1-1  By:  Zaffirini, Rosson                                S.B. No. 1129
    1-2        (In the Senate - Filed March 12, 1993; March 15, 1993, read
    1-3  first time and referred to Committee on Natural Resources;
    1-4  May 11, 1993, reported adversely, with favorable Committee
    1-5  Substitute by the following vote:  Yeas 9, Nays 0; May 11, 1993,
    1-6  sent to printer.)
    1-7                            COMMITTEE VOTE
    1-8                          Yea     Nay      PNV      Absent 
    1-9        Sims               x                               
   1-10        Truan              x                               
   1-11        Armbrister         x                               
   1-12        Barrientos         x                               
   1-13        Bivins             x                               
   1-14        Brown              x                               
   1-15        Carriker           x                               
   1-16        Lucio              x                               
   1-17        Montford                                       x   
   1-18        Ratliff                                        x   
   1-19        Shelley            x                               
   1-20  COMMITTEE SUBSTITUTE FOR S.B. No. 1129                    By:  Sims
   1-21                         A BILL TO BE ENTITLED
   1-22                                AN ACT
   1-23  relating to the approval of land application of sludge.
   1-24        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
   1-25        SECTION 1.  DEFINITIONS.  In this Act:
   1-26              (1)  "Class B sludge" means sludge that, at the time
   1-27  the sludge is used or disposed of, has a density of:
   1-28                    (A)  fecal coliform equal to or greater than 2
   1-29  million most probable number per gram of total solids (dry weight
   1-30  basis); or
   1-31                    (B)  Salmonella sp. bacteria equal to or greater
   1-32  than three most probable number per four grams of total solids (dry
   1-33  weight basis).
   1-34              (2)  "Commission" means the Texas Water Commission or
   1-35  its successor.
   1-36              (3)  "Permit area" means the area in Texas west of a
   1-37  line beginning at the point at which the Pecos River crosses the
   1-38  Texas boundary at New Mexico then along the river to the point at
   1-39  which the 102 degree longitude line crosses the river and
   1-40  thereafter along the 102 degree longitude to the Rio Grande River.
   1-41              (4)  "Sludge" has the meaning assigned by Section
   1-42  361.003, Health and Safety Code.
   1-43              (5)  "Sludge application fund" means the fund
   1-44  established under Section 10 of this Act.
   1-45        SECTION 2.  SLUDGE APPLICATION FEE.  (a)  The executive
   1-46  director of the commission shall charge and collect from a person
   1-47  issued a permit under Section 8 of this Act or a person described
   1-48  in Subsection (c) of this section a fee for the application of
   1-49  Class B sludge to land located in the permit area.  The minimum
   1-50  rate of the fee is $1 per wet ton of Class B sludge applied to
   1-51  land.  The fee shall be paid annually on December 31.  The fee is
   1-52  in addition to any fee charged for filing an application for a
   1-53  permit to apply Class B sludge.
   1-54        (b)  Fees paid and collected under Subsection (a) of this
   1-55  section shall be deposited in the sludge application fund and may
   1-56  be used only as provided by Section 10 of this Act.
   1-57        (c)  A person who on the effective date of this Act holds a
   1-58  registration issued by the commission to that person for the
   1-59  application of Class B sludge to land in the permit area may be
   1-60  charged a fee under this section only:
   1-61              (1)  if the registration is renewed, amended, or
   1-62  otherwise changed on or after that date; and
   1-63              (2)  for the application of Class B sludge that occurs
   1-64  under the registration on or after the date the registration is
   1-65  renewed, amended, or otherwise changed.
   1-66        SECTION 3.  PUBLIC HEALTH STUDY.  (a)  Before issuing a
   1-67  permit to apply Class B sludge to land located in the permit area,
   1-68  the commission shall conduct, through The University of Texas at El
    2-1  Paso, a public health study to determine the potential for adverse
    2-2  human health effects from the application of Class B sludge to land
    2-3  in that region of Texas.  In making the determination, the
    2-4  commission shall consider:
    2-5              (1)  the effect of heavy metals and pathogens on
    2-6  surface water and groundwater resources;
    2-7              (2)  the effect of heavy metals and pathogens on humans
    2-8  and other species when introduced into the food chain;
    2-9              (3)  the impact on farming and ranching activities; and
   2-10              (4)  if applicable, depending on the proximity of the
   2-11  Class B sludge site to a major aquifer, the effect on the water
   2-12  quality of the aquifer, taking into consideration the average
   2-13  annual rainfall and area rainfall patterns.
   2-14        (b)  After considering the factors listed in Subsection (a)
   2-15  of this section and determining the impact of Class B sludge
   2-16  application, the commission shall identify those lands, if any,
   2-17  located in the permit area that are most suitable for Class B
   2-18  sludge application.  In doing so, the commission shall consider:
   2-19              (1)  the location of surface water and groundwater
   2-20  resources in the region; and
   2-21              (2)  the arid condition, soil type, and pH of the land
   2-22  in the region.
   2-23        (c)  The cost of a study to be conducted under this section
   2-24  may not exceed $250,000 and may be paid for from the sludge
   2-25  application fund.  The commission shall enter into an interagency
   2-26  agreement with The University of Texas at El Paso for performance
   2-27  of the study not later than the 60th day after the effective date
   2-28  of this Act and shall complete the study not later than December 1,
   2-29  1994.
   2-30        SECTION 4.  ECONOMIC IMPACT ANALYSIS.  (a)  The commission
   2-31  shall conduct, through the Texas Department of Commerce, an
   2-32  economic impact analysis to determine the economic impact of Class
   2-33  B sludge application to land located in the permit area.  In making
   2-34  the determination, the commission shall consider the economic
   2-35  impact of Class B sludge application on:
   2-36              (1)  the value of real property;
   2-37              (2)  the change, if any, in the 18-month period
   2-38  immediately following the commencement of operations by a sludge
   2-39  operator that applies Class B sludge to land in the region to:
   2-40                    (A)  the unemployment rate;
   2-41                    (B)  the population;
   2-42                    (C)  the median income;
   2-43                    (D)  sources and types of income;
   2-44                    (E)  the standard of living;
   2-45                    (F)  the type and availability of housing
   2-46  accommodations;
   2-47                    (G)  the type and availability of public health
   2-48  facilities; and
   2-49                    (H)  the type and quality of county and municipal
   2-50  services; and
   2-51              (3)  local agrarian-based economies.
   2-52        (b)  The cost of the study to be conducted under this section
   2-53  may not exceed $50,000 and may be paid for from the sludge
   2-54  application fund.  The commission shall enter into an interagency
   2-55  agreement with the Texas Department of Commerce for performance of
   2-56  the study not later than the 60th day after the effective date of
   2-57  this Act and shall complete the study not later than September 1,
   2-58  1994.
   2-59        SECTION 5.  CITIZENS TECHNICAL ASSISTANCE GRANT PROGRAM.
   2-60  (a)  The commission shall create and fund a citizens technical
   2-61  assistance grant program not later than the 60th day after the
   2-62  effective date of this Act to ensure and allow citizen
   2-63  participation in the permitting process.  The cost of administering
   2-64  the grant program may be paid for from the sludge application fund.
   2-65        (b)  Subject to the availability of funds and in accordance
   2-66  with rules adopted by the commission, the commission may make
   2-67  grants available to any group of individuals who may be affected by
   2-68  the granting of a permit for the application of Class B sludge in
   2-69  the permit area.  The grants may be used to obtain technical
   2-70  assistance in interpreting information with regard to:
    3-1              (1)  the type, nature, and stability of heavy metals
    3-2  and pathogens contained in Class B sludge proposed to be applied to
    3-3  land;
    3-4              (2)  the economic impact of the proposed permit on the
    3-5  area and population in question;
    3-6              (3)  the health impact on individuals residing near the
    3-7  land on which the Class B sludge is proposed to be applied;
    3-8              (4)  operation and maintenance of the proposed Class B
    3-9  sludge facility; and
   3-10              (5)  other matters related to the proposed permit.
   3-11        (c)  The amount of a grant under this section may not exceed
   3-12  $10,000 for a single grant recipient.  Each grant recipient shall,
   3-13  as a condition of the grant, contribute at least 10 percent of the
   3-14  total cost of the technical assistance for which the grant is made.
   3-15  The commission may waive the 10 percent contribution if the grant
   3-16  recipient demonstrates financial need and waiver is necessary to
   3-17  facilitate public participation in the permitting process.  Not
   3-18  more than one grant may be made under this section with respect to
   3-19  a single permit application, but a grant may be renewed to
   3-20  facilitate public participation at all stages of the permitting
   3-21  process.
   3-22        SECTION 6.  PILOT MEDIATION PROJECT.  (a)  At the request of
   3-23  any person affected by the commencement of Class B sludge
   3-24  operations in one or more counties located in the permit area, or
   3-25  on its own motion, the commission shall mediate, through The
   3-26  University of Texas School of Law Center for Public Policy Dispute
   3-27  Resolution, the interests of affected individuals in the region.
   3-28  For the purposes of this section, "affected person" includes:
   3-29              (1)  any owner of real property in excess of 500 acres
   3-30  in the region;
   3-31              (2)  a principal of the Class B sludge operator or a
   3-32  duly authorized representative of the operator;
   3-33              (3)  any owner of a business located and operated in
   3-34  the region;
   3-35              (4)  any elected official of a county, municipality, or
   3-36  other political subdivision in which the Class B sludge facility is
   3-37  operated; and
   3-38              (5)  a recipient of a grant under Section 5 of this
   3-39  Act.
   3-40        (b)  The cost of the mediation project may not exceed $50,000
   3-41  and may be funded by grants received by the commission from any
   3-42  source and by payment from the sludge application fund.
   3-43        SECTION 7.  LOCATION OF STUDIES AND PROJECTS.  Each study or
   3-44  project to be conducted under this Act shall be conducted in one or
   3-45  more counties located in the permit area in which Class B sludge is
   3-46  being applied to land on or before the effective date of this Act.
   3-47        SECTION 8.  PERMIT FOR LAND APPLICATION OF CLASS B SLUDGE.
   3-48  (a)  After the effective date of this Act, a person may not apply
   3-49  Class B sludge to land located in the permit area for a beneficial
   3-50  use or for any other purpose without obtaining a permit from the
   3-51  commission.
   3-52        (b)  The commission shall hold an adjudicatory hearing on an
   3-53  application for a permit under this section.
   3-54        (c)  At the time an application for a permit is filed with
   3-55  the commission and is administratively complete:
   3-56              (1)  the commission shall give notice of the
   3-57  application in accordance with Section 5.115, Water Code, to any
   3-58  person who may be affected by the granting of the permit; and
   3-59              (2)  the applicant shall provide notice of its
   3-60  application, in English and in Spanish, in a newspaper of general
   3-61  circulation in the county in which the land is located.
   3-62        (d)  Not later than the 30th day before the date of hearing,
   3-63  the commission shall provide to the applicant preliminary findings
   3-64  regarding potential public health and economic impacts of the
   3-65  proposed activity.  The preliminary findings shall be available for
   3-66  public inspection.
   3-67        (e)  The commission by rule shall provide for giving notice
   3-68  of the hearing on the permit application.  The notice of the
   3-69  hearing shall be published in a newspaper of general circulation in
   3-70  the county in which the land is located not less than once each
    4-1  week for each of the three weeks preceding the date of the hearing
    4-2  on the application.  The notice shall include a brief analysis of
    4-3  the proposed Class B sludge application and shall include the
    4-4  commission's preliminary findings regarding potential public health
    4-5  and economic effects.
    4-6        (f)  In considering whether to grant an application to apply
    4-7  Class B sludge to land for any purpose in the permit area, the
    4-8  commission shall consider the public health study performed under
    4-9  Section 3 of this Act and the economic impact analysis performed
   4-10  under Section 4 of this Act.
   4-11        (g)  On request of an affected person or on its own motion,
   4-12  the commission shall hold a public meeting at or near the land on
   4-13  which the applicant proposes to apply Class B sludge.  The
   4-14  commission shall provide a reasonable opportunity for submission of
   4-15  written and oral comments at the meeting.  The commission shall
   4-16  keep a transcript of the meeting and shall make the transcript
   4-17  available to the public.
   4-18        (h)  This section does not apply to a person who on the
   4-19  effective date of this Act holds a registration issued by the
   4-20  commission to that person for the application of Class B sludge to
   4-21  land in the permit area.
   4-22        SECTION 9.  ALTERNATIVE FUNDING; REIMBURSEMENT.  (a)  The
   4-23  commission may use any money available to the commission to pay for
   4-24  a study, grant, or project under Section 3, 4, 5, or 6 of this Act.
   4-25        (b)  If money other than money from the sludge application
   4-26  fund is used to pay for a study, grant, or project under Section 3,
   4-27  4, 5, or 6 of this Act, the commission may reimburse the fund or
   4-28  account from which payment was made with money from the sludge
   4-29  application fund.
   4-30        SECTION 10.  SLUDGE APPLICATION FUND.  (a)  The sludge
   4-31  application fund is a special fund in the state treasury.
   4-32        (b)  The fund consists of fees collected under Section 2 of
   4-33  this Act.
   4-34        (c)  Money in the fund may be used:
   4-35              (1)  to pay for a study, grant, or project under
   4-36  Section 3, 4, 5, or 6 of this Act; or
   4-37              (2)  to reimburse a fund or account from which payment
   4-38  was made for a study, grant, or project under Section 3, 4, 5, or 6
   4-39  of this Act.
   4-40        (d)  Sections 403.094 and 403.095, Government Code, do not
   4-41  apply to the sludge application fund.
   4-42        SECTION 11.  RULES.  (a)  The commission shall adopt rules
   4-43  establishing standards that specify testing requirements for
   4-44  determining the classification of sludge to be applied for
   4-45  beneficial use.
   4-46        (b)  The commission may adopt other rules necessary to
   4-47  implement this Act.
   4-48        SECTION 12.  REPORT TO 74TH LEGISLATURE.  Not later than
   4-49  January 15, 1995, the commission shall submit to the 74th
   4-50  Legislature a report including:
   4-51              (1)  an accounting of all fees collected and disbursed
   4-52  under this Act;
   4-53              (2)  the status and results of studies, grants, and
   4-54  projects conducted under Sections 3, 4, 5, and 6 of this Act; and
   4-55              (3)  an analysis of information derived from studies
   4-56  conducted under this Act relating to the feasibility of applying
   4-57  Class B sludge to arid lands located in the permit area.
   4-58        SECTION 13.  EXEMPTION.  This Act does not apply to the
   4-59  application of sludge generated by facilities owned by the City of
   4-60  El Paso and operated and managed by the El Paso Water Utilities
   4-61  Public Service Board.
   4-62        SECTION 14.  EMERGENCY.  The importance of this legislation
   4-63  and the crowded condition of the calendars in both houses create an
   4-64  emergency and an imperative public necessity that the
   4-65  constitutional rule requiring bills to be read on three several
   4-66  days in each house be suspended, and this rule is hereby suspended,
   4-67  and that this Act take effect and be in force from and after its
   4-68  passage, and it is so enacted.
   4-69                               * * * * *
   4-70                                                         Austin,
    5-1  Texas
    5-2                                                         May 11, 1993
    5-3  Hon. Bob Bullock
    5-4  President of the Senate
    5-5  Sir:
    5-6  We, your Committee on Natural Resources to which was referred S.B.
    5-7  No. 1129, have had the same under consideration, and I am
    5-8  instructed to report it back to the Senate with the recommendation
    5-9  that it do not pass, but that the Committee Substitute adopted in
   5-10  lieu thereof do pass and be printed.
   5-11                                                         Sims,
   5-12  Chairman
   5-13                               * * * * *
   5-14                               WITNESSES
   5-15                                                  FOR   AGAINST  ON
   5-16  ___________________________________________________________________
   5-17  Name:  Roy A. Griffin, III                       x
   5-18  Representing:  ACES
   5-19  City:  El Paso
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   5-21  Name:  Bill Addington                            x
   5-22  Representing:  Save Sierra Blanca
   5-23  City:  Sierra Blanca
   5-24  -------------------------------------------------------------------
   5-25  Name:  Chris D. Macomb                                         x
   5-26  Representing:  Texas Water Commission
   5-27  City:  Austin
   5-28  -------------------------------------------------------------------
   5-29  Name:  Don R. Gardner                            x
   5-30  Representing:  Personal
   5-31  City:  Austin
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   5-33  Name:  Wayne R. West                                     x
   5-34  Representing:  Hudspeth County
   5-35  City:  Sierra Blanca
   5-36  -------------------------------------------------------------------
   5-37  Name:  H. Andrew Virdell                                 x
   5-38  Representing:  C.A.R.E.
   5-39  City:  Sierra Blanca
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