By Junell                                             H.B. No. 2687
         77R4987 SMH-D                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to the program for the regulation and remediation of
 1-3     underground and aboveground storage tanks.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1. Section 26.342, Water Code, is amended by amending
 1-6     Subdivisions (9)-(17) and adding Subdivision (18) to read as
 1-7     follows:
 1-8                 (9)  "Owner" means a person who holds legal possession
 1-9     or ownership of an interest in an underground storage tank system.
1-10     If the actual ownership of an underground storage tank system is
1-11     uncertain, unknown, or in dispute, the fee simple owner of the
1-12     surface estate of the tract on which the system is located is
1-13     considered the owner of the system unless that person can
1-14     demonstrate by appropriate documentation, including a deed
1-15     reservation, invoice, or bill of sale, or by other legally
1-16     acceptable means that the system is owned by another person. The
1-17     term does not include a person who holds an interest in an
1-18     underground storage tank system solely for financial purposes
1-19     unless, through foreclosure or a related action, that person has
1-20     taken legal possession of the system.
1-21                 (10)  "Person" means an individual, trust, firm,
1-22     joint-stock company, corporation, government corporation,
1-23     partnership, association, state, municipality, commission,
1-24     political subdivision of a state, an interstate body, a consortium,
 2-1     joint venture, commercial entity, or the United States government.
 2-2                 (11) [(10)]  "Petroleum product" means a petroleum
 2-3     product that is obtained from distilling and processing crude oil
 2-4     and that is capable of being used as a fuel for the propulsion of a
 2-5     motor vehicle or aircraft, including motor gasoline, gasohol, other
 2-6     alcohol blended fuels, aviation gasoline, kerosene, distillate fuel
 2-7     oil, and #1 and #2 diesel.  The term does not include naphtha-type
 2-8     jet fuel, kerosene-type jet fuel, or a petroleum product destined
 2-9     for use in chemical manufacturing or feedstock of that
2-10     manufacturing.
2-11                 (12) [(11)]  "Petroleum storage tank" means:
2-12                       (A)  any one or combination of aboveground
2-13     storage tanks that contain petroleum products and that are
2-14     regulated by the commission; or
2-15                       (B)  any one or combination of underground
2-16     storage tanks and any connecting underground pipes that contain
2-17     petroleum products and that are regulated by the commission.
2-18                 (13) [(12)]  "Regulated substance" means an element,
2-19     compound, mixture, solution, or substance that, when released into
2-20     the environment, may present substantial danger to the public
2-21     health, welfare, or the environment.
2-22                 (14) [(13)]  "Release" means any spilling including
2-23     overfills, leaking, emitting, discharging, escaping, leaching, or
2-24     disposing from an underground or aboveground storage tank into
2-25     groundwater, surface water, or subsurface soils.
2-26                 (15) [(14)]  "Risk-based corrective action" means site
2-27     assessment or site remediation, the timing, type, and degree of
 3-1     which is determined according to case-by-case consideration of
 3-2     actual or potential risk to public health from environmental
 3-3     exposure to a regulated substance released from a leaking
 3-4     underground or aboveground storage tank.
 3-5                 (16) [(15)]  "Spent oil" means a regulated substance
 3-6     that is a lubricating oil or similar petroleum substance which has
 3-7     been refined from crude oil, used for its designed or intended
 3-8     purposes, and contaminated as a result of that use by physical or
 3-9     chemical impurities, including spent motor vehicle lubricating
3-10     oils, transmission fluid, or brake fluid.
3-11                 (17) [(16)]  "Underground storage tank" means any one
3-12     or combination of underground tanks and any connecting underground
3-13     pipes used to contain an accumulation of regulated substances, the
3-14     volume of which, including the volume of the connecting underground
3-15     pipes, is 10 percent or more beneath the surface of the ground.
3-16                 (18) [(17)]  "Vehicle service and fueling facility"
3-17     means a facility where motor vehicles are serviced or repaired and
3-18     where petroleum products are stored and dispensed from fixed
3-19     equipment into the fuel tanks of motor vehicles.
3-20           SECTION 2. Sections 26.346(a) and (c), Water Code, are
3-21     amended to read as follows:
3-22           (a)  An underground or aboveground storage tank must be
3-23     registered with the commission unless the tank is exempt from
3-24     regulation under Section 26.344 of this code or the tank is covered
3-25     under Subsection (b) of this section.  The commission by rule shall
3-26     establish the procedures and requirements for establishing and
3-27     maintaining current registration information concerning underground
 4-1     and aboveground storage tanks.  The commission shall also require
 4-2     that an owner or operator of an underground storage tank used for
 4-3     storing gasoline or diesel fuel complete an annual underground
 4-4     storage tank compliance certification form.
 4-5           (c)  The commission shall issue to each person who owns or
 4-6     operates a petroleum storage tank that is registered under this
 4-7     section a registration and compliance confirmation certificate that
 4-8     includes a brief description of:
 4-9                 (1)  the responsibility of the owner or operator under
4-10     Section 26.3512 of this code;
4-11                 (2)  the rights of the owner or operator to participate
4-12     in the petroleum storage tank remediation account and the
4-13     groundwater protection cleanup program established under this
4-14     subchapter; and
4-15                 (3)  the responsibility of the owner or operator of an
4-16     underground storage tank to accurately complete the part of the
4-17     registration form pertaining to the certification of compliance
4-18     with underground storage tank administrative requirements and
4-19     technical standards if the tank is used for storing gasoline or
4-20     diesel fuel.
4-21           SECTION 3. Section 26.3573(d), Water Code, is amended to read
4-22     as follows:
4-23           (d)  The commission may use the money in the petroleum
4-24     storage tank remediation account to pay:
4-25                 (1)  necessary expenses associated with the
4-26     administration of the petroleum storage tank remediation account
4-27     and the groundwater protection cleanup program, not to exceed an
 5-1     amount equal to six [6.7] percent of the gross receipts of that
 5-2     account;
 5-3                 (2)  expenses associated with investigation, cleanup,
 5-4     or corrective action measures performed in response to a release or
 5-5     threatened release from a petroleum storage tank, whether those
 5-6     expenses are incurred by the commission or pursuant to a contract
 5-7     between a contractor and an eligible owner or operator as
 5-8     authorized by this subchapter; and
 5-9                 (3)  subject to the conditions of Subsection (e) of
5-10     this section, expenses associated with investigation, cleanup, or
5-11     corrective action measures performed in response to a release or
5-12     threatened release of hydraulic fluid or spent oil from hydraulic
5-13     lift systems or tanks located at a vehicle service and fueling
5-14     facility and used as part of the operations of that facility.
5-15           SECTION 4. Sections 26.3574(b) and (x), Water Code, are
5-16     amended to read as follows:
5-17           (b)  A fee is imposed on the delivery of a petroleum product
5-18     on withdrawal from bulk of that product as provided by this
5-19     subsection.  Each operator of a bulk facility on withdrawal from
5-20     bulk of a petroleum product shall collect from the person who
5-21     orders the withdrawal a fee in an amount determined as follows:
5-22                 (1)  $5 [$18.75] for each delivery into a cargo tank
5-23     having a capacity of less than 2,500 gallons;
5-24                 (2)  $10 [$37.50] for each delivery into a cargo tank
5-25     having a capacity of 2,500 gallons or more but less than 5,000
5-26     gallons;
5-27                 (3)  $15 [$56.25] for each delivery into a cargo tank
 6-1     having a capacity of 5,000 gallons or more but less than 8,000
 6-2     gallons;
 6-3                 (4)  $20 [$75] for each delivery into a cargo tank
 6-4     having a capacity of 8,000 gallons or more but less than 10,000
 6-5     gallons; and
 6-6                 (5)  a $10 [$37.50] fee for each increment of 5,000
 6-7     gallons or any part thereof delivered into a cargo tank having a
 6-8     capacity of 10,000 gallons or more.
 6-9           (x)  The [After the deposits have been made to the credit of
6-10     the general revenue fund under Section 403.092(c)(1), Government
6-11     Code, as added by Chapter 533, Acts of the 73rd Legislature, 1993,
6-12     the] fee imposed under this section may not be collected or
6-13     required to be paid on or after the first day of the second month
6-14     following notification by the commission of the date on which the
6-15     amount deposited to the credit of [unobligated balance in] the
6-16     petroleum storage tank remediation account during the preceding two
6-17     years [equals or] exceeds $96 [$100] million.  The commission shall
6-18     notify the comptroller in writing of the date on which the amount
6-19     deposited to the credit of the petroleum storage tank remediation
6-20     account during the preceding two years [unobligated balance equals
6-21     or] exceeds $96 [$100] million.
6-22           SECTION 5. Section 26.361, Water Code, is amended to read as
6-23     follows:
6-24           Sec. 26.361.  EXPIRATION OF REIMBURSEMENT PROGRAM. (a)
6-25     Notwithstanding any other provision of this subchapter, the
6-26     reimbursement program established under this subchapter expires
6-27     September 1, 2005 [2003]. On or after September 1, 2005 [2003], the
 7-1     commission may not use money from the petroleum storage tank
 7-2     remediation account to reimburse an eligible owner or operator for
 7-3     any expenses of corrective action or to pay the claim of a person
 7-4     who has contracted with an eligible owner or operator to perform
 7-5     corrective action.
 7-6           (b)  On or after September 1, 2005 [March 1, 2002], the
 7-7     commission may not collect a fee under Section 26.3574 of this
 7-8     code.
 7-9           SECTION 6. Sections 26.3574(y) and (z), Water Code, are
7-10     repealed.
7-11           SECTION 7. This Act takes effect September 1, 2001.