BLS H.B. 1190 75(R)BILL ANALYSIS NATURAL RESOURCES H.B. 1190 By: Counts 2-26-97 Committee Report (Amended) BACKGROUND In 1991, the Texas Legislature passed the Texas Clean Rivers Act ("the Act"), which requires that water quality assessments be conducted for each river basin in Texas, integrating all water quality issues within a river basin or watershed. The Texas Natural Resource Conservation Commission ("TNRCC") is directed to assess a fee on water use and wastewater discharge permit holders to fund the program. The Act also directs TNRCC to contract with river authorities to the greatest extent possible to conduct the assessments. During the 74th Regular Session, the Act was amended to limit administrative costs to 10% of the fees collected to require a biennial accounting of costs recovered and to sunset funding for the program on August 31, 1998. In light of that pending date, a broad-based group of stakeholders was formed to define problem areas in the program. Approximately 60 interest groups representing cities, businesses, industries, agricultural interests, the river authorities, environmental interests, affected state agencies, a special district, and a council of government participated in a series of meetings beginning in September 1995. This group, the Clean Rivers Stakeholders Workgroup, and its Legislative and Funding Subgroups, met throughout the Spring and Summer of 1996 to develop a revised Clean Rivers Program that the members of the workgroup could support. This bill represents the consensus recommendations of the stakeholders workgroup on substantive revisions to the Act, including the continuation of the funding mechanism at its present level. It also represents the majority position of the stakeholders on revisions to 26.177 of the Texas Water Code. The majority of stakeholders propose that 26.177, which presently requires any city with a population of 5,000 or greater to have a water pollution control and abatement program, be permissive for any community, regardless of population, and required only for communities with populations of 10,000 or greater where the Clean Rivers Regional Assessment of Water Quality or other TNRCC assessments or studies demonstrate a water pollution impact not associated with permitted sources. PURPOSE To make substantive revisions to the Texas Clean Rivers Act, as amended, and to Section 26.177 of the Texas Water Code in response to the recommendations of the Clean Rivers Stakeholders Workgroup. Also, to restore the funding mechanism for the Clean Rivers Program beyond August 31, 1998, in response to the recommendations of the stakeholders. RULEMAKING AUTHORITY It is the committee's opinion that this bill expressly grants new rulemaking authority to the TNRCC in Section 2 of the bill, amending subsection (c) of Section 26.0136 of the Water Code. Additionally, in Section 1 of the bill, subsections (c) and (h) of Section 25.0135 of the Water Code are amended to expand the TNRCC's rulemaking authority. Finally, also in Section 1 of the bill, the changes to subsection (d) of Section 25.0135 of the Water Code reference existing rulemaking authority of the TNRCC. SECTION BY SECTION ANALYSIS SECTION 1: Amends Section 26.0135 of the Texas Water Code as follows: (a) Emphasizes a focus on the monitoring of watersheds. Provides that the watershed monitoring and reporting duties under this section apply only to a river authority that has entered into an agreement with the TNRCC to perform those duties. Clarifies the goals of the monitoring program as providing data to identify significant long-term water quality trends, characterizing water quality conditions, supporting the permitting process, and classifying unclassified waters. Provides that the TNRCC shall consider available monitoring data and assessment results in developing or reviewing wastewater permits or stream standards, and in conducting water quality management activities. Monitoring is identified as an activity that must be ongoing and periodically revised. (b) Requires river authorities to include fee payers, the State Soil and Water Conservation Board, and other persons in the basin-wide steering committees. Provides that each steering committee shall develop achievable water quality objectives and priorities to be used to develop work plans and allocate available resources. (c) Provides that the purpose of monitoring is to identify significant water quality issues. Provides that each river authority shall submit quality assured data to the TNRCC, which shall use the data to develop the statewide water quality inventory and other assessment reports that satisfy federal reporting requirements. Provides that the TNRCC shall develop rules to: (1) develop a monitoring program that minimizes duplication, facilitates the assessment process, and targets monitoring to support the permitting and standards process; (2) establish a water quality database composed of quality assured data from various sources, and make the data available to interested persons; (3) identify water quality problems and pollution sources and set priorities for taking action regarding them; (4) develop a process for public participation that includes the basin steering committee and public review and input, and provides for meaningful review and comments by private citizens and organizations in the local watersheds; and (5) recommend water quality strategies for correcting identified water quality problems and pollution sources. (d) Outlines in detail the contents of the summary report on water quality conditions that each river authority must prepare, and provides a revised submission deadline. Requires the report to be available to the public and to include a summary of comments received on the report. (e) Deletes reference to Section 26.177 of the Texas Water Code. (f) No change. (g) No change. (h) Removes sunset date for funding mechanism. Amends existing TNRCC rulemaking authority by providing that the TNRCC's rules shall ensure that program funds are equitably apportioned among basins. Provides that costs recovered by the TNRCC may only be used to accomplish the purposes of this section. Provides that the river authorities shall assist the TNRCC with its costs-accounting report. (i) Defines "quality assured data." SECTION 2: Amends Section 26.0136 of the Texas Water Code to require that water quality management functions be oriented on a watershed basis which considers the priorities identified by the river authorities and basin steering committees and to require the TNRCC to develop rules to maximize the use of state and federal funding and grant programs for water quality purposes. SECTION 3: Amends Section 26.023 of the Texas Water Code to require the TNRCC to consider all quality assured data collected under 26.0135 in the development of water quality standards. SECTION 4: Amends Section 26.0285 of the Texas Water Code to require that basin-wide monitoring plans include targeted monitoring to assist the permitting process. SECTION 5: Amends Section 26.177 of the Texas Water Code to allow the TNRCC to make the establishment of a water pollution control and abatement program mandatory only for cities with a population greater than 10,000 where pollution impacts have been identified through the Clean Rivers Program assessments or other TNRCC assessments or studies. Also, amends 26.177 to make the TNRCC's administrative cost recovery under that section permissive, rather than mandatory. SECTION 6: Effective date: September 1, 1997. SECTION 7: Emergency clause. EXPLANATION OF AMENDMENTS Committee Amendment #1: In Section 1 of the bill, proposed subsection (c)(2) of Section 26.0135 of the Water Code, clarifies that a wastewater discharge permit holder, rather than a permit holder of any type, is subject the provisions related to providing quality assured data for the establishment of a water quality database. Committee Amendment #2: In Section 2 of the bill, proposed subsection (c) of Section 26.0136 of the Water Code, clarifies that it is only funding and grant programs related to the TNRCC's water quality programs that are subject to the provisions of the subsection.