Bill not drafted by TLC or Senate E&E.

      Line and page numbers may not match official copy.

      By Chisum                                       H.B. No. 2705

                                A BILL TO BE ENTITLED

 1-1                                   AN ACT

 1-2     relating to the voluntary cleanup program for solid and hazardous

 1-3     wastes.

 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

 1-5           SECTION 1.  Section 361.602, Health and Safety Code, is

 1-6     amended to read as follows:

 1-7           Section  361.602.  PURPOSE.  The purpose of the voluntary

 1-8     cleanup program is to provide incentive to remediate property by

 1-9     removing liability of lenders, [and] future landowners, who would

1-10     otherwise be a responsible party under Section 361.271 or

1-11     361.275(g). The program does not replace other voluntary actions

1-12     and is restricted to voluntary actions.

1-13           SECTION 2.  Sec. 361.603, Health and Safety Code, is amended

1-14     to read as follows:

1-15           (a)  Any site is eligible for participation in the voluntary

1-16     cleanup program except the portion of a site that is subject to a

1-17     commission permit or order.

1-18           (b)  A person electing to participate in the voluntary

1-19     cleanup program must:

1-20                 (1)  enter into a voluntary clean up agreement as

1-21     provided by Section 361.606; and

1-22                 (2)  pay all costs of commission oversight of the

1-23     voluntary cleanup.

1-24           (c)  Notwithstanding Subsection (a), the commission may

 2-1     transfer the site or portion of a site subject to a permit or order

 2-2     into the voluntary cleanup program at any time, subject to the

 2-3     negotiation of an agreement pursuant to Section 361.606, by

 2-4     dismissing the permit or order affecting a site or portion of a

 2-5     site.  Any administrative penalties that have been paid to the

 2-6     general revenue fund pursuant to the earlier order or permit

 2-7     affecting the site or portion of the site shall not be refunded.

 2-8           (d)  A person who is a responsible party under Section

 2-9     361.271 or 361.275(g) is eligible to participate in the voluntary

2-10     cleanup program, and will be released from further liability upon

2-11     the issuance of a certificate of completion pursuant to this

2-12     subchapter.

2-13           SECTION 3.  Sections 361.604(b) and (c), Health and Safety

2-14     Code, are amended to read as follows:

2-15           (b)  An application submitted under this section must:

2-16                 (1)  be on a form provided by the executive director;

2-17                 (2)  contain:

2-18                       (A)  general information concerning:

2-19                             (i)  the person and the person's

2-20     capability, including the person's financial capability, to perform

2-21     the voluntary cleanup; [and]

2-22                             (ii)  the site; and

2-23                             (iii)  the person's right to perform the

2-24     voluntary cleanup if the site is owned by a different person;

2-25                       (B)  other background information requested by

2-26     the executive director; and

2-27           (c)  an environmental assessment of the actual or threatened

2-28     release of the hazardous substance or contaminant at the site;

2-29                 (3)  be accompanied by an application fee of $1,000;

2-30     and

 3-1                 (4)  be submitted according to schedules set by

 3-2     commission rule.

 3-3           (c)  The environmental assessment required by Subsection (b)

 3-4     must include:

 3-5                 (1)  a legal description of the site;

 3-6                 (2)  a description of the physical characteristics of

 3-7     the site;

 3-8                 (3)  the operational history of the site to the extent

 3-9     that history is known by the applicant;

3-10                 (4)  information of which the applicant is aware

3-11     concerning the nature and extent of any relevant contamination or

3-12     release at the site and immediately contiguous to the site, or

3-13     wherever the contamination came to be located; [and]

3-14                 (5)  relevant information of which the applicant is

3-15     aware concerning the potential for human exposure to contamination

3-16     at the site; and

3-17                 (6)  information of any pending administrative, state,

3-18     or federal enforcement action of which the applicant is aware.

3-19           SECTION 4.  Section 361.605, Health and Safety Code, is

3-20     amended to read as follows:

3-21           (a)  The executive director may reject an application

3-22     submitted under Section 361.604 if:

3-23                 (1)  an administrative, state, or federal enforcement

3-24     action is pending that concerns the remediation of the hazardous

3-25     substance or contaminant described in the application;

3-26                 (2)  a federal grant requires an enforcement action at

3-27     the site;

3-28                 (3)  the application is not complete or accurate; or

3-29                 (4)  the site is ineligible under Section 361.603.

3-30           (b)  If an application is rejected because it is not complete

 4-1     or accurate, the executive director, not later than the 45th day

 4-2     after receipt of the application, shall provide the person with a

 4-3     list of all information needed to make the application complete or

 4-4     accurate.  A person may resubmit an application once without

 4-5     submitting an additional application fee if the person resubmits

 4-6     the application not later than the 45th day after the date the

 4-7     executive director issues notice that the application has been

 4-8     rejected.

 4-9           (c)  If the executive director rejects the application, the

4-10     executive director shall:

4-11                 (1)  notify the person that the application has been

4-12     rejected;

4-13                 (2)  explain the reasons for rejection of the

4-14     application; and

4-15                 (3)  inform the person that the commission will refund

4-16     half the person's application fee unless the person indicates a

4-17     desire to resubmit an application; and

4-18           (d)  If an application is rejected because of a pending

4-19     administrative, state, or federal enforcement action that concerns

4-20     the remediation of the hazardous substance or contaminant described

4-21     in the application, the applicant may resubmit the application upon

4-22     completion, termination, or dismissal of the enforcement action and

4-23     the site or portion of the site covered by an order issued as a

4-24     result of the enforcement action shall be eligible for

4-25     participation in the voluntary cleanup program for any remediation

4-26     that is necessary beyond the requirements of the enforcement order.

4-27           SECTION 5.  Sections 361.606(b) and (c), Health and Safety

4-28     Code, are amended to read as follows:

4-29           (b)  A voluntary cleanup agreement must provide for:

4-30                 (1)  recovery by the commission of all reasonable

 5-1     costs:

 5-2                       (A)  incurred by the commission in review and

 5-3     oversight of the person's work plan and reports and as a result of

 5-4     the commission's field activities;

 5-5                       (B)  attributable to the voluntary cleanup

 5-6     agreement; and

 5-7                       (C)  in excess of the amount of fees submitted by

 5-8     the applicant under Section 361.604;

 5-9                 (2)  a schedule of payments to the commission to be

5-10     made by the person for recovery of all commission costs fairly

5-11     attributable to the voluntary cleanup program, including direct and

5-12     indirect costs of overhead, salaries, equipment, and utilities, an

5-13     legal, management, and support costs; [and]

5-14                 (3)  appropriate tasks, deliverables, and schedules;

5-15     and

5-16                 (4)  the identification of all persons to be relieved

5-17     of liability under Section 361.610.  In the event of a sale or

5-18     transfer of ownership of the site covered by a voluntary cleanup

5-19     agreement after the application is approved pursuant to Section

5-20     361.606 but before the issuance of a certificate of completion

5-21     pursuant to Section 361.609, the voluntary cleanup agreement may be

5-22     amended by the applicant to identify the new owner as a person to

5-23     be released upon the issuance of the certificate.  The

5-24     identification of the new owner as a party to be released, however,

5-25     shall not relieve the applicant of or transfer responsibility for

5-26     the successful completion of the voluntary cleanup without the

5-27     express written approval of the commission evidenced by a formal

5-28     amendment of the voluntary cleanup agreement.

5-29           (c)  The voluntary cleanup agreement shall:

5-30                 (1)  identify all statutes and rules that must be

 6-1     complied with;

 6-2                 (2)  described any work plan or report to be submitted

 6-3     for review by the executive director, including a final report that

 6-4     provides all information necessary to verify that all work

 6-5     contemplated by the voluntary cleanup agreement has been completed;

 6-6                 (3)  include a schedule for submitting the information

 6-7     required by Subdivision (2); [and]

 6-8                 (4)  state the technical standards to be applied in

 6-9     evaluating the work plans and reports, with reference to the

6-10     proposed future land use to be achieved; and

6-11                 (5)  identify all persons to be relieved of liability

6-12     under Section 361.610 who otherwise would be a responsible party

6-13     under Section 361.271 or 361.275(g).

6-14           SECTION 6.  Section 361.609, Health and Safety Code, is

6-15     amended to read as follows:

6-16           (a)  If the executive director determines that a person has

6-17     successfully completed a voluntary cleanup approved under this

6-18     subchapter, the executive director shall certify that the action

6-19     has been completed by issuing the person a certificate of

6-20     completion.

6-21           (b)  The certificate of completion shall:

6-22                 (1)  acknowledge the protection from liability provided

6-23     by Section 361.610;

6-24                 (2)  indicate the proposed future land use; and

6-25                 (3)  include a legal description of the site and the

6-26     name of the site's owner at the time the application to participate

6-27     in the voluntary cleanup program was filed, the name of the owner

6-28     of the property at the time the certificate is issued, and the name

6-29     of any known persons released from liability.

6-30           (c)  The executive director shall file or direct the

 7-1     applicant to file a copy of the certificate of completion in the

 7-2     real property records of the county in which the site is located.

 7-3           (d)  If the executive director determines that the person has

 7-4     not successfully completed a voluntary cleanup approved under this

 7-5     subchapter, the executive director shall notify the person who

 7-6     undertook the voluntary cleanup and the current owner of the site

 7-7     that is the subject of the cleanup of this determination in

 7-8     writing.  Such notice shall specifically describe all deficiencies

 7-9     in the cleanup effort, and provide the applicant and/or current

7-10     owner of the site with an opportunity to cure such deficiencies.

7-11     In the event that the applicant and/or current owner are unable to

7-12     reach an agreement with the executive director on a remedy to cure

7-13     the deficiencies within 30 days from the date of receipt of the

7-14     notice, the applicant and/or current owner shall be entitled to

7-15     petition the commission for review of the determination and the

7-16     proposed remedy to cure the alleged deficiencies.

7-17           SECTION 7.  Section 361.610, Health and Safety Code, is

7-18     amended to read as follows:

7-19           (a)  At the time the commission issues a certificate of

7-20     completion under Section 361.609, a [A] person identified in the

7-21     application, who is [not] a responsible party under Section 361.271

7-22     or 361.275(g) at the time the application [person applies] to

7-23     perform a voluntary cleanup is approved, is released [, on

7-24     certification under Section 361.609,] from all liability to the

7-25     state for cleanup of areas of the site covered by the certificate

7-26     [certification], except for releases and consequences that either

7-27     result from or are directly caused by the subsequent acts of the

7-28     person released [causes].

7-29           (b)  The release from liability provided by this section does

7-30     not apply to a person who:

 8-1                 (1)  acquires [is not effective if] a certificate of

 8-2     completion [is acquired] by fraud, misrepresentation, or knowing

 8-3     failure to disclose material information;

 8-4                 (2)  knows at the time the person acquires an interest

 8-5     in the site for which the certificate of completion was issued that

 8-6     the certificate was acquired in a manner provided in Subdivision

 8-7     (1);

 8-8                 (3)  changes land use from the use specified in the

 8-9     certificate of completion if the new use may result in increased

8-10     risks to human health or the environment; or

8-11                 (4)  causes or takes any action which disturbs or

8-12     modifies the remediation accomplished during the voluntary cleanup

8-13     in a manner that may result in increased risks to human health or

8-14     the environment.

8-15           (c)  If a certificate of completion for a site is issued by

8-16     the commission, an owner who acquires the property on which the

8-17     site is located or a lender who makes a loan secured by that

8-18     property after the date of the approval of a voluntary cleanup

8-19     agreement [issuance of the certificate] is released from all

8-20     liability for cleanup of contamination released before the date of

8-21     the certificate for the areas covered by the certificate [unless

8-22     the owner or lender was originally included as a responsible party

8-23     under Section 361.271 or 361.275(g)].  A release of liability does

8-24     not apply to a person who changes land use from the use specified

8-25     in the certificate of completion if the new use may result in

8-26     increased risks to human health or the environment.

8-27           (d)  A person released from liability pursuant to this

8-28     section, other than a person described in Subsection (b), shall not

8-29     be liable to the state for any increased risk to human health or

8-30     the environment subsequent to the issuance of a certificate of

 9-1     completion.

 9-2           SECTION 8.  Section 361.275(a), Health and Safety Code, is

 9-3     amended to read as follows:

 9-4           (a)  A person responsible for solid waste under

 9-5     Section 361.271 is liable under Section 361.272 or 361.273 unless:

 9-6                 (1)  the person can establish by a preponderance of the

 9-7     evidence that the release or threatened release was caused solely

 9-8     by:

 9-9                       (A) [(1)]  an act of God;

9-10                       (B) [(2)]  an act of war;

9-11                       (C) [(3)]  an act or omission of a third person;

9-12     or

9-13                       (D) [(4)]  any combination of Paragraphs (A),

9-14     (B), and (C) [Subdivisions (1), (2), and (3)] ; or

9-15                 (2)  the person was released from liability pursuant to

9-16     Section 361.610.

9-17           SECTION 9.  (a)  This Act takes effect September 1, 1997.

9-18     (b)  A person to whom notice of rejection of an application is

9-19     issued under Section 361.605, Health and Safety Code, before the

9-20     effective date of this Act may resubmit the application once

9-21     without submitting an additional application fee if the person

9-22     resubmits the application not later than October 15, 1997.

9-23           SECTION 10.  The importance of this legislation and the

9-24     crowded condition of the calendars in both houses create an

9-25     emergency and an imperative public necessity that the

9-26     constitutional rule requiring bills to be read on three several

9-27     days in each house be suspended, and this rule is hereby suspended.