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Texas Legislature· HB 3866Effective on 9/1/25

Relating to the installation and operation of intermediate bulk container recycling facilities; authorizing a fee, the official text

Shown verbatim: the complete text as captured from the official page posted by the Texas Legislature, fetched 2026-08-29. Where this bill amends existing law, language marked for deletion in the official page appears here in brackets. This is the enrolled version. The official bill page.
H.B. No. 3866

AN ACT

relating to the installation and operation of intermediate bulk

container recycling facilities; authorizing a fee.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. The heading to Subchapter I, Chapter 26, Water

Code, is amended to read as follows:

SUBCHAPTER I. UNDERGROUND AND ABOVEGROUND STORAGE [TANKS]

SECTION 2. Section 26.341(b), Water Code, is amended to

read as follows:

(b) The legislature declares that it is the policy of this

state and the purpose of this subchapter to:

(1) maintain and protect the quality of groundwater

and surface water resources in the state from certain substances in

underground and aboveground storage tanks that may pollute

groundwater and surface water resources;

(2) require the use of all reasonable methods,

including risk-based corrective action, to implement this policy;

[and]

(3) promote the safety of storage vessels as defined

in Section 26.3442, by adopting requirements for the design,

construction, operation, and maintenance of storage vessels, with

the objective of protecting groundwater and surface water resources

in the event of accidents and natural disasters; and

(4) ensure that intermediate bulk container recycling

facilities, as defined by Section 26.3445, are not located close to

private residences.

SECTION 3. Subchapter I, Chapter 26, Water Code, is amended

by adding Section 26.3445 to read as follows:

Sec. 26.3445. LOCATION OF INTERMEDIATE BULK CONTAINER

RECYCLING FACILITY. (a) In this section:

(1) "Intermediate bulk container" means a rigid or

flexible portable packaging, other than a cylinder or portable

tank, that is designed for mechanical handling, with a volume of at

least 275 gallons.

(2) "Intermediate bulk container recycling facility"

means a site that accepts intermediate bulk containers for purposes

of reconditioning the containers for reuse or disposal.

(b) This section applies only to an intermediate bulk

container regulated by the Pipeline and Hazardous Materials Safety

Administration.

(c) A person may not install or operate an intermediate bulk

container recycling facility within 2,000 feet of a private

residence.

(d) An owner of an intermediate bulk container recycling

facility shall register the facility with the commission not later

than the 30th day before the date the facility begins receiving

intermediate bulk containers.

(e) At least once every three years, the commission shall

conduct on-site inspections of intermediate bulk container

recycling facilities registered under this section to determine

compliance with laws under the jurisdiction of the commission.

(f) The commission by rule shall impose an annual fee for

registering an intermediate bulk container recycling facility

under this section in an amount sufficient to cover the reasonable

costs of administering the registration program, including costs

associated with:

(1) implementing the registration program; and

(2) inspecting registered facilities.

(g) A fee received by the commission under this section

shall be deposited to the general revenue fund to the credit of the

water resource management account. Fees deposited under this

section may be appropriated only for purposes of this section.

(h) A facility is exempt from the application of this

section if the facility does not stage, store, or process more than

50 intermediate bulk containers at any time.

(i) This section does not limit the authority of a

municipality to adopt an ordinance prohibiting the operation of an

intermediate bulk container recycling facility within 2,000 feet of

a private residence.

SECTION 4. (a) The change in law made by this Act applies

only to an intermediate bulk container recycling facility, as

defined by Section 26.3445(a), Water Code, as added by this Act,

that begins receiving intermediate bulk containers on or after the

effective date of this Act.

(b) Subject to Subsection (a) of this section and

notwithstanding Section 26.3445, Water Code, as added by this Act,

an owner of an intermediate bulk container recycling facility, as

defined by Section 26.3445(a), Water Code, as added by this Act,

that begins receiving intermediate bulk containers before March 1,

2027, is not required to register the facility before March 31,

2027.

SECTION 5. The Texas Commission on Environmental Quality is

required to implement this Act only if the legislature appropriates

money specifically for that purpose. If the legislature does not

appropriate money for that purpose, the commission may, but is not

required to, implement this Act using other appropriations

available to the commission for that purpose.

SECTION 6. This Act takes effect September 1, 2025.

______________________________
______________________________

President of the Senate
Speaker of the House

I certify that H.B. No. 3866 was passed by the House on May

12, 2025, by the following vote: Yeas 129, Nays 14, 1 present, not

voting; and that the House concurred in Senate amendments to H.B.

No. 3866 on May 29, 2025, by the following vote: Yeas 126, Nays 10,

1 present, not voting.

______________________________

Chief Clerk of the House

I certify that H.B. No. 3866 was passed by the Senate, with

amendments, on May 26, 2025, by the following vote: Yeas 28, Nays

3.

______________________________

Secretary of the Senate

APPROVED: __________________

Date

__________________

Governor
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