HBA-KMH C.S.H.B. 2619 76(R)BILL ANALYSIS Office of House Bill AnalysisC.S.H.B. 2619 By: Ramsay Environmental Regulation 4/23/1999 Committee Report (Substituted) BACKGROUND AND PURPOSE Texas adopted a used oil filter landfill ban in 1995 to facilitate the recycling of used oil filters. Currently, there are no statutory provisions concerning used oil filter management standards. The Texas Natural Resource Conservation Commission has had regulations in place regulating the recycling of used oil filters since 1993. Concerns have been raised that the regulations are burdensome and that it is difficult to comply with them. C.S.H.B. 2619 provides standards concerning time limits for transporting, storing, and processing of used oil filters. This bill also prohibits the discharge of used oil into the soil or water and the placement of a used oil filter containing oil on land. Furthermore, this bill subjects a person who violates a provision of this act to civil and administrative penalties. RULEMAKING AUTHORITY It is the opinion of the Office of House Bill Analysis that rulemaking authority is expressly delegated to the Texas Natural Resource Conservation Commission in SECTION 1 (Section 371.109, Health and Safety Code) and SECTION 2 of this bill. SECTION BY SECTION ANALYSIS SECTION 1. Amends Chapter 371, Health and Safety Code, by adding Subchapter E, as follows: SUBCHAPTER E. FILTER STORAGE, TRANSPORTATION, OR PROCESSING Sec. 371.101. DEFINITIONS. Defines "bill of lading," "bulk filter container," "component parts," "do-it-youselfer," "generator," "process," "processor," "store," "storage facility," "transporter," and "used oil filter." Sec. 371.102. APPLICABILITY. (a) Provides that this subchapter applies to a used oil filter only if the filter has not been separated into its component parts or burned for steel or energy recovery. (b) Sets forth that this chapter (Used Oil Collection, Management, and Recycling) does not apply to a prescribed type of industrial generator, or a do-it-yourselfer. Sec. 371.103. GENERAL REQUIREMENTS. Prohibits a person from storing, processing, or disposing of a used oil filter in a manner that results in the discharge of oil into soil or water. Prohibits a person from knowingly placing on land a used oil filter that contains oil unless the used oil filter is in a container. Provides that a bulk filter container used to store used oil filters must not leak and must be securely closed, waterproof, and in good condition. Sec. 371.104. REGISTRATION AND REPORTING. Prohibits a transporter, storage facility, or processor from storing, processing, recycling, or disposing of used oil filters unless the person is registered with the Texas Natural Resource Conservation Commission (commission). Prohibits a person from storing oil filters that in the aggregate have a volume greater than six 55-gallon drums or in more than one bulk filter container unless the person is registered with the commission as a storage facility. Requires a registered transporter, storage facility, or processor to: _renew the registration biennially; and, _report to the commission biennially the number of used oil filters the person transported, stored, or processed in the previous two years. Sec. 371.105. SHIPMENT RECORDS. Provides that each shipment of used oil filters must be accompanied by a bill of lading that conforms to commission rules. Provides that, in accordance with the commission rules, a copy of the bill of lading must be maintained by the generator, transporter, storage facility, and processor of the filters for at least three years after the date the filters were transported, stored, or processed. Provides that the bill of lading must be made available for the commission to inspect at any reasonable time. Sec. 371.106. LIMITATIONS ON STORAGE. Prohibits a storage facility from storing a used oil filter for more than 120 days. Prohibits a transporter from storing a used oil filter for more than 10 days. Prohibits a processor from storing a used oil filter for more than 30 days before it is processed. Requires a processor that stores used oil filters in a container to label each container clearly with the phrase "Used Oil Filters." Sec. 371.107. VARIANCES. Authorizes the commission to grant an individual variance to allow a generator to store used oil filters in greater aggregate volume than the volume prescribed by Section 371.104 or a person to store used oil filters for longer than the period prescribed for that person by Section 371.106. Prohibits the commission from granting a variance under this section for a period longer than two years. Sec. 371.108. SPILL PREVENTION AND CONTROL. Requires each registered storage facility and each facility of a registered processor to develop a plan to prevent spills and respond to spills. Provides that the plan must meet requirements equivalent to the federal spill prevention, control, and countermeasure requirements provided by Title 40, Code of Federal Regulations, Part 112 (Oil Pollution Prevention), as amended. Sec. 371.109. FINANCIAL RESPONSIBILITY. Requires the commission to adopt rules requiring a person required to register under Section 371.104 to demonstrate adequate financial responsibility. Sec. 371.110. CIVIL AND ADMINISTRATIVE PENALTIES. Subjects a person to liability for a civil penalty of not less than $100 or more than $500 for each violation and for each day of a continuing violation notwithstanding Sections 7.052 (Maximum Penalty) and 7.102 (Maximum Penalty), Water Code. Authorizes the commission or the attorney general at the request of the commission to bring suit under Subchapter D (Civil Penalties), Chapter 7, Water Code, to recover the penalty. Authorizes a local government with jurisdiction over the area in which the violation occurred to bring suit to recover the penalty. Subjects a violation described in this section to an administrative penalty. Authorizes the commission to recover the administrative penalty in a proceeding conducted as provided by Subchapter C (Administrative Penalties), Chapter 7, Water Code. SECTION 2. (a) Effective date: September 1, 1999, except as provided by Subsection (b) of this section. (b) Provides that the following provisions take effect January 1, 2000; Sections 371.104371.106, and 371.110, Health and Safety Code, as added by this Act. (c) Requires the commission to adopt rules so that the commission may begin enforcement of Sections 371.104-371.106 on the date those sections take effect. (d) Provides that for the purposes of Section 371.106, Health and Safety Code, as added by this Act, the period of storage of a used oil filter that on January 1, 2000, is being stored by a person described by that section begins on January 1, 2000, regardless of the date the storage of the oil filter began. SECTION 3. Emergency clause. COMPARISON OF ORIGINAL TO SUBSTITUTE C.S.H.B. 2619 modifies the original in SECTION 1 (proposed Section 371.101, Health and Safety Code) by defining or redefining "bulk filter," "do-it-yourselfer," "generator," "process," "processor," "store," "storage facility," "transporter," and "used oil filter." The substitute removes the definition of "oil filter." In proposed Section 371.102, the substitute provides that the subchapter applies to certain used oil filters. The substitute also provides that the subchapter does not apply to do-it-yourselfers, as well as certain industrial generators. The substitute makes conforming and nonsubstantive changes in this section. Removes a provision authorizing a registered processor to transport, store, or process a filter only if the activities regarding the filter comply with the rules applicable to nonexempt filters. In proposed Section 371.103, the substitute adds an exception to the prohibition against a person knowingly placing on land a used oil filter that contains oil if the filter is in a container. The substitute also provides that a bulk filter container used to store used oil filters must not leak and must be securely closed, waterproof, and in good condition. In proposed Section 371.104, the substitute prohibits a storage facility, as well as a transporter or processor from recycling, as well as storing, processing, or disposing of used oil filters unless registered with the commission. The substitute also clarifies that a person is prohibited from storing used oil filters, rather than oil filters, and prohibits the person further from storing used oil filters in more than one bulk filter container. Removes a provision requiring a registered transporter, storage facility, or processor to report to the commission biennally any other information commission rules require. In proposed Section 371.106, the substitute prohibits a storage facility from storing a used oil filter for more than 120 days, rather than 90. The substitute also requires a processor that stores used oil filters in a container to label each container clearly with the phrase "Used Oil Filters." In proposed Section 371.107, the substitute authorizes the commission to grant a variance to a generator or a person, rather than to a storage facility to store used oil filters, in the volume and for the period prescribed. In proposed Section 371.108, the substitute provides that the plan must meet certain federal requirements, rather than be approved by the commission. In proposed Section 371.110, the substitute removes the provision requiring the comptroller to deposit penalties provided by Section 7.107 (Division of Civil Penalty) , Water Code, to the credit of the used oil recycling fund.