By Howard, Saunders, Kuempel                          H.B. No. 3220
       74R11041 T
                                 A BILL TO BE ENTITLED
    1-1                                AN ACT
    1-2  relating to the collection, management, and recycling of used oil.
    1-3        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-4        SECTION 1.  Chapter 371, Health and Safety Code, is amended
    1-5  to read as follows:
    1-6     CHAPTER 371.  USED OIL COLLECTION, MANAGEMENT, AND RECYCLING
    1-7                   SUBCHAPTER A.  GENERAL PROVISIONS
    1-8        Sec. 371.001.  Short Title.  This chapter may be cited as the
    1-9  Texas Used Oil Collection, Management, and Recycling Act.
   1-10        Sec. 371.002.  Findings.  The legislature finds that:
   1-11              <(1)  when properly managed, used oil is a valuable
   1-12  energy resource, the reuse of which may make a significant
   1-13  contribution toward energy efficiency and conservation;>
   1-14              <(2)  recycling used oil to produce fuel requires
   1-15  significantly less energy than is needed to refine crude oil into
   1-16  fuel;>
   1-17              <(3)  millions of gallons of used oil generated each
   1-18  year by private citizens in the state are not available for
   1-19  recycling because of improper disposal practices and the lack of
   1-20  collection facilities;>
   1-21              <(4)  although there is a reliable system for the
   1-22  collection and recycling of used oil generated by business and
   1-23  industry, private citizens have only limited access to that system
   1-24  and often dispose of their used oil on land or in landfills,
    2-1  sewers, drainage systems, septic tanks, surface waters or
    2-2  groundwaters, watercourses, or marine waters;>
    2-3              <(5)  improper disposal of this used oil is both a
    2-4  significant environmental problem and a waste of a valuable energy
    2-5  resource; and>
    2-6              <(6)  adequate public funds are required to provide for
    2-7  the proper collection, management, and recycling of used oil.>
    2-8              (1)  when properly managed and recycled, used oil is a
    2-9  valuable energy resource,
   2-10              (2)  used oil can be recycled into a number of
   2-11  different products,
   2-12              (3)  improper disposal of used oil is a significant
   2-13  environmental problem and a waste of a potentially valuable energy
   2-14  resource,
   2-15              (4)  there is a need for an expanded statewide network
   2-16  of public and private used oil collection sites for private
   2-17  citizens who change their own motor oil,
   2-18              (5)  the United States Environmental Protection Agency
   2-19  (U.S.E.P.A.) has issued final regulations which properly classify
   2-20  and regulate used oil and used oil filters in accordance with the
   2-21  management standards that carry out the requirements of the federal
   2-22  Resource Conservation and Recovery Act,
   2-23              (6)  the current used oil and used oil filter program
   2-24  in the State of Texas imposes more stringent management
   2-25  requirements than the U.S.E.P.A. rules, and
   2-26              (7)  limited public funds are needed to finance public
   2-27  and private infrastructure investments to collect, manage and
    3-1  recycle used motor oil.
    3-2              (8)  the federal used oil management standards
    3-3  published in the Code of Federal Regulations at 40 CFR Part 279
    3-4  establish a balanced approach to the objectives of preserving a
    3-5  valuable resource and protecting the natural environment (40 CFR
    3-6  279).
    3-7        Sec. 371.0021.  PURPOSE AND SCOPE.  It is the purpose of this
    3-8  statute to ensure that the Texas used oil program is consistent
    3-9  with the federal program for the management of used oil found at 40
   3-10  CFR 279 and used oil filters found at 40 CFR 261.4(b)(13) as
   3-11  promulgated on the effective date of this act not later than
   3-12  January 1, 2000.  Accordingly, no rule which the Texas Natural
   3-13  Resource Conservation Commission makes for the purpose of the state
   3-14  administration of the used oil program under the federal Resource
   3-15  Conservation and Recovery Act shall be more stringent than the
   3-16  corresponding federal regulations which address the same
   3-17  circumstances.  In addition, this section establishes a Texas
   3-18  program to promote public and private do-it-yourselfer used oil
   3-19  collection centers.
   3-20        Sec. 371.003.  Definitions.  In this chapter:
   3-21              (1)  "Aboveground tank" means a tank used to store or
   3-22  process used oil that is not an underground storage tank as defined
   3-23  in 40 CFR 280.12.
   3-24              <(1)> (2)  "Automotive oil" means any lubricating oils
   3-25  intended for use in an internal combustion engine, crankcase,
   3-26  transmission, gear box, or differential for an automobile, bus, or
   3-27  truck.  The term includes oil that is not labeled specifically for
    4-1  that use but is suitable for that use according to generally
    4-2  accepted industry specifications.
    4-3              <(2)  "Board" means the Texas Natural Resource
    4-4  Conservation Commission.>
    4-5              (3)  "<Department> Commission" means the Texas Natural
    4-6  Resource Conservation Commission.
    4-7              (4)  "Container" means any portable device in which a
    4-8  material is stored, transported, treated, disposed of, or otherwise
    4-9  handled.
   4-10              (5)  "Do-it-yourselfer used oil collection center"
   4-11  means any site or facility that accepts/aggregates and stores used
   4-12  oil collected from household do-it-yourselfers.
   4-13              (6)  "Existing tank" means a tank that is used for the
   4-14  storage or processing of used oil and that is in operation, or for
   4-15  which installation has commenced on or prior to the effective date
   4-16  of this statute.  Installation will be considered to have commenced
   4-17  if the owner or operator has obtained all federal, state, and local
   4-18  approvals or permits necessary to begin installation of the tank
   4-19  and if either:
   4-20                    (1)  A continuous on-site installation program
   4-21  has begun, or
   4-22                    (2)  The owner or operator has entered into
   4-23  contractual obligations--which cannot be canceled or modified
   4-24  without substantial loss--for installation of the tank to be
   4-25  completed within a reasonable time.
   4-26              <(4)> (7)  "Household <D>do-it-yourself (DIY) used oil"
   4-27  means <used> oil that is <generated by a person who changes the
    5-1  person's own automotive oil> derived from households, such as used
    5-2  oil generated by individuals who generate used oil through the
    5-3  maintenance of their personal vehicles and equipment.
    5-4              (8)  "Household do-it-yourselfer used oil generator"
    5-5  means an individual who generates household do-it-yourselfer used
    5-6  oil.
    5-7              <(5)  "Generator" means a person whose act or process
    5-8  produces used oil.>
    5-9              (9)  "New tank" means a tank that will be used to store
   5-10  or process used oil and for which installation has commenced after
   5-11  the effective date of this statute.
   5-12              (10)  "Processing" means chemical or physical
   5-13  operations designed to produce from used oil, or to make used oil
   5-14  more amenable for production of, fuel oils, lubricants, or other
   5-15  used oil-derived product.  Processing includes, but is not limited
   5-16  to:  blending used oil with virgin petroleum products, blending
   5-17  used oils to meet the fuel specification, filtration, simple
   5-18  distillation, chemical or physical separation and rerefining.
   5-19              <(8)> (11)  "Recycling" means<:> a material which is
   5-20  used, reused or reclaimed as described at 40 CFR 261.1(c).
   5-21                    <(A)  preparing used oil for reuse as a petroleum
   5-22  product by rerefining, reclaiming, or other means; or>
   5-23                    <(B)  using used oil as a lubricant or petroleum
   5-24  product instead of using a petroleum product made from new oil.>
   5-25              (12)  "Rerefining distillation bottoms" means the heavy
   5-26  fraction produced by vacuum distillation of filtered and dehydrated
   5-27  used oil.  The composition of still bottoms varies with column
    6-1  operation and feedstock.
    6-2              (13)  "Tank" means any stationary device, designed to
    6-3  contain an accumulation of used oil which is constructed primarily
    6-4  of non-earthen materials, (e.g., wood, concrete, steel, plastic)
    6-5  which provides structural support.
    6-6              (14)  "Used oil" means any oil that has been refined
    6-7  from crude oil, or any synthetic oil, that has been used and as a
    6-8  result of such use is contaminated by physical or chemical
    6-9  impurities.
   6-10              (15)  "Used oil aggregation point" means any site or
   6-11  facility that accepts, aggregates, and/or stores used oil collected
   6-12  only from other used oil generation sites owned or operated by the
   6-13  owner or operator of the aggregation point, from which used oil is
   6-14  transported to the aggregation point in shipments of no more than
   6-15  55 gallons.  Used oil aggregation points may also accept used oil
   6-16  from household do-it-yourselfers.
   6-17              (16)  "Used oil burner" means a facility where used oil
   6-18  not meeting the specification requirements in 40 CFR 279.11 is
   6-19  burned for energy recovery in devices identified in 40 CFR
   6-20  279.61(a).
   6-21              <(6)> (17)  "<Public u>Used oil collection center"
   6-22  means<:>
   6-23                    <(A)  an automotive service facility that in the
   6-24  course of business accepts for recycling small quantities of used
   6-25  oil from private citizens;>
   6-26                    <(B)  a facility that stores used oil in
   6-27  aboveground tanks and in the course of business accepts for
    7-1  recycling small quantities of used oil from private citizens; and>
    7-2                    <(C)  a publicly sponsored collection facility
    7-3  that is designated and authorized by the department to accept for
    7-4  recycling small quantities of used oil from private citizens.>
    7-5  any site or facility that is registered by the commission to manage
    7-6  used oil and accepts/aggregates and stores used oil collected from
    7-7  used oil generators regulated under 40 CFR Part 279 Subpart C who
    7-8  bring used oil to the collection center in shipments of no more
    7-9  than 55 gallons under the provisions of 40 CFR 279.24.  Used oil
   7-10  collection centers may also accept used oil from household
   7-11  do-it-yourselfers.
   7-12              <(7)  "Reclaiming" means using methods, other than
   7-13  rerefining, to remove insoluble impurities from used oil and making
   7-14  the used oil suitable for further use as a lubricant or petroleum
   7-15  product.  The term includes settling, heating, dehydration,
   7-16  filtration, or centrifuging.>
   7-17              <(9)  "Rerefining" means applying refining processes to
   7-18  used oil to produce high quality base stocks for lubricants or
   7-19  other petroleum products.>
   7-20              <(10)  "Used oil" means any oil that has been refined
   7-21  from crude oil or a synthetic oil that, as a result of use,
   7-22  storage, or handling, has become unsuitable for its original
   7-23  purpose because of impurities or the loss of original properties,
   7-24  but that may be suitable for further use and is recyclable.>
   7-25              (18)  "Used oil fuel marketer" means any person who
   7-26  conducts either of the following activities:
   7-27                    (A)  Directs a shipment of off-specification used
    8-1  oil from their facility to a used oil burner; or
    8-2                    (B)  First claims that used oil that is to be
    8-3  burned for energy recovery meets the used oil specifications set
    8-4  forth in 40 CFR 279.11.
    8-5              (19)  "Used oil generator" means any person, by site,
    8-6  whose act or process produces used oil or whose act first causes
    8-7  used oil to become subject to regulation.
    8-8              (20)  "Used oil processor/re-refiner" means a facility
    8-9  that processes used oil.
   8-10              (21)  "Used oil transfer facility" means any
   8-11  transportation-related facility including loading docks, parking
   8-12  areas, storage areas, and other areas where shipments of used oil
   8-13  are held for more than 24 hours during the normal course of
   8-14  transportation and not longer than 35 days.  Transfer facilities
   8-15  that store used oil for more than 35 days are subject to regulation
   8-16  under 40 CFR Part 279 Subpart F.
   8-17              (22)  "Used oil transporter" means any person who
   8-18  transports used oil, any person who collects used oil from more
   8-19  than one generator and transports the collected oil, and owners and
   8-20  operators of used oil transfer facilities.  Used oil transporters
   8-21  may consolidate or aggregate loads of used oil for purposes of
   8-22  transportation but, with the following exception, may not process
   8-23  used oil.  Transporters may conduct incidental processing
   8-24  operations that occur in the normal course of used oil
   8-25  transportation (e.g., settling and water separation), but that are
   8-26  not designed to produce (or make more amenable for production of)
   8-27  used oil derived products or used oil fuel.
    9-1               SUBCHAPTER B.  USED OIL RECYCLING PROGRAM
    9-2        Sec. 371.021.  PUBLIC EDUCATION.  The <department> commission
    9-3  shall conduct an education program to inform the public of the need
    9-4  for and benefits of the collection and recycling of used oil and
    9-5  oil filters.  The program shall:
    9-6              (1)  establish, maintain, and publicize a used oil
    9-7  information center that prepares and disperses materials and
    9-8  information explaining laws and rules regulating used oil and
    9-9  informing the public of places and methods for proper recycling of
   9-10  used oil;
   9-11              (2)  encourage the voluntary establishment of used oil
   9-12  collection and recycling programs by private businesses and
   9-13  organizations and by local governments and provide technical
   9-14  assistance to persons who organize those programs; and
   9-15              (3)  encourage local governments to procure recycled
   9-16  automotive and industrial oils and oils blended with recycled oils,
   9-17  if those oils meet equipment manufacturer's specifications.
   9-18        Sec. 371.0211.  ADOPTION OF FEDERAL USED OIL MANAGEMENT
   9-19  STANDARDS.  The commission shall adopt by reference the federal
   9-20  used oil management standards found at 40 CFR 279 and the used oil
   9-21  filter rules found at 40 CFR 261.4(b)(13) no later than July 1,
   9-22  1995.  The adoption of the federal used oil management standards
   9-23  and oil filter standards shall satisfy the provisions of 42 U.S.C.
   9-24  Sec. 9614(c) not later than January 1, 2000.
   9-25        Sec. 371.022.  NOTICE BY RETAIL DEALER.  A retail dealer who
   9-26  annually sells directly to the public more than 500 gallons of oil
   9-27  in containers for use off-premises shall post in a prominent place
   10-1  a sign provided by the <department> commission informing the public
   10-2  that improper disposal of used oil is prohibited by law.  The sign
   10-3  shall also prominently display the toll-free telephone number of
   10-4  the state used oil information center established under Section
   10-5  371.021 and applicable regulatory information about oil filters.
   10-6        Sec. 371.023.  GRANTS TO LOCAL GOVERNMENTS AND PRIVATE
   10-7  ENTITIES.  (a)  The <department> commission shall develop a grant
   10-8  program for local governments and private entities that encourages
   10-9  the collection, reuse, and recycling of <DIY> household
  10-10  do-it-yourselfer used oil.
  10-11        (b)  A grant may be <made for any project> approved by the
  10-12  <department> commission<.  The department shall consider for grant
  10-13  assistance> for any <local government> project that uses one or
  10-14  more of the following programs:
  10-15              (1)  curbside pickup of containers of <DIY> household
  10-16  do-it-yourselfer used oil by a local government or its
  10-17  representative;
  10-18              (2)  retrofitting of municipal solid waste equipment to
  10-19  facilitate curbside pickup of <DIY> household do-it-yourselfer used
  10-20  oil;
  10-21              (3)  establishment of publicly operated þLDIYää
  10-22  do-it-yourselfer used oil collection centers at <landfills, fire
  10-23  stations, or other public places> locations accessible to the
  10-24  public such as: landfills, fire stations, retail stores, quick lube
  10-25  centers, auto repair shops, etc.;
  10-26              (4)  provision of containers and other materials and
  10-27  supplies that can be used to store   <DIY> household
   11-1  do-it-yourselfer used oil for pickup or delivery to a
   11-2  do-it-yourselfer used oil collection center in an environmentally
   11-3  sound manner; and
   11-4              (5)  any other activity the advisory committee
   11-5  established in Subsection (e) (þLdepartment) (commissionää determines
   11-6  will encourage the proper recycling of <DIY> household
   11-7  do-it-yourselfer used oil.
   11-8        (c)  The <board> commission by rule shall establish
   11-9  procedures for the application for and criteria for the award of
  11-10  grants <under> pursuant to this section.
  11-11        (d)  The commission shall only make grants directly to a
  11-12  do-it-yourselfer used oil collection center or a group of centers.
  11-13  Grants made to entities which redistribute funds to
  11-14  do-it-yourselfer used oil collection centers or other third parties
  11-15  are prohibited.
  11-16        (e)  The commission shall appoint an advisory committee for
  11-17  the used oil grant program.  The advisory committee shall consist
  11-18  of seven members who shall serve at the pleasure of the commission
  11-19  and shall represent oil manufacturers, used oil collectors and
  11-20  local governments.  The advisory committee shall recommend criteria
  11-21  for grant awards and shall recommend grant recipients to the
  11-22  commission based on the used oil collection needs of the state.
  11-23        Sec. 371.024.  COLLECTION FACILITIES.  (a)  All businesses
  11-24  <that change motor oil for the public> and <all appropriate>
  11-25  government agencies are encouraged to serve as public
  11-26  do-it-yourselfer used oil collection centers.
  11-27        (b)  A <public> do-it-yourselfer used oil collection center
   12-1  annually shall:
   12-2              (1)  register with the <department> commission; and
   12-3              (2)  report to the <department> commission the amounts
   12-4  of used oil collected by the center from the public.
   12-5        (c)  The <board> commission shall adopt rules governing the
   12-6  registration of and reporting by <public> do-it-yourselfer used oil
   12-7  collection centers.
   12-8        (d)  The <board> commission by rule shall adopt standards for
   12-9  managing and operating a <public> do-it-yourselfer used oil
  12-10  collection center.
  12-11        (e)  The <department> commission may impose a registration
  12-12  fee in an amount sufficient to cover the actual cost of registering
  12-13  <public> used oil collection centers.  Private entities which serve
  12-14  voluntarily as do-it-yourselfer used oil collection centers shall
  12-15  be exempt from such registration fee.
  12-16        Sec. 371.0245.  REIMBURSEMENT OF DO-IT-YOURSELFER USED OIL
  12-17  COLLECTION CENTER'S HAZARDOUS WASTE EXPENSE.  (a)  The commission,
  12-18  on proper application, shall reimburse the owner or operator of an
  12-19  eligible registered do-it-yourselfer used oil collection center for
  12-20  costs associated with the collection center's disposal of:
  12-21              (1)  household do-it-yourself (DIY) used oil collected
  12-22  by the collection center that, unknown to the center at the time of
  12-23  collection, contains hazardous wastes or is unfit for recycling;
  12-24              (2)  household do-it-yourselfer used oil collected by
  12-25  the collection center that has been commingled with DIY oils
  12-26  described in Subdivision (1) and is unsuitable for recycling; or
  12-27              (3)  contaminated used oil left at the collection
   13-1  center as used oil after posted business hours and without the
   13-2  knowledge of the collection center.
   13-3        (b)  A registered <public> do-it-yourselfer used oil
   13-4  collection center is eligible for reimbursement if it demonstrates
   13-5  to the satisfaction of the commission that:
   13-6              (1)  the center has established procedures to minimize
   13-7  the risk that the used oil which the center generates or collects
   13-8  from the public will not be mixed with hazardous wastes by the
   13-9  center, especially halogenated wastes;
  13-10              (2)  the center accepts not more than five gallons of
  13-11  used oil from any person at any one time; and
  13-12              (3)  the center can document to the satisfaction of the
  13-13  commission the volume of used oil the center collects from the
  13-14  public during <a> any period or length of time under review by:
  13-15                    (A)  providing a process by which all individuals
  13-16  leaving do-it-yourself (DIY) used oil at the center are required to
  13-17  <log> provide their names, addresses, and the approximate amounts
  13-18  of used oil brought to the collection center <and ensuring that all
  13-19  do-it-yourself (DIY) used oil collected is kept in a separate
  13-20  sealed and labeled container placed on an impermeable surface>; or
  13-21                    (B)  another method approved by the commission.
  13-22        (c)  For the purpose of Subsection (b)(2), the owner or
  13-23  operator of a registered <public> household do-it-yourselfer used
  13-24  oil collection center may presume that a quantity of not more than
  13-25  five gallons of used oil collected from a member of the public is
  13-26  not mixed with a hazardous substance, if the owner or operator acts
  13-27  in good faith <and> in <the> its belief that the oil is generated
   14-1  from the individual's personal activity.
   14-2        (d)  In any state fiscal year, a registered <public>
   14-3  household do-it-yourselfer used oil collection center may not be
   14-4  reimbursed for more than $5,000 in total eligible disposal costs as
   14-5  described herein, subject to Section 371.0246(d).
   14-6        (e)  All reimbursements made under this section <may> shall
   14-7  be paid out of the used oil recycling fund which shall not <to>
   14-8  exceed an aggregate amount of $500,000 each fiscal year.
   14-9        Sec. 371.0246.  PROCEDURES FOR REIMBURSEMENT.  (a)  An owner
  14-10  or operator of a registered <public> do-it-yourselfer used oil
  14-11  collection center may apply for reimbursement from the commission.
  14-12        (b)  An application for reimbursement shall be <filed>
  14-13  submitted on a form approved or provided by the commission.
  14-14        (c)  An application must contain:
  14-15              (1)  the name, address, and telephone number of the
  14-16  applicant;
  14-17              (2)  the name, mailing address, location address, and
  14-18  commission registration number of the registered <public>
  14-19  do-it-yourselfer used oil collection center from which the
  14-20  contaminated oil was removed;
  14-21              (3)  the name, address, telephone number, and
  14-22  commission registration number of the hazardous waste transporter
  14-23  used to dispose of the contaminated used oil;
  14-24              (4)  a copy of <the signed uniform hazardous waste
  14-25  manifest> any manifest or shipping documents that accompanied the
  14-26  transportation of the shipment of used oil;
  14-27              (5)  a copy of each invoice for which reimbursement is
   15-1  requested and evidence that the amount shown on the invoice has
   15-2  been paid in full, <which> and such evidence may be in the form of:
   15-3                    (A)  canceled checks;
   15-4                    (B)  business receipts from the person who
   15-5  performed the work; or
   15-6                    (C)  other documentation approved by the
   15-7  commission;
   15-8              (6)  a waste-characterization or similar documentation
   15-9  required before acceptance of a hazardous waste by the disposal
  15-10  facility that accepted the contaminated used oil for treatment
  15-11  and/or disposal; and
  15-12              (7)  any other information that the executive director
  15-13  may reasonably require.
  15-14        (d)  All claims for reimbursement filed under this section
  15-15  and Section 371.0245 are subject to the availability of <money>
  15-16  disburseable funds in the used oil recycling fund, and to Section
  15-17  371.0245(e).  This subchapter <does> shall not create an
  15-18  entitlement to money in the used oil recycling fund or any other
  15-19  fund.
  15-20        <Sec. 371.025.  ><Limitation of Liability>
  15-21        <(a)  A person may not recover from the owner, operator, or
  15-22  lessor of a registered public used oil collection center any
  15-23  damages or costs of response actions at another location resulting
  15-24  from a release or threatened release of used oil collected at the
  15-25  center if:>
  15-26              <(1)  the owner, operator, or lessor of the collection
  15-27  center does not mix the used oil collected with any hazardous waste
   16-1  or polychlorinated biphenyls (PCBs);>
   16-2              <(2)  the owner, operator, or lessor of the collection
   16-3  center does not accept used oil that the owner, operator, or lessor
   16-4  knows contains hazardous waste or PCBs; and>
   16-5              <(3)  the collection center is in compliance with
   16-6  management standards adopted by the department.>
   16-7        <(b)  For purposes of this section, the owner, operator, or
   16-8  lessor of a public used oil collection center may presume that a
   16-9  quantity of less than five gallons of used oil accepted at any one
  16-10  time from any member of the public is not mixed with a hazardous
  16-11  waste or PCBs, provided that the owner, operator, or lessor acts in
  16-12  good faith.>
  16-13        <(c)  This section applies only to activities directly
  16-14  related to the collection of used oil by a public used oil
  16-15  collection center.  This section does not apply to grossly
  16-16  negligent activities related to the operation of a used oil
  16-17  collection center.>
  16-18        <(d)  This section does not affect or modify the obligations
  16-19  or liability of any person other than the owner, operator, or
  16-20  lessor of the collection center under any other provisions of state
  16-21  or federal law, including common law, for injury or damage
  16-22  resulting from a release of used oil or hazardous substances.>
  16-23        <(e)  This section does not affect or modify the obligations
  16-24  or liability of any owner, operator, or lessor of a collection
  16-25  center with regard to services other than accepting used oil from
  16-26  the public.>
  16-27        Sec. 371.026.  Registration of Persons Transporting,
   17-1  Marketing, or Recycling Used Oil.  <(a)  A person who transports
   17-2  over public highways of this state more than 500 gallons of used
   17-3  oil annually, who markets more than 500 gallons of used oil
   17-4  annually, or who recycles more than 10,000 gallons of used oil
   17-5  annually shall register annually with the department on forms
   17-6  prescribed by the department and in accordance with board rules.>
   17-7        <(b)  The department shall develop a registration program for
   17-8  transporters, marketers, and recyclers of used oil.>
   17-9        <(c)> (a)  The <board> commission shall adopt rules governing
  17-10  registration and reporting of used oil transporters, marketers, and
  17-11  recyclers.  The rules shall require that a used oil transporter,
  17-12  marketer, or recycler:
  17-13              (1)  register annually with the <department>
  17-14  commission;
  17-15              (2)  report annually the sources of used oil
  17-16  transported, marketed, or recycled during the preceding year, the
  17-17  quantity of used oil received, the date of receipt, and the
  17-18  destination or end use of the used oil;
  17-19              (3)  provide evidence of familiarity with applicable
  17-20  state laws and rules and management procedures applicable to used
  17-21  oil transportation, marketing, or recycling; and
  17-22              (4)  provide proof of liability insurance or other
  17-23  evidence of financial responsibility for any liability that may be
  17-24  incurred in transporting, marketing, or recycling used oil.
  17-25        <(d)> (b)  The <board> commission by rule shall adopt
  17-26  reasonable management and safety standards for the transportation,
  17-27  marketing, and recycling of used oil.
   18-1        <(e)> (c)  The <department> commission may impose a
   18-2  registration fee in an amount sufficient to cover the actual cost
   18-3  of registering used oil transporters, marketers, and recyclers.
   18-4        <(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 department may apply
  18-10  for, request, solicit, contract for, receive, and accept gifts,
  18-11  grants, donations, and other assistance from any source to carry
  18-12  out its powers and duties under this chapter.
  18-13        Sec. 371.028.  Rules.  <The board may adopt any rules
  18-14  necessary to carry out the purposes of this chapter.>  Not later
  18-15  than July 1, 1995, the Texas Natural Resources Conservation
  18-16  Commission shall adopt rules, standards, and procedures necessary
  18-17  to implement the used oil recycling program established by Chapter
  18-18  371, Health and Safety Code, subject to Section 371._____ herein.
  18-19         SUBCHAPTER C.  CERTAIN ACTIONS PROHIBITED; PENALTIES
  18-20        Sec. 371.041.  Actions Prohibited.  (a)  A person may not
  18-21  collect, transport, store, recycle, use, discharge, or dispose of
  18-22  used oil in any manner that endangers the public health or welfare
  18-23  or endangers or damages the environment.
  18-24        (b)  A person commits an offense if the person:
  18-25              (1)  intentionally discharges used oil into a sewer,
  18-26  drainage system, septic tank, surface water or groundwater,
  18-27  watercourse, or marine water;
   19-1              (2)  knowingly mixes or commingles used oil with
   19-2  <solid> waste that is to be disposed of in landfills <or directly
   19-3  disposes of used oil on land or in landfills>;
   19-4              <(3)  intentionally mixes or commingles used oil with
   19-5  hazardous waste or other hazardous substances or PCBs;>
   19-6              <(4)> (3)  transports, markets, or recycles used oil
   19-7  within the state without first complying with the registration
   19-8  requirements of Section 371.026 and rules adopted under that
   19-9  section;
  19-10              <(5)> (4)  intentionally applies used oil to roads or
  19-11  land for dust suppression, weed abatement, or other similar uses
  19-12  that introduce used oil into the environment; or
  19-13              <(6)> (5)  violates an order of the <department>
  19-14  commission to cease and desist any activity prohibited by this
  19-15  section or any rule applicable to a prohibited activity.
  19-16        (c)  It is an exception to the application of Subsection (b)
  19-17  if a person unknowingly disposes into <a landfill> the environment
  19-18  any used oil that has not been properly segregated or separated by
  19-19  the generator from other solid wastes.
  19-20        (d)  It is an exception to the application of Subsection
  19-21  (b)(2) if the mixing or commingling of used oil with <solid> waste
  19-22  that is to be disposed of in landfills is incident to and the
  19-23  unavoidable result of the mechanical shredding of motor vehicles,
  19-24  appliances, or other items of scrap, used, or obsolete metals.
  19-25        (e)  After January 1, 2000, it is an exception to the
  19-26  application of subsection (b)(2) if the mixing or commingling of
  19-27  used oil with solid waste is the result of an oil change which
   20-1  results in the generation of a used oil filter as described at 40
   20-2  CFR 261.4(b)(13).
   20-3        Sec. 371.042.  Criminal Penalties.  (a)  Except as provided
   20-4  by Subsection (b), an offense under Section 371.041 is a Class C
   20-5  misdemeanor.
   20-6        (b)  If it is shown on the trial of an offense under Section
   20-7  371.041 that the defendant has previously been convicted of an
   20-8  offense under Section 371.041, the offense is a Class A
   20-9  misdemeanor.
  20-10        Sec. 371.043.  Civil Penalty.  (a)  Except as provided by
  20-11  Subsection (c), a person who violates this chapter or a rule or
  20-12  order adopted under this chapter is liable for a civil penalty of
  20-13  not less than $100 or more than $500 for each act of violation and
  20-14  for each day of violation.
  20-15        (b)  A civil penalty recovered in a suit brought by a local
  20-16  government under this section shall be divided equally between the
  20-17  state and the local government that brought the suit.  The state
  20-18  shall deposit its recovery to the credit of the used oil recycling
  20-19  fund.
  20-20        (c)  The penalty imposed by this section does not apply to
  20-21  failure to pay a fee under Section 371.062 or failure to file a
  20-22  report under Section 371.024 or 371.026.
  20-23        (d)  The <department> commission, a local government in whose
  20-24  jurisdiction the violation occurs, or the state may bring suit to
  20-25  recover a penalty under this section.
  20-26        Sec. 371.044.  Injunctive Relief.  (a)  If it appears that a
  20-27  violation or threat of violation of this chapter or any rule or
   21-1  order adopted under this chapter has occurred or is about to occur
   21-2  and is causing or may cause immediate injury or constitutes a
   21-3  significant threat to the health, welfare, or personal property of
   21-4  a citizen or a local government, the department, to local
   21-5  government, or the state may bring suit in district court for
   21-6  injunctive relief to restrain the violation or the threat of
   21-7  violation.
   21-8        (b)  In a suit for injunctive relief, the court may grant any
   21-9  injunctive or mandatory relief warranted by the facts, including a
  21-10  temporary restraining order, a temporary injunction, or a permanent
  21-11  injunction.  Injunctive relief shall be granted without the
  21-12  requirement for a bond or other undertaking by any governmental
  21-13  entity seeking the injunction.
  21-14        Sec. 371.045.  Venue.  A suit for injunctive relief, for
  21-15  recovery of a civil penalty, or both, may be brought in:
  21-16              (1)  the county in which the defendant resides;
  21-17              (2)  the county in which the violation or threat of
  21-18  violation occurs; or
  21-19              (3)  Travis County.
  21-20             SUBCHAPTER D.  USED OIL RECYCLING FUND; FEES
  21-21        Sec. 371.061.  Used Oil Recycling Fund.  (a)  The used oil
  21-22  recycling fund is in the state treasury.
  21-23        (b)  The fund consists of:
  21-24              (1)  fees collected under Sections 371.024, 371.026,
  21-25  and 371.062;
  21-26              (2)  interest and penalties imposed under this chapter
  21-27  for late payment of fees, failure to file a report, or other
   22-1  violations of this chapter; and
   22-2              (3)  gifts, grants, donations, or other financial
   22-3  assistance the <department> commission is authorized to receive
   22-4  under Section 371.027.
   22-5        (c)  Except as provided by Subsection (d), the <department>
   22-6  commission may use money in the fund only for purposes authorized
   22-7  by this chapter, including:
   22-8              (1)  public education;
   22-9              (2)  grants to public and private do-it-yourselfer used
  22-10  oil collection centers;
  22-11              (3)  registration of do-it-yourselfer used oil
  22-12  collection centers, used oil transporters, used oil marketers, and
  22-13  used oil recyclers; and
  22-14              (4)  administrative costs of implementing this chapter
  22-15  not to exceed six percent of the fund balance in any fiscal year.
  22-16        (d)  The <department> commission shall transfer 25 percent of
  22-17  the fees collected under Section 371.062 to the <Texas Water
  22-18  Commission> ___________________ for the sole purpose of restoring
  22-19  the environmental quality of those sites in the state that the
  22-20  commission has identified as having been contaminated through
  22-21  improper used oil management and for which other funds from a
  22-22  potentially responsible party or the federal government are not
  22-23  sufficient.  This subsection expires on January 1, 1998.
  22-24        (e)  The fund is exempt from the application of Sections
  22-25  403.094(h) and 403.095<,> of the Government Code.
  22-26        Sec. 371.062.  Fee on Sale of Automotive Oil.  (a)  In this
  22-27  section:
   23-1              (1)  "First sale" means the first actual sale of
   23-2  automotive oil delivered to a location in this state and sold to a
   23-3  purchaser who is not an automotive oil manufacturer.  The term does
   23-4  not include the sale of automotive oil exported from this state to
   23-5  a location outside this state for the purpose of sale or use
   23-6  outside this state.  This term does not include sales of automotive
   23-7  oils for resale to or use by vessels exclusively engaged in foreign
   23-8  or interstate commerce.  The term also does not include the sales
   23-9  of automotive oil to any subsequent purchaser who maintains a
  23-10  do-it-yourselfer used oil collection center registered by the
  23-11  commission at the location where the automotive oil is changed,
  23-12  used, consumed or resold to do-it-yourselfers.  The term does not
  23-13  include the sales of automotive oil to the United States government
  23-14  or its instrumentalities.  The term does not include the sales of
  23-15  automotive oil to a permitted distributor.
  23-16              (2)  "Importer" means any person who imports or causes
  23-17  to be imported automotive oil into this state for sale, use, or
  23-18  consumption.
  23-19              (3)  "Oil manufacturer" means any person or entity that
  23-20  formulates automotive oil and packages, distributes, or sells that
  23-21  automotive oil.  The term includes any person packaging or
  23-22  repackaging automotive oil.
  23-23              (4)  "Permitted distributor" means a distributor who
  23-24  maintains a distribution center or warehouse in this state and
  23-25  exports from this state to a location outside this state more than
  23-26  25,000 gallons of automotive oil on an annual basis.
  23-27                    (A)  A permitted distributor shall file an
   24-1  application with the comptroller for a nonassignable permit
   24-2  provided for in this section.
   24-3                    (B)  The comptroller shall promulgate the
   24-4  application form, which must contain the following information:
   24-5                          (i)  the name under which the applicant
   24-6  transacts or intends to transact business;
   24-7                          (ii)  the location of distribution
   24-8  center(s) or warehouse(s) in Texas of the applicant;
   24-9                          (iii)  if the applicant is not an
  24-10  individual, the names of the principal officers of an applicant
  24-11  corporation, or the names of the members of an applicant
  24-12  partnership, and the office, street, or post office addresses of
  24-13  each; and
  24-14                          (iv)  other information required by the
  24-15  comptroller.
  24-16                    (C)  The comptroller may deny or revoke a permit
  24-17  if false information is submitted on the application or on a
  24-18  required fuels tax report or supplement.
  24-19        (b)  An oil manufacturer or permitted distributor who makes a
  24-20  first sale of automotive oil is liable for a fee.
  24-21        (c)  An oil importer who imports or causes to be imported
  24-22  automotive oil is liable for the fee at the time the oil is
  24-23  received.
  24-24        (d)  An oil distributor or retailer who exports from this
  24-25  state to a location outside this state oil on which the automotive
  24-26  oil fee has been paid may request from his supplier a refund or
  24-27  credit of the fee paid on the exported oil.  The supplier or oil
   25-1  manufacturer and the importer may in turn request a refund of the
   25-2  fee paid to the comptroller.  The amount of refund that may be
   25-3  claimed under this section may equal but not exceed the amount of
   25-4  the fee paid on the automotive oil.
   25-5        (e)  An oil manufacturer, importer, distributor, or retailer
   25-6  who makes a sale to a vessel or a sale for resale to a vessel of
   25-7  automotive oil on which the automotive oil fee has been paid may
   25-8  file with the comptroller a request for refund of the fee paid on
   25-9  the oil or, where applicable, may request a refund or credit from
  25-10  the supplier to whom the fee was paid.  The supplier may in turn
  25-11  request a refund from the comptroller.  The amount of refund that
  25-12  may be claimed under this section may equal but not exceed the
  25-13  amount of the fee paid on the automotive oil.
  25-14        (f)  Each oil manufacturer, permitted distributor  or
  25-15  importer required to pay a fee under this section shall:
  25-16              (1)  prepare and maintain, on a form provided or
  25-17  approved by the comptroller, a report of each first sale or, in the
  25-18  case of an importer, the first receipt in Texas of automotive oil
  25-19  by the person and the price received;
  25-20              (2)  retain the invoice or a copy of the invoice or
  25-21  other appropriate record of the sale or receipt for four years from
  25-22  the date of sale or receipt; and
  25-23              (3)  on or before the 25th day of the month following
  25-24  the end of each calendar quarter, file a report with the
  25-25  comptroller and remit to the comptroller the amount of fees
  25-26  required to be paid for the preceding quarter.
  25-27        (g)  Records required to be maintained under Subsection (f)
   26-1  shall be available for inspection by the comptroller at all
   26-2  reasonable times.
   26-3        (h)  The comptroller shall adopt rules necessary for the
   26-4  administration, collection, reporting, and payment of the fees
   26-5  payable or collected under this section.
   26-6        (i)  Except as provided by this section, Chapters 101 and 111
   26-7  through 113, Tax Code, apply to the administration, payment,
   26-8  collection, and enforcement of fees under this section in the same
   26-9  manner that those chapters apply to the administration, payment,
  26-10  collection, and enforcement of taxes under Title 2, Tax Code.
  26-11        (j)  The fee imposed under this section is  <two> one cent<s>
  26-12  per quart or <eight> four cents per gallon of automotive oil.  <The
  26-13  department shall monitor the unobligated balance of the used oil
  26-14  recycling fund and shall adjust the fee rate to meet expenditure
  26-15  requirements of the used oil recycling program and to maintain an
  26-16  appropriate fund balance.  The fee imposed under this section may
  26-17  not exceed five cents per quart or 20 cents per gallon of
  26-18  automotive oil.  On or before September 1 of each year, the
  26-19  department commission and the comptroller jointly shall issue
  26-20  notice of the effective fee rate for the next fiscal year.>
  26-21        (k)  A person required to pay a fee under this section may
  26-22  retain one percent of the amount of the fees due from each
  26-23  quarterly payment as reimbursement for administrative costs.
  26-24        (l)  The comptroller may deduct a percentage of the fees
  26-25  collected under this section in an amount sufficient to pay the
  26-26  reasonable and necessary costs of administering and enforcing this
  26-27  section.  The comptroller shall credit the amount deducted to the
   27-1  general revenue fund.   The balance of fees and all penalties and
   27-2  interest collected under this section shall be deposited to the
   27-3  credit of the used oil recycling fund.
   27-4        (m)  The automotive oil fee established under this section
   27-5  shall expire on January 1, 2000.
   27-6        Sec. 371.061.  ANNUAL REPORTING REQUIREMENT.  The commission
   27-7  shall monitor the balance of the used oil recycling fund and shall
   27-8  provide a detailed report of all income, expenditures, and programs
   27-9  funded to the Texas Legislature on an annual basis.
  27-10        SECTION 2.  This Act takes effect September 1, 1995.  The
  27-11  change in the fee imposed under Section 371.060(k), Health and
  27-12  Safety Code, as amended by this Act, applies beginning January 1,
  27-13  1996.  Fees collected before that date are governed by the prior
  27-14  law, which is continued in effect for that purpose.
  27-15        SECTION 3.  The importance of this legislation and the
  27-16  crowded condition of the calendars in both houses create an
  27-17  emergency and an imperative public necessity that the
  27-18  constitutional rule requiring bills to be read on three several
  27-19  days in each house be suspended, and this rule is hereby suspended,
  27-20  and that this Act take effect and be in force from and after its
  27-21  passage, and it is so enacted.