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                                  * * * * *