80R9328 T

By: Hancock H.B. No. 1956

A BILL TO BE ENTITLED

AN ACT

relating to underground storage tank financial responsibility notification requirements and the shutdown of underground storage tank facilities by the Texas Commission on Environmental Quality and the Attorney General for failure to properly maintain financial assurance.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Section 26.3475, Water Code, is amended by amending the heading and adding Subsection (d-1) to read as follows:

Sec. 26.3475. RELEASE DETECTION REQUIREMENTS; SPILL AND OVERFILL PREVENTION; CORROSION PROTECTION; FINANCIAL RESPONSIBILITY; NOTICE OF VIOLATION; SHUTDOWN. (a) All piping in an underground storage tank system that routinely conveys regulated substances under pressure must comply with commission requirements for pressurized piping release detection equipment.

(b) All piping in an underground storage tank system that routinely conveys regulated substances under suction must comply with commission requirements for suction-type piping release detection equipment.

(c) A tank in an underground storage tank system must comply with commission requirements for:

(1) tank release detection equipment; and

(2) spill and overfill equipment.

(d) An underground storage tank system must comply with commission requirements for applicable tank integrity assessment and corrosion protection not later than December 22, 1998.

(d-1) A tank owner or operator must maintain financial responsibility as required under Section 26.352.

(e) The commission may issue a notice of violation to the owner or operator of an underground storage tank system that does not comply with this section, informing the owner or operator of the nature of the violation and that the commission may order the noncomplying underground storage tank system placed out of service if the owner or operator does not correct the violation within 30 days after the date the notice is received. If the owner or operator does not correct the violation within the prescribed time, the commission may order the noncomplying underground storage tank system out of service.

SECTION 2. Section 26.352, Water Code, is amended to read as follows:

Sec. 26.352. FINANCIAL RESPONSIBILITY. (a) The commission by rule shall adopt requirements for maintaining evidence of financial responsibility for taking corrective action and compensating third parties for bodily injury and property damage caused by sudden and nonsudden accidental releases arising from operating an underground storage tank.

(b) The rules must require that, after December 22, 1998, the owner or operator of a site for which a closure letter has been issued under Section 26.3572 shall have insurance coverage or evidence of financial responsibility sufficient to satisfy all financial responsibility requirements under federal law or regulations. The rules must require that an owner or operator of a site that has been issued a closure letter and who is eligible to have a portion of any future corrective action costs paid under Section 26.3512 shall have insurance coverage or evidence of financial responsibility sufficient to satisfy the first expenses for corrective action as provided by Section 26.3512(k).

(c) The commission shall seek the assistance of the Texas Department of Insurance in developing the minimum requirements for insurance coverage required under this section.

(d) 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 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.

(e) 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.

(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. 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. The commission may order an owner or operator to take a noncomplying underground storage tank system out of service under Section 26.3475. The commission may also 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.

SECTION 3. Subchapter I, Chapter 26, Water Code, is amended by adding new Section 26.3521 to read as follows:

Sec. 26.3521. UNDERGROUND STORAGE TANK FINANCIAL RESPONSIBILITY NOTIFICATION REQUIREMENTS. Any underground storage tank insurance policy held in compliance with Section 26.352 of this chapter must contain a provision requiring the insurer to provide notification to the Texas Commission on Environmental Quality when an underground storage tank owner or operator ceases to be insured by that insurer, either through termination, cancellation, non-renewal, or other cessation of coverage. Notice must be mailed within 30 days after the effective date of coverage cessation.

SECTION 4. The changes in law made by Sections 1 and 2 apply only to the financial assurance in effect at a facility on or after September 1, 2007. An order entered by the commission before September 1, 2007, is governed by the law in effect at the time the order is entered, and the former law is continued in effect for that purpose.

SECTION 5. The changes in law made by Section 3 apply only to an insurance policy that is delivered, issued for delivery, or renewed on or after January 1, 2008. A policy delivered, issued for delivery, or renewed before January 1, 2008, is governed by the law as it existed immediately before the effective date of this Act, and that law is continued in effect for that purpose.

SECTION 6. The Texas Commission on Environmental Quality may adopt rules implementing the changes in law effected by this Act.

SECTION 7. The Texas Department of Insurance may make rules consistent with this goal, or enter into an agreement with the Texas Commission on Environmental Quality, as necessary, to effectuate enforcement.

SECTION 8. This Act takes effect September 1, 2007.