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.