80R10958 JTS-D
 
  By: Hancock H.B. No. 1956
 
Substitute the following for H.B. No. 1956:
 
  By:  Kuempel C.S.H.B. No. 1956
 
A BILL TO BE ENTITLED
AN ACT
relating to the financial responsibility requirements applicable
to owners or operators of underground storage tanks.
       BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
       SECTION 1.  Section 26.352, Water Code, is amended by
amending Subsections (d), (e), and (f) and adding Subsections
(e-1), (g), (h), and (i) to read as follows:
       (d)  A [An owner or operator of an underground storage tank
may submit the] registration certificate issued by the commission
[to the owner or operator] under Section 26.346:
             (1)  may be submitted by an owner or operator of an
underground storage tank [of this code] to the United States
Environmental Protection Agency as evidence of the owner's or
operator's eligibility for funds for any expense for corrective
action incurred for confirmed releases initially discovered and
reported to the commission on or before December 22, 1998; and
             (2)  is not acceptable evidence of financial
responsibility for:
                   (A)  an underground storage tank that contains a
petroleum substance other than:
                         (i)  a petroleum product; or
                         (ii)  spent oil or hydraulic fluid if the
tank is located at a vehicle service and fueling facility and is
used as part of the operations of that facility; or
                   (B)  any expenses for corrective action for
confirmed releases initially discovered and reported to the
commission after December 22, 1998.
       (e)  An owner or operator of an underground storage tank used
for storing petroleum products shall submit annually with the
compliance certification form required by Section 26.346 proof that
the owner or operator maintains evidence of financial
responsibility as required by Subsection (a) [A registration
certificate issued under Section 26.346 is not acceptable evidence
of financial responsibility for:
             [(1)  an underground storage tank that contains a
petroleum substance other than:
                   [(A)a petroleum product; or
                   [(B)  spent oil or hydraulic fluid if the tank is
located at a vehicle service and fueling facility and is used as
part of the operations of that facility; or
             [(2)  any expenses for corrective action for confirmed
releases initially discovered and reported to the commission after
December 22, 1998].
       (e-1)  An insurance company or other entity that provides
insurance coverage or another form of financial assurance to an
owner or operator of an underground storage tank for purposes of
this section shall notify the commission if the insurance coverage
or other financial assurance is canceled or not renewed.  The
insurance company or other entity shall mail, fax, or e-mail notice
not later than the 30th day after the date the coverage terminates.  
The Texas Department of Insurance shall adopt rules to implement
and enforce this subsection.
       (f)  The commission shall enforce this section and may impose
administrative and civil penalties on the owners or operators of
underground storage tanks if acceptable evidence of financial
responsibility is not maintained. The amount of an administrative
or civil penalty imposed under this subsection may not be less than
the annual cost, as estimated by the commission, of maintaining the
minimum insurance coverage required for the tank as determined
under Subsection (c).
       (g)  An owner or operator commits an offense if the owner or
operator operates an underground storage tank knowing that
acceptable evidence of financial responsibility does not exist and
is subject to criminal prosecution as provided by Subchapter F.
       (h)  The commission may seek injunctive relief in the
district courts of Travis County to force the temporary or
permanent closure of an underground storage tank for which
acceptable evidence of financial responsibility is not maintained.
       (i)  The commission may order an owner or operator of an
underground storage tank that fails to maintain acceptable evidence
of financial responsibility to place the tank out of service in the
same manner that the commission may issue such an order under
Section 26.3475(e).
       SECTION 2.  Section 26.352(e), Water Code, as amended by
this Act, applies only to a compliance certification form submitted
to the Texas Commission on Environmental Quality on or after the
effective date of this Act. A compliance certification form
submitted before the effective date of this Act is governed by the
law in effect at the time the form was submitted, and that law is
continued in effect for that purpose.
       SECTION 3.  The change in law made by Section 26.352(e-1),
Water Code, as added by this Act, applies only to an insurance
policy or other form of financial assurance that is terminated on or
after January 1, 2008. A policy or other form of financial
insurance that is terminated before that date is governed by the law
in effect at the time the policy or other financial assurance is
terminated, and that law is continued in effect for that purpose.
       SECTION 4.  Section 26.352(f), Water Code, as amended by
this Act, and Section 26.352(i), Water Code, as added by this Act,
apply only to a failure to maintain evidence of financial
responsibility that occurs on or after the effective date of this
Act. A failure to maintain evidence of financial responsibility
that occurs before the effective date of this Act is governed by the
law in effect at the time the failure occurred, and that law is
continued in effect for that purpose.
       SECTION 5.  This Act takes effect September 1, 2007.