SRC-JEC C.S.H.B. 2912 77(R)BILL ANALYSIS


Senate Research CenterC.S.H.B. 2912
77R14761 MI-DBy: Bosse (Harris)
Natural Resources
5/7/2001
Committee Report (Substituted)


DIGEST AND PURPOSE 

The Texas Natural Resource Conservation Commission (TNRCC) protects the
state's natural resources and human health by ensuring clean air, clean
water, and the safe management of waste. The legislature created the agency
in 1993, by consolidating the Texas Water Commission, Texas Air Control
Board, and environmental programs from the Texas Department of Health. The
agency implements state and federal environmental regulatory laws by
issuing permits and authorizations for the control of air pollution, the
safe operation of water and wastewater facilities, and the treatment,
storage, and disposal of hazardous, industrial, municipal, and low-level
radioactive waste. TNRCC ensures compliance with environmental laws by
conducting inspections of regulated facilities, monitoring air and water
quality, providing technical assistance, encouraging voluntary compliance,
and taking formal enforcement action against suspected violators. The
agency also develops programs for the cleanup and eventual reclamation of
contaminated industrial and abandoned hazardous waste sites.  

TNRCC is subject to the Texas Sunset Act and will be abolished September 1,
2001 unless it is continued by the legislature. In its review of TNRCC, the
Sunset Advisory Commission (commission) found that the traditional,
prescriptive regulatory approach focuses on outputs and does not adequately
support innovation, provide incentives to reward performance, or solve
persistent environmental problems. The commission also found that TNRCC
lacks tools needed to better support its environmental protection mission
and that additional changes are needed to ensure greater public access to
the agency's decision making process. The commission's recommendations
would give regulated entities a larger stake in and enable all affected
groups to take a greater role in protecting the environment. C.S.H.B. 2912
continues TNRCC for 12 years and contains the commission's recommendations
to better position the agency to address the state's environmental
regulatory needs.  

RULEMAKING AUTHORITY

Rulemaking authority is expressly granted to the Texas Natural Resource
Conservation Commission in the following SECTIONS: 1.09 (Sections 5.127,
5.129, and 5.131, Water Code);  1.17 (Section 5.228, Water Code); 1.21
(Section 7.0025, Water Code); 2.02 (Section 5.701, Water Code); 2.04
(Section 26.0291, Water Code); 3.01 (Sections 5.753 and 5.754, Water Code);
4.02 (Sections 382.0215 and 382.0216, Health and Safety Code); 4.05
(Section 382.0518, Health and Safety Code); 4.06 (Sections 382.05183,
382.05184, 382.05185, and 382.05186, Health and Safety Code); 5.01
(Sections 5.802, 5.803, 5.804, and 5.805, Water Code); 6.01 (Section 3A,
Article 6243-101, V.T.C.S.); 7.03 (Section 366.076, Health and Safety
Code); 8.02 (Section 361.119, Health and Safety Code); 8.05 (Section
361.121, Health and Safety Code);10.02 (Section 26.504, Water Code); 16.06
(Section 27.051, Water Code); 16.08 (Section 361.084, Health and Safety
Code); 17.02; 17.03; 17.04; 17.05; 17.08; 17.10; and 17.11 of this bill.
Rulemaking authority is expressly granted to the Texas Department of Health
in SECTION 4.09 (Section 382.056, Health and Safety Code) of this bill. 

SECTION BY SECTION ANALYSIS

ARTICLE 1.  ADMINISTRATION AND POLICY

 SECTION 1.01. Amends Section 5.014, Water Code, as follows:

Sec. 5.014. SUNSET PROVISION. Provides that unless in existence as provided
by that chapter, the Texas Natural Resource Conservation Commission
(commission) is abolished and this chapter expires September 1, 2013,
rather than 2001. 

SECTION 1.02. Amends Section 5.052(c), Water Code, to require appointments
to the commission to be made without regard to certain factors. 

SECTION 1.03. Amends Section 5.053(a), Water Code, to prohibit a person
from being a member of the commission if the person or the person's spouse
meets certain criteria. Deletes text regarding eligibility to serve on the
commission. 

SECTION 1.04. Amends Chapter 5C, Water Code, by adding Section 5.0535, as
follows: 
 
Sec. 5.0535.  REQUIRED TRAINING PROGRAM FOR COMMISSION MEMBERS. (a)
Prohibits a person who is appointed to and qualifies for office as a member
of the commission from voting, deliberating, or being counted as a member
in attendance at a meeting of the commission until the person completes a
training program that complies with this section. 
.
(b)  Requires the training program to provide the person with certain
information. 

 (c)  Entitles a person appointed to the commission to reimbursement, as
provided by the General Appropriations Act, for the travel expenses
incurred in attending the training program regardless of whether the
attendance at the program occurs before or after the person qualifies for
office. 

SECTION 1.05. Amends Section 5.054, Water Code, as follows:

Sec. 5.054. (a) Provides that it is a ground for removal from the
commission that, rather than if, a member meets certain conditions. 

  (b) Makes conforming changes.

(c) Requires the executive director, if the executive director or a member
has knowledge that a potential ground for removal exists, to notify the
presiding officer, rather than chairman, of the commission of the potential
ground. Requires the presiding officer, rather than chairman of the
commission, to then notify the governor and the attorney general that a
potential ground for removal exists. Requires the executive director or
another member of the commission, if the potential ground for removal
involves the presiding officer, to notify the member of the commission with
the most seniority, who will then notify the governor and the attorney
general that a potential ground for removal exists. 

SECTION 1.06. Amends Sections 5.058(a)-(d), Water Code, as follows:

(a) Requires the governor to designate a member of the commission as the
presiding officer, rather than chairman, of the commission to serve in that
capacity at the pleasure of the governor. Deletes text regarding the
chairman. 

(b) Authorizes the presiding officer to designate another commissioner to
act for the presiding officer in the presiding officer's absence. Makes
conforming and nonsubstantive changes. 

  (c) Makes a conforming change.
 
  (d) Makes conforming changes.

SECTION 1.07. Amends Sections 5.059 and 5.060, Water Code, as follows:

Sec. 5.059.  Defines "Texas trade association."  Prohibits a person from
being a member of the commission and being a commission employee employed
in a "bona fide executive, administrative, or professional capacity," as
that phrase is used for purposes of establishing an exemption to the
overtime provisions of the federal Fair Labor Standards Act of 1938 (29
U.S.C. Section 201 et seq.) and its subsequent amendments, if certain
conditions exist. Deletes text regarding certain persons affiliated with a
trade association. 

Sec. 5.060. Prohibits a person from being a member of the commission or
acting as general counsel to the commission if the person is required to
register as a lobbyist under Chapter 305 (Registration of Lobbyists),
Government Code, because, rather than by virtue, of the person's activities
for compensation on behalf of a profession related to the operation of the
commission. Deletes text regarding certain persons serving on the
commission. Makes conforming and nonsubstantive changes. 

SECTION 1.08. Amends Section 5.107, Water Code, as follows:

Sec. 5.107.  New heading: ADVISORY COMMITTEES, WORK GROUPS, AND TASK
FORCES. (a)  Authorizes the commission or the executive director to create
and consult with groups for certain purposes. 

(b)  Requires the commission to identify affected groups of interested
persons for advisory committees, work groups, and task forces and to make
reasonable attempts to have balanced representation on all advisory
committees, work groups, and task forces.  Provides that this subsection
does not require the commission to ensure that all representatives attend a
scheduled meeting.  Prohibits a rule or other action of the commission from
being challenged solely because of the composition of an advisory
committee, work group, or task force. 

(c)  Requires the commission to monitor the composition and activities of
advisory committees, work groups, and task forces appointed by the
commission or formed at the staff level and to maintain that information in
a form and location that is easily accessible to the public, including
making the information available on the Internet. 

SECTION 1.09. Amends Chapter 5D, Water Code, by adding Sections
5.127-5.131, as follows: 

Sec. 5.127.  USE OF ENVIRONMENTAL TESTING LABORATORY DATA AND ANALYSIS. (a)
Authorizes the commission to accept environmental testing laboratory data
and analysis for use in commission decisions regarding any matter under the
commission's jurisdiction relating to permits or other authorizations,
compliance matters, enforcement actions, or corrective actions only if the
data and analysis is prepared by an environmental testing laboratory
accredited by the commission under Subchapter R or an environmental testing
laboratory described in Subsection (b). 

(b)  Authorizes the commission to accept for use in commission decisions
data and analysis prepared by certain entities. 
  
(c)  Authorizes the commission by rule to require that data and analysis
used in other commission decisions be obtained from an environmental
testing laboratory accredited by the commission under Subchapter R. 

(d) Requires the commission to periodically inspect on-site or in-house
environmental  testing laboratories described in Subsection (b). 

Sec. 5.128.  ELECTRONIC REPORTING TO COMMISSION; REDUCTION OF DUPLICATE
REPORTING. (a)  Requires the commission to encourage the use of electronic
reporting through the Internet, to the extent practicable, for reports
required by the commission. Requires an electronic report to be submitted
in a format prescribed by the commission. Authorizes the commission to
consult with the Department of Information Resources on developing a
simple format for use in implementing this subsection. 

(b)  Requires the commission to strive to reduce duplication in reporting
requirements throughout the agency. 

Sec. 5.129.  SUMMARY FOR PUBLIC NOTICES. (a)  Requires the commission by
rule to provide for each public notice issued or published by the
commission or by a person under the jurisdiction of the commission as
required by law or by commission rule to include at the beginning of the
notice a succinct statement of the subject of the notice.  Requires the
rules to provide that a summary statement  be designed to inform the reader
of the subject matter of the notice without having to read the entire text
of the notice. 

(b)  Prohibits the summary statement from being grounds for challenging the
validity of the proposed action for which the notice was published. 

Sec. 5.130.  PRIORITY AREAS.  Requires the commission to give priority to
monitoring and enforcement in areas in which regulated facilities are
concentrated. 

Sec. 5.131.  ENVIRONMENTAL MANAGEMENT SYSTEMS.  (a) Defines "environmental
management system." 

(b) Requires the commission by rule to adopt a comprehensive program that
provides regulatory incentives to encourage the use of environmental
management systems by regulated entities, state agencies, local
governments, and other entities as determined by the commission.  Sets
forth elements that may be included as incentives. 

  (c) Requires the commission to perform certain duties.

SECTION 1.10.  Amends Chapter 5E, Water Code, by adding Section 5.1733, as
follows: 

Sec. 5.1733.  ELECTRONIC POSTING OF INFORMATION.  Requires the commission
to post public information on its website.  Sets forth information required
to be included on the website. 

SECTION 1.11. Amends Chapter 5E, Water Code, by adding Section 5.1765, as
follows: 

Sec. 5.1765.  PUBLICATION OF INFORMATION REGARDING COMPLAINT PROCEDURES AND
POLICIES. Requires the commission to establish a process for educating the
public regarding the commission's complaint policies and procedures.
Requires the commission, as part of the public education process, to make
available to the public in pamphlet form an explanation of the complaint
policies and procedures, including information regarding and standards
applicable to the collection and preservation of credible evidence of
environmental problems by members of the public. 

SECTION 1.12. Amends Sections 5.176 and 5.177, Water Code, as follows:

Sec. 5.176.  (a) Requires the commission to maintain a, rather than keep an
information, file on each written complaint other than an anonymous
complaint filed with the commission about a  matter within the commission's
regulatory jurisdiction.  Requires the files to include certain
information. 
 
(b)  Requires the commission to establish and implement procedures for
receiving complaints submitted by means of the Internet and orally and to
maintain files on those complaints as provided by Subsection (a). 

Sec. 5.177.  New heading: NOTICE OF COMPLAINT PROCEDURES; NOTICE OF
INVESTIGATION STATUS. (a)  Requires the agency to provide to the person
filing the complaint about a matter within the commission's regulatory
jurisdiction and to each person who is the subject of the complaint a copy
of the commission's policies and procedures relating to complaint
investigation and resolution. 

(b) Requires the commission, at least quarterly until final disposition of
the complaint, to notify the person filing the complaint and each person
who is a subject of, rather than parties to, the complaint the of the
status of the investigation, rather than complaint, unless the notice would
jeopardize an undercover investigation. Deletes text regarding written
complaint. 

 (c)  Provides that the commission is not required to provide the
information described in Subsection (a) or (b) to a complainant who files
an anonymous complaint or provides inaccurate contact information. 

SECTION 1.13. Amends Chapter 5E, Water Code, by adding Sections 5.1771,
5.1772, and 5.1773, as follows: 

Sec. 5.1771.  COORDINATION OF COMPLAINT INVESTIGATIONS WITH LOCAL
ENFORCEMENT OFFICIALS:  TRAINING. (a)  Requires the commission to share
information regarding a complaint about a matter within the commission's
regulatory jurisdiction made to the commission with local officials with
authority to act on the complaint in the county or municipality in which
the alleged action or omission that is the subject of the complaint
occurred or is threatening to occur. 

 (b) Requires the commission, on request, to provide training for local
enforcement officials in investigating complaints and enforcing
environmental laws relating to matters under the commission's jurisdiction
under this code or the Health and Safety Code. Requires the training to
include certain information. 

(c)  Authorizes the commission to charge a reasonable fee for providing
training to local enforcement officials as required by Subsection (b) in an
amount sufficient to recover the costs of the training.  Requires money
collected under this subsection to be deposited to the credit of the water
resource management account. 

Sec. 5.1772.  AFTER-HOURS RESPONSE TO COMPLAINTS. (a)  Requires the
commission to adopt and implement a policy to provide timely response to
complaints during periods outside regular business hours. 
 
(b)  Provides that this section does not require availability of field
inspectors for response 24 hours a day, seven days a week, in all parts of
the state; or  authorize additional use of overtime. 

Sec. 5.1773.  COMPLAINT ASSESSMENT. (a)  Requires the commission annually
to conduct a comprehensive analysis of the complaints it receives,
including analysis of certain categories. 

 (b)  Requires the commission, in addition to the analysis required by
Subsection (a), to assess the impact of changes made in the commission's
complaint policy. 

SECTION 1.14. Amends Section 5.178(b), Water Code, to require the report
due by December 1 of an even-numbered year to include certain information. 

SECTION 1.15. Amends Section 5.227, Water Code, to require the executive
director or his designee to prepare and maintain a written policy statement
that implements a program of equal employment opportunity to ensure that
all personnel decisions, rather than transactions, are made without regard
to certain factors. Requires the policy statement to include certain
information.  Requires the policy statement to meet certain conditions.
Deletes text regarding procedures and reasonable methods and a biennial
report to the legislature.  Makes conforming changes.   

SECTION 1.16. Amends Chapter 5F, Water Code, by adding Section 5.2275, as
follows: 

Sec. 5.2275.  STATE EMPLOYEE INCENTIVE PROGRAM. Requires the executive
director or the executive director's designee to provide to commission
employees information and training on the benefits and methods of
participation in the state employee incentive program under Chapter
2108(B), Government Code. 

SECTION 1.17. Amends Section 5.228, Water Code, as follows:

(b)  Requires the executive director to be named a party in hearings before
the commission in a matter in which the executive director bears the burden
of proof. 

(c)  Authorizes the executive director to participate as a party in
contested case permit hearings before the commission or the State Office of
Administrative Hearings for the sole purpose of providing information to
complete the administrative record.  Requires the commission by rule to
specify the factors the executive director must consider in determining,
case by case, whether to participate as a party in a contested case permit
hearing. Requires the commission to consider certain factors in developing
the rules under this subsection. 
  
(d)  Prohibits the executive director or the executive director's
designated representative,  in a contested case hearing relating to a
permit application, from rehabilitating the testimony of a witness unless
the witness is a commission employee testifying for the sole purpose of
providing information to complete the administrative record. 
 
(e)  Prohibits the executive director or the executive director's
designated representative from assisting a permit applicant in meeting its
burden of proof in a hearing before the commission or the State Office of
Administrative Hearings unless the permit applicant fits a category of
permit applicant that the commission by rule has designated as eligible to
receive assistance.  Requires the commission to adopt rules establishing
categories of permit applicants eligible to receive assistance. 

(f) Provides that the fact that the executive director is not named as a
party in a hearing before the commission is not grounds for appealing a
commission decision. 

SECTION 1.18. Amends Chapter 5F, Water Code, by adding Section 5.2291, as
follows: 

Sec. 5.2291.  SCIENTIFIC AND TECHNICAL SERVICES. (a)  Defines "scientific
and technical environmental services." 

(b) Requires the procurement of a contract for scientific and technical
environmental services to be conducted under the procedures for
professional services selection provided in Chapter 2254A, Government Code. 
 
SECTION 1.19. Amends Section 5.234(b), Water Code, to require the executive
director,  if, in the course of reviewing an application and preparing a
draft permit, the executive director has required changes to be made to the
applicant's proposal, to prepare a summary of the changes that were made to
increase protection of public health and the environment. 

SECTION 1.20.  Amends Sections 5.273 and 5.274, Water Code, as follows: 

Sec. 5.273.  Requires the public interest counsel to recommend needed
legislative and regulatory changes. 

Sec. 5.274.  New heading: STAFF; OUTSIDE TECHNICAL SUPPORT.  Authorizes the
public interest counsel to obtain and use outside technical support to
carry out its functions under this code. 

SECTION 1.21.   Amends Chapter 7A, Water Code, by adding Section 7.0025, as
follows: 

Sec. 7.0025.  INITIATION OF ENFORCEMENT ACTION USING INFORMATION PROVIDED
BY PRIVATE INDIVIDUAL. (a)  Authorizes the commission to initiate an
enforcement action on a matter under its jurisdiction under this code or
the Health and Safety Code based on information it receives from a private
individual if that information, in the commission's judgment, is of
sufficient value and credibility to warrant the initiation of an
enforcement action. 

(b)  Authorizes the executive director or the executive director's
designated representative to evaluate the value and credibility of
information received from a private individual and the merits of any
proposed enforcement action based on that information. 

(c)  Authorizes the commission by rule to adopt criteria for the executive
director to use in evaluating the value and credibility of information
received from a private individual and for use of that information in an
enforcement action. 

(d)  Authorizes a private individual who submits information on which the
commission relies for all or part of an enforcement case to be called to
testify in the enforcement proceedings and provides that such an individual
is subject to all sanctions under law for falsifying evidence.  Provides
that if the commission relies on the information submitted by a private
individual to prove an enforcement case, any physical or sampling data is
required to have been collected or gathered in accordance with commission
protocols. 

ARTICLE 2.  FEES AND RATES

SECTION 2.01.  Amends Chapter 5, Water Code, by adding a heading for
Subchapter P to read as follows: 

SUBCHAPTER P.  FEES

SECTION 2.02.  Transfers Section 5.235, Water Code, to new Chapter 5P,
Water Code, redesignates it as Section 5.701, and amends it, as follows: 

(e) Authorizes the commission by rule to establish, rather than set, the
application fee for the creation or addition of certain powers in an amount
sufficient to cover, rather than not to exceed, the costs of reviewing and
processing the application, plus the cost of required notice. Authorizes
the commission also to use the application fee to cover other costs
incurred to protect water resources in this state, including assessment of
water quality, reasonably related to the activities of any of the persons
required to pay a fee under the statutes listed in  Subsection (p). 

(p) Authorizes fees collected for deposit to the water resource management
account under certain statutes, notwithstanding any other law, to be
appropriated and used to protect water resources in this state, including
assessment of water quality, reasonably related to the activities of any of
the persons required to pay a fee under certain statutes. 

(q)  Authorizes fees collected for deposit to the water resource management
account under certain statutes, notwithstanding any other law, to be
appropriated and used to protect water resources in this state, including
assessment of water quality, reasonably related to the activities of any of
the persons required to pay a fee under certain statutes. 

SECTION 2.03. Amends Chapter 5P, Water Code, by adding Sections
5.702-5.707, as follows: 

Sec. 5.702.  PAYMENT OF FEES REQUIRED WHEN DUE. (a)  Requires a fee due the
commission under this code or the Health and Safety Code to be paid on the
date the fee is due, regardless of whether the fee is billed by the
commission to the person required to pay the fee or is calculated and paid
to the commission by the person required to pay the fee. 

(b)  Prohibits a person required to pay a fee to the commission from
disputing the assessment of or amount of a fee before the fee has been paid
in full. 

Sec. 5.703.  FEE ADJUSTMENTS. (a)  Prohibits the commission from
considering adjusting the amount of a fee due the commission under this
code or the Health and Safety Code under certain conditions. 

 (b)  Authorizes a person who pays an amount that exceeds the amount of the
fee due because the commission incorrectly calculated the fee or the person
made a duplicate payment to request a refund of the excess amount paid
before the fourth anniversary of the date on which the excess amount was
paid. 

(c)  Requires a request for a refund or credit in an amount that exceeds
$5,000 to be forwarded for approval to the commission fee audit staff,
together with an explanation of the grounds for the requested refund or
credit.  Provides that approval of a refund or credit does not prevent the
fee audit staff from conducting a subsequent audit of the person for whom
the refund or credit was approved. 

Sec. 5.704.  NOTICE OF CHANGE IN PAYMENT PROCEDURE. Requires the commission
to promptly notify each person required to pay a commission fee under this
code or the Health and Safety Code of any change in fee payment procedures. 

Sec. 5.705.  NOTICE OF VIOLATION. (a)  Authorizes the commission to issue a
notice of violation to a person required to pay a commission fee under this
code or the Health and Safety Code for knowingly violating reporting
requirements or knowingly calculating the fee in an amount less than the
amount actually due. 

(b)  Authorizes the executive director to modify audit findings reported by
a commission fee auditor only if the executive director provides a written
explanation showing good cause for the modification. 

Sec. 5.706.  PENALTIES AND INTEREST ON DELINQUENT FEES. (a) Authorizes the
commission, except as otherwise provided by law, to collect certain
penalties for a delinquent fee due the commission under this code or the
Health and Safety Code. 

(b)  Provides that interest accrues, unless otherwise required by law,
beginning on the  61st day after the date on which the fee was due, on the
total amount of fee and penalties that have not been paid on or before the
61st day after the date on which the fee was due.  Provides that the yearly
interest rate is the rate of interest established for delinquent taxes
under Section 111.060 (Interest on Delinquent Tax), Tax Code. 

(c)  Authorizes the executive director to modify a penalty or interest on a
fee and penalties authorized by this section if the executive director
provides a written explanation showing good cause for the modification. 

(d)  Requires penalties and interest collected by the commission under this
section or under other law, unless that law otherwise provides, to be
deposited to the credit of the fund or account to which the fee is required
to be deposited. 

Sec. 5.707.  TRANSFERABILITY OF APPROPRIATIONS AND FUNDS DERIVED FROM FEES.
Authorizes the commission, notwithstanding any law that provides specific
purposes for which a fund, account, or revenue source may be used and
expended by the commission and that restricts the use of revenues and
balances by the commission, to transfer a percentage of appropriations from
one appropriation item to another appropriation item consistent with the
General Appropriations Act for any biennium authorizing the commission to
transfer a percentage of appropriations from one appropriation item to
another appropriation item.  Prohibits the use of funds in dedicated
accounts under this section for purposes in addition to those provided by
statutes restricting their use from exceeding seven percent or $20 million,
whichever is less, of appropriations to the commission in the General
Appropriations Act for any biennium.  Requires a transfer of $500,000 or
more from one appropriation item to another appropriation item under this
section to be approved by the commission at an open meeting subject to
Chapter 551 (Open Meetings), Government Code. 

SECTION 2.04. Amends Section 26.0291, Water Code, as follows:

Sec. 26.0291. New heading: WATER QUALITY FEE. (a) Provides that an annual
water quality fee, rather than waste water treatment inspection fee, is
imposed on: 

(1) each wastewater discharge permit holder for each wastewater discharge
permit held; and  

(2)  each user of water in proportion to the user's water right, through
permit or contract, as reflected in the commission's records, provided that
the commission by rule shall ensure that no fee shall be assessed for the
portion of a municipal or industrial water right directly associated with a
facility or operation for which a fee is assessed under Subdivision (1) of
this subsection. 
  
(b) Provides that the fee is to supplement any other funds available to pay
expenses of the commission related to certain facilities. 

(c) Provides that the fee for each year is imposed on each permit or water
right in effect during any part of the year. Authorizes the commission to
establish reduced fees for inactive permits. 

(d) Provides that the irrigation water rights are not subject to a fee
under this section. 

(e) Prohibits the amount of the fee from exceeding $75,000, rather than
$25,000, for each permit or contract. Deletes text regarding waste
discharge and a permittee. Prohibits the maximum annual fee under this
section for a wastewater discharge or waste treatment facility that holds a
water right for the use of water by the facility from exceeding $75,000.
Authorizes the commission, in determining the amount of a fee  under this
section, to consider certain criteria.  Deletes text prohibiting the
commission from adopting a rule designed for certain purposes. 

SECTION 2.05. Amends Section 26.0135(h), Water Code, to delete text
regarding users of water and wastewater permit holders. Deletes text
regarding program funds. Deletes text regarding rules concerning the
apportionment and assessment of costs.  Makes conforming changes.  

SECTION 2.06. Repealer: Section 26.0135(j) (Effect on Other Laws), Water
Code. 

SECTION 2.07. Amends Section 341.041(a), Health and Safety Code, to require
the amount of the fees to be sufficient to cover, rather than prohibiting
them from exceeding, the reasonable costs of administering the programs and
services in this subchapter or the federal Safe Drinking Water Act (42
U.S.C. Section 300f et seq.).  Requires the commission to consider, among
other factors, equity among persons required to pay the fees as a factor in
determining the amount of the fees.  Authorizes the commission also to use
the fees to cover any other costs incurred to protect water resources in
this state, including assessment of water quality, reasonably related to
the activities of any of the persons required to pay a fee under the
statutes listed in Section 5.701(q), Water Code. Deletes text regarding
costs of public drinking water supply system. 

SECTION 2.08. Amends Section 366.058(a), Health and Safety Code,  to
authorize the commission to also use the fee to cover any other costs
incurred to protect water resources in this state, including assessment of
water quality, reasonably related to the activities of any of the persons
required to pay a fee under the statutes listed in Section 5.701(q), Water
Code. 

SECTION 2.09. Amends Section 366.059, Health and Safety Code, by amending
Subsection (b) and adding Subsection (d), as follows: 

(b) Authorizes the commission to assess a reasonable and appropriate
charge-back fee, not to exceed $500, to a local governmental entity for
which the commission issues permits for administrative costs relating to
the permitting function that are not covered by the permit fees collected.
Authorizes the commission also to use the fee to cover other costs incurred
to protect water resources in this state, including assessment of water
quality, reasonably related to the activities of any of the persons
required to pay a fee under the statutes listed in Section 5.701(g), Water
Code.  Requires the commission to base the amount of a charge-back fee
under this subsection on the actual cost of issuing a permit under this
section.  Authorizes the commission to assess a charge-back fee to a local
governmental entity under this subsection if the local governmental entity
is an authorized agent that meets certain criteria. 

(d) Prohibits the commission from assessing a charge-back fee to a local
governmental entity if the local governmental entity has repealed the
order, ordinance, or resolution that established the entity as an
authorized agent or has lost its designation as an authorized agent due to
material change in the commission's rules under this chapter. 

SECTION 2.10. Amends Section 13.187(a), Water Code, to modify a statutory
reference. 

ARTICLE 3. PERFORMANCE-BASED REGULATION

SECTION 3.01. Amends Chapter 5, Water Code, by adding Subchapter Q, as
follows: 

SUBCHAPTER Q. PERFORMANCE-BASED REGULATION

Sec. 5.751.  APPLICABILITY.  Provides that this subchapter applies to
programs under the jurisdiction of the commission under Chapters 26 and 27
of this code and Chapters 361, 382, and 401, Health and Safety Code.
Provides that it does not apply to occupational licensing programs under
the jurisdiction of the commission. 
 
Sec. 5.752. DEFINITIONS. Defines "applicable legal requirement, "innovative
program," "permit," "region," and "strategically directed regulatory
structure." 

Sec. 5.753.  STANDARD FOR EVALUATING COMPLIANCE HISTORY. (a)  Requires the
commission by rule to develop a uniform standard for evaluating compliance
history, consistent with other law and requirements necessary to maintain
federal program authorization.  

  (b) Sets forth the required components of compliance history.

(c) Requires the set of components also to include any information required
by other law or any requirement necessary to maintain federal program
authorization. 

(d) Authorizes the set of components to include substantiated notices of
violations. 

(e) Requires the commission by rule, except as required by other law or any
requirement necessary to maintain federal program authorization, to
establish a period for compliance history. 

Sec. 5.754.  CLASSIFICATION AND USE OF COMPLIANCE HISTORY.  (a) Requires
the commission by rule to establish a set of standards for the
classification of a person's compliance history. 

(b) Requires rules adopted under this section, at a minimum, to provide for
three classifications of compliance history in a manner adequate to
distinguish among poor performers, average performers, and high performers. 

(c) Requires the commission to perform certain duties in classifying a
person's compliance history. 

(d) Requires the commission by rule to establish methods of assessing the
compliance history of regulated entities for which it does not have
adequate compliance information. Authorizes the methods to include
requiring a compliance inspection to determine an entity's eligibility for
participation in a program that requires a high level of compliance. 

(e) Requires the commission by rule to provide for the use of compliance
history classifications in commission decisions regarding certain matters. 

(f) Requires the assessment methods to specify the circumstances in which
the commission may revoke the permit of a repeat violator and to establish
enhanced administrative penalties for repeat violators. 

(g) Requires rules adopted under Subsection (e) for the use of compliance
history to provide for additional oversight of, and review of applications
regarding, facilities owned or operated by a person whose compliance
performance is in the lowest classification developed under this section. 

(h) Requires the commission by rule, at a minimum, to prohibit a person
whose compliance history is classified in the poor performer classification
developed under this section from receiving an announced inspection and
participating in the flexible permit program administered by the commission
under Chapter 382, Health and Safety Code, and the regulatory flexibility
program administered by the commission under Section 5.758. 

(i) Requires the commission to consider the compliance history of a
regulated entity when determining whether to grant the regulated entity's
application for a permit or  permit amendment for any activity under the
commission's jurisdiction.  Requires the commission, notwithstanding any
provision of this code or the Health and Safety Code relating to the
granting of permits or permit amendments by the commission, after a
hearing, to deny a regulated entity's application for a permit or permit
amendment if the regulated entity's compliance history is unacceptable
under the method for evaluating compliance history developed by the
commission under Section 5.753 and this section. Defines "permit." 

Sec. 5.755.  STRATEGICALLY DIRECTED REGULATORY STRUCTURE.  (a) Requires the
commission by rule to develop a strategically directed regulatory structure
to provide incentives for enhanced environmental performance. 

(b) Requires the strategically directed regulatory structure to offer
incentives based on certain factors. 

(c) Requires an innovative program offered as part of the strategically
directed regulatory structure to be consistent with other law and any
requirement necessary to maintain federal program authorization. 

Sec. 5.756.  COLLECTION AND ANALYSIS OF COMPLIANCE PERFORMANCE INFORMATION.
(a) Requires the commission to collect certain data. 

(b) Requires the commission to collect certain data and make it available
to the public on the Internet. 

(c) Requires the commission annually to prepare a comparative analysis of
data evaluating the performance, over time, of the commission and of
entities regulated by the commission. 

(d) Requires the commission to include in the annual enforcement report
required by Section 5.123, as added by Chapters 304 and 1082, Acts of the
75th Legislature, Regular Session, 1997, the comparative performance
analysis required by Subsection (c), organized by region and regulated
medium. 

Sec. 5.757.  COORDINATION OF INNOVATIVE PROGRAMS.  (a)  Requires the
commission to designate a single point of contact within the agency to
coordinate all innovative programs. 

  (b)  Requires the designated coordinator to perform certain duties.

SECTION 3.02.  Transfers Section 5.123, Water Code, to new Chapter 5Q,
Water Code, redesignates it as Section 5.758, and amends it, as follows: 

Sec. 5.758.  (a)  Authorizes the commission by order to exempt an applicant
from a requirement of a statute or commission rule regarding pollution
control or abatement if the applicant proposes to control or abate
pollution by an alternative method or by applying an alternative standard
that is more, rather than at least as, protective of the environment and
the public health than the method or standard prescribed by the statute or
commission rule that would otherwise apply, and not inconsistent with
federal law. 

(b) Prohibits the commission from exempting an applicant under this section
unless the applicant can present to the commission documented evidence of
benefits to environmental quality that will result from the project the
applicant proposes. 

 Makes nonsubstantive changes.
 
SECTION 3.03. Amends Section 7.067(a), Water Code, to prohibit the
commission from approving a project that the respondent has already agreed
to perform under a preexisting agreement with a governmental agency. 

SECTION 3.04. Amends Section 361.0215, Health and Safety Code, as follows:

Sec. 361.0215. New heading: POLLUTION PREVENTION ADVISORY COMMITTEE. (a)
Provides that the pollution prevention, rather than waste reduction,
advisory committee is composed of certain members or groups. 

(c)  Requires the committee to advise the commission on the creation and
implementation of the strategically directed regulatory structure developed
under Section 5.755, Water Code. 

(d)  Requires the committee to report quarterly to the commission on its
activities, including suggestions or proposals for future activities and
other matters the committee considers important. 

SECTION 3.05. Amends Section 361.088, Health and Safety Code, by adding
Subsection (g), as follows: 

(g) Requires the commission to review a permit issued under this chapter
every five to seven years to assess the permit holder's compliance history. 

ARTICLE 4.  REGULATION OF AIR POLLUTION

SECTION 4.01.  Amends Section 382.019(a), Health and Safety Code, to add an
exception. 

SECTION 4.02. Amends Chapter 382B, Health and Safety Code, by adding
Sections 382.0215 and 382.0216, as follows: 

 Sec. 382.0215.  ASSESSMENT OF EMISSIONS DUE TO EMISSIONS EVENTS. (a)
Defines "emissions event." 

(b)  Requires the commission to require the owner or operator of a facility
that experiences emissions events to meet certain criteria. 

(c)  Requires the commission to centrally track emissions events and
collect certain information. 

(d)  Requires the commission to develop the capacity for electronic
reporting and to incorporate reportable emissions events into a permanent
centralized database for emissions events.  Requires the database to be
accessible to the public. 

(e)  Requires the commission annually to assess the information received
under this section, including actions taken by the commission in response
to the report required by Section 5.123, Water Code, as added by Chapters
304 and 1082, Acts of the 75th Legislature, Regular Session, 1997. 

Sec. 382.0216.  REGULATION OF EMISSIONS EVENTS. (a) Defines "emissions
event."  

(b) Requires the commission to establish criteria for determining when
emissions events are excessive.  Requires the criteria to include certain
considerations. 
 
(c) Authorizes the executive director to require a facility to take action
to reduce  emissions from excessive emissions events.  Requires a facility
required to take action under this subsection, consistent with commission
rules, to either file a corrective action plan to reduce emissions from
emissions events or apply for a permit from the commission. 

(d)  Requires a  corrective action plan filed under Subsection (c) to
contain certain information.  Requires a corrective  action plan to be
approved by the commission. Requires an approved corrective action plan to
be made available to the public except to the extent information in the
plan is confidential information protected under Chapter 552, Government
Code.  Requires the commission to establish reasonable schedules for the
implementation of corrective action plans and procedures for revision of a
corrective action plan if the commission finds the plan, after
implementation begins, to be inadequate to meet the goal of preventing or
minimizing emissions and emissions events. 

(e) Authorizes the commission by rule to establish an affirmative defense
to a commission enforcement action if the emissions event meets criteria
defined by commission rule.  Requires the commission, in establishing rules
under this subsection, at a minimum, to require consideration of certain
factors. 

(f) Provides that the burden of proof in any claim of a defense to
commission enforcement action for an emissions event is on the person
claiming the defense. 

(g)  Prohibits a person from claiming a defense to a commission enforcement
action under Subsection (e) if the person failed to take corrective action
under a corrective action plan approved by the commission within the time
prescribed by the commission and an emissions event recurs because of that
failure. 

SECTION 4.03.  (a)  Amends Section 382.037, Health and Safety Code, by
amending Subsection (g) and adding Subsections (h) and (i), as follows: 

(g) Prohibits the commission from establishing, before January 1, 2004,
vehicle fuel content standards to provide for vehicle fuel content for
clean motor vehicle fuels for any area of the state that are more stringent
or restrictive than those standards promulgated by the United States
Environmental Protection Agency applicable to that area except for a fuel
described in Subsection (h) unless the fuel is specifically authorized by
the legislature.  Deletes text regarding federal air quality standards. 

(h) Prohibits the commission from requiring the distribution of Texas
low-emission diesel as described in revisions to the State Implementation
Plan for the control of ozone air pollution before February 1, 2005. 

(i) Authorizes the commission to consider, as an alternative method of
compliance with Subsection (h), fuels to achieve equivalent emissions
reductions. 

 (b) Amends Section 382.039(a), Health and Safety Code, to add an exception.

(c) Provides that the changes in law made by this section do not apply to
fuel standards adopted by the commission before September 1, 2001. 

SECTION 4.04.  Amends Sections 382.051(a) and (b), Health and Safety Code,
as follows: 

 (a) Authorizes the commission to issue a permit under certain conditions.

(b) Authorizes the commission, to assist in fulfilling its authorization
provided by  Subsection (a), to issue certain permits. 

SECTION 4.05.  Amends Section 382.0518(h), Health and Safety Code, as
follows: 

(h) Provides that Section 382.056 does not apply to an applicant for a
permit amendment under this section if the total emissions increase from
all facilities authorized under the amended permit will meet the minimum
criteria defined by commission rule and will not change in character.
Provides that for a facility affected by Section 382.020, Section 382.056
does not apply to an applicant for a permit amendment under this section if
the total emissions increase from all facilities authorized under the
permit amendment is not significant and will not change in character.
Provides that in this subsection, a finding that a total emissions increase
is not significant is required to be made as provided under section
382.05196 for a finding under that section.  Deletes text specifying that a
reference to a permit in this section includes an amendment to a permit. 

SECTION 4.06. Amends Chapter 382C, Health and Safety Code, by adding
Sections 382.05181382.05186, as follows: 

Sec. 382.05181.  PERMIT REQUIRED. (a)  Prohibits any facility described by
Section 382.0518(g) that does not have an application pending for a permit
or other authorization under this chapter, other than a permit required
under Section 382.054, and that has not submitted a notice of shutdown
under Section 382.05182, from emitting air contaminants on or after a
certain date. 

(b)  Prohibits any facility described by Section 382.0518(g) that does not
have a permit or other authorization under this chapter, other than a
permit required under Section 382.054, from emitting air contaminants on or
after a certain date. 
  
(c) Provides that facilities eligible for a permit under Section 382.05184
are not subject to this section. 

 Sec. 382.05182.  NOTICE OF SHUTDOWN. (a)  Requires any notice submitted in
compliance with this section to be filed with the commission by the dates
in Section  382.05181(a). 

  (b)  Requires a notice under this section to include certain information.

Sec. 382.05183.  EXISTING FACILITY PERMIT. (a)  Authorizes the owner or
operator of a facility described by Section 382.0518(g) to apply for a
permit to operate the facility under this section. 

(b)  Requires the commission to grant a permit under this section if, from
the information available to the commission, including information
presented at any public hearing or through written comment, the commission
finds that the application demonstrates compliance with certain provisions. 

(c)  Authorizes the commission to issue an existing facility flexible
permit for some or all of the facilities at a site described by Section
382.0518(g) and facilities permitted under Section 382.0519 in order to
implement the requirements of this section.  Requires permits issued under
this subsection to follow the same permit issuance, modification, and
renewal procedures as existing facility permits. 
 
(d)   Prohibits the commission, if the commission finds that the emissions
from the facility will contravene the standards under Subsection (b) or the
intent of this chapter, including protection of the public's health and
physical property, from granting the permit under this section. 
 
  (e)  Requires a person planning the modification of a facility previously
permitted   under this section to comply with Section 382.0518 before
modifying. 

  (f)  Authorizes the commission to adopt rules as necessary to implement
and    administer this section. 

  (g)  Provides that a permit application under this section is subject to
notice and   hearing requirements as provided by Section 382.05191. 
 
(h)  Requires an applicant, if the applicant omits any relevant facts or
submits incorrect information in an application, to submit the relevant
facts or correct the information no later than 60 days after discovering
the error.  Authorizes the commission, if while processing the application,
it determines that additional information is necessary to evaluate or to
take final action on the application, to request the information and set a
reasonable deadline for a response.  Provides that failure to comply with
the deadline for the response will result in the application being returned
to the applicant. 

Sec. 382.05184.  SMALL BUSINESS STATIONARY SOURCE PERMIT. (a)  Authorizes
facilities described by Section 382.0518(g) that are located at a small
business stationary source, as defined by Section 382.0365(h)(2), and are
not required by commission rule to report to the commission under Section
382.014 to apply for a permit under this section before September 1, 2005. 

(b)  Prohibits facilities described by Section 382.0518(g) that are located
at a small business stationary source that does not have an application
pending for a permit or other authorization under this chapter, other than
a permit required under Section 382.054, and that has not submitted a
notice of shutdown under Section 382.05182, from emitting air contaminants
on or after September 1, 2007. 

(c)  Requires the commission to grant a permit under this section if, from
the information available to the commission, including information
presented at any public hearing or through written comment, the commission
finds that there is no indication that the emissions from the facility will
contravene the intent of this chapter, including protection of the public's
health and physical property. 

(d)  Prohibits the commission, if it finds that the emissions from the
facility will not comply with Subsection (c), from granting the permit
under this section. 

  (e)  Requires a person planning the modification of a facility previously
permitted   under this section must comply with Section 382.0518 before
modifying. 

  (f)  Authorizes the commission to adopt rules as necessary to implement
and    administer this section. 

(g)  Requires an applicant, if the applicant omits any relevant facts or
submits incorrect information in an application, to submit the relevant
facts or correct the information no later than 60 days after discovering
the error.  Authorizes the commission, if while processing the application,
the commission determines that additional information is necessary to
evaluate or to take final action on the application, to request the
information and set a reasonable deadline for a response.  Provides that
failure to comply with the deadline for the response will result in the
application being returned to the applicant. 

Sec.  382.05185.  ELECTRIC GENERATING FACILITY PERMIT. (a)  Provides that
an electric generating facility is considered permitted under this section
with respect to all air  contaminants if the facility meets certain
criteria. 

(b) Provides that electric generating facilities, including coal-fired
electric generating facilities, that are required to obtain a permit under
Section 39.264 (Emissions Reductions of "Grandfathered Facilities"),
Utilities Code, are not described by Subsection (a) will be considered in a
certain manner. 

(c)  Requires the commission to issue a permit for a facility subject to
Subsection (b) for criteria pollutants not covered by Subsection (b)(1) if
the commission finds that the emissions from the facility will not
contravene the intent of this chapter, including protection of the public's
health and physical property.  Requires the commission, upon request by the
applicant, to include a permit application under this subsection with the
applicant's pending permit application under Section 39.264, Utilities
Code. 

(d)  Authorizes the owner or operator of an electric generating facility
with a permit or an application pending under Section 39.264, Utilities
Code, to apply for a permit under this section before September 1, 2002,
for a facility located at the same site if the facility not permitted or
without a pending application under Section 39.264, Utilities Code, meets
certain criteria. 

(e)  Requires nitrogen oxide emissions from facilities permitted under
Subsection (d) to be included in the emission allowance trading program
established under Section 39.264, Utilities Code.  Prohibits the commission
from issuing new allowances based on a permit issued under this section. 

(f)  Requires a person planning the modification of a facility previously
permitted under this section to comply with Section 382.0518 before
modifying. 
 
(g)  Authorizes the commission to adopt rules as necessary to implement and
administer this section. 

(h)  Provides that a permit application under this section is subject to
notice and hearing requirements as provided by Section 382.05191. 

(i) Defines "natural-gas-fired electric generating facility."  Authorizes a
natural-gas-fired electric generating facility to burn fuel oil, provided
that the emissions that occur from the facility when it is burning fuel oil
will not exceed any applicable emissions limit in state or federal law. 

Sec. 382.05186.  AUTHORIZATION FOR PIPELINE FACILITIES. (a)  Requires the
commission by rule to establish the procedures for applications for
existing processing, treating, compression, or pumping facilities described
by Section 382.0518(g) connected to or part of a gathering or transmission
pipeline. 

(b)  Authorizes the commission, based on a prioritization by the commission
as necessary to meet local, regional, and statewide air quality needs
related directly or indirectly to federal air quality standards, to require
up to a 30 percent reduction of the hourly emission rate, in terms of grams
per brake horsepower-hour, of nitrogen oxide and also to require up to a 30
percent reduction of the hourly emission rate, in terms of grams per brake
horsepower-hour, of volatile organic compounds from reciprocating internal
combustion engines subject to this section.  Authorizes the commission to
consider requiring up to a 30 percent reduction of the hourly emission rate
of nitrogen oxide and also to consider requiring up to a 20 percent
reduction of the hourly emission rate of volatile organic compounds from
facilities other than reciprocating internal combustion engines that are
connected to or part of a gathering or transmission pipeline.  Authorizes
the commission by rule to designate counties or regions of the state where
greater reductions in the hourly emission rate will be required than in
other areas, but no more than 30 percent emissions reductions to be
required in any area. 

  (c) Requires the commission to perform certain procedures.

(d)  Requires facilities authorized by this section to be considered
permitted under this chapter. 
 
(e)  Requires the commission to issue a permit under this section if the
requirements of this section are met. 

(f)  Requires a person planning the modification of a facility previously
permitted under this section to comply with Section 382.0518 before
modifying. 

(g)  Authorizes the commission to adopt rules as necessary to implement and
administer this section. 

(h)  Provides that a permit application under this section is subject to
notice and hearing requirements as provided by Section 382.05191. 

(i)  Requires an applicant, if the applicant omits any relevant facts or
submits incorrect information in an application, to submit the relevant
facts or correct the information no later than 60 days after discovering
the error.  Authorizes the commission, if while processing the application
it determines that additional information is necessary to evaluate or to
take final action on the application, to request the information and set a
reasonable deadline for a response.  Provides that failure to comply with
the deadline for the response will result in the application being returned
to the applicant. 

SECTION 4.07. Amends Section 382.05191, Health and Safety Code, as follows:

Sec. 382.05191. New heading: EMISSIONS REDUCTION PERMITS: NOTICE AND
HEARING. (a) Requires an applicant for a permit or other authorization
under Section 382.05183, Section 382.05185(c) or (d), Section 382.05186, or
Section 382.0519 to publish notice of intent to obtain the permit in
accordance with Section 386.056. 

  (b) Amends a statutory reference.

  (c) Makes conforming changes.

(d) Authorizes a person affected by a decision of the commission to issue
or deny an, rather than voluntary, emissions reduction permit to move for
rehearing and entitles the person to judicial review under Section 382.032. 

SECTION 4.08. Amends Section 382.05192, Health and Safety Code, as follows:

Sec. 382.05192. New heading: REVIEW AND RENEWAL OF EMISSIONS REDUCTION
PERMITS. Makes conforming changes. 

SECTION 4.09.  (a) Amends Section 382.056, Health and Safety Code, by
amending Subsections (a) and (g) and adding Subsections (q) and (r), as
follows: 

  (a) Adds an exception.  Makes conforming changes.

  (g) Makes a conforming change.
 
(q) Requires the Texas Department of Health (department) to establish rules
to ensure that a permit applicant complies with the notice requirement
under Subsection (a). 

  (r) Sets forth situations to which this section does not apply.

(b) Provides that the changes in law relating to permit amendments made by
Section 382.056, Health and Safety Code, as amended by this section, apply
to an application for an amendment to a permit issued by the commission for
a facility that may emit air contaminants that is pending before the
commission on September 1, 2001, or filed with the commission on or after
September 1, 2001. 

SECTION 4.10.  Amends Section 382.0621(d), Health and Safety Code, to
provide that the fees under this subsection do not apply to a facility with
a permit or a permit application pending under Section 382.05185(c).
Provides that the fees under this subsection do not apply to a facility for
which a letter expressing intent to authorize that facility is filed on or
before September 1, 2002, or a permit application is timely filed.
Requires, in the event that a letter of intent is not filed, or if a letter
of intent is filed but a permit application is not subsequently timely
filed, the fees due and owing for such facility to be deemed to have
accrued since September 1, 2001, in the amounts set forth in this
subsection. Requires the commission, on and after September 1, 2001, for a
facility that is not subject to the requirement to obtain a permit under
Section 382.0518(g) that does not have a permit application pending, to
perform certain procedures.  

SECTION 4.11.  (a)  Amends Chapter 5L, Water Code, by adding Section
5.5145, as follows: 

 Sec. 5.5145.  EMERGENCY ORDER CONCERNING OPERATION OF ROCK CRUSHER OR
CONCRETE PLANT WITHOUT PERMIT.  Requires the commission to issue an
emergency order under this subchapter, suspending operations of a rock
crusher or a concrete plant that performs wet batching, dry batching, or
central mixing and is required to obtain a permit under Section 382.0518,
Health and Safety Code, and is operating without the necessary permit. 

(b) Amends Section 7.052, Water Code, by adding Subsection (b), to
establish the amount of the penalty for operating a rock crusher or a
concrete plant that performs wet batching, dry batching, or central mixing,
that is required to obtain a permit under Section 38.0518, Health and
Safety Code, and that is operating without the required permit, as $10,000.
Provides that each day that a continuing violation occurs is a separate
violation.   
  (d) Adds an exception.

(c)  Makes application of the changes in law made to Sections 5.5145 and
7.052, Water Code, by this Act, prospective. 

ARTICLE 5. ACCREDITATION OF ENVIRONMENTAL TESTING LABORATORIES

SECTION 5.01. Transfers Chapter 421, Health and Safety Code, as added by
Chapter 447, Acts of the 76th Legislature, Regular Session, 1999, to
Chapter 5, Water Code, and redesignates it as Subchapter R, to read as
follows: 

SUBCHAPTER R.  ACCREDITATION OF ENVIRONMENTAL TESTING LABORATORIES

 Sec. 5.801. New heading: DEFINITION. Defines "environmental testing
laboratory." 

Sec. 5.802. New heading: ADMINISTRATION BY COMMISSION. Requires the
commission, rather than the department, to adopt rules for the
administration of the voluntary environmental testing laboratory
accreditation program established by this chapter. Requires the program to
be consistent with national accreditation standards approved by the
National  Environmental Laboratory Accreditation Program. 

Sec. 5.803. (a) Requires an environmental testing laboratory, in order to
be accredited under the accreditation program adopted under this
subchapter, rather than chapter, to submit an application to the commission
on a form prescribed by the commission, accompanied by the accreditation
fee. Requires the application to contain the information that the
commission  requires.  Makes conforming changes. 

(b) Requires the commission by rule to establish a schedule of reasonable
accreditation fees designed to recover the costs of the accreditation
program, including certain costs. 

Sec. 5.804. (a) Makes conforming changes.

(b) Authorizes the commission by rule to provide for the accreditation of
an environmental testing laboratory that is accredited or license in
another state by an authority that is approved by the National
Environmental Laboratory Accreditation Program. Makes conforming changes. 

 Sec. 5.805. Makes conforming changes.

 Sec. 5.806. Makes conforming changes.

Sec. 5.807.  ENVIRONMENTAL TESTING LABORATORY ACCREDITATION ACCOUNT. (a)
Requires all fees collected under this subchapter to be deposited to the
credit of the environmental testing laboratory accreditation account and
authorizes the fees to be appropriated to the commission only for paying
the costs of the accreditation program. 

ARTICLE 6. CERTIFICATION OF WATER TREATMENT SPECIALISTS

SECTION 6.01. Amends Section 3A, The Plumbing License Law (Article
6243-101, V.T.C.S.), as follows: 

Sec. 3A.  (a) Requires the commission, rather than the commissioner of
health or his designee, to certify persons as being qualified for certain
work.  Requires the commission, rather than the Board of Health, to set
certain standards. 

  (b) Makes conforming changes.

  (c) Makes a conforming change.
 
ARTICLE 7. REGISTRATION OF IRRIGATORS AND ON-SITE SEWAGE DISPOSAL SYSTEM
INSTALLERS. 

SECTION 7.01. Amends Section 34.008(a), Water Code, as follows:

(a) Authorizes the commission to waive any prerequisite, rather than
certify, for obtaining registration for an applicant who is registered as a
licensed irrigator or licensed installer by another jurisdiction with which
this state has a reciprocity agreement. Authorizes the commission to make
an agreement, subject to the approval of the governor, with another state
to allow to allow for registration by reciprocity. Deletes text regarding
requirements for registration. 

SECTION 7.02. Amends Section 34.009(f), Water Code, to require the
commission, for the year in which the expiration date is changed, to
prorate registration, rather than renewal, fees on a monthly basis so that
each registrant pays only that portion of the registration fee that is
allocable to the number  of months during which the registration is valid.
Provides that on renewal of the registration on the new expiration date,
the total registration renewal fee is due. Deletes text regarding fees
payable on August 31.  

SECTION 7.03. Amends section 366.076, Health and Safety Code, as follows:

 Sec. 366.076.  REGISTRATION RENEWAL. Authorizes the commission by rule to
adopt a system under which registrations expire on various dates during the
year.  Requires the commission, for each year in which the registration
expiration date is changed, to prorate registration fees on a monthly basis
so that each registrant pays only that portion of the registration fee that
is allocable to the number of months during which the registration is
valid. Provides that on renewal of the registration on the new expiration
date, the total registration renewal fee is payable. Deletes text regarding
renewal of registrations. 

ARTICLE 8. REGULATION OF SOLID WASTE

SECTION 8.01.  Amends Chapter 361C, Health and Safety Code, by adding
Section 361.1125, as follows: 

Sec. 361.1125.  IMMEDIATE REMEDIATION OR REMOVAL OF HAZARDOUS SUBSTANCE AT
SCRAP TIRE SITE.  (a) Defines "scrap tire" and "scrap tire site." 

(b) Authorizes the commission, if the executive director finds after
investigation that there exists a release or threat of release of a
hazardous substance at a scrap tire site and immediate action is
appropriate to protect human health and the environment, with money
available from money appropriated to the commission, to undertake immediate
remedial or removal action at the scrap tire site to achieve the necessary
protection. 

(c) Provides that the reasonable expenses of immediate remedial or removal
action by the commission under this section are recoverable from the
persons described in Section 361.271, and authorizes the state to bring an
action to recover the commission's reasonable expenses. 

SECTION 8.02. Amends Chapter 361C, Health and Safety Code, by adding
Section 361.119, as follows: 

Sec. 361.119.  REGULATION OF CERTAIN FACILITIES AS SOLID WASTE FACILITIES.
(a)  Requires the commission by rule to ensure that a solid waste
processing facility is regulated as a solid waste facility under this
chapter and is not allowed to operate unregulated as a recycling facility. 
 
(b)  Provides that a facility and the operations conducted and materials
handled at the facility are not subject to regulation under rules adopted
under this section if the owner or operator of the facility demonstrates
that certain conditions are met. 

SECTION 8.03.  Amends Chapter 361C, Health and Safety Code, by adding
Section 361.120, as follows: 

Sec. 361.120.  NOTICE OF HEARING AND REQUIREMENTS FOR REOPENING OF CLOSED
OR INACTIVE LANDFILLS.  (a) Provides that this section applies to any
municipal solid waste landfill facility permitted by the commission or any
of its predecessor or successor agencies that have either stopped accepting
waste, or only accepted waste under an emergency authorization, for a
period of five years or longer.  Provides that this section does not apply
to any solid waste landfill facility that has received a permit but never
received waste. 

 (b) Requires the commission or its successor agencies to allow any
municipal solid waste landfill facility covered by this section to be
reopened and to accept waste again only if the permittee demonstrates
compliance with all current state, federal, and local requirements,
including but not limited to the requirements of Subtitle D of the federal
Resource Conservation and Recovery Act and implementing Texas state
regulations. 

(c) Requires the reopening of any such facility, except as provided in
Subsection (d), to be considered a major amendment as such is defined by
commission rules and to subject the permittee to all of the procedural and
substantive obligations imposed by the rules applicable to major
amendments. 

(d) Provides that this section does not apply to any municipal solid waste
landfill facility that has received an approved modification to its permit
as of the effective date of this section. 

SECTION 8.04.  Amends Chapter 361F, Health and Safety Code, by adding
Section 361.1875, as follows: 

Sec. 361.1875.  EXCLUSION OF CERTAIN POTENTIALLY RESPONSIBLE PARTIES.
Prohibits the commission from naming a person as a responsible party for an
enforcement action or requiring a person to reimburse remediation costs for
a site if the commission has conducted an investigation of a site owned or
operated by a person and made certain determinations as a result of the
investigation. 

SECTION 8.05.  (a) Amends Chapter 361C, Health and Safety Code, by adding
Section 361.121, as follows: 

Sec. 361.121.  LAND APPLICATION OF CERTAIN SLUDGE; PERMIT REQUIRED.  (a)
Defines "Class B sludge" and "land application unit." 

(b) Prohibits a person from applying Class B sludge on a land application
unit without a permit issued by the commission under this section. 

(c) Requires the commission to provide for notice and the opportunity for a
public hearing on an application or renewal for a permit under this section
in accordance with Chapter 5M, Water Code. 

(d) Requires the commission to prescribe the conditions under which it
issued each permit in each permit, including certain information. 

(e) Provides that a permit does not become a vested right in the permit
holder. 

(f) Authorizes a permit to be issued under this section for a term set by
the board not to exceed six years from the date of issuance. 

(g) Requires the commission to charge a fee for the issuance of a permit
under this section in an amount not less than $1,000 and not more than
$5,000. Requires the commission, in determining the fee under this
subsection, to consider the amount of sludge to be applied. 

(h) Requires the commission by rule to require an applicant for a permit
under this section to submit with the application, at a minimum, certain
information. 

(i) Authorizes the commission to expand the definition of Class B sludge
only by expanding the definition to include sludge that meets more
stringent pathogen  reduction requirements. 

(b)  Provides that Subsection (a) of this section takes effect on September
1, 2001, and applies only to Class B sludge, as defined by that section,
applied to or disposed of on a land application unit, as defined by that
section, on or after that date.  Provides that Class B sludge applied or
disposed of before the effective date of this Act is covered by the law in
effect on the date the sludge was applied, and the former law is continued
in effect for that purpose. 

SECTION 8.06.  Amends Chapter 361N, Health and Safety Code, by adding
Section 361.431, as follows: 

Sec. 361.431.  PRIORITIZATION OF NEW TECHNOLOGY.  (a) Requires a political
subdivision or solid waste producer to give preference in contracting for
the disposal of solid waste to license or permit holders who uses processes
and technologies that reduce the volume of sludge and hazardous waste that
is being disposed of through beneficial use land application, landfill
disposal, and other methods. 

(b) Provides that technology that reduces the volume of solid waste,
destroys the solid waste, or renders the solid waste inert is preferred to
methods referred to under Subsection (a), in order to minimize the
possibility of hazardous materials entering the state's air, waterways, and
water sources. 

SECTION 8.07.  Amends Chapter 801H, Occupations Code, by adding Section
801.361, as follows: 

Sec. 801.361.  DISPOSAL OF ANIMAL REMAINS.  (a) Sets forth conditions under
which a veterinarian is authorized to dispose of the remains of an animal
by burial or burning. 

(b) Prohibits the commission, notwithstanding any other law, from adopting
a rule that prohibits conduct authorized by this section. 

(c) Provides that this section applies only in a county with a population
of less than 10,000. 

ARTICLE 9. EDWARDS AQUIFER

SECTION 9.01. Defines "Edwards Aquifer."

SECTION 9.02. Amends Chapter 26B, Water Code, by adding Section 26.050, as
follows: 

Sec. 26.050. Requires the commission to make available to the public
digital copies of the Recharge, Transition, and Contributing Zone boundary
lines, when they become available. 

SECTION 9.03. Amends Chapter 26B, Water Code, by adding Section 26.051, as
follows: 

Sec. 26.051. Requires the commission to report annually on the Edwards
Aquifer Program expenses and allocation of fees. 

SECTION 9.04. Amends Chapter 26D, Water Code, by adding Section 26.137, as
follows: 

Sec. 26.137. Requires the commission to provide for a 30-day comment period
in the review process for Edwards Aquifer Protection Plans in the
Contributing Zone of the Edwards Aquifer as provided in 30 T.A.C. Section
213.4(a)(2). 

ARTICLE 10. REGULATION OF CERTAIN ANIMAL FEEDING OPERATIONS

 SECTION 10.01. Amends Section 26.001, Water Code, to redefine
"agricultural waste" and "pollutant." 

SECTION 10.02. Amends Chapter 26, Water Code, by adding Subchapter L, as
follows: 

SUBCHAPTER L. PROTECTION OF CERTAIN WATERSHEDS

Sec. 26.501. DEFINITIONS. Defines "concentrated animal feeding operation,"
"new concentrated animal feeding operation," and "historical waste
application field." 
 
Sec. 26.502.  APPLICABILITY. Provides that this subchapter applies only in
a major sole source impairment zone.  Defines "major sole source impairment
zone." 

Sec. 26.503.  REGULATION OF CERTAIN CONCENTRATED ANIMAL FEEDING OPERATION
WASTES. (a)  Authorizes the commission to authorize the construction or
operation of a new concentrated animal feeding operation, or an increase in
the number of animals confined under an existing operation, only by a new
or amended individual permit. 

(b)  Requires the individual permit issued or amended under Subsection (a)
to meet certain criteria. 

(c)  Authorizes the commission to approve a detailed nutrient utilization
plan approved by the commission that is developed by a professional
agronomist or soil scientist certified by the American Society of Agronomy
only if the commission finds that another person listed by Subsection
(b)(2)(E)(ii) cannot develop a plan in a timely manner. 

(d)  Prohibits the commission from issuing a general permit to authorize
the discharge of agricultural waste into or adjacent to waters in this
state from an animal feeding operation if such waters are within a major
sole source impairment zone. 

(e)  Authorizes the commission and employees or agents of the commission to
enter public or private property at any reasonable time for activities
related to the purposes of this subchapter.  Authorizes the commission to
enforce this authority as provided by Section 7.032, 7.051, 7.052, or
7.105. 

(f)  Provides that this section does not limit the commission's authority
to include in an individual or general permit under this chapter provisions
necessary to protect a water resource in this state. 

Sec. 26.504.  WASTE APPLICATION FIELD SOIL SAMPLING AND TESTING. (a)
Requires the operator of a concentrated animal feeding operation to
contract with a  person described by Section 26.503(b)(2)(E)(ii) selected
by the executive director to collect one or more representative composite
soil samples from each waste application field.  Requires the operator to
have sampling performed under this subsection not less often than once
every 12 months. 

(b)  Requires each sample collected under this section to be tested for
phosphorus and any other nutrient designated by the executive director.
Requires the test results to be made available to the executive director
and the operator of the concentrated animal feeding operation.  Provides
that the test results are public records of the commission. 

(c)  Requires the operator, if the samples tested under Subsection (b) show
a phosphorus level in the soil of more than 500 parts per million, to file
with the commission a new or amended nutrient utilization plan with a
phosphorus reduction  component that is certified as acceptable by a person
listed by Section 26.503(b)(2)(E)(ii). 

(d)  Requires the operator, if the samples tested under Subsection (b) show
a phosphorus level in the soil of more than 200 parts per million but not
more than 500 parts per million, to perform certain procedures. 

(e)  Provides that the owner or operator of a waste application field
required by this section to have a nutrient utilization plan with a
phosphorus reduction component for which the results of tests performed on
composite soil samples collected 12 months or more after the plan is filed
do not show a reduction in phosphorus is subject to enforcement for a
violation of this subchapter at the discretion of the executive director.
Requires the executive director, in determining whether to take an
enforcement action under this subsection, to consider any explanation
presented by the owner or operator regarding the situation. 

(f)  Requires the commission to adopt rules to implement this section.
Requires the rules to provide for the scheduling and manner of the required
soil testing and the form, content, and deadlines for plans required under
this section. 


ARTICLE 11. CONTAINMENT SYSTEMS REQUIRED FOR CERTAIN
UNDERGROUND STORAGE TANKS

SECTION 11.01. Amends Chapter 26I, Water Code, by adding Section 26.3476,
as follows: 

Sec. 26.3476.  SECONDARY CONTAINMENT REQUIRED FOR TANKS LOCATED OVER
CERTAIN AQUIFERS. (a)  Defines "secondary containment." 

 (b)  Requires an underground storage tank system, at a minimum, to
incorporate a method for secondary containment if the system is located in
certain areas. 

(c)  Provides that Section 26.3475(e) applies to an underground storage
tank system that is subject to this section as if a violation of this
section were a violation of Section 26.3475. 

ARTICLE 12. REGULATION AND REMEDIATION OF UNDERGROUND AND ABOVEGROUND
STORAGE TANKS 

SECTION 12.01. Amends Section 26.342, Water Code, to define "owner."

SECTION 12.02. Amends Sections 26.346(a) and (c), Water Code,  as follows:

(a) Requires the commission to require that an owner or operator of an
underground storage tank used for storing motor fuels (as defined in
commission rule) complete an annual underground storage tank compliance
certification form. 

(c) Requires the commission to issue to each person who owns or operates a
petroleum storage tank that is registered under this section a registration
and compliance confirmation certificate that includes a brief description
of certain responsibilities. 

SECTION 12.03. Amends Section 26.351, Water Code, by adding Subsections
(f), (g), and (h), as follows: 

 (f)  Requires the person performing corrective action under this section,
if the release  was reported to the commission on or before December 22,
1998, to meet certain deadlines. 

(g)  Provides that for persons regulated under Subsection (f), their
failure to comply with any deadline listed in Subsection (f) is a violation
of this section, and the executive director is authorized to enforce such a
violation under Chapter 7 of this code. Requires a missed deadline that is
the fault of the person, his agent, or contractor to also eliminate
reimbursement eligibility as described by Section 26.3571(b).  Provides
that if it can be established to the executive director's satisfaction that
the deadline was not missed at the fault of the person, his agent, or
contractor, then reimbursement eligibility is not affected under this
subsection. 

(h)  Provides that a person's liability to perform corrective action under
this chapter is unrelated to any possible reimbursements the person to be
eligible for under Section 26.3571. 

SECTION 12.04. Amends Section 26.3512(b), Water Code, to prohibit funds
from the petroleum storage tank remediation account from being used to pay,
and provides that the owner or operator of a petroleum storage tank ordered
by the commission to take corrective action is responsible for payment of
certain expenses. 

SECTION 12.05. Amends Section 26.355(d), Water Code, to provide that this
limitation is not applicable to cost recovery actions initiated by the
executive director at sites where the executive director has determined
that the owner or operator is in violation of Section 26.351(f). 

SECTION 12.06. Amends Section 26.3571, Water Code, by amending Subsection
(b) and adding Subsections (g) and (h), as follows: 

(b) Requires a person, in order to be an eligible owner or operator for
purposes of this subchapter, to not have missed any of the deadlines
described in Section 26.351(f) and to meet certain conditions. 

(g)  Provides that an otherwise eligible owner or operator who misses a
deadline referenced in Subsection (b) is considered ineligible for
reimbursement under this subchapter. 

(h)  Provides that nothing in this section reduces the liability to perform
corrective action created under Section 26.351 and other parts of this
subchapter. 

SECTION 12.07. Amends Section 26.3572(b), Water Code, to require the
commission to perform certain procedures. 

SECTION 12.08. Amends Section 26.3573, Water Code, by amending Subsection
(d) and adding Subsections (r) and (s), as follows: 

(d) Authorizes the commission to use the money in the petroleum storage
tank remediation account to pay certain expenses. 

(r)  Prohibits the petroleum storage tank remediation account from being
used to  reimburse any person for corrective action performed after
September 1, 2005. 

(s)  Prohibits the petroleum storage tank remediation account from being
used to reimburse any person for corrective action contained in a
reimbursement claim filed with the commission after March 1, 2006. 

SECTION 12.09. Amends Sections 26.3574(b), (x), (y), (z), and (aa), Water
Code, as follows: 
 
(b) Requires each operator of a bulk facility on withdrawal from bulk of a
petroleum product to collect from the person who orders the withdrawal a
fee in a certain amount. 

(x) Requires the commission to report to the Legislative Budget Board at
the end of each fiscal quarter on the financial status of the petroleum
storage tank remediation account.  Deletes text regarding deposits made to
the general revenue fund. 

(y) Deletes subsection regarding unobligated balance in the petroleum
storage tank remediation account. 

  (z) Deletes subsection regarding unobligated balance.

  (aa) Redesignates text to Subsection (x) and deletes subsection.

SECTION 12.10. Amends Sections 26.359 and 26.361, Water Code, as follows:

 Sec. 26.359. Defines "local government."

(b) Provides that a regulation or ordinance adopted by a local government
that imposes standards for certain criteria of underground storage tanks is
not valid. Deletes text regarding unified statewide program. Deletes text
regarding a regulation or ordinance. Makes a nonsubstantive change. 

(c) Provides that this section does not apply to a regulation or ordinance
in effect as of January 1, 2001. 

Sec. 26.361. Provides that notwithstanding any other provision of this
subchapter, the reimbursement program established under this subchapter
expires September 1, 2006, rather than 2003. Prohibits the commission, on
or after September 1, 2006, rather than 2003, from using money from the
petroleum storage tank remediation account to reimburse an eligible owner
or operator for any expenses of corrective action or to pay the claim of a
person who has contracted with an eligible owner or operator to perform
corrective action. Deletes text regarding the commission collecting a fee. 

ARTICLE 13. WATER RIGHTS

SECTION 13.01.  Amends Section 11.142, Water Code, to provide that a person
who temporarily stores more than 200 acre-feet of water in a dam or
reservoir described by this subsection is not required to obtain a permit
for the dam or reservoir if the person can demonstrate that the person has
not stored in the dam or reservoir more than 200 acre-feet of water on
average in any 12-month period.  Authorizes a person, without obtaining a
permit, to construct on the person's property in an unincorporated area a
dam or reservoir with normal storage of not more than 200 acre-feet of
water for fish and wildlife purposes.  Modifies a statutory reference. 

SECTION 13.02.  Amends Section 11.173(b), Water Code, to modify the
circumstances under which a permit, certified filing, or certificate of
adjudication or a portion of a permit, certified filing, or certification
of adjudication is exempt from cancellation under this section. 

ARTICLE 14.  ENVIRONMENTAL HEALTH

SECTION 14.01.  Amends Title 5, Health and Safety Code, by adding Subtitle
G, as follows: 

SUBTITLE G.  ENVIRONMENTAL HEALTH

CHAPTER 427.  TEXAS ENVIRONMENTAL HEALTH INSTITUTE
 
Sec. 427.001.  Defines "board," "commission," "department," "federal
superfund site," "immediately surrounding area," and "institute." 

Sec. 427.002.  TEXAS ENVIRONMENTAL HEALTH INSTITUTE.  Requires the
commission to enter into an agreement with the department to jointly
establish the Texas Environmental Health Institute (institute) in order to
examine ways to identify, treat, manage, prevent, and reduce health
problems associated with environmental contamination. 

 Sec. 427.003.  PURPOSES.  Sets forth the purposes of the institute.

Sec. 427.004.  PROGRAMS.  Authorizes the commission and the department to
establish at the institute any programs necessary to carry out the
institute's established purposes under this chapter.  Authorizes the
commission and the board to contract with public or private entities to
carry out the institute's purposes. 

Sec. 427.005.  GIFTS AND GRANTS.  Authorizes the commission and the
department to accept and administer gifts and grants to fund the institute
from any individual, corporation, trust, or foundation or the United
States, subject to limitations or conditions imposed by law. 

Sec. 427.006.  PILOT PROJECT.  (a) Requires the institute to conduct a
pilot project at the RSR West Dallas site and at the Cadillac Heights site.
Authorizes the project to include health screenings and assessments. 

(b) Authorizes the institute to enter into a memorandum of understanding
with the commission and the department for toxic screening, pollutant
assessment, toxicologist services, or any other appropriate service to be
provided by the agencies, as necessary. 

(c) Requires the institute to use information gathered through the pilot
project to assist in developing its plan for implementing the institute's
purposes under this chapter. 

(d) Requires the pilot project to be conducted for two years beginning on
September 1, 2001.  Requires the institute to submit to the 78th
Legislature a report on the results of the pilot project and the
development and implementation of the statewide plan and the further
organization of the institute. 

ARTICLE 15.  OTHER REGULATORY PROVISIONS

SECTION 15.01.  Amends Chapter 13K, Water Code, by adding Section 13.4115,
as follows: 

Sec. 13.4115.  ACTION TO REQUIRE ADJUSTMENT TO CONSUMER CHARGE; PENALTY.
Authorizes the commission, in regard to a customer complaint arising out of
a charge made by a retail public utility, if the executive director finds
that the utility has failed to make the proper adjustment to the customer's
bill after the conclusion of the complaint process established by the
commission, to issue an order requiring the utility to make the adjustment.
Provides that failure to comply with the order within 15 days of receiving
the order is a violation for which the commission may impose an
administrative penalty under Section 13.4151. 

SECTION 15.02.  Amends Section 26.028, Water Code, by adding Subsection
(h), to require a public hearing on an application for a permit for a
domestic wastewater treatment operation proposing secondary or greater
treatment and no discharge of pollutants in water of the state to be held
in the same manner as provided by Section 382.0561, Health and Safety Code,
for an application under that section. 

SECTION 15.03.  Amends Section 51.149, Water Code, to provide that,
notwithstanding Section  49.108(e), no approval other than that specified
in Subsection (c) need be obtained in order for a contract between a
district and a municipality to be valid, binding, and enforceable against
all parties to the contract.  Authorizes a district, after approval by a
majority of the electors voting at an election conducted in the manner of a
bond election, to make payments under a contract from taxes for debt that
does not exceed 30 years. 

SECTION 15.04.  Amends Chapter 366D, Health and Safety Code, by adding
Section 366.0512, as follows: 

Sec. 366.0512.  MULTIPLE TREATMENT SYSTEMS.  Authorizes a multiple system
of treatment devices and disposal facilities to be permitted as an on-site
disposal system under this chapter if the system meets certain criteria. 

ARTICLE 16.  CONFORMING AMENDMENTS

SECTION 16.01. Amends Section 5.174(a), Water Code, to make a conforming
change. 

SECTION 16.02. Amends Section 11.323(a), Water Code, to make a conforming
change. 

SECTION 16.03.  Amends Section 26.028(d), Water Code, to make a conforming
change. 

SECTION 16.04.  Amends Section 26.0281, Water Code, as follows:

Sec. 26.0281. New heading: CONSIDERATION OF COMPLIANCE HISTORY. Requires
the commission, in considering the issuance, amendment, or renewal of a
permit to discharge effluent comprised primarily of sewage or municipal
waste, to consider the compliance history of the applicant and its operator
under the method for evaluating compliance history developed by the
commission under Section 5.754. Deletes text regarding adjudication
decision and proceeding. Deletes text regarding laws governing waste
discharge. 

SECTION 16.05.  Amends Section 26.040(h), Water Code, to make conforming
changes. 

SECTION 16.06.  Amends Section 27.051, Water Code, by amending Subsections
(d) and (e), and adding Subsection (h), as follows: 

(d)  Requires the commission, in determining if the use or installation of
an injection well for the disposal of hazardous waste is in the public
interest under Subsection (a)(1) rather than of this section, to consider,
but to not be limited to the consideration of certain criteria. 

(e)  Requires the commission to establish a procedure for preparing
summaries of the applicant's compliance history consistent with Sections
5.753 and 5.754 and rules adopted and procedures developed under those
sections.  Deletes text regarding preparation of compliance summaries.
Provides that in accordance with this subsection, Sections 5.753 and 5.754,
and rules adopted and procedures developed under those sections, evidence
of the compliance performance of an applicant for an injection well may be
offered by the executive director at a hearing on the application and may
be admitted into evidence, subject to the rules of evidence. 

(h) Requires the commission, in determining whether the use or installation
of an injection well is in the public interest under Subsection (a)(1), to
consider the compliance performance of the applicant in accordance with
Subsection (e) and Sections 5.753 and 5.754 and rules adopted and
procedures developed under those sections. 

 SECTION 16.07. Amends Section 361.020(d), Health and Safety Code, to
require the commission in developing a comprehensive statewide strategic
plan to consult with certain persons or committees. 

SECTION 16.08. Amends Sections 361.084(a) and (c), Health and Safety Code,
as follows: 

(a)  Requires the commission by rule to establish a procedure to prepare
compliance summaries relating to the applicant's solid waste management
activities in accordance with the method for evaluating compliance history
developed by the commission under Section 5.754, Water Code. 

(c)  Deletes a time designation of the preceding five years in regard to
noncompliance with statutes for a solid waste management facility permit.  

SECTION 16.09. Amends Section 361.088(f), Health and Safety Code, to
require the commission, notwithstanding Subsection (e), if it determines
that an applicant's compliance history under the method for evaluating
compliance history developed by the commission under Section 5.754, Water
Code, raises an issue regarding the applicant's ability to comply with a
material term of its permit, to provide an opportunity to request a
contested case hearing. 

SECTION 16.10. Amends Sections 361.089(a), (e), and (f), Health and Safety
Code, as follows: 

(a)  Authorizes the commission, for good cause, to deny or amend a permit
it issues or has authority to issue for certain reasons.  Deletes text
regarding a violation of this chapter. 

(e) Authorizes the commission to deny an original or renewal permit if
certain findings are made. 

(f) Requires the commission, before denying a permit under this section, to
make certain findings regarding the applicant's history. 

SECTION 16.11. Amends Section 382.0518(c), Health and Safety Code, to make
conforming changes. 

SECTION 16.12. Amends Section 382.055(d), Health and Safety Code, to amend
the factors required to be considered by the commission in determining
whether and under which conditions a preconstruction permit should be
renewed. 

SECTION 16.13. Amends Section 382.056(o), Health and Safety Code, to make
conforming changes. 

ARTICLE 17. TRANSITIONS; EFFECTIVE DATE

SECTION 17.01. CHANGE OF AGENCY NAME.  Sets forth provisions regarding the
commission's name change to the Texas Department of Environmental Quality. 

SECTION 17.02.  TRANSFER OF SAFE DRINKING WATER LABORATORY CERTIFICATION
PROGRAM. Sets forth provisions for the transfer of the safe drinking water
laboratory certification program from the department to the commission. 

SECTION 17.03.  TRANSFER OF ENVIRONMENTAL TESTING LABORATORY CERTIFICATION
PROGRAM. Sets forth provisions for the transfer of the environmental
testing laboratory certification program from the department to the
commission. 

SECTION 17.04.  CERTIFICATION OF WATER TREATMENT SPECIALISTS. Sets forth
provisions for the transfer of the certification of water treatment
specialists from the department to the commission.  

 SECTION 17.05.  PERFORMANCE-BASED REGULATION. Sets forth provisions
regarding performance-based regulation by the commission. 

SECTION 17.06. FEES. Sets forth provisions regarding commission fees.

SECTION 17.07. REGULATORY FLEXIBILITY. Sets forth provisions regarding
regulatory flexibility. 

SECTION 17.08. COMMISSIONER TRAINING. Sets forth provisions regarding
commissioner training requirements. 

SECTION 17.09. EXECUTIVE DIRECTOR. Sets forth guidelines pertaining to the
executive director. 

SECTION 17.10. INITIATION OF ACTION ON CITIZEN INFORMATION. Sets forth
provisions regarding initiation of enforcement action by the commission. 

SECTION 17.11. ADOPTION OF RULES REGARDING REGULATION OF CERTAIN FACILITIES
AS SOLID WASTE FACILITIES. Requires the commission to adopt rules to
implement Section 361.119, Health and Safety Code. 

SECTION 17.12.  EMISSIONS EVENTS.  Sets forth the purpose of Sections
382.0215 and 382.0216, Health and Safety Code, as added by this Act. 

SECTION 17.13.  CONTAINMENT SYSTEMS REQUIRED FOR CERTAIN UNDERGROUND
STORAGE TANKS.  Makes application of the change in law made in Section
26.3476, Water Code, prospective. 

SECTION 17.14.  Requires the commission to review the permitting process
relating to air source contaminants from concrete batch plant facilities
and make recommendations to certain entities as to its findings.  Requires
the commission to consider certain matters in the review.  Authorizes the
commission to utilize or contract with outside sources in order to meet the
requirements of this section. 

SECTION 17.15. EFFECTIVE DATE. Effective date: September 1, 2001, except as
otherwise provided by this Act.