1-1 By: Yost (Senate Sponsor - Ratliff) H.B. No. 2491 1-2 (In the Senate - Received from the House May 15, 1995; 1-3 May 18, 1995, read first time and referred to Committee on Natural 1-4 Resources; May 25, 1995, reported favorably, as amended, by the 1-5 following vote: Yeas 7, Nays 1; May 25, 1995, sent to printer.) 1-6 COMMITTEE AMENDMENT NO. 1 By: Ratliff 1-7 Amend H.B. 2491 in SECTION 1 as follows: 1-8 (1) In Sec. 5.372(d) (page 3, line 21), delete "5.375" at 1-9 the end of the subsection and substitute "5.378". 1-10 (2) In Sec. 5.377(a) (page 8, line 15), delete "The" at the 1-11 beginning of the subsection and substitute "For decisions on 1-12 applications processed under Sections 5.373 through 5.375, the" 1-13 (3) In Sec. 5.377(e)(5) (page 9, line 21), between "(5)" and 1-14 "state" insert "for applications for new hazardous waste management 1-15 facilities," 1-16 COMMITTEE AMENDMENT NO. 2 By: Ratliff 1-17 Amend H.B. 2491 in SECTION 1, by deleting Subsection 5.378(d) (page 1-18 10, line 21 through page 11, line 1), and inserting in lieu thereof 1-19 the following: 1-20 (d) The commission shall determine if the petitioner is an 1-21 affected person. Not later than the 60th day after the notice of 1-22 final decision is mailed, a petition based on subsection (c)(1) 1-23 shall be referred by the commission to the State Office of 1-24 Administrative Hearings for a hearing in accordance with Section 1-25 2003.047, Government Code, unless the commission has determined 1-26 that the petitioner is not an affected person or that the petition 1-27 is unreasonable. If the commission does not act on or before that 1-28 date, the petition is automatically referred as provided in this 1-29 subsection. For a petition based on subsection (c)(2) of this 1-30 section, the commission shall give notice to the petitioner and 1-31 each other person who commented during the public comment period or 1-32 who participated in the public hearing not later than the 60th day 1-33 after the notice of final decision is mailed that the petition has 1-34 been granted or denied. If the petition is granted, the notice 1-35 must provide a briefing schedule for the review and state that any 1-36 person affected may file an amicus brief. 1-37 COMMITTEE AMENDMENT NO. 3 By: Ratliff 1-38 Amend H.B. 2491 in SECTION 1 as follows: 1-39 (1) In Subsection 5.378(e) (page 11, lines 8-9) strike "in 1-40 accordance with the requirements of subsection (f)." and insert in 1-41 lieu thereof "which either the commission or the administrative law 1-42 judge recognizes as being sufficient to render the factual matter 1-43 controverted. At the commencement of the hearing at the State 1-44 Office of Administrative Hearings, the draft permit prepared by the 1-45 executive director, as well as the application and any amendments 1-46 or supplements thereto, shall be received into the evidentiary 1-47 record. 1-48 (2) In Subsection 5.378(f) (page 11, line 13) insert "which 1-49 are recognized as controverted under subsection (e)" between 1-50 "director" and the period at the end of the subsection. 1-51 COMMITTEE AMENDMENT NO. 4 By: Ratliff 1-52 Amend H.B. 2491 in SECTION 2, in the proposed Sec. 2001.226, 1-53 Government Code, by inserting before "Subchapters" at the beginning 1-54 of the Section "(a) Except as provided by Subsection (b)," and by 1-55 adding a new Subsection (b) to read as follows: 1-56 (b) Subchapters C through H apply to a proceeding 1-57 transferred to the State Office of Administrative Hearings under 1-58 Section 5.378, Water Code. 1-59 A BILL TO BE ENTITLED 1-60 AN ACT 1-61 relating to certain environmental permitting procedures of the 1-62 Texas Natural Resource Conservation Commission. 1-63 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-64 SECTION 1. Chapter 5, Water Code, is amended by adding 1-65 Subchapter J to read as follows: 1-66 SUBCHAPTER J. ENVIRONMENTAL PERMITTING PROCEDURES 1-67 Sec. 5.371. GENERAL PERMITTING PROCEDURES. (a) This 1-68 subchapter applies to commission procedures for an application to 2-1 issue, amend, or renew a permit for which public notice and an 2-2 opportunity for public hearing is required by Chapter 26 or 27 of 2-3 this code or Chapter 361 or 382, Health and Safety Code. 2-4 (b) The commission shall provide for permits-by-rule under 2-5 the chapters listed in Subsection (a) to the greatest extent 2-6 practicable and consistent with the requirements for United States 2-7 Environmental Protection Agency authorization of a state permit 2-8 program. 2-9 (c) The commission by rule shall identify categories of 2-10 applications related to permits for which notice or opportunity for 2-11 public hearing is not required. The commission shall exempt from 2-12 notice and public hearing requirements an application to: 2-13 (1) maintain or improve the permitted quality or 2-14 method of disposal of waste, control of air emissions, or injection 2-15 of fluid if there is not: 2-16 (A) a significant increase in the quantity of 2-17 waste, air contaminants, or fluid to be discharged, emitted, or 2-18 injected; or 2-19 (B) a material change in the place of discharge, 2-20 injection, emission, control, treatment, storage, or disposal; 2-21 (2) amend a permit in a manner that will not: 2-22 (A) cause a potential deterioration of water 2-23 quality in the state; or 2-24 (B) relax a standard or criterion in a manner 2-25 that raises a potential for deterioration of water quality in the 2-26 state; 2-27 (3) amend a permit in a manner that will not: 2-28 (A) result in a significant net increase in 2-29 permitted allowable emissions; or 2-30 (B) allow a significant emission of air 2-31 contaminants not previously emitted under the permit; 2-32 (4) increase air emissions that are incidental to the 2-33 installation of an emission control device; or 2-34 (5) change a facility in a manner within the scope and 2-35 limitations of a flexible permit. 2-36 (d) For an application described by Subsection (c), the 2-37 commission by rule may provide for the action on the application to 2-38 be taken by the executive director after notice of the application 2-39 is given to persons as required by law and at least 10 days before 2-40 the action is taken. 2-41 Sec. 5.372. INITIAL DETERMINATION BY EXECUTIVE DIRECTOR. 2-42 (a) When an application related to a permit is complete, the 2-43 executive director shall prepare and issue: 2-44 (1) a draft permit; or 2-45 (2) a notice of intent to deny. 2-46 (b) The executive director shall include a record of 2-47 proposed decision prepared in accordance with Section 5.373 with a 2-48 draft permit or notice of intent to deny. 2-49 (c) The commission shall send a copy of the record of the 2-50 proposed decision to: 2-51 (1) the applicant; 2-52 (2) a state or federal agency, as required or as 2-53 appropriate; and 2-54 (3) any other person on request of that person. 2-55 (d) Unless precluded by a requirement of the United States 2-56 Environmental Protection Agency related to state program 2-57 authorization, an applicant may give public notice of the 2-58 application before the initial determination of the executive 2-59 director is completed. If all requests for a public hearing the 2-60 commission receives under the notice are unreasonable or the 2-61 commission receives no requests for a public hearing, the executive 2-62 director may take final action on the application notwithstanding 2-63 this section and Sections 5.373 through 5.375. 2-64 (e) A notice of intent to deny shall state the executive 2-65 director's reasons for the intended denial. 2-66 (f) A draft permit shall contain all appropriate conditions, 2-67 compliance schedules, monitoring requirements, and technical 2-68 standards consistent with applicable commission rules. 2-69 Sec. 5.373. RECORD OF PROPOSED DECISION FOR DRAFT PERMIT. 2-70 (a) A record of proposed decision prepared for a draft permit 3-1 must: 3-2 (1) briefly show the principal facts and significant 3-3 factual, legal, methodological, and policy issues considered in 3-4 preparing the draft permit; and 3-5 (2) be based on the administrative record. 3-6 (b) The record of proposed decision must include, as 3-7 applicable: 3-8 (1) a brief description of the type of facility or 3-9 activity that is the subject of the draft permit; 3-10 (2) the type and quantity of wastes proposed to be or 3-11 that are being treated, stored, disposed of, injected, emitted, or 3-12 discharged; 3-13 (3) a brief summary of the reasons for the draft 3-14 permit conditions, including references to applicable statutes or 3-15 rules; 3-16 (4) the reasons a requested variance or alternative to 3-17 a required standard is or is not justified; 3-18 (5) the procedures for reaching a final decision on 3-19 the draft permit, including: 3-20 (A) the dates the comment period begins and 3-21 ends; 3-22 (B) the address where comments will be received; 3-23 and 3-24 (C) a description of: 3-25 (i) procedures for requesting a hearing; 3-26 (ii) the nature of the hearing; and 3-27 (iii) any other procedures by which the 3-28 public may participate in the final decision process; and 3-29 (6) the name and telephone number of a person to 3-30 contact for additional information. 3-31 (c) The commission shall make the record of proposed 3-32 decision available when the public notice is published. 3-33 Sec. 5.374. NOTICE OF INITIAL DETERMINATION; COMMENTS AND 3-34 REQUESTS FOR HEARING. (a) The executive director shall give public 3-35 notice that a draft permit or notice of intent to deny has been 3-36 prepared. The executive director shall provide for a 30-day period 3-37 for public review, comments, and requests for public hearing. The 3-38 period for public review and comments must be extended until the 3-39 close of the public hearing, if one is held. 3-40 (b) Notice required under this section is in addition to the 3-41 requirements of Section 26.028 of this code and Sections 361.081 3-42 and 361.082, Health and Safety Code. 3-43 (c) If the commission receives a timely written notice of 3-44 opposition to a draft permit issued by the executive director and a 3-45 request for a public hearing on the draft permit, the executive 3-46 director shall respond to the request and attempt to resolve the 3-47 issues that create the opposition. The opponent may withdraw the 3-48 request for a public hearing following the executive director's 3-49 response. 3-50 (d) The commission by rule may require additional public 3-51 notice necessary to satisfy requirements of the United States 3-52 Environmental Protection Agency for state permit program 3-53 authorization. 3-54 Sec. 5.375. PUBLIC HEARINGS. (a) A ruling on a permit 3-55 issuance or denial may not be made without an opportunity for a 3-56 public hearing. 3-57 (b) At a public hearing, each interested person shall be 3-58 given a reasonable opportunity to: 3-59 (1) orally or in writing, present significant 3-60 information, views, or arguments; and 3-61 (2) examine testifying witnesses. 3-62 (c) The executive director shall hold the public hearing if 3-63 the executive director determines: 3-64 (1) after examining requests for a public hearing, 3-65 that there is a significant degree of public interest in the draft 3-66 permit or notice of intent to deny; or 3-67 (2) that a public hearing should be held in order to 3-68 clarify one or more issues in the permit decision, regardless of 3-69 whether the commission receives a timely request for a public 3-70 hearing. 4-1 (d) When a draft permit or notice of intent to deny for a 4-2 hazardous waste management permit is at issue, the executive 4-3 director shall hold a public hearing in any case in which the 4-4 commission receives a notice of opposition to the permit decision 4-5 and a request for a public hearing on or before the 30th day after 4-6 the date of public notice under Section 5.374. The executive 4-7 director shall hold the public hearing under this subsection at a 4-8 location convenient to the population center nearest the proposed 4-9 facility whenever it is possible to do so. 4-10 (e) The executive director may designate a hearings officer 4-11 or panel to take evidence at the hearing. A hearing panel may 4-12 include technical experts on the staff of the executive director. 4-13 (f) Chapter 2001, Government Code, does not apply to a 4-14 public hearing held under this section. A hearing held under this 4-15 section shall be conducted so that all relevant information, views, 4-16 arguments, and testimony are sufficiently and fairly received 4-17 without undue repetition. 4-18 (g) A hearing held under this section shall be recorded. On 4-19 request, a hearing shall be transcribed. The person who requests a 4-20 hearing transcript must bear the cost of the transcript. 4-21 (h) The commission shall provide the record and, if 4-22 prepared, the transcript of a hearing for review of any person at 4-23 the commission's main office. 4-24 (i) A person who requests a copy of the record or of a 4-25 transcript must bear the cost of the copy. 4-26 Sec. 5.376. COSTS FOR INFORMATION REGARDING NEW HAZARDOUS 4-27 WASTE PERMIT. (a) On request of an affected person, the applicant 4-28 for a permit for a new hazardous waste management facility shall 4-29 furnish a bond or other financial assurance authorized by the 4-30 commission to guarantee payment of nonlegal costs of the affected 4-31 person incurred in providing to the commission information related 4-32 to the issuance of the permit. 4-33 (b) For an application for a new commercial hazardous waste 4-34 management facility, the bond or assurance must be in the amount of 4-35 $100,000. 4-36 (c) For an application for a new noncommercial hazardous 4-37 waste management facility, the bond or assurance must be in the 4-38 amount of $20,000. 4-39 (d) In determining whether the affected person is entitled 4-40 to reimbursement under this section, the executive director shall 4-41 apply the considerations provided by Section 361.0833(e), Health 4-42 and Safety Code. 4-43 (e) Nonlegal costs subject to reimbursement under this 4-44 section include the cost of a copy of the administrative record in 4-45 the case. 4-46 (f) The commission may not award in a case costs to one or 4-47 more persons that total an amount greater than the amount of 4-48 financial assurance required by this section. 4-49 (g) Subject to the limitations of Subsections (d) and (f), 4-50 the commission may award to a unit of local government legal costs 4-51 in addition to other costs. 4-52 Sec. 5.377. FINAL DECISION OF EXECUTIVE DIRECTOR. (a) The 4-53 executive director shall consider all comments received during the 4-54 public comment period and during any public hearing in determining: 4-55 (1) whether to issue the permit; and 4-56 (2) conditions on the permit if a permit is issued. 4-57 (b) In ruling on a permit application, the executive 4-58 director may deny the permit in whole or in part and may provide 4-59 reasonable conditions to a permit if: 4-60 (1) it appears that the permit applied for does not 4-61 meet applicable requirements; or 4-62 (2) the applicant refuses to agree to a permit 4-63 condition the executive director determines is necessary after 4-64 reviewing comments the commission receives. 4-65 (c) When the executive director issues a final decision on 4-66 an application, the executive director shall issue a response to 4-67 comments the commission receives. The response must: 4-68 (1) identify provisions of the draft permit that have 4-69 been changed for the final permit, if any, and state the reasons 4-70 for the change; and 5-1 (2) briefly describe and respond to all significant 5-2 comments the commission receives on the draft permit or permit 5-3 application. 5-4 (d) The response must be available to the public. 5-5 (e) The executive director shall mail notice of the final 5-6 decision on the application to the applicant and to each person who 5-7 commented during the public comment period or participated in the 5-8 public hearing. The notice must: 5-9 (1) include the response issued under Subsection (c); 5-10 (2) state that any person affected by the decision may 5-11 petition the commission as provided by Section 5.378; 5-12 (3) explain the petition process; 5-13 (4) identify the location and availability of the 5-14 administrative record; and 5-15 (5) state that limited copies of the administrative 5-16 record may be made available under Section 5.376, with costs of the 5-17 copies borne by the applicant. 5-18 (f) A final decision on a permit application becomes 5-19 effective 30 days after the date notice of the decision is mailed, 5-20 unless a petition for review is filed in accordance with Section 5-21 5.738, or at a later time specified by the executive director in 5-22 the decision. 5-23 Sec. 5.378. PETITION FOR COMMISSION REVIEW. (a) The 5-24 commission shall review the executive director's decision on a 5-25 permit application as provided by this section. 5-26 (b) Any person affected by the decision of the executive 5-27 director may file a petition for review with the commission. A 5-28 petition for review must be filed on or before the 30th day after 5-29 the date the executive director's notice of final decision is 5-30 mailed. 5-31 (c) The petition must include a statement of the reasons 5-32 that support commission review of the decision, demonstrate that 5-33 the issue raised by the petition was raised during the public 5-34 comment period or public hearing, identify all provisions of the 5-35 draft permit or order of denial of the application with which the 5-36 appellant disagrees, and show that the decision or a permit 5-37 condition is based on: 5-38 (1) a finding of fact or a conclusion of law that is 5-39 clearly in error; or 5-40 (2) an important policy consideration or an exercise 5-41 of discretion that the commission should review. 5-42 (d) The commission shall determine if the petitioner is an 5-43 affected person not later than the 60th day after the notice of 5-44 final decision is mailed. Any valid petition granted by the 5-45 commission shall be referred by the commission to the State Office 5-46 of Administrative Hearings for a hearing in accordance with Section 5-47 2003.047, Government Code. If the commission does not act on or 5-48 before that date, the petition is automatically referred as 5-49 provided in this subsection. 5-50 (e) At all stages of the petition to the commission and the 5-51 hearing at the State Office of Administrative Hearings, each 5-52 factual representation contained in the draft permit prepared by 5-53 the executive director and in the application, to the extent not 5-54 inconsistent with the draft permit, shall be deemed to be true and 5-55 correct, unless specifically controverted by sworn testimony or 5-56 other competent evidence in accordance with the requirements of 5-57 Subsection (f). 5-58 (f) An applicant in a permitting procedure established by 5-59 this subchapter shall bear the burdens of production and persuasion 5-60 with respect to the specification, condition, provisions, or facts 5-61 at issue in a draft permit prepared by the executive director. 5-62 (g) The filing of a petition under this section stays the 5-63 effect of a permit issued by the executive director until the 5-64 commission approves, modifies, or rejects the executive director's 5-65 permit decision. 5-66 Sec. 5.379. COMMISSION ACTION. (a) After the 5-67 administrative law judge of the State Office of Administrative 5-68 Hearings submits a proposal for decision to the commission, the 5-69 commission shall proceed as provided in Section 2003.047(i), 5-70 Government Code. 6-1 (b) The commission decision is final as provided in Section 6-2 2001.144, Government Code. 6-3 (c) Any motions for commission rehearing shall be governed 6-4 by Sections 2001.145 and 2001.146, Government Code. 6-5 Sec. 5.380. JUDICIAL REVIEW OF COMMISSION PERMIT DECISIONS. 6-6 (a) A person affected by the commission's final decision on a 6-7 permit application may petition for judicial review. The petition 6-8 must be filed on or before the 30th day after the date the 6-9 commission mails its final decision on the application. 6-10 (b) Failure to timely petition for commission review of the 6-11 executive director's decision is a bar to judicial review of the 6-12 decision. 6-13 (c) Judicial review of decisions of the commission under 6-14 this subchapter shall be under the substantial evidence rules as 6-15 provided by Section 2001.174, Government Code. 6-16 (d) The filing of an appeal does not stay any action 6-17 required by the commission's decision. 6-18 (e) The record of appeal shall include the record of 6-19 proceedings of the contested case hearing at the State Office of 6-20 Administrative Hearings. 6-21 SECTION 2. Subchapter I, Chapter 2001, Government Code, is 6-22 amended by adding Section 2001.226 to read as follows: 6-23 Sec. 2001.226. CERTAIN ENVIRONMENTAL PERMITS. Subchapters C 6-24 through H do not apply to a permit application required to be filed 6-25 with the Texas Natural Resource Conservation Commission for an 6-26 authorization under Chapter 26 or 27, Water Code, or Chapter 361 or 6-27 382, Health and Safety Code, if the application is subject to 6-28 Subchapter J, Water Code. 6-29 SECTION 3. The importance of this legislation and the 6-30 crowded condition of the calendars in both houses create an 6-31 emergency and an imperative public necessity that the 6-32 constitutional rule requiring bills to be read on three several 6-33 days in each house be suspended, and this rule is hereby suspended, 6-34 and that this Act take effect and be in force from and after its 6-35 passage, and it is so enacted. 6-36 * * * * *