By Yost                                               H.B. No. 2491
                                 A BILL TO BE ENTITLED
    1-1                                AN ACT
    1-2  relating to the environmental permitting procedures of the Texas
    1-3  Natural Resource Conservation Commission under Chapters 26 and 27,
    1-4  Water Code, and Chapters 361 and 382, Health and Safety Code.
    1-5        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-6        SECTION 1.  Chapter 5, Water Code, is amended by adding a new
    1-7  Subchapter I to read as follows:
    1-8                SUBCHAPTER I.  ENVIRONMENTAL PERMITTING
    1-9        Sec. 5.341.  PERMITTING PROCEDURES.  (a)  The permitting
   1-10  procedures set forth in this section apply to permit applications
   1-11  required to be filed with the Commission for authorization under
   1-12  Chapters 26 and 27 of this code and Chapters 361 and 382 of the
   1-13  Health and Safety Code.  The Commission by rule may provide for
   1-14  those activities requiring multiple authorization under these laws
   1-15  to be consolidated into a single permit or provide for
   1-16  permits-by-rule, consistent with the applicable requirements of the
   1-17  United States Environmental Protection Agency for state program
   1-18  authorization under these laws.
   1-19        (b)  The Commission shall encourage applicants for solid
   1-20  waste facilities to engage in the preapplication local review
   1-21  committee process set forth in Section 361.063, Health and Safety
   1-22  Code.
   1-23        Sec. 5.342.  INITIAL DETERMINATION BY EXECUTIVE DIRECTOR.
    2-1  (a)  Once an application is complete, the Executive Director shall
    2-2  prepare and issue either a Draft Permit or a Notice of Intent to
    2-3  Deny.
    2-4              (1)  A Draft Permit shall contain all appropriate
    2-5  conditions, compliance schedules, monitoring requirements and
    2-6  technical standards consistent with applicable regulations of the
    2-7  Commission.
    2-8              (2)  A Notice of Intent to Deny shall state the
    2-9  Executive Director's reasons for the intended denial.
   2-10        (b)  Any Draft Permit or Notice of Intent to Deny prepared by
   2-11  the Executive Director shall be accompanied by a Record of Proposed
   2-12  Decision and shall be based on the Administrative Record.  Copies
   2-13  of the Record of Proposed Decision shall be sent to the applicant;
   2-14  to any state or federal agency, as applicable; and on request, to
   2-15  any other person.
   2-16        Sec. 5.343.  RECORD OF PROPOSED DECISION.  A Record of
   2-17  Proposed Decision shall be prepared for the Draft Permit.  The
   2-18  Record of Proposed Decision shall briefly set forth the principal
   2-19  facts and the significant factual legal, methodological and policy
   2-20  questions considered in preparing the Draft Permit.  The Record of
   2-21  Proposed Decision shall be available at the time the public notice
   2-22  is published and shall include, when applicable:
   2-23              (1)  A brief description of the type of facility or
   2-24  activity which is the subject of the Draft Permit.
   2-25              (2)  The type and quantity of wastes which are proposed
    3-1  to be or are being treated, stored, disposed of, injected, emitted,
    3-2  or discharged.
    3-3              (3)  A brief summary of the basis for the Draft Permit
    3-4  conditions including references to applicable statutory or
    3-5  regulatory provisions.
    3-6              (4)  Reasons why any requested variances or
    3-7  alternatives to required standards do or not appear justified.
    3-8              (5)  A description of the procedures for reaching a
    3-9  final decision on the Draft Permit including:
   3-10                    (A)  The beginning an ending dates of the comment
   3-11  period and the address where comments will be received;
   3-12                    (B)  Procedures for requesting a hearing and the
   3-13  nature of that hearing; and
   3-14                    (C)  Any other procedures by which the public may
   3-15  participate in the final decision.
   3-16              (6)  Name and telephone number of a person to contact
   3-17  for additional information.
   3-18        Sec. 5.344.  NOTICE OF INITIAL DETERMINATION.  (a)  The
   3-19  Executive Director shall give public notice that a Draft Permit or
   3-20  a Notice of Intent to Deny has been prepared, and shall allow
   3-21  forty-five (45) days for review and public comment, including
   3-22  requests for public hearing.  The comment period shall
   3-23  automatically be extended to the close of any public hearing.
   3-24        (b)  The notice requirements of this section shall be in
   3-25  addition to the applicable requirements of Section 26.028 and
    4-1  Sections 361.081 and 361.082, Health and Safety Code.
    4-2        (c)  If the Executive Director issues a Draft Permit, and a
    4-3  timely written notice of opposition to the Draft Permit and a
    4-4  request for a public hearing is received, the Executive Director
    4-5  will respond to the request in an attempt to resolve the issues
    4-6  giving rise to the opposition.  If such issues are resolved to the
    4-7  satisfaction of the opponent, the opponent may withdraw the request
    4-8  for a public hearing.
    4-9        (d)  The Executive Director shall give due consideration and
   4-10  the weight deemed appropriate to all comments received during a
   4-11  public comment period and to all relevant facts and circumstances
   4-12  presented at any public hearing.
   4-13        (e)  The Commission may by rule establish additional public
   4-14  notice requirements in order to satisfy the requirements of the
   4-15  United States Environmental Protection Agency for state permit
   4-16  program authorization.
   4-17        Sec. 5.345.  PUBLIC HEARINGS.  (a)  No ruling shall be made
   4-18  on permit issuance or denial without an opportunity for a public
   4-19  hearing, at which all interested persons shall be given a
   4-20  reasonable chance to submit significant data, views or arguments
   4-21  orally or in writing and to examine witnesses testifying at the
   4-22  public hearing.
   4-23        (b)  The public hearing shall be held whenever:
   4-24              (1)  the Executive Director finds, on the basis of
   4-25  requests, a significant degree of public interest in the Draft
    5-1  Permit or Notice of Intent to Deny.
    5-2              (2)  the Executive Director determines following the
    5-3  end of the comment period that a public hearing should be held,
    5-4  notwithstanding the absence of a timely request for public hearing,
    5-5  in order to clarify one or more issues involved in the permit
    5-6  decision.
    5-7        (c)  For hazardous waste management permits only, the
    5-8  Executive Director shall hold a public hearing whenever a written
    5-9  notice of opposition to the permit decision and a request for a
   5-10  hearing is received by the Executive Director within 45 days of
   5-11  public notice under Section 5.342.  Whenever possible, the
   5-12  Executive Director shall schedule a hearing under this section at a
   5-13  location convenient to the nearest population center to the
   5-14  proposed facility.
   5-15        (d)  Public Hearings conducted under this section are subject
   5-16  to the following:
   5-17              (1)  The Executive Director may designate a hearing
   5-18  officer or a hearing panel to take evidence at the hearing.  A
   5-19  hearing panel may include technical experts on the Executive
   5-20  Director's staff.
   5-21              (2)  In hearings under this section, the contested case
   5-22  hearing procedures of the Administrative Procedure Act, Texas
   5-23  Government Code, Chapter 2001, shall not apply, but the hearings
   5-24  shall be conducted so that all relevant views, arguments, and
   5-25  testimony are amply and fairly received without undue repetition.
    6-1              (3)  All hearings shall be recorded.  On request, the
    6-2  hearing shall be transcribed.  The cost of the transcript will be
    6-3  borne by the person requesting the transcription of the hearing.
    6-4  The record or the transcript will be furnished to all persons for
    6-5  review at the Commission's main office.  Costs of a copy of the
    6-6  record of the transcript will be borne by those requesting such
    6-7  copies.
    6-8        Sec. 5.346.  COSTS FOR INFORMATION PROVIDED BY A PERSON
    6-9  AFFECTED REGARDING HAZARDOUS WASTE PERMIT.  (a)  Except as provided
   6-10  by Subsection (b), on request of a person affected, the applicant
   6-11  for a permit for a new hazardous waste management facility shall
   6-12  furnish a bond or other financial assurance authorized by the
   6-13  commission to guarantee payment of non-legal costs of a person
   6-14  affected who provides information to the commission on the question
   6-15  of the issuance of the permit, including costs of a copy of the
   6-16  Administrative Record.  For applications involving commercial
   6-17  hazardous waste management facilities, the bond or other financial
   6-18  assurance must be in the amount of one hundred thousand dollars
   6-19  ($100,000).  For applications that do not involve commercial
   6-20  hazardous waste management facilities, the bond or other financial
   6-21  assurance must be in the amount of twenty thousand dollars
   6-22  ($20,000).  In determining whether the person affected is entitled
   6-23  to reimbursement of non-legal costs, the Executive Director shall
   6-24  use the considerations set forth in Section 361.0833(b), Health and
   6-25  Safety Code.  The total costs awarded to all persons may not exceed
    7-1  the amount of the financial assurance required.
    7-2        (b)  In addition to costs under Subsection (a), a unit of
    7-3  local government may be paid legal costs subject to the limits of
    7-4  Subsection (a).
    7-5        Sec. 5.347.  FINAL DECISION OF EXECUTIVE DIRECTOR.  (a)
    7-6  Executive Director shall consider all comments received during the
    7-7  public comment period including any public hearing in determining
    7-8  whether to issue or deny the permit and what conditions should be
    7-9  included if a permit is issued.
   7-10        (b)  When ruling on permit issuance or denial, the Executive
   7-11  Director may disapprove in whole or in part, or make reasonable
   7-12  conditions to any permit, if it appears that the permit applied for
   7-13  will not meet the requirements of applicable regulations of the
   7-14  Commission or the applicant refuses to agree to permit conditions
   7-15  which the Executive Director determines are necessary based on
   7-16  comments received.
   7-17              (1)  At the time of any final permit decision is
   7-18  issued, the Executive Director shall issue a response to comments.
   7-19  This response shall:
   7-20                    (A)  specify which provisions, if any, of the
   7-21  draft permit have been changed in the final permit decision, and
   7-22  the reasons for the change;
   7-23                    (B)  briefly describe and respond to all
   7-24  significant comments on the draft permit or the permit application
   7-25  raised during the public comment period, or during any hearing; and
    8-1                    (C)  be available to the public.
    8-2        (c)  The Executive Director shall mail notice of the final
    8-3  action on the permit to the applicant and all persons who commented
    8-4  during the public comment period (including any public hearing).
    8-5  The notice shall include a Record of Decision that responds to all
    8-6  significant comments submitted during the public comment period and
    8-7  shall identify any change in the conditions of the draft permit and
    8-8  the reasons for the change.  The notice shall:
    8-9              (1)  state that any person affected by the decision of
   8-10  the Executive Director may petition the Commission in accordance
   8-11  with this section;
   8-12              (2)  state the date by which the petition must be
   8-13  filed;
   8-14              (3)  explain the petition process; and
   8-15              (4)  identify the location and availability of the
   8-16  Administrative Record, stating that limited copies of the
   8-17  Administrative Record may be made available with costs to be borne
   8-18  by the applicant pursuant to Section 5.346.
   8-19        (d)  A final permit decision shall become effective thirty
   8-20  (30) days after notice of the decision has been mailed to the
   8-21  applicant and any other person who has commented during the public
   8-22  comment period and has requested to be mailed a copy of the
   8-23  decision, or such later time as the Executive Director may specify
   8-24        Sec. 5.348.  PETITIONS FOR REVIEW.  The commission shall
   8-25  provide for petitions for review of Executive Director final permit
    9-1  decisions.
    9-2              (1)  A petition shall be filed with the Commission,
    9-3  within 30 days of the mailing of the Executive Director's final
    9-4  decision.
    9-5              (2)  The petition shall include a statement of the
    9-6  reasons supporting the review of the Executive Director's decision,
    9-7  including a demonstration that any issues being raised were raised
    9-8  during the public comment period (including any public hearing) and
    9-9  a showing that the decision, including the permit condition, is
   9-10  based on:
   9-11                    (A)  A finding of fact or conclusion of law that
   9-12  is clearly erroneous, or
   9-13                    (B)  An exercise of discretion or an important
   9-14  policy consideration that the Commission should, in its discretion,
   9-15  review.
   9-16              (3)  The Commission shall act on a petition not later
   9-17  than the 60th day after the date of the mailing of the Executive
   9-18  Director's final decision or the petition is overruled by operation
   9-19  of law.
   9-20              (4)  If the petition is granted, the Commission shall
   9-21  notify the petitioner and other persons who commented during the
   9-22  public comment period (including any public hearing).  The notice
   9-23  shall set forth a briefing schedule for the review and shall state
   9-24  that any affected person may file an amicus brief.
   9-25              (5)  If the Commission modifies or rejects the
   10-1  Executive Director's decision, the Commission's decision must be in
   10-2  writing and include a statement of the reason and legal basis for
   10-3  the change and be supported by the Administrative Record.  The
   10-4  decision of the Commission must be mailed to the petitioner and
   10-5  other persons who commented during the public comment period
   10-6  (including any public hearing).  A judicial appeal of the agency's
   10-7  decision must be filed within 30 days of the mailing of the
   10-8  Commission's decision in accordance with Section 5.351.
   10-9              (6)  The filing of a timely petition is a prerequisite
  10-10  for judicial review of the Executive Director's final decision.
  10-11              (7)  The petition to the Commission under this section
  10-12  does not affect the validity of a permit issued by the Executive
  10-13  Director until and unless a different decision is made by the
  10-14  Commission.
  10-15        Sec. 5.349.  JUDICIAL REVIEW OF PERMIT DECISIONS.  Judicial
  10-16  Review of the Executive Director's decision shall be under the
  10-17  substantial evidence rule as provided by the Administrative
  10-18  Procedure Act, Chapter 2001, Government Code.
  10-19              (1)  The filing of an appeal does not act as a stay of
  10-20  any action required by the Executive Director's decision.
  10-21              (2)  The record of appeal shall include all written and
  10-22  oral substantive public comments, the transcript of the hearing,
  10-23  all related correspondence, any responses to comments, and all
  10-24  other information relied upon by the Commission in deciding upon
  10-25  the permit action.
   11-1        SECTION 2.  Subchapter I, Chapter 5, Water Code, is
   11-2  renumbered to be Subchapter J.
   11-3        SECTION 3.  Chapter 2001, Government Code, is amended by
   11-4  adding a new Section 2001.226 to read as follows:
   11-5        Sec. 2001.226.  CERTAIN ENVIRONMENTAL PERMITS.  Subchapters C
   11-6  through H do not apply to permit applications required to be filed
   11-7  with the Texas Natural Resource Conservation Commission for
   11-8  authorization under Chapters 26 and 27., Water Code, and Chapters
   11-9  361 and 382, Health and Safety Code that are subject to the
  11-10  procedures of Subchapter I, Water Code.
  11-11        SECTION 4.  The importance of this legislation and the
  11-12  crowded condition of the calendars in both houses create an
  11-13  emergency and an imperative public necessity that the
  11-14  constitutional rule requiring bills to be read on three several
  11-15  days in each house be suspended, and this rule is hereby suspended,
  11-16  and that this Act take effect and be in force from and after its
  11-17  passage, and it is so enacted.