73R8923 MI-F
          By Uher                                               H.B. No. 2742
          Substitute the following for H.B. No. 2742:
          By Lewis                                          C.S.H.B. No. 2742
                                 A BILL TO BE ENTITLED
    1-1                                AN ACT
    1-2  relating to the petroleum storage tank program.
    1-3        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-4        SECTION 1.        Section 26.342, Water Code, is amended by
    1-5  amending Subsections (9), (10), and (12) to read as follows:
    1-6              (9)  "Petroleum product" means a regulated substance
    1-7  <petroleum product> that is obtained from distilling and processing
    1-8  crude oil and that is capable of being used as a fuel for the
    1-9  propulsion of a motor vehicle or aircraft, including motor
   1-10  gasoline, gasohol, other alcohol blended fuels, aviation gasoline,
   1-11  kerosene, distillate fuel oil, and #1 and #2 diesel.  The term does
   1-12  not include naphtha-type jet fuel, kerosene-type jet fuel, <or> a
   1-13  petroleum product destined for use in chemical manufacturing or as
   1-14  a feedstock of that manufacturing, or a petroleum product consumed
   1-15  at an electric generating facility.
   1-16              (10)  "Petroleum storage tank" means:
   1-17                    (A)  any one or combination of aboveground
   1-18  storage tanks and any connecting pipes that contain petroleum
   1-19  products and that are regulated by the commission; or
   1-20                    (B)  any one or combination of underground
   1-21  storage tanks and any connecting underground pipes that contain
   1-22  petroleum products and that are regulated by the commission.
   1-23              (12)  "Release" means any spilling (including
    2-1  overfills), leaking, emitting, discharging, escaping, leaching, or
    2-2  disposing from an underground storage tank or aboveground storage
    2-3  tank into groundwater, surface water, <or> subsurface soils, or
    2-4  onto the surface of the ground.
    2-5        SECTION 2.  Sections 26.344(b), (e), (f), and (g), Water
    2-6  Code, are amended to read as follows:
    2-7        (b)  A storage tank is exempt from regulation under this
    2-8  subchapter if the sole or principal substance in the tank is a
    2-9  hazardous substance and the tank is located:
   2-10              (1)  in an underground area, including a basement,
   2-11  cellar, mineworking, drift, shaft, or tunnel; and
   2-12              (2)  on or above the surface of a substantially
   2-13  impervious, nonearthen <the> floor of that area.
   2-14        (e)  Except for Section 26.351 and Sections 26.3573(d)(3) and
   2-15  (e) of this subchapter, in-ground hydraulic lifts that use a
   2-16  compressed air/hydraulic fluid system and hold less than 100
   2-17  gallons of hydraulic fluid <oil>, if exempt by the federal
   2-18  Environmental Protection Agency, are exempt under this subchapter.
   2-19        (f)  An aboveground storage tank that is located at or is
   2-20  part of a petrochemical plant, a petroleum refinery, an electric
   2-21  generating facility, or a bulk facility <as that term is defined by
   2-22  Section 26.3574(a) of this code> is exempt from regulation under
   2-23  this subchapter but is not exempt for purposes of the delivery fee
   2-24  imposed under Section 26.3574 of this code.  An aboveground storage
   2-25  tank at a bulk facility is exempt under this subsection only if the
    3-1  bulk facility meets the definition in Section 26.3574(a) of this
    3-2  code and if the bulk facility is properly permitted by the
    3-3  comptroller under Section 26.3574(g) of this code.
    3-4        (g)  Costs incurred as a result of a release from a storage
    3-5  tank system owned, operated, or maintained by a common carrier
    3-6  railroad are not reimbursable pursuant to the provisions of this
    3-7  subchapter <section>.  Common carrier railroads are exempt from the
    3-8  delivery fees collected pursuant to the provisions of Section
    3-9  26.3574 of this code <Act>.
   3-10        SECTION 3.  Section 26.351, Water Code, is amended by
   3-11  amending Subsection (d) and adding Subsections (f) and (g) to read
   3-12  as follows:
   3-13        (d)  The commission may adopt rules concerning circumstances
   3-14  under which the commission will perform corrective action under
   3-15  this subchapter.  The rules may include:
   3-16              (1)  a reasonable limitation on the extent and nature
   3-17  of the corrective action that the commission will undertake, which
   3-18  may be based on site-specific risks to human health or the
   3-19  environment;
   3-20              (2)  minimum requirements, including demonstration of
   3-21  financial need and other requirements, that must be met by an owner
   3-22  or operator, or by others, before the commission will undertake
   3-23  corrective action; and
   3-24              (3)  procedures for pursuing enforcement and cost
   3-25  recovery against owners or operators, and others, who fail or
    4-1  refuse to demonstrate compliance with requirements adopted by the
    4-2  commission under Subdivision (2) of this subsection <The commission
    4-3  may retain agents to take corrective action it considers necessary
    4-4  under this section.  The agents shall operate under the direction
    4-5  of the executive director.  Any expenses arising from corrective
    4-6  action taken by the commission or the executive director may be
    4-7  paid from the storage tank fund>.
    4-8        (f)  The commission shall adopt rules to regulate the
    4-9  handling, transportation, and storage of waste generated from a
   4-10  site where aboveground or underground storage tanks are located and
   4-11  for the registration of facilities where those waste materials are
   4-12  disposed of after treatment.  The rules shall not allow any waste
   4-13  materials that have contaminant levels greater than 0.5 mg./kg. for
   4-14  each component of benzene, toluene, ethylbenzene, and total xylenes
   4-15  and greater than 10.0 mg./kg. total petroleum hydrocarbons to be
   4-16  disposed of at a land disposal facility.
   4-17        (g)  The commission may adopt rules authorizing the storage,
   4-18  treatment, or disposal of media and debris from sources other than
   4-19  petroleum storage tanks that have been contaminated by petroleum
   4-20  substance and have physical and chemical properties similar in
   4-21  nature to waste materials generated from a site where aboveground
   4-22  or underground tanks are located at facilities registered pursuant
   4-23  to Subsection (f) of this section.  The rules shall prohibit media
   4-24  and debris that contain contaminant levels greater than 0.5 mg./kg.
   4-25  for each component of benzene, toluene, ethylbenzene, and total
    5-1  xylenes and greater than 10.0 mg./kg. total petroleum hydrocarbons
    5-2  to be treated or reused at a facility registered under Subsection
    5-3  (f) of this section unless the facility has:
    5-4              (1)  provisions for measuring volatile organic
    5-5  compounds;
    5-6              (2)  demonstrated that the treatment, reuse, or
    5-7  disposal will not make a significant contribution of air
    5-8  contaminants to the atmosphere; and
    5-9              (3)  demonstrated that as a result of reuse contaminant
   5-10  levels have been reduced to less than 0.5 mg./kg. for each
   5-11  component of benzene, toluene, ethylbenzene, and total xylenes and
   5-12  greater than 500.0 mg./kg. total petroleum hydrocarbons.
   5-13        SECTION 4.  Section 26.3511, Water Code, is amended by adding
   5-14  Subsection (c) to read as follows:
   5-15        (c)  In cases in which the commission undertakes corrective
   5-16  action under this section, the state, the commission, and their
   5-17  agents and employees may enter properties where contamination has
   5-18  resulted from releases of regulated substances from underground
   5-19  storage tanks or aboveground storage tanks and may conduct
   5-20  corrective action activities on those properties.
   5-21        SECTION 5.  Section 26.3512(e), Water Code, is amended to
   5-22  read as follows:
   5-23        (e)  An owner or operator shall pay under Subsection (b)(1)
   5-24  of this section the first expenses for corrective action taken for
   5-25  each occurrence as follows:
    6-1              (1)  a person who owns or operates 1,000 or more single
    6-2  petroleum storage tanks, the first $15,000 <$10,000>;
    6-3              (2)  a person who owns or operates not fewer than 100
    6-4  or more than 999 single petroleum storage tanks, the first $10,000
    6-5  <$5,000>;
    6-6              (3)  a person who owns or operates not fewer than 13 or
    6-7  more than 99 single petroleum storage tanks, the first $5,000
    6-8  <$2,500>; and
    6-9              (4)  a person who owns or operates fewer than 13 single
   6-10  petroleum storage tanks, the first $1,000.
   6-11        SECTION 6.  Section 26.353, Water Code, is amended to read as
   6-12  follows:
   6-13        Sec. 26.353.  COMMISSION ORDERS.  (a)  The commission may
   6-14  issue orders to enforce this subchapter and rules adopted under
   6-15  this subchapter in accordance with the procedures applicable to
   6-16  orders issued under Section 26.019 of this code.  The commission's
   6-17  authority in issuing orders under this section includes the
   6-18  authority granted under this chapter, including Subchapter D.
   6-19        (b)  The groundwater protection cleanup program established
   6-20  under Section 26.3572 of this code does not affect the commission's
   6-21  right to pursue enforcement orders with or without administrative
   6-22  penalties if any person <an owner or operator> violates this code,
   6-23  an order issued under this subchapter, or a rule adopted by the
   6-24  commission.
   6-25        SECTION 7.  Section 26.354(e), Water Code, is amended to read
    7-1  as follows:
    7-2        (e)  The executive director may issue orders under this
    7-3  section to the following persons:
    7-4              (1)  the owner of an underground storage tank or
    7-5  aboveground storage tank; <or>
    7-6              (2)  the operator of an underground storage tank or
    7-7  aboveground storage tank; or
    7-8              (3)  any other person who is determined by the
    7-9  executive director to be responsible for a release of a regulated
   7-10  substance from an underground storage tank or an aboveground
   7-11  storage tank.
   7-12        SECTION 8.  Section 26.355, Water Code, is amended to read as
   7-13  follows:
   7-14        Sec. 26.355.  RECOVERY OF COSTS.  (a)  If the commission has
   7-15  incurred any costs in undertaking corrective action or enforcement
   7-16  action with respect to the release of regulated substances from an
   7-17  underground or aboveground storage tank, the owner or the operator
   7-18  of the tank, or any other person determined by the commission to be
   7-19  responsible for the release, is liable to the state for all
   7-20  reasonable costs of those corrective and enforcement actions and
   7-21  for court costs and reasonable attorney's fees.
   7-22        (b)  An owner or operator of an underground or aboveground
   7-23  storage tank from which there is a release of a regulated substance
   7-24  <is released> is liable to the state unless the release was caused
   7-25  by:
    8-1              (1)  an act of God;
    8-2              (2)  an act of war;
    8-3              (3)  the negligence of the State of Texas or the United
    8-4  States; or
    8-5              (4)  an act or omission of a third party.
    8-6        (c)  The state's right to recover under this section arises
    8-7  whether or not the commission:
    8-8              (1)  uses funds from the storage tank fund, <or> the
    8-9  petroleum storage tank remediation fund, or any other appropriate
   8-10  source of funds; or
   8-11              (2)  receives or will receive funds from the state, the
   8-12  federal government, or any other source for the purpose of
   8-13  corrective action or enforcement.
   8-14        (d)  Except as provided by Subsections (e)-(g) of this
   8-15  section, if <If> the commission uses money from the petroleum
   8-16  storage tank remediation fund for corrective action or enforcement
   8-17  and if the costs are recovered under this section, the commission
   8-18  may not recover more than the amount of the applicable owner or
   8-19  operator contribution described by Section 26.3512(e) of this code
   8-20  from an eligible owner or operator for corrective action for each
   8-21  occurrence.
   8-22        (e)  Notwithstanding the limitations on cost recovery under
   8-23  Subsection (d) of this section, if the commission has used money
   8-24  from any source for the costs of enforcement action or corrective
   8-25  action in response to a release of regulated substances from an
    9-1  underground or aboveground storage tank, the eligibility of the
    9-2  owner, operator, or other person for reimbursement under this
    9-3  subchapter may be limited or denied by the commission, and the
    9-4  commission may pursue recovery of the costs under this subsection
    9-5  and Subsections (f) and (g) of this section.
    9-6        (f)  If the owner or operator of the tank, or any other
    9-7  person determined to be responsible for the release, fails or
    9-8  refuses to comply with the commission's requirements established
    9-9  under Section 26.351(d) of this code, the commission is entitled to
   9-10  recover up to the amount spent by the commission and any
   9-11  enforcement action costs and any administrative and civil penalties
   9-12  applicable to the release.
   9-13        (g)  If the owner or operator of the tank, or any other
   9-14  person determined to be responsible for the release, has submitted
   9-15  signed or certified documentation indicating compliance with the
   9-16  commission's requirements established under Section 26.351(d) of
   9-17  this code and this documentation is subsequently determined by the
   9-18  commission to be fraudulent, knowingly inaccurate, or otherwise
   9-19  intentionally not in conformance with the requirements established
   9-20  under Section 26.351(d), the commission is entitled to recover up
   9-21  to the total amount spent by the commission and any enforcement
   9-22  action costs and any administrative and civil penalties applicable
   9-23  to the release.
   9-24        (h)  An indemnification, hold harmless, or similar agreement
   9-25  or conveyance is not effective to transfer the liability imposed
   10-1  under this section from the owner or operator of an underground or
   10-2  aboveground storage tank or from a person who may be liable for a
   10-3  release or threat of release to any other person.  This section
   10-4  does not bar any agreement to insure, hold harmless, or indemnify a
   10-5  party to the agreement for any liability under this section.
   10-6        (i) <(f)>  This section does not bar a cause of action that
   10-7  an owner or operator or any other person subject to liability under
   10-8  this section or a guarantor has or would have by reason of
   10-9  subrogation or otherwise against any person.
  10-10        (j) <(g)>  At the request of the commission, the attorney
  10-11  general shall initiate court proceedings to recover costs under
  10-12  this section.
  10-13        (k) <(h)>  Except as provided by Subsection (l) <(i)> of this
  10-14  section, money recovered in a court proceeding under this section
  10-15  shall be deposited in the State Treasury to the credit of the
  10-16  storage tank fund.
  10-17        (l) <(i)>  If the commission uses money from the petroleum
  10-18  storage tank remediation fund for corrective action or enforcement
  10-19  as provided by this subchapter, money recovered in a court
  10-20  proceeding under this section shall be deposited in the state
  10-21  treasury to the credit of the petroleum storage tank remediation
  10-22  fund.
  10-23        SECTION 9.  Sections 26.356(a), (b), and (c), Water Code, are
  10-24  amended to read as follows:
  10-25        (a)  For the purposes of developing or assisting in the
   11-1  development of a regulation, conducting a study, or enforcing this
   11-2  subchapter, an owner or operator of an underground storage tank or
   11-3  aboveground storage tank, on the request of the commission, shall:
   11-4              (1)  furnish information relating to the tank,
   11-5  including tank equipment and contents; and
   11-6              (2)  permit a designated agent or employee of the
   11-7  commission at all reasonable times to have access to and to copy
   11-8  all records relating to the tank.
   11-9        (b)  For the purposes of developing or assisting in the
  11-10  development of a regulation, conducting a study, conducting
  11-11  corrective action activities, or enforcing this subchapter, the
  11-12  commission, its designated agent, or employee may:
  11-13              (1)  enter at reasonable times an establishment or
  11-14  place in which an underground storage tank or aboveground storage
  11-15  tank is located or any property that has been or is suspected to be
  11-16  contaminated by either a release from the tank or waste generated
  11-17  from the tank;
  11-18              (2)  inspect and obtain samples of any <a> regulated
  11-19  substance contained in the tank, or of any waste generated from the
  11-20  use of the tank, from any person; <and>
  11-21              (3)  conduct monitoring or testing of the tank,
  11-22  associated equipment, contents, or surrounding soils, air, surface
  11-23  water, or groundwater; and
  11-24              (4)  perform any corrective action authorized by this
  11-25  subchapter.
   12-1        (c)  The commission may order an owner or an operator of an
   12-2  underground storage tank or aboveground storage tank to conduct
   12-3  monitoring, <and> testing, corrective action, and other activities
   12-4  consistent with the purposes of this subchapter if the commission
   12-5  finds that there is reasonable cause to believe that a release has
   12-6  occurred or could occur in the area in which the underground or
   12-7  aboveground storage tank is located.
   12-8        SECTION 10.  Section 26.3571(d), Water Code, is amended to
   12-9  read as follows:
  12-10        (d)  In determining whether an owner or operator is in
  12-11  compliance with this subchapter, the commission may consider such
  12-12  factors as the owner's or operator's compliance with tank
  12-13  registration, annual facility fee payments, financial
  12-14  responsibility, tank standards, release detection, closure
  12-15  standards, release <and> reporting, and corrective action
  12-16  requirements.
  12-17        SECTION 11.  Sections 26.3573(d), (f), (g), (h), (i), and
  12-18  (k), Water Code, are amended to read as follows:
  12-19        (d)  The commission may use the money in the petroleum
  12-20  storage tank remediation fund to pay:
  12-21              (1)  necessary expenses associated with the
  12-22  administration of the petroleum storage tank remediation fund and
  12-23  the groundwater protection cleanup program, not to exceed an amount
  12-24  equal to five <three> percent of the gross receipts of that fund,
  12-25  provided that the increment between two and three percent of the
   13-1  gross receipts may be used only to pay administrative expenses
   13-2  associated with regulating petroleum storage tanks, reimbursing
   13-3  eligible owners and operators, and disposing of contaminated soils;
   13-4              (2)  expenses associated with investigation, cleanup,
   13-5  or corrective action measures performed in response to a release or
   13-6  threatened release from a petroleum storage tank, whether those
   13-7  expenses are incurred by the commission or pursuant to a contract
   13-8  between a contractor and an eligible owner or operator as
   13-9  authorized by this subchapter; and
  13-10              (3)  subject to the conditions of Subsection (e) of
  13-11  this section, expenses associated with investigation, cleanup, or
  13-12  corrective action measures performed in response to a release or
  13-13  threatened release of hydraulic fluid or spent oil from hydraulic
  13-14  lift systems or tanks located at a vehicle service and fueling
  13-15  facility and used as part of the operations of that facility.
  13-16        (f)  The commission, in accordance with this subchapter and
  13-17  rules adopted under this subchapter, may:
  13-18              (1)  contract directly with a person to perform
  13-19  corrective action and pay the contractor from the petroleum storage
  13-20  tank remediation fund;
  13-21              (2)  reimburse an eligible owner or operator from the
  13-22  petroleum storage tank remediation fund for the reasonable and
  13-23  allowable expenses of corrective action performed on or after
  13-24  September 1, 1987; or
  13-25              (3)  pay the reasonable and allowable portions of the
   14-1  claim of a person who has contracted with an eligible owner or
   14-2  operator to perform corrective action with funds from the petroleum
   14-3  storage tank remediation fund, provided that the eligible owner or
   14-4  operator has authorized the payment in writing.
   14-5        (g)  The commission shall administer the petroleum storage
   14-6  tank remediation fund and by rule adopt guidelines and procedures
   14-7  for the use of and eligibility for that fund as the commission
   14-8  finds necessary to:
   14-9              (1)  make the most efficient use of the money
  14-10  available, including:
  14-11                    (A)  establishing priorities for payments from
  14-12  the fund; and
  14-13                    (B)  suspending payments from the fund if
  14-14  necessary; and
  14-15              (2)  provide the most effective protection to the
  14-16  environment and provide for the public health and safety.
  14-17        (h)  Consistent with the objectives provided under Subsection
  14-18  (g) of this section and this subchapter, the commission may by rule
  14-19  adopt:
  14-20              (1)  requirements or guidelines the commission
  14-21  considers necessary for determining the amounts that may be paid
  14-22  from the petroleum storage tank remediation fund, which may include
  14-23  criteria for determining and establishing the eligibility,
  14-24  allowability, and reasonableness of various types of corrective
  14-25  action expenses as a condition for reimbursement;
   15-1              (2)  requirements or guidelines concerning the
   15-2  procedures, forms, and documentation required for the processing of
   15-3  claims and reimbursements <reimbursement> for expenses incurred by
   15-4  an eligible owner or operator and covered under Section 26.3512(d)
   15-5  of this code; <and>
   15-6              (3)  procedures for reviewing and evaluating claims for
   15-7  reimbursement from the petroleum storage tank remediation fund and
   15-8  criteria for denying reimbursement for all or portions of a claim;
   15-9  and
  15-10              (4)  procedures and criteria for reviewing, evaluating,
  15-11  and auditing any prior payments made from the petroleum storage
  15-12  tank remediation fund, either on petition or on the commission's
  15-13  own motion, and for the cost recovery of any overpayments or
  15-14  erroneous payments made after the fiscal year beginning September
  15-15  1, 1992, the audit procedures to be based on the rules and law in
  15-16  effect at the time the work for which payment was made was
  15-17  performed <minimum qualifications the commission considers
  15-18  necessary for a person with whom an eligible owner or operator may
  15-19  contract to participate in corrective action>.
  15-20        (i)(1)  The commission shall ensure that corrective action
  15-21  activities under this subchapter are conducted in accordance with
  15-22  The Texas Engineering Practice Act (Article 3271a, Vernon's Texas
  15-23  Civil Statutes) and that plans and specifications, as appropriate,
  15-24  are prepared by a registered professional engineer.  The commission
  15-25  may:
   16-1                    (A)  implement by rule a registration program for
   16-2  persons who contract with an owner or operator of an underground
   16-3  storage tank or aboveground storage tank, or with any other person,
   16-4  to perform corrective action construction activities <and may
   16-5  require registration and the use of registered contractors as a
   16-6  prerequisite to receiving money from the petroleum storage tank
   16-7  remediation fund for corrective action> under this subchapter;
   16-8                    (B)  adopt minimum qualifications that the
   16-9  commission considers necessary for a person with whom an eligible
  16-10  owner or operator may contract to participate in corrective action
  16-11  construction activities;
  16-12                    (C)  require registration and the use of
  16-13  registered contractors and may require the use of qualified
  16-14  registered professional engineers as a prerequisite to the payment
  16-15  of money from the petroleum storage tank remediation fund for
  16-16  corrective action under this subchapter; and
  16-17                    (D)  establish by rule a schedule of fees and
  16-18  charges to cover the costs of administering the registration
  16-19  program, including fees for application processing, printing
  16-20  certificates, conducting examinations, and other similar
  16-21  activities, subject to Section 26.438 of this code, and the funds
  16-22  collected from the fees and charges shall be deposited in the state
  16-23  treasury to the credit of the storage tank fund.
  16-24              (2)  A person who violates an order or rule adopted by
  16-25  the commission under this subsection is subject to Section 26.353
   17-1  of this code.
   17-2              (3)  The registration program and the provision for
   17-3  establishment of minimum qualifications established under this
   17-4  subsection do not apply to registered professional engineers.
   17-5        (k)(1)  The commission shall satisfy a claim for payment that
   17-6  is eligible to be paid under this subchapter and the rules adopted
   17-7  under this subchapter made by a contractor, from the petroleum
   17-8  storage tank remediation fund as provided by Chapter 82, Acts of
   17-9  the 69th Legislature, Regular Session, 1985 (Article 601f, Vernon's
  17-10  Texas Civil Statutes), regardless of whether the commission:
  17-11                    (A) <(1)>  contracts directly for the goods or
  17-12  services; or
  17-13                    (B) <(2)>  pays a claim under a contract executed
  17-14  by a petroleum storage tank owner or operator.
  17-15              (2)  If at any time the petroleum storage tank
  17-16  remediation fund has insufficient balances to satisfy claims
  17-17  presented against the fund, Chapter 82, Acts of the 69th
  17-18  Legislature, Regular Session, 1985 (Article 601f, Vernon's Texas
  17-19  Civil Statutes), is suspended until there are sufficient funds to
  17-20  pay the claims or until September 1, 1995, whichever is earlier.
  17-21        SECTION 12.  Subchapter I, Chapter 26, Water Code, is amended
  17-22  by adding Section 26.35735 to read as follows:
  17-23        Sec. 26.35735.  CLAIMS AUDIT.  (a)  The commission may
  17-24  conduct audits of claims for payment from the petroleum storage
  17-25  tank remediation fund made after the fiscal year beginning
   18-1  September 1, 1992.  The audits shall be based on the rules and law
   18-2  in effect at the time the work for which payment was made was
   18-3  performed.
   18-4        (b)  The commission shall conduct the audits in accordance
   18-5  with generally accepted accounting standards as prescribed by the
   18-6  American Institute of Certified Public Accountants, the
   18-7  Governmental Accounting Standards Board, the United States General
   18-8  Accounting Office, or other professionally recognized entities that
   18-9  prescribe auditing standards.
  18-10        (c)  The commission may use generally recognized sampling
  18-11  techniques to audit claims if the commission determines that the
  18-12  use of those techniques would be cost effective and would promote
  18-13  greater efficiency in administering claims for payment from the
  18-14  petroleum storage tank remediation fund.
  18-15        (d)  The commission may adopt rules necessary to implement
  18-16  this section.
  18-17        SECTION 13.  Section 26.3574(a)(1), Water Code, is amended to
  18-18  read as follows:
  18-19              (1)  "Bulk facility" means a <facility, including>
  18-20  pipeline terminal <terminals>, refinery terminal <terminals>, rail,
  18-21  <and> barge terminal <terminals>, all <and> associated underground
  18-22  and aboveground tanks, whether connected or separate, where
  18-23  petroleum products are stored in bulk and from which petroleum
  18-24  products are withdrawn from bulk for delivery directly <and
  18-25  delivered> into a cargo tank or a barge for <used to> transport to
   19-1  another location for distribution or sale in this state <those
   19-2  products.  This term does not include petroleum products consumed
   19-3  at an electric generating facility>.
   19-4        SECTION 14.  Section 26.358(b), Water Code, is amended to
   19-5  read as follows:
   19-6        (b)  The storage tank fund consists of money collected by the
   19-7  commission from:
   19-8              (1)  fees imposed on facilities with underground or
   19-9  aboveground storage tanks used for the storage of regulated
  19-10  substances;
  19-11              (2)  the interest and penalties imposed under this
  19-12  section for the late payment of those fees;
  19-13              (3)  funds received from cost recovery for corrective
  19-14  and enforcement actions taken under this subchapter, except as
  19-15  provided by Subsection (c) of this section;
  19-16              (4)  funds received from insurers, guarantors, or other
  19-17  sources of financial responsibility; <and>
  19-18              (5)  funds from the federal government and other
  19-19  sources for use in connection with the storage tank program;
  19-20              (6)  fees collected under the commission's program for
  19-21  the registration of underground storage tank contractors and for
  19-22  the licensing of underground storage tank installers and on-site
  19-23  supervisors, as provided by Subchapter K of this code;
  19-24              (7)  fees collected under the commission's program for
  19-25  the registration of contractors who contract to perform corrective
   20-1  action, and the individuals who supervise corrective action
   20-2  activities, as provided in Section 26.3573(i)(1)(C) of this
   20-3  subchapter;
   20-4              (8)  fees collected under the commission's waste
   20-5  management program, as provided by Section 26.351(f) of this
   20-6  subchapter; and
   20-7              (9)  administrative penalties collected under Sections
   20-8  26.136 and 26.353 of this code.
   20-9        SECTION 15.  Chapter 26, Water Code, is amended by adding
  20-10  Subchapter K to read as follows:
  20-11          SUBCHAPTER K.  UNDERGROUND STORAGE TANK INSTALLERS
  20-12        Sec. 26.431.  REGISTRATION AND LICENSING OF UNDERGROUND
  20-13  STORAGE TANK INSTALLERS.  For the purposes of assuring that the
  20-14  standards adopted under Sections 26.347, 26.348, and 26.350 of this
  20-15  code are implemented, the commission may establish a regulatory
  20-16  program for the registration of contractors who engage in the
  20-17  business of underground storage tank installation, repair, or
  20-18  removal and for the licensing of individuals who perform or
  20-19  supervise the installation, repair, or removal of underground
  20-20  storage tanks.
  20-21        Sec. 26.432.  DEFINITIONS.  In this subchapter:
  20-22              (1)  "Certificate of registration" means the document
  20-23  issued to an underground storage tank contractor under Section
  20-24  26.433 of this code authorizing the contractor to engage in the
  20-25  underground storage tank business in this state.
   21-1              (2)  "Critical juncture" means, in the case of an
   21-2  installation, repair, or removal, any of the following steps:
   21-3                    (A)  preparation of the tank bedding immediately
   21-4  prior to receiving the tank;
   21-5                    (B)  setting of the tank and the piping,
   21-6  including placement of any anchoring devices, backfill to the level
   21-7  of the tank, and strapping, if any;
   21-8                    (C)  connection of piping systems to the tank;
   21-9                    (D)  all pressure testing of the underground
  21-10  storage tank, including associated piping, performed during the
  21-11  installation;
  21-12                    (E)  completion of backfill and filling of the
  21-13  excavation;
  21-14                    (F)  any time during the repair in which the
  21-15  piping system is connected or reconnected to the tank;
  21-16                    (G)  any time during the repair in which the tank
  21-17  or its associated piping is tested; or
  21-18                    (H)  any time during the removal of the tank.
  21-19              (3)  "Installation" means the installation of
  21-20  underground storage tanks and ancillary equipment.
  21-21              (4)  "Installer" means a person who participates in or
  21-22  supervises the installation, repair, or removal of underground
  21-23  storage tanks.
  21-24              (5)  "License" means the document issued to an
  21-25  installer or on-site supervisor under Section 26.434 of this code
   22-1  authorizing the installer or supervisor to engage in the
   22-2  underground storage tank business in this state.
   22-3              (6)  "On-site supervisor" means:
   22-4                    (A)  a professional engineer registered to
   22-5  practice in this state who has met the licensing requirements under
   22-6  this subchapter; or
   22-7                    (B)  an individual with at least two years of
   22-8  active experience in the vocation of installation of underground
   22-9  storage tanks, underground utilities, or other engineering
  22-10  construction in this state and who meets the licensing requirements
  22-11  under this subchapter.
  22-12              (7)  "Removal" means the process of removing and
  22-13  disposing of an underground storage tank that is no longer in
  22-14  service, or the process of abandoning an underground storage tank
  22-15  in place after purging the tank of vapors and filling the vessel of
  22-16  the tank with an inert material.
  22-17              (8)  "Repair" means the modification or correction of
  22-18  an underground storage tank and ancillary equipment.  The term does
  22-19  not include:
  22-20                    (A)  relining an underground storage tank through
  22-21  the application of epoxy resins or similar materials;
  22-22                    (B)  the performance of a tightness test to
  22-23  ascertain the integrity of the tank;
  22-24                    (C)  the maintenance and inspection of cathodic
  22-25  protection devices by a corrosion expert or corrosion technician;
   23-1                    (D)  emergency actions to halt or prevent leaks
   23-2  or ruptures; or
   23-3                    (E)  minor maintenance on ancillary aboveground
   23-4  equipment.
   23-5              (9)  "Underground storage tank" has the meaning
   23-6  assigned by Section 26.342 of this code.
   23-7        Sec. 26.433.  CERTIFICATE OF REGISTRATION.  (a)  An
   23-8  underground storage tank contractor must apply to the commission
   23-9  for a certificate of registration on a form prescribed by the
  23-10  commission.  If the contractor is a partnership or joint venture,
  23-11  the contractor need not register in its own name if each partner or
  23-12  joint venture is registered.
  23-13        (b)  A certificate of registration is valid for one year
  23-14  after the date it is issued and is renewable annually on payment of
  23-15  the annual fee.
  23-16        (c)  A certificate of registration must be posted in a
  23-17  conspicuous place in the contractor's place of business.
  23-18        (d)  All bids, proposals, offers, and installation drawing
  23-19  must prominently display the contractor's certificate of
  23-20  registration number.
  23-21        (e)  A certificate of registration issued under this section
  23-22  is not transferable.
  23-23        Sec. 26.434.  LICENSE REQUIRED.  (a)  Except as provided by
  23-24  Subsection (b) of this section, an underground storage tank may not
  23-25  be installed, repaired, or removed except by an underground storage
   24-1  tank contractor who has an installer or an on-site supervisor who
   24-2  is licensed by the commission under Section 26.437 at the site at
   24-3  all times during the critical junctures of the installation,
   24-4  repair, or removal.
   24-5        (b)  This section does not apply to the installation of a
   24-6  storage tank or other facility exempt from regulation under Section
   24-7  26.344, Water Code.
   24-8        Sec. 26.435.  POWERS AND DUTIES OF COMMISSION.  (a)  The
   24-9  commission shall prescribe application forms for original and
  24-10  renewal licenses.
  24-11        (b)  The commission shall adopt rules for the licensing of
  24-12  installers and on-site supervisors.
  24-13        (c)  The commission may adopt rules relating to continuing
  24-14  education requirements for installers and on-site supervisors.
  24-15        Sec. 26.436.  EXAMINATION.  (a)  At times and places
  24-16  designated by the commission, the commission shall conduct an
  24-17  examination of applicants for licensing as installers and on-site
  24-18  supervisors.
  24-19        (b)  The commission shall prescribe the contents of the
  24-20  examination.  Questions used in the examination must be derived
  24-21  from standards, instructions, and recommended practices published
  24-22  by  organizations with expertise in various aspects of
  24-23  installation, removal, and repair of underground storage tanks,
  24-24  including the:
  24-25              (1)  Petroleum Equipment Institute;
   25-1              (2)  American Petroleum Institute;
   25-2              (3)  Steel Tank Institute;
   25-3              (4)  National Association of Corrosion Engineers;
   25-4              (5)  Fiberglass Petroleum Tank and Pipe Institute; and
   25-5              (6)  National Fire Protection Association.
   25-6        (c)  The commission shall determine standards for acceptable
   25-7  performance on the examination.
   25-8        (d)  If requested by a license applicant who fails the
   25-9  examination, the commission shall provide to the applicant an
  25-10  analysis of the applicant's performance on the examination.
  25-11        Sec. 26.437.  LICENSE.  (a)  The commission shall issue an
  25-12  installer or on-site supervisor license to an applicant who:
  25-13              (1)  is at least 18 years of age;
  25-14              (2)  meets the application requirements prescribed by
  25-15  commission rule, including experience in installation of
  25-16  underground storage tanks, underground utilities, or other
  25-17  engineering construction in this state, not to exceed two years of
  25-18  active experience;
  25-19              (3)  passes the licensing examination;
  25-20              (4)  pays the application, examination, and licensing
  25-21  fees; and
  25-22              (5)  meets reasonable training requirements as
  25-23  determined by the commission.
  25-24        (b)  A license issued under this section is valid throughout
  25-25  this state but is not assignable or transferable.
   26-1        (c)  A license is valid for one year and may be renewed
   26-2  annually on or before February 1 on payment of the required renewal
   26-3  fee and presentation of evidence satisfactory to the commission of
   26-4  compliance with any continuing education requirements adopted by
   26-5  the commission.
   26-6        (d)  If a licensee fails to renew the license by the required
   26-7  date, the licensee may renew the license on payment of the renewal
   26-8  fee and a late fee set by the commission.  If the license is not
   26-9  renewed earlier than one year after the date on which the license
  26-10  expired, the licensee must retake the licensing examination
  26-11  administered by the commission.
  26-12        Sec. 26.438.  FEES.  The commission shall charge necessary
  26-13  fees to defray the costs of administering this subchapter, which
  26-14  shall be deposited in the state treasury to the credit of the
  26-15  storage tank fund and shall be used by the commission in
  26-16  administering this subchapter.  The fees shall be established by
  26-17  rule of the commission in an amount sufficient to recover the
  26-18  reasonable costs of administering this section but not to exceed
  26-19  the following fee schedule:
  26-20              (1)  examination ................................. $ 50
  26-21              (2)  initial license application ................. $200
  26-22              (3)  annual license renewal ...................... $175
  26-23              (4)  late renewal ................................ $ 25
  26-24              (5)  duplicate license ........................... $ 10
  26-25              (6)  certificate of registration application ..... $ 50
   27-1              (7)  certificate of registration issuance ........ $100
   27-2              (8)  certificate      of      registration     issuance
   27-3                     renewal ................................... $ 75
   27-4              (9)  duplicate certificate or license ............ $ 10
   27-5              (10)  application to change certificate .......... $ 70
   27-6        Sec. 26.439.  DENIAL, SUSPENSION, OR REVOCATION OF LICENSE OR
   27-7  CERTIFICATION OF REGISTRATION; REINSTATEMENT.  (a)  The commission
   27-8  may deny, suspend, revoke, or reinstate a license or certificate of
   27-9  registration.
  27-10        (b)  The commission shall adopt rules establishing the ground
  27-11  for denial, suspension, revocation, or reinstatement of a license
  27-12  or certificate of registration, and establishing procedures for
  27-13  disciplinary actions.
  27-14        (c)  Proceedings relating to the suspension or revocation of
  27-15  a license or certificate of registration issued under this section
  27-16  are subject to the Administrative Procedure and Texas Register Act
  27-17  (Article 6252-13a, Vernon's Texas Civil Statutes).
  27-18        (d)  A person whose license or certificate of registration
  27-19  has been revoked may apply for a new license or certificate of
  27-20  registration after the expiration of one year from the date of the
  27-21  revocation.
  27-22        Sec. 26.440.  Penalties.  (a)  A person commits an offense if
  27-23  the person supervises the installation, repair, or removal of an
  27-24  underground storage tank in a manner that fails to comply with
  27-25  Section 26.434 of this code.
   28-1        (b)  An offense under Subsection (a) of this section is a
   28-2  Class A misdemeanor.
   28-3        (c)  A person committing an offense under Subsection (a) of
   28-4  this section may be assessed a civil penalty by the commission in
   28-5  an amount not to exceed $2,500 for each day of violation.
   28-6        (d)  If an owner fails to comply with Section 26.434 of this
   28-7  code, or a rule adopted by the commission to implement this
   28-8  subchapter, the person may be assessed a civil penalty by the
   28-9  commission in an amount not to exceed $2,500 for each day of the
  28-10  violation.
  28-11        SECTION 16.  Chapter 244, Acts of the 71st Legislature,
  28-12  Regular Session, 1989 (Article 8900, Vernon's Texas Civil
  28-13  Statutes), is repealed.
  28-14        SECTION 17.  A license or registration issued under Chapter
  28-15  244, Acts of the 71st Legislature, Regular Session, 1989 (Article
  28-16  8900, Vernon's Texas Civil Statutes), is valid for the term of the
  28-17  license or registration under that law on and after the effective
  28-18  date of this Act.
  28-19        SECTION 18.  The change in law made by Section 26.3512(e),
  28-20  Water Code, as amended by this Act, applies only to an owner or
  28-21  operator who undertakes corrective action under Subchapter I, Water
  28-22  Code, on or after the effective date of this Act.
  28-23        SECTION 19.  The importance of this legislation and the
  28-24  crowded condition of the calendars in both houses create an
  28-25  emergency and an imperative public necessity that the
   29-1  constitutional rule requiring bills to be read on three several
   29-2  days in each house be suspended, and this rule is hereby suspended,
   29-3  and that this Act take effect and be in force from and after its
   29-4  passage, and it is so enacted.