By:  Nixon, Madla                                     S.B. No. 1683
                                 A BILL TO BE ENTITLED
                                        AN ACT
    1-1  relating to the collection, management, and recycling of used oil
    1-2  and used oil filters; providing penalties.
    1-3        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-4        SECTION 1.  Section 371.001, Health and Safety Code, is
    1-5  amended to read as follows:
    1-6        Sec. 371.001.  SHORT TITLE.  This chapter may be cited as the
    1-7  Texas Used Oil Collection, Management, and Recycling Act.
    1-8        SECTION 2.  Section 371.002, Health and Safety Code, is
    1-9  amended to read as follows:
   1-10        Sec. 371.002.  FINDINGS.  The legislature finds that:
   1-11              (1)  when properly managed and recycled, used oil is a
   1-12  valuable energy resource<, the reuse of which may make a
   1-13  significant contribution toward energy efficiency and
   1-14  conservation>;
   1-15              (2)  used oil can be recycled into a number of
   1-16  different products;
   1-17              (3)  improper disposal of used oil is a significant
   1-18  environmental problem and a waste of a potentially valuable energy
   1-19  resource;
   1-20              (4)  there is a need for an expanded statewide network
   1-21  of used oil collection sites for private citizens who change their
   1-22  own motor oil;
   1-23              (5)  the private sector, with incentives, is best
   1-24  equipped to establish and operate used oil collection centers that
    2-1  are convenient for the public;
    2-2              (6)  the need for publicly operated used oil collection
    2-3  centers should diminish over time, and the need for publicly
    2-4  operated used oil collection centers is greatest in more sparsely
    2-5  populated areas of the state;
    2-6              (7)  the United States Environmental Protection Agency
    2-7  has issued final regulations that properly classify and regulate
    2-8  used oil and used oil filters in accordance with the Resource
    2-9  Conservation and Recovery Act of 1976 (42 U.S.C. Section 6901 et
   2-10  seq.);
   2-11              (8)  the current used oil and used oil filter program
   2-12  in this state imposes more stringent management requirements than
   2-13  the regulations of the United States Environmental Protection
   2-14  Agency;
   2-15              (9)  limited public money is needed to finance public
   2-16  and private infrastructure investments to collect, manage, and
   2-17  recycle used motor oil; and
   2-18              (10)  the used oil management standards in 40 C.F.R.
   2-19  Part 279 establish a balanced approach to the objectives of
   2-20  preserving a valuable resource and protecting the natural
   2-21  environment <recycling used oil to produce fuel requires
   2-22  significantly less energy than is needed to refine crude oil into
   2-23  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.  (a)  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 and no more stringent than the federal program for
   3-18  the management of used oil under 40 C.F.R. Part 279 unless
   3-19  otherwise required by state or federal law; and
   3-20              (2)  establish a program to promote public and private
   3-21  used oil and do-it-yourselfer used oil collection centers.
   3-22        (b)  This chapter does not apply to used oil:
   3-23              (1)  generated in connection with activities regulated
   3-24  by the Railroad Commission of Texas under Chapter 91 or 141,
   3-25  Natural Resources Code, or Chapter 27, Water Code;
   3-26              (2)  exempted under 40 C.F.R. Section 279.10(g) by
   3-27  reason of having been introduced into crude oil pipelines or being
    4-1  processed at a petroleum refining facility; or
    4-2              (3)  generated through other activities exempted under
    4-3  40 C.F.R. Parts 271 and 279.
    4-4        (c)  This chapter does not apply to a used oil filter
    4-5  generated in connection with activities regulated by the Railroad
    4-6  Commission of Texas under Chapter 91 or 141, Natural Resources
    4-7  Code, or Chapter 27, Water Code.
    4-8        SECTION 4.  Section 371.003, Health and Safety Code, is
    4-9  amended to read as follows:
   4-10        Sec. 371.003.  DEFINITIONS.  In this chapter:
   4-11              (1)  "Aboveground tank" means a tank used to store or
   4-12  process used oil that is not an underground storage tank as defined
   4-13  by 40 C.F.R. Section 280.12.
   4-14              (2)  "Automotive oil" means any lubricating oils
   4-15  intended for use in an internal combustion engine, crankcase,
   4-16  transmission, gear box, or differential for an automobile, bus, or
   4-17  truck.  The term includes oil that is not labeled specifically for
   4-18  that use but is suitable for that use according to generally
   4-19  accepted industry specifications.
   4-20              (3)  "Commission" <(2)  "Board" means the Texas Natural
   4-21  Resource Conservation Commission.>
   4-22              <(3)  "Department"> means the Texas Natural Resource
   4-23  Conservation Commission.
   4-24              (4)  "Container" means a portable device in which a
   4-25  material is stored, transported, treated, disposed of, or otherwise
   4-26  handled.
   4-27              (5)  "Do-it-yourselfer used oil collection center"
    5-1  means a site or facility that accepts or aggregates and stores used
    5-2  oil collected only from household do-it-yourselfers.
    5-3              (6)  "Existing tank" means a tank that is used for the
    5-4  storage or processing of used oil and that as of September 1, 1995,
    5-5  is in operation or is being installed.  A tank is being installed
    5-6  if the owner or operator has obtained all necessary federal, state,
    5-7  and local approvals or permits and:
    5-8                    (A)  a continuous on-site installation program
    5-9  has begun; or
   5-10                    (B)  the owner or operator has entered into
   5-11  contractual obligations for installation of the tank to be
   5-12  completed within a reasonable time and the obligations cannot be
   5-13  cancelled or modified without substantial loss.
   5-14              (7)  "Household do-it-yourselfer <(4)  "Do-it-yourself>
   5-15  (DIY) used oil" means <used> oil that is derived from a household,
   5-16  including used oil generated by an individual through the
   5-17  maintenance of the individual's personal vehicle or equipment
   5-18  <generated by a person who changes the person's own automotive
   5-19  oil>.
   5-20              (8)  "Household do-it-yourselfer used oil generator"
   5-21  means an individual who generates household do-it-yourselfer
   5-22  <(5)  "Generator" means a person whose act or process produces>
   5-23  used oil.
   5-24              (9)  "New tank" means a tank for the storage or
   5-25  processing of used oil the construction of which begins on or after
   5-26  September 1, 1995.
   5-27              (10)  "Petroleum refining facility" means an
    6-1  establishment primarily engaged in producing gasoline, kerosene,
    6-2  distillate fuel oils, residual fuel oils, and lubricants through
    6-3  fractionation, straight distillation of crude oil, redistillation
    6-4  of unfinished petroleum derivatives, cracking, or other processes.
    6-5              (11)  "Processing" means chemical or physical
    6-6  operations designed to produce from used oil, or to make used oil
    6-7  more amenable for production of, fuel oils, lubricants, or other
    6-8  used-oil-derived products, including blending used oil with virgin
    6-9  petroleum products, blending used oils to meet fuel specifications,
   6-10  filtration, simple distillation, chemical or physical separation,
   6-11  and rerefining <(6)  "Public used oil collection center" means:>
   6-12                    <(A)  an automotive service facility that in the
   6-13  course of business accepts for recycling small quantities of used
   6-14  oil from private citizens;>
   6-15                    <(B)  a facility that stores used oil in
   6-16  aboveground tanks and in the course of business accepts for
   6-17  recycling small quantities of used oil from private citizens; and>
   6-18                    <(C)  a publicly sponsored collection facility
   6-19  that is designated and authorized by the department to accept for
   6-20  recycling small quantities of used oil from private citizens>.
   6-21              (12) <(7)>  "Reclaiming" means processing material to
   6-22  recover a usable product or regenerating material, including
   6-23  recovering lead from a spent battery and regenerating spent
   6-24  solvents <using methods, other than rerefining, to remove insoluble
   6-25  impurities from used oil and making the used oil suitable for
   6-26  further use as a lubricant or petroleum product.  The term includes
   6-27  settling, heating, dehydration, filtration, or centrifuging>.
    7-1              (13) <(8)>  "Recycling" means:
    7-2                    (A)  preparing used oil for reuse as a petroleum
    7-3  product by rerefining, reclaiming, or other means; <or>
    7-4                    (B)  using used oil as a lubricant or petroleum
    7-5  product instead of using a petroleum product made from new oil; or
    7-6                    (C)  burning used oil for energy recovery.
    7-7              (14) <(9)>  "Rerefining" means applying <refining>
    7-8  processes to material composed primarily of used oil to produce
    7-9  high-quality base stocks for lubricants or other petroleum
   7-10  products, including settling, filtering, catalytic conversion,
   7-11  fractional/vacuum distillation, hydrotreating, or polishing.
   7-12              (15)  "Rerefining distillation bottoms" means the heavy
   7-13  fraction of filtered and dehydrated used oil produced by vacuum
   7-14  distillation.  The composition of still bottoms varies with column
   7-15  operation and feedstock.
   7-16              (16)  "Tank" means a stationary device designed to
   7-17  contain an accumulation of used oil that is constructed primarily
   7-18  of nonearthen materials that provide structural support, including
   7-19  wood, concrete, steel, and plastic.
   7-20              (17) <(10)>  "Used oil" means <any> oil that has been
   7-21  refined from crude oil, or <a> synthetic oil, that as a result of
   7-22  use has been contaminated by physical or chemical impurities<, as a
   7-23  result of use, storage, or handling, has become unsuitable for its
   7-24  original purpose because of impurities or the loss of original
   7-25  properties, but that may be suitable for further use and is
   7-26  recyclable>.
   7-27              (18)  "Used oil aggregation point" means a site or
    8-1  facility that accepts, aggregates, or stores used oil collected
    8-2  from:
    8-3                    (A)  used oil generation sites owned or operated
    8-4  by the owner or operator of the used oil aggregation point and
    8-5  transported to the used oil aggregation point in shipments of not
    8-6  more than 55 gallons; or
    8-7                    (B)  household do-it-yourselfers.
    8-8              (19)  "Used oil burner" means a facility in which used
    8-9  oil not meeting the specifications in 40 C.F.R. Section 279.11 is
   8-10  burned for energy recovery in a device listed in 40 C.F.R. Section
   8-11  279.61(a).
   8-12              (20)  "Used oil collection center" means a site or
   8-13  facility that is registered by the commission to manage used oil
   8-14  and that accepts, aggregates, or stores used oil collected from:
   8-15                    (A)  used oil generators regulated under 40
   8-16  C.F.R. Part 279, Subpart C, who transport used oil to the used oil
   8-17  collection center in shipments of not more than 55 gallons under 40
   8-18  C.F.R. Section 279.24; or
   8-19                    (B)  household do-it-yourselfers.
   8-20              (21)  "Used oil filter" means a non-terne-plated oil
   8-21  filter that as a result of its use, storage, or handling has become
   8-22  contaminated by physical or chemical impurities and has been
   8-23  removed from service.  The term does not include a used oil filter:
   8-24                    (A)  that remains with an engine block that is
   8-25  recycled, as defined by Section 361.421; or
   8-26                    (B)  diverted for recycling, as defined by
   8-27  Section 361.421, that has been processed:
    9-1                          (i)  by draining and compressing with a
    9-2  force sufficient to remove 80 percent of the oil weight remaining
    9-3  in the filter;
    9-4                          (ii)  by separating, including dismantling,
    9-5  shredding, or any other acceptable procedure that separates the
    9-6  whole filter into its components;
    9-7                          (iii)  in accordance with a standard
    9-8  approved in writing by the executive director of the commission; or
    9-9                          (iv)  in accordance with the requirements
   9-10  of 40 C.F.R. Section 261.4(b)(13).
   9-11              (22)  "Used oil fuel marketer" means a person who:
   9-12                    (A)  directs a shipment of used oil not meeting
   9-13  the specifications in 40 C.F.R. Section 279.11 from the person's
   9-14  facility to a used oil burner; or
   9-15                    (B)  first claims that used oil to be burned for
   9-16  energy recovery meets the used oil specifications in 40 C.F.R.
   9-17  Section 279.11.
   9-18              (23)  "Used oil generator" means a person, by site,
   9-19  whose act or process:
   9-20                    (A)  produces used oil; or
   9-21                    (B)  first causes used oil to become subject to
   9-22  regulation.
   9-23              (24)  "Used oil processor or rerefiner" means a
   9-24  facility that processes used oil.
   9-25              (25)  "Used oil transfer facility" means a
   9-26  transportation-related facility, including a loading dock, parking
   9-27  area, storage area, or other area, where shipments of used oil are
   10-1  held for more than 24 hours and not more than 35 days during the
   10-2  normal course of transportation or before an activity performed
   10-3  under 40 C.F.R. Section 279.20(b)(2) takes place.  Transfer
   10-4  facilities that store used oil for more than 35 days are subject to
   10-5  regulation under 40 C.F.R. Part 279, Subpart F.
   10-6              (26)  "Used oil transporter" means a person who:
   10-7                    (A)  collects used oil from more than one
   10-8  generator and transports the collected used oil;
   10-9                    (B)  transports used oil; or
  10-10                    (C)  owns or operates a used oil transfer
  10-11  facility.
  10-12        SECTION 5.  Subchapter B, Chapter 371, Health and Safety
  10-13  Code, is amended to read as follows:
  10-14               SUBCHAPTER B.  USED OIL RECYCLING PROGRAM
  10-15        Sec. 371.021.  PUBLIC EDUCATION.  The commission <department>
  10-16  shall conduct an education program to inform the public of the need
  10-17  for and benefits of the collection and recycling of used oil and
  10-18  used oil filters.  The program shall:
  10-19              (1)  establish, maintain, and publicize a used oil
  10-20  information center that prepares and disperses materials and
  10-21  information explaining laws and rules regulating used oil and
  10-22  informing the public of places and methods for proper recycling of
  10-23  used oil;
  10-24              (2)  encourage the voluntary establishment of used oil
  10-25  collection and recycling programs by private businesses and
  10-26  organizations and by local governments and provide technical
  10-27  assistance to persons who organize those programs; and
   11-1              (3)  encourage local governments to procure recycled
   11-2  automotive and industrial oils and oils blended with recycled oils,
   11-3  if those oils meet equipment manufacturer's specifications.
   11-4        Sec. 371.022.  NOTICE BY RETAIL DEALER.  A retail dealer who
   11-5  annually sells directly to the public more than 500 gallons of oil
   11-6  in containers for use off-premises shall post in a prominent place
   11-7  a sign provided by the commission:
   11-8              (1)  <department> informing the public that improper
   11-9  disposal of used oil is prohibited by law;
  11-10              (2)  containing instructions for disposal of used oil
  11-11  filters; and
  11-12              (3)  <.  The sign shall also> prominently displaying
  11-13  <display> the toll-free telephone number of the state used oil
  11-14  information center established under Section 371.021.
  11-15        Sec. 371.023.  GRANTS TO LOCAL GOVERNMENTS AND PRIVATE
  11-16  ENTITIES.  (a)  The commission <department> shall develop a grant
  11-17  program for local governments and private entities that encourages
  11-18  the collection, reuse, and recycling of household do-it-yourselfer
  11-19  (DIY) used oil.
  11-20        (b)  The commission may approve a <A> grant <may be made> for
  11-21  any project <approved by the department.  The department shall
  11-22  consider for grant assistance any local government project> that
  11-23  uses one or more of the following programs:
  11-24              (1)  curbside pickup of containers of household
  11-25  do-it-yourselfer (DIY) used oil by a local government or its
  11-26  representative;
  11-27              (2)  retrofitting of municipal solid waste equipment to
   12-1  facilitate curbside pickup of household do-it-yourselfer (DIY) used
   12-2  oil;
   12-3              (3)  establishment of do-it-yourselfer <publicly
   12-4  operated DIY> used oil collection centers at locations accessible
   12-5  to the public, including landfills, fire stations, retail stores,
   12-6  quick lubrication centers, and automobile repair shops <or other
   12-7  public places>;
   12-8              (4)  provision of containers and other materials and
   12-9  supplies that can be used to store household do-it-yourselfer (DIY)
  12-10  used oil for pickup or delivery to a do-it-yourselfer used oil
  12-11  collection center in an environmentally sound manner; and
  12-12              (5)  any other activity the advisory committee
  12-13  established under Subsection (e) <department> determines will
  12-14  encourage the proper recycling of household do-it-yourselfer (DIY)
  12-15  used oil.
  12-16        (c)  The commission shall appoint an advisory committee for
  12-17  the used oil grant program.  The advisory committee consists of
  12-18  nine members who serve at the pleasure of the commission and
  12-19  represent oil manufacturers as defined by Section 371.062, used oil
  12-20  collection centers, and local governments.  The advisory committee
  12-21  shall recommend criteria for grants and guidelines for allowable
  12-22  administrative expenditures and shall recommend grant recipients to
  12-23  the commission based on the used oil collection needs of this
  12-24  state.  The advisory committee members serve without compensation
  12-25  and are not entitled to reimbursement for expenses incurred in the
  12-26  performance of their duties.
  12-27        (d)  The commission <board> by rule shall establish
   13-1  procedures for the application for and criteria for the award of
   13-2  grants under this section.  The commission by rule shall adopt
   13-3  guidelines for allowable administrative expenditures in accordance
   13-4  with guidelines established by the advisory committee.
   13-5        Sec. 371.024.  COLLECTION FACILITIES.  (a)  All appropriate
   13-6  businesses <that change motor oil for the public> and <all
   13-7  appropriate> government agencies are encouraged to serve as
   13-8  do-it-yourselfer <public> used oil collection centers and used oil
   13-9  collection centers.
  13-10        (b)  A do-it-yourselfer <public> used oil collection center
  13-11  and a used oil collection center <annually> shall:
  13-12              (1)  register biennially with the commission
  13-13  <department>; and
  13-14              (2)  report annually to the commission <department> the
  13-15  amounts of used oil collected by the center from the public.
  13-16        (c)  The commission <board> shall adopt rules governing the
  13-17  registration of and reporting by do-it-yourselfer <public> used oil
  13-18  collection centers and used oil collection centers.
  13-19        (d)  The commission <board> by rule shall adopt standards for
  13-20  managing and operating a do-it-yourselfer <public> used oil
  13-21  collection center or a used oil collection center.
  13-22        (e)  The commission <department> may impose a registration
  13-23  fee in an amount sufficient to cover the actual cost of registering
  13-24  do-it-yourselfer <public> used oil collection centers and used oil
  13-25  collection centers.  A private entity that serves voluntarily as a
  13-26  do-it-yourselfer used oil collection center is exempt from the
  13-27  registration fee.
   14-1        Sec. 371.0245.  REIMBURSEMENT OF USED OIL COLLECTION CENTER'S
   14-2  HAZARDOUS WASTE EXPENSE <CENTER>.  (a)  The commission, on proper
   14-3  application, shall reimburse the owner or operator of an eligible
   14-4  registered do-it-yourselfer <public> used oil collection center or
   14-5  a used oil collection center for costs associated with the
   14-6  collection center's disposal of:
   14-7              (1)  household do-it-yourselfer <do-it-yourself> (DIY)
   14-8  used oil collected by the collection center that, unknown to the
   14-9  center at the time of collection, contains hazardous wastes or is
  14-10  unfit for recycling;
  14-11              (2)  household do-it-yourselfer (DIY) used oil
  14-12  collected by the collection center that has been commingled with
  14-13  DIY oils described in Subdivision (1) and is unsuitable for
  14-14  recycling; or
  14-15              (3)  contaminated used oil left at the collection
  14-16  center as used oil after posted business hours and without the
  14-17  knowledge of the collection center.
  14-18        (b)  A registered used oil or do-it-yourselfer <public> used
  14-19  oil collection center is eligible for reimbursement if it
  14-20  demonstrates to the satisfaction of the commission that:
  14-21              (1)  the center has established procedures to minimize
  14-22  the risk that the center will mix the used oil the center generates
  14-23  or collects from the public <will not be mixed> with hazardous
  14-24  wastes, especially halogenated wastes;
  14-25              (2)  the center accepts not more than five gallons of
  14-26  used oil from any person at any one time; and
  14-27              (3)  the center can document to the satisfaction of the
   15-1  commission the volume of used oil the center collects from the
   15-2  public during any <a> period under review by:
   15-3                    (A)  providing a process by which all individuals
   15-4  leaving household  do-it-yourselfer <do-it-yourself> (DIY) used oil
   15-5  at the center are required to provide <log> their names, addresses,
   15-6  and the approximate amounts of used oil brought to the collection
   15-7  center <and ensuring that all do-it-yourself (DIY) used oil
   15-8  collected is kept in a separate sealed and labeled container placed
   15-9  on an impermeable surface>; or
  15-10                    (B)  another method approved by the commission.
  15-11        (c)  For the purpose of Subsection (b)(2), the owner or
  15-12  operator of a registered used oil or do-it-yourselfer <public> used
  15-13  oil collection center may presume that a quantity of not more than
  15-14  five gallons of used oil collected from a member of the public is
  15-15  not mixed with a hazardous substance<,> if the owner or operator
  15-16  acts in good  faith <and> in the belief the oil is generated from
  15-17  the individual's personal activity.
  15-18        (d)  In any state fiscal year, a registered used oil or
  15-19  do-it-yourselfer <public> used oil collection center may not be
  15-20  reimbursed for more than $7,500 <$5,000> in total eligible disposal
  15-21  costs, subject to Section 371.0246(d).
  15-22        (e)  Reimbursements <A reimbursement> made under this section
  15-23  shall <may> be paid out of the used oil recycling fund and may not
  15-24  <to> exceed an aggregate amount of $500,000 each fiscal year.
  15-25        Sec. 371.0246.  Procedures for Reimbursement.  (a)  An owner
  15-26  or operator of a registered used oil or do-it-yourselfer <public>
  15-27  used oil collection center may apply for reimbursement from the
   16-1  commission.
   16-2        (b)  An application for reimbursement shall be submitted
   16-3  <filed> on a form approved or provided by the commission.
   16-4        (c)  An application must contain:
   16-5              (1)  the name, address, and telephone number of the
   16-6  applicant;
   16-7              (2)  the name, mailing address, location address, and
   16-8  commission registration number of the registered do-it-yourselfer
   16-9  <public> used oil collection center from which the contaminated oil
  16-10  was removed;
  16-11              (3)  the name, address, telephone number, and
  16-12  commission registration number of the hazardous waste transporter
  16-13  used to dispose of the contaminated used oil;
  16-14              (4)  a copy of any <the signed uniform hazardous waste>
  16-15  manifest or shipping documents that accompanied the transportation
  16-16  of the shipment of used oil;
  16-17              (5)  a copy of each invoice for which reimbursement is
  16-18  requested and evidence that the amount shown on the invoice has
  16-19  been paid in full<, which may be> in the form of:
  16-20                    (A)  canceled checks;
  16-21                    (B)  business receipts from the person who
  16-22  performed the work; or
  16-23                    (C)  other documentation approved by the
  16-24  commission;
  16-25              (6)  a waste-characterization or similar documentation
  16-26  required before acceptance of a hazardous waste by the disposal
  16-27  facility that accepted the contaminated used oil for treatment or
   17-1  disposal; and
   17-2              (7)  any other information that the executive director
   17-3  may reasonably require.
   17-4        (d)  All claims for reimbursement filed under this section
   17-5  and Section 371.0245 are subject to funds available for
   17-6  disbursement <the availability of money> in the used oil recycling
   17-7  fund and to Section 371.0245(e).  This subchapter does not create
   17-8  an entitlement to money in the used oil recycling fund or any other
   17-9  fund.
  17-10        Sec. 371.025.  Limitation of Liability.   (a)  A person may
  17-11  not recover from the owner, operator, or lessor of a registered
  17-12  do-it-yourselfer <public> used oil collection center any damages or
  17-13  costs of response actions at another location resulting from a
  17-14  release or threatened release of used oil collected at the center
  17-15  if:
  17-16              (1)  the owner, operator, or lessor of the collection
  17-17  center does not mix the used oil collected with any hazardous waste
  17-18  or polychlorinated biphenyls (PCBs);
  17-19              (2)  the owner, operator, or lessor of the collection
  17-20  center does not accept used oil that the owner, operator, or lessor
  17-21  knows contains hazardous waste or PCBs; and
  17-22              (3)  the collection center is in compliance with
  17-23  management standards adopted by the department.
  17-24        (b)  For purposes of this section, the owner, operator, or
  17-25  lessor of a do-it-yourselfer <public> used oil collection center
  17-26  may presume that a quantity of less than five gallons of used oil
  17-27  accepted at any one time from any member of the public is not mixed
   18-1  with a hazardous waste or PCBs, provided that the owner, operator,
   18-2  or lessor acts in good faith.
   18-3        (c)  This section applies only to activities directly related
   18-4  to the collection of used oil by a do-it-yourselfer <public> used
   18-5  oil collection center.  This section does not apply to grossly
   18-6  negligent activities related to the operation of a used oil
   18-7  collection center.
   18-8        (d)  This section does not affect or modify the obligations
   18-9  or liability of any person other than the owner, operator, or
  18-10  lessor of the collection center under any other provisions of state
  18-11  or federal law, including common law, for injury or damage
  18-12  resulting from a release of used oil or hazardous substances.
  18-13        (e)  This section does not affect or modify the obligations
  18-14  or liability of any owner, operator, or lessor of a collection
  18-15  center with regard to services other than accepting used oil from
  18-16  the public.
  18-17        Sec. 371.026.  REGISTRATION OF <PERSONS TRANSPORTING,
  18-18  MARKETING, OR RECYCLING> USED OIL HANDLERS OTHER THAN GENERATORS.
  18-19  (a)  <A person who transports over public highways of this state
  18-20  more than 500 gallons of used oil annually, who markets more than
  18-21  500 gallons of used oil annually, or who recycles more than 10,000
  18-22  gallons of used oil annually shall register annually with the
  18-23  department on forms prescribed by the department and in accordance
  18-24  with board rules.>
  18-25        <(b)  The department shall develop a registration program for
  18-26  transporters, marketers, and recyclers of used oil.>
  18-27        <(c)>  The commission <board> shall adopt rules governing
   19-1  registration and reporting of used oil handlers other than
   19-2  generators <transporters, marketers, and recyclers>.  The rules
   19-3  shall require that a used oil handler other than a generator
   19-4  <transporter, marketer, or recycler>:
   19-5              (1)  register biennially <annually> with the commission
   19-6  <department>;
   19-7              (2)  report annually the sources of used oil handled
   19-8  <transported, marketed, or recycled> during the preceding year, the
   19-9  quantity of used oil received, the date of receipt, and the
  19-10  destination or end use of the used oil;
  19-11              (3)  provide evidence of familiarity with applicable
  19-12  state laws and rules and management procedures applicable to used
  19-13  oil handling <transportation, marketing, or recycling>; and
  19-14              (4)  provide proof of liability insurance or other
  19-15  evidence of financial responsibility for any liability that may be
  19-16  incurred in handling <transporting, marketing, or recycling> used
  19-17  oil.
  19-18        (b) <(d)>  The commission <board> by rule shall adopt
  19-19  reasonable management and safety standards for the handling
  19-20  <transportation, marketing, and recycling> of used oil.
  19-21        (c) <(e)>  The commission <department> may impose a
  19-22  registration fee in an amount sufficient to cover the actual cost
  19-23  of registering used oil handlers other than generators
  19-24  <transporters, marketers, and recyclers>.
  19-25        (d)  A used oil transporter may consolidate or aggregate
  19-26  loads of used oil for purposes of transportation but may not
  19-27  process used oil, except that a used oil transporter may conduct
   20-1  incidental processing operations, including settling and water
   20-2  separation, that occur in the normal course of the transportation
   20-3  of used oil but that are not designed to produce, or make more
   20-4  amenable for the production of, used-oil-derived products or used
   20-5  oil fuel.  <(f)  A utility or industrial generator of used oil that
   20-6  transports its own used oil from one generator-owned or
   20-7  generator-operated facility to another or that recycles its own
   20-8  used oil for use in its operations is not required to register or
   20-9  report under this section.>
  20-10        Sec. 371.027.  Gifts and Grants.  The commission <department>
  20-11  may apply for, request, solicit, contract for, receive, and accept
  20-12  gifts, grants, donations, and other assistance from any source to
  20-13  carry out its powers and duties under this chapter.
  20-14        Sec. 371.028.  RULES.  Not later than January 1, 1996, the
  20-15  commission shall adopt rules, standards, and procedures necessary
  20-16  to implement the used oil program established by this chapter.
  20-17  Unless otherwise required by applicable state or federal law, the
  20-18  rules, standards, and procedures must be consistent with and no
  20-19  more stringent than the used oil management standards under 40
  20-20  C.F.R. Part 279.  <The board may adopt any rules necessary to carry
  20-21  out the purposes of this chapter.>
  20-22        SECTION 6.  Subsections (b), (c), and (d), Section 371.041,
  20-23  Health and Safety Code, are amended to read as follows:
  20-24        (b)  A person commits an offense if the person:
  20-25              (1)  intentionally discharges used oil into a sewer,
  20-26  drainage system, septic tank, surface water or groundwater,
  20-27  watercourse, or marine water;
   21-1              (2)  knowingly mixes or commingles used oil with
   21-2  <solid> waste that is to be disposed of in landfills or directly
   21-3  disposes of used oil on land <or in landfills>;
   21-4              (3)  knowingly transports, treats, stores, disposes,
   21-5  recycles, causes to be transported, or otherwise handles any used
   21-6  oil regulated by the commission in violation of standards or
   21-7  regulations for management of such used oil or handles
   21-8  <intentionally mixes or commingles used oil with hazardous waste or
   21-9  other hazardous substances or PCBs;>
  21-10              <(4)  transports, markets, or recycles> used oil within
  21-11  the state without first complying with the registration
  21-12  requirements of Section 371.026 and rules adopted under that
  21-13  section;
  21-14              (4)  intentionally <(5)>  applies used oil to roads or
  21-15  land for dust suppression, weed abatement, or other similar uses
  21-16  that introduce used oil into the environment; <or>
  21-17              (5) <(6)>  violates an order of the commission
  21-18  <department> to cease and desist any activity prohibited by this
  21-19  section or any rule applicable to a prohibited activity; or
  21-20              (6)  makes any false statement or representation in any
  21-21  application, label, manifest, record, report, permit, or other
  21-22  document filed, maintained, or used for purposes of program
  21-23  compliance.
  21-24        (c)  It is an exception to the application of Subsection (b)
  21-25  if a person unknowingly disposes into the environment <a landfill>
  21-26  any used oil that has not been properly segregated or separated by
  21-27  the generator from other solid wastes.
   22-1        (d)  It is an exception to the application of Subsection
   22-2  (b)(2) if the mixing or commingling of used oil with <solid> waste
   22-3  that is to be disposed of in landfills is incident to and the
   22-4  unavoidable result of the mechanical shredding of motor vehicles,
   22-5  appliances, or other items of scrap, used, or obsolete metals.
   22-6        SECTION 7.  Section 371.042, Health and Safety Code, is
   22-7  amended to read as follows:
   22-8        Sec. 371.042.  CRIMINAL PENALTIES.  (a)  Except as provided
   22-9  by Subsection (b), an offense under Section 371.041 is punishable
  22-10  by:
  22-11              (1)  a fine of not less than $100 or more than $10,000
  22-12  for each act of violation or each day of a continuing violation;
  22-13              (2)  imprisonment for a term not to exceed five years;
  22-14  or
  22-15              (3)  both the fine and the imprisonment <a Class C
  22-16  misdemeanor>.
  22-17        (b)  If it is shown on the trial of an offense under Section
  22-18  371.041 that the defendant has previously been convicted of an
  22-19  offense under Section 371.041, the offense is punishable by:
  22-20              (1)  a fine of not less than $200 or more than $20,000
  22-21  for each act of violation or each day of a continuing violation;
  22-22              (2)  imprisonment for a term not to exceed 10 years; or
  22-23              (3)  both the fine and the imprisonment <a Class A
  22-24  misdemeanor>.
  22-25        SECTION 8.  Subsections (c) and (d), Section 371.043, Health
  22-26  and Safety Code, are amended to read as follows:
  22-27        (c)  The penalty imposed by this section does not apply to
   23-1  failure to pay a fee under Section 371.062 or failure to file a
   23-2  report under Section 371.024 <or 371.026>.
   23-3        (d)  The commission <department>, a local government in whose
   23-4  jurisdiction the violation occurs, or the state may bring suit to
   23-5  recover a penalty under this section.
   23-6        SECTION 9.  Subsections (b), (c), and (d), Section 371.061,
   23-7  Health and Safety Code, are amended to read as follows:
   23-8        (b)  The fund consists of:
   23-9              (1)  fees collected under Sections 371.024, 371.026,
  23-10  and 371.062;
  23-11              (2)  interest and penalties imposed under this chapter
  23-12  for late payment of fees, failure to file a report, or other
  23-13  violations of this chapter; and
  23-14              (3)  gifts, grants, donations, or other financial
  23-15  assistance the commission <department> is authorized to receive
  23-16  under Section 371.027.
  23-17        (c)  Except as provided by Subsection (d), the commission
  23-18  <department> may use money in the fund only for purposes authorized
  23-19  by this chapter, including:
  23-20              (1)  public education;
  23-21              (2)  grants to public and private do-it-yourselfer used
  23-22  oil collection centers; and
  23-23              (3)  registration of do-it-yourselfer used oil
  23-24  collection centers and<,> used oil handlers other than generators
  23-25  <transporters, used oil marketers, and used oil recyclers; and>
  23-26              <(4)  administrative costs of implementing this
  23-27  chapter>.
   24-1        (d)  The commission <department> shall set aside <transfer>
   24-2  25 percent of the fees collected under Section 371.062 <to the
   24-3  Texas Water Commission> for the sole purpose of restoring the
   24-4  environmental quality of those sites in the state that the
   24-5  commission has identified as having been contaminated through
   24-6  improper used oil management and for which other funds from a
   24-7  potentially responsible party or the federal government are not
   24-8  sufficient.  This subsection expires on January 1, 1998 <1997>.
   24-9        SECTION 10.  Section 371.062, Health and Safety Code, is
  24-10  amended by amending Subsections (a), (b), (f), and (j) and by
  24-11  adding Subsections (m), (n), and (o) to read as follows:
  24-12        (a)  In this section:
  24-13              (1)  "Distributor" means a person who maintains a
  24-14  distribution center or warehouse in this state and annually exports
  24-15  from this state to a location outside this state more than 25,000
  24-16  gallons of automotive oil.
  24-17              (2)  "First sale" means the first actual sale of
  24-18  automotive oil delivered to a location in this state and sold to a
  24-19  purchaser who is not an automotive oil manufacturer.  The term does
  24-20  not include the sale of automotive oil:
  24-21                    (A)  exported from this state to a location
  24-22  outside this state for the purpose of sale or use outside this
  24-23  state;
  24-24                    (B)  <.  This term does not include sales of
  24-25  automotive oils> for resale to or use by vessels exclusively
  24-26  engaged in foreign or interstate commerce;
  24-27                    (C)  to a subsequent purchaser who maintains a
   25-1  do-it-yourselfer used oil collection center registered by the
   25-2  commission at the location where the automotive oil is changed,
   25-3  used, consumed, or resold to do-it-yourselfers; or
   25-4                    (D)  to the United States government.
   25-5              (3) <(2)>  "Importer" means any person who imports or
   25-6  causes to be imported automotive oil into this state for sale, use,
   25-7  or consumption.
   25-8              (4) <(3)>  "Oil manufacturer" means any person or
   25-9  entity that formulates automotive oil and packages, distributes, or
  25-10  sells that automotive oil.  The term includes any person packaging
  25-11  or repackaging automotive oil.
  25-12        (b)  An oil manufacturer or distributor who makes a first
  25-13  sale of automotive oil is liable for a fee.
  25-14        (f)  Each oil manufacturer, distributor, or importer required
  25-15  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        (j)  The fee imposed under this section is two cents per
   26-1  quart or eight cents per gallon of automotive oil.  As of
   26-2  September 1, 1997, the fee shall not exceed one cent per quart or
   26-3  four cents per gallon.  <The department shall monitor the
   26-4  unobligated balance of the used oil recycling fund and shall adjust
   26-5  the fee rate to meet expenditure requirements of the used oil
   26-6  recycling program and to maintain an appropriate fund balance.  The
   26-7  fee imposed under this section may not exceed five cents per quart
   26-8  or 20 cents per gallon of automotive oil.  On or before September 1
   26-9  of each year, the department and the comptroller jointly shall
  26-10  issue notice of the effective fee rate for the next fiscal year.>
  26-11        (m)  A distributor must obtain a permit from the comptroller.
  26-12  The comptroller shall adopt an application form for the permit,
  26-13  which must include:
  26-14              (1)  the name under which the applicant transacts or
  26-15  intends to transact business;
  26-16              (2)  the location of the applicant's distribution
  26-17  center or warehouse in this state;
  26-18              (3)  if the applicant is a corporation or partnership,
  26-19  the names of the principal officers of the corporation or of the
  26-20  members of the partnership and the address of each officer or
  26-21  member; and
  26-22              (4)  any other information required by the comptroller.
  26-23        (n)  The comptroller may deny or revoke a permit under
  26-24  Subsection (m) if false information is submitted on the application
  26-25  or on a required fuels tax report or supplement.
  26-26        (o)  A permit under Subsection (m) may not be assigned.
  26-27        SECTION 11.  Subchapter N, Chapter 361, Health and Safety
   27-1  Code, is amended by adding Section 361.432 to read as follows:
   27-2        Sec. 361.432.  USED OIL FILTER MANAGEMENT.  (a)  Used oil
   27-3  filters shall not be intentionally or knowingly placed in or
   27-4  accepted for disposal in a landfill permitted by the commission.
   27-5        (b)  The commission by rule may:
   27-6              (1)  adopt reasonable standards for the management of
   27-7  used oil filters as defined in Section 371.003; and
   27-8              (2)  encourage the recycling of used oil filters.
   27-9        SECTION 12.  (a)  The change in law made by this Act to
  27-10  Section 371.042, Health and Safety Code, applies only to an offense
  27-11  committed on or after the effective date of this Act.  For purposes
  27-12  of this section, an offense is committed before the effective date
  27-13  of this Act if any element of the offense occurs before that date.
  27-14        (b)  An offense committed before the effective date of this
  27-15  Act is covered by the law in effect when the offense was committed,
  27-16  and the former law is continued in effect for that purpose.
  27-17        SECTION 13.  (a)  Except as provided by Subsection (b) of
  27-18  this section, this Act takes effect September 1, 1995.
  27-19        (b)  Subsection (j), Section 371.062, Health and Safety Code,
  27-20  as amended by this Act, takes effect January 1, 1996.
  27-21        SECTION 14.  The importance of this legislation and the
  27-22  crowded condition of the calendars in both houses create an
  27-23  emergency and an imperative public necessity that the
  27-24  constitutional rule requiring bills to be read on three several
  27-25  days in each house be suspended, and this rule is hereby suspended.