By Nixon                                              S.B. No. 1683
       74R11542 SMH-F
                                 A BILL TO BE ENTITLED
    1-1                                AN ACT
    1-2  relating to the collection, management, and recycling of used oil
    1-3  and used oil filters.
    1-4        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-5        SECTION 1.  Section 371.001, Health and Safety Code, is
    1-6  amended to read as follows:
    1-7        Sec. 371.001.  Short Title.  This chapter may be cited as the
    1-8  Texas Used Oil Collection, Management, and Recycling Act.
    1-9        SECTION 2.  Section 371.002, Health and Safety Code, is
   1-10  amended to read as follows:
   1-11        Sec. 371.002.  Findings.  The legislature finds that:
   1-12              (1)  when properly managed and recycled, used oil is a
   1-13  valuable energy resource<, the reuse of which may make a
   1-14  significant contribution toward energy efficiency and
   1-15  conservation>;
   1-16              (2)  used oil can be recycled into a number of
   1-17  different products;
   1-18              (3)  improper disposal of used oil is a significant
   1-19  environmental problem and a waste of a potentially valuable energy
   1-20  resource;
   1-21              (4)  there is a need for an expanded statewide network
   1-22  of public and private used oil collection sites for private
   1-23  citizens who change their own motor oil;
   1-24              (5)  the United States Environmental Protection Agency
    2-1  has issued final regulations that properly classify and regulate
    2-2  used oil and used oil filters in accordance with the Resource
    2-3  Conservation and Recovery Act of 1976 (42 U.S.C. Section 6901 et
    2-4  seq.);
    2-5              (6)  the current used oil and used oil filter program
    2-6  in this state imposes more stringent management requirements than
    2-7  the regulations of the United States Environmental Protection
    2-8  Agency;
    2-9              (7)  limited public money is needed to finance public
   2-10  and private infrastructure investments to collect, manage, and
   2-11  recycle used motor oil; and
   2-12              (8)  the used oil management standards in 40 CFR Part
   2-13  279 establish a balanced approach to the objectives of preserving a
   2-14  valuable resource and protecting the natural environment <recycling
   2-15  used oil to produce fuel requires significantly less energy than is
   2-16  needed to refine crude oil into fuel;>
   2-17              <(3)  millions of gallons of used oil generated each
   2-18  year by private citizens in the state are not available for
   2-19  recycling because of improper disposal practices and the lack of
   2-20  collection facilities;>
   2-21              <(4)  although there is a reliable system for the
   2-22  collection and recycling of used oil generated by business and
   2-23  industry, private citizens have only limited access to that system
   2-24  and often dispose of their used oil on land or in landfills,
   2-25  sewers, drainage systems, septic tanks, surface waters or
   2-26  groundwaters, watercourses, or marine waters;>
   2-27              <(5)  improper disposal of this used oil is both a
    3-1  significant environmental problem and a waste of a valuable energy
    3-2  resource; and>
    3-3              <(6)  adequate public funds are required to provide for
    3-4  the proper collection, management, and recycling of used oil>.
    3-5        SECTION 3.  Subchapter A, Chapter 371, Health and Safety
    3-6  Code, is amended by adding Section 371.0025 to read as follows:
    3-7        Sec. 371.0025.  PURPOSE AND SCOPE.  The purposes of this
    3-8  chapter are to:
    3-9              (1)  ensure that this state's used oil program is
   3-10  consistent with the federal program for the management of used oil
   3-11  under 40 CFR Part 279 and of used oil filters under 40 CFR Section
   3-12  261.4(b)(13); and
   3-13              (2)  establish a program to promote public and private
   3-14  do-it-yourselfer used oil collection centers.
   3-15        SECTION 4.  Section 371.003, Health and Safety Code, is
   3-16  amended to read as follows:
   3-17        Sec. 371.003.  Definitions.  In this chapter:
   3-18              (1)  "Automotive oil" means any lubricating oils
   3-19  intended for use in an internal combustion engine, crankcase,
   3-20  transmission, gear box, or differential for an automobile, bus, or
   3-21  truck.  The term includes oil that is not labeled specifically for
   3-22  that use but is suitable for that use according to generally
   3-23  accepted industry specifications.
   3-24              (2)  "Commission" <"Board" means the Texas Natural
   3-25  Resource Conservation Commission.>
   3-26              <(3)  "Department"> means the Texas Natural Resource
   3-27  Conservation Commission.
    4-1              (3)  "Do-it-yourselfer used oil collection center"
    4-2  means a site or facility that accepts or aggregates and stores used
    4-3  oil collected only from household do-it-yourselfers.
    4-4              (4)  "Household do-it-yourselfer <"Do-it-yourself>
    4-5  (DIY) used oil" means <used> oil that is derived from a household,
    4-6  including used oil generated by an individual through the
    4-7  maintenance of the individual's personal vehicle or equipment
    4-8  <generated by a person who changes the person's own automotive
    4-9  oil>.
   4-10              (5)  "Household do-it-yourselfer used oil generator"
   4-11  means an individual who generates household do-it-yourselfer
   4-12  <"Generator" means a person whose act or process produces> used
   4-13  oil.
   4-14              (6)  "New tank" means a tank for the storage or
   4-15  processing of used oil the construction of which begins on or after
   4-16  September 1, 1995. <"Public used oil collection center" means:>
   4-17                    <(A)  an automotive service facility that in the
   4-18  course of business accepts for recycling small quantities of used
   4-19  oil from private citizens;>
   4-20                    <(B)  a facility that stores used oil in
   4-21  aboveground tanks and in the course of business accepts for
   4-22  recycling small quantities of used oil from private citizens; and>
   4-23                    <(C)  a publicly sponsored collection facility
   4-24  that is designated and authorized by the department to accept for
   4-25  recycling small quantities of used oil from private citizens.>
   4-26              (7)  "Processing" means chemical or physical operations
   4-27  designed to produce from used oil, or to make used oil more
    5-1  amenable for production of, fuel oils, lubricants, or other
    5-2  used-oil-derived products, including blending used oil with virgin
    5-3  petroleum products, blending used oils to meet fuel specifications,
    5-4  filtration, simple distillation, chemical or physical separation,
    5-5  and rerefining.
    5-6              (8)  "Reclaiming" means processing material to recover
    5-7  a usable product or regenerating material, including recovering
    5-8  lead from a spent battery and regenerating spent solvents <using
    5-9  methods, other than rerefining, to remove insoluble impurities from
   5-10  used oil and making the used oil suitable for further use as a
   5-11  lubricant or petroleum product.  The term includes settling,
   5-12  heating, dehydration, filtration, or centrifuging>.
   5-13              (9) <(8)>  "Recycling" means:
   5-14                    (A)  preparing used oil for reuse as a petroleum
   5-15  product by rerefining, reclaiming, or other means; <or>
   5-16                    (B)  using used oil as a lubricant or petroleum
   5-17  product instead of using a petroleum product made from new oil; or
   5-18                    (C)  burning used oil for energy recovery.
   5-19              (10) <(9)>  "Rerefining" means applying <refining>
   5-20  processes to material composed primarily of used oil to produce
   5-21  high-quality base stocks for lubricants or other petroleum
   5-22  products, including settling, filtering, catalytic conversion,
   5-23  fractional/vacuum distillation, hydrotreating, or polishing.
   5-24              (11) <(10)>  "Used oil" means <any> oil that has been
   5-25  refined from crude oil, or <a> synthetic oil, that as a result of
   5-26  use has been contaminated by physical or chemical impurities<, as a
   5-27  result of use, storage, or handling, has become unsuitable for its
    6-1  original purpose because of impurities or the loss of original
    6-2  properties, but that may be suitable for further use and is
    6-3  recyclable>.
    6-4              (12)  "Used oil aggregation point" means a site or
    6-5  facility that accepts, aggregates, or stores used oil collected
    6-6  from:
    6-7                    (A)  used oil generation sites owned or operated
    6-8  by the owner or operator of the used oil aggregation point and
    6-9  transported to the used oil aggregation point in shipments of not
   6-10  more than 55 gallons; or
   6-11                    (B)  household do-it-yourselfers.
   6-12              (13)  "Used oil burner" means a facility in which used
   6-13  oil not meeting the specifications in 40 CFR Section 279.11 is
   6-14  burned for energy recovery in a device listed in 40 CFR Section
   6-15  279.61(a).
   6-16              (14)  "Used oil collection center" means a site or
   6-17  facility that is registered by the commission to manage used oil
   6-18  and accepts, aggregates, or stores used oil collected from:
   6-19                    (A)  used oil generators regulated under 40 CFR
   6-20  Part 279, Subpart C, who transport used oil to the used oil
   6-21  collection center in shipments of not more than 55 gallons under 40
   6-22  CFR Section 279.24; or
   6-23                    (B)  household do-it-yourselfers.
   6-24              (15)  "Used oil fuel marketer" means a person who:
   6-25                    (A)  directs a shipment of used oil not meeting
   6-26  the specifications in 40 CFR Section 279.11 from the person's
   6-27  facility to a used oil burner; or
    7-1                    (B)  first claims that used oil to be burned for
    7-2  energy recovery meets the used oil specifications in 40 CFR Section
    7-3  279.11.
    7-4              (16)  "Used oil generator" means a person, by site,
    7-5  whose act or process:
    7-6                    (A)  produces used oil; or
    7-7                    (B)  first causes used oil to become subject to
    7-8  regulation.
    7-9              (17)  "Used oil processor or rerefiner" means a
   7-10  facility that processes used oil.
   7-11              (18)  "Used oil transfer facility" means a
   7-12  transportation-related facility, including a loading dock, parking
   7-13  area, storage area, or other area, where shipments of used oil are
   7-14  held for more than 24 hours and not more than 35 days during the
   7-15  normal course of transportation or before an activity performed
   7-16  under 40 CFR Section 279.20(b)(2) takes place.
   7-17              (19)  "Used oil transporter" means a person who:
   7-18                    (A)  transports used oil; or
   7-19                    (B)  owns or operates a used oil transfer
   7-20  facility.
   7-21        SECTION 5.  Subchapter B, Chapter 371, Health and Safety
   7-22  Code, is amended to read as follows:
   7-23               SUBCHAPTER B.  USED OIL RECYCLING PROGRAM
   7-24        Sec. 371.021.  Public Education.  The commission <department>
   7-25  shall conduct an education program to inform the public of the need
   7-26  for and benefits of the collection and recycling of used oil and
   7-27  used oil filters.  The program shall:
    8-1              (1)  establish, maintain, and publicize a used oil
    8-2  information center that prepares and disperses materials and
    8-3  information explaining laws and rules regulating used oil and
    8-4  informing the public of places and methods for proper recycling of
    8-5  used oil;
    8-6              (2)  encourage the voluntary establishment of used oil
    8-7  collection and recycling programs by private businesses and
    8-8  organizations and by local governments and provide technical
    8-9  assistance to persons who organize those programs; and
   8-10              (3)  encourage local governments to procure recycled
   8-11  automotive and industrial oils and oils blended with recycled oils,
   8-12  if those oils meet equipment manufacturer's specifications.
   8-13        Sec. 371.022.  Notice by Retail Dealer.  A retail dealer who
   8-14  annually sells directly to the public more than 500 gallons of oil
   8-15  in containers for use off-premises shall post in a prominent place
   8-16  a sign provided by the commission:
   8-17              (1)  <department> informing the public that improper
   8-18  disposal of used oil is prohibited by law;
   8-19              (2)  containing instructions for disposal of used oil
   8-20  filters; and
   8-21              (3)  <.  The sign shall also> prominently displaying
   8-22  <display> the toll-free telephone number of the state used oil
   8-23  information center established under Section 371.021.
   8-24        Sec. 371.023.  GRANTS TO LOCAL GOVERNMENTS AND PRIVATE
   8-25  ENTITIES.  (a)  The commission <department> shall develop a grant
   8-26  program for local governments and private entities that encourages
   8-27  the collection, reuse, and recycling of household do-it-yourselfer
    9-1  (DIY) used oil.
    9-2        (b)  The commission may approve a <A> grant <may be made> for
    9-3  any project <approved by the department.  The department shall
    9-4  consider for grant assistance any local government project> that
    9-5  uses one or more of the following programs:
    9-6              (1)  curbside pickup of containers of household
    9-7  do-it-yourselfer (DIY) used oil by a local government or its
    9-8  representative;
    9-9              (2)  retrofitting of municipal solid waste equipment to
   9-10  facilitate curbside pickup of household do-it-yourselfer (DIY) used
   9-11  oil;
   9-12              (3)  establishment of do-it-yourselfer <publicly
   9-13  operated DIY> used oil collection centers at locations accessible
   9-14  to the public, including landfills, fire stations, retail stores,
   9-15  quick lubrication centers, and automobile repair shops <or other
   9-16  public places>;
   9-17              (4)  provision of containers and other materials and
   9-18  supplies that can be used to store household do-it-yourselfer (DIY)
   9-19  used oil for pickup or delivery to a do-it-yourselfer used oil
   9-20  collection center in an environmentally sound manner; and
   9-21              (5)  any other activity the advisory committee
   9-22  established under Subsection (e) <department> determines will
   9-23  encourage the proper recycling of household do-it-yourselfer (DIY)
   9-24  used oil.
   9-25        (c)  The commission, through the Texas Department of
   9-26  Commerce, may grant not more than $500,000 to steel mills to
   9-27  develop structures for recycling used oil filters.  Each grant is
   10-1  for a term of one year.  The commission may not make more than one
   10-2  grant to a steel mill under this subsection.
   10-3        (d)  A grant to a municipal do-it-yourselfer used oil
   10-4  collection center or group of centers must be made directly to the
   10-5  center or group of centers and may not be made to an entity that
   10-6  redistributes money to do-it-yourselfer used oil collection centers
   10-7  or another third party.
   10-8        (e)  The commission shall appoint an advisory committee for
   10-9  the used oil grant program.  The advisory committee consists of
  10-10  seven members who serve at the pleasure of the commission and
  10-11  represent oil manufacturers as defined by Section 371.062, used oil
  10-12  collection centers, and local governments.  The advisory committee
  10-13  shall recommend criteria for grants and recommend grant recipients
  10-14  to the commission based on the used oil collection needs of this
  10-15  state.
  10-16        (f)  The commission <board> by rule shall establish
  10-17  procedures for the application for and criteria for the award of
  10-18  grants under this section.
  10-19        Sec. 371.024.  Collection Facilities.  (a)  All appropriate
  10-20  businesses <that change motor oil for the public> and <all
  10-21  appropriate> government agencies are encouraged to serve as
  10-22  do-it-yourselfer <public> used oil collection centers.
  10-23        (b)  A do-it-yourselfer <public> used oil collection center
  10-24  annually shall:
  10-25              (1)  register with the commission <department>; and
  10-26              (2)  report to the commission <department> the amounts
  10-27  of used oil collected by the center from the public.
   11-1        (c)  The commission <board> shall adopt rules governing the
   11-2  registration of and reporting by do-it-yourselfer <public> used oil
   11-3  collection centers.
   11-4        (d)  The commission <board> by rule shall adopt standards for
   11-5  managing and operating a do-it-yourselfer <public> used oil
   11-6  collection center.
   11-7        (e)  The commission <department> may impose a registration
   11-8  fee in an amount sufficient to cover the actual cost of registering
   11-9  do-it-yourselfer <public> used oil collection centers.  A private
  11-10  entity that serves voluntarily as a do-it-yourselfer used oil
  11-11  collection center is exempt from the registration fee.
  11-12        Sec. 371.0245.  Reimbursement of Do-it-yourselfer Used Oil
  11-13  Collection Center's Hazardous Waste Expense <Center>.  (a)  The
  11-14  commission, on proper application, shall reimburse the owner or
  11-15  operator of an eligible registered do-it-yourselfer <public> used
  11-16  oil collection center for costs associated with the collection
  11-17  center's disposal of:
  11-18              (1)  household do-it-yourselfer <do-it-yourself> (DIY)
  11-19  used oil collected by the collection center that, unknown to the
  11-20  center at the time of collection, contains hazardous wastes or is
  11-21  unfit for recycling;
  11-22              (2)  household do-it-yourselfer (DIY) used oil
  11-23  collected by the collection center that has been commingled with
  11-24  DIY oils described in Subdivision (1) and is unsuitable for
  11-25  recycling; or
  11-26              (3)  contaminated used oil left at the collection
  11-27  center as used oil after posted business hours and without the
   12-1  knowledge of the collection center.
   12-2        (b)  A registered do-it-yourselfer <public> used oil
   12-3  collection center is eligible for reimbursement if it demonstrates
   12-4  to the satisfaction of the commission that:
   12-5              (1)  the center has established procedures to minimize
   12-6  the risk that the center will mix the used oil the center generates
   12-7  or collects from the public <will not be mixed> with hazardous
   12-8  wastes, especially halogenated wastes;
   12-9              (2)  the center accepts not more than five gallons of
  12-10  used oil from any person at any one time; and
  12-11              (3)  the center can document to the satisfaction of the
  12-12  commission the volume of used oil the center collects from the
  12-13  public during any <a> period under review by:
  12-14                    (A)  providing a process by which all individuals
  12-15  leaving household do-it-yourselfer <do-it-yourself> (DIY) used oil
  12-16  at the center are required to provide <log> their names, addresses,
  12-17  and the approximate amounts of used oil brought to the collection
  12-18  center <and ensuring that all do-it-yourself (DIY) used oil
  12-19  collected is kept in a separate sealed and labeled container placed
  12-20  on an impermeable surface>; or
  12-21                    (B)  another method approved by the commission.
  12-22        (c)  For the purpose of Subsection (b)(2), the owner or
  12-23  operator of a registered do-it-yourselfer <public> used oil
  12-24  collection center may presume that a quantity of not more than five
  12-25  gallons of used oil collected from a member of the public is not
  12-26  mixed with a hazardous substance<,> if the owner or operator acts
  12-27  in good faith <and> in the belief the oil is generated from the
   13-1  individual's personal activity.
   13-2        (d)  In any state fiscal year, a registered do-it-yourselfer
   13-3  <public> used oil collection center may not be reimbursed for more
   13-4  than $7,500 <$5,000> in total eligible disposal costs, subject to
   13-5  Section 371.0246(d).
   13-6        (e)  Reimbursements <A reimbursement> made under this section
   13-7  shall <may> be paid out of the used oil recycling fund and may not
   13-8  <to> exceed an aggregate amount of $500,000 each fiscal year.
   13-9        Sec. 371.0246.  Procedures for Reimbursement.  (a)  An owner
  13-10  or operator of a registered do-it-yourselfer <public> used oil
  13-11  collection center may apply for reimbursement from the commission.
  13-12        (b)  An application for reimbursement shall be submitted
  13-13  <filed> on a form approved or provided by the commission.
  13-14        (c)  An application must contain:
  13-15              (1)  the name, address, and telephone number of the
  13-16  applicant;
  13-17              (2)  the name, mailing address, location address, and
  13-18  commission registration number of the registered do-it-yourselfer
  13-19  <public> used oil collection center from which the contaminated oil
  13-20  was removed;
  13-21              (3)  the name, address, telephone number, and
  13-22  commission registration number of the hazardous waste transporter
  13-23  used to dispose of the contaminated used oil;
  13-24              (4)  a copy of any <the signed uniform hazardous waste>
  13-25  manifest or shipping documents that accompanied the transportation
  13-26  of the shipment of used oil;
  13-27              (5)  a copy of each invoice for which reimbursement is
   14-1  requested and evidence that the amount shown on the invoice has
   14-2  been paid in full<, which may be> in the form of:
   14-3                    (A)  canceled checks;
   14-4                    (B)  business receipts from the person who
   14-5  performed the work; or
   14-6                    (C)  other documentation approved by the
   14-7  commission;
   14-8              (6)  a waste-characterization or similar documentation
   14-9  required before acceptance of a hazardous waste by the disposal
  14-10  facility that accepted the contaminated used oil for treatment or
  14-11  disposal; and
  14-12              (7)  any other information that the executive director
  14-13  may reasonably require.
  14-14        (d)  All claims for reimbursement filed under this section
  14-15  and Section 371.0245 are subject to funds available for
  14-16  disbursement <the availability of money> in the used oil recycling
  14-17  fund and to Section 371.0245(e).  This subchapter does not create
  14-18  an entitlement to money in the used oil recycling fund or any other
  14-19  fund.
  14-20        Sec. 371.025.  <Limitation of Liability><.  (a)  A person may
  14-21  not recover from the owner, operator, or lessor of a registered
  14-22  public used oil collection center any damages or costs of response
  14-23  actions at another location resulting from a release or threatened
  14-24  release of used oil collected at the center if:>
  14-25              <(1)  the owner, operator, or lessor of the collection
  14-26  center does not mix the used oil collected with any hazardous waste
  14-27  or polychlorinated biphenyls (PCBs);>
   15-1              <(2)  the owner, operator, or lessor of the collection
   15-2  center does not accept used oil that the owner, operator, or lessor
   15-3  knows contains hazardous waste or PCBs; and>
   15-4              <(3)  the collection center is in compliance with
   15-5  management standards adopted by the department.>
   15-6        <(b)  For purposes of this section, the owner, operator, or
   15-7  lessor of a public used oil collection center may presume that a
   15-8  quantity of less than five gallons of used oil accepted at any one
   15-9  time from any member of the public is not mixed with a hazardous
  15-10  waste or PCBs, provided that the owner, operator, or lessor acts in
  15-11  good faith.>
  15-12        <(c)  This section applies only to activities directly
  15-13  related to the collection of used oil by a public used oil
  15-14  collection center.  This section does not apply to grossly
  15-15  negligent activities related to the operation of a used oil
  15-16  collection center.>
  15-17        <(d)  This section does not affect or modify the obligations
  15-18  or liability of any person other than the owner, operator, or
  15-19  lessor of the collection center under any other provisions of state
  15-20  or federal law, including common law, for injury or damage
  15-21  resulting from a release of used oil or hazardous substances.>
  15-22        <(e)  This section does not affect or modify the obligations
  15-23  or liability of any owner, operator, or lessor of a collection
  15-24  center with regard to services other than accepting used oil from
  15-25  the public.>
  15-26        <Sec. 371.026.>  Registration of <Persons Transporting,
  15-27  Marketing, or Recycling> Used Oil Handlers Other Than Generators.
   16-1  (a)  <A person who transports over public highways of this state
   16-2  more than 500 gallons of used oil annually, who markets more than
   16-3  500 gallons of used oil annually, or who recycles more than 10,000
   16-4  gallons of used oil annually shall register annually with the
   16-5  department on forms prescribed by the department and in accordance
   16-6  with board rules.>
   16-7        <(b)  The department shall develop a registration program for
   16-8  transporters, marketers, and recyclers of used oil.>
   16-9        <(c)>  The commission <board> shall adopt rules governing
  16-10  registration and reporting of used oil handlers other than
  16-11  generators <transporters, marketers, and recyclers>.  The rules
  16-12  shall require that a used oil handler other than a generator
  16-13  <transporter, marketer, or recycler>:
  16-14              (1)  register annually with the commission
  16-15  <department>;
  16-16              (2)  report annually the sources of used oil handled
  16-17  <transported, marketed, or recycled> during the preceding year, the
  16-18  quantity of used oil received, the date of receipt, and the
  16-19  destination or end use of the used oil;
  16-20              (3)  provide evidence of familiarity with applicable
  16-21  state laws and rules and management procedures applicable to used
  16-22  oil handling <transportation, marketing, or recycling>; and
  16-23              (4)  provide proof of liability insurance or other
  16-24  evidence of financial responsibility for any liability that may be
  16-25  incurred in handling <transporting, marketing, or recycling> used
  16-26  oil.
  16-27        (b) <(d)>  The commission <board> by rule shall adopt
   17-1  reasonable management and safety standards for the handling
   17-2  <transportation, marketing, and recycling> of used oil.
   17-3        (c) <(e)>  The commission <department> may impose a
   17-4  registration fee in an amount sufficient to cover the actual cost
   17-5  of registering used oil handlers other than generators
   17-6  <transporters, marketers, and recyclers>.
   17-7        (d)  A used oil transporter may consolidate or aggregate
   17-8  loads of used oil for purposes of transportation but may not
   17-9  process used oil, except that a used oil transporter may conduct
  17-10  incidental processing operations, including settling and water
  17-11  separation, that occur in the normal course of the transportation
  17-12  of used oil but that are not designed to produce, or make more
  17-13  amenable for the production of, used-oil-derived products or used
  17-14  oil fuel.  <(f)  A utility or industrial generator of used oil that
  17-15  transports its own used oil from one generator-owned or
  17-16  generator-operated facility to another or that recycles its own
  17-17  used oil for use in its operations is not required to register or
  17-18  report under this section.>
  17-19        Sec. 371.026 <371.027>.  Gifts and Grants.  The commission
  17-20  <department> may apply for, request, solicit, contract for,
  17-21  receive, and accept gifts, grants, donations, and other assistance
  17-22  from any source to carry out its powers and duties under this
  17-23  chapter.
  17-24        Sec. 371.027 <371.028>.  Rules.  (a)  Not later than January
  17-25  1, 1996, the commission shall adopt rules, standards, and
  17-26  procedures necessary to implement the used oil program established
  17-27  by this chapter.  The rules, standards, and procedures must be
   18-1  consistent with the used oil management standards under 40 CFR Part
   18-2  279.
   18-3        (b)  Not later than January 1, 2000, the commission shall
   18-4  adopt rules, standards, and procedures necessary to implement the
   18-5  used oil filter program established by this chapter.  The rules,
   18-6  standards, and procedures must be consistent with the used oil
   18-7  filter program under 40 CFR Section 261.4(b)(13) or its successor.
   18-8        (c)  The commission may not adopt a rule for the purpose of
   18-9  the administration by this state of the used oil or used oil filter
  18-10  program under the Resource Conservation and Recovery Act of 1976
  18-11  (42 U.S.C. Section 6901 et seq.) that is more stringent than
  18-12  federal law.  <The board may adopt any rules necessary to carry out
  18-13  the purposes of this chapter.>
  18-14        SECTION 6.  Section 371.041, Health and Safety Code, is
  18-15  amended by amending Subsections (b)-(d) and adding Subsection (e)
  18-16  to read as follows:
  18-17        (b)  A person commits an offense if the person:
  18-18              (1)  intentionally discharges used oil into a sewer,
  18-19  drainage system, septic tank, surface water or groundwater,
  18-20  watercourse, or marine water;
  18-21              (2)  knowingly mixes or commingles used oil with
  18-22  <solid> waste that is to be disposed of in landfills or directly
  18-23  disposes of used oil on land <or in landfills>;
  18-24              (3)  handles but does not generate <intentionally mixes
  18-25  or commingles used oil with hazardous waste or other hazardous
  18-26  substances or PCBs;>
  18-27              <(4)  transports, markets, or recycles> used oil within
   19-1  the state without first complying with the registration
   19-2  requirements of Section 371.025 <371.026> and rules adopted under
   19-3  that section;
   19-4              (4)  intentionally <(5)>  applies used oil to roads or
   19-5  land for dust suppression, weed abatement, or other similar uses
   19-6  that introduce used oil into the environment; or
   19-7              (5) <(6)>  violates an order of the commission
   19-8  <department> to cease and desist any activity prohibited by this
   19-9  section or any rule applicable to a prohibited activity.
  19-10        (c)  It is an exception to the application of Subsection (b)
  19-11  if a person unknowingly disposes into the environment <a landfill>
  19-12  any used oil that has not been properly segregated or separated by
  19-13  the generator from other solid wastes.
  19-14        (d)  It is an exception to the application of Subsection
  19-15  (b)(2) if the mixing or commingling of used oil with <solid> waste
  19-16  that is to be disposed of in landfills is incident to and the
  19-17  unavoidable result of the mechanical shredding of motor vehicles,
  19-18  appliances, or other items of scrap, used, or obsolete metals.
  19-19        (e)  It is an exception to the application of Subsection
  19-20  (b)(2) if the mixing or commingling of used oil with waste is the
  19-21  result of an oil change that results in the generation of a used
  19-22  oil filter under 40 CFR Section 261.4(b)(13).
  19-23        SECTION 7.  Section 371.042, Health and Safety Code, is
  19-24  amended to read as follows:
  19-25        Sec. 371.042.  Criminal Penalties.  (a)  Except as provided
  19-26  by Subsection (b), an offense under Section 371.041 is punishable
  19-27  by:
   20-1              (1)  a fine of not less than $100 or more than $10,000
   20-2  for each act of violation or each day of a continuing violation;
   20-3              (2)  imprisonment for a term not to exceed five years;
   20-4  or
   20-5              (3)  both the fine and the imprisonment <a Class C
   20-6  misdemeanor>.
   20-7        (b)  If it is shown on the trial of an offense under Section
   20-8  371.041 that the defendant has previously been convicted of an
   20-9  offense under Section 371.041, the offense is punishable by:
  20-10              (1)  a fine of not less than $200 or more than $20,000
  20-11  for each act of violation or each day of a continuing violation;
  20-12              (2)  imprisonment for a term not to exceed 10 years; or
  20-13              (3)  both the fine and the imprisonment <a Class A
  20-14  misdemeanor>.
  20-15        SECTION 8.  Sections 371.043(c) and (d), Health and Safety
  20-16  Code, are amended to read as follows:
  20-17        (c)  The penalty imposed by this section does not apply to
  20-18  failure to pay a fee under Section 371.062 or failure to file a
  20-19  report under Section 371.024 <or 371.026>.
  20-20        (d)  The commission <department>, a local government in whose
  20-21  jurisdiction the violation occurs, or the state may bring suit to
  20-22  recover a penalty under this section.
  20-23        SECTION 9.  Sections 371.061(b)-(d), Health and Safety Code,
  20-24  are amended to read as follows:
  20-25        (b)  The fund consists of:
  20-26              (1)  fees collected under Sections 371.024, 371.025
  20-27  <371.026>, and 371.062;
   21-1              (2)  interest and penalties imposed under this chapter
   21-2  for late payment of fees, failure to file a report, or other
   21-3  violations of this chapter; and
   21-4              (3)  gifts, grants, donations, or other financial
   21-5  assistance the commission <department> is authorized to receive
   21-6  under Section 371.026 <371.027>.
   21-7        (c)  Except as provided by Subsection (d), the commission
   21-8  <department> may use money in the fund only for purposes authorized
   21-9  by this chapter, including:
  21-10              (1)  public education;
  21-11              (2)  grants to public and private do-it-yourselfer used
  21-12  oil collection centers;
  21-13              (3)  registration of do-it-yourselfer used oil
  21-14  collection centers and<,> used oil handlers other than generators
  21-15  <transporters, used oil marketers, and used oil recyclers>; and
  21-16              (4)  administrative costs of implementing this chapter,
  21-17  not to exceed 12 percent of the fund balance in any fiscal year.
  21-18        (d)  The commission <department> shall set aside <transfer>
  21-19  25 percent of the fees collected under Section 371.062 <to the
  21-20  Texas Water Commission> for the sole purpose of restoring the
  21-21  environmental quality of those sites in the state that the
  21-22  commission has identified as having been contaminated through
  21-23  improper used oil management and for which other funds from a
  21-24  potentially responsible party or the federal government are not
  21-25  sufficient.  This subsection expires on January 1, 1998 <1997>.
  21-26        SECTION 10.  Section 371.062, Health and Safety Code, is
  21-27  amended by amending Subsections (a), (b), (f), and (j) and adding
   22-1  Subsections (m)-(p) to read as follows:
   22-2        (a)  In this section:
   22-3              (1)  "Distributor" means a person who maintains a
   22-4  distribution center or warehouse in this state and annually exports
   22-5  from this state to a location outside this state more than 25,000
   22-6  gallons of automotive oil.
   22-7              (2)  "First sale" means the first actual sale of
   22-8  automotive oil delivered to a location in this state and sold to a
   22-9  purchaser who is not an automotive oil manufacturer.  The term does
  22-10  not include the sale of automotive oil exported from this state to
  22-11  a location outside this state for the purpose of sale or use
  22-12  outside this state.  This term does not include sales of automotive
  22-13  oils for resale to or use by vessels exclusively engaged in foreign
  22-14  or interstate commerce.
  22-15              (3) <(2)>  "Importer" means any person who imports or
  22-16  causes to be imported automotive oil into this state for sale, use,
  22-17  or consumption.
  22-18              (4) <(3)>  "Oil manufacturer" means any person or
  22-19  entity that formulates automotive oil and packages, distributes, or
  22-20  sells that automotive oil.  The term includes any person packaging
  22-21  or repackaging automotive oil.
  22-22        (b)  An oil manufacturer or distributor who makes a first
  22-23  sale of automotive oil is liable for a fee.
  22-24        (f)  Each oil manufacturer, distributor, or importer required
  22-25  to pay a fee under this section shall:
  22-26              (1)  prepare and maintain, on a form provided or
  22-27  approved by the comptroller, a report of each first sale or, in the
   23-1  case of an importer, the first receipt in Texas of automotive oil
   23-2  by the person and the price received;
   23-3              (2)  retain the invoice or a copy of the invoice or
   23-4  other appropriate record of the sale or receipt for four years from
   23-5  the date of sale or receipt; and
   23-6              (3)  on or before the 25th day of the month following
   23-7  the end of each calendar quarter, file a report with the
   23-8  comptroller and remit to the comptroller the amount of fees
   23-9  required to be paid for the preceding quarter.
  23-10        (j)  The fee imposed under this section is one cent <two
  23-11  cents> per quart or four <eight> cents per gallon of automotive
  23-12  oil.  <The department shall monitor the unobligated balance of the
  23-13  used oil recycling fund and shall adjust the fee rate to meet
  23-14  expenditure requirements of the used oil recycling program and to
  23-15  maintain an appropriate fund balance.  The fee imposed under this
  23-16  section may not exceed five cents per quart or 20 cents per gallon
  23-17  of automotive oil.  On or before September 1 of each year, the
  23-18  department and the comptroller jointly shall issue notice of the
  23-19  effective fee rate for the next fiscal year.>
  23-20        (m)  A distributor must obtain a permit from the comptroller.
  23-21  The comptroller shall adopt an application form for the permit,
  23-22  which must include:
  23-23              (1)  the name under which the applicant transacts or
  23-24  intends to transact business;
  23-25              (2)  the location of the applicant's distribution
  23-26  center or warehouse in this state;
  23-27              (3)  if the applicant is a corporation or partnership,
   24-1  the names of the principal officers of the corporation or of the
   24-2  members of the partnership and the address of each officer or
   24-3  member; and
   24-4              (4)  any other information required by the comptroller.
   24-5        (n)  The comptroller may deny or revoke a permit under
   24-6  Subsection (m) if false information is submitted on the application
   24-7  or on a required fuels tax report or supplement.
   24-8        (o)  A permit under Subsection (m) may not be assigned.
   24-9        (p)  The fee imposed under this section expires January 1,
  24-10  2000.
  24-11        SECTION 11.  (a)  The change in law made by this Act to
  24-12  Section 371.042, Health and Safety Code, applies only to an offense
  24-13  committed on or after the effective date of this Act.  For purposes
  24-14  of this section, an offense is committed before the effective date
  24-15  of this Act if any element of the offense occurs before that date.
  24-16        (b)  An offense committed before the effective date of this
  24-17  Act is covered by the law in effect when the offense was committed,
  24-18  and the former law is continued in effect for that purpose.
  24-19        SECTION 12.  (a)  Except as provided by Subsection (b) of
  24-20  this section, this Act takes effect September 1, 1995.
  24-21        (b)  Section 371.062(j), Health and Safety Code, as amended
  24-22  by this Act, takes effect January 1, 1996.
  24-23        SECTION 13.  The importance of this legislation and the
  24-24  crowded condition of the calendars in both houses create an
  24-25  emergency and an imperative public necessity that the
  24-26  constitutional rule requiring bills to be read on three several
  24-27  days in each house be suspended, and this rule is hereby suspended.