By Yost H.B. No. 2491 A BILL TO BE ENTITLED 1-1 AN ACT 1-2 relating to certain environmental permitting procedures of the 1-3 Texas Natural Resource Conservation Commission. 1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-5 SECTION 1. Chapter 5, Water Code, is amended by adding 1-6 Subchapter J to read as follows: 1-7 SUBCHAPTER J. ENVIRONMENTAL PERMITTING PROCEDURES 1-8 Sec. 5.371. GENERAL PERMITTING PROCEDURES. (a) This 1-9 subchapter applies to commission procedures for an application to 1-10 issue, amend, or renew a permit for which public notice and an 1-11 opportunity for public hearing is required by Chapter 26 or 27 of 1-12 this code or Chapter 361 or 382, Health and Safety Code. 1-13 (b) The commission shall provide for permits-by-rule under 1-14 the chapters listed in Subsection (a) to the greatest extent 1-15 practicable and consistent with the requirements for United States 1-16 Environmental Protection Agency authorization of a state permit 1-17 program. 1-18 (c) The commission by rule shall identify categories of 1-19 applications related to permits for which notice or opportunity for 1-20 public hearing is not required. The commission shall exempt from 1-21 notice and public hearing requirements an application to: 1-22 (1) maintain or improve the permitted quality or 1-23 method of disposal of waste, control of air emissions, or injection 2-1 of fluid if there is not: 2-2 (A) a significant increase in the quantity of 2-3 waste, air contaminants, or fluid to be discharged, emitted, or 2-4 injected; or 2-5 (B) a material change in the place of discharge, 2-6 injection, emission, control, treatment, storage, or disposal; 2-7 (2) amend a permit in a manner that will not: 2-8 (A) cause a potential deterioration of water 2-9 quality in the state; or 2-10 (B) relax a standard or criterion in a manner 2-11 that raises a potential for deterioration of water quality in the 2-12 state; 2-13 (3) amend a permit in a manner that will not: 2-14 (A) result in a significant net increase in 2-15 permitted allowable emissions; or 2-16 (B) allow a significant emission of air 2-17 contaminants not previously emitted under the permit; 2-18 (4) increase air emissions that are incidental to the 2-19 installation of an emission control device; or 2-20 (5) change a facility in a manner within the scope and 2-21 limitations of a flexible permit. 2-22 (d) For an application described by Subsection (c), the 2-23 commission by rule may provide for the action on the application to 2-24 be taken by the executive director after notice of the application 2-25 is given to persons as required by law and at least 10 days before 3-1 the action is taken. 3-2 Sec. 5.372. INITIAL DETERMINATION BY EXECUTIVE DIRECTOR. 3-3 (a) When an application related to a permit is complete, the 3-4 executive director shall prepare and issue: 3-5 (1) a draft permit; or 3-6 (2) a notice of intent to deny. 3-7 (b) The executive director shall include a record of 3-8 proposed decision prepared in accordance with Section 5.373 with a 3-9 draft permit or notice of intent to deny. 3-10 (c) The commission shall send a copy of the record of the 3-11 proposed decision to: 3-12 (1) the applicant; 3-13 (2) a state or federal agency, as required or as 3-14 appropriate; and 3-15 (3) any other person on request of that person. 3-16 (d) Unless precluded by a requirement of the United States 3-17 Environmental Protection Agency related to state program 3-18 authorization, an applicant may give public notice of the 3-19 application before the initial determination of the executive 3-20 director is completed. If all requests for a public hearing the 3-21 commission receives under the notice are unreasonable or the 3-22 commission receives no requests for a public hearing, the executive 3-23 director may take final action on the application notwithstanding 3-24 this section and Sections 5.373 through 5.375. 3-25 (e) A notice of intent to deny shall state the executive 4-1 director's reasons for the intended denial. 4-2 (f) A draft permit shall contain all appropriate conditions, 4-3 compliance schedules, monitoring requirements, and technical 4-4 standards consistent with applicable commission rules. 4-5 Sec. 5.373. RECORD OF PROPOSED DECISION FOR DRAFT PERMIT. 4-6 (a) A record of proposed decision prepared for a draft permit 4-7 must: 4-8 (1) briefly show the principal facts and significant 4-9 factual, legal, methodological, and policy issues considered in 4-10 preparing the draft permit; and 4-11 (2) be based on the administrative record. 4-12 (b) The record of proposed decision must include, as 4-13 applicable: 4-14 (1) a brief description of the type of facility or 4-15 activity that is the subject of the draft permit; 4-16 (2) the type and quantity of wastes proposed to be or 4-17 that are being treated, stored, disposed of, injected, emitted, or 4-18 discharged; 4-19 (3) a brief summary of the reasons for the draft 4-20 permit conditions, including references to applicable statutes or 4-21 rules; 4-22 (4) the reasons a requested variance or alternative to 4-23 a required standard is or is not justified; 4-24 (5) the procedures for reaching a final decision on 4-25 the draft permit, including: 5-1 (A) the dates the comment period begins and 5-2 ends; 5-3 (B) the address where comments will be received; 5-4 and 5-5 (C) a description of: 5-6 (i) procedures for requesting a hearing; 5-7 (ii) the nature of the hearing; and 5-8 (iii) any other procedures by which the 5-9 public may participate in the final decision process; and 5-10 (6) the name and telephone number of a person to 5-11 contact for additional information. 5-12 (c) The commission shall make the record of proposed 5-13 decision available when the public notice is published. 5-14 Sec. 5.374. NOTICE OF INITIAL DETERMINATION; COMMENTS AND 5-15 REQUESTS FOR HEARING. (a) The executive director shall give public 5-16 notice that a draft permit or notice of intent to deny has been 5-17 prepared. The executive director shall provide for a 30-day period 5-18 for public review, comments, and requests for public hearing. The 5-19 period for public review and comments must be extended until the 5-20 close of the public hearing, if one is held. 5-21 (b) Notice required under this section is in addition to the 5-22 requirements of Section 26.028 of this code and Sections 361.081 5-23 and 361.082, Health and Safety Code. 5-24 (c) If the commission receives a timely written notice of 5-25 opposition to a draft permit issued by the executive director and a 6-1 request for a public hearing on the draft permit, the executive 6-2 director shall respond to the request and attempt to resolve the 6-3 issues that create the opposition. The opponent may withdraw the 6-4 request for a public hearing following the executive director's 6-5 response. 6-6 (d) The commission by rule may require additional public 6-7 notice necessary to satisfy requirements of the United States 6-8 Environmental Protection Agency for state permit program 6-9 authorization. 6-10 Sec. 5.375. PUBLIC HEARINGS. (a) A ruling on a permit 6-11 issuance or denial may not be made without an opportunity for a 6-12 public hearing. 6-13 (b) At a public hearing, each interested person shall be 6-14 given a reasonable opportunity to: 6-15 (1) orally or in writing, present significant 6-16 information, views, or arguments; and 6-17 (2) examine testifying witnesses. 6-18 (c) The executive director shall hold the public hearing if 6-19 the executive director determines: 6-20 (1) after examining requests for a public hearing, 6-21 that there is a significant degree of public interest in the draft 6-22 permit or notice of intent to deny; or 6-23 (2) that a public hearing should be held in order to 6-24 clarify one or more issues in the permit decision, regardless of 6-25 whether the commission receives a timely request for a public 7-1 hearing. 7-2 (d) When a draft permit or notice of intent to deny for a 7-3 hazardous waste management permit is at issue, the executive 7-4 director shall hold a public hearing in any case in which the 7-5 commission receives a notice of opposition to the permit decision 7-6 and a request for a public hearing on or before the 30th day after 7-7 the date of public notice under Section 5.374. The executive 7-8 director shall hold the public hearing under this subsection at a 7-9 location convenient to the population center nearest the proposed 7-10 facility whenever it is possible to do so. 7-11 (e) The executive director may designate a hearings officer 7-12 or panel to take evidence at the hearing. A hearing panel may 7-13 include technical experts on the staff of the executive director. 7-14 (f) Chapter 2001, Government Code, does not apply to a 7-15 public hearing held under this section. A hearing held under this 7-16 section shall be conducted so that all relevant information, views, 7-17 arguments, and testimony are sufficiently and fairly received 7-18 without undue repetition. 7-19 (g) A hearing held under this section shall be recorded. On 7-20 request, a hearing shall be transcribed. The person who requests a 7-21 hearing transcript must bear the cost of the transcript. 7-22 (h) The commission shall provide the record and, if 7-23 prepared, the transcript of a hearing for review of any person at 7-24 the commission's main office. 7-25 (i) A person who requests a copy of the record or of a 8-1 transcript must bear the cost of the copy. 8-2 Sec. 5.376. COSTS FOR INFORMATION REGARDING NEW HAZARDOUS 8-3 WASTE PERMIT. (a) On request of an affected person, the applicant 8-4 for a permit for a new hazardous waste management facility shall 8-5 furnish a bond or other financial assurance authorized by the 8-6 commission to guarantee payment of nonlegal costs of the affected 8-7 person incurred in providing to the commission information related 8-8 to the issuance of the permit. 8-9 (b) For an application for a new commercial hazardous waste 8-10 management facility, the bond or assurance must be in the amount of 8-11 $100,000. 8-12 (c) For an application for a new noncommercial hazardous 8-13 waste management facility, the bond or assurance must be in the 8-14 amount of $20,000. 8-15 (d) In determining whether the affected person is entitled 8-16 to reimbursement under this section, the executive director shall 8-17 apply the considerations provided by Section 361.0833(e), Health 8-18 and Safety Code. 8-19 (e) Nonlegal costs subject to reimbursement under this 8-20 section include the cost of a copy of the administrative record in 8-21 the case. 8-22 (f) The commission may not award in a case costs to one or 8-23 more persons that total an amount greater than the amount of 8-24 financial assurance required by this section. 8-25 (g) Subject to the limitations of Subsections (d) and (f), 9-1 the commission may award to a unit of local government legal costs 9-2 in addition to other costs. 9-3 Sec. 5.377. FINAL DECISION OF EXECUTIVE DIRECTOR. (a) The 9-4 executive director shall consider all comments received during the 9-5 public comment period and during any public hearing in determining: 9-6 (1) whether to issue the permit; and 9-7 (2) conditions on the permit if a permit is issued. 9-8 (b) In ruling on a permit application, the executive 9-9 director may deny the permit in whole or in part and may provide 9-10 reasonable conditions to a permit if: 9-11 (1) it appears that the permit applied for does not 9-12 meet applicable requirements; or 9-13 (2) the applicant refuses to agree to a permit 9-14 condition the executive director determines is necessary after 9-15 reviewing comments the commission receives. 9-16 (c) When the executive director issues a final decision on 9-17 an application, the executive director shall issue a response to 9-18 comments the commission receives. The response must: 9-19 (1) identify provisions of the draft permit that have 9-20 been changed for the final permit, if any, and state the reasons 9-21 for the change; and 9-22 (2) briefly describe and respond to all significant 9-23 comments the commission receives on the draft permit or permit 9-24 application. 9-25 (d) The response must be available to the public. 10-1 (e) The executive director shall mail notice of the final 10-2 decision on the application to the applicant and to each person who 10-3 commented during the public comment period or participated in the 10-4 public hearing. The notice must: 10-5 (1) include the response issued under Subsection (c); 10-6 (2) state that any person affected by the decision may 10-7 petition the commission as provided by Section 5.378; 10-8 (3) explain the petition process; 10-9 (4) identify the location and availability of the 10-10 administrative record; and 10-11 (5) state that limited copies of the administrative 10-12 record may be made available under Section 5.376, with costs of the 10-13 copies borne by the applicant. 10-14 (f) A final decision on a permit application becomes 10-15 effective 30 days after the date notice of the decision is mailed, 10-16 unless a petition for review is filed in accordance with Section 10-17 5.738, or at a later time specified by the executive director in 10-18 the decision. 10-19 Sec. 5.378. PETITION FOR COMMISSION REVIEW. (a) The 10-20 commission shall review the executive director's decision on a 10-21 permit application as provided by this section. 10-22 (b) Any person affected by the decision of the executive 10-23 director may file a petition for review with the commission. A 10-24 petition for review must be filed on or before the 30th day after 10-25 the date the executive director's notice of final decision is 11-1 mailed. 11-2 (c) The petition must include a statement of the reasons 11-3 that support commission review of the decision, demonstrate that 11-4 the issue raised by the petition was raised during the public 11-5 comment period or public hearing, identify all provisions of the 11-6 draft permit or order of denial of the application with which the 11-7 appellant disagrees, and show that the decision or a permit 11-8 condition is based on: 11-9 (1) a finding of fact or a conclusion of law that is 11-10 clearly in error; or 11-11 (2) an important policy consideration or an exercise 11-12 of discretion that the commission should review. 11-13 (d) The commission shall determine if the petitioner is an 11-14 affected person not later than the 60th day after the notice of 11-15 final decision is mailed. Any valid petition granted by the 11-16 commission shall be referred by the commission to the State Office 11-17 of Administrative Hearings for a hearing in accordance with Section 11-18 2003.047, Government Code. If the commission does not act on or 11-19 before that date, the petition is automatically referred as 11-20 provided in this subsection. 11-21 (e) At all stages of the petition to the commission and the 11-22 hearing at the State Office of Administrative Hearings, each 11-23 factual representation contained in the draft permit prepared by 11-24 the executive director and in the application, to the extent not 11-25 inconsistent with the draft permit, shall be deemed to be true and 12-1 correct, unless specifically controverted by sworn testimony or 12-2 other competent evidence in accordance with the requirements of 12-3 Subsection (f). 12-4 (f) An applicant in a permitting procedure established by 12-5 this subchapter shall bear the burdens of production and persuasion 12-6 with respect to the specification, condition, provisions, or facts 12-7 at issue in a draft permit prepared by the executive director. 12-8 (g) The filing of a petition under this section stays the 12-9 effect of a permit issued by the executive director until the 12-10 commission approves, modifies, or rejects the executive director's 12-11 permit decision. 12-12 Sec. 5.379. COMMISSION ACTION. (a) After the 12-13 administrative law judge of the State Office of Administrative 12-14 Hearings submits a proposal for decision to the commission, the 12-15 commission shall proceed as provided in Section 2003.047(i), 12-16 Government Code. 12-17 (b) The commission decision is final as provided in Section 12-18 2001.144, Government Code. 12-19 (c) Any motions for commission rehearing shall be governed 12-20 by Sections 2001.145 and 2001.146, Government Code. 12-21 Sec. 5.380. JUDICIAL REVIEW OF COMMISSION PERMIT DECISIONS. 12-22 (a) A person affected by the commission's final decision on a 12-23 permit application may petition for judicial review. The petition 12-24 must be filed on or before the 30th day after the date the 12-25 commission mails its final decision on the application. 13-1 (b) Failure to timely petition for commission review of the 13-2 executive director's decision is a bar to judicial review of the 13-3 decision. 13-4 (c) Judicial review of decisions of the commission under 13-5 this subchapter shall be under the substantial evidence rules as 13-6 provided by Section 2001.174, Government Code. 13-7 (d) The filing of an appeal does not stay any action 13-8 required by the commission's decision. 13-9 (e) The record of appeal shall include the record of 13-10 proceedings of the contested case hearing at the State Office of 13-11 Administrative Hearings. 13-12 SECTION 2. Subchapter I, Chapter 2001, Government Code, is 13-13 amended by adding Section 2001.226 to read as follows: 13-14 Sec. 2001.226. CERTAIN ENVIRONMENTAL PERMITS. Subchapters C 13-15 through H do not apply to a permit application required to be filed 13-16 with the Texas Natural Resource Conservation Commission for an 13-17 authorization under Chapter 26 or 27, Water Code, or Chapter 361 or 13-18 382, Health and Safety Code, if the application is subject to 13-19 Subchapter J, Water Code. 13-20 SECTION 3. The importance of this legislation and the 13-21 crowded condition of the calendars in both houses create an 13-22 emergency and an imperative public necessity that the 13-23 constitutional rule requiring bills to be read on three several 13-24 days in each house be suspended, and this rule is hereby suspended, 13-25 and that this Act take effect and be in force from and after its 14-1 passage, and it is so enacted.