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.