By Callegari, Chisum                                  H.B. No. 2997
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to the implementation by the Texas Natural Resource
 1-3     Conservation Commission of a program to encourage the use of
 1-4     environmental management systems.
 1-5           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-6           SECTION 1. Subchapter D, Chapter 5, Water Code, is amended by
 1-7     adding Section 5.127 to read as follows:
 1-8           Sec. 5.127.  ENVIRONMENTAL MANAGEMENT SYSTEMS. (a)  In this
 1-9     section, "environmental management system" means a documented
1-10     management system to address applicable environmental regulatory
1-11     requirements that includes organizational structure, planning
1-12     activities, responsibilities, practices, procedures, processes, and
1-13     resources for developing, implementing, achieving, reviewing, and
1-14     maintaining an environmental policy directed toward continuous
1-15     improvement.
1-16           (b)  The commission by rule shall adopt a comprehensive
1-17     program that provides regulatory incentives to encourage the use of
1-18     environmental management systems by regulated entities, state
1-19     agencies, local governments, and  other entities as determined by
1-20     the commission. The incentives may include:
1-21                 (1)  on-site technical assistance;
1-22                 (2)  accelerated access to information about programs;
1-23     and
1-24                 (3)  to the extent consistent with federal
 2-1     requirements:
 2-2                       (A)  inclusion of information regarding an
 2-3     entity's use of an environmental management system in the entity's
 2-4     compliance history and compliance summaries; and
 2-5                       (B)  consideration of the entity's implementation
 2-6     of an environmental management system in scheduling and conducting
 2-7     compliance inspections.
 2-8           (c)  The rules must provide that an environmental management
 2-9     system, at a minimum, must require the entity implementing the
2-10     system to:
2-11                 (1)  adopt a written environmental policy;
2-12                 (2)  identify the environmental aspects and impacts of
2-13     the entity's activities;
2-14                 (3)  set priorities, goals, and targets for continuous
2-15     improvement in environmental performance and for ensuring
2-16     compliance with environmental laws, regulations, and permit terms
2-17     applicable to the facility;
2-18                 (4)  assign clear responsibilities for implementation,
2-19     training, monitoring, and corrective action and for ensuring
2-20     compliance with environmental laws, regulations, and permit terms
2-21     applicable to the facility;
2-22                 (5)  document implementation of procedures and results;
2-23     and
2-24                 (6)  evaluate and refine implementation over time to
2-25     improve attainment of environmental goals and targets and the
2-26     system itself.
2-27           (d)  The commission shall:
 3-1                 (1)  integrate the use of environmental management
 3-2     systems into its regulatory programs, including permitting,
 3-3     compliance assistance, and enforcement;
 3-4                 (2)  develop model environmental management systems for
 3-5     small businesses and local governments; and
 3-6                 (3)  establish environmental performance indicators to
 3-7     measure the program's performance.
 3-8           SECTION 2. Section 26.028, Water Code, is amended by adding a
 3-9     new Subsection (e) and relettering existing Subsections (e)-(g) as
3-10     Subsections (f)-(h) to read as follows:
3-11           (e)  In considering an applicant's compliance history under
3-12     Subsection (d)(4), the commission shall consider as evidence of
3-13     compliance information regarding the applicant's implementation of
3-14     an environmental management system at the facility for which the
3-15     permit, permit amendment, or permit renewal is sought.  In this
3-16     subsection, "environmental management system" has the meaning
3-17     assigned by Section 5.127.
3-18           (f)  Notice of an application under Subsection (d) shall be
3-19     mailed to the mayor and health authorities for the city or town,
3-20     and the county judge and health authorities for the county in which
3-21     the waste is or will be discharged, at least 10 days before the
3-22     commission meeting, and they may present information to the
3-23     commission on the application.
3-24           (g) [(f)]  An application to renew a permit for a confined
3-25     animal feeding operation which was issued between July 1, 1974, and
3-26     December 31, 1977, may be set for consideration and may be acted on
3-27     by the commission at a regular meeting without the necessity of
 4-1     holding a public hearing if the applicant does not seek to
 4-2     discharge into or adjacent to water in the state and does not seek
 4-3     to change materially the pattern or place of disposal.
 4-4           (h) [(g)]  For the purposes of Subsection (c), the commission
 4-5     may act on the application without holding a public hearing if all
 4-6     of the following conditions are met:
 4-7                 (1)  not less than 30 days before the date of action on
 4-8     the application by the commission, the applicant has published the
 4-9     commission's notice of the application at least once in a newspaper
4-10     regularly published or circulated within each county where the
4-11     proposed facility or discharge is located and in each county
4-12     affected by the discharge;
4-13                 (2)  not less than 30 days before the date of action on
4-14     the application by the commission, the applicant has served or
4-15     mailed the commission's notice of the application to persons who in
4-16     the judgment of the commission may be affected, including the
4-17     county judges as required by Subsection (b) [of this section].  As
4-18     part of his application the applicant shall submit an affidavit
4-19     which lists the names and addresses of the persons who may be
4-20     affected by the application and includes the source of the list;
4-21                 (3)  within 30 days after the date of the newspaper
4-22     publication of the commission's notice, neither a commissioner, the
4-23     executive director, nor an affected person who objects to the
4-24     application has requested a public hearing.
4-25           SECTION 3. Section 26.0281, Water Code, is amended to read as
4-26     follows:
4-27           Sec. 26.0281.  CONSIDERATION OF PAST PERFORMANCE AND
 5-1     COMPLIANCE. In considering the issuance, amendment, or renewal of a
 5-2     permit to discharge effluent comprised primarily of sewage or
 5-3     municipal waste, the commission shall consider any adjudicated
 5-4     decision on or compliance proceeding addressing past performance
 5-5     and compliance of the applicant and its operator with the laws of
 5-6     this state governing waste discharge, waste treatment, or waste
 5-7     disposal facilities and with the terms of any permit or order
 5-8     issued by the commission.  In considering an applicant's compliance
 5-9     history under this subsection, the commission shall consider as
5-10     evidence of compliance information regarding the applicant's
5-11     implementation of an environmental management system at the
5-12     facility for which the permit, permit amendment, or permit renewal
5-13     is sought.  In this section, "environmental management system" has
5-14     the meaning assigned by Section 5.127.
5-15           SECTION 4. Section 27.051(e), Water Code, is amended to read
5-16     as follows:
5-17           (e)  The commission shall establish a procedure by rule for
5-18     its preparation of compliance summaries relating to the history of
5-19     compliance and noncompliance by the applicant with the rules
5-20     adopted or orders or permits issued by the commission under this
5-21     chapter for any injection well for which a permit has been issued
5-22     under this chapter.  A compliance summary must include as evidence
5-23     of compliance information regarding the applicant's implementation
5-24     of an environmental management system at the facility for which an
5-25     authorization is sought.  The compliance summaries shall be made
5-26     available to the applicant and any interested person after the
5-27     commission has completed its technical review of the permit
 6-1     application and prior to the promulgation of the public notice
 6-2     relating to the issuance of the permit.  Evidence of compliance or
 6-3     noncompliance by an applicant for an injection well for the
 6-4     disposal of hazardous waste with the rules adopted or orders or
 6-5     permits issued by the commission under this chapter may be offered
 6-6     by any party at a hearing on the applicant's application and
 6-7     admitted into evidence subject to applicable rules of evidence. All
 6-8     evidence admitted, including compliance history, shall be
 6-9     considered by the commission in determining whether to issue,
6-10     amend, extend or renew a permit. In this subsection, "environmental
6-11     management system" has the meaning assigned by Section 5.127.
6-12           SECTION 5. Section 361.084(a), Health and Safety Code, is
6-13     amended to read as follows:
6-14           (a)  The commission by rule shall establish a procedure to
6-15     prepare compliance summaries relating to the applicant's solid
6-16     waste management activities.  A compliance summary shall include as
6-17     evidence of compliance information regarding the applicant's
6-18     implementation of an environmental management system at the
6-19     facility for which the authorization is sought.  In this
6-20     subsection, "environmental management system" has the meaning
6-21     assigned by Section 5.127, Water Code.
6-22           SECTION 6. Section 382.0518(c), Health and Safety Code, is
6-23     amended to read as follows:
6-24           (c)  In considering the issuance, amendment, or renewal of a
6-25     permit, the commission may consider any adjudicated decision or
6-26     compliance proceeding within the five years before the date on
6-27     which the application was filed that addressed the applicant's past
 7-1     performance and compliance with the laws of this state, another
 7-2     state, or the United States governing air contaminants or with the
 7-3     terms of any permit or order issued by the commission.  In
 7-4     considering an applicant's compliance history under this
 7-5     subsection, the commission shall consider as evidence of compliance
 7-6     information regarding the applicant's implementation of an
 7-7     environmental management system at the facility for which the
 7-8     permit, permit amendment, or  permit renewal is sought.  In this
 7-9     subsection, "environmental management system" has the meaning
7-10     assigned by Section 5.127, Water Code.
7-11           SECTION 7.  (a)  Not later than December 1, 2001, the Texas
7-12     Natural Resource Conservation Commission shall adopt the rules
7-13     required by Section 5.127, Water Code, as added by this Act.
7-14           (b)  The changes in law made by this Act by amending Sections
7-15     26.028, 26.0281, and 27.051(e), Water Code, and Sections 361.084(a)
7-16     and 382.0518(c), Health and Safety Code, apply only to an
7-17     application for a permit, permit modification, permit amendment,
7-18     permit revision, permit reopening, or permit renewal that is filed
7-19     with the Texas Natural Resource Conservation Commission on or after
7-20     the date on which the commission publishes in the Texas Register
7-21     the final rules adopted under Section 5.127, Water Code, as added
7-22     by this Act.
7-23           SECTION 8.  This Act takes effect September 1, 2001.