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.