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                               * * * * *