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.