H.B. No. 1987
AN ACT
relating to the regulation of underground and aboveground storage 
tanks.    
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Section 7.156(c), Water Code, is amended to read 
as follows:     
	(c)  A person commits an offense if the person is an owner or 
operator of an underground [undeground] storage tank regulated 
under Chapter 26 into which any regulated substance is delivered 
[or physically delivers any regulated substance into an underground 
storage tank regulated under Chapter 26] unless the underground 
storage tank has been issued a valid, current underground storage 
tank registration and certificate of compliance under Section 
26.346.
	SECTION 2.  Section 26.342, Water Code, is amended by adding 
Subdivision (16-a) to read as follows:
		(16-a)  "Subsurface soil" does not include backfill or 
native material that is placed immediately adjacent to or 
surrounding an underground storage tank system when the system is 
installed or the system's individual components are replaced unless 
free phase petroleum product is present in the backfill or native 
material.
	SECTION 3.  Sections 26.3467(a) and (b), Water Code, are 
amended to read as follows:
	(a)  The owner or operator of an underground storage tank 
into which a regulated substance is to be deposited shall provide 
the common carrier a copy of the certificate of compliance for the 
specific underground storage tank into which the regulated 
substance is to be deposited before accepting delivery of the 
regulated substance into the underground storage tank.  The owner 
or operator of an underground storage tank may comply with this 
subsection by obtaining a current copy of the certificate from the 
commission's Internet website.
	(b)  An owner or operator of an underground storage tank [A 
person] who [knowingly] violates Subsection (a) commits an offense 
that is punishable as provided by Section 7.156 for an offense under 
that section.
	SECTION 4.  Section 26.351(f), Water Code, is amended to 
read as follows:    
	(f)  The person performing corrective action under this 
section, if the release was reported to the commission on or before 
December 22, 1998, shall meet the following deadlines:
		(1)  a complete site assessment and risk assessment 
(including, but not limited to, risk-based criteria for 
establishing target concentrations), as determined by the 
executive director, must be received by the agency no later than 
September 1, 2002;
		(2)  a complete corrective action plan, as determined 
by the executive director and including, but not limited to, 
completion of pilot studies and recommendation of a cost-effective 
and technically appropriate remediation methodology, must be 
received by the agency no later than September 1, 2003.  The person 
may, in lieu of this requirement, submit by this same deadline a 
demonstration that a corrective action plan is not required for the 
site in question under commission rules.  Such demonstration must 
be to the executive director's satisfaction;
		(3)  for those sites found under Subdivision (2) to 
require a corrective action plan, that plan must be initiated and 
proceeding according to the requirements and deadlines in the 
approved plan no later than March 1, 2004;
		(4)  for sites which require either a corrective action 
plan or groundwater monitoring, a comprehensive and accurate annual 
status report concerning those activities must be submitted to the 
agency;
		(5)  for sites which require either a corrective action 
plan or groundwater monitoring, all deadlines set by the executive 
director concerning the corrective action plan or approved 
groundwater monitoring plan shall be met; and
		(6)  for sites that require either a corrective action 
plan or groundwater monitoring, have met all other deadlines under 
this subsection, and have submitted annual progress reports that 
demonstrate progress toward meeting closure requirements, a site 
closure request must be submitted to [requests for all sites where] 
the executive director [agreed in writing that no corrective action 
plan was required must be received by the agency] no later than 
September 1, 2007 [2005].  The request must be complete, as judged 
by the executive director.
	SECTION 5.  Section 26.355(b), Water Code, is amended to 
read as follows:    
	(b)  An owner or operator of an underground or aboveground 
storage tank from which a regulated substance is released is liable 
to the state unless:
		(1)  the release was caused by:                                        
				(A)  [(1)] an act of God;                           
				(B)  [(2)] an act of war;                           
				(C)  [(3)] the negligence of the State of 
Texas or the United States; or
				(D)  [(4)] an act or omission of a third 
party; or
		(2)  the site at which the release occurred has been 
admitted into the petroleum storage tank state-lead program under 
Section 26.3573(r-1).
	SECTION 6.  Section 26.3573, Water Code, is amended by 
amending Subsections (d), (r), and (s) and adding Subsection (r-1) 
to read as follows:
	(d)  The commission may use the money in the petroleum 
storage tank remediation account to pay:
		(1)  necessary expenses associated with the 
administration of the petroleum storage tank remediation account 
and the groundwater protection cleanup program[, not to exceed an 
amount equal to: 11.8 percent of the gross receipts of that account 
for FY02/03; 16.40 percent of the gross receipts of that account for 
FY04/05; and 21.1 percent of the gross receipts of that account for 
FY06/07];
		(2)  expenses associated with investigation, cleanup, 
or corrective action measures performed in response to a release or 
threatened release from a petroleum storage tank, whether those 
expenses are incurred by the commission or pursuant to a contract 
between a contractor and an eligible owner or operator as 
authorized by this subchapter; and
		(3)  subject to the conditions of Subsection (e) [of 
this section], expenses associated with investigation, cleanup, or 
corrective action measures performed in response to a release or 
threatened release of hydraulic fluid or spent oil from hydraulic 
lift systems or tanks located at a vehicle service and fueling 
facility and used as part of the operations of that facility.
	(r)  Except as provided by Subsection (r-1), the [The] 
petroleum storage tank remediation account may not be used to 
reimburse any person for corrective action performed after 
September 1, 2005.
	(r-1)  In this subsection, "state-lead program" means the 
petroleum storage tank state-lead program administered by the 
commission.  The executive director shall grant an extension for 
corrective action reimbursement to a person who is an eligible 
owner or operator under Section 26.3571.  The petroleum storage 
tank remediation account may be used to reimburse an eligible owner 
or operator for corrective action performed under an extension 
before August 31, 2007.  Not later than July 1, 2007, an eligible 
owner or operator who is granted an extension under this subsection 
may apply to the commission in writing using a form provided by the 
commission to have the site subject to corrective action placed in 
the state-lead program.  The eligible owner or operator must agree 
in the application to allow site access to state personnel and state 
contractors as a condition of placement in the state-lead program 
under this subsection.  On receiving the application for placement 
in the state-lead program under this subsection, the executive 
director by order shall place the site in the state-lead program 
until the corrective action is completed to the satisfaction of the 
commission.  An eligible owner or operator of a site that is placed 
in the state-lead program under this subsection is not liable to the 
commission for any costs related to the corrective action.
	(s)  The petroleum storage tank remediation account may not 
be used to reimburse any person for corrective action contained in a 
reimbursement claim filed with the commission after March 1, 2008
[2006].
	SECTION 7.  Section 26.361, Water Code, is amended to read as 
follows:       
	Sec. 26.361.  EXPIRATION OF REIMBURSEMENT PROGRAM. 
Notwithstanding any other provision of this subchapter, the 
reimbursement program established under this subchapter expires 
September 1, 2008 [2006].  On or after September 1, 2008 [2006], the 
commission may not use money from the petroleum storage tank 
remediation account to reimburse an eligible owner or operator for 
any expenses of corrective action or to pay the claim of a person 
who has contracted with an eligible owner or operator to perform 
corrective action.
	SECTION 8.  (a)  Section 26.3467(b), Water Code, as amended 
by this Act, applies only to an offense committed on or after the 
effective date of this Act.  For purposes of this section, an 
offense is committed before the effective date of this Act if any 
element of the offense occurs before that date.
	(b)  An offense committed before the effective date of this 
Act is governed by the law in effect when the offense was committed, 
and the former law is continued in effect for that purpose.
	SECTION 9.  This Act takes effect September 1, 2005.                           
______________________________              ______________________________
 
   President of the Senate                               Speaker of the House      
	I certify that H.B. No. 1987 was passed by the House on April 
22, 2005, by a non-record vote.
                                                  ______________________________
                                                     Chief Clerk of the House   
	I certify that H.B. No. 1987 was passed by the Senate on May 
25, 2005, by the following vote:  Yeas 31, Nays 0.
                                                  ______________________________
                                                     Secretary of the Senate    
APPROVED:  _____________________                                            
 
                   Date                                                      
 
          _____________________                                          
 
                 Governor