ACG H.B. 3274 75(R)BILL ANALYSIS


ENVIRONMENTAL REGULATION
C.S.H.B. 3274
By: Howard
4-18-97
Committee Report (Substituted)



BACKGROUND 

Texas has maintained a ban on placing used oil filters in landfills since
1992.  The Texas Natural Resource Conservation Commission (commission)
wrote extensive rules in an attempt to insure compliance with the landfill
ban. These rules are the strictest in the United States and far exceeded
federal standards.  In 1995 the legislature passed a reform of the used
oil recycling program (74R, 
SB 1683), which contained a statutory directive to maintain the existing
landfill ban on oil filters. During floor debate a legislative intent
statement was entered into the record to maintain the administrative rules
that were first implemented in 1991 (TAC 330.1180-1189) dealing with used
oil filters.  These stringent rules may have had unintended consequences.
Auto and lube shops which were once able to sell barrels of used oil
filters for a nominal fee to several industries which used the filters as
feedstock had to begin paying significant fees to have the filters taken
to one of the facilities which could comply with the used oil filter
management standards. 

There are several possible end uses for used oil filters. However, with
current management standards, only a limited number of processes are able
to meet the standards. 

PURPOSE

The purpose of this act is to give specific statutory guidance to
standards for regulating the collection, management, and processing of
used oil filters. While maintaining a ban on placing used oil filters in
landfills, this act would insure that standards are written to maximize
the number of end users willing to accept used oil filters as feedstock
for finished products or for use in energy recovery. 

RULEMAKING AUTHORITY

It is the committee's opinion that though this bill does not expressly
grant any new rulemaking authority to a state officer, department, agency
or institution, the bill refers to rulemaking authority of the Texas
Natural Resources Conservation Commission in SECTION 5 of the bill [Sec.
371.083(3)(B), Health and Safety Code.] 


SECTION BY SECTION ANALYSIS

SECTION 1. Amends Health and Safety Code, Section 371.001 by changing the
Section heading to reflect the addition of used oil filters. 

SECTION 2. Amends Health and Safety Code, Section 371.001 by changing the
short title to reflect the addition of used oil filters. 

SECTION 3. Amends Health and Safety Code, Section 371.0025(c) by
stipulating that this chapter does not apply to a used oil filter
generated in connection with activities regulated by the Railroad
Commission (RRC) under Chapters 131 and 134, Natural Resources Code, or
regulated by the Public Utilities Commission (PUC) under the Public
Utility Regulatory Act of 1995.  Requires a registered processor to
process a filter regulated by the RRC or the PUC in accordance with the
regulations of the applicable agency. 

 SECTION 4. Amends Health and Safety Code, Section 371.0246(c) by
clarifying that the executive director referred to is the director of the
commission. 

SECTION 5. Amends Health and Safety Code, Chapter 371 by adding a new
Subchapter E as follows: 
 Sec. 371.081(a) specifies to whom this subchapter applies.
 Sec. 371.081(b) Other than the ban on placing used oil filters into a
landfill, end users of used oil filters are exempt from this subchapter. 

 Section 371.082 defines the following terms:
 (1) "Bulk filter container" means a container that is approved by the
commission, has a capacity of more than 55 gallons, and is a part of an
integrated system. 
 (2)  An "end user" is one who uses a processed used oil filters or its
components in the manufacture of finished products or uses a processed
used oil filters or its components for energy recovery. 
 (3) "Free-flowing oil" means a noticeable stream of oil that exits a used
oil filter when the filter is lifted. 
 (4) "Household do-it-yourselfer used oil filter" is a used filter that is
generated through the maintenance of an individual's personal equipment.  
 (5) "Household do-it-yourselfer used oil filter generator" is the person
who generates a household do-it-yourselfer used oil filter. 
 (6) "Oil filter" is the part of an engine system designed to remove
contaminants from the flowing oil within the system. 
 (7) "Processing" is a method that separates free-flowing oil and the
components of a used oil filter from a whole filter. 
 (8) "Processor" is the person engaged in processing.
 (9) "Terne" means an alloy of tin and lead. 
 (10) "Transfer facility" means a facility that holds used oil filters
during transportation for more than two working days. 
 (11) "Transporter" means a person who is engaged in the off-site
transportation of used oil filters. 
 (12)  "Used oil filter" is an oil filter detached from an engine system
after being used. 
 (13) "Used oil filter collection center" is a facility that accepts
household do-it-yourself used oil filters. Facilities can be public or
privately owned service centers or other businesses that store used
filters in above-ground containers. 
 (14) "Used oil filter component" includes the filter media and metal
housing of a used oil filter. 
 (15) "Used oil filter generator" is one who in the course of business
produces used oil filters or first causes them to become subject to
regulation, but does not include a household do-ityourself used oil filter
generator. 

 Sec. 371.083 bans the generation, collection , transport, processing, or
recycling used oil filters in a manner that endangers the public or the
environment. Acts specifically banned include placing filters on land or
in a permitted landfill; collection, transporting, processing, or
recycling used oil filters without complying with the requirements of this
subsection or in violation of rules adopted by the commission; selling,
conveying, or otherwise transferring used oil filters to an end user or
disposal facility that has not been processed to the standards required of
the particular end use. 

 Sec. 371.084(a) requires used oil filter generators to remove
free-flowing oil.  Methods of removal include (1) puncturing and draining
while the filter is hot, (2) crushing and hot-draining, (3) dismantling
and hot-draining, (4) flushing, (5) other methods approved by the
commission. 
 Sec. 371.084(b) allows generators to process used oil filters on site to
an end user's specifications. 
 Sec. 371.084(c) requires containers for the storage or transportation of
used oil filters to be (1) securely closed, (2) waterproof, (3)
nonleaking, (4) in good condition, and (5) labeled "Used Oil Filters." 
 Sec. 371.084(d) limits on site storage to no more than two bulk fuel
containers, six or fewer containers that do not have an aggregate volume
of more than 330 gallons, or more than six  containers with commission
approval. 
 Sec. 371.084(e) allows a used oil filter generator to transport at one
time one bulk fuel container or five or fewer containers that do not have
an aggregate volume of more than 275 gallons without registering as a
transporter.  
 Sec. 371.084(f) allows generators to ship a used oil filter only to an
end user, registered processor, or transfer facility; or with prior
approval of the commission. 
 Sec. 371.084(g) stipulates requirements for used oil filter generators
who transport used oil filters. 

 Sec. 371.085(a) through (h) requires used oil filter collection centers
to register every other year with the commission and to report annually
the number of used oil filters collected and shipped, as well as the
destinations.  The standards applied to generators regarding draining oil,
containers for storing used oil filters, the number of filters that can be
stored or self transported,  are applied to used oil collection center
facilities.  
 Sec. 371.085(i) allows organizations to organize one-day special events
for the collection of used oil filters as long as the commission is given
30 day notice. Registration and reporting requirements do not apply to
these one-day collection events. 
 Sec. 371.085(j) requires facility which ceased to operate as a collection
center to notify the commission within 30 days. 

 Sec. 371.086 requires a person who transports or transfers used oil
filters to register every other year with the commission and to report
yearly to the commission the quantity, sources and dates received, and the
destinations of used oil filters. New transporters must register within 30
days of beginning operation. The transporter must ensure that (1) filters
are accompanied by proper shipping documents and the documents are
retained for three years and made available for inspection, (2) are
destined for a registered processor, an end user, or a permitted disposal
facility in the case of nonrecyclable filter components and (3) are
shipped in containers that are securely closed, waterproof, nonleaking,
and in good condition.  

 Sec. 371.087 requires processors to register with the commission every
other year and to report to the commission every year. A new processor
must register with the commission within 30 days of beginning operation.
Processors must keep records of the quantity of used oil filters received,
the sources and dates the used oil filters were received, and the
destinations of used oil filter components. The processor is required to
maintain on-site a copy of end user's acceptance standards and must retain
and make available for inspection copies of shipping documents relating to
all shipments for three years. Filters must be stored in containers that
are securely closed, waterproof, nonleaking, and in good condition.
Processors may not store on-site used oil filters or used oil filter
components for more than 90 days. 

SECTION 6. Repeals Chapter 361, Health and Safety Code, Sec. 361.432.

SECTION 7.Effective date of the act is September 1, 1997.

SECTION 8. Emergency clause.

COMPARISON OF ORIGINAL TO SUBSTITUTE

In addition to the substitute reorganizing some of the language from the
original bill,  the following changes are made: 

HB 3274 did not have exemptions for filters regulated by the RRC and the
PUC. 
CSHB 3274 expands exemptions to cover filters regulated by the RRC and the
PUC. 

CSHB 3274 expands the provisions to which end users are subject to include
not only the landfill ban, but the requirements for storage in containers.

CSHB 3274 adds definitions for the following: bulk filter container,
free-flowing oil, terne, transfer facility, and transporter.  The
substitute also revises the definitions for the following: end user,
processing, and used oil filter. 
 
HB 3274 does not specifically include parts facilities as possible
collection centers.   
CSHB 3274 specifically includes parts facilities as possible collection
centers.   

CSHB 3274 alters the prohibition from placing a used oil filter in a
landfill, so that placing (rather than just receiving) a filter in waste
intended for a landfill is a violation. The substitute also alters the
prohibition to insure that recyclable components of the oil filter, as
defined by the commission, are included in the ban. 

The substitute changes the storage limits for both generators and
collection centers so that they could have on site two bulk filter
containers, up to six 55 gallon drums, or more upon commission approval. 

The substitute changes the term "unprocessed filters" (as used in the
original) to "filters", so that the provisions apply to both processed and
unprocessed filters. 

HB 3274 allows a generator to self-transport filters if they are taking
them to a processor or an end user.  The substitute allows a generator to
self-transport filters to a processor, end user, or transfer facility.
Additionally, the substitute requires that the number of filters
transported by a generator be reported to the commission in the same way a
registered transporter reports. As well, the generator must comply with
federal and state transportation requirements.                            

CSHB 3274 changes reporting requirements of collection centers to include
that they report the destination of oil filters.  The substitute requires
a collection center which self-transports to comply with federal and state
transportation requirements. 

HB 3274 provides a 90 day time limit for transporters and processors to
register with the commission.  The substitute changes that time limit to
30 days. 

The substitute specifies a 30 day time limit which transporters or
transfer facilities can hold a filter.