HBA-NMO C.S.H.B. 2816 76(R)BILL ANALYSIS


Office of House Bill AnalysisC.S.H.B. 2816
By: Junell
Natural Resources
4/5/1999
Committee Report (Substituted)



BACKGROUND AND PURPOSE 

Under current law, the petroleum product delivery fee is assessed on bulk
loads of motor fuel. Proceeds from the fee are used to fund the Petroleum
Storage Tank Remediation Account (account) administered by the Texas
Natural Resource Conservation Commission (TNRCC).  The account serves as a
state-sponsored insurance fund to clean up sites contaminated by leaking
petroleum storage tanks (tanks).  In 1995, the fee was doubled to pay back
loans from the general revenue fund issued when the account was insolvent.

As of December 22, 1998, tank owners may no longer rely on the account as
proof of federally mandated insurance.  To meet federal requirements, tank
owners must now acquire cleanup insurance from the private sector. In
addition, the account will accept no new claims for cleanup.  

C.S.H.B. 2816 limits the administrative expenses of the account to an
amount specifically appropriated for that purpose; decreases by one-quarter
the petroleum product delivery fee on bulk loads of motor fuel and provides
for the termination of the account on September 1, 2003, rather than 2001. 
    
RULEMAKING AUTHORITY

It is the opinion of the Office of House Bill Analysis that this bill does
not expressly delegate any additional rulemaking authority to a state
officer, department, agency, or institution. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Section 26.3573(d), Water Code, to authorize the Texas
Natural Resource Conservation Commission (TNRCC) to use the money in the
petroleum storage tank remediation account (account) to pay necessary
expenses associated with the administration of the account and the
groundwater protection cleanup program, not to exceed the amount
specifically appropriated for that purpose, rather than five percent of the
gross receipts of the account. 

SECTION 2.  Amends Sections 26.3574, Water Code, by amending Subsections
(b), (x), and (y), and adding Subsection (aa), as follows: 

(b)  Decreases by one-quarter the respective fees imposed on persons who
withdrawal petroleum from bulk (fee) 

(x) Prohibits the fee from being collected or required to be paid when the
balance in the petroleum storage tank remediation account equals or exceeds
$100 million, rather than $125 million.  Makes a conforming change. 

(y) Decreases by one-quarter the respective fee that each operator of a
bulk facility is required to collect if the fee is reinstated as a result
of the unobligated balance in the petroleum storage tank remediation
account falling below $25 million. 

(aa) Requires TNRCC to report to the Legislative Budget Board at the end of
each fiscal quarter on the financial status of the petroleum storage tank
remediation account. 

 SECTION 3.  Amends Section 26.361, Water Code, to provide that the
reimbursement program established under this subchapter (Underground and
Aboveground Storage Tanks) expires on September 1, 2003, rather than 2001.
Prohibits TNRCC from collecting a fee on or after March 1, 2002.  Makes
conforming changes. 

SECTION 4.  Effective date: September 1, 1999.

SECTION 5.  Emergency clause.

COMPARISON OF ORIGINAL TO SUBSTITUTE

The substitute differs from the original in SECTION 1 by amending Section
26.3573(d), Water Code, to authorize the Texas Natural Resource
Conservation Commission (TNRCC) to use the money in the petroleum storage
tank remediation account (account) to pay necessary expenses associated
with the administration of the account and the groundwater protection
cleanup program, not to exceed the amount specifically appropriated for
that purpose, rather than five percent of the gross receipts of the
account.   

SECTION 2 of the substitute is redesignated, with changes, from SECTION 1
of the original.  The substitute differs from the original in Subsections
(b) and (y) by decreasing by one-quarter, rather than one-half, the
respective fee imposed on persons who withdraw petroleum from bulk (fee).
The substitute also differs from the original in Subsection (x) to prohibit
the fee from being collected or required to be paid when the balance in the
petroleum storage tank remediation account equals or exceeds $100 million,
rather than $125 million; and by adding new Subsection (aa) to require
TNRCC to report to the Legislative Budget Board at the end of each fiscal
quarter on the financial status of the petroleum storage tank remediation
account. 

SECTION 3 of the substitute is redesignated from SECTION 2 of the original.
The substitute differs from the original in this section by prohibiting
TNRCC from collecting a fee on or after March 1, 2002, rather than
September 1, 2001. 

SECTIONS 4 and 5 of the substitute are redesignated from SECTIONS 3 and 4
of the original.