JBM S.B. 1340 75(R)    BILL ANALYSIS


NATURAL RESOURCES
S.B. 1340
By: Brown (Lewis, Ron)
5-9-97
Committee Report (Unamended)



BACKGROUND 

Currently, Texas law allows wastewater inspection fees to be increased to
fund the federal wastewater permit program contingent on federal
delegation of the program.  Also, current law provides that entities
holding wastewater permits are required to pay two annual fees.  Under the
current program, assessed fees may not be enough to cover the cost of the
wastewater permit program.  This bill allows the Texas Natural Resource
Conservation Commission (TNRCC) to increase certain fees in order to fund
the wastewater permit program. 

PURPOSE

To allow the TNRCC to increase certain fees in order to fund the
wastewater permit program. 

RULEMAKING AUTHORITY

It is the committee's opinion that this bill expressly delegates
additional rulemaking authority to the TNRCC in Section 5 and Section 6 of
the bill. 

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Section 26.0291, Water Code, effective until delegation
of the  National Pollutant Discharge Elimination System permit authority
(NPDES), by amending Subsections (a)-(c) and adding Subsection (f), to
provide that the fee imposed on each permittee for each waste discharge
permit held by the permittee is to supplement any other funds available to
pay TNRCC's expenses in inspecting waste treatment facilities and
enforcing the laws of the state, and the rules of the TNRCC, governing
waste discharge, waste treatment facilities, and the quality of the water
resources of the state.  Prohibits a fee amount from exceeding $25,000,
rather than $11,000, for each waste discharge permit held by the permitee.
Requires fees collected under this section to be deposited in a special
fund to be used, inter alia,  to supplement any other funds available for
paying TNRCC's expenses in carrying out water quality programs authorized
under this chapter and inspecting waste treatment facilities.  Authorizes
TNRCC to consolidate any fee assessed against a wastewater permit holder
under Section 26.0135, Water Code, with the assessment of a wastewater
inspection fee authorized under this section.  In consolidating these
accounts, this section prohibits TNRCC from recovering revenues under
Section 26.0135(h), Water Code, in excess of the amounts authorized by
that section.  Requires the commission to ensure that any revenues
collected from wastewater permit holders under Section 26.0135, Water
Code, are allocated to meet the purposes of the regional water quality
assessment program authorized under that section. 

SECTION 2. Amends Section 26.0291, Water Code, effective upon delegation
of NPDES, by amending Subsections (a)-(c), and adding Subsection (f), to
provide that the fee imposed on each permittee for each waste discharge
permit held by the permittee is to supplement any other funds available to
pay TNRCC's expenses in inspecting waste treatment facilities and
enforcing the laws of the state, and the rules of TNRCC, governing waste
discharge, waste treatment facilities, and the quality of the water
resources of the state.  Prohibits a fee amount from exceeding $40,000,
rather than $25,000, for each waste discharge permit held by a permittee.
Prohibits the commission from adopting any rule designed to increase the
fee imposed under this section on a treatment works owned by a local
government, as those terms are defined in Section 26.001,  Water Code, for
the purpose of paying the additional expenses necessary to obtain and
administer the NPDES program, for two years after the date of delegation
of the NPDES program, rather than before August 31, 1999.  Requires fees
collected to be deposited in a special fund to be used, inter alia,  to
supplement any other funds available for paying TNRCC's expenses in
carrying out water quality programs authorized under this chapter and
inspecting waste treatment facilities.  Authorizes TNRCC to consolidate
any fee assessed against a wastewater permit holder under Section 26.0135,
Water Code,  with the assessment of a wastewater inspection fee authorized
under this section.  In consolidating these assessments, this section
prohibits TNRCC from recovering revenues under Section 26.0135(h) in
excess of the amounts authorized by that section.  Requires TNRCC to
ensure that any revenues collected from wastewater permit holders under
Section 26.0135, Water Code, are allocated to meet the purposes of the
regional water quality assessment program authorized under that section. 

SECTION 3. Amends Section 341.041, Health and Safety Code, as follows:

Sec. 341.041.  Authorizes TNRCC by rule to charge a fee to a person who
owns, operates, or maintains a public drinking water supply system to
supplement other money available to pay TNRCC's expenses for: public
drinking water supply system programs or services authorized by this
subchapter or performed pursuant to the requirements of the federal Safe
Drinking Water Act; oversight and technical assistance to water and
wastewater utilities to ensure the availability and delivery of safe and
adequate water and wastewater services under Chapter 13, Water Code;
technical assistance to groundwater conservation districts organized and
operating under Chapter 36, Water Code; water resource management programs
and the regulation of water rights authorized under the Water Code; and
oversight of and technical assistance to conservation and reclamation
districts under the Water Code other than a district described by
Subdivision (3).  Prohibits the amount of the fees from exceeding the
reasonable costs of administering the programs and services authorized in
this section, rather than this subchapter, or the federal Safe Drinking
Water Act.  Makes conforming changes. 

SECTION 4. Provides that Section 26.0291(f), Water Code (effective until
delegation of NPDES permit authority), as added by Section 1 of this Act,
and Section 26.0291(f), Water Code (effective upon delegation of NPDES
permit authority), as added by Section 2 of this Act, take effect only if
the 75th Legislature enacts legislation that becomes law extending the
expiration date of Section 26.0135(h), Water Code, beyond January 1, 1999.
Provides that if Section 26.0135(h), Water Code, is not extended beyond
that date, Section 26.0291(f), Water Code, as added by Sections 1 and 2 of
this Act, has no effect. 

SECTION 5.  Prohibits, except as provided by this section,  the total
increase in the annual fees authorized under Section 26.0291, Water Code,
as amended by this Act, from exceeding $300,000, for any permit holder for
all permits subject to an assessment as of the effective date of this Act.
Authorizes the TNRCC by rule to adjust this limit to account for the
construction or acquisition of additional wastewater facilities subject to
a fee; however, any adjustment must be consistent with and proportional to
the number and capacity of facilities acquired. 

SECTION 6.  Prohibits, except as provided by this section, that any
increase in rates adopted by the TNRCC under Section 341.041, Health and
Safety Code, as amended by this Act, after the effective date of this Act,
may not exceed a total of $500,000 for the largest public water system
subject to the fee at the time the annual assessments of fees under
Section 341.041, Health and Safety Code, are made.  Authorizes TNRCC by
rule to adjust this limit to account for growth or expansion of the
system; however, any adjustment must be consistent with and proportional
to the number of connections and change in capacity of the system. 
   
SECTION 7. Emergency clause.
  Effective date: upon passage.