87R5310 JAM-F
By: Walle H.B. No. 3973
A BILL TO BE ENTITLED
AN ACT
relating to the composition and use of money in the oil and gas
regulation and cleanup fund.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 403.0956, Government Code, is amended to
read as follows:
Sec. 403.0956. REALLOCATION OF INTEREST ACCRUED ON CERTAIN
DEDICATED REVENUE. Notwithstanding any other law, all interest or
other earnings that accrue on all revenue held in an account in the
general revenue fund any part of which Section 403.095 makes
available for certification under Section 403.121 are available for
any general governmental purpose, and the comptroller shall deposit
the interest and earnings to the credit of the general revenue
fund. This section does not apply to:
(1) interest or earnings on revenue deposited in
accordance with Section 51.008, Education Code;
(2) an account that accrues interest or other earnings
on deposits of state or federal money the diversion of which is
specifically excluded by federal law;
(3) the lifetime license endowment account;
(4) the game, fish, and water safety account;
(5) the coastal protection account;
(6) the Alamo complex account; [or]
(7) the artificial reef account; or
(8) the oil and gas regulation and cleanup fund.
SECTION 2. Section 81.01010(d), Natural Resources Code, is
amended to read as follows:
(d) The fees charged and collected under this section shall
be accounted for by the secretary of the commission and paid into
the oil and gas regulation and cleanup fund [treasury as provided by
Chapter 603, Government Code].
SECTION 3. Section 81.0531(e), Natural Resources Code, is
amended to read as follows:
(e) A penalty collected under this section shall be
deposited to the credit of the oil and gas regulation and
[oil-field] cleanup fund.
SECTION 4. Section 81.056(g), Natural Resources Code, is
amended to read as follows:
(g) The commission may use money in the oil and gas
regulation and [oil-field] cleanup fund to implement this
section. The amount of money in the fund the commission may use for
that purpose may not exceed the amount of money in the fund that is
derived from fees collected under Section 91.142 from common
carriers or owners or operators of pipelines as determined annually
by the commission.
SECTION 5. Section 81.058, Natural Resources Code, is
amended by adding Subsection (g) to read as follows:
(g) A penalty collected under this section shall be
deposited to the credit of the oil and gas regulation and cleanup
fund.
SECTION 6. Section 81.067, Natural Resources Code, is
amended to read as follows:
Sec. 81.067. OIL AND GAS REGULATION AND CLEANUP FUND. (a)
The oil and gas regulation and cleanup fund is created as a separate
[an] account in the general revenue fund of the state treasury.
(b) [(c)] The fund consists of:
(1) proceeds from bonds and other financial security
required by this chapter and benefits under well-specific plugging
insurance policies described by Section 91.104(c) that are paid to
the state as contingent beneficiary of the policies, subject to the
refund provisions of Section 91.1091, if applicable;
(2) private contributions, including contributions
made under Section 89.084;
(3) expenses collected under Section 89.083;
(4) costs recovered and civil and administrative
penalties collected for commission purposes under Chapters 81, 85,
86, 87, 88, 89, 91, 111, and 211;
(5) [(4)] fees imposed under Section 85.2021;
[(5) costs recovered under Section 91.457 or 91.459;]
(6) proceeds collected under Sections 89.085 and
91.115;
(7) interest income earned on the investment of money
[funds] deposited in the fund;
(8) oil and gas waste hauler permit application fees
collected under Section 29.015, Water Code;
(9) [costs recovered under Section 91.113(f);
[(10)] hazardous oil and gas waste generation fees
collected under Section 91.605;
(10) [(11)] oil-field cleanup regulatory fees on oil
collected under Section 81.116;
(11) [(12)] oil-field cleanup regulatory fees on gas
collected under Section 81.117;
(12) [(13)] fees for a reissued certificate collected
under Section 91.707;
(13) [(14)] fees collected under Section 91.1013;
(14) [(15)] fees collected under Section 89.088;
(15) [(16)] fees collected under Section 91.142;
(16) [(17)] fees collected under Section 91.654;
(17) [(18) costs recovered under Sections 91.656 and
91.657;
[(19)] fees collected under Section 81.0521;
(18) [(20)] fees collected under Sections 89.024 and
89.026;
(19) [(21)] legislative appropriations;
(20) [(22)] any surcharges collected under Section
81.070;
(21) [(23)] fees collected under Section 91.0115;
(22) [(24)] fees collected under Subchapter E,
Chapter 121, Utilities Code;
(23) [(25)] fees collected under Sections [Section]
27.0321 and 27.045, Water Code;
(24) [(26)] fees collected under Section 81.071;
[and]
(25) [(27)] money collected under Section 81.021;
(26) penalties collected under Sections 27.101,
27.1011, and 27.105, Water Code;
(27) proceeds from bonds and other financial security
mechanisms required under Section 27.073, Water Code;
(28) civil and administrative penalties collected
under Chapter 29, Water Code; and
(29) civil and administrative penalties collected
under Chapter 121, Utilities Code.
(c) The oil and gas regulation and cleanup fund is an
interest-bearing fund. Interest earned on money in the fund shall
be deposited to the credit of the fund.
(d) Money in the fund may not be used to pay employee
benefits or benefit-related costs. Notwithstanding any other law,
the fund is exempt from any applicable employee benefits
proportionality requirement.
SECTION 7. Section 81.068, Natural Resources Code, is
amended to read as follows:
Sec. 81.068. PURPOSES OF OIL AND GAS REGULATION AND CLEANUP
FUND. Money in the oil and gas regulation and cleanup fund may be
used by the commission or its employees or agents for any purpose
related to the regulation of oil and gas development, including:
(1) oil and gas monitoring and inspections;
(2) [,] oil and gas remediation, and oil and gas well
plugging;
(3) [,] the study and evaluation of electronic access
to geologic data and surface casing depths necessary to protect
usable groundwater in this state;
(4) [,] the administration of pipeline safety and
regulatory programs;
(5) [,] public information and services related to
those activities;
(6) regulation of geologic storage facilities and
associated anthropogenic carbon dioxide injection wells, including
inspection, monitoring, investigation, recording, plugging,
remediation, and enforcement, and the administration of those
activities; [,] and
(7) administrative costs [and state benefits] for
personnel involved in those activities.
SECTION 8. Section 81.116(e), Natural Resources Code, is
amended to read as follows:
(e) Proceeds from the fee, including [excluding] any
penalties collected in connection with the fee, shall be deposited
to the oil and gas regulation and cleanup fund as provided by
Section 81.067.
SECTION 9. Section 81.117(e), Natural Resources Code, is
amended to read as follows:
(e) Proceeds from the fee, including [excluding] any
penalties collected in connection with the fee, shall be deposited
to the oil and gas regulation and cleanup fund as provided by
Section 81.067.
SECTION 10. Section 85.381, Natural Resources Code, is
amended by adding Subsection (c) to read as follows:
(c) A penalty collected under this section shall be
deposited to the credit of the oil and gas regulation and cleanup
fund.
SECTION 11. Section 85.385, Natural Resources Code, is
amended to read as follows:
Sec. 85.385. PERSONS AIDING OR ABETTING VIOLATION. (a) Any
person who aids or abets any other person in violating Section
85.045 or 85.046 of this code, Title 102, Revised Civil Statutes of
Texas, 1925, as amended, including provisions of this code formerly
included in that title, or any rule or order adopted by the
commission under those laws is subject to the same penalties as
provided in Section 85.381 of this code.
(b) A penalty collected under this section shall be
deposited to the credit of the oil and gas regulation and cleanup
fund.
SECTION 12. Section 85.3855, Natural Resources Code, is
amended by adding Subsection (g) to read as follows:
(g) A penalty collected under this section shall be
deposited to the credit of the oil and gas regulation and cleanup
fund.
SECTION 13. Section 86.222, Natural Resources Code, is
amended by adding Subsection (c) to read as follows:
(c) A penalty collected under this section shall be
deposited to the credit of the oil and gas regulation and cleanup
fund.
SECTION 14. Section 87.241, Natural Resources Code, is
amended by adding Subsection (d) to read as follows:
(d) A penalty collected under this section shall be
deposited to the credit of the oil and gas regulation and cleanup
fund.
SECTION 15. Section 89.022, Natural Resources Code, is
amended by adding Subsection (e-1) to read as follows:
(e-1) Costs associated with a hearing recovered under
Subsection (e) shall be deposited to the credit of the oil and gas
regulation and cleanup fund.
SECTION 16. Section 89.047(g), Natural Resources Code, is
amended to read as follows:
(g) A fee collected under Subsection (f) shall be deposited
to the credit of the oil and gas regulation and cleanup [general
revenue] fund and may be appropriated only to the commission to be
used to enforce the laws and rules concerning oil and gas
conservation and waste and pollution prevention.
SECTION 17. Section 89.121(b), Natural Resources Code, is
amended to read as follows:
(b) Civil penalties collected for violations of this
chapter or of rules relating to plugging that are adopted under this
code shall be deposited in the oil and gas regulation and cleanup
[general revenue] fund.
SECTION 18. Section 91.143, Natural Resources Code, is
amended by adding Subsection (f) to read as follows:
(f) A penalty collected under this section shall be
deposited to the credit of the oil and gas regulation and cleanup
fund.
SECTION 19. Section 91.260, Natural Resources Code, is
amended by adding Subsection (e) to read as follows:
(e) A penalty collected under this section shall be
deposited to the credit of the oil and gas regulation and cleanup
fund.
SECTION 20. Section 91.261, Natural Resources Code, is
amended by adding Subsection (f) to read as follows:
(f) A penalty collected under this section shall be
deposited to the credit of the oil and gas regulation and cleanup
fund.
SECTION 21. Section 91.264(c), Natural Resources Code, is
amended to read as follows:
(c) A penalty collected under this section shall be
deposited to the credit of the oil and gas regulation and cleanup
[general revenue] fund.
SECTION 22. Section 91.459, Natural Resources Code, is
amended by adding Subsection (d) to read as follows:
(d) A penalty collected under this section shall be
deposited to the credit of the oil and gas regulation and cleanup
fund.
SECTION 23. Section 91.556, Natural Resources Code, is
amended to read as follows:
Sec. 91.556. ENFORCEMENT. (a) If an operator fails to file
an electric log as required by this subchapter, the commission may:
(1) if the well is completed as a producing well,
refuse to assign an allowable or a change in allowable for
production from the well for which the electric log is required
until the operator files the electric log with the commission; or
(2) impose an administrative penalty on the operator
in the manner provided by Sections 81.0531-81.0534 for each well
for which the operator failed to file an electric log.
(b) A penalty collected under this section shall be
deposited to the credit of the oil and gas regulation and cleanup
fund.
SECTION 24. Section 111.261, Natural Resources Code, is
amended to read as follows:
Sec. 111.261. PENALTY RECOVERABLE BY STATE. (a) A common
carrier under this chapter is subject to a penalty of not less than
$100 nor more than $1,000 for each offense, recoverable in the name
of the state, if the common carrier:
(1) violates Section 111.013 through 111.024,
111.134, 111.135, 111.138, 111.139, 111.141, or 111.142 of this
code or a valid order of the commission; or
(2) fails to perform a duty imposed by Section 111.013
through 111.024, 111.134, 111.135, 111.138, 111.139, 111.141, or
111.142 of this code.
(b) A penalty collected under this section shall be
deposited to the credit of the oil and gas regulation and cleanup
fund.
SECTION 25. Section 111.263, Natural Resources Code, is
amended by adding Subsection (c) to read as follows:
(c) A penalty recovered by the state under this section
shall be deposited to the credit of the oil and gas regulation and
cleanup fund.
SECTION 26. The heading to Section 121.003, Natural
Resources Code, is amended to read as follows:
Sec. 121.003. ADMINISTRATIVE FEES AND PENALTIES
[ANTHROPOGENIC CARBON DIOXIDE STORAGE TRUST FUND].
SECTION 27. Section 121.003(c), Natural Resources Code, is
amended to read as follows:
(c) Fees collected by the commission under Subchapter C-1,
Chapter 27, Water Code, and penalties imposed for violations of
that subchapter or rules adopted under that subchapter shall be
deposited to the credit of the oil and gas regulation and cleanup
[anthropogenic carbon dioxide storage trust] fund.
SECTION 28. Section 211.033(q), Natural Resources Code, is
amended to read as follows:
(q) A penalty collected under this section shall be remitted
to the comptroller for the deposit to the credit of the oil and gas
regulation and [oil-field] cleanup fund.
SECTION 29. Subchapter E, Chapter 121, Utilities Code, is
amended by adding Section 121.2105 to read as follows:
Sec. 121.2105. DEPOSIT OF PENALTY. A civil or
administrative penalty collected under this subchapter shall be
deposited to the credit of the oil and gas regulation and cleanup
fund.
SECTION 30. Subchapter G, Chapter 121, Utilities Code, is
amended by adding Section 121.3095 to read as follows:
Sec. 121.3095. DEPOSIT OF PENALTY. A civil or
administrative penalty collected under this subchapter shall be
deposited to the credit of the oil and gas regulation and cleanup
fund.
SECTION 31. Section 27.045(b), Water Code, is amended to
read as follows:
(b) Fees collected by the railroad commission under this
section shall be deposited to the credit of the oil and gas
regulation and cleanup [anthropogenic carbon dioxide storage
trust] fund established under Section 81.067 [121.003], Natural
Resources Code.
SECTION 32. Section 27.073, Water Code, is amended by
adding Subsection (e) to read as follows:
(e) Proceeds from bonds and other financial security
mechanisms required under this section shall be deposited to the
credit of the oil and gas regulation and cleanup fund.
SECTION 33. Section 27.101, Water Code, is amended by
adding Subsection (c) to read as follows:
(c) A penalty collected under this section shall be
deposited to the credit of the oil and gas regulation and cleanup
fund.
SECTION 34. Section 27.1011, Water Code, is amended by
adding Subsection (d) to read as follows:
(d) A penalty collected under this section shall be
deposited to the credit of the oil and gas regulation and cleanup
fund.
SECTION 35. Section 27.105, Water Code, is amended by
adding Subsection (c) to read as follows:
(c) A fine collected under this section shall be deposited
to the credit of the oil and gas regulation and cleanup fund.
SECTION 36. Section 29.047, Water Code, is amended by
adding Subsection (d) to read as follows:
(d) A penalty collected under this section shall be
deposited to the credit of the oil and gas regulation and cleanup
fund.
SECTION 37. Section 29.051, Water Code, is amended by
adding Subsection (c) to read as follows:
(c) A penalty recovered under this section shall be
deposited to the credit of the oil and gas regulation and cleanup
fund.
SECTION 38. Sections 121.003(a), (b), and (d), Natural
Resources Code, are repealed.
SECTION 39. (a) On the effective date of this Act:
(1) the anthropogenic carbon dioxide storage trust
fund is abolished;
(2) any money remaining in the anthropogenic carbon
dioxide storage trust fund is transferred to the oil and gas
regulation and cleanup fund;
(3) any claim against the anthropogenic carbon dioxide
storage trust fund is transferred to the oil and gas regulation and
cleanup fund; and
(4) any amount required to be deposited to the credit
of the anthropogenic carbon dioxide storage trust fund shall be
deposited to the credit of the oil and gas regulation and cleanup
fund.
(b) Any money transferred from the anthropogenic carbon
dioxide storage trust fund to the oil and gas regulation and cleanup
fund that was deposited in the anthropogenic carbon dioxide storage
trust fund as a gift, grant, or other form of assistance, and is
encumbered by the specific terms of the gift, grant, or other form
of assistance may be spent only in accordance with the terms of the
gift, grant, or other form of assistance.
SECTION 40. This Act takes effect September 1, 2021.