By:  Brown                                            S.B. No. 1334
         Line and page numbers may not match official copy.
         Bill not drafted by TLC or Senate E&E.
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to the creation of the Railroad Commission voluntary
 1-3     cleanup program.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1.  Chapter 91, Natural Resources Code, is amended by
 1-6     adding Subchapter I to read as follows:
 1-7        SUBCHAPTER I.  RAILROAD COMMISSION VOLUNTARY CLEANUP PROGRAM
 1-8           Sec. 91.301.  DEFINITIONS.  In this subchapter:
 1-9                 (1)  "Commission" means Railroad Commission of Texas.
1-10                 (2)  "Contaminant" includes a waste, pollutant, or
1-11     substance regulated by or that results from an activity under the
1-12     jurisdiction of the Railroad Commission of Texas under Chapter 91
1-13     or 141, Natural Resources Code, or Chapter 27, Water Code.
1-14                 (3)  "Environmental assessment" means the assessment
1-15     described by Section 91.305.
1-16                 (4)  "Response action" means the cleanup or removal of
1-17     a contaminant from the environment.
1-18                 (5)  "Voluntary cleanup" means a response action taken
1-19     under and in compliance with this subchapter.
1-20           Sec. 91.302.  PURPOSE.  The purpose of the Railroad
1-21     Commission Voluntary Cleanup Program is to provide incentive to
1-22     remediate property by removing liability to the State of lenders,
1-23     developers, owners and operators that did not cause or contribute
 2-1     to contamination released at the site covered by the certificate.
 2-2     The program does not replace other voluntary actions and is
 2-3     restricted to voluntary actions.
 2-4           Sec. 91.303.  ELIGIBILITY FOR RAILROAD COMMISSION VOLUNTARY
 2-5     CLEANUP PROGRAM.  (a)  Any site that is contaminated with a waste,
 2-6     pollutant or substance identified in Section 91.114(2) is eligible
 2-7     for participation in the Railroad Commission Voluntary Cleanup
 2-8     Program except the portion of a site that may be subject to a
 2-9     Commission order.
2-10           (b)  A person electing to participate in the voluntary
2-11     cleanup program must:
2-12                 (1)  enter into a voluntary cleanup agreement as
2-13     provided by Section 91.120; and
2-14                 (2)  pay all costs of Commission oversight of the
2-15     voluntary cleanup.
2-16           Sec. 91.304.  ELIGIBILITY OF CERTAIN PERSONS FOR RELEASE FROM
2-17     LIABILITY.  On certification under Section 91.123, a person is
2-18     released from all liability to the state for cleanup of
2-19     contamination that was released at the site covered by the
2-20     certificate except for releases or consequences the person
2-21     contributed to or caused.
2-22           Sec. 91.305.  APPLICATION TO PARTICIPATE IN VOLUNTARY CLEANUP
2-23     PROGRAM.  (a)  A person who desires to participate in the voluntary
2-24     cleanup program under this subchapter must submit to the Commission
2-25     an application and an application fee as prescribed by this
2-26     section.
 3-1           (b)  An application submitted under this section must:
 3-2                 (1)  be on a form provided by the Commission;
 3-3                 (2)  contain:
 3-4                       (A)  general information concerning:
 3-5                             (i)  the person and the person's
 3-6     capability, including the person's financial capability, to perform
 3-7     the voluntary cleanup; and
 3-8                             (ii)  the site;
 3-9                             (iii)  the name, address and telephone
3-10     number of all surface and mineral owners.
3-11                       (B)  other background information requested by
3-12     the Commission;
3-13                       (C)  an environmental assessment of the actual or
3-14     threatened release of the contaminant at the site; and,
3-15                       (D)  if the person entering into the Voluntary
3-16     Cleanup agreement is not the surface owner, written authorization
3-17     from the surface owner agreeing to applicant's participation in the
3-18     program.
3-19                 (3)  be accompanied by an application fee of $1,000.00;
3-20     and
3-21                 (4)  be submitted according to schedules set by the
3-22     Commission.
3-23           (c)  The environmental assessment required by Subsection (b)
3-24     must include:
3-25                 (1)  a legal description of the site;
3-26                 (2)  a description of the physical characteristics of
 4-1     the site;
 4-2                 (3)  the operational history of the site to the extent
 4-3     that history is known by the applicant;
 4-4                 (4)  information of which the applicant is aware
 4-5     concerning the nature and extent of any relevant contamination or
 4-6     release at the site and immediately contiguous to the site, or
 4-7     wherever the contamination came to be located; and
 4-8                 (5)  relevant information of which the applicant is
 4-9     aware concerning the potential for human exposure to contamination
4-10     at the site.
4-11           (d)  An application shall be processed in the order in which
4-12     it is received.
4-13           (e)  Fees collected under this section shall be deposited to
4-14     the credit of the oil field cleanup fund.
4-15           Sec. 91.306.  REJECTION OF APPLICATION.  (a)  The Commission
4-16     may reject an application submitted under Section 91.305 if:
4-17                 (1)  a state, or federal enforcement action is pending
4-18     that concerns the remediation of the contaminant described in the
4-19     application;
4-20                 (2)  a federal grant requires an enforcement action at
4-21     the site;
4-22                 (3)  the application is not complete or accurate; or
4-23                 (4)  The site is ineligible under Section 91.118.
4-24           (b)  If an application is rejected because it is not complete
4-25     or accurate, the Commission, not later than the 45th day after
4-26     receipt of the application, shall provide the person with a list of
 5-1     all information needed to make the application complete or
 5-2     accurate.  A person may resubmit an application once without
 5-3     submitting an additional application fee if the person resubmits
 5-4     the application not later than the 45th day after the date the
 5-5     Commission issues notice that the application has been rejected.
 5-6           (c)  If the Commission rejects the application, it shall:
 5-7                 (1)  notify the person that the application has been
 5-8     rejected;
 5-9                 (2)  explain the reasons for rejection of the
5-10     application; and
5-11                 (3)  inform the person that the Commission will refund
5-12     half the person's application fee unless the person indicates a
5-13     desire to resubmit an application.
5-14           Sec. 91.307.  VOLUNTARY CLEANUP AGREEMENT.  (a)  Before the
5-15     Commission evaluates any plan or report detailing the remediation
5-16     goals and proposed methods of remediation, the person desiring to
5-17     participate in the voluntary cleanup program must enter into a
5-18     voluntary cleanup agreement that sets forth the terms and
5-19     conditions of the evaluation of the reports and the implementation
5-20     of work plans.
5-21           (b)  A voluntary cleanup agreement must provide for:
5-22                 (1)  recovery by the Commission of all reasonable
5-23     costs:
5-24                       (A)  incurred by the Commission in review and
5-25     oversight of the person's work plan and reports and as a result of
5-26     the commission's field activities;
 6-1                       (B)  attributable to the voluntary cleanup
 6-2     agreement; and
 6-3                       (C)  in excess of the amount of fees submitted by
 6-4     the applicant under Section 91.305.
 6-5                 (2)  a schedule of payments to the Commission to be
 6-6     made by the person for recovery of all Commission costs fairly
 6-7     attributable to the voluntary cleanup program, including direct and
 6-8     indirect costs of overhead, salaries, equipment, and utilities, and
 6-9     legal, management, and support costs; and
6-10                 (3)  appropriate tasks, deliverables, and schedules.
6-11           (c)  The voluntary cleanup agreement shall:
6-12                 (1)  identify all statutes and rules that must be
6-13     complied with;
6-14                 (2)  describe any work plan or report to be submitted
6-15     for review by the Commission, including a final report that
6-16     provides all information necessary to verify that all work
6-17     contemplated by the voluntary cleanup agreement has been completed;
6-18                 (3)  include a schedule for submitting the information
6-19     required by Subdivision (2); and
6-20                 (4)  state the technical standards to be applied in
6-21     evaluating the work plans and reports, with reference to the
6-22     proposed future land use to be achieved.
6-23           (d)  If an agreement is not reached between a person desiring
6-24     to participate in the voluntary cleanup program and the Commission
6-25     on or before the 30th day after good faith negotiations on the
6-26     voluntary cleanup agreement have begun:
 7-1                 (1)  the person or the Commission may withdraw from the
 7-2     negotiations; and
 7-3                 (2)  the Commission retains the person's application
 7-4     fee.
 7-5           (e)  The Commission may not initiate an enforcement action
 7-6     against a person who is in compliance with this section for the
 7-7     contamination or release that is the subject of the voluntary
 7-8     cleanup agreement or for the activity that resulted in the
 7-9     contamination or release.
7-10           Sec. 91.308.  TERMINATION OF AGREEMENT; COST RECOVERY.
7-11     (a)  The Commission or the person in its sole discretion may
7-12     terminate the agreement by giving 15 days' advance written notice
7-13     to the other.  Only those costs incurred or obligated by the
7-14     Commission before notice of termination of the agreement are
7-15     recoverable under the agreement if the agreement is terminated.
7-16           (b)  Termination of the agreement does not affect any right
7-17     the Commission has under other law to recover costs.
7-18           (c)  If the person does not pay to the Commission the state's
7-19     costs associated with the voluntary cleanup before the 31st day
7-20     after the date the person receives notice that the costs are due
7-21     and owing, the attorney general, at the request of the commission,
7-22     shall bring an action in the name of the state in Travis County to
7-23     recover the amount owed and reasonable legal expenses, including
7-24     attorney's fees, witness costs, court costs, and deposition costs.
7-25           Sec. 91.309.  VOLUNTARY CLEANUP WORK PLANS AND REPORTS.
7-26     (a)  After signing a voluntary cleanup agreement, the person shall
 8-1     prepare and submit the appropriate work plans and reports to the
 8-2     Commission.
 8-3           (b)  The Commission shall review and evaluate the work plans
 8-4     and reports for accuracy, quality, and completeness.  The
 8-5     Commission may approve a voluntary cleanup work plan or report or,
 8-6     if a work plan or report is not approved, notify the person
 8-7     concerning additional information or commitments needed to obtain
 8-8     approval.
 8-9           (c)  At any time during the evaluation of a work plan or
8-10     report, the Commission may request the person to submit additional
8-11     or corrected information.
8-12           (d)  After considering future land use, the Commission may
8-13     approve work plans and reports submitted under this section that do
8-14     not require removal or remedy of all discharges, releases, and
8-15     threatened releases at a site if the partial response actions for
8-16     the property:
8-17                 (1)  will be completed in a manner that protects human
8-18     health and the environment;
8-19                 (2)  will not cause, contribute, or exacerbate
8-20     discharges, releases, or threatened releases that are not required
8-21     to be removed or remedied under the work plan; and
8-22                 (3)  will not interfere with or substantially increase
8-23     the cost of response actions to address the remaining discharges,
8-24     releases, or threatened releases.
8-25           Sec. 91.310.  CERTIFICATE OF COMPLETION.  (a)  If the
8-26     Commission determines that a person has successfully completed a
 9-1     voluntary cleanup approved under this subchapter, the Commission
 9-2     shall certify that the action has been completed by issuing the
 9-3     person a certificate of completion.
 9-4           (b)  The certificate of completion shall:
 9-5                 (1)  acknowledge the protection from liability to the
 9-6     State provided by Section 91.304;
 9-7                 (2)  indicate the proposed future land use; and
 9-8                 (3)  include a legal description of the site and the
 9-9     name of the site's surface and mineral owner and mineral operator
9-10     at the time the application to participate in the voluntary cleanup
9-11     program was filed.
9-12           (c)  If the Commission determines that the person has not
9-13     successfully completed a voluntary cleanup approved under this
9-14     subchapter, the Commission shall notify the person who undertook
9-15     the voluntary cleanup and the current surface and mineral owner and
9-16     mineral operator of the site that is the subject of the cleanup of
9-17     this determination.
9-18           Sec. 91.311.  PERSONS RELEASED FROM LIABILITY.  (a)  A person
9-19     who is not a responsible person under Section 91.113 at the time
9-20     the person applies to perform a voluntary cleanup:
9-21                 (1)  does not become a responsible person solely
9-22     because the person signs the application; and
9-23                 (2)  is released, on certification under Section
9-24     91.310, from all liability to the state for cleanup of areas of the
9-25     site covered by the certificate, except for releases and
9-26     consequences that the person causes.
 10-1          (b)  A person who is not a responsible person under Section
 10-2    91.113 at the time the Commission issues a certificate of
 10-3    completion under Section 91.310 is released, on issuance of the
 10-4    certificate, from all liability to the state for cleanup of areas
 10-5    of the site covered by the certificate, except for releases and
 10-6    consequences that the person causes.
 10-7          (c)  The release from liability provided by this section does
 10-8    not apply to a person who:
 10-9                (1)  acquires a certificate of completion by fraud,
10-10    misrepresentation, or knowing failure to disclose material
10-11    information;
10-12                (2)  knows at the time the person acquires an interest
10-13    in the site for which the certificate of completion was issued that
10-14    the certificate was acquired in a manner provided by subdivision
10-15    (1); or
10-16                (3)  changes land use from the use specified in the
10-17    certificate of completion if the new use may result in increased
10-18    risks to human health or the environment.
10-19          Sec. 91.312.  PERMIT NOT REQUIRED.  (a)  A state or local
10-20    permit may not be required for removal of remedial action conducted
10-21    on a site as part of a voluntary cleanup under this subchapter.  A
10-22    person shall coordinate a voluntary cleanup with ongoing federal
10-23    and state hazardous waste programs.
10-24          (b)  The Commission by rule shall require that the person
10-25    conducting the voluntary cleanup comply with any federal or state
10-26    standard, requirement, criterion, or limitation to which the
 11-1    remedial action would otherwise be subject if a permit were
 11-2    required.
 11-3          SECTION 2.  This Act takes effect immediately if it receives
 11-4    a vote of two-thirds of all the members elected to each house, as
 11-5    provided by Section 39, Article III, Texas Constitution.  If this
 11-6    Act does not receive the vote necessary for immediate effect, this
 11-7    Act takes effect September 1, 2001.