By Alexander H.B. No. 3032
74R6301 MI-F
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the regulation of petroleum storage tanks.
1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-4 SECTION 1. Section 26.341(b), Water Code, is amended to read
1-5 as follows:
1-6 (b) The legislature declares that it is the policy of this
1-7 state and the purpose of this subchapter to:
1-8 (1) maintain and protect the quality of groundwater
1-9 and surface water resources in the state from certain substances in
1-10 underground and aboveground storage tanks that may pollute
1-11 groundwater and surface water resources; and
1-12 (2) require the use of all reasonable methods,
1-13 including risk-based corrective action, to implement this policy.
1-14 SECTION 2. Section 26.342, Water Code, is amended by adding
1-15 a new Subdivision (13) and renumbering subsequent subdivisions to
1-16 read as follows:
1-17 (13) "Risk-based corrective action" means site
1-18 assessment or site remediation, the timing, type, and degree of
1-19 which is determined according to case-by-case consideration of
1-20 actual or potential risk to public health from environmental
1-21 exposure to a regulated substance released from a leaking petroleum
1-22 storage tank.
1-23 (14) "Spent oil" means a regulated substance that is a
1-24 lubricating oil or similar petroleum substance which has been
2-1 refined from crude oil, used for its designed or intended purposes,
2-2 and contaminated as a result of that use by physical or chemical
2-3 impurities, including spent motor vehicle lubricating oils,
2-4 transmission fluid, or brake fluid.
2-5 (15) <(14)> "Underground storage tank" means any one
2-6 or combination of underground tanks and any connecting underground
2-7 pipes used to contain an accumulation of regulated substances, the
2-8 volume of which, including the volume of the connecting underground
2-9 pipes, is 10 percent or more beneath the surface of the ground.
2-10 (16) <(15)> "Vehicle service and fueling facility"
2-11 means a facility where motor vehicles are serviced or repaired and
2-12 where petroleum products are stored and dispensed from fixed
2-13 equipment into the fuel tanks of motor vehicles.
2-14 SECTION 3. Subchapter I, Chapter 26, Water Code, is amended
2-15 by adding Section 26.3475 to read as follows:
2-16 Sec. 26.3475. RELEASE DETECTION REQUIREMENTS; SPILL AND
2-17 OVERFILL PREVENTION; CATHODIC PROTECTION; NOTICE OF VIOLATION;
2-18 SHUTDOWN. (a) All piping in an underground storage tank system
2-19 that routinely conveys regulated substances under pressure must
2-20 comply with commission requirements for installing pressurized
2-21 piping release detection equipment.
2-22 (b) All piping in an underground storage tank system that
2-23 routinely conveys regulated substances either by gravity flow or
2-24 under suction must comply with commission requirements for
2-25 installing suction and gravity-flow piping release detection
2-26 equipment.
2-27 (c) A tank in an underground storage tank system must comply
3-1 with commission requirements for installing:
3-2 (1) tank release detection equipment; and
3-3 (2) spill and overfill equipment.
3-4 (d) An underground storage tank system must comply with
3-5 commission requirements for applicable tank integrity assessment
3-6 and cathodic protection not later than December 22, 1998.
3-7 (e) The commission may issue a notice of violation to the
3-8 owner or operator of an underground storage tank system that does
3-9 not comply with this section, informing the owner or operator of
3-10 the nature of the violation and that the commission may order the
3-11 noncomplying equipment placed out of service if the owner or
3-12 operator does not correct the violation within 30 days after the
3-13 date the notice is received. If the owner or operator does not
3-14 correct the violation within the prescribed time, the commission
3-15 may order the noncomplying equipment out of service.
3-16 SECTION 4. Section 26.3514, Water Code, is amended by adding
3-17 Subsections (f), (g), (h), and (i) to read as follows:
3-18 (f) A lender described by Subsection (a) is not liable as an
3-19 owner or operator under this subchapter because the lender sells,
3-20 re-leases, liquidates, or winds up operations and takes measures to
3-21 preserve, protect, or prepare the secured aboveground or
3-22 underground storage tank before sale or other disposition of the
3-23 storage tank or the property if the lender:
3-24 (1) did not participate in the management of an
3-25 aboveground or underground storage tank or real or personal
3-26 property described by Subsection (a) before foreclosure or its
3-27 equivalent on the storage tank or the property; and
4-1 (2) establishes, as provided by Subsection (g), that
4-2 the ownership indicia maintained after foreclosure continue to be
4-3 held primarily to protect a security interest.
4-4 (g) A lender may establish that the ownership indicia
4-5 maintained after foreclosure continue to be held primarily to
4-6 protect a security interest if, within 12 months after foreclosure,
4-7 the lender:
4-8 (1) lists the aboveground or underground storage tank,
4-9 or the facility or property on which the tank is located, with a
4-10 broker, dealer, or agent who deals in that type of property; or
4-11 (2) advertises the aboveground or underground storage
4-12 tank for sale or other disposition, at least monthly, in:
4-13 (A) a real estate publication;
4-14 (B) a trade or other publication appropriate for
4-15 the aboveground or underground storage tank being advertised; or
4-16 (C) a newspaper of general circulation in the
4-17 area in which the aboveground or underground storage tank is
4-18 located.
4-19 (h) For purposes of Subsection (g), the 12-month period
4-20 begins:
4-21 (1) when the lender acquires marketable title, if the
4-22 lender, after the expiration of any redemption period or other
4-23 waiting period required by law, was acting diligently to acquire
4-24 marketable title; or
4-25 (2) on the date of foreclosure or its equivalent, if
4-26 the lender does not act diligently to acquire marketable title.
4-27 (i) If a lender outbids, rejects, or does not act on an
5-1 offer of fair consideration for the aboveground or underground
5-2 storage tank or the facility or property on which the storage tank
5-3 is located, it is presumed that the lender is not holding the
5-4 ownership indicia primarily to protect the security interest unless
5-5 the lender is required, in order to avoid liability under federal
5-6 or state law, to make the higher bid, obtain the higher offer, or
5-7 seek or obtain an offer in a different manner.
5-8 SECTION 5. Section 26.3572(b), Water Code, is amended to
5-9 read as follows:
5-10 (b) In administering the program, the commission shall:
5-11 (1) negotiate with or direct responsible parties in
5-12 site assessment and remediation matters using risk-based corrective
5-13 action;
5-14 (2) approve site-specific corrective action plans for
5-15 each site as necessary, using risk-based corrective action;
5-16 (3) review and inspect site assessment and remedial
5-17 activities and reports; <and>
5-18 (4) use risk-based corrective action procedures as
5-19 determined by commission rule to establish cleanup levels;
5-20 (5) adopt by rule criteria for assigning a priority to
5-21 each site and assign a priority to each site according to those
5-22 criteria;
5-23 (6) adopt by rule criteria for:
5-24 (A) risk-based corrective action site closures;
5-25 and
5-26 (B) the issuance of a closure letter to the
5-27 owner or operator of a tank site on completion of the commission's
6-1 requirements for remediation; and
6-2 (7) process claims for petroleum storage tank
6-3 remediation fund disbursement.
6-4 SECTION 6. Section 26.35735, Water Code, is amended by
6-5 adding Subsections (e) and (f) to read as follows:
6-6 (e) The commission may audit a claim for payment as required
6-7 by this section only:
6-8 (1) under guidelines adopted by commission rule that
6-9 relate to conducting an audit under this section and denying a
6-10 claim as a result of that audit and that are in effect when the
6-11 audit is conducted; or
6-12 (2) in a case of suspected fraud.
6-13 (f) Not later than the 90th day after an audit under this
6-14 section has been completed, the commission shall send a copy of the
6-15 audit to the person whose claim for payment is the subject of the
6-16 audit.
6-17 SECTION 7. This Act takes effect September 1, 1995.
6-18 SECTION 8. The importance of this legislation and the
6-19 crowded condition of the calendars in both houses create an
6-20 emergency and an imperative public necessity that the
6-21 constitutional rule requiring bills to be read on three several
6-22 days in each house be suspended, and this rule is hereby suspended.