By Saunders                                           H.B. No. 2430
          Substitute the following for H.B. No. 2430:
          By Oakley                                         C.S.H.B. No. 2430
                                 A BILL TO BE ENTITLED
    1-1                                AN ACT
    1-2  relating to the regulation of radioactive source material recovery,
    1-3  processing, and disposal activities; establishing fees; providing
    1-4  penalties.
    1-5        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-6        SECTION 1.  Section 401.003, Health and Safety Code, is
    1-7  amended by amending Subdivisions (3) and (18) and by adding
    1-8  Subdivisions (24) and (25) to read as follows:
    1-9              (3)  "By-product material" means:
   1-10                    (A)  a radioactive material, other than special
   1-11  nuclear material, that is produced in or made radioactive by
   1-12  exposure to radiation incident to the process of producing or using
   1-13  special nuclear material; and
   1-14                    (B)  tailings or wastes, other than naturally
   1-15  occurring radioactive material, produced by or resulting from the
   1-16  extraction or concentration of uranium or thorium from ore
   1-17  processed primarily for its source material content, including
   1-18  discrete surface wastes resulting from uranium solution extraction
   1-19  processes, and other tailings having similar radiological
   1-20  characteristics.
   1-21              (18)  "Radioactive waste" means radioactive material,
   1-22  other than by-product material defined by Subdivision (3)(B), <or>
   1-23  uranium ore, or naturally occurring radioactive material having
    2-1  similar radiological characteristics to by-product material defined
    2-2  by Subsection (3)(B), that:
    2-3                    (A)  is discarded or unwanted and is not exempt
    2-4  by department rule adopted under Section 401.106; or
    2-5                    (B)  would require processing before it could
    2-6  have a beneficial reuse.
    2-7              (24)  "Naturally occurring radioactive material (NORM)"
    2-8  means any nuclide that is radioactive in its natural physical state
    2-9  (i.e., not man-made), but does not include source, by-product, or
   2-10  special nuclear material.
   2-11              (25)  "NORM waste" means an oil and gas waste, as that
   2-12  term is defined in Section 91.1011, Natural Resources Code, which
   2-13  consists of, contains, or is contaminated with NORM.
   2-14        SECTION 2.  Subchapter G, Chapter 401, Health and Safety
   2-15  Code, is amended to read as follows:
   2-16        Sec. 401.261.  Subchapter Application.  <A reference in this
   2-17  subchapter to by-product material includes only that by-product
   2-18  material defined by Section 401.003(3)(B).>
   2-19        (1)  "By-product material" means:
   2-20              (A)  the by-product material as defined under Section
   2-21  401.003(3), and
   2-22              (B)  For purposes of this subchapter only, by-product
   2-23  material also includes naturally occurring radioactive material as
   2-24  defined under Section 401.003(24) which is generated during the
   2-25  exploration or production of oil, gas, or other minerals.
    3-1        (2)  "Commission" means the Texas Natural Resource
    3-2  Conservation Commission.
    3-3        (3)  "Federal commission" means the United States Nuclear
    3-4  Regulatory Commission.
    3-5        (4)  "Processing" means the storage, extraction of material,
    3-6  transfer, volume reduction, compaction, or other separation
    3-7  incidental to recovery of source material and disposal of
    3-8  by-product material.
    3-9        Sec. 401.262.  Management of Certain By-Product Material.
   3-10  The commission <department> shall assure that by-product material
   3-11  is processed <managed> in compliance with the federal commission's
   3-12  applicable standards.
   3-13        Sec. 401.2625.  Licensing Authority.  The commission
   3-14  <commissioner> shall grant, deny, renew, revoke, suspend, amend,
   3-15  modify, or withdraw licenses for source material <uranium> recovery
   3-16  and processing, including the disposal and processing of by-product
   3-17  material <uranium mill tailings>.
   3-18        Sec. 401.263.  Application; Environmental Analysis.  (a)  If
   3-19  the commission <department> is considering the issuance, <or>
   3-20  renewal, amendment, or modification of a license to process
   3-21  materials that produce by-product materials and determines that the
   3-22  licensed activity <license> will have a significant impact on the
   3-23  human environment, the commission <department> shall prepare or
   3-24  have prepared a written environmental analysis.
   3-25        (b)  the analysis must include:
    4-1              (1)  an assessment of the radiological and
    4-2  nonradiological effects of the licensed activity on the public
    4-3  health;
    4-4              (2)  an assessment of any effect of the licensed
    4-5  activity on a waterway or groundwater;
    4-6              (3)  consideration of alternatives to the licensed
    4-7  activity, including alternative sites and engineering methods; and
    4-8              (4)  consideration of decommissioning, decontamination,
    4-9  reclamation, and other long-term effects associated with a licensed
   4-10  activity, including processing <management> of by-product material.
   4-11        (c)  The commission <department> shall give notice of the
   4-12  analysis as provided by agency rule and shall make the analysis
   4-13  available to the public for written comment not later than the 31st
   4-14  day before the date of the hearing on the license.
   4-15        (d)  After notice is given, the commission <department> shall
   4-16  provide an opportunity for written comments by persons affected.
   4-17        (e)  The analysis shall be included as part of the record of
   4-18  the commission's <department's> proceedings.
   4-19        (f)  The commission <department> shall prohibit major
   4-20  construction with respect to an activity that is to be licensed
   4-21  until the requirements of Subsections (a), (b), (c), and (e) are
   4-22  completed.
   4-23        Sec. 401.264.  Notice and Hearing.  (a)  The commission
   4-24  <department> on its own motion may, or on the written request of a
   4-25  person affected shall, provide an opportunity for a public hearing
    5-1  on an application over which the commission has jurisdiction
    5-2  <environmental analysis> to determine whether to issue, <or> renew,
    5-3  or amend a license to process materials that produce by-product
    5-4  materials in the manner provided by the Administrative Procedure
    5-5  and Texas Register Act (Article 6252-13a, Vernon's Texas Civil
    5-6  Statutes), and permit appearances with or without counsel and the
    5-7  examination and cross-examination of witnesses under oath.
    5-8        (b)  A person affected may become a party to a proceeding on
    5-9  a determination that the person possesses a justiciable interest in
   5-10  the result of the proceeding.
   5-11        (c)  The commission <department> shall make a record of the
   5-12  proceedings and provide a transcript of the hearing on request of,
   5-13  and payment for, the transcript or provision of a sufficient
   5-14  deposit to assure payment by any person requesting the transcript.
   5-15        (d)  The commission <department> shall provide an opportunity
   5-16  to obtain a written determination of action to be taken.  The
   5-17  determination must be based on evidence presented to the commission
   5-18  and include findings.  The written determination is available to
   5-19  the public.
   5-20        (e)  The determination is subject to judicial review in the
   5-21  district court of Travis County.
   5-22        Sec. 401.265.  Conditions of By-Product Material Licenses.
   5-23  The commission <department> shall prescribe conditions in a
   5-24  radioactive material license issued, <or> renewed, amended, or
   5-25  modified for an activity that results in production of by-product
    6-1  material to minimize or, if possible, eliminate the need for
    6-2  long-term maintenance and monitoring before the termination of the
    6-3  license, including conditions that:
    6-4              (1)  the license holder will comply with the applicable
    6-5  decontamination, decommissioning, reclamation, and disposal
    6-6  standards that are prescribed by the <board> commission and that
    6-7  are equivalent to or more stringent than the federal commission's
    6-8  standards for sites at which those ores were processed and at which
    6-9  the by-product material is deposited; and
   6-10              (2)  the ownership of a disposal site, other than a
   6-11  disposal well covered by a permit issued under Chapter 27, Water
   6-12  Code, and the by-product material resulting from the licensed
   6-13  activity are transferred, subject to Sections 401.266-401.269, to:
   6-14                    (A)  the state; or
   6-15                    (B)  the federal government if the state declines
   6-16  to acquire the site, the by-product material, or both the site and
   6-17  the by-product material.
   6-18        Sec. 401.266.  Transfer of Land Required.  (a)  The
   6-19  commission <board> by rule or <may require or the department> by
   6-20  order may require that before a license covering land used for the
   6-21  disposal of by-product material is terminated, the land, including
   6-22  any affected interests in the land, must be transferred to the
   6-23  federal government or to the state unless:
   6-24              (1)  the federal commission determines before the
   6-25  license terminates that the transfer of title to the land and the
    7-1  by-product material is unnecessary to protect the public health,
    7-2  safety, or welfare or to minimize danger to life or property; or
    7-3              (2)  the land is held in trust by the federal
    7-4  government for an Indian tribe, is owned by an Indian tribe subject
    7-5  to a restriction against alienation imposed by the federal
    7-6  government, is owned by the federal government, or is owned by the
    7-7  state.
    7-8        (b)  By-product material transferred to the state under this
    7-9  section shall be transferred without cost to the state<, other than
   7-10  administrative and legal costs incurred in making the transfer.>
   7-11        Sec. 401.267.  Acquisition of Certain By-Product Materials
   7-12  and Sites.  The commission <department> may acquire by-product
   7-13  material and fee simple title in land, affected mineral rights, and
   7-14  buildings at which that by-product material is disposed of and
   7-15  abandoned so that the by-product material and property can be
   7-16  managed in a manner consistent with protecting public health,
   7-17  safety, and the environment.
   7-18        Sec. 401.268.  Liability.  The transfer of title to
   7-19  by-product material, land, and buildings under Section 401.267 does
   7-20  not relieve a license holder of liability for <fraudulent or
   7-21  negligent> acts performed before the transfer.
   7-22        Sec. 401.269.  Monitoring, Maintenance, and Emergency
   7-23  Measures.  (a)  The commission <department> may undertake
   7-24  monitoring, maintenance, and emergency measures in connection with
   7-25  by-product material and property for which it has assumed custody
    8-1  under Section 401.267 that are necessary to protect the public
    8-2  health and safety and the environment.
    8-3        (b)  The commission <department> shall maintain the
    8-4  by-product material and property transferred to it in a manner that
    8-5  will protect the public health and safety and the environment.
    8-6        Sec. 401.270.  Corrective Action and Measures.  (a)  If the
    8-7  commission <department> finds that by-product material or the
    8-8  operation by which that by-product material is derived threatens
    8-9  the public health and safety or <and> the environment <and that the
   8-10  license holder is unable to correct or remove the threat,> the
   8-11  commission <department> by order may require any action, including
   8-12  a corrective measure, that is necessary to correct or remove the
   8-13  threat.
   8-14        (b)  The commission may issue an emergency order to a person
   8-15  responsible for an activity, including a past activity, concerning
   8-16  the recovery and processing of source material or disposal and
   8-17  processing of by-product material if it appears that there is an
   8-18  actual or threatened release of source material or by-product
   8-19  material that presents an imminent and substantial endangerment to
   8-20  the public health and safety or the environment, regardless of
   8-21  whether the activity was lawful at the time.  The emergency order
   8-22  may be issued without notice or hearing.
   8-23        (c)  An emergency order may be issued under Subsection (b)
   8-24  to:
   8-25              (1)  restrain the person from allowing or continuing
    9-1  the release or threatened release; and
    9-2              (2)  require the person to take any action necessary to
    9-3  provide and implement an environmentally sound remedial action plan
    9-4  designed to eliminate the release or threatened release.
    9-5        (d)  An emergency order issued under Subsection (b) shall:
    9-6              (1)  be delivered to the person identified by the order
    9-7  by certified mail, return receipt requested;
    9-8              (2)  be delivered by hand delivery to the person
    9-9  identified by the order; or
   9-10              (3)  on failure of delivery of the order by certified
   9-11  mail or hand delivery, be served on the person by publication;
   9-12                    (A)  once in the Texas Register; and
   9-13                    (B)  once in a newspaper of general circulation
   9-14  in each county in which a person identified by the order had the
   9-15  person's last known address.
   9-16        (e)  The commission <department> shall use the security
   9-17  provided by the license holder to pay the costs of actions that are
   9-18  taken or that are to be taken under this section.  The commission
   9-19  <department> shall send to the comptroller a copy of its order
   9-20  together with necessary written requests authorizing the
   9-21  comptroller to:
   9-22              (1)  enforce security provided by the licensee;
   9-23              (2)  convert an amount of security into cash, as
   9-24  necessary; and
   9-25              (3)  disburse from the security in the fund the amount
   10-1  necessary to pay the costs.
   10-2        SECTION 3.  Section 401.412, Health and Safety Code, is
   10-3  amended to read as follows:
   10-4        Sec. 401.412.  Commission Licensing Authority.
   10-5  (a)  Notwithstanding any other provision of this chapter and
   10-6  subject to Section 401.102, the Texas Natural Resource Conservation
   10-7  Commission has sole authority to directly regulate, and to grant,
   10-8  deny, renew, revoke, suspend, amend, modify or withdraw <issue>
   10-9  licenses to any person for, the disposal of any radioactive
  10-10  substances.
  10-11        (b)  Notwithstanding any other provision of this chapter, the
  10-12  Texas Natural Resource Conservation Commission has the sole
  10-13  authority to grant, deny, renew, revoke, suspend, amend, modify or
  10-14  withdraw licenses to any person for the recovery and processing of
  10-15  source material, including the disposal and processing of
  10-16  by-product material pursuant to Subchapter G.
  10-17        (c)  The Texas Natural Resource Conservation Commission may
  10-18  adopt any rules and guidelines reasonably necessary to exercise its
  10-19  authority under this section.  In adopting rules and guidelines,
  10-20  the Texas Natural Resource Conservation Commission shall consider
  10-21  the compatibility of those rules and guidelines with federal
  10-22  regulatory programs and the rules and guidelines of the Texas Board
  10-23  of Health.  Guidelines adopted under this provision may not exceed
  10-24  the requirements of Commission rules and such guidelines shall not
  10-25  be effective until 60 days after publication of the guidelines in
   11-1  the Texas Register.
   11-2        (d)  The Texas Natural Resource Conservation Commission may
   11-3  assess and collect an annual fee for each license and registration
   11-4  and for each application in an amount sufficient to recover its
   11-5  reasonable costs to administer its authority under this chapter.
   11-6        (e)  The Texas Natural Resource Conservation Commission may
   11-7  set and collect an annual fee from the operator of each nuclear
   11-8  reactor or other fixed nuclear facility in the state that uses
   11-9  special nuclear material.  The amount of the fees collected may not
  11-10  exceed the actual expenses that arise from emergency response
  11-11  activities, including training.
  11-12        (f)  The Texas Natural Resource Conservation Commission shall
  11-13  establish by rule the amounts appropriate for the fees collected
  11-14  under this section.  The fees collected under this section shall be
  11-15  deposited into the Radioactive Substance Fee Fund and
  11-16  reappropriated for use by the commission for expenses incurred by
  11-17  the commission in administering the provisions of this chapter.
  11-18        SECTION 4.  Chapter 401, Health and Safety Code, is amended
  11-19  by adding Section 401.416 to read as follows:
  11-20        Section 401.416.  OIL AND GAS NORM WASTE DISPOSAL.  Disposal
  11-21  of NORM waste is subject to all requirements of Subchapter G
  11-22  applicable to disposal of by-product material, except that disposal
  11-23  of such NORM waste by persons owning or operating a site that has
  11-24  or is generating NORM waste shall not be subject to the
  11-25  requirements of Subchapter G if that NORM waste is disposed at
   12-1  properties owned or operated by that person.  Disposal on such
   12-2  properties shall be subject to applicable regulations, standards
   12-3  and permitting requirements for disposal of NORM waste on
   12-4  properties or in wells owned or operated by that person.
   12-5        SECTION 5.  EFFECTIVE DATE.  This Act takes effect on
   12-6  September 1, 1993.
   12-7        SECTION 6.  TRANSFER OF AUTHORITY; TRANSITION.  (a)  On
   12-8  September 1, 1993, the powers, duties, obligations, functions, and
   12-9  activities of the Texas Board of Health and the Texas Department of
  12-10  Health or the officers or employees of those agencies assigned by
  12-11  Chapter 401, Health and Safety Code, as it relates to the licensing
  12-12  and regulation of source material recovery and processing,
  12-13  including the disposal and processing of by-product material, are
  12-14  transferred to the Texas Natural Resource Conservation Commission.
  12-15        (b)  All personnel, equipment, data, documents, facilities,
  12-16  and other items of the Texas Department of Health pertaining to the
  12-17  licensing and regulation of source material recovery and
  12-18  processing, including the disposal and processing of by-product
  12-19  material, are transferred to the Texas Natural Resource
  12-20  Conservation Commission.
  12-21        (c)  All appropriations to the Texas Department of Health
  12-22  pertaining to the licensing and regulation of source material
  12-23  recovery and processing, including the disposal and processing of
  12-24  by-product material, are automatically transferred to the Texas
  12-25  Natural Resource Conservation Commission.
   13-1        (d)  The Texas Natural Resource Conservation Commission is
   13-2  the successor to the Texas Department of Health for the enforcement
   13-3  of laws pertaining to the licensing and regulation of source
   13-4  material recovery and processing, including the disposal and
   13-5  processing of by-product material, and shall carry out those
   13-6  duties, responsibilities, functions, and activities as provided by
   13-7  law, including Acts of the 73rd Legislature.
   13-8        (e)  The transfer of duties from the Texas Board of Health
   13-9  and the Texas Department of Health does not affect or impair any
  13-10  act done or obligation, right, license, permit, substantive rule,
  13-11  criterion, standard, requirement, or penalty accrued or existing
  13-12  under former law, and that law remains in effect for any action
  13-13  concerning such obligation, right, license, permit, substantive
  13-14  rule, criterion, standard, requirement, or penalty.  An action
  13-15  brought or proceeding commenced before the effective date of this
  13-16  Act is governed by the rules applicable to the action or proceeding
  13-17  before the effective date of this Act.  In this subsection, "action
  13-18  or proceeding" includes a contested case commenced before the
  13-19  effective date of this Act and an action or proceeding remanded to
  13-20  the Texas Department of Health by a reviewing court before the
  13-21  effective date of this Act.
  13-22        SECTION 7.  The importance of this legislation and the
  13-23  crowded condition of the calendars in both houses create an
  13-24  emergency and an imperative public necessity that the
  13-25  constitutional rule requiring bills to be read on three several
   14-1  days in each house be suspended, and this rule is hereby suspended.