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.