1-1  By:  Nixon                                            S.B. No. 1683
    1-2        (In the Senate - Filed April 27, 1995; April 28, 1995, read
    1-3  first time and referred to Committee on Natural Resources;
    1-4  May 8, 1995, reported adversely, with favorable Committee
    1-5  Substitute by the following vote:  Yeas 7, Nays 0; May 8, 1995,
    1-6  sent to printer.)
    1-7  COMMITTEE SUBSTITUTE FOR S.B. No. 1683              By:  Armbrister
    1-8                         A BILL TO BE ENTITLED
    1-9                                AN ACT
   1-10  relating to the collection, management, and recycling of used oil
   1-11  and used oil filters; providing penalties.
   1-12        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
   1-13        SECTION 1.  Section 371.001, Health and Safety Code, is
   1-14  amended to read as follows:
   1-15        Sec. 371.001.  SHORT TITLE.  This chapter may be cited as the
   1-16  Texas Used Oil Collection, Management, and Recycling Act.
   1-17        SECTION 2.  Section 371.002, Health and Safety Code, is
   1-18  amended to read as follows:
   1-19        Sec. 371.002.  FINDINGS.  The legislature finds that:
   1-20              (1)  when properly managed and recycled, used oil is a
   1-21  valuable energy resource<, the reuse of which may make a
   1-22  significant contribution toward energy efficiency and
   1-23  conservation>;
   1-24              (2)  used oil can be recycled into a number of
   1-25  different products;
   1-26              (3)  improper disposal of used oil is a significant
   1-27  environmental problem and a waste of a potentially valuable energy
   1-28  resource;
   1-29              (4)  there is a need for an expanded statewide network
   1-30  of used oil collection sites for private citizens who change their
   1-31  own motor oil;
   1-32              (5)  the private sector, with incentives, is best
   1-33  equipped to establish and operate used oil collection centers that
   1-34  are convenient for the public;
   1-35              (6)  the need for publicly operated used oil collection
   1-36  centers should diminish over time, and the need for publicly
   1-37  operated used oil collection centers is greatest in more sparsely
   1-38  populated areas of the state;
   1-39              (7)  the United States Environmental Protection Agency
   1-40  has issued final regulations that properly classify and regulate
   1-41  used oil and used oil filters in accordance with the Resource
   1-42  Conservation and Recovery Act of 1976 (42 U.S.C. Section 6901 et
   1-43  seq.);
   1-44              (8)  the current used oil and used oil filter program
   1-45  in this state imposes more stringent management requirements than
   1-46  the regulations of the United States Environmental Protection
   1-47  Agency;
   1-48              (9)  limited public money is needed to finance public
   1-49  and private infrastructure investments to collect, manage, and
   1-50  recycle used motor oil; and
   1-51              (10)  the used oil management standards in 40 C.F.R.
   1-52  Part 279 establish a balanced approach to the objectives of
   1-53  preserving a valuable resource and protecting the natural
   1-54  environment <recycling used oil to produce fuel requires
   1-55  significantly less energy than is needed to refine crude oil into
   1-56  fuel;>
   1-57              <(3)  millions of gallons of used oil generated each
   1-58  year by private citizens in the state are not available for
   1-59  recycling because of improper disposal practices and the lack of
   1-60  collection facilities;>
   1-61              <(4)  although there is a reliable system for the
   1-62  collection and recycling of used oil generated by business and
   1-63  industry, private citizens have only limited access to that system
   1-64  and often dispose of their used oil on land  or in landfills,
   1-65  sewers, drainage systems, septic tanks, surface waters or
   1-66  groundwaters, watercourses, or marine waters;>
   1-67              <(5)  improper disposal of this used oil is both a
   1-68  significant environmental problem and a waste of a valuable energy
    2-1  resource; and>
    2-2              <(6)  adequate public funds are required to provide for
    2-3  the proper collection, management, and recycling of used oil>.
    2-4        SECTION 3.  Subchapter A, Chapter 371, Health and Safety
    2-5  Code, is amended by adding Section 371.0025 to read as follows:
    2-6        Sec. 371.0025.  PURPOSE AND SCOPE.  (a)  The purposes of this
    2-7  chapter are to:
    2-8              (1)  ensure that this state's used oil program is
    2-9  consistent with and no more stringent than the federal program for
   2-10  the management of used oil under 40 C.F.R. Part 279; and
   2-11              (2)  establish a program to promote public and private
   2-12  do-it-yourselfer used oil collection centers.
   2-13        (b)  This chapter does not apply to used oil:
   2-14              (1)  generated in connection with activities regulated
   2-15  by the Railroad Commission of Texas under Chapter 91 or 141,
   2-16  Natural Resources Code, or Chapter 27, Water Code;
   2-17              (2)  introduced into crude oil pipelines or a petroleum
   2-18  refining facility exempted under 40 C.F.R. Section 279.10(g); or
   2-19              (3)  generated through other activities exempted under
   2-20  40 C.F.R. Parts 271 and 279.
   2-21        (c)  This chapter does not apply to a used oil filter
   2-22  generated in connection with activities regulated by the Railroad
   2-23  Commission of Texas under Chapter 91 or 141, Natural Resources
   2-24  Code, or Chapter 27, Water Code.
   2-25        SECTION 4.  Section 371.003, Health and Safety Code, is
   2-26  amended to read as follows:
   2-27        Sec. 371.003.  DEFINITIONS.  In this chapter:
   2-28              (1)  "Aboveground tank" means a tank used to store or
   2-29  process oil that is not an underground storage tank as defined by
   2-30  40 C.F.R. Section 280.12.
   2-31              (2)  "Automotive oil" means any lubricating oils
   2-32  intended for use in an internal combustion engine, crankcase,
   2-33  transmission, gear box, or differential for an automobile, bus, or
   2-34  truck.  The term includes oil that is not labeled specifically for
   2-35  that use but is suitable for that use according to generally
   2-36  accepted industry specifications.
   2-37              (3)  "Commission" <(2)  "Board" means the Texas Natural
   2-38  Resource Conservation Commission.>
   2-39              <(3)  "Department"> means the Texas Natural Resource
   2-40  Conservation Commission.
   2-41              (4)  "Container" means a portable device in which a
   2-42  material is stored, transported, treated, disposed of, or otherwise
   2-43  handled.
   2-44              (5)  "Do-it-yourselfer used oil collection center"
   2-45  means a site or facility that accepts or aggregates and stores used
   2-46  oil collected only from household do-it-yourselfers.
   2-47              (6)  "Existing tank" means a tank that is used for the
   2-48  storage or processing of used oil and that as of September 1, 1995,
   2-49  is in operation or is being installed.  A tank is being installed
   2-50  if the owner or operator has obtained all necessary federal, state,
   2-51  and local approvals or permits and:
   2-52                    (A)  a continuous on-site installation program
   2-53  has begun; or
   2-54                    (B)  the owner or operator has entered into
   2-55  contractual obligations for installation of the tank to be
   2-56  completed within a reasonable time and the obligations cannot be
   2-57  cancelled or modified without substantial loss.
   2-58              (7)  "Household do-it-yourselfer <(4)  "Do-it-yourself>
   2-59  (DIY) used oil" means <used> oil that is derived from a household,
   2-60  including used oil generated by an individual through the
   2-61  maintenance of the individual's personal vehicle or equipment
   2-62  <generated by a person who changes the person's own automotive
   2-63  oil>.
   2-64              (8)  "Household do-it-yourselfer used oil generator"
   2-65  means an individual who generates household do-it-yourselfer
   2-66  <(5)  "Generator" means a person whose act or process produces>
   2-67  used oil.
   2-68              (9)  "New tank" means a tank for the storage or
   2-69  processing of used oil the construction of which begins on or after
   2-70  September 1, 1995.
    3-1              (10)  "Petroleum refining facility" means an
    3-2  establishment primarily engaged in producing gasoline, kerosene,
    3-3  distillate fuel oils, residual fuel oils, and lubricants through
    3-4  fractionation, straight distillation of crude oil, redistillation
    3-5  of unfinished petroleum derivatives, cracking, or other processes.
    3-6              (11)  "Processing" means chemical or physical
    3-7  operations designed to produce from used oil, or to make used oil
    3-8  more amenable for production of, fuel oils, lubricants, or other
    3-9  used-oil-derived products, including blending used oil with virgin
   3-10  petroleum products, blending used oils to meet fuel specifications,
   3-11  filtration, simple distillation, chemical or physical separation,
   3-12  and rerefining <(6)  "Public used oil collection center" means:>
   3-13                    <(A)  an automotive service facility that in the
   3-14  course of business accepts for recycling small quantities of used
   3-15  oil from private citizens;>
   3-16                    <(B)  a facility that stores used oil in
   3-17  aboveground tanks and in the course of business accepts for
   3-18  recycling small quantities of used oil from private citizens; and>
   3-19                    <(C)  a publicly sponsored collection facility
   3-20  that is designated and authorized by the department to accept for
   3-21  recycling small quantities of used oil from private citizens>.
   3-22              (12) <(7)>  "Reclaiming" means processing material to
   3-23  recover a usable product or regenerating material, including
   3-24  recovering lead from a spent battery and regenerating spent
   3-25  solvents <using methods, other than rerefining, to remove insoluble
   3-26  impurities from used oil and making the used oil suitable for
   3-27  further use as a lubricant or petroleum product.  The term includes
   3-28  settling, heating, dehydration, filtration, or centrifuging>.
   3-29              (13) <(8)>  "Recycling" means:
   3-30                    (A)  preparing used oil for reuse as a petroleum
   3-31  product by rerefining, reclaiming, or other means; <or>
   3-32                    (B)  using used oil as a lubricant or petroleum
   3-33  product instead of using a petroleum product made from new oil; or
   3-34                    (C)  burning used oil for energy recovery.
   3-35              (14) <(9)>  "Rerefining" means applying <refining>
   3-36  processes to material composed primarily of used oil to produce
   3-37  high-quality base stocks for lubricants or other petroleum
   3-38  products, including settling, filtering, catalytic conversion,
   3-39  fractional/vacuum distillation, hydrotreating, or polishing.
   3-40              (15)  "Rerefining distillation bottoms" means the heavy
   3-41  fraction of filtered and dehydrated used oil produced by vacuum
   3-42  distillation.  The composition of still bottoms varies with column
   3-43  operation and feedstock.
   3-44              (16)  "Tank" means a stationary device designed to
   3-45  contain an accumulation of used oil that is constructed primarily
   3-46  of nonearthen materials that provide structural support, including
   3-47  wood, concrete, steel, and plastic.
   3-48              (17) <(10)>  "Used oil" means <any> oil that has been
   3-49  refined from crude oil, or <a> synthetic oil, that as a result of
   3-50  use has been contaminated by physical or chemical impurities<, as a
   3-51  result of use, storage, or handling, has become unsuitable for its
   3-52  original purpose because of impurities or the loss of original
   3-53  properties, but that may be suitable for further use and is
   3-54  recyclable>.
   3-55              (18)  "Used oil aggregation point" means a site or
   3-56  facility that accepts, aggregates, or stores used oil collected
   3-57  from:
   3-58                    (A)  used oil generation sites owned or operated
   3-59  by the owner or operator of the used oil aggregation point and
   3-60  transported to the used oil aggregation point in shipments of not
   3-61  more than 55 gallons; or
   3-62                    (B)  household do-it-yourselfers.
   3-63              (19)  "Used oil burner" means a facility in which used
   3-64  oil not meeting the specifications in 40 C.F.R. Section 279.11 is
   3-65  burned for energy recovery in a device listed in 40 C.F.R. Section
   3-66  279.61(a).
   3-67              (20)  "Used oil collection center" means a site or
   3-68  facility that is registered by the commission to manage used oil
   3-69  and that accepts, aggregates, or stores used oil collected from:
   3-70                    (A)  used oil generators regulated under 40
    4-1  C.F.R. Part 279, Subpart C, who transport used oil to the used oil
    4-2  collection center in shipments of not more than 55 gallons under 40
    4-3  C.F.R. Section 279.24; or
    4-4                    (B)  household do-it-yourselfers.
    4-5              (21)  "Used oil filter" means a non-terne-plated oil
    4-6  filter that as a result of its use, storage, or handling has become
    4-7  contaminated by physical or chemical impurities and has been
    4-8  removed from service.  The term does not include a used oil filter:
    4-9                    (A)  that remains with an engine block that is
   4-10  recycled, as defined by Section 361.421; or
   4-11                    (B)  diverted for recycling, as defined by
   4-12  Section 361.421, that has been processed:
   4-13                          (i)  by draining and compressing with a
   4-14  force sufficient to remove 80 percent of the oil weight remaining
   4-15  in the filter;
   4-16                          (ii)  by separating, including dismantling,
   4-17  shredding, or any other acceptable procedure that separates the
   4-18  whole filter into its components;
   4-19                          (iii)  in accordance with a standard
   4-20  approved in writing by the executive director of the commission; or
   4-21                          (iv)  in accordance with the requirements
   4-22  of 40 C.F.R. Section 261.4(b)(13).
   4-23              (22)  "Used oil fuel marketer" means a person who:
   4-24                    (A)  directs a shipment of used oil not meeting
   4-25  the specifications in 40 C.F.R. Section 279.11 from the person's
   4-26  facility to a used oil burner; or
   4-27                    (B)  first claims that used oil to be burned for
   4-28  energy recovery meets the used oil specifications in 40 C.F.R.
   4-29  Section 279.11.
   4-30              (23)  "Used oil generator" means a person, by site,
   4-31  whose act or process:
   4-32                    (A)  produces used oil; or
   4-33                    (B)  first causes used oil to become subject to
   4-34  regulation.
   4-35              (24)  "Used oil processor or rerefiner" means a
   4-36  facility that processes used oil.
   4-37              (25)  "Used oil transfer facility" means a
   4-38  transportation-related facility, including a loading dock, parking
   4-39  area, storage area, or other area, where shipments of used oil are
   4-40  held for more than 24 hours and not more than 35 days during the
   4-41  normal course of transportation or before an activity performed
   4-42  under 40 C.F.R. Section 279.20(b)(2) takes place.
   4-43              (26)  "Used oil transporter" means a person who:
   4-44                    (A)  transports used oil; or
   4-45                    (B)  owns or operates a used oil transfer
   4-46  facility.
   4-47        SECTION 5.  Subchapter B, Chapter 371, Health and Safety
   4-48  Code, is amended to read as follows:
   4-49               SUBCHAPTER B.  USED OIL RECYCLING PROGRAM
   4-50        Sec. 371.021.  PUBLIC EDUCATION.  The commission <department>
   4-51  shall conduct an education program to inform the public of the need
   4-52  for and benefits of the collection and recycling of used oil and
   4-53  used oil filters.  The program shall:
   4-54              (1)  establish, maintain, and publicize a used oil
   4-55  information center that prepares and disperses materials and
   4-56  information explaining laws and rules regulating used oil and
   4-57  informing the public of places and methods for proper recycling of
   4-58  used oil;
   4-59              (2)  encourage the voluntary establishment of used oil
   4-60  collection and recycling programs by private businesses and
   4-61  organizations and by local governments and provide technical
   4-62  assistance to persons who organize those programs; and
   4-63              (3)  encourage local governments to procure recycled
   4-64  automotive and industrial oils and oils blended with recycled oils,
   4-65  if those oils meet equipment manufacturer's specifications.
   4-66        Sec. 371.022.  NOTICE BY RETAIL DEALER.  A retail dealer who
   4-67  annually sells directly to the public more than 500 gallons of oil
   4-68  in containers for use off-premises shall post in a prominent place
   4-69  a sign provided by the commission:
   4-70              (1)  <department> informing the public that improper
    5-1  disposal of used oil is prohibited by law;
    5-2              (2)  containing instructions for disposal of used oil
    5-3  filters; and
    5-4              (3)  <.  The sign shall also> prominently displaying
    5-5  <display> the toll-free telephone number of the state used oil
    5-6  information center established under Section 371.021.
    5-7        Sec. 371.023.  GRANTS TO LOCAL GOVERNMENTS AND PRIVATE
    5-8  ENTITIES.  (a)  The commission <department> shall develop a grant
    5-9  program for local governments and private entities that encourages
   5-10  the collection, reuse, and recycling of household do-it-yourselfer
   5-11  (DIY) used oil.
   5-12        (b)  The commission may approve a <A> grant <may be made> for
   5-13  any project <approved by the department.  The department shall
   5-14  consider for grant assistance any local government project> that
   5-15  uses one or more of the following programs:
   5-16              (1)  curbside pickup of containers of household
   5-17  do-it-yourselfer (DIY) used oil by a local government or its
   5-18  representative;
   5-19              (2)  retrofitting of municipal solid waste equipment to
   5-20  facilitate curbside pickup of household do-it-yourselfer (DIY) used
   5-21  oil;
   5-22              (3)  establishment of do-it-yourselfer <publicly
   5-23  operated DIY> used oil collection centers at locations accessible
   5-24  to the public, including landfills, fire stations, retail stores,
   5-25  quick lubrication centers, and automobile repair shops <or other
   5-26  public places>;
   5-27              (4)  provision of containers and other materials and
   5-28  supplies that can be used to store household do-it-yourselfer (DIY)
   5-29  used oil for pickup or delivery to a do-it-yourselfer used oil
   5-30  collection center in an environmentally sound manner; and
   5-31              (5)  any other activity the advisory committee
   5-32  established under Subsection (e) <department> determines will
   5-33  encourage the proper recycling of household do-it-yourselfer (DIY)
   5-34  used oil.
   5-35        (c)  The commission shall appoint an advisory committee for
   5-36  the used oil grant program.  The advisory committee consists of
   5-37  nine members who serve at the pleasure of the commission and
   5-38  represent oil manufacturers as defined by Section 371.062, used oil
   5-39  collection centers, and local governments.  The advisory committee
   5-40  shall recommend criteria for grants and recommend grant recipients
   5-41  to the commission based on the used oil collection needs of this
   5-42  state.  The advisory committee members serve without compensation
   5-43  and are not entitled to reimbursement for expenses incurred in the
   5-44  performance of their duties.
   5-45        (d)  The commission <board> by rule shall establish
   5-46  procedures for the application for and criteria for the award of
   5-47  grants under this section.
   5-48        Sec. 371.024.  COLLECTION FACILITIES.  (a)  All appropriate
   5-49  businesses <that change motor oil for the public> and <all
   5-50  appropriate> government agencies are encouraged to serve as
   5-51  do-it-yourselfer <public> used oil collection centers and used oil
   5-52  collection centers.
   5-53        (b)  A do-it-yourselfer <public> used oil collection center
   5-54  and a used oil collection center <annually> shall:
   5-55              (1)  register biannually with the commission
   5-56  <department>; and
   5-57              (2)  report annually to the commission <department> the
   5-58  amounts of used oil collected by the center from the public.
   5-59        (c)  The commission <board> shall adopt rules governing the
   5-60  registration of and reporting by do-it-yourselfer <public> used oil
   5-61  collection centers and used oil collection centers.
   5-62        (d)  The commission <board> by rule shall adopt standards for
   5-63  managing and operating a do-it-yourselfer <public> used oil
   5-64  collection center or a used oil collection center.
   5-65        (e)  The commission <department> may impose a registration
   5-66  fee in an amount sufficient to cover the actual cost of registering
   5-67  do-it-yourselfer <public> used oil collection centers and used oil
   5-68  collection centers.  A private entity that serves voluntarily as a
   5-69  do-it-yourselfer used oil collection center is exempt from the
   5-70  registration fee.
    6-1        Sec. 371.0245.  REIMBURSEMENT OF USED OIL COLLECTION CENTER'S
    6-2  HAZARDOUS WASTE EXPENSE <CENTER>.  (a)  The commission, on proper
    6-3  application, shall reimburse the owner or operator of an eligible
    6-4  registered do-it-yourselfer <public> used oil collection center or
    6-5  a used oil collection center for costs associated with the
    6-6  collection center's disposal of:
    6-7              (1)  household do-it-yourselfer <do-it-yourself> (DIY)
    6-8  used oil collected by the collection center that, unknown to the
    6-9  center at the time of collection, contains hazardous wastes or is
   6-10  unfit for recycling;
   6-11              (2)  household do-it-yourselfer (DIY) used oil
   6-12  collected by the collection center that has been commingled with
   6-13  DIY oils described in Subdivision (1) and is unsuitable for
   6-14  recycling; or
   6-15              (3)  contaminated used oil left at the collection
   6-16  center as used oil after posted business hours and without the
   6-17  knowledge of the collection center.
   6-18        (b)  A registered do-it-yourselfer <public> used oil
   6-19  collection center is eligible for reimbursement if it demonstrates
   6-20  to the satisfaction of the commission that:
   6-21              (1)  the center has established procedures to minimize
   6-22  the risk that the center will mix the used oil the center generates
   6-23  or collects from the public <will not be mixed> with hazardous
   6-24  wastes, especially halogenated wastes;
   6-25              (2)  the center accepts not more than five gallons of
   6-26  used oil from any person at any one time; and
   6-27              (3)  the center can document to the satisfaction of the
   6-28  commission the volume of used oil the center collects from the
   6-29  public during any <a> period under review by:
   6-30                    (A)  providing a process by which all individuals
   6-31  leaving household  do-it-yourselfer <do-it-yourself> (DIY) used oil
   6-32  at the center are required to provide <log> their names, addresses,
   6-33  and the approximate amounts of used oil brought to the collection
   6-34  center <and ensuring that all do-it-yourself (DIY) used oil
   6-35  collected is kept in a separate sealed and labeled container placed
   6-36  on an impermeable surface>; or
   6-37                    (B)  another method approved by the commission.
   6-38        (c)  For the purpose of Subsection (b)(2), the owner or
   6-39  operator of a registered do-it-yourselfer <public> used oil
   6-40  collection center may presume that a quantity of not more than five
   6-41  gallons of used oil collected from a member of the public is not
   6-42  mixed with a hazardous substance<,> if the owner or operator acts
   6-43  in good  faith <and> in the belief the oil is generated from the
   6-44  individual's personal activity.
   6-45        (d)  In any state fiscal year, a registered do-it-yourselfer
   6-46  <public> used oil collection center may not be reimbursed for more
   6-47  than $7,500 <$5,000> in total eligible disposal costs, subject to
   6-48  Section 371.0246(d).
   6-49        (e)  Reimbursements <A reimbursement> made under this section
   6-50  shall <may> be paid out of the used oil recycling fund and may not
   6-51  <to> exceed an aggregate amount of $500,000 each fiscal year.
   6-52        Sec. 371.0246.  Procedures for Reimbursement.  (a)  An owner
   6-53  or operator of a registered do-it-yourselfer <public> used oil
   6-54  collection center may apply for reimbursement from the commission.
   6-55        (b)  An application for reimbursement shall be submitted
   6-56  <filed> on a form approved or provided by the commission.
   6-57        (c)  An application must contain:
   6-58              (1)  the name, address, and telephone number of the
   6-59  applicant;
   6-60              (2)  the name, mailing address, location address, and
   6-61  commission registration number of the registered do-it-yourselfer
   6-62  <public> used oil collection center from which the contaminated oil
   6-63  was removed;
   6-64              (3)  the name, address, telephone number, and
   6-65  commission registration number of the hazardous waste transporter
   6-66  used to dispose of the contaminated used oil;
   6-67              (4)  a copy of any <the signed uniform hazardous waste>
   6-68  manifest or shipping documents that accompanied the transportation
   6-69  of the shipment of used oil;
   6-70              (5)  a copy of each invoice for which reimbursement is
    7-1  requested and evidence that the amount shown on the invoice has
    7-2  been paid in full<, which may be> in the form of:
    7-3                    (A)  canceled checks;
    7-4                    (B)  business receipts from the person who
    7-5  performed the work; or
    7-6                    (C)  other documentation approved by the
    7-7  commission;
    7-8              (6)  a waste-characterization or similar documentation
    7-9  required before acceptance of a hazardous waste by the disposal
   7-10  facility that accepted the contaminated used oil for treatment or
   7-11  disposal; and
   7-12              (7)  any other information that the executive director
   7-13  may reasonably require.
   7-14        (d)  All claims for reimbursement filed under this section
   7-15  and Section 371.0245 are subject to funds available for
   7-16  disbursement <the availability of money> in the used oil recycling
   7-17  fund and to Section 371.0245(e).  This subchapter does not create
   7-18  an entitlement to money in the used oil recycling fund or any other
   7-19  fund.
   7-20        Sec. 371.025.  Limitation of Liability.   (a)  A person may
   7-21  not recover from the owner, operator, or lessor of a registered
   7-22  public used oil collection center any damages or costs of response
   7-23  actions at another location resulting from a release or threatened
   7-24  release of used oil collected at the center if:
   7-25              (1)  the owner, operator, or lessor of the collection
   7-26  center does not mix the used oil collected with any hazardous waste
   7-27  or polychlorinated biphenyls (PCBs);
   7-28              (2)  the owner, operator, or lessor of the collection
   7-29  center does not accept used oil that the owner, operator, or lessor
   7-30  knows contains hazardous waste or PCBs; and
   7-31              (3)  the collection center is in compliance with
   7-32  management standards adopted by the department.
   7-33        (b)  For purposes of this section, the owner, operator, or
   7-34  lessor of a public used oil collection center may presume that a
   7-35  quantity of less than five gallons of used oil accepted at any one
   7-36  time from any member of the public is not mixed with a hazardous
   7-37  waste or PCBs, provided that the owner, operator, or lessor acts in
   7-38  good faith.
   7-39        (c)  This section applies only to activities directly related
   7-40  to the collection of used oil by a public used oil collection
   7-41  center.  This section does not apply to grossly negligent
   7-42  activities related to the operation of a used oil collection
   7-43  center.
   7-44        (d)  This section does not affect or modify the obligations
   7-45  or liability of any person other than the owner, operator, or
   7-46  lessor of the collection center under any other provisions of state
   7-47  or federal law, including common law, for injury or damage
   7-48  resulting from a release of used oil or hazardous substances.
   7-49        (e)  This section does not affect or modify the obligations
   7-50  or liability of any owner, operator, or lessor of a collection
   7-51  center with regard to services other than accepting used oil from
   7-52  the public.
   7-53        Sec. 371.026.  REGISTRATION OF <PERSONS TRANSPORTING,
   7-54  MARKETING, OR RECYCLING> USED OIL HANDLERS OTHER THAN GENERATORS.
   7-55  (a)  <A person who transports over public highways of this state
   7-56  more than 500 gallons of used oil annually, who markets more than
   7-57  500 gallons of used oil annually, or who recycles more than 10,000
   7-58  gallons of used oil annually shall register annually with the
   7-59  department on forms prescribed by the department and in accordance
   7-60  with board rules.>
   7-61        <(b)  The department shall develop a registration program for
   7-62  transporters, marketers, and recyclers of used oil.>
   7-63        <(c)>  The commission <board> shall adopt rules governing
   7-64  registration and reporting of used oil handlers other than
   7-65  generators <transporters, marketers, and recyclers>.  The rules
   7-66  shall require that a used oil handler other than a generator
   7-67  <transporter, marketer, or recycler>:
   7-68              (1)  register biannually <annually> with the commission
   7-69  <department>;
   7-70              (2)  report annually the sources of used oil handled
    8-1  <transported, marketed, or recycled> during the preceding year, the
    8-2  quantity of used oil received, the date of receipt, and the
    8-3  destination or end use of the used oil;
    8-4              (3)  provide evidence of familiarity with applicable
    8-5  state laws and rules and management procedures applicable to used
    8-6  oil handling <transportation, marketing, or recycling>; and
    8-7              (4)  provide proof of liability insurance or other
    8-8  evidence of financial responsibility for any liability that may be
    8-9  incurred in handling <transporting, marketing, or recycling> used
   8-10  oil.
   8-11        (b) <(d)>  The commission <board> by rule shall adopt
   8-12  reasonable management and safety standards for the handling
   8-13  <transportation, marketing, and recycling> of used oil.
   8-14        (c) <(e)>  The commission <department> may impose a
   8-15  registration fee in an amount sufficient to cover the actual cost
   8-16  of registering used oil handlers other than generators
   8-17  <transporters, marketers, and recyclers>.
   8-18        (d)  A used oil transporter may consolidate or aggregate
   8-19  loads of used oil for purposes of transportation but may not
   8-20  process used oil, except that a used oil transporter may conduct
   8-21  incidental processing operations, including settling and water
   8-22  separation, that occur in the normal course of the transportation
   8-23  of used oil but that are not designed to produce, or make more
   8-24  amenable for the production of, used-oil-derived products or used
   8-25  oil fuel.  <(f)  A utility or industrial generator of used oil that
   8-26  transports its own used oil from one generator-owned or
   8-27  generator-operated facility to another or that recycles its own
   8-28  used oil for use in its operations is not required to register or
   8-29  report under this section.>
   8-30        Sec. 371.027.  Gifts and Grants.  The commission <department>
   8-31  may apply for, request, solicit, contract for, receive, and accept
   8-32  gifts, grants, donations, and other assistance from any source to
   8-33  carry out its powers and duties under this chapter.
   8-34        Sec. 371.028.  RULES.  Not later than January 1, 1996, the
   8-35  commission shall adopt rules, standards, and procedures necessary
   8-36  to implement the used oil program established by this chapter.  The
   8-37  rules, standards, and procedures must be consistent with the used
   8-38  oil management standards under 40 C.F.R. Part 279.  <The board may
   8-39  adopt any rules necessary to carry out the purposes of this
   8-40  chapter.>
   8-41        SECTION 6.  Subsections (b), (c), and (d), Section 371.041,
   8-42  Health and Safety Code, are amended to read as follows:
   8-43        (b)  A person commits an offense if the person:
   8-44              (1)  intentionally discharges used oil into a sewer,
   8-45  drainage system, septic tank, surface water or groundwater,
   8-46  watercourse, or marine water;
   8-47              (2)  knowingly mixes or commingles used oil with
   8-48  <solid> waste that is to be disposed of in landfills or directly
   8-49  disposes of used oil on land <or in landfills>;
   8-50              (3)  knowingly transports, treats, stores, disposes,
   8-51  recycles, causes to be transported, or otherwise handles any
   8-52  <intentionally mixes or commingles used oil with hazardous waste or
   8-53  other hazardous substances or PCBs;>
   8-54              <(4)  transports, markets, or recycles> used oil within
   8-55  the state without first complying with the registration
   8-56  requirements of Section 371.026 and rules adopted under that
   8-57  section;
   8-58              (4)  intentionally <(5)>  applies used oil to roads or
   8-59  land for dust suppression, weed abatement, or other similar uses
   8-60  that introduce used oil into the environment; <or>
   8-61              (5) <(6)>  violates an order of the commission
   8-62  <department> to cease and desist any activity prohibited by this
   8-63  section or any rule applicable to a prohibited activity; or
   8-64              (6)  makes any false statement or representation in any
   8-65  application, label, manifest, record, report, permit, or other
   8-66  document filed, maintained, or used for purposes of program
   8-67  compliance.
   8-68        (c)  It is an exception to the application of Subsection (b)
   8-69  if a person unknowingly disposes into the environment <a landfill>
   8-70  any used oil that has not been properly segregated or separated by
    9-1  the generator from other solid wastes.
    9-2        (d)  It is an exception to the application of Subsection
    9-3  (b)(2) if the mixing or commingling of used oil with <solid> waste
    9-4  that is to be disposed of in landfills is incident to and the
    9-5  unavoidable result of the mechanical shredding of motor vehicles,
    9-6  appliances, or other items of scrap, used, or obsolete metals.
    9-7        SECTION 7.  Section 371.042, Health and Safety Code, is
    9-8  amended to read as follows:
    9-9        Sec. 371.042.  CRIMINAL PENALTIES.  (a)  Except as provided
   9-10  by Subsection (b), an offense under Section 371.041 is punishable
   9-11  by:
   9-12              (1)  a fine of not less than $100 or more than $10,000
   9-13  for each act of violation or each day of a continuing violation;
   9-14              (2)  imprisonment for a term not to exceed five years;
   9-15  or
   9-16              (3)  both the fine and the imprisonment <a Class C
   9-17  misdemeanor>.
   9-18        (b)  If it is shown on the trial of an offense under Section
   9-19  371.041 that the defendant has previously been convicted of an
   9-20  offense under Section 371.041, the offense is punishable by:
   9-21              (1)  a fine of not less than $200 or more than $20,000
   9-22  for each act of violation or each day of a continuing violation;
   9-23              (2)  imprisonment for a term not to exceed 10 years; or
   9-24              (3)  both the fine and the imprisonment <a Class A
   9-25  misdemeanor>.
   9-26        SECTION 8.  Subsections (c) and (d), Section 371.043, Health
   9-27  and Safety Code, are amended to read as follows:
   9-28        (c)  The penalty imposed by this section does not apply to
   9-29  failure to pay a fee under Section 371.062 or failure to file a
   9-30  report under Section 371.024 <or 371.026>.
   9-31        (d)  The commission <department>, a local government in whose
   9-32  jurisdiction the violation occurs, or the state may bring suit to
   9-33  recover a penalty under this section.
   9-34        SECTION 9.  Subsections (b), (c), and (d), Section 371.061,
   9-35  Health and Safety Code, are amended to read as follows:
   9-36        (b)  The fund consists of:
   9-37              (1)  fees collected under Sections 371.024, 371.026,
   9-38  and 371.062;
   9-39              (2)  interest and penalties imposed under this chapter
   9-40  for late payment of fees, failure to file a report, or other
   9-41  violations of this chapter; and
   9-42              (3)  gifts, grants, donations, or other financial
   9-43  assistance the commission <department> is authorized to receive
   9-44  under Section 371.027.
   9-45        (c)  Except as provided by Subsection (d), the commission
   9-46  <department> may use money in the fund only for purposes authorized
   9-47  by this chapter, including:
   9-48              (1)  public education;
   9-49              (2)  grants to public and private do-it-yourselfer used
   9-50  oil collection centers; and
   9-51              (3)  registration of do-it-yourselfer used oil
   9-52  collection centers and<,> used oil handlers other than generators
   9-53  <transporters, used oil marketers, and used oil recyclers; and>
   9-54              <(4)  administrative costs of implementing this
   9-55  chapter>.
   9-56        (d)  The commission <department> shall set aside <transfer>
   9-57  25 percent of the fees collected under Section 371.062 <to the
   9-58  Texas Water Commission> for the sole purpose of restoring the
   9-59  environmental quality of those sites in the state that the
   9-60  commission has identified as having been contaminated through
   9-61  improper used oil management and for which other funds from a
   9-62  potentially responsible party or the federal government are not
   9-63  sufficient.  This subsection expires on January 1, 1998 <1997>.
   9-64        SECTION 10.  Section 371.062, Health and Safety Code, is
   9-65  amended by amending Subsections (a), (b), (f), and (j) and by
   9-66  adding Subsections (m), (n), and (o) to read as follows:
   9-67        (a)  In this section:
   9-68              (1)  "Distributor" means a person who maintains a
   9-69  distribution center or warehouse in this state and annually exports
   9-70  from this state to a location outside this state more than 25,000
   10-1  gallons of automotive oil.
   10-2              (2)  "First sale" means the first actual sale of
   10-3  automotive oil delivered to a location in this state and sold to a
   10-4  purchaser who is not an automotive oil manufacturer.  The term does
   10-5  not include the sale of automotive oil:
   10-6                    (A)  exported from this state to a location
   10-7  outside this state for the purpose of sale or use outside this
   10-8  state;
   10-9                    (B)  <.  This term does not include sales of
  10-10  automotive oils> for resale to or use by vessels exclusively
  10-11  engaged in foreign or interstate commerce;
  10-12                    (C)  to a subsequent purchaser who maintains a
  10-13  do-it-yourselfer used oil collection center registered by the
  10-14  commission at the location where the automotive oil is changed,
  10-15  used, consumed, or resold to do-it-yourselfers; or
  10-16                    (D)  to the United States government.
  10-17              (3) <(2)>  "Importer" means any person who imports or
  10-18  causes to be imported automotive oil into this state for sale, use,
  10-19  or consumption.
  10-20              (4) <(3)>  "Oil manufacturer" means any person or
  10-21  entity that formulates automotive oil and packages, distributes, or
  10-22  sells that automotive oil.  The term includes any person packaging
  10-23  or repackaging automotive oil.
  10-24        (b)  An oil manufacturer or distributor who makes a first
  10-25  sale of automotive oil is liable for a fee.
  10-26        (f)  Each oil manufacturer, distributor, or importer required
  10-27  to pay a fee under this section shall:
  10-28              (1)  prepare and maintain, on a form provided or
  10-29  approved by the comptroller, a report of each first sale or, in the
  10-30  case of an importer, the first receipt in Texas of automotive oil
  10-31  by the person and the price received;
  10-32              (2)  retain the invoice or a copy of the invoice or
  10-33  other appropriate record of the sale or receipt for four years from
  10-34  the date of sale or receipt; and
  10-35              (3)  on or before the 25th day of the month following
  10-36  the end of each calendar quarter, file a report with the
  10-37  comptroller and remit to the comptroller the amount of fees
  10-38  required to be paid for the preceding quarter.
  10-39        (j)  The fee imposed under this section is one cent <two
  10-40  cents> per quart or four <eight> cents per gallon of automotive
  10-41  oil.  <The department shall monitor the unobligated balance of the
  10-42  used oil recycling fund and shall adjust the fee rate to meet
  10-43  expenditure requirements of the used oil recycling program and to
  10-44  maintain an appropriate fund balance.  The fee imposed under this
  10-45  section may not exceed five cents per quart or 20 cents per gallon
  10-46  of automotive oil.  On or before September 1 of each year, the
  10-47  department and the comptroller jointly shall issue notice of the
  10-48  effective fee rate for the next fiscal year.>
  10-49        (m)  A distributor must obtain a permit from the comptroller.
  10-50  The comptroller shall adopt an application form for the permit,
  10-51  which must include:
  10-52              (1)  the name under which the applicant transacts or
  10-53  intends to transact business;
  10-54              (2)  the location of the applicant's distribution
  10-55  center or warehouse in this state;
  10-56              (3)  if the applicant is a corporation or partnership,
  10-57  the names of the principal officers of the corporation or of the
  10-58  members of the partnership and the address of each officer or
  10-59  member; and
  10-60              (4)  any other information required by the comptroller.
  10-61        (n)  The comptroller may deny or revoke a permit under
  10-62  Subsection (m) if false information is submitted on the application
  10-63  or on a required fuels tax report or supplement.
  10-64        (o)  A permit under Subsection (m) may not be assigned.
  10-65        SECTION 11.  (a)  The change in law made by this Act to
  10-66  Section 371.042, Health and Safety Code, applies only to an offense
  10-67  committed on or after the effective date of this Act.  For purposes
  10-68  of this section, an offense is committed before the effective date
  10-69  of this Act if any element of the offense occurs before that date.
  10-70        (b)  An offense committed before the effective date of this
   11-1  Act is covered by the law in effect when the offense was committed,
   11-2  and the former law is continued in effect for that purpose.
   11-3        SECTION 12.  (a)  Except as provided by Subsection (b) of
   11-4  this section, this Act takes effect September 1, 1995.
   11-5        (b)  Subsection (j), Section 371.062, Health and Safety Code,
   11-6  as amended by this Act, takes effect January 1, 1996.
   11-7        SECTION 13.  The importance of this legislation and the
   11-8  crowded condition of the calendars in both houses create an
   11-9  emergency and an imperative public necessity that the
  11-10  constitutional rule requiring bills to be read on three several
  11-11  days in each house be suspended, and this rule is hereby suspended.
  11-12                               * * * * *