By:  Brown                                            S.B. No. 1341

         Line and page numbers may not match official copy.

         Bill not drafted by TLC or Senate E&E.

                                A BILL TO BE ENTITLED

                                       AN ACT

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

 1-2     wastes.

 1-3           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

 1-4           SECTION 1.  Section 361.602, Health and Safety Code, is

 1-5     amended to read as follows:

 1-6           Section  361.602.  PURPOSE.  The purpose of the voluntary

 1-7     cleanup program is to provide incentive to remediate property by

 1-8     removing liability of lenders, [and] future landowners, and persons

 1-9     who would otherwise be a responsible party under Section 361.271 or

1-10     361.275(g).  The program does not replace other voluntary actions

1-11     and is restricted to voluntary actions.

1-12           SECTION 2.  Sec. 361.603, Health and Safety Code, is amended

1-13     to read as follows:

1-14           (a)  Any site is eligible for participation in the voluntary

1-15     cleanup program except the portion of a site that is subject to a

1-16     commission permit or order.

1-17           (b)  A person electing to participate in the voluntary

1-18     cleanup program must:

1-19                 (1)  enter into a voluntary cleanup agreement as

1-20     provided by Section 361.606; and

1-21                 (2)  pay all costs of commission oversight of the

 2-1     voluntary cleanup.

 2-2           (c)  Notwithstanding Subsection (a), the commission may

 2-3     transfer the site or portion of a site subject to a permit or order

 2-4     into the voluntary cleanup program at any time, subject to the

 2-5     negotiation of an agreement pursuant to Section 361.606, by

 2-6     dismissing the permit or order affecting a site or portion of a

 2-7     site.  Any administrative penalties that have been paid to the

 2-8     general revenue fund pursuant to the earlier order or permit

 2-9     affecting the site or portion of the site shall not be refunded.

2-10           (d)  A person who is a responsible party under Section

2-11     361.271 or 361.275(g) is eligible to participate in the voluntary

2-12     cleanup program, and will be released from further liability upon

2-13     the issuance of a certificate of completion pursuant to this

2-14     subchapter.

2-15           SECTION 3.  Sections 361.604(b) and (c), Health and Safety

2-16     Code, are amended to read as follows:

2-17           (b)  An application submitted under this section must:

2-18                 (1)  be on a form provided by the executive director;

2-19                 (2)  contain:

2-20                       (A)  general information concerning:

2-21                             (i)  the person and the person's

2-22     capability, including the person's financial capability, to perform

2-23     the voluntary cleanup; [and]

2-24                             (ii)  the site; and

2-25                             (iii)  the person's right to perform the

 3-1     voluntary cleanup if the site is owned by a different person;

 3-2                       (B)  other background information requested by

 3-3     the executive director; and

 3-4                       (C)  an environmental assessment of the actual or

 3-5     threatened release of the hazardous substance or contaminant at the

 3-6     site;

 3-7                 (3)  be accompanied by an application fee of $1,000;

 3-8     and

 3-9                 (4)  be submitted according to schedules set by

3-10     commission rule.

3-11           (c)  The environmental assessment required by Subsection (b)

3-12     must include:

3-13                 (1)  a legal description of the site;

3-14                 (2)  a description of the physical characteristics of

3-15     the site;

3-16                 (3)  the operational history of the site to the extent

3-17     that history is known by the applicant;

3-18                 (4)  information of which the applicant is aware

3-19     concerning the nature and extent of any relevant contamination or

3-20     release at the site and immediately contiguous to the site, or

3-21     wherever the contamination came to be located; [and]

3-22                 (5)  relevant information of which the applicant is

3-23     aware concerning the potential for human exposure to contamination

3-24     at the site; and

3-25                 (6)  information of any pending administrative, state,

 4-1     or federal enforcement action of which the applicant is aware.

 4-2           SECTION 4.  Section 361.605, Health and Safety Code, is

 4-3     amended to read as follows:

 4-4           (a)  The executive director may reject an application

 4-5     submitted under Section 361.604 if:

 4-6                 (1)  an administrative, state, or federal enforcement

 4-7     action is pending that concerns the remediation of the hazardous

 4-8     substance or contaminant described in the application;

 4-9                 (2)  a federal grant requires an enforcement action at

4-10     the site;

4-11                 (3)  the application is not complete or accurate; or

4-12                 (4)  the site is ineligible under Section 361.603.

4-13           (b)  If an application is rejected because it is not complete

4-14     or accurate, the executive director, not later than the 45th day

4-15     after receipt of the application, shall provide the person with a

4-16     list of all information needed to make the application complete or

4-17     accurate.  A person may resubmit an application once without

4-18     submitting an additional application fee if the person resubmits

4-19     the application not later than the 45th day after the date the

4-20     executive director issues notice that the application has been

4-21     rejected.

4-22           (c)  If the executive director rejects the application, the

4-23     executive director shall:

4-24                 (1)  notify the person that the application has been

4-25     rejected;

 5-1                 (2)  explain the reasons for rejection of the

 5-2     application; and

 5-3                 (3)  inform the person that the commission will refund

 5-4     half the person's application fee unless the person indicates a

 5-5     desire to resubmit an application; and

 5-6           (d)  If an application is rejected because of a pending

 5-7     administrative, state, or federal enforcement action that concerns

 5-8     the remediation of the hazardous substance or contaminant described

 5-9     in the application, the applicant may resubmit the application upon

5-10     completion, termination, or dismissal of the enforcement action and

5-11     the site or portion of the site covered by an order issued as a

5-12     result of the enforcement action shall be eligible for

5-13     participation in the voluntary cleanup program for any remediation

5-14     that is necessary beyond the requirements of the enforcement order.

5-15           SECTION 5.  Sections 361.606(b) and (c), Health and Safety

5-16     Code, are amended to read as follows:

5-17           (b)  A voluntary cleanup agreement must provide for:

5-18                 (1)  recovery by the commission of all reasonable

5-19     costs:

5-20                       (A)  incurred by the commission in review and

5-21     oversight of the person's work plan and reports and as a result of

5-22     the commission's field activities;

5-23                       (B)  attributable to the voluntary cleanup

5-24     agreement; and

5-25                       (C)  in excess of the amount of fees submitted by

 6-1     the applicant under Section 361.604;

 6-2                 (2)  a schedule of payments to the commission to be

 6-3     made by the person for recovery of all commission costs fairly

 6-4     attributable to the voluntary cleanup program, including direct and

 6-5     indirect costs of overhead, salaries, equipment, and utilities, and

 6-6     legal, management, and support costs; [and]

 6-7                 (3)  appropriate tasks, deliverables, and schedules;

 6-8     and

 6-9                 (4)  the identification of all persons to be relieved

6-10     of liability under Section 361.610.  In the event of a sale or

6-11     transfer of ownership of the site covered by a voluntary cleanup

6-12     agreement after the application is approved pursuant to Section

6-13     361.606 but before the issuance of a certificate of completion

6-14     pursuant to Section 361.609, the voluntary cleanup agreement may be

6-15     amended by the applicant to identify the new owner as a person to

6-16     be released upon the issuance of the certificate.  The

6-17     identification of the new owner as a party to be released, however,

6-18     shall not relieve the applicant of or transfer responsibility for

6-19     the successful completion of the voluntary cleanup without the

6-20     express written approval of the commission evidenced by a formal

6-21     amendment of the voluntary cleanup agreement.

6-22           (c)  The voluntary cleanup agreement shall:

6-23                 (1)  identify all statutes and rules that must be

6-24     complied with;

6-25                 (2)  describe any work plan or report to be submitted

 7-1     for review by the executive director, including a final report that

 7-2     provides all information necessary to verify that all work

 7-3     contemplated by the voluntary cleanup agreement has been completed;

 7-4                 (3)  include a schedule for submitting the information

 7-5     required by Subdivision (2); [and]

 7-6                 (4)  state the technical standards to be applied in

 7-7     evaluating the work plans and reports, with reference to the

 7-8     proposed future land use to be achieved; and

 7-9                 (5)  identify all persons to be relieved of liability

7-10     under Section 361.610 who otherwise would be a responsible party

7-11     under Section 361.271 or 361.275(g).

7-12           SECTION 6.  Section 361.609, Health and Safety Code, is

7-13     amended to read as follows:

7-14           (a)  If the executive director determines that a person has

7-15     successfully completed a voluntary cleanup approved under this

7-16     subchapter, the executive director shall certify that the action

7-17     has been completed by issuing the person a certificate of

7-18     completion.

7-19           (b)  The certificate of completion shall:

7-20                 (1)  acknowledge the protection from liability provided

7-21     by Section 361.610;

7-22                 (2)  indicate the proposed future land use; and

7-23                 (3)  include a legal description of the site and the

7-24     name of the site's owner at the time the application to participate

7-25     in the voluntary cleanup program was filed, the name of the owner

 8-1     of the property at the time the certificate is issued, and the name

 8-2     of any known persons released from liability.

 8-3           (c)  The executive director shall file or direct the

 8-4     applicant to file a copy of the certificate of completion in the

 8-5     real property records of the county in which the site is located.

 8-6           (d)  If the executive director determines that the person has

 8-7     not successfully completed a voluntary cleanup approved under this

 8-8     subchapter, the executive director shall notify the person who

 8-9     undertook the voluntary cleanup and the current owner of the site

8-10     that is the subject of the cleanup of this determination in

8-11     writing.  Such notice shall specifically describe all deficiencies

8-12     in the cleanup effort, and provide the applicant and/or current

8-13     owner of the site with an opportunity to cure such deficiencies.

8-14     In the event that the applicant and/or current owner are unable to

8-15     reach an agreement with the executive director on a remedy to cure

8-16     the deficiencies within 30 days from the date of receipt of the

8-17     notice, the applicant and/or current owner shall be entitled to

8-18     petition the commission for review of the determination and the

8-19     proposed remedy to cure the alleged deficiencies.

8-20           SECTION 7.  Section 361.610, Health and Safety Code, is

8-21     amended to read as follows:

8-22           (a)  At the time the commission issues a certificate of

8-23     completion under Section 361.609, a [A] person identified in the

8-24     application, who is [not] a responsible party under Section 361.271

8-25     or 361.275(g) at the time the application [person applies] to

 9-1     perform a voluntary cleanup is approved, is released [, on

 9-2     certification under Section 361.609,] from all liability to the

 9-3     state for cleanup of areas of the site covered by the certificate

 9-4     [certification], except for releases and consequences that either

 9-5     result from or are directly caused by the subsequent acts of the

 9-6     person released [causes].

 9-7           (b)  The release from liability provided by this section does

 9-8     not apply to a person who:

 9-9                 (1)  acquires [is not effective if] a certificate of

9-10     completion [is acquired] by fraud, misrepresentation, or knowing

9-11     failure to disclose material information;

9-12                 (2)  knows at the time the person acquires an interest

9-13     in the site for which the certificate of completion was issued that

9-14     the certificate was acquired in a manner provided in Subdivision

9-15     (1);

9-16                 (3)  changes land use from the use specified in the

9-17     certificate of completion if the new use may result in increased

9-18     risks to human health or the environment; or

9-19                 (4)  causes or takes any action which disturbs or

9-20     modifies the remediation accomplished during the voluntary cleanup

9-21     in a manner that may result in increased risks to human health or

9-22     the environment.

9-23           (c)  If a certificate of completion for a site is issued by

9-24     the commission, an owner who acquires the property on which the

9-25     site is located or a lender who makes a loan secured by that

 10-1    property after the date of the approval of a voluntary cleanup

 10-2    agreement [issuance of the certificate] is released from all

 10-3    liability for cleanup of contamination released before the date of

 10-4    the certificate for the areas covered by the certificate [unless

 10-5    the owner or lender was originally included as a responsible party

 10-6    under Section 361.271 or 361.275(g)].  A release of liability does

 10-7    not apply to a person who changes land use from the use specified

 10-8    in the certificate of completion if the new use may result in

 10-9    increased risks to human health or the environment.

10-10          (d)  A person released from liability pursuant to this

10-11    section, other than a person described in Subsection (b), shall not

10-12    be liable to the state for any increased risk to human health or

10-13    the environment subsequent to the issuance of a certificate of

10-14    completion.

10-15          SECTION 8.  Section 361.275(a), Health and Safety Code, is

10-16    amended to read as follows:

10-17          (a)  A person responsible for solid waste under

10-18    Section 361.271 is liable under Section 361.272 or 361.273 unless:

10-19                (1)  the person can establish by a preponderance of the

10-20    evidence that the release or threatened release was caused solely

10-21    by:

10-22                      (A) [(1)]  an act of God;

10-23                      (B) [(2)]  an act of war;

10-24                      (C) [(3)]  an act or omission of a third person;

10-25    or

 11-1                      (D) [(4)]  any combination of Paragraphs (A),

 11-2    (B), and (C) [Subdivisions (1), (2), and (3)] ; or

 11-3                (2)  the person was released from liability pursuant to

 11-4    Section 361.610.

 11-5          SECTION 9.  (a)  This Act takes effect September 1, 1997.

 11-6    (b)  A person to whom notice of rejection of an application is

 11-7    issued under Section 361.605, Health and Safety Code, before the

 11-8    effective date of this Act may resubmit the application once

 11-9    without submitting an additional application fee if the person

11-10    resubmits the application not later than October 15, 1997.

11-11          SECTION 10.  The importance of this legislation and the

11-12    crowded condition of the calendars in both houses create an

11-13    emergency and an imperative public necessity that the

11-14    constitutional rule requiring bills to be read on three several

11-15    days in each house be suspended, and this rule is hereby suspended.