By Jackson                                            H.B. No. 2296
       74R3756 MI-F
                                 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 361.603.
   1-22              (3)  "Response action" means the cleanup or removal of
   1-23  a hazardous substance or contaminant from the environment.
   1-24              (4)  "Voluntary cleanup" means a response action taken
    2-1  under and in compliance with this subchapter.
    2-2        Sec. 361.602.  ELIGIBILITY FOR VOLUNTARY CLEANUP PROGRAM.
    2-3  (a)  The commission by rule shall adopt site eligibility
    2-4  requirements for participation in the voluntary cleanup program
    2-5  under this subchapter, considering efficiency and long-term
    2-6  effectiveness in cleanups and removals as well as regulatory and
    2-7  state resource considerations.
    2-8        (b)  A portion of a contaminated site that is subject to a
    2-9  commission permit or order is not eligible to be included under the
   2-10  voluntary cleanup program.
   2-11        (c)  A person electing to participate in the voluntary
   2-12  cleanup program must:
   2-13              (1)  enter into a voluntary cleanup agreement as
   2-14  provided by Section 361.605; and
   2-15              (2)  pay all costs of commission oversight of the
   2-16  voluntary cleanup.
   2-17        Sec. 361.603.  APPLICATION TO PARTICIPATE IN VOLUNTARY
   2-18  CLEANUP PROGRAM.  (a)  A person who desires to participate in the
   2-19  voluntary cleanup program under this subchapter must submit to the
   2-20  commission an application and an application fee as prescribed by
   2-21  this section.
   2-22        (b)  An application submitted under this section must:
   2-23              (1)  be on a form provided by the executive director;
   2-24              (2)  contain:
   2-25                    (A)  general information concerning:
   2-26                          (i)  the person and the person's
   2-27  capability, including the person's financial capability, to perform
    3-1  the voluntary cleanup; and
    3-2                          (ii)  the site;
    3-3                    (B)  other background information requested by
    3-4  the executive director; and
    3-5                    (C)  an environmental assessment of the actual or
    3-6  threatened release of the hazardous substance or contaminant at the
    3-7  site;
    3-8              (3)  be accompanied by an application fee of $1,000;
    3-9  and
   3-10              (4)  be submitted according to schedules set by
   3-11  commission rule.
   3-12        (c)  The environmental assessment required by Subsection (b)
   3-13  must include:
   3-14              (1)  a legal description of the site;
   3-15              (2)  a description of the physical characteristics of
   3-16  the site;
   3-17              (3)  the operational history of the site to the extent
   3-18  that history is known by the applicant;
   3-19              (4)  information of which the applicant is aware
   3-20  concerning the nature and extent of any relevant contamination or
   3-21  release at the site and immediately contiguous to the site, or
   3-22  wherever the contamination came to be located; and
   3-23              (5)  relevant information of which the applicant is
   3-24  aware concerning the potential for human exposure to contamination
   3-25  at the site.
   3-26        (d)  An application shall be processed in the order in which
   3-27  it is received.
    4-1        (e)  Fees collected under this section shall be deposited to
    4-2  the credit of the hazardous and solid waste remediation fee fund.
    4-3        Sec. 361.604.  REJECTION OF APPLICATION.  (a)  The executive
    4-4  director may reject an application submitted under Section 361.603
    4-5  if:
    4-6              (1)  an administrative, state, or federal enforcement
    4-7  action is pending that concerns the remediation of the hazardous
    4-8  substance or contaminant described in the application;
    4-9              (2)  a federal grant requires an enforcement action at
   4-10  the site;
   4-11              (3)  the application is not complete or accurate; or
   4-12              (4)  the site is ineligible under Section 361.602 or
   4-13  rules adopted under that section.
   4-14        (b)  If an application is rejected because it is not complete
   4-15  or accurate, the executive director, not later than the 45th day
   4-16  after receipt of the application, shall provide the person with a
   4-17  list of all information needed to make the application complete or
   4-18  accurate.  A person may resubmit an application without submitting
   4-19  an additional application fee.
   4-20        (c)  If the executive director rejects the application, the
   4-21  executive director shall:
   4-22              (1)  notify the person that the application has been
   4-23  rejected;
   4-24              (2)  explain the reasons for rejection of the
   4-25  application; and
   4-26              (3)  inform the person that the commission will refund
   4-27  half the person's application fee unless the person indicates a
    5-1  desire to resubmit an application.
    5-2        Sec. 361.605.  VOLUNTARY CLEANUP AGREEMENT.  (a)  Before the
    5-3  executive director evaluates any plan or report detailing the
    5-4  remediation goals and proposed methods of remediation, the person
    5-5  desiring to participate in the voluntary cleanup program must enter
    5-6  into a voluntary cleanup agreement that sets forth the terms and
    5-7  conditions of the evaluation of the reports and the implementation
    5-8  of work plans.
    5-9        (b)  A voluntary cleanup agreement must provide for:
   5-10              (1)  recovery by the commission of all reasonable
   5-11  costs:
   5-12                    (A)  incurred by the commission in review and
   5-13  oversight of the person's work plan and reports and as a result of
   5-14  the commission's field activities;
   5-15                    (B)  attributable to the voluntary cleanup
   5-16  agreement; and
   5-17                    (C)  in excess of the amount of fees submitted by
   5-18  the applicant under Section 361.603;
   5-19              (2)  a schedule of payments to the commission to be
   5-20  made by the person for recovery of all commission costs fairly
   5-21  attributable to the voluntary cleanup program, including direct and
   5-22  indirect costs of overhead, salaries, equipment, and utilities, and
   5-23  legal, management, and support costs; and
   5-24              (3)  appropriate tasks, deliverables, and schedules.
   5-25        (c)  The voluntary cleanup agreement shall:
   5-26              (1)  identify all statutes and rules that must be
   5-27  complied with;
    6-1              (2)  describe any work plan or report to be submitted
    6-2  for review by the executive director, including a final report that
    6-3  provides all information necessary to verify that all work
    6-4  contemplated by the voluntary cleanup agreement has been completed;
    6-5              (3)  include a schedule for submitting the information
    6-6  required by Subdivision (2); and
    6-7              (4)  state the technical standards to be applied in
    6-8  evaluating the work plans and reports, with reference to the
    6-9  proposed future land use to be achieved.
   6-10        (d)  If an agreement is not reached between a person desiring
   6-11  to participate in the voluntary cleanup program and the executive
   6-12  director on or before the 30th day after good faith negotiations
   6-13  have begun:
   6-14              (1)  the person or the executive director may withdraw
   6-15  from the negotiations; and
   6-16              (2)  the commission retains the person's application
   6-17  fee.
   6-18        Sec. 361.606.  TERMINATION OF AGREEMENT; COST RECOVERY.  (a)
   6-19  The executive director or the person in its sole discretion may
   6-20  terminate the agreement by giving 15 days' advance written notice
   6-21  to the other.  Only those costs incurred or obligated by the
   6-22  executive director before notice of termination of the agreement
   6-23  are recoverable under the agreement if the agreement is terminated.
   6-24        (b)  Termination of the agreement does not affect any right
   6-25  the executive director has under other law to recover costs.
   6-26        (c)  If the person does not pay to the commission the state's
   6-27  costs associated with the voluntary cleanup before the 31st day
    7-1  after the date the person receives notice that the costs are due
    7-2  and owing, the attorney general, at the request of the executive
    7-3  director, shall bring an action in the name of the state in Travis
    7-4  County to recover the amount owed and reasonable legal expenses,
    7-5  including attorney's fees, witness costs, court costs, and
    7-6  deposition costs.
    7-7        Sec. 361.607.  VOLUNTARY CLEANUP WORK PLANS AND REPORTS.  (a)
    7-8  After signing a voluntary cleanup agreement, the person shall
    7-9  prepare and submit the appropriate work plans and reports to the
   7-10  executive director.
   7-11        (b)  The executive director shall review and evaluate the
   7-12  work plans and reports for accuracy, quality, and completeness.
   7-13  The executive director may approve a voluntary cleanup work plan or
   7-14  report or, if a work plan or report is not approved, notify the
   7-15  person concerning additional information or commitments needed to
   7-16  obtain approval.
   7-17        (c)  At any time during the evaluation of a work plan or
   7-18  report, the executive director may request the person to submit
   7-19  additional or corrected information.
   7-20        (d)  The executive director may approve work plans and
   7-21  reports submitted under this section that do not require removal or
   7-22  remedy of all discharges, releases, and threatened releases at a
   7-23  site if the partial response actions for the property:
   7-24              (1)  will be completed in a manner that protects human
   7-25  health and the environment;
   7-26              (2)  will not cause, contribute, or exacerbate
   7-27  discharges, releases, or threatened releases that are not required
    8-1  to be removed or remedied under the work plan; and
    8-2              (3)  will not interfere with or substantially increase
    8-3  the cost of response actions to address the remaining discharges,
    8-4  releases, or threatened releases.
    8-5        Sec. 361.608.  CERTIFICATE OF COMPLETION.  (a)  If the
    8-6  executive director determines that a person has successfully
    8-7  completed a voluntary cleanup approved under this subchapter, the
    8-8  executive director shall certify that the action has been completed
    8-9  by issuing the person a certificate of completion.
   8-10        (b)  The certificate of completion shall acknowledge the
   8-11  protection from liability provided by Section 361.609 and indicate
   8-12  the proposed future land use.
   8-13        (c)  If the executive director determines that the person has
   8-14  not successfully completed a voluntary cleanup approved under this
   8-15  subchapter, the executive director shall notify the person who
   8-16  undertook the voluntary cleanup and the current owner of the site
   8-17  that is the subject of the cleanup of this determination.
   8-18        Sec. 361.609.  PERSONS RELEASED FROM LIABILITY.  (a)  A
   8-19  person who is not a responsible party under Section 361.271 or
   8-20  361.275(g) at the time the person applies to perform a voluntary
   8-21  cleanup is released, on certification under Section 361.608, from
   8-22  all liability to the state for cleanup of areas of the site covered
   8-23  by the certification, except for releases and consequences that the
   8-24  person causes.
   8-25        (b)  The release from liability is not effective if a
   8-26  certificate of completion is acquired by fraud, misrepresentation,
   8-27  or knowing failure to disclose material information.
    9-1        (c)  If a certificate of completion for a site is issued by
    9-2  the commission, an owner who acquires the property on which the
    9-3  site is located or a lender who makes a loan secured by that
    9-4  property after the date of issuance of the certificate is released
    9-5  from all liability for cleanup of contamination released before the
    9-6  date of the certificate for the areas covered by the certificate
    9-7  unless the owner or lender was originally included as a responsible
    9-8  party under Section 361.271 or 361.275(g).  A release of liability
    9-9  does not apply to a person who changes land use from the use
   9-10  specified in the certificate of completion if the new use may
   9-11  result in increased risks to human health or the environment.
   9-12        Sec. 361.610.  PERMIT NOT REQUIRED.  (a)  A state or local
   9-13  permit is not required for removal or remedial action conducted on
   9-14  a site as part of a voluntary cleanup under this subchapter.  A
   9-15  person shall coordinate a voluntary cleanup with ongoing federal
   9-16  and state hazardous waste programs.
   9-17        (b)  The commission by rule shall require that the person
   9-18  conducting the voluntary cleanup comply with any federal or state
   9-19  standard, requirement, criterion, or limitation to which the
   9-20  remedial action would otherwise be subject if a permit were
   9-21  required.
   9-22        Sec. 361.611.  PUBLIC PARTICIPATION.  The commission may
   9-23  adopt rules pertaining to public participation in voluntary cleanup
   9-24  decisions.
   9-25        Sec. 361.612.  COST REPORT; BUDGET ALLOCATION.  (a)  The
   9-26  executive director annually shall calculate the commission's costs
   9-27  to administer the voluntary cleanup program under this subchapter
   10-1  and shall publish in the Texas Register the rates established for
   10-2  the purposes of identifying the costs recoverable by the commission
   10-3  under this subchapter.
   10-4        (b)  Costs recovered under this subchapter and appropriated
   10-5  to the commission shall be budgeted and distributed to each
   10-6  organizational unit of the commission solely on the basis of costs
   10-7  fairly attributable to the voluntary cleanup program.
   10-8        SECTION 2.  Sections 361.133(b) and (c), Health and Safety
   10-9  Code, are amended to read as follows:
  10-10        (b)  The fund consists of money collected by the commission
  10-11  from:
  10-12              (1)  fees imposed on the owner or operator of an
  10-13  industrial solid waste or hazardous waste facility for commercial
  10-14  and noncommercial management or disposal of hazardous waste or
  10-15  commercial disposal of industrial solid waste under Section 361.136
  10-16  and fees imposed under Section 361.138;
  10-17              (2)  interest and penalties imposed under Section
  10-18  361.140 for late payment of a fee or late filing of a report;
  10-19              (3)  money paid by a person liable for facility cleanup
  10-20  and maintenance under Section 361.197;
  10-21              (4)  the interest received from the investment of this
  10-22  fund, in accounts under the charge of the treasurer, to be credited
  10-23  pro rata to the hazardous and solid waste remediation fee fund;
  10-24  <and>
  10-25              (5)  monies transferred from other agencies under
  10-26  provisions of this code or grants or other payments from any person
  10-27  made for the purpose of remediation of facilities under this
   11-1  chapter or the investigation, cleanup, or removal of a spill or
   11-2  release of a hazardous substance;
   11-3              (6)  fees imposed under Section 361.603; and
   11-4              (7)  federal grants received for the implementation or
   11-5  administration of state voluntary cleanup programs.
   11-6        (c)  The commission may use the money collected and deposited
   11-7  to the credit of the fund under this section, including interest
   11-8  credited under Subsection (b)(4), only for:
   11-9              (1)  necessary and appropriate removal and remedial
  11-10  action at sites at which solid waste or hazardous substances have
  11-11  been disposed if funds from a liable person, independent third
  11-12  person, or the federal government are not sufficient for the
  11-13  removal or remedial action;
  11-14              (2)  necessary and appropriate maintenance of removal
  11-15  and remedial actions for the expected life of those actions if:
  11-16                    (A)  funds from a liable person have been
  11-17  collected and deposited to the credit of the fund for that purpose;
  11-18  or
  11-19                    (B)  funds from a liable person, independent
  11-20  third person, or the federal government are not sufficient for the
  11-21  maintenance;
  11-22              (3)  expenses concerning compliance with:
  11-23                    (A)  the Comprehensive Environmental Response,
  11-24  Compensation and Liability Act of 1980 (42 U.S.C. Section 9601 et
  11-25  seq.) as amended;
  11-26                    (B)  the federal Superfund Amendments and
  11-27  Reauthorization Act of 1986 (10 U.S.C. Section 2701 et seq.); and
   12-1                    (C)  Subchapters F and I;
   12-2              (4)  expenses concerning the regulation and management
   12-3  of household hazardous substances and the prevention of pollution
   12-4  of the water resources of the state from the uncontrolled release
   12-5  of hazardous substances; <and>
   12-6              (5)  expenses concerning the cleanup or removal of a
   12-7  spill, release, or potential threat of release of a hazardous
   12-8  substance where immediate action is appropriate to protect human
   12-9  health and the environment; and
  12-10              (6)  expenses concerning implementation of the
  12-11  voluntary cleanup program under Subchapter S.
  12-12        SECTION 3.  This Act takes effect September 1, 1995.
  12-13        SECTION 4.  The importance of this legislation and the
  12-14  crowded condition of the calendars in both houses create an
  12-15  emergency and an imperative public necessity that the
  12-16  constitutional rule requiring bills to be read on three several
  12-17  days in each house be suspended, and this rule is hereby suspended.