HBA-CBW H.B. 2687 77(R)    BILL ANALYSIS


Office of House Bill AnalysisH.B. 2687
By: Junell
Natural Resources
3/22/2001
Introduced



BACKGROUND AND PURPOSE 

Under current law, a petroleum product delivery fee is assessed on bulk
loads of motor fuel.  The revenue from this fee is used to fund the
petroleum storage tank remediation account (account) and is administered by
the Texas Natural Resource Conservation Commission (TNRCC).  The account
serves as a state sponsored insurance fund to reimburse tank owners in the
effort to clean up contaminated and leaking tanks.  In 1995, the fee was
doubled to pay back obligations 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 private insurance providers.
In addition,  there are concerns that the account will no longer accept new
claims for cleanup projects. 

In 1999,  the 76th Legislature passed legislation that limited the
administrative expenses of the account to an amount specifically
appropriated for that purpose, decreased by one-quarter the petroleum
product delivery fee on bulk loads of motor fuel, and provided for the
termination of the account by September 1, 2003.    In addition, the Act
suspended the petroleum product delivery fee (fee) after the account
reached its unobligated balance cap of $100 million in February 2000.  The
fee may be reinstated if the unobligated balance falls to $25 million.  

There are concerns that the remediation projects eligible for reimbursement
for corrective action expenses may not be finished by the September 1,
2003, deadline, the unobligated balance may fall back to $25 million by
December 2001, and  the corrective actions may take longer than
anticipated. House Bill 2687 reduces the delivery fees for users of certain
petroleum products and sets forth provisions regarding the application of
such fees. 

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. 

ANALYSIS

House Bill 2687 amends the Water Code to decrease from 6.7 to 6 percent the
amount of gross receipts of the petroleum storage tank remediation account
(account) that the Texas Natural Resource Conservation Commission (TNRCC)
is authorized to spend on expenses associated with the administration of
the account and the groundwater protection cleanup program (Sec. 26.3573).
The bill decreases the fees imposed on the withdrawal from a bulk facility
of a petroleum product and sets forth the amounts. The bill requires  TNRCC
to notify the comptroller of public accounts of the date on which the
amount deposited to the credit of the account during the preceding two
years exceeds $96, rather than on the date in which the unobligated balance
in the account equals  or exceeds $100 million.  The bill prohibits a fee
from being collected or required to be paid on or after the first day of
the second month following notification at any time, rather than after
certain deposits have been made to the general revenue fund (Sec. 26.3574).
The  bill clarifies that an underground storage tank under certain
provisions of the bill refers to a tank that is used to store gasoline or
diesel fuel (Sec. 26.346).   

The bill provides  that the ground protection cleanup program expires
September 1, 2005, rather than 2003. The bill prohibits TNRCC from using
money from the account for reimbursements on or after September 1, 2005,
rather than 2003, and prohibits the commission from collecting a fee on or
after September 1, 2005, rather than March 1, 2002 (Sec. 26.361). 

EFFECTIVE DATE

September 1, 2001.