HB 3866

relating to the installation and ownership of certain outdoor
storage containers; 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
(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;
(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 outdoor storage containers, 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 OUTDOOR STORAGE CONTAINERS.  (a)
In this section, "outdoor storage container" means a nonvehicular
(1)  made of nonearthen materials;
(2)  located on or above the surface of the ground and
(3)  located at, or is a part of, a commercial facility,
including a for-hire storage terminal; and
(4)  designed to contain a regulated substance.
(b)  A person may not install or operate an outdoor storage
container in a location 2,000 feet or less from a private residence.
(c)  An owner of an outdoor storage container shall register
the container with the commission not later than the 30th day after
the date the container is installed or the date the owner acquires
an installed container from a previous owner.  An owner of an
outdoor storage container that was installed before September 1,
2025, shall register the container with the commission not later
than March 1, 2026.  An owner of an outdoor storage container
required to register the container as an aboveground storage tank
or a storage vessel under this subchapter is not required to
register the container under this section.
(d)  The commission shall conduct annual on-site inspections
of outdoor storage containers registered under this subchapter to
determine compliance with this section.  This subsection does not
limit the commission's ability to inspect a container under other
(e)  The commission by rule shall impose a fee for
registering an outdoor storage container under this section in an
amount sufficient to recover the reasonable costs of:
(1)  implementing the registration program; and
(2)  inspecting registered facilities.
(f)  An outdoor storage container is exempt from the
application of this section if the container is:
(1)  a farm or residential tank with a capacity of 1,100
gallons or less used for storing motor fuel for noncommercial
(2)  used for storing heating oil for consumptive use
(4)  a surface impoundment, pit, pond, or lagoon;
(5)  a storm water or waste water collection system;
(6)  a flow-through process tank;
(7)  a tank, liquid trap, gathering line, or other
facility used in connection with an activity associated with the
exploration, development, or production of oil, gas, or geothermal
resources, or any other activity regulated by the Railroad
Commission of Texas under Section 91.101, Natural Resources Code;
(8)  a transformer or other electrical equipment that
contains a regulated substance and that is used in the transmission
of electricity, to the extent that such a transformer or equipment
is exempted by the United States Environmental Protection Agency
(g)  This section does not limit the authority of a
municipality to adopt an ordinance prohibiting the installation or
operation of an outdoor storage container in a location more than
2,000 feet from a private residence.
SECTION 4.  Notwithstanding Section 26.3445, Water Code, as
added by this Act, an owner of an outdoor storage container, as
defined by Section 26.3445(a), Water Code, as added by this Act, is
not required to register the container before March 1, 2026.
SECTION 5.  This Act takes effect September 1, 2025.