BILL ANALYSIS S.B. 1125 By: Nixon (Holzheauser) April 27, 1995 Committee Report (Amended) BACKGROUND Current law requires certain facilities that emit air contaminants to renew preconstruction permits every 10 years. The renewal process often involves review by the Texas Natural Resource Conservation Commission. In addition, applicants for renewal are subject to the commission's authority to hold a contested case hearing regardless of whether renewal would result in an increase in allowable emissions or the emission of an air pollutant not previously emitted. PURPOSE As proposed, S.B. 1125 limits the authority of the Texas Natural Resource Conservation Commission to prohibit the renewal, amendment, or modification of certain emissions permits. RULEMAKING AUTHORITY It is the committee's opinion that this bill does not grant any additional rulemaking authority to a state officer, institution, or agency. SECTION BY SECTION ANALYSIS SECTION 1. Amends Section 382.055(e), Health and Safety Code, to require the Texas Natural Resource Conservation Commission (commission) to impose as a condition for renewal of a preconstruction permit only those requirements the commission determines to be economically reasonable and technically practicable considering the age of the facility and the effect of its emissions on the surrounding area. Prohibits the commission from imposing requirements more stringent than those of the existing permit, unless the commission determines that the requirements are necessary to avoid a condition of air pollution or to ensure compliance with otherwise applicable federal or state air quality control requirements; and requirements less stringent than those of the existing permit, unless the commission determines that the change will meet the requirements of Sections 382.0518 and 382.0541. SECTION 2. Amends Section 382.056, Health and Safety Code, by amending Subsection (d) and adding Subsection (e), as follows: (d) Prohibits the commission from holding a hearing on a permit application or permit renewal application if the basis of a person's request is unreasonable. Deems a request for a permit hearing to be unreasonable if the amendment, modification, or renewal would not result in an increase in allowable emissions or the emission of an air pollutant not previously emitted. Makes conforming changes. (e) Requires the commission to hold a hearing on a permit amendment, modification, or renewal if the application involves a facility for which there are significant and unresolved compliance issues. Requires the scope of the hearing in such cases to be limited to the factual and legal matters which pertain to the unresolved compliance issues. SECTION 3. Effective date: September 1, 1995. SECTION 4. Emergency clause. EXPLANATION OF AMENDMENTS Committee amendment number one amends SB 1125 as follows: (1) In SECTION 2 of the bill, §382.0561, proposed subsection (e) is struck and a new subsection (e) is added to allow the commission to hold a hearing on a permit amendment, modification, or renewal if the board determines that the application involves a facility with a compliance history of unresolved violations, and which constitute conduct demonstrating a disregard for the regulatory process. (2) Strikes SECTION 3 and SECTION 4 of the bill, which were a September 1, 1995 effective date and an emergency clause; a new SECTION 3 which is an emergency clause with an immediate effective date is substitued in the amendment. There were no other amendments. SUMMARY OF COMMITTEE ACTION SB 1125 was considered by the House Committee on Environmental Regulation in a formal meeting on April 28, 1995. Committee amendment number one was offered and was adopted without objection. SB 1125 was reported favorably as amended, with the recommendation that it do pass and be printed, by a record vote of six (6) ayes, no (0) nays, no (0) pnv, and three (3) absent.