BILL ANALYSIS C.S.H.B. 2441 By: Hilbert 04-19-95 Committee Report (Substituted) BACKGROUND Most facilities that manage solid waste in the State of Texas are required to obtain permits prior to engaging in these operations. Procedures to obtain solid waste permits involve comprehensive reviews by engineering and technical personnel, extensive agency reviews, and oftentimes lengthy public hearings. These procedures necessarily involve a substantial expenditure of money, time and agency resources. Solid waste permits have varying terms or durations depending upon the type of facility. All permits must, from time to time, be renewed. Due to rapidly changing environmental regulations, most permits must be either modified or amended during their primary terms. Amendments or modifications may be initiated by either the permittee or the issuing agency. Current law does not adequately define the nature, scope or criteria to be utilized for agencies involved in the renewal, modification, extension or amendment of permits issued for solid waste facilities. PURPOSE HB 2441 establishes streamlined standards for agency decisions in solid waste permitting for amendments, modifications, extensions or renewals and defines the hearing requirements for these activities. RULEMAKING AUTHORITY It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency or institution. SECTION BY SECTION ANALYSIS SECTION 1. Amends Section 361.088, Health and Safety Code, to add Subsections (e) - (g) as follows: (e) If a hearing is held for an application for amendment, extension, or renewal of a permit, the hearing shall be limited to the applicant's current compliance record, whether the applicant is indebted to the state, whether the applicant has knowingly made false statements in connection with the application, and whether the applicant has demonstrated compliance with regulatory requirements. (f) Before an application to amend, extend, or renew a permit may be denied, the commission must find, after an opportunity for a hearing, that a significant violation exists, and no substantial effort has been made to correct the violation, the applicant is indebted to the state, the applicant has knowingly made false statements, or the applicant is unable to demonstrate compliance with regulatory requirements. (g) The commission may not conduct a hearing on the amendment of a permit unless the application proposes a major or substantive modification of the permitted facility's design, operations, or procedures. SECTION 2. Amends Subchapter C, Chapter 361, Health and Safety Code, by adding Section 361.070 as follows: Section 361.070 (a) If applications for permits are simultaneously filed by a facility required to have more than one permit issued, the commission shall hold one consolidated application review and permit hearing. Section 361.070 (b) A municipal solid waste facility permitted under this chapter is not required to obtain a separate air quality permit, unless required by the federal Clean Air Act. SECTION 3. Effective date: September 1, 1995. The act applies only to applications filed on or after the effective date. SECTION 4. Emergency Clause. COMPARISON OF ORIGINAL TO SUBSTITUTE Section 361.088 (e) (3): The substitute for HB 2441 changes the language from, "whether the applicant made a false statement . . ." to "whether the applicant knowingly made a false statement." Section 361.088 (e) (4): The original HB 2441 requires the applicant to demonstrate compliance with any new regulatory requirements applicable to the permitted facility or related to new or expanded operations addressed in the application. The substitute does not contain "new" or "permitted facility or related to." Section 361.088 (f) (3): The substitute for HB 2441 changes the language from, "the applicant made a false statement..." to "the applicant knowingly made a false statement." Section 361.088 (f) (4): The original HB 2441, Subsection (A) and (B) require that before a hearing may be held the commission must find, unless other enumerated conditions are present, that the applicant is unable to demonstrate compliance with any new regulatory requirement applicable to the permitted facility or related to a new or expanded operation addressed in the application, and that the applicant has not submitted a reasonable schedule to meet the new requirement. The substitute does not have a Section 361.088 (f) (4) (A) or (B), but in Section 361.088 (f) (4) the substitute has a similar requirement except the words "new" and "permitted facility or related to" are not included. Section 361.088 (g) (1) and (2) of the original bill are not included in the substitute. Section 361.088 (g) (3) of the original is included in the substitutes Section 361.088 (g) without further subdivision. Section 361.088 (h) of the original is not included in the substitute. The substitute for HB 2441 adds a new SECTION 2, amending Subchapter C, Chapter 361, Health and Safety Code, by adding Section 361.070. The substitute renumbers SECTION 2 to SECTION 3 and SECTION 3 to SECTION 4. SUMMARY OF COMMITTEE ACTION HB 2441 was considered by the House Committee on Environmental Regulation in a public hearing on April 4, 1995. Rep. Hilbert was recognized to explain the bill. The committee considered a complete substitute for HB 2441. The following persons testified in favor of the bill: Duncan Norton, environmental attorney, representing himself and Waste Management of Texas, Inc. Lena Guerrero, representing Safety-Kleen Corp. Jack Carmichael, representing Texas Chapter of Solid Waste Association of North America. Without objection the substitute was withdrawn and HB 2441 was left pending. HB 2441 was considered by the House Committee on Environmental Regulation in a formal meeting on April 19, 1995. The committee considered a complete substitute, and without objection the substitute was adopted. HB 2441 was reported favorably as substituted, with the recommendation that it do pass and be printed, by a record vote of seven (7) ayes, no (0) nays, no (0) pnv, and two (2) absent.