88R6927 ANG-F

By: Reynolds H.B. No. 2227

A BILL TO BE ENTITLED

AN ACT

relating to the analysis of inspection and maintenance requirements for air quality permits issued by the Texas Commission on Environmental Quality for certain oil and gas facilities.

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

SECTION 1. DEFINITION. In this Act, "commission" means the Texas Commission on Environmental Quality.

SECTION 2. ANALYSIS OF INSPECTION AND MAINTENANCE REQUIREMENTS FOR OIL AND GAS FACILITIES. (a) This section applies only to a rule or requirement:

(1) relating to a permit by rule or a standard permit for a facility described by Section 382.051961(a), Health and Safety Code; and

(2) that:

(A) is a rule or requirement of the commission in effect on June 1, 2023; or

(B) is a proposed or approved federal rule or requirement that may be implemented before December 31, 2023.

(b) The commission shall examine rules and requirements described by Subsection (a) of this section governing:

(1) inspection and maintenance programs, including programs that use optical gas imaging, for the detection and repair of leaks from all valves, pump seals, flanges, compressor seals, pressure relief valves, open-ended lines, tanks, and other process and operation components of the facility that could result in fugitive emissions;

(2) the use of venting and flaring;

(3) emissions of volatile organic compounds from storage tanks that have the potential to emit more than one ton of volatile organic compounds per year;

(4) emissions of nitrogen oxides from compressor engines with more than 100 horsepower;

(5) maintenance requirements and best practices for compressor stations; and

(6) emissions from and maintenance of pneumatic devices and controllers between a wellhead and a natural gas processing plant.

(c) The commission shall prepare a report that:

(1) addresses issues raised concerning the rules or requirements described by Subsection (b) of this section;

(2) addresses the staff, technical assistance, and other resources needed to incorporate any proposed or approved federal rule involving emissions of methane and other pollutants from facilities described by Subsection (a)(1) of this section into commission rules under the state implementation plan; and

(3) suggests options for improving safety, preventing air emissions from oil and gas equipment, including methane and other useful products, and reducing emissions from facilities described by Subsection (a)(1) of this section.

(d) In suggesting options for improvement for the purposes of Subsection (c)(3) of this section, the commission may consider:

(1) both regulatory and incentive approaches, including approaches taken in other leading oil and gas producing states that would lead to improvements in air quality and public health; and

(2) the use of federal or state funds, including funds available through the methane emissions and waste reduction incentive program (42 U.S.C. Section 7436) or the Texas emissions reduction plan, to help reduce emissions and comply with state and federal rules.

(e) The commission may cooperate with the Railroad Commission of Texas in developing the report and obtaining public comment under Subsection (f) of this section.

(f) Not later than January 1, 2024, the commission shall issue and make available for public comment a preliminary report. The commission may hold meetings to consider public comment. After considering public comment, if any, but not later than June 1, 2024, the commission shall post on its Internet website the final report.

(g) Nothing in this section prevents the commission from adopting rules on the issues contained in the study.

SECTION 3. EXPIRATION. This Act expires August 31, 2025.

SECTION 4. EFFECTIVE DATE. This Act takes effect September 1, 2023.