74R11681 E
          By Howard, Saunders                                   H.B. No. 3220
          Substitute the following for H.B. No. 3220:
          By Kuempel                                        C.S.H.B. No. 3220
                                 A BILL TO BE ENTITLED
    1-1                                AN ACT
    1-2  relating to the collection, management, and recycling of used oil
    1-3  and used oil filters.
    1-4        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-5        SECTION 1.  Section 371.001, Health and Safety Code, is
    1-6  amended to read as follows:
    1-7        Sec. 371.001.  Short Title.  This chapter may be cited as the
    1-8  Texas Used Oil Collection, Management, and Recycling Act.
    1-9        SECTION 2.  Section 371.002, Health and Safety Code, is
   1-10  amended to read as follows:
   1-11        Sec. 371.002.  Findings.  The legislature finds that:
   1-12              (1)  when properly managed and recycled, used oil is a
   1-13  valuable energy resource<, the reuse of which may make a
   1-14  significant contribution toward energy efficiency and
   1-15  conservation>;
   1-16              (2)  used oil can be recycled into a number of
   1-17  different products;
   1-18              (3)  improper disposal of used oil is a significant
   1-19  environmental problem and a waste of a potentially valuable energy
   1-20  resource;
   1-21              (4)  there is a need for an expanded statewide network
   1-22  of used oil collection sites for private citizens who change their
   1-23  own motor oil;
   1-24              (5)  the private sector, with incentives, is best
    2-1  equipped to establish and operate used oil collection centers that
    2-2  are convenient for the public;
    2-3              (6)  the need for publicly operated used oil collection
    2-4  centers should diminish over time.  The need for publicly operated
    2-5  used oil collection centers is greatest in more sparsely populated
    2-6  areas of the state;
    2-7              (7)  the United States Environmental Protection Agency
    2-8  has issued final regulations that properly classify and regulate
    2-9  used oil and used oil filters in accordance with the Resource
   2-10  Conservation and Recovery Act of 1976 (42 U.S.C. Section 6901 et
   2-11  seq.);
   2-12              (8)  the current used oil and used oil filter program
   2-13  in this state imposes more stringent management requirements than
   2-14  the regulations of the United States Environmental Protection
   2-15  Agency;
   2-16              (9)  limited public money is needed to finance public
   2-17  and private infrastructure investments to collect, manage, and
   2-18  recycle used motor oil; and
   2-19              (10)  the used oil management standards in 40 CFR Part
   2-20  279 establish a balanced approach to the objectives of preserving a
   2-21  valuable resource and protecting the natural environment <recycling
   2-22  used oil to produce fuel requires significantly less energy than is
   2-23  needed to refine crude oil into fuel;>
   2-24              <(3)  millions of gallons of used oil generated each
   2-25  year by private citizens in the state are not available for
   2-26  recycling because of improper disposal practices and the lack of
   2-27  collection facilities;>
    3-1              <(4)  although there is a reliable system for the
    3-2  collection and recycling of used oil generated by business and
    3-3  industry, private citizens have only limited access to that system
    3-4  and often dispose of their used oil on land or in landfills,
    3-5  sewers, drainage systems, septic tanks, surface waters or
    3-6  groundwaters, watercourses, or marine waters;>
    3-7              <(5)  improper disposal of this used oil is both a
    3-8  significant environmental problem and a waste of a valuable energy
    3-9  resource; and>
   3-10              <(6)  adequate public funds are required to provide for
   3-11  the proper collection, management, and recycling of used oil>.
   3-12        SECTION 3.  Subchapter A, Chapter 371, Health and Safety
   3-13  Code, is amended by adding Section 371.0025 to read as follows:
   3-14        Sec. 371.0025.  PURPOSE AND SCOPE.  The purposes of this
   3-15  chapter are to:
   3-16              (1)  ensure that this state's used oil program is
   3-17  consistent with the federal program for the management of used oil
   3-18  under 40 CFR Part 279 and of used oil filters under 40 CFR Section
   3-19  261.4(b)(13); and
   3-20              (2)  establish a program to promote public and private
   3-21  do-it-yourselfer used oil collection centers.
   3-22        SECTION 4.  Section 371.003, Health and Safety Code, is
   3-23  amended to read as follows:
   3-24        Sec. 371.003.  Definitions.  In this chapter:
   3-25              (1)  "Automotive oil" means any lubricating oils
   3-26  intended for use in an internal combustion engine, crankcase,
   3-27  transmission, gear box, or differential for an automobile, bus, or
    4-1  truck.  The term includes oil that is not labeled specifically for
    4-2  that use but is suitable for that use according to generally
    4-3  accepted industry specifications.
    4-4              (2)  "Commission" <"Board" means the Texas Natural
    4-5  Resource Conservation Commission.>
    4-6              <(3)  "Department"> means the Texas Natural Resource
    4-7  Conservation Commission.
    4-8              (3)  "Do-it-yourselfer used oil collection center"
    4-9  means a site or facility that accepts or aggregates and stores used
   4-10  oil collected only from household do-it-yourselfers.  If the
   4-11  registered do-it-yourselfer used oil collection center is also a
   4-12  used oil generator as defined in this section, the center may
   4-13  commingle household do-it-yourselfer used oil with its own
   4-14  self-generated used oil.
   4-15              (4)  "Household do-it-yourselfer <"Do-it-yourself>
   4-16  (DIY) used oil" means <used> oil that is derived from a household,
   4-17  including used oil generated by an individual through the
   4-18  maintenance of the individual's personal vehicle or equipment
   4-19  <generated by a person who changes the person's own automotive
   4-20  oil>.
   4-21              (5)  "Household do-it-yourselfer used oil generator"
   4-22  means an individual who generates household do-it-yourselfer
   4-23  <"Generator" means a person whose act or process produces> used
   4-24  oil.
   4-25              (6)  "New tank" means a tank for the storage or
   4-26  processing of used oil the construction of which begins on or after
   4-27  September 1, 1995. <"Public used oil collection center" means:>
    5-1                    <(A)  an automotive service facility that in the
    5-2  course of business accepts for recycling small quantities of used
    5-3  oil from private citizens;>
    5-4                    <(B)  a facility that stores used oil in
    5-5  aboveground tanks and in the course of business accepts for
    5-6  recycling small quantities of used oil from private citizens; and>
    5-7                    <(C)  a publicly sponsored collection facility
    5-8  that is designated and authorized by the department to accept for
    5-9  recycling small quantities of used oil from private citizens.>
   5-10              (7)  "Processing" means chemical or physical operations
   5-11  designed to produce from used oil, or to make used oil more
   5-12  amenable for production of, fuel oils, lubricants, or other
   5-13  used-oil-derived products, including blending used oil with virgin
   5-14  petroleum products, blending used oils to meet fuel specifications,
   5-15  filtration, simple distillation, chemical or physical separation,
   5-16  and rerefining.
   5-17              (8)  "Reclaiming" means processing material to recover
   5-18  a usable product or regenerating material, including recovering
   5-19  lead from a spent battery and regenerating spent solvents <using
   5-20  methods, other than rerefining, to remove insoluble impurities from
   5-21  used oil and making the used oil suitable for further use as a
   5-22  lubricant or petroleum product.  The term includes settling,
   5-23  heating, dehydration, filtration, or centrifuging>.
   5-24              (9) <(8)>  "Recycling" means:
   5-25                    (A)  preparing used oil for reuse as a petroleum
   5-26  product by rerefining, reclaiming, or other means; <or>
   5-27                    (B)  using used oil as a lubricant or petroleum
    6-1  product instead of using a petroleum product made from new oil; or
    6-2                    (C)  burning used oil for energy recovery.
    6-3              (10) <(9)>  "Rerefining" means applying <refining>
    6-4  processes to material composed primarily of used oil to produce
    6-5  high-quality base stocks for lubricants or other petroleum
    6-6  products, including settling, filtering, catalytic conversion,
    6-7  fractional/vacuum distillation, hydrotreating, or polishing.
    6-8              (11) <(10)>  "Used oil" means <any> oil that has been
    6-9  refined from crude oil, or <a> synthetic oil, that as a result of
   6-10  use has been contaminated by physical or chemical impurities<, as a
   6-11  result of use, storage, or handling, has become unsuitable for its
   6-12  original purpose because of impurities or the loss of original
   6-13  properties, but that may be suitable for further use and is
   6-14  recyclable>.
   6-15              (12)  "Used oil aggregation point" means a site or
   6-16  facility that accepts, aggregates, or stores used oil collected
   6-17  from:
   6-18                    (A)  used oil generation sites owned or operated
   6-19  by the owner or operator of the used oil aggregation point and
   6-20  transported to the used oil aggregation point in shipments of not
   6-21  more than 55 gallons; or
   6-22                    (B)  household do-it-yourselfers.
   6-23              (13)  "Used oil burner" means a facility in which used
   6-24  oil not meeting the specifications in 40 CFR Section 279.11 is
   6-25  burned for energy recovery in a device listed in 40 CFR Section
   6-26  279.61(a).
   6-27              (14)  "Used oil collection center" means a site or
    7-1  facility that is registered by the commission to manage used oil
    7-2  and accepts, aggregates, or stores used oil collected from:
    7-3                    (A)  used oil generators regulated under 40 CFR
    7-4  Part 279, Subpart C, who transport used oil to the used oil
    7-5  collection center in shipments of not more than 55 gallons under 40
    7-6  CFR Section 279.24; or
    7-7                    (B)  household do-it-yourselfers.
    7-8              (15)  "Used oil fuel marketer" means a person who:
    7-9                    (A)  directs a shipment of used oil not meeting
   7-10  the specifications in 40 CFR Section 279.11 from the person's
   7-11  facility to a used oil burner; or
   7-12                    (B)  first claims that used oil to be burned for
   7-13  energy recovery meets the used oil specifications in 40 CFR Section
   7-14  279.11.
   7-15              (16)  "Used oil generator" means a person, by site,
   7-16  whose act or process:
   7-17                    (A)  produces used oil; or
   7-18                    (B)  first causes used oil to become subject to
   7-19  regulation.
   7-20              (17)  "Used oil processor or rerefiner" means a
   7-21  facility that processes used oil.
   7-22              (18)  "Used oil transfer facility" means a
   7-23  transportation-related facility, including a loading dock, parking
   7-24  area, storage area, or other area, where shipments of used oil are
   7-25  held for more than 24 hours and not more than 35 days during the
   7-26  normal course of transportation or before an activity performed
   7-27  under 40 CFR Section 279.20(b)(2) takes place.
    8-1              (19)  "Used oil transporter" means a person who:
    8-2                    (A)  transports used oil; or
    8-3                    (B)  owns or operates a used oil transfer
    8-4  facility.
    8-5        SECTION 5.  Subchapter B, Chapter 371, Health and Safety
    8-6  Code, is amended to read as follows:
    8-7               SUBCHAPTER B.  USED OIL RECYCLING PROGRAM
    8-8        Sec. 371.021.  Public Education.  The commission <department>
    8-9  shall conduct an education program to inform the public of the need
   8-10  for and benefits of the collection and recycling of used oil and
   8-11  used oil filters.  The program shall:
   8-12              (1)  establish, maintain, and publicize a used oil
   8-13  information center that prepares and disperses materials and
   8-14  information explaining laws and rules regulating used oil and
   8-15  informing the public of places and methods for proper recycling of
   8-16  used oil;
   8-17              (2)  encourage the voluntary establishment of used oil
   8-18  collection and recycling programs by private businesses and
   8-19  organizations and by local governments and provide technical
   8-20  assistance to persons who organize those programs; and
   8-21              (3)  encourage local governments to procure recycled
   8-22  automotive and industrial oils and oils blended with recycled oils,
   8-23  if those oils meet equipment manufacturer's specifications.
   8-24        Sec. 371.022.  Notice by Retail Dealer.  A retail dealer who
   8-25  annually sells directly to the public more than 500 gallons of oil
   8-26  in containers for use off-premises shall post in a prominent place
   8-27  a sign provided by the commission:
    9-1              (1)  <department> informing the public that improper
    9-2  disposal of used oil is prohibited by law;
    9-3              (2)  containing instructions for disposal of used oil
    9-4  filters; and
    9-5              (3)  <.  The sign shall also> prominently displaying
    9-6  <display> the toll-free telephone number of the state used oil
    9-7  information center established under Section 371.021.
    9-8        Sec. 371.023.  GRANTS TO LOCAL GOVERNMENTS AND PRIVATE
    9-9  ENTITIES.  (a)  The commission <department> shall develop a grant
   9-10  program for local governments and private entities that encourages
   9-11  the collection, reuse, and recycling of household do-it-yourselfer
   9-12  (DIY) used oil.
   9-13        (b)  The commission may approve a <A> grant <may be made> for
   9-14  any project <approved by the department.  The department shall
   9-15  consider for grant assistance any local government project> that
   9-16  uses one or more of the following programs:
   9-17              (1)  curbside pickup of containers of household
   9-18  do-it-yourselfer (DIY) used oil by a local government or its
   9-19  representative;
   9-20              (2)  retrofitting of municipal solid waste equipment to
   9-21  facilitate curbside pickup of household do-it-yourselfer (DIY) used
   9-22  oil;
   9-23              (3)  establishment of do-it-yourselfer <publicly
   9-24  operated DIY> used oil collection centers at locations accessible
   9-25  to the public, including landfills, fire stations, retail stores,
   9-26  quick lubrication centers, and automobile repair shops <or other
   9-27  public places>;
   10-1              (4)  provision of containers and other materials and
   10-2  supplies that can be used to store household do-it-yourselfer (DIY)
   10-3  used oil for pickup or delivery to a do-it-yourselfer used oil
   10-4  collection center in an environmentally sound manner; and
   10-5              (5)  any other activity the advisory committee
   10-6  established under Subsection (e) <department> determines will
   10-7  encourage the proper recycling of household do-it-yourselfer (DIY)
   10-8  used oil.
   10-9        (c)  During the calendar year 1995, the commission, through
  10-10  the Texas Department of Commerce, may extend grants to any entity
  10-11  that participates in the processing or recycling of used oil
  10-12  filters for the development or enhancement of structures for
  10-13  recycling used oil filters.  The aggregate grant amount shall not
  10-14  exceed $500,000.
  10-15        (d)  A grant to a municipal do-it-yourselfer used oil
  10-16  collection center or group of centers must be made directly to the
  10-17  center or group of centers and may not be made to an entity that
  10-18  redistributes money to do-it-yourselfer used oil collection centers
  10-19  or another third party.
  10-20        (e)  The commission shall appoint an advisory committee for
  10-21  the used oil grant program.  The advisory committee consists of
  10-22  nine members who serve at the pleasure of the commission and
  10-23  represent oil manufacturers as defined by Section 371.062 and
  10-24  filter manufacturers, used oil collection centers, and local
  10-25  governments.  The advisory committee shall recommend criteria for
  10-26  grants and recommend grant recipients to the commission based on
  10-27  the used oil collection needs of this state.  The advisory
   11-1  committee members serve without compensation and are not entitled
   11-2  to reimbursement for expenses incurred in the performance of their
   11-3  duties.
   11-4        (f)  The commission <board> by rule shall establish
   11-5  procedures for the application for and criteria for the award of
   11-6  grants under this section.
   11-7        Sec. 371.024.  Collection Facilities.  (a)  All appropriate
   11-8  businesses <that change motor oil for the public> and <all
   11-9  appropriate> government agencies are encouraged to serve as
  11-10  do-it-yourselfer <public> used oil collection centers and used oil
  11-11  collection centers.
  11-12        (b)  A do-it-yourselfer <public> used oil collection center
  11-13  and a used oil collection center biannually <annually> shall:
  11-14              (1)  register with the commission <department>; and
  11-15              (2)  report to the commission <department> the amounts
  11-16  of used oil collected by the center from the public.
  11-17        (c)  The commission <board> shall adopt rules governing the
  11-18  registration of and reporting by do-it-yourselfer <public> used oil
  11-19  collection centers and used oil collection centers.
  11-20        (d)  The commission <board> by rule shall adopt standards for
  11-21  managing and operating a do-it-yourselfer <public> used oil
  11-22  collection center or a used oil collection center.
  11-23        (e)  The commission <department> may impose a registration
  11-24  fee in an amount sufficient to cover the actual cost of registering
  11-25  do-it-yourselfer <public> used oil collection centers and used oil
  11-26  collection centers.  A private entity that serves voluntarily as a
  11-27  do-it-yourselfer used oil collection center is exempt from the
   12-1  registration fee.
   12-2        Sec. 371.0245.  Reimbursement of Used Oil Collection Center's
   12-3  Hazardous Waste Expense <Center>.  (a)  The commission, on proper
   12-4  application, shall reimburse the owner or operator of an eligible
   12-5  registered do-it-yourselfer <public> used oil collection center or
   12-6  a used oil collection center for costs associated with the
   12-7  collection center's disposal of:
   12-8              (1)  household do-it-yourselfer <do-it-yourself> (DIY)
   12-9  used oil collected by the collection center that, unknown to the
  12-10  center at the time of collection, contains hazardous wastes or is
  12-11  unfit for recycling;
  12-12              (2)  household do-it-yourselfer (DIY) used oil
  12-13  collected by the collection center that has been commingled with
  12-14  DIY oils described in Subdivision (1) and is unsuitable for
  12-15  recycling; or
  12-16              (3)  contaminated used oil left at the collection
  12-17  center as used oil after posted business hours and without the
  12-18  knowledge of the collection center.
  12-19        (b)  A registered do-it-yourselfer <public> used oil
  12-20  collection center is eligible for reimbursement if it demonstrates
  12-21  to the satisfaction of the commission that:
  12-22              (1)  the center has established procedures to minimize
  12-23  the risk that the center will mix the used oil the center generates
  12-24  or collects from the public <will not be mixed> with hazardous
  12-25  wastes, especially halogenated wastes;
  12-26              (2)  the center accepts not more than five gallons of
  12-27  used oil from any person at any one time; and
   13-1              (3)  the center can document to the satisfaction of the
   13-2  commission the volume of used oil the center collects from the
   13-3  public during any <a> period under review by:
   13-4                    (A)  providing a process by which all individuals
   13-5  leaving household do-it-yourselfer <do-it-yourself> (DIY) used oil
   13-6  at the center are required to provide <log> their names, addresses,
   13-7  and the approximate amounts of used oil brought to the collection
   13-8  center <and ensuring that all do-it-yourself (DIY) used oil
   13-9  collected is kept in a separate sealed and labeled container placed
  13-10  on an impermeable surface>; or
  13-11                    (B)  another method approved by the commission.
  13-12        (c)  For the purpose of Subsection (b)(2), the owner or
  13-13  operator of a registered do-it-yourselfer <public> used oil
  13-14  collection center may presume that a quantity of not more than five
  13-15  gallons of used oil collected from a member of the public is not
  13-16  mixed with a hazardous substance<,> if the owner or operator acts
  13-17  in good faith <and> in the belief the oil is generated from the
  13-18  individual's personal activity.
  13-19        (d)  In any state fiscal year, a registered do-it-yourselfer
  13-20  <public> used oil collection center may not be reimbursed for more
  13-21  than $7,500 <$5,000> in total eligible disposal costs, subject to
  13-22  Section 371.0246(d).
  13-23        (e)  Reimbursements <A reimbursement> made under this section
  13-24  shall <may> be paid out of the used oil recycling fund and may not
  13-25  <to> exceed an aggregate amount of $500,000 each fiscal year.
  13-26        Sec. 371.0246.  Procedures for Reimbursement.  (a)  An owner
  13-27  or operator of a registered do-it-yourselfer <public> used oil
   14-1  collection center may apply for reimbursement from the commission.
   14-2        (b)  An application for reimbursement shall be submitted
   14-3  <filed> on a form approved or provided by the commission.
   14-4        (c)  An application must contain:
   14-5              (1)  the name, address, and telephone number of the
   14-6  applicant;
   14-7              (2)  the name, mailing address, location address, and
   14-8  commission registration number of the registered do-it-yourselfer
   14-9  <public> used oil collection center from which the contaminated oil
  14-10  was removed;
  14-11              (3)  the name, address, telephone number, and
  14-12  commission registration number of the hazardous waste transporter
  14-13  used to dispose of the contaminated used oil;
  14-14              (4)  a copy of any <the signed uniform hazardous waste>
  14-15  manifest or shipping documents that accompanied the transportation
  14-16  of the shipment of used oil;
  14-17              (5)  a copy of each invoice for which reimbursement is
  14-18  requested and evidence that the amount shown on the invoice has
  14-19  been paid in full<, which may be> in the form of:
  14-20                    (A)  canceled checks;
  14-21                    (B)  business receipts from the person who
  14-22  performed the work; or
  14-23                    (C)  other documentation approved by the
  14-24  commission;
  14-25              (6)  a waste-characterization or similar documentation
  14-26  required before acceptance of a hazardous waste by the disposal
  14-27  facility that accepted the contaminated used oil for treatment or
   15-1  disposal; and
   15-2              (7)  any other information that the executive director
   15-3  may reasonably require.
   15-4        (d)  All claims for reimbursement filed under this section
   15-5  and Section 371.0245 are subject to funds available for
   15-6  disbursement <the availability of money> in the used oil recycling
   15-7  fund and to Section 371.0245(e).  This subchapter does not create
   15-8  an entitlement to money in the used oil recycling fund or any other
   15-9  fund.
  15-10        Sec. 371.025.  LIMITATION OF LIABILITY.  (a)  A person may
  15-11  not recover from the owner, operator, or lessor of a registered
  15-12  public used oil collection center any damages or costs of response
  15-13  actions at another location resulting from a release or threatened
  15-14  release of used oil collected at the center if:
  15-15              (1)  the owner, operator, or lessor of the collection
  15-16  center does not mix the used oil collected with any hazardous waste
  15-17  or polychlorinated biphenyls (PCBs);
  15-18              (2)  the owner, operator, or lessor of the collection
  15-19  center does not accept used oil that the owner, operator, or lessor
  15-20  knows contains hazardous waste or PCBs; and
  15-21              (3)  the collection center is in compliance with
  15-22  management standards adopted by the department.
  15-23        (b)  For purposes of this section, the owner, operator, or
  15-24  lessor of a public used oil collection center may presume that a
  15-25  quantity of less than five gallons of used oil accepted at any one
  15-26  time from any member of the public is not mixed with a hazardous
  15-27  waste or PCBs, provided that the owner, operator, or lessor acts in
   16-1  good faith.
   16-2        (c)  This section applies only to activities directly related
   16-3  to the collection of used oil by a public used oil collection
   16-4  center.  This section does not apply to grossly negligent
   16-5  activities related to the operation of a used oil collection
   16-6  center.
   16-7        (d)  This section does not affect or modify the obligations
   16-8  or liability of any person other than the owner, operator, or
   16-9  lessor of the collection center under any other provisions of state
  16-10  or federal law, including common law, for injury or damage
  16-11  resulting from a release of used oil or hazardous substances.
  16-12        (e)  This section does not affect or modify the obligations
  16-13  or liability of any owner, operator, or lessor of a collection
  16-14  center with regard to services other than accepting used oil from
  16-15  the public.
  16-16        Sec. 371.026.  Registration of <Persons Transporting,
  16-17  Marketing, or Recycling> Used Oil Handlers Other Than Generators.
  16-18  (a)  <A person who transports over public highways of this state
  16-19  more than 500 gallons of used oil annually, who markets more than
  16-20  500 gallons of used oil annually, or who recycles more than 10,000
  16-21  gallons of used oil annually shall register annually with the
  16-22  department on forms prescribed by the department and in accordance
  16-23  with board rules.>
  16-24        <(b)  The department shall develop a registration program for
  16-25  transporters, marketers, and recyclers of used oil.>
  16-26        <(c)>  The commission <board> shall adopt rules governing
  16-27  registration and reporting of used oil handlers other than
   17-1  generators <transporters, marketers, and recyclers>.  The rules
   17-2  shall require that a used oil handler other than a generator
   17-3  <transporter, marketer, or recycler>:
   17-4              (1)  register biannually <annually> with the commission
   17-5  <department>;
   17-6              (2)  report biannually <annually> the sources of used
   17-7  oil handled <transported, marketed, or recycled> during the
   17-8  preceding year, the quantity of used oil received, the date of
   17-9  receipt, and the destination or end use of the used oil;
  17-10              (3)  provide evidence of familiarity with applicable
  17-11  state laws and rules and management procedures applicable to used
  17-12  oil handling <transportation, marketing, or recycling>; and
  17-13              (4)  provide proof of liability insurance or other
  17-14  evidence of financial responsibility for any liability that may be
  17-15  incurred in handling <transporting, marketing, or recycling> used
  17-16  oil.
  17-17        (b) <(d)>  The commission <board> by rule shall adopt
  17-18  reasonable management and safety standards for the handling
  17-19  <transportation, marketing, and recycling> of used oil.
  17-20        (c) <(e)>  The commission <department> may impose a
  17-21  registration fee in an amount sufficient to cover the actual cost
  17-22  of registering used oil handlers other than generators
  17-23  <transporters, marketers, and recyclers>.
  17-24        (d)  A used oil transporter may consolidate or aggregate
  17-25  loads of used oil for purposes of transportation but may not
  17-26  process used oil, except that a used oil transporter may conduct
  17-27  incidental processing operations, including settling and water
   18-1  separation, that occur in the normal course of the transportation
   18-2  of used oil but that are not designed to produce, or make more
   18-3  amenable for the production of, used-oil-derived products or used
   18-4  oil fuel.  <(f)  A utility or industrial generator of used oil that
   18-5  transports its own used oil from one generator-owned or
   18-6  generator-operated facility to another or that recycles its own
   18-7  used oil for use in its operations is not required to register or
   18-8  report under this section.>
   18-9        Sec. 371.027.  Gifts and Grants.  The commission <department>
  18-10  may apply for, request, solicit, contract for, receive, and accept
  18-11  gifts, grants, donations, and other assistance from any source to
  18-12  carry out its powers and duties under this chapter.
  18-13        Sec. 371.028.  Rules.  (a)  Not later than January 1, 1996,
  18-14  the commission shall adopt rules, standards, and procedures
  18-15  necessary to implement the used oil program established by this
  18-16  chapter.  The rules, standards, and procedures must be consistent
  18-17  with the used oil management standards under 40 CFR Part 279.
  18-18        (b)  The classification of used oil filters is an exception
  18-19  to Subsection (a).  The commission shall adopt rules, standards,
  18-20  and procedures consistent with the classification of used oil
  18-21  filters under 40 CFR Section 261.4(b)(13) as of the promulgation of
  18-22  this Act not later than January 1, 2000.  <The board may adopt any
  18-23  rules necessary to carry out the purposes of this chapter.>
  18-24        SECTION 6.  Section 371.041, Health and Safety Code, is
  18-25  amended by amending Subsections (b)-(d) and adding Subsection (e)
  18-26  to read as follows:
  18-27        (b)  A person commits an offense if the person:
   19-1              (1)  intentionally discharges used oil into a sewer,
   19-2  drainage system, septic tank, surface water or groundwater,
   19-3  watercourse, or marine water;
   19-4              (2)  knowingly mixes or commingles used oil with
   19-5  <solid> waste that is to be disposed of in landfills or directly
   19-6  disposes of used oil on land <or in landfills>;
   19-7              (3)  knowingly transports, treats, stores, disposes,
   19-8  recycles, causes to be transported, or otherwise handles any
   19-9  <intentionally mixes or commingles used oil with hazardous waste or
  19-10  other hazardous substances or PCBs;>
  19-11              <(4)  transports, markets, or recycles> used oil within
  19-12  the state without first complying with the registration
  19-13  requirements of Section 371.026 and rules adopted under that
  19-14  section;
  19-15              (4)  intentionally <(5)>  applies used oil to roads or
  19-16  land for dust suppression, weed abatement, or other similar uses
  19-17  that introduce used oil into the environment; <or>
  19-18              (5) <(6)>  violates an order of the commission
  19-19  <department> to cease and desist any activity prohibited by this
  19-20  section or any rule applicable to a prohibited activity; or
  19-21              (6)  makes any false statement or representation in any
  19-22  application, label, manifest, record, report, permit or other
  19-23  document filed, maintained, or used for purposes of program
  19-24  compliance.
  19-25        (c)  It is an exception to the application of Subsection (b)
  19-26  if a person unknowingly disposes into the environment <a landfill>
  19-27  any used oil that has not been properly segregated or separated by
   20-1  the generator from other solid wastes.
   20-2        (d)  It is an exception to the application of Subsection
   20-3  (b)(2) if the mixing or commingling of used oil with <solid> waste
   20-4  that is to be disposed of in landfills is incident to and the
   20-5  unavoidable result of the mechanical shredding of motor vehicles,
   20-6  appliances, or other items of scrap, used, or obsolete metals.
   20-7        (e)  It is an exception to the application of Subsection
   20-8  (b)(2) if the mixing or commingling of used oil with waste is the
   20-9  result of an oil change that results in the generation of a used
  20-10  oil filter under 40 CFR Section 261.4(b)(13).
  20-11        SECTION 7.  Section 371.042, Health and Safety Code, is
  20-12  amended to read as follows:
  20-13        Sec. 371.042.  Criminal Penalties.  (a)  Except as provided
  20-14  by Subsection (b), an offense under Section 371.041 is punishable
  20-15  by:
  20-16              (1)  a fine of not less than $100 or more than $10,000
  20-17  for each act of violation or each day of a continuing violation;
  20-18              (2)  imprisonment for a term not to exceed five years;
  20-19  or
  20-20              (3)  both the fine and the imprisonment <a Class C
  20-21  misdemeanor>.
  20-22        (b)  If it is shown on the trial of an offense under Section
  20-23  371.041 that the defendant has previously been convicted of an
  20-24  offense under Section 371.041, the offense is punishable by:
  20-25              (1)  a fine of not less than $200 or more than $20,000
  20-26  for each act of violation or each day of a continuing violation;
  20-27              (2)  imprisonment for a term not to exceed 10 years; or
   21-1              (3)  both the fine and the imprisonment <a Class A
   21-2  misdemeanor>.
   21-3        SECTION 8.  Sections 371.043(c) and (d), Health and Safety
   21-4  Code, are amended to read as follows:
   21-5        (c)  The penalty imposed by this section does not apply to
   21-6  failure to pay a fee under Section 371.062 or failure to file a
   21-7  report under Section 371.024 <or 371.026>.
   21-8        (d)  The commission <department>, a local government in whose
   21-9  jurisdiction the violation occurs, or the state may bring suit to
  21-10  recover a penalty under this section.
  21-11        SECTION 9.  Sections 371.061(b)-(d), Health and Safety Code,
  21-12  are amended to read as follows:
  21-13        (b)  The fund consists of:
  21-14              (1)  fees collected under Sections 371.024, 371.026,
  21-15  and 371.062;
  21-16              (2)  interest and penalties imposed under this chapter
  21-17  for late payment of fees, failure to file a report, or other
  21-18  violations of this chapter; and
  21-19              (3)  gifts, grants, donations, or other financial
  21-20  assistance the commission <department> is authorized to receive
  21-21  under Section 371.027.
  21-22        (c)  Except as provided by Subsection (d), the commission
  21-23  <department> may use money in the fund only for purposes authorized
  21-24  by this chapter, including:
  21-25              (1)  public education;
  21-26              (2)  grants to public and private do-it-yourselfer used
  21-27  oil collection centers;
   22-1              (3)  registration of do-it-yourselfer used oil
   22-2  collection centers and<,> used oil handlers other than generators
   22-3  <transporters, used oil marketers, and used oil recyclers>; and
   22-4              (4)  administrative costs of implementing this chapter,
   22-5  not to exceed six percent of the fund balance in any fiscal year.
   22-6        (d)  The commission <department> shall set aside <transfer>
   22-7  25 percent of the fees collected under Section 371.062 <to the
   22-8  Texas Water Commission> for the sole purpose of restoring the
   22-9  environmental quality of those sites in the state that the
  22-10  commission has identified as having been contaminated through
  22-11  improper used oil management and for which other funds from a
  22-12  potentially responsible party or the federal government are not
  22-13  sufficient.  This subsection expires on January 1, 1998 <1997>.
  22-14        SECTION 10.  Section 371.062, Health and Safety Code, is
  22-15  amended by amending Subsections (a), (b), (f), and (j) and adding
  22-16  Subsections (m)-(p) to read as follows:
  22-17        (a)  In this section:
  22-18              (1)  "First sale" means the first actual sale of
  22-19  automotive oil delivered to a location in this state and sold to a
  22-20  purchaser who is not an automotive oil manufacturer.  The term does
  22-21  not include the sale of automotive oil exported from this state to
  22-22  a location outside this state for the purpose of sale or use
  22-23  outside this state.  This term does not include sales of automotive
  22-24  oils for resale to or use by vessels exclusively engaged in foreign
  22-25  or interstate commerce.  The term also does not include the sales
  22-26  of automotive oil to any subsequent purchaser who maintains a
  22-27  do-it-yourselfer used oil collection center registered by the
   23-1  commission at the location where the automotive oil is changed,
   23-2  used, consumed, or resold to do-it-yourselfers.
   23-3              (2)  "Importer" means any person who imports or causes
   23-4  to be imported automotive oil into this state for sale, use, or
   23-5  consumption.
   23-6              (3)  "Oil manufacturer" means any person or entity that
   23-7  formulates automotive oil and packages, distributes, or sells that
   23-8  automotive oil.  The term includes any person packaging or
   23-9  repackaging automotive oil.
  23-10              (4)  "Permitted distributor" means a distributor who
  23-11  maintains a distribution center or warehouse in this state and
  23-12  exports from this state to a location outside this state more than
  23-13  25,000 gallons of automotive oil on an annual basis.
  23-14                    (A)  A permitted distributor shall file an
  23-15  application with the comptroller for a nonassignable permit
  23-16  provided for in this section.
  23-17                    (B)  The comptroller shall promulgate the
  23-18  application form, which must contain the following information:
  23-19                          (i)  the name under which the applicant
  23-20  transacts or intends to transact business;
  23-21                          (ii)  the location of distribution
  23-22  center(s) or warehouse in Texas of the applicant;
  23-23                          (iii)  if the applicant is not an
  23-24  individual, the names of the principal officers of an applicant
  23-25  corporation, or the names of the members of an applicant
  23-26  partnership, and the office, street, or post office address of
  23-27  each; and
   24-1                          (iv)  other information required by the
   24-2  comptroller.
   24-3                    (C)  The comptroller may deny or revoke a permit
   24-4  if false information is submitted on the application or on a
   24-5  required fuels tax report or supplement.
   24-6        (b)  An oil manufacturer or permitted distributor who makes a
   24-7  first sale of automotive oil is liable for a fee.
   24-8        (f)  Each oil manufacturer, permitted distributor, or
   24-9  importer required to pay a fee under this section shall:
  24-10              (1)  prepare and maintain, on a form provided or
  24-11  approved by the comptroller, a report of each first sale or, in the
  24-12  case of an importer, the first receipt in Texas of automotive oil
  24-13  by the person and the price received;
  24-14              (2)  retain the invoice or a copy of the invoice or
  24-15  other appropriate record of the sale or receipt for four years from
  24-16  the date of sale or receipt; and
  24-17              (3)  on or before the 25th day of the month following
  24-18  the end of each calendar quarter, file a report with the
  24-19  comptroller and remit to the comptroller the amount of fees
  24-20  required to be paid for the preceding quarter.
  24-21        (j)  The fee imposed under this section is one cent <two
  24-22  cents> per quart or four <eight> cents per gallon of automotive
  24-23  oil.  <The department shall monitor the unobligated balance of the
  24-24  used oil recycling fund and shall adjust the fee rate to meet
  24-25  expenditure requirements of the used oil recycling program and to
  24-26  maintain an appropriate fund balance.  The fee imposed under this
  24-27  section may not exceed five cents per quart or 20 cents per gallon
   25-1  of automotive oil.  On or before September 1 of each year, the
   25-2  department and the comptroller jointly shall issue notice of the
   25-3  effective fee rate for the next fiscal year.>
   25-4        (m)  A distributor must obtain a permit from the comptroller.
   25-5  The comptroller shall adopt an application form for the permit,
   25-6  which must include:
   25-7              (1)  the name under which the applicant transacts or
   25-8  intends to transact business;
   25-9              (2)  the location of the applicant's distribution
  25-10  center or warehouse in this state;
  25-11              (3)  if the applicant is a corporation or partnership,
  25-12  the names of the principal officers of the corporation or of the
  25-13  members of the partnership and the address of each officer or
  25-14  member; and
  25-15              (4)  any other information required by the comptroller.
  25-16        (n)  The comptroller may deny or revoke a permit under
  25-17  Subsection (m) if false information is submitted on the application
  25-18  or on a required fuels tax report or supplement.
  25-19        (o)  A permit under Subsection (m) may not be assigned.
  25-20        (p)  The fee imposed under this section expires January 1,
  25-21  2000.
  25-22        SECTION 11.  (a)  The change in law made by this Act to
  25-23  Section 371.042, Health and Safety Code, applies only to an offense
  25-24  committed on or after the effective date of this Act.  For purposes
  25-25  of this section, an offense is committed before the effective date
  25-26  of this Act if any element of the offense occurs before that date.
  25-27        (b)  An offense committed before the effective date of this
   26-1  Act is covered by the law in effect when the offense was committed,
   26-2  and the former law is continued in effect for that purpose.
   26-3        SECTION 12.  (a)  Except as provided by Subsection (b) of
   26-4  this section, this Act takes effect September 1, 1995.
   26-5        (b)  Section 371.062(j), Health and Safety Code, as amended
   26-6  by this Act, takes effect January 1, 1996.
   26-7        SECTION 13.  The importance of this legislation and the
   26-8  crowded condition of the calendars in both houses create an
   26-9  emergency and an imperative public necessity that the
  26-10  constitutional rule requiring bills to be read on three several
  26-11  days in each house be suspended, and this rule is hereby suspended.