By Merritt                                            H.B. No. 3427
         77R5160 SMH-F                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to the composition of the oil-field cleanup fund, the
 1-3     amounts of certain fees deposited to the credit of the fund, and
 1-4     the use of money in the fund.
 1-5           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-6           SECTION 1. Section 40.151, Natural Resources Code, is amended
 1-7     by amending Subsections (b) and (e) and adding Subsection (f) to
 1-8     read as follows:
 1-9           (b)  The coastal protection fund is established in the state
1-10     treasury to be used by the commissioner as a nonlapsing revolving
1-11     fund only for carrying out the purposes of this chapter and of
1-12     Subchapter H, Chapter 33.  To this fund shall be credited all fees,
1-13     penalties, judgments, reimbursements, and charges provided for in
1-14     this chapter, other than fees [and the fee revenues] levied and[,]
1-15     collected under Section 40.155[, and credited pursuant to this
1-16     chapter.  The fund shall not exceed $50 million].
1-17           (e)  The comptroller shall transfer all fees levied and
1-18     collected under Section 40.155 [When the balance of the fund
1-19     reaches $25 million, income on the investment, in an amount not to
1-20     exceed $5 million, shall be transferred] to the Railroad Commission
1-21     of Texas for the oil-field cleanup fund.
1-22           (f)  Income on the investment of money in the fund [that $25
1-23     million in excess of $5 million] shall be credited to the fund.
1-24           SECTION 2. Section 40.155, Natural Resources Code, is amended
 2-1     to read as follows:
 2-2           Sec. 40.155.  AMOUNT [DETERMINATION] OF FEE.  The [(a) Except
 2-3     as otherwise provided in this section, the] rate of the fee shall
 2-4     be four [two] cents per barrel of crude oil [until the commissioner
 2-5     certifies that the unencumbered balance in the fund has reached $25
 2-6     million.  The commissioner shall certify to the comptroller the
 2-7     date on which the unencumbered balance in the fund exceeds $25
 2-8     million.  The fee shall not be collected or required to be paid on
 2-9     or after the first day of the second month following the
2-10     commissioner's certification to the comptroller that the
2-11     unencumbered balance in the fund exceeds $25 million].
2-12           [(b)  If the unencumbered balance in the fund falls below $14
2-13     million, the commissioner shall certify such fact to the
2-14     comptroller.  On receiving the commissioner's certification, the
2-15     comptroller shall resume collecting the fee until suspended in the
2-16     manner provided in Subsection (a) of this section.]
2-17           [(c)  Notwithstanding the provisions of Subsection (a)  or
2-18     (b) of this section, the fee shall be levied at the rate of four
2-19     cents per barrel if the commissioner certifies to the comptroller a
2-20     written finding of the following facts:]
2-21                 [(1)  the unencumbered balance in the fund is less than
2-22     $25 million;]
2-23                 [(2)  an unauthorized discharge of oil in excess of
2-24     100,000 gallons has occurred within the previous 30 days; and]
2-25                 [(3)  expenditures from the fund for response costs and
2-26     damages are expected to deplete the fund substantially.]
2-27           [(d)  In the event of a certification to the comptroller
 3-1     under Subsection (c) of this section, the comptroller shall collect
 3-2     the fee at the rate of four cents per barrel until the unencumbered
 3-3     balance in the fund reaches $25 million or any lesser amount that
 3-4     the commissioner determines is necessary to pay response costs and
 3-5     damages without substantially depleting the fund.  The commissioner
 3-6     shall certify to the comptroller the date on which the unencumbered
 3-7     balance in the fund exceeds $25 million or such other lesser
 3-8     amount.  The fee shall not be collected or required to be paid on
 3-9     or after the first day of the second month following the
3-10     commissioner's certification to the comptroller.]
3-11           [(e)  For purposes of this section, the unencumbered balance
3-12     of the fund shall be determined by the unencumbered cash balance of
3-13     the fund at the end of each month or on the date of a finding under
3-14     Subsection (c) of this section.]
3-15           SECTION 3. Section 91.111, Natural Resources Code, is amended
3-16     by amending Subsection (c) and adding Subsection (e) to read as
3-17     follows:
3-18           (c)  The fund consists of:
3-19                 (1)  penalties imposed under Section 85.381 for
3-20     violation of a law, order, or rule relating to well plugging
3-21     requirements;
3-22                 (2)  proceeds from bonds and other financial assurances
3-23     required by this chapter, subject to the refund provisions of
3-24     Section 91.1091;
3-25                 (3)  private contributions, including contributions
3-26     made under Section 89.084;
3-27                 (4)  expenses collected under Section 89.083;
 4-1                 (5)  fees imposed under Section 85.2021;
 4-2                 (6)  civil penalties collected for violations of
 4-3     Chapter 89 or of rules or orders relating to plugging that are
 4-4     adopted under this code;
 4-5                 (7)  proceeds collected under Sections 89.085 and
 4-6     91.115;
 4-7                 (8)  interest earned on the funds deposited in the
 4-8     fund;
 4-9                 (9)  fees collected under Section 91.104;
4-10                 (10)  civil penalties or costs recovered under Section
4-11     91.457 or 91.459;
4-12                 (11)  oil and gas waste hauler permit application fees
4-13     collected under Section 29.015, Water Code;
4-14                 (12)  costs recovered under Section 91.113(f);
4-15                 (13)  hazardous oil and gas waste generation fees
4-16     collected under Section 91.605;
4-17                 (14)  oil-field cleanup regulatory fees on oil
4-18     collected under Section 81.116;
4-19                 (15)  oil-field cleanup regulatory fees on gas
4-20     collected under Section 81.117;
4-21                 (16)  fees for a reissued certificate collected under
4-22     Section 85.167;
4-23                 (17)  fees collected under Section 91.1013;
4-24                 (18)  fees collected under Section 89.088;
4-25                 (19)  penalties collected under Section 81.0531; [and]
4-26                 (20)  legislative appropriations; and
4-27                 (21)  fees deposited to the credit of the fund under
 5-1     Section 40.151(e).
 5-2           (e)  The commission by rule may reduce the amount of a fee
 5-3     imposed under Section 81.116(a), 81.117(a), 85.2021(a) or (c), or
 5-4     91.104(c) if the commission determines that a portion of the
 5-5     revenue from the fee is not necessary to fully accomplish the
 5-6     purposes of the fund.  If the commission reduces the amount of a
 5-7     fee described by this subsection, the commission by rule may
 5-8     increase the amount of the fee to an amount not more than the
 5-9     statutory amount if the commission subsequently determines that the
5-10     additional revenue is necessary to fully accomplish the purposes of
5-11     the fund.
5-12           SECTION 4. Section 91.112(a), Natural Resources Code, is
5-13     amended to read as follows:
5-14           (a)  Money in the fund may be used by the commission or its
5-15     employees or agents for:
5-16                 (1)  conducting a site investigation or environmental
5-17     assessment to determine:
5-18                       (A)  the nature and extent of contamination
5-19     caused by oil and gas wastes or other substances or materials
5-20     regulated by the commission under Section 91.101; and
5-21                       (B)  the measures that should be taken to control
5-22     or clean up the wastes, substances, or materials described in
5-23     Paragraph (A);
5-24                 (2)  controlling or cleaning up oil and gas wastes or
5-25     other substances or materials regulated by the commission under
5-26     Section 91.101 that are causing or are likely to cause the
5-27     pollution of surface or subsurface water, consistent with Section
 6-1     91.113;
 6-2                 (3)  plugging abandoned wells and administering or
 6-3     enforcing permits, orders, and rules relating to the commission's
 6-4     authority to prevent pollution under this chapter, Chapter 89, or
 6-5     any other law administered or enforced by the commission under
 6-6     Title 3;
 6-7                 (4)  implementing Subchapter N and enforcing rules,
 6-8     orders, and permits adopted or issued under that subchapter; [and]
 6-9                 (5)  preparing the report required under Subsection
6-10     (b); and
6-11                 (6)  implementing the provisions of Chapter 40 that
6-12     relate to the authority of the commission, including administering
6-13     or enforcing any rule, order, or permit adopted or issued by the
6-14     commission under that chapter.
6-15           SECTION 5. Sections 40.156(b) and (c), Natural Resources
6-16     Code, are repealed.
6-17           SECTION 6. (a)  This Act takes effect September 1, 2001.
6-18           (b)  The changes in law made by this Act apply only to fees
6-19     levied and collected on or after the effective date of this Act.