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.