74(R) SB 1683 Senate Committee Report

BILL ANALYSIS

C.S.S.B. 1683
By: Nixon
Natural Resources
05-08-95
Committee Report (Substituted)
BACKGROUND

The 72nd Legislature passed a comprehensive program regulating used
oil, including used automotive oil. The legislation required used
oil to be recycled or properly disposed. The Texas Water
Commission, and later the Texas Natural Resource Conservation
Commission, was given authority to establish standards for the
management of used oil. In addition, the legislature imposed a fee
of two cents per quart on sales of oil at the wholesale level. A
grant program was created to encourage the proper management of
used oil. The legislation included language regulating used oil
collection centers and their liability, and it provided
reimbursement for their costs of collecting hazardous used oil.

PURPOSE

As proposed, C.S.S.B. 1683 clarifies the Texas Natural Resource
Conservation Commission's authority over programs and funds
coordinating the use, collection, and recycling of used oil and
used oil filters; provides penalties for violations of these
programs.

RULEMAKING AUTHORITY

It is the committee's opinion that rulemaking authority is granted
to the Texas Natural Resource Conservation Commission under SECTION
5 (Sections 371.028(a) and (b), Health and Safety Code) of this
bill.

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Section 371.001, Health and Safety Code, as
follows:

Sec. 371.001. SHORT TITLE: Texas Used Oil Collection,
Management, and Recycling Act.

SECTION 2. Amends Section 371.002, Health and Safety Code, to set
forth findings of the legislature regarding the uses, recycling,
collection, and programs of used oil. Deletes references to
recycling used oil to produce fuel.

SECTION 3. Amends Chapter 371A, Health and Safety Code, by adding
Section 371.0025, as follows:

Sec. 371.0025. PURPOSE AND SCOPE. (a) Sets forth the
purpose and scope of this chapter regarding used oil programs.

(b) Provides that this chapter does not apply to certain
types of used oil.

(c) Provides that this chapter does not apply to certain
used oil filters.
SECTION 4. Amends Section 371.003, Health and Safety Code, to
redefine "commission," "reclaiming," "recycling," "rerefining," and
"used oil." Defines "aboveground tank," "container," "do-it-yourselfer used oil collection center," "existing tank," "household
do-it-yourselfer (DIY) used oil," "household do-it-yourselfer used
oil generator," "new tank," "petroleum refining facility,"
"processing," "rerefining distillation bottoms," "tank," "used oil
aggregation point," "used oil burner," "used oil collection
center," "used oil filter," "used oil fuel marketer," "used oil
generator," "used oil processor or rerefiner," "used oil transfer
facility," and "used oil transporter." Deletes definitions of
"board," "department," "do-it-yourself (DIY) used oil,"
"generator," and "public used oil collection center."

SECTION 5. Amends Chapter 371B, Health and Safety Code, as follows:

SUBCHAPTER B. USED OIL RECYCLING PROGRAM

Sec. 371.021. PUBLIC EDUCATION. Requires the Texas Natural
Resource Conservation Commission (commission) to conduct an
education program to inform the public of the need for and
benefits of the collection and recycling of used oil and used
oil filters. Sets forth requirements of the program. Makes
a nonsubstantive change.

Sec. 371.022. NOTICE BY RETAIL DEALER. Requires certain
retailers to post in a prominent place a sign containing
instructions for disposal of used oil filters, among other
criteria. Makes nonsubstantive changes.

Sec. 371.023. New heading: GRANTS TO LOCAL GOVERNMENTS AND
PRIVATE ENTITIES. (a) Requires the commission to develop a
grant program for local governments and private entities that
encourages the collection, reuse, and recycling of household
do-it-yourselfer (DIY) use oil.

(b) Authorizes the commission to approve a grant for any
project that uses certain programs and any other activity
that the advisory committee (committee) determines will
encourage the proper recycling of household-do-it-yourselfer
(DIY) used oil. Deletes reference to grant assistance.
Makes conforming changes.

(c) Requires the commission to appoint an advisory committee
(committee) for the used oil grant program. Provides that
the nine-member committee serves at the pleasure of the
commission and represents oil manufacturers, used oil
collection centers, and local governments. Requires the
committee to recommend criteria for grants and recommend
grant recipients to the commission based on the used
collection needs of this state. Provides that the committee
members serve without compensation and are not entitled to
reimbursement for expenses incurred in the performance of
the duties.

(d) Makes a nonsubstantive change.

Sec. 371.024. COLLECTION FACILITIES. (a) Provides that all
appropriate businesses, instead of businesses that change
motor oil for the public, and government agencies are
encouraged to serve as do-it-yourselfer, rather than public,
used oil collection centers and used oil collection centers.
Makes a nonsubstantive change.

(b) Requires a do-it-yourselfer used oil collection center
and used oil collection center to register biannually with
the commission, and to report annually to the commission the
amounts of used oil collected by the center from the public.
Makes conforming and nonsubstantive changes.

(e) Authorizes the commission to impose a registration fee
in an amount sufficient to cover the actual cost of
registering do-it-yourselfer used oil collection centers and
used oil collection centers. Exempts a private entity that
serves voluntarily as a do-it-yourselfer used oil collection
center from the registration fee. Makes conforming changes

Sec. 371.0245. New heading: REIMBURSEMENT OF USED OIL
COLLECTION CENTER'S HAZARDOUS WASTE EXPENSE. (a) Requires the
commission to reimburse the owner or operator of a do-it-yourselfer used oil collection center or a used oil collection
center for costs associated with the collection center's
disposal of used oil including household do-it-yourselfer,
rather than do-it-yourself, used oil that contains or has been
commingled with wastes unfit for recycling. Makes a conforming
change.

(b) Provides that a registered do-it-yourselfer used oil
collection center is eligible for reimbursement if it
satisfactorily demonstrates to the commission that the
center has established procedures to minimize the risk that
the center will mix the used oil it generates or collects
from the public with hazardous wastes, rather than to
minimize the risk that the used oil generated or collected
from the public will not be mixed with hazardous wastes; and
that the center can document the volume of used oil
collected during any period under review, among other
provisions. Deletes language regarding the containment of
collected do-it-yourself used oil. Makes conforming and
nonsubstantive changes.

(d) Prohibits a registered do-it-yourselfer used oil
collection center from being reimbursed for more than
$7,500, rather than $5,000, in total eligible disposal costs
in any state fiscal year. Makes a conforming change.

(e) Requires, rather than authorizes, reimbursements to be
paid out of the oil recycling fund. Makes nonsubstantive
changes.

Sec. 371.0246. PROCEDURES FOR REIMBURSEMENT. (a) Makes a
conforming change.

(b) Requires an application for reimbursement to be
submitted, rather than filed, on a form approved or provided
by the commission.

(c) Sets forth requirements of the application including
requiring a copy of any manifest or shipping documents that
accompanied the transportation of the shipment of used oil,
rather than only a copy of the signed uniform hazardous
waste manifest; a copy of each invoice for which
reimbursement is requested and evidence that the amount
shown on the invoice has been paid in full in a certain
form; and a waste characterization or similar documentation
before acceptance of a hazardous waste by the disposal
facility that accepted the contaminated used oil for
treatment or disposal. Makes a conforming change.

(d) Makes a nonsubstantive change.

Sec. 371.025. LIMITATION OF LIABILITY. Makes no change.

Sec. 371.026. New heading: REGISTRATION OF USED OIL HANDLERS
OTHER THAN GENERATORS. Deletes existing Section 371.025
relating to limitation of liability. Redesignates existing
Section 371.026. (a) Requires the commission to adopt rules
governing registration and reporting of used oil handlers
other than generators, rather than transporters, marketers,
and recyclers. Requires the rules to require that a used oil
handler other than a generator to register biannually, rather
than annually, with the commission, and to report annually the
sources of used oil handled during the preceding year. Makes
conforming and nonsubstantive changes. Deletes existing
Subsections (a) and (b) regarding registration of persons
transporting, marketing, or recycling used oil. Redesignates
existing Subsection (c).

(b) and (c) Make conforming and nonsubstantive changes.
Redesignate existing Subsections (d) and (e).

(d) Authorizes a used oil transporter to consolidate or
aggregate loads of used oil for transportation. Prohibits
a used oil transporter to process used oil. Authorizes a
used oil transporter to conduct incidental processing
operations, including settling and water separation, that
occur in the normal course of the transportation of used oil
but that are not designed to produce, or make more amenable
for the production of, used oil delivered products or used
oil fuel. Deletes existing Subsection (f) regarding the
registration of a utility or industrial generator of used
oil.

Sec. 371.027. GIFTS AND GRANTS. Makes a conforming change.
Redesignates existing Section 371.027.

Sec. 371.028. RULES. Redesignates existing Section 371.028.
Requires the commission to adopt rules, standards, and
procedures to implement the used oil program by January 1,
1996. Requires the rules, standards, and procedures to be
consistent with the used oil management standards under 40 CFR
Part 279.

SECTION 6. Amends Section 371.041(b)-(d), Health and Safety Code,
as follows:

(b) Provides that a person commits an offense if the person
performs certain acts including knowingly mixing or
commingling used oil with waste, instead of solid waste, that
is to be disposed of in landfills or directly disposes of used
oil on land, rather than on land or in landfills; knowingly
transports, treats, stores, disposes, recycles, causes to be
transported, or otherwise handles any used oil within the
state without complying with registration requirements;
intentionally applying used oil for certain uses; or makes any
false statement or representation in any application, label,
manifest, record, report, permit, or other document filed,
maintained, or used for purposes of program compliance. Makes
a conforming and nonsubstantive change. Redesignates existing
Subdivisions (5) and (6) as Subdivisions (4) and (5).

(c) Provides that it is an exception to the application of
Subsection (b) if a person knowingly disposes into the
environment, rather than a landfill, any used oil that has not
been properly segregated or separated by the generator from
other solid wastes.

(d) Provides that it is an exception to the application of
Subsection (b)(2) if the mixing or commingling of used oil
with waste, rather than solid waste, that is to be disposed of
in landfills is incident to and the unavoidable result of
certain acts.

SECTION 7. Amends Section 371.042, Health and Safety Code, as
follows:

Sec. 371.042. CRIMINAL PENALTIES (a) Provides that except as
provided by Subsection (b), an offense under Section 371.041
is punishable by a fine between $100 and $10,000 for each
violation or for each day of violation, imprisonment of no
more than five years, or both, rather than a Class C
misdemeanor.

(b) Provides that if it is shown that the defendant has
previously been convicted of an offense under Section
371.041, the offense is punishable by a fine between $200
and $20,000 for each violation or each day of violation,
imprisonment of no more than 10 years, or both, rather than
a Class A misdemeanor.

SECTION 8. Amends Sections 371.043(c) and (d), Health and Safety
Code, as follows:

(c) Provides that the penalty imposed by this section does not
apply to failure to file a report under Section 371.024,
rather than 371.026.

(d) Makes a nonsubstantive change.

SECTION 9. Amends Sections 371.061(b)-(d), Health and Safety Code,
as follows:

(b) Makes a nonsubstantive change.

(c) Authorizes the commission to use money in the used oil
recycling fund (fund) only for purposes authorized by this
chapter, including public education; grants to public and
private do-it-yourselfer used oil collection centers; and
registration of do-it-yourselfer used oil collection centers
and used oil handlers other than generators. Makes a
nonsubstantive change.

(d) Requires the commission to set aside 25 percent of the
fees collected under Section 371.062, rather than transfer
these fees to the Texas Water Commission, to restore the
environmental quality of sites in the state the commission
identifies as being contaminated through improper used oil
management. Provides that this subsection expires January 1,
1998, rather than January 1, 1997.

SECTION 10. Amends Section 371.062, Health and Safety Code, by
amending Subsections (a), (b), (f), and (j) and adding Subsections
(m)-(o), as follows:

(a) Defines "distributor" and redefines "first sale."
Redesignates existing Subdivisions (1)-(3) as Subdivisions
(2)-(4).

(b) Provides that an oil manufacturer or distributor who makes
a first sale of automotive oil is liable for a fee.

(f) Makes a conforming change.

(j) Provides that the fee imposed under this section is one
cent, rather than two cents, per quart or four cents, rather
than eight cents, per gallon of automotive oil. Deletes
language requiring the department to monitor the unobligated
balance of the fund.

(m) Requires a distributor to obtain a permit from the
comptroller. Requires the comptroller to adopt an application
form for the permit, which must include certain information.

(n) Authorizes the comptroller to deny or revoke a permit if
false information is submitted on the application or on a
required fuels tax support or supplement.

(o) Prohibits a permit under Subsection (m) from being
assigned.

SECTION 11. Makes application of Section 371.042, Health and
Safety Code, prospective.

SECTION 12. Effective date: September 1, 1995, except as
provided by Subsection (b).

(b) Effective date: January 1, 1996, for Section 371.062(j),
Health and Safety Code.

SECTION 13. Emergency clause.