1-1                                   AN ACT
 1-2     relating to the continuation and functions of the Texas Natural
 1-3     Resource Conservation Commission; providing penalties.
 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 5.013, Water Code, is amended by adding
 1-7     Subsection (c) to read as follows:
 1-8           (c)  This section allocates among various state agencies
 1-9     statutory authority delegated by other laws.  This section does not
1-10     delegate legislative authority.
1-11           SECTION 1.02. Section 5.014, Water Code, is amended to read
1-12     as follows:
1-13           Sec. 5.014.  SUNSET PROVISION. The Texas Natural Resource
1-14     Conservation Commission is subject to Chapter 325, Government Code
1-15     (Texas Sunset Act).  Unless continued in existence as provided by
1-16     that chapter, the commission is abolished and this chapter expires
1-17     September 1, 2013 [2001].
1-18           SECTION 1.03. Section 5.052(c), Water Code, is amended to
1-19     read as follows:
1-20           (c)  Appointments to the commission shall be made without
1-21     regard to the race, color, disability [handicap], sex, religion,
1-22     age, or national origin of the appointees.
1-23           SECTION 1.04. Section 5.053(a), Water Code, is amended to
1-24     read as follows:
 2-1           (a)  A person may not be a member of [is not eligible to
 2-2     serve on] the commission if the person or the person's spouse:
 2-3                 (1)  is registered, certified, licensed, permitted, or
 2-4     otherwise authorized by the commission;
 2-5                 (2)  is employed by or participates in the management
 2-6     of a business entity or other organization regulated by the
 2-7     commission or receiving money [funds] from the commission;
 2-8                 (3) [(2)]  owns or[,] controls, [or has,] directly or
 2-9     indirectly, more than a 10 percent interest in a business entity or
2-10     other organization regulated by [the commission] or receiving funds
2-11     from the commission; or
2-12                 (4) [(3)]  uses or receives a substantial amount of
2-13     tangible goods, services, or money [funds] from the commission
2-14     other than compensation or reimbursement authorized by law for
2-15     commission membership, attendance, or expenses.
2-16           SECTION 1.05. Subchapter C, Chapter 5, Water Code, is amended
2-17     by adding Section 5.0535 to read as follows:
2-18           Sec. 5.0535.  REQUIRED TRAINING PROGRAM FOR COMMISSION
2-19     MEMBERS. (a)  A person who is appointed to and qualifies for office
2-20     as a member of the commission may not vote, deliberate, or be
2-21     counted as a member in attendance at a meeting of the commission
2-22     until the person completes a training program that complies with
2-23     this section.
2-24           (b)  The training program must provide the person with
2-25     information regarding:
2-26                 (1)  the legislation that created the commission;
2-27                 (2)  the programs operated by the commission;
 3-1                 (3)  the role and functions of the commission;
 3-2                 (4)  the rules of the commission, with an emphasis on
 3-3     the rules that relate to disciplinary and investigatory authority;
 3-4                 (5)  the current budget for the commission;
 3-5                 (6)  the results of recent significant internal and
 3-6     external audits of the  commission;
 3-7                 (7)  the requirements of:
 3-8                       (A)  the open meetings law, Chapter 551,
 3-9     Government Code;
3-10                       (B)  the public information law, Chapter 552,
3-11     Government Code;
3-12                       (C)  the administrative procedure law,  Chapter
3-13     2001, Government Code; and
3-14                       (D)  other laws relating to public officials,
3-15     including conflict-of-interest laws; and
3-16                 (8)  any applicable ethics policies adopted by the
3-17     commission or the Texas Ethics Commission.
3-18           (c)  A person appointed to the commission is entitled to
3-19     reimbursement, as provided by the General Appropriations Act, for
3-20     the travel expenses incurred in attending the training program
3-21     regardless of whether the attendance at the program occurs before
3-22     or after the person qualifies for office.
3-23           SECTION 1.06. Section 5.054, Water Code, is amended to read
3-24     as follows:
3-25           Sec. 5.054.  REMOVAL OF COMMISSION MEMBERS. (a)  It is a
3-26     ground for removal from the commission that [if] a member:
3-27                 (1)  does not have at the time of taking office the
 4-1     qualifications required by Section 5.053(b);
 4-2                 (2)  does not maintain during the service on the
 4-3     commission the qualifications required by Section 5.053(b) [for
 4-4     appointment to the commission];
 4-5                 (3)  is ineligible for membership under Section
 4-6     5.053(a), 5.059, or 5.060 [(2)  violates a prohibition established
 4-7     by Sections 5.059 and 5.060 of this code];
 4-8                 (4)  cannot, because of illness or disability, [(3)  is
 4-9     unable to] discharge the member's [his] duties for a substantial
4-10     part of the member's term [portion of the term for which he was
4-11     appointed because of illness or disability]; or
4-12                 (5) [(4)]  is absent from more than one-half of the
4-13     regularly scheduled commission meetings that the member is eligible
4-14     to attend during each calendar year without an excuse approved [,
4-15     except when the absence is excused] by a majority vote of the
4-16     commission.
4-17           (b)  The validity of an action of the commission is not
4-18     affected by the fact that it is [was] taken when a ground for
4-19     removal of a member of the commission exists [existed].
4-20           (c)  If the executive director or a member [of the
4-21     commission] has knowledge that a potential ground for removal
4-22     exists, the executive director or member [he] shall notify the
4-23     presiding officer [chairman] of the commission of the potential
4-24     [that] ground.  The presiding officer [chairman of the commission]
4-25     shall then notify the governor and the attorney general that a
4-26     potential ground for removal exists.  If the potential ground for
4-27     removal involves the presiding officer, the executive director or
 5-1     another member of the commission shall notify the member of the
 5-2     commission with the most seniority, who shall then notify the
 5-3     governor and the attorney general that a potential ground for
 5-4     removal exists.
 5-5           SECTION 1.07. Sections 5.058(a)-(d), Water Code, are amended
 5-6     to read as follows:
 5-7           (a)  The governor shall designate a member of the commission
 5-8     as the presiding officer [the chairman] of the commission to serve
 5-9     in that capacity at the pleasure of[.  He shall serve as chairman
5-10     until] the governor [designates a different chairman].
5-11           (b)  The presiding officer [chairman] may designate another
5-12     commissioner to act for the presiding officer [him] in the
5-13     presiding officer's  [his] absence.
5-14           (c)  The presiding officer [chairman] shall preside at the
5-15     meetings and hearings of the commission.
5-16           (d)  The commission shall hold regular meetings and all
5-17     hearings at times specified by a commission order and entered in
5-18     its minutes.  The commission may hold special meetings at the times
5-19     and places in the state that the commission decides are appropriate
5-20     for the performance of its duties.  The presiding officer
5-21     [chairman] or acting presiding officer [chairman] shall give the
5-22     other members reasonable notice before holding a special meeting.
5-23           SECTION 1.08. Sections 5.059 and 5.060, Water Code, are
5-24     amended to read as follows:
5-25           Sec. 5.059.  CONFLICT OF INTEREST. (a)  In this section,
5-26     "Texas trade association" means a cooperative and voluntarily
5-27     joined association of business or professional competitors in this
 6-1     state designed to assist its members and its industry or profession
 6-2     in dealing with mutual business or professional problems and in
 6-3     promoting their common interest.
 6-4           (b)  A person may not be a member of the commission and may
 6-5     not be a commission employee employed in a "bona fide executive,
 6-6     administrative, or professional capacity," as that phrase is used
 6-7     for purposes of establishing an exemption to the overtime
 6-8     provisions of the federal Fair Labor Standards Act of 1938 (29
 6-9     U.S.C. Section 201 et seq.) and its subsequent amendments, if:
6-10                 (1)  the person is an officer, employee, or paid
6-11     consultant of a Texas trade association in an industry regulated by
6-12     the commission; or
6-13                 (2)  the person's spouse is an officer, manager, or
6-14     paid consultant of a Texas trade association in an industry
6-15     regulated by the commission [An officer, employee, or paid
6-16     consultant of a trade association in an industry regulated by the
6-17     commission may not be a member of the commission or employee of the
6-18     commission, nor may a person who cohabits with or is the spouse of
6-19     an officer, managerial employee, or paid consultant of a trade
6-20     association in an industry regulated by the commission be a member
6-21     of the commission or an employee of the commission grade 17 or
6-22     over, including exempt employees, according to the position
6-23     classification schedule under the General Appropriations Act].
6-24           Sec. 5.060.  LOBBYIST PROHIBITION. A person may not be a
6-25     member of the commission or act as general counsel to the
6-26     commission if the person [who] is required to register as a
6-27     lobbyist under Chapter 305, Government Code, because  [by virtue]
 7-1     of the person's [his] activities for compensation [in or] on behalf
 7-2     of a profession related to the operation of the commission [may not
 7-3     serve as a member of the commission or act as the general counsel
 7-4     to the commission].
 7-5           SECTION 1.09. Section 5.103, Water Code, is amended by adding
 7-6     Subsection (d) to read as follows:
 7-7           (d)  The commission shall include as a part of each rule the
 7-8     commission adopts, and each proposed rule for adoption after the
 7-9     effective date of this subsection, a citation to the statute that
7-10     grants the specific regulatory authority under which the rule is
7-11     justified and a citation of the specific regulatory authority that
7-12     will be exercised.  If no specific statutory authority exists and
7-13     the agency is depending on this section, citation of this section,
7-14     or Section 5.102 or 5.013, is sufficient.  A rule adopted in
7-15     violation of this subsection is void.
7-16           SECTION 1.10. Section 5.107, Water Code, is amended to read
7-17     as follows:
7-18           Sec. 5.107.  ADVISORY COMMITTEES, WORK GROUPS, AND TASK
7-19     FORCES [COUNCILS]. (a)  The commission or the executive director
7-20     may create and consult with advisory committees, work groups, or
7-21     task forces [councils], including committees, work groups, or task
7-22     forces [councils] for the environment, [councils] for public
7-23     information, or for any other matter [councils] that the commission
7-24     or the executive director may consider appropriate.
7-25           (b)  The commission shall identify affected groups of
7-26     interested persons for advisory committees, work groups, and task
7-27     forces and shall make reasonable attempts to have balanced
 8-1     representation on all advisory committees, work groups, and task
 8-2     forces.  This subsection does not require the commission to ensure
 8-3     that all representatives attend a scheduled meeting.  A rule or
 8-4     other action may not be challenged because of the composition of an
 8-5     advisory committee, work group, or task 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 1.11. Subchapter D, Chapter 5, Water Code, is amended
8-13     by adding Sections 5.1191-5.1193 to read as follows:
8-14           Sec. 5.1191.  RESEARCH MODEL. (a)  In this section, "research
8-15     model" means a mechanism for developing a plan to address the
8-16     commission's practical regulatory needs.  The commission's plan
8-17     shall be prioritized by need and shall identify short-term,
8-18     medium-term, and long-term research goals. The plan may address
8-19     preferred methods of conducting the identified research.
8-20           (b)  The commission shall develop a research model. The
8-21     commission may appoint a research advisory board to assist the
8-22     commission in providing appropriate incentives to encourage various
8-23     interest groups to participate in developing the research model and
8-24     to make recommendations regarding research topics specific to this
8-25     state.  The research advisory board must include representatives of
8-26     the academic community, representatives of the regulated community,
8-27     and public representatives of the state at large.
 9-1           Sec. 5.1192.  COORDINATION OF RESEARCH. (a)  The commission
 9-2     shall facilitate and coordinate environmental research in the state
 9-3     according to the research model developed under Section 5.1191.
 9-4           (b)  The commission shall explore private and federal funding
 9-5     opportunities for research needs identified in the research model.
 9-6     The commission may conduct, direct, and facilitate research to
 9-7     implement the commission's research model by administering grants
 9-8     or by contracting for research if money is appropriated to the
 9-9     commission for those purposes.
9-10           (c)  To the degree practicable, the commission, through the
9-11     research model, shall coordinate with or make use of any research
9-12     activities conducted under existing state initiatives, including
9-13     research by state universities, the Texas Higher Education
9-14     Coordinating Board, the United States Department of Agriculture,
9-15     the Texas Department of Agriculture, and other state and federal
9-16     agencies as appropriate.
9-17           (d)  This section does not authorize the commission to
9-18     initiate or direct the research efforts of another entity except
9-19     under the terms of a grant or contract.
9-20           Sec. 5.1193.  REPORT. The commission shall include in the
9-21     reports required by Section 5.178 a description of cooperative
9-22     research efforts, an accounting of money spent on research, and a
9-23     review of the purpose, implementation, and results of particular
9-24     research projects conducted.
9-25           SECTION 1.12. Subchapter D, Chapter 5, Water Code, is amended
9-26     by adding Sections 5.127-5.131 to read as follows:
9-27           Sec. 5.127.  USE OF ENVIRONMENTAL TESTING LABORATORY DATA AND
 10-1    ANALYSIS. (a)  The commission may accept environmental testing
 10-2    laboratory data and analysis for use in commission decisions
 10-3    regarding any matter under the commission's jurisdiction relating
 10-4    to permits or other authorizations, compliance matters, enforcement
 10-5    actions, or corrective actions only if the data and analysis is
 10-6    prepared by an environmental testing laboratory accredited by the
 10-7    commission under Subchapter R or an environmental testing
 10-8    laboratory described in Subsection (b).
 10-9          (b)  The commission may accept for use in commission
10-10    decisions data and analysis prepared by:
10-11                (1)  an on-site or in-house environmental testing
10-12    laboratory if the laboratory is periodically inspected by the
10-13    commission;
10-14                (2)  an environmental testing laboratory that is
10-15    accredited under federal law; or
10-16                (3)  if the data and analysis are necessary for
10-17    emergency response activities and the required data and analysis
10-18    are not otherwise available,  an environmental testing laboratory
10-19    that is not accredited by the commission under Subchapter R or
10-20    under federal law.
10-21          (c)  The commission by rule may require that data and
10-22    analysis used in other commission decisions be obtained from an
10-23    environmental testing laboratory accredited by the commission under
10-24    Subchapter R.
10-25          (d)  The commission shall periodically inspect on-site or
10-26    in-house environmental testing laboratories described in Subsection
10-27    (b).
 11-1          Sec. 5.128.  ELECTRONIC REPORTING TO COMMISSION; REDUCTION OF
 11-2    DUPLICATE REPORTING. (a)  The commission shall encourage the use of
 11-3    electronic reporting through the Internet, to the extent
 11-4    practicable, for reports required by the commission.  An electronic
 11-5    report must be submitted in a format prescribed by the commission.
 11-6    The commission may consult with the Department of Information
 11-7    Resources on developing a  simple format for use in implementing
 11-8    this subsection.
 11-9          (b)  The commission shall strive to reduce duplication in
11-10    reporting requirements throughout the agency.
11-11          Sec. 5.129.  SUMMARY FOR PUBLIC NOTICES. (a)  The commission
11-12    by rule shall provide for each public notice issued or published by
11-13    the commission or by a person under the jurisdiction of the
11-14    commission as required by law or by commission rule to include at
11-15    the beginning of the notice a succinct statement of the subject of
11-16    the notice.  The rules must provide that a summary statement must
11-17    be designed to inform the reader of the subject matter of the
11-18    notice without having to read the entire text of the notice.
11-19          (b)  The summary statement may not be grounds for challenging
11-20    the validity of the proposed action for which the notice was
11-21    published.
11-22          Sec. 5.130.  CONSIDERATION OF CUMULATIVE RISKS. The
11-23    commission shall:
11-24                (1)  develop and implement policies, by specific
11-25    environmental media, to protect the public from cumulative risks in
11-26    areas of concentrated operations; and
11-27                (2)  give priority to monitoring and enforcement in
 12-1    areas in which regulated facilities are concentrated.
 12-2          Sec. 5.131.  ENVIRONMENTAL MANAGEMENT SYSTEMS. (a)  In this
 12-3    section, "environmental management system" means a documented
 12-4    management system to address applicable environmental regulatory
 12-5    requirements that includes organizational structure, planning
 12-6    activities, responsibilities, practices, procedures, processes, and
 12-7    resources for developing, implementing, achieving, reviewing, and
 12-8    maintaining an environmental policy directed toward continuous
 12-9    improvement.
12-10          (b)  The commission by rule shall adopt a comprehensive
12-11    program that provides regulatory incentives to encourage the use of
12-12    environmental management systems by regulated entities, state
12-13    agencies, local governments, and  other entities as determined by
12-14    the commission. The incentives may include:
12-15                (1)  on-site technical assistance;
12-16                (2)  accelerated access to information about programs;
12-17    and
12-18                (3)  to the extent consistent with federal
12-19    requirements:
12-20                      (A)  inclusion of information regarding an
12-21    entity's use of an environmental management system in the entity's
12-22    compliance history and compliance summaries; and
12-23                      (B)  consideration of the entity's implementation
12-24    of an environmental management system in scheduling and conducting
12-25    compliance inspections.
12-26          (c)  The commission shall:
12-27                (1)  integrate the use of environmental management
 13-1    systems into its regulatory programs, including permitting,
 13-2    compliance assistance, and enforcement;
 13-3                (2)  develop model environmental management systems for
 13-4    small businesses and local governments; and
 13-5                (3)  establish environmental performance indicators to
 13-6    measure the program's performance.
 13-7          SECTION 1.13. Subchapter E, Chapter 5, Water Code, is amended
 13-8    by adding Section 5.1733 to read as follows:
 13-9          Sec. 5.1733.  ELECTRONIC POSTING OF INFORMATION. The
13-10    commission shall post public information on its website.  Such
13-11    information shall include but not be limited to the minutes of
13-12    advisory committee meetings, pending permit and enforcement
13-13    actions, compliance histories, and emissions inventories by county
13-14    and facility name.
13-15          SECTION 1.14. Subchapter E, Chapter 5, Water Code, is amended
13-16    by adding Section 5.1765 to read as follows:
13-17          Sec. 5.1765.  PUBLICATION OF INFORMATION REGARDING COMPLAINT
13-18    PROCEDURES AND POLICIES. The commission shall establish a process
13-19    for educating the public regarding the commission's complaint
13-20    policies and procedures. As part of the public education process,
13-21    the commission shall make available to the public in pamphlet form
13-22    an explanation of the complaint policies and procedures, including
13-23    information regarding and standards applicable to the collection
13-24    and preservation of credible evidence of environmental problems by
13-25    members of the public.
13-26          SECTION 1.15. Sections 5.176 and 5.177, Water Code, are
13-27    amended to read as follows:
 14-1          Sec. 5.176.  COMPLAINT FILE. (a)  The commission shall
 14-2    maintain a [keep an information] file on [about] each written
 14-3    complaint filed with the commission about a matter within the
 14-4    commission's regulatory jurisdiction [relating to an entity
 14-5    regulated by the commission].  The file must include:
 14-6                (1)  the name of the person who filed the complaint,
 14-7    unless the person has specifically requested anonymity;
 14-8                (2)  the date the complaint is received by the
 14-9    commission;
14-10                (3)  the subject matter of the complaint;
14-11                (4)  the name of each person contacted in relation to
14-12    the complaint;
14-13                (5)  a summary of the results of the review or
14-14    investigation of the complaint; and
14-15                (6)  an explanation of the reason the file was closed,
14-16    if the agency closed the file without taking action other than to
14-17    investigate the complaint.
14-18          (b)  The commission shall establish and implement procedures
14-19    for receiving complaints submitted by means of the Internet and
14-20    orally and shall maintain files on those complaints as provided by
14-21    Subsection (a).
14-22          Sec. 5.177.  NOTICE OF COMPLAINT PROCEDURES; NOTICE OF
14-23    INVESTIGATION STATUS. (a)  The agency shall provide to the person
14-24    filing the complaint about a matter within the commission's
14-25    regulatory jurisdiction and to each person who is the subject of
14-26    the complaint a copy of the commission's policies and procedures
14-27    relating to complaint investigation and resolution.
 15-1          (b)  The [If a written complaint is filed with the commission
 15-2    relating to an entity regulated by the commission, the] commission,
 15-3    at least [as frequently as] quarterly [and] until final disposition
 15-4    of the complaint, shall notify the person filing the complaint and
 15-5    each person who is a subject of [parties to] the complaint of the
 15-6    status of the investigation [complaint] unless the notice would
 15-7    jeopardize an undercover investigation.
 15-8          (c)  The commission is not required to provide the
 15-9    information described in Subsection (a) or (b) to a complainant who
15-10    files an anonymous complaint or provides inaccurate contact
15-11    information.
15-12          SECTION 1.16. Subchapter E, Chapter 5, Water Code, is amended
15-13    by adding Sections 5.1771, 5.1772, and 5.1773 to read as follows:
15-14          Sec. 5.1771.  COORDINATION OF COMPLAINT INVESTIGATIONS WITH
15-15    LOCAL ENFORCEMENT OFFICIALS:  TRAINING. (a)  The commission shall
15-16    share information regarding a complaint about a matter within the
15-17    commission's regulatory jurisdiction made to the commission with
15-18    local officials with authority to act on the complaint in the
15-19    county or municipality in which the alleged action or omission that
15-20    is the subject of the complaint occurred or is threatening to
15-21    occur.
15-22          (b)  On request, the commission shall provide training for
15-23    local enforcement officials in investigating complaints and
15-24    enforcing environmental laws relating to matters under the
15-25    commission's jurisdiction under this code or the Health and Safety
15-26    Code.  The training must include, at a minimum:
15-27                (1)  procedures for local enforcement officials to use
 16-1    in addressing citizen complaints if the commission is unavailable
 16-2    or unable to  respond to the complaint; and
 16-3                (2)  an explanation of local government authority to
 16-4    enforce state laws and commission rules relating to the
 16-5    environment.
 16-6          (c)  The commission may charge a reasonable fee for providing
 16-7    training to local enforcement officials as required by Subsection
 16-8    (b) in an amount sufficient to recover the costs of the training.
 16-9          Sec. 5.1772.  AFTER-HOURS RESPONSE TO COMPLAINTS. (a)  The
16-10    commission shall adopt and implement a policy to provide timely
16-11    response to complaints during periods outside regular business
16-12    hours.
16-13          (b)  This section does not:
16-14                (1)  require availability of field inspectors for
16-15    response 24 hours a day, seven days a week, in all parts of the
16-16    state; or
16-17                (2)  authorize additional use of overtime.
16-18          Sec. 5.1773.  COMPLAINT ASSESSMENT. (a)  The commission
16-19    annually shall conduct a comprehensive analysis of the complaints
16-20    it receives, including analysis by the following categories:
16-21                (1)  air;
16-22                (2)  water;
16-23                (3)  waste;
16-24                (4)  priority classification;
16-25                (5)  region;
16-26                (6)  commission response;
16-27                (7)  enforcement action taken; and
 17-1                (8)  trends by complaint type.
 17-2          (b)  In addition to the analysis required by Subsection (a),
 17-3    the commission shall assess the impact of changes made in the
 17-4    commission's complaint policy.
 17-5          SECTION 1.17. Section 5.178(b), Water Code, is amended to
 17-6    read as follows:
 17-7          (b)  The report due by December 1 of an even-numbered year
 17-8    shall include, in addition:
 17-9                (1)  the commission's recommendations for necessary and
17-10    desirable legislation; and
17-11                (2)  the following reports:
17-12                      (A)  the assessments and reports required by
17-13    Sections 361.0219(c), 361.0232, [361.485,] 361.510, 371.063, and
17-14    382.141, Health and Safety Code; [and]
17-15                      (B)  the reports required by Section 26.0135(d)
17-16    of this code and Section 5.02, Chapter 133, Acts of the 69th
17-17    Legislature, Regular Session, 1985; and
17-18                      (C)  a summary of the analyses and assessments
17-19    required by Section 5.1773 of this code.
17-20          SECTION 1.18. Section 5.227, Water Code, is amended to read
17-21    as follows:
17-22          Sec. 5.227.  EQUAL EMPLOYMENT OPPORTUNITY POLICY. (a)  The
17-23    executive director or his designee shall prepare and maintain a
17-24    written policy statement that implements  [to assure implementation
17-25    of] a program of equal employment opportunity to ensure that
17-26    [whereby] all personnel decisions [transactions] are made without
17-27    regard to race, color, disability [handicap], sex, religion, age,
 18-1    or national origin.
 18-2          (b)  The policy statement must include:
 18-3                (1)  personnel policies, including policies relating to
 18-4    recruitment, evaluation, selection, [appointment,] training, and
 18-5    promotion of personnel, that show the intent of the commission to
 18-6    avoid the unlawful employment practices described by Chapter 21,
 18-7    Labor Code; and
 18-8                (2)  a comprehensive analysis of the extent to which
 18-9    the composition of the commission's personnel is in accordance with
18-10    state and federal law and a description of reasonable methods to
18-11    achieve compliance with state and federal law [work force that
18-12    meets federal and state guidelines;]
18-13                [(3)  procedures by which a determination can be made
18-14    of significant underutilization in the commission's work force of
18-15    all persons for whom federal or state guidelines encourage a more
18-16    equitable balance; and]
18-17                [(4)  reasonable methods to address appropriately areas
18-18    of significant underutilization in the commission's work force of
18-19    all persons for whom federal or state guidelines encourage a more
18-20    equitable balance].
18-21          (c) [(b)]  The policy statement must:
18-22                (1)  [shall be filed with the governor's office before
18-23    November 1, 1985, cover an annual period, and] be updated [at
18-24    least] annually;
18-25                (2)  be reviewed by the state Commission on Human
18-26    Rights for compliance with Subsection (b)(1); and
18-27                (3)  be filed with the governor's office.  [The
 19-1    governor's office shall develop a biennial report to the
 19-2    legislature based on the information submitted.  This report may be
 19-3    made individually or as a part of other biennial reports made to
 19-4    the legislature.]
 19-5          SECTION 1.19. Subchapter F, Chapter 5, Water Code, is amended
 19-6    by adding Section 5.2275 to read as follows:
 19-7          Sec. 5.2275.  STATE EMPLOYEE INCENTIVE PROGRAM. The executive
 19-8    director or the executive director's designee shall provide to
 19-9    commission employees information and training on the benefits and
19-10    methods of participation in the state employee incentive program
19-11    under Subchapter B, Chapter 2108, Government Code.
19-12          SECTION 1.20. Section 5.228, Water Code, is amended to read
19-13    as follows:
19-14          Sec. 5.228.  APPEARANCES AT HEARINGS. (a)  The position of
19-15    and information developed by the commission shall be presented by
19-16    the executive director or his designated representative at hearings
19-17    of the commission and the hearings held by federal, state, and
19-18    local agencies on matters affecting the public's interest in the
19-19    state's environment and natural resources, including matters that
19-20    have been determined to be policies of the state.
19-21          (b)  The executive director shall be named a party in
19-22    hearings before the commission in a matter in which the executive
19-23    director bears the burden of proof.
19-24          (c)  The executive director may participate as a party in
19-25    contested case permit hearings before the commission or the State
19-26    Office of Administrative Hearings for the sole purpose of providing
19-27    information to complete the administrative record.  The commission
 20-1    by rule shall specify the factors the executive director must
 20-2    consider in determining, case by case, whether to participate as a
 20-3    party in a contested case permit hearing.  In developing the rules
 20-4    under this subsection the commission shall consider, among other
 20-5    factors:
 20-6                (1)  the technical, legal, and financial capacity of
 20-7    the parties to the proceeding;
 20-8                (2)  whether the parties to the proceeding have
 20-9    participated in a previous contested case hearing;
20-10                (3)  the complexity of the issues presented; and
20-11                (4)  the available resources of commission staff.
20-12          (d)  In a contested case hearing relating to a permit
20-13    application, the executive director or the executive director's
20-14    designated representative may not rehabilitate the testimony of a
20-15    witness unless the witness is a commission employee testifying for
20-16    the sole purpose of providing information to complete the
20-17    administrative record.
20-18          (e)  The executive director or the executive director's
20-19    designated representative may not assist a permit applicant in
20-20    meeting its burden of proof in a hearing before the commission or
20-21    the State Office of Administrative Hearings unless the permit
20-22    applicant fits a category of permit applicant that the commission
20-23    by rule has designated as eligible to receive assistance.  The
20-24    commission shall adopt rules establishing categories of permit
20-25    applicants eligible to receive assistance.
20-26          (f)  The fact that the executive director is not named as a
20-27    party in a hearing before the commission is not grounds for
 21-1    appealing a commission decision.
 21-2          SECTION 1.21. Subchapter F, Chapter 5, Water Code, is amended
 21-3    by adding Section 5.2291 to read as follows:
 21-4          Sec. 5.2291.  SCIENTIFIC AND TECHNICAL SERVICES. (a)  In this
 21-5    section, "scientific and technical environmental services" means
 21-6    services, other than engineering services, of a scientific or
 21-7    technical nature the conduct of which requires technical training
 21-8    and professional judgment.  The term includes modeling, risk
 21-9    assessment, site characterization and assessment, studies of the
21-10    magnitude, source, and extent of contamination, contaminant fate
21-11    and transport analysis, watershed assessment and analysis, total
21-12    maximum daily load studies, scientific data analysis, and similar
21-13    tasks, to the extent those tasks are not defined as the "practice
21-14    of engineering" under The Texas Engineering Practice Act (Article
21-15    3271a, Vernon's Texas Civil Statutes).
21-16          (b)  The procurement of a contract for scientific and
21-17    technical environmental services shall be conducted under the
21-18    procedures for professional services selection provided in
21-19    Subchapter A, Chapter 2254, Government Code.
21-20          SECTION 1.22. Section 5.234(b), Water Code, is amended to
21-21    read as follows:
21-22          (b)  After an application, petition, or other document is
21-23    processed, it shall be presented to the commission for action as
21-24    required by law and rules of the commission.  If, in the course of
21-25    reviewing an application and preparing a draft permit, the
21-26    executive director has required changes to be made to the
21-27    applicant's proposal, the executive director shall prepare a
 22-1    summary of the changes that were made to increase protection of
 22-2    public health and the environment.
 22-3          SECTION 1.23. Sections 5.273 and 5.274, Water Code, are
 22-4    amended to read as follows:
 22-5          Sec. 5.273.  DUTIES OF THE PUBLIC INTEREST COUNSEL. (a)  The
 22-6    counsel shall represent the public interest and be a party to all
 22-7    proceedings before the commission.
 22-8          (b)  The counsel may recommend needed legislative and
 22-9    regulatory changes.
22-10          Sec. 5.274.  STAFF; OUTSIDE TECHNICAL SUPPORT. (a)  The
22-11    office shall be adequately staffed to carry out its functions under
22-12    this code.
22-13          (b)  The counsel may obtain and use outside technical support
22-14    to carry out its functions under this code.
22-15          SECTION 1.24. Subchapter A, Chapter 7, Water Code, is amended
22-16    by adding Section 7.0025 to read as follows:
22-17          Sec. 7.0025.  INITIATION OF ENFORCEMENT ACTION USING
22-18    INFORMATION PROVIDED BY PRIVATE INDIVIDUAL. (a)  The commission may
22-19    initiate an enforcement action on a matter under its jurisdiction
22-20    under this code or the Health and Safety Code based on information
22-21    it receives from a private individual if that information, in the
22-22    commission's judgment, is of sufficient value and credibility to
22-23    warrant the initiation of an enforcement action.
22-24          (b)  The executive director or the executive director's
22-25    designated representative may evaluate the value and credibility of
22-26    information received from a private individual and the merits of
22-27    any proposed enforcement action based on that information.
 23-1          (c)  The commission by rule may adopt criteria for the
 23-2    executive director to use in evaluating the value and credibility
 23-3    of information received from a private individual and for use of
 23-4    that information in an enforcement action.
 23-5          (d)  A private individual who submits information on which
 23-6    the commission relies for all or part of an enforcement case may be
 23-7    called to testify in the enforcement proceedings and is subject to
 23-8    all sanctions under law for knowingly falsifying evidence.  If the
 23-9    commission relies on the information submitted by a private
23-10    individual to prove an enforcement case, any physical or sampling
23-11    data must have been collected or gathered in accordance with
23-12    commission protocols.
23-13          SECTION 1.25.  Section 361.0231(a), Health and Safety Code,
23-14    is amended to read as follows:
23-15          (a)  To protect the public health and environment taking into
23-16    consideration the economic development of the state, [encourage
23-17    economic development,] and assure the continuation of the federal
23-18    funding for abandoned facility response actions, it is the state
23-19    public policy that adequate capacity should exist for the proper
23-20    management of industrial and hazardous waste generated in this
23-21    state.
23-22          SECTION 1.26. Section 26.003, Water Code, is amended to read
23-23    as follows:
23-24          Sec. 26.003.  POLICY OF THIS SUBCHAPTER.  It is the policy of
23-25    this state and the purpose of this subchapter to maintain the
23-26    quality of water in the state consistent with the public health and
23-27    enjoyment, the propagation and protection of terrestrial and
 24-1    aquatic life, and the operation of existing industries, taking into
 24-2    consideration [and] the economic development of the state; to
 24-3    encourage and promote the development and use of regional and
 24-4    areawide waste collection, treatment, and disposal systems to serve
 24-5    the waste disposal needs of the citizens of the state; and to
 24-6    require the use of all reasonable methods to implement this policy.
 24-7          SECTION 1.27. Section 27.003, Water Code, is amended to read
 24-8    as follows:
 24-9          Sec. 27.003.  POLICY AND PURPOSE.  It is the policy of this
24-10    state and the purpose of this chapter to maintain the quality of
24-11    fresh water in the state to the extent consistent with the public
24-12    health and welfare and[,] the operation of existing industries,
24-13    taking into consideration [and] the economic development of the
24-14    state, to prevent underground injection that may pollute fresh
24-15    water, and to require the use of all reasonable methods to
24-16    implement this policy.
24-17                      ARTICLE 2.  NOTICE REQUIREMENTS
24-18          SECTION 2.01. Subchapter C, Chapter 361, Health and Safety
24-19    Code, is amended by adding Section 361.0666 to read as follows:
24-20          Sec. 361.0666.  PUBLIC MEETING AND NOTICE FOR SOLID WASTE
24-21    FACILITIES.  (a)  An applicant for a permit under this chapter for
24-22    a new facility that accepts municipal solid wastes shall hold a
24-23    public meeting in the county in which the proposed facility is to
24-24    be located.  The meeting must be held before the 45th day after the
24-25    date the application is filed.
24-26          (b)  The applicant shall publish notice of the public meeting
24-27    at least once each week during the three weeks preceding the
 25-1    meeting.  The notice must be published in the newspaper of the
 25-2    largest general circulation that is published in the county in
 25-3    which the proposed facility is to be located.  If a newspaper is
 25-4    not published in the county, the notice must be published in a
 25-5    newspaper of general circulation in the county.
 25-6          (c)  The applicant shall present to the commission an
 25-7    affidavit certifying that the notice was published as required by
 25-8    Subsection (b).  The commission's acceptance of the affidavit
 25-9    raises a presumption that the  applicant has complied with
25-10    Subsection (b).
25-11          (d)  The published notice may not be smaller than 96.8 square
25-12    centimeters or 15 square inches, with the shortest dimension not
25-13    less than 7.5 centimeters or 3 inches.  The notice must contain at
25-14    least the following information:
25-15                (1)  the permit application number;
25-16                (2)  the applicant's name;
25-17                (3)  the proposed location of the facility; and
25-18                (4)  the location and availability of copies of the
25-19    application.
25-20          (e)  The applicant shall pay the cost of the notice required
25-21    under this section.  The commission by rule may establish a
25-22    procedure for payment of those costs.
25-23          SECTION 2.02. Section 382.056, Health and Safety Code, is
25-24    amended by adding Subsections (q) and (r) to read as follows:
25-25          (q)  The department shall establish rules to ensure that a
25-26    permit applicant complies with the notice requirement under
25-27    Subsection (a).
 26-1          (r)  This section does not apply to:
 26-2                (1)  the relocation or change of location of a portable
 26-3    facility to a site where a facility permitted by the commission is
 26-4    located if no portable facility has been located at the proposed
 26-5    site at any time during the previous two years; or
 26-6                (2)  a facility located temporarily in the
 26-7    right-of-way, or contiguous to the right-of-way, of a public works
 26-8    project.
 26-9                        ARTICLE 3.  FEES AND RATES
26-10          SECTION 3.01. Chapter 5, Water Code, is amended by adding a
26-11    heading for Subchapter P to read as follows:
26-12                            SUBCHAPTER P.  FEES
26-13          SECTION 3.02. Section 5.235, Water Code, is transferred to
26-14    new Subchapter P, Chapter 5, Water Code, redesignated as Section
26-15    5.701, and amended to read as follows:
26-16          Sec. 5.701 [5.235].  FEES. (a)  The executive director shall
26-17    charge and collect the fees prescribed by law.  The executive
26-18    director shall make a record of fees prescribed when due and shall
26-19    render an account to the person charged with the fees.  Each fee is
26-20    a separate charge and is in addition to other fees unless provided
26-21    otherwise.  Except as otherwise provided, a fee assessed and
26-22    collected under this section shall be deposited to the credit of
26-23    the water resource management account.
26-24                (1)  Notwithstanding other provisions, the commission
26-25    by rule may establish due dates, schedules, and procedures for
26-26    assessment, collection, and remittance of fees due the commission
26-27    to ensure the cost-effective administration of revenue collection
 27-1    and cash management programs.
 27-2                (2)  Notwithstanding other provisions, the commission
 27-3    by rule shall establish uniform and consistent requirements for the
 27-4    assessment of penalties and interest for late payment of fees owed
 27-5    the state under the commission's jurisdiction.  Penalties and
 27-6    interest established under this section shall not exceed rates
 27-7    established for delinquent taxes under Sections 111.060 and
 27-8    111.061, Tax Code.
 27-9          (b)  Except as otherwise provided by law, the fee for filing
27-10    an application or petition is $100 plus the cost of any required
27-11    notice.  The fee for a by-pass permit shall be set by the
27-12    commission at a reasonable amount to recover costs, but not less
27-13    than $100.
27-14          (c)  The fee for filing a water permit application is $100
27-15    plus the cost of required notice.
27-16          (d)  The fee for filing an application for fixing or
27-17    adjusting rates is $100 plus the cost of required notice.
27-18          (e)  A person who files with the commission a petition for
27-19    the creation of a water district or addition of sewage and drainage
27-20    powers or a resolution for a water district conversion must pay a
27-21    one-time nonrefundable application fee.  The commission by rule may
27-22    establish [set] the application fee in an amount sufficient to
27-23    cover [not to exceed] the costs of reviewing and processing the
27-24    application, plus the cost of required notice.  The commission may
27-25    also use the application fee to cover other costs incurred to
27-26    protect water resources in this state, including assessment of
27-27    water quality, reasonably related to the activities of any of the
 28-1    persons required to pay a fee under the statutes listed in
 28-2    Subsection (p).  This fee is the only fee that the commission may
 28-3    charge with regard to the processing of an application for creation
 28-4    of a water district, addition of sewage or drainage powers, or
 28-5    conversion under this code.
 28-6          (f)  A person who files a bond issue application with the
 28-7    commission must pay an application fee set by the commission.  The
 28-8    commission by rule may set the application fee in an amount not to
 28-9    exceed the costs of reviewing and processing the application, plus
28-10    the cost of required notice.  If the bonds are approved by the
28-11    commission, the seller shall pay to the commission a percentage of
28-12    the bond proceeds not later than the seventh business day after
28-13    receipt of the bond proceeds.  The commission by rule may set the
28-14    percentage of the proceeds in an amount not to exceed 0.25 percent
28-15    of the principal amount of the bonds actually issued. Proceeds of
28-16    the fees shall be used to supplement any other funds available for
28-17    paying expenses of the commission in supervising the various bond
28-18    and construction activities of the districts filing the
28-19    applications.
28-20          (g)  The fee for recording an instrument in the office of the
28-21    commission is $1.25 per page.
28-22          (h)  The fee for the use of water for irrigation is 50 cents
28-23    per acre to be irrigated.
28-24          (i)  The fee for impounding water, except under Section
28-25    11.142 of this code, is 50 cents per acre-foot of storage, based on
28-26    the total holding capacity of the reservoir at normal operating
28-27    level.
 29-1          (j)  The fee for other uses of water not specifically named
 29-2    in this section is $1 per acre-foot, except that no political
 29-3    subdivision may be required to pay fees to use water for recharge
 29-4    of underground freshwater-bearing sands and aquifers or for
 29-5    abatement of natural pollution.
 29-6          (k)  A fee charged under Subsections (h) through (j) of this
 29-7    section for one use of water under a permit from the commission may
 29-8    not exceed $50,000. The fee for each additional use of water under
 29-9    a permit for which the maximum fee is paid may not exceed $10,000.
29-10          (l)  The fees prescribed by Subsections (h) through (j) of
29-11    this section are one-time fees, payable when the application for an
29-12    appropriation is made.   However, if the total fee for a permit
29-13    exceeds $1,000, the applicant shall pay one-half of the fee when
29-14    the application is filed and one-half within 180 days after notice
29-15    is mailed to him that the permit is granted.  If the applicant does
29-16    not pay all of the amount owed before beginning to use water under
29-17    the permit, the permit is annulled.
29-18          (m)  If a permit is annulled, the matter reverts to the
29-19    status of a pending, filed application and, on the payment of use
29-20    fees as provided by Subsections (h) through (l) of this section
29-21    together with sufficient postage fees for mailing notice of
29-22    hearing, the commission shall set the application for hearing and
29-23    proceed as provided by this code.
29-24          (n)(1)  Each provider of potable water or sewer utility
29-25    service shall collect a regulatory assessment from each retail
29-26    customer as follows:
29-27                      (A)  A public utility as defined in Section
 30-1    13.002 of this code shall collect from each retail customer a
 30-2    regulatory assessment equal to one percent of the charge for retail
 30-3    water or sewer service.
 30-4                      (B)  A water supply or sewer service corporation
 30-5    as defined in Section 13.002 of this code shall collect from each
 30-6    retail customer a regulatory assessment equal to one-half of one
 30-7    percent of the charge for retail water or sewer service.
 30-8                      (C)  A district as defined in Section 49.001 of
 30-9    this code that provides potable water or sewer utility service to
30-10    retail customers shall collect from each retail customer a
30-11    regulatory assessment equal to one-half of one percent of the
30-12    charge for retail water or sewer service.
30-13                (2)  The regulatory assessment may be listed on the
30-14    customer's bill as a separate item and shall be collected in
30-15    addition to other charges for utility services.
30-16                (3)  The commission shall use the assessments collected
30-17    under this subsection solely to pay costs and expenses incurred by
30-18    the commission in the regulation of districts, water supply or
30-19    sewer service corporations, and public utilities under Chapter 13,
30-20    Water Code.
30-21                (4)  The commission shall annually use a portion of the
30-22    assessments to provide on-site technical assistance and training to
30-23    public utilities, water supply or sewer service corporations, and
30-24    districts.  The commission shall contract with others to provide
30-25    the services.
30-26                (5)  The commission by rule may establish due dates,
30-27    collection procedures, and penalties for late payment related to
 31-1    regulatory assessments under this subsection.  The executive
 31-2    director shall collect all assessments from the utility service
 31-3    providers.
 31-4                (6)  The commission shall assess a penalty against a
 31-5    municipality with a population of more than 1.5 million that does
 31-6    not provide municipal water and sewer services in an annexed area
 31-7    in accordance with Section 43.0565, Local Government Code.  A
 31-8    penalty assessed under this paragraph shall be not more than $1,000
 31-9    for each day the services are not provided after March 1, 1998, for
31-10    areas annexed before January 1, 1993, or not provided within 4 1/2
31-11    years after the effective date of the annexation for areas annexed
31-12    on or after January 1, 1993.  A penalty collected under this
31-13    paragraph shall be deposited to the credit of the water resource
31-14    management account to be used to provide water and sewer service to
31-15    residents of the city.
31-16                (7)  The regulatory assessment does not apply to water
31-17    that has not been treated for the purpose of human consumption.
31-18          (o)  A fee imposed under Subsection (j) of this section for
31-19    the use of saline tidal water for industrial processes shall be $1
31-20    per acre-foot of water diverted for the industrial process, not to
31-21    exceed a total fee of $5,000.
31-22          (p)  Notwithstanding any other law, fees collected for
31-23    deposit to the water resource management account under the
31-24    following statutes may be appropriated and used to protect water
31-25    resources in this state, including assessment of water quality,
31-26    reasonably related to the activities of any of the persons required
31-27    to pay a fee under:
 32-1                (1)  Subsection (b), to the extent those fees are paid
 32-2    by water districts, and Subsections (e), (f), and (n);
 32-3                (2)  Sections 13.4521 and 13.4522; or
 32-4                (3)  Section 54.037(c).
 32-5          (q)  Notwithstanding any other law, fees collected for
 32-6    deposit to the water resource management account under the
 32-7    following statutes may be appropriated and used to protect water
 32-8    resources in this state, including assessment of water quality,
 32-9    reasonably related to the activities of any of the persons required
32-10    to pay a fee under:
32-11                (1)  Subsections (b) and (c), to the extent those fees
32-12    are collected in connection with water use or water quality
32-13    permits;
32-14                (2)  Subsections (h)-(l);
32-15                (3)  Section 11.138(g);
32-16                (4)  Section 11.145;
32-17                (5)  Section 26.0135(h);
32-18                (6)  Sections 26.0291, 26.044, and 26.0461;
32-19                (7)  Sections 341.041, 366.058, and 366.059, Health and
32-20    Safety Code; or
32-21                (8)  Section 372.002(d), Health and Safety Code.
32-22          SECTION 3.03. New Subchapter P, Chapter 5, Water Code, is
32-23    amended by adding Sections 5.702-5.708 to read as follows:
32-24          Sec. 5.702.  PAYMENT OF FEES REQUIRED WHEN DUE. (a)  A fee
32-25    due the commission under this code or the Health and Safety Code
32-26    shall be paid on the date the fee is due, regardless of whether the
32-27    fee is billed by the commission to the person required to pay the
 33-1    fee or is calculated and paid to the commission by the person
 33-2    required to pay the fee.
 33-3          (b)  A person required to pay a fee to the commission may not
 33-4    dispute the assessment of or amount of a fee before the fee has
 33-5    been paid in full.
 33-6          Sec. 5.703.  FEE ADJUSTMENTS. (a)  The commission may not
 33-7    consider adjusting the amount of a fee due the commission under
 33-8    this code or the Health and Safety Code:
 33-9                (1)  before the fee has been paid in full; or
33-10                (2)  if the request for adjustment is received after
33-11    the first anniversary of the date on which the fee was paid in
33-12    full.
33-13          (b)  A person who pays an amount that exceeds the amount of
33-14    the fee due because the commission incorrectly calculated the fee
33-15    or the person made a duplicate payment may request a refund of the
33-16    excess amount paid before the fourth anniversary of the date on
33-17    which the excess amount was paid.
33-18          (c)  A request for a refund or credit in an amount that
33-19    exceeds $5,000 shall be forwarded for approval to the commission
33-20    fee audit staff, together with an explanation of the grounds for
33-21    the requested refund or credit.  Approval of a refund or credit
33-22    does not prevent the fee audit staff from conducting a subsequent
33-23    audit of the person for whom the refund or credit was approved.
33-24          Sec. 5.704.  NOTICE OF CHANGE IN PAYMENT PROCEDURE. The
33-25    commission shall promptly notify each person required to pay a
33-26    commission fee under this code or the Health and Safety Code of any
33-27    change in fee payment procedures.
 34-1          Sec. 5.705.  NOTICE OF VIOLATION. (a)  The commission may
 34-2    issue a notice of violation to a person required to pay a
 34-3    commission fee under this code or the Health and Safety Code for
 34-4    knowingly violating reporting requirements or knowingly calculating
 34-5    the fee in an amount less than the amount actually due.
 34-6          (b)  The executive director may modify audit findings
 34-7    reported by a commission fee auditor only if the executive director
 34-8    provides a written explanation showing good cause for the
 34-9    modification.
34-10          Sec. 5.706.  PENALTIES AND INTEREST ON DELINQUENT FEES. (a)
34-11    Except as otherwise provided by law, the commission may collect,
34-12    for a delinquent fee due the commission under this code or the
34-13    Health and Safety Code:
34-14                (1)  a penalty in an amount equal to five percent of
34-15    the amount of the fee due, if the fee is not paid on or before the
34-16    day on which the fee is due; and
34-17                (2)  an additional penalty in an amount equal to five
34-18    percent of the amount due, if the fee is not paid on or before the
34-19    30th day after the date on which the fee was due.
34-20          (b)  Unless otherwise required by law interest accrues,
34-21    beginning on the 61st day after the date on which the fee was due,
34-22    on the total amount of fee and penalties that have not been paid on
34-23    or before the 61st day after the date on which the fee was due.
34-24    The yearly interest rate is the rate of interest established for
34-25    delinquent taxes under Section 111.060, Tax Code.
34-26          (c)  The executive director may modify a penalty or interest
34-27    on a fee and penalties authorized by this section if the executive
 35-1    director provides a written explanation showing good cause for the
 35-2    modification.
 35-3          (d)  Penalties and interest collected by the commission under
 35-4    this section or under other law, unless that law otherwise
 35-5    provides, shall be deposited to the credit of the fund or account
 35-6    to which the fee is required to be deposited.
 35-7          Sec. 5.707.  TRANSFERABILITY OF APPROPRIATIONS AND FUNDS
 35-8    DERIVED FROM FEES. Notwithstanding any law that provides specific
 35-9    purposes for which a fund, account, or revenue source may be used
35-10    and expended by the commission and that restricts the use of
35-11    revenues and balances by the commission, the commission may
35-12    transfer a percentage of appropriations from one appropriation item
35-13    to another appropriation item consistent with the General
35-14    Appropriations Act for any biennium authorizing the commission to
35-15    transfer a percentage of appropriations from one appropriation item
35-16    to another appropriation item.  The use of funds in dedicated
35-17    accounts under this section for purposes in addition to those
35-18    provided by statutes restricting their use may not exceed seven
35-19    percent or $20 million, whichever is less, of appropriations to the
35-20    commission in the General Appropriations Act for any biennium.  A
35-21    transfer of $500,000 or more from one appropriation item to another
35-22    appropriation item under this section must be approved by the
35-23    commission at an open meeting subject to Chapter 551, Government
35-24    Code.
35-25          Sec. 5.708.  PERMIT FEE EXEMPTION FOR CERTAIN RESEARCH
35-26    PROJECTS. (a) In this section:
35-27                (1)  "Institution of higher education" has the meaning
 36-1    assigned by Section 61.003, Education Code.
 36-2                (2)  "State agency" has the meaning assigned by Section
 36-3    572.002, Government Code.
 36-4          (b)  If a permit issued by the commission is required for a
 36-5    research project by an institution of higher education or a state
 36-6    agency, payment of a fee is not required for the permit.
 36-7          SECTION 3.04. Section 26.0291, Water Code, is amended to read
 36-8    as follows:
 36-9          Sec. 26.0291.  WATER QUALITY [WASTE TREATMENT INSPECTION]
36-10    FEE. (a)  An annual water quality [waste treatment inspection] fee
36-11    is imposed on:
36-12                (1)  each wastewater [permittee for each waste]
36-13    discharge permit holder for each wastewater discharge permit held;
36-14    and
36-15                (2)  each user of water in proportion to the user's
36-16    water right, through permit or contract, as reflected in the
36-17    commission's records, provided that the commission by rule shall
36-18    ensure that no fee shall be assessed for the portion of a municipal
36-19    or industrial water right directly associated with a facility or
36-20    operation for which a fee is assessed under Subdivision (1) of this
36-21    subsection [by the permittee].
36-22          (b)  The fee is to supplement any other funds available to
36-23    pay expenses of the commission related to:
36-24                (1)  [in] inspecting waste treatment facilities; and
36-25                (2)  enforcing the laws of the state and the rules of
36-26    the commission governing:
36-27                      (A)  waste discharge and waste treatment
 37-1    facilities, including any expenses [of the commission] necessary
 37-2    [to obtain from the federal government delegation of and] to
 37-3    administer the national pollutant discharge elimination system
 37-4    (NPDES) program;
 37-5                      (B)  the water resources of this state, including
 37-6    the water quality management programs under Section 26.0135; and
 37-7                      (C)  any other water resource management programs
 37-8    reasonably related to the activities of the persons required to pay
 37-9    a fee under this section.
37-10          (c)  The fee for each year is imposed on each permit or water
37-11    right in effect during any part of the year.  The commission may
37-12    establish reduced fees for inactive permits.
37-13          (d)  Irrigation water rights are not subject to a fee under
37-14    this section.
37-15          (e) [(b)]  The commission by rule shall adopt a fee schedule
37-16    for determining the amount of the fee to be charged.  The amount of
37-17    the fee may not exceed $75,000 [$25,000] for each [waste discharge]
37-18    permit or contract [held by a permittee].  The maximum annual fee
37-19    under this section for a wastewater discharge or waste treatment
37-20    facility that holds a water right for the use of water by the
37-21    facility may not exceed $75,000.  In determining the amount of a
37-22    fee under this section, the commission may consider:
37-23                (1)  waste discharge permitting factors such as flow
37-24    volume, toxic pollutant potential, level of traditional pollutant,
37-25    and heat load;
37-26                (2)  [.  The commission may consider] the designated
37-27    uses and segment ranking classification of the water affected by
 38-1    discharges from the permitted facility;
 38-2                (3)  [.  Finally, the commission also may consider] the
 38-3    expenses necessary to obtain and administer the NPDES program;
 38-4                (4)  the reasonable costs of administering the water
 38-5    quality management programs under Section 26.0135; and
 38-6                (5)  any other reasonable costs necessary to administer
 38-7    and enforce a water resource management program reasonably related
 38-8    to the activities of the persons required to pay a fee under this
 38-9    section.  [The commission shall not adopt any rule designed to
38-10    increase the fee imposed under this section on a treatment works
38-11    owned by a local government, as those terms are defined in Section
38-12    26.001 of this code, before August 31, 1999.]
38-13          (f) [(c)]  The fees collected under this section shall be
38-14    deposited to the credit of the water resource management account,
38-15    an account in the general revenue fund.
38-16          (g) [(d)]  The commission may adopt rules necessary to
38-17    administer this section.
38-18          (h) [(e)]  A fee collected under this section is in addition
38-19    to any other fee that may be charged under this chapter.
38-20          SECTION 3.05. Section 26.0135(h), Water Code, is amended to
38-21    read as follows:
38-22          (h)  The commission shall apportion, assess, and recover the
38-23    reasonable costs of administering the water quality management
38-24    programs under this section [from users of water and wastewater
38-25    permit holders in the watershed according to the records of the
38-26    commission generally in proportion to their right, through permit
38-27    or contract, to use water from and discharge wastewater in the
 39-1    watershed.  Irrigation water rights will not be subject to this
 39-2    assessment].  The cost to river authorities and others to conduct
 39-3    water quality monitoring and assessment shall be subject to prior
 39-4    review and approval by the commission as to methods of allocation
 39-5    and total amount to be recovered.  The commission shall adopt rules
 39-6    to supervise and implement the water quality monitoring,
 39-7    assessment, and associated costs.  The rules shall ensure that
 39-8    water users and wastewater dischargers do not pay excessive
 39-9    amounts, [that program funds are equitably apportioned among
39-10    basins,] that a river authority may recover no more than the actual
39-11    costs of administering the water quality management programs called
39-12    for in this section, and that no municipality shall be assessed the
39-13    cost for any efforts under this section that duplicate water
39-14    quality management activities described in Section 26.177 of this
39-15    chapter.  [The rules concerning the apportionment and assessment of
39-16    reasonable costs shall provide for a recovery of not more than
39-17    $5,000,000 annually.  Costs recovered by the commission are to be
39-18    deposited to the credit of the water resource management account
39-19    and may be used only to accomplish the purposes of this section.
39-20    The commission may apply not more than 10 percent of the costs
39-21    recovered annually toward the commission's overhead costs for the
39-22    administration of this section and the implementation of regional
39-23    water quality assessments.  The commission, with the assistance and
39-24    input of each river authority, shall file a written report
39-25    accounting for the costs recovered under this section with the
39-26    governor, the lieutenant governor, and the speaker of the house of
39-27    representatives on or before December 1 of each even-numbered
 40-1    year.]
 40-2          SECTION 3.06. Section 26.0135(j), Water Code, is repealed.
 40-3          SECTION 3.07. Section 341.041(a), Health and Safety Code, is
 40-4    amended to read as follows:
 40-5          (a)  The commission by rule may charge fees to a person who
 40-6    owns, operates, or maintains a public drinking water supply system
 40-7    [to recover the costs of public drinking water supply system
 40-8    programs or services authorized by this subchapter or performed
 40-9    pursuant to the requirements of the federal Safe Drinking Water Act
40-10    (42 U.S.C. Section 300f et seq.)].  The commission may establish a
40-11    schedule of fees.  The amount of the fees must be sufficient to
40-12    cover [may not exceed] the reasonable costs of administering the
40-13    programs and services in this subchapter or the federal Safe
40-14    Drinking Water Act (42 U.S.C. Section 300f et seq.).  Among other
40-15    factors, the commission shall consider equity among persons
40-16    required to pay the fees as a factor in determining the amount of
40-17    the fees.  The commission may also use the fees to cover any other
40-18    costs incurred to protect water resources in this state, including
40-19    assessment of water quality, reasonably related to the activities
40-20    of any of the persons required to pay a fee under the statutes
40-21    listed in Section 5.701(q), Water Code.
40-22          SECTION 3.08. Section 366.058(a), Health and Safety Code, is
40-23    amended to read as follows:
40-24          (a)  The commission by rule shall establish and collect a
40-25    reasonable permit fee to cover the cost of issuing permits under
40-26    this chapter and administering the permitting system.  The
40-27    commission may also use the fee to cover any other costs incurred
 41-1    to protect water resources in this state, including assessment of
 41-2    water quality, reasonably related to the activities of any of the
 41-3    persons required to pay a fee under the statutes listed in Section
 41-4    5.701(q), Water Code.
 41-5          SECTION 3.09. Section 366.059, Health and Safety Code, is
 41-6    amended by amending Subsection (b) and adding Subsection (d) to
 41-7    read as follows:
 41-8          (b)  The commission may assess a reasonable and appropriate
 41-9    charge-back fee, not to exceed $500, to a local governmental entity
41-10    for which the commission issues permits for administrative costs
41-11    relating to the permitting function that are not covered by the
41-12    permit fees collected.  The commission shall base the amount of a
41-13    charge-back fee under this subsection on the actual cost of issuing
41-14    a permit under this section.  The commission may assess a
41-15    charge-back fee to a local governmental entity under this
41-16    subsection if the local governmental entity is an authorized agent
41-17    that:
41-18                (1)  has repealed the order, ordinance, or resolution
41-19    that established the entity as an authorized agent; or
41-20                (2)  has had its authorization as an authorized agent
41-21    revoked by the commission.
41-22          (d)  The commission may not assess a charge-back fee to a
41-23    local governmental entity if the local governmental entity has
41-24    repealed the order, ordinance, or resolution that established the
41-25    entity as an authorized agent or has lost its designation as an
41-26    authorized agent due to material change in the commission's rules
41-27    under this chapter.
 42-1          SECTION 3.10.  Section 13.187(a), Water Code, is amended to
 42-2    read as follows:
 42-3          (a)  A utility may not make changes in its rates except by
 42-4    delivering a statement of intent to each ratepayer and with the
 42-5    regulatory authority having original jurisdiction at least 60 [30]
 42-6    days before the effective date of the proposed change.  The
 42-7    effective date of the new rates must be the first day of a billing
 42-8    period, and the new rates may not apply to service received before
 42-9    the effective date of the new rates.  The statement of intent must
42-10    include the information required by the regulatory authority's
42-11    rules.  A copy of the statement of intent shall be mailed or
42-12    delivered to the appropriate offices of each affected municipality,
42-13    and to any other affected persons as required by the regulatory
42-14    authority's rules.  When the statement of intent is delivered, the
42-15    utility shall file with the regulatory authority an application to
42-16    change rates.  The application must include information the
42-17    regulatory authority requires by rule.  If the utility fails to
42-18    provide within a reasonable time after the application is filed the
42-19    necessary documentation or other evidence that supports the costs
42-20    and expenses that are shown in the application, the regulatory
42-21    authority may disallow the nonsupported expenses.  If the
42-22    application or the statement of intent is not substantially
42-23    complete or does not comply with the regulatory authority's rules,
42-24    it may be rejected and the effective date of the rate change may be
42-25    suspended until a properly completed application is accepted by the
42-26    regulatory authority and a proper statement of intent is provided.
42-27    The commission may also suspend the effective date of any rate
 43-1    change if the utility does not have a certificate of public
 43-2    convenience and necessity or a completed application for a
 43-3    certificate or to transfer a certificate pending before the
 43-4    commission or if the utility is delinquent in paying the assessment
 43-5    and any applicable penalties or interest required by Section
 43-6    5.701(n) [5.235(n)] of this code.
 43-7                 ARTICLE 4.  PERFORMANCE-BASED REGULATION
 43-8          SECTION 4.01. Chapter 5, Water Code, is amended by adding
 43-9    Subchapter Q to read as follows:
43-10                SUBCHAPTER Q.  PERFORMANCE-BASED REGULATION
43-11          Sec. 5.751.  APPLICABILITY. This subchapter applies to
43-12    programs under the jurisdiction of the commission under Chapters 26
43-13    and 27 of this code and Chapters 361, 382, and 401, Health and
43-14    Safety Code.  It does not apply to occupational licensing programs
43-15    under the jurisdiction of the commission.
43-16          Sec. 5.752.  DEFINITIONS. In this subchapter:
43-17                (1)  "Applicable legal requirement" means an
43-18    environmental law, regulation, permit, order, consent, decree, or
43-19    other requirement.
43-20                (2)  "Innovative program" means:
43-21                      (A)  a program developed by the commission under
43-22    this subchapter, Chapter 26 or 27 of this code, or Chapter 361,
43-23    382, or 401, Health and Safety Code, that provides incentives to a
43-24    person in return for benefits to the environment that exceed
43-25    benefits that would result from compliance with applicable legal
43-26    requirements under the commission's jurisdiction;
43-27                      (B)  the flexible permit program administered by
 44-1    the commission under Chapter 382, Health and Safety Code; or
 44-2                      (C)  the regulatory flexibility program
 44-3    administered by the commission under Section 5.758.
 44-4                (3)  "Permit" includes a license, certificate,
 44-5    registration, approval, permit by rule, standard permit, or other
 44-6    form of authorization issued by the commission under this code or
 44-7    the Health and Safety Code.
 44-8                (4)  "Region" means a region of the commission's field
 44-9    operations division or that division's successor.
44-10                (5)  "Strategically directed regulatory structure"
44-11    means a program that is designed to use innovative programs to
44-12    provide maximum environmental benefit and to reward compliance
44-13    performance.
44-14          Sec. 5.753.  STANDARD FOR EVALUATING COMPLIANCE HISTORY. (a)
44-15    Consistent with other law and the requirements necessary to
44-16    maintain federal program authorization, the commission by rule
44-17    shall develop a uniform standard for evaluating compliance history.
44-18          (b)  The components of compliance history must include:
44-19                (1)  enforcement orders, court judgments, consent
44-20    decrees, and criminal convictions of this state and the federal
44-21    government relating to compliance with applicable legal
44-22    requirements under the jurisdiction of the commission or the United
44-23    States Environmental Protection Agency;
44-24                (2)  notwithstanding any other provision of this code,
44-25    orders issued under Section 7.070;
44-26                (3)  to the extent readily available to the commission,
44-27    enforcement orders, court judgments, and criminal convictions
 45-1    relating to violations of environmental laws of other states; and
 45-2                (4)  changes in ownership.
 45-3          (c)  The set of components must also include any information
 45-4    required by other law or any requirement necessary to maintain
 45-5    federal program authorization.
 45-6          (d)  The set of components shall include notices of
 45-7    violations.  A notice of violation administratively determined to
 45-8    be without merit shall not be included in a compliance history.  A
 45-9    notice of violation that is included in a compliance history shall
45-10    be removed from the compliance history if the commission
45-11    subsequently determines the notice of violation to be without
45-12    merit.
45-13          (e)  Except as required by other law or any requirement
45-14    necessary to maintain federal program authorization, the commission
45-15    by rule shall establish a period for compliance history.
45-16          Sec. 5.754.  CLASSIFICATION AND USE OF COMPLIANCE HISTORY.
45-17    (a)  The commission by rule shall establish a set of standards for
45-18    the classification of a person's compliance history.
45-19          (b)  Rules adopted under this section must, at a minimum,
45-20    provide for three classifications of compliance history in a manner
45-21    adequate to distinguish among:
45-22                (1)  poor performers, or regulated entities that in the
45-23    commission's judgment perform below average;
45-24                (2)  average performers, or regulated entities that
45-25    generally comply with environmental regulations; and
45-26                (3)  high performers, or regulated entities that have
45-27    an above-average compliance record.
 46-1          (c)  In classifying a person's compliance history, the
 46-2    commission shall:
 46-3                (1)  determine whether a violation of an applicable
 46-4    legal requirement is of major, moderate, or minor significance;
 46-5                (2)  establish criteria for classifying a repeat
 46-6    violator, giving consideration to the number and complexity of
 46-7    facilities owned or operated by the person; and
 46-8                (3)  consider the significance of the violation and
 46-9    whether the person is a repeat violator.
46-10          (d)  The commission by rule shall establish methods of
46-11    assessing the compliance history of regulated entities for which it
46-12    does not have adequate compliance information.  The methods may
46-13    include requiring a compliance inspection to determine an entity's
46-14    eligibility for participation in a program that requires a high
46-15    level of compliance.
46-16          (e)  The commission by rule shall provide for the use of
46-17    compliance history classifications in commission decisions
46-18    regarding:
46-19                (1)  the issuance, renewal, amendment, modification,
46-20    denial, suspension, or revocation of a permit;
46-21                (2)  enforcement;
46-22                (3)  the use of announced inspections; and
46-23                (4)  participation in innovative programs.
46-24          (f)  The assessment methods shall specify the circumstances
46-25    in which the commission may revoke the permit of a repeat violator
46-26    and shall establish enhanced administrative penalties for repeat
46-27    violators.
 47-1          (g)  Rules adopted under Subsection (e) for the use of
 47-2    compliance history shall provide for additional oversight of, and
 47-3    review of applications regarding, facilities owned or operated by a
 47-4    person whose compliance performance is in the lowest classification
 47-5    developed under this section.
 47-6          (h)  The commission by rule shall, at a minimum, prohibit a
 47-7    person whose compliance history is classified in the lowest
 47-8    classification developed under this section from:
 47-9                (1)  receiving an announced inspection; and
47-10                (2)  obtaining or renewing a flexible permit under the
47-11    program administered by the commission under Chapter 382, Health
47-12    and Safety Code, or participating in the regulatory flexibility
47-13    program administered by the commission under Section 5.758.
47-14          (i)  The commission shall consider the compliance history of
47-15    a regulated entity when determining whether to grant the regulated
47-16    entity's application for a permit or permit amendment for any
47-17    activity under the commission's jurisdiction to which this
47-18    subchapter applies. Notwithstanding any provision of this  code or
47-19    the Health and Safety Code relating to the granting of permits or
47-20    permit amendments by the commission, the commission, after an
47-21    opportunity for a hearing, shall deny a regulated entity's
47-22    application for a permit or permit amendment if the regulated
47-23    entity's compliance history is unacceptable based on violations
47-24    constituting a recurring pattern of conduct that demonstrates a
47-25    consistent disregard for the regulatory process, including a
47-26    failure to make a timely and substantial attempt to correct the
47-27    violations.
 48-1          Sec. 5.755.  STRATEGICALLY DIRECTED REGULATORY STRUCTURE.
 48-2    (a)  The commission by rule shall develop a strategically directed
 48-3    regulatory structure to provide incentives for enhanced
 48-4    environmental performance.
 48-5          (b)  The strategically directed regulatory structure shall
 48-6    offer incentives based on:
 48-7                (1)  a  person's  compliance  history  classification;
 48-8    and
 48-9                (2)  any voluntary measures undertaken by the person to
48-10    improve environmental quality.
48-11          (c)  An innovative program offered as part of the
48-12    strategically directed regulatory structure must be consistent with
48-13    other law and any requirement necessary to maintain federal program
48-14    authorization.
48-15          Sec. 5.756.  COLLECTION AND ANALYSIS OF COMPLIANCE
48-16    PERFORMANCE INFORMATION.  (a)  The commission shall collect data
48-17    on:
48-18                (1)  the results of inspections conducted by the
48-19    commission; and
48-20                (2)  whether inspections are announced or unannounced.
48-21          (b)  The commission shall collect data on and make available
48-22    to the public on the Internet:
48-23                (1)  the number and percentage of all violations
48-24    committed by persons who previously have committed the same or
48-25    similar violations;
48-26                (2)  the number and percentage of enforcement orders
48-27    issued by the commission that are issued to entities that have been
 49-1    the subject of a previous enforcement order;
 49-2                (3)  whether a violation is of major, moderate, or
 49-3    minor significance, as defined by commission rule;
 49-4                (4)  whether a violation relates to an applicable legal
 49-5    requirement pertaining to air, water, or waste; and
 49-6                (5)  the region in which the facility is located.
 49-7          (c)  The commission annually shall prepare a comparative
 49-8    analysis of data evaluating the performance, over time, of the
 49-9    commission and of entities regulated by the commission.
49-10          (d)  The commission shall include in the annual enforcement
49-11    report required by Section 5.123, as added by Chapters 304 and
49-12    1082, Acts of the 75th Legislature, Regular Session, 1997, the
49-13    comparative performance analysis required by Subsection (c),
49-14    organized by region and regulated medium.
49-15          Sec. 5.757.  COORDINATION OF INNOVATIVE PROGRAMS.  (a)  The
49-16    commission shall designate a single point of contact within the
49-17    agency to coordinate all innovative programs.
49-18          (b)  The coordinator shall:
49-19                (1)  inventory, coordinate, and market and evaluate all
49-20    innovative programs;
49-21                (2)  provide information and technical assistance to
49-22    persons participating in or interested in participating in those
49-23    programs; and
49-24                (3)  work with the pollution prevention advisory
49-25    committee to assist the commission in integrating the innovative
49-26    programs into the commission's operations, including:
49-27                      (A)  program administration;
 50-1                      (B)  strategic planning; and
 50-2                      (C)  staff training.
 50-3          SECTION 4.02. Section 5.123, Water Code, as added by Chapter
 50-4    1203, Acts of the 75th Legislature, Regular Session, 1997, is
 50-5    transferred to new Subchapter Q, Chapter 5, Water Code,
 50-6    redesignated as Section 5.758, and amended to read as follows:
 50-7          Sec. 5.758 [5.123].  REGULATORY FLEXIBILITY. (a)  The
 50-8    commission by order may exempt an applicant from a requirement of a
 50-9    statute or commission rule regarding the control or abatement of
50-10    pollution if the applicant proposes to control or abate pollution
50-11    by an alternative method or by applying an alternative standard
50-12    that is:
50-13                (1)  more [at least as] protective of the environment
50-14    and the public health than [as] the method or standard prescribed
50-15    by the statute or commission rule that would otherwise apply; and
50-16                (2)  not inconsistent with federal law.
50-17          (b)  The commission may not exempt an applicant under this
50-18    section unless the applicant can present to the commission
50-19    documented evidence of benefits to environmental quality that will
50-20    result from the project the applicant proposes.
50-21          (c)  The commission by rule shall specify the procedure for
50-22    obtaining an exemption under this section.  The rules must provide
50-23    for public notice and for public participation in a proceeding
50-24    involving an application for an exemption under this section.
50-25          (d) [(c)]  The commission's order must provide a specific
50-26    description of the alternative method or standard and condition the
50-27    exemption on compliance with the method or standard as the order
 51-1    prescribes.
 51-2          (e) [(d)]  The commission by rule may establish a reasonable
 51-3    fee for applying for an exemption under this section.
 51-4          (f) [(e)]  A violation of an order issued under this section
 51-5    is punishable as if it were a violation of the statute or rule from
 51-6    which the order grants an exemption.
 51-7          [(f)  A permit may satisfy a requirement to demonstrate need
 51-8    by showing need on a regional basis considering economic impacts.]
 51-9          (g)  This section does not authorize exemptions to statutes
51-10    or regulations for storing, handling, processing, or disposing of
51-11    low-level radioactive materials.
51-12          (h)  In implementing the program of regulatory flexibility
51-13    authorized by this section, the commission shall:
51-14                (1)  market the program to businesses in the state
51-15    through all available appropriate media;
51-16                (2)  endorse alternative methods that will clearly
51-17    benefit the environment and impose the least onerous restrictions
51-18    on business;
51-19                (3)  fix and enforce environmental standards, allowing
51-20    businesses flexibility in meeting the standards in a manner that
51-21    clearly enhances environmental outcomes; and
51-22                (4)  work to achieve consistent and predictable results
51-23    for the regulated community and shorter waits for permit issuance.
51-24          SECTION 4.03. Section 7.067(a), Water Code, is amended to
51-25    read as follows:
51-26          (a)  The commission may compromise, modify, or remit, with or
51-27    without conditions, an administrative penalty imposed under this
 52-1    subchapter.  In determining the appropriate amount of a penalty for
 52-2    settlement of an administrative enforcement matter, the commission
 52-3    may consider a respondent's willingness to contribute to
 52-4    supplemental environmental projects that are approved by the
 52-5    commission, giving preference to projects that benefit the
 52-6    community in which the alleged violation occurred.  The commission
 52-7    may approve a supplemental environmental project with activities in
 52-8    territory of the United Mexican States if the project substantially
 52-9    benefits territory in this state in a manner described by
52-10    Subsection (b).  The commission may not approve a project that is
52-11    necessary to bring a respondent into compliance with environmental
52-12    laws, [or] that is necessary to remediate environmental harm caused
52-13    by the respondent's alleged violation, or that the respondent has
52-14    already agreed to perform under a preexisting agreement with a
52-15    governmental agency.
52-16          SECTION 4.04. Section 361.0215, Health and Safety Code, is
52-17    amended to read as follows:
52-18          Sec. 361.0215.  POLLUTION PREVENTION [WASTE REDUCTION]
52-19    ADVISORY COMMITTEE. (a)  The pollution prevention [waste reduction]
52-20    advisory committee is composed of nine members with a balanced
52-21    representation of environmental and public interest groups and the
52-22    regulated community.
52-23          (b)  The committee shall advise the commission and
52-24    interagency coordination council on:
52-25                (1)  the appropriate organization of state agencies and
52-26    the financial and technical resources required to aid the state in
52-27    its efforts to promote waste reduction and minimization;
 53-1                (2)  the development of public awareness programs to
 53-2    educate citizens about hazardous waste and the appropriate disposal
 53-3    of hazardous waste and hazardous materials that are used and
 53-4    collected by households;
 53-5                (3)  the provision of technical assistance to local
 53-6    governments for the development of waste management strategies
 53-7    designed to assist small quantity generators of hazardous waste;
 53-8    and
 53-9                (4)  other possible programs to more effectively
53-10    implement the state's hierarchy of preferred waste management
53-11    technologies as set forth in Section 361.023(a).
53-12          (c)  The committee shall advise the commission on the
53-13    creation and implementation of the strategically directed
53-14    regulatory structure developed under Section 5.755, Water Code.
53-15          (d)  The committee shall report quarterly to the commission
53-16    on its activities, including suggestions or proposals for future
53-17    activities and other matters the committee considers important.
53-18          SECTION 4.05. Section 361.088, Health and Safety Code, is
53-19    amended by adding Subsection (g) to read as follows:
53-20          (g)  The commission shall review a permit issued under this
53-21    chapter every five years to assess the permit holder's compliance
53-22    history.
53-23                  ARTICLE 5.  REGULATION OF AIR POLLUTION
53-24          SECTION 5.01. (a)  Subchapter B, Chapter 382, Health and
53-25    Safety Code, is amended by adding Sections 382.0215 and 382.0216 to
53-26    read as follows:
53-27          Sec. 382.0215.  ASSESSMENT OF EMISSIONS DUE TO EMISSIONS
 54-1    EVENTS. (a)  In this section, "emissions event" means an upset, or
 54-2    unscheduled maintenance, startup, or shutdown activity, that
 54-3    results in the unauthorized emissions of air contaminants from an
 54-4    emissions point.  Maintenance, startup, and shutdown activities
 54-5    shall not be considered unscheduled only if the activity will not
 54-6    and does not result in the emission of at least a reportable
 54-7    quantity of unauthorized emissions of air contaminants and the
 54-8    activity is recorded as may be required by commission rule, or if
 54-9    the activity will result in the emission of at least a reportable
54-10    quantity of unauthorized emissions and:
54-11                (1)  the owner or operator of the facility provides any
54-12    prior notice or final report that the commission, by rule, may
54-13    establish;
54-14                (2)  the notice or final report includes the
54-15    information required in Subsection (b)(3); and
54-16                (3)  the actual emissions do not exceed the estimates
54-17    submitted in the notice.
54-18          (b)  The commission shall require the owner or operator of a
54-19    facility that experiences emissions events:
54-20                (1)  to maintain a record of all emissions events at
54-21    the facility in the manner and for the periods prescribed by
54-22    commission rule;
54-23                (2)  to notify the commission, as soon as practicable
54-24    but not later than 24 hours after discovery of the emissions event,
54-25    of an emissions event resulting in the emission of a reportable
54-26    quantity of air contaminants as determined by commission rule; and
54-27                (3)  to report to the commission, not later than two
 55-1    weeks after the occurrence of an emissions event that results in
 55-2    the emission of a reportable quantity of air contaminants as
 55-3    determined by commission rule, all information necessary to
 55-4    evaluate the emissions event, including:
 55-5                      (A)  the name of the owner or operator of the
 55-6    reporting facility;
 55-7                      (B)  the location of the reporting facility;
 55-8                      (C)  the date and time the emissions began;
 55-9                      (D)  the duration of the emissions;
55-10                      (E)  the nature and measured or estimated
55-11    quantity of air contaminants emitted, including the method of
55-12    calculation of, or other basis for determining, the quantity of air
55-13    contaminants emitted;
55-14                      (F)  the processes and equipment involved in the
55-15    emissions event;
55-16                      (G)  the cause of the emissions; and
55-17                      (H)  any additional information necessary to
55-18    evaluate the emissions event.
55-19          (c)  The owner or operator of a boiler or combustion turbine
55-20    fueled by natural gas, coal, lignite, wood, or fuel oil containing
55-21    hazardous air pollutants at concentrations of less than 0.02
55-22    percent by weight that is equipped with a continuous emission
55-23    monitoring system that completes a minimum of one cycle per
55-24    operation (sampling, analyzing, and data recording) for each
55-25    successive 15-minute interval who is required to submit excess
55-26    emission reports by other state or federal regulations, shall, by
55-27    commission rule, be allowed to submit information from that
 56-1    monitoring system to meet the requirements under Subsection (b)(3)
 56-2    so long as the notice submitted under Subsection (b)(2) contains
 56-3    the information required under Subsection (b)(3).  Such excess
 56-4    emission reports shall satisfy the recordkeeping requirements of
 56-5    Subsection (b)(1) so long as the information in such reports meets
 56-6    commission requirements. This subsection does not require the
 56-7    commission to revise the reportable quantity for boilers and
 56-8    combustion turbines.
 56-9          (d)  The commission shall centrally track emissions events
56-10    and collect information relating to:
56-11                (1)  inspections or enforcement actions taken by the
56-12    commission in response to emissions events; and
56-13                (2)  the number of emissions events occurring in each
56-14    commission region and the quantity of emissions from each emissions
56-15    event.
56-16          (e)  The commission shall develop the capacity for electronic
56-17    reporting and shall incorporate reported emissions events into a
56-18    permanent centralized database for emissions events. The commission
56-19    shall develop a mechanism whereby the reporting entity shall be
56-20    allowed to review the information relative to its reported
56-21    emissions events prior to such information being included in the
56-22    database. The database shall be accessible to the public.  The
56-23    commission shall evaluate information in the database to identify
56-24    persons who repeatedly fail to report reportable emissions events.
56-25    The commission shall enforce against such persons pursuant to
56-26    Section 382.0216(i).  The commission shall describe such
56-27    enforcement actions in the report required in Subsection (g).
 57-1          (f)  An owner or operator of a facility required by Section
 57-2    382.014 to submit an annual emissions inventory report and which
 57-3    has experienced no emissions events during the relevant year must
 57-4    include as part of the inventory a statement that the facility
 57-5    experienced no emissions events during the prior year. An owner or
 57-6    operator of a facility required by Section 382.014 to submit an
 57-7    annual emissions inventory report must include the total annual
 57-8    emissions from all emissions events in categories as established by
 57-9    commission rule.
57-10          (g)  The commission annually shall assess the information
57-11    received under this section, including actions taken by the
57-12    commission in response to the emissions events, and shall include
57-13    the assessment in the report required by Section 5.123, Water Code,
57-14    as added by Chapters 304 and 1082, Acts of the 75th Legislature,
57-15    Regular Session, 1997.
57-16          Sec. 382.0216.  REGULATION OF EMISSIONS EVENTS. (a)  In this
57-17    section, "emissions event" has the meaning assigned by Section
57-18    382.0215.
57-19          (b)  The commission shall establish criteria for determining
57-20    when emissions events are excessive. The criteria must include
57-21    consideration of:
57-22                (1)  the frequency of the facility's emissions events;
57-23                (2)  the cause of the emissions event;
57-24                (3)  the quantity and impact on human health or the
57-25    environment of the emissions event;
57-26                (4)  the duration of the emissions event;
57-27                (5)  the percentage of a facility's total annual
 58-1    operating hours during which emissions events occur; and
 58-2                (6)  the need for startup, shutdown, and maintenance
 58-3    activities.
 58-4          (c)  The commission shall require a facility to take action
 58-5    to reduce emissions from excessive emissions events.  Consistent
 58-6    with commission rules, a facility required to take action under
 58-7    this subsection must either file a corrective action plan or file a
 58-8    letter of intent to obtain authorization for emissions from the
 58-9    excessive emissions events, provided that the emissions are
58-10    sufficiently frequent, quantifiable, and predictable.  If the
58-11    intended authorization is a permit, a permit application shall be
58-12    filed within 120 days of the filing of the letter of intent.  If
58-13    the intended authorization is a permit by rule or standard
58-14    exemption, the authorization must be obtained within 120 days of
58-15    the filing of the letter of intent.  If the commission denies the
58-16    requested authorization, within 45 days of receiving notice of the
58-17    commission's denial, the facility shall file a corrective action
58-18    plan to reduce emissions from the excessive emissions events.
58-19          (d)  A corrective action plan filed under Subsection (c) must
58-20    identify the cause or causes of each emissions event, specify the
58-21    control devices or other measures that are reasonably designed to
58-22    prevent or minimize similar emissions events in the future, and
58-23    specify a time within which the corrective action plan will be
58-24    implemented. A corrective action plan must be approved by the
58-25    commission.  A corrective action plan shall be deemed approved 45
58-26    days after filing, if the commission has not disapproved the plan;
58-27    however, an owner or operator may request affirmative commission
 59-1    approval, in which case the commission must take final written
 59-2    action to approve or disapprove the plan within 120 days.  An
 59-3    approved corrective action plan shall be made available to the
 59-4    public by the commission, except to the extent information in the
 59-5    plan is confidential information protected under Chapter 552,
 59-6    Government Code.  The commission shall establish reasonable
 59-7    schedules for the implementation of corrective action plans and
 59-8    procedures for revision of a corrective action plan if the
 59-9    commission finds the plan, after implementation begins, to be
59-10    inadequate to meet the goal of preventing or minimizing emissions
59-11    and emissions events.  The implementation schedule shall be
59-12    enforceable by the commission.
59-13          (e)  The rules may not exclude from the requirement to submit
59-14    a corrective action plan emissions events resulting from the lack
59-15    of preventive maintenance or from operator error, or emissions that
59-16    are a part of a recurring pattern of emissions events indicative of
59-17    inadequate design or operation.
59-18          (f)  The commission by rule may establish an affirmative
59-19    defense to a commission enforcement action if the emissions event
59-20    meets criteria defined by commission rule. In establishing rules
59-21    under this subsection, the commission at a minimum must require
59-22    consideration of the factors listed in Subsections (b)(1)-(6).
59-23          (g)  The burden of proof in any claim of a defense to
59-24    commission enforcement action for an emissions event is on the
59-25    person claiming the defense.
59-26          (h)  A person may not claim an affirmative defense to a
59-27    commission enforcement action if the person failed to take
 60-1    corrective action under a corrective action plan approved by the
 60-2    commission within the time prescribed by the commission and an
 60-3    emissions event recurs because of that failure.
 60-4          (i)  In the event the owner or operator of a facility fails
 60-5    to report an emissions event, the commission shall initiate
 60-6    enforcement for such failure to report and for the underlying
 60-7    emissions event itself.   This subsection does not apply where an
 60-8    owner or operator reports an emissions event and the report was
 60-9    incomplete, inaccurate, or untimely unless the owner or operator
60-10    knowingly or intentionally falsified the information in the report.
60-11          (j)  The commission shall account for and consider chronic
60-12    excessive emissions events and emissions events for which the
60-13    commission has initiated enforcement in the manner set forth by the
60-14    commission in its review of an entity's compliance history.
60-15          (b)  The Texas Natural Resource Conservation Commission shall
60-16    implement all technical and equipment changes necessary for
60-17    compliance with Sections 382.0215(d) and (e), Health and Safety
60-18    Code, as added by this Act, not later than January 1, 2003.   After
60-19    implementation of the necessary technical and equipment changes,
60-20    the Texas Natural Resource Conservation Commission by rule shall
60-21    require reporting of reportable emissions events to the centralized
60-22    database, and may exempt businesses considered so small that
60-23    electronic reporting is impracticable.
60-24          SECTION 5.02. Sections 382.051(a) and (b), Health and Safety
60-25    Code, are amended to read as follows:
60-26          (a)  The commission may issue a permit:
60-27                (1)  to construct a new facility or modify an existing
 61-1    facility that may emit air contaminants;
 61-2                (2)  to operate an existing facility affected by
 61-3    Section 382.0518(g) [under a voluntary emissions reduction permit];
 61-4    or
 61-5                (3)  to operate a federal source.
 61-6          (b)  To assist in fulfilling its authorization provided by
 61-7    Subsection (a), the commission may issue:
 61-8                (1)  special permits for certain facilities;
 61-9                (2)  a general permit for numerous similar sources
61-10    subject to Section 382.054;
61-11                (3)  a standard permit for similar facilities;
61-12                (4)  a permit by rule for types of facilities that will
61-13    not significantly contribute air contaminants to the atmosphere;
61-14                (5)  a single federal operating permit or
61-15    preconstruction permit for multiple federal sources or facilities
61-16    located at the same site;
61-17                (6)  a multiple plant permit for existing facilities at
61-18    multiple locations subject to Section 382.0518 or 382.0519; [or]
61-19                (7)  an existing facility permit or existing facility
61-20    flexible permit under Section 382.05183;
61-21                (8)  a small business stationary source permit under
61-22    Section 382.05184;
61-23                (9)  an electric generating facility permit under
61-24    Section 382.05185 of this code and Section 39.264, Utilities Code;
61-25                (10)  a pipeline facilities permit under Section
61-26    382.05186; or
61-27                (11)  other permits as necessary.
 62-1          SECTION 5.03. Subchapter C, Chapter 382, Health and Safety
 62-2    Code, is amended by adding Sections 382.05181-382.05186 to read as
 62-3    follows:
 62-4          Sec. 382.05181.  PERMIT REQUIRED. (a)  Any facility affected
 62-5    by Section 382.0518(g) that does not have an application pending
 62-6    for a permit under this chapter, other than a permit required under
 62-7    Section 382.054, and that has not submitted a notice of shutdown
 62-8    under Section 382.05182, may not emit air contaminants on or after:
 62-9                (1)  September 1, 2003, if the facility is located in
62-10    the East Texas region; or
62-11                (2)  September 1, 2004, if the facility is located in
62-12    the West Texas region.
62-13          (b)  Any facility affected by Section 382.0518(g) that has
62-14    obtained a permit under this chapter, other than a permit under
62-15    Section 382.054, and has not fully complied with the conditions of
62-16    the permit pertaining to the installation of emissions controls or
62-17    reductions in emissions of air contaminants, may not emit air
62-18    contaminants on or after:
62-19                (1)  March 1, 2007, if the facility is located in the
62-20    East Texas region; or
62-21                (2)  March 1, 2008, if the facility is located in the
62-22    West Texas region.
62-23          (c)  The East Texas region:
62-24                (1)  contains all counties traversed by or east of
62-25    Interstate Highway 35 north of San Antonio or traversed by or east
62-26    of Interstate Highway 37 south of San Antonio; and
62-27                (2)  includes Bexar, Bosque, Coryell, Hood, Parker,
 63-1    Somervell, and Wise counties.
 63-2          (d)  The West Texas region includes all counties not
 63-3    contained in the East Texas region.
 63-4          (e)  The commission promptly shall review each application
 63-5    for a permit under this chapter for a facility affected by Section
 63-6    382.0518(g).  If the commission finds that necessary information is
 63-7    omitted from the application, that the application contains
 63-8    incorrect information, or that more information is necessary to
 63-9    complete the processing of the application, the commission shall
63-10    issue a notice of deficiency and order the information to be
63-11    provided not later than the 60th day after the date the notice is
63-12    issued.  If the information is not provided to the commission on or
63-13    before that date, the commission shall dismiss the application.
63-14          (f)  The commission shall take final action on an application
63-15    for a permit under this chapter for a facility affected by Section
63-16    382.0518(g) before the first anniversary of the date on which the
63-17    commission receives an administratively complete application.
63-18          (g)  An owner or operator of a facility affected by Section
63-19    382.0518(g) that does not obtain a permit within the 12-month
63-20    period may petition the commission for an extension of the time
63-21    period for compliance specified by Subsection (b).  The commission
63-22    may grant not more than one extension for a facility, for an
63-23    additional period not to exceed 12 months, if the commission finds
63-24    good cause for the extension.
63-25          (h)  A permit application under this chapter for a facility
63-26    affected by Section 382.0518(g) is subject to the notice and
63-27    hearing requirements as provided by Section 382.05191.
 64-1          (i)  This section does not apply to a facility eligible for a
 64-2    permit under Section 382.05184.
 64-3          Sec. 382.05182.  NOTICE OF SHUTDOWN. (a)  Any notice
 64-4    submitted in compliance with this section must be filed with the
 64-5    commission by the dates in Section 382.05181(a).
 64-6          (b)  A notice under this section shall include:
 64-7                (1)  the date the facility intends to cease operating;
 64-8                (2)  an inventory of the type and amount of emissions
 64-9    that will be eliminated when the facility ceases to operate; and
64-10                (3)  any other necessary and relevant information the
64-11    commission by rule deems appropriate.
64-12          Sec. 382.05183.  EXISTING FACILITY PERMIT. (a)  The owner or
64-13    operator of a facility affected by Section 382.0518(g) may apply
64-14    for a permit to operate the facility under this section.
64-15          (b)  The commission shall grant a permit under this section
64-16    if, from the information available to the commission, the
64-17    commission finds that the facility will use a control method at
64-18    least as beneficial as that described by Section 382.003(9)(E)(ii),
64-19    considering the age and the remaining useful life of the facility.
64-20          (c)  The commission may issue an existing facility flexible
64-21    permit for some or all of the facilities at a site affected by
64-22    Section 382.0518(g) and facilities permitted under Section 382.0519
64-23    in order to implement the requirements of this section.  Permits
64-24    issued under this subsection shall follow the same permit issuance,
64-25    modification, and renewal procedures as existing facility permits.
64-26          (d)  If the commission finds that the emissions from the
64-27    facility will contravene the standards under Subsection (b) or the
 65-1    intent of this chapter, including protection of the public's health
 65-2    and physical property, the commission may not grant the permit
 65-3    under this section.
 65-4          (e)  A person planning the modification of a facility
 65-5    previously permitted under this section must comply with Section
 65-6    382.0518 before modifying.
 65-7          (f)  The commission may adopt rules as necessary to implement
 65-8    and administer this section.
 65-9          Sec. 382.05184.  SMALL BUSINESS STATIONARY SOURCE PERMIT. (a)
65-10    Facilities affected by Section 382.0518(g) that are located at a
65-11    small business stationary source, as defined by Section
65-12    382.0365(h), and are not required by commission rule to report to
65-13    the commission under Section 382.014 may apply for a permit under
65-14    this section before September 1, 2004.
65-15          (b)  Facilities affected by Section 382.0518(g) that are
65-16    located at a small business stationary source that does not have an
65-17    application pending for a permit under this chapter, other than a
65-18    permit required under Section 382.054, and that has not submitted a
65-19    notice of shutdown under Section 382.05182, may not emit air
65-20    contaminants on or after March 1, 2008.
65-21          (c)  The commission shall grant a permit under this section
65-22    if, from the information available to the commission, the
65-23    commission finds that there is no indication that the emissions
65-24    from the facility will contravene the intent of this chapter,
65-25    including protection of the public's health and physical property.
65-26          (d)  If the commission finds that the emissions from the
65-27    facility will not comply with Subsection (c), the commission may
 66-1    not grant the permit under this section.
 66-2          (e)  A person planning the modification of a facility
 66-3    previously permitted under this section must comply with Section
 66-4    382.0518 before modifying.
 66-5          (f)  A permit application under this section is not subject
 66-6    to notice and hearing requirements and is not subject to Chapter
 66-7    2001, Government Code.
 66-8          (g)  The commission may adopt rules as necessary to implement
 66-9    and administer this section.
66-10          Sec.  382.05185.  ELECTRIC GENERATING FACILITY PERMIT. (a)
66-11    An electric generating facility is considered permitted under this
66-12    section with respect to all air contaminants if the facility is:
66-13                (1)  a natural-gas-fired electric generating facility
66-14    that has applied for or obtained a permit under Section 39.264,
66-15    Utilities Code; or
66-16                (2)  an electric generating facility exempted from
66-17    permitting under Section 39.264(d), Utilities Code.
66-18          (b)  A coal-fired electric generating facility that is
66-19    required to obtain a permit under Section 39.264, Utilities Code:
66-20                (1)  shall be considered permitted under this section
66-21    with respect to nitrogen oxides, sulphur dioxide, and, as provided
66-22    by commission rules, for opacity if the facility has applied for or
66-23    obtained a permit under Section 39.264, Utilities Code; and
66-24                (2)  is not considered permitted for criteria
66-25    pollutants not described by Subsection (b)(1).
66-26          (c)  The commission shall issue a permit for a facility
66-27    subject to Subsection (b) for criteria pollutants not covered by
 67-1    Subsection (b)(1) if the commission finds that the emissions from
 67-2    the facility will not contravene the intent of this chapter,
 67-3    including protection of the public's health and physical property.
 67-4    Upon request by the applicant, the commission shall include a
 67-5    permit application under this subsection with the applicant's
 67-6    pending permit application under Section 39.264, Utilities Code.
 67-7          (d)  The owner or operator of an electric generating facility
 67-8    with a permit or an application pending under Section 39.264,
 67-9    Utilities Code, may apply for a permit under this section before
67-10    September 1, 2002, for a facility located at the same site if the
67-11    facility not permitted or without a pending application under
67-12    Section 39.264, Utilities Code, is:
67-13                (1)  a generator that does not generate electric energy
67-14    for compensation and is used not more than 10 percent of the normal
67-15    annual operating schedule; or
67-16                (2)  an auxiliary fossil-fuel-fired combustion facility
67-17    that does not generate electric energy and does not emit more than
67-18    100 tons of any air contaminant annually.
67-19          (e)  Emissions from facilities permitted under Subsection (d)
67-20    shall be included in the emission allowance trading program
67-21    established under Section 39.264, Utilities Code.  The commission
67-22    may not issue new allowances based on a permit issued under this
67-23    section.
67-24          (f)  A person planning the modification of a facility
67-25    previously permitted under this section must comply with Section
67-26    382.0518 before modifying.
67-27          (g)  The commission may adopt rules as necessary to implement
 68-1    and administer this section.
 68-2          (h)  A permit application under this section is subject to
 68-3    notice and hearing requirements as provided by Section 382.05191.
 68-4          (i)  For the purposes of this section, a natural-gas-fired
 68-5    electric generating facility includes a facility that was designed
 68-6    to burn either natural gas or fuel oil of a grade approved by
 68-7    commission rule.  The commission shall adopt rules regarding
 68-8    acceptable fuel oil grades.
 68-9          Sec. 382.05186.  PIPELINE FACILITIES PERMITS. (a)  This
68-10    section applies only to reciprocating internal combustion engines
68-11    that are part of processing, treating, compression, or pumping
68-12    facilities affected by Section 382.0518(g) connected to or part of
68-13    a gathering or transmission pipeline. Pipeline facilities affected
68-14    by Section 382.0518(g) other than reciprocating internal combustion
68-15    engines may apply for an existing facility permit or other
68-16    applicable permit under this chapter other than a pipeline
68-17    facilities permit.
68-18          (b)  The commission by rule shall:
68-19                (1)  provide for the issuance of a single permit for
68-20    all reciprocating internal combustion facilities connected to or
68-21    part of a gathering or transmission pipeline;
68-22                (2)  provide for a means for mandatory emissions
68-23    reductions for facilities permitted under this section to be
68-24    achieved:
68-25                      (A)  at one source; or
68-26                      (B)  by averaging reductions among more than one
68-27    reciprocating internal combustion facility connected to or part of
 69-1    a gathering or transmission pipeline; and
 69-2                (3)  allow an owner or operator to apply for separate
 69-3    permits under this section for discrete and separate reciprocating
 69-4    internal combustion facilities connected to or part of a gathering
 69-5    or transmission pipeline.
 69-6          (c)  If the mandatory emissions reductions under this section
 69-7    are to be achieved by averaging reductions among more than one
 69-8    source connected to or part of a gathering or transmission
 69-9    pipeline, the average may not include emissions reductions achieved
69-10    in order to comply with other state or federal law.
69-11          (d)  If the mandatory emissions reductions under this section
69-12    are to be achieved at one source, the reduction may include
69-13    emissions reductions achieved since January 1, 2001, in order to
69-14    comply with other state or federal law.
69-15          (e)  The commission shall grant a permit under this section
69-16    for a facility or facilities located in the East Texas region  if,
69-17    from  information available to the commission, the commission finds
69-18    that the conditions of the permit will require a 50 percent
69-19    reduction of the hourly emissions rate of nitrogen oxides,
69-20    expressed in terms of grams per brake horsepower-hour. The
69-21    commission may also require a 50 percent reduction of the hourly
69-22    emissions rate of volatile organic compounds, expressed in terms of
69-23    grams per brake horsepower-hour.
69-24          (f)  The commission shall grant a permit under this section
69-25    for facilities located in the West Texas region if, from
69-26    information available to the commission, the commission finds that
69-27    the conditions of the permit will require up to a 20 percent
 70-1    reduction of the hourly emissions rate of nitrogen oxides,
 70-2    expressed in terms of grams per brake horsepower-hour.  The
 70-3    commission may also require up to a 20 percent reduction of the
 70-4    hourly emissions rate of volatile organic compounds, expressed in
 70-5    terms of grams per brake horsepower-hour.
 70-6          (g)  A permit application under this section is subject to
 70-7    notice and hearing requirements as provided by Section 382.05191.
 70-8          (h)  A person planning the modification of a facility
 70-9    previously permitted under this section must comply with Section
70-10    382.0518 before modifying.
70-11          (i)  The commission may adopt rules as necessary to implement
70-12    and administer this section.
70-13          SECTION 5.04. Section 382.05191, Health and Safety Code, is
70-14    amended to read as follows:
70-15          Sec. 382.05191.  [VOLUNTARY] EMISSIONS REDUCTION PERMITS
70-16    [PERMIT]:  NOTICE AND HEARING. (a)  An applicant for a permit under
70-17    Section 382.05183, 382.05185(c) or (d), 382.05186, or 382.0519
70-18    shall publish notice of intent to obtain the permit in accordance
70-19    with Section 382.056.
70-20          (b)  The commission may authorize an applicant for a permit
70-21    for a facility that constitutes or is part of a small business
70-22    stationary source as defined in Section 382.0365(h)
70-23    [382.0365(g)(2)] to provide notice using an alternative means if
70-24    the commission finds that the proposed method will result in equal
70-25    or better communication with the public, considering the
70-26    effectiveness of the notice in reaching potentially affected
70-27    persons, cost, and consistency with federal requirements.
 71-1          (c)  The commission shall provide an opportunity for a public
 71-2    hearing and the submission of public comment and send notice of a
 71-3    decision on an application for a permit under Section 382.05183,
 71-4    382.05185(c) or (d), 382.05186, or 382.0519 in the same manner as
 71-5    provided by Sections 382.0561 and 382.0562.
 71-6          (d)  A person affected by a decision of the commission to
 71-7    issue or deny a [voluntary emissions reduction] permit under
 71-8    Section 382.05183, 382.05185(c) or (d), or 382.05186 may move for
 71-9    rehearing and is entitled to judicial review under Section 382.032.
71-10          SECTION 5.05. Section 382.05192, Health and Safety Code, is
71-11    amended to read as follows:
71-12          Sec. 382.05192.  REVIEW AND RENEWAL OF [VOLUNTARY] EMISSIONS
71-13    REDUCTION AND MULTIPLE PLANT PERMITS. Review and renewal of a
71-14    permit issued under Section 382.05183, 382.05185(c) or (d),
71-15    382.05186, 382.0519, or 382.05194 shall be conducted in accordance
71-16    with Section 382.055.
71-17          SECTION 5.06.  Section 361.082, Health and Safety Code, is
71-18    amended by adding Subsection (h) to read as follows:
71-19          (h)  Nothing in this section limits the authority of the
71-20    commission, consistent with federal law, to issue an order for the
71-21    closure, post-closure care, or other remediation of hazardous waste
71-22    or hazardous waste constituents from a solid waste management unit
71-23    at a solid waste processing, storage, or disposal facility.
71-24          SECTION 5.07. Subchapter C, Chapter 382, Health and Safety
71-25    Code, is amended by adding Section 382.065 to read as follows:
71-26          Sec. 382.065.  CERTAIN LOCATIONS FOR CONCRETE CRUSHING
71-27    FACILITY PROHIBITED. (a)  The commission by rule shall prohibit the
 72-1    location of or operation of a concrete crushing facility within 440
 72-2    yards of a building used as a single or multifamily residence,
 72-3    school, or place of worship.
 72-4          (b)  This section does not apply to an existing concrete
 72-5    crushing facility.
 72-6          SECTION 5.08.  (a)  Subchapter L, Chapter 5, Water Code, is
 72-7    amended by adding Section 5.5145 to read as follows:
 72-8          Sec. 5.5145.  EMERGENCY ORDER CONCERNING OPERATION OF ROCK
 72-9    CRUSHER OR CONCRETE PLANT WITHOUT PERMIT. The commission shall
72-10    issue an emergency order under this subchapter suspending
72-11    operations of a rock crusher or a concrete plant that performs wet
72-12    batching, dry batching, or central mixing and is required to obtain
72-13    a permit under Section 382.0518, Health and Safety Code, and is
72-14    operating without the necessary permit.
72-15          (b)  Section 7.052, Water Code, is amended by adding a new
72-16    Subsection (b), relettering existing Subsection (b) as Subsection
72-17    (c), and amending and relettering existing Subsection (c) as
72-18    Subsection (d) to read as follows:
72-19          (b)  The amount of the penalty for operating a rock crusher
72-20    or a concrete plant that performs wet batching, dry batching, or
72-21    central mixing, that is required to obtain a permit under Section
72-22    382.0518, Health and Safety Code, and that is operating without the
72-23    required permit is $10,000.  Each day that a continuing violation
72-24    occurs is a separate violation.
72-25          (c)  The amount of the penalty for all other violations
72-26    within the jurisdiction of the commission to enforce may not exceed
72-27    $10,000 a day for each violation.
 73-1          (d)  Except as provided by Subsection (b), each [(c)  Each]
 73-2    day that a continuing violation occurs may be considered a separate
 73-3    violation.  The commission may authorize an installment payment
 73-4    schedule for an administrative penalty assessed under this
 73-5    subchapter, except for an administrative penalty assessed under
 73-6    Section 7.057 or assessed after a hearing under Section 7.058.
 73-7          (c)  The changes in law made by Section 5.5145, Water Code,
 73-8    as added by this Act, and Section 7.052, Water Code, as amended by
 73-9    this Act, apply only to a violation that occurs on or after the
73-10    effective date of this Act.  A violation that occurs before that
73-11    date is governed by the law in effect at the time the violation
73-12    occurred, and the former law is continued in effect for that
73-13    purpose.
73-14      ARTICLE 6.  ACCREDITATION OF ENVIRONMENTAL TESTING LABORATORIES
73-15          SECTION 6.01. Chapter 421, Health and Safety Code, as added
73-16    by Chapter 447, Acts of the 76th Legislature, Regular Session,
73-17    1999, is transferred to Chapter 5, Water Code, redesignated as
73-18    Subchapter R, and amended to read as follows:
73-19               SUBCHAPTER R [CHAPTER 421].  ACCREDITATION OF
73-20                    ENVIRONMENTAL TESTING LABORATORIES
73-21          Sec. 5.801 [421.001].  DEFINITION [DEFINITIONS]. In this
73-22    subchapter, "environmental [chapter:]
73-23                [(1)  "Board" means the Texas Board of Health.]
73-24                [(2)  "Department" means the Texas Department of
73-25    Health.]
73-26                [(3)  "Environmental] testing laboratory" means a
73-27    scientific laboratory that[:]
 74-1                      [(A)]  performs analyses to determine the
 74-2    chemical, molecular, or pathogenic components of environmental
 74-3    media [drinking water, wastewater, hazardous wastes, soil, or air]
 74-4    for regulatory compliance purposes[; and]
 74-5                      [(B)  is either a commercial laboratory or an
 74-6    environmental laboratory that is required to be accredited under
 74-7    federal law].
 74-8          Sec. 5.802 [421.002].  ADMINISTRATION BY COMMISSION
 74-9    [DEPARTMENT]. The commission [department] shall adopt rules for the
74-10    administration of [administer] the voluntary environmental testing
74-11    laboratory accreditation program established by this chapter.  The
74-12    program must be consistent with national accreditation standards
74-13    approved by the National Environmental Laboratory Accreditation
74-14    Program.
74-15          Sec. 5.803 [421.003].  APPLICATION; FEE. (a)  To be
74-16    accredited under the accreditation program adopted under this
74-17    subchapter [chapter], an environmental testing laboratory must
74-18    submit an application to the commission [department] on a form
74-19    prescribed by the commission [department], accompanied by the
74-20    accreditation fee. The application must contain the information
74-21    that the commission [department] requires.
74-22          (b)  The commission by rule  [board] shall establish a
74-23    schedule of reasonable [an] accreditation fees designed to recover
74-24    the costs of the accreditation program, including the costs
74-25    associated with:
74-26                (1)  application review;
74-27                (2)  initial, routine, and follow-up inspections by the
 75-1    commission; and
 75-2                (3)  preparation of reports [fee in an amount
 75-3    sufficient to defray the cost of administering this chapter].
 75-4          Sec. 5.804 [421.004].  ISSUANCE OF ACCREDITATION;
 75-5    RECIPROCITY. (a)  The commission [department] may accredit an
 75-6    environmental testing laboratory that complies with the commission
 75-7    requirements established under this subchapter [chapter].
 75-8          (b)  The commission [board] by rule may provide for the
 75-9    accreditation of an environmental testing laboratory that is
75-10    accredited or licensed in [by] another state by an authority that
75-11    is approved by the National Environmental Laboratory Accreditation
75-12    Program.
75-13          Sec. 5.805 [421.005].  RULES; MINIMUM STANDARDS. The
75-14    commission [board] shall adopt rules to implement this subchapter
75-15    [chapter] and minimum performance and quality assurance standards
75-16    for accreditation of an environmental testing laboratory.
75-17          Sec. 5.806 [421.006].  DISCIPLINE. After notice and an
75-18    opportunity for hearing, the commission [department] may suspend or
75-19    revoke the accreditation of an environmental testing laboratory
75-20    that does not comply with the minimum performance and quality
75-21    assurance standards established under this subchapter [chapter].
75-22          Sec. 5.807.  ENVIRONMENTAL TESTING LABORATORY ACCREDITATION
75-23    ACCOUNT. All fees collected under this subchapter shall be
75-24    deposited to the credit of the environmental testing laboratory
75-25    accreditation account and may be appropriated to the commission
75-26    only for paying the costs of the accreditation program.
75-27         ARTICLE 7.  CERTIFICATION OF WATER TREATMENT SPECIALISTS
 76-1          SECTION 7.01. Section 3A, The Plumbing License Law (Article
 76-2    6243-101, Vernon's Texas Civil Statutes), is transferred to Chapter
 76-3    341, Health and Safety Code, redesignated as Subchapter G, Chapter
 76-4    341, and amended to read as follows:
 76-5        SUBCHAPTER G.  CERTIFICATION OF WATER TREATMENT SPECIALISTS
 76-6          Sec. 341.101 [Sec. 3A.  CERTIFICATION RELATING TO RESIDENTIAL
 76-7    WATER TREATMENT FACILITIES].  DEFINITIONS. In this subchapter:
 76-8                (1)  "Commission" means the Texas Natural Resource
 76-9    Conservation Commission.
76-10                (2)  "Installation of water treatment appliances"
76-11    includes connecting the appliances to all necessary utility
76-12    connections in residential, commercial, or industrial facilities.
76-13                (3)  "Water treatment" means a business conducted under
76-14    contract that requires experience in the analysis of water,
76-15    including the ability to determine how to treat influent and
76-16    effluent water, to alter or purify water, and to add or remove a
76-17    mineral, chemical, or bacterial content or substance.  The term
76-18    also includes the installation and service of potable water
76-19    treatment equipment in public or private water systems and making
76-20    connections necessary to complete installation of a water treatment
76-21    system.
76-22                (4)  "Water treatment equipment" includes appliances
76-23    used to alter or purify water or to alter a mineral, chemical, or
76-24    bacterial content or substance.
76-25          Sec. 341.102.  WATER TREATMENT SPECIALIST CERTIFICATION
76-26    PROGRAM. (a)  The commission by rule [Commissioner of Health or his
76-27    designee] shall establish a program to certify persons [as being]
 77-1    qualified to install, exchange, service [for the installation,
 77-2    exchange, servicing], and repair [of] residential, commercial, or
 77-3    industrial water treatment equipment and appliances [facilities as
 77-4    defined by Subsection (g) of Section 2 of this Act].
 77-5          (b)  The rules must establish:
 77-6                (1)  [Texas Board of Health shall set] standards for
 77-7    certification to ensure the public health and to protect the public
 77-8    from unqualified persons engaging in activities relating to water
 77-9    treatment;
77-10                (2)  classes of certification;
77-11                (3)  duration of certification; and
77-12                (4)  reasonable annual certification fees in an amount
77-13    sufficient to pay the administrative costs of the certification
77-14    program, but not to exceed $150 a year for any class of
77-15    certification.
77-16          Sec. 341.103.  CERTIFICATION REQUIRED. A person may not
77-17    engage in water treatment unless the person first obtains a
77-18    certificate from the commission under the program established under
77-19    this subchapter.
77-20          Sec. 341.104.  APPLICATION FOR CERTIFICATION. A person
77-21    desiring to obtain certification under the program established
77-22    under this subchapter shall file with the commission:
77-23                (1)  an application in the form prescribed by the
77-24    commission and containing the information required by the
77-25    commission; and
77-26                (2)  the appropriate certification fee.
77-27          Sec. 341.105.  ISSUANCE OF CERTIFICATE. (a)  [Nothing in this
 78-1    section shall be construed to require that persons licensed
 78-2    pursuant to this Act are subject to certification under this
 78-3    section.]
 78-4          [(b)  Before a certificate is issued or renewed under this
 78-5    section, an applicant or holder of a certificate shall be required
 78-6    to pay a fee of $10 a year.]  On receipt of an application that
 78-7    meets commission requirements and the required fee, the commission
 78-8    [Texas Department of Health] shall issue to a [qualified] person
 78-9    who meets commission standards for certification a certificate
78-10    stating that the person is qualified to install, exchange, service
78-11    [for the installation, exchange, servicing], and repair [of]
78-12    residential, commercial, or industrial water treatment facilities.
78-13          (b)  [The Texas Board of Health shall adopt rules
78-14    establishing classes of certificates, duration of certificates, and
78-15    fees.]
78-16          [(c)]  All fees received by the commission [Texas Department
78-17    of Health] under this section shall be deposited in the State
78-18    Treasury to the credit of the General Revenue Fund.
78-19          (c)  A person who holds a license under The Plumbing License
78-20    Law (Article 6243-101, Vernon's Texas Civil Statutes) is exempt
78-21    from the requirements of this subchapter.
78-22          (d)  This subchapter does not apply to an employee of an
78-23    industrial facility installing or servicing water treatment
78-24    equipment.
78-25            ARTICLE 8.  REGISTRATION OF IRRIGATORS AND ON-SITE
78-26                     SEWAGE DISPOSAL SYSTEM INSTALLERS
78-27          SECTION 8.01. Section 34.008(a), Water Code, is amended to
 79-1    read as follows:
 79-2          (a)  The commission may waive any prerequisite [certify] for
 79-3    obtaining registration for [without examination] an applicant who
 79-4    is registered as a licensed irrigator or licensed installer by [in]
 79-5    another jurisdiction with which this state has a reciprocity
 79-6    agreement.  The commission may make an agreement, subject to the
 79-7    approval of the governor, with another state to allow for
 79-8    registration by reciprocity [state or country that has requirements
 79-9    for registration that are at least substantially equivalent to the
79-10    requirements of this state and that extends the same privilege of
79-11    reciprocity to licensed irrigators or licensed installers
79-12    registered in this state].
79-13          SECTION 8.02. Section 34.009(f), Water Code, is amended to
79-14    read as follows:
79-15          (f)  The commission by rule may adopt a system under which
79-16    certificates of registration expire on various dates during the
79-17    year.  For the year in which the expiration date is changed, the
79-18    commission shall prorate registration [renewal] fees [payable on
79-19    August 31 shall be prorated] on a monthly basis so that each
79-20    registrant pays [will pay] only that portion of the registration
79-21    fee that is allocable to the number of months during which the
79-22    registration is valid.  On renewal of the registration on the new
79-23    expiration date, the total registration renewal fee is due.
79-24          SECTION 8.03. Section 366.076, Health and Safety Code, is
79-25    amended to read as follows:
79-26          Sec. 366.076.  REGISTRATION RENEWAL. The commission by rule
79-27    may adopt a system under which registrations expire on various
 80-1    dates during the year.  For each year in which the registration
 80-2    expiration date is changed, the commission shall prorate
 80-3    registration fees on a monthly basis so that each registrant pays
 80-4    only that portion of the registration fee that is allocable to the
 80-5    number of months during which the registration is valid.  On
 80-6    renewal of the registration on the new expiration date, the total
 80-7    registration renewal fee is payable [provide for periodic renewal
 80-8    of registrations].
 80-9                   ARTICLE 9.  REGULATION OF SOLID WASTE
80-10          SECTION 9.01.  Subchapter C, Chapter 361, Health and Safety
80-11    Code, is amended by adding Section 361.1125 to read as follows:
80-12          Sec. 361.1125.  IMMEDIATE REMEDIATION OR REMOVAL OF HAZARDOUS
80-13    SUBSTANCE AT SCRAP TIRE SITE. (a)  In this section:
80-14                (1)  "Scrap tire" has the meaning assigned by Section
80-15    361.112.
80-16                (2)  "Scrap tire site" includes any site at which more
80-17    than 500 scrap tires are located.
80-18          (b)  If the executive director after investigation finds that
80-19    there exists a release or threat of release of a hazardous
80-20    substance at a scrap tire site and immediate action is appropriate
80-21    to protect human health and the environment, the commission may,
80-22    with money available from money appropriated to the commission,
80-23    undertake immediate remedial or removal action at the scrap tire
80-24    site to achieve the necessary protection.
80-25          (c)  The reasonable expenses of immediate remedial or removal
80-26    action by the commission under this section are recoverable from
80-27    the persons described in Section 361.271, and the state may bring
 81-1    an action to recover the commission's reasonable expenses.
 81-2          SECTION 9.02. Section 361.114, Health and Safety Code, is
 81-3    amended to read as follows:
 81-4          Sec. 361.114.  PROHIBITION OF [GRANT OF PERMIT FOR] DISPOSAL
 81-5    OF HAZARDOUS WASTE INTO CERTAIN GEOLOGICAL FORMATIONS [SALT DOMES].
 81-6    [(a)]  The commission by rule shall prohibit the storage,
 81-7    processing, or disposal of [may not issue a permit for a] hazardous
 81-8    waste [injection well] in a solution-mined salt dome cavern or a
 81-9    sulphur mine [unless the United States Environmental Protection
81-10    Agency and the commission determine that sufficient rules are in
81-11    place to regulate that activity].
81-12          [(b)  Before issuing a permit for a hazardous waste injection
81-13    well in a solution-mined salt dome cavern, the commission by order
81-14    must find that there is an urgent public necessity for the
81-15    hazardous waste injection well.  The commission, in determining
81-16    whether an urgent public necessity exists for the permitting of the
81-17    hazardous waste injection well in a solution-mined salt dome
81-18    cavern, must find that:]
81-19                [(1)  the injection well will be designed, constructed,
81-20    and operated in a manner that provides at least the same degree of
81-21    safety as required of other currently operating hazardous waste
81-22    disposal technologies;]
81-23                [(2)  consistent with the need and desire to manage
81-24    within the state hazardous wastes generated in the state, there is
81-25    a substantial or obvious public need for additional hazardous waste
81-26    disposal capacity and the hazardous waste injection well will
81-27    contribute additional capacity toward servicing that need;]
 82-1                [(3)  the injection well will be constructed and
 82-2    operated in a manner so as to safeguard public health and welfare
 82-3    and protect physical property and the environment;]
 82-4                [(4)  the applicant has demonstrated that groundwater
 82-5    and surface waters, including public water supplies, will be
 82-6    protected from the release of hazardous waste from the salt-dome
 82-7    waste containment cavern; and]
 82-8                [(5)  any other criteria required by the commission to
 82-9    satisfy that the test of urgency has been met.]
82-10          SECTION 9.03. Subchapter C, Chapter 361, Health and Safety
82-11    Code, is amended by adding Section 361.119 to read as follows:
82-12          Sec. 361.119.  REGULATION OF CERTAIN FACILITIES AS SOLID
82-13    WASTE FACILITIES. (a)  The commission by rule shall ensure that a
82-14    solid waste processing facility is regulated as a solid waste
82-15    facility under this chapter and is not allowed to operate
82-16    unregulated as a recycling facility.
82-17          (b)  The commission shall adopt rules, including
82-18    recordkeeping and reporting requirements and limitations on the
82-19    storage of recyclable material, to ensure that:
82-20                (1)  recyclable material is reused and not abandoned or
82-21    disposed of; and
82-22                (2)  recyclable material does not create a nuisance or
82-23    threaten or impair the environment or public health and safety.
82-24          (c)  A facility that reuses or smelts recyclable materials or
82-25    metals and the operations conducted and materials handled at the
82-26    facility are not subject to regulation under rules adopted under
82-27    this section if the owner or operator of the facility demonstrates
 83-1    that:
 83-2                (1)  the primary function of the facility is to process
 83-3    materials that have a resale value greater than the cost of
 83-4    processing the materials for subsequent beneficial use; and
 83-5                (2)  all the solid waste generated from processing the
 83-6    materials is disposed of in a solid waste facility authorized under
 83-7    this chapter, with the exception of small amounts of solid waste
 83-8    that may be inadvertently and unintentionally disposed of in
 83-9    another manner.
83-10          (d)  A facility that is owned, operated, or affiliated with a
83-11    person that has a permit to dispose of municipal solid waste is not
83-12    subject to the requirements of recordkeeping and reporting adopted
83-13    under Subsection (b).
83-14          (e)  A solid waste processing facility that is owned or
83-15    operated by a local government is not subject to rules adopted
83-16    under this section.
83-17          SECTION 9.04.  Subchapter C, Chapter 361, Health and Safety
83-18    Code, is amended by adding Section 361.120 to read as follows:
83-19          Sec. 361.120.  NOTICE OF HEARING AND REQUIREMENTS FOR
83-20    REOPENING OF CLOSED OR INACTIVE LANDFILLS. (a)  This section
83-21    applies to any municipal solid waste landfill facility permitted by
83-22    the commission or any of its predecessor or successor agencies that
83-23    have either stopped accepting waste, or only accepted waste
83-24    pursuant to an emergency authorization, for a period of five years
83-25    or longer.  This section shall not apply to any solid waste
83-26    landfill facility that has received a permit but never received
83-27    waste.
 84-1          (b)  The commission or its successor agencies shall allow any
 84-2    municipal solid waste landfill facility covered by this section to
 84-3    be reopened and to accept waste again only if the permittee
 84-4    demonstrates compliance with all current state, federal, and local
 84-5    requirements, including but not limited to the requirements of
 84-6    Subtitle D of the federal Resource Conservation and Recovery Act of
 84-7    1976 (42 U.S.C. Section 6901 et seq.) and the implementing Texas
 84-8    State regulations.
 84-9          (c)  Except as provided in Subsections (d) and (e), the
84-10    reopening of any such facility shall be considered a major
84-11    amendment as such is defined by commission rules and shall subject
84-12    the permittee to all of the procedural and substantive obligations
84-13    imposed by the rules applicable to major amendments.
84-14          (d)  This section shall not apply to any municipal solid
84-15    waste landfill facility that has received an approved modification
84-16    to its permit as of the effective date of this section.
84-17          (e)  For any facility which is subject to a contract of sale
84-18    as of January 1, 2001, the scope of the public hearing is to be
84-19    limited to land use, as provided by Section 361.069.
84-20          SECTION 9.05. (a)  Subchapter C, Chapter 361, Health and
84-21    Safety Code, is amended by adding Section 361.121 to read as
84-22    follows:
84-23          Sec. 361.121.  LAND APPLICATION OF CERTAIN SLUDGE; PERMIT
84-24    REQUIRED. (a)  In this section:
84-25                (1)  "Class B sludge" is sewage sludge that meets one
84-26    of the pathogen reduction requirements of 30 T.A.C. 312.82(b).
84-27                (2)  "Land application unit" means an area where wastes
 85-1    are applied onto or incorporated into the soil surface for
 85-2    agricultural purposes or for treatment and disposal.  The term does
 85-3    not include manure spreading operations.
 85-4                (3)  "Responsible person" means the person with
 85-5    ultimate responsibility for the land application of the Class B
 85-6    sludge at a land application unit.  The responsible person is:
 85-7                      (A)  the owner of the land application unit if
 85-8    the sludge being land applied was generated outside this state; or
 85-9                      (B)  the person who is land applying the sludge
85-10    if the sludge being land applied was generated in this state.
85-11          (b)  A responsible person may not apply Class B sludge on a
85-12    land application unit unless the responsible person has obtained a
85-13    permit for that land application unit issued by the commission
85-14    under this section on or after September 1, 2003.
85-15          (c)  The notice and hearing provisions of Subchapter M,
85-16    Chapter 5, Water Code, as added by Chapter 1350, Acts of the 76th
85-17    Legislature, Regular Session, 1999, apply to an application under
85-18    this section for a permit, a permit amendment, or a permit renewal.
85-19          (d)  In each permit, the commission shall prescribe the
85-20    conditions under which it is issued, including:
85-21                (1)  the duration of the permit;
85-22                (2)  the location of the land application unit;
85-23                (3)  the maximum quantity of Class B sludge that may be
85-24    applied or disposed of under the permit;
85-25                (4)  any monitoring and reporting requirements
85-26    prescribed by the commission for the permit holder; and
85-27                (5)  a requirement that the permit holder must report
 86-1    to the commission any noncompliance by the permit holder with the
 86-2    permit conditions or applicable commission rules.
 86-3          (e)  A permit does not become a vested right in the permit
 86-4    holder.
 86-5          (f)  A permit may be issued under this section for a term set
 86-6    by the board not to exceed six years from the date of issuance.
 86-7          (g)  The commission shall charge a fee for the issuance of a
 86-8    permit under this section in an amount not less than $1,000 and not
 86-9    more than $5,000.  In determining the fee under this subsection,
86-10    the commission shall consider the amount of sludge to be applied
86-11    under the permit.
86-12          (h)  The commission by rule shall require an applicant for a
86-13    permit under this section to submit with the application, at a
86-14    minimum, information regarding:
86-15                (1)  the applicant;
86-16                (2)  the source, quality, and quantity of sludge to be
86-17    applied; and
86-18                (3)  the hydrologic characteristics of the surface
86-19    water and groundwater at and within one-quarter of a mile of the
86-20    land application unit.
86-21          (i)  The commission may expand the definition of Class B
86-22    sludge only by expanding the definition to include sludge that
86-23    meets more stringent pathogen reduction requirements.
86-24          (b)  For the purposes of administrative efficiency, the Texas
86-25    Natural Resource Conservation Commission by rule may develop
86-26    categories of persons required to obtain a permit under Section
86-27    361.121(b), Health and Safety Code, as added by this Act, and may
 87-1    require certain categories of persons to obtain a permit earlier
 87-2    than the date prescribed by that section.
 87-3          SECTION 9.06. Subchapter N, Chapter 361, Health and Safety
 87-4    Code, is amended by adding Section 361.431 to read as follows:
 87-5          Sec. 361.431.  PRIORITIZATION OF NEW TECHNOLOGY. (a)  A
 87-6    political subdivision or solid waste producer shall give preference
 87-7    in contracting for the disposal of solid waste to license or permit
 87-8    holders who use processes and technologies that reduce the volume
 87-9    of sludge and hazardous waste that is being disposed of through
87-10    beneficial use land application, landfill disposal, and other
87-11    methods.
87-12          (b)  Technology that reduces the volume of solid waste,
87-13    destroys the solid waste, or renders the solid waste inert is
87-14    preferred to methods referred to under Subsection (a), to minimize
87-15    the possibility of hazardous materials entering the state's air,
87-16    waterways, and water sources.
87-17          SECTION 9.07.  Section 7.031, Water Code, is amended by
87-18    amending Subsection (c) and adding Subsection (f) to read as
87-19    follows:
87-20          (c)  If[, before the issuance of a permit,] the commission
87-21    determines that there is or has been a release of hazardous waste
87-22    into the environment from a facility required to obtain a permit in
87-23    accordance with an approved state program under Section 3006 of the
87-24    federal Solid Waste Disposal Act, as amended by the Resource
87-25    Conservation and Recovery Act of 1976, as amended (42 U.S.C.
87-26    Section 6901 et seq.), the commission may:
87-27                (1)  issue an order requiring corrective action or
 88-1    other response measures considered necessary to protect human
 88-2    health or the environment; or
 88-3                (2)  institute a civil action under Subchapter D.
 88-4          (f)  Nothing in this section limits the authority of the
 88-5    commission, consistent with federal law, to issue an order for the
 88-6    closure, post-closure care, or other remediation of hazardous waste
 88-7    or hazardous waste constituents from a solid waste management unit
 88-8    at a solid waste processing, storage, or disposal facility.
 88-9          SECTION 9.08.  Subchapter C, Chapter 361, Health and Safety
88-10    Code, is amended by adding Section 361.122 to read as follows:
88-11          Sec. 361.122.  DENIAL OF CERTAIN LANDFILL PERMITS. The
88-12    commission may not issue a permit for a Type IV landfill if:
88-13                (1)  the proposed site is located within 100 feet of a
88-14    canal that is used as a public drinking water source or for
88-15    irrigation of crops used for human or animal consumption;
88-16                (2)  the proposed site is located in a county with a
88-17    population of more than 225,000 that is located adjacent to the
88-18    Gulf of Mexico; and
88-19                (3)  prior to final consideration of the application by
88-20    the commission, the commissioners of the county in which the
88-21    facility is located have adopted a resolution recommending denial
88-22    of the application.
88-23                       ARTICLE 10.  EDWARDS AQUIFER
88-24          SECTION 10.01. As used in this article, "Edwards Aquifer" has
88-25    the meaning defined in Section 26.046, Water Code.
88-26          SECTION 10.02. Subchapter B, Chapter 26, Water Code, is
88-27    amended by adding Section 26.050 to read as follows:
 89-1          Sec. 26.050.  DIGITAL COPIES OF BOUNDARY LINES. The
 89-2    commission shall make available to the public digital copies of the
 89-3    Recharge, Transition, and Contributing Zone boundary lines, when
 89-4    they become available.
 89-5          SECTION 10.03. Subchapter B, Chapter 26, Water Code, is
 89-6    amended by adding Section 26.051 to read as follows:
 89-7          Sec. 26.051.  ANNUAL REPORT ON EDWARDS AQUIFER PROGRAM. The
 89-8    commission shall report annually on the Edwards Aquifer Program
 89-9    expenses and allocation of fees.
89-10          SECTION 10.04.  Subchapter D, Chapter 26, Water Code, is
89-11    amended by adding Section 26.137 to read as follows:
89-12          Sec. 26.137.  COMMENT PERIOD FOR EDWARDS AQUIFER PROTECTION
89-13    PLANS. The commission shall provide for a 30-day comment period in
89-14    the review process for Edwards Aquifer Protection Plans in the
89-15    Contributing Zone of the Edwards Aquifer as provided in 30 T.A.C.
89-16    Section 213.4(a)(2).
89-17                ARTICLE 11.  MATTERS RELATED TO REMEDIATION
89-18          SECTION 11.01. Subchapter F, Chapter 361, Health and Safety
89-19    Code, is amended by adding Section 361.1875 to read as follows:
89-20          Sec. 361.1875.  EXCLUSION OF CERTAIN POTENTIALLY RESPONSIBLE
89-21    PARTIES. The commission may not name a person as a responsible
89-22    party for an enforcement action or require a person to reimburse
89-23    remediation costs for a site if the commission has conducted an
89-24    investigation of a site owned or operated by the person and as a
89-25    result of the investigation has determined that:
89-26                (1)  the contaminants that are the subject of
89-27    investigation under this subchapter appear to originate from an
 90-1    up-gradient, off-site source that is not owned or operated by the
 90-2    person;
 90-3                (2)  additional corrective action is not required at
 90-4    the site owned or operated by the person; and
 90-5                (3)  the commission will not undertake a formal
 90-6    enforcement action in the matter.
 90-7                    ARTICLE 12.  REGULATION OF CERTAIN
 90-8                         ANIMAL FEEDING OPERATIONS
 90-9          SECTION 12.01. Sections 26.001(10) and (13), Water Code, are
90-10    amended to read as follows:
90-11                (10)  "Agricultural waste" means waterborne liquid,
90-12    gaseous, or solid substances that arise from the agricultural
90-13    industry and agricultural activities, including without limitation
90-14    agricultural animal feeding pens and lots, structures for housing
90-15    and feeding agricultural animals, and processing facilities for
90-16    agricultural products.  The term:
90-17                      (A)  includes:
90-18                            (i)  tail water or runoff water from
90-19    irrigation associated with an animal feeding operation or
90-20    concentrated animal feeding operation that is located in a major
90-21    sole source impairment zone, as defined by Section 26.502; or
90-22                            (ii)  rainwater runoff from the confinement
90-23    area of an animal feeding operation or concentrated animal feeding
90-24    operation that is located in a major sole source impairment zone,
90-25    as defined by Section 26.502; and
90-26                      (B)  ["agricultural waste"] does not include tail
90-27    water or runoff water from irrigation or rainwater runoff from
 91-1    other cultivated or uncultivated range land, pasture land, and
 91-2    farmland or rainwater runoff from an area of land located in a
 91-3    major sole source impairment zone, as defined by Section 26.502,
 91-4    that is not owned or controlled by an operator of an animal feeding
 91-5    operation or concentrated animal feeding operation on which
 91-6    agricultural waste is applied.
 91-7                (13)  "Pollutant" means dredged spoil, solid waste,
 91-8    incinerator residue, sewage, garbage, sewage sludge, filter
 91-9    backwash, munitions, chemical wastes, biological materials,
91-10    radioactive materials, heat, wrecked or discarded equipment, rock,
91-11    sand, cellar dirt, and industrial, municipal, and agricultural
91-12    waste discharged into any water in the state.  The term:
91-13                      (A)  includes:
91-14                            (i)  tail water or runoff water from
91-15    irrigation associated with an animal feeding operation or
91-16    concentrated animal feeding operation that is located in a major
91-17    sole source impairment zone as defined by Section 26.502; or
91-18                            (ii)  rainwater runoff from the confinement
91-19    area of an animal feeding operation or concentrated animal feeding
91-20    operation that is located in a major sole source impairment zone,
91-21    as defined by Section 26.502; and
91-22                      (B)  ["pollutant"] does not include tail water or
91-23    runoff water from irrigation or rainwater runoff from other
91-24    cultivated or uncultivated rangeland, pastureland, and farmland or
91-25    rainwater runoff from an area of land located in a major sole
91-26    source impairment zone, as defined by Section 26.502, that is not
91-27    owned or controlled by an operator of an animal feeding operation
 92-1    or concentrated animal feeding operation on which agricultural
 92-2    waste is applied.
 92-3          SECTION 12.02. Chapter 26, Water Code, is amended by adding
 92-4    Subchapter L to read as follows:
 92-5              SUBCHAPTER L.  PROTECTION OF CERTAIN WATERSHEDS
 92-6          Sec. 26.501.  DEFINITIONS. In this subchapter:
 92-7                (1)  "Concentrated animal feeding operation" has the
 92-8    meaning assigned by 30 T.A.C. Section 321.32 on the effective date
 92-9    of this subchapter.
92-10                (2)  "New concentrated animal feeding operation" means
92-11    a proposed concentrated animal feeding operation, any part of which
92-12    is located on property not previously authorized by the state to be
92-13    operated as a concentrated animal feeding operation.
92-14                (3)  "Historical waste application field" means an area
92-15    of land that at any time since January 1, 1995, has been owned or
92-16    controlled by an operator of a concentrated animal feeding
92-17    operation on which agricultural waste from a concentrated animal
92-18    feeding operation has been applied.
92-19          Sec. 26.502.  APPLICABILITY. This subchapter applies only to
92-20    a feeding operation confining cattle that have been or may be used
92-21    for dairy purposes, or otherwise associated with a dairy, including
92-22    cows, calves, and bulls, in a major sole source impairment zone.
92-23    In this subchapter, "major sole source impairment zone" means a
92-24    watershed that contains a reservoir:
92-25                (1)  that is used by a municipality as a sole source of
92-26    drinking water supply for a population, inside and outside of its
92-27    municipal boundaries, of more than 140,000; and
 93-1                (2)  at least half of the water flowing into which is
 93-2    from a source that, on the effective date of this subchapter, is on
 93-3    the list of impaired state waters adopted by the commission as
 93-4    required by 33 U.S.C. Section 1313(d), as amended:
 93-5                      (A)  at least in part because of concerns
 93-6    regarding pathogens and phosphorus; and
 93-7                      (B)  for which the commission, at some time, has
 93-8    prepared and submitted a total maximum daily load standard.
 93-9          Sec. 26.503.  REGULATION OF CERTAIN CONCENTRATED ANIMAL
93-10    FEEDING OPERATION WASTES. (a)  The commission may authorize the
93-11    construction or operation of a new concentrated animal feeding
93-12    operation, or an increase in the animals confined under an existing
93-13    operation, only by a new or amended individual permit.
93-14          (b)  The individual permit issued or amended under Subsection
93-15    (a) must:
93-16                (1)  provide for management and disposal of waste in
93-17    accordance with Subchapter B, Chapter 321, Title 30, Texas
93-18    Administrative Code;
93-19                (2)  require that 100 percent of the collectible manure
93-20    produced by the additional animals in confinement at an expanded
93-21    operation or all of the animals in confinement at a new operation
93-22    must be:
93-23                      (A)  disposed of or used outside of the
93-24    watershed;
93-25                      (B)  delivered to a composting facility approved
93-26    by the executive director;
93-27                      (C)  applied as directed by the commission to a
 94-1    waste application field owned or controlled by the owner of the
 94-2    concentrated animal feeding operation, if the field is not a
 94-3    historical waste application field;
 94-4                      (D)  put to another beneficial use approved by
 94-5    the executive director; or
 94-6                      (E)  applied to a historical waste application
 94-7    field that is owned or operated by the owner or operator of the
 94-8    concentrated animal feeding operation only if:
 94-9                            (i)  results of representative composite
94-10    soil sampling conducted at the waste application field and filed
94-11    with the commission show that the waste application field contains
94-12    200 or fewer parts per million of extractable phosphorus (reported
94-13    as P); or
94-14                            (ii)  the manure is applied, with
94-15    commission approval, in accordance with a detailed nutrient
94-16    utilization plan approved by the commission that is developed by:
94-17                                  (a)  an employee of the United States
94-18    Department of Agriculture's Natural Resources Conservation Service;
94-19                                  (b)  a nutrient management specialist
94-20    certified by the United States Department of Agriculture's Natural
94-21    Resources Conservation Service;
94-22                                  (c)  the State Soil and Water
94-23    Conservation Board;
94-24                                  (d)  the Texas Agricultural Extension
94-25    Service;
94-26                                  (e)  an agronomist or soil scientist
94-27    on the full-time staff of an accredited university located in this
 95-1    state; or
 95-2                                  (f)  a professional agronomist or
 95-3    soil scientist certified by the American Society of Agronomy.
 95-4          (c)  The commission may approve a detailed nutrient
 95-5    utilization plan approved by the commission that is developed by a
 95-6    professional agronomist or soil scientist certified by the American
 95-7    Society of Agronomy only if the commission finds that another
 95-8    person listed by Subsection (b)(2)(E)(ii) cannot develop a plan in
 95-9    a timely manner.
95-10          (d)  The commission may not issue a general permit to
95-11    authorize the discharge of agricultural waste into or adjacent to
95-12    waters in this state from an animal feeding operation if such
95-13    waters are within a major sole source impairment zone.
95-14          (e)  The commission and employees or agents of the commission
95-15    may enter public or private property at any reasonable time for
95-16    activities related to the purposes of this subchapter.  The
95-17    commission may enforce this authority as provided by Section 7.032,
95-18    7.051, 7.052, or 7.105.
95-19          (f)  This section does not limit the commission's authority
95-20    to include in an individual or general permit under this chapter
95-21    provisions necessary to protect a water resource in this state.
95-22          Sec. 26.504.  WASTE APPLICATION FIELD SOIL SAMPLING AND
95-23    TESTING. (a)  The operator of a concentrated animal feeding
95-24    operation shall contract with a person described by Section
95-25    26.503(b)(2)(E)(ii) selected by the executive director to collect
95-26    one or more representative composite soil samples from each waste
95-27    application field.  The operator shall have sampling performed
 96-1    under this subsection not less often than once every 12 months.
 96-2          (b)  Each sample collected under this section must be tested
 96-3    for phosphorus and any other nutrient designated by the executive
 96-4    director.  The test results must be made available to the executive
 96-5    director and the operator of the concentrated animal feeding
 96-6    operation.  The test results are public records of the commission.
 96-7          (c)  If the samples tested under Subsection (b) show a
 96-8    phosphorus level in the soil of more than 500 parts per million,
 96-9    the operator shall file with the commission a new or amended
96-10    nutrient utilization plan with a phosphorus reduction component
96-11    that is certified as acceptable by a person listed by Section
96-12    26.503(b)(2)(E)(ii).
96-13          (d)  If the samples tested under Subsection (b) show a
96-14    phosphorus level in the soil of more than 200 parts per million but
96-15    not more than 500 parts per million, the operator shall:
96-16                (1)  file with the commission a new or amended nutrient
96-17    utilization plan with a phosphorus reduction component that is
96-18    certified as acceptable by a person listed by Section
96-19    26.503(b)(2)(E)(ii); or
96-20                (2)  show that the level is supported by a nutrient
96-21    utilization plan certified as acceptable by a person listed by
96-22    Section 26.503(b)(2)(E)(ii).
96-23          (e)  The owner or operator of a waste application field
96-24    required by this section to have a nutrient utilization plan with a
96-25    phosphorus reduction component for which the results of tests
96-26    performed on composite soil samples collected 12 months or more
96-27    after the plan is filed do not show a reduction in phosphorus is
 97-1    subject to enforcement for a violation of this subchapter at the
 97-2    discretion of the executive director.  The executive director, in
 97-3    determining whether to take an enforcement action under this
 97-4    subsection, shall consider any explanation presented by the owner
 97-5    or operator regarding the reasons for the lack of phosphorus
 97-6    reduction, including an act of God, meteorologic conditions,
 97-7    diseases, vermin, crop conditions, or variability of soil testing
 97-8    results.
 97-9          (f)  The commission shall adopt rules to implement this
97-10    section.  The rules must provide for the scheduling and manner of
97-11    the required soil testing and the form, content, and deadlines for
97-12    plans required under this section.
97-13           ARTICLE 13.  CONTAINMENT SYSTEMS REQUIRED FOR CERTAIN
97-14                         UNDERGROUND STORAGE TANKS
97-15          SECTION 13.01. Subchapter I, Chapter 26, Water Code, is
97-16    amended by adding Section 26.3476 to read as follows:
97-17          Sec. 26.3476.  SECONDARY CONTAINMENT REQUIRED FOR TANKS
97-18    LOCATED OVER CERTAIN AQUIFERS. (a)  In this section, "secondary
97-19    containment" means a method by which a secondary wall or barrier is
97-20    installed around an underground storage tank system in a manner
97-21    designed to prevent a release of a regulated substance from
97-22    migrating beyond the secondary wall or barrier before the release
97-23    can be detected.  A secondary containment system may include an
97-24    impervious liner or vault surrounding a primary tank or piping
97-25    system or a double-wall tank or piping system.
97-26          (b)  An underground storage tank system, at a minimum, shall
97-27    incorporate a method for secondary containment if the system is
 98-1    located in:
 98-2                (1)  the outcrop of a major aquifer composed of
 98-3    limestone and associated carbonate rocks of Cretaceous age or
 98-4    older; and
 98-5                (2)  a county that:
 98-6                      (A)  has a population of at least one million and
 98-7    relies on groundwater for at least 75 percent of the county's water
 98-8    supply; or
 98-9                      (B)  has a population of at least 75,000 and is
98-10    adjacent to a county described by Paragraph (A).
98-11          (c)  Section 26.3475(e) applies to an underground storage
98-12    tank system that is subject to this section as if a violation of
98-13    this section were a violation of Section 26.3475.
98-14          (d)  Notwithstanding Section 26.359(b), a political
98-15    subdivision under this section may adopt standards for the
98-16    containment of underground storage tank systems.
98-17        ARTICLE 14.  REGULATION AND REMEDIATION OF UNDERGROUND AND
98-18                         ABOVEGROUND STORAGE TANKS
98-19          SECTION 14.01. Section 26.342, Water Code, is amended by
98-20    amending Subdivisions (9)-(17) and adding Subdivision (18) to read
98-21    as follows:
98-22                (9)  "Owner" means a person who holds legal possession
98-23    or ownership of an interest in an underground storage tank system
98-24    or an aboveground storage tank.  If the actual ownership of an
98-25    underground storage tank system or an aboveground storage tank is
98-26    uncertain, unknown, or in dispute, the fee simple owner of the
98-27    surface estate of the tract on which the tank system is located is
 99-1    considered the owner of the system unless that person can
 99-2    demonstrate by appropriate documentation, including a deed
 99-3    reservation, invoice, or bill of sale, or by other legally
 99-4    acceptable means that the underground storage tank system or
 99-5    aboveground storage tank is owned by another person.  A person that
 99-6    has registered as an owner of an underground storage tank system or
 99-7    aboveground storage tank with the commission under Section 26.346
 99-8    after September 1, 1987, shall be considered the tank system owner
 99-9    until such time as documentation demonstrates to the executive
99-10    director's satisfaction that the legal interest in the tank system
99-11    was transferred to a different person subsequent to the date of the
99-12    tank registration.  This definition is subject to the limitations
99-13    found in Section 26.3514 (Limits on Liability of Lender), Section
99-14    26.3515 (Limits on Liability of Corporate Fiduciary), and Section
99-15    26.3516 (Limits on Liability of Taxing Unit).
99-16                (10)  "Person" means an individual, trust, firm,
99-17    joint-stock company, corporation, government corporation,
99-18    partnership, association, state, municipality, commission,
99-19    political subdivision of a state, an interstate body, a consortium,
99-20    joint venture, commercial entity, or the United States government.
99-21                (11) [(10)]  "Petroleum product" means a petroleum
99-22    product that is obtained from distilling and processing crude oil
99-23    and that is capable of being used as a fuel for the propulsion of a
99-24    motor vehicle or aircraft, including motor gasoline, gasohol, other
99-25    alcohol blended fuels, aviation gasoline, kerosene, distillate fuel
99-26    oil, and #1 and #2 diesel.  The term does not include naphtha-type
99-27    jet fuel, kerosene-type jet fuel, or a petroleum product destined
 100-1   for use in chemical manufacturing or feedstock of that
 100-2   manufacturing.
 100-3               (12) [(11)]  "Petroleum storage tank" means:
 100-4                     (A)  any one or combination of aboveground
 100-5   storage tanks that contain petroleum products and that are
 100-6   regulated by the commission; or
 100-7                     (B)  any one or combination of underground
 100-8   storage tanks and any connecting underground pipes that contain
 100-9   petroleum products and that are regulated by the commission.
100-10               (13) [(12)]  "Regulated substance" means an element,
100-11   compound, mixture, solution, or substance that, when released into
100-12   the environment, may present substantial danger to the public
100-13   health, welfare, or the environment.
100-14               (14) [(13)]  "Release" means any spilling including
100-15   overfills, leaking, emitting, discharging, escaping, leaching, or
100-16   disposing from an underground or aboveground storage tank into
100-17   groundwater, surface water, or subsurface soils.
100-18               (15) [(14)]  "Risk-based corrective action" means site
100-19   assessment or site remediation, the timing, type, and degree of
100-20   which is determined according to case-by-case consideration of
100-21   actual or potential risk to public health from environmental
100-22   exposure to a regulated substance released from a leaking
100-23   underground or aboveground storage tank.
100-24               (16) [(15)]  "Spent oil" means a regulated substance
100-25   that is a lubricating oil or similar petroleum substance which has
100-26   been refined from crude oil, used for its designed or intended
100-27   purposes, and contaminated as a result of that use by physical or
 101-1   chemical impurities, including spent motor vehicle lubricating
 101-2   oils, transmission fluid, or brake fluid.
 101-3               (17) [(16)]  "Underground storage tank" means any one
 101-4   or combination of underground tanks and any connecting underground
 101-5   pipes used to contain an accumulation of regulated substances, the
 101-6   volume of which, including the volume of the connecting underground
 101-7   pipes, is 10 percent or more beneath the surface of the ground.
 101-8               (18) [(17)]  "Vehicle service and fueling facility"
 101-9   means a facility where motor vehicles are serviced or repaired and
101-10   where petroleum products are stored and dispensed from fixed
101-11   equipment into the fuel tanks of motor vehicles.
101-12         SECTION 14.02. Sections 26.346(a) and (c), Water Code, are
101-13   amended to read as follows:
101-14         (a)  An underground or aboveground storage tank must be
101-15   registered with the commission unless the tank is exempt from
101-16   regulation under Section 26.344 of this code or the tank is covered
101-17   under Subsection (b) of this section.  The commission by rule shall
101-18   establish the procedures and requirements for establishing and
101-19   maintaining current registration information concerning underground
101-20   and aboveground storage tanks.  The commission shall also require
101-21   that an owner or operator of an underground storage tank used for
101-22   storing motor fuels (as defined in commission rule) complete an
101-23   annual underground storage tank compliance certification form.
101-24         (c)  The commission shall issue to each person who owns or
101-25   operates a petroleum storage tank that is registered under this
101-26   section a registration and compliance confirmation certificate that
101-27   includes a brief description of:
 102-1               (1)  the responsibility of the owner or operator under
 102-2   Section 26.3512 of this code;
 102-3               (2)  the rights of the owner or operator to participate
 102-4   in the petroleum storage tank remediation account and the
 102-5   groundwater protection cleanup program established under this
 102-6   subchapter; and
 102-7               (3)  the responsibility of the owner or operator of an
 102-8   underground storage tank to accurately complete the part of the
 102-9   registration form pertaining to the certification of compliance
102-10   with underground storage tank administrative requirements and
102-11   technical standards if the tank is used for storing motor fuels (as
102-12   defined in commission rule).
102-13         SECTION 14.03. Section 26.351, Water Code, is amended by
102-14   adding Subsections (f), (g), and (h) to read as follows:
102-15         (f)  The person performing corrective action under this
102-16   section, if the release was reported to the commission on or before
102-17   December 22, 1998, shall meet the following deadlines:
102-18               (1)  a complete site assessment and risk assessment
102-19   (including, but not limited to, risk-based criteria for
102-20   establishing target concentrations), as determined by the executive
102-21   director, must be received by the agency no later than September 1,
102-22   2002;
102-23               (2)  a complete Corrective Action Plan, as determined
102-24   by the executive director and including, but not limited to,
102-25   completion of pilot studies and recommendation of a cost-effective
102-26   and technically appropriate remediation methodology, must be
102-27   received by the agency no later than September 1, 2003.  The person
 103-1   may, in lieu of this requirement, submit by this same deadline a
 103-2   demonstration that a Corrective Action Plan is not required for the
 103-3   site in question under commission rules.  Such demonstration must
 103-4   be to the executive director's satisfaction;
 103-5               (3)  for those sites found under Subdivision (2) to
 103-6   require a Corrective Action Plan, that plan must be initiated and
 103-7   proceeding according to the requirements and deadlines in the
 103-8   approved plan no later than March 1, 2004;
 103-9               (4)  for sites which require either a Corrective Action
103-10   Plan or groundwater monitoring, a comprehensive and accurate annual
103-11   status report concerning those activities must be submitted to the
103-12   agency;
103-13               (5)  for sites which require either a Corrective Action
103-14   Plan or groundwater monitoring, all deadlines set by the executive
103-15   director concerning the Corrective Action Plan or approved
103-16   groundwater monitoring plan shall be met; and
103-17               (6)  site closure requests for all sites where the
103-18   executive director agreed in writing that no Corrective Action Plan
103-19   was required must be received by the agency no later than September
103-20   1, 2005.  The request must be complete, as judged by the executive
103-21   director.
103-22         (g)  For persons regulated under Subsection (f), their
103-23   failure to comply with any deadline listed in Subsection (f) is a
103-24   violation of this section, and the executive director may enforce
103-25   such a violation under Chapter 7 of this code.  A missed deadline
103-26   that is the fault of the person, his agent, or contractor shall
103-27   also eliminate reimbursement eligibility as described by Section
 104-1   26.3571(b).  If it can be established to the executive director's
 104-2   satisfaction that the deadline was not missed at the fault of the
 104-3   person, his agent, or contractor, then reimbursement eligibility is
 104-4   not affected under this subsection.
 104-5         (h)  A person's liability to perform corrective action under
 104-6   this chapter is unrelated to any possible reimbursements the person
 104-7   may be eligible for under Section 26.3571.
 104-8         SECTION 14.04. Section 26.3512(b), Water Code, is amended to
 104-9   read as follows:
104-10         (b)  Funds from the petroleum storage tank remediation
104-11   account may not be used to pay, and the owner or operator of a
104-12   petroleum storage tank ordered by the commission to take corrective
104-13   action is responsible for payment of, the following:
104-14               (1)  the owner or operator contribution described by
104-15   Subsections (e)-(k);
104-16               (2)  any expenses for corrective action that exceed the
104-17   applicable amount specified by Section 26.3573(m);
104-18               (3)  any expenses for corrective action that are not
104-19   covered by payment from the petroleum storage tank remediation
104-20   account under the rules or decisions of the commission under this
104-21   subchapter;
104-22               (4)  any expenses for corrective action not ordered or
104-23   agreed to by the commission; [or]
104-24               (5)  any expenses for corrective action incurred for
104-25   confirmed releases initially discovered and reported to the
104-26   commission after December 22, 1998; and
104-27               (6)  any corrective action expenses for which
 105-1   reimbursement is prohibited under Section 26.3571, 26.3573, or
 105-2   26.361.
 105-3         SECTION 14.05. Section 26.355(d), Water Code, is amended to
 105-4   read as follows:
 105-5         (d)  If the commission uses money from the petroleum storage
 105-6   tank remediation account for corrective action or enforcement and
 105-7   if the costs are recovered under this section, the commission may
 105-8   not recover more than the amount of the applicable owner or
 105-9   operator contribution described by Section 26.3512[(e)] of this
105-10   code from an eligible owner or operator for corrective action for
105-11   each occurrence.  However, this limitation is not applicable to
105-12   cost recovery actions initiated by the executive director at sites
105-13   where the executive director has determined that the owner or
105-14   operator is in violation of Section 26.351(f).
105-15         SECTION 14.06. Section 26.3571, Water Code, is amended by
105-16   amending Subsection (b) and adding Subsections (g) and (h) to read
105-17   as follows:
105-18         (b)  To be an eligible owner or operator for purposes of this
105-19   subchapter, a person must not have missed any of the deadlines
105-20   described in Section 26.351(f) and must:
105-21               (1)  be one of the following:
105-22                     (A)  an owner or operator of a petroleum storage
105-23   tank that is subject to regulation under this subchapter;
105-24                     (B)  an owner of land that can clearly prove that
105-25   the land has been contaminated by a release of petroleum products
105-26   from a petroleum storage tank that is subject to regulation under
105-27   this subchapter, whether or not the tank is still attached to that
 106-1   land; or
 106-2                     (C)  a lender that has a bona fide security or
 106-3   lienhold interest in or mortgage lien on any property contaminated
 106-4   by the release of petroleum products from a petroleum storage tank
 106-5   subject to regulation under this subchapter, or that forecloses on
 106-6   or receives an assignment or deed in lieu of foreclosure and
 106-7   becomes the owner of such property;
 106-8               (2)  be in compliance with this subchapter as
 106-9   determined by the commission; and
106-10               (3)  meet qualifying criteria established by the
106-11   commission under Subsection (a)  of this section.
106-12         (g)  An otherwise eligible owner or operator who misses a
106-13   deadline referenced in Subsection (b) shall be considered
106-14   ineligible for reimbursement under this subchapter.
106-15         (h)  Nothing in this section reduces the liability to perform
106-16   corrective action created under Section 26.351 and other parts of
106-17   this subchapter.
106-18         SECTION 14.07. Section 26.3572(b), Water Code, is amended to
106-19   read as follows:
106-20         (b)  In administering the program, the commission shall:
106-21               (1)  negotiate with or direct responsible parties in
106-22   site assessment and remediation matters using risk-based corrective
106-23   action;
106-24               (2)  approve site-specific corrective action plans for
106-25   each site as necessary, using risk-based corrective action;
106-26               (3)  review and inspect site assessment and remedial
106-27   activities and reports;
 107-1               (4)  use risk-based corrective action procedures as
 107-2   determined by commission rule to establish cleanup levels;
 107-3               (5)  adopt by rule criteria for assigning a priority to
 107-4   each site using risk-based corrective action and assign a priority
 107-5   to each site according to those criteria;
 107-6               (6)  adopt by rule criteria for:
 107-7                     (A)  risk-based corrective action site closures;
 107-8   and
 107-9                     (B)  the issuance of a closure letter to the
107-10   owner or operator of a tank site on completion of the commission's
107-11   corrective action requirements; and
107-12               (7)  process claims for petroleum storage tank
107-13   remediation account disbursement in accordance with this
107-14   subchapter.
107-15         SECTION 14.08. Section 26.3573, Water Code, is amended by
107-16   amending Subsection (d) and by adding Subsections (r) and (s) to
107-17   read as follows:
107-18         (d)  The commission may use the money in the petroleum
107-19   storage tank remediation account to pay:
107-20               (1)  necessary expenses associated with the
107-21   administration of the petroleum storage tank remediation account
107-22   and the groundwater protection cleanup program, not to exceed an
107-23   amount equal to:  11.8 [6.7] percent of the gross receipts of that
107-24   account for FY 02/03; 16.40 percent of the gross receipts of that
107-25   account for FY 04/05; and 21.1 percent of the gross receipts of
107-26   that account for FY 06/07;
107-27               (2)  expenses associated with investigation, cleanup,
 108-1   or corrective action measures performed in response to a release or
 108-2   threatened release from a petroleum storage tank, whether those
 108-3   expenses are incurred by the commission or pursuant to a contract
 108-4   between a contractor and an eligible owner or operator as
 108-5   authorized by this subchapter; and
 108-6               (3)  subject to the conditions of Subsection (e) of
 108-7   this section, expenses associated with investigation, cleanup, or
 108-8   corrective action measures performed in response to a release or
 108-9   threatened release of hydraulic fluid or spent oil from hydraulic
108-10   lift systems or tanks located at a vehicle service and fueling
108-11   facility and used as part of the operations of that facility.
108-12         (r)  The petroleum storage tank remediation account may not
108-13   be used to reimburse any person for corrective action performed
108-14   after September 1, 2005.
108-15         (s)  The petroleum storage tank remediation account may not
108-16   be used to reimburse any person for corrective action contained in
108-17   a reimbursement claim filed with the commission after March 1,
108-18   2006.
108-19         SECTION 14.09. Sections 26.3574(b), (x), (y), (z), and (aa),
108-20   Water Code, are amended to read as follows:
108-21         (b)  A fee is imposed on the delivery of a petroleum product
108-22   on withdrawal from bulk of that product as provided by this
108-23   subsection.  Each operator of a bulk facility on withdrawal from
108-24   bulk of a petroleum product shall collect from the person who
108-25   orders the withdrawal a fee in an amount determined as follows:
108-26               (1)  $12.50 [$18.75] for each delivery into a cargo
108-27   tank having a capacity of less than 2,500 gallons for Fiscal Year
 109-1   2002 and Fiscal Year 2003; $10 for each delivery into a cargo tank
 109-2   having a capacity of less than 2,500 gallons for Fiscal Year 2004
 109-3   and Fiscal Year 2005; $5 for each delivery into a cargo tank having
 109-4   a capacity of less than 2,500 gallons for Fiscal Year 2006; and $2
 109-5   for each delivery into a cargo tank having a capacity of less than
 109-6   2,500 gallons for Fiscal Year 2007;
 109-7               (2)  $25 [$37.50] for each delivery into a cargo tank
 109-8   having a capacity of 2,500 gallons or more but less than 5,000
 109-9   gallons for Fiscal Year 2002 and Fiscal Year 2003; $20 for each
109-10   delivery into a cargo tank having a capacity of 2,500 gallons or
109-11   more but less than 5,000 gallons for Fiscal Year 2004 and Fiscal
109-12   Year 2005; $10 for each delivery into a cargo tank having a
109-13   capacity of 2,500 gallons or more but less than 5,000 gallons for
109-14   Fiscal Year 2006; and $4 for each delivery into a cargo tank having
109-15   a capacity of 2,500 gallons or more but less than 5,000 gallons for
109-16   Fiscal Year 2007;
109-17               (3)  $37.50 [$56.25] for each delivery into a cargo
109-18   tank having a capacity of 5,000 gallons or more but less than 8,000
109-19   gallons for Fiscal Year 2002 and Fiscal Year 2003; $30 for each
109-20   delivery into a cargo tank having a capacity of 5,000 gallons or
109-21   more but less than 8,000 gallons for Fiscal Year 2004 and Fiscal
109-22   Year 2005; $15 for each delivery into a cargo tank having a
109-23   capacity of 5,000 gallons or more but less than 8,000 gallons for
109-24   Fiscal Year 2006; and $6 for each delivery into a cargo tank having
109-25   a capacity of 5,000 gallons or more but less than 8,000 gallons for
109-26   Fiscal Year 2007;
109-27               (4)  $50 [$75] for each delivery into a cargo tank
 110-1   having a capacity of 8,000 gallons or more but less than 10,000
 110-2   gallons for Fiscal Year 2002 and Fiscal Year 2003; $40 for each
 110-3   delivery into a cargo tank having a capacity of 8,000 gallons or
 110-4   more but less than 10,000 gallons for Fiscal Year 2004 and Fiscal
 110-5   Year 2005; $20 for each delivery into a cargo tank having a
 110-6   capacity of 8,000 gallons or more but less than 10,000 gallons for
 110-7   Fiscal Year 2006; and $8 for each delivery into a cargo tank having
 110-8   a capacity of 8,000 gallons or more but less than 10,000 gallons
 110-9   for Fiscal Year 2007; and
110-10               (5)  a $25 [$37.50] fee for each increment of 5,000
110-11   gallons or any part thereof delivered into a cargo tank having a
110-12   capacity of 10,000 gallons or more for Fiscal Year 2002 and Fiscal
110-13   Year 2003; $20 for each increment of 5,000 gallons or any part
110-14   thereof delivered into a cargo tank having a capacity of 10,000
110-15   gallons or more for Fiscal Year 2004 and Fiscal Year 2005; $10 for
110-16   each increment of 5,000 gallons or any part thereof delivered into
110-17   a cargo tank having a capacity of 10,000 gallons or more for Fiscal
110-18   Year 2006; and $4 for each increment of 5,000 gallons or any part
110-19   thereof delivered into a cargo tank having a capacity of 10,000
110-20   gallons or more for Fiscal Year 2007.
110-21         (x)  [After the deposits have been made to the credit of the
110-22   general revenue fund under Section 403.092(c)(1), Government Code,
110-23   as added by Chapter 533, Acts of the 73rd Legislature, 1993, the
110-24   fee imposed under this section may not be collected or required to
110-25   be paid on or after the first day of the second month following
110-26   notification by the commission of the date on which the unobligated
110-27   balance in the petroleum storage tank remediation account equals or
 111-1   exceeds $100 million.  The commission shall notify the comptroller
 111-2   in writing of the date on which the unobligated balance equals or
 111-3   exceeds $100 million.]
 111-4         [(y)  If the unobligated balance in the petroleum storage
 111-5   tank remediation account falls below $25 million, the fee shall be
 111-6   reinstated, effective on the first day of the second month
 111-7   following notification by the commission, in amounts determined as
 111-8   follows:]
 111-9               [(1)  $9.38 for each delivery into a cargo tank having
111-10   a capacity of less than 2,500 gallons;]
111-11               [(2)  $18.75 for each delivery into a cargo tank having
111-12   a capacity of 2,500 gallons or more but less than 5,000 gallons;]
111-13               [(3)  $28.13 for each delivery into a cargo tank having
111-14   a capacity of 5,000 gallons or more but less than 8,000 gallons;]
111-15               [(4)  $37.50 for each delivery into a cargo tank having
111-16   a capacity of 8,000 gallons or more but less than 10,000 gallons;
111-17   and]
111-18               [(5)  an $18.75 fee for each increment of 5,000 gallons
111-19   or any part thereof delivered into a cargo tank having a capacity
111-20   of 10,000 gallons or more.]
111-21         [(z)  For purposes of Subsections (x) and (y) of this
111-22   section, the unobligated balance in the petroleum storage tank
111-23   remediation account shall be determined by subtracting from the
111-24   cash balance of the account at the end of each month the sum of the
111-25   total balances remaining on all contracts entered by the commission
111-26   or an eligible owner for corrective action plus the total estimates
111-27   made by the commission of allowable costs for corrective action
 112-1   that are unpaid relating to all  commission orders issued before
 112-2   that date to enforce this subchapter.]
 112-3         [(aa)]  The commission shall report to the Legislative Budget
 112-4   Board at the end of each fiscal quarter on the financial status of
 112-5   the petroleum storage tank remediation account.
 112-6         SECTION 14.10. Sections 26.359 and 26.361, Water Code, are
 112-7   amended to read as follows:
 112-8         Sec. 26.359.  LOCAL REGULATION OR ORDINANCE. (a) In this
 112-9   section, "local government" means a school district, county,
112-10   municipality, junior college district, river authority, water
112-11   district or other special district, or other political subdivision
112-12   created under the constitution or a statute of this state.
112-13         (b)  A [This subchapter establishes a unified statewide
112-14   program for underground and surface water protection, and any
112-15   local] regulation or ordinance adopted by a local government that
112-16   imposes standards [is effective only to the extent the regulation
112-17   or ordinance does not conflict with the standards adopted] for the
112-18   design, construction, installation, or operation of underground
112-19   storage tanks is not valid [under this subchapter].
112-20         (c)  This section does not apply to a regulation or ordinance
112-21   in effect as of January 1, 2001.
112-22         Sec. 26.361.  EXPIRATION OF REIMBURSEMENT PROGRAM. [(a)]
112-23   Notwithstanding any other provision of this subchapter, the
112-24   reimbursement program established under this subchapter expires
112-25   September 1, 2006 [2003]. On or after September 1, 2006 [2003], the
112-26   commission may not use money from the petroleum storage tank
112-27   remediation account to reimburse an eligible owner or operator for
 113-1   any expenses of corrective action or to pay the claim of a person
 113-2   who has contracted with an eligible owner or operator to perform
 113-3   corrective action.
 113-4         [(b)  On or after March 1, 2002, the commission may not
 113-5   collect a fee under Section 26.3574 of this code.]
 113-6                ARTICLE 15.  REGULATION OF AIR POLLUTION
 113-7         SECTION 15.01.  Section 382.019(a), Health and Safety Code,
 113-8   is amended to read as follows:
 113-9         (a)  Except as provided by Section 382.037(g), or another
113-10   provision of this chapter, the [The] commission by rule may provide
113-11   requirements concerning the particular method to be used to control
113-12   and reduce emissions from engines used to propel land vehicles.
113-13         SECTION 15.02.  Section 382.037, Health and Safety Code, is
113-14   amended by amending Subsection (g) and adding Subsections (h) and
113-15   (i) to read as follows:
113-16         (g)  The commission may not establish, before January 1,
113-17   2004, vehicle fuel content standards to provide for vehicle fuel
113-18   content for clean motor vehicle fuels for any area of the state
113-19   that are more stringent or restrictive [other] than those standards
113-20   promulgated by the United States Environmental Protection Agency
113-21   applicable to that area except as provided in Subsection (h) unless
113-22   the fuel is specifically authorized by the legislature [or unless
113-23   it is demonstrated to be necessary for the attainment of federal
113-24   ozone ambient air quality standards or, following appropriate
113-25   health studies and in consultation with the Texas Department of
113-26   Health, it is determined to be necessary for the protection of
113-27   public health].
 114-1         (h)  The commission may not require the distribution of Texas
 114-2   low-emission diesel as described in revisions to the State
 114-3   Implementation Plan for the control of ozone air pollution prior to
 114-4   February 1, 2005.
 114-5         (i)  The commission may consider, as an alternative method of
 114-6   compliance with Subsection (h), fuels to achieve equivalent
 114-7   emissions reductions.
 114-8         SECTION 15.03.  Section 382.039(a), Health and Safety Code,
 114-9   is amended to read as follows:
114-10         (a)  Except as provided by Section 382.037(g) or another
114-11   provision of this chapter, the [The] commission shall coordinate
114-12   with federal, state, and local transportation planning agencies to
114-13   develop and implement transportation programs and other measures
114-14   necessary to demonstrate and maintain attainment of national
114-15   ambient air quality standards and to protect the public from
114-16   exposure to hazardous air contaminants from motor vehicles.
114-17         SECTION 15.04.  The changes in law made by this Act do not
114-18   apply to fuel standards adopted by the Texas Natural Resource
114-19   Conservation Commission before September 1, 2000.
114-20                   ARTICLE 16.  CONFORMING AMENDMENTS
114-21         SECTION 16.01. Section 5.174(a), Water Code, is amended to
114-22   read as follows:
114-23         (a)  Except as otherwise specifically provided by this code
114-24   and subject to the specific limitations provided by this code, on
114-25   application of any person the commission shall furnish certified or
114-26   other copies of any proceeding or other official record or of any
114-27   map, paper, or document filed with the commission.  A certified
 115-1   copy with the seal of the commission and the signature of the
 115-2   presiding officer [chairman] of the commission or the executive
 115-3   director or chief clerk is admissible as evidence in any court or
 115-4   administrative proceeding.
 115-5         SECTION 16.02. Section 11.323(a), Water Code, is amended to
 115-6   read as follows:
 115-7         (a)  When a final determination of the rights to the waters
 115-8   of a stream has been made in accordance with the procedure provided
 115-9   in this subchapter and the time for a rehearing has expired, the
115-10   commission shall issue to each person adjudicated a water right a
115-11   certificate of adjudication, signed by the presiding officer of the
115-12   commission [chairman] and bearing the seal of the commission.
115-13         SECTION 16.03. Sections 26.0135(a) and (b), Water Code, are
115-14   amended to read as follows:
115-15         (a)  To ensure clean water, the commission shall establish
115-16   the strategic and comprehensive monitoring of water quality and the
115-17   periodic assessment of water quality in each watershed and river
115-18   basin of the state.  In order to conserve public funds and avoid
115-19   duplication of effort, subject to adequate funding under Section
115-20   26.0291 [Subsection (h)], river authorities shall, to the greatest
115-21   extent possible and under the supervision of the commission,
115-22   conduct water quality monitoring and assessments in their own
115-23   watersheds.  Watershed monitoring and assessments involving
115-24   agricultural or silvicultural nonpoint source pollution shall be
115-25   coordinated through the State Soil and Water Conservation Board
115-26   with local soil and water conservation districts.  The water
115-27   quality monitoring and reporting duties under this section apply
 116-1   only to a river authority that has entered into an agreement with
 116-2   the commission to perform those duties. The commission, either
 116-3   directly or through cooperative agreements and contracts with local
 116-4   governments, shall conduct monitoring and assessments of watersheds
 116-5   where a river authority is unable to perform an adequate assessment
 116-6   of its own watershed.  The monitoring program shall provide data to
 116-7   identify significant long-term water quality trends, characterize
 116-8   water quality conditions, support the permitting process, and
 116-9   classify unclassified waters.  The commission shall consider
116-10   available monitoring data and assessment results in developing or
116-11   reviewing wastewater permits and stream standards and in conducting
116-12   other water quality management activities.  The assessment must
116-13   include a review of wastewater discharges, nonpoint source
116-14   pollution, nutrient loading, toxic materials, biological health of
116-15   aquatic life, public education and involvement in water quality
116-16   issues, local and regional pollution prevention efforts, and other
116-17   factors that affect water quality within the watershed.  The
116-18   monitoring and assessment required by this section is a continuing
116-19   duty, and the monitoring and assessment shall be periodically
116-20   revised to show changes in the factors subject to assessment.
116-21         (b)  In order to assist in the coordination and development
116-22   of assessments and reports required by this section, a river
116-23   authority shall organize and lead a basin-wide steering committee
116-24   that includes persons paying fees under Section 26.0291 [Subsection
116-25   (h)], private citizens, the State Soil and Water Conservation
116-26   Board, representatives from other appropriate state agencies,
116-27   political subdivisions, and other persons with an interest in water
 117-1   quality matters of the watershed or river basin.  Based on
 117-2   committee and public input, each steering committee shall develop
 117-3   water quality objectives and priorities that are achievable
 117-4   considering the available technology and economic impact.  The
 117-5   objectives and priorities shall be used to develop work plans and
 117-6   allocate available resources under Section 26.0291 [Subsection
 117-7   (h)].  Each committee member shall help identify significant water
 117-8   quality issues within the basin and shall make available to the
 117-9   river authority all relevant water quality data held by the
117-10   represented entities.  A river authority shall also develop a
117-11   public input process that provides for meaningful comments and
117-12   review by private citizens and organizations on each basin summary
117-13   report.  A steering committee established by the commission to
117-14   comply with this subsection in the absence of a river authority or
117-15   other qualified local government is not subject to Chapter 2110,
117-16   Government Code [Article 6252-33, Revised Statutes].
117-17         SECTION 16.04. Section 26.0135(d), Water Code, as amended by
117-18   Chapters  101 and 1082, Acts of the 75th Legislature, Regular
117-19   Session, 1997, is reenacted and amended to read as follows:
117-20         (d)  In the appropriate year of the cycle provided by
117-21   commission rules adopted to implement Section 26.0285, each river
117-22   authority shall submit a written summary report to the commission,
117-23   State Soil and Water Conservation Board, and Parks and Wildlife
117-24   Department on the water quality assessment of the authority's
117-25   watershed.  The summary report must identify concerns relating to
117-26   the watershed or bodies of water, including an identification of
117-27   bodies of water with impaired or potentially impaired uses, the
 118-1   cause and possible source of use impairment, and recommended
 118-2   actions the commission may take to address those concerns.  The
 118-3   summary report must discuss the public benefits from the water
 118-4   quality monitoring and assessment program, including efforts to
 118-5   increase public input in activities related to water quality and
 118-6   the effectiveness of targeted monitoring in assisting the
 118-7   permitting process.  A river authority shall submit a summary
 118-8   report after the report has been approved by the basin steering
 118-9   committee and coordinated with the public and the commission.  A
118-10   river authority shall hold basin steering committee meetings and
118-11   shall invite users of water and wastewater permit holders in the
118-12   watershed who pay fees under Section 26.0291 [Subsection (h)] to
118-13   review the draft of the work plans and summary report.  A river
118-14   authority shall inform those parties of the availability and
118-15   location of the summary report for inspection and shall solicit
118-16   input from those parties concerning their satisfaction with or
118-17   suggestions for modification of the summary report for the
118-18   watershed, the operation or effectiveness of the watershed
118-19   monitoring and assessment program authorized by this section, and
118-20   the adequacy, use, or equitable apportionment of the program's
118-21   costs and funds.  A river authority shall summarize all comments
118-22   received from persons who pay fees under Section 26.0291
118-23   [Subsection (h)] and from steering committee members and shall
118-24   submit the report and the summaries to the governor, the lieutenant
118-25   governor, and the speaker of the house of representatives not later
118-26   than the 90th day after the date the river authority submits the
118-27   summary report to the commission and other agencies.
 119-1         SECTION 16.05. Section 26.028(d), Water Code, is amended to
 119-2   read as follows:
 119-3         (d)  Notwithstanding any other provision of this chapter, the
 119-4   commission, at a regular meeting without the necessity of holding a
 119-5   public hearing, may approve an application to renew or amend a
 119-6   permit if:
 119-7               (1)  the applicant is not applying to:
 119-8                     (A)  increase significantly the quantity of waste
 119-9   authorized to be discharged; or
119-10                     (B)  change materially the pattern or place of
119-11   discharge;
119-12               (2)  the activities to be authorized by the renewed or
119-13   amended permit will maintain or improve the quality of waste
119-14   authorized to be discharged;
119-15               (3)  for NPDES permits, notice and the opportunity to
119-16   request a public meeting shall be given in compliance with NPDES
119-17   program requirements, and the commission shall consider and respond
119-18   to all timely received and significant public comment; and
119-19               (4)  the commission determines that an applicant's
119-20   compliance history under the method for evaluating compliance
119-21   history developed by the commission under Section 5.754 [for the
119-22   preceding five years] raises no issues regarding the applicant's
119-23   ability to comply with a material term of its permit.
119-24         SECTION 16.06. Section 26.0281, Water Code, is amended to
119-25   read as follows:
119-26         Sec. 26.0281.  CONSIDERATION OF [PAST PERFORMANCE AND]
119-27   COMPLIANCE HISTORY. In considering the issuance, amendment, or
 120-1   renewal of a permit to discharge effluent comprised primarily of
 120-2   sewage or municipal waste, the commission shall consider the [any
 120-3   adjudicated decision on or] compliance history [proceeding
 120-4   addressing past performance and compliance] of the applicant and
 120-5   its operator under the method for evaluating compliance history
 120-6   developed by the commission under Section 5.754 [with the laws of
 120-7   this state governing waste discharge, waste treatment, or waste
 120-8   disposal facilities and with the terms of any permit or order
 120-9   issued by the commission].
120-10         SECTION 16.07. Section 26.040(h), Water Code, is amended to
120-11   read as follows:
120-12         (h)  Notwithstanding other provisions of this chapter, the
120-13   commission, after hearing, shall deny or suspend a discharger's
120-14   authority to discharge under a general permit if the commission
120-15   determines that the [discharger operates any facility for which
120-16   the] discharger's compliance history  is in the lowest
120-17   classification under Sections 5.753 and 5.754 and rules adopted and
120-18   procedures developed under those sections [contains violations
120-19   constituting a recurring pattern of egregious conduct that
120-20   demonstrates a consistent disregard for the regulatory process,
120-21   including a failure to make a timely and substantial attempt to
120-22   correct the violations].  A hearing under this subsection is not
120-23   subject to Chapter 2001, Government Code.
120-24         SECTION 16.08. Section 27.051, Water Code, is amended by
120-25   amending Subsections (d) and (e) and adding Subsection (h) to read
120-26   as follows:
120-27         (d)  The commission, in determining if the use or
 121-1   installation of an injection well for the disposal of hazardous
 121-2   waste is in the public interest under Subsection (a)(1) [of this
 121-3   section], shall consider, but shall not be limited to the
 121-4   consideration of:
 121-5               (1)  compliance history of the applicant under the
 121-6   method for evaluating compliance history developed by the
 121-7   commission under Section 5.754 and in accordance with the
 121-8   provisions of Subsection (e) [of this section];
 121-9               (2)  whether there is a practical, economic, and
121-10   feasible alternative to an injection well reasonably available to
121-11   manage the types and classes of hazardous waste; and
121-12               (3)  whether the applicant will maintain sufficient
121-13   public liability insurance for bodily injury and property damage to
121-14   third parties that is caused by sudden and non-sudden accidents or
121-15   will otherwise demonstrate financial responsibility in a manner
121-16   adopted by the commission in lieu of public liability insurance.  A
121-17   liability insurance policy which satisfies the policy limits
121-18   required by the hazardous waste management regulations of the
121-19   commission for the applicant's proposed pre-injection facilities
121-20   shall be deemed "sufficient" under this subdivision if the policy:
121-21                     (A)  covers the injection well; and
121-22                     (B)  is issued by a company that is authorized to
121-23   do business and to write that kind of insurance in this state and
121-24   is solvent and not currently under supervision or in
121-25   conservatorship or receivership in this state or any other state.
121-26         (e)  Consistent with Sections 5.753 and 5.754 and rules
121-27   adopted and procedures developed under those sections, the [The]
 122-1   commission shall establish a procedure for preparing summaries of
 122-2   the applicant's compliance history [by rule for its preparation of
 122-3   compliance summaries relating to the history of compliance and
 122-4   noncompliance by the applicant with the rules adopted or orders or
 122-5   permits issued by the commission under this chapter for any
 122-6   injection well for which a permit has been issued under this
 122-7   chapter].  The [compliance] summaries shall be made available to
 122-8   the applicant and any interested person after the commission has
 122-9   completed its technical review of the permit application and prior
122-10   to the promulgation of the public notice relating to the issuance
122-11   of the permit.  Evidence of compliance or noncompliance by an
122-12   applicant for an injection well for the disposal of hazardous waste
122-13   with the rules adopted or orders or permits issued by the
122-14   commission under this chapter may be offered by any party at a
122-15   hearing on the applicant's application and admitted into evidence
122-16   subject to applicable rules of evidence.  In accordance with this
122-17   subsection and Sections 5.753 and 5.754 and rules adopted and
122-18   procedures developed under those sections, evidence of the
122-19   compliance history of an applicant for an injection well may be
122-20   offered at a hearing on the application and may be admitted into
122-21   evidence, subject to the rules of evidence.  All evidence admitted,
122-22   including compliance history, shall be considered by the commission
122-23   in determining whether to issue, amend, extend or renew a permit.
122-24         (h)  In determining whether the use or installation of an
122-25   injection well is in the public interest under Subsection (a)(1),
122-26   the commission shall consider the compliance history of the
122-27   applicant in accordance with Subsection (e) and Sections 5.753 and
 123-1   5.754 and rules adopted and procedures developed under those
 123-2   sections.
 123-3         SECTION 16.09. Section 361.020(d), Health and Safety Code, is
 123-4   amended to read as follows:
 123-5         (d)  The commission in developing a comprehensive statewide
 123-6   strategic plan shall:
 123-7               (1)  consult with:
 123-8                     (A)  the agency's waste minimization, recycling,
 123-9   or reduction division;
123-10                     (B)  the municipal solid waste management and
123-11   resource recovery advisory council;
123-12                     (C)  the pollution prevention [waste reduction]
123-13   advisory committee;
123-14                     (D)  the interagency coordinating council; and
123-15                     (E)  local governments, appropriate regional and
123-16   state agencies, businesses, citizen groups, and private waste
123-17   management firms;
123-18               (2)  hold public hearings in different regions of the
123-19   state; and
123-20               (3)  publish the proposed plan in the Texas Register.
123-21         SECTION 16.10. Sections 361.084(a) and (c), Health and Safety
123-22   Code, are amended to read as follows:
123-23         (a)  The commission by rule shall establish a procedure to
123-24   prepare compliance summaries relating to the applicant's solid
123-25   waste management activities in accordance with the method for
123-26   evaluating compliance history developed by the commission under
123-27   Section 5.754, Water Code.
 124-1         (c)  Evidence of compliance or noncompliance by an applicant
 124-2   for a solid waste management facility permit with agency rules,
 124-3   permits, other orders, or evidence of a final determination of
 124-4   noncompliance with federal statutes or statutes of any state [in
 124-5   the preceding five years] concerning solid waste management may be:
 124-6               (1)  offered by a party at a hearing concerning the
 124-7   application; and
 124-8               (2)  admitted into evidence subject to applicable rules
 124-9   of evidence.
124-10         SECTION 16.11. Section 361.088(f), Health and Safety Code, is
124-11   amended to read as follows:
124-12         (f)  Notwithstanding Subsection (e), if the commission
124-13   determines that an applicant's compliance history under the method
124-14   for evaluating compliance history developed by the commission under
124-15   Section 5.754, Water Code, [for the preceding five years] raises an
124-16   issue regarding the applicant's ability to comply with a material
124-17   term of its permit, the commission shall provide an opportunity to
124-18   request a contested case hearing.
124-19         SECTION 16.12. Sections 361.089(a), (e), and (f), Health and
124-20   Safety Code, are amended to read as follows:
124-21         (a)  The commission may, for good cause, deny or amend a
124-22   permit it issues or has authority to issue for reasons pertaining
124-23   to public health, air or water pollution, or land use, or for
124-24   having a compliance history that is in the lowest classification
124-25   under Sections 5.753 and 5.754, Water Code, and rules adopted and
124-26   procedures developed under those sections [a violation of this
124-27   chapter or other applicable laws or rules controlling the
 125-1   management of solid waste].
 125-2         (e)  The commission may deny an original or renewal permit if
 125-3   it is found, after notice and hearing, that:
 125-4               (1)  the applicant or permit holder has a compliance
 125-5   history that is in the lowest classification under Sections 5.753
 125-6   and 5.754, Water Code, and rules adopted and procedures developed
 125-7   under those sections [record of environmental violations in the
 125-8   preceding five years at the permitted site;]
 125-9               [(2)  the applicant has a record of environmental
125-10   violations in the preceding five years at any site owned, operated,
125-11   or controlled by the applicant];
125-12               (2) [(3)]  the permit holder or applicant made a false
125-13   or misleading statement in connection with an original or renewal
125-14   application, either in the formal application or in any other
125-15   written instrument relating to the application submitted to the
125-16   commission, its officers, or its employees;
125-17               (3) [(4)]  the permit holder or applicant is indebted
125-18   to the state for fees, payment of penalties, or taxes imposed by
125-19   this title or by a rule of the commission; or
125-20               (4) [(5)]  the permit holder or applicant is unable to
125-21   ensure that the management of the hazardous waste management
125-22   facility conforms or will conform to this title and the rules of
125-23   the commission.
125-24         (f)  Before denying a permit under this section, the
125-25   commission must find:
125-26               (1)  that the applicant or permit holder has a
125-27   compliance history that is in the lowest classification under
 126-1   Sections 5.753 and 5.754, Water Code, and rules adopted and
 126-2   procedures developed under those sections [a violation or
 126-3   violations are significant and that the permit holder or applicant
 126-4   has not made a substantial attempt to correct the violations]; or
 126-5               (2)  that the permit holder or applicant is indebted to
 126-6   the state for fees, payment of penalties, or taxes imposed by this
 126-7   title or by a rule of the commission.
 126-8         SECTION 16.13. Sections 382.0518(b) and (c), Health and
 126-9   Safety Code, are amended to read as follows:
126-10         (b)  The commission shall grant within a reasonable time a
126-11   permit to construct or modify a facility if, from the information
126-12   available to the commission, including information presented at any
126-13   hearing held under Section 382.056(k) [382.056(d)], the commission
126-14   finds:
126-15               (1)  the proposed facility for which a permit or a
126-16   special permit is sought will use at least the best available
126-17   control technology, considering the technical practicability and
126-18   economic reasonableness of reducing or eliminating the emissions
126-19   resulting from the facility; and
126-20               (2)  no indication that the emissions from the facility
126-21   will contravene the intent of this chapter, including protection of
126-22   the public's health and physical property.
126-23         (c)  In considering the issuance, amendment, or renewal of a
126-24   permit, the commission may consider the applicant's compliance
126-25   history in accordance with the method for evaluating compliance
126-26   history developed by the commission under Section 5.754, Water Code
126-27   [any adjudicated decision or compliance proceeding within the five
 127-1   years before the date on which the application was filed that
 127-2   addressed the applicant's past performance and compliance with the
 127-3   laws of this state, another state, or the United States governing
 127-4   air contaminants or with the terms of any permit or order issued by
 127-5   the commission].
 127-6         SECTION 16.14. Section 382.055(d), Health and Safety Code, is
 127-7   amended to read as follows:
 127-8         (d)  In determining whether and under which conditions a
 127-9   preconstruction permit should be renewed, the commission shall
127-10   consider, at a minimum:
127-11               (1)  [whether] the performance of the owner or operator
127-12   of the facility according to the method developed by the commission
127-13   under Section 5.754, Water Code [is or has been in substantial
127-14   compliance with this chapter and the terms of the existing permit];
127-15   and
127-16               (2)  the condition and effectiveness of existing
127-17   emission control equipment and practices.
127-18         SECTION 16.15. Section 382.056(o), Health and Safety Code, is
127-19   amended to read as follows:
127-20         (o)  Notwithstanding other provisions of this chapter, the
127-21   commission may hold a hearing on a permit amendment, modification,
127-22   or renewal if the commission determines that the application
127-23   involves a facility for which the applicant's compliance history is
127-24   in the lowest classification under Sections 5.753 and 5.754, Water
127-25   Code, and rules adopted and procedures developed under those
127-26   sections [contains violations which are unresolved and which
127-27   constitute a recurring pattern of egregious conduct which
 128-1   demonstrates a consistent disregard for the regulatory process,
 128-2   including the failure to make a timely and substantial attempt to
 128-3   correct the violations].
 128-4         SECTION 16.16. Section 401.110, Health and Safety Code, is
 128-5   amended to read as follows:
 128-6         Sec. 401.110.  DETERMINATION ON LICENSE. In making a
 128-7   determination whether to grant, deny, amend, revoke, suspend, or
 128-8   restrict a license or registration, the [department or] commission
 128-9   may consider [those aspects of] an applicant's or license holder's
128-10   [background that bear materially on the ability to fulfill the
128-11   obligations of licensure, including] technical competence and
128-12   compliance history under the method for evaluation of compliance
128-13   history developed by the commission under Section 5.754, Water Code
128-14   [the applicant's or license holder's record in areas involving
128-15   radiation].
128-16         SECTION 16.17. Section 401.112(a), Health and Safety Code, is
128-17   amended to read as follows:
128-18         (a)  The department or commission, within its jurisdiction,
128-19   in making a licensing decision on a specific license application to
128-20   process or dispose of low-level radioactive waste from other
128-21   persons, shall consider:
128-22               (1)  site suitability, geological, hydrological, and
128-23   meteorological factors, and natural hazards;
128-24               (2)  compatibility with present uses of land near the
128-25   site;
128-26               (3)  socioeconomic effects on surrounding communities
128-27   of operation of the licensed activity and of associated
 129-1   transportation of low-level radioactive waste;
 129-2               (4)  the need for and alternatives to the proposed
 129-3   activity, including an alternative siting analysis prepared by the
 129-4   applicant;
 129-5               (5)  the applicant's qualifications, including
 129-6   financial and[,] technical qualifications[,] and compliance history
 129-7   under the method for evaluation of compliance history developed by
 129-8   the commission under Section 5.754, Water Code [past operating
 129-9   practices];
129-10               (6)  background monitoring plans for the proposed site;
129-11               (7)  suitability of facilities associated with the
129-12   proposed activities;
129-13               (8)  chemical, radiological, and biological
129-14   characteristics of the low-level radioactive waste and waste
129-15   classification under Section 401.053;
129-16               (9)  adequate insurance of the applicant to cover
129-17   potential injury to any property or person, including potential
129-18   injury from risks relating to transportation;
129-19               (10)  training programs for the applicant's employees;
129-20               (11)  a monitoring, record-keeping, and reporting
129-21   program;
129-22               (12)  spill detection and cleanup plans for the
129-23   licensed site and related to associated transportation of low-level
129-24   radioactive waste;
129-25               (13)  decommissioning and postclosure care plans;
129-26               (14)  security plans;
129-27               (15)  worker monitoring and protection plans;
 130-1               (16)  emergency plans; and
 130-2               (17)  a monitoring program for applicants that includes
 130-3   prelicense and postlicense monitoring of background radioactive and
 130-4   chemical characteristics of the soils, groundwater, and vegetation.
 130-5          ARTICLE 17.  REGULATION OF DISPOSAL OF ANIMAL REMAINS
 130-6         SECTION 17.01.  Subchapter H, Chapter 801, Occupations Code,
 130-7   is amended by adding Section 801.361 to read as follows:
 130-8         Sec. 801.361.  DISPOSAL OF ANIMAL REMAINS. (a)  A
 130-9   veterinarian may dispose of the remains of an animal by burial or
130-10   burning if:
130-11               (1)  the burial or burning occurs on property owned by
130-12   the veterinarian; and
130-13               (2)  the veterinarian does not charge for the burning
130-14   or burial.
130-15         (b)  Notwithstanding any other law, the Texas Natural
130-16   Resource Conservation Commission may not adopt a rule that
130-17   prohibits conduct authorized by this section.
130-18         (c)  This section applies only in a county with a population
130-19   of less than 10,000.
130-20                ARTICLE 18.  TRANSITIONS; EFFECTIVE DATE
130-21         SECTION 18.01.  CHANGE OF AGENCY NAME. (a)  Effective January
130-22   1, 2004:
130-23               (1)  the name of the Texas Natural Resource
130-24   Conservation Commission is changed to the Texas Commission on
130-25   Environmental Quality, and all powers, duties, rights, and
130-26   obligations of the Texas Natural Resource Conservation Commission
130-27   are the powers, duties, rights, and obligations of the Texas
 131-1   Commission on Environmental Quality;
 131-2               (2)  a member of the Texas Natural Resource
 131-3   Conservation Commission is a member of the board of the Texas
 131-4   Commission on Environmental Quality;
 131-5               (3)  all personnel, equipment, data, documents,
 131-6   facilities, and other items of the Texas Natural Resource
 131-7   Conservation Commission are transferred to the agency under its new
 131-8   name; and
 131-9               (4)  any appropriation to the Texas Natural Resource
131-10   Conservation Commission is automatically an appropriation to the
131-11   Texas Commission on Environmental Quality.
131-12         (b)  Effective January 1, 2004, a reference in law to the
131-13   Texas Natural Resource Conservation Commission is a reference to
131-14   the Texas Commission on Environmental Quality.
131-15         (c)  The Texas Natural Resource Conservation Commission shall
131-16   adopt a timetable for phasing in the change of the agency's name so
131-17   as to minimize the fiscal impact of the name change.  Until January
131-18   1, 2004, to allow for phasing in the change of the agency's name
131-19   and in accordance with the timetable established as required by
131-20   this section, the agency may perform any act authorized by law for
131-21   the Texas Natural Resource Conservation Commission as the Texas
131-22   Natural Resource Conservation Commission or as the Texas Commission
131-23   on Environmental Quality.  Any act of the Texas Natural Resource
131-24   Conservation Commission acting as the Texas Commission on
131-25   Environmental Quality after the effective date of this Act and
131-26   before January 1, 2004, is an act of the Texas Natural Resource
131-27   Conservation Commission.
 132-1         SECTION 18.02.  TRANSFER OF SAFE DRINKING WATER LABORATORY
 132-2   CERTIFICATION PROGRAM. (a)  On the effective date of this Act, the
 132-3   following are transferred to the Texas Natural Resource
 132-4   Conservation Commission:
 132-5               (1)  all powers, duties, rights, and obligations of the
 132-6   Texas Department of Health relating to the safe drinking water
 132-7   laboratory certification program administered by the Texas
 132-8   Department of Health's bureau of laboratories;
 132-9               (2)  all personnel, equipment, data, documents,
132-10   facilities, and other items of the Texas Department of Health
132-11   relating to the safe drinking water laboratory certification
132-12   program; and
132-13               (3)  all appropriations to the Texas Department of
132-14   Health pertaining to the safe drinking water laboratory
132-15   certification program, and all other state or federal money
132-16   available to the Texas Department of Health for that program.
132-17         (b)  On the effective date of this Act, Texas Department of
132-18   Health rules relating to the safe drinking water laboratory
132-19   certification program administered by the Texas Department of
132-20   Health's bureau of laboratories are the rules of the Texas Natural
132-21   Resource Conservation Commission until the commission adopts rules
132-22   to govern that program.
132-23         (c)  A certification issued by the Texas Department of Health
132-24   for a safe drinking water laboratory before September 1, 2001,
132-25   remains in effect until the date it expires or is revoked,
132-26   notwithstanding the change in law made by this section.
132-27         SECTION 18.03.  TRANSFER OF ENVIRONMENTAL TESTING LABORATORY
 133-1   CERTIFICATION PROGRAM. (a)  On the effective date of this Act, the
 133-2   following are transferred to the Texas Natural Resource
 133-3   Conservation Commission:
 133-4               (1)  all powers, duties, rights, and obligations of the
 133-5   Texas Department of Health relating to the environmental testing
 133-6   laboratory certification program administered by the Texas
 133-7   Department of Health under Chapter 421, Health and Safety Code;
 133-8               (2)  all personnel, equipment, data, documents,
 133-9   facilities, and other items of the Texas Department of Health
133-10   relating to the environmental testing laboratory certification
133-11   program; and
133-12               (3)  all appropriations to the Texas Department of
133-13   Health pertaining to the environmental laboratory certification
133-14   program, and all other state or federal money available to the
133-15   Texas Department of Health for that program.
133-16         (b)  On the effective date of this Act, Texas Department of
133-17   Health rules relating to the environmental testing laboratory
133-18   certification program administered by the Texas Department of
133-19   Health under Chapter 421, Health and Safety Code, are the rules of
133-20   the Texas Natural Resource Conservation Commission until the
133-21   commission adopts rules to govern that program.
133-22         (c)  A certification issued by the Texas Department of Health
133-23   before September 1, 2001, remains in effect until the date it
133-24   expires or is revoked, notwithstanding the change in law made by
133-25   this section and by this Act to Chapter 421, Health and Safety
133-26   Code.
133-27         (d)  The change in law made by the addition by this Act of
 134-1   Section 5.127, Water Code, relating to the acceptance of
 134-2   environmental testing laboratory results by the Texas Natural
 134-3   Resource Conservation Commission, applies only to environmental
 134-4   testing laboratory results submitted to the commission on or after
 134-5   the third anniversary of the date on which the commission publishes
 134-6   notice in the Texas Register that the commission's environmental
 134-7   laboratory testing program established under Subchapter R, Chapter
 134-8   5, Water Code, as added by this Act, has met the standards of the
 134-9   National Environmental Laboratory Accreditation Conference.
134-10         SECTION 18.04.  CERTIFICATION OF WATER TREATMENT SPECIALISTS.
134-11   (a)  On the effective date of this Act, the following are
134-12   transferred to the Texas Natural Resource Conservation Commission:
134-13               (1)  all powers, duties, rights, and obligations of the
134-14   Texas Department of Health relating to the certification of water
134-15   treatment specialists administered by the Texas Department of
134-16   Health under Section 3A, The Plumbing License Law (Article
134-17   6243-101, Vernon's Texas Civil Statutes);
134-18               (2)  all equipment, data, documents, facilities, and
134-19   other items of the Texas Department of Health relating to the
134-20   certification of water treatment specialists; and
134-21               (3)  all appropriations to the Texas Department of
134-22   Health pertaining to the certification of water treatment
134-23   specialists, and all other state or federal money available to the
134-24   Texas Department of Health for that program.
134-25         (b)  On the effective date of this Act, Texas Department of
134-26   Health rules relating to the certification of water treatment
134-27   specialists are the rules of the Texas Natural Resource
 135-1   Conservation Commission until the commission adopts rules to govern
 135-2   that program.
 135-3         SECTION 18.05.  PERFORMANCE-BASED REGULATION. (a)  Not later
 135-4   than February 1, 2002, the Texas Natural Resource Conservation
 135-5   Commission by rule shall establish the components of compliance
 135-6   history, as required by Section 5.753, Water Code, as added by this
 135-7   Act.
 135-8         (b)  Not later than September 1, 2002, the Texas Natural
 135-9   Resource Conservation Commission by rule shall establish the
135-10   standards for the classification and use of compliance history, as
135-11   required by Section 5.754, Water Code, as added by this Act.
135-12         (c)  Not later than September 1, 2003, the Texas Natural
135-13   Resource Conservation Commission by rule shall establish interim
135-14   incentives as part of the strategically directed regulatory
135-15   structure required by Section 5.755, Water Code, as added by this
135-16   Act.
135-17         (d)  Not later than September 1, 2005, the Texas Natural
135-18   Resource Conservation Commission by rule shall complete all rules
135-19   necessary for the strategically directed regulatory structure
135-20   required by Section 5.755, Water Code, as added by this Act.
135-21         (e)  The Texas Natural Resource Conservation Commission shall
135-22   report to the 78th and 79th legislatures regarding the
135-23   implementation of the strategically directed regulatory structure
135-24   required by Section 5.755, Water Code, as added by this Act.  The
135-25   reports must include recommendations regarding statutory
135-26   impediments to program implementation, progress in the development
135-27   of rules and incentives, participation in the program, changes in
 136-1   federal statutes and policies affecting implementation of the
 136-2   program, and benefits accruing to the environment from the program.
 136-3   A report required by this subsection shall be filed not later than
 136-4   December 15 of the year preceding the year in which the legislative
 136-5   session begins.
 136-6         (f)  The changes made by this Act in the consideration of
 136-7   compliance history in decisions by the Texas Natural Resource
 136-8   Conservation Commission relating to the issuance, amendment,
 136-9   modification, or renewal of permits under the following sections
136-10   apply only to an application for the issuance, amendment,
136-11   modification, or renewal of a permit submitted to the Texas Natural
136-12   Resource Conservation Commission on or after September 1, 2002:
136-13               (1)  Sections 5.754, 26.028, 26.0281, 26.040, and
136-14   27.018, Water Code; and
136-15               (2)  Sections 361.084, 361.088, 361.089, 382.0518,
136-16   382.055, 382.056, 401.110, and 401.112, Health and Safety Code.
136-17         (g)  For the purposes of consideration of compliance history
136-18   in decisions by the Texas Natural Resource Conservation Commission
136-19   relating to the issuance, amendment, modification, or renewal of a
136-20   permit under the sections listed under Subsection (f) of this
136-21   section, an application submitted before September 1, 2002, is
136-22   governed by the law as it existed immediately before September 1,
136-23   2001, and the former law is continued in effect for that purpose.
136-24         (h)  The changes made by this Act in the consideration of
136-25   compliance history in decisions by the Texas Natural Resource
136-26   Conservation Commission relating to inspections and flexible
136-27   permitting under Subchapter Q, Chapter 5, Water Code, as added by
 137-1   this Act apply, effective September 1, 2002, to an action taken by
 137-2   the Texas Natural Resource Conservation Commission that is subject
 137-3   to those sections.
 137-4         (i)  The changes made by this Act in the definition of
 137-5   compliance history apply to an action taken by the Texas Natural
 137-6   Resource Conservation Commission on or after February 1, 2002. An
 137-7   action taken by the Texas Natural Resource Conservation Commission
 137-8   before February 1, 2002, is governed by the law in effect on the
 137-9   date the action is taken, and the former law is continued in effect
137-10   for that purpose.
137-11         (j)  The changes made by this Act in the consideration of
137-12   compliance history in decisions of the Texas Natural Resource
137-13   Conservation Commission relating to the suspension or revocation of
137-14   a permit or the imposition of a penalty in a matter under the
137-15   jurisdiction of the commission apply only to a proceeding that is
137-16   initiated or an action that is brought on or after September 1,
137-17   2002. A proceeding that is initiated or an action that is brought
137-18   before September 1, 2002, is governed by the law in effect on the
137-19   date the proceeding is initiated or action is brought, and the
137-20   former law is continued in effect for that purpose.
137-21         (k)  For the period between September 1, 2002, and September
137-22   1, 2005, the Texas Natural Resource Conservation Commission by rule
137-23   may temporarily modify specific compliance history requirements to
137-24   implement the regulatory structure being developed under Subchapter
137-25   Q, Chapter 5, Water Code, as added by this Act.  This section does
137-26   not authorize the commission to modify existing statutory
137-27   requirements relating to the use of compliance history in any
 138-1   enforcement proceeding.
 138-2         SECTION 18.06.  FEES. (a)  The changes in law made by
 138-3   Sections 5.702 and 5.703, Water Code, as added by this Act,
 138-4   relating to the timely payment and adjustment of fees due the Texas
 138-5   Natural Resource Conservation Commission, and by Section 5.706,
 138-6   Water Code, as added by this Act, relating to penalties and
 138-7   interest for delinquent fees, apply only to fees that are due on or
 138-8   after September 1, 2001.
 138-9         (b)  The change in law made by this Act to Sections 26.0135
138-10   and 26.0291, Water Code, relating to the consolidation of certain
138-11   fees relating to water quality, takes effect September 1, 2002, and
138-12   applies only to fees due on or after that date.  The assessment and
138-13   collection of fees due before the effective date of this Act are
138-14   governed by the former law, and that law is continued in effect for
138-15   that purpose.  Water resource management account balances dedicated
138-16   to a particular purpose under Sections 26.0135 and 26.0291, Water
138-17   Code, as that law exists prior to the changes in law made by this
138-18   Act, that have not been expended before the effective date of this
138-19   Act may be used for the purposes authorized by this Act.
138-20         (c)  Water resource management account balances dedicated to
138-21   a particular purpose under the law as it exists prior to the
138-22   changes in law made by this Act to redesignated Sections 5.701(e),
138-23   (p), and (q), Water Code, and Sections 341.041(a), 366.058(a), and
138-24   366.059(b), Health and Safety Code, that have not been expended
138-25   before the effective date of this Act may be used for the purposes
138-26   authorized under this Act.
138-27         SECTION 18.07.  REGULATORY FLEXIBILITY. The change in law
 139-1   made by Section 5.123, Water Code, as added by Chapter 1203, Acts
 139-2   of the 75th Legislature, Regular Session, 1997, relating to
 139-3   regulatory flexibility, as transferred, redesignated, and amended
 139-4   by this Act, applies only to an application for regulatory
 139-5   flexibility that is submitted to the Texas Natural Resource
 139-6   Conservation Commission on or after September 1, 2001.
 139-7         SECTION 18.08.  COMMISSIONER TRAINING. (a)  As soon as
 139-8   practicable after September 1, 2001, but not later than December 1,
 139-9   2001, the Texas Natural Resource Conservation Commission shall
139-10   adopt rules to implement the training program for commission
139-11   members required by Section 5.0535, Water Code, as added by this
139-12   Act.
139-13         (b)  The training requirements of Section 5.0535, Water Code,
139-14   as added by this Act, apply only to a member of the commission who
139-15   is appointed on or after January 1, 2002.
139-16         SECTION 18.09.  EXECUTIVE DIRECTOR. The change in law made by
139-17   this Act to Section 5.228, Water Code, relating to hearing
139-18   appearances by the executive director of the Texas Natural Resource
139-19   Conservation Commission, applies only to a hearing in which the
139-20   executive director is named a party on or after September 1, 2001.
139-21         SECTION 18.10.  INITIATION OF ACTION ON CITIZEN INFORMATION.
139-22   (a)  Not later than December 1, 2001, the Texas Natural Resource
139-23   Conservation Commission shall adopt rules to implement the
139-24   requirements of Section 7.0025, Water Code, as added by this Act,
139-25   relating to the initiation of enforcement action by the commission
139-26   based on information regarding an environmental problem submitted
139-27   by a private individual.
 140-1         (b)  The change in law made by Section 7.0025, Water Code, as
 140-2   added by this Act, applies only to information regarding an
 140-3   environmental problem submitted to the Texas Natural Resource
 140-4   Conservation Commission on or after January 1, 2002.
 140-5         SECTION 18.11.  ADOPTION OF RULES REGARDING REGULATION OF
 140-6   CERTAIN FACILITIES AS SOLID WASTE FACILITIES. As soon as
 140-7   practicable after the effective date of this Act, the Texas Natural
 140-8   Resource Conservation Commission shall adopt rules as necessary to
 140-9   implement Section 361.119, Health and Safety Code, as added by this
140-10   Act.
140-11         SECTION 18.12.  JOINT INTERIM STUDY ON OFFICE OF NATURAL
140-12   RESOURCE PUBLIC INTEREST COUNSEL. A joint interim study shall be
140-13   conducted by a joint committee consisting of five members of the
140-14   senate appointed by the lieutenant governor and five members of the
140-15   house of representatives appointed by the speaker of the house.
140-16   The committee shall study and report to the 78th Legislature on the
140-17   issues associated with establishing an Office of Natural Resource
140-18   Public Interest Counsel.  The issues addressed shall include:
140-19               (1)  the authority of the office of public interest
140-20   counsel, including the authority to appeal decisions of the Texas
140-21   Natural Resource Conservation Commission;
140-22               (2)  resources needed to carry out the functions of the
140-23   office; and
140-24               (3)  the relationship of the office to other public
140-25   assistance efforts in the agency and the need for an agency
140-26   ombudsman.
140-27         SECTION 18.13.  CONTAINMENT SYSTEMS REQUIRED FOR CERTAIN
 141-1   UNDERGROUND STORAGE TANKS. The change in law made by Section
 141-2   26.3476, Water Code, as added by this Act, applies only to an
 141-3   underground storage tank system that is installed, upgraded, or
 141-4   replaced on or after the effective date of this Act.
 141-5         SECTION 18.14.  EMISSIONS EVENTS.  The purpose of Sections
 141-6   382.0215 and 382.0216, Health and Safety Code, as added by this
 141-7   Act, is to add new or more stringent requirements regarding upsets,
 141-8   startups, shutdowns, and maintenance.  Those sections may not be
 141-9   construed as limiting the existing authority of the Texas Natural
141-10   Resource Conservation Commission under Chapter 382, Health and
141-11   Safety Code, to require the reporting or the permitting of the
141-12   emission of air contaminants or to bring enforcement action for a
141-13   violation of Chapter 382.  Those sections are not intended to limit
141-14   any right that may exist under federal law for a person to seek
141-15   injunctive relief.
141-16         SECTION 18.15.  EFFECTIVE DATE. Except as otherwise provided
141-17   by this Act, this Act takes effect September 1, 2001.
141-18                    ARTICLE 19.  ENVIRONMENTAL HEALTH
141-19         SECTION 19.01. Title 5, Health and Safety Code, is amended by
141-20   adding Subtitle G to read as follows:
141-21                    SUBTITLE G.  ENVIRONMENTAL HEALTH
141-22           CHAPTER 427.  TEXAS ENVIRONMENTAL HEALTH INSTITUTE
141-23         Sec. 427.001. In this chapter:
141-24               (1)  "Board" means the Texas Board of Health.
141-25               (2)  "Commission" means the Texas Natural Resource
141-26   Conservation Commission.
141-27               (3)  "Department" means the Texas Department of Health.
 142-1               (4)  "Federal superfund site" means a site defined by
 142-2   the federal Comprehensive Environmental Response, Compensation, and
 142-3   Liability Act of 1980 (42 U.S.C. Section 9601 et seq.), as amended.
 142-4               (5)  "Immediately surrounding area" means an area
 142-5   determined by the commission to have been significantly exposed to
 142-6   one or more pollutants from the identified site.
 142-7               (6)  "Institute" means the Texas Environmental Health
 142-8   Institute.
 142-9         Sec. 427.002.  TEXAS ENVIRONMENTAL HEALTH INSTITUTE. The
142-10   commission shall enter into an agreement with the department to
142-11   jointly establish the Texas Environmental Health Institute in order
142-12   to examine ways to identify, treat, manage, prevent, and reduce
142-13   health problems associated with environmental contamination.
142-14         Sec. 427.003.  PURPOSES. The purposes of the institute are
142-15   to:
142-16               (1)  develop a statewide plan to identify health
142-17   conditions, related or potentially related to environmental
142-18   contamination, of residents of this state who live or have lived
142-19   within the immediately surrounding area of a federal superfund site
142-20   or a state superfund site;
142-21               (2)  develop a plan to promote and protect the health
142-22   and safety of residents in immediately surrounding areas by
142-23   preventing or reducing their health risks from exposure to chemical
142-24   and biological contaminants, radioactive materials, and other
142-25   hazards in the environment and the workplace;
142-26               (3)  develop a plan for informing and educating
142-27   citizens in immediately surrounding areas about the identified
 143-1   health risks and ways to prevent or reduce exposure;
 143-2               (4)  identify private and federal funding opportunities
 143-3   for institute operations; and
 143-4               (5)  conduct, coordinate, or pursue funding for
 143-5   research concerning short-term and long-term impacts of exposure to
 143-6   environmental contamination.
 143-7         Sec. 427.004.  PROGRAMS. The commission and the department
 143-8   may establish at the institute any programs necessary to carry out
 143-9   the institute's established purposes under this chapter.  The
143-10   commission and the board may contract with public or private
143-11   entities to carry out the institute's purposes.
143-12         Sec. 427.005.  GIFTS AND GRANTS. The commission and the
143-13   department may accept and administer gifts and grants to fund the
143-14   institute from any individual, corporation, trust, or foundation or
143-15   the United States, subject to limitations or conditions imposed by
143-16   law.
143-17         Sec. 427.006.  PILOT PROJECT. (a)  The institute shall
143-18   conduct a pilot project at the RSR West Dallas site and at the
143-19   Cadillac Heights site.  The project may include health screenings
143-20   and assessments.
143-21         (b)  The institute may enter into a memorandum of
143-22   understanding with the commission and the department for toxic
143-23   screening, pollutant assessment, toxicologist services, or any
143-24   other appropriate service to be provided by the agencies, as
143-25   necessary.
143-26         (c)  The institute shall use information gathered through the
143-27   pilot project to assist in developing its plan for implementing the
 144-1   institute's purposes under this chapter.
 144-2         (d)  The pilot project shall be conducted for two years
 144-3   beginning on September 1, 2001.  The institute shall submit to the
 144-4   78th Legislature a report on the results of the pilot project and
 144-5   the development and implementation of the statewide plan and the
 144-6   further organization of the institute.
 144-7                ARTICLE 20.  OTHER REGULATORY PROVISIONS
 144-8         SECTION 20.01. Subchapter K, Chapter 13, Water Code, is
 144-9   amended by adding Section 13.4115 to read as follows:
144-10         Sec. 13.4115.  ACTION TO REQUIRE ADJUSTMENT TO CONSUMER
144-11   CHARGE; PENALTY. In regard to a customer complaint arising out of a
144-12   charge made by a public utility, if the executive director finds
144-13   that the utility has failed to make the proper adjustment to the
144-14   customer's bill after the conclusion of the complaint process
144-15   established by the commission, the commission may issue an order
144-16   requiring the utility to make the adjustment.  Failure to comply
144-17   with the order within 30 days of receiving the order is a violation
144-18   for which the commission may impose an administrative penalty under
144-19   Section 13.4151.
144-20         SECTION 20.02. Section 51.149, Water Code, is amended to read
144-21   as follows:
144-22         Sec. 51.149.  CONTRACTS. (a)  Notwithstanding Section
144-23   49.108(e), no approval other than that specified in Subsection (c)
144-24   need be obtained in order for a contract between a district and a
144-25   municipality to be valid, binding, and enforceable against all
144-26   parties to the contract.  After approval by a majority of the
144-27   electors voting at an election conducted in the manner of a bond
 145-1   election, a district may make payments under a contract from taxes
 145-2   for debt that does not exceed 30 years.
 145-3         (b) [(d)]  A contract may provide that the district will make
 145-4   payments under the contract from proceeds from the sale of notes or
 145-5   bonds, from taxes, from any other income of the district, or from
 145-6   any combination of these.
 145-7         (c) [(e)]  A district may make payments under a contract from
 145-8   taxes, other than maintenance taxes, after the provisions of the
 145-9   contract have been approved by a majority of the electors voting at
145-10   an election held for that purpose.
145-11         (d) [(f)]  Any contract election may be held at the same time
145-12   as and in conjunction with an election to issue bonds, and the
145-13   procedure for calling the election, giving notice, conducting the
145-14   election, and canvassing the returns shall be the same as the
145-15   procedure for a bond election.
145-16         SECTION 20.03. Subchapter D, Chapter 366, Health and Safety
145-17   Code, is amended by adding Section 366.0512 to read as follows:
145-18         Sec. 366.0512.  MULTIPLE TREATMENT SYSTEMS. A multiple system
145-19   of treatment devices and disposal facilities may be permitted as an
145-20   on-site disposal system under this chapter if the system:
145-21               (1)  is located on a tract of land of at least 100
145-22   acres in size;
145-23               (2)  produces not more than 5,000 gallons a day on an
145-24   annual average basis;
145-25               (3)  is used only on a seasonal or intermittent basis;
145-26   and
145-27               (4)  is used only for disposal of sewage produced on
 146-1   the tract of land on which any part of the system is located.
         _______________________________     _______________________________
             President of the Senate              Speaker of the House
               I certify that H.B. No. 2912 was passed by the House on
         April 20, 2001, by a non-record vote; that the House refused to
         concur in Senate amendments to H.B. No. 2912 on May 17, 2001, and
         requested the appointment of a conference committee to consider the
         differences between the two houses; and that the House adopted the
         conference committee report on H.B. No. 2912 on May 27, 2001, by
         the following vote:  Yeas 100, Nays 42, 2 present, not voting; and
         that the House adopted H.C.R. No. 331 authorizing certain
         corrections in H.B. No. 2912 on May 28, 2001, by a non-record vote.
                                             _______________________________
                                                 Chief Clerk of the House
               I certify that H.B. No. 2912 was passed by the Senate, with
         amendments, on May 14, 2001, by a viva-voce vote; at the request of
         the House, the Senate appointed a conference committee to consider
         the differences between the two houses; and that the Senate adopted
         the conference committee report on H.B. No. 2912 on May 27, 2001,
         by a viva-voce vote; and that the Senate adopted H.C.R. No. 331
         authorizing certain corrections in H.B. No. 2912 on May 28, 2001,
         by a viva-voce vote.
                                             _______________________________
                                                 Secretary of the Senate
         APPROVED:  __________________________
                              Date
                    __________________________
                            Governor