BILL ANALYSIS C.S.H.B. 3226 By: Berlanga, Holzheauser, et al. 04-28-95 Committee Report (Substituted) BACKGROUND In 1989, the 70th Legislature enacted S.B. 1571 directing the Texas General Land Office (GLO) to develop a coastal management plan (CMP) in conjunction with other state agencies. In 1990, a citizens advisory committee was formed which conducted public hearings and workshops and identified priority issues including shoreline erosion, public beach access planning, loss of sand dunes and wetlands, and interagency coordination. The committee's recommendations formed the basis of new legislation, S.B. 1053 and S.B. 1054, passed by the 71st Legislature. S.B. 1053 in particular created the Coastal Coordination Council (CCC), naming the Texas Land Commissioner as its chair and giving the CCC broad authority to resolve conflicts between state agencies and again directed the GLO to develop a CMP in conjunction with other state agencies. After a negotiated rulemaking process involving stakeholder groups and state agencies, the CCC adopted rules, on September 16, 1994, establishing the CMP, as well as setting out the coastal natural resource areas and the actions covered by the CCC review process. Some persons have raised concerns that the "review" authority granted the CCC may give rise to a "new layer of bureaucracy" and lead to increased costs and time delays in state and federal permitting actions, in spite of the policy goal of the CCC to "provide for more effective and efficient management of coastal natural resource areas". On the other hand, other persons are concerned that the CCC retain certain of its review powers, in order to ensure federal approval by the National Oceanic and Atmospheric Administration of Texas' coastal management plan. PURPOSE The purpose of H.B. 3226 is to address concerns regarding the CCC's broad authority, specifically in its "review" powers. H.B. 3226 sets prescribed limits on the broad authority previously granted to the CCC to review agency and subdivision actions by codifying the CCC rules insofar as those rules establish the basic elements of the CCC's review powers. There are several intended results of the codification: (1) the CCC will review only those actions with major potential impacts on the coast; (2) the CCC review process will not be duplicative of agency and subdivision actions; and (3) there is no mandatory Council review of an action. RULEMAKING AUTHORITY It is the opinion of the committee that SECTION 4 of this bill would grant the Coastal Coordination Council the authority to adopt rules to implement the following procedures: (1) for determining the consistency of agency or subdivision actions, federal agency actions or activities, and outer continental shelf plans with the coastal program; (2) for an applicant to seek a preliminary consistency review; (3) for an individual or small business to obtain assistance with filing applications for permits or other proposed actions; and (4) for an agency to submit rules and rule amendments to the council for consistency review, for council review of agency thresholds, and for council revocation of such consistency determinations. SECTION BY SECTION ANALYSIS SECTION 1 Amends Section 33.004, Natural Resources Code, by amending subdivision (8), deleting the reference to public land and the contents of the management program in the definition of "Management program", and by adding new subdivisions (13) and (14), which define "Council" and "Coastal zone", respectively. SECTION 2 Amends Sections 33.051, 33.052, 33.053, and 33.055, Natural Resources Code as follows: Section 33.051 is changed to include the council in the performance of duties assigned by this subchapter. Section 33.052 is amended by changing the references to the "management program" to "coastal management program", as well as references to other sections of this code, and by mandating that the program is not effective until approved by the council. References to "coastal conservation" are changed to "coastal natural resource", and references to specific agencies are changed to "agencies represented on the council." The council, instead of the land office, may appoint an advisory committee, whose members serve at the pleasure of the council. "Coastal natural resource areas" as defined in Section 33.203 of this code is substituted for the definition of "coastal conservation areas". Section 33.053 changes "management program" to "coastal management program" and mandates that the program include the elements required by the Coastal Zone Management Act of 1972 and that the program identify the boundaries of the coastal zone, as referenced in sections 33.2053(k) and 33.203(7) of this code. Section 33.055 is amended by changing "management program" to "coastal management program" and requires inclusion of the council when a public hearing is held to develop, review, or amend the program. Subsection (b) is deleted. SECTION 3 Subsection 33.202(a)(1) is amended to clarify that it is a state policy goal to coordinate government actions affecting coastal natural resource areas. Also, the section is amended to correct a typographical error. SECTION 4 Amends Subchapter F, Chapter 33, Natural Resources Code by amending Sections 33.203, 33.204, 33.205, 33.206, 33.207, and 33.208 and adding new Sections 33.2051, 33.2052, 33.2053, 33.209, and 33.210, as follows: Section 33.203 is amended by substituting a specific definition of "Coastal natural resource areas" for the current definition that uses areas designated by the coastal management program, and by adding definitions for the following: "Coastal barrier" "Coastal historic area" "Coastal preserve" "Coastal shore area" "Coastal waters" "Coastal wetlands" "Critical area" "Critical dune area" "Critical erosion area" "Gulf beach" "Hard substrate reef" "Oyster reef" "Special hazard area" "Submerged land" "Submerged aquatic vegetation" "Tidal sand or mud flat" "Water of the open Gulf of Mexico" "Water under tidal influence" "Agency or subdivision" "Agency or subdivision action" "Federal agency activity" "Proposed action" and "Outer continental shelf plan." In addition, the definition of "Council" is amended by deleting reference to the Attorney General and adding the Chair of the Texas Transportation Commission, a member of the State Soil and Conservation Board, a member of the Texas Water Development Board, and a coastal area business owner who resides in the coastal area, and a representative of agriculture appointed by the governor, with the advice and consent of the senate, and by changing the reference to the Texas Water Commission to the Texas Natural Resource Conservation Commission. Finally, coastal management "plan" is changed to coastal management "program", and that definition is amended. Section 33.204 is amended by changing the title of the section to read "Administration of Coastal Management Program". The amendment requires the council to adopt goals and policies of the coastal management program by rule. In addition, it adds a provision stating that the goals and policies of the CMP may not require an agency or subdivision to perform an action which would exceed the constitutional or statutory authority of the agency or subdivision. Subsection (b) adds a requirement that an affirmative vote of two-thirds of the of the members of the council is required for council action, except for adoption of the coastal management program and placement of an item on the agenda. Subsection (c) is amended to allow the governor to designate a local elected official from a municipality directly affected by a matter under review to serve as a non-voting member of the council on that action only. Subsection (e) mandates the land office to prepare annual reports on the effectiveness of the coastal management program. The reports are subject to council approval and subsequent delivery to the legislature on or before January 15 of each odd-numbered year. Section 33.205 is amended by deleting the requirement that all agency or subdivision actions comply with the coastal management plan and substitutes the requirement that those agencies or subdivisions take the plan into account before taking action or authorizing any action and issue a written determination that the agency's or subdivision's proposed action is consistent. Subsection (c) provides that the council may not review actions or proposed actions for consistency unless a council member or certain other person files a request for referral and any three members of the council agree that there is a significant unresolved dispute regarding the proposed action's or subdivision's consistency with the goals and policies of the program. Subsection (d) provides that if consistency review thresholds are in effect, actions not exceeding the thresholds may be reviewed if the action may directly and adversely certain defined areas. Subsection (e) provides that the council must act on an agency or subdivision action within 25 days of the date the agency or subdivision proposed the action. Subsection (f) requires the council to establish by rule a process by which an applicant can seek a preliminary consistency review from the council, for a proposed action. Subsection (g) requires the council to establish by rule a process by which an individual or small business may obtain assistance with filing applications for permits or other proposed actions. Subsection (h) provides that a proposed action that was the subject of a preliminary consistency finding may not be reviewed by the council unless the permit or proposed action has substantially changed since the preliminary finding was issued. Section 33.2051 lists the agency rules that are required to comply with the goals and policies of the CMP, as provided in CCC rules. The list includes: (1) GLO oil spill prevention and response rules; (2) Texas Natural Resource Conservation Commission air quality, on-site sewage disposal system, and underground storage rules; and (3) Texas State Soil and Water Conservation Board agricultural and silvicultural nonpoint source pollution rules. Section 33.2052 requires the council by rule to establish a process by which an agency may submit rules and rule amendments to the council for consistency review and by which an agency may submit council consistency review thresholds. After council approval on the consistency of the agency's rules and thresholds, an agency's consistency determination under section 33.205(b) is final and not subject to referral for review by the council, with certain exceptions. In addition, the council may revoke the certification of an agency's rules or thresholds under certain circumstances. The title of Section 33.2053 is changed to read "Individual Agency or Subdivision Actions". The section lists the actions that are required to comply with the goals and policies of the coastal management program, as follows: (a) General Land Office Mineral lease plan of operations Geophysical/geochemical permits Coastal easements Miscellaneous easements Surface leases Coastal leases Structure registrations Cabin permits Navigation district leases Certification of local government beach/dune plans Approval of wetlands mitigation banks (b) Public Utility Commission Certificate of convenience and necessity (c) Railroad Commission Wastewater discharge permit Waste disposal pit permit Certification of discharge of dredged or fill material (d) Texas Department of Transportation Acquisition of dredged material disposal sites Transportation project construction and maintenance (e) Texas Historical Commission/Texas Antiquities Committee Permit for disturbance of archaeological landmarks Review of federal undertakings affecting historic sites (f) Texas Natural Resource Conservation Commission Wastewater discharge permit Water rights permitting actions involving over 5,000 acre-feet or water inside the program boundary or over 10,000 acre feet outside the program boundary but within 200 stream miles of the coast Solid/hazardous waste disposal permits Creation of special districts on coastal barrier islands Approval of special district levee/flood control projects Certification of discharge of dredged or fill material (h) Texas Parks and Wildlife Department Oyster harvesting/transplanting permit Endangered species permit Marl/sand/shell/gravel mining permit Approval of development in state parks and preserves (i) Local Governments Dune protection permits and beachfront construction certificates that either affect over 7,000 square feet of dunes or dune vegetation, disturb over 7,500 cubic yards of dunes, authorize a coastal shore protection project (e.g., seawall, bulkhead, etc.) that lies within 200 feet of the line of vegetation on a public beach or that is more than 500 feet long, or close a designated public beach access way on other than a short term basis. In addition, subsection (g) states that for the Trans-Texas Water Program Management Committee to deem a part of the Trans-Texas Water Program consistent with the coastal management program, then the Trans-Texas Water Program Policy Management Committee must have at least three council members who are also voting members of the Committee, and those same members must make a consistency finding by a majority vote. Subsection (j) addresses certain actions not otherwise addressed. Subsection (k) establishes the program boundary, including a reference to section 33.203(7) of this code. Section 33.206. Subsection (a) is amended to state that a proposed action is consistent with the goals and policies of the program unless on affirmative vote, at least two-thirds of the council members determine the action to be inconsistent. Subsection (b) requires the council to report its findings on inconsistency, including specific recommendations on how the proposed action may be changed to make it consistent with the program. The agency or subdivision shall notify the council within 20 days of receiving the council's report, as to whether the agency or subdivision will amend its proposed action. Subsection (c) states that if an agency or subdivision refuses to modify its action to be consistent with the goals and policies of the program, then the council shall ask the attorney general to issue an opinion on the consistency of the proposed action with the program. The agency or subdivision is stayed from taking the proposed action until the attorney general issues the opinion, which shall be issued within 25 days of the council's request for the opinion. Subsection (d) requires the council to adopt procedural rules for the review of federal actions, activities,a and outer continental shelf plans that incorporate applicable federal regulations. The chair or any three members may request additional information or additional time from a federal agency. Subsection (e) provides that any three members of the council may refer a federal action, activity, or outer continental shelf plan for council review on consistency grounds. Subsection (f) states that for agency or subdivision actions requiring an equivalent federal permit, the council may only review the state agency or subdivision action for actions under consistency thresholds. For agency or subdivision actions above consistency thresholds, the council may choose to review either the state or the federal action, but not both. Subsection (g) provides that the council may seek mediation with federal agencies that do not change their actions which have been deemed inconsistent by the council. Subsection (h) provides that the council may not protest a proposed action by an agency or subdivision pertaining to an application filed with that agency or subdivision prior to the date of the council's adoption of the program. Section 33.207 deletes language regarding judicial review, and adds language allowing the council to periodically submit recommendations to an agency or subdivision relating to compliance with the program, and requires the council to report to the legislature any necessary statutory changes and agency or subdivision actions that are not consistent with the CMP. Section 33.208 states that the agency or subdivision with jurisdiction over a proposed action shall enforce the provisions of the program. Subsection (b) requires the attorney general to file a suit in district court in Travis County to enforce this subchapter if the agency or subdivision fails to change an inconsistent action to be consistent with the goals and policies of the program. The court shall consider the attorney general's opinion in determining whether the proposed action is consistent with the coastal management program. Subsection (c) provides that the council and the agency or subdivision may enter into a settlement agreement with regard to the proposed action and that the council may rescind its request for an attorney general opinion. Section 33.209 requires that this subchapter may not be applied so as to result in a taking, damage, or destruction of property without adequate compensation. Section 33.210 contains a sunset provision, with an expiration date of September 1, 1999. SECTION 5 Requires the governor to appoint, subject to senate confirmation in the 75th Legislature, an owner of a business located in a coastal area who resides in the coastal area and a representative of agriculture to the Coastal Coordinating Council for a term commencing February 1, 1996. Also, a council member appointed prior to the 74th Legislature shall serve the remainder of that council member's term, regardless of senate confirmation. SECTION 6 Provides that the governor shall withdraw the state's coastal management program if the US Dept. of Commerce or the USEPA find that the state has failed to submit an approvable nonpoint pollution control program, pursuant to 16 U.S.C. Section 1455b. SECTION 7 Emergency clause. Effective upon passage. COMPARISON OF ORIGINAL TO SUBSTITUTE In subsection (g) of Section 33.052 of the substitute, the requirement for the land office to present reports to the legislature is deleted, leaving in place a similar requirement contained in Sec. 33.204(e) for the land office to prepare annual reports on the effectiveness of the coastal management program. Council approval of the reports is required. On or before January 15 of each odd-numbered year, the land office shall send the previous two annual reports to the legislature. The delineation of the coastal boundary in the substitute differs from that in the original by clarifying that the coastal boundary is the modified Oil Spill Prevention and Response Act line, and includes a reference to the delineation of the boundary in Section 33.2053(k) and Section 33.203(7). The substitute clarifies that one of the policy goals of the state is to coordinate the performance of government programs affecting coastal natural resource areas. Section 4 of the substitute is changed to reflect the deletion of Section 33.209 in the original bill, relating to voluntary special area management plans, and the renumbering of the remaining sections. The definition of "serpulid worm reef" in the original is replaced in the substitute by a definition for "hard substrate reef". Section 33.203(20), the definition of "council" in the substitute, clarifies that the respective chair of Parks and Wildlife Commission, the Texas Natural Resource Conservation Commission, the Texas Water Development Board, or the Texas Transportation may designate another member of that board or commission to serve on the council in place of the respective chair. Throughout the substitute, as appropriate, references to "agency" have been changed to "agency or subdivision" to reflect the fact that certain local actions, primarily limited to dune protection and beach access permits, may be subject to council consistency review. Section 33.203(23), the definition of "agency or subdivision action" to reference those actions that may be subject to council review, as delineated in Sections 33.2051 and 33.2053 of this code. Section 33.204(24), the definition of "federal agency activity" has been changed to include "financial assistance" as a federal agency activity. Section 33.204(25), the definition of "federal agency action" is changed to reflect that the council reviews "proposed", not "final", federal agency actions. Section 33.205(e) is changed to reference that the council may review actions referred under subsections (c) or (d) of Section 33.205. Section 33.205(f)(2)(C) is changed to provide that the council may wait to make its preliminary determination until it has enough information available. Section 33.205 in the substitute also differs from the original due to the addition of subsection (h), which provides that a preliminary finding of consistency is binding unless the permit or proposed action has been substantially changed since the preliminary finding was issued. Section 33.205(b) is changed in the substitute to make reference to the proper section of the code. Section 33.2053(g)(2) is changed in the substitute to clarify that a majority vote of those council members who are also members of the Trans-Texas Water Management Policy Committee makes a finding of consistency of the Trans-Texas Water Program with the goals and policies of the coastal management program. Section 33.206(b) of the substitute is changed to require that the report the council makes to an agency proposing and inconsistent action shall specify how the proposed action is inconsistent with the goals and policies of the coastal management program. Further, the substitute clarifies that an agency whose proposed action is under council review shall notify the council of the agency's decision on whether to modify or amend the proposed action to make it consistent with the goals and policies of the program. The original required the agency to notify the council of the agency's refusal to change its action. As stated earlier, the substitute differs from the original in that Sec. 33.209 of the original, relating to voluntary special area management plans, has been deleted from the substitute. SUMMARY OF COMMITTEE ACTION H.B. 3226 was considered by the committee in a formal meeting on April 27, 1995. The committee considered a complete substitute for the bill. The substitute was adopted without objection. The bill was reported favorably as substituted, with the recommendation that it do pass and be printed, by a record vote of 7 ayes, 0 nays, 0 pnv, 2 absent.