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 * * * * *