BILL ANALYSIS



C.S.H.B. 1405
By: HOLZHEAUSER
02-26-95
Committee Report (Substituted)


BACKGROUND


The Railroad Commission currently performs all hazardous liquid
pipeline safety inspections and administers the pipeline safety
program for the U.S. Department of Transportation (DOT) in Texas.

A facility response plan is required to include plans for
responding to a discharge of hazardous liquids that could
reasonably be expected to cause substantial harm to the environment
by discharging into navigable waters.  Facilities that are required
to prepare a discharge prevention and response plan under the state
Oil Spill Prevention and Response Act (OSPRA) are exempt from rules
adopted by the Commission under this bill.  Facility response plan
rules would have to be consistent with facility response plan
requirements adopted by the federal Department of Transportation
(DOT) under the federal Oil Pollution Act of 1990 (OPA '90).  


PURPOSE

It is expected that DOT will seek to delegate its facility response
planning responsibilities under OPA '90 to states.  Facility
response planning authority of state agencies in Texas does not
cover all on-shore hazardous liquids pipelines in Texas.  This
legislation will fill gaps in state authority to require facility
response plans for certain on-shore pipeline facilities handling
petroleum products as well as on-shore pipelines handling anhydrous
ammonia by adding this authority to the Railroad Commission 
current jurisdiction over such facilities.  

This legislation amends Natural Resources Code, Chapter 117, to
authorize the Railroad Commission to require certain on-shore
hazardous liquid pipeline facilities to prepare facility response
plans and submit the plans to the Commission for approval.


RULEMAKING AUTHORITY

This bill grants rulemaking authority to the Railroad Commission of
Texas in SECTION 1 of the bill.


SECTION BY SECTION ANALYSIS

SECTION 1. Amends Section 117.012 of the Natural Resources Code by
           adding Subsections (d)-(f) as follows:

               Subsection (d) authorizes the Railroad Commission
               to adopt rules that require a hazardous liquid
               pipeline facility to prepare and submit for
               Commission approval a facility response plan for
               all or any part of a hazardous liquid pipeline
               facility located landward of the coast.  Such plans
               must provide for responding to a worst case
               discharge of hazardous liquids that could
               reasonably be expected to cause substantial harm to
               navigable waters.  


               Subsection (e) provides that rules relating to
               facility response plans shall be consistent with
               rules adopted under OPA '90.

               Subsection (f) exempts from rules relating to
               facility response plans facilities already
               regulated by OSPRA.  


SECTION [3].   Emergency Clause.


COMPARISON OF ORIGINAL TO SUBSTITUTE

The original bill included a Subsection (g) which provided that
monies in the oilfield cleanup fund could be used to administer
this section. Subsection (g) was deleted in the substitute.

SUMMARY OF COMMITTEE ACTION

H.B. 1405 was considered by the Energy Resources Committee in a
public hearing on March 13, 1995. The committee considered a
complete substitute to the bill. The substitute was adopted without
objection. Mike Hachtman of the Railroad Commission of Texas
testified neutrally on the bill. No one testified for or against
the bill. The bill was reported favorably, as substituted, with the
recommendation that it do pass and be printed and be sent to the
Committee on Local and Consent Calendars, by a record vote of 7
ayes, 0 nays, 0 PNV, and 2 absent.