Texas lawmakers have approved a ban on certain types of outdoor chemical storage facilities being located close to homes, a response to an Odessa-area industrial fire nearly a year ago that allegedly filled a neighborhood with "black sludge."
State Rep. Brooks Landgraf (R-Odessa) proposed the ban after the massive fire in July 2024 at Permian Basin Containers, a facility where a mix of oil industry-related chemicals and liquids were stored in stacked piles of large plastic tubs.
People living right next door to the facility said in a resulting lawsuit that the fire flooded their neighborhood with a mysterious sludge that seeped into homes and cars. The neighbors also reported a strong, noxious odor in the wake of the fire. Landgraf also raised concerns about the potential for groundwater contamination from the incident.
Landgraf's legislation, House Bill 3866, was sent to the governor's desk in the final days of the state's 2025 legislative session. It creates a ban on "intermediate bulk container recycling" facilities being located within 2,000 feet of a private residence.
In a statement, the West Texas Republican said the measure establishes "common sense safeguards" to keep these kinds of facilities away from neighborhoods and "gives the state the tools it needs to hold bad actors accountable."
The proposal would establish a registration process and annual fee, along with regulator inspections for such facilities to be overseen by the Texas Commission on Environmental Quality. The bill exempts chemical storage facilities that handle fewer than 50 containers.
Barring a veto from Gov. Greg Abbott, HB 3866 would take effect Sept. 1, though it's unclear how quickly state regulators would seek to enforce it.
Under an amendment added to the bill by the Texas Senate, the TCEQ is only required to implement the measure "if the legislature appropriates money specifically for that purpose," something lawmakers have not done.
Still, the bill's language allows the TCEQ to implement necessary changes with existing funds.
"I look forward to working closely with TCEQ — as I have been throughout the entire process — to ensure it's implemented swiftly and effectively," Landgraf said.
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