S.B. No. 1049
AN ACT
1-1 relating to the prevention of, the damage, cleanup, and costs
1-2 related to, and liability for oil spills in coastal waters of the
1-3 state; providing for response to the discharge of oil and other
1-4 pollutants in the coastal waters of the state; authorizing
1-5 appropriations from the coastal protection fund.
1-6 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-7 SECTION 1. Section 40.002, Natural Resources Code, is
1-8 amended to read as follows:
1-9 Sec. 40.002. POLICY. (a) The legislature finds and
1-10 declares that the preservation of the Texas coast is a matter of
1-11 the highest urgency and priority. It is the policy of this state
1-12 to keep its coastal waters, rivers, lakes, estuaries, marshes,
1-13 tidal flats, beaches, and public lands as pristine as possible,
1-14 taking into account multiple use accommodations necessary to
1-15 provide the broadest possible promotion of public and private
1-16 interests. Spills, discharges, and escapes of crude oil,
1-17 petroleum, and other such substances resulting from their handling,
1-18 storage, and transportation, particularly by vessel, endanger the
1-19 coastal environment of the state, public and private property on
1-20 the coast, and the well-being of those deriving their livelihood
1-21 from marine-related activity in coastal waters. The hazards posed
1-22 by the handling, storage, and transportation of these substances in
1-23 the coastal waters are contrary to the paramount interests of the
2-1 state. These state interests outweigh the economic burdens imposed
2-2 under this chapter.
2-3 (b) The legislature finds and declares that the natural
2-4 resources of the state and particularly those in the coastal waters
2-5 of the state offer significant benefits to the citizens of Texas.
2-6 These natural resources are important for their existence and their
2-7 recreational, aesthetic, and commercial value. It is the policy of
2-8 the state to protect these natural resources and to restore,
2-9 rehabilitate, replace, and/or acquire the equivalent of these
2-10 natural resources with all deliberate speed when they have been
2-11 damaged. The legislature finds and declares that it is difficult
2-12 to assess the value of these natural resources and to quantify
2-13 injury to natural resources at a reasonable cost. The procedures
2-14 and protocols utilized by the trustees must therefore consider the
2-15 unique characteristics of each spill incident and the location of
2-16 the natural resources affected. It is the intent of the
2-17 legislature that natural resource damage assessment methodologies
2-18 be developed for the purpose of reasonably valuing the natural
2-19 resources of the State of Texas in the event of an oil spill and
2-20 that the state recover monetary damages or have actions commenced
2-21 by the spiller as early as possible to expedite the restoration,
2-22 rehabilitation, and/or replacement of injured natural resources.
2-23 (c) The legislature intends by this chapter to exercise the
2-24 police power of the state to protect its coastal waters and
2-25 adjacent shorelines by conferring upon the Commissioner of the
3-1 General Land Office the power to:
3-2 (1) prevent spills and discharges of oil by requiring
3-3 and monitoring preventive measures and response planning;
3-4 (2) provide for prompt response to abate and contain
3-5 spills and discharges of oil and ensure the removal and cleanup of
3-6 pollution from such spills and discharges;
3-7 (3) provide for development of a state coastal
3-8 discharge contingency plan through planning and coordination with
3-9 the Texas Water Commission to protect coastal waters from all types
3-10 of spills and discharges; and
3-11 (4) administer a fund to provide for funding these
3-12 activities and to guarantee the prompt payment of certain
3-13 reasonable claims resulting from spills and discharges of oil.
3-14 (d) <(c)> The legislature declares that it is the intent of
3-15 this chapter to support and complement the Oil Pollution Act of
3-16 1990 (Pub. L. 101-380) and other federal law, specifically those
3-17 provisions relating to the national contingency plan for cleanup of
3-18 oil and hazardous substance spills and discharges, including
3-19 provisions relating to the responsibilities of state agencies
3-20 designated as natural resources trustees. The legislature intends
3-21 this chapter to be interpreted and implemented in a manner
3-22 consistent with federal law.
3-23 SECTION 2. Section 40.003, Natural Resources Code, is
3-24 amended to read as follows:
3-25 Sec. 40.003. DEFINITIONS. In this chapter:
4-1 (1) "Barrel" means 42 United States gallons at 60
4-2 degrees Fahrenheit.
4-3 (2) "Coastal waters" means the waters and bed of the
4-4 Gulf of Mexico within the jurisdiction of the State of Texas,
4-5 including the arms of the Gulf of Mexico subject to tidal
4-6 influence, and any other waters contiguous thereto that are
4-7 navigable by vessels with a capacity to carry 10,000 gallons or
4-8 more of oil as fuel or cargo.
4-9 (3) "Commissioner" means the Commissioner of the
4-10 General Land Office.
4-11 (4) "Comprehensive assessment method" means a method
4-12 including sampling, modeling, and other appropriate scientific
4-13 procedures to make a reasonable and rational determination of
4-14 injury to natural resources resulting from an unauthorized
4-15 discharge of oil.
4-16 (5) "Comptroller" means the comptroller of public
4-17 accounts.
4-18 (6) <(5)> "Crude oil" means any naturally occurring
4-19 liquid hydrocarbon at atmospheric temperature and pressure coming
4-20 from the earth, including condensate.
4-21 (7) <(6)>(A) "Damages" means compensation:
4-22 (i) to an owner, lessee, or trustee for
4-23 any direct, documented loss of, injury to, or loss of use of any
4-24 real or personal property or natural resources injured <damaged> by
4-25 an unauthorized discharge of oil;
5-1 (ii) to a state or local government for
5-2 any direct, documented net loss of taxes or net costs of increased
5-3 entitlements or public services; or
5-4 (iii) to persons, including but not
5-5 limited to holders of an oyster lease or permit; persons owning,
5-6 operating, or employed on commercial fishing, oystering, crabbing,
5-7 or shrimping vessels; persons owning, operating, or employed by
5-8 seafood processing concerns; and others similarly economically
5-9 reliant on the use or acquisition of natural resources for any
5-10 direct, documented loss of income, profits, or earning capacity
5-11 from the inability of the claimant to use or acquire natural
5-12 resources arising solely from injury <damage> to the natural
5-13 resources from an unauthorized discharge of oil.
5-14 (B) With respect to natural resources, "damages"
5-15 includes the cost to assess, restore, rehabilitate, or replace
5-16 injured <damaged> natural resources, or to mitigate further injury
5-17 <damage>, and their diminution in value after such restoration,
5-18 rehabilitation, replacement, or mitigation.
5-19 (8) <(7)> "Discharge of oil" means an intentional or
5-20 unintentional act or omission by which harmful quantities of oil
5-21 are spilled, leaked, pumped, poured, emitted, or dumped into or on
5-22 coastal waters or at a place adjacent to coastal waters where,
5-23 unless controlled or removed, an imminent threat of pollution to
5-24 coastal waters exists.
5-25 (9) <(8)> "Discharge cleanup organization" means any
6-1 group or cooperative, incorporated or unincorporated, of owners or
6-2 operators of vessels or terminal facilities and any other persons
6-3 who may elect to join, organized for the purpose of abating,
6-4 containing, removing, or cleaning up pollution from discharges of
6-5 oil or rescuing and rehabilitating wildlife or other natural
6-6 resources through cooperative efforts and shared equipment,
6-7 personnel, or facilities. Any third-party cleanup contractor,
6-8 industry cooperative, volunteer organization, or local government
6-9 shall be recognized as a discharge cleanup organization, provided
6-10 the commissioner or the United States properly certifies or
6-11 classifies 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 operating where a discharge of
9-11 oil from the facility could threaten coastal waters, including but
9-12 not limited to any such facility owned or operated by a public
9-13 utility or a governmental or quasi-governmental body, but does not
9-14 include any temporary storage facilities used only in connection
9-15 with the containment and cleanup of unauthorized discharges of oil.
9-16 (24) <(23)> "Trained personnel" means one or more
9-17 persons who have satisfactorily completed an appropriate course of
9-18 instruction developed under Section 40.302 of this code or <and>
9-19 all other training requirements as determined by the commissioner.
9-20 (25) "Trustee" means a natural resources trustee of
9-21 the state as designated by the governor under federal law.
9-22 (26) <(24)> "Unauthorized discharge of oil" means any
9-23 discharge of oil, or any discharge of oil emanating from a vessel
9-24 into waters adjoining and accessible from coastal waters, that is
9-25 not authorized by a federal or state permit.
10-1 (27) <(25)> "Unauthorized discharge of hazardous
10-2 substances" means a spill or discharge subject to Subchapter G,
10-3 Chapter 26, Water Code.
10-4 (28) <(26)> "Vessel" includes every description of
10-5 watercraft or other contrivance used or capable of being used as a
10-6 means of transportation on water, whether self-propelled or
10-7 otherwise, including barges.
10-8 (29) <(27)> "Texas Water Commission" means the Texas
10-9 Natural Resource Conservation Commission.
10-10 SECTION 3. Subsection (d), Section 40.053, Natural Resources
10-11 Code, is amended to read as follows:
10-12 (d) The commissioner shall establish regional response
10-13 committees or utilize the area committees established by federal
10-14 law to advise and provide input in the development of site-specific
10-15 discharge contingency response plans.
10-16 (1) Membership on these committees shall include
10-17 broad-based representation from local governments, industry,
10-18 resource agencies, and citizens groups and shall include staff from
10-19 the General Land Office.
10-20 (2) The committees shall develop regional response
10-21 recommendations and provide evaluation of response and
10-22 recommendations for improvement to the commissioner following an
10-23 actual or threatened unauthorized discharge.
10-24 SECTION 4. Section 40.102, Natural Resources Code, is
10-25 amended by adding Subsection (d) to read as follows:
11-1 (d) The state or federal on-scene coordinator may authorize
11-2 the decanting of recovered water during containment, cleanup, and
11-3 response activities resulting from an unauthorized discharge of
11-4 oil.
11-5 SECTION 5. Section 40.107, Natural Resources Code, is
11-6 amended to read as follows:
11-7 Sec. 40.107. <PRESUMPTION OF> NATURAL RESOURCES DAMAGES.
11-8 (a)(1) In any action to recover natural resources damages, the
11-9 amount of damages established by the commissioner in conjunction
11-10 with the <state-designated natural resources> trustees, according
11-11 to the procedures and plans contained in the state coastal
11-12 discharge contingency plan, shall create a rebuttable presumption
11-13 of the amount of such damages.
11-14 (2) The commissioner shall represent the consensus
11-15 position of the trustees whenever a collective decision or
11-16 agreement is required by this section.
11-17 (3) Whenever trustees cannot achieve a consensus, the
11-18 commissioner may invoke mediation to settle any disputed matter
11-19 related to this section. The mediation shall be immediately
11-20 commenced and shall be concluded within 10 days of its
11-21 commencement. The trustees shall abide by the consensus achieved
11-22 through mediation.
11-23 (4) The trustees shall enter into a memorandum of
11-24 agreement which describes the mediation process of Subdivision (3)
11-25 of this subsection.
12-1 (b) The commissioner may establish the rebuttable
12-2 presumption by submitting to the court a written report of the
12-3 amounts computed or expended according to the state plan. The
12-4 written report shall be admissible in evidence.
12-5 (c)(1) The commissioner, in conjunction with the trustees,
12-6 shall develop an inventory that identifies and catalogs the
12-7 physical locations, the seasonal variations in location, and the
12-8 current condition of natural resources; provides for data
12-9 collection related to coastal processes; and identifies the
12-10 recreational and commercial use areas that are most likely to
12-11 suffer injury from an unauthorized discharge of oil. The inventory
12-12 shall be completed by September 1, 1995, and shall be incorporated
12-13 into the state coastal discharge contingency plan after public
12-14 review and comment.
12-15 (2) The physical locations surveyed for the inventory
12-16 of natural resources shall include, at a minimum, the following
12-17 priority areas:
12-18 (A) the Galveston Bay system and the Houston
12-19 Ship Channel;
12-20 (B) the Corpus Christi Bay system;
12-21 (C) the lower Laguna Madre;
12-22 (D) Sabine Lake; and
12-23 (E) federal and state wildlife refuge areas.
12-24 (3) The current condition of selected natural
12-25 resources inventoried and cataloged shall be determined by, at a
13-1 minimum, a baseline sampling and analysis of current levels of
13-2 constituent substances selected after considering the types of oil
13-3 most frequently transported through and stored near coastal waters.
13-4 (4) The commissioner shall adopt administrative
13-5 procedures and protocols for the assessment of natural resource
13-6 damages from an unauthorized discharge of oil. As developed
13-7 through negotiated rulemaking with the trustees and other
13-8 interested parties, the procedures and protocols shall require the
13-9 trustees to assess natural resource damages by considering the
13-10 unique characteristics of the spill incident and the location of
13-11 the natural resources affected. These procedures and protocols
13-12 shall be adopted by rule, by the trustee agencies after
13-13 negotiation, notice, and public comment, by June 1, 1994, and
13-14 shall be incorporated into the state coastal discharge contingency
13-15 plan.
13-16 (5) The administrative procedures and protocols shall
13-17 include provisions which address:
13-18 (A) notification by the commissioner to all
13-19 trustees in the event of an unauthorized discharge of oil;
13-20 (B) coordination with and among trustees, spill
13-21 response agencies, potentially responsible parties, experts in
13-22 science and economics, and the public; and
13-23 (C) participation in all stages of the
13-24 assessment process by the potentially responsible party, as
13-25 consistent with trustee responsibilities.
14-1 (6) The administrative procedures and protocols shall
14-2 also require the trustees to:
14-3 (A) assist the on-scene coordinator, during
14-4 spill response activities and prior to the time that the state
14-5 on-scene coordinator determines that the cleanup is complete, in
14-6 predicting the impact of the oil and in devising the most effective
14-7 methods of protection for the natural resources at risk;
14-8 (B) identify appropriate sampling and data
14-9 collection techniques to efficiently determine the impact on
14-10 natural resources of the unauthorized discharge of oil;
14-11 (C) initiate, within 24 hours after approval for
14-12 access to the site by the on-scene coordinator, an actual field
14-13 investigation which may include sampling and data collection; the
14-14 protocols shall require that the responsible party and the trustees
14-15 be given, on request, split samples and copies of each other's
14-16 photographs utilized in assessing the impact of the unauthorized
14-17 discharge of oil; and
14-18 (D) establish plans, including alternatives that
14-19 are cost-effective and efficient, to satisfy the goal of restoring,
14-20 rehabilitating, replacing, and/or acquiring the equivalent of the
14-21 injured natural resources.
14-22 (7)(A) The administrative procedures and protocols
14-23 shall also include the following types of assessment procedures and
14-24 deadlines for their completion:
14-25 (i) an expedited assessment procedure
15-1 which may be used in situations in which the spill has limited
15-2 observable mortality and restoration activities can be speedily
15-3 initiated and/or in which the quantity of oil discharged does not
15-4 exceed 1,000 gallons; the purpose of utilizing the expedited
15-5 assessment procedure is to allow prompt initiation of restoration,
15-6 rehabilitation, replacement, and/or acquisition of an equivalent
15-7 natural resource without lengthy analysis of the impact on affected
15-8 natural resources; this procedure shall, at a minimum, require that
15-9 the trustees consider the following items:
15-10 (aa) the quantity and
15-11 quality of oil discharged;
15-12 (bb) the time period during
15-13 which coastal waters are affected by the oil and the physical
15-14 extent of the impact;
15-15 (cc) the condition of the
15-16 natural resources prior to the unauthorized discharge of oil; and
15-17 (dd) the actual costs of
15-18 restoring, rehabilitating, and/or acquiring the equivalent of the
15-19 injured natural resources;
15-20 (ii) a comprehensive assessment procedure
15-21 for use in situations in which expedited or negotiated assessment
15-22 procedures are not appropriate; and
15-23 (iii) any other assessment method agreed
15-24 upon between the responsible person and the trustees, consistent
15-25 with their public trust duties.
16-1 (B) The trustees shall determine, within 60 days
16-2 of the determination by the on-scene coordinator that the cleanup
16-3 is complete, whether:
16-4 (i) action to restore, rehabilitate, or
16-5 acquire an equivalent natural resource is required;
16-6 (ii) an expedited assessment which may
16-7 include early commencement of restoration, rehabilitation,
16-8 replacement, and/or acquisition activities, may be required; and
16-9 (iii) a comprehensive assessment is
16-10 necessary.
16-11 (C) The trustees may petition the commissioner
16-12 for a longer period of time to make the above determination by
16-13 showing that the full impact of the discharge on the affected
16-14 natural resources cannot be determined in 60 days.
16-15 (D) The trustees shall complete the
16-16 comprehensive assessment procedure within 20 months of the date of
16-17 the determination by the state on-scene coordinator that the
16-18 cleanup is complete. The trustees may petition the commissioner
16-19 for a longer period of time to complete the assessment by showing
16-20 that the full impact of the discharge on the affected natural
16-21 resources cannot be determined in 20 months.
16-22 (E) Any assessment generated by the trustees
16-23 shall be reasonable and have a rational connection to the costs of
16-24 conducting the assessment and of restoring, rehabilitating,
16-25 replacing, and/or acquiring the equivalent of the injured natural
17-1 resources. The trustees shall ensure that the cost of any
17-2 restoration, rehabilitation, replacement, or acquisition project
17-3 shall not be disproportionate to the value of the natural resource
17-4 before the injury. The trustees shall utilize the most
17-5 cost-effective method to achieve restoration, rehabilitation,
17-6 replacement, or acquisition of an equivalent resource.
17-7 Furthermore, the trustees shall take into account the quality of
17-8 the actions undertaken by the responsible party in response to the
17-9 spill incident, including but not limited to containment and
17-10 removal actions and protection and preservation of natural
17-11 resources.
17-12 (F) The potentially responsible party shall make
17-13 full payment within 60 days of the completion of the assessment by
17-14 the trustees or, if mediation pursuant to this paragraph is
17-15 conducted, within 60 days of the conclusion of the mediation. To
17-16 facilitate an expedited recovery of funds for natural resource
17-17 restoration and to assist the trustees and the responsible party in
17-18 the settlement of disputed natural resource damage assessments at
17-19 their discretion and at any time, all disputed natural resource
17-20 damage assessments shall be referred to mediation as a prerequisite
17-21 to the jurisdiction of any court. Results of the mediation and any
17-22 settlement offers tendered during the mediation shall be treated as
17-23 settlement negotiations for the purposes of admissibility in a
17-24 court of law. Either the trustees or the potentially responsible
17-25 person may initiate the mediation process, after an assessment has
18-1 been issued, by giving written notice to the commissioner, who
18-2 shall give written notice to all parties. One mediator shall be
18-3 chosen by the trustees and one mediator shall be chosen by the
18-4 responsible parties. Within 45 days of the receipt of the
18-5 assessment from the trustees, the mediators shall be designated.
18-6 The mediation shall end 135 days after the receipt of the
18-7 assessment from the trustees.
18-8 SECTION 6. Subsection (a), Section 40.114, Natural Resources
18-9 Code, is amended to read as follows:
18-10 (a) Any vessel with a capacity to carry 10,000 gallons or
18-11 more of oil as fuel or cargo that operates in coastal waters or
18-12 waters adjoining and accessible from coastal waters shall maintain
18-13 a written vessel-specific discharge prevention and response plan
18-14 that satisfies the requirements of rules promulgated under this
18-15 chapter. This section shall not apply to any dedicated response
18-16 vessel or to any other vessel for activities within state waters
18-17 related solely to the containment and cleanup of oil, including
18-18 response-related training or drills.
18-19 SECTION 7. Subsection (a), Section 40.152, Natural Resources
18-20 Code, is amended to read as follows:
18-21 (a) Money in the fund may be disbursed for the following
18-22 purposes and no others:
18-23 (1) administrative expenses, personnel and training
18-24 expenses, and equipment maintenance and operating costs related to
18-25 implementation and enforcement of this chapter;
19-1 (2) response costs related to abatement and
19-2 containment of actual or threatened unauthorized discharges of oil
19-3 incidental to unauthorized discharges of hazardous substances;
19-4 (3) response costs and damages related to actual or
19-5 threatened unauthorized discharges of oil;
19-6 (4) assessment, restoration, rehabilitation, or
19-7 replacement of or mitigation of damage to natural resources damaged
19-8 by an unauthorized discharge of oil;
19-9 (5) in an amount not to exceed $50,000 annually, the
19-10 small spill education program;
19-11 (6) in an amount not to exceed $1,250,000 annually,
19-12 interagency contracts under Section 40.302 of this code;
19-13 (7) <(6)> the purchase of response equipment under
19-14 Section 40.105 of this code within two years of the effective date
19-15 of this chapter, in an amount not to exceed $4 million; thereafter,
19-16 for the purchase of equipment to replace equipment that is worn or
19-17 obsolete;
19-18 (8) an inventory under Section 40.107 of this code, to
19-19 be completed by September 1, 1995, in an amount not to exceed $6
19-20 million; and
19-21 (9) <(7)> other costs and damages authorized by this
19-22 chapter.
19-23 SECTION 8. Section 40.201, Natural Resources Code, is
19-24 amended to read as follows:
19-25 Sec. 40.201. FINANCIAL RESPONSIBILITY. (a) Each owner or
20-1 operator of a vessel subject to Section 40.114 of this code and
20-2 operating within coastal waters or waters adjoining and accessible
20-3 from coastal waters or any terminal facility subject to this code
20-4 shall establish and maintain evidence of financial responsibility
20-5 for costs and damages from unauthorized discharges of oil pursuant
20-6 to federal law or in any other manner <a lesser amount as> provided
20-7 in this chapter.
20-8 (b) If a vessel subject to Section 40.114 of this code or a
20-9 terminal facility is not required under federal law to establish
20-10 and maintain evidence of financial responsibility, the owner or
20-11 operator of that vessel or terminal facility shall establish and
20-12 maintain evidence in an amount and <a> form prescribed by rules
20-13 promulgated under this code.
20-14 (c) Any owner or operator of a vessel that is a member of
20-15 any protection and indemnity mutual organization, which is a member
20-16 of the international group, any other owner or operator that is an
20-17 assured of the Water Quality Insurance Syndicate, or an insured of
20-18 any other organization approved by the commissioner, and which is
20-19 covered for oil pollution risks up to the amounts required by
20-20 federal law is in compliance with the financial responsibility
20-21 requirements of this chapter. The commissioner shall specifically
20-22 designate the organizations and the terms under which owners and
20-23 operators of vessels shall demonstrate financial responsibility.
20-24 (d) After an unauthorized discharge of oil, a vessel shall
20-25 remain in the jurisdiction of the commissioner until the owner,
21-1 operator, or person in charge has shown the commissioner evidence
21-2 of financial responsibility. The commissioner may not detain the
21-3 vessel longer than 12 hours after the vessel has proven <proving>
21-4 financial responsibility.
21-5 (e) <(d)> In addition to any other remedy or enforcement
21-6 provision, the commissioner may suspend a registrant's discharge
21-7 prevention and response certificate or may deny a vessel entry into
21-8 any port in coastal waters for failure to comply with this section.
21-9 SECTION 9. Section 40.203, Natural Resources Code, is
21-10 amended to read as follows:
21-11 Sec. 40.203. LIABILITY FOR NATURAL RESOURCES DAMAGES.
21-12 (a) The commissioner, on behalf of the trustees, shall seek
21-13 reimbursement from the federal fund for damages to natural
21-14 resources in excess of the liability limits prescribed in Section
21-15 40.202 of this code. If that request is denied or additional money
21-16 is required following receipt of the federal money, the
21-17 commissioner has the authority to pay the requested reimbursement
21-18 from the fund for a period of two years from the date the federal
21-19 fund grants or denies the request for reimbursement.
21-20 (b) In addition to liability under Section 40.202 of this
21-21 code, persons responsible for actual or threatened unauthorized
21-22 discharges of oil are liable for <all> natural resources damages
21-23 attributable to the discharge.
21-24 (c) The total liability for all natural resource damages of
21-25 any person responsible for an actual or threatened unauthorized
22-1 discharge of oil from a vessel shall not exceed the following:
22-2 (1) for a vessel that carries oil in bulk, as cargo,
22-3 the greater of:
22-4 (A) $1,200 per gross ton; or
22-5 (B)(i) in the case of a vessel greater than
22-6 3,000 gross tons, $10 million; or
22-7 (ii) in the case of a vessel of 3,000
22-8 gross tons or 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.