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


Office of House Bill AnalysisH.B. 2816
By: Junell
Natural Resources
3/22/99
Introduced



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 Fund (PSTRF) administered by the Texas Natural
Resource Conservation Commission (TNRCC).  PSTRF serves as a
state-sponsored insurance fund to clean up of 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 PSTRF was insolvent.   

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

H.B. 2816 decreases by one-half the petroleum product delivery fee on bulk
loads of motor fuel and provides for the termination of PSTRF 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 Sections 26.3574(b) and (y), Water Code, to decrease by
one-half the respective fee that each operator of a bulk facility is
required to collect from a person who orders a withdrawal from bulk of a
petroleum product, upon order. 

SECTION 2.  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 under Section 26.3574 (Fee on
Delivery of Certain Petroleum Products) on or after September 1, 2001.
Makes conforming changes. 

SECTION 3.  Effective date: September 1, 1999.

SECTION 4.  Emergency clause.