SRC-PNG H.B. 2816 76(R)   BILL ANALYSIS


Senate Research Center   H.B. 2816
By: Junell (Brown)
Natural Resources
5/9/1999
Engrossed


DIGEST 

Currently, under Texas law, the petroleum product delivery fee is assessed
on bulk loads of motor fuel.  Proceeds from the fee are used to fund the
Petroleum Storage Tank Remediation Account (account) administered by the
Texas Natural Resource Conservation Commission (TNRCC).  The account serves
as a state-sponsored insurance fund to clean up sites contaminated by
leaking petroleum storage tanks (tanks).  In 1995, the fee was doubled to
pay back loans from the general revenue fund issued when the account was
insolvent.  As of December 22, 1998, tank owners could no longer rely on
the account as proof of federally mandated insurance.  To meet federal
requirements, tank owners must now acquire cleanup insurance from the
private sector.  In addition, the account will accept no new claims for
cleanup.  This bill would limit the administrative expenses of the account
to an amount specifically appropriated for that purpose; would decrease by
onequarter the petroleum product delivery fee on bulk loads of motor fuel
and would provide for the termination of the account on September 1, 2003,
rather than 2001. 
  
PURPOSE

As proposed, H.B. 2816 limits the administrative expenses of the Petroleum
Storage Tank Remediation Account (account) to an amount specifically
appropriated for that purpose; would decrease by one-quarter the petroleum
product delivery fee on bulk loads of motor fuel; and would provide for the
termination of the account on September 1, 2003, rather than 2001. 
  
RULEMAKING AUTHORITY

Rulemaking authority is granted to the Texas Natural Resource Conservation
Commission in SECTION 4 (Section 26.481(a), Water Code) of this bill. 

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Section 26.3573(d), Water Code, to authorize the Texas
Natural Resource Conservation Commission (TNRCC) to use the money in the
petroleum storage tank remediation account (account) to pay necessary
expenses associated with the administration of the account and the
groundwater protection cleanup program, not to exceed the amount
specifically appropriated for that purpose, rather than five percent of the
gross receipts of the account. 

SECTION 2. Amends Section 26.3574, Water Code, by amending Subsections (b),
(x), and (y), and adding Subsection (aa), as follows: 

(b) Decreases by one-quarter the respective fees imposed on persons
delivering a petroleum product on withdrawal from bulk (fee). 

(x) Prohibits the fee from being collected or required to be paid when the
balance in the account equals or exceeds $100 million, rather than $125
million.  Makes a conforming change. 

(y) Decreases by one-quarter the respective fee that each operator of a
bulk facility is required to collect if the fee is reinstated as a result
of the unobligated balance in the account falling below $25 million. 

 (aa) Requires TNRCC to report to the Legislative Budget Board at the end
of each fiscal quarter on the financial status of the account. 

SECTION 3. Amends Section 26.361, Water Code, to provide that the
reimbursement program established under this subchapter expires on
September 1, 2003, rather than September 1, 2001. Prohibits TNRCC from
collecting a fee on or after March 1, 2002.  Makes conforming changes. 

SECTION 4. Amends Chapter 26, Water Code, by adding Subchapter L, as
follows: 

SUBCHAPTER L.  UNDERGROUND PETROLEUM STORAGE TANK LOAN PROGRAM

Sec.  26.481.  LOANS TO REMOVE UNDERGROUND PETROLEUM STORAGE TANKS.
Requires TNRCC by rule to protect groundwater and surface water sources
from contamination caused by leakage from underground petroleum storage
tanks by establishing a program to loan money to a business that owns an
underground petroleum storage tank to pay for the removal of the tank and
for remediation of any harm to the environment attributable to leakage from
the tank.  Authorizes TNRCC to make a loan under the program at a rate of
interest determined under TNRCC rules.  Requires TNRCC to require an
applicant for a loan to demonstrate that the applicant is not able to pay
for the tank removal project with the applicant's resources and is not able
to obtain a loan from a private lending institution.  Requires TNRCC rules
to provide that an applicant must have been denied a loan for the tank
removal project by at least two private lenders.  Provides that a loan
TNRCC grants under the program constitutes a lien on the real property of
the business in the amount of the loan.  Authorizes TNRCC to require
additional security for a loan granted under the program.  Requires TNRCC
to deposit money it receives as payment for principal of or interest on a
loan granted under the program to the credit of the account. 

Sec.  26.482.  PETROLEUM STORAGE TANK REMOVAL LOAN PROGRAM ACCOUNT.
Defines "account" and "program."  Sets forth which funds make up the
account.  Provides that the account is an account in the general revenue
account.  Provides that the account is not subject to Section 403.095,
Government Code.  Requires interest on the money in the account to be
credited to the account.  Authorizes money in the account to be
appropriated only for certain expenses. 

SECTION 5. Effective date: September 1, 1999.

SECTION 6. Emergency clause.