By Jackson                                            H.B. No. 2296
                                 A BILL TO BE ENTITLED
    1-1                                AN ACT
    1-2  relating to the creation of a voluntary cleanup program for solid
    1-3  and hazardous wastes.
    1-4        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-5        SECTION 1.  Chapter 361, Health and Safety Code, is amended
    1-6  by adding Subchapter S to read as follows:
    1-7               SUBCHAPTER S.  VOLUNTARY CLEANUP PROGRAM
    1-8        Sec. 361.601.  DEFINITIONS.  In this subchapter:
    1-9              (1)  "Contaminant" includes:
   1-10                    (A)  solid waste;
   1-11                    (B)  hazardous waste;
   1-12                    (C)  a hazardous waste constituent listed in 40
   1-13  C.F.R. Part 261, Subpart D, or Table 1, 40 C.F.R. Section 261.24;
   1-14                    (D)  a pollutant as defined in Section 26.001,
   1-15  Water Code; and
   1-16                    (E)  a hazardous substance:
   1-17                          (i)  as defined in Section 361.003; or
   1-18                          (ii)  subject to Sections 26.261-26.268,
   1-19  Water Code.
   1-20              (2)  "Environmental assessment" means the assessment
   1-21  described by Section 361.604.
   1-22              (3)  "Response action" means the cleanup or removal of
   1-23  a hazardous substance or contaminant from the environment,
   1-24  excluding a waste, pollutant, or substance regulated by or that
    2-1  results from an activity under the jurisdiction of the Railroad
    2-2  Commission of Texas under Chapter 91 or 141, Natural Resources
    2-3  Code, or Chapter 27, Water Code.
    2-4              (4)  "Voluntary cleanup" means a response action taken
    2-5  under and in compliance with this subchapter.
    2-6        Sec. 361.602.  PURPOSE.  The purpose of the voluntary cleanup
    2-7  program is to provide incentive to remediate property by removing
    2-8  liability of lenders and future landowners.  The program does not
    2-9  replace other voluntary actions and is restricted to voluntary
   2-10  actions.
   2-11        Sec. 361.603.  ELIGIBILITY FOR VOLUNTARY CLEANUP PROGRAM.
   2-12  (a)  Any site is eligible for participation in the voluntary
   2-13  cleanup program except the portion of a site that is subject to a
   2-14  commission permit or order.
   2-15        (b)  A person electing to participate in the voluntary
   2-16  cleanup program must:
   2-17              (1)  enter into a voluntary cleanup agreement as
   2-18  provided by Section 361.606; and
   2-19              (2)  pay all costs of commission oversight of the
   2-20  voluntary cleanup.
   2-21        Sec. 361.604.  APPLICATION TO PARTICIPATE IN VOLUNTARY
   2-22  CLEANUP PROGRAM.  (a)  A person who desires to participate in the
   2-23  voluntary cleanup program under this subchapter must submit to the
   2-24  commission an application and an application fee as prescribed by
   2-25  this section.
   2-26        (b)  An application submitted under this section must:
   2-27              (1)  be on a form provided by the executive director;
    3-1              (2)  contain:
    3-2                    (A)  general information concerning:
    3-3                          (i)  the person and the person's
    3-4  capability, including the person's financial capability, to perform
    3-5  the voluntary cleanup; and
    3-6                          (ii)  the site;
    3-7                    (B)  other background information requested by
    3-8  the executive director; and
    3-9                    (C)  an environmental assessment of the actual or
   3-10  threatened release of the hazardous substance or contaminant at the
   3-11  site;
   3-12              (3)  be accompanied by an application fee of $1,000;
   3-13  and
   3-14              (4)  be submitted according to schedules set by
   3-15  commission rule.
   3-16        (c)  The environmental assessment required by Subsection (b)
   3-17  must include:
   3-18              (1)  a legal description of the site;
   3-19              (2)  a description of the physical characteristics of
   3-20  the site;
   3-21              (3)  the operational history of the site to the extent
   3-22  that history is known by the applicant;
   3-23              (4)  information of which the applicant is aware
   3-24  concerning the nature and extent of any relevant contamination or
   3-25  release at the site and immediately contiguous to the site, or
   3-26  wherever the contamination came to be located; and
   3-27              (5)  relevant information of which the applicant is
    4-1  aware concerning the potential for human exposure to contamination
    4-2  at the site.
    4-3        (d)  An application shall be processed in the order in which
    4-4  it is received.
    4-5        (e)  Fees collected under this section shall be deposited to
    4-6  the credit of the hazardous and solid waste remediation fee fund.
    4-7        Sec. 361.605.  REJECTION OF APPLICATION.  (a)  The executive
    4-8  director may reject an application submitted under Section 361.604
    4-9  if:
   4-10              (1)  an administrative, state, or federal enforcement
   4-11  action is pending that concerns the remediation of the hazardous
   4-12  substance or contaminant described in the application;
   4-13              (2)  a federal grant requires an enforcement action at
   4-14  the site;
   4-15              (3)  the application is not complete or accurate; or
   4-16              (4)  the site is ineligible under Section 361.603.
   4-17        (b)  If an application is rejected because it is not complete
   4-18  or accurate, the executive director, not later than the 45th day
   4-19  after receipt of the application, shall provide the person with a
   4-20  list of all information needed to make the application complete or
   4-21  accurate.  A person may resubmit an application without submitting
   4-22  an additional application fee.
   4-23        (c)  If the executive director rejects the application, the
   4-24  executive director shall:
   4-25              (1)  notify the person that the application has been
   4-26  rejected;
   4-27              (2)  explain the reasons for rejection of the
    5-1  application; and
    5-2              (3)  inform the person that the commission will refund
    5-3  half the person's application fee unless the person indicates a
    5-4  desire to resubmit an application.
    5-5        Sec. 361.606.  VOLUNTARY CLEANUP AGREEMENT.  (a)  Before the
    5-6  executive director evaluates any plan or report detailing the
    5-7  remediation goals and proposed methods of remediation, the person
    5-8  desiring to participate in the voluntary cleanup program must enter
    5-9  into a voluntary cleanup agreement that sets forth the terms and
   5-10  conditions of the evaluation of the reports and the implementation
   5-11  of work plans.
   5-12        (b)  A voluntary cleanup agreement must provide for:
   5-13              (1)  recovery by the commission of all reasonable
   5-14  costs:
   5-15                    (A)  incurred by the commission in review and
   5-16  oversight of the person's work plan and reports and as a result of
   5-17  the commission's field activities;
   5-18                    (B)  attributable to the voluntary cleanup
   5-19  agreement; and
   5-20                    (C)  in excess of the amount of fees submitted by
   5-21  the applicant under Section 361.604;
   5-22              (2)  a schedule of payments to the commission to be
   5-23  made by the person for recovery of all commission costs fairly
   5-24  attributable to the voluntary cleanup program, including direct and
   5-25  indirect costs of overhead, salaries, equipment, and utilities, and
   5-26  legal, management, and support costs; and
   5-27              (3)  appropriate tasks, deliverables, and schedules.
    6-1        (c)  The voluntary cleanup agreement shall:
    6-2              (1)  identify all statutes and rules that must be
    6-3  complied with;
    6-4              (2)  describe any work plan or report to be submitted
    6-5  for review by the executive director, including a final report that
    6-6  provides all information necessary to verify that all work
    6-7  contemplated by the voluntary cleanup agreement has been completed;
    6-8              (3)  include a schedule for submitting the information
    6-9  required by Subdivision (2); and
   6-10              (4)  state the technical standards to be applied in
   6-11  evaluating the work plans and reports, with reference to the
   6-12  proposed future land use to be achieved.
   6-13        (d)  If an agreement is not reached between a person desiring
   6-14  to participate in the voluntary cleanup program and the executive
   6-15  director on or before the 30th day after good faith negotiations
   6-16  have begun:
   6-17              (1)  the person or the executive director may withdraw
   6-18  from the negotiations; and
   6-19              (2)  the commission retains the person's application
   6-20  fee.
   6-21        (e)  The commission may not initiate an enforcement action
   6-22  against a person who is in compliance with this section for the
   6-23  contamination or release that is the subject of the voluntary
   6-24  cleanup agreement or for the activity that resulted in the
   6-25  contamination or release.
   6-26        Sec. 361.607.  TERMINATION OF AGREEMENT; COST RECOVERY.  (a)
   6-27  The executive director or the person in its sole discretion may
    7-1  terminate the agreement by giving 15 days' advance written notice
    7-2  to the other.  Only those costs incurred or obligated by the
    7-3  executive director before notice of termination of the agreement
    7-4  are recoverable under the agreement if the agreement is terminated.
    7-5        (b)  Termination of the agreement does not affect any right
    7-6  the executive director has under other law to recover costs.
    7-7        (c)  If the person does not pay to the commission the state's
    7-8  costs associated with the voluntary cleanup before the 31st day
    7-9  after the date the person receives notice that the costs are due
   7-10  and owing, the attorney general, at the request of the executive
   7-11  director, shall bring an action in the name of the state in Travis
   7-12  County to recover the amount owed and reasonable legal expenses,
   7-13  including attorney's fees, witness costs, court costs, and
   7-14  deposition costs.
   7-15        Sec. 361.608.  VOLUNTARY CLEANUP WORK PLANS AND REPORTS.  (a)
   7-16  After signing a voluntary cleanup agreement, the person shall
   7-17  prepare and submit the appropriate work plans and reports to the
   7-18  executive director.
   7-19        (b)  The executive director shall review and evaluate the
   7-20  work plans and reports for accuracy, quality, and completeness.
   7-21  The executive director may approve a voluntary cleanup work plan or
   7-22  report or, if a work plan or report is not approved, notify the
   7-23  person concerning additional information or commitments needed to
   7-24  obtain approval.
   7-25        (c)  At any time during the evaluation of a work plan or
   7-26  report, the executive director may request the person to submit
   7-27  additional or corrected information.
    8-1        (d)  After considering future land use, the executive
    8-2  director may approve work plans and reports submitted under this
    8-3  section that do not require removal or remedy of all discharges,
    8-4  releases, and threatened releases at a site if the partial response
    8-5  actions for the property:
    8-6              (1)  will be completed in a manner that protects human
    8-7  health and the environment;
    8-8              (2)  will not cause, contribute, or exacerbate
    8-9  discharges, releases, or threatened releases that are not required
   8-10  to be removed or remedied under the work plan; and
   8-11              (3)  will not interfere with or substantially increase
   8-12  the cost of response actions to address the remaining discharges,
   8-13  releases, or threatened releases.
   8-14        Sec. 361.609.  CERTIFICATE OF COMPLETION.  (a)  If the
   8-15  executive director determines that a person has successfully
   8-16  completed a voluntary cleanup approved under this subchapter, the
   8-17  executive director shall certify that the action has been completed
   8-18  by issuing the person a certificate of completion.
   8-19        (b)  The certificate of completion shall:
   8-20              (1)  acknowledge the protection from liability provided
   8-21  by Section 361.610;
   8-22              (2)  indicate the proposed future land use; and
   8-23              (3)  include a legal description of the site and the
   8-24  name of the site's owner.
   8-25        (c)  The executive director shall file a copy of the
   8-26  certificate of completion in the real property records of the
   8-27  county in which the site is located.
    9-1        (d)  If the executive director determines that the person has
    9-2  not successfully completed a voluntary cleanup approved under this
    9-3  subchapter, the executive director shall notify the person who
    9-4  undertook the voluntary cleanup and the current owner of the site
    9-5  that is the subject of the cleanup of this determination.
    9-6        Sec. 361.610.  PERSONS RELEASED FROM LIABILITY.  (a)  A
    9-7  person who is not a responsible party under Section 361.271 or
    9-8  361.275(g) at the time the person applies to perform a voluntary
    9-9  cleanup is released, on certification under Section 361.609, from
   9-10  all liability to the state for cleanup of areas of the site covered
   9-11  by the certification, except for releases and consequences that the
   9-12  person causes.
   9-13        (b)  The release from liability is not effective if a
   9-14  certificate of completion is acquired by fraud, misrepresentation,
   9-15  or knowing failure to disclose material information.
   9-16        (c)  If a certificate of completion for a site is issued by
   9-17  the commission, an owner who acquires the property on which the
   9-18  site is located or a lender who makes a loan secured by that
   9-19  property after the date of issuance of the certificate is released
   9-20  from all liability for cleanup of contamination released before the
   9-21  date of the certificate for the areas covered by the certificate
   9-22  unless the owner or lender was originally included as a responsible
   9-23  party under Section 361.271 or 361.275(g).  A release of liability
   9-24  does not apply to a person who changes land use from the use
   9-25  specified in the certificate of completion if the new use may
   9-26  result in increased risks to human health or the environment.
   9-27        Sec. 361.611.  PERMIT NOT REQUIRED.  (a)  A state or local
   10-1  permit is not required for removal or remedial action conducted on
   10-2  a site as part of a voluntary cleanup under this subchapter.  A
   10-3  person shall coordinate a voluntary cleanup with ongoing federal
   10-4  and state hazardous waste programs.
   10-5        (b)  The commission by rule shall require that the person
   10-6  conducting the voluntary cleanup comply with any federal or state
   10-7  standard, requirement, criterion, or limitation to which the
   10-8  remedial action would otherwise be subject if a permit were
   10-9  required.
  10-10        Sec. 361.612.  PUBLIC PARTICIPATION.  The commission may
  10-11  adopt rules pertaining to public participation in voluntary cleanup
  10-12  decisions.
  10-13        Sec. 361.613.  COST REPORT; BUDGET ALLOCATION.  (a)  The
  10-14  executive director annually shall calculate the commission's costs
  10-15  to administer the voluntary cleanup program under this subchapter
  10-16  and shall publish in the Texas Register the rates established for
  10-17  the purposes of identifying the costs recoverable by the commission
  10-18  under this subchapter.
  10-19        (b)  Costs recovered under this subchapter and appropriated
  10-20  to the commission shall be budgeted and distributed to each
  10-21  organizational unit of the commission solely on the basis of costs
  10-22  fairly attributable to the voluntary cleanup program.
  10-23        SECTION 2.  Sections 361.133(b) and (c), Health and Safety
  10-24  Code, are amended to read as follows:
  10-25        (b)  The fund consists of money collected by the commission
  10-26  from:
  10-27              (1)  fees imposed on the owner or operator of an
   11-1  industrial solid waste or hazardous waste facility for commercial
   11-2  and noncommercial management or disposal of hazardous waste or
   11-3  commercial disposal of industrial solid waste under Section 361.136
   11-4  and fees imposed under Section 361.138;
   11-5              (2)  interest and penalties imposed under Section
   11-6  361.140 for late payment of a fee or late filing of a report;
   11-7              (3)  money paid by a person liable for facility cleanup
   11-8  and maintenance under Section 361.197;
   11-9              (4)  the interest received from the investment of this
  11-10  fund, in accounts under the charge of the treasurer, to be credited
  11-11  pro rata to the hazardous and solid waste remediation fee fund;
  11-12  <and>
  11-13              (5)  monies transferred from other agencies under
  11-14  provisions of this code or grants or other payments from any person
  11-15  made for the purpose of remediation of facilities under this
  11-16  chapter or the investigation, cleanup, or removal of a spill or
  11-17  release of a hazardous substance;
  11-18              (6)  fees imposed under Section 361.604; and
  11-19              (7)  federal grants received for the implementation or
  11-20  administration of state voluntary cleanup programs.
  11-21        (c)  The commission may use the money collected and deposited
  11-22  to the credit of the fund under this section, including interest
  11-23  credited under Subsection (b)(4), only for:
  11-24              (1)  necessary and appropriate removal and remedial
  11-25  action at sites at which solid waste or hazardous substances have
  11-26  been disposed if funds from a liable person, independent third
  11-27  person, or the federal government are not sufficient for the
   12-1  removal or remedial action;
   12-2              (2)  necessary and appropriate maintenance of removal
   12-3  and remedial actions for the expected life of those actions if:
   12-4                    (A)  funds from a liable person have been
   12-5  collected and deposited to the credit of the fund for that purpose;
   12-6  or
   12-7                    (B)  funds from a liable person, independent
   12-8  third person, or the federal government are not sufficient for the
   12-9  maintenance;
  12-10              (3)  expenses concerning compliance with:
  12-11                    (A)  the Comprehensive Environmental Response,
  12-12  Compensation and Liability Act of 1980 (42 U.S.C. Section 9601 et
  12-13  seq.) as amended;
  12-14                    (B)  the federal Superfund Amendments and
  12-15  Reauthorization Act of 1986 (10 U.S.C. Section 2701 et seq.); and
  12-16                    (C)  Subchapters F and I;
  12-17              (4)  expenses concerning the regulation and management
  12-18  of household hazardous substances and the prevention of pollution
  12-19  of the water resources of the state from the uncontrolled release
  12-20  of hazardous substances; <and>
  12-21              (5)  expenses concerning the cleanup or removal of a
  12-22  spill, release, or potential threat of release of a hazardous
  12-23  substance where immediate action is appropriate to protect human
  12-24  health and the environment; and
  12-25              (6)  expenses concerning implementation of the
  12-26  voluntary cleanup program under Subchapter S.
  12-27        SECTION 3.  This Act takes effect September 1, 1995.
   13-1        SECTION 4.  The importance of this legislation and the
   13-2  crowded condition of the calendars in both houses create an
   13-3  emergency and an imperative public necessity that the
   13-4  constitutional rule requiring bills to be read on three several
   13-5  days in each house be suspended, and this rule is hereby suspended.