Enrolled Bill Summary

            Senate Bill 766 amends the Texas Clean Air Act to establish new permit categories and requirements for facilities that emit air contaminants. The act sets forth public notice and hearing requirements for each permit and requires the Texas Natural Resource Conservation Commission (TNRCC) to promulgate rules regarding application and enforcement.

            Senate Bill 766 creates a voluntary emissions reduction permit for facilities constructed under the "grandfather" provision of the Texas Clean Air Act. The act requires facilities applying for such a permit located in a near-nonattainment or nonattainment area for national air quality standards to comply with more stringent technology requirements than other facilities. The TNRCC is also required to give priority to processing voluntary permit applications for grandfathered facilities located less than two miles from a school, child day-care facility, hospital, or nursing home. The TNRCC may also issue a voluntary emissions reduction permit based on certain emission reduction projects for certain facilities. The owner or operator of a facility that, despite good faith efforts, cannot reduce emissions enough to qualify for a regular voluntary emissions reduction permit may acquire emissions reduction credits to offset the excessive emissions.

            Senate Bill 766 authorizes the TNRCC to develop criteria for a de minimis level of air contaminants for facilities. Any facility or group of facilities with emissions below the de minimis standard will not be required to have a state air emissions permit. The TNRCC is required to submit a report by January 15, 2001, to the governor, lieutenant governor, speaker of the house, and chairs of the Senate Natural Resources and House Environmental Regulation committees stating the number of companies that have applied for voluntary emissions reduction permits and total emissions reductions anticipated under such permits. If any grandfathered facility does not have a permit application pending before the TNRCC before September 1, 2001, the TNRCC is required to impose a fee on that facility for all emissions, including emissions in excess of 4,000 tons, and must triple the amount of the fee for emissions in excess of 4,000 tons each fiscal year.

            Finally, the act establishes that if any provision conflicts with provisions specifically related to air contaminant emissions contained in Senate Bill 7, Acts of the 76th Legislature, 1999, provisions in Senate Bill 7 prevail.