By: Parker S.B. No. 1049
A BILL TO BE ENTITLED
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 natural resource response to the discharge of
1-4 oil and other pollutants in the coastal waters of the state;
1-5 authorizing an appropriation 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 damage 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 damaged 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 damage 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 damaged by an
4-25 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 damage to the natural resources from
5-13 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 damaged natural resources, or to mitigate further damage, and their
5-17 diminution in value after such restoration, rehabilitation,
5-18 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 properly certifies the organization.
6-11 (10) <(9)> "Federal fund" means the federal Oil Spill
6-12 Liability Trust Fund.
6-13 (11) <(10)> "Fund" means the coastal protection fund.
6-14 (12) <(11)> "Harmful quantity" means that quantity of
6-15 oil the discharge of which is determined by the commissioner to be
6-16 harmful to the environment or public health or welfare or may
6-17 reasonably be anticipated to present an imminent and substantial
6-18 danger to the public health or welfare.
6-19 (13) <(12)> "Hazardous substance" means any substance,
6-20 except oil, designated as hazardous by the Environmental Protection
6-21 Agency pursuant to the Comprehensive Environmental Response,
6-22 Compensation, and Liability Act of 1980 (42 U.S.C. Sec. 9601 et
6-23 seq.) and designated by the Texas Water Commission.
6-24 (14) <(13)> "Marine terminal" means any terminal
6-25 facility used for transferring crude oil to or from vessels.
7-1 (15) <(14)> "National contingency plan" means the plan
7-2 prepared and published, as revised from time to time, under the
7-3 Federal Water Pollution Control Act (33 U.S.C. Sec. 1321 et seq.)
7-4 and the Comprehensive Environmental Response, Compensation, and
7-5 Liability Act of 1980 (42 U.S.C. Sec. 9601 et seq.).
7-6 (16) <(15)> "Natural resources" means all land, fish,
7-7 shellfish, fowl, wildlife, biota, vegetation, air, water, and other
7-8 similar resources owned, managed, held in trust, regulated, or
7-9 otherwise controlled by the state.
7-10 (17) <(16)> "Oil" means oil of any kind or in any
7-11 form, including but not limited to crude oil, petroleum, fuel oil,
7-12 sludge, oil refuse, and oil mixed with wastes other than dredged
7-13 spoil, but does not include petroleum, including crude oil or any
7-14 fraction thereof, which is specifically listed or designated as a
7-15 hazardous substance under Subparagraphs (A) through (F) of Section
7-16 101(14) of the Comprehensive Environmental Response, Compensation,
7-17 and Liability Act of 1980 (42 U.S.C. Sec. 9601 et seq.) and which
7-18 is subject to the provisions of that Act, and which is so
7-19 designated by the Texas Water Commission.
7-20 (18) <(17)> "Owner" or "operator" means:
7-21 (A) any person owning, operating, or chartering
7-22 by demise a vessel; or
7-23 (B) any person owning a terminal facility or a
7-24 person operating a terminal facility by lease, contract, or other
7-25 form of agreement.
8-1 (19) <(18)> "Person in charge" means the person on the
8-2 scene who is directly responsible for a terminal facility or vessel
8-3 when a discharge of oil occurs or a particular duty arises under
8-4 this chapter.
8-5 (20) <(19)> "Person responsible" or "responsible
8-6 person" means:
8-7 (A) the owner or operator of a vessel or
8-8 terminal facility from which an unauthorized discharge of oil
8-9 emanates or threatens to emanate;
8-10 (B) in the case of an abandoned vessel or
8-11 terminal facility, the person who would have been the responsible
8-12 person immediately prior to the abandonment; and
8-13 (C) any other person who causes, allows, or
8-14 permits an unauthorized discharge of oil or threatened unauthorized
8-15 discharge of oil.
8-16 (21) <(20)> "Pollution" means the presence of harmful
8-17 quantities of oil from an unauthorized discharge in coastal waters
8-18 or in or on adjacent waters, shorelines, estuaries, tidal flats,
8-19 beaches, or marshes.
8-20 (22) <(21)> "Response costs" means:
8-21 (A) with respect to an actual or threatened
8-22 discharge of oil, all costs incurred in an attempt to prevent,
8-23 abate, contain, and remove pollution from the discharge, including
8-24 costs of removing vessels or structures under this chapter, and
8-25 costs of any reasonable measures to prevent or limit damage to the
9-1 public health, safety, or welfare, public or private property, or
9-2 natural resources; or
9-3 (B) with respect to an actual or threatened
9-4 discharge of a hazardous substance, only costs incurred to
9-5 supplement the response operations of the Texas Water Commission.
9-6 (23) <(22)> "Terminal facility" or "facility" means
9-7 any waterfront or offshore pipeline, structure, equipment, or
9-8 device used for the purposes of drilling for, pumping, storing,
9-9 handling, or transferring oil and any pipeline, structure,
9-10 equipment, or device used for the purposes of drilling for,
9-11 pumping, storing, handling, or transferring oil which is operating
9-12 where a discharge of oil from the facility could threaten coastal
9-13 waters, including but not limited to any such facility owned or
9-14 operated by a public utility or a governmental or
9-15 quasi-governmental body.
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 40.107, Natural Resources Code, is
10-25 amended to read as follows:
11-1 Sec. 40.107. <PRESUMPTION OF> NATURAL RESOURCES DAMAGES.
11-2 (a) In any action to recover natural resources damages, the amount
11-3 of damages established by the commissioner in conjunction with the
11-4 <state-designated natural resources> trustees, according to the
11-5 procedures and plans contained in the state coastal discharge
11-6 contingency plan, shall create a rebuttable presumption of the
11-7 amount of such damages.
11-8 (b) The commissioner may establish the rebuttable
11-9 presumption by submitting to the court a written report of the
11-10 amounts computed or expended according to the state plan. The
11-11 written report shall be admissible in evidence.
11-12 (c)(1) The commissioner shall develop an inventory that
11-13 identifies and catalogs the physical locations, the seasonal
11-14 variations in location, and the current condition of natural
11-15 resources, including the recreational and commercial use areas that
11-16 are most likely to suffer damage from an unauthorized discharge of
11-17 oil. The inventory shall be completed by December 1, 1994, and
11-18 shall be incorporated into the state coastal discharge contingency
11-19 plan after public review and comment.
11-20 (2) The physical locations surveyed for the inventory
11-21 of natural resources shall include, at a minimum, the following
11-22 priority areas:
11-23 (A) the Galveston Bay system and the Houston
11-24 Ship Channel;
11-25 (B) the Corpus Christi Bay system;
12-1 (C) Sabine Lake; and
12-2 (D) federal and state wildlife refuge areas.
12-3 (3) The current condition of selected natural
12-4 resources inventoried and cataloged shall be determined by, at a
12-5 minimum, a baseline sampling and analysis of current levels of
12-6 constituent substances selected after considering the types of oil
12-7 most frequently transported through and stored near coastal waters.
12-8 (4) The commissioner shall develop administrative
12-9 procedures and protocols for the assessment of natural resource
12-10 damages from an unauthorized discharge of oil. The procedures and
12-11 protocols shall require the trustees to assess natural resource
12-12 damages by considering the unique characteristics of the spill
12-13 incident and the location of the natural resources affected. These
12-14 procedures and protocols shall be adopted by rule, after notice and
12-15 public comment, by March 1, 1994, and shall be incorporated into
12-16 the state coastal discharge contingency plan.
12-17 (5) The administrative procedures and protocols shall
12-18 include provisions which address:
12-19 (A) notification by the commissioner to all
12-20 trustees in the event of an unauthorized discharge of oil;
12-21 (B) coordination with and among trustees, spill
12-22 response agencies, potentially responsible parties, experts in
12-23 science and economics, and the public; and
12-24 (C) participation in all stages of the
12-25 assessment process by the potentially responsible party.
13-1 (6) The administrative procedures and protocols shall
13-2 also require the trustees to:
13-3 (A) assist the on-scene coordinator and the
13-4 potentially responsible party, during spill response activities and
13-5 prior to the time that the cleanup is deemed complete, in
13-6 predicting the impact of the oil and in devising the most effective
13-7 methods of protection for the natural resources at risk;
13-8 (B) identify appropriate sampling and data
13-9 collection techniques to efficiently determine the impact on
13-10 natural resources of the unauthorized discharge of oil;
13-11 (C) initiate, within 12 to 18 hours after
13-12 approval for access to the site by the on-scene coordinator, an
13-13 actual field investigation which includes sampling and data
13-14 collection; the protocols shall require that the responsible party
13-15 and the trustees be given, on request, split samples and copies of
13-16 each other's photographs and expert reports utilized in assessing
13-17 the impact of the unauthorized discharge of oil; and
13-18 (D) establish restoration plans, including
13-19 restoration alternatives that are cost-effective and efficient, to
13-20 satisfy the goal of restoring, rehabilitating, replacing, and/or
13-21 acquiring the equivalent of the damaged natural resources.
13-22 (7)(A) The administrative procedures and protocols
13-23 shall also include the following types of assessment procedures and
13-24 deadlines for their completion:
13-25 (i) an expedited assessment procedure for
14-1 use in situations in which the spill has limited observable
14-2 mortality and restoration activities can be speedily initiated
14-3 and/or in which the quantity of oil discharged does not exceed
14-4 1,000 gallons; the purpose of utilizing the expedited assessment
14-5 procedure is to allow prompt initiation of restoration,
14-6 rehabilitation, replacement, and/or acquisition of an equivalent
14-7 natural resource without lengthy analysis of the impact on affected
14-8 natural resources; this procedure shall, at a minimum, require that
14-9 the trustees consider the following items:
14-10 (aa) the quantity and
14-11 quality of oil discharged;
14-12 (bb) the time period during
14-13 which coastal waters are affected by the oil and the physical
14-14 extent of the impact;
14-15 (cc) the condition of the
14-16 natural resources prior to the unauthorized discharge of oil; and
14-17 (dd) the actual costs of
14-18 restoring, rehabilitating, and/or acquiring the equivalent of the
14-19 damaged natural resources;
14-20 (ii) a comprehensive assessment procedure
14-21 for use in situations in which expedited or negotiated assessment
14-22 procedures are not appropriate; and
14-23 (iii) any other assessment method agreed
14-24 upon between the responsible person and the trustees, consistent
14-25 with their public trust duties.
15-1 (B) The trustees shall determine, within 60 days
15-2 of the completion of cleanup response actions, whether:
15-3 (i) action to restore, rehabilitate, or
15-4 acquire an equivalent natural resource is required;
15-5 (ii) restoration, including natural
15-6 recovery, rehabilitation, replacement, and/or acquisition
15-7 activities may be commenced; or
15-8 (iii) a comprehensive assessment is
15-9 necessary.
15-10 (C) The trustees may petition the commissioner
15-11 for a longer period of time to make the above determination by
15-12 showing that the full impact of the discharge on the affected
15-13 natural resources cannot be determined in 60 days. The potentially
15-14 responsible party shall make full payment within 60 days of notice
15-15 of the assessment by the trustees or, if arbitration pursuant to
15-16 Paragraph (F) of this subdivision is conducted, within 60 days of
15-17 the final ruling of the arbitration panel.
15-18 (D) The trustees shall complete the
15-19 comprehensive assessment procedure within one year of the date the
15-20 cleanup is deemed complete. The trustees may petition the
15-21 commissioner for a longer period of time to complete the assessment
15-22 by showing that the full impact of the discharge on the affected
15-23 natural resources cannot be determined in one year.
15-24 (E) Any assessment generated by the trustees
15-25 shall be reasonable and have a rational connection to the actual
16-1 and direct costs of conducting the assessment and of restoring,
16-2 rehabilitating, replacing, and/or acquiring the equivalent of the
16-3 damaged natural resources. The trustees shall ensure that the cost
16-4 of any restoration, rehabilitation, replacement, or acquisition
16-5 project shall not be disproportionate to the value of the public
16-6 resource before the injury. The trustees shall utilize the most
16-7 cost-effective method to achieve restoration, rehabilitation,
16-8 replacement, or acquisition of an equivalent resource. Further,
16-9 the trustees shall take into account the quality of the actions
16-10 undertaken by the responsible party in response to the spill
16-11 incident, including but not limited to containment and removal
16-12 actions and protection and preservation of natural resources.
16-13 (F) To facilitate an expedited recovery of funds
16-14 for natural resource restoration and to assist the trustees and the
16-15 responsible party in the settlement of disputed natural resource
16-16 damage assessments at their discretion and at any time, all
16-17 disputed natural resource damage assessments shall be referred to
16-18 nonbinding arbitration as a prerequisite to the jurisdiction of any
16-19 court. Results of the arbitration shall be treated as settlement
16-20 negotiations for the purpose of admissibility in a court of law.
16-21 Either the trustees or the potentially responsible person may
16-22 initiate the arbitration process, after an assessment has been
16-23 issued, by giving written notice to the commissioner, who shall
16-24 give written notice to all parties. The three arbitrators for
16-25 these disputes shall be a representative of the commissioner, a
17-1 representative of the responsible person, and a third arbitrator
17-2 selected by the two. In the event the two arbitrators are unable
17-3 to agree on a third arbitrator within five days, either party may
17-4 request the American Arbitration Association to submit a list of
17-5 five names from which the parties shall alternately strike one name
17-6 until only one name remains, and the person remaining shall then
17-7 serve as the third arbitrator. The commissioner and the
17-8 responsible party shall share equally in the cost of the third
17-9 arbitrator and shall bear their own costs for all other matters
17-10 associated with the arbitration. Within 45 days from the receipt
17-11 of the notice of assessment from the commissioner, the arbitrators
17-12 shall be designated and within 120 days from the receipt of the
17-13 notice of assessment from the commissioner, the arbitrators shall
17-14 issue their nonbinding decision.
17-15 SECTION 5. Subsection (a), Section 40.152, Natural Resources
17-16 Code, is amended to read as follows:
17-17 (a) Money in the fund may be disbursed for the following
17-18 purposes and no others:
17-19 (1) administrative expenses, personnel and training
17-20 expenses, and equipment maintenance and operating costs related to
17-21 implementation and enforcement of this chapter;
17-22 (2) response costs related to abatement and
17-23 containment of actual or threatened unauthorized discharges of oil
17-24 incidental to unauthorized discharges of hazardous substances;
17-25 (3) response costs and damages related to actual or
18-1 threatened unauthorized discharges of oil;
18-2 (4) assessment, restoration, rehabilitation, or
18-3 replacement of or mitigation of damage to natural resources damaged
18-4 by an unauthorized discharge of oil;
18-5 (5) in an amount not to exceed $50,000 annually, the
18-6 small spill education program;
18-7 (6) in an amount not to exceed $1,250,000 annually,
18-8 interagency contracts under Section 40.302 of this code;
18-9 (7) <(6)> the purchase of response equipment under
18-10 Section 40.105 of this code within two years of the effective date
18-11 of this chapter, in an amount not to exceed $4 million; thereafter,
18-12 for the purchase of equipment to replace equipment that is worn or
18-13 obsolete; <and>
18-14 (8) an inventory under Section 40.107 of this code, to
18-15 be completed by December 1, 1994, in an amount not to exceed $5
18-16 million; and
18-17 (9) <(7)> other costs and damages authorized by this
18-18 chapter.
18-19 SECTION 6. Section 40.201, Natural Resources Code, is
18-20 amended to read as follows:
18-21 Sec. 40.201. FINANCIAL RESPONSIBILITY. (a) Each owner or
18-22 operator of a vessel subject to Section 40.114 of this code and
18-23 operating within coastal waters or waters adjoining and accessible
18-24 from coastal waters or any terminal facility subject to this code
18-25 shall establish and maintain evidence of financial responsibility
19-1 for costs and damages from unauthorized discharges of oil pursuant
19-2 to federal law or in any other manner <a lesser amount as> provided
19-3 in this chapter.
19-4 (b) If a vessel subject to Section 40.114 of this code or a
19-5 terminal facility is not required under federal law to establish
19-6 and maintain evidence of financial responsibility, the owner or
19-7 operator of that vessel or terminal facility shall establish and
19-8 maintain evidence in an amount and <a> form prescribed by rules
19-9 promulgated under this code.
19-10 (c) Any owner or operator of a vessel that is a member of
19-11 any protection and indemnity mutual organization, which is a member
19-12 of the international group or insured by the Water Quality
19-13 Insurance Syndicate or any other organization approved by the
19-14 commissioner, and which is covered for oil pollution risks up to
19-15 the amounts required by federal law is in compliance with the
19-16 financial responsibility requirements of this chapter. The
19-17 commissioner shall specifically designate the organizations and the
19-18 terms under which owners and operators of vessels shall demonstrate
19-19 financial responsibility.
19-20 (d) After an unauthorized discharge of oil, a vessel shall
19-21 remain in the jurisdiction of the commissioner until the owner,
19-22 operator, or person in charge has shown the commissioner evidence
19-23 of financial responsibility. The commissioner may not detain the
19-24 vessel longer than 12 hours after proving financial responsibility.
19-25 (e) <(d)> In addition to any other remedy or enforcement
20-1 provision, the commissioner may suspend a registrant's discharge
20-2 prevention and response certificate or may deny a vessel entry into
20-3 any port in coastal waters for failure to comply with this section.
20-4 SECTION 7. Section 40.203, Natural Resources Code, is
20-5 amended to read as follows:
20-6 Sec. 40.203. LIABILITY FOR NATURAL RESOURCES DAMAGES.
20-7 (a) The commissioner, on behalf of the trustees, shall seek
20-8 reimbursement from the federal fund for damages to natural
20-9 resources in excess of the liability limits prescribed in Section
20-10 40.202 of this code. If that request is denied or additional money
20-11 is required following receipt of the federal money, the
20-12 commissioner has the authority to pay the requested reimbursement
20-13 from the fund for a period of two years from the date the federal
20-14 fund grants or denies the request for reimbursement.
20-15 (b) In addition to liability under Section 40.202 of this
20-16 code, persons responsible for actual or threatened unauthorized
20-17 discharges of oil are liable for <all> natural resources damages
20-18 attributable to the discharge.
20-19 (c) The total liability for all natural resource damages of
20-20 any person responsible for an actual or threatened unauthorized
20-21 discharge of oil from a vessel shall not exceed the following:
20-22 (1) for a tank vessel, the greater of:
20-23 (A) $1,200 per gross ton; or
20-24 (B)(i) for a vessel greater than 3,000 gross
20-25 tons, $10 million; or
21-1 (ii) for a vessel of 3,000 gross tons or
21-2 less, $2 million; or
21-3 (2) for any other vessel, $600 per gross ton or
21-4 $500,000, whichever is greater.
21-5 (d) There may be no double recovery of damages or response
21-6 costs.
21-7 SECTION 8. Subsection (c), Section 40.255, Natural Resources
21-8 Code, is repealed.
21-9 SECTION 9. Subchapter G, Chapter 40, Natural Resources Code,
21-10 is amended by adding Section 40.304 to read as follows:
21-11 Sec. 40.304. SMALL SPILL EDUCATION PROGRAM. The
21-12 commissioner shall develop and conduct a voluntary spill prevention
21-13 education program that targets small spills from commercial fishing
21-14 vessels, offshore support vessels, ferries, cruise ships, ports,
21-15 marinas, and recreational boats. The small spill education program
21-16 shall illustrate ways to reduce oil contamination of bilge water,
21-17 accidental spills of motor oil and hydraulic fluid during routine
21-18 maintenance, and spills during refueling. The program shall
21-19 illustrate proper disposal of oil and promote strategies to meet
21-20 shoreside oil handling and disposal needs of targeted groups. The
21-21 program shall include a series of training materials and workshops
21-22 and the development of educational materials.
21-23 SECTION 10. This Act takes effect September 1, 1993.
21-24 SECTION 11. The importance of this legislation and the
21-25 crowded condition of the calendars in both houses create an
22-1 emergency and an imperative public necessity that the
22-2 constitutional rule requiring bills to be read on three several
22-3 days in each house be suspended, and this rule is hereby suspended.