1-1 By: Junell (Senate Sponsor - Brown) H.B. No. 2816
1-2 (In the Senate - Received from the House April 23, 1999;
1-3 April 26, 1999, read first time and referred to Committee on
1-4 Natural Resources; May 13, 1999, reported favorably, as amended, by
1-5 the following vote: Yeas 5, Nays 0; May 13, 1999, sent to
1-6 printer.)
1-7 COMMITTEE AMENDMENT NO. 1 By: Brown
1-8 Amend HB 2816 as follows:
1-9 On page 1, lines 29-30, strike the word "the" and insert the
1-10 word "an";
1-11 On page 1, line 30, strike the words "specifically
1-12 appropriated for that purpose" and insert "6.7 percent of the gross
1-13 receipts of that account."
1-14 COMMITTEE AMENDMENT NO. 2 By: Brown
1-15 On Page 2, Line 58, strike SECTION 4 in its entirety and renumber
1-16 the subsequent sections appropriately.
1-17 A BILL TO BE ENTITLED
1-18 AN ACT
1-19 relating to the fee on delivery of certain petroleum products and
1-20 programs for corrective actions in response to releases from
1-21 petroleum storage tanks.
1-22 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-23 SECTION 1. Section 26.3573(d), Water Code, is amended to
1-24 read as follows:
1-25 (d) The commission may use the money in the petroleum
1-26 storage tank remediation account to pay:
1-27 (1) necessary expenses associated with the
1-28 administration of the petroleum storage tank remediation account
1-29 and the groundwater protection cleanup program, not to exceed the
1-30 [an] amount specifically appropriated for that purpose [equal to
1-31 five percent of the gross receipts of that account, provided that
1-32 the increment between two and five percent of the gross receipts
1-33 may be used only to pay administrative expenses associated with
1-34 regulating petroleum storage tanks, reimbursing eligible owners and
1-35 operators, disposing of contaminated soils, and conducting claims
1-36 audits in accordance with Section 26.35735 of this code];
1-37 (2) expenses associated with investigation, cleanup,
1-38 or corrective action measures performed in response to a release or
1-39 threatened release from a petroleum storage tank, whether those
1-40 expenses are incurred by the commission or pursuant to a contract
1-41 between a contractor and an eligible owner or operator as
1-42 authorized by this subchapter; and
1-43 (3) subject to the conditions of Subsection (e) of
1-44 this section, expenses associated with investigation, cleanup, or
1-45 corrective action measures performed in response to a release or
1-46 threatened release of hydraulic fluid or spent oil from hydraulic
1-47 lift systems or tanks located at a vehicle service and fueling
1-48 facility and used as part of the operations of that facility.
1-49 SECTION 2. Section 26.3574, Water Code, is amended by
1-50 amending Subsections (b), (x), and (y) and adding Subsection (aa)
1-51 to read as follows:
1-52 (b) A fee is imposed on the delivery of a petroleum product
1-53 on withdrawal from bulk of that product as provided by this
1-54 subsection. Each operator of a bulk facility on withdrawal from
1-55 bulk of a petroleum product shall collect from the person who
1-56 orders the withdrawal a fee in an amount determined as follows:
1-57 (1) $18.75 [$25] for each delivery into a cargo tank
1-58 having a capacity of less than 2,500 gallons;
1-59 (2) $37.50 [$50] for each delivery into a cargo tank
1-60 having a capacity of 2,500 gallons or more but less than 5,000
1-61 gallons;
2-1 (3) $56.25 [$75] for each delivery into a cargo tank
2-2 having a capacity of 5,000 gallons or more but less than 8,000
2-3 gallons;
2-4 (4) $75 [$100] for each delivery into a cargo tank
2-5 having a capacity of 8,000 gallons or more but less than 10,000
2-6 gallons; and
2-7 (5) a $37.50 [$50] fee for each increment of 5,000
2-8 gallons or any part thereof delivered into a cargo tank having a
2-9 capacity of 10,000 gallons or more.
2-10 (x) After the deposits have been made to the credit of the
2-11 general revenue fund under Section 403.092(c)(1), Government Code,
2-12 as added by Chapter 533, Acts of the 73rd Legislature, 1993, the
2-13 fee imposed under this section may not be collected or required to
2-14 be paid on or after the first day of the second month following
2-15 notification by the commission of the date on which the unobligated
2-16 balance in the petroleum storage tank remediation account equals or
2-17 exceeds $100 [$125] million. The commission shall notify the
2-18 comptroller in writing of the date on which the unobligated balance
2-19 equals or exceeds $100 [$125] million.
2-20 (y) If the unobligated balance in the petroleum storage tank
2-21 remediation account falls below $25 million, the fee shall be
2-22 reinstated, effective on the first day of the second month
2-23 following notification by the commission, in amounts determined as
2-24 follows:
2-25 (1) $9.38 [$12.50] for each delivery into a cargo tank
2-26 having a capacity of less than 2,500 gallons;
2-27 (2) $18.75 [$25] for each delivery into a cargo tank
2-28 having a capacity of 2,500 gallons or more but less than 5,000
2-29 gallons;
2-30 (3) $28.13 [$37.50] for each delivery into a cargo
2-31 tank having a capacity of 5,000 gallons or more but less than 8,000
2-32 gallons;
2-33 (4) $37.50 [$50] for each delivery into a cargo tank
2-34 having a capacity of 8,000 gallons or more but less than 10,000
2-35 gallons; and
2-36 (5) an $18.75 [a $25] fee for each increment of 5,000
2-37 gallons or any part thereof delivered into a cargo tank having a
2-38 capacity of 10,000 gallons or more.
2-39 (aa) The commission shall report to the Legislative Budget
2-40 Board at the end of each fiscal quarter on the financial status of
2-41 the petroleum storage tank remediation account.
2-42 SECTION 3. Section 26.361, Water Code, is amended to read as
2-43 follows:
2-44 Sec. 26.361. EXPIRATION OF REIMBURSEMENT PROGRAM. (a)
2-45 Notwithstanding any other provision of this subchapter, the
2-46 reimbursement program established under this subchapter expires
2-47 September 1, 2003 [2001]. On or after September 1, 2003 [2001],
2-48 the commission may not[:]
2-49 [(1)] use money from the petroleum storage tank
2-50 remediation account to reimburse an eligible owner or operator for
2-51 any expenses of corrective action or to pay the claim of a person
2-52 who has contracted with an eligible owner or operator to perform
2-53 corrective action[; or]
2-54 [(2) collect a fee under Section 26.3574 of this
2-55 code].
2-56 (b) On or after March 1, 2002, the commission may not
2-57 collect a fee under Section 26.3574 of this code.
2-58 SECTION 4. Chapter 26, Water Code, is amended by adding
2-59 Subchapter L to read as follows:
2-60 SUBCHAPTER L. UNDERGROUND PETROLEUM STORAGE TANK LOAN PROGRAM
2-61 Sec. 26.481. LOANS TO REMOVE UNDERGROUND PETROLEUM STORAGE
2-62 TANKS. (a) The commission by rule shall protect groundwater and
2-63 surface water sources from contamination caused by leakage from
2-64 underground petroleum storage tanks by establishing a program to
2-65 loan money to a business that owns an underground petroleum storage
2-66 tank to pay for the removal of the tank and for remediation of any
2-67 harm to the environment attributable to leakage from the tank. The
2-68 commission may make a loan under the program at a rate of interest
2-69 determined under commission rules.
3-1 (b) The commission shall require an applicant for a loan to
3-2 demonstrate that the applicant is not able to pay for the tank
3-3 removal project with the applicant's resources and is not able to
3-4 obtain a loan from a private lending institution. Rules of the
3-5 commission must provide that an applicant must have been denied a
3-6 loan for the tank removal project by at least two private lenders.
3-7 (c) A loan the commission grants under the program
3-8 constitutes a lien on the real property of the business in the
3-9 amount of the loan. The commission may require additional security
3-10 for a loan granted under the program.
3-11 (d) The commission shall deposit money it receives as
3-12 payment for principal of or interest on a loan granted under the
3-13 program to the credit of the petroleum storage tank removal loan
3-14 program account.
3-15 Sec. 26.482. PETROLEUM STORAGE TANK REMOVAL LOAN PROGRAM
3-16 ACCOUNT. (a) In this section:
3-17 (1) "Account" means the petroleum storage tank removal
3-18 loan program account.
3-19 (2) "Program" means the underground petroleum storage
3-20 tank loan program established under Section 26.481.
3-21 (b) The account consists of:
3-22 (1) money the legislature by law transfers into the
3-23 account;
3-24 (2) interest earned on money in the account;
3-25 (3) payments of principal and interest on loans made
3-26 under the program that are received by the commission; and
3-27 (4) any other money deposited to the credit of the
3-28 account.
3-29 (c) The account is an account in the general revenue fund.
3-30 The account is not subject to Section 403.095, Government Code.
3-31 Interest on the money in the account shall be credited to the
3-32 account.
3-33 (d) Money in the account may be appropriated only for a
3-34 purpose related to:
3-35 (1) administration of the account;
3-36 (2) providing a loan under the program; or
3-37 (3) administering the program.
3-38 SECTION 5. This Act takes effect September 1, 1999.
3-39 SECTION 6. The importance of this legislation and the
3-40 crowded condition of the calendars in both houses create an
3-41 emergency and an imperative public necessity that the
3-42 constitutional rule requiring bills to be read on three several
3-43 days in each house be suspended, and this rule is hereby suspended.
3-44 * * * * *