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.