1-1     By:  Junell (Senate Sponsor - Brown)                  H.B. No. 2815
 1-2           (In the Senate - Received from the House May 6, 1999;
 1-3     May 7, 1999, read first time and referred to Committee on Natural
 1-4     Resources; May 13, 1999, reported favorably, as amended, by the
 1-5     following vote:  Yeas 5, Nays 0; May 13, 1999, sent to printer.)
 1-6     COMMITTEE AMENDMENT NO. 1                                By:  Brown
 1-7           Amend H.B. No. 2815 as follows:
 1-8           (1)  In SECTION 3 of the bill, in the heading to added
 1-9     Section 26.3467, Water Code (House Engrossment, page 2, line 67),
1-10     strike "SELLER'S".
1-11           (2)  In SECTION 3 of the bill, added Section 26.3467, Water
1-12     Code, strike Subsection (a) (House Engrossment, page 2, lines 68
1-13     through 69 and page 3, lines 1 through 4) and substitute the
1-14     following:
1-15           (a)  The owner or operator of an underground storage tank
1-16     into which a regulated substance is to be deposited shall provide
1-17     the common carrier a copy of the certificate of compliance for the
1-18     specific underground storage tank into which the regulated
1-19     substance is to be deposited before accepting delivery of the
1-20     regulated substance into the underground storage tank.
1-21           (3)  In SECTION 3 of the bill, following added Section
1-22     26.3467, Water Code (House Engrossment, page 3, between lines 7 and
1-23     8), add new Subsection (c) to read as follows:
1-24           (c)  A person who sells a regulated substance to a common
1-25     carrier who delivers the regulated substance or to the owner or
1-26     operator of an underground storage tank into which the regulated
1-27     substance is deposited, and who does not deliver the regulated
1-28     substance into the underground storage tank, is not liable under
1-29     this chapter with respect to that tank.
1-30           (4)  In SECTION 4 of the bill, amended Section 7.156, Water
1-31     Code, in new Subsection (c), strike "A person commits an offense if
1-32     the person deposits or has deposited" and substitute "A person
1-33     commits an offense if the person is an owner or operator of an
1-34     underground storage tank regulated under Chapter 26 into which any
1-35     regulated substance is delivered or physically delivers".
1-36                            A BILL TO BE ENTITLED
1-37                                   AN ACT
1-38     relating to the petroleum storage tank program; providing a
1-39     penalty.
1-40           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-41           SECTION 1.  Section 26.342, Water Code, is amended by adding
1-42     a new Subdivision (8) and redesignating existing Subdivisions (8)
1-43     through (16) as Subdivisions (9) through (17) to read as follows:
1-44                 (8)  "Operator" means any person in day-to-day control
1-45     of, and having responsibility for the daily operation of, the
1-46     underground storage tank system.
1-47                 (9) [(8)]  "Person" means an individual, trust, firm,
1-48     joint-stock company, corporation, government corporation,
1-49     partnership, association, state, municipality, commission,
1-50     political subdivision of a state, an interstate body, a consortium,
1-51     joint venture, commercial entity, or the United States government.
1-52                 (10) [(9)]  "Petroleum product" means a petroleum
1-53     product that is obtained from distilling and processing crude oil
1-54     and that is capable of being used as a fuel for the propulsion of a
1-55     motor vehicle or aircraft, including motor gasoline, gasohol, other
1-56     alcohol blended fuels, aviation gasoline, kerosene, distillate fuel
1-57     oil, and #1 and #2 diesel.  The term does not include naphtha-type
1-58     jet fuel, kerosene-type jet fuel, or a petroleum product destined
1-59     for use in chemical manufacturing or feedstock of that
1-60     manufacturing.
1-61                 (11) [(10)]  "Petroleum storage tank" means:
1-62                       (A)  any one or combination of aboveground
1-63     storage tanks that contain petroleum products and that are
 2-1     regulated by the commission; or
 2-2                       (B)  any one or combination of underground
 2-3     storage tanks and any connecting underground pipes that contain
 2-4     petroleum products and that are regulated by the commission.
 2-5                 (12) [(11)]  "Regulated substance" means an element,
 2-6     compound, mixture, solution, or substance that, when released into
 2-7     the environment, may present substantial danger to the public
 2-8     health, welfare, or the environment.
 2-9                 (13) [(12)]  "Release" means any spilling including
2-10     overfills, leaking, emitting, discharging, escaping, leaching, or
2-11     disposing from an underground or aboveground storage tank into
2-12     groundwater, surface water, or subsurface soils.
2-13                 (14) [(13)]  "Risk-based corrective action" means site
2-14     assessment or site remediation, the timing, type, and degree of
2-15     which is determined according to case-by-case consideration of
2-16     actual or potential risk to public health from environmental
2-17     exposure to a regulated substance released from a leaking
2-18     underground or aboveground storage tank.
2-19                 (15) [(14)]  "Spent oil" means a regulated substance
2-20     that is a lubricating oil or similar petroleum substance which has
2-21     been refined from crude oil, used for its designed or intended
2-22     purposes, and contaminated as a result of that use by physical or
2-23     chemical impurities, including spent motor vehicle lubricating
2-24     oils, transmission fluid, or brake fluid.
2-25                 (16) [(15)]  "Underground storage tank" means any one
2-26     or combination of underground tanks and any connecting underground
2-27     pipes used to contain an accumulation of regulated substances, the
2-28     volume of which, including the volume of the connecting underground
2-29     pipes, is 10 percent or more beneath the surface of the ground.
2-30                 (17) [(16)]  "Vehicle service and fueling facility"
2-31     means a facility where motor vehicles are serviced or repaired and
2-32     where petroleum products are stored and dispensed from fixed
2-33     equipment into the fuel tanks of motor vehicles.
2-34           SECTION 2.  Sections 26.346(a) and (c), Water Code, are
2-35     amended to read as follows:
2-36           (a)  An underground or aboveground storage tank must be
2-37     registered with the commission unless the tank is exempt from
2-38     regulation under Section 26.344 of this code or the tank is covered
2-39     under Subsection (b) of this section.  The commission by rule shall
2-40     establish the procedures and requirements for establishing and
2-41     maintaining current registration information concerning underground
2-42     and aboveground storage tanks.  The commission shall also require
2-43     that an owner or operator of an underground storage tank complete
2-44     an annual underground storage tank compliance certification form.
2-45           (c)  The commission shall issue to each person who owns or
2-46     operates a petroleum storage tank that is registered under this
2-47     section a registration and compliance confirmation certificate that
2-48     includes a brief description of:
2-49                 (1)  the responsibility of the owner or operator under
2-50     Section 26.3512 of this code; [and]
2-51                 (2) the rights of the owner or operator to participate
2-52     in the petroleum storage tank remediation account and the
2-53     groundwater protection cleanup program established under this
2-54     subchapter; and
2-55                 (3)  the responsibility of the owner or operator of an
2-56     underground storage tank to accurately complete the part of the
2-57     registration form pertaining to the certification of compliance
2-58     with underground storage tank administrative requirements and
2-59     technical standards.
2-60           SECTION 3.  Subchapter I, Chapter 26, Water Code, is amended
2-61     by adding Sections 26.3465 and 26.3467 to read as follows:
2-62           Sec. 26.3465.  FAILURE OR REFUSAL TO PROVIDE PROOF OF
2-63     REGISTRATION OR CERTIFICATION OF COMPLIANCE.  An owner or operator
2-64     of an underground storage tank  who fails or refuses to provide, on
2-65     request of the commission, proof of registration of, or
2-66     certification of compliance for, an underground storage tank is
2-67     liable for a civil penalty under Subchapter D, Chapter 7.
2-68           Sec. 26.3467.  SELLER'S DUTY TO ENSURE CERTIFICATION OF TANK
2-69     BEFORE DELIVERY.  (a)  The seller of a regulated substance that is
 3-1     being deposited into an underground storage tank  shall ensure that
 3-2     a certificate of compliance has been issued for the specific
 3-3     underground storage tank into which the substance is to be
 3-4     deposited before ordering a contract or common carrier to deliver
 3-5     the regulated substance into the underground storage tank.
 3-6           (b)  A person who violates Subsection (a)  commits an offense
 3-7     that is punishable as provided by Section 7.156 for an offense
 3-8     under that section.
 3-9           SECTION 4.  Section 7.156, Water Code, is amended by adding a
3-10     new Subsection (c) and redesignating existing Subsection (c) as
3-11     Subsection (d) to read as follows:
3-12           (c)  A person commits an offense if the person deposits or
3-13     has deposited any regulated substance into an underground storage
3-14     tank regulated under Chapter 26 unless the underground storage tank
3-15     has been issued a valid, current underground storage tank
3-16     registration and certificate of compliance under Section 26.346.
3-17           (d)  An offense under this section is a Class A misdemeanor.
3-18           SECTION 5.  Subchapter E, Chapter 7, Water Code, is amended
3-19     by adding Section 7.1565 to read as follows:
3-20           Sec. 7.1565.  PRESUMPTION.  If in the exercise of good faith
3-21     a person depositing, or causing to be deposited, a regulated
3-22     substance into an underground storage tank regulated under Chapter
3-23     26 receives a certificate of compliance for that underground
3-24     storage tank under Section 26.346, the receipt of the certificate
3-25     of compliance shall be considered prima facie evidence of
3-26     compliance with this section.
3-27           SECTION 6.  Sections 26.3512(g), (h), (i), and (j), Water
3-28     Code, are amended to read as follows:
3-29           (g)  If an owner or operator's corrective action plan is
3-30     approved by the commission under Section 26.3572 before June 23,
3-31     1998 [December 23, 1997], the owner or operator shall pay under
3-32     Subsection (b)(1) the amount provided by Subsection (e) for the
3-33     first expenses for corrective action taken for each occurrence.
3-34           (h)  If an owner or operator's corrective action plan is not
3-35     approved by the commission under Section 26.3572 before June 23,
3-36     1998 [December 23, 1997], the owner or operator shall pay under
3-37     Subsection (b)(1) the first expenses for corrective action taken
3-38     for each occurrence as follows:
3-39                 (1)  a person who owns or operates 1,000 or more single
3-40     petroleum storage tanks, the first $40,000;
3-41                 (2)  a person who owns or operates not fewer than 100
3-42     or more than 999 single petroleum storage tanks, the first $20,000;
3-43                 (3)  a person who owns or operates not fewer than 13 or
3-44     more than 99 single petroleum storage tanks, the first $10,000; and
3-45                 (4)  a person who owns or operates fewer than 13 single
3-46     petroleum storage tanks, the first $4,000.
3-47           (i)  If an owner or operator has a corrective action plan
3-48     approved by the commission under Section 26.3572 and before
3-49     December 23, 1999 [December 23, 1998], has met the goals specified
3-50     in the plan to be met by that date, the owner or operator shall pay
3-51     under Subsection (b)(1) the amount specified by Subsection (e) for
3-52     the first expenses for corrective action taken for each occurrence.
3-53           (j)  If an owner or operator does not have a corrective
3-54     action plan approved by the commission under Section 26.3572 and
3-55     before December 23, 1999 [or, on December 23, 1998], has not met
3-56     the goals specified in the plan to be met by that date, the owner
3-57     or operator shall pay under Subsection (b)(1) the first expenses
3-58     for corrective action taken for each occurrence as follows:
3-59                 (1)  a person who owns or operates 1,000 or more single
3-60     petroleum storage tanks, the first $80,000;
3-61                 (2)  a person who owns or operates not fewer than 100
3-62     or more than 999 single petroleum storage tanks, the first $40,000;
3-63                 (3)  a person who owns or operates not fewer than 13 or
3-64     more than 99 single petroleum storage tanks, the first $20,000; and
3-65                 (4)  a person who owns or operates fewer than 13 single
3-66     petroleum storage tanks, the first $8,000.
3-67           SECTION 7.  Section 26.35731, Water Code, is amended by
3-68     adding Subsection (c) to read as follows:
3-69           (c)  Not later than the 90th day after the date on which the
 4-1     commission receives a completed application for reimbursement from
 4-2     the petroleum storage tank remediation account, the commission
 4-3     shall send a fund payment report to the owner or operator of a
 4-4     petroleum storage tank system that is seeking reimbursement.
 4-5           SECTION 8.  This Act takes effect September 1, 1999.
 4-6           SECTION 9.  The importance of this legislation and the
 4-7     crowded condition of the calendars in both houses create an
 4-8     emergency and an imperative public necessity that the
 4-9     constitutional rule requiring bills to be read on three several
4-10     days in each house be suspended, and this rule is hereby suspended.
4-11                                  * * * * *