1 | 1 | | By: Landgraf H.B. No. 4333 |
---|
2 | 2 | | |
---|
3 | 3 | | |
---|
4 | 4 | | A BILL TO BE ENTITLED |
---|
5 | 5 | | AN ACT |
---|
6 | 6 | | relating to a defense under the Solid Waste Disposal Act for persons |
---|
7 | 7 | | engaged in certain scrap metal recycling transactions. |
---|
8 | 8 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
---|
9 | 9 | | SECTION 1. Section 361.275(a), Health and Safety Code, is |
---|
10 | 10 | | amended to read as follows: |
---|
11 | 11 | | (a) Except as provided by Section 361.2755, a [A] person |
---|
12 | 12 | | responsible for solid waste under Section 361.271 is liable under |
---|
13 | 13 | | Section 361.272 or 361.273 unless the person can establish by a |
---|
14 | 14 | | preponderance of the evidence that the release or threatened |
---|
15 | 15 | | release was caused solely by: |
---|
16 | 16 | | (1) an act of God; |
---|
17 | 17 | | (2) an act of war; |
---|
18 | 18 | | (3) an act or omission of a third person; or |
---|
19 | 19 | | (4) any combination of Subdivisions (1), (2), and (3). |
---|
20 | 20 | | SECTION 2. Subchapter I, Chapter 361, Health and Safety |
---|
21 | 21 | | Code, is amended by adding Section 361.2755 to read as follows: |
---|
22 | 22 | | Sec. 361.2755. SCRAP METAL RECYCLING TRANSACTIONS; |
---|
23 | 23 | | DEFENSE. (a) In this section: |
---|
24 | 24 | | (1) "Consuming facility" means the facility where the |
---|
25 | 25 | | scrap metal was handled, processed, reclaimed, stored, or otherwise |
---|
26 | 26 | | managed by a person other than the person who arranged for recycling |
---|
27 | 27 | | of the scrap metal. |
---|
28 | 28 | | (2) "Scrap metal" means bits and pieces of metal parts |
---|
29 | 29 | | (e.g., bars, turnings, rods, sheets, or wire) or metal pieces that |
---|
30 | 30 | | may be combined together with bolts or soldering (e.g., radiators, |
---|
31 | 31 | | scrap automobiles, railroad box cars), which when worn or |
---|
32 | 32 | | superfluous can be recycled. The term does not include: |
---|
33 | 33 | | (A) a shipping container, whether intact or not, |
---|
34 | 34 | | that: |
---|
35 | 35 | | (i) has a capacity of not less than 30 |
---|
36 | 36 | | liters and not more than 3,000 liters; and |
---|
37 | 37 | | (ii) has any hazardous substance contained |
---|
38 | 38 | | in or adhering to the container, other than metal bits and pieces or |
---|
39 | 39 | | a hazardous substance that forms an integral part of the container; |
---|
40 | 40 | | or |
---|
41 | 41 | | (B) any item of material that contained |
---|
42 | 42 | | polychlorinated biphenyls at a concentration in excess of 50 parts |
---|
43 | 43 | | per million or any new standard adopted pursuant to applicable |
---|
44 | 44 | | federal laws; |
---|
45 | 45 | | (C) any material excluded from this definition by |
---|
46 | 46 | | commission rule; or |
---|
47 | 47 | | (D) any material excluded from the definition of |
---|
48 | 48 | | scrap metal under 42 U.S.C. Section 9627(d) by a federal |
---|
49 | 49 | | regulation. |
---|
50 | 50 | | (b) This section: |
---|
51 | 51 | | (1) applies only to a scrap metal transaction that |
---|
52 | 52 | | occurs on or after November 29, 1999; and |
---|
53 | 53 | | (2) does not apply to any material that is not scrap |
---|
54 | 54 | | metal. |
---|
55 | 55 | | (c) A person who arranges for recycling of scrap metal, |
---|
56 | 56 | | other than a person described by Subsection (f), is not responsible |
---|
57 | 57 | | for the scrap metal under Section 361.271(a)(3) or (4) if the person |
---|
58 | 58 | | can establish by a preponderance of the evidence that the following |
---|
59 | 59 | | criteria were met at the time of the recycling transaction: |
---|
60 | 60 | | (1) the scrap metal met a commercial specification |
---|
61 | 61 | | grade; |
---|
62 | 62 | | (2) a market existed for the scrap metal; |
---|
63 | 63 | | (3) a substantial portion of the scrap metal was made |
---|
64 | 64 | | available for use as feedstock for the manufacture of a new saleable |
---|
65 | 65 | | product; |
---|
66 | 66 | | (4) the scrap metal could have been a replacement or |
---|
67 | 67 | | substitute for a virgin raw material, or the product to be made from |
---|
68 | 68 | | the scrap metal could have been a replacement or substitute for a |
---|
69 | 69 | | product made, in whole or in part, from a virgin raw material; |
---|
70 | 70 | | (5) the person was in compliance with any applicable |
---|
71 | 71 | | regulations or standards regarding the handling, processing, |
---|
72 | 72 | | reclamation, storage, transport, or management of the scrap metal |
---|
73 | 73 | | or other activities associated with the recycling of scrap metal; |
---|
74 | 74 | | (6) the person did not melt the scrap metal prior to |
---|
75 | 75 | | the transaction; and |
---|
76 | 76 | | (7) the person exercised reasonable care to determine |
---|
77 | 77 | | that the consuming facility was in compliance with the substantive |
---|
78 | 78 | | provisions of any: |
---|
79 | 79 | | (A) federal, state, or local environmental law or |
---|
80 | 80 | | regulation applicable to the handling, processing, reclamation, |
---|
81 | 81 | | transport, or storage of scrap metal or other management activities |
---|
82 | 82 | | associated with scrap metal; or |
---|
83 | 83 | | (B) compliance order or decree issued pursuant to |
---|
84 | 84 | | a law or regulation described by Paragraph (A). |
---|
85 | 85 | | (d) For purposes of Subsection (c)(6), thermal separation |
---|
86 | 86 | | of two or more materials due to differences in melting points of the |
---|
87 | 87 | | materials does not constitute melting. |
---|
88 | 88 | | (e) For purposes of Subsection (c)(7), reasonable care |
---|
89 | 89 | | shall be determined using criteria that include: |
---|
90 | 90 | | (1) the price paid for the scrap metal in the recycling |
---|
91 | 91 | | transaction; |
---|
92 | 92 | | (2) the ability of the person to detect the nature of |
---|
93 | 93 | | the consuming facility's operations concerning the facility's |
---|
94 | 94 | | handling, processing, storage, transport, or reclamation of scrap |
---|
95 | 95 | | metal or other management activities associated with the scrap |
---|
96 | 96 | | metal; and |
---|
97 | 97 | | (3) the result of inquiries made by the person to the |
---|
98 | 98 | | appropriate federal, state, or local environmental agency |
---|
99 | 99 | | regarding the consuming facility's past and current compliance |
---|
100 | 100 | | with: |
---|
101 | 101 | | (A) substantive provisions of any law, |
---|
102 | 102 | | regulation, order, or decree described by Subsection (c)(7); and |
---|
103 | 103 | | (B) any requirement to obtain a permit applicable |
---|
104 | 104 | | to the handling, processing, storage, transport, or reclamation of |
---|
105 | 105 | | scrap metal or other management activity associated with scrap |
---|
106 | 106 | | metal. |
---|
107 | 107 | | (f) Subsection (c) does not apply to a person who arranges |
---|
108 | 108 | | for the recycling of scrap metal if the person: |
---|
109 | 109 | | (1) had an objectively reasonable basis to believe at |
---|
110 | 110 | | the time of the scrap metal transaction that: |
---|
111 | 111 | | (A) the scrap metal would not be recycled; |
---|
112 | 112 | | (B) the scrap metal would be burned as fuel or for |
---|
113 | 113 | | energy recovery or incineration; or |
---|
114 | 114 | | (C) the consuming facility was not in compliance |
---|
115 | 115 | | with: |
---|
116 | 116 | | (i) a substantive provision of any law, |
---|
117 | 117 | | regulation, order, or decree described by Subsection (c)(7); or |
---|
118 | 118 | | (ii) a requirement to obtain a permit |
---|
119 | 119 | | applicable to the handling, processing, transport, storage, or |
---|
120 | 120 | | reclamation of the scrap metal or other management activity |
---|
121 | 121 | | associated with the scrap metal; |
---|
122 | 122 | | (2) had reason to believe that hazardous substances |
---|
123 | 123 | | had been added to the scrap metal for purposes other than processing |
---|
124 | 124 | | for recycling; or |
---|
125 | 125 | | (3) failed to exercise reasonable care with respect to |
---|
126 | 126 | | the management, processing, storage, transport, reclamation, and |
---|
127 | 127 | | handling of the scrap metal, including adhering to customary |
---|
128 | 128 | | industry practices current at the time of the recycling transaction |
---|
129 | 129 | | designed to minimize, through source control, contamination of the |
---|
130 | 130 | | scrap metal by hazardous substances. |
---|
131 | 131 | | (g) For purposes of Subsection (f)(1), an objectively |
---|
132 | 132 | | reasonable basis for belief shall be determined using criteria that |
---|
133 | 133 | | include: |
---|
134 | 134 | | (1) the size of the person's business; |
---|
135 | 135 | | (2) customary industry practices, including customary |
---|
136 | 136 | | industry practices current at the time of the recycling transaction |
---|
137 | 137 | | designed to minimize, through source control, contamination of the |
---|
138 | 138 | | scrap metal by hazardous substances; |
---|
139 | 139 | | (3) the price paid for the scrap metal in the recycling |
---|
140 | 140 | | transaction; and |
---|
141 | 141 | | (4) the ability of the person to detect the nature of |
---|
142 | 142 | | the consuming facility's operations concerning the facility's |
---|
143 | 143 | | handling, processing, or reclamation of scrap metal or other |
---|
144 | 144 | | management activities associated with scrap metal. |
---|
145 | 145 | | (h) The commission may adopt rules as necessary to |
---|
146 | 146 | | administer this section, including rules excluding additional |
---|
147 | 147 | | materials from the definition of scrap metal. |
---|
148 | 148 | | (i) A person who commences an action for contribution |
---|
149 | 149 | | against a person who is not responsible for the scrap metal under |
---|
150 | 150 | | this section is liable to that person for all reasonable costs |
---|
151 | 151 | | incurred in defending that action, including reasonable attorney's |
---|
152 | 152 | | fees and expert witness fees. |
---|
153 | 153 | | (j) This section may not be construed to: |
---|
154 | 154 | | (1) affect any defenses or liabilities of any person |
---|
155 | 155 | | to whom Subsection (c) does not apply; |
---|
156 | 156 | | (2) create any presumption of liability against any |
---|
157 | 157 | | person to whom Subsection (c) does not apply; or |
---|
158 | 158 | | (3) affect the liability of a person under Section |
---|
159 | 159 | | 361.271 (a)(1) or (2). |
---|
160 | 160 | | SECTION 3. The change in law made by this Act: |
---|
161 | 161 | | (1) does not apply to any judicial or administrative |
---|
162 | 162 | | action initiated by the commission that is pending or on appeal on |
---|
163 | 163 | | the effective date of this Act; and |
---|
164 | 164 | | (2) does not affect any final decision in a judicial or |
---|
165 | 165 | | administrative action that exists on the effective date of this |
---|
166 | 166 | | Act. |
---|
167 | 167 | | SECTION 4. This Act takes effect September 1, 2021. |
---|