By Callegari                                          H.B. No. 2997
         77R6681 MI-D                           
                                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;
 2-5                       (B)  consideration of the entity's implementation
 2-6     of an environmental management system in scheduling and conducting
 2-7     compliance inspections; and
 2-8                       (C)  expedited processing of permit renewal,
 2-9     modification, or amendment, as provided by Section 5.557.
2-10           (c)  The rules must provide that an environmental management
2-11     system, at a minimum, must require the entity implementing the
2-12     system to:
2-13                 (1)  adopt a written environmental policy;
2-14                 (2)  identify the environmental aspects and impacts of
2-15     the entity's activities;
2-16                 (3)  set priorities, goals, and targets for continuous
2-17     improvement in environmental performance;
2-18                 (4)  assign clear responsibilities for implementation,
2-19     training, monitoring, and corrective action;
2-20                 (5)  document implementation of procedures and results;
2-21     and
2-22                 (6)  evaluate and refine implementation over time to
2-23     improve attainment of environmental goals and targets and the
2-24     system itself.
2-25           (d)  The commission shall:
2-26                 (1)  integrate the use of environmental management
2-27     systems into its programs, including permitting, compliance
 3-1     assistance, and enforcement;
 3-2                 (2)  establish a mechanism to allow for public
 3-3     participation;
 3-4                 (3)  develop model environmental management systems for
 3-5     small businesses and local governments; and
 3-6                 (4)  establish environmental performance indicators to
 3-7     measure the program's performance.
 3-8           SECTION 2. Subchapter M, Chapter 5, Water Code, as added by
 3-9     Chapter 1350, Acts of the the 76th Legislature, Regular Session,
3-10     1999, is amended by adding Section 5.557 to read as follows:
3-11           Sec. 5.557.  PERMIT RENEWAL, MODIFICATION, OR AMENDMENT:
3-12     FACILITY WITH ENVIRONMENTAL MANAGEMENT SYSTEM. A public hearing on
3-13     an application for the renewal, modification, or amendment of any
3-14     permit issued by the commission shall be conducted in the same
3-15     manner as a hearing under Section 382.0561, Health and Safety Code,
3-16     if the executive director finds that the applicant:
3-17                 (1)  has implemented an environmental management system
3-18     for the facility for which the permit renewal, modification, or
3-19     amendment is sought; and
3-20                 (2)  has no outstanding significant and unresolved
3-21     violations related to that facility.
3-22           SECTION 3. Section 26.028, Water Code, is amended by adding a
3-23     new Subsection (e) and relettering existing Subsections (e)-(g) as
3-24     Subsections (f)-(h) to read as follows:
3-25           (e)  In considering an applicant's compliance history under
3-26     Subsection (d)(4), the commission shall consider as evidence of
3-27     compliance information regarding the applicant's implementation of
 4-1     an environmental management system at the facility for which the
 4-2     permit, permit amendment, or permit renewal is sought.  In this
 4-3     subsection, "environmental management system" has the meaning
 4-4     assigned by Section 5.127.
 4-5           (f)  Notice of an application under Subsection (d) shall be
 4-6     mailed to the mayor and health authorities for the city or town,
 4-7     and the county judge and health authorities for the county in which
 4-8     the waste is or will be discharged, at least 10 days before the
 4-9     commission meeting, and they may present information to the
4-10     commission on the application.
4-11           (g) [(f)]  An application to renew a permit for a confined
4-12     animal feeding operation which was issued between July 1, 1974, and
4-13     December 31, 1977, may be set for consideration and may be acted on
4-14     by the commission at a regular meeting without the necessity of
4-15     holding a public hearing if the applicant does not seek to
4-16     discharge into or adjacent to water in the state and does not seek
4-17     to change materially the pattern or place of disposal.
4-18           (h) [(g)]  For the purposes of Subsection (c), the commission
4-19     may act on the application without holding a public hearing if all
4-20     of the following conditions are met:
4-21                 (1)  not less than 30 days before the date of action on
4-22     the application by the commission, the applicant has published the
4-23     commission's notice of the application at least once in a newspaper
4-24     regularly published or circulated within each county where the
4-25     proposed facility or discharge is located and in each county
4-26     affected by the discharge;
4-27                 (2)  not less than 30 days before the date of action on
 5-1     the application by the commission, the applicant has served or
 5-2     mailed the commission's notice of the application to persons who in
 5-3     the judgment of the commission may be affected, including the
 5-4     county judges as required by Subsection (b) of this section.  As
 5-5     part of his application the applicant shall submit an affidavit
 5-6     which lists the names and addresses of the persons who may be
 5-7     affected by the application and includes the source of the list;
 5-8                 (3)  within 30 days after the date of the newspaper
 5-9     publication of the commission's notice, neither a commissioner, the
5-10     executive director, nor an affected person who objects to the
5-11     application has requested a public hearing.
5-12           SECTION 4. Section 26.0281, Water Code, is amended to read as
5-13     follows:
5-14           Sec. 26.0281.  CONSIDERATION OF PAST PERFORMANCE AND
5-15     COMPLIANCE. In considering the issuance, amendment, or renewal of a
5-16     permit to discharge effluent comprised primarily of sewage or
5-17     municipal waste, the commission shall consider any adjudicated
5-18     decision on or compliance proceeding addressing past performance
5-19     and compliance of the applicant and its operator with the laws of
5-20     this state governing waste discharge, waste treatment, or waste
5-21     disposal facilities and with the terms of any permit or order
5-22     issued by the commission.  In considering an applicant's compliance
5-23     history under this subsection, the commission shall consider as
5-24     evidence of compliance information regarding the applicant's
5-25     implementation of an environmental management system at the
5-26     facility for which the permit, permit amendment, or permit renewal
5-27     is sought.  In this section, "environmental management system" has
 6-1     the meaning assigned by Section 5.127.
 6-2           SECTION 5. Section 27.051(e), Water Code, is amended to read
 6-3     as follows:
 6-4           (e)  The commission shall establish a procedure by rule for
 6-5     its preparation of compliance summaries relating to the history of
 6-6     compliance and noncompliance by the applicant with the rules
 6-7     adopted or orders or permits issued by the commission under this
 6-8     chapter for any injection well for which a permit has been issued
 6-9     under this chapter.  A compliance summary must include as evidence
6-10     of compliance information regarding the applicant's implementation
6-11     of an environmental management system at the facility for which an
6-12     authorization is sought.  The compliance summaries shall be made
6-13     available to the applicant and any interested person after the
6-14     commission has completed its technical review of the permit
6-15     application and prior to the promulgation of the public notice
6-16     relating to the issuance of the permit.  Evidence of compliance or
6-17     noncompliance by an applicant for an injection well for the
6-18     disposal of hazardous waste with the rules adopted or orders or
6-19     permits issued by the commission under this chapter may be offered
6-20     by any party at a hearing on the applicant's application and
6-21     admitted into evidence subject to applicable rules of evidence. All
6-22     evidence admitted, including compliance history, shall be
6-23     considered by the commission in determining whether to issue,
6-24     amend, extend or renew a permit. In this subsection, "environmental
6-25     management system" has the meaning assigned by Section 5.127.
6-26           SECTION 6. Section 361.084(a), Health and Safety Code, is
6-27     amended to read as follows:
 7-1           (a)  The commission by rule shall establish a procedure to
 7-2     prepare compliance summaries relating to the applicant's solid
 7-3     waste management activities.  A compliance summary shall include as
 7-4     evidence of compliance information regarding the applicant's
 7-5     implementation of an environmental management system at the
 7-6     facility for which the authorization is sought.  In this
 7-7     subsection, "environmental management system" has the meaning
 7-8     assigned by Section 5.127, Water Code.
 7-9           SECTION 7. Section 382.0518(c), Health and Safety Code, is
7-10     amended to read as follows:
7-11           (c)  In considering the issuance, amendment, or renewal of a
7-12     permit, the commission may consider any adjudicated decision or
7-13     compliance proceeding within the five years before the date on
7-14     which the application was filed that addressed the applicant's past
7-15     performance and compliance with the laws of this state, another
7-16     state, or the United States governing air contaminants or with the
7-17     terms of any permit or order issued by the commission.  In
7-18     considering an applicant's compliance history under this
7-19     subsection, the commission shall consider as evidence of compliance
7-20     information regarding the applicant's implementation of an
7-21     environmental management system at the facility for which the
7-22     permit, permit amendment, or  permit renewal is sought.  In this
7-23     subsection, "environmental management system" has the meaning
7-24     assigned by Section 5.127, Water Code.
7-25           SECTION 8.  (a)  Not later than December 1, 2001, the Texas
7-26     Natural Resource Conservation Commission shall adopt the rules
7-27     required by Section 5.127, Water Code, as added by this Act.
 8-1           (b)  The changes in law made by this Act by adding Section
 8-2     5.557, Water Code, and by amending Sections 26.028, 26.0281, and
 8-3     27.051(e), Water Code, and Sections 361.084(a) and 382.0518(c),
 8-4     Health and Safety Code, apply only to an application for a permit,
 8-5     permit modification, permit amendment, permit revision, permit
 8-6     reopening, or permit renewal that is filed with the Texas Natural
 8-7     Resource Conservation Commission on or after the date on which the
 8-8     commission publishes in the Texas Register the final rules adopted
 8-9     under Section 5.127, Water Code, as added by this Act.
8-10           SECTION 9.  This Act takes effect September 1, 2001.