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.