By Bosse, Chisum, Counts                              H.B. No. 2912
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to the continuation and functions of the Texas Natural
 1-3     Resource Conservation Commission.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5                    ARTICLE 1.  ADMINISTRATION AND POLICY
 1-6           SECTION 1.01. Section 5.014, Water Code, is amended to read
 1-7     as follows:
 1-8           Sec. 5.014.  SUNSET PROVISION. The Texas Natural Resource
 1-9     Conservation Commission is subject to Chapter 325, Government Code
1-10     (Texas Sunset Act).  Unless continued in existence as provided by
1-11     that chapter, the commission is abolished and this chapter expires
1-12     September 1, 2013 [2001].
1-13           SECTION 1.02. Section 5.052(c), Water Code, is amended to
1-14     read as follows:
1-15           (c)  Appointments to the commission shall be made without
1-16     regard to the race, color, disability [handicap], sex, religion,
1-17     age, or national origin of the appointees.
1-18           SECTION 1.03. Section 5.053(a), Water Code, is amended to
1-19     read as follows:
1-20           (a)  A person may not be a member of [is not eligible to
1-21     serve on] the commission if the person or the person's spouse:
1-22                 (1)  is registered, certified, licensed, permitted, or
1-23     otherwise authorized by the commission;
1-24                 (2)  is employed by or participates in the management
 2-1     of a business entity or other organization regulated by the
 2-2     commission or receiving money [funds] from the commission;
 2-3                 (3) [(2)]  owns or[,] controls, [or has,] directly or
 2-4     indirectly, more than a 10 percent interest in a business entity or
 2-5     other organization regulated by [the commission] or receiving funds
 2-6     from the commission; or
 2-7                 (4) [(3)]  uses or receives a substantial amount of
 2-8     tangible goods, services, or money [funds] from the commission
 2-9     other than compensation or reimbursement authorized by law for
2-10     commission membership, attendance, or expenses.
2-11           SECTION 1.04. Subchapter C, Chapter 5, Water Code, is amended
2-12     by adding Section 5.0535 to read as follows:
2-13           Sec. 5.0535.  REQUIRED TRAINING PROGRAM FOR COMMISSION
2-14     MEMBERS. (a)  A person who is appointed to and qualifies for office
2-15     as a member of the commission may not vote, deliberate, or be
2-16     counted as a member in attendance at a meeting of the commission
2-17     until the person completes a training program that complies with
2-18     this section.
2-19           (b)  The training program must provide the person with
2-20     information regarding:
2-21                 (1)  the legislation that created the commission;
2-22                 (2)  the programs operated by the commission;
2-23                 (3)  the role and functions of the commission;
2-24                 (4)  the rules of the commission, with an emphasis on
2-25     the rules that relate to disciplinary and investigatory authority;
2-26                 (5)  the current budget for the commission;
2-27                 (6)  the results of recent significant internal and
 3-1     external audits of the  commission;
 3-2                 (7)  the requirements of:
 3-3                       (A)  the open meetings law, Chapter 551,
 3-4     Government Code;
 3-5                       (B)  the public information law, Chapter 552,
 3-6     Government Code;
 3-7                       (C)  the administrative procedure law,  Chapter
 3-8     2001, Government Code; and
 3-9                       (D)  other laws relating to public officials,
3-10     including conflict-of-interest laws; and
3-11                 (8)  any applicable ethics policies adopted by the
3-12     commission or the Texas Ethics Commission.
3-13           (c)  A person appointed to the commission is entitled to
3-14     reimbursement, as provided by the General Appropriations Act, for
3-15     the travel expenses incurred in attending the training program
3-16     regardless of whether the attendance at the program occurs before
3-17     or after the person qualifies for office.
3-18           SECTION 1.05. Section 5.054, Water Code, is amended to read
3-19     as follows:
3-20           Sec. 5.054.  REMOVAL OF COMMISSION MEMBERS. (a)  It is a
3-21     ground for removal from the commission that [if] a member:
3-22                 (1)  does not have at the time of taking office the
3-23     qualifications required by Section 5.053(b);
3-24                 (2)  does not maintain during the service on the
3-25     commission the qualifications required by Section 5.053(b) [for
3-26     appointment to the commission];
3-27                 (3)  is ineligible for membership under Section
 4-1     5.053(a), 5.059, or 5.060 [(2)  violates a prohibition established
 4-2     by Sections 5.059 and 5.060 of this code];
 4-3                 (4)  cannot, because of illness or disability, [(3)  is
 4-4     unable to] discharge the member's [his] duties for a substantial
 4-5     part of the member's term [portion of the term for which he was
 4-6     appointed because of illness or disability]; or
 4-7                 (5) [(4)]  is absent from more than one-half of the
 4-8     regularly scheduled commission meetings that the member is eligible
 4-9     to attend during each calendar year without an excuse approved [,
4-10     except when the absence is excused] by a majority vote of the
4-11     commission.
4-12           (b)  The validity of an action of the commission is not
4-13     affected by the fact that it is [was] taken when a ground for
4-14     removal of a member of the commission exists [existed].
4-15           (c)  If the executive director or a member [of the
4-16     commission] has knowledge that a potential ground for removal
4-17     exists, the executive director or member [he] shall notify the
4-18     presiding officer [chairman] of the commission of the potential
4-19     [that] ground.  The presiding officer [chairman of the commission]
4-20     shall then notify the governor and the attorney general that a
4-21     potential ground for removal exists.  If the potential ground for
4-22     removal involves the presiding officer, the executive director or
4-23     another member of the commission shall notify the member of the
4-24     commission with the most seniority, who shall then notify the
4-25     governor and the attorney general that a potential ground for
4-26     removal exists.
4-27           SECTION 1.06. Sections 5.058(a)-(d), Water Code, are amended
 5-1     to read as follows:
 5-2           (a)  The governor shall designate a member of the commission
 5-3     as the presiding officer [the chairman] of the commission to serve
 5-4     in that capacity at the pleasure of[.  He shall serve as chairman
 5-5     until] the governor [designates a different chairman].
 5-6           (b)  The presiding officer [chairman] may designate another
 5-7     commissioner to act for the presiding officer [him] in the
 5-8     presiding officer's  [his] absence.
 5-9           (c)  The presiding officer [chairman] shall preside at the
5-10     meetings and hearings of the commission.
5-11           (d)  The commission shall hold regular meetings and all
5-12     hearings at times specified by a commission order and entered in
5-13     its minutes.  The commission may hold special meetings at the times
5-14     and places in the state that the commission decides are appropriate
5-15     for the performance of its duties.  The presiding officer
5-16     [chairman] or acting presiding officer [chairman] shall give the
5-17     other members reasonable notice before holding a special meeting.
5-18           SECTION 1.07. Sections 5.059 and 5.060, Water Code, are
5-19     amended to read as follows:
5-20           Sec. 5.059.  CONFLICT OF INTEREST. (a)  In this section,
5-21     "Texas trade association" means a cooperative and voluntarily
5-22     joined association of business or professional competitors in this
5-23     state designed to assist its members and its industry or profession
5-24     in dealing with mutual business or professional problems and in
5-25     promoting their common interest.
5-26           (b)  A person may not be a member of the commission and may
5-27     not be a commission employee employed in a "bona fide executive,
 6-1     administrative, or professional capacity," as that phrase is used
 6-2     for purposes of establishing an exemption to the overtime
 6-3     provisions of the federal Fair Labor Standards Act of 1938 (29
 6-4     U.S.C. Section 201 et seq.) and its subsequent amendments, if:
 6-5                 (1)  the person is an officer, employee, or paid
 6-6     consultant of a Texas trade association in an industry regulated by
 6-7     the commission; or
 6-8                 (2)  the person's spouse is an officer, manager, or
 6-9     paid consultant of a Texas trade association in an industry
6-10     regulated by the commission [An officer, employee, or paid
6-11     consultant of a trade association in an industry regulated by the
6-12     commission may not be a member of the commission or employee of the
6-13     commission, nor may a person who cohabits with or is the spouse of
6-14     an officer, managerial employee, or paid consultant of a trade
6-15     association in an industry regulated by the commission be a member
6-16     of the commission or an employee of the commission grade 17 or
6-17     over, including exempt employees, according to the position
6-18     classification schedule under the General Appropriations Act].
6-19           Sec. 5.060.  LOBBYIST PROHIBITION. A person may not be a
6-20     member of the commission or act as general counsel to the
6-21     commission if the person [who] is required to register as a
6-22     lobbyist under Chapter 305, Government Code, because  [by virtue]
6-23     of the person's [his] activities for compensation [in or] on behalf
6-24     of a profession related to the operation of the commission [may not
6-25     serve as a member of the commission or act as the general counsel
6-26     to the commission].
6-27           SECTION 1.08. Subchapter D, Chapter 5, Water Code, is amended
 7-1     by adding Section 5.1031 to read as follows:
 7-2           Sec. 5.1031.  RULES RESTRICTING ADVERTISING OR COMPETITIVE
 7-3     BIDDING PROHIBITED. (a)  The commission may not adopt rules
 7-4     restricting advertising or competitive bidding by a license holder
 7-5     except to prohibit false, misleading, or deceptive practices.
 7-6           (b)  In its rules to prohibit false, misleading, or deceptive
 7-7     practices, the commission may not include a rule that:
 7-8                 (1)  restricts the use of any medium for advertising;
 7-9                 (2)  restricts the use of a license holder's personal
7-10     appearance or voice in an advertisement;
7-11                 (3)  relates to the size or duration of an
7-12     advertisement by the license holder; or
7-13                 (4)  restricts the license holder's advertisement under
7-14     a trade name.
7-15           SECTION 1.09. Section 5.107, Water Code, is amended to read
7-16     as follows:
7-17           Sec. 5.107.  ADVISORY COMMITTEES, WORK GROUPS, AND TASK
7-18     FORCES [COUNCILS]. (a)  The commission or the executive director
7-19     may create and consult with advisory committees, work groups, or
7-20     task forces [councils], including committees, work groups, or task
7-21     forces [councils] for the environment, [councils] for public
7-22     information, or for any other matter [councils] that the commission
7-23     or the executive director may consider appropriate.
7-24           (b)  The commission shall identify affected groups of
7-25     interested persons for advisory committees, work groups, and task
7-26     forces and shall make reasonable attempts to have balanced
7-27     representation on all advisory committees, work groups, and task
 8-1     forces.  This subsection does not require the commission to ensure
 8-2     that all representatives attend a scheduled meeting.  A rule or
 8-3     other action of the commission may not be challenged solely because
 8-4     of the composition of an advisory committee, work group, or task
 8-5     force.
 8-6           (c)  The commission shall monitor the composition and
 8-7     activities of advisory committees, work groups, and task forces
 8-8     appointed by the commission or formed at the staff level and shall
 8-9     maintain that information in a form and location that is easily
8-10     accessible to the public, including making the information
8-11     available on the Internet.
8-12           SECTION 1.10. Subchapter D, Chapter 5, Water Code, is amended
8-13     by adding Section 5.1115 to read as follows:
8-14           Sec. 5.1115.  RECORD OF OUTSIDE CONTACT BY COMMISSION MEMBER
8-15     OR STAFF. (a)  Each commission member and each commission staff
8-16     member with discretionary authority over any aspect of a permit  or
8-17     enforcement decision, rulemaking, or other regulatory matter
8-18     pending before or within the jurisdiction of the commission shall
8-19     keep a written record of each communication with any person other
8-20     than a commission member or commission employee regarding that
8-21     regulatory matter.  A commission member or commission employee has
8-22     discretionary authority if the person has authority to make a
8-23     decision that is final regarding that regulatory matter.
8-24           (b)  The written record must state:
8-25                 (1)  the name of the person with whom the communication
8-26     took place;
8-27                 (2)  the name of that person's employer;
 9-1                 (3)  the name of the party or interest whom that person
 9-2     is representing;
 9-3                 (4)  the specific regulatory matter about which the
 9-4     communication is made;
 9-5                 (5)  the date, time, and location of the communication;
 9-6     and
 9-7                 (6)  the specific method of communication, whether in
 9-8     person or by letter, telephone, e-mail, or other method.
 9-9           (c)  A written record prepared as required by this section is
9-10     subject to disclosure under the public information law, Chapter
9-11     552, Government Code.
9-12           (d)  This section does not apply to an unplanned
9-13     communication that occurs outside commission offices.
9-14           (e)  If the communication occurs as part of a presentation to
9-15     a group or association, the written record must include the name of
9-16     the group or association instead of the information required by
9-17     Subsections (b)(1)-(3).
9-18           SECTION 1.11. Subchapter D, Chapter 5, Water Code, is amended
9-19     by adding Sections 5.1191-5.1193 to read as follows:
9-20           Sec. 5.1191.  RESEARCH MODEL. (a)  In this section, "research
9-21     model" means a mechanism for developing a plan to address the
9-22     commission's practical regulatory needs.  The commission's plan
9-23     shall be prioritized by need and shall identify short-term,
9-24     medium-term, and long-term research goals. The plan may address
9-25     preferred methods of conducting the identified research.
9-26           (b)  The commission shall develop a research model. The
9-27     commission may appoint a research advisory board to assist the
 10-1    commission in providing appropriate incentives to encourage various
 10-2    interest groups to participate in developing the research model and
 10-3    to make recommendations regarding research topics specific to this
 10-4    state.  The research advisory board must include representatives of
 10-5    the academic community, representatives of the regulated community,
 10-6    and public representatives of the state at large.
 10-7          Sec. 5.1192.  COORDINATION OF RESEARCH. (a)  The commission
 10-8    shall facilitate and coordinate environmental research in the state
 10-9    according to the research model developed under Section 5.1191.
10-10          (b)  The commission shall explore private and federal funding
10-11    opportunities for research needs identified in the research model.
10-12    The commission may conduct, direct, and facilitate research to
10-13    implement the commission's research model by administering grants
10-14    or by contracting for research if money is appropriated to the
10-15    commission for those purposes.
10-16          (c)  To the degree practicable, the commission, through the
10-17    research model, shall coordinate with or make use of any research
10-18    activities conducted under existing state initiatives, including
10-19    research by state universities, the Texas Higher Education
10-20    Coordinating Board, the United States Department of Agriculture,
10-21    the Texas Department of Agriculture, and other state and federal
10-22    agencies as appropriate.
10-23          (d)  This section does not authorize the commission to
10-24    initiate or direct the research efforts of another entity except
10-25    under the terms of a grant or contract.
10-26          Sec. 5.1193.  REPORT. The commission shall include in the
10-27    reports required by Section 5.178 a description of cooperative
 11-1    research efforts, an accounting of money spent on research, and a
 11-2    review of the purpose, implementation, and results of particular
 11-3    research projects conducted.
 11-4          SECTION 1.12. Subchapter D, Chapter 5, Water Code, is amended
 11-5    by adding Sections 5.127-5.130 to read as follows:
 11-6          Sec. 5.127.  USE OF ENVIRONMENTAL TESTING LABORATORY DATA AND
 11-7    ANALYSIS. (a)  The commission may accept environmental testing
 11-8    laboratory data and analysis for use in commission decisions
 11-9    regarding any matter under the commission's jurisdiction relating
11-10    to permits or other authorizations, compliance matters, enforcement
11-11    actions, or corrective actions only if the data and analysis is
11-12    prepared by an environmental testing laboratory accredited by the
11-13    commission under Subchapter R or an environmental testing
11-14    laboratory described in Subsection (b).
11-15          (b)  The commission may accept for use in commission
11-16    decisions data and analysis prepared by:
11-17                (1)  an on-site or in-house environmental testing
11-18    laboratory if the laboratory is periodically inspected by the
11-19    commission;
11-20                (2)  an environmental testing laboratory that is
11-21    accredited under federal law; or
11-22                (3)  if the data and analysis are necessary for
11-23    emergency response activities and the required data and analysis
11-24    are not otherwise available,  an environmental testing laboratory
11-25    that is not accredited by the commission under Subchapter R or
11-26    under federal law.
11-27          (c)  The commission by rule may require that data and
 12-1    analysis used in other commission decisions be obtained from an
 12-2    environmental testing laboratory accredited by the commission under
 12-3    Subchapter R.
 12-4          Sec. 5.128.  ELECTRONIC REPORTING TO COMMISSION; REDUCTION OF
 12-5    DUPLICATE REPORTING. (a)  The commission shall encourage the use of
 12-6    electronic reporting through the Internet, to the extent
 12-7    practicable, for reports required by the commission.  An electronic
 12-8    report must be submitted in a format prescribed by the commission.
 12-9    The commission may consult with the Department of Information
12-10    Resources on developing a  simple format for use in implementing
12-11    this subsection.
12-12          (b)  The commission shall strive to reduce duplication in
12-13    reporting requirements throughout the agency.
12-14          Sec. 5.129.  SUMMARY FOR PUBLIC NOTICES. (a)  The commission
12-15    by rule shall provide for each public notice issued or published by
12-16    the commission or by a person under the jurisdiction of the
12-17    commission as required by law or by commission rule to include at
12-18    the beginning of the notice a succinct statement of the subject of
12-19    the notice.  The rules must provide that a summary statement must
12-20    be designed to inform the reader of the subject matter of the
12-21    notice without having to read the entire text of the notice.
12-22          (b)  The summary statement may not be grounds for challenging
12-23    the validity of the proposed action for which the notice was
12-24    published.
12-25          Sec. 5.130.  CONSIDERATION OF CUMULATIVE RISKS. The
12-26    commission shall:
12-27                (1)  develop and implement policies to protect the
 13-1    public from cumulative risks; and
 13-2                (2)  give priority to monitoring and enforcement in
 13-3    areas in which regulated facilities are concentrated.
 13-4          SECTION 1.13. Subchapter E, Chapter 5, Water Code, is amended
 13-5    by adding Section 5.1765 to read as follows:
 13-6          Sec. 5.1765.  PUBLICATION OF INFORMATION REGARDING COMPLAINT
 13-7    PROCEDURES AND POLICIES. The commission shall establish a process
 13-8    for educating the public regarding the commission's complaint
 13-9    policies and procedures. As part of the public education process,
13-10    the commission shall make available to the public in pamphlet form
13-11    an explanation of the complaint policies and procedures, including
13-12    information regarding and standards applicable to the collection
13-13    and preservation of credible evidence of environmental problems by
13-14    members of the public.
13-15          SECTION 1.14. Sections 5.176 and 5.177, Water Code, are
13-16    amended to read as follows:
13-17          Sec. 5.176.  COMPLAINT FILE. (a)  The commission shall
13-18    maintain a [keep an information] file on [about] each written
13-19    complaint filed with the commission about a matter within the
13-20    commission's regulatory jurisdiction [relating to an entity
13-21    regulated by the commission].  The file must include:
13-22                (1)  the name of the person who filed the complaint,
13-23    unless the person has specifically requested anonymity;
13-24                (2)  the date the complaint is received by the
13-25    commission;
13-26                (3)  the subject matter of the complaint;
13-27                (4)  the name of each person contacted in relation to
 14-1    the complaint;
 14-2                (5)  a summary of the results of the review or
 14-3    investigation of the complaint; and
 14-4                (6)  an explanation of the reason the file was closed,
 14-5    if the agency closed the file without taking action other than to
 14-6    investigate the complaint.
 14-7          (b)  The commission shall establish and implement procedures
 14-8    for receiving complaints submitted by means of the Internet and
 14-9    orally and shall maintain files on those complaints as provided by
14-10    Subsection (a).
14-11          Sec. 5.177.  NOTICE OF COMPLAINT PROCEDURES; NOTICE OF
14-12    INVESTIGATION STATUS. (a)  The agency shall provide to the person
14-13    filing the complaint about a matter within the commission's
14-14    regulatory jurisdiction and to each person who is the subject of
14-15    the complaint a copy of the commission's policies and procedures
14-16    relating to complaint investigation and resolution.
14-17          (b)  The [If a written complaint is filed with the commission
14-18    relating to an entity regulated by the commission, the] commission,
14-19    at least [as frequently as] quarterly [and] until final disposition
14-20    of the complaint, shall notify the person filing the complaint and
14-21    each person who is a subject of [parties to] the complaint of the
14-22    status of the investigation [complaint] unless the notice would
14-23    jeopardize an undercover investigation.
14-24          (c)  The commission is not required to provide the
14-25    information described in Subsection (a) or (b) to a complainant who
14-26    files an anonymous complaint or provides inaccurate contact
14-27    information.
 15-1          SECTION 1.15. Subchapter E, Chapter 5, Water Code, is amended
 15-2    by adding Sections 5.1771, 5.1772, and 5.1773 to read as follows:
 15-3          Sec. 5.1771.  COORDINATION OF COMPLAINT INVESTIGATIONS WITH
 15-4    LOCAL ENFORCEMENT OFFICIALS:  TRAINING. (a)  The commission shall
 15-5    share information regarding a complaint about a matter within the
 15-6    commission's regulatory jurisdiction made to the commission with
 15-7    local officials with authority to act on the complaint in the
 15-8    county or municipality in which the alleged action or omission that
 15-9    is the subject of the complaint occurred or is threatening to
15-10    occur.
15-11          (b)  On request, the commission shall provide training for
15-12    local enforcement officials in investigating complaints and
15-13    enforcing environmental laws relating to matters under the
15-14    commission's jurisdiction under this code or the Health and Safety
15-15    Code.  The training must include, at a minimum:
15-16                (1)  procedures for local enforcement officials to use
15-17    in addressing citizen complaints if the commission is unavailable
15-18    or unable to  respond to the complaint; and
15-19                (2)  an explanation of local government authority to
15-20    enforce state laws and commission rules relating to the
15-21    environment.
15-22          (c)  The commission may charge a reasonable fee for providing
15-23    training to local enforcement officials as required by Subsection
15-24    (b) in an amount sufficient to recover the costs of the training.
15-25          Sec. 5.1772.  AFTER-HOURS RESPONSE TO COMPLAINTS. (a)  The
15-26    commission shall adopt and implement a policy to provide timely
15-27    response to complaints during periods outside regular business
 16-1    hours.
 16-2          (b)  This section does not:
 16-3                (1)  require availability of field inspectors for
 16-4    response 24 hours a day, seven days a week, in all parts of the
 16-5    state; or
 16-6                (2)  authorize additional use of overtime.
 16-7          Sec. 5.1773.  COMPLAINT ASSESSMENT. (a)  The commission
 16-8    annually shall conduct a comprehensive analysis of the complaints
 16-9    it receives, including analysis by the following categories:
16-10                (1)  air;
16-11                (2)  water;
16-12                (3)  waste;
16-13                (4)  priority classification;
16-14                (5)  region;
16-15                (6)  commission response;
16-16                (7)  enforcement action taken; and
16-17                (8)  trends by complaint type.
16-18          (b)  In addition to the analysis required by Subsection (a),
16-19    the commission shall assess the impact of changes made in the
16-20    commission's complaint policy.
16-21          SECTION 1.16. Section 5.178(b), Water Code, is amended to
16-22    read as follows:
16-23          (b)  The report due by December 1 of an even-numbered year
16-24    shall include, in addition:
16-25                (1)  the commission's recommendations for necessary and
16-26    desirable legislation; and
16-27                (2)  the following reports:
 17-1                      (A)  the assessments and reports required by
 17-2    Sections 361.0219(c), 361.0232, [361.485,] 361.510, 371.063, and
 17-3    382.141, Health and Safety Code; [and]
 17-4                      (B)  the reports required by Section 26.0135(d)
 17-5    of this code and Section 5.02, Chapter 133, Acts of the 69th
 17-6    Legislature, Regular Session, 1985; and
 17-7                      (C)  a summary of the analyses and assessments
 17-8    required by Section 5.1773 of this code.
 17-9          SECTION 1.17. Section 5.227, Water Code, is amended to read
17-10    as follows:
17-11          Sec. 5.227.  EQUAL EMPLOYMENT OPPORTUNITY POLICY. (a)  The
17-12    executive director or his designee shall prepare and maintain a
17-13    written policy statement that implements  [to assure implementation
17-14    of] a program of equal employment opportunity to ensure that
17-15    [whereby] all personnel decisions [transactions] are made without
17-16    regard to race, color, disability [handicap], sex, religion, age,
17-17    or national origin.
17-18          (b)  The policy statement must include:
17-19                (1)  personnel policies, including policies relating to
17-20    recruitment, evaluation, selection, [appointment,] training, and
17-21    promotion of personnel, that show the intent of the commission to
17-22    avoid the unlawful employment practices described by Chapter 21,
17-23    Labor Code; and
17-24                (2)  a comprehensive analysis of the extent to which
17-25    the composition of the commission's personnel is in accordance with
17-26    state and federal law and a description of reasonable methods to
17-27    achieve compliance with state and federal law [work force that
 18-1    meets federal and state guidelines;]
 18-2                [(3)  procedures by which a determination can be made
 18-3    of significant underutilization in the commission's work force of
 18-4    all persons for whom federal or state guidelines encourage a more
 18-5    equitable balance; and]
 18-6                [(4)  reasonable methods to address appropriately areas
 18-7    of significant underutilization in the commission's work force of
 18-8    all persons for whom federal or state guidelines encourage a more
 18-9    equitable balance].
18-10          (c) [(b)]  The policy statement must:
18-11                (1)  [shall be filed with the governor's office before
18-12    November 1, 1985, cover an annual period, and] be updated [at
18-13    least] annually;
18-14                (2)  be reviewed by the state Commission on Human
18-15    Rights for compliance with Subsection (b)(1); and
18-16                (3)  be filed with the governor's office.  [The
18-17    governor's office shall develop a biennial report to the
18-18    legislature based on the information submitted.  This report may be
18-19    made individually or as a part of other biennial reports made to
18-20    the legislature.]
18-21          SECTION 1.18. Subchapter F, Chapter 5, Water Code, is amended
18-22    by adding Section 5.2275 to read as follows:
18-23          Sec. 5.2275.  STATE EMPLOYEE INCENTIVE PROGRAM. The executive
18-24    director or the executive director's designee shall provide to
18-25    commission employees information and training on the benefits and
18-26    methods of participation in the state employee incentive program
18-27    under Subchapter B, Chapter 2108, Government Code.
 19-1          SECTION 1.19. Section 5.228, Water Code, is amended to read
 19-2    as follows:
 19-3          Sec. 5.228.  APPEARANCES AT HEARINGS. (a)  The position of
 19-4    and information developed by the commission shall be presented by
 19-5    the executive director or his designated representative at hearings
 19-6    of the commission and the hearings held by federal, state, and
 19-7    local agencies on matters affecting the public's interest in the
 19-8    state's environment and natural resources, including matters that
 19-9    have been determined to be policies of the state.
19-10          (b)  The executive director shall be named a party in
19-11    hearings before the commission on an enforcement matter under the
19-12    jurisdiction of the commission.
19-13          (c)  The executive director may participate as a party in
19-14    permit hearings or contested case permit hearings before the
19-15    commission or the State Office of Administrative Hearings for the
19-16    sole purpose of providing information to complete the
19-17    administrative record.  The commission by rule shall specify the
19-18    factors the executive director must consider in determining, case
19-19    by case, whether to participate as a party in a permit hearing or a
19-20    contested case permit hearing.  In developing the rules under this
19-21    subsection the commission shall consider, among other factors:
19-22                (1)  the technical, legal, and financial capacity of
19-23    the parties to the proceeding;
19-24                (2)  whether the parties to the proceeding have
19-25    participated in a previous contested case hearing;
19-26                (3)  the complexity of the issues presented; and
19-27                (4)  the available resources of commission staff.
 20-1          (d)  In a contested case hearing relating to a permit
 20-2    application, the executive director or the executive director's
 20-3    designated representative may not rehabilitate the testimony of a
 20-4    witness unless the witness is a commission employee testifying for
 20-5    the sole purpose of providing information to complete the
 20-6    administrative record.
 20-7          (e)  The executive director or the executive director's
 20-8    designated representative may not assist a permit applicant in
 20-9    meeting its burden of proof in a hearing before the commission or
20-10    the State Office of Administrative Hearings unless the permit
20-11    applicant fits a category of permit applicant that the commission
20-12    by rule has designated as eligible to receive assistance.  The
20-13    commission shall adopt rules establishing categories of permit
20-14    applicants eligible to receive assistance.
20-15          SECTION 1.20. Subchapter F, Chapter 5, Water Code, is amended
20-16    by adding Section 5.2291 to read as follows:
20-17          Sec. 5.2291.  SCIENTIFIC AND TECHNICAL SERVICES. (a)  In this
20-18    section, "scientific and technical environmental services" means
20-19    services, other than engineering services, of a scientific or
20-20    technical nature the conduct of which requires technical training
20-21    and professional judgment.  The term includes modeling, risk
20-22    assessment, site characterization and assessment, studies of the
20-23    magnitude, source, and extent of contamination, contaminant fate
20-24    and transport analysis, watershed assessment and analysis, total
20-25    maximum daily load studies, scientific data analysis, and similar
20-26    tasks, to the extent those tasks are not defined as the "practice
20-27    of engineering" under The Texas Engineering Practice Act (Article
 21-1    3271a, Vernon's Texas Civil Statutes).
 21-2          (b)  The procurement of a contract for scientific and
 21-3    technical environmental services may be conducted under the
 21-4    procedures for professional services selection provided in
 21-5    Subchapter A, Chapter 2254, Government Code, if the executive
 21-6    director determines there is a compelling public need to do so.
 21-7          SECTION 1.21. Section 5.234(b), Water Code, is amended to
 21-8    read as follows:
 21-9          (b)  After an application, petition, or other document is
21-10    processed, it shall be presented to the commission for action as
21-11    required by law and rules of the commission.  If, in the course of
21-12    reviewing an application and preparing a draft permit, the
21-13    executive director has required changes to be made to the
21-14    applicant's proposal, the executive director shall prepare a
21-15    summary of the changes that were made to increase protection of
21-16    public health and the environment.
21-17          SECTION 1.22.  Subchapter G, Chapter 5, Water Code, is
21-18    amended to read as follows:
21-19             SUBCHAPTER G.  OFFICE OF NATURAL RESOURCE PUBLIC
21-20                             INTEREST COUNSEL
21-21          Sec. 5.271.  DEFINITIONS. In this subchapter:
21-22                (1)  "Counsel" means the natural resource public
21-23    interest counsel.
21-24                (2)  "Office" means the Office of Natural Resource
21-25    Public Interest Counsel.
21-26                (3)  "Public interest" includes:
21-27                      (A)  any environmental, consumer, or community
 22-1    interest; and
 22-2                      (B)  any right or privilege that promotes:
 22-3                            (i)  public health;
 22-4                            (ii)  environmental quality;
 22-5                            (iii)  preservation of property or property
 22-6    rights; or
 22-7                            (iv)  conservation or judicious use of the
 22-8    state's natural resources.
 22-9          Sec. 5.272.  CREATION AND GENERAL RESPONSIBILITY OF OFFICE OF
22-10    NATURAL RESOURCE PUBLIC INTEREST COUNSEL. The Office of Natural
22-11    Resource Public Interest Counsel is created to ensure that the
22-12    public interest is represented in all matters before the
22-13    commission.
22-14          Sec. 5.273.  NATURAL RESOURCE PUBLIC INTEREST COUNSEL. (a)
22-15    The governor with the advice and consent of the senate shall
22-16    appoint a natural resource public interest counsel to serve as the
22-17    executive director of the office.
22-18          (b)  To be eligible to serve as counsel, a person must:
22-19                (1)  be eligible to practice law in the state;
22-20                (2)  have demonstrated a strong commitment to and
22-21    involvement in environmental quality and consumer protection
22-22    efforts; and
22-23                (3)  have the knowledge and experience necessary to
22-24    practice effectively in proceedings before the commission and in
22-25    court.
22-26          (c)  The counsel serves a two-year term that expires February
22-27    1 of each odd-numbered year.
 23-1          (d)  The counsel may serve on a board, committee, or advisory
 23-2    group unless prohibited by law.
 23-3          Sec. 5.274.  POWERS AND DUTIES OF COUNSEL AND COMMISSION.
 23-4    (a)  The counsel may represent the public interest in any issue
 23-5    that arises in a proceeding before the commission.  The counsel is
 23-6    entitled to be admitted as a party to any proceeding before the
 23-7    commission.
 23-8          (b)  The counsel shall:
 23-9                (1)  implement this subchapter;
23-10                (2)  administer the office;
23-11                (3)  prepare and submit to the legislature a budget for
23-12    the office;
23-13                (4)  employ or contract with all professional,
23-14    technical, and other personnel necessary to carry out this
23-15    subchapter; and
23-16                (5)  ensure that the office does not expend resources
23-17    in proceedings in which the public interest is otherwise adequately
23-18    represented.
23-19          (c)  The counsel is responsible for approving actual and
23-20    necessary expenditures incurred in administering the office,
23-21    including expenses for professional services, travel, and per diem
23-22    payments.
23-23          (d)  The counsel may:
23-24                (1)  recommend to the legislature legislation that in
23-25    the counsel's judgment would protect consumers, public health, or
23-26    the environment; or
23-27                (2)  recommend to the commission rules or amendments to
 24-1    rules that in the counsel's judgment would protect consumers,
 24-2    public health, or the environment.
 24-3          (e)  The counsel shall participate in a meeting of any of the
 24-4    commission's advisory committees when necessary to ensure that the
 24-5    committee considers the public interest perspective.
 24-6          (f)  The commission shall provide the counsel a copy of each
 24-7    notice related to a matter under the jurisdiction of the commission
 24-8    that is required by statute or commission rule to be mailed,
 24-9    published, or posted in any manner by the commission or another
24-10    person.
24-11          (g)  The commission shall give the office access to the
24-12    commission's technical staff and resources to assist the counsel in
24-13    a proceeding before the commission.  The commission is not required
24-14    to give the office access to a technical staff member if the staff
24-15    member is expected to participate in the proceeding on the
24-16    commission's behalf.
24-17          Sec. 5.275.  REPRESENTATION BY FORMER COUNSEL; PENALTY.
24-18    (a)  A former counsel may not make any communication to or
24-19    appearance before the commission or an officer or employee of the
24-20    commission before the second anniversary of the date the person
24-21    ceases to serve as counsel if the communication or appearance is
24-22    made:
24-23                (1)  on behalf of another person in connection with any
24-24    matter on which the person seeks official action; or
24-25                (2)  with the intent to influence a commission decision
24-26    or action.
24-27          (b)  A former counsel may not represent any person or receive
 25-1    compensation for services rendered on behalf of any person
 25-2    regarding a matter before the commission before the second
 25-3    anniversary of the date the person ceases to serve as counsel.
 25-4          (c)  A person commits an offense if the person violates this
 25-5    section.  An offense under this subsection is a Class A
 25-6    misdemeanor.
 25-7          Sec. 5.276.  JUDICIAL REVIEW AND APPEAL. The counsel may
 25-8    appeal on behalf of the public an action taken by the commission in
 25-9    a proceeding in which the counsel participated.  The counsel may
25-10    intervene as a matter of right or appear in any other appropriate
25-11    capacity in a judicial proceeding that arises out of a commission
25-12    proceeding in which the counsel participated.
25-13          [Sec. 5.271.  CREATION AND GENERAL RESPONSIBILITY OF THE
25-14    OFFICE OF PUBLIC INTEREST COUNSEL. The office of public interest
25-15    counsel is created to ensure that the commission promotes the
25-16    public's interest and is responsive to environmental and citizens'
25-17    concerns including environmental quality and consumer protection.]
25-18          [Sec. 5.272.  PUBLIC INTEREST COUNSEL. The office shall be
25-19    headed by a public interest counsel appointed by the commission.
25-20    The executive director may submit the names and qualifications of
25-21    candidates for public interest counsel to the commission.]
25-22          [Sec. 5.273.  DUTIES OF THE PUBLIC INTEREST COUNSEL. The
25-23    counsel shall represent the public interest and be a party to all
25-24    proceedings before the commission.]
25-25          [Sec. 5.274.  STAFF. The office shall be adequately staffed
25-26    to carry out its functions under this code.]
25-27          [Sec. 5.275.  APPEAL. A ruling, decision, or other act of the
 26-1    commission may not be appealed by the counsel.]
 26-2          SECTION 1.23.  Subchapter A, Chapter 7, Water Code, is
 26-3    amended by adding Section 7.0025 to read as follows:
 26-4          Sec. 7.0025.  INITIATION OF ENFORCEMENT ACTION USING
 26-5    INFORMATION PROVIDED BY PRIVATE INDIVIDUAL. (a)  The commission may
 26-6    initiate an enforcement action on a matter under its jurisdiction
 26-7    under this code or the Health and Safety Code based on information
 26-8    it receives from a private individual if that information, in the
 26-9    commission's judgment, is of sufficient value and credibility to
26-10    warrant the initiation of an enforcement action.
26-11          (b)  The executive director or the executive director's
26-12    designated representative may evaluate the value and credibility of
26-13    information received from a private individual and the merits of
26-14    any proposed enforcement action based on that information.
26-15          (c)  The commission by rule may adopt criteria for the
26-16    executive director to use in evaluating the value and credibility
26-17    of information received from a private individual and for use of
26-18    that information in an enforcement action.
26-19          (d)  A private individual who submits information on which
26-20    the commission relies for all or part of an enforcement case may be
26-21    called to testify in the enforcement proceedings.  If the
26-22    commission relies solely on the information submitted by a private
26-23    individual to prove an enforcement case, any physical or sampling
26-24    data must have been collected or gathered in accordance with
26-25    commission protocols.
26-26          SECTION 1.24.  Section 361.0231(a), Health and Safety Code,
26-27    is amended to read as follows:
 27-1          (a)  To protect the public health and environment[, encourage
 27-2    economic development,] and assure the continuation of the federal
 27-3    funding for abandoned facility response actions, it is the state
 27-4    public policy that adequate capacity should exist for the proper
 27-5    management of industrial and hazardous waste generated in this
 27-6    state.
 27-7          SECTION 1.25.  Section 26.003, Water Code, is amended to read
 27-8    as follows:
 27-9          Sec. 26.003.  POLICY OF THIS SUBCHAPTER.  It is the policy of
27-10    this state and the purpose of this subchapter to maintain the
27-11    quality of water in the state consistent with the public health and
27-12    enjoyment, the propagation and protection of terrestrial and
27-13    aquatic life, and the operation of existing industries[, and the
27-14    economic development of the state]; to encourage and promote the
27-15    development and use of regional and areawide waste collection,
27-16    treatment, and disposal systems to serve the waste disposal needs
27-17    of the citizens of the state; and to require the use of all
27-18    reasonable methods to implement this policy.
27-19          SECTION 1.26.  Section 27.003, Water Code, is amended to read
27-20    as follows:
27-21          Sec. 27.003.  POLICY AND PURPOSE.  It is the policy of this
27-22    state and the purpose of this chapter to maintain the quality of
27-23    fresh water in the state to the extent consistent with the public
27-24    health and welfare and[,] the operation of existing industries,
27-25    [and the economic development of the state,] to prevent underground
27-26    injection that may pollute fresh water, and to require the use of
27-27    all reasonable methods to implement this policy.
 28-1                      ARTICLE 2.  NOTICE REQUIREMENTS
 28-2          SECTION 2.01. Chapter 5, Water Code, is amended by adding a
 28-3    heading for Subchapter O to read as follows:
 28-4                    SUBCHAPTER O.  NOTICE REQUIREMENTS
 28-5          SECTION 2.02. Section 5.115, Water Code, is transferred to
 28-6    new Subchapter O, Chapter 5, Water Code, redesignated as Section
 28-7    5.651, and amended to read as follows:
 28-8          Sec. 5.651 [5.115].  PERSONS AFFECTED IN COMMISSION HEARINGS;
 28-9    NOTICE OF APPLICATION FOR PERMIT OR LICENSE. (a)  For the purpose
28-10    of an administrative hearing held by or for the commission
28-11    involving a contested case, "affected person," or "person
28-12    affected," or "person who may be affected" means a person who has a
28-13    personal justiciable interest related to a legal right, duty,
28-14    privilege, power, or economic interest affected by the
28-15    administrative hearing.  An interest common to members of the
28-16    general public does not qualify as a personal justiciable interest.
28-17    The commission shall adopt rules specifying factors which must be
28-18    considered in determining whether a person is an affected person in
28-19    any contested case arising under the air, waste, or water programs
28-20    within the commission's jurisdiction and whether an affected
28-21    association is entitled to standing in contested case hearings.
28-22          (b)  At the time an application for a permit or license under
28-23    this code is filed with the executive director and is
28-24    administratively complete, the commission shall give notice of the
28-25    application to any person who may be affected by the granting of
28-26    the permit or license.
28-27          (c)  At the time an application for any formal action by the
 29-1    commission that will affect lands dedicated to the permanent school
 29-2    fund is filed with the executive director or the commission and is
 29-3    administratively complete, the commission shall give notice of the
 29-4    application to the School Land Board.  Notice shall be delivered by
 29-5    certified mail, return receipt requested, addressed to the deputy
 29-6    commissioner of the asset management division of the General Land
 29-7    Office.  Delivery is not complete until the return receipt is
 29-8    signed by the deputy commissioner of the asset management division
 29-9    of the General Land Office and returned to the commission.
29-10          (d)  The commission shall adopt rules for the notice required
29-11    by this section.
29-12          (e)  The notice must state:
29-13                (1)  the identifying number given the application by
29-14    the commission;
29-15                (2)  the type of permit or license sought under the
29-16    application;
29-17                (3)  the name and address of the applicant;
29-18                (4)  the date on which the application was submitted;
29-19    and
29-20                (5)  a brief summary of the information included in the
29-21    permit application.
29-22          (f)  The notice to the School Land Board under this section
29-23    shall additionally:
29-24                (1)  state the location of the permanent school fund
29-25    land to be affected; and
29-26                (2)  describe any foreseeable impact or effect of the
29-27    commission's action on permanent school fund land.
 30-1          (g)  A formal action or ruling by the commission on an
 30-2    application affecting permanent school fund land that is made
 30-3    without the notice required by this section is voidable by the
 30-4    School Land Board as to any permanent school fund lands affected by
 30-5    the action or ruling.
 30-6          SECTION 2.03. Sections 11.085(f)-(i), Water Code, are
 30-7    transferred to new Subchapter O, Chapter 5, Water Code,
 30-8    redesignated as Section 5.652, and amended to read as follows:
 30-9          Sec. 5.652.  NOTICE OF APPLICATION FOR INTERBASIN TRANSFER.
30-10    (a) [(f)]  Notice of an application for an interbasin transfer
30-11    under Section 11.085 shall be mailed to the following:
30-12                (1)  all holders of permits, certified filings, or
30-13    certificates of adjudication located in whole or in part in the
30-14    basin of origin;
30-15                (2)  each county judge of a county located in whole or
30-16    in part in the basin of origin;
30-17                (3)  each mayor of a city with a population of 1,000 or
30-18    more located in whole or in part in the basin of origin; [and]
30-19                (4)  all groundwater conservation districts located in
30-20    whole or in part in the basin of origin; and
30-21                (5)  each state legislator in both basins.
30-22          (b) [(g)]  The applicant shall cause the notice of
30-23    application for an interbasin transfer to be published once a week
30-24    for two consecutive weeks in one or more newspapers having general
30-25    circulation in each county located in whole or in part in the basin
30-26    of origin or the receiving basin.  The published notice may not be
30-27    smaller than 96.8 square centimeters or 15 square inches with the
 31-1    shortest dimension at least 7.6 centimeters or three inches.  The
 31-2    notice of application and public meetings shall be combined in the
 31-3    mailed and published notices.
 31-4          (c) [(h)]  The notice of application must state how a person
 31-5    may obtain the information described by Section 11.085(b)
 31-6    [Subsection (b) of this section].
 31-7          (d) [(i)]  The applicant shall pay the cost of notice
 31-8    required to be provided under this section.  The commission by rule
 31-9    may establish procedures for payment of those costs.
31-10          SECTION 2.04. Sections 11.132(a)-(c), Water Code, are
31-11    transferred to new Subchapter O, Chapter 5, Water Code,
31-12    redesignated as Section 5.653, and amended to read as follows:
31-13          Sec. 5.653.  NOTICE OF PROPOSED APPROPRIATION OF WATER. (a)
31-14    Notice shall be given to the persons who in the judgment of the
31-15    commission may be affected by an application for authorization to
31-16    appropriate unappropriated state water under Chapter 11, including
31-17    those persons listed in Section 5.654(b) [Subdivision (2),
31-18    Subsection (d), of this section.  The commission, on the motion of
31-19    a commissioner or on the request of the executive director or any
31-20    affected person, shall hold a public hearing on the application].
31-21          (b)  If the proposed use is for irrigation, the commission
31-22    shall include in the notice a general description of the location
31-23    and area of the land to be irrigated.
31-24          (c)  In the notice, the commission shall:
31-25                (1)  state the name and address of the applicant;
31-26                (2)  state the date the application was filed;
31-27                (3)  state the purpose and extent of the proposed
 32-1    appropriation of water;
 32-2                (4)  identify the source of supply and the place where
 32-3    the water is to be stored or taken or diverted from the source of
 32-4    supply;
 32-5                (5)  specify the time and location where the commission
 32-6    will consider the application; and
 32-7                (6)  give any additional information the commission
 32-8    considers necessary.
 32-9          SECTION 2.05. Sections 11.132(d) and (e), Water Code, are
32-10    transferred to new Subchapter O, Chapter 5, Water Code,
32-11    redesignated as Section 5.654, and amended to read as follows:
32-12          Sec. 5.654.  NOTICE REQUIRED TO OBTAIN AUTHORIZATION TO
32-13    APPROPRIATE WATER WITHOUT HEARING. (a)  Not later [(d) The
32-14    commission may act on the application without holding a public
32-15    hearing if:]
32-16                [(1)  not less] than 30 days before the date of action
32-17    by the commission on an [the] application for authorization to
32-18    appropriate unappropriated state water under Chapter 11 [by the
32-19    commission], the applicant shall publish [has published] the
32-20    commission's notice of the application under Section 5.653 at least
32-21    once in a newspaper regularly published or circulated within the
32-22    section of the state where the source of water is located.[;]
32-23          (b)  Not later [(2)  not less] than 30 days before the date
32-24    of action on the application by the commission, the commission
32-25    shall mail [mails] a copy of the notice by first-class mail,
32-26    postage prepaid, to:
32-27                (1) [(A)]  each claimant or appropriator of water from
 33-1    the source of water supply, the record of whose claim or
 33-2    appropriation has been filed with the commission; and
 33-3                (2) [(B)]  all navigation districts within the river
 33-4    basin concerned[; and]
 33-5                [(3)  within 30 days after the date of the newspaper
 33-6    publication of the commission's notice, a public hearing has not
 33-7    been requested in writing by a commissioner, the executive
 33-8    director, or an affected person who objects to the application].
 33-9          (c) [(e)]  The inadvertent failure of the commission to mail
33-10    a notice under [Subdivision (2),] Subsection (b) [(d), of this
33-11    section] to a navigation district that is not a claimant or
33-12    appropriator of water does not prevent the commission's
33-13    consideration of the application.
33-14          SECTION 2.06. Sections 11.143(e) and (f), Water Code, are
33-15    transferred to new Subchapter O, Chapter 5, Water Code,
33-16    redesignated as Section 5.655, and amended to read as follows:
33-17          Sec. 5.655.  NOTICE OF APPLICATION AND OF HEARING ON
33-18    APPLICATION FOR PERMIT TO USE DOMESTIC AND LIVESTOCK RESERVOIR FOR
33-19    OTHER PURPOSES. (a)  The commission shall give notice of an
33-20    application for a permit to use water from a dam or reservoir
33-21    exempted under Section 11.142 for a purpose other than domestic or
33-22    livestock use as provided by this section.
33-23          (b) [(e)]  In the notice, the commission shall:
33-24                (1)  state the name and post-office address of the
33-25    applicant;
33-26                (2)  state the date the application was filed;
33-27                (3)  state the purpose and extent of the proposed
 34-1    appropriation of water;
 34-2                (4)  identify the source of supply and the place where
 34-3    the water is stored; and
 34-4                (5)  specify the time and place of the hearing.
 34-5          (c) [(f)]  The notice shall be published only once, at least
 34-6    20 days before the date stated in the notice for the hearing on the
 34-7    application, in a newspaper having general circulation in the
 34-8    county where the dam or reservoir is located.  At least 15 days
 34-9    before the date set for the hearing, the commission shall transmit
34-10    a copy of the notice by first-class mail to each person whose claim
34-11    or appropriation has been filed with the commission and whose
34-12    diversion point is downstream from that described in the
34-13    application.
34-14          SECTION 2.07. Section 11.143(d), Water Code, is transferred
34-15    to new Subchapter O, Chapter 5, Water Code, redesignated as Section
34-16    5.656, and amended to read as follows:
34-17          Sec. 5.656.  NOTICE REQUIRED TO OBTAIN A PERMIT WITHOUT
34-18    HEARING TO USE DOMESTIC AND LIVESTOCK RESERVOIR FOR OTHER PURPOSES.
34-19    (a)  Not later [(d)  Except as otherwise specifically provided by
34-20    this subsection, before the commission may approve the application
34-21    and issue the permit, it shall give notice and hold a hearing as
34-22    prescribed by this section.  The commission may act on the
34-23    application without holding a public hearing if:]
34-24                [(1)  not less] than 30 days before the date of action
34-25    by the commission on an [the] application to obtain a permit under
34-26    Section 11.143 to use water from a dam or reservoir exempted under
34-27    Section 11.142 for a purpose other than domestic or livestock use
 35-1    [by the commission], the applicant shall publish [has published]
 35-2    the commission's notice of the application at least once in a
 35-3    newspaper regularly published or circulated within the section of
 35-4    the state where the source of water is located.[;]
 35-5          (b)  Not later [(2)  not less] than 30 days before the date
 35-6    of action on the application by the commission, the commission
 35-7    shall mail [mails] a copy of the notice by first-class mail,
 35-8    postage prepaid, to each person whose claim or appropriation has
 35-9    been filed with the commission and whose diversion point is
35-10    downstream from that described in the application[; and]
35-11                [(3)  within 30 days after the date of the newspaper
35-12    publication of the commission's notice, a public hearing is not
35-13    requested in writing by a commissioner, the executive director, or
35-14    an affected person who objects to the application].
35-15          SECTION 2.08. Section 11.175, Water Code, is transferred to
35-16    new Subchapter O, Chapter 5, Water Code, redesignated as Section
35-17    5.657, and amended to read as follows:
35-18          Sec. 5.657 [11.175].  NOTICE OF CANCELLATION PROCEEDING. (a)
35-19    At least 45 days before the date of a [the] hearing on the proposed
35-20    cancellation of a permit, certified filing, or certificate of
35-21    adjudication under Section 11.176, the commission shall send notice
35-22    of the hearing to the holder of the permit, certified filing, or
35-23    certificate of adjudication being considered for cancellation in
35-24    whole or in part.  Notice shall be sent by certified mail, return
35-25    receipt requested, to the last address shown by the records of the
35-26    commission.  The commission shall also send notice by regular mail
35-27    to all other holders of permits, certified filings, certificates of
 36-1    adjudication, and claims of unadjudicated water rights filed
 36-2    pursuant to Section 11.303 [of this code] in the same watershed.
 36-3          (b)  The commission shall also have the notice of the hearing
 36-4    published once a week for two consecutive weeks, at least 30 days
 36-5    before the date of the hearing, in a newspaper published in each
 36-6    county in which diversion of water from the source of supply was
 36-7    authorized or proposed to be made and in each county in which the
 36-8    water was authorized or proposed to be used, as shown by the
 36-9    records of the commission.  If in any such county no newspaper is
36-10    published, then the notice may be published in a newspaper having
36-11    general circulation in the county.
36-12          SECTION 2.09. Sections 26.022(b) and (c), Water Code, are
36-13    transferred to new Subchapter O, Chapter 5, Water Code,
36-14    redesignated as Section 5.658, and amended to read as follows:
36-15          Sec. 5.658.  NOTICE OF HEARINGS HELD UNDER CHAPTER 26.
36-16    (a)  Except as otherwise provided by Sections 5.501, 5.504, 5.509,
36-17    and 26.176, notice [(b)  Notice] of all hearings held under Chapter
36-18    26 [the hearing] shall be published at least once in a newspaper
36-19    regularly published or circulated in each county where, by virtue
36-20    of the county's geographical relation to the subject matter of the
36-21    hearing, the commission has reason to believe persons reside who
36-22    may be affected by the action that may be taken as a result of the
36-23    hearing.  The date of the publication shall be not less than 20
36-24    days before the date set for the hearing.
36-25          (b) [(c)]  If notice of the hearing is required by Chapter 26
36-26    [this chapter] to be given to a person, the notice shall be served
36-27    personally or mailed not less than 20 days before the date set for
 37-1    the hearing to the person at his last address known to the
 37-2    commission.  If the party is not an individual, the notice may be
 37-3    given to any officer, agent, or legal representative of the party.
 37-4          SECTION 2.10. Sections 26.028(a), (b), and (e), Water Code,
 37-5    are transferred to new Subchapter O, Chapter 5, Water Code,
 37-6    redesignated as Section 5.659, and amended to read as follows:
 37-7          Sec. 5.659.  NOTICE TO AFFECTED PERSONS OF APPLICATION FOR
 37-8    PERMIT, PERMIT AMENDMENT, OR PERMIT RENEWAL UNDER CHAPTER 26. (a)
 37-9    The commission shall give notice [Notice] of an application for a
37-10    permit, permit amendment, or permit renewal under Chapter 26 [shall
37-11    be given] to the persons who in the judgment of the commission may
37-12    be affected by the application, except as provided by this section.
37-13          (b)  For any application involving an average daily discharge
37-14    of five million gallons or more, the notice shall be given:
37-15                (1)  not later than 20 days before the date on which
37-16    the commission acts on the application; and
37-17                (2)  to each county judge in the county or counties
37-18    located within 100 statute miles of the point of discharge who have
37-19    requested in writing that the commission give that notice and
37-20    through which water, into or adjacent to which waste or pollutants
37-21    are to be discharged under the permit, flows after the discharge.
37-22          (c) [(e)]  Notice of an application under Section 26.028(c)
37-23    must [Subsection (d) shall] be mailed to the mayor and health
37-24    authorities for the city or town, and the county judge and health
37-25    authorities for the county in which the waste is or will be
37-26    discharged, at least 10 days before the commission meeting[, and
37-27    they may present information to the commission on the application].
 38-1          SECTION 2.11. Section 26.028(g), Water Code, is transferred
 38-2    to new Subsection O, Chapter 5, Water Code, redesignated as Section
 38-3    5.660, and amended to read as follows:
 38-4          Sec. 5.660.  NOTICE REQUIRED TO OBTAIN PERMIT DECISION
 38-5    WITHOUT HEARING UNDER SECTION 26.028(a). (a)  Not later [(g)  For
 38-6    the purposes of Subsection (c), the commission may act on the
 38-7    application without holding a public hearing if all of the
 38-8    following conditions are met:]
 38-9                [(1)  not less] than 30 days before the date of action
38-10    by the commission on an [the] application for a permit, permit
38-11    amendment, or permit renewal under Chapter 26 [by the commission],
38-12    the applicant shall publish [has published] the commission's notice
38-13    of the application at least once in a newspaper regularly published
38-14    or circulated within each county where the proposed facility or
38-15    discharge is located and in each county affected by the
38-16    discharge.[;]
38-17          (b)  Not later [(2)  not less] than 30 days before the date
38-18    of action on the application by the commission, the applicant shall
38-19    serve or mail [has served or mailed] the commission's notice of the
38-20    application to persons who in the judgment of the commission may be
38-21    affected, including the county judges as required by Section
38-22    5.659(b) [Subsection (b) of this section].  As part of the [his]
38-23    application the applicant shall submit an affidavit which lists the
38-24    names and addresses of the persons who may be affected by the
38-25    application and includes the source of the list[;]
38-26                [(3)  within 30 days after the date of the newspaper
38-27    publication of the commission's notice, neither a commissioner, the
 39-1    executive director, nor an affected person who objects to the
 39-2    application has requested a public hearing].
 39-3          SECTION 2.12. Section 26.040(b), Water Code, is transferred
 39-4    to new Subchapter O, Chapter 5, Water Code, redesignated as Section
 39-5    5.661, and amended to read as follows:
 39-6          Sec. 5.661.  NOTICE OF PROPOSED GENERAL PERMIT TO DISCHARGE
 39-7    WASTE INTO OR ADJACENT TO STATE WATERS. (a) [(b)]  The commission
 39-8    shall publish notice of a proposed general permit to discharge
 39-9    waste into or adjacent to waters in the state under Section 26.040
39-10    in a daily or weekly newspaper of general circulation in the area
39-11    affected by the activity that is the subject of the proposed
39-12    general permit and in the Texas Register.
39-13          (b)  For a statewide general permit, the commission shall
39-14    designate one or more newspapers of statewide or regional
39-15    circulation and shall publish notice of the proposed statewide
39-16    general permit in each designated newspaper in addition to the
39-17    Texas Register.
39-18          (c)  The notice must include an invitation for written
39-19    comments by the public to the commission regarding the proposed
39-20    general permit and shall be published not later than the 30th day
39-21    before the commission adopts the general permit.
39-22          (d)  The commission by rule may require additional notice to
39-23    be given.
39-24          SECTION 2.13. Section 27.018(b), Water Code, is transferred
39-25    to new Subchapter O, Chapter 5, Water Code, redesignated as Section
39-26    5.662, and amended to read as follows:
39-27          Sec. 5.662.  NOTICE OF OPPORTUNITY FOR HEARING ON PERMIT
 40-1    APPLICATION FOR INJECTION WELL TO DISPOSE OF INDUSTRIAL AND
 40-2    MUNICIPAL WASTE.  [(b)]  The commission by rule shall provide for
 40-3    giving notice of the opportunity to request a public hearing on a
 40-4    permit application for an injection well to dispose of industrial
 40-5    and municipal waste under Chapter 27.  The rules for notice shall
 40-6    include provisions for giving notice to local governments and
 40-7    affected persons.  The commission shall define "affected person" by
 40-8    rule.
 40-9          SECTION 2.14. Section 361.063(c), Health and Safety Code, is
40-10    transferred to new Subchapter O, Chapter 5, Water Code,
40-11    redesignated as Section 5.663, and amended to read as follows:
40-12          Sec. 5.663.  NOTICE OF INTENT TO FILE APPLICATION FOR
40-13    HAZARDOUS WASTE PERMIT. [(c)]  If an applicant for a permit for a
40-14    hazardous waste management facility decides to participate in a
40-15    local review committee process under Section 361.063, Health and
40-16    Safety Code, the applicant must file with the commission a notice
40-17    of intent to file an application, setting forth the proposed
40-18    location and type of hazardous waste management facility.  A copy
40-19    of the notice shall be delivered to the county judge of the county
40-20    in which the facility is to be located.  In addition, if the
40-21    proposed facility is to be located in a municipality or the
40-22    extraterritorial jurisdiction of a municipality, a copy of the
40-23    notice shall be delivered to the mayor of the municipality.  [The
40-24    filing of the notice with the commission initiates the
40-25    preapplication review process.]
40-26          SECTION 2.15. Section 361.0665, Health and Safety Code, is
40-27    transferred to new Subchapter O, Chapter 5, Water Code,
 41-1    redesignated as Section 5.664, and amended to read as follows:
 41-2          Sec. 5.664 [361.0665].  NOTICE OF INTENT TO OBTAIN MUNICIPAL
 41-3    SOLID WASTE PERMIT.  (a)  A person who applies for a municipal
 41-4    solid waste permit shall publish notice of intent to obtain a
 41-5    permit under Chapter 361, Health and Safety Code, [this chapter] at
 41-6    least once in a newspaper of the largest general circulation that
 41-7    is published in the county in which the facility is located or
 41-8    proposed to be located.
 41-9          (b)  Notice must include:
41-10                (1)  a description of the location or proposed location
41-11    of the facility;
41-12                (2)  a statement that a person who may be affected by
41-13    the facility or proposed facility is entitled to request a hearing
41-14    from the commission;
41-15                (3)  the manner in which the commission may be
41-16    contacted for further information; and
41-17                (4)  any other information that the commission by rule
41-18    requires.
41-19          (c)  If a newspaper is not published in the county, the
41-20    notice must be published in a newspaper of general circulation in
41-21    the county in which the facility is located or proposed to be
41-22    located and in a newspaper of circulation in the immediate vicinity
41-23    in which the facility is located or proposed to be located as
41-24    defined by commission rule.
41-25          (d)  In addition, the commission shall publish notice in the
41-26    Texas Register.
41-27          SECTION 2.16. New Subchapter O, Chapter 5, Water Code, is
 42-1    amended by adding Section 5.6645 to read as follows:
 42-2          Sec. 5.6645.  PUBLIC MEETING AND NOTICE FOR SOLID WASTE
 42-3    FACILITIES.  (a)  An applicant for a permit under Chapter 361,
 42-4    Health and Safety Code, for a new facility that accepts municipal
 42-5    solid wastes shall hold a public meeting in the county in which the
 42-6    proposed facility is to be located.  The meeting must be held
 42-7    before the 45th day after the date the application is filed.
 42-8          (b)  The applicant shall publish notice of the public meeting
 42-9    at least once each week during the three weeks preceding the
42-10    meeting.  The notice must be published in the newspaper of the
42-11    largest general circulation that is published in the county in
42-12    which the proposed facility is to be located.  If a newspaper is
42-13    not published in the county, the notice must be published in a
42-14    newspaper of general circulation in the county.
42-15          (c)  The applicant shall present to the commission an
42-16    affidavit certifying that the notice was published as required by
42-17    Subsection (b).  The commission's acceptance of the affidavit
42-18    raises a presumption that the  applicant has complied with
42-19    Subsection (b).
42-20          (d)  The published notice may not be smaller than 96.8 square
42-21    centimeters or 15 square inches with the shortest dimension not
42-22    less than 7.5 centimeters or 3 inches.  The notice must contain at
42-23    least the following information:
42-24                (1)  the permit application number;
42-25                (2)  the applicant's name;
42-26                (3)  the proposed location of the facility; and
42-27                (4)  the location and availability of copies of the
 43-1    application.
 43-2          (e)  The applicant shall pay the cost of the notice required
 43-3    under this section.  The commission by rule may establish a
 43-4    procedure for payment of those costs.
 43-5          SECTION 2.17. Sections 361.079(a) and (c), Health and Safety
 43-6    Code, are transferred to new Subchapter O, Chapter 5, Water Code,
 43-7    redesignated as Section 5.665, and amended to read as follows:
 43-8          Sec. 5.665.  NOTICE OF APPLICATION FOR SOLID WASTE OR
 43-9    HAZARDOUS INDUSTRIAL SOLID WASTE PERMIT. (a)  Except as provided by
43-10    Sections  361.080(b) and 361.081(c), Health and Safety Code, the
43-11    commission by rule shall establish procedures for public notice
43-12    [and a public hearing] under Section 361.080 or 361.081, Health and
43-13    Safety Code.
43-14          (b) [(c)]  To improve the timeliness of notice to the public
43-15    of a public hearing under Section 361.080 or 361.081, Health and
43-16    Safety Code, public notice of receipt of the permit application
43-17    shall be provided at the time a permit application is submitted to
43-18    the commission.
43-19          SECTION 2.18. Sections 361.0791(e), (f), and (g),  Health and
43-20    Safety Code, are transferred to new Subchapter O, Chapter 5, Water
43-21    Code, redesignated as Section 5.666, and amended to read as
43-22    follows:
43-23          Sec. 5.666.  NOTICE OF REQUIRED PUBLIC MEETING ON APPLICATION
43-24    FOR PERMIT FOR NEW HAZARDOUS WASTE MANAGEMENT FACILITY. (a) [(e)]
43-25    If a meeting is required under Section 361.0791(a), Health and
43-26    Safety Code [Subsection (a)], not less than once each week during
43-27    the three weeks preceding a public meeting, the applicant shall
 44-1    publish notice of the meeting in the newspaper of the largest
 44-2    general circulation that is published in the county in which the
 44-3    proposed facility is to be located or, if no newspaper is published
 44-4    in the county, in a newspaper of general circulation in the county.
 44-5    The applicant shall provide the commission an affidavit certifying
 44-6    that the notice was given as required by this section.  Acceptance
 44-7    of the affidavit creates a rebuttable presumption that the
 44-8    applicant has complied with this section.
 44-9          (b) [(f)]  The published notice may not be smaller than 96.8
44-10    square centimeters or 15 square inches with the shortest dimension
44-11    at least 7.6 centimeters or three inches and shall contain, at a
44-12    minimum, the following information:
44-13                (1)  the permit application number;
44-14                (2)  the applicant's name;
44-15                (3)  the proposed location of the facility; and
44-16                (4)  the location and availability of copies of the
44-17    permit application.
44-18          (c) [(g)]  The applicant shall pay the cost of notice
44-19    required to be provided under this section.  The commission by rule
44-20    may establish procedures for payment of those costs.
44-21          SECTION 2.19. Sections 361.081(a) and (b), Health and Safety
44-22    Code, are transferred to new Subchapter O, Chapter 5, Water Code,
44-23    redesignated as Section 5.667, and amended to read as follows:
44-24          Sec. 5.667.  NOTICE OF HEARING ON APPLICATION FOR SOLID WASTE
44-25    FACILITY. (a)  The [commission shall require the] applicant shall
44-26    [to] mail notice to each residential or business address located
44-27    within one-half mile of a new solid waste management facility and
 45-1    to each owner of real property located within one-half mile of a
 45-2    new solid waste management facility listed in the real property
 45-3    appraisal records of the appraisal district in which the solid
 45-4    waste management facility is sought to be permitted under Chapter
 45-5    361, Health and Safety Code, as of the date the commission
 45-6    determines the permit application is administratively complete. The
 45-7    notice must be sent by mail and must be deposited with the United
 45-8    States postal service not more than 45 days or less than 30 days
 45-9    before the date of the hearing.
45-10          (b)  The applicant must certify to the commission that the
45-11    mailings were deposited as required by Subsection (a).  Acceptance
45-12    of the certification creates a rebuttable presumption that the
45-13    applicant has complied with this section.  Substantial compliance
45-14    with the notice requirements of Subsection (a) is sufficient for
45-15    the commission to exercise jurisdiction over an application for a
45-16    solid waste facility.
45-17          SECTION 2.20. Section 361.082(c), Health and Safety Code, is
45-18    transferred to new Subchapter O, Chapter 5, Water Code,
45-19    redesignated as Section 5.668, and amended to read as follows:
45-20          Sec. 5.668.  NOTICE OF PUBLIC HEARING ON APPLICATION FOR
45-21    HAZARDOUS WASTE PERMIT. [(c)]  The commission by rule shall
45-22    establish procedures for public notice of a [and] public hearing on
45-23    an application for a hazardous waste permit under Section 361.082,
45-24    Health and Safety Code. At a minimum, the rules shall include the
45-25    public notice requirements set forth in Section 5.667 [361.081].
45-26          SECTION 2.21. Sections 361.089(b) and (c), Health and Safety
45-27    Code, are transferred to new Subchapter O, Chapter 5, Water Code,
 46-1    redesignated as Section 5.669, and amended to read as follows:
 46-2          Sec. 5.669.  NOTICE REGARDING DENIAL OR AMENDMENT OF SOLID
 46-3    WASTE PERMIT. (a)  The [(b)  Except as provided by Section 361.110,
 46-4    the] commission shall notify each governmental entity listed under
 46-5    Section 361.067, Health and Safety Code, regarding possible
 46-6    commission action to deny or amend a solid waste permit under
 46-7    Section 361.089, Health and Safety Code [and provide an opportunity
 46-8    for a hearing to the permit holder or applicant and persons
 46-9    affected.  The commission may also hold a hearing on its own
46-10    motion].
46-11          (b) [(c)]  The commission by rule shall establish procedures
46-12    for public notice of [and] any public hearing on the denial or
46-13    amendment of a solid waste permit under Section 361.089, Health and
46-14    Safety Code [this section].
46-15          SECTION 2.22. Section 382.017(b), Health and Safety Code, is
46-16    transferred to Subchapter O, Chapter 5, Water Code, redesignated as
46-17    Section 5.670, and amended to read as follows:
46-18          Sec. 5.670.  NOTICE OF HEARING ON ADOPTION OF STATEWIDE RULE
46-19    RELATING TO AIR POLLUTION. [(b)]  If a [the] rule adopted under
46-20    Section 382.017, Health and Safety Code, will have statewide
46-21    effect, notice of the date, time, place, and purpose of the hearing
46-22    shall be published one time at least 20 days before the scheduled
46-23    date of the hearing in at least three newspapers, the combined
46-24    circulation of which will, in the commission's judgment, give
46-25    reasonable circulation throughout the state.  If the rule will have
46-26    effect in only a part of the state, the notice shall be published
46-27    one time at least 20 days before the scheduled date of the hearing
 47-1    in a newspaper of general circulation in the area to be affected.
 47-2          SECTION 2.23. Section 382.0516, Health and Safety Code, is
 47-3    transferred to new Subchapter O, Chapter 5, Water Code,
 47-4    redesignated as Section 5.671, and amended to read as follows:
 47-5          Sec. 5.671 [382.0516].  NOTICE TO STATE SENATOR AND
 47-6    REPRESENTATIVE OF RECEIPT OF PERMIT APPLICATION FOR A FACILITY THAT
 47-7    MAY EMIT AIR CONTAMINANTS.  On receiving an application under
 47-8    Chapter 382, Health and Safety Code, for a construction permit, a
 47-9    special permit, or an operating permit for a facility that may emit
47-10    air contaminants, the commission shall send notice of the
47-11    application to the state senator and representative who represent
47-12    the area in which the facility is or will be located.
47-13          SECTION 2.24.  Section 382.055(c), Health and Safety Code, is
47-14    transferred to new Subchapter O, Chapter 5, Water Code,
47-15    redesignated as Section 5.672, and amended to read as follows:
47-16          Sec. 5.672.  NOTICE TO PERMIT HOLDER OF REVIEW AND RENEWAL OF
47-17    PRECONSTRUCTION PERMIT. [(c)]  Not less than 180 days before the
47-18    date on which an [the renewal] application for renewal of a
47-19    preconstruction permit is due under Section 382.055, Health and
47-20    Safety Code, the commission shall provide written notice to the
47-21    permit holder, by registered or certified mail, that the permit is
47-22    scheduled for review in accordance with this section.  The notice
47-23    must include a description of the procedure for filing a renewal
47-24    application and the information to be included in the application.
47-25          SECTION 2.25. Sections 382.056(a)-(c), (g), and (i), Health
47-26    and Safety Code, are transferred to new Subchapter O, Chapter 5,
47-27    Water Code, redesignated as Section 5.673, and amended to read as
 48-1    follows:
 48-2          Sec. 5.673.  NOTICE OF INTENT TO OBTAIN PRECONSTRUCTION
 48-3    PERMIT OR PERMIT REVIEW. (a)  An applicant for a permit under
 48-4    Section 382.0518, Health and Safety Code, or a permit renewal
 48-5    review under Section 382.055, Health and Safety Code, shall publish
 48-6    notice of intent to obtain the permit or permit review not later
 48-7    than the 30th day after the date the commission determines the
 48-8    application to be administratively complete.  The commission by
 48-9    rule shall require an applicant for a federal operating permit
48-10    under Section 382.054, Health and Safety Code, to publish notice of
48-11    intent to obtain a permit or permit review consistent with federal
48-12    requirements and with the requirements of Subsection (b). The
48-13    applicant shall publish the notice at least once in a newspaper of
48-14    general circulation in the municipality in which the facility or
48-15    federal source is located or is proposed to be located or in the
48-16    municipality nearest to the location or proposed location of the
48-17    facility or federal source.  If the elementary or middle school
48-18    nearest to the facility or proposed facility provides a bilingual
48-19    education program as required by Subchapter B, Chapter 29,
48-20    Education Code, the applicant shall also publish the notice at
48-21    least once in an additional publication of general circulation in
48-22    the municipality or county in which the facility is located or
48-23    proposed to be located that is published in the language taught in
48-24    the bilingual education program.  This requirement is waived if
48-25    such a publication does not exist or if the publisher refuses to
48-26    publish the notice.  The commission by rule shall prescribe the
48-27    form and content of the notice and when notice must be published.
 49-1    The commission may require publication of additional notice.  The
 49-2    commission by rule shall prescribe alternative procedures for
 49-3    publication of the notice in a newspaper if the applicant is a
 49-4    small business stationary source as defined by Section 382.0365,
 49-5    Health and Safety Code, and will not have a significant effect on
 49-6    air quality.  The alternative procedures must be cost-effective
 49-7    while ensuring adequate notice.  Notice required to be published
 49-8    under this section shall only be required to be published in the
 49-9    United States.
49-10          (b)  The notice must include:
49-11                (1)  a description of the location or proposed location
49-12    of the facility or federal source;
49-13                (2)  the location at which a copy of the application is
49-14    available for review and copying as provided by Section 382.056(b),
49-15    Health and Safety Code [Subsection (d)];
49-16                (3)  a description, including a telephone number, of
49-17    the manner in which the commission may be contacted for further
49-18    information;
49-19                (4)  a description, including a telephone number, of
49-20    the manner in which the applicant may be contacted for further
49-21    information;
49-22                (5)  a description of the procedural rights and
49-23    obligations of the public, printed in a font style or size that
49-24    clearly provides emphasis and distinguishes it from the remainder
49-25    of the notice, that includes a statement that a person who may be
49-26    affected by emissions of air contaminants from the facility,
49-27    proposed facility, or federal source is entitled to request a
 50-1    hearing from the commission;
 50-2                (6)  a description of the procedure by which a person
 50-3    may be placed on a mailing list in order to receive additional
 50-4    information about the application;
 50-5                (7)  the time and location of any public meeting to be
 50-6    held under Section 382.056(c), Health and Safety Code [Subsection
 50-7    (e)]; and
 50-8                (8)  any other information the commission by rule
 50-9    requires.
50-10          (c)  At the site of a facility, proposed facility, or federal
50-11    source for which an applicant is required to publish notice under
50-12    this section, the applicant shall place a sign declaring the filing
50-13    of an application for a permit or permit review for a facility at
50-14    the site and stating the manner in which the commission may be
50-15    contacted for further information.  The commission shall adopt any
50-16    rule necessary to carry out this subsection.
50-17          (d) [(g)]  If, in response to the notice published under
50-18    Subsection (a) for a permit under Section 382.0518, Health and
50-19    Safety Code, or a permit renewal review under Section 382.055,
50-20    Health and Safety Code, a person requests during the period
50-21    provided by commission rule that the commission hold a public
50-22    hearing and the request is not withdrawn before the date the
50-23    preliminary decision is issued, the applicant shall publish notice
50-24    of the preliminary decision in a newspaper, and the commission
50-25    shall seek public comment on the preliminary decision[.  The
50-26    commission shall consider the request for public hearing under the
50-27    procedures provided by Subsections (i)-(n).  The commission may not
 51-1    seek further public comment or hold a public hearing under the
 51-2    procedures provided by Subsections (i)-(n) in response to a request
 51-3    for a public hearing on an amendment, modification, or renewal that
 51-4    would not result in an increase in allowable emissions and would
 51-5    not result in the emission of an air contaminant not previously
 51-6    emitted].
 51-7          (e) [(i)]  The commission by rule shall establish the form
 51-8    and content of the notice, the manner of publication, and the
 51-9    duration of the public comment period.  The notice must include:
51-10                (1)  the information required by Subsection (b);
51-11                (2)  a summary of the preliminary decision;
51-12                (3)  the location at which a copy of the preliminary
51-13    decision is available for review and copying as provided by Section
51-14    382.056(g), Health and Safety Code [Subsection (j)];
51-15                (4)  a description of the manner in which comments
51-16    regarding the preliminary decision may be submitted; and
51-17                (5)  any other information the commission by rule
51-18    requires.
51-19          (f)  The department shall establish rules to ensure that a
51-20    permit applicant complies with the notice requirement under
51-21    Subsection (a).
51-22          (g)  This section does not apply to:
51-23                (1)  the relocation or change of location of a portable
51-24    facility to a site where a facility permitted by the commission is
51-25    located if no portable facility has been located at the proposed
51-26    site at any time during the previous two years; or
51-27                (2)  a facility located temporarily in the
 52-1    right-of-way, or contiguous to the right-of-way, of a public works
 52-2    project.
 52-3          SECTION 2.26. Section 382.0561(f), Health and Safety Code, is
 52-4    transferred to new Subchapter O, Chapter 5, Water Code,
 52-5    redesignated as Section 5.674, and amended to read as follows:
 52-6          Sec. 5.674.  NOTICE OF COMMENT PERIOD AND HEARING ON FEDERAL
 52-7    OPERATING PERMIT. [(f)]  Notice of the public comment period and
 52-8    opportunity for a hearing on an application for issuance, revision,
 52-9    reopening, or renewal of a federal operating permit under Section
52-10    382.0561, Health and Safety Code, [this section] shall be published
52-11    in accordance with Section 5.673 [382.056].
52-12          SECTION 2.27. Section 382.0562, Health and Safety Code, is
52-13    transferred to new Subchapter O, Chapter 5, Water Code,
52-14    redesignated as Section 5.675, and amended to read as follows:
52-15          Sec. 5.675 [382.0562].  NOTICE OF DECISION ON FEDERAL
52-16    OPERATING PERMIT. (a)  The commission or its designee shall send
52-17    notice of a proposed final action on a federal operating permit
52-18    under Section 382.0542, Health and Safety Code, by first-class mail
52-19    to the applicant and all persons who comment during the public
52-20    comment period or at the public hearing.  The notice shall include
52-21    a response to any comment submitted during the public comment
52-22    period and shall identify any change in the conditions of the draft
52-23    permit and the reasons for the change.
52-24          (b)  The notice required by Subsection (a) shall:
52-25                (1)  state that any person affected by the decision of
52-26    the commission or its designee may petition the administrator in
52-27    accordance with Section 382.0563, Health and Safety Code, and rules
 53-1    adopted under that section;
 53-2                (2)  state the date by which the petition must be
 53-3    filed; and
 53-4                (3)  explain the petition process.
 53-5          SECTION 2.28. New Subchapter O, Chapter 5, Water Code, is
 53-6    amended by adding Sections 5.676 and 5.677 to read as follows:
 53-7          Sec. 5.676.  NOTICE OF HEARING ON ISSUANCE OR RENEWAL OF
 53-8    LICENSE TO DISPOSE OF LOW-LEVEL RADIOACTIVE WASTE. (a)  Notice of a
 53-9    hearing on the issuance or renewal of a license to dispose of
53-10    low-level radioactive waste under Section 401.114, Health and
53-11    Safety Code, shall be given as provided by this section and Section
53-12    401.114, Health and Safety Code.
53-13          (b)  In addition to other notice, the commission shall
53-14    publish notice of the hearing in the manner provided by Chapter
53-15    313, Government Code, in the county in which the proposed facility
53-16    is to be located.  The notice shall state the subject and the time,
53-17    place, and date of the hearing.
53-18          (c)  The commission shall mail, by certified mail in the
53-19    manner provided by the commission's rules, written notice to each
53-20    person who owns property adjacent to the proposed site.  The notice
53-21    must be mailed not later than the 31st day before the date of the
53-22    hearing and must include the same information that is in the
53-23    published notice.  If true, the commission or the applicant must
53-24    certify that the notice was mailed as required by this subsection,
53-25    and at the hearing the certificate is conclusive evidence of the
53-26    mailing.
53-27          Sec. 5.677.  NOTICE OF AMENDMENT TO LICENSE TO DISPOSE OF
 54-1    LOW-LEVEL RADIOACTIVE WASTE. (a)  The commission shall publish
 54-2    notice of an amendment to a license to dispose of low-level
 54-3    radioactive waste under Section 401.116, Health and Safety Code,
 54-4    once in the Texas Register and in a newspaper of general
 54-5    circulation in the county in which the licensed activity is located
 54-6    and shall give notice to any person who has notified the agency, in
 54-7    advance, of the desire to receive notice of proposed amendment of
 54-8    the license.
 54-9          (b)  Notice under this section must include:
54-10                (1)  the identity of the license holder;
54-11                (2)  identification of the license; and
54-12                (3)  a short and plain statement of the license
54-13    amendment's substance.
54-14                        ARTICLE 3.  FEES AND RATES
54-15          SECTION 3.01. Chapter 5, Water Code, is amended by adding a
54-16    heading for Subchapter P to read as follows:
54-17                            SUBCHAPTER P.  FEES
54-18          SECTION 3.02. Section 5.235, Water Code, is transferred to
54-19    new Subchapter P, Chapter 5, Water Code, redesignated as Section
54-20    5.701, and amended to read as follows:
54-21          Sec. 5.701 [5.235].  FEES. (a)  The executive director shall
54-22    charge and collect the fees prescribed by law.  The executive
54-23    director shall make a record of fees prescribed when due and shall
54-24    render an account to the person charged with the fees.  Each fee is
54-25    a separate charge and is in addition to other fees unless provided
54-26    otherwise.  Except as otherwise provided, a fee assessed and
54-27    collected under this section shall be deposited to the credit of
 55-1    the water resource management account.
 55-2                (1)  Notwithstanding other provisions, the commission
 55-3    by rule may establish due dates, schedules, and procedures for
 55-4    assessment, collection, and remittance of fees due the commission
 55-5    to ensure the cost-effective administration of revenue collection
 55-6    and cash management programs.
 55-7                (2)  Notwithstanding other provisions, the commission
 55-8    by rule shall establish uniform and consistent requirements for the
 55-9    assessment of penalties and interest for late payment of fees owed
55-10    the state under the commission's jurisdiction.  Penalties and
55-11    interest established under this section shall not exceed rates
55-12    established for delinquent taxes under Sections 111.060 and
55-13    111.061, Tax Code.
55-14          (b)  Except as otherwise provided by law, the fee for filing
55-15    an application or petition is $100 plus the cost of any required
55-16    notice.  The fee for a by-pass permit shall be set by the
55-17    commission at a reasonable amount to recover costs, but not less
55-18    than $100.
55-19          (c)  The fee for filing a water permit application is $100
55-20    plus the cost of required notice.
55-21          (d)  The fee for filing an application for fixing or
55-22    adjusting rates is $100 plus the cost of required notice.
55-23          (e)  A person who files with the commission a petition for
55-24    the creation of a water district or addition of sewage and drainage
55-25    powers or a resolution for a water district conversion must pay a
55-26    one-time nonrefundable application fee.  The commission by rule may
55-27    establish [set] the application fee in an amount sufficient to
 56-1    cover [not to exceed] the costs of reviewing and processing the
 56-2    application, plus the cost of required notice.  The commission may
 56-3    also use the application fee to cover other costs incurred to
 56-4    protect water resources in this state reasonably related to the
 56-5    activities of any of the persons required to pay a fee under the
 56-6    statutes listed in Subsection (p).  This fee is the only fee that
 56-7    the commission may charge with regard to the processing of an
 56-8    application for creation of a water district, addition of sewage or
 56-9    drainage powers, or conversion under this code.
56-10          (f)  A person who files a bond issue application with the
56-11    commission must pay an application fee set by the commission.  The
56-12    commission by rule may set the application fee in an amount not to
56-13    exceed the costs of reviewing and processing the application, plus
56-14    the cost of required notice.  If the bonds are approved by the
56-15    commission, the seller shall pay to the commission a percentage of
56-16    the bond proceeds not later than the seventh business day after
56-17    receipt of the bond proceeds.  The commission by rule may set the
56-18    percentage of the proceeds in an amount not to exceed 0.25 percent
56-19    of the principal amount of the bonds actually issued. Proceeds of
56-20    the fees shall be used to supplement any other funds available for
56-21    paying expenses of the commission in supervising the various bond
56-22    and construction activities of the districts filing the
56-23    applications.
56-24          (g)  The fee for recording an instrument in the office of the
56-25    commission is $1.25 per page.
56-26          (h)  The fee for the use of water for irrigation is 50 cents
56-27    per acre to be irrigated.
 57-1          (i)  The fee for impounding water, except under Section
 57-2    11.142 of this code, is 50 cents per acre-foot of storage, based on
 57-3    the total holding capacity of the reservoir at normal operating
 57-4    level.
 57-5          (j)  The fee for other uses of water not specifically named
 57-6    in this section is $1 per acre-foot, except that no political
 57-7    subdivision may be required to pay fees to use water for recharge
 57-8    of underground freshwater-bearing sands and aquifers or for
 57-9    abatement of natural pollution.
57-10          (k)  A fee charged under Subsections (h) through (j) of this
57-11    section for one use of water under a permit from the commission may
57-12    not exceed $50,000. The fee for each additional use of water under
57-13    a permit for which the maximum fee is paid may not exceed $10,000.
57-14          (l)  The fees prescribed by Subsections (h) through (j) of
57-15    this section are one-time fees, payable when the application for an
57-16    appropriation is made.   However, if the total fee for a permit
57-17    exceeds $1,000, the applicant shall pay one-half of the fee when
57-18    the application is filed and one-half within 180 days after notice
57-19    is mailed to him that the permit is granted.  If the applicant does
57-20    not pay all of the amount owed before beginning to use water under
57-21    the permit, the permit is annulled.
57-22          (m)  If a permit is annulled, the matter reverts to the
57-23    status of a pending, filed application and, on the payment of use
57-24    fees as provided by Subsections (h) through (l) of this section
57-25    together with sufficient postage fees for mailing notice of
57-26    hearing, the commission shall set the application for hearing and
57-27    proceed as provided by this code.
 58-1          (n)(1)  Each provider of potable water or sewer utility
 58-2    service shall collect a regulatory assessment from each retail
 58-3    customer as follows:
 58-4                      (A)  A public utility as defined in Section
 58-5    13.002 of this code shall collect from each retail customer a
 58-6    regulatory assessment equal to one percent of the charge for retail
 58-7    water or sewer service.
 58-8                      (B)  A water supply or sewer service corporation
 58-9    as defined in Section 13.002 of this code shall collect from each
58-10    retail customer a regulatory assessment equal to one-half of one
58-11    percent of the charge for retail water or sewer service.
58-12                      (C)  A district as defined in Section 49.001 of
58-13    this code that provides potable water or sewer utility service to
58-14    retail customers shall collect from each retail customer a
58-15    regulatory assessment equal to one-half of one percent of the
58-16    charge for retail water or sewer service.
58-17                (2)  The regulatory assessment may be listed on the
58-18    customer's bill as a separate item and shall be collected in
58-19    addition to other charges for utility services.
58-20                (3)  The commission shall use the assessments collected
58-21    under this subsection solely to pay costs and expenses incurred by
58-22    the commission in the regulation of districts, water supply or
58-23    sewer service corporations, and public utilities under Chapter 13,
58-24    Water Code.
58-25                (4)  The commission shall annually use a portion of the
58-26    assessments to provide on-site technical assistance and training to
58-27    public utilities, water supply or sewer service corporations, and
 59-1    districts.  The commission shall contract with others to provide
 59-2    the services.
 59-3                (5)  The commission by rule may establish due dates,
 59-4    collection procedures, and penalties for late payment related to
 59-5    regulatory assessments under this subsection.  The executive
 59-6    director shall collect all assessments from the utility service
 59-7    providers.
 59-8                (6)  The commission shall assess a penalty against a
 59-9    municipality with a population of more than 1.5 million that does
59-10    not provide municipal water and sewer services in an annexed area
59-11    in accordance with Section 43.0565, Local Government Code.  A
59-12    penalty assessed under this paragraph shall be not more than $1,000
59-13    for each day the services are not provided after March 1, 1998, for
59-14    areas annexed before January 1, 1993, or not provided within 4 1/2
59-15    years after the effective date of the annexation for areas annexed
59-16    on or after January 1, 1993.  A penalty collected under this
59-17    paragraph shall be deposited to the credit of the water resource
59-18    management account to be used to provide water and sewer service to
59-19    residents of the city.
59-20                (7)  The regulatory assessment does not apply to water
59-21    that has not been treated for the purpose of human consumption.
59-22          (o)  A fee imposed under Subsection (j) of this section for
59-23    the use of saline tidal water for industrial processes shall be $1
59-24    per acre-foot of water diverted for the industrial process, not to
59-25    exceed a total fee of $5,000.
59-26          (p)  Notwithstanding any other law, fees collected for
59-27    deposit to the water resource management account under the
 60-1    following statutes may be appropriated and used to protect water
 60-2    resources in this state reasonably related to the activities of any
 60-3    of the persons required to pay a fee under:
 60-4                (1)  Subsection (b), to the extent those fees are paid
 60-5    by water districts, and Subsections (e), (f), and (n);
 60-6                (2)  Sections 13.4521 and 13.4522; or
 60-7                (3)  Section 54.037(c).
 60-8          (q)  Notwithstanding any other law, fees collected for
 60-9    deposit to the water resource management account under the
60-10    following statutes may be appropriated and used to protect water
60-11    resources in this state reasonably related to the activities of any
60-12    of the persons required to pay a fee under:
60-13                (1)  Subsections (b) and (c), to the extent those fees
60-14    are collected in connection with water use or water quality
60-15    permits;
60-16                (2)  Subsections (h)-(l);
60-17                (3)  Section 11.138(g);
60-18                (4)  Section 11.145;
60-19                (5)  Section 26.0135(h);
60-20                (6)  Sections 26.0291, 26.044, and 26.0461;
60-21                (7)  Sections 341.041, 366.058, and 366.059, Health and
60-22    Safety Code; or
60-23                (8)  Section 372.002(d), Health and Safety Code.
60-24          SECTION 3.03. New Subchapter P, Chapter 5, Water Code, is
60-25    amended by adding Sections 5.702-5.707 to read as follows:
60-26          Sec. 5.702.  PAYMENT OF FEES REQUIRED WHEN DUE. (a)  A fee
60-27    due the commission under this code or the Health and Safety Code
 61-1    shall be paid on the date the fee is due, regardless of whether the
 61-2    fee is billed by the commission to the person required to pay the
 61-3    fee or is calculated and paid to the commission by the person
 61-4    required to pay the fee.
 61-5          (b)  A person required to pay a fee to the commission may not
 61-6    dispute the assessment of or amount of a fee before the fee has
 61-7    been paid in full.
 61-8          Sec. 5.703.  FEE ADJUSTMENTS. (a)  The commission may not
 61-9    consider adjusting the amount of a fee due the commission under
61-10    this code or the Health and Safety Code:
61-11                (1)  before the fee has been paid in full; or
61-12                (2)  if the request for adjustment is received after
61-13    the first anniversary of the date on which the fee was paid in
61-14    full.
61-15          (b)  A person who pays an amount that exceeds the amount of
61-16    the fee due because the commission incorrectly calculated the fee
61-17    or the person made a duplicate payment may request a refund of the
61-18    excess amount paid before the fourth anniversary of the date on
61-19    which the excess amount was paid.
61-20          (c)  A request for a refund or credit in an amount that
61-21    exceeds $5,000 shall be forwarded for approval to the commission
61-22    fee audit staff, together with an explanation of the grounds for
61-23    the requested refund or credit.  Approval of a refund or credit
61-24    does not prevent the fee audit staff from conducting a subsequent
61-25    audit of the person for whom the refund or credit was approved.
61-26          Sec. 5.704.  NOTICE OF CHANGE IN PAYMENT PROCEDURE. The
61-27    commission shall promptly notify each person required to pay a
 62-1    commission fee under this code or the Health and Safety Code of any
 62-2    change in fee payment procedures.
 62-3          Sec. 5.705.  NOTICE OF VIOLATION. (a)  The commission may
 62-4    issue a notice of violation to a person required to pay a
 62-5    commission fee under this code or the Health and Safety Code for
 62-6    knowingly violating reporting requirements or knowingly calculating
 62-7    the fee in an amount less than the amount actually due.
 62-8          (b)  The executive director may modify audit findings
 62-9    reported by a commission fee auditor only if the executive director
62-10    provides a written explanation showing good cause for the
62-11    modification.
62-12          Sec. 5.706.  PENALTIES AND INTEREST ON DELINQUENT FEES. (a)
62-13    Except as otherwise provided by law, the commission may collect,
62-14    for a delinquent fee due the commission under this code or the
62-15    Health and Safety Code:
62-16                (1)  a penalty in an amount equal to five percent of
62-17    the amount of the fee due, if the fee is not paid on or before the
62-18    day on which the fee is due; and
62-19                (2)  an additional penalty in an amount equal to five
62-20    percent of the amount due, if the fee is not paid on or before the
62-21    30th day after the date on which the fee was due.
62-22          (b)  Unless otherwise required by law interest accrues,
62-23    beginning on the 61st day after the date on which the fee was due,
62-24    on the total amount of fee and penalties that have not been paid on
62-25    or before the 61st day after the date on which the fee was due.
62-26    The yearly interest rate is the rate of interest established for
62-27    delinquent taxes under Section 111.060, Tax Code.
 63-1          (c)  The executive director may modify a penalty or interest
 63-2    on a fee and penalties authorized by this section if the executive
 63-3    director provides a written explanation showing good cause for the
 63-4    modification.
 63-5          (d)  Penalties and interest collected by the commission under
 63-6    this section or under other law, unless that law otherwise
 63-7    provides, shall be deposited to the credit of the fund or account
 63-8    to which the fee is required to be deposited.
 63-9          Sec. 5.707.  TRANSFERABILITY OF APPROPRIATIONS AND FUNDS
63-10    DERIVED FROM FEES. Notwithstanding any law that provides specific
63-11    purposes for which a fund, account, or revenue source may be used
63-12    and expended by the commission and that restricts the use of
63-13    revenues and balances by the commission, the commission may
63-14    transfer a percentage of appropriations from one appropriation item
63-15    to another appropriation item consistent with the General
63-16    Appropriations Act for any biennium authorizing the commission to
63-17    transfer a percentage of appropriations from one appropriation item
63-18    to another appropriation item.  The use of funds in dedicated
63-19    accounts under this section for purposes in addition to those
63-20    provided by statutes restricting their use may not exceed seven
63-21    percent or $20 million, whichever is less, of appropriations to the
63-22    commission in the General Appropriations Act for any biennium.  A
63-23    transfer of $500,000 or more from one appropriation item to another
63-24    appropriation item under this section must be approved by the
63-25    commission at an open meeting subject to Chapter 551, Government
63-26    Code.
63-27          SECTION 3.04. Section 26.0291, Water Code, is amended to read
 64-1    as follows:
 64-2          Sec. 26.0291.  WATER QUALITY [WASTE TREATMENT INSPECTION]
 64-3    FEE. (a)  An annual water quality [waste treatment inspection] fee
 64-4    is imposed on:
 64-5                (1)  each wastewater [permittee for each waste]
 64-6    discharge permit holder for each wastewater discharge permit held;
 64-7    and
 64-8                (2)  each user of water in proportion to the user's
 64-9    water right, through permit or contract, as reflected in the
64-10    commission's records [by the permittee].
64-11          (b)  The fee is to supplement any other funds available to
64-12    pay expenses of the commission related to:
64-13                (1)  [in] inspecting waste treatment facilities; and
64-14                (2)  enforcing the laws of the state and the rules of
64-15    the commission governing:
64-16                      (A)  waste discharge and waste treatment
64-17    facilities, including any expenses [of the commission] necessary
64-18    [to obtain from the federal government delegation of and] to
64-19    administer the national pollutant discharge elimination system
64-20    (NPDES) program;
64-21                      (B)  the water resources of this state, including
64-22    the water quality management programs under Section 26.0135; and
64-23                      (C)  any other water resource management programs
64-24    reasonably related to the activities of the persons required to pay
64-25    a fee under this section.
64-26          (c)  The fee for each year is imposed on each permit or water
64-27    right in effect during any part of the year.  The commission may
 65-1    establish reduced fees for inactive permits.
 65-2          (d)  Irrigation water rights are not subject to a fee under
 65-3    this section.
 65-4          (e) [(b)]  The commission by rule shall adopt a fee schedule
 65-5    for determining the amount of the fee to be charged.  The amount of
 65-6    the fee may not exceed $75,000 [$25,000] for each [waste discharge]
 65-7    permit or contract [held by a permittee].  The maximum annual fee
 65-8    under this section for a wastewater discharge or waste treatment
 65-9    facility that holds a water right for the use of water by the
65-10    facility may not exceed $75,000.  In determining the amount of a
65-11    fee under this section, the commission may consider:
65-12                (1)  waste discharge permitting factors such as flow
65-13    volume, toxic pollutant potential, level of traditional pollutant,
65-14    and heat load;
65-15                (2)  [.  The commission may consider] the designated
65-16    uses and segment ranking classification of the water affected by
65-17    discharges from the permitted facility;
65-18                (3)  [.  Finally, the commission also may consider] the
65-19    expenses necessary to obtain and administer the NPDES program;
65-20                (4)  the reasonable costs of administering the water
65-21    quality management programs under Section 26.0135; and
65-22                (5)  any other reasonable costs necessary to administer
65-23    and enforce a water resource management program reasonably related
65-24    to the activities of the persons required to pay a fee under this
65-25    section.  [The commission shall not adopt any rule designed to
65-26    increase the fee imposed under this section on a treatment works
65-27    owned by a local government, as those terms are defined in Section
 66-1    26.001 of this code, before August 31, 1999.]
 66-2          (f) [(c)]  The fees collected under this section shall be
 66-3    deposited to the credit of the water resource management account,
 66-4    an account in the general revenue fund.
 66-5          (g) [(d)]  The commission may adopt rules necessary to
 66-6    administer this section.
 66-7          (h) [(e)]  A fee collected under this section is in addition
 66-8    to any other fee that may be charged under this chapter.
 66-9          SECTION 3.05. Section 26.0135(h), Water Code, is amended to
66-10    read as follows:
66-11          (h)  The commission shall apportion, assess, and recover the
66-12    reasonable costs of administering the water quality management
66-13    programs under this section [from users of water and wastewater
66-14    permit holders in the watershed according to the records of the
66-15    commission generally in proportion to their right, through permit
66-16    or contract, to use water from and discharge wastewater in the
66-17    watershed.  Irrigation water rights will not be subject to this
66-18    assessment].  The cost to river authorities and others to conduct
66-19    water quality monitoring and assessment shall be subject to prior
66-20    review and approval by the commission as to methods of allocation
66-21    and total amount to be recovered.  The commission shall adopt rules
66-22    to supervise and implement the water quality monitoring,
66-23    assessment, and associated costs.  The rules shall ensure that
66-24    water users and wastewater dischargers do not pay excessive
66-25    amounts, [that program funds are equitably apportioned among
66-26    basins,] that a river authority may recover no more than the actual
66-27    costs of administering the water quality management programs called
 67-1    for in this section, and that no municipality shall be assessed the
 67-2    cost for any efforts under this section that duplicate water
 67-3    quality management activities described in Section 26.177 of this
 67-4    chapter.  [The rules concerning the apportionment and assessment of
 67-5    reasonable costs shall provide for a recovery of not more than
 67-6    $5,000,000 annually.  Costs recovered by the commission are to be
 67-7    deposited to the credit of the water resource management account
 67-8    and may be used only to accomplish the purposes of this section.
 67-9    The commission may apply not more than 10 percent of the costs
67-10    recovered annually toward the commission's overhead costs for the
67-11    administration of this section and the implementation of regional
67-12    water quality assessments.  The commission, with the assistance and
67-13    input of each river authority, shall file a written report
67-14    accounting for the costs recovered under this section with the
67-15    governor, the lieutenant governor, and the speaker of the house of
67-16    representatives on or before December 1 of each even-numbered
67-17    year.]
67-18          SECTION 3.06. Section 26.0135(j), Water Code, is repealed.
67-19          SECTION 3.07. Section 341.041(a), Health and Safety Code, is
67-20    amended to read as follows:
67-21          (a)  The commission by rule may charge fees to a person who
67-22    owns, operates, or maintains a public drinking water supply system
67-23    [to recover the costs of public drinking water supply system
67-24    programs or services authorized by this subchapter or performed
67-25    pursuant to the requirements of the federal Safe Drinking Water Act
67-26    (42 U.S.C. Section 300f et seq.)].  The commission may establish a
67-27    schedule of fees.  The amount of the fees must be sufficient to
 68-1    cover [may not exceed] the reasonable costs of administering the
 68-2    programs and services in this subchapter or the federal Safe
 68-3    Drinking Water Act (42 U.S.C. Section 300f et seq.).  Among other
 68-4    factors, the commission shall consider equity among persons
 68-5    required to pay the fees as a factor in determining the amount of
 68-6    the fees.  The commission may also use the fees to cover any other
 68-7    costs incurred to protect water resources in this state reasonably
 68-8    related to the activities of any of the persons required to pay a
 68-9    fee under the statutes listed in Section 5.701(q), Water Code.
68-10          SECTION 3.08. Section 366.058(a), Health and Safety Code, is
68-11    amended to read as follows:
68-12          (a)  The commission by rule shall establish and collect a
68-13    reasonable permit fee to cover the cost of issuing permits under
68-14    this chapter and administering the permitting system.  The
68-15    commission may also use the fee to cover any other costs incurred
68-16    to protect water resources in this state reasonably related to the
68-17    activities of any of the persons required to pay a fee under the
68-18    statutes listed in Section 5.701(q), Water Code.
68-19          SECTION 3.09. Section 366.059(b), Health and Safety Code, is
68-20    amended to read as follows:
68-21          (b)  The commission may assess a charge-back fee to a local
68-22    governmental entity for which the commission issues permits for
68-23    administrative costs relating to the permitting function [that are
68-24    not covered by the permit fees collected].  The commission may also
68-25    use the fee to cover other costs incurred to protect water
68-26    resources in this state reasonably related to the activities of any
68-27    of the persons required to pay a fee under the statutes listed in
 69-1    Section 5.701(q), Water Code.
 69-2          SECTION 3.10.  Section 13.187(a), Water Code, is amended to
 69-3    read as follows:
 69-4          (a)  A utility may not make changes in its rates except by
 69-5    delivering a statement of intent to each ratepayer and with the
 69-6    regulatory authority having original jurisdiction at least 90 [30]
 69-7    days before the effective date of the proposed change.  The
 69-8    effective date of the new rates must be the first day of a billing
 69-9    period, and the new rates may not apply to service received before
69-10    the effective date of the new rates.  The statement of intent must
69-11    include the information required by the regulatory authority's
69-12    rules.  A copy of the statement of intent shall be mailed or
69-13    delivered to the appropriate offices of each affected municipality,
69-14    and to any other affected persons as required by the regulatory
69-15    authority's rules.  When the statement of intent is delivered, the
69-16    utility shall file with the regulatory authority an application to
69-17    change rates.  The application must include information the
69-18    regulatory authority requires by rule.  If the utility fails to
69-19    provide within a reasonable time after the application is filed the
69-20    necessary documentation or other evidence that supports the costs
69-21    and expenses that are shown in the application, the regulatory
69-22    authority may disallow the nonsupported expenses.  If the
69-23    application or the statement of intent is not substantially
69-24    complete or does not comply with the regulatory authority's rules,
69-25    it may be rejected and the effective date of the rate change may be
69-26    suspended until a properly completed application is accepted by the
69-27    regulatory authority and a proper statement of intent is provided.
 70-1    The commission may also suspend the effective date of any rate
 70-2    change if the utility does not have a certificate of public
 70-3    convenience and necessity or a completed application for a
 70-4    certificate or to transfer a certificate pending before the
 70-5    commission or if the utility is delinquent in paying the assessment
 70-6    and any applicable penalties or interest required by Section
 70-7    5.701(n) [5.235(n)] of this code.
 70-8                 ARTICLE 4.  PERFORMANCE-BASED REGULATION
 70-9          SECTION 4.01. Chapter 5, Water Code, is amended by adding
70-10    Subchapter Q to read as follows:
70-11                SUBCHAPTER Q.  PERFORMANCE-BASED REGULATION
70-12          Sec. 5.751.  DEFINITIONS. In this subchapter:
70-13                (1)  "Flexible permitting" means the issuance of a
70-14    flexible permit that allows for physical or operational changes as
70-15    provided by commission rule.
70-16                (2)  "Innovative regulatory program" includes a program
70-17    required by statute or developed by commission rule.
70-18                (3)  "Permit" includes a license, certificate,
70-19    registration, approval, or other form of authorization issued by
70-20    the commission under this code or the Health and Safety Code.
70-21          Sec. 5.752.  REGULATORY TIERS AND PERFORMANCE INCENTIVES. (a)
70-22    In this section, "environmental regulations" include:
70-23                (1)  federal and state laws that regulate environmental
70-24    matters;
70-25                (2)  rules adopted or orders issued under federal or
70-26    state law; and
70-27                (3)  terms of a permit or other authorization issued by
 71-1    the commission or another agency with environmental regulatory
 71-2    authority.
 71-3          (b)  The commission shall develop a strategically directed
 71-4    regulatory structure based on incentives and compliance
 71-5    performance.  To implement this regulatory structure, the
 71-6    commission by rule shall establish regulatory tiers and performance
 71-7    incentives in which relative levels of compliance with
 71-8    environmental regulations are used to determine eligibility for
 71-9    participation in innovative regulatory programs.
71-10          (c)  The rules must define the regulatory tiers in a manner
71-11    adequate to distinguish among:
71-12                (1)  poor performers, or regulated entities with a
71-13    continual or pervasive disregard of environmental regulations;
71-14                (2)  average performers, or regulated entities that
71-15    generally comply with environmental regulations; and
71-16                (3)  high performers, or regulated entities that have
71-17    an above-average compliance record and in addition voluntarily
71-18    implement environmentally sound practices beyond those required by
71-19    environmental regulations.
71-20          (d)  The rules must prescribe the programs and incentives
71-21    available to regulated entities within each regulatory tier and
71-22    must be revised as necessary to include new programs  or incentives
71-23    as they are developed.
71-24          (e)  The commission shall determine a regulated entity's
71-25    compliance history, for purposes of eligibility to participate in
71-26    an innovative regulatory program or incentive, according to the
71-27    method developed under Section 5.754.
 72-1          Sec. 5.753.  COORDINATION OF INNOVATIVE REGULATORY PROGRAMS
 72-2    AND INCENTIVES. (a)  The commission shall designate a single point
 72-3    of contact within the agency to coordinate all innovative
 72-4    regulatory programs and incentives.
 72-5          (b)  The designated coordinator shall:
 72-6                (1)  inventory, coordinate, market, and evaluate all
 72-7    innovative regulatory programs and incentives;
 72-8                (2)  provide information and technical assistance to
 72-9    regulated entities participating in or interested in participating
72-10    in those programs and incentives; and
72-11                (3)  work with the pollution prevention advisory
72-12    committee to assist the commission in integrating the concepts of
72-13    regulatory innovation and incentive- and performance-based
72-14    regulation into its daily operations, including:
72-15                      (A)  program administration;
72-16                      (B)  strategic planning; and
72-17                      (C)  staff training.
72-18          Sec. 5.754.  COMPONENTS OF AND STANDARDS FOR EVALUATING
72-19    COMPLIANCE HISTORY. (a)  The commission by rule shall develop a
72-20    single set of components of and standards for evaluating the
72-21    compliance history of an applicant or permit holder and shall
72-22    consistently apply those components and standards in evaluating
72-23    compliance history in all permitting and enforcement matters under
72-24    the commission's jurisdiction.
72-25          (b)  In developing the components and standards required by
72-26    Subsection (a), the commission:
72-27                (1)  shall include, among other factors to be
 73-1    considered:
 73-2                      (A)  notices of violations and enforcement
 73-3    actions, enforcement orders, orders issued under Section 7.070,
 73-4    court judgments, and criminal convictions of this state and the
 73-5    federal government relating to compliance with an environmental
 73-6    law, regulation, permit, order, consent decree, or other regulation
 73-7    within the jurisdiction of the commission or the United States
 73-8    Environmental Protection Agency;
 73-9                      (B)  a determination of whether a violation is
73-10    significant or minor, according to commission rules;
73-11                      (C)  the period to be considered when determining
73-12    a regulated entity's compliance history; and
73-13                      (D)  enforcement orders, court judgments, and
73-14    criminal convictions under environmental laws in other states, to
73-15    the extent readily available to the commission; and
73-16                (2)  shall specify that a repeat violator is an entity
73-17    that has more than one violation of the same or similar type within
73-18    the period established by the commission under Subdivision (1)(C).
73-19          (c)  The commission shall consider changes in ownership when
73-20    tracking the compliance history of a regulated entity.
73-21          Sec. 5.755.  REPORTS.  (a)  The commission shall collect data
73-22    on the results of inspections conducted by the commission.
73-23          (b)  The commission shall collect data on and make available
73-24    to the public on the Internet:
73-25                (1)  the number and percentage of all violations
73-26    committed by repeat offenders;
73-27                (2)  the number and percentage of enforcement orders
 74-1    issued by the commission that are issued to entities that have been
 74-2    the subject of a previous enforcement order; and
 74-3                (3)  whether the violations are significant or minor,
 74-4    as defined by commission rule.
 74-5          (c)  The commission annually shall prepare a comparative
 74-6    analysis of data evaluating the performance, over time, of the
 74-7    commission and of entities regulated by the commission.
 74-8          (d)  The commission must include in the annual enforcement
 74-9    report required by Section 5.123, as added by Chapters 304 and
74-10    1082, Acts of the 75th Legislature, Regular Session, 1997, the
74-11    comparative performance analysis required by Subsection (b),
74-12    organized by region and by regulated medium.
74-13          Sec. 5.756.  PERFORMANCE ASSESSMENT FOR PROGRAM ELIGIBILITY.
74-14    (a)  The commission by rule shall develop a method of performance
74-15    assessment that differentiates persons regulated by the commission
74-16    according to their compliance histories.
74-17          (b)  The commission shall use the method of performance
74-18    assessment developed under Subsection (a) in conjunction with the
74-19    regulatory structure developed under Section 5.752 to determine
74-20    eligibility for participation in incentive-based programs and other
74-21    innovative regulatory programs developed by the commission.
74-22          (c)  The commission by rule shall establish methods of
74-23    assessing the performance of regulated entities not routinely
74-24    inspected for compliance.  The methods may include requiring a
74-25    compliance inspection to determine an entity's eligibility for
74-26    participation in a program or incentive that requires an
74-27    above-average degree of compliance.
 75-1          (d)  Commission rules shall provide that a regulated person
 75-2    with a compliance history that is unacceptable under this section
 75-3    and Section 5.752 is not eligible to participate in innovative
 75-4    regulatory programs or incentives.
 75-5          Sec. 5.757.  PERFORMANCE ASSESSMENT FOR PERMITTING AND
 75-6    ENFORCEMENT DECISIONS. (a)  The commission by rule shall develop
 75-7    criteria and procedures for the use of compliance history in
 75-8    commission decisions regarding:
 75-9                (1)  the issuance, renewal, or denial of a permit or
75-10    other authorization issued by the commission; and
75-11                (2)  enforcement matters under the commission's
75-12    jurisdiction.
75-13          (b)  The criteria and procedures shall:
75-14                (1)  specify the circumstances in which the commission
75-15    shall revoke the permit of a repeat violator; and
75-16                (2)  establish enhanced administrative penalties for
75-17    repeat violators.
75-18          Sec. 5.758.  ANNOUNCED INSPECTIONS. (a)  The commission may
75-19    not announce an inspection of a facility owned or operated by a
75-20    person regulated by the commission unless the person has
75-21    established a high performance compliance history that qualifies
75-22    the person for announced inspections under the procedures and
75-23    standards developed under Sections 5.752 and 5.756.
75-24          (b)  The commission shall track whether inspections are
75-25    announced or unannounced and shall include the information in the
75-26    report required by Section 5.123, as added by Chapters 304 and
75-27    1082, Acts of the 75th Legislature, Regular Session, 1997.
 76-1          Sec. 5.759.  ELIGIBILITY FOR FLEXIBLE PERMITTING. A regulated
 76-2    entity is not eligible for flexible permitting unless the entity
 76-3    has established a better than average compliance history in
 76-4    comparison with entities operating under an ordinary permit.
 76-5          SECTION 4.02. Section 5.123, Water Code, as added by Chapter
 76-6    1203, Acts of the 75th Legislature, Regular Session, 1997, is
 76-7    transferred to new Subchapter Q, Chapter 5, Water Code,
 76-8    redesignated as Section 5.760, and amended to read as follows:
 76-9          Sec. 5.760 [5.123].  REGULATORY FLEXIBILITY. (a)  The
76-10    commission by order may exempt an applicant from a requirement of a
76-11    statute or commission rule regarding the control or abatement of
76-12    pollution if the applicant proposes to control or abate pollution
76-13    by an alternative method or by applying an alternative standard
76-14    that is:
76-15                (1)  more [at least as] protective of the environment
76-16    and the public health than [as] the method or standard prescribed
76-17    by the statute or commission rule that would otherwise apply; and
76-18                (2)  not inconsistent with federal law.
76-19          (b)  The commission may not exempt an applicant under this
76-20    section unless the applicant can present to the commission
76-21    documented evidence of benefits to environmental quality that will
76-22    result from the project the applicant proposes.
76-23          (c)  The commission by rule shall specify the procedure for
76-24    obtaining an exemption under this section.  The rules must provide
76-25    for public notice and for public participation in a proceeding
76-26    involving an application for an exemption under this section.
76-27          (d) [(c)]  The commission's order must provide a specific
 77-1    description of the alternative method or standard and condition the
 77-2    exemption on compliance with the method or standard as the order
 77-3    prescribes.
 77-4          (e) [(d)]  The commission by rule may establish a reasonable
 77-5    fee for applying for an exemption under this section.
 77-6          (f) [(e)]  A violation of an order issued under this section
 77-7    is punishable as if it were a violation of the statute or rule from
 77-8    which the order grants an exemption.
 77-9          [(f)  A permit may satisfy a requirement to demonstrate need
77-10    by showing need on a regional basis considering economic impacts.]
77-11          (g)  This section does not authorize exemptions to statutes
77-12    or regulations for storing, handling, processing, or disposing of
77-13    low-level radioactive materials.
77-14          (h)  In implementing the program of regulatory flexibility
77-15    authorized by this section, the commission shall:
77-16                (1)  market the program to businesses in the state
77-17    through all available appropriate media;
77-18                (2)  endorse alternative methods that will clearly
77-19    benefit the environment and impose the least onerous restrictions
77-20    on business;
77-21                (3)  fix and enforce environmental standards, allowing
77-22    businesses flexibility in meeting the standards in a manner that
77-23    clearly enhances environmental outcomes; and
77-24                (4)  work to achieve consistent and predictable results
77-25    for the regulated community and shorter waits for permit issuance.
77-26          SECTION 4.03. Section 7.067(a), Water Code, is amended to
77-27    read as follows:
 78-1          (a)  The commission may compromise, modify, or remit, with or
 78-2    without conditions, an administrative penalty imposed under this
 78-3    subchapter.  In determining the appropriate amount of a penalty for
 78-4    settlement of an administrative enforcement matter, the commission
 78-5    may consider a respondent's willingness to contribute to
 78-6    supplemental environmental projects that are approved by the
 78-7    commission, giving preference to projects that benefit the
 78-8    community in which the alleged violation occurred.  The commission
 78-9    may approve a supplemental environmental project with activities in
78-10    territory of the United Mexican States if the project substantially
78-11    benefits territory in this state in a manner described by
78-12    Subsection (b).  The commission may not approve a project that is
78-13    necessary to bring a respondent into compliance with environmental
78-14    laws, [or] that is necessary to remediate environmental harm caused
78-15    by the respondent's alleged violation, or that the respondent has
78-16    already agreed to perform under a preexisting agreement with a
78-17    governmental agency.
78-18          SECTION 4.04. Section 361.0215, Health and Safety Code, is
78-19    amended to read as follows:
78-20          Sec. 361.0215.  POLLUTION PREVENTION [WASTE REDUCTION]
78-21    ADVISORY COMMITTEE. (a)  The pollution prevention [waste reduction]
78-22    advisory committee is composed of nine members with a balanced
78-23    representation of environmental and public interest groups and the
78-24    regulated community.
78-25          (b)  The committee shall advise the commission and
78-26    interagency coordination council on:
78-27                (1)  the appropriate organization of state agencies and
 79-1    the financial and technical resources required to aid the state in
 79-2    its efforts to promote waste reduction and minimization;
 79-3                (2)  the development of public awareness programs to
 79-4    educate citizens about hazardous waste and the appropriate disposal
 79-5    of hazardous waste and hazardous materials that are used and
 79-6    collected by households;
 79-7                (3)  the provision of technical assistance to local
 79-8    governments for the development of waste management strategies
 79-9    designed to assist small quantity generators of hazardous waste;
79-10    and
79-11                (4)  other possible programs to more effectively
79-12    implement the state's hierarchy of preferred waste management
79-13    technologies as set forth in Section 361.023(a).
79-14          (c)  The committee shall advise the commission on the
79-15    creation and implementation of an incentive- and performance-based
79-16    structure for the regulation of air and water quality and solid
79-17    waste management as set out in Section 5.752, Water Code.
79-18          (d)  The committee shall report quarterly to the commission
79-19    on its activities, including suggestions or proposals for future
79-20    activities and other matters the committee considers important.
79-21          SECTION 4.05. Section 361.088, Health and Safety Code, is
79-22    amended by adding Subsection (g) to read as follows:
79-23          (g)  The commission shall review a permit issued under this
79-24    chapter every five to seven years to assess the license holder's
79-25    compliance history.
79-26          SECTION 4.06. (a)  Subchapter B, Chapter 382, Health and
79-27    Safety Code, is amended by adding Sections 382.0215 and 382.0216 to
 80-1    read as follows:
 80-2          Sec. 382.0215.  ASSESSMENT OF EMISSIONS DUE TO EMISSIONS
 80-3    EVENTS. (a)  In this chapter, "emissions event" includes an upset,
 80-4    maintenance, startup, or shutdown activity that results in the
 80-5    unauthorized emissions of air contaminants.
 80-6          (b)  The commission shall require the owner or operator of a
 80-7    facility that experiences emissions events:
 80-8                (1)  to maintain a record of all emissions events at
 80-9    the facility in the manner and for the periods prescribed by
80-10    commission rule;
80-11                (2)  to notify the commission, as soon as practicable
80-12    but not later than 24 hours after discovery of the emissions event,
80-13    of an emissions event resulting in the emission of a reportable
80-14    quantity of air contaminants as determined by commission rule; and
80-15                (3)  to report to the commission, not later than two
80-16    weeks after the occurrence of an emissions event that results in
80-17    the emission of a reportable quantity of air contaminants as
80-18    determined by commission rule, all information necessary to
80-19    evaluate the emissions event, including:
80-20                      (A)  the name of the owner or operator of the
80-21    reporting facility;
80-22                      (B)  the location of the reporting facility;
80-23                      (C)  the date and time the emissions began;
80-24                      (D)  the duration of the emissions;
80-25                      (E)  the nature and quantity of air contaminants
80-26    emitted, including the method of calculation of, or other basis for
80-27    determining, the quantity of air contaminants emitted;
 81-1                      (F)  the processes and equipment involved in the
 81-2    emissions event;
 81-3                      (G)  the cause of the emissions; and
 81-4                      (H)  any additional information necessary to
 81-5    evaluate the emissions event.
 81-6          (c)  The owner or operator of a facility required by Section
 81-7    382.014 to submit an annual emissions inventory report must include
 81-8    as part of the inventory:
 81-9                (1)  an itemized list of each emissions event at the
81-10    facility, including the quantity of air contaminants emitted; or
81-11                (2)  if no emissions event occurred at the facility, a
81-12    statement to that effect.
81-13          (d)  The commission shall centrally track emissions events
81-14    and collect information relating to:
81-15                (1)  inspections or enforcement actions taken by the
81-16    commission in response to emissions events; and
81-17                (2)  the number of emissions events occurring in each
81-18    commission region and the quantity of emissions from each emissions
81-19    event.
81-20          (e)  The commission shall develop the capacity for electronic
81-21    reporting and shall incorporate reportable emissions events into a
81-22    permanent centralized database for emissions events.  The database
81-23    shall be accessible to the public.
81-24          (f)  The commission annually shall assess the information
81-25    received under this section, including actions taken by the
81-26    commission in response to the report required by Section 5.123,
81-27    Water Code, as added by Chapters 304 and 1082, Acts of the 75th
 82-1    Legislature, Regular Session, 1997.
 82-2          Sec. 382.0216.  REGULATION OF EMISSIONS EVENTS. (a)  Except
 82-3    as provided by Subsection (d), the commission shall require the
 82-4    owner or operator of a facility to take action to reduce emissions
 82-5    from emissions events required to be reported under Section
 82-6    382.0215(b)(3).  The commission shall require an owner or operator
 82-7    of a facility that has a reportable emissions event to file with
 82-8    the commission a corrective action plan to reduce emissions from
 82-9    emissions events.
82-10          (b)  A corrective action plan filed under Subsection (a) must
82-11    identify the cause or causes of each emissions event, specify the
82-12    control devices or other measures that will prevent or minimize
82-13    similar emissions events in the future, and specify a time within
82-14    which implementation of the corrective action plan will be
82-15    completed.  A corrective  action plan must be approved by the
82-16    commission.  If the commission has not disapproved of a proposed
82-17    corrective action plan before the 45th day after the date the
82-18    commission receives the proposed plan, the plan is approved and the
82-19    owner or operator of the facility must implement the plan.  The
82-20    commission shall emphasize reviewing for approval or disapproval
82-21    proposed corrective action plans for emissions events that present
82-22    the greatest concern to the public health or safety considering the
82-23    factors provided by Section 382.0215(b)(3)(E).  An approved
82-24    corrective action plan shall be made available to the public except
82-25    to the extent information in the plan is confidential information
82-26    protected under Chapter 552, Government Code.  The commission shall
82-27    establish reasonable schedules for the implementation of corrective
 83-1    action plans and procedures for revision of a corrective action
 83-2    plan if the commission finds the plan, after implementation begins,
 83-3    to be inadequate to meet the goal of preventing or minimizing
 83-4    emissions and emissions events.
 83-5          (c)  An owner or operator of a facility for which a report is
 83-6    required under Section 382.0215(b)(3) may file a corrective action
 83-7    plan with that report.
 83-8          (d)  The commission by rule may establish criteria under
 83-9    which the owner or operator of a facility having an emissions event
83-10    is not required to submit under Subsection (a) a corrective action
83-11    plan.  In establishing rules under this subsection, the commission
83-12    at a minimum must require consideration of the frequency and
83-13    duration of the emissions event, the cause of the emissions event,
83-14    the quantity and toxicity  of the emissions resulting from the
83-15    emissions event, and the impact of the emissions event on the local
83-16    area's air quality.  The rules may not exclude from the requirement
83-17    to submit a corrective action plan emissions that result from
83-18    routine startup and shutdown, routine maintenance procedures, or
83-19    upsets resulting from the lack of preventive maintenance or from
83-20    operator error, or emissions that are a part of a recurring pattern
83-21    of emissions events indicative of inadequate design, operation, or
83-22    maintenance.
83-23          (e)  An owner or operator of a facility that has an emissions
83-24    event is presumed to be required to submit a corrective action plan
83-25    as provided by Subsection (a) unless the owner or operator
83-26    demonstrates to the commission that, in accordance with rules
83-27    adopted under Subsection (d), the plan is not required.  This
 84-1    section does not limit the commission's authority to take
 84-2    enforcement action or the authority or right of any person to seek
 84-3    injunctive relief in relation to any emissions event.
 84-4          (f)  A person may not claim a defense to a commission
 84-5    enforcement action under Chapter 7, Water Code, if the person
 84-6    failed to take corrective action under a corrective action plan
 84-7    approved by the commission within the time prescribed by the
 84-8    commission and an emissions event recurs.
 84-9          (g)  The commission may require the owner or operator of a
84-10    facility that has emissions events that are sufficiently
84-11    quantifiable, frequent, and predictable, to obtain a permit, permit
84-12    amendment, or other authorization that includes those emissions.
84-13          (b)  The Texas Natural Resource Conservation Commission shall
84-14    implement all technical and equipment changes necessary for
84-15    compliance with Sections 382.0215(d) and (e), Health and Safety
84-16    Code, as added by this Act, not later than January 1, 2003.  After
84-17    implementation of the necessary technical and equipment changes,
84-18    the Texas Natural Resource Conservation Commission by rule shall
84-19    require electronic reporting of reportable emissions events to the
84-20    centralized database.
84-21          SECTION 4.07. Sections 382.051(a) and (b), Health and Safety
84-22    Code, are amended to read as follows:
84-23          (a)  The commission may issue a permit:
84-24                (1)  to construct a new facility or modify an existing
84-25    facility that may emit air contaminants;
84-26                (2)  to operate a [an] facility described by Section
84-27    382.0518(g) [under a voluntary emissions reduction permit]; or
 85-1                (3)  to operate a federal source.
 85-2          (b)  To assist in fulfilling its authorization provided by
 85-3    Subsection (a), the commission may issue:
 85-4                (1)  special permits for certain facilities;
 85-5                (2)  a general permit for numerous similar sources
 85-6    subject to Section 382.054;
 85-7                (3)  a standard permit for similar facilities;
 85-8                (4)  a permit by rule for types of facilities that will
 85-9    not significantly contribute air contaminants to the atmosphere;
85-10                (5)  a single federal operating permit or
85-11    preconstruction permit for multiple federal sources or facilities
85-12    located at the same site;
85-13                (6)  a multiple plant permit for existing facilities at
85-14    multiple locations subject to Section 382.0518 or 382.0519; [or]
85-15                (7)  an existing facility permit or existing facility
85-16    flexible permit under Section 382.05183;
85-17                (8)  a small business stationary source permit under
85-18    Section 382.05184;
85-19                (9)  an electric generating facility permit under
85-20    Section 382.05185 and Section 39.264, Utilities Code;
85-21                (10)  an authorization under Section 382.05186; or
85-22                (11)  other permits as necessary.
85-23          SECTION 4.08. Subchapter C, Chapter 382, Health and Safety
85-24    Code, is amended by adding Sections 382.05181-382.05186 to read as
85-25    follows:
85-26          Sec. 382.05181.  PERMIT REQUIRED. (a)  Any facility described
85-27    by Section 382.0518(g) that does not have an application pending
 86-1    for a permit or other authorization under this chapter, other than
 86-2    a permit required under Section 382.054, and that has not submitted
 86-3    a notice of shutdown under Section 382.05182, may not emit air
 86-4    contaminants on or after:
 86-5                (1)  September 1, 2003, if the facility is located in
 86-6    an area designated as nonattainment for a national ambient air
 86-7    quality standard as of September 1, 2001; or
 86-8                (2)  September 1, 2005, if the facility is located in
 86-9    an area other than a nonattainment area as of September 1, 2001.
86-10          (b)  Any facility described by Section 382.0518(g) that does
86-11    not have a permit or other authorization under this chapter, other
86-12    than a permit required under Section 382.054, may not emit air
86-13    contaminants on or after:
86-14                (1)  September 1, 2005, if the facility is located in
86-15    an area designated as nonattainment for a national ambient air
86-16    quality standard as of September 1, 2001; or
86-17                (2)  September 1, 2007, if the facility is located in
86-18    an area other than a nonattainment area as of September 1, 2001.
86-19          (c)  Facilities eligible for a permit under Section 382.05184
86-20    are not subject to this section.
86-21          Sec. 382.05182.  NOTICE OF SHUTDOWN. (a)  Any notice
86-22    submitted in compliance with this section must be filed with the
86-23    commission by the dates in Section 382.05181(a).
86-24          (b)  A notice under this section shall include:
86-25                (1)  the date the facility intends to cease operating;
86-26                (2)  an inventory of the type and amount of emissions
86-27    that will be eliminated when the facility ceases to operate; and
 87-1                (3)  any other necessary and relevant information the
 87-2    commission by rule deems appropriate.
 87-3          Sec. 382.05183.  EXISTING FACILITY PERMIT. (a)  The owner or
 87-4    operator of a facility described by Section 382.0518(g) may apply
 87-5    for a permit to operate the facility under this section.
 87-6          (b)  The commission shall grant a permit under this section
 87-7    if, from the information available to the commission, including
 87-8    information presented at any public hearing or through written
 87-9    comment, the commission finds that the application demonstrates
87-10    compliance with:
87-11                (1)  Section 382.003(9)(E)(ii) if the permit
87-12    application is filed before September 1, 2002; or
87-13                (2)  Section 382.0518(b) if the permit application is
87-14    filed:
87-15                      (A)  before September 1, 2003, if the facility is
87-16    located in an area designated as nonattainment for national ambient
87-17    air quality standards as of September 1, 2001; and
87-18                      (B)  before September 1, 2005, if the facility is
87-19    located in an area other than a nonattainment area as of September
87-20    1, 2001.
87-21          (c)  The commission may issue an existing facility flexible
87-22    permit for some or all of the facilities at a site described by
87-23    Section 382.0518(g) and facilities permitted under Section 382.0519
87-24    in order to implement the requirements of this section.  Permits
87-25    issued under this subsection shall follow the same permit issuance,
87-26    modification, and renewal procedures as existing facility permits.
87-27          (d)  If the commission finds that the emissions from the
 88-1    facility will contravene the standards under Subsection (b) or the
 88-2    intent of this chapter, including protection of the public's health
 88-3    and physical property, the commission may not grant the permit
 88-4    under this section.
 88-5          (e)  A person planning the modification of a facility
 88-6    previously permitted under this section must comply with Section
 88-7    382.0518 before modifying.
 88-8          (f)  The commission may adopt rules as necessary to implement
 88-9    and administer this section.
88-10          (g)  A permit application under this section is subject to
88-11    notice and hearing requirements as provided by Section 382.05191.
88-12          (h)  If an applicant omits any relevant facts or submits
88-13    incorrect information in an application, the applicant shall submit
88-14    the relevant facts or correct the information no later than 60 days
88-15    after discovering the error.  If while processing the application,
88-16    the commission determines that additional information is necessary
88-17    to evaluate or to take final action on the application, the
88-18    commission may request the information and set a reasonable
88-19    deadline for a response.  Failure to comply with the deadline for
88-20    the response will result in the application being returned to the
88-21    applicant.
88-22          Sec. 382.05184.  SMALL BUSINESS STATIONARY SOURCE PERMIT. (a)
88-23    Facilities described by Section 382.0518(g) that are located at a
88-24    small business stationary source, as defined by Section
88-25    382.0365(h)(2), and are not required by commission rule to report
88-26    to the commission under Section 382.014 may apply for a permit
88-27    under this section before September 1, 2005.
 89-1          (b)  Facilities described by Section 382.0518(g) that are
 89-2    located at a small business stationary source that does not have an
 89-3    application pending for a permit or other authorization under this
 89-4    chapter, other than a permit required under Section 382.054, and
 89-5    that has not submitted a notice of shutdown under Section
 89-6    382.05182, may not emit air contaminants on or after September 1,
 89-7    2007.
 89-8          (c)  The commission shall grant a permit under this section
 89-9    if, from the information available to the commission, including
89-10    information presented at any public hearing or through written
89-11    comment, the commission finds that there is no indication that the
89-12    emissions from the facility will contravene the intent of this
89-13    chapter, including protection of the public's health and physical
89-14    property.
89-15          (d)  If the commission finds that the emissions from the
89-16    facility will not comply with Subsection (c), the commission may
89-17    not grant the permit under this section.
89-18          (e)  A person planning the modification of a facility
89-19    previously permitted under this section must comply with Section
89-20    382.0518 before modifying.
89-21          (f)  The commission may adopt rules as necessary to implement
89-22    and administer this section.
89-23          (g)  If an applicant omits any relevant facts or submits
89-24    incorrect information in an application, the applicant shall submit
89-25    the relevant facts or correct the information no later than 60 days
89-26    after discovering the error.  If while processing the application,
89-27    the commission determines that additional information is necessary
 90-1    to evaluate or to take final action on the application, the
 90-2    commission may request the information and set a reasonable
 90-3    deadline for a response.  Failure to comply with the deadline for
 90-4    the response will result in the application being returned to the
 90-5    applicant.
 90-6          Sec.  382.05185.  ELECTRIC GENERATING FACILITY PERMIT. (a)
 90-7    An electric generating facility is considered permitted under this
 90-8    section with respect to all air contaminants if the facility is:
 90-9                (1)  a natural-gas-fired electric generating facility
90-10    that has applied for or obtained a permit under Section 39.264,
90-11    Utilities Code; or
90-12                (2)  an electric generating facility exempted from
90-13    permitting under Section 39.264(d), Utilities Code.
90-14          (b)  Electric generating facilities, including coal-fired
90-15    electric generating facilities, that are required to obtain a
90-16    permit under Section 39.264, Utilities Code, and are not described
90-17    by Subsection (a):
90-18                (1)  shall be considered permitted under this section
90-19    with respect to nitrogen oxides, sulphur dioxide, and, as provided
90-20    by commission rules, for opacity if the facility has applied for or
90-21    obtained a permit under Section 39.264, Utilities Code; and
90-22                (2)  are not considered permitted for criteria
90-23    pollutants not described by Subdivision (b)(1).
90-24          (c)  The commission shall issue a permit for a facility
90-25    subject to Subsection (b) for criteria pollutants not covered by
90-26    Subsection (b)(1) if the commission finds that the emissions from
90-27    the facility will not contravene the intent of this chapter,
 91-1    including protection of the public's health and physical property.
 91-2    Upon request by the applicant, the commission shall include a
 91-3    permit application under this subsection with the applicant's
 91-4    pending permit application under Section 39.264, Utilities Code.
 91-5          (d)  The owner or operator of an electric generating facility
 91-6    with a permit or an application pending under Section 39.264,
 91-7    Utilities Code, may apply for a permit under this section before
 91-8    September 1, 2002, for a facility located at the same site if the
 91-9    facility not permitted or without a pending application under
91-10    Section 39.264, Utilities Code, is:
91-11                (1)  a generator that does not generate electric energy
91-12    for compensation and is used no more than 10 percent of the normal
91-13    annual operating schedule; or
91-14                (2)  an auxiliary fossil-fuel-fired combustion facility
91-15    that does not generate electric energy for compensation.
91-16          (e)  Nitrogen oxide emissions from facilities permitted under
91-17    Subsection (d) shall be included in the emission allowance trading
91-18    program established under Section 39.264, Utilities Code.  The
91-19    commission shall not issue new allowances based on a permit issued
91-20    under this section.
91-21          (f)  A person planning the modification of a facility
91-22    previously permitted under this section must comply with Section
91-23    382.0518 before modifying.
91-24          (g)  The commission may adopt rules as necessary to implement
91-25    and administer this section.
91-26          (h)  A permit application under this section is subject to
91-27    notice and hearing requirements as provided by Section 382.05191.
 92-1          (i)  For purposes of this section, a natural-gas-fired
 92-2    electric generating facility is one that is capable of burning
 92-3    natural gas or a fuel oil of a grade approved by commission rule.
 92-4    The commission shall adopt rules regarding acceptable fuel oil
 92-5    grades that shall require that the amount and grade of fuel oil
 92-6    used not increase emissions above allowable limits.
 92-7          Sec. 382.05186.  AUTHORIZATION FOR PIPELINE FACILITIES. (a)
 92-8    The commission by rule shall establish the procedures for
 92-9    applications for existing processing, treating, compression, or
92-10    pumping facilities described by Section 382.0518(g) connected to or
92-11    part of a gathering or transmission pipeline.
92-12          (b)  Based on a prioritization by the commission as necessary
92-13    to meet local, regional, and statewide air quality needs related
92-14    directly or indirectly to federal air quality standards, the
92-15    commission may require up to a 20 percent reduction of the hourly
92-16    emission rate, in terms of grams per brake horsepower-hour, of
92-17    nitrogen oxide and may also require up to a 20 percent reduction of
92-18    the hourly emission rate, in terms of grams per brake
92-19    horsepower-hour, of volatile organic compounds from reciprocating
92-20    internal combustion engines subject to this section.  The
92-21    commission may consider requiring up to a 20 percent reduction of
92-22    the hourly emission rate of nitrogen oxide and may also consider
92-23    requiring up to a 20 percent reduction of the hourly emission rate
92-24    of volatile organic compounds from facilities other than
92-25    reciprocating internal combustion engines that are connected to or
92-26    part of a gathering or transmission pipeline.  The commission may
92-27    by rule designate counties or regions of the state where greater
 93-1    reductions of emissions will be required than in other areas, but
 93-2    no more than 20 percent emissions reductions may be required in any
 93-3    area.
 93-4          (c)  The commission shall:
 93-5                (1)  allow for a single permit for all facilities
 93-6    connected to or part of a gathering or transmission pipeline;
 93-7                (2)  allow for required reductions for facilities under
 93-8    this section to be achieved at one facility or averaged among more
 93-9    than one facility and located in the same local, regional, or
93-10    statewide areas designated by the commission under Subsection (b);
93-11                (3)  for purposes of emission averaging, allow emission
93-12    reductions achieved from facilities defined by Section 382.0518(g)
93-13    since September 1, 1997; and
93-14                (4)  allow an owner or operator to apply for separate
93-15    permits under this section for discrete and separate facilities
93-16    connected to or part of a gathering or transmission pipeline.
93-17          (d)  Facilities authorized by this section shall be
93-18    considered permitted under this chapter.
93-19          (e)  The commission shall issue a permit under this section
93-20    if the requirements of this section are met.
93-21          (f)  A person planning the modification of a facility
93-22    previously permitted under this section must comply with Section
93-23    382.0518 before modifying.
93-24          (g)  The commission may adopt rules as necessary to implement
93-25    and administer this section.
93-26          (h)  A permit application under this section is subject to
93-27    notice and hearing requirements as provided by Section 382.05191.
 94-1          (i)  If an applicant omits any relevant facts or submits
 94-2    incorrect information in an application, the applicant shall submit
 94-3    the relevant facts or correct the information no later than 60 days
 94-4    after discovering the error.  If while processing the application,
 94-5    the commission determines that additional information is necessary
 94-6    to evaluate or to take final action on the application, the
 94-7    commission may request the information and set a reasonable
 94-8    deadline for a response.  Failure to comply with the deadline for
 94-9    the response will result in the application being returned to the
94-10    applicant.
94-11          SECTION 4.09. Section 382.05191, Health and Safety Code, is
94-12    amended to read as follows:
94-13          Sec. 382.05191.  [VOLUNTARY] EMISSIONS REDUCTION PERMITS
94-14    [PERMIT]: NOTICE AND HEARING. (a)  An applicant for a permit or
94-15    other authorization under Section 382.05183, Section 382.05185(c)
94-16    or (d), Section 382.05186, or Section 382.0519 shall publish notice
94-17    of intent to obtain the permit in accordance with Section 382.056.
94-18          (b)  The commission may authorize an applicant for a permit
94-19    for a facility that constitutes or is part of a small business
94-20    stationary source as defined in Section 382.0365(g)(2) to provide
94-21    notice using an alternative means if the commission finds that the
94-22    proposed method will result in equal or better communication with
94-23    the public, considering the effectiveness of the notice in reaching
94-24    potentially affected persons, cost, and consistency with federal
94-25    requirements.
94-26          (c)  The commission shall provide an opportunity for a public
94-27    hearing and the submission of public comment and send notice of a
 95-1    decision on an application for a permit under Section 382.05183,
 95-2    Section 382.05185(c) or (d), Section 382.05186, or Section 382.0519
 95-3    in the same manner as provided by Sections 382.0561 and 382.0562.
 95-4          (d)  A person affected by a decision of the commission to
 95-5    issue or deny an [a voluntary] emissions reduction permit may move
 95-6    for rehearing and is entitled to judicial review under Section
 95-7    382.032.
 95-8          SECTION 4.10. Section 382.05192, Health and Safety Code, is
 95-9    amended to read as follows:
95-10          Sec. 382.05192.  REVIEW AND RENEWAL OF [VOLUNTARY] EMISSIONS
95-11    REDUCTION [AND MULTIPLE PLANT] PERMITS. Review and renewal of a
95-12    permit issued or other authorization granted under Section
95-13    382.05183, Section 382.05184, Section 382.05185(c) or (d), Section
95-14    382.05186, Section 382.0519, or Section 382.05194 shall be
95-15    conducted in accordance with Section 382.055.
95-16          SECTION 4.11. Section 382.0621(d), Health and Safety Code, is
95-17    amended to read as follows:
95-18          (d)  Except as provided by this subsection [section], the
95-19    commission may not impose a fee for any amount of emissions of an
95-20    air contaminant regulated under the federal Clean Air Act
95-21    Amendments of 1990 (Pub.L. No. 101-549) in excess of 4,000 tons per
95-22    year from any source. The fees under this subsection do not apply
95-23    to a facility with a permit or a permit application pending under
95-24    Section 382.05185(c).  The fees under this subsection do not apply
95-25    to a facility for which a letter expressing intent to authorize
95-26    that facility is filed on or before September 1, 2002, or a permit
95-27    application is timely filed.  In the event that a letter of intent
 96-1    is not filed, or if a letter of intent is filed but a permit
 96-2    application is not subsequently timely filed, the fees due and
 96-3    owing for such facility shall be deemed to have accrued since
 96-4    September 1, 2001, in the amounts set forth in this subsection.  On
 96-5    and after September 1, 2001, for a facility that is not subject to
 96-6    the requirement to obtain a permit under Section 382.0518(g) that
 96-7    does not have a permit application pending, the commission shall:
 96-8                (1)  impose a fee under this section for all emissions,
 96-9    including emissions in excess of 4,000 tons; [and]
96-10                (2)  double the amount of the fee imposed for all
96-11    emissions of 4,000 tons or less each fiscal year; and
96-12                (3)  treble the amount of the fee imposed for all
96-13    emissions in excess of 4,000 tons each fiscal year [treble the
96-14    amount of the fee imposed for emissions in excess of 4,000 tons
96-15    each fiscal year].
96-16          SECTION 4.12. Subchapter C, Chapter 382, Health and Safety
96-17    Code, is amended by adding Section 382.065 to read as follows:
96-18          Sec. 382.065.  CERTAIN LOCATIONS FOR CRUSHING FACILITY
96-19    PROHIBITED. (a)  The commission by rule shall prohibit the location
96-20    of or operation of a crushing facility for concrete production
96-21    within one-half mile of a building used as a single or multifamily
96-22    residence, school, or place of worship.
96-23          (b)  Rules adopted under Subsection (a) must provide a
96-24    transition period of nine months for crushing facilities in
96-25    operation on the effective date of this section to cease operations
96-26    and move outside of the prohibited area.
96-27      ARTICLE 5.  ACCREDITATION OF ENVIRONMENTAL TESTING LABORATORIES
 97-1          SECTION 5.01. Chapter 421, Health and Safety Code, as added
 97-2    by Chapter 447, Acts of the 76th Legislature, Regular Session,
 97-3    1999, is transferred to Chapter 5, Water Code, redesignated as
 97-4    Subchapter R, and amended to read as follows:
 97-5               SUBCHAPTER R [CHAPTER 421].  ACCREDITATION OF
 97-6                    ENVIRONMENTAL TESTING LABORATORIES
 97-7          Sec. 5.801 [421.001].  DEFINITION [DEFINITIONS]. In this
 97-8    subchapter, "environmental [chapter:]
 97-9                [(1)  "Board" means the Texas Board of Health.]
97-10                [(2)  "Department" means the Texas Department of
97-11    Health.]
97-12                [(3)  "Environmental] testing laboratory" means a
97-13    scientific laboratory that[:]
97-14                      [(A)]  performs analyses to determine the
97-15    chemical, molecular, or pathogenic components of environmental
97-16    media [drinking water, wastewater, hazardous wastes, soil, or air]
97-17    for regulatory compliance purposes[; and]
97-18                      [(B)  is either a commercial laboratory or an
97-19    environmental laboratory that is required to be accredited under
97-20    federal law].
97-21          Sec. 5.802 [421.002].  ADMINISTRATION BY COMMISSION
97-22    [DEPARTMENT]. The commission [department] shall adopt rules for the
97-23    administration of [administer] the voluntary environmental testing
97-24    laboratory accreditation program established by this chapter.  The
97-25    program must be consistent with national accreditation standards
97-26    approved by the National Environmental Laboratory Accreditation
97-27    Conference.
 98-1          Sec. 5.803 [421.003].  APPLICATION; FEE. (a)  To be
 98-2    accredited under the accreditation program adopted under this
 98-3    subchapter [chapter], an environmental testing laboratory must
 98-4    submit an application to the commission [department] on a form
 98-5    prescribed by the commission [department], accompanied by the
 98-6    accreditation fee. The application must contain the information
 98-7    that the commission [department] requires.
 98-8          (b)  The commission by rule  [board] shall establish a
 98-9    schedule of reasonable [an] accreditation fees designed to recover
98-10    the costs of the accreditation program, including the costs
98-11    associated with:
98-12                (1)  application review;
98-13                (2)  initial, routine, and follow-up inspections by the
98-14    commission; and
98-15                (3)  preparation of reports [fee in an amount
98-16    sufficient to defray the cost of administering this chapter].
98-17          Sec. 5.804 [421.004].  ISSUANCE OF ACCREDITATION;
98-18    RECIPROCITY. (a)  The commission [department] may accredit an
98-19    environmental testing laboratory that complies with the commission
98-20    requirements established under this subchapter [chapter].
98-21          (b)  The commission [board] by rule may provide for the
98-22    accreditation of an environmental testing laboratory that is
98-23    accredited or licensed in [by] another state by an authority that
98-24    is approved by the National Environmental Laboratory Accreditation
98-25    Conference.
98-26          Sec. 5.805 [421.005].  RULES; MINIMUM STANDARDS. The
98-27    commission [board] shall adopt rules to implement this subchapter
 99-1    [chapter] and minimum performance and quality assurance standards
 99-2    for accreditation of an environmental testing laboratory.
 99-3          Sec. 5.806 [421.006].  DISCIPLINE. After notice and an
 99-4    opportunity for hearing, the commission [department] may suspend or
 99-5    revoke the accreditation of an environmental testing laboratory
 99-6    that does not comply with the minimum performance and quality
 99-7    assurance standards established under this subchapter [chapter].
 99-8          Sec. 5.807.  ENVIRONMENTAL TESTING LABORATORY ACCREDITATION
 99-9    ACCOUNT. (a)  All fees collected under this subchapter shall be
99-10    deposited to the credit of the environmental testing laboratory
99-11    accreditation account and may be appropriated to the commission
99-12    only for paying the costs of the accreditation program.
99-13          (b)  Any balance in the account in excess of $1,000 at the
99-14    end of a fiscal year reverts to the general revenue fund.
99-15         ARTICLE 6.  CERTIFICATION OF WATER TREATMENT SPECIALISTS
99-16          SECTION 6.01. Section 3A, The Plumbing License Law (Article
99-17    6243-101, Vernon's Texas Civil Statutes), is transferred to Chapter
99-18    341, Health and Safety Code, redesignated as Subchapter G, Chapter
99-19    341, and amended to read as follows:
99-20        SUBCHAPTER G.  CERTIFICATION OF WATER TREATMENT SPECIALISTS
99-21          Sec. 341.101 [Sec. 3A.  CERTIFICATION RELATING TO RESIDENTIAL
99-22    WATER TREATMENT FACILITIES].  DEFINITIONS. In this subchapter:
99-23                (1)  "Commission" means the Texas Natural Resource
99-24    Conservation Commission.
99-25                (2)  "Installation of water treatment appliances"
99-26    includes connecting the appliances to all necessary utility
99-27    connections in residential, commercial, or industrial facilities.
 100-1               (3)  "Water treatment" means a business conducted under
 100-2   contract that requires experience in the analysis of water,
 100-3   including the ability to determine how to treat influent and
 100-4   effluent water, to alter or purify water, and to add or remove a
 100-5   mineral, chemical, or bacterial content or substance.  The term
 100-6   also includes the installation and service of potable water
 100-7   treatment equipment in public or private water systems and making
 100-8   connections necessary to complete installation of a water treatment
 100-9   system.
100-10               (4)  "Water treatment equipment" includes appliances
100-11   used to alter or purify water or to alter a mineral, chemical, or
100-12   bacterial content or substance.
100-13         Sec. 341.102.  WATER TREATMENT SPECIALIST CERTIFICATION
100-14   PROGRAM. (a)  The commission by rule [Commissioner of Health or his
100-15   designee] shall establish a program to certify persons [as being]
100-16   qualified to install, exchange, service [for the installation,
100-17   exchange, servicing], and repair [of] residential, commercial, or
100-18   industrial water treatment equipment and appliances [facilities as
100-19   defined by Subsection (g) of Section 2 of this Act].
100-20         (b)  The rules must establish:
100-21               (1)  [Texas Board of Health shall set] standards for
100-22   certification to ensure the public health and to protect the public
100-23   from unqualified persons engaging in activities relating to water
100-24   treatment;
100-25               (2)  classes of certification;
100-26               (3)  duration of certification; and
100-27               (4)  reasonable annual certification fees in an amount
 101-1   sufficient to pay the administrative costs of the certification
 101-2   program, but not to exceed $150 a year for any class of
 101-3   certification.
 101-4         Sec. 341.103.  CERTIFICATION REQUIRED. A person may not
 101-5   engage in water treatment unless the person first obtains a
 101-6   certificate from the commission under the program established under
 101-7   this subchapter.
 101-8         Sec. 341.104.  APPLICATION FOR CERTIFICATION. A person
 101-9   desiring to obtain certification under the program established
101-10   under this subchapter shall file with the commission:
101-11               (1)  an application in the form prescribed by the
101-12   commission and containing the information required by the
101-13   commission; and
101-14               (2)  the appropriate certification fee.
101-15         Sec. 341.105.  ISSUANCE OF CERTIFICATE. (a)  [Nothing in this
101-16   section shall be construed to require that persons licensed
101-17   pursuant to this Act are subject to certification under this
101-18   section.]
101-19         [(b)  Before a certificate is issued or renewed under this
101-20   section, an applicant or holder of a certificate shall be required
101-21   to pay a fee of $10 a year.]  On receipt of an application that
101-22   meets commission requirements and the required fee, the commission
101-23   [Texas Department of Health] shall issue to a [qualified] person
101-24   who meets commission standards for certification a certificate
101-25   stating that the person is qualified to install, exchange, service
101-26   [for the installation, exchange, servicing], and repair [of]
101-27   residential, commercial, or industrial water treatment facilities.
 102-1         (b)  [The Texas Board of Health shall adopt rules
 102-2   establishing classes of certificates, duration of certificates, and
 102-3   fees.]
 102-4         [(c)]  All fees received by the commission [Texas Department
 102-5   of Health] under this section shall be deposited in the State
 102-6   Treasury to the credit of the General Revenue Fund.
 102-7         (c)  A person who holds a license under The Plumbing License
 102-8   Law (Article 6243-101, Vernon's Texas Civil Statutes) is exempt
 102-9   from the requirements of this subchapter.
102-10           ARTICLE 7.  REGISTRATION OF IRRIGATORS AND ON-SITE
102-11                    SEWAGE DISPOSAL SYSTEM INSTALLERS
102-12         SECTION 7.01. Section 34.008(a), Water Code, is amended to
102-13   read as follows:
102-14         (a)  The commission may waive any prerequisite [certify] for
102-15   obtaining registration for [without examination] an applicant who
102-16   is registered as a licensed irrigator or licensed installer by [in]
102-17   another jurisdiction with which this state has a reciprocity
102-18   agreement.  The commission may make an agreement, subject to the
102-19   approval of the governor, with another state to allow for
102-20   registration by reciprocity [state or country that has requirements
102-21   for registration that are at least substantially equivalent to the
102-22   requirements of this state and that extends the same privilege of
102-23   reciprocity to licensed irrigators or licensed installers
102-24   registered in this state].
102-25         SECTION 7.02. Section 34.009(f), Water Code, is amended to
102-26   read as follows:
102-27         (f)  The commission by rule may adopt a system under which
 103-1   certificates of registration expire on various dates during the
 103-2   year.  For the year in which the expiration date is changed, the
 103-3   commission shall prorate registration [renewal] fees [payable on
 103-4   August 31 shall be prorated] on a monthly basis so that each
 103-5   registrant pays [will pay] only that portion of the registration
 103-6   fee that is allocable to the number of months during which the
 103-7   registration is valid.  On renewal of the registration on the new
 103-8   expiration date, the total registration renewal fee is due.
 103-9         SECTION 7.03. Section 366.076, Health and Safety Code, is
103-10   amended to read as follows:
103-11         Sec. 366.076.  REGISTRATION RENEWAL. The commission by rule
103-12   may adopt a system under which registrations expire on various
103-13   dates during the year.  For each year in which the registration
103-14   expiration date is changed, the commission shall prorate
103-15   registration fees on a monthly basis so that each registrant pays
103-16   only that portion of the registration fee that is allocable to the
103-17   number of months during which the registration is valid.  On
103-18   renewal of the registration on the new expiration date, the total
103-19   registration renewal fee is payable [provide for periodic renewal
103-20   of registrations].
103-21                  ARTICLE 8.  REGULATION OF SOLID WASTE
103-22         SECTION 8.01. Section 361.114, Health and Safety Code, is
103-23   amended to read as follows:
103-24         Sec. 361.114.  PROHIBITION OF [GRANT OF PERMIT FOR] DISPOSAL
103-25   OF HAZARDOUS WASTE INTO CERTAIN GEOLOGICAL FORMATIONS [SALT DOMES].
103-26   [(a)]  The commission by rule shall prohibit the storage,
103-27   processing, or disposal of [may not issue a permit for a] hazardous
 104-1   waste [injection well] in a solution-mined salt dome cavern or a
 104-2   sulphur mine [unless the United States Environmental Protection
 104-3   Agency and the commission determine that sufficient rules are in
 104-4   place to regulate that activity].
 104-5         [(b)  Before issuing a permit for a hazardous waste injection
 104-6   well in a solution-mined salt dome cavern, the commission by order
 104-7   must find that there is an urgent public necessity for the
 104-8   hazardous waste injection well.  The commission, in determining
 104-9   whether an urgent public necessity exists for the permitting of the
104-10   hazardous waste injection well in a solution-mined salt dome
104-11   cavern, must find that:]
104-12               [(1)  the injection well will be designed, constructed,
104-13   and operated in a manner that provides at least the same degree of
104-14   safety as required of other currently operating hazardous waste
104-15   disposal technologies;]
104-16               [(2)  consistent with the need and desire to manage
104-17   within the state hazardous wastes generated in the state, there is
104-18   a substantial or obvious public need for additional hazardous waste
104-19   disposal capacity and the hazardous waste injection well will
104-20   contribute additional capacity toward servicing that need;]
104-21               [(3)  the injection well will be constructed and
104-22   operated in a manner so as to safeguard public health and welfare
104-23   and protect physical property and the environment;]
104-24               [(4)  the applicant has demonstrated that groundwater
104-25   and surface waters, including public water supplies, will be
104-26   protected from the release of hazardous waste from the salt-dome
104-27   waste containment cavern; and]
 105-1               [(5)  any other criteria required by the commission to
 105-2   satisfy that the test of urgency has been met.]
 105-3         SECTION 8.02. Subchapter C, Chapter 361, Health and Safety
 105-4   Code, is amended by adding Section 361.119 to read as follows:
 105-5         Sec. 361.119.  REGULATION OF CERTAIN FACILITIES AS SOLID
 105-6   WASTE FACILITIES. (a)  The commission by rule shall ensure that a
 105-7   solid waste processing facility the primary function of which is
 105-8   the transfer of solid waste is regulated as a solid waste facility
 105-9   under this chapter and is not allowed to operate unregulated as a
105-10   recycling facility.
105-11         (b)  A facility and the operations conducted and materials
105-12   handled at the facility are not subject to regulation under rules
105-13   adopted under this section if the owner or operator of the facility
105-14   demonstrates that:
105-15               (1)  the primary function of the facility is to process
105-16   materials that have a resale value greater than the cost of
105-17   processing the materials for subsequent beneficial use; and
105-18               (2)  the solid waste generated from processing the
105-19   materials is disposed of in a solid waste facility authorized under
105-20   this chapter, with the exception of small amounts of solid waste
105-21   that may be inadvertently and unintentionally disposed of in
105-22   another manner.
105-23                       ARTICLE 9.  EDWARDS AQUIFER
105-24         SECTION 9.01. As used in this article, "Edwards Aquifer" has
105-25   the meaning defined in Section 26.046, Water Code.
105-26         SECTION 9.02. Subchapter B, Chapter 26, Water Code, is
105-27   amended by adding Section 26.050 to read as follows:
 106-1         Sec. 26.050. The commission shall make available to the
 106-2   public digital copies of the Recharge, Transition, and Contributing
 106-3   Zone boundary lines, when they become available.
 106-4         SECTION 9.03. Subchapter B, Chapter 26, Water Code, is
 106-5   amended by adding Section 26.051 to read as follows:
 106-6         Sec. 26.051. The commission shall report annually on the
 106-7   Edwards Aquifer Program expenses and allocation of fees.
 106-8         SECTION 9.04.  Subchapter D, Chapter 26, Water Code, is
 106-9   amended by adding Section 26.137 to read as follows:
106-10         Sec. 26.137. The commission shall provide for a 30-day
106-11   comment period in the review process for Edwards Aquifer Protection
106-12   Plans in the Contributing Zone of the Edwards Aquifer as provided
106-13   in 30 T.A.C. Section 213.4(a)(2).
106-14               ARTICLE 10.  MATTERS RELATED TO REMEDIATION
106-15         SECTION 10.01. Subchapter F, Chapter 361, Health and Safety
106-16   Code, is amended by adding Section 361.1875 to read as follows:
106-17         Sec. 361.1875.  EXCLUSION OF CERTAIN POTENTIALLY RESPONSIBLE
106-18   PARTIES. The commission may not name a person as a responsible
106-19   party for an enforcement action or require a person to reimburse
106-20   remediation costs for a site if the commission has conducted an
106-21   investigation of a site owned or operated by the person and as a
106-22   result of the investigation has determined that:
106-23               (1)  the contaminants that are the subject of
106-24   investigation under this subchapter appear to originate from an
106-25   up-gradient, off-site source that is not owned or operated by the
106-26   person;
106-27               (2)  additional corrective action is not required at
 107-1   the site owned or operated by the person; and
 107-2               (3)  the commission will not undertake a formal
 107-3   enforcement action in the matter.
 107-4                   ARTICLE 11.  REGULATION OF CERTAIN
 107-5                        ANIMAL FEEDING OPERATIONS
 107-6         SECTION 11.01. Section 26.001, Water Code, is amended by
 107-7   amending Subdivisions (10) and (13) to read as follows:
 107-8               (10)  "Agricultural waste" means waterborne liquid,
 107-9   gaseous, or solid substances that arise from the agricultural
107-10   industry and agricultural activities, including without limitation
107-11   agricultural animal feeding pens and lots, structures for housing
107-12   and feeding agricultural animals, and processing facilities for
107-13   agricultural products.  The term:
107-14                     (A)  includes tail water or runoff water from
107-15   irrigation or rainwater runoff from an animal feeding operation or
107-16   concentrated animal feeding operation that is located in a major
107-17   sole source impairment zone, as defined by Section 26.502; and
107-18                     (B)  ["agricultural waste"] does not include tail
107-19   water or runoff water from irrigation or rainwater runoff from
107-20   other cultivated or uncultivated range land, pasture land, and
107-21   farmland.
107-22               (13)  "Pollutant" means dredged spoil, solid waste,
107-23   incinerator residue, sewage, garbage, sewage sludge, filter
107-24   backwash, munitions, chemical wastes, biological materials,
107-25   radioactive materials, heat, wrecked or discarded equipment, rock,
107-26   sand, cellar dirt, and industrial, municipal, and agricultural
107-27   waste discharged into any water in the state.  The term:
 108-1                     (A)  includes tail water or runoff water from
 108-2   irrigation or rainwater runoff from an animal feeding operation or
 108-3   concentrated animal feeding operation that is located in a major
 108-4   sole source impairment zone, as defined by Section 26.502; and
 108-5                     (B)  ["pollutant"] does not include tail water or
 108-6   runoff water from irrigation or rainwater runoff from cultivated or
 108-7   uncultivated rangeland, pastureland, and farmland.
 108-8         SECTION 11.02. Chapter 26, Water Code, is amended by adding
 108-9   Subchapter L to read as follows:
108-10             SUBCHAPTER L.  PROTECTION OF CERTAIN WATERSHEDS
108-11         Sec. 26.501.  DEFINITIONS. In this subchapter:
108-12               (1)  "Concentrated animal feeding operation" has the
108-13   meaning assigned by 30 T.A.C. Section 321.32 on the effective date
108-14   of this subchapter.
108-15               (2)  "New concentrated animal feeding operation" means
108-16   a proposed concentrated animal feeding operation, any part of which
108-17   is located on property not previously authorized by the state to be
108-18   operated as a concentrated animal feeding operation.
108-19               (3)  "Historical waste application field" means an area
108-20   of land that at any time since January 1, 1995, has been owned or
108-21   controlled by an operator of a concentrated animal feeding
108-22   operation on which agricultural waste from a concentrated animal
108-23   feeding operation has been applied.
108-24         Sec. 26.502.  APPLICABILITY. This subchapter applies only in
108-25   a major sole source impairment zone.  In this subchapter, "major
108-26   sole source impairment zone" means a watershed that contains a
108-27   reservoir:
 109-1               (1)  that is used by a municipality as a sole source of
 109-2   drinking water supply for a population, inside and outside of its
 109-3   municipal boundaries, of more than 140,000; and
 109-4               (2)  at least half of the water flowing into which is
 109-5   from a source that, on the effective date of this subchapter, is on
 109-6   the list of impaired state waters adopted by the commission as
 109-7   required by 33 U.S.C. Section 1313(d), as amended:
 109-8                     (A)  at least in part because of concerns
 109-9   regarding pathogens and phosphorus; and
109-10                     (B)  for which the commission, at some time, has
109-11   prepared and submitted a total maximum daily load standard.
109-12         Sec. 26.503.  REGULATION OF CERTAIN CONCENTRATED ANIMAL
109-13   FEEDING OPERATION WASTES. (a)  The commission may authorize the
109-14   construction or operation of a new concentrated animal feeding
109-15   operation, or an increase in the animals confined under an existing
109-16   operation, only by a new or amended individual permit.
109-17         (b)  The individual permit issued or amended under Subsection
109-18   (a) must:
109-19               (1)  provide for management and disposal of waste in
109-20   accordance with Subchapter B, Chapter 321, Title 30, Texas
109-21   Administrative Code;
109-22               (2)  require that 100 percent of the collectible manure
109-23   produced by the additional animals in confinement at an expanded
109-24   operation or all of the animals in confinement at a new operation
109-25   must be:
109-26                     (A)  disposed of or used outside of the
109-27   watershed;
 110-1                     (B)  delivered to a composting facility approved
 110-2   by the executive director;
 110-3                     (C)  applied to a waste application field that is
 110-4   not a historical waste application field or owned or operated by an
 110-5   owner or operator of a concentrated animal feeding operation;
 110-6                     (D)  put to another beneficial use approved by
 110-7   the executive director; or
 110-8                     (E)  applied to a historical waste application
 110-9   field that is owned or operated by the owner or operator of the
110-10   concentrated animal feeding operation only if:
110-11                           (i)  results of representative composite
110-12   soil sampling conducted at the waste application field and filed
110-13   with the commission show that the waste application field contains
110-14   200 or fewer parts per million of extractable phosphorus (reported
110-15   as P); or
110-16                           (ii)  the manure is applied, with
110-17   commission approval, in accordance with a detailed nutrient
110-18   utilization plan approved by the commission that is developed by:
110-19                                 (a)  an employee of the United States
110-20   Department of Agriculture's Natural Resources Conservation Service;
110-21                                 (b)  a nutrient management specialist
110-22   certified by the United States Department of Agriculture's Natural
110-23   Resources Conservation Service;
110-24                                 (c)  the State Soil and Water
110-25   Conservation Board;
110-26                                 (d)  the Texas Agricultural Extension
110-27   Service;
 111-1                                 (e)  an agronomist or soil scientist
 111-2   on the full-time staff of an accredited university located in this
 111-3   state; or
 111-4                                 (f)  a professional agronomist or
 111-5   soil scientist certified by the American Society of Agronomy.
 111-6         (c)  The commission may approve a detailed nutrient
 111-7   utilization plan approved by the commission that is developed by a
 111-8   professional agronomist or soil scientist certified by the American
 111-9   Society of Agronomy only if the commission finds that another
111-10   person listed by Subsection (b)(2)(E)(ii) cannot develop a plan in
111-11   a timely manner.
111-12         (d)  The commission may not issue a general permit to
111-13   authorize the discharge of agricultural waste into or adjacent to
111-14   waters in this state from an animal feeding operation if such
111-15   waters are within a major sole source impairment zone.
111-16         (e)  The commission and employees or agents of the commission
111-17   may enter public or private property at any reasonable time for
111-18   activities related to the purposes of this subchapter.  The
111-19   commission may enforce this authority as provided by Section 7.032,
111-20   7.051, 7.052, or 7.105.
111-21         (f)  This section does not limit the commission's authority
111-22   to include in an individual or general permit under this chapter
111-23   provisions necessary to protect a water resource in this state.
111-24         Sec. 26.504.  WASTE APPLICATION FIELD SOIL SAMPLING AND
111-25   TESTING. (a)  The operator of a concentrated animal feeding
111-26   operation shall contract with a person described by Section
111-27   26.503(b)(2)(E)(ii) selected by the executive director to collect
 112-1   one or more representative composite soil samples from each waste
 112-2   application field.  The operator shall have sampling performed
 112-3   under this subsection not less often than once every 12 months.
 112-4         (b)  Each sample collected under this section must be tested
 112-5   for phosphorus and any other nutrient designated by the executive
 112-6   director.  The test results must be made available to the executive
 112-7   director and the operator of the concentrated animal feeding
 112-8   operation.  The test results are public records of the commission.
 112-9         (c)  If the samples tested under Subsection (b) show a
112-10   phosphorus level in the soil of more than 500 parts per million,
112-11   the operator shall file with the commission a new or amended
112-12   nutrient utilization plan with a phosphorus reduction component
112-13   that is certified as acceptable by a person listed by Section
112-14   26.503(b)(2)(E)(ii).
112-15         (d)  If the samples tested under Subsection (b) show a
112-16   phosphorus level in the soil of more than 200 parts per million but
112-17   not more than 500 parts per million, the operator shall:
112-18               (1)  file with the commission a new or amended nutrient
112-19   utilization plan with a phosphorus reduction component that is
112-20   certified as acceptable by a person listed by Section
112-21   26.503(b)(2)(E)(ii); or
112-22               (2)  show that the level is supported by a nutrient
112-23   utilization plan certified as acceptable by a person listed by
112-24   Section 26.503(b)(2)(E)(ii).
112-25         (e)  The owner or operator of a waste application field
112-26   required by this section to have a nutrient utilization plan with a
112-27   phosphorus reduction component for which the results of tests
 113-1   performed on composite soil samples collected 12 months or more
 113-2   after the plan is filed do not show a reduction in phosphorus is
 113-3   subject to enforcement for a violation of this subchapter at the
 113-4   discretion of the executive director.  The executive director, in
 113-5   determining whether to take an enforcement action under this
 113-6   subsection, shall consider any explanation presented by the owner
 113-7   or operator regarding the reasons for the lack of phosphorus
 113-8   reduction, including an act of God, meteorologic conditions,
 113-9   diseases, vermin, crop conditions, or variability of soil testing
113-10   results.
113-11         (f)  The commission shall adopt rules to implement this
113-12   section.  The rules must provide for the scheduling and manner of
113-13   the required soil testing and the form, content, and deadlines for
113-14   plans required under this section.
113-15         Sec. 26.505.  ENFORCEMENT DISCRETION. The commission does not
113-16   have prosecutorial discretion in enforcing this subchapter and
113-17   shall strictly enforce the provisions of this subchapter.
113-18          ARTICLE 12.  CONTAINMENT SYSTEMS REQUIRED FOR CERTAIN
113-19                        UNDERGROUND STORAGE TANKS
113-20         SECTION 12.01. Subchapter I, Chapter 26, Water Code, is
113-21   amended by adding Section 26.3476 to read as follows:
113-22         Sec. 26.3476.  SECONDARY CONTAINMENT REQUIRED FOR TANKS
113-23   LOCATED OVER CERTAIN AQUIFERS. (a)  In this section, "secondary
113-24   containment" means a method by which a secondary wall or barrier is
113-25   installed around an underground storage tank system in a manner
113-26   designed to prevent a release of a regulated substance from
113-27   migrating beyond the secondary wall or barrier before the release
 114-1   can be detected.  A secondary containment system may include an
 114-2   impervious liner or vault surrounding a primary tank or piping
 114-3   system or a double-wall tank or piping system.
 114-4         (b)  An underground storage tank system, at a minimum, shall
 114-5   incorporate a method for secondary containment if the system is
 114-6   located in:
 114-7               (1)  the outcrop of a major aquifer composed of
 114-8   limestone and associated carbonate rocks of Cretaceous age or
 114-9   older; and
114-10               (2)  a county that:
114-11                     (A)  has a population of at least one million and
114-12   relies on groundwater for at least 75 percent of the county's water
114-13   supply; or
114-14                     (B)  has a population of at least 75,000 and is
114-15   adjacent to a county described by Paragraph (A).
114-16         (c)  Section 26.3475(e) applies to an underground storage
114-17   tank system that is subject to this section as if a violation of
114-18   this section were a violation of Section 26.3475.
114-19         (d)  This section does not prohibit the commission or a
114-20   political subdivision from adopting additional or more stringent
114-21   requirements regarding methods for containment of underground
114-22   storage tank systems if those requirements are compatible with the
114-23   requirements of this section.
114-24       ARTICLE 13.  REGULATION AND REMEDIATION OF UNDERGROUND AND
114-25                        ABOVEGROUND STORAGE TANKS
114-26         SECTION 13.01. Section 26.342, Water Code, is amended by
114-27   amending Subdivisions (9)-(17) and adding Subdivision (18) to read
 115-1   as follows:
 115-2               (9)  "Owner" means a person who holds legal possession
 115-3   or ownership of an interest in an underground storage tank system
 115-4   or an aboveground storage tank.  If the actual ownership of an
 115-5   underground storage tank system or an aboveground storage tank is
 115-6   uncertain, unknown, or in dispute, the fee simple owner of the
 115-7   surface estate of the tract on which the tank system is located is
 115-8   considered the owner of the system unless that person can
 115-9   demonstrate by appropriate documentation, including a deed
115-10   reservation, invoice, or bill of sale, or by other legally
115-11   acceptable means that the underground storage tank system or
115-12   aboveground storage tank is owned by another person.  A person that
115-13   has registered as an owner of an underground storage tank system or
115-14   aboveground storage tank with the commission under Section 26.346
115-15   after September 1, 1987, shall be considered the tank system owner
115-16   until such time as documentation demonstrates to the executive
115-17   director's satisfaction that the legal interest in the tank system
115-18   was transferred to a different person subsequent to the date of the
115-19   tank registration.  This definition is subject to the limitations
115-20   found in Section 26.3514 (Limits on Liability of Lender), Section
115-21   26.3515 (Limits on Liability of Corporate Fiduciary), and Section
115-22   26.3516 (Limits on Liability of Taxing Unit).
115-23               (10)  "Person" means an individual, trust, firm,
115-24   joint-stock company, corporation, government corporation,
115-25   partnership, association, state, municipality, commission,
115-26   political subdivision of a state, an interstate body, a consortium,
115-27   joint venture, commercial entity, or the United States government.
 116-1               (11) [(10)]  "Petroleum product" means a petroleum
 116-2   product that is obtained from distilling and processing crude oil
 116-3   and that is capable of being used as a fuel for the propulsion of a
 116-4   motor vehicle or aircraft, including motor gasoline, gasohol, other
 116-5   alcohol blended fuels, aviation gasoline, kerosene, distillate fuel
 116-6   oil, and #1 and #2 diesel.  The term does not include naphtha-type
 116-7   jet fuel, kerosene-type jet fuel, or a petroleum product destined
 116-8   for use in chemical manufacturing or feedstock of that
 116-9   manufacturing.
116-10               (12) [(11)]  "Petroleum storage tank" means:
116-11                     (A)  any one or combination of aboveground
116-12   storage tanks that contain petroleum products and that are
116-13   regulated by the commission; or
116-14                     (B)  any one or combination of underground
116-15   storage tanks and any connecting underground pipes that contain
116-16   petroleum products and that are regulated by the commission.
116-17               (13) [(12)]  "Regulated substance" means an element,
116-18   compound, mixture, solution, or substance that, when released into
116-19   the environment, may present substantial danger to the public
116-20   health, welfare, or the environment.
116-21               (14) [(13)]  "Release" means any spilling including
116-22   overfills, leaking, emitting, discharging, escaping, leaching, or
116-23   disposing from an underground or aboveground storage tank into
116-24   groundwater, surface water, or subsurface soils.
116-25               (15) [(14)]  "Risk-based corrective action" means site
116-26   assessment or site remediation, the timing, type, and degree of
116-27   which is determined according to case-by-case consideration of
 117-1   actual or potential risk to public health from environmental
 117-2   exposure to a regulated substance released from a leaking
 117-3   underground or aboveground storage tank.
 117-4               (16) [(15)]  "Spent oil" means a regulated substance
 117-5   that is a lubricating oil or similar petroleum substance which has
 117-6   been refined from crude oil, used for its designed or intended
 117-7   purposes, and contaminated as a result of that use by physical or
 117-8   chemical impurities, including spent motor vehicle lubricating
 117-9   oils, transmission fluid, or brake fluid.
117-10               (17) [(16)]  "Underground storage tank" means any one
117-11   or combination of underground tanks and any connecting underground
117-12   pipes used to contain an accumulation of regulated substances, the
117-13   volume of which, including the volume of the connecting underground
117-14   pipes, is 10 percent or more beneath the surface of the ground.
117-15               (18) [(17)]  "Vehicle service and fueling facility"
117-16   means a facility where motor vehicles are serviced or repaired and
117-17   where petroleum products are stored and dispensed from fixed
117-18   equipment into the fuel tanks of motor vehicles.
117-19         SECTION 13.02. Sections 26.346(a) and (c), Water Code, are
117-20   amended to read as follows:
117-21         (a)  An underground or aboveground storage tank must be
117-22   registered with the commission unless the tank is exempt from
117-23   regulation under Section 26.344 of this code or the tank is covered
117-24   under Subsection (b) of this section.  The commission by rule shall
117-25   establish the procedures and requirements for establishing and
117-26   maintaining current registration information concerning underground
117-27   and aboveground storage tanks.  The commission shall also require
 118-1   that an owner or operator of an underground storage tank used for
 118-2   storing motor fuels (as defined in commission rule) complete an
 118-3   annual underground storage tank compliance certification form.
 118-4         (c)  The commission shall issue to each person who owns or
 118-5   operates a petroleum storage tank that is registered under this
 118-6   section a registration and compliance confirmation certificate that
 118-7   includes a brief description of:
 118-8               (1)  the responsibility of the owner or operator under
 118-9   Section 26.3512 of this code;
118-10               (2)  the rights of the owner or operator to participate
118-11   in the petroleum storage tank remediation account and the
118-12   groundwater protection cleanup program established under this
118-13   subchapter; and
118-14               (3)  the responsibility of the owner or operator of an
118-15   underground storage tank to accurately complete the part of the
118-16   registration form pertaining to the certification of compliance
118-17   with underground storage tank administrative requirements and
118-18   technical standards if the tank is used for storing motor fuels (as
118-19   defined in commission rule).
118-20         SECTION 13.03. Section 26.351, Water Code, is amended by
118-21   adding Subsections (f), (g), and (h) to read as follows:
118-22         (f)  The person performing corrective action under this
118-23   section, if the release was reported to the commission on or before
118-24   December 22, 1998, shall meet the following deadlines:
118-25               (1)  a complete site assessment and risk assessment
118-26   (including, but not limited to, risk-based criteria for
118-27   establishing target concentrations), as determined by the executive
 119-1   director, must be received by the agency no later than September 1,
 119-2   2002;
 119-3               (2)  a complete Corrective Action Plan, as determined
 119-4   by the executive director and including, but not limited to,
 119-5   completion of pilot studies and recommendation of a cost-effective
 119-6   and technically appropriate remediation methodology, must be
 119-7   received by the agency no later than September 1, 2003.  The person
 119-8   may, in lieu of this requirement, submit by this same deadline a
 119-9   demonstration that a Corrective Action Plan is not required for the
119-10   site in question under commission rules.  Such demonstration must
119-11   be to the executive director's satisfaction;
119-12               (3)  for those sites found under Subdivision (2) to
119-13   require a Corrective Action Plan, that plan must be initiated and
119-14   proceeding according to the requirements and deadlines in the
119-15   approved plan no later than March 1, 2004;
119-16               (4)  for sites which require either a Corrective Action
119-17   Plan or groundwater monitoring, a comprehensive and accurate annual
119-18   status report concerning those activities must be submitted to the
119-19   agency;
119-20               (5)  for sites which require either a Corrective Action
119-21   Plan or groundwater monitoring, all deadlines set by the executive
119-22   director concerning the Corrective Action Plan or approved
119-23   groundwater monitoring plan shall be met; and
119-24               (6)  site closure requests for all sites where the
119-25   executive director agreed in writing that no Corrective Action Plan
119-26   was required must be received by the agency no later than September
119-27   1, 2005.  The request must be complete, as judged by the executive
 120-1   director.
 120-2         (g)  For persons regulated under Subsection (f), their
 120-3   failure to comply with any deadline listed in Subsection (f) is a
 120-4   violation of this section, and the executive director may enforce
 120-5   such a violation under Chapter 7 of this code.  A missed deadline
 120-6   that is the fault of the person, his agent, or contractor shall
 120-7   also eliminate reimbursement eligibility as described by Section
 120-8   26.3571(b).  If it can be established to the executive director's
 120-9   satisfaction that the deadline was not missed at the fault of the
120-10   person, his agent, or contractor, then reimbursement eligibility is
120-11   not affected under this subsection.
120-12         (h)  A person's liability to perform corrective action under
120-13   this chapter is unrelated to any possible reimbursements the person
120-14   may be eligible for under Section 26.3571.
120-15         SECTION 13.04. Section 26.3512(b), Water Code, is amended to
120-16   read as follows:
120-17         (b)  Funds from the petroleum storage tank remediation
120-18   account may not be used to pay, and the owner or operator of a
120-19   petroleum storage tank ordered by the commission to take corrective
120-20   action is responsible for payment of, the following:
120-21               (1)  the owner or operator contribution described by
120-22   Subsections (e)-(k);
120-23               (2)  any expenses for corrective action that exceed the
120-24   applicable amount specified by Section 26.3573(m);
120-25               (3)  any expenses for corrective action that are not
120-26   covered by payment from the petroleum storage tank remediation
120-27   account under the rules or decisions of the commission under this
 121-1   subchapter;
 121-2               (4)  any expenses for corrective action not ordered or
 121-3   agreed to by the commission; [or]
 121-4               (5)  any expenses for corrective action incurred for
 121-5   confirmed releases initially discovered and reported to the
 121-6   commission after December 22, 1998; and
 121-7               (6)  any corrective action expenses for which
 121-8   reimbursement is prohibited under Section 26.3571, 26.3573, or
 121-9   26.361.
121-10         SECTION 13.05. Section 26.355(d), Water Code, is amended to
121-11   read as follows:
121-12         (d)  If the commission uses money from the petroleum storage
121-13   tank remediation account for corrective action or enforcement and
121-14   if the costs are recovered under this section, the commission may
121-15   not recover more than the amount of the applicable owner or
121-16   operator contribution described by Section 26.3512[(e)] of this
121-17   code from an eligible owner or operator for corrective action for
121-18   each occurrence.  However, this limitation is not applicable to
121-19   cost recovery actions initiated by the executive director at sites
121-20   where the executive director has determined that the owner or
121-21   operator is in violation of Section 26.351(f).
121-22         SECTION 13.06. Section 26.3571, Water Code, is amended by
121-23   amending Subsection (b) and adding Subsections (g) and (h) to read
121-24   as follows:
121-25         (b)  To be an eligible owner or operator for purposes of this
121-26   subchapter, a person must not have missed any of the deadlines
121-27   described in Section 26.351(f) and must:
 122-1               (1)  be one of the following:
 122-2                     (A)  an owner or operator of a petroleum storage
 122-3   tank that is subject to regulation under this subchapter;
 122-4                     (B)  an owner of land that can clearly prove that
 122-5   the land has been contaminated by a release of petroleum products
 122-6   from a petroleum storage tank that is subject to regulation under
 122-7   this subchapter, whether or not the tank is still attached to that
 122-8   land; or
 122-9                     (C)  a lender that has a bona fide security or
122-10   lienhold interest in or mortgage lien on any property contaminated
122-11   by the release of petroleum products from a petroleum storage tank
122-12   subject to regulation under this subchapter, or that forecloses on
122-13   or receives an assignment or deed in lieu of foreclosure and
122-14   becomes the owner of such property;
122-15               (2)  be in compliance with this subchapter as
122-16   determined by the commission; and
122-17               (3)  meet qualifying criteria established by the
122-18   commission under Subsection (a)  of this section.
122-19         (g)  An otherwise eligible owner or operator who misses a
122-20   deadline referenced in Subsection (b) shall be considered
122-21   ineligible for reimbursement under this subchapter.
122-22         (h)  Nothing in this section reduces the liability to perform
122-23   corrective action created under Section 26.351 and other parts of
122-24   this subchapter.
122-25         SECTION 13.07. Section 26.3572(b), Water Code, is amended to
122-26   read as follows:
122-27         (b)  In administering the program, the commission shall:
 123-1               (1)  negotiate with or direct responsible parties in
 123-2   site assessment and remediation matters using risk-based corrective
 123-3   action;
 123-4               (2)  approve site-specific corrective action plans for
 123-5   each site as necessary, using risk-based corrective action;
 123-6               (3)  review and inspect site assessment and remedial
 123-7   activities and reports;
 123-8               (4)  use risk-based corrective action procedures as
 123-9   determined by commission rule to establish cleanup levels;
123-10               (5)  adopt by rule criteria for assigning a priority to
123-11   each site using risk-based corrective action and assign a priority
123-12   to each site according to those criteria;
123-13               (6)  adopt by rule criteria for:
123-14                     (A)  risk-based corrective action site closures;
123-15   and
123-16                     (B)  the issuance of a closure letter to the
123-17   owner or operator of a tank site on completion of the commission's
123-18   corrective action requirements; and
123-19               (7)  process claims for petroleum storage tank
123-20   remediation account disbursement in accordance with this
123-21   subchapter.
123-22         SECTION 13.08. Section 26.3573, Water Code, is amended by
123-23   amending Subsection (d) and by adding Subsections (r) and (s) to
123-24   read as follows:
123-25         (d)  The commission may use the money in the petroleum
123-26   storage tank remediation account to pay:
123-27               (1)  necessary expenses associated with the
 124-1   administration of the petroleum storage tank remediation account
 124-2   and the groundwater protection cleanup program, not to exceed an
 124-3   amount equal to:  11.8 [6.7] percent of the gross receipts of that
 124-4   account for FY 02/03; 16.40 percent of the gross receipts of that
 124-5   account for FY 04/05; and 21.1 percent of the gross receipts of
 124-6   that account for FY 06/07;
 124-7               (2)  expenses associated with investigation, cleanup,
 124-8   or corrective action measures performed in response to a release or
 124-9   threatened release from a petroleum storage tank, whether those
124-10   expenses are incurred by the commission or pursuant to a contract
124-11   between a contractor and an eligible owner or operator as
124-12   authorized by this subchapter; and
124-13               (3)  subject to the conditions of Subsection (e) of
124-14   this section, expenses associated with investigation, cleanup, or
124-15   corrective action measures performed in response to a release or
124-16   threatened release of hydraulic fluid or spent oil from hydraulic
124-17   lift systems or tanks located at a vehicle service and fueling
124-18   facility and used as part of the operations of that facility.
124-19         (r)  The petroleum storage tank remediation account may not
124-20   be used to reimburse any person for corrective action performed
124-21   after September 1, 2005.
124-22         (s)  The petroleum storage tank remediation account may not
124-23   be used to reimburse any person for corrective action contained in
124-24   a reimbursement claim filed with the commission after March 1,
124-25   2006.
124-26         SECTION 13.09. Sections 26.3574(b), (x), (y), (z), and (aa),
124-27   Water Code, are amended to read as follows:
 125-1         (b)  A fee is imposed on the delivery of a petroleum product
 125-2   on withdrawal from bulk of that product as provided by this
 125-3   subsection.  Each operator of a bulk facility on withdrawal from
 125-4   bulk of a petroleum product shall collect from the person who
 125-5   orders the withdrawal a fee in an amount determined as follows:
 125-6               (1)  $12.50 [$18.75] for each delivery into a cargo
 125-7   tank having a capacity of less than 2,500 gallons for Fiscal Year
 125-8   2002 and Fiscal Year 2003; $10 for each delivery into a cargo tank
 125-9   having a capacity of less than 2,500 gallons for Fiscal Year 2004
125-10   and Fiscal Year 2005; $5 for each delivery into a cargo tank having
125-11   a capacity of less than 2,500 gallons for Fiscal Year 2006; and $2
125-12   for each delivery into a cargo tank having a capacity of less than
125-13   2,500 gallons for Fiscal Year 2007;
125-14               (2)  $25 [$37.50] for each delivery into a cargo tank
125-15   having a capacity of 2,500 gallons or more but less than 5,000
125-16   gallons for Fiscal Year 2002 and Fiscal Year 2003; $20 for each
125-17   delivery into a cargo tank having a capacity of 2,500 gallons or
125-18   more but less than 5,000 gallons for Fiscal Year 2004 and Fiscal
125-19   Year 2005; $10 for each delivery into a cargo tank having a
125-20   capacity of 2,500 gallons or more but less than 5,000 gallons for
125-21   Fiscal Year 2006; and $4 for each delivery into a cargo tank having
125-22   a capacity of 2,500 gallons or more but less than 5,000 gallons for
125-23   Fiscal Year 2007;
125-24               (3)  $37.50 [$56.25] for each delivery into a cargo
125-25   tank having a capacity of 5,000 gallons or more but less than 8,000
125-26   gallons for Fiscal Year 2002 and Fiscal Year 2003; $30 for each
125-27   delivery into a cargo tank having a capacity of 5,000 gallons or
 126-1   more but less than 8,000 gallons for Fiscal Year 2004 and Fiscal
 126-2   Year 2005; $15 for each delivery into a cargo tank having a
 126-3   capacity of 5,000 gallons or more but less than 8,000 gallons for
 126-4   Fiscal Year 2006; and $6 for each delivery into a cargo tank having
 126-5   a capacity of 5,000 gallons or more but less than 8,000 gallons for
 126-6   Fiscal Year 2007;
 126-7               (4)  $50 [$75] for each delivery into a cargo tank
 126-8   having a capacity of 8,000 gallons or more but less than 10,000
 126-9   gallons for Fiscal Year 2002 and Fiscal Year 2003; $40 for each
126-10   delivery into a cargo tank having a capacity of 8,000 gallons or
126-11   more but less than 10,000 gallons for Fiscal Year 2004 and Fiscal
126-12   Year 2005; $20 for each delivery into a cargo tank having a
126-13   capacity of 8,000 gallons or more but less than 10,000 gallons for
126-14   Fiscal Year 2006; and $8 for each delivery into a cargo tank having
126-15   a capacity of 8,000 gallons or more but less than 10,000 gallons
126-16   for Fiscal Year 2007; and
126-17               (5)  a $25 [$37.50] fee for each increment of 5,000
126-18   gallons or any part thereof delivered into a cargo tank having a
126-19   capacity of 10,000 gallons or more for Fiscal Year 2002 and Fiscal
126-20   Year 2003; $20 for each increment of 5,000 gallons or any part
126-21   thereof delivered into a cargo tank having a capacity of 10,000
126-22   gallons or more for Fiscal Year 2004 and Fiscal Year 2005; $10 for
126-23   each increment of 5,000 gallons or any part thereof delivered into
126-24   a cargo tank having a capacity of 10,000 gallons or more for Fiscal
126-25   Year 2006; and $4 for each increment of 5,000 gallons or any part
126-26   thereof delivered into a cargo tank having a capacity of 10,000
126-27   gallons or more for Fiscal Year 2007.
 127-1         (x)  [After the deposits have been made to the credit of the
 127-2   general revenue fund under Section 403.092(c)(1), Government Code,
 127-3   as added by Chapter 533, Acts of the 73rd Legislature, 1993, the
 127-4   fee imposed under this section may not be collected or required to
 127-5   be paid on or after the first day of the second month following
 127-6   notification by the commission of the date on which the unobligated
 127-7   balance in the petroleum storage tank remediation account equals or
 127-8   exceeds $100 million.  The commission shall notify the comptroller
 127-9   in writing of the date on which the unobligated balance equals or
127-10   exceeds $100 million.]
127-11         [(y)  If the unobligated balance in the petroleum storage
127-12   tank remediation account falls below $25 million, the fee shall be
127-13   reinstated, effective on the first day of the second month
127-14   following notification by the commission, in amounts determined as
127-15   follows:]
127-16               [(1)  $9.38 for each delivery into a cargo tank having
127-17   a capacity of less than 2,500 gallons;]
127-18               [(2)  $18.75 for each delivery into a cargo tank having
127-19   a capacity of 2,500 gallons or more but less than 5,000 gallons;]
127-20               [(3)  $28.13 for each delivery into a cargo tank having
127-21   a capacity of 5,000 gallons or more but less than 8,000 gallons;]
127-22               [(4)  $37.50 for each delivery into a cargo tank having
127-23   a capacity of 8,000 gallons or more but less than 10,000 gallons;
127-24   and]
127-25               [(5)  an $18.75 fee for each increment of 5,000 gallons
127-26   or any part thereof delivered into a cargo tank having a capacity
127-27   of 10,000 gallons or more.]
 128-1         [(z)  For purposes of Subsections (x) and (y) of this
 128-2   section, the unobligated balance in the petroleum storage tank
 128-3   remediation account shall be determined by subtracting from the
 128-4   cash balance of the account at the end of each month the sum of the
 128-5   total balances remaining on all contracts entered by the commission
 128-6   or an eligible owner for corrective action plus the total estimates
 128-7   made by the commission of allowable costs for corrective action
 128-8   that are unpaid relating to all  commission orders issued before
 128-9   that date to enforce this subchapter.]
128-10         [(aa)]  The commission shall report to the Legislative Budget
128-11   Board at the end of each fiscal quarter on the financial status of
128-12   the petroleum storage tank remediation account.
128-13         SECTION 13.10. Sections 26.359 and 26.361, Water Code, are
128-14   amended to read as follows:
128-15         Sec. 26.359.  LOCAL REGULATION OR ORDINANCE. (a) In this
128-16   section, "local government" means a school district, county,
128-17   municipality, junior college district, river authority, water
128-18   district or other special district, or other political subdivision
128-19   created under the constitution or a statute of this state.
128-20         (b)  A [This subchapter establishes a unified statewide
128-21   program for underground and surface water protection, and any
128-22   local] regulation or ordinance adopted by a local government that
128-23   imposes standards [is effective only to the extent the regulation
128-24   or ordinance does not conflict with the standards adopted] for the
128-25   design, construction, installation, or operation of underground
128-26   storage tanks is not valid [under this subchapter].
128-27         (c)  This section does not apply to a regulation or ordinance
 129-1   in effect as of January 1, 2001.
 129-2         Sec. 26.361.  EXPIRATION OF REIMBURSEMENT PROGRAM. [(a)]
 129-3   Notwithstanding any other provision of this subchapter, the
 129-4   reimbursement program established under this subchapter expires
 129-5   September 1, 2006 [2003]. On or after September 1, 2006 [2003], the
 129-6   commission may not use money from the petroleum storage tank
 129-7   remediation account to reimburse an eligible owner or operator for
 129-8   any expenses of corrective action or to pay the claim of a person
 129-9   who has contracted with an eligible owner or operator to perform
129-10   corrective action.
129-11         [(b)  On or after March 1, 2002, the commission may not
129-12   collect a fee under Section 26.3574 of this code.]
129-13                ARTICLE 14.  LITTER AND WASTE; RECYCLING
129-14         SECTION 14.01.  DEFINITIONS.  In this article:
129-15               (1)  "Commission" means the Texas Natural Resource
129-16   Conservation Commission.
129-17               (2)  "Recycling" has the meaning assigned by Section
129-18   361.003, Health and Safety Code.
129-19         SECTION 14.02.  STUDY AND REPORT.  (a)  In connection with
129-20   the commission's duties under Section 361.0151, Health and Safety
129-21   Code,  the commission shall conduct a study to compare various
129-22   strategies to minimize litter and waste and to encourage recycling.
129-23   The commission shall analyze strategies used in other states,
129-24   including:
129-25               (1)  bottle deposit laws and the impact of these laws
129-26   on litter reduction and recycling;
129-27               (2)  voluntary and mandatory curbside recycling
 130-1   programs and the impact of these programs on recycling;
 130-2               (3)  voluntary cleanup programs and the impact of these
 130-3   programs on litter reduction; and
 130-4               (4)  other strategies that encourage litter reduction,
 130-5   the collection of recyclable materials, and the development of
 130-6   recycled products.
 130-7         (b)  The commission shall prepare a written report of the
 130-8   findings of the study required by this section and submit the
 130-9   report to the governor, lieutenant governor, and speaker of the
130-10   house of representatives not later than May 1, 2002.
130-11         SECTION 14.03.  EXPIRATION.  This article expires January 1,
130-12   2003.
130-13        ARTICLE 15.  EMISSIONS REQUIREMENTS FOR VEHICLES IN FLEET
130-14         SECTION 15.01. Section 1232.104(a), Government Code, is
130-15   amended to read as follows:
130-16         (a)  If the authority determines that a project is
130-17   financially viable and sufficient revenue is or will be available,
130-18   the authority may issue and sell obligations the proceeds of which
130-19   shall be used for the financing of:
130-20               (1)  the conversion of state agency vehicles and other
130-21   sources of substantial energy output to an alternative fuel [under
130-22   Subchapter A, Chapter 2158];
130-23               (2)  the construction, acquisition, or maintenance by
130-24   the commission of fueling stations supplying alternative fuels or
130-25   equipment enhancing the use of engine-driven technology to support
130-26   state agency vehicles and other energy applications that use an
130-27   alternative fuel;
 131-1               (3)  the conversion of school district motor vehicles
 131-2   and other sources of substantial energy output to an alternative
 131-3   fuel;
 131-4               (4)  the construction, acquisition, or maintenance by a
 131-5   school district of fueling stations supplying alternative fuels or
 131-6   equipment enhancing the use of engine-driven technology to support
 131-7   school district motor vehicles and other energy applications that
 131-8   use an alternative fuel;
 131-9               (5)  the conversion of local mass transit authority or
131-10   department motor vehicles and other sources of substantial energy
131-11   output to an alternative fuel [under Chapters 451, 452, and 453,
131-12   Transportation Code];
131-13               (6)  the construction, acquisition, or maintenance of
131-14   fueling stations supplying alternative fuels or equipment enhancing
131-15   the use of engine-driven technology by a local mass transit
131-16   authority or department to support transit authority or department
131-17   vehicles and other energy applications that use an alternative
131-18   fuel;
131-19               (7)  the conversion of motor vehicles and other sources
131-20   of substantial energy output of a county, a municipality, or a
131-21   public health district established under Chapter 121, [local
131-22   government, as defined by Section 382.003,] Health and Safety Code,
131-23   to an alternative fuel [under Section 382.134, Health and Safety
131-24   Code];
131-25               (8)  the conversion of motor vehicles and other sources
131-26   of substantial energy output of a hospital district or authority, a
131-27   housing authority, or a district or authority created under Section
 132-1   52, Article III, Texas Constitution, or Section 59, Article XVI,
 132-2   Texas Constitution, to an alternative fuel;
 132-3               (9)  the construction, acquisition, or maintenance of
 132-4   fueling stations supplying alternative fuels or equipment enhancing
 132-5   the use of engine-driven technology to support motor vehicles and
 132-6   other energy applications that use an alternative fuel by a county,
 132-7   a municipality, or an entity described by Subdivision (8); or
 132-8               (10)  a joint venture between the private sector and a
 132-9   state agency or political subdivision that is required under law to
132-10   use an alternative fuel in the agency's or subdivision's vehicles
132-11   or other energy applications to:
132-12                     (A)  convert vehicles or other sources of
132-13   substantial energy output to an alternative fuel;
132-14                     (B)  develop fueling stations and resources for
132-15   the supply of alternative fuels and engine-driven applications;
132-16                     (C)  aid in the distribution of alternative
132-17   fuels; and
132-18                     (D)  engage in other projects to facilitate the
132-19   use of alternative fuels.
132-20         SECTION 15.02. Section 2171.103(b), Government Code, is
132-21   amended to read as follows:
132-22         (b)  The office may:
132-23               (1)  establish centralized refueling stations
132-24   throughout the state;
132-25               (2)  operate regional conversion and repair facilities;
132-26   and
132-27               (3)  provide all services and support necessary to
 133-1   expedite the use of compressed natural gas or other alternative
 133-2   fuels by state agencies [as required by Subchapter A, Chapter
 133-3   2158].
 133-4         SECTION 15.03. Chapter 382, Health and Safety Code, is
 133-5   amended by adding Subchapter G to read as follows:
 133-6                SUBCHAPTER G.  TEXAS CLEAN FLEET PROGRAM
 133-7         Sec. 382.151.  DEFINITIONS. In this subchapter:
 133-8               (1)  "Affected area" means the following counties:
 133-9   Anderson, Angelina, Aransas, Atascosa, Austin, Bastrop, Bee, Bell,
133-10   Bexar, Bosque, Bowie, Brazoria, Brazos, Burleson, Caldwell,
133-11   Calhoun, Camp, Cass, Chambers, Cherokee, Collin, Colorado, Comal,
133-12   Cooke, Coryell, Dallas, De Witt, Delta, Denton, Ellis, El Paso,
133-13   Falls, Fannin, Fayette, Fort Bend, Franklin, Freestone, Galveston,
133-14   Goliad, Gonzales, Grayson, Gregg, Grimes, Guadalupe, Hardin,
133-15   Harris, Harrison, Hays, Henderson, Hill, Hood, Hopkins, Houston,
133-16   Hunt, Jackson, Jasper, Jefferson, Johnson, Karnes, Kaufman, Lamar,
133-17   Lavaca, Lee, Leon, Liberty, Limestone, Live Oak, Madison, Marion,
133-18   Matagorda, McLennan, Milam, Montgomery, Morris, Nacogdoches,
133-19   Navarro, Newton, Nueces,  Orange, Panola, Parker, Polk, Rains, Red
133-20   River, Refugio, Robertson, Rockwall, Rusk, Sabine, San Jacinto, San
133-21   Patricio, San Augustine, Shelby, Smith, Somervell, Tarrant, Titus,
133-22   Travis, Trinity, Tyler, Upshur, Van Zandt, Victoria, Walker,
133-23   Waller, Washington, Wharton, Williamson, Wilson, Wise, and Wood.
133-24               (2)  "Annually" means the 12-month period from
133-25   September 1 through August 31.
133-26               (3)  "Lease" means the exclusive use and control of a
133-27   motor vehicle pursuant to a contractual agreement for a term of 120
 134-1   days or more for consideration.
 134-2               (4)  "Local government" means a school district,
 134-3   county, municipality, junior college district, river authority, or
 134-4   any other special district, or political subdivision created under
 134-5   the constitution or a statute of this state.  The term does not
 134-6   include a mass transit authority or a state agency.
 134-7               (5)  "Mass transit authority" means a transportation or
 134-8   transit authority or a department established under Chapter 451,
 134-9   452, 453, or 457, Transportation Code, that operates a mass transit
134-10   system.
134-11               (6)  "Motor vehicle" means a self-propelled device
134-12   designed to transport persons or property on a highway that is
134-13   required to be registered under Chapter 502, Transportation Code,
134-14   and that has a gross vehicle weight rating of 10,000 pounds or
134-15   less.  The term does not include:
134-16                     (A)  a motor vehicle used exclusively for law
134-17   enforcement or emergency purposes;
134-18                     (B)  a motor vehicle used in the maintenance or
134-19   repair of underground mass transit facilities that is required by
134-20   federal law to operate on diesel fuel;
134-21                     (C)  a motor vehicle used for manufacturer
134-22   product evaluations or tests, including a motor vehicle owned or
134-23   held by a university research department, independent testing
134-24   laboratory, another evaluation facility, or a state agency whose
134-25   primary purpose is to evaluate performance of motor vehicles for
134-26   engineering, research, and development or quality control reasons;
134-27   or
 135-1                     (D)  a motor vehicle held for sale by a motor
 135-2   vehicle dealer, including a demonstration vehicle.
 135-3               (7)  "State agency" means a board, commission,
 135-4   department, office, agency, institution of higher education, or
 135-5   other governmental entity in the executive, judicial, or
 135-6   legislative branch of state government.
 135-7         Sec. 382.152.  APPLICABILITY.  This subchapter applies only
 135-8   to:
 135-9               (1)  a state agency that owns, operates, or leases a
135-10   fleet of 15 or more motor vehicles in this state;
135-11               (2)  a local government that owns, operates, or leases
135-12   a fleet of 25 or more motor vehicles in an affected area;
135-13               (3)  a mass transit authority that owns, operates, or
135-14   leases a fleet of 25 or more vehicles in an affected area; or
135-15               (4)  any other person who owns, operates, or leases a
135-16   fleet of 25 or more motor vehicles.
135-17         Sec. 382.153.  PURCHASING AND LEASING REQUIREMENTS. (a)  The
135-18   following percentages of motor vehicles purchased or leased
135-19   annually by a state agency, mass transit authority, local
135-20   government, or other person may not exceed an average of oxides of
135-21   nitrogen standards of bin 3, 40 C.F.R. 86.1811-04 as published in
135-22   the February 10, 2000, Federal Register for Tier 2 exhaust emission
135-23   standards:
135-24               (1)  25 percent of vehicles purchased or leased on or
135-25   after September 1, 2003;
135-26               (2)  50 percent of vehicles purchased or leased on or
135-27   after September 1, 2004;
 136-1               (3)  65 percent of vehicles purchased or leased on or
 136-2   after September 1, 2005;
 136-3               (4)  80 percent of vehicles purchased or leased on or
 136-4   after September 1, 2006;
 136-5               (5)  90 percent of vehicles purchased or leased on or
 136-6   after September 1, 2007; and
 136-7               (6)  100 percent of vehicles purchased or leased on or
 136-8   after September 1, 2008.
 136-9         (b)  A state agency, mass transit authority, local
136-10   government, or other person may purchase or lease a motor vehicle
136-11   that is converted to a fuel or power source other than gasoline or
136-12   diesel to satisfy the percentage requirements under this section.
136-13         (c)  All motor vehicles purchased or leased under this
136-14   section must be certified to meet the federal Tier 2 exhaust
136-15   emission bin standards.
136-16         (d)  The commission may waive the requirements of this
136-17   section or reduce the percentage requirements of this section if:
136-18               (1)  the state agency, mass transit authority, local
136-19   government, or any other person demonstrates by evidence acceptable
136-20   to the commission that motor vehicles that meet the specific
136-21   average exhaust emission standard for oxides of nitrogen under
136-22   Subsection (a) are not available for purchase or lease in this
136-23   state; or
136-24               (2)  a mass transit authority demonstrates by evidence
136-25   acceptable to the commission that complying with the requirements
136-26   would unduly compromise a public transportation alternative that
136-27   reduces motor vehicle miles traveled.
 137-1         Sec. 382.154.  ADOPTION OF RULES. The commission shall adopt
 137-2   rules to implement this subchapter.
 137-3         Sec. 382.155.  REPORTING REQUIREMENTS. The commission by rule
 137-4   shall require each state agency, mass transit authority, local
 137-5   government, or other person to whom this subchapter applies to
 137-6   maintain records and submit reports to demonstrate compliance with
 137-7   this subchapter.
 137-8         Sec. 382.156.  RELATIONSHIP TO OTHER LAW. This subchapter
 137-9   does not require the purchase or lease of a motor vehicle in
137-10   violation of the alternative fuel transportation program under the
137-11   Energy Policy Act of 1992 (Pub. L. No. 102-486), as amended, or any
137-12   other applicable federal or state law.
137-13         SECTION 15.04. Section 113.287(e), Natural Resources Code, is
137-14   amended to read as follows:
137-15         (e)  A state agency, county, municipality, school district,
137-16   or mass transit authority or department is eligible to receive a
137-17   loan, grant, or other disbursement under this subchapter to carry
137-18   out an eligible conversion or infrastructure project regarding LPG
137-19   or another environmentally beneficial fuel [to comply with fuel
137-20   requirements provided by or by rules adopted under:]
137-21               [(1)  Subchapter F, Chapter 382, Health and Safety
137-22   Code;]
137-23               [(2)  Subchapter A, Chapter 2158, Government Code;]
137-24               [(3)  Subchapter C, Chapter 2171, Government Code;]
137-25               [(4)  Subchapter G, Chapter 451, Transportation Code;]
137-26               [(5)  Subchapter F, Chapter 452, Transportation Code;
137-27   or]
 138-1               [(6)  Subchapter F, Chapter 453, Transportation Code].
 138-2         SECTION 15.05. Section 5.178(b), Water Code, is amended to
 138-3   read as follows:
 138-4         (b)  The report due by December 1 of an even-numbered year
 138-5   must [shall] include, in addition:
 138-6               (1)  the commission's recommendations for necessary and
 138-7   desirable legislation; and
 138-8               (2)  the following reports:
 138-9                     (A)  the assessments and reports required by
138-10   Sections 361.0219(c), 361.0232, [361.485,] 361.510, and 371.063,
138-11   [and 382.141,] Health and Safety Code; and
138-12                     (B)  the reports required by Section 26.0135(d)
138-13   of this code and Section 5.02, Chapter 133, Acts of the 69th
138-14   Legislature, Regular Session, 1985.
138-15         SECTION 15.06. The following laws are repealed:
138-16               (1)  Subchapter A, Chapter 2158, Government Code;
138-17               (2)  Subchapter F, Chapter 382, Health and Safety Code;
138-18               (3)  Subchapter G, Chapter 451, Transportation Code;
138-19               (4)  Subchapter F, Chapter 452, Transportation Code;
138-20               (5)  Subchapter F, Chapter 453, Transportation Code;
138-21   and
138-22               (6)  Subchapter E, Chapter 457, Transportation Code.
138-23         SECTION 15.07. The Texas Natural Resource Conservation
138-24   Commission shall examine the feasibility and effectiveness of fleet
138-25   program requirements similar to the requirements under Subchapter
138-26   G, Chapter 382, Health and Safety Code, as added by this article,
138-27   for motor vehicles that have a gross vehicle weight rating of more
 139-1   than 10,000 pounds.  The commission shall report its findings and
 139-2   recommendations to the legislature by December 1, 2002.
 139-3         SECTION 15.08. (a)  Except as otherwise provided by this
 139-4   section, this article takes effect September 1, 2001.
 139-5         (b)  The sections of this article that amend Sections
 139-6   1232.104(a) and 2171.103(b), Government Code, Section 113.287(e),
 139-7   Natural Resources Code, and Section 5.178(b), Water Code, take
 139-8   effect September 1, 2003.
 139-9         (c)  The section of this article that repeals certain
139-10   statutes takes effect September 1, 2003.
139-11                ARTICLE 16.  REGULATION OF AIR POLLUTION
139-12         SECTION 16.01.  Section 382.019(a), Health and Safety Code,
139-13   is amended to read as follows:
139-14         (a)  Except as provided by Section 382.037(g), or another
139-15   provision of this chapter, the [The] commission by rule may provide
139-16   requirements concerning the particular method to be used to control
139-17   and reduce emissions from engines used to propel land vehicles.
139-18         SECTION 16.02.  Section 382.037, Health and Safety Code, is
139-19   amended by amending Subsection (g) and adding Subsections (h) and
139-20   (i) to read as follows:
139-21         (g)  The commission may not establish, before January 1,
139-22   2004, vehicle fuel content standards to provide for vehicle fuel
139-23   content for clean motor vehicle fuels for any area of the state
139-24   that are more stringent or restrictive [other] than those standards
139-25   promulgated by the United States Environmental Protection Agency
139-26   applicable to that area except as provided in Subsection (h) unless
139-27   the fuel is specifically authorized by the legislature [or unless
 140-1   it is demonstrated to be necessary for the attainment of federal
 140-2   ozone ambient air quality standards or, following appropriate
 140-3   health studies and in consultation with the Texas Department of
 140-4   Health, it is determined to be necessary for the protection of
 140-5   public health].
 140-6         (h)  The commission may not require the distribution of Texas
 140-7   low-emission diesel as described in revisions to the State
 140-8   Implementation Plan for the control of ozone air pollution prior to
 140-9   February 1, 2005.
140-10         (i)  The commission may consider, as an alternative method of
140-11   compliance with Subsection (h), fuels to achieve equivalent
140-12   emissions reductions.
140-13         SECTION 16.03.  Section 382.039(a), Health and Safety Code,
140-14   is amended to read as follows:
140-15         (a)  Except as provided by Section 382.037(g) or another
140-16   provision of this chapter, the [The] commission shall coordinate
140-17   with federal, state, and local transportation planning agencies to
140-18   develop and implement transportation programs and other measures
140-19   necessary to demonstrate and maintain attainment of national
140-20   ambient air quality standards and to protect the public from
140-21   exposure to hazardous air contaminants from motor vehicles.
140-22         SECTION 16.04.  The changes in law made by this Act do not
140-23   apply to fuel standards adopted by the Texas Natural Conservation
140-24   Commission before September 1, 2000.
140-25         SECTION 16.05. Subchapter C, Chapter 382, Health and Safety
140-26   Code, is amended by adding Section 382.05151 to read as follows:
140-27         Sec. 382.05151.  EFFECT OF PERMIT ON RESEARCH BY INSTITUTIONS
 141-1   OF HIGHER EDUCATION. In issuing a permit under this chapter, the
 141-2   commission shall consider the effects emissions from the facility
 141-3   under the proposed permit may have on research being conducted by
 141-4   an accredited institution of higher education.
 141-5                   ARTICLE 17.  CONFORMING AMENDMENTS
 141-6         SECTION 17.01. Section 5.174(a), Water Code, is amended to
 141-7   read as follows:
 141-8         (a)  Except as otherwise specifically provided by this code
 141-9   and subject to the specific limitations provided by this code, on
141-10   application of any person the commission shall furnish certified or
141-11   other copies of any proceeding or other official record or of any
141-12   map, paper, or document filed with the commission.  A certified
141-13   copy with the seal of the commission and the signature of the
141-14   presiding officer [chairman] of the commission or the executive
141-15   director or chief clerk is admissible as evidence in any court or
141-16   administrative proceeding.
141-17         SECTION 17.02. Section 11.085, Water Code, as it exists after
141-18   the transfer and redesignation of Subsections (f)-(i) by this Act,
141-19   is amended by amending Subsection (d) and relettering Subsections
141-20   (j)-(v) as Subsections (f)-(r) to read as follows:
141-21         (d)  Prior to taking action on an application for an
141-22   interbasin transfer, the commission shall conduct at least one
141-23   public meeting to receive comments in both the basin of origin of
141-24   the water proposed for transfer and the basin receiving water from
141-25   the proposed transfer.  Notice shall be provided pursuant to
141-26   Section 5.652 [Subsection (g) of this section].  Any person may
141-27   present relevant information and data at the meeting on the
 142-1   criteria which the commission is to consider related to the
 142-2   interbasin transfer.
 142-3         (f) [(j)]  In addition to other requirements of this code
 142-4   relating to the review of and action on an application for a new
 142-5   water right or amended permit, certified filing, or certificate of
 142-6   adjudication, the commission shall:
 142-7               (1)  request review and comment on an application for
 142-8   an interbasin transfer from each county judge of a county located
 142-9   in whole or in part in the basin of origin.  A county judge should
142-10   make comment only after seeking advice from the county
142-11   commissioners court; and
142-12               (2)  give consideration to the comments of each county
142-13   judge of a county located in whole or in part in the basin of
142-14   origin prior to taking action on an application for an interbasin
142-15   transfer.
142-16         (g) [(k)]  In addition to other requirements of this code
142-17   relating to the review of and action on an application for a new
142-18   water right or amended permit, certified filing, or certificate of
142-19   adjudication, the commission shall weigh the effects of the
142-20   proposed transfer by considering:
142-21               (1)  the need for the water in the basin of origin and
142-22   in the proposed receiving basin based on the period for which the
142-23   water supply is requested, but not to exceed 50 years;
142-24               (2)  factors identified in the applicable approved
142-25   regional water plans which address the following:
142-26                     (A)  the availability of feasible and practicable
142-27   alternative supplies in the receiving basin to the water proposed
 143-1   for transfer;
 143-2                     (B)  the amount and purposes of use in the
 143-3   receiving basin for which water is needed;
 143-4                     (C)  proposed methods and efforts by the
 143-5   receiving basin to avoid waste and implement water conservation and
 143-6   drought contingency measures;
 143-7                     (D)  proposed methods and efforts by the
 143-8   receiving basin to put the water proposed for transfer to
 143-9   beneficial use;
143-10                     (E)  the projected economic impact that is
143-11   reasonably expected to occur in each basin as a result of the
143-12   transfer; and
143-13                     (F)  the projected impacts of the proposed
143-14   transfer that are reasonably expected to occur on existing water
143-15   rights, instream uses, water quality, aquatic and riparian habitat,
143-16   and bays and estuaries that must be assessed under Sections 11.147,
143-17   11.150, and 11.152 of this code in each basin.  If the water sought
143-18   to be transferred is currently authorized to be used under an
143-19   existing permit, certified filing, or certificate of adjudication,
143-20   such impacts shall only be considered in relation to that portion
143-21   of the permit, certified filing, or certificate of adjudication
143-22   proposed for transfer and shall be based on historical uses of the
143-23   permit, certified filing, or certificate of adjudication for which
143-24   amendment is sought;
143-25               (3)  proposed mitigation or compensation, if any, to
143-26   the basin of origin by the applicant;
143-27               (4)  the continued need to use the water for the
 144-1   purposes authorized under the existing permit, certified filing, or
 144-2   certificate of adjudication, if an amendment to an existing water
 144-3   right is sought; and
 144-4               (5)  the information required to be submitted by the
 144-5   applicant.
 144-6         (h) [(l)]  The commission may grant, in whole or in part, an
 144-7   application for an interbasin transfer only to the extent that:
 144-8               (1)  the detriments to the basin of origin during the
 144-9   proposed transfer period are less than the benefits to the
144-10   receiving basin during the proposed transfer period; and
144-11               (2)  the applicant for the interbasin transfer has
144-12   prepared a drought contingency plan and has developed and
144-13   implemented a water conservation plan that will result in the
144-14   highest practicable levels of water conservation and efficiency
144-15   achievable within the jurisdiction of the applicant.
144-16         (i) [(m)]  The commission may grant new or amended water
144-17   rights under this section with or without specific terms or periods
144-18   of use and with specific conditions under which a transfer of water
144-19   may occur.
144-20         (j) [(n)]  If the transfer of water is based on a contractual
144-21   sale of water, the new water right or amended permit, certified
144-22   filing, or certificate of adjudication authorizing the transfer
144-23   shall contain a condition for a term or period not greater than the
144-24   contract term.
144-25         (k) [(o)]  The parties to a contract for an interbasin
144-26   transfer may include provisions for compensation and mitigation.
144-27   If the party from the basin of origin is a government entity, each
 145-1   county judge of a county located in whole or in part in the basin
 145-2   of origin may provide input on the appropriate compensation and
 145-3   mitigation for the interbasin transfer.
 145-4         (l) [(p)]  For the purposes of this section, a basin is
 145-5   designated as provided in accordance with Section 16.051 of this
 145-6   code.  A basin may not be redesignated in order to allow a transfer
 145-7   or diversion of water otherwise in violation of this section.
 145-8         (m) [(q)]  A person who takes or diverts water in violation
 145-9   of this section is guilty of a misdemeanor and upon conviction is
145-10   punishable by a fine of not more than $1,000 or by confinement in
145-11   the county jail for not more than six months.
145-12         (n) [(r)]  A person commits a separate offense each day he
145-13   continues to take or divert water in violation of this section.
145-14         (o) [(s)]  Any proposed transfer of all or a portion of a
145-15   water right under this section is junior in priority to water
145-16   rights granted before the time application for transfer is accepted
145-17   for filing.
145-18         (p) [(t)]  Any proposed transfer of all or a portion of a
145-19   water right under this section from a river basin in which two or
145-20   more river authorities or water districts created under Section 59,
145-21   Article XVI, Texas Constitution, have written agreements or permits
145-22   that provide for the coordinated operation of their respective
145-23   reservoirs to maximize the amount of water for beneficial use
145-24   within their respective water services areas shall be junior in
145-25   priority to water rights granted before the time application for
145-26   transfer is accepted for filing.
145-27         (q) [(u)]  An appropriator of water for municipal purposes in
 146-1   the basin of origin may, at the appropriator's option, be a party
 146-2   in any hearings under this section.
 146-3         (r) [(v)]  The provisions of this section, except Subsection
 146-4   (a), do not apply to:
 146-5               (1)  a proposed transfer which in combination with any
 146-6   existing transfers totals less than 3,000 acre-feet of water per
 146-7   annum from the same permit, certified filing, or certificate of
 146-8   adjudication;
 146-9               (2)  a request for an emergency transfer of water;
146-10               (3)  a proposed transfer from a basin to its adjoining
146-11   coastal basin; or
146-12               (4)  a proposed transfer from a basin to a county or
146-13   municipality or the municipality's retail service area that is
146-14   partially within the basin for use in that part of the county or
146-15   municipality and the municipality's retail service area not within
146-16   the basin.
146-17         SECTION 17.03. Section 11.132, Water Code, as it exists after
146-18   the transfer and redesignation of Subsections (a)-(c) by this Act,
146-19   is amended by adding new Subsections (a) and (b), relettering
146-20   existing Subsection (f) as Subsection (c), and amending existing
146-21   Subsection (f) to read as follows:
146-22         (a)  Notice shall be given of an application for
146-23   authorization to appropriate unappropriated state water as
146-24   prescribed by Section 5.653.  The commission, on the motion of a
146-25   commissioner or on the request of the executive director or any
146-26   affected person, shall hold a public hearing on the application.
146-27         (b)  The commission may act on the application without
 147-1   holding a public hearing if notice has been given as provided by
 147-2   Section 5.654 and, within 30 days after the date notice is
 147-3   published under Section 5.654(a), a public hearing has not been
 147-4   requested in writing by a commissioner, the executive director, or
 147-5   an affected person who objects to the application.
 147-6         (c) [(f)]  If, on the date specified in the notice prescribed
 147-7   by Section 5.653(c) [Subsection (c) of this section], the
 147-8   commission determines that a public hearing must be held, the
 147-9   matter shall be remanded for hearing without the necessity of
147-10   issuing further notice other than advising all parties of the time
147-11   and place where the hearing is to convene.
147-12         SECTION 17.04. Section 11.139(g), Water Code, is amended to
147-13   read as follows:
147-14         (g)  The requirements of Sections 5.653 and 5.654 [Section
147-15   11.132 of this code] relating to the time for notice, newspaper
147-16   notice, and method of giving a person notice do not apply to a
147-17   hearing held on an application for an emergency authorization under
147-18   this section, but such general notice of the hearing shall be given
147-19   as the commission, under Subsections (c) and (e) [of this section],
147-20   considers practicable under the circumstances.
147-21         SECTION 17.05. Section 11.143, Water Code, as it exists after
147-22   the transfer and redesignation of Subsections (d)-(f) by this Act,
147-23   is amended by adding a new Subsection (d), relettering existing
147-24   Subsections (g)-(i) as Subsections (e)-(g), and amending existing
147-25   Subsection (g) to read as follows:
147-26         (d)  Except as otherwise specifically provided by this
147-27   subsection, before the commission may approve an application and
 148-1   issue a  permit to use water from a dam or reservoir exempted under
 148-2   Section 11.142 for a purpose other than domestic or livestock use,
 148-3   it shall give notice as prescribed by Section 5.655 and hold a
 148-4   hearing as prescribed by this section.  The commission may act on
 148-5   the application without holding a public hearing if the applicant
 148-6   publishes the commission's notice as required by Section 5.656.
 148-7         (e) [(g)]  If on the date specified in the notice prescribed
 148-8   by Section 5.656 [Subsection (d) of this section,] the commission
 148-9   determines that a public hearing must be held, the matter shall be
148-10   remanded for hearing without the necessity of issuing further
148-11   notice other than advising all parties of the time and place where
148-12   the hearing is to convene.
148-13         (f) [(h)]  The applicant shall pay the filing fee prescribed
148-14   by Section 12.111(b) of this code at the time he files the
148-15   application.
148-16         (g) [(i)]  The commission shall approve the application and
148-17   issue the permit as applied for in whole or part if it determines
148-18   that:
148-19               (1)  there is unappropriated water in the source of
148-20   supply;
148-21               (2)  the applicant has met the requirements of this
148-22   section;
148-23               (3)  the water is to be used for a beneficial purpose;
148-24               (4)  the proposed use is not detrimental to the public
148-25   welfare or to the welfare of the locality; and
148-26               (5)  the proposed use will not impair existing water
148-27   rights.
 149-1         SECTION 17.06. Section 11.323(a), Water Code, is amended to
 149-2   read as follows:
 149-3         (a)  When a final determination of the rights to the waters
 149-4   of a stream has been made in accordance with the procedure provided
 149-5   in this subchapter and the time for a rehearing has expired, the
 149-6   commission shall issue to each person adjudicated a water right a
 149-7   certificate of adjudication, signed by the presiding officer of the
 149-8   commission [chairman] and bearing the seal of the commission.
 149-9         SECTION 17.07. Sections 26.0135(a) and (b), Water Code, are
149-10   amended to read as follows:
149-11         (a)  To ensure clean water, the commission shall establish
149-12   the strategic and comprehensive monitoring of water quality and the
149-13   periodic assessment of water quality in each watershed and river
149-14   basin of the state.  In order to conserve public funds and avoid
149-15   duplication of effort, subject to adequate funding under Section
149-16   26.0291 [Subsection (h)], river authorities shall, to the greatest
149-17   extent possible and under the supervision of the commission,
149-18   conduct water quality monitoring and assessments in their own
149-19   watersheds.  Watershed monitoring and assessments involving
149-20   agricultural or silvicultural nonpoint source pollution shall be
149-21   coordinated through the State Soil and Water Conservation Board
149-22   with local soil and water conservation districts.  The water
149-23   quality monitoring and reporting duties under this section apply
149-24   only to a river authority that has entered into an agreement with
149-25   the commission to perform those duties. The commission, either
149-26   directly or through cooperative agreements and contracts with local
149-27   governments, shall conduct monitoring and assessments of watersheds
 150-1   where a river authority is unable to perform an adequate assessment
 150-2   of its own watershed.  The monitoring program shall provide data to
 150-3   identify significant long-term water quality trends, characterize
 150-4   water quality conditions, support the permitting process, and
 150-5   classify unclassified waters.  The commission shall consider
 150-6   available monitoring data and assessment results in developing or
 150-7   reviewing wastewater permits and stream standards and in conducting
 150-8   other water quality management activities.  The assessment must
 150-9   include a review of wastewater discharges, nonpoint source
150-10   pollution, nutrient loading, toxic materials, biological health of
150-11   aquatic life, public education and involvement in water quality
150-12   issues, local and regional pollution prevention efforts, and other
150-13   factors that affect water quality within the watershed.  The
150-14   monitoring and assessment required by this section is a continuing
150-15   duty, and the monitoring and assessment shall be periodically
150-16   revised to show changes in the factors subject to assessment.
150-17         (b)  In order to assist in the coordination and development
150-18   of assessments and reports required by this section, a river
150-19   authority shall organize and lead a basin-wide steering committee
150-20   that includes persons paying fees under Section 26.0291 [Subsection
150-21   (h)], private citizens, the State Soil and Water Conservation
150-22   Board, representatives from other appropriate state agencies,
150-23   political subdivisions, and other persons with an interest in water
150-24   quality matters of the watershed or river basin.  Based on
150-25   committee and public input, each steering committee shall develop
150-26   water quality objectives and priorities that are achievable
150-27   considering the available technology and economic impact.  The
 151-1   objectives and priorities shall be used to develop work plans and
 151-2   allocate available resources under Section 26.0291 [Subsection
 151-3   (h)].  Each committee member shall help identify significant water
 151-4   quality issues within the basin and shall make available to the
 151-5   river authority all relevant water quality data held by the
 151-6   represented entities.  A river authority shall also develop a
 151-7   public input process that provides for meaningful comments and
 151-8   review by private citizens and organizations on each basin summary
 151-9   report.  A steering committee established by the commission to
151-10   comply with this subsection in the absence of a river authority or
151-11   other qualified local government is not subject to Chapter 2110,
151-12   Government Code [Article 6252-33, Revised Statutes].
151-13         SECTION 17.08. Section 26.0135(d), Water Code, as amended by
151-14   Chapters  101 and 1082, Acts of the 75th Legislature, Regular
151-15   Session, 1997, is reenacted and amended to read as follows:
151-16         (d)  In the appropriate year of the cycle provided by
151-17   commission rules adopted to implement Section 26.0285, each river
151-18   authority shall submit a written summary report to the commission,
151-19   State Soil and Water Conservation Board, and Parks and Wildlife
151-20   Department on the water quality assessment of the authority's
151-21   watershed.  The summary report must identify concerns relating to
151-22   the watershed or bodies of water, including an identification of
151-23   bodies of water with impaired or potentially impaired uses, the
151-24   cause and possible source of use impairment, and recommended
151-25   actions the commission may take to address those concerns.  The
151-26   summary report must discuss the public benefits from the water
151-27   quality monitoring and assessment program, including efforts to
 152-1   increase public input in activities related to water quality and
 152-2   the effectiveness of targeted monitoring in assisting the
 152-3   permitting process.  A river authority shall submit a summary
 152-4   report after the report has been approved by the basin steering
 152-5   committee and coordinated with the public and the commission.  A
 152-6   river authority shall hold basin steering committee meetings and
 152-7   shall invite users of water and wastewater permit holders in the
 152-8   watershed who pay fees under Section 26.0291 [Subsection (h)] to
 152-9   review the draft of the work plans and summary report.  A river
152-10   authority shall inform those parties of the availability and
152-11   location of the summary report for inspection and shall solicit
152-12   input from those parties concerning their satisfaction with or
152-13   suggestions for modification of the summary report for the
152-14   watershed, the operation or effectiveness of the watershed
152-15   monitoring and assessment program authorized by this section, and
152-16   the adequacy, use, or equitable apportionment of the program's
152-17   costs and funds.  A river authority shall summarize all comments
152-18   received from persons who pay fees under Section 26.0291
152-19   [Subsection (h)] and from steering committee members and shall
152-20   submit the report and the summaries to the governor, the lieutenant
152-21   governor, and the speaker of the house of representatives not later
152-22   than the 90th day after the date the river authority submits the
152-23   summary report to the commission and other agencies.
152-24         SECTION 17.09. Section 26.022, Water Code, as it exists after
152-25   the transfer and redesignation of Subsections (b) and (c) by this
152-26   Act, is amended by amending Subsection (a), relettering existing
152-27   Subsections (d) and (e) as Subsections (b) and (c), and amending
 153-1   existing Subsections (d) and (e) to read as follows:
 153-2         (a)  Except as otherwise provided in Sections 5.501, 5.504,
 153-3   5.509, and 26.176, the provisions of this section and of Section
 153-4   5.658 apply to all hearings conducted in compliance with this
 153-5   chapter.
 153-6         (b) [(d)]  The individual or individuals holding the hearing,
 153-7   called the hearing body, shall conduct the hearing at the time and
 153-8   place stated in the notice given under Section 5.655.  The hearing
 153-9   body may continue the hearing from time to time and from place to
153-10   place without the necessity of publishing, serving, mailing, or
153-11   otherwise issuing a new notice.
153-12         (c) [(e)]  If a hearing is continued and a time and place for
153-13   the hearing to reconvene are not publicly announced by the person
153-14   conducting the hearing at the hearing before it is recessed, a
153-15   notice of any further setting of the hearing shall be served
153-16   personally or mailed in the manner prescribed by Section 5.658(b)
153-17   [in Subsection (c) of this section] at a reasonable time before the
153-18   new setting, but it is not necessary to publish a newspaper notice
153-19   of the new setting.
153-20         SECTION 17.10. Section 26.028, Water Code, as it exists after
153-21   the transfer and redesignation of Subsections (a), (b), (e), and
153-22   (g) by this Act, is amended by adding a new Subsection (a),
153-23   relettering existing Subsections (c) and (d) as Subsections (b) and
153-24   (c), amending existing Subsection (d), adding a new Subsection (d),
153-25   relettering existing Subsection (f) as Subsection (e), and adding a
153-26   new Subsection (f) to read as follows:
153-27         (a)  Notice of an application for and a hearing on an
 154-1   application for a permit, permit amendment, or permit renewal shall
 154-2   be given as required by Section 5.659.
 154-3         (b) [(c)]  Except as otherwise provided by this section, the
 154-4   commission, on the motion of a commissioner, or on the request of
 154-5   the executive director or any affected person, shall hold a public
 154-6   hearing on the application for a permit, permit amendment, or
 154-7   renewal of a permit.
 154-8         (c) [(d)]  Notwithstanding any other provision of this
 154-9   chapter, the commission, at a regular meeting without the necessity
154-10   of holding a public hearing, may approve an application to renew or
154-11   amend a permit if:
154-12               (1)  the applicant is not applying to:
154-13                     (A)  increase significantly the quantity of waste
154-14   authorized to be discharged; or
154-15                     (B)  change materially the pattern or place of
154-16   discharge;
154-17               (2)  the activities to be authorized by the renewed or
154-18   amended permit will maintain or improve the quality of waste
154-19   authorized to be discharged;
154-20               (3)  for NPDES permits, notice and the opportunity to
154-21   request a public meeting shall be given in compliance with NPDES
154-22   program requirements, and the commission shall consider and respond
154-23   to all timely received and significant public comment; and
154-24               (4)  the commission determines that an applicant's
154-25   compliance history during [for] the period established  by the
154-26   commission under Section 5.754 for consideration of compliance
154-27   history [preceding five years] raises no issues regarding the
 155-1   applicant's ability to comply with a material term of its permit.
 155-2         (d)  Notice of an application under Subsection (c) shall be
 155-3   given as provided by Section 5.659(c) and the persons notified
 155-4   under that section may present information to the commission on the
 155-5   application.
 155-6         (e) [(f)]  An application to renew a permit for a confined
 155-7   animal feeding operation which was issued between July 1, 1974, and
 155-8   December 31, 1977, may be set for consideration and may be acted on
 155-9   by the commission at a regular meeting without the necessity of
155-10   holding a public hearing if the applicant does not seek to
155-11   discharge into or adjacent to water in the state and does not seek
155-12   to change materially the pattern or place of disposal.
155-13         (f)  For the purposes of Subsection (a), the commission may
155-14   act on an application without holding a public hearing if notice is
155-15   given as provided by Section 5.660 and, within 30 days after the
155-16   date of the publication of notice under Section 5.660(a), neither a
155-17   commissioner, the executive director, nor an affected person who
155-18   objects to the application has requested a public hearing.
155-19         SECTION 17.11. Section 26.0281, Water Code, is amended to
155-20   read as follows:
155-21         Sec. 26.0281.  CONSIDERATION OF [PAST PERFORMANCE AND]
155-22   COMPLIANCE HISTORY. In considering the issuance, amendment, or
155-23   renewal of a permit to discharge effluent comprised primarily of
155-24   sewage or municipal waste, the commission shall consider the [any
155-25   adjudicated decision on or] compliance history [proceeding
155-26   addressing past performance and compliance] of the applicant and
155-27   its operator under the method for evaluating compliance history
 156-1   developed by the commission under Section 5.754 [with the laws of
 156-2   this state governing waste discharge, waste treatment, or waste
 156-3   disposal facilities and with the terms of any permit or order
 156-4   issued by the commission].
 156-5         SECTION 17.12. Section 26.040, Water Code, as it exists after
 156-6   the transfer and redesignation of Subsection (b) by this Act, is
 156-7   amended by relettering Subsections (c)-(m) as Subsections (b)-(l)
 156-8   and amending existing Subsections (h) and (i) to read as follows:
 156-9         (b) [(c)]  The commission may hold a public meeting to
156-10   provide an additional opportunity for public comment.  The
156-11   commission shall give notice of a public meeting under this
156-12   subsection by publication in the Texas Register not later than the
156-13   30th day before the date of the meeting.
156-14         (c) [(d)]  If the commission receives public comment relating
156-15   to issuance of a general permit, the commission may issue the
156-16   general permit only after responding in writing to the comments.
156-17   The commission shall issue a written response to comments on the
156-18   permit at the same time the commission issues or denies the permit.
156-19   The response is available to the public and shall be mailed to each
156-20   person who made a comment.
156-21         (d) [(e)]  A general permit may provide that a discharger who
156-22   is not covered by an individual permit may obtain authorization to
156-23   discharge waste under a general permit by submitting to the
156-24   commission written notice of intent to be covered by the general
156-25   permit.  A general permit shall specify the deadline for submitting
156-26   and the information required to be included in a notice of intent.
156-27   A general permit may authorize a discharger to begin discharging
 157-1   under the general permit immediately on filing a complete and
 157-2   accurate notice of intent, or it may specify a date or period of
 157-3   time after the commission receives the discharger's notice of
 157-4   intent on which the discharger may begin discharging unless the
 157-5   executive director before that time notifies the discharger that it
 157-6   is not eligible for authorization under the general permit.
 157-7         (e) [(f)]  A general permit may authorize a discharger to
 157-8   discharge without submitting a notice of intent if the commission
 157-9   finds that a notice of intent requirement would be inappropriate.
157-10         (f) [(g)]  Authorization to discharge under a general permit
157-11   does not confer a vested right.  After written notice to the
157-12   discharger, the executive director may suspend a discharger's
157-13   authority to discharge under a general permit and may require a
157-14   person discharging under a general permit to obtain authorization
157-15   to discharge under an individual permit as required by Section
157-16   26.027 or other law.
157-17         (g) [(h)]  Notwithstanding other provisions of this chapter,
157-18   the commission, after hearing, shall deny or suspend a discharger's
157-19   authority to discharge under a general permit if the commission
157-20   determines that the [discharger operates any facility for which
157-21   the] discharger's compliance history  is unacceptable under the
157-22   method of evaluating compliance history   developed by the
157-23   commission under Section 5.754 during the period established by the
157-24   commission under that section for consideration of compliance
157-25   history [contains violations constituting a recurring pattern of
157-26   egregious conduct that demonstrates a consistent disregard for the
157-27   regulatory process, including a failure to make a timely and
 158-1   substantial attempt to correct the violations].  A hearing under
 158-2   this subsection is not subject to Chapter 2001, Government Code.
 158-3         (h) [(i)]  A general permit may be issued for a term not to
 158-4   exceed five years.  After notice and comment as provided by Section
 158-5   5.661 and Subsections (b) and (c) [(b)-(d)], a general permit may
 158-6   be amended, revoked, or canceled by the commission or renewed by
 158-7   the commission for an additional term or terms not to exceed five
 158-8   years each.  A general permit remains in effect until amended,
 158-9   revoked, or canceled by the commission or, unless renewed by the
158-10   commission, until expired.  If before a general permit expires the
158-11   commission proposes to renew that general permit, that general
158-12   permit remains in effect until the date on which the commission
158-13   takes final action on the proposed renewal.
158-14         (i) [(j)]  The commission may through a renewal or amendment
158-15   process for a general permit add or delete requirements or
158-16   limitations to the permit.  The commission shall provide a
158-17   reasonable time to allow a discharger covered by the general permit
158-18   to make the changes necessary to comply with the additional
158-19   requirements.
158-20         (j) [(k)]  The commission may impose a reasonable and
158-21   necessary fee under Section 26.0291 on a discharger covered by a
158-22   general permit.
158-23         (k) [(l)]  The issuance, amendment, renewal, suspension,
158-24   revocation, or cancellation of a general permit or of authority to
158-25   discharge under a general permit is not subject to Subchapters C-F,
158-26   Chapter 2001, Government Code.
158-27         (l) [(m)]  The commission may adopt rules as necessary to
 159-1   implement and administer this section.
 159-2         SECTION 17.13. Section 27.018, Water Code, as it exists after
 159-3   the transfer and redesignation of Subsection (b) by this Act, is
 159-4   amended by adding a new Subsection (b) and amending Subsection (c)
 159-5   to read as follows:
 159-6         (b)  Notice of the opportunity to request a public hearing on
 159-7   a permit application shall be given as provided by Section 5.662.
 159-8         (c)  Before the commission begins to hear testimony in a
 159-9   contested case as defined by Chapter 2001, Government Code,
159-10   evidence must be placed in the record to demonstrate that proper
159-11   notice regarding the hearing was given to affected persons as
159-12   required by commission rules adopted under Section 5.662.  If
159-13   mailed notice to an affected person is required, the commission or
159-14   other party to the hearing shall place evidence in the record that
159-15   notice was mailed to the address of the affected person included in
159-16   the appropriate county tax rolls at the time of mailing.  For the
159-17   purposes of this subsection, the affidavit of the commission
159-18   employee responsible for the mailing of the notice, attesting to
159-19   the fact that notice was mailed to the address included in the tax
159-20   rolls at the time of mailing, shall be prima facie evidence of
159-21   proper mailing.  The commission may not proceed with receipt of
159-22   testimony in a contested case until there is compliance with this
159-23   subsection.
159-24         SECTION 17.14. Sections 27.051(d) and (e), Water Code, are
159-25   amended to read as follows:
159-26         (d)  The commission, in determining if the use or
159-27   installation of an injection well for the disposal of hazardous
 160-1   waste is in the public interest under Subsection (a)(1) [of this
 160-2   section], shall consider, but shall not be limited to the
 160-3   consideration of:
 160-4               (1)  compliance history of the applicant under the
 160-5   method for evaluating compliance history developed by the
 160-6   commission under Section 5.754 and in accordance with the
 160-7   provisions of Subsection (e) [of this section];
 160-8               (2)  whether there is a practical, economic, and
 160-9   feasible alternative to an injection well reasonably available to
160-10   manage the types and classes of hazardous waste; and
160-11               (3)  whether the applicant will maintain sufficient
160-12   public liability insurance for bodily injury and property damage to
160-13   third parties that is caused by sudden and non-sudden accidents or
160-14   will otherwise demonstrate financial responsibility in a manner
160-15   adopted by the commission in lieu of public liability insurance.  A
160-16   liability insurance policy which satisfies the policy limits
160-17   required by the hazardous waste management regulations of the
160-18   commission for the applicant's proposed pre-injection facilities
160-19   shall be deemed "sufficient" under this subdivision if the policy:
160-20                     (A)  covers the injection well; and
160-21                     (B)  is issued by a company that is authorized to
160-22   do business and to write that kind of insurance in this state and
160-23   is solvent and not currently under supervision or in
160-24   conservatorship or receivership in this state or any other state.
160-25         (e)  The commission shall establish a procedure by rule for
160-26   its preparation of compliance summaries relating to the compliance
160-27   history of [compliance and noncompliance by] the applicant in
 161-1   accordance with the method for evaluating compliance history
 161-2   developed by the commission under Section 5.754 [with the rules
 161-3   adopted or orders or permits issued by the commission under this
 161-4   chapter for any injection well for which a permit has been issued
 161-5   under this chapter].  The compliance summaries shall be made
 161-6   available to the applicant and any interested person after the
 161-7   commission has completed its technical review of the permit
 161-8   application and prior to the promulgation of the public notice
 161-9   relating to the issuance of the permit.  Evidence of compliance or
161-10   noncompliance by an applicant for an injection well for the
161-11   disposal of hazardous waste with the rules adopted or orders or
161-12   permits issued by the commission under this chapter may be offered
161-13   by any party at a hearing on the applicant's application and
161-14   admitted into evidence subject to applicable rules of evidence.
161-15   All evidence admitted, including compliance history, shall be
161-16   considered by the commission in determining whether to issue,
161-17   amend, extend or renew a permit.
161-18         SECTION 17.15. Section 361.020(d), Health and Safety Code, is
161-19   amended to read as follows:
161-20         (d)  The commission in developing a comprehensive statewide
161-21   strategic plan shall:
161-22               (1)  consult with:
161-23                     (A)  the agency's waste minimization, recycling,
161-24   or reduction division;
161-25                     (B)  the municipal solid waste management and
161-26   resource recovery advisory council;
161-27                     (C)  the pollution prevention [waste reduction]
 162-1   advisory committee;
 162-2                     (D)  the interagency coordinating council; and
 162-3                     (E)  local governments, appropriate regional and
 162-4   state agencies, businesses, citizen groups, and private waste
 162-5   management firms;
 162-6               (2)  hold public hearings in different regions of the
 162-7   state; and
 162-8               (3)  publish the proposed plan in the Texas Register.
 162-9         SECTION 17.16. Section 361.063, Health and Safety Code, as it
162-10   exists after the transfer and redesignation of Subsection (c) by
162-11   this Act, is amended by adding a new Subsection (c) to read as
162-12   follows:
162-13         (c)  Filing notice with the commission as required by Section
162-14   5.663, Water Code, initiates the preapplication review process.
162-15         SECTION 17.17. Section 361.079, Health and Safety Code, is
162-16   amended by amending the heading to read as follows:
162-17         Sec. 361.079.  [NOTICE CONCERNING RECEIPT OF PERMIT
162-18   APPLICATION;] HEARING PROCEDURES.
162-19         SECTION 17.18. Section 361.079, Health and Safety Code, as it
162-20   exists after the transfer and redesignation of Subsections (a) and
162-21   (c) by this Act, is amended by adding a new Subsection (a) to read
162-22   as follows:
162-23         (a)  Notice for a hearing under Section 361.080 or 361.081 is
162-24   given as provided by Section 5.665, Water Code.  The commission by
162-25   rule shall establish procedures for a public hearing under Section
162-26   361.080 or 361.081.
162-27         SECTION 17.19. Section 361.0791, Health and Safety Code, as
 163-1   it exists after the transfer and redesignation of Subsections (e),
 163-2   (f), and (g) by this Act, is amended by adding a new Subsection (e)
 163-3   to read as follows:
 163-4         (e)  If a meeting is required under Subsection (a), notice of
 163-5   the meeting shall be given as provided by Section 5.666, Water
 163-6   Code.
 163-7         SECTION 17.20. Section 361.080(b), Health and Safety Code, is
 163-8   amended to read as follows:
 163-9         (b)  Notice for a hearing session held under this section
163-10   shall be provided in accordance with Section 5.666, Water Code
163-11   [361.0791].
163-12         SECTION 17.21. Section 361.081, Health and Safety Code, as it
163-13   exists after the transfer and redesignation of Subsections (a) and
163-14   (b) by this Act, is amended by amending the heading, adding a new
163-15   Subsection (a), and relettering and amending Subsection (c) to
163-16   read as follows:
163-17         Sec. 361.081.  [NOTICE OF] HEARING CONCERNING APPLICATION FOR
163-18   A SOLID WASTE FACILITY. (a)  The commission shall require the
163-19   applicant to provide notice of the hearing as provided by Section
163-20   5.667, Water Code.
163-21         (b) [(c)]  In addition to the requirements of Subsection (a),
163-22   the commission shall hold a public meeting and the applicant shall
163-23   give notice concerning the application for a permit for a new
163-24   hazardous waste management facility as provided by Section 5.666,
163-25   Water Code [361.0791].
163-26         SECTION 17.22. Section 361.082, Health and Safety Code, as it
163-27   exists after the transfer and redesignation of Subsection (c) by
 164-1   this Act, is amended by adding a new Subsection (c) and amending
 164-2   Subsection (d) to read as follows:
 164-3         (c)  The commission by rule shall establish procedures for a
 164-4   public hearing on an application for a permit under this section.
 164-5   Notice of the hearing shall be given as provided by Section 5.668,
 164-6   Water Code.
 164-7         (d)  In addition to the hearing held under this section, the
 164-8   commission shall hold a public meeting and the applicant shall give
 164-9   notice as provided by Section 5.666, Water Code [361.0791].
164-10         SECTION 17.23. Sections 361.084(a) and (c), Health and Safety
164-11   Code, are amended to read as follows:
164-12         (a)  The commission by rule shall establish a procedure to
164-13   prepare compliance summaries relating to the applicant's solid
164-14   waste management activities in accordance with the method for
164-15   evaluating compliance history developed by the commission under
164-16   Section 5.754, Water Code.
164-17         (c)  Evidence of compliance or noncompliance by an applicant
164-18   for a solid waste management facility permit with agency rules,
164-19   permits, other orders, or evidence of a final determination of
164-20   noncompliance with federal statutes or statutes of any state during
164-21   [in] the period adopted under Section 5.754, Water Code, for the
164-22   consideration of compliance history [preceding five years]
164-23   concerning solid waste management may be:
164-24               (1)  offered by a party at a hearing concerning the
164-25   application; and
164-26               (2)  admitted into evidence subject to applicable rules
164-27   of evidence.
 165-1         SECTION 17.24. Sections 361.088(d) and (f), Health and Safety
 165-2   Code, are amended to read as follows:
 165-3         (d)  In addition to providing an opportunity for a hearing
 165-4   held under this section, the commission shall hold a public meeting
 165-5   and give notice as provided by Section 5.666, Water Code
 165-6   [361.0791].
 165-7         (f)  Notwithstanding Subsection (e), if the commission
 165-8   determines that an applicant's compliance history for the period
 165-9   adopted under Section 5.754, Water Code, for the consideration of
165-10   compliance history [preceding five years] raises an issue regarding
165-11   the applicant's ability to comply with a material term of its
165-12   permit, the commission shall provide an opportunity to request a
165-13   contested case hearing.
165-14         SECTION 17.25. Section 361.089, Health and Safety Code, as it
165-15   exists after the transfer and redesignation of Subsections (b) and
165-16   (c) by this Act, is amended by adding new Subsections (b) and (c)
165-17   and amending Subsections (a), (e), and (f) to read as follows:
165-18         (a)  The commission may, for good cause, deny or amend a
165-19   permit it issues or has authority to issue for reasons pertaining
165-20   to public health, air or water pollution, or land use, or for
165-21   having a compliance history that is unacceptable under the method
165-22   of evaluating compliance history developed by the commission under
165-23   Section 5.754, Water Code, during the period established by the
165-24   commission under that section for consideration of compliance
165-25   history [a violation of this chapter or other applicable laws or
165-26   rules controlling the management of solid waste].
165-27         (b)  The commission shall provide notice under Section 5.669,
 166-1   Water Code, and an opportunity for a hearing to the permit holder
 166-2   or applicant and persons affected.  The commission may also hold a
 166-3   hearing on its own motion.
 166-4         (c)  The commission by rule shall establish procedures for
 166-5   any public hearing under this section.
 166-6         (e)  The commission may deny an original or renewal permit if
 166-7   it is found, after notice and hearing, that:
 166-8               (1)  the permit holder has a compliance history that is
 166-9   unacceptable under the method of evaluating compliance history
166-10   developed by the commission under Section 5.754, Water Code, during
166-11   the period established by the commission under that section for
166-12   consideration of compliance history [record of environmental
166-13   violations in the preceding five years at the permitted site;]
166-14               [(2)  the applicant has a record of environmental
166-15   violations in the preceding five years at any site owned, operated,
166-16   or controlled by the applicant];
166-17               (2) [(3)]  the permit holder or applicant made a false
166-18   or misleading statement in connection with an original or renewal
166-19   application, either in the formal application or in any other
166-20   written instrument relating to the application submitted to the
166-21   commission, its officers, or its employees;
166-22               (3) [(4)]  the permit holder or applicant is indebted
166-23   to the state for fees, payment of penalties, or taxes imposed by
166-24   this title or by a rule of the commission; or
166-25               (4) [(5)]  the permit holder or applicant is unable to
166-26   ensure that the management of the hazardous waste management
166-27   facility conforms or will conform to this title and the rules of
 167-1   the commission.
 167-2         (f)  Before denying a permit under this section, the
 167-3   commission must find:
 167-4               (1)  that the applicant has a compliance history that
 167-5   is unacceptable under the method of evaluating compliance history
 167-6   developed by the commission under Section 5.754, Water Code, during
 167-7   the period established by the commission under that section for
 167-8   consideration of compliance history [a violation or violations are
 167-9   significant and that the permit holder or applicant has not made a
167-10   substantial attempt to correct the violations]; or
167-11               (2)  that the permit holder or applicant is indebted to
167-12   the state for fees, payment of penalties, or taxes imposed by this
167-13   title or by a rule of the commission.
167-14         SECTION 17.26. Section 382.017, Health and Safety Code, as it
167-15   exists after the transfer and redesignation of Subsection (b) by
167-16   this Act, is amended by adding a new Subsection (b) to read as
167-17   follows:
167-18         (b)  Notice of a public hearing on a proposed rule under this
167-19   section must be given as provided by Section 5.670, Water Code.
167-20         SECTION 17.27. Sections 382.0518(b) and (c), Health and
167-21   Safety Code, are amended to read as follows:
167-22         (b)  The commission shall grant within a reasonable time a
167-23   permit to construct or modify a facility if, from the information
167-24   available to the commission, including information presented at any
167-25   hearing held under Section 382.056(k) [382.056(d)], the commission
167-26   finds:
167-27               (1)  the proposed facility for which a permit or a
 168-1   special permit is sought will use at least the best available
 168-2   control technology, considering the technical practicability and
 168-3   economic reasonableness of reducing or eliminating the emissions
 168-4   resulting from the facility; and
 168-5               (2)  no indication that the emissions from the facility
 168-6   will contravene the intent of this chapter, including protection of
 168-7   the public's health and physical property.
 168-8         (c)  In considering the issuance, amendment, or renewal of a
 168-9   permit, the commission may consider the applicant's compliance
168-10   history, in accordance with the method for evaluating compliance
168-11   history developed by the commission under Section 5.754, Water
168-12   Code, during the period established by the commission under Section
168-13   5.754, Water Code, for the consideration of compliance history [any
168-14   adjudicated decision or compliance proceeding within the five years
168-15   before the date on which the application was filed that addressed
168-16   the applicant's past performance and compliance with the laws of
168-17   this state, another state, or the United States governing air
168-18   contaminants or with the terms of any permit or order issued by the
168-19   commission].
168-20         SECTION 17.28. Section 382.05191(a), Health and Safety Code,
168-21   is amended to read as follows:
168-22         (a)  An applicant for a permit under Section 382.0519 shall
168-23   publish notice of intent to obtain the permit in accordance with
168-24   Section 5.673, Water Code [382.056].
168-25         SECTION 17.29. Section 382.055, Health and Safety Code, as it
168-26   exists after the transfer and redesignation of Subsection (c) by
168-27   this Act, is amended by adding a new Subsection (c) and amending
 169-1   Subsection (d) to read as follows:
 169-2         (c)  The commission shall provide notice to the permit
 169-3   holder, as provided by Section 5.672, Water Code, that the permit
 169-4   is scheduled for review.
 169-5         (d)  In determining whether and under which conditions a
 169-6   preconstruction permit should be renewed, the commission shall
 169-7   consider, at a minimum:
 169-8               (1)  [whether] the compliance history of the facility
 169-9   according to the method developed by the commission under Section
169-10   5.754, Water Code, for the consideration of compliance history [is
169-11   or has been in substantial compliance with this chapter and the
169-12   terms of the existing permit]; and
169-13               (2)  the condition and effectiveness of existing
169-14   emission control equipment and practices.
169-15         SECTION 17.30. Section 382.056, Health and Safety Code, as it
169-16   exists after the transfer and redesignation of Subsections (a)-(c),
169-17   (g), and (i) by this Act, is amended by adding a new Subsection
169-18   (a), relettering Subsections (d)-(f) as Subsections (b)-(d), adding
169-19   a new Subsection (e), relettering Subsections (h) and (j)-(p) as
169-20   Subsections (f)-(m), and amending existing Subsections (h) and (o)
169-21   to read as follows:
169-22         (a)  An applicant for a permit under Section 382.0518 or a
169-23   permit renewal review under Section 382.055 shall publish notice of
169-24   intent to obtain the permit or permit review as provided by Section
169-25   5.673, Water Code.
169-26         (b) [(d)]  The applicant shall make a copy of the application
169-27   available for review and copying at a public place in the county in
 170-1   which the facility or federal source is located or proposed to be
 170-2   located.
 170-3         (c) [(e)]  The applicant, in cooperation with the executive
 170-4   director, may hold a public meeting in the county in which the
 170-5   facility or federal source is located or proposed to be located in
 170-6   order to inform the public about the application and obtain public
 170-7   input.
 170-8         (d) [(f)]  The executive director shall conduct a technical
 170-9   review of and issue a preliminary decision on the application.
170-10         (e)  If, in response to the notice published under Subsection
170-11   (a) for a permit under Section 382.0518 or a permit renewal review
170-12   under Section 382.055, a person requests during the period provided
170-13   by commission rule that the commission hold a public hearing and
170-14   the request is not withdrawn before the date the preliminary
170-15   decision is issued, the applicant shall publish notice of the
170-16   preliminary decision as provided by Section 5.673(d), Water Code,
170-17   and the commission shall seek public comment on the preliminary
170-18   decision.  The commission shall consider the request for public
170-19   hearing under the procedures provided by Section 5.673(e), Water
170-20   Code, and Subsections (g)-(k).  The commission may not seek further
170-21   public comment or hold a public hearing under the procedures
170-22   provided by Section 5.673(e), Water Code, and Subsections (g)-(k)
170-23   in response to a request for a public hearing on an amendment,
170-24   modification, or renewal that would not result in an increase in
170-25   allowable emissions and would not result in the emission of an air
170-26   contaminant not previously emitted.
170-27         (f) [(h)]  If, in response to the notice published under
 171-1   Section 5.673(a), Water Code, [Subsection (a)] for a permit under
 171-2   Section 382.054, a person requests during the public comment period
 171-3   provided by commission rule that the commission hold a public
 171-4   hearing, the commission shall consider the request under the
 171-5   procedures provided by Section 382.0561 and not under the
 171-6   procedures provided by Section 5.673(e), Water Code, and
 171-7   Subsections (g)-(k) [(i)-(n)].
 171-8         (g) [(j)]  The applicant shall make a copy of the preliminary
 171-9   decision available for review and copying at a public place in the
171-10   county in which the facility is located or proposed to be located.
171-11         (h) [(k)]  During the public comment period, the executive
171-12   director may hold one or more public meetings in the county in
171-13   which the facility is located or proposed to be located.  The
171-14   executive director shall hold a public meeting:
171-15               (1)  on the request of a member of the legislature who
171-16   represents the general area in which the facility is located or
171-17   proposed to be located; or
171-18               (2)  if the executive director determines that there is
171-19   substantial public interest in the proposed activity.
171-20         (i) [(l)]  The executive director, in accordance with
171-21   procedures adopted by the commission by rule, shall file with the
171-22   chief clerk of the commission a response to each relevant and
171-23   material public comment on the preliminary decision filed during
171-24   the public comment period.
171-25         (j) [(m)]  The chief clerk of the commission shall transmit
171-26   the executive director's decision, the executive director's
171-27   response to public comments, and instructions for requesting that
 172-1   the commission reconsider the executive director's decision or hold
 172-2   a contested case hearing to:
 172-3               (1)  the applicant;
 172-4               (2)  any person who submitted comments during the
 172-5   public comment period;
 172-6               (3)  any person who requested to be on the mailing list
 172-7   for the permit action; and
 172-8               (4)  any person who timely filed a request for a public
 172-9   hearing in response to the notice published under Subsection (a).
172-10         (k) [(n)]  Except as provided by Section 382.0561, the
172-11   commission shall consider a request that the commission reconsider
172-12   the executive director's decision or hold a public hearing in
172-13   accordance with the procedures provided by Section 5.556, Water
172-14   Code.
172-15         (l) [(o)]  Notwithstanding other provisions of this chapter,
172-16   the commission may hold a hearing on a permit amendment,
172-17   modification, or renewal if the commission determines that the
172-18   application involves a facility for which the applicant's
172-19   compliance history is unacceptable under the method of evaluating
172-20   compliance history developed by the commission under Section 5.754,
172-21   Water Code, during the period established by the commission under
172-22   that section for consideration of compliance history [contains
172-23   violations which are unresolved and which constitute a recurring
172-24   pattern of egregious conduct which demonstrates a consistent
172-25   disregard for the regulatory process, including the failure to make
172-26   a timely and substantial attempt to correct the violations].
172-27         (m) [(p)]  The commission by rule shall provide for
 173-1   additional notice, opportunity for public comment, or opportunity
 173-2   for public hearing to the extent necessary to satisfy a requirement
 173-3   to obtain or maintain delegation or approval of a federal program.
 173-4         SECTION 17.31. Section 382.0561, Health and Safety Code, as
 173-5   it exists after the transfer and redesignation of Subsection (f) by
 173-6   this Act, is amended by adding a new Subsection (f) to read as
 173-7   follows:
 173-8         (f)  Notice of the public comment period and opportunity for
 173-9   a hearing under this section shall be published in accordance with
173-10   Section 5.674, Water Code.
173-11         SECTION 17.32. Section 382.058, Health and Safety Code, as
173-12   amended by Chapters 391 and 406, Acts of the 76th Legislature,
173-13   Regular Session, 1999, is reenacted and amended to read as follows:
173-14         Sec. 382.058.  NOTICE OF AND HEARING ON CONSTRUCTION OF
173-15   CONCRETE PLANT UNDER PERMIT BY RULE, STANDARD PERMIT, OR EXEMPTION
173-16   [PROVISIONS RELATING TO PERMITS BY RULE OR STANDARD PERMITS FOR
173-17   COMMISSION EXEMPTION FOR CONSTRUCTION OF CERTAIN CONCRETE PLANTS].
173-18   (a)  A person may not begin construction on any concrete plant that
173-19   performs wet batching, dry batching, or central mixing under a
173-20   standard permit under Section 382.05195 or a permit by rule adopted
173-21   by the commission under Section 382.05196 unless the person has
173-22   complied with the notice and opportunity for hearing provisions
173-23   under Section 5.673, Water Code, and Section 382.056.
173-24         (b)  This section does not apply to a concrete plant located
173-25   temporarily in the right-of-way, or contiguous to the right-of-way,
173-26   of a public works project.
173-27         (c)  For purposes of this section, only those persons
 174-1   actually residing in a permanent residence within 440 yards of the
 174-2   proposed plant may request a hearing under Section 382.056
 174-3   [382.056(d)] as a person who may be affected.
 174-4         (d)  If the commission considers air dispersion modeling
 174-5   information in the course of adopting an exemption under Section
 174-6   382.057 for a concrete plant that performs wet batching, dry
 174-7   batching, or central mixing, the commission may not require that a
 174-8   person who qualifies for the exemption conduct air dispersion
 174-9   modeling before beginning construction of a concrete plant, and
174-10   evidence regarding air dispersion modeling may not be submitted at
174-11   a hearing under Section 382.056.
174-12         SECTION 17.33. Section 401.110, Health and Safety Code, is
174-13   amended to read as follows:
174-14         Sec. 401.110.  DETERMINATION ON LICENSE. In making a
174-15   determination whether to grant, deny, amend, revoke, suspend, or
174-16   restrict a license or registration, the [department or] commission
174-17   may consider [those aspects of] an applicant's or license holder's
174-18   [background that bear materially on the ability to fulfill the
174-19   obligations of licensure, including] technical competence and
174-20   compliance history under the method for evaluation of compliance
174-21   history developed by the commission under Section 5.754, Water Code
174-22   [the applicant's or license holder's record in areas involving
174-23   radiation].
174-24         SECTION 17.34. Section 401.112(a), Health and Safety Code, is
174-25   amended to read as follows:
174-26         (a)  The department or commission, within its jurisdiction,
174-27   in making a licensing decision on a specific license application to
 175-1   process or dispose of low-level radioactive waste from other
 175-2   persons, shall consider:
 175-3               (1)  site suitability, geological, hydrological, and
 175-4   meteorological factors, and natural hazards;
 175-5               (2)  compatibility with present uses of land near the
 175-6   site;
 175-7               (3)  socioeconomic effects on surrounding communities
 175-8   of operation of the licensed activity and of associated
 175-9   transportation of low-level radioactive waste;
175-10               (4)  the need for and alternatives to the proposed
175-11   activity, including an alternative siting analysis prepared by the
175-12   applicant;
175-13               (5)  the applicant's qualifications, including
175-14   financial and[,] technical qualifications[,] and compliance history
175-15   under the method for evaluation of compliance history developed by
175-16   the commission under Section 5.754, Water Code [past operating
175-17   practices];
175-18               (6)  background monitoring plans for the proposed site;
175-19               (7)  suitability of facilities associated with the
175-20   proposed activities;
175-21               (8)  chemical, radiological, and biological
175-22   characteristics of the low-level radioactive waste and waste
175-23   classification under Section 401.053;
175-24               (9)  adequate insurance of the applicant to cover
175-25   potential injury to any property or person, including potential
175-26   injury from risks relating to transportation;
175-27               (10)  training programs for the applicant's employees;
 176-1               (11)  a monitoring, record-keeping, and reporting
 176-2   program;
 176-3               (12)  spill detection and cleanup plans for the
 176-4   licensed site and related to associated transportation of low-level
 176-5   radioactive waste;
 176-6               (13)  decommissioning and postclosure care plans;
 176-7               (14)  security plans;
 176-8               (15)  worker monitoring and protection plans;
 176-9               (16)  emergency plans; and
176-10               (17)  a monitoring program for applicants that includes
176-11   prelicense and postlicense monitoring of background radioactive and
176-12   chemical characteristics of the soils, groundwater, and vegetation.
176-13         SECTION 17.35. Section 401.114, Health and Safety Code, is
176-14   amended to read as follows:
176-15         Sec. 401.114.  NOTICE AND HEARING. (a)  Before the department
176-16   [or commission], within its jurisdiction, grants or renews a
176-17   license to process [or dispose of] low-level radioactive waste from
176-18   other persons, the department [agency] shall give notice and shall
176-19   provide an opportunity for a public hearing in the manner provided
176-20   by the department's [agency's] formal hearing procedure and Chapter
176-21   2001, Government Code.
176-22         (b)  Before the commission, within its jurisdiction, grants
176-23   or renews a license to dispose of low-level radioactive waste from
176-24   other persons, the commission shall give notice and shall provide
176-25   an opportunity for a public hearing in the manner provided by
176-26   Section 5.676, Water Code, the commission's formal hearing
176-27   procedure, and Chapter 2001, Government Code.
 177-1         (c)  In addition to other notice, the department [agency]
 177-2   shall publish notice of the hearing in the manner provided by
 177-3   Chapter 313, Government Code, in the county in which the proposed
 177-4   facility is to be located.  The notice shall state the subject and
 177-5   the time, place, and date of the hearing.
 177-6         (d) [(c)]  The department [agency] shall mail, by certified
 177-7   mail in the manner provided by board [the agency's] rules, written
 177-8   notice to each person who owns property adjacent to the proposed
 177-9   site.  The notice must be mailed not later than the 31st day before
177-10   the date of the hearing and must include the same information that
177-11   is in the published notice.  If true, the department [agency] or
177-12   the applicant must certify that the notice was mailed as required
177-13   by this subsection, and at the hearing the certificate is
177-14   conclusive evidence of the mailing.
177-15         SECTION 17.36. Section 401.116, Health and Safety Code, is
177-16   amended by amending Subsection (b), adding a new Subsection (c),
177-17   relettering existing Subsections (c) and (d) as Subsections (d) and
177-18   (e), and amending existing Subsection (d) to read as follows:
177-19         (b)  The department [or commission, as appropriate,] shall
177-20   publish notice of an [the license] amendment to a license to
177-21   process low-level radioactive waste once in the Texas Register and
177-22   in a newspaper of general circulation in the county in which the
177-23   licensed activity is located and shall give notice to any person
177-24   who has notified the department [agency], in advance, of the desire
177-25   to receive notice of proposed amendment of the license.
177-26         (c)  The commission shall publish notice of an amendment to a
177-27   license to dispose of low-level radioactive waste as provided by
 178-1   Section 5.677, Water Code.
 178-2         (d)  Notice under Subsection (b) [this section] must include:
 178-3               (1)  the identity of the license holder;
 178-4               (2)  identification of the license; and
 178-5               (3)  a short and plain statement of the license
 178-6   amendment's substance.
 178-7         (e) [(d)]  The agency shall give notice and hold a hearing to
 178-8   consider the license amendment if a person affected files a written
 178-9   complaint with the agency before the 31st day after the date on
178-10   which notice is published under Subsection (b) or Section 5.677,
178-11   Water Code, as appropriate.  The agency shall give notice of the
178-12   hearing as provided by Section 401.114 or by Section 5.676, Water
178-13   Code.
178-14          ARTICLE 18. REGULATION OF DISPOSAL OF ANIMAL REMAINS
178-15         SECTION 18.01.  Subchapter H, Chapter 801, Occupations Code,
178-16   is amended by adding Section 801.361 to read as follows:
178-17         Sec. 801.361.  DISPOSAL OF ANIMAL REMAINS. (a)  A
178-18   veterinarian may dispose of the remains of an animal by burial or
178-19   burning if:
178-20               (1)  the burial or burning occurs on property owned by
178-21   the veterinarian; and
178-22               (2)  the veterinarian does not charge for the burning
178-23   or burial.
178-24         (b)  Notwithstanding any other law, the Texas Natural
178-25   Resource Conservation Commission may not adopt a rule that
178-26   prohibits conduct authorized by this section.
178-27         (c)  This section applies only in a county with a population
 179-1   of less than 10,000.
 179-2                ARTICLE 19.  TRANSITIONS; EFFECTIVE DATE
 179-3         SECTION 19.01.  CHANGE OF AGENCY NAME. (a)  Effective January
 179-4   1, 2004:
 179-5               (1)  the name of the Texas Natural Resource
 179-6   Conservation Commission is changed to the Texas Department of
 179-7   Environmental Quality, and all powers, duties, rights, and
 179-8   obligations of the Texas Natural Resource Conservation Commission
 179-9   are the powers, duties, rights, and obligations of the Texas
179-10   Department of Environmental Quality;
179-11               (2)  a member of the Texas Natural Resource
179-12   Conservation Commission is a member of the board of the Texas
179-13   Department of Environmental Quality;
179-14               (3)  all personnel, equipment, data, documents,
179-15   facilities, and other items of the Texas Natural Resource
179-16   Conservation Commission are transferred to the agency under its new
179-17   name; and
179-18               (4)  any appropriation to the Texas Natural Resource
179-19   Conservation Commission is automatically an appropriation to the
179-20   Texas Department of Environmental Quality.
179-21         (b)  Effective January 1, 2004, a reference in law to the
179-22   Texas Natural Resource Conservation Commission is a reference to
179-23   the Texas Department of Environmental Quality.
179-24         (c)  The Texas Natural Resource Conservation Commission shall
179-25   adopt a timetable for phasing in the change of the agency's name so
179-26   as to minimize the fiscal impact of the name change.  Until January
179-27   1, 2004, to allow for phasing in the change of the agency's name
 180-1   and in accordance with the timetable established as required by
 180-2   this section, the agency may perform any act authorized by law for
 180-3   the Texas Natural Resource Conservation Commission as the Texas
 180-4   Natural Resource Conservation Commission or as the Texas Department
 180-5   of Environmental Quality.  Any act of the Texas Natural Resource
 180-6   Conservation Commission acting as the Texas Department of
 180-7   Environmental Quality after the effective date of this Act and
 180-8   before January 1, 2004, is an act of the Texas Natural Resource
 180-9   Conservation Commission.
180-10         SECTION 19.02.  TRANSFER OF SAFE DRINKING WATER LABORATORY
180-11   CERTIFICATION PROGRAM. (a)  On the effective date of this Act, the
180-12   following are transferred to the Texas Natural Resource
180-13   Conservation Commission:
180-14               (1)  all powers, duties, rights, and obligations of the
180-15   Texas Department of Health relating to the safe drinking water
180-16   laboratory certification program administered by the Texas
180-17   Department of Health's bureau of laboratories;
180-18               (2)  all personnel, equipment, data, documents,
180-19   facilities, and other items of the Texas Department of Health
180-20   relating to the safe drinking water laboratory certification
180-21   program; and
180-22               (3)  all appropriations to the Texas Department of
180-23   Health pertaining to the safe drinking water laboratory
180-24   certification program, and all other state or federal money
180-25   available to the Texas Department of Health for that program.
180-26         (b)  On the effective date of this Act, Texas Department of
180-27   Health rules relating to the safe drinking water laboratory
 181-1   certification program administered by the Texas Department of
 181-2   Health's bureau of laboratories are the rules of the Texas Natural
 181-3   Resource Conservation Commission until the commission adopts rules
 181-4   to govern that program.
 181-5         (c)  A certification issued by the Texas Department of Health
 181-6   for a safe drinking water laboratory before September 1, 2001,
 181-7   remains in effect until the date it expires or is revoked,
 181-8   notwithstanding the change in law made by this section.
 181-9         SECTION 19.03.  TRANSFER OF ENVIRONMENTAL TESTING LABORATORY
181-10   CERTIFICATION PROGRAM. (a)  On the effective date of this Act, the
181-11   following are transferred to the Texas Natural Resource
181-12   Conservation Commission:
181-13               (1)  all powers, duties, rights, and obligations of the
181-14   Texas Department of Health relating to the environmental testing
181-15   laboratory certification program administered by the Texas
181-16   Department of Health under Chapter 421, Health and Safety Code;
181-17               (2)  all personnel, equipment, data, documents,
181-18   facilities, and other items of the Texas Department of Health
181-19   relating to the environmental testing laboratory certification
181-20   program; and
181-21               (3)  all appropriations to the Texas Department of
181-22   Health pertaining to the environmental laboratory certification
181-23   program, and all other state or federal money available to the
181-24   Texas Department of Health for that program.
181-25         (b)  On the effective date of this Act, Texas Department of
181-26   Health rules relating to the environmental testing laboratory
181-27   certification program administered by the Texas Department of
 182-1   Health under Chapter 421, Health and Safety Code, are the rules of
 182-2   the Texas Natural Resource Conservation Commission until the
 182-3   commission adopts rules to govern that program.
 182-4         (c)  A certification issued by the Texas Department of Health
 182-5   before September 1, 2001, remains in effect until the date it
 182-6   expires or is revoked, notwithstanding the change in law made by
 182-7   this section and by this Act to Chapter 421, Health and Safety
 182-8   Code.
 182-9         (d)  The change in law made by the addition by this Act of
182-10   Section 5.127, Water Code, relating to the acceptance of
182-11   environmental testing laboratory results by the Texas Natural
182-12   Resource Conservation Commission, applies only to environmental
182-13   testing laboratory results submitted to the commission on or after
182-14   the third anniversary of the date on which the commission publishes
182-15   notice in the Texas Register that the commission's environmental
182-16   laboratory testing program established under Subchapter R, Chapter
182-17   5, Water Code, as added by this Act, has met the standards of the
182-18   National Environmental Laboratory Accreditation Conference.
182-19         SECTION 19.04.  CERTIFICATION OF WATER TREATMENT SPECIALISTS.
182-20   (a)  On the effective date of this Act, the following are
182-21   transferred to the Texas Natural Resource Conservation Commission:
182-22               (1)  all powers, duties, rights, and obligations of the
182-23   Texas Department of Health relating to the certification of water
182-24   treatment specialists administered by the Texas Department of
182-25   Health under Section 3A, The Plumbing License Law (Article
182-26   6243-101, Vernon's Texas Civil Statutes);
182-27               (2)  all equipment, data, documents, facilities, and
 183-1   other items of the Texas Department of Health relating to the
 183-2   certification of water treatment specialists; and
 183-3               (3)  all appropriations to the Texas Department of
 183-4   Health pertaining to the certification of water treatment
 183-5   specialists, and all other state or federal money available to the
 183-6   Texas Department of Health for that program.
 183-7         (b)  On the effective date of this Act, Texas Department of
 183-8   Health rules relating to the certification of water treatment
 183-9   specialists are the rules of the Texas Natural Resource
183-10   Conservation Commission until the commission adopts rules to govern
183-11   that program.
183-12         SECTION 19.05.  PERFORMANCE-BASED REGULATION. (a)  Not later
183-13   than March 1, 2002, the Texas Natural Resource Conservation
183-14   Commission by rule shall establish the components of and standards
183-15   for evaluating compliance history, as required by Section 5.754,
183-16   Water Code, as added by this Act.
183-17         (b)  Not later than September 1, 2002, the Texas Natural
183-18   Resource Conservation Commission shall begin tracking compliance
183-19   for use in establishing the regulatory structure authorized by
183-20   Subchapter Q, Chapter 5, Water Code, as added by this Act.
183-21         (c)  As soon as practicable, but not later than September 1,
183-22   2005, the Texas Natural Resource Conservation Commission shall
183-23   adopt rules governing and shall implement the tiered regulatory
183-24   structure required by Section 5.752, Water Code, as added by this
183-25   Act.  The commission shall adopt the rules and implement the tiered
183-26   regulatory structure in stages over the three-year period.
183-27         (d)  The changes made by this Act in the consideration of
 184-1   compliance history in decisions by the Texas Natural Resource
 184-2   Conservation Commission relating to the issuance, amendment,
 184-3   modification, or renewal of permits under the following sections
 184-4   apply only to an application for the issuance, amendment,
 184-5   modification, or renewal of a permit submitted to the Texas Natural
 184-6   Resource Conservation Commission on or after March 1, 2002:
 184-7               (1)  Sections 5.757, 26.028, 26.0281, 26.040, and
 184-8   27.018, Water Code; and
 184-9               (2)  Sections 361.084, 361.088, 361.089, 382.0518,
184-10   382.055, 382.056, 401.110, and 401.112, Health and Safety Code.
184-11         (e)  The changes made by this Act in the consideration of
184-12   compliance history in decisions by the Texas Natural Resource
184-13   Conservation Commission relating to inspections and flexible
184-14   permitting under Sections 5.758 and 5.759, Water Code, as added by
184-15   this Act apply, effective March 1, 2002, to a person who holds a
184-16   permit issued by the Texas Natural Resource Conservation Commission
184-17   that is subject to those sections.
184-18         (f)  The changes made by this Act in the consideration of
184-19   compliance history in decisions of the Texas Natural Resource
184-20   Conservation Commission relating to the suspension or revocation of
184-21   a permit or the imposition of a penalty in a matter under the
184-22   jurisdiction of the commission apply only to a proceeding that is
184-23   initiated or an action that is brought on or after March 1, 2002.
184-24         (g)  For the period between March 1, 2002, and September 1,
184-25   2005, the commission by rule may temporarily modify specific
184-26   compliance history requirements to implement the regulatory
184-27   structure being developed under Subchapter Q, Chapter 5, Water
 185-1   Code, as added by this Act.  This section does not authorize the
 185-2   commission to modify existing statutory requirements relating to
 185-3   the use of compliance history in any enforcement proceeding.
 185-4         SECTION 19.06.  FEES. (a)  The changes in law made by
 185-5   Sections 5.702 and 5.703, Water Code, as added by this Act,
 185-6   relating to the timely payment and adjustment of fees due the Texas
 185-7   Natural Resource Conservation Commission, and by Section 5.706,
 185-8   Water Code, as added by this Act, relating to penalties and
 185-9   interest for delinquent fees, apply only to fees that are due on or
185-10   after September 1, 2001.
185-11         (b)  The change in law made by this Act to Sections 26.0135
185-12   and 26.0291, Water Code, relating to the consolidation of certain
185-13   fees relating to water quality, takes effect September 1, 2002, and
185-14   applies only to fees due on or after that date.  The assessment and
185-15   collection of fees due before the effective date of this Act are
185-16   governed by the former law, and that law is continued in effect for
185-17   that purpose.  Water resource management account balances dedicated
185-18   to a particular purpose under Sections 26.0135 and 26.0291, Water
185-19   Code, as that law exists prior to the changes in law made by this
185-20   Act, that have not been expended before the effective date of this
185-21   Act may be used for the purposes authorized by this Act.
185-22         (c)  Water resource management account balances dedicated to
185-23   a particular purpose under the law as it exists prior to the
185-24   changes in law made by this Act to redesignated Sections 5.701(e),
185-25   (p), and (q), Water Code, and Sections 341.041(a), 366.058(a), and
185-26   366.059(b), Health and Safety Code, that have not been expended
185-27   before the effective date of this Act may be used for the purposes
 186-1   authorized under this Act.
 186-2         SECTION 19.07.  REGULATORY FLEXIBILITY. The change in law
 186-3   made by Section 5.123, Water Code, as added by Chapter 1203, Acts
 186-4   of the 75th Legislature, Regular Session, 1997, relating to
 186-5   regulatory flexibility, as transferred, redesignated, and amended
 186-6   by this Act, applies only to an application for regulatory
 186-7   flexibility that is submitted to the Texas Natural Resource
 186-8   Conservation Commission on or after September 1, 2001.
 186-9         SECTION 19.08.  COMMISSIONER TRAINING. (a)  As soon as
186-10   practicable after September 1, 2001, but not later than December 1,
186-11   2001, the Texas Natural Resource Conservation Commission shall
186-12   adopt rules to implement the training program for commission
186-13   members required by Section 5.0535, Water Code, as added by this
186-14   Act.
186-15         (b)  The training requirements of Section 5.0535, Water Code,
186-16   as added by this Act, apply only to a member of the commission who
186-17   is appointed on or after January 1, 2002.
186-18         SECTION 19.09.  EXECUTIVE DIRECTOR. The change in law made by
186-19   this Act to Section 5.228, Water Code, relating to hearing
186-20   appearances by the executive director of the Texas Natural Resource
186-21   Conservation Commission, applies only to a hearing in which the
186-22   executive director is named a party on or after September 1, 2001.
186-23         SECTION 19.10.  INITIATION OF ACTION ON CITIZEN INFORMATION.
186-24   (a)  Not later than December 1, 2001, the Texas Natural Resource
186-25   Conservation Commission shall adopt rules to implement the
186-26   requirements of Section 7.0025, Water Code, as added by this Act,
186-27   relating to the initiation of enforcement action by the commission
 187-1   based on information regarding an environmental problem submitted
 187-2   by a private individual.
 187-3         (b)  The change in law made by Section 7.0025, Water Code, as
 187-4   added by this Act, applies only to information regarding an
 187-5   environmental problem submitted to the Texas Natural Resource
 187-6   Conservation Commission on or after January 1, 2002.
 187-7         SECTION 19.11.  ADOPTION OF RULES REGARDING REGULATION OF
 187-8   CERTAIN FACILITIES AS SOLID WASTE FACILITIES. As soon as
 187-9   practicable after the effective date of this Act, the Texas Natural
187-10   Resource Conservation Commission shall adopt rules as necessary to
187-11   implement Section 361.119, Health and Safety Code, as added by this
187-12   Act.
187-13         SECTION 19.12.  CREATION OF OFFICE OF NATURAL RESOURCE PUBLIC
187-14   INTEREST COUNSEL. (a)  On January 1, 2002, all personnel, office
187-15   space, facilities, equipment, information, records, case files, and
187-16   other possessions of the office of public interest counsel of the
187-17   Texas Natural Resource Conservation Commission are transferred to
187-18   the Office of Natural Resource Public Interest Counsel created by
187-19   this Act.
187-20         (b)  On January 1, 2002, all unexpended and unobligated money
187-21   appropriated to the Texas Natural Resource Conservation Commission
187-22   for the fiscal biennium ending August 31, 2003, for use for the
187-23   functions of the commission's office of public interest counsel is
187-24   transferred to the Office of Natural Resource Public Interest
187-25   Counsel created by this Act for use for the functions of that
187-26   office.
187-27         (c)  The Legislative Budget Board shall identify and inform
 188-1   the comptroller about the amount and source of money transferred
 188-2   under this section.
 188-3         (d)  The public interest counsel of the Texas Natural
 188-4   Resource Conservation Commission's office of public interest
 188-5   counsel shall serve as the natural resource public interest counsel
 188-6   of the Office of Natural Resource Public Interest Counsel from
 188-7   January 1, 2002, until the natural resource public interest counsel
 188-8   for the office is appointed and has qualified.
 188-9         (e)  The governor shall appoint a natural resource public
188-10   interest counsel of the Office of Natural Resource Public Interest
188-11   Counsel on or before February 1, 2003.
188-12         (f)  The first budget proposed for the Office of Natural
188-13   Resource Public Interest Counsel under Section 5.274, Water Code,
188-14   as added by this Act, may not exceed the amount expended by the
188-15   Texas Natural Resource Conservation Commission's office of public
188-16   interest counsel in the previous fiscal biennium.
188-17         (g)  Section 1.22 of this Act takes effect January 1, 2002.
188-18         SECTION 19.13.  CONTAINMENT SYSTEMS REQUIRED FOR CERTAIN
188-19   UNDERGROUND STORAGE TANKS. The change in law made by Section
188-20   26.3476, Water Code, as added by this Act, applies only to an
188-21   underground storage tank system that is installed, upgraded, or
188-22   replaced on or after the effective date of this Act.
188-23         SECTION 19.14.  EFFECTIVE DATE. Except as otherwise provided
188-24   by this Act, this Act takes effect September 1, 2001.