BILL ANALYSIS



H.B. 3032
By: Alexander
4-18-95
Committee Report (Unamended)


BACKGROUND
The Environmental Protection Agency (EPA) has encouraged the use of
risk-based decision making as a integral part of the corrective
action process at leaking underground storage tank (UST) sites
where tanks have been leaking and thus created risks to human
health and the environment.  The Texas Natural Resource
Conservation Commission (TNRCC) has developed a standard for risk-based decision making with concern to UST corrective action that is
consistent with Federal law and EPA regulations.  This standard,
"Risk-Based Corrective Action" (RBCA), provides a detailed and
technical framework that establishes goals for cleanup of UST
releases based on consideration of site specific factors that could
lead to human and environmental exposure to contamination.  Using
RBCA, UST releases would be a higher priority for cleanup if it
impacts ground water being used as public or private drinking water
sources (as opposed to a release that does not impact any water
source and is in a soil substance that is not likely to migrate and
create a human health hazard or environmental risk).

PURPOSE
To require the TNRCC to use "Risk Based Corrective Action" as the
method for determining the type and amount of remediation that must
be conducted by a tank owner at a specific tank site based on
actual and potential health and environmental risk for that
specific site.  This method will save the state Petroleum Storage
Tank Remediation Fund an estimated $300 million for sites already
reported as contaminated.

This bill gives authority to the TNRCC to require tank owners who
have not complied with state and federal tank upgrade requirements
to place the non-complying facility "out of service" if compliance
is not achieved within thirty days after notification of the
violation is made by the Commission.  This restriction is necessary
to preserve fair competition in the marketplace so as to prevent a
tank owner that has not complied with state and federal tank
upgrade requirements from having an unfair competitive advantage
over a tank owner that has expended capital to comply.

Finally, this bill cleans up the limits of liability of lenders in
order to encourage lending of capital to small businesses that must
upgrade and remediate tank facilities.  The bill also requires the
commission to adopt rules for the issuance of a closure letter to
the owner or operator of a tank site that has met the commission's
requirements on remediation.  These rules are intended to satisfy
lenders who are reluctant to lend capital to tank owners for a
facility that may have had a substantial liability before the
cleanup is completed.

RULEMAKING AUTHORITY
It is the committee's opinion that this bill expressly grants
additional rulemaking authority to the Texas Natural Resource
Conservation Commission at both (1) Section 5 of the bill (in
amended Section 26.3572(b), Water Code) and (2) Section 6 of the
bill (in amended Section 26.35735(e), Water Code).

SECTION BY SECTION ANALYSIS
SECTION 1: Amends Section 26.341(b), Water Code to include the use
of risk-based corrective actions as a required method for the
implementation of the policy to protect the quality of groundwater
and surface water resources.

SECTION 2: Amends Section 26.342, Water Code, by adding a new
subdivision (13) which defines "risk-based corrective action," and
renumbers subsequent subdivisions.

SECTION 3: Amends Subchapter I, Chapter 26, Water Code by adding
Section 26.3475, requiring compliance for tank upgrades including
Release Detection and Spill and Overfill Prevention which are
already required under Federal law. Corrosion protection will be
required by December 22, 1998. This section gives the Commission
authority to shut down any tank facility that has not complied with
these upgrade requirements within 30 days of receiving a notice of
violation from the Commission.

SECTION 4: Amends Section 26.3514, Water Code, by adding
Subsections (f), (g), (h), and (i) as follows:
(f)identifies that a lender is not liable as an owner or operator
for foreclosed property containing petroleum storage tanks unless
the lender was involved in the management of the property before
the foreclosure.
(g)identifies that a lender may keep a foreclosed property intact
to protect a security interest if within 12 months of the
foreclosure the lender lists the property with a broker or
advertises the property monthly.
(h)defines the 12 month period described in Subsection (g) when the
lender acquires title.
(i)provides for the conditions where a lender may reject an offer
for purpose of a foreclosed property containing petroleum storage
tanks.

SECTION 5: Amends Section 26.3572(b), Water Code to require the
Commission to use risk-based corrective action in negotiations with
responsible parties about site assessment and remediation matters. 
The commission shall establish rules for determining cleanup levels
using risk-based corrective action.  The commission shall adopt by
rule risk-based site closures and develop a closure letter to the
owner or operator of a tank site on completion of the commission's
requirement for remediation.

SECTION 6: Amends Section 26.35735, Water Code by adding new
Subsections (e) and (f) as follows:
(e)allows the commission to audit claims under guidelines
established by commission rules and deny claims as a result of that
audit using only rules in effect when the audit was conducted. 
This subsection also allows the commission to audit claims
suspected of fraud.
(f)requires the commission to notify the person whose claim for
payment is the subject of the audit no later than 90- days after
the audit is conducted.

SECTION 7: Effective Date.

SECTION 8: Emergency Clause.


SUMMARY OF COMMITTEE ACTION
H.B.3032 was considered by the committee in a public hearing on
April 18, 1995.
No testimony was received.
The bill was reported favorably without amendment, with the
recommendation that it do pass and be printed, by a record vote of
6 ayes, 0 nays, 0 pnv, 3 absent.