SRC-CDH S.B. 1591 75(R)   BILL ANALYSIS


Senate Research Center   S.B. 1591
By: Haywood
Natural Resources
4-2-97
As Filed


DIGEST 

Currently, the United States Environmental Protection Agency (EPA) is
proposing a "Project XL," which is advertised to allow companies to seek
alternatives to current laws and regulations in return for a higher
standard of environmental performance.  However, one major problem with
EPA's approach is that there is no statutory authority for EPA to waive
existing laws.  EPA does not presently plan to seek such authority, and
companies are uncomfortable with EPA's offer of compliance agreements or
on-site specific rules.  In addition, Texas presently regulates minor new
sources of air emissions in a more stringent manner than federal law,
which has raised concerns in negotiations with EPA over delegation of the
federal Title V air-permitting program.  This legislation provides
specific statutory authorization for state programs which exceed federal
law to serve as models for regulatory flexibility.  This authorization is
important for delegation of the federal Title V air-permitting program to
Texas, so Texas can allow flexibility in those areas where Texas law
exceeds federal law.  S.B. 1591 will also prove helpful if the U.S.
Congress authorizes a federal program. 

PURPOSE

As proposed, S.B. 1591 establishes the authority of the Texas Natural
Resource Conservation Commission regarding pollution control or abatement
flexibility. 

RULEMAKING AUTHORITY

Rulemaking authority is granted to the Texas Natural Resource Conservation
Commission in SECTION 1 (Sections 5.123(a), (b), and (d), Water Code) of
this bill.  

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Chapter 5D, Water Code, by adding Section 5.123, as
follows: 

Sec. 5.123.  REGULATORY FLEXIBILITY.  Authorizes the Texas Natural
Resource Conservation Commission (commission), by order, to exempt an
applicant from a requirement of a commission rule regarding the control or
abatement of pollution if the applicant proposes to control or abate
pollution by an alternative method or by applying an alternative standard
that is at least as protective of the environment and the public health as
the method or standard prescribed by the commission rule that would
otherwise apply, and consistent with state and federal law.  Requires the
commission, by rule, to specify the procedure for obtaining an exemption.
Requires the rules to provide for notice to affected persons and for
public participation in a proceeding involving an application for an
exemption.  Requires the commission's order to provide a specific
description of the alternative method or standard and condition the
exemption on compliance with the method or standard as the order
prescribes.  Authorizes the commission, by rule, to establish a reasonable
fee for applying for an exemption.  Provides that a violation of an order
is punishable as if it were a violation of the rule from which the order
grants an exemption. 

SECTION 2. Emergency clause.
  Effective date:  upon passage.