  collection; the protocols shall require that the responsible party
  13-16  and the trustees be given, on request, split samples and copies of
  13-17  each other's photographs and expert reports utilized in assessing
  13-18  the impact of the unauthorized discharge of oil; and
  13-19                    (D)  establish restoration plans, including
  13-20  restoration alternatives that are cost-effective and efficient, to
  13-21  satisfy the goal of restoring, rehabilitating, replacing, and/or
  13-22  acquiring the equivalent of the damaged natural resources.
  13-23              (7)(A)  The administrative procedures and protocols
  13-24  shall also include the following types of assessment procedures and
  13-25  deadlines for their completion:
   14-1                          (i)  an expedited assessment procedure for
   14-2  use in situations in which the spill has limited observable
   14-3  mortality and restoration activities can be speedily initiated
   14-4  and/or in which the quantity of oil discharged does not exceed
   14-5  1,000 gallons; the purpose of utilizing the expedited assessment
   14-6  procedure is to allow prompt initiation of restoration,
   14-7  rehabilitation, replacement, and/or acquisition of an equivalent
   14-8  natural resource without lengthy analysis of the impact on affected
   14-9  natural resources; this procedure shall, at a minimum, require that
  14-10  the trustees consider the following items:
  14-11                                         (aa)  the quantity and
  14-12  quality of oil discharged;
  14-13                                         (bb)  the time period during
  14-14  which coastal waters are affected by the oil and the physical
  14-15  extent of the impact;
  14-16                                         (cc)  the condition of the
  14-17  natural resources prior to the unauthorized discharge of oil; and
  14-18                                         (dd)  the actual costs of
  14-19  restoring, rehabilitating, and/or acquiring the equivalent of the
  14-20  damaged natural resources;
  14-21                          (ii)  a comprehensive assessment procedure
  14-22  for use in situations in which expedited or negotiated assessment
  14-23  procedures are not appropriate; and
  14-24                          (iii)  any other assessment method agreed
  14-25  upon between the responsible person and the trustees, consistent
   15-1  with their public trust duties.
   15-2                    (B)  The trustees shall determine, within 60 days
   15-3  of the completion of cleanup response actions, whether:
   15-4                          (i)  action to restore, rehabilitate, or
   15-5  acquire an equivalent natural resource is required;
   15-6                          (ii)  restoration, including natural
   15-7  recovery, rehabilitation, replacement, and/or acquisition
   15-8  activities may be commenced; or
   15-9                          (iii)  a comprehensive assessment is
  15-10  necessary.
  15-11                    (C)  The trustees may petition the commissioner
  15-12  for a longer period of time to make the above determination by
  15-13  showing that the full impact of the discharge on the affected
  15-14  natural resources cannot be determined in 60 days.  The potentially
  15-15  responsible party shall make full payment within 60 days of notice
  15-16  of the assessment by the trustees or, if arbitration pursuant to
  15-17  Paragraph (F) of this subdivision is conducted, within 60 days of
  15-18  the final ruling of the arbitration panel.
  15-19                    (D)  The trustees shall complete the
  15-20  comprehensive assessment procedure within one year of the date the
  15-21  cleanup is deemed complete.  The trustees may petition the
  15-22  commissioner for a longer period of time to complete the assessment
  15-23  by showing that the full impact of the discharge on the affected
  15-24  natural resources cannot be determined in one year.
  15-25                    (E)  Any assessment generated by the trustees
   16-1  shall be reasonable and have a rational connection to the actual
   16-2  and direct costs of conducting the assessment and of restoring,
   16-3  rehabilitating, replacing, and/or acquiring the equivalent of the
   16-4  damaged natural resources.  The trustees shall ensure that the cost
   16-5  of any restoration, rehabilitation, replacement, or acquisition
   16-6  project shall not be disproportionate to the value of the public
   16-7  resource before the injury.  The trustees shall utilize the most
   16-8  cost-effective method to achieve restoration, rehabilitation,
   16-9  replacement, or acquisition of an equivalent resource.  Further,
  16-10  the trustees shall take into account the quality of the actions
  16-11  undertaken by the responsible party in response to the spill
  16-12  incident, including but not limited to containment and removal
  16-13  actions and protection and preservation of natural resources.
  16-14                    (F)  To facilitate an expedited recovery of funds
  16-15  for natural resource restoration and to assist the trustees and the
  16-16  responsible party in the settlement of disputed natural resource
  16-17  damage assessments at their discretion and at any time, all
  16-18  disputed natural resource damage assessments shall be referred to
  16-19  nonbinding arbitration as a prerequisite to the jurisdiction of any
  16-20  court.  Results of the arbitration shall be treated as settlement
  16-21  negotiations for the purpose of admissibility in a court of law.
  16-22  Either the trustees or the potentially responsible person may
  16-23  initiate the arbitration process, after an assessment has been
  16-24  issued, by giving written notice to the commissioner, who shall
  16-25  give written notice to all parties.  The three arbitrators for
   17-1  these disputes shall be a representative of the commissioner, a
   17-2  representative of the responsible person, and a third arbitrator
   17-3  selected by the two.  In the event the two arbitrators are unable
   17-4  to agree on a third arbitrator within five days, either party may
   17-5  request the American Arbitration Association to submit a list of
   17-6  five names from which the parties shall alternately strike one name
   17-7  until only one name remains, and the person remaining shall then
   17-8  serve as the third arbitrator.  The commissioner and the
   17-9  responsible party shall share equally in the cost of the third
  17-10  arbitrator and shall bear their own costs for all other matters
  17-11  associated with the arbitration.  Within 45 days from the receipt
  17-12  of the notice of assessment from the commissioner, the arbitrators
  17-13  shall be designated and within 120 days from the receipt of the
  17-14  notice of assessment from the commissioner, the arbitrators shall
  17-15  issue their nonbinding decision.
  17-16        SECTION 5.  Subsection (a), Section 40.152, Natural Resources
  17-17  Code, is amended to read as follows:
  17-18        (a)  Money in the fund may be disbursed for the following
  17-19  purposes and no others:
  17-20              (1)  administrative expenses, personnel and training
  17-21  expenses, and equipment maintenance and operating costs related to
  17-22  implementation and enforcement of this chapter;
  17-23              (2)  response costs related to abatement and
  17-24  containment of actual or threatened unauthorized discharges of oil
  17-25  incidental to unauthorized discharges of hazardous substances;
   18-1              (3)  response costs and damages related to actual or
   18-2  threatened unauthorized discharges of oil;
   18-3              (4)  assessment, restoration, rehabilitation, or
   18-4  replacement of or mitigation of damage to natural resources damaged
   18-5  by an unauthorized discharge of oil;
   18-6              (5)  in an amount not to exceed $50,000 annually, the
   18-7  small spill education program;
   18-8              (6)  in an amount not to exceed $1,250,000 annually,
   18-9  interagency contracts under Section 40.302 of this code;
  18-10              (7) <(6)>  the purchase of response equipment under
  18-11  Section 40.105 of this code within two years of the effective date
  18-12  of this chapter, in an amount not to exceed $4 million; thereafter,
  18-13  for the purchase of equipment to replace equipment that is worn or
  18-14  obsolete; <and>
  18-15              (8)  an inventory under Section 40.107 of this code, to
  18-16  be completed by December 1, 1994, in an amount not to exceed $5
  18-17  million; and
  18-18              (9) <(7)>  other costs and damages authorized by this
  18-19  chapter.
  18-20        SECTION 6.  Section 40.201, Natural Resources Code, is
  18-21  amended to read as follows:
  18-22        Sec. 40.201.  FINANCIAL RESPONSIBILITY.  (a)  Each owner or
  18-23  operator of a vessel subject to Section 40.114 of this code and
  18-24  operating within coastal waters or waters adjoining and accessible
  18-25  from coastal waters or any terminal facility subject to this code
   19-1  shall establish and maintain evidence of financial responsibility
   19-2  for costs and damages from unauthorized discharges of oil pursuant
   19-3  to federal law or in any other manner <a lesser amount as> provided
   19-4  in this chapter.
   19-5        (b)  If a vessel subject to Section 40.114 of this code or a
   19-6  terminal facility is not required under federal law to establish
   19-7  and maintain evidence of financial responsibility, the owner or
   19-8  operator of that vessel or terminal facility shall establish and
   19-9  maintain evidence in an amount and <a> form prescribed by rules
  19-10  promulgated under this code.
  19-11        (c)  Any owner or operator of a vessel that is a member of
  19-12  any protection and indemnity mutual organization, which is a member
  19-13  of the international group or insured by the Water Quality
  19-14  Insurance Syndicate or any other organization approved by the
  19-15  commissioner, and which is covered for oil pollution risks up to
  19-16  the amounts required by federal law is in compliance with the
  19-17  financial responsibility requirements of this chapter.  The
  19-18  commissioner shall specifically designate the organizations and the
  19-19  terms under which owners and operators of vessels shall demonstrate
  19-20  financial responsibility.
  19-21        (d)  After an unauthorized discharge of oil, a vessel shall
  19-22  remain in the jurisdiction of the commissioner until the owner,
  19-23  operator, or person in charge has shown the commissioner evidence
  19-24  of financial responsibility.  The commissioner may not detain the
  19-25  vessel longer than 12 hours after proving financial responsibility.
   20-1        (e) <(d)>  In addition to any other remedy or enforcement
   20-2  provision, the commissioner may suspend a registrant's discharge
   20-3  prevention and response certificate or may deny a vessel entry into
   20-4  any port in coastal waters for failure to comply with this section.
   20-5        SECTION 7.  Section 40.203, Natural Resources Code, is
   20-6  amended to read as follows:
   20-8  (a)  The commissioner, on behalf of the trustees, shall seek
   20-9  reimbursement from the federal fund for damages to natural
  20-10  resources in excess of the liability limits prescribed in Section
  20-11  40.202 of this code.  If that request is denied or additional money
  20-12  is required following receipt of the federal money, the
  20-13  commissioner has the authority to pay the requested reimbursement
  20-14  from the fund for a period of two years from the date the federal
  20-15  fund grants or denies the request for reimbursement.
  20-16        (b)  In addition to liability under Section 40.202 of this
  20-17  code, persons responsible for actual or threatened unauthorized
  20-18  discharges of oil are liable for <all> natural resources damages
  20-19  attributable to the discharge.
  20-20        (c)  The total liability for all natural resource damages of
  20-21  any person responsible for an actual or threatened unauthorized
  20-22  discharge of oil from a vessel shall not exceed the following:
  20-23              (1)  for a tank vessel, the greater of:
  20-24                    (A)  $1,200 per gross ton; or
  20-25                    (B)(i)  for a vessel greater than 3,000 gross
   21-1  tons, $10 million; or
   21-2                          (ii)  for a vessel of 3,000 gross   tons or
   21-3  less, $2 million; or
   21-4              (2)  for any other vessel, $600 per gross ton or
   21-5  $500,000, whichever is greater.
   21-6        (d)  There may be no double recovery of damages or response
   21-7  costs.
   21-8        SECTION 8.  Subsection (c), Section 40.255, Natural Resources
   21-9  Code, is repealed.
  21-10        SECTION 9.  Subchapter G, Chapter 40, Natural Resources Code,
  21-11  is amended by adding Section 40.304 to read as follows:
  21-12        Sec. 40.304.  SMALL SPILL EDUCATION PROGRAM.  The
  21-13  commissioner shall develop and conduct a voluntary spill prevention
  21-14  education program that targets small spills from commercial fishing
  21-15  vessels, offshore support vessels, ferries, cruise ships, ports,
  21-16  marinas, and recreational boats.  The small spill education program
  21-17  shall illustrate ways to reduce oil contamination of bilge water,
  21-18  accidental spills of motor oil and hydraulic fluid during routine
  21-19  maintenance, and spills during refueling.  The program shall
  21-20  illustrate proper disposal of oil and promote strategies to meet
  21-21  shoreside oil handling and disposal needs of targeted groups.  The
  21-22  program shall include a series of training materials and workshops
  21-23  and the development of educational materials.
  21-24        SECTION 10.  This Act takes effect September 1, 1993.
  21-25        SECTION 11.  The importance of this legislation and the
   22-1  crowded condition of the calendars in both houses create an
   22-2  emergency and an imperative public necessity that the
   22-3  constitutional rule requiring bills to be read on three several
   22-4  days in each house be suspended, and this rule is hereby suspended.