By Sims                                               S.B. No. 1501
       74R8314 MI-D
                                 A BILL TO BE ENTITLED
    1-1                                AN ACT
    1-2  relating to the regulation of petroleum storage tanks.
    1-3        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-4        SECTION 1.  Section 26.341(b), Water Code, is amended to read
    1-5  as follows:
    1-6        (b)  The legislature declares that it is the policy of this
    1-7  state and the purpose of this subchapter to:
    1-8              (1)  maintain and protect the quality of groundwater
    1-9  and surface water resources in the state from certain substances in
   1-10  underground and aboveground storage tanks that may pollute
   1-11  groundwater and surface water resources; and
   1-12              (2)  require the use of all reasonable methods,
   1-13  including risk-based corrective action, to implement this policy.
   1-14        SECTION 2.  Section 26.342, Water Code, is amended by adding
   1-15  a new Subdivision (13) and renumbering subsequent subdivisions to
   1-16  read as follows:
   1-17              (13)  "Risk-based corrective action" means site
   1-18  assessment or site remediation, the timing, type, and degree of
   1-19  which is determined according to case-by-case consideration of
   1-20  actual or potential risk to public health from environmental
   1-21  exposure to a regulated substance released from a leaking petroleum
   1-22  storage tank.
   1-23              (14)  "Spent oil" means a regulated substance that is a
   1-24  lubricating oil or similar petroleum substance which has been
    2-1  refined from crude oil, used for its designed or intended purposes,
    2-2  and contaminated as a result of that use by physical or chemical
    2-3  impurities, including spent motor vehicle lubricating oils,
    2-4  transmission fluid, or brake fluid.
    2-5              (15) <(14)>  "Underground storage tank" means any one
    2-6  or combination of underground tanks and any connecting underground
    2-7  pipes used to contain an accumulation of regulated substances, the
    2-8  volume of which, including the volume of the connecting underground
    2-9  pipes, is 10 percent or more beneath the surface of the ground.
   2-10              (16) <(15)>  "Vehicle service and fueling facility"
   2-11  means a facility where motor vehicles are serviced or repaired and
   2-12  where petroleum products are stored and dispensed from fixed
   2-13  equipment into the fuel tanks of motor vehicles.
   2-14        SECTION 3.  Subchapter I, Chapter 26, Water Code, is amended
   2-15  by adding Section 26.3475 to read as follows:
   2-16        Sec. 26.3475.  RELEASE DETECTION REQUIREMENTS; SPILL AND
   2-17  OVERFILL PREVENTION; CATHODIC PROTECTION; NOTICE OF VIOLATION;
   2-18  SHUTDOWN.  (a)  All piping in an underground storage tank system
   2-19  that routinely conveys regulated substances under pressure must
   2-20  comply with commission requirements for installing pressurized
   2-21  piping release detection equipment.
   2-22        (b)  All piping in an underground storage tank system that
   2-23  routinely conveys regulated substances under suction must comply
   2-24  with commission requirements for installing suction-type piping
   2-25  release detection equipment.
   2-26        (c)  A tank in an underground storage tank system must comply
   2-27  with commission requirements for installing:
    3-1              (1)  tank release detection equipment; and
    3-2              (2)  spill and overfill equipment.
    3-3        (d)  An underground storage tank system must comply with
    3-4  commission requirements for applicable tank integrity assessment
    3-5  and cathodic protection not later than December 22, 1998.
    3-6        (e)  The commission may issue a notice of violation to the
    3-7  owner or operator of an underground storage tank system that does
    3-8  not comply with this section, informing the owner or operator of
    3-9  the nature of the violation and that the commission may order the
   3-10  noncomplying equipment placed out of service if the owner or
   3-11  operator does not correct the violation within 30 days after the
   3-12  date the notice is received.  If the owner or operator does not
   3-13  correct the violation within the prescribed time, the commission
   3-14  may order the noncomplying equipment out of service.
   3-15        SECTION 4.  Section 26.3514, Water Code, is amended by adding
   3-16  Subsections (f), (g), (h), and (i) to read as follows:
   3-17        (f)  A lender described by Subsection (a) is not liable as an
   3-18  owner or operator under this subchapter because the lender sells,
   3-19  re-leases, liquidates, or winds up operations and takes measures to
   3-20  preserve, protect, or prepare the secured aboveground or
   3-21  underground storage tank before sale or other disposition of the
   3-22  storage tank or the property if the lender:
   3-23              (1)  did not participate in the management of an
   3-24  aboveground or underground storage tank or real or personal
   3-25  property described by Subsection (a) before foreclosure or its
   3-26  equivalent on the storage tank or the property; and
   3-27              (2)  establishes, as provided by Subsection (g), that
    4-1  the ownership indicia maintained after foreclosure continue to be
    4-2  held primarily to protect a security interest.
    4-3        (g)  A lender may establish that the ownership indicia
    4-4  maintained after foreclosure continue to be held primarily to
    4-5  protect a security interest if, within 12 months after foreclosure,
    4-6  the lender:
    4-7              (1)  lists the aboveground or underground storage tank,
    4-8  or the facility or property on which the tank is located, with a
    4-9  broker, dealer, or agent who deals in that type of property; or
   4-10              (2)  advertises the aboveground or underground storage
   4-11  tank for sale or other disposition, at least monthly, in:
   4-12                    (A)  a real estate publication;
   4-13                    (B)  a trade or other publication appropriate for
   4-14  the aboveground or underground storage tank being advertised; or
   4-15                    (C)  a newspaper of general circulation in the
   4-16  area in which the aboveground or underground storage tank is
   4-17  located.
   4-18        (h)  For purposes of Subsection (g), the 12-month period
   4-19  begins:
   4-20              (1)  when the lender acquires marketable title, if the
   4-21  lender, after the expiration of any redemption period or other
   4-22  waiting period required by law, was acting diligently to acquire
   4-23  marketable title; or
   4-24              (2)  on the date of foreclosure or its equivalent, if
   4-25  the lender does not act diligently to acquire marketable title.
   4-26        (i)  If a lender outbids, rejects, or does not act on an
   4-27  offer of fair consideration for the aboveground or underground
    5-1  storage tank or the facility or property on which the storage tank
    5-2  is located, it is presumed that the lender is not holding the
    5-3  ownership indicia primarily to protect the security interest unless
    5-4  the lender is required, in order to avoid liability under federal
    5-5  or state law, to make the higher bid, obtain the higher offer, or
    5-6  seek or obtain an offer in a different manner.
    5-7        SECTION 5.  Section 26.3572(b), Water Code, is amended to
    5-8  read as follows:
    5-9        (b)  In administering the program, the commission shall:
   5-10              (1)  negotiate with or direct responsible parties in
   5-11  site assessment and remediation matters using risk-based corrective
   5-12  action;
   5-13              (2)  approve site-specific corrective action plans for
   5-14  each site as necessary, using risk-based corrective action;
   5-15              (3)  review and inspect site assessment and remedial
   5-16  activities and reports; <and>
   5-17              (4)  use risk-based corrective action procedures as
   5-18  determined by commission rule to establish cleanup levels;
   5-19              (5)  adopt by rule criteria for assigning a priority to
   5-20  each site and assign a priority to each site according to those
   5-21  criteria;
   5-22              (6)  adopt by rule criteria for:
   5-23                    (A)  risk-based corrective action site closures;
   5-24  and
   5-25                    (B)  the issuance of a closure letter to the
   5-26  owner or operator of a tank site on completion of the commission's
   5-27  requirements for remediation; and
    6-1              (7)  process claims for petroleum storage tank
    6-2  remediation fund disbursement.
    6-3        SECTION 6.  Section 26.35735, Water Code, is amended by
    6-4  adding Subsections (e) and (f) to read as follows:
    6-5        (e)  The commission may audit a claim for payment as required
    6-6  by this section only:
    6-7              (1)  under guidelines adopted by commission rule that
    6-8  relate to conducting an audit under this section and denying a
    6-9  claim as a result of that audit and that are in effect when the
   6-10  audit is conducted; or
   6-11              (2)  in a case of suspected fraud.
   6-12        (f)  Not later than the 90th day after an audit under this
   6-13  section has been completed, the commission shall send a copy of the
   6-14  audit to the person whose claim for payment is the subject of the
   6-15  audit.
   6-16        SECTION 7.  This Act takes effect September 1, 1995.
   6-17        SECTION 8.  The importance of this legislation and the
   6-18  crowded condition of the calendars in both houses create an
   6-19  emergency and an imperative public necessity that the
   6-20  constitutional rule requiring bills to be read on three several
   6-21  days in each house be suspended, and this rule is hereby suspended.