77R11765 MI-D                           
         By Callegari                                          H.B. No. 2997
         Substitute the following for H.B. No. 2997:
         By Chisum                                         C.S.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;
2-16                 (4)  assign clear responsibilities for implementation,
2-17     training, monitoring, and corrective action;
2-18                 (5)  document implementation of procedures and results;
2-19     and
2-20                 (6)  evaluate and refine implementation over time to
2-21     improve attainment of environmental goals and targets and the
2-22     system itself.
2-23           (d)  The commission shall:
2-24                 (1)  integrate the use of environmental management
2-25     systems into its regulatory programs, including permitting,
2-26     compliance assistance, and enforcement;
2-27                 (2)  develop model environmental management systems for
 3-1     small businesses and local governments; and
 3-2                 (3)  establish environmental performance indicators to
 3-3     measure the program's performance.
 3-4           SECTION 2. Section 26.028, Water Code, is amended by adding a
 3-5     new Subsection (e) and relettering existing Subsections (e)-(g) as
 3-6     Subsections (f)-(h) to read as follows:
 3-7           (e)  In considering an applicant's compliance history under
 3-8     Subsection (d)(4), the commission shall consider as evidence of
 3-9     compliance information regarding the applicant's implementation of
3-10     an environmental management system at the facility for which the
3-11     permit, permit amendment, or permit renewal is sought.  In this
3-12     subsection, "environmental management system" has the meaning
3-13     assigned by Section 5.127.
3-14           (f)  Notice of an application under Subsection (d) shall be
3-15     mailed to the mayor and health authorities for the city or town,
3-16     and the county judge and health authorities for the county in which
3-17     the waste is or will be discharged, at least 10 days before the
3-18     commission meeting, and they may present information to the
3-19     commission on the application.
3-20           (g) [(f)]  An application to renew a permit for a confined
3-21     animal feeding operation which was issued between July 1, 1974, and
3-22     December 31, 1977, may be set for consideration and may be acted on
3-23     by the commission at a regular meeting without the necessity of
3-24     holding a public hearing if the applicant does not seek to
3-25     discharge into or adjacent to water in the state and does not seek
3-26     to change materially the pattern or place of disposal.
3-27           (h) [(g)]  For the purposes of Subsection (c), the commission
 4-1     may act on the application without holding a public hearing if all
 4-2     of the following conditions are met:
 4-3                 (1)  not less than 30 days before the date of action on
 4-4     the application by the commission, the applicant has published the
 4-5     commission's notice of the application at least once in a newspaper
 4-6     regularly published or circulated within each county where the
 4-7     proposed facility or discharge is located and in each county
 4-8     affected by the discharge;
 4-9                 (2)  not less than 30 days before the date of action on
4-10     the application by the commission, the applicant has served or
4-11     mailed the commission's notice of the application to persons who in
4-12     the judgment of the commission may be affected, including the
4-13     county judges as required by Subsection (b) [of this section].  As
4-14     part of his application the applicant shall submit an affidavit
4-15     which lists the names and addresses of the persons who may be
4-16     affected by the application and includes the source of the list;
4-17                 (3)  within 30 days after the date of the newspaper
4-18     publication of the commission's notice, neither a commissioner, the
4-19     executive director, nor an affected person who objects to the
4-20     application has requested a public hearing.
4-21           SECTION 3. Section 26.0281, Water Code, is amended to read as
4-22     follows:
4-23           Sec. 26.0281.  CONSIDERATION OF PAST PERFORMANCE AND
4-24     COMPLIANCE. In considering the issuance, amendment, or renewal of a
4-25     permit to discharge effluent comprised primarily of sewage or
4-26     municipal waste, the commission shall consider any adjudicated
4-27     decision on or compliance proceeding addressing past performance
 5-1     and compliance of the applicant and its operator with the laws of
 5-2     this state governing waste discharge, waste treatment, or waste
 5-3     disposal facilities and with the terms of any permit or order
 5-4     issued by the commission.  In considering an applicant's compliance
 5-5     history under this subsection, the commission shall consider as
 5-6     evidence of compliance information regarding the applicant's
 5-7     implementation of an environmental management system at the
 5-8     facility for which the permit, permit amendment, or permit renewal
 5-9     is sought.  In this section, "environmental management system" has
5-10     the meaning assigned by Section 5.127.
5-11           SECTION 4. Section 27.051(e), Water Code, is amended to read
5-12     as follows:
5-13           (e)  The commission shall establish a procedure by rule for
5-14     its preparation of compliance summaries relating to the history of
5-15     compliance and noncompliance by the applicant with the rules
5-16     adopted or orders or permits issued by the commission under this
5-17     chapter for any injection well for which a permit has been issued
5-18     under this chapter.  A compliance summary must include as evidence
5-19     of compliance information regarding the applicant's implementation
5-20     of an environmental management system at the facility for which an
5-21     authorization is sought.  The compliance summaries shall be made
5-22     available to the applicant and any interested person after the
5-23     commission has completed its technical review of the permit
5-24     application and prior to the promulgation of the public notice
5-25     relating to the issuance of the permit.  Evidence of compliance or
5-26     noncompliance by an applicant for an injection well for the
5-27     disposal of hazardous waste with the rules adopted or orders or
 6-1     permits issued by the commission under this chapter may be offered
 6-2     by any party at a hearing on the applicant's application and
 6-3     admitted into evidence subject to applicable rules of evidence. All
 6-4     evidence admitted, including compliance history, shall be
 6-5     considered by the commission in determining whether to issue,
 6-6     amend, extend or renew a permit. In this subsection, "environmental
 6-7     management system" has the meaning assigned by Section 5.127.
 6-8           SECTION 5. Section 361.084(a), Health and Safety Code, is
 6-9     amended to read as follows:
6-10           (a)  The commission by rule shall establish a procedure to
6-11     prepare compliance summaries relating to the applicant's solid
6-12     waste management activities.  A compliance summary shall include as
6-13     evidence of compliance information regarding the applicant's
6-14     implementation of an environmental management system at the
6-15     facility for which the authorization is sought.  In this
6-16     subsection, "environmental management system" has the meaning
6-17     assigned by Section 5.127, Water Code.
6-18           SECTION 6. Section 382.0518(c), Health and Safety Code, is
6-19     amended to read as follows:
6-20           (c)  In considering the issuance, amendment, or renewal of a
6-21     permit, the commission may consider any adjudicated decision or
6-22     compliance proceeding within the five years before the date on
6-23     which the application was filed that addressed the applicant's past
6-24     performance and compliance with the laws of this state, another
6-25     state, or the United States governing air contaminants or with the
6-26     terms of any permit or order issued by the commission.  In
6-27     considering an applicant's compliance history under this
 7-1     subsection, the commission shall consider as evidence of compliance
 7-2     information regarding the applicant's implementation of an
 7-3     environmental management system at the facility for which the
 7-4     permit, permit amendment, or  permit renewal is sought.  In this
 7-5     subsection, "environmental management system" has the meaning
 7-6     assigned by Section 5.127, Water Code.
 7-7           SECTION 7.  (a)  Not later than December 1, 2001, the Texas
 7-8     Natural Resource Conservation Commission shall adopt the rules
 7-9     required by Section 5.127, Water Code, as added by this Act.
7-10           (b)  The changes in law made by this Act by amending Sections
7-11     26.028, 26.0281, and 27.051(e), Water Code, and Sections 361.084(a)
7-12     and 382.0518(c), Health and Safety Code, apply only to an
7-13     application for a permit, permit modification, permit amendment,
7-14     permit revision, permit reopening, or permit renewal that is filed
7-15     with the Texas Natural Resource Conservation Commission on or after
7-16     the date on which the commission publishes in the Texas Register
7-17     the final rules adopted under Section 5.127, Water Code, as added
7-18     by this Act.
7-19           SECTION 8.  This Act takes effect September 1, 2001.