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

Contracts

• Real Estate & Leases: Insert contingencies in land purchase agreements and industrial leases requiring a certified survey verifying the site is outside the 2,000-foot residential buffer zone.
• Vendor MSAs: Update Master Service Agreements with chemical suppliers and waste haulers. Require representations and warranties that the destination facility is fully registered under HB3866.
• Insurance: Carriers will likely require proof of HB3866 registration (or proof of grandfathered status) to bind Environmental Impairment Liability (EIL) coverage.

Hiring/Training

• Inventory Control: Operations managers must be trained on strict inventory caps. To claim the statutory exemption, a facility must never exceed 50 IBCs on-site.
• Compliance Staff: Designate a point of contact for mandatory triennial TCEQ inspections.

Reporting & Record-Keeping

• Daily Inventory Logs: You must maintain a daily log of on-site IBCs to substantiate exemption claims (under 50 units) during an audit.
• Registration Certificates: Proof of registration must be displayed on-site once issued.
• Grandfathering Proof: Existing facilities must preserve bills of lading or receiving tickets dated prior to September 1, 2025, to prove they are exempt from the 2,000-foot ban.

Fees & Costs

• New Annual Fees: The legislation mandates fees sufficient to cover TCEQ's administrative costs. The Fiscal Note estimates agency costs at ~$8.4 million in FY2026. With a limited number of regulated facilities, anticipate high per-facility registration fees (potentially thousands of dollars annually).
• Civil Penalties: Standard TCEQ administrative penalties apply for operating without registration or violating the buffer zone.