BILL ANALYSIS

C.S.H.B. 3913

By: Morales Shaw

Environmental Regulation

Committee Report (Substituted)

BACKGROUND AND PURPOSE

The production, transportation, refinement, and distribution of energy is a linchpin of Texas' economy, but as our economy continues to grow, it is critical that we have the resources to help our communities stay healthy and clean. The state's recovery of civil penalties from environmental lawsuits is deposited into the state treasury, but this money could be better used to help remediate environmental damage. C.S.H.B. 3913 seeks to address this issue by creating the special environmental remediation fund that consists of money recovered from certain civil penalties to be used for environmental remediation projects.

CRIMINAL JUSTICE IMPACT

It is the committee's opinion that this bill does not expressly create a criminal offense, increase the punishment for an existing criminal offense or category of offenses, or change the eligibility of a person for community supervision, parole, or mandatory supervision.

RULEMAKING AUTHORITY

It is the committee's opinion that rulemaking authority is expressly granted to the Texas Commission on Environmental Quality in SECTION 2 of this bill.

ANALYSIS

C.S.H.B. 3913 amends the Water Code to create the special environmental remediation fund as a special fund in the state treasury outside the general revenue fund. The bill requires one-half of the state's portion of a civil penalty recovered in suits brought by local governments for violations of certain laws under the jurisdiction of, or rules adopted or orders or permits issued by, the Texas Commission on Environmental Quality (TCEQ) to be deposited to the credit of the special environmental remediation fund.

C.S.H.B. 3913 requires the TCEQ, from money appropriated from the special environmental remediation fund for that purpose, to establish and administer a grant program to provide financial assistance to counties and municipalities for environmental remediation projects. The bill requires the TCEQ to adopt rules to implement the program, including rules establishing the following:

· eligibility criteria for grant applicants and environmental remediation projects;

· grant application procedures;

· criteria for evaluating grant applications and awarding grants;

· guidelines related to grant amounts; and

· procedures for monitoring the use of a grant and ensuring compliance with any conditions of the grant.

The bill restricts appropriation of money in the fund only to the TCEQ for purposes of the grant program.

C.S.H.B. 3913 applies only to a violation that occurs on or after the bill's effective date.

EFFECTIVE DATE

September 1, 2023.

COMPARISON OF INTRODUCED AND SUBSTITUTE

While C.S.H.B. 3913 may differ from the introduced in minor or nonsubstantive ways, the following summarizes the substantial differences between the introduced and committee substitute versions of the bill.

While both the introduced and the substitute create the environmental remediation fund as a fund in the state treasury, the substitute includes a specification absent in the introduced that the fund is a special fund outside the general revenue fund.

The substitute reduces the state's portion of applicable civil penalties that is required to be deposited to the fund's credit from the full portion, as in the introduced, to one-half of the portion.

Whereas the introduced provided for the fund to be administered by the TCEQ and used only for environmental remediation projects and required the TCEQ, in using fund money, to give preference to projects that are located in counties in which an applicable violation occurred, the substitute instead requires the TCEQ, from money appropriated from the fund, to establish and administer a grant program to provide financial assistance to counties and municipalities for environmental remediation projects, requires the TCEQ to adopt rules to implement the grant program, and restricts appropriation of money in the fund only to the TCEQ for purposes of the grant program.