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 5-20 ------------------------------------------------------------------- 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 5-32 ------------------------------------------------------------------- 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 5-40 -------------------------------------------------------------------