1-1     By:  Callegari, Chisum (Senate Sponsor - Lucio)       H.B. No. 2997
 1-2           (In the Senate - Received from the House May 4, 2001;
 1-3     May 7, 2001, read first time and referred to Committee on Natural
 1-4     Resources; May 11, 2001, reported favorably by the following vote:
 1-5     Yeas 6, Nays 0; May 11, 2001, sent to printer.)
 1-6                            A BILL TO BE ENTITLED
 1-7                                   AN ACT
 1-8     relating to the implementation by the Texas Natural Resource
 1-9     Conservation Commission of a program to encourage the use of
1-10     environmental management systems.
1-11           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-12           SECTION 1. Subchapter D, Chapter 5, Water Code, is amended by
1-13     adding Section 5.127 to read as follows:
1-14           Sec. 5.127.  ENVIRONMENTAL MANAGEMENT SYSTEMS. (a)  In this
1-15     section, "environmental management system" means a documented
1-16     management system to address applicable environmental regulatory
1-17     requirements that includes organizational structure, planning
1-18     activities, responsibilities, practices, procedures, processes, and
1-19     resources for developing, implementing, achieving, reviewing, and
1-20     maintaining an environmental policy directed toward continuous
1-21     improvement.
1-22           (b)  The commission by rule shall adopt a comprehensive
1-23     program that provides regulatory incentives to encourage the use of
1-24     environmental management systems by regulated entities, state
1-25     agencies, local governments, and  other entities as determined by
1-26     the commission. The incentives may include:
1-27                 (1)  on-site technical assistance;
1-28                 (2)  accelerated access to information about programs;
1-29     and
1-30                 (3)  to the extent consistent with federal
1-31     requirements:
1-32                       (A)  inclusion of information regarding an
1-33     entity's use of an environmental management system in the entity's
1-34     compliance history and compliance summaries; and
1-35                       (B)  consideration of the entity's implementation
1-36     of an environmental management system in scheduling and conducting
1-37     compliance inspections.
1-38           (c)  The rules must provide that an environmental management
1-39     system, at a minimum, must require the entity implementing the
1-40     system to:
1-41                 (1)  adopt a written environmental policy;
1-42                 (2)  identify the environmental aspects and impacts of
1-43     the entity's activities;
1-44                 (3)  set priorities, goals, and targets for continuous
1-45     improvement in environmental performance and for ensuring
1-46     compliance with environmental laws, regulations, and permit terms
1-47     applicable to the facility;
1-48                 (4)  assign clear responsibilities for implementation,
1-49     training, monitoring, and corrective action and for ensuring
1-50     compliance with environmental laws, regulations, and permit terms
1-51     applicable to the facility;
1-52                 (5)  document implementation of procedures and results;
1-53     and
1-54                 (6)  evaluate and refine implementation over time to
1-55     improve attainment of environmental goals and targets and the
1-56     system itself.
1-57           (d)  The commission shall:
1-58                 (1)  integrate the use of environmental management
1-59     systems into its regulatory programs, including permitting,
1-60     compliance assistance, and enforcement;
1-61                 (2)  develop model environmental management systems for
1-62     small businesses and local governments; and
1-63                 (3)  establish environmental performance indicators to
1-64     measure the program's performance.
 2-1           SECTION 2. Section 26.028, Water Code, is amended by adding a
 2-2     new Subsection (e) and relettering existing Subsections (e)-(g) as
 2-3     Subsections (f)-(h) to read as follows:
 2-4           (e)  In considering an applicant's compliance history under
 2-5     Subsection (d)(4), the commission shall consider as evidence of
 2-6     compliance information regarding the applicant's implementation of
 2-7     an environmental management system at the facility for which the
 2-8     permit, permit amendment, or permit renewal is sought.  In this
 2-9     subsection, "environmental management system" has the meaning
2-10     assigned by Section 5.127.
2-11           (f)  Notice of an application under Subsection (d) shall be
2-12     mailed to the mayor and health authorities for the city or town,
2-13     and the county judge and health authorities for the county in which
2-14     the waste is or will be discharged, at least 10 days before the
2-15     commission meeting, and they may present information to the
2-16     commission on the application.
2-17           (g) [(f)]  An application to renew a permit for a confined
2-18     animal feeding operation which was issued between July 1, 1974, and
2-19     December 31, 1977, may be set for consideration and may be acted on
2-20     by the commission at a regular meeting without the necessity of
2-21     holding a public hearing if the applicant does not seek to
2-22     discharge into or adjacent to water in the state and does not seek
2-23     to change materially the pattern or place of disposal.
2-24           (h) [(g)]  For the purposes of Subsection (c), the commission
2-25     may act on the application without holding a public hearing if all
2-26     of the following conditions are met:
2-27                 (1)  not less than 30 days before the date of action on
2-28     the application by the commission, the applicant has published the
2-29     commission's notice of the application at least once in a newspaper
2-30     regularly published or circulated within each county where the
2-31     proposed facility or discharge is located and in each county
2-32     affected by the discharge;
2-33                 (2)  not less than 30 days before the date of action on
2-34     the application by the commission, the applicant has served or
2-35     mailed the commission's notice of the application to persons who in
2-36     the judgment of the commission may be affected, including the
2-37     county judges as required by Subsection (b) [of this section].  As
2-38     part of his application the applicant shall submit an affidavit
2-39     which lists the names and addresses of the persons who may be
2-40     affected by the application and includes the source of the list;
2-41                 (3)  within 30 days after the date of the newspaper
2-42     publication of the commission's notice, neither a commissioner, the
2-43     executive director, nor an affected person who objects to the
2-44     application has requested a public hearing.
2-45           SECTION 3. Section 26.0281, Water Code, is amended to read as
2-46     follows:
2-47           Sec. 26.0281.  CONSIDERATION OF PAST PERFORMANCE AND
2-48     COMPLIANCE. In considering the issuance, amendment, or renewal of a
2-49     permit to discharge effluent comprised primarily of sewage or
2-50     municipal waste, the commission shall consider any adjudicated
2-51     decision on or compliance proceeding addressing past performance
2-52     and compliance of the applicant and its operator with the laws of
2-53     this state governing waste discharge, waste treatment, or waste
2-54     disposal facilities and with the terms of any permit or order
2-55     issued by the commission.  In considering an applicant's compliance
2-56     history under this subsection, the commission shall consider as
2-57     evidence of compliance information regarding the applicant's
2-58     implementation of an environmental management system at the
2-59     facility for which the permit, permit amendment, or permit renewal
2-60     is sought.  In this section, "environmental management system" has
2-61     the meaning assigned by Section 5.127.
2-62           SECTION 4. Section 27.051(e), Water Code, is amended to read
2-63     as follows:
2-64           (e)  The commission shall establish a procedure by rule for
2-65     its preparation of compliance summaries relating to the history of
2-66     compliance and noncompliance by the applicant with the rules
2-67     adopted or orders or permits issued by the commission under this
2-68     chapter for any injection well for which a permit has been issued
2-69     under this chapter.  A compliance summary must include as evidence
 3-1     of compliance information regarding the applicant's implementation
 3-2     of an environmental management system at the facility for which an
 3-3     authorization is sought.  The compliance summaries shall be made
 3-4     available to the applicant and any interested person after the
 3-5     commission has completed its technical review of the permit
 3-6     application and prior to the promulgation of the public notice
 3-7     relating to the issuance of the permit.  Evidence of compliance or
 3-8     noncompliance by an applicant for an injection well for the
 3-9     disposal of hazardous waste with the rules adopted or orders or
3-10     permits issued by the commission under this chapter may be offered
3-11     by any party at a hearing on the applicant's application and
3-12     admitted into evidence subject to applicable rules of evidence. All
3-13     evidence admitted, including compliance history, shall be
3-14     considered by the commission in determining whether to issue,
3-15     amend, extend or renew a permit. In this subsection, "environmental
3-16     management system" has the meaning assigned by Section 5.127.
3-17           SECTION 5. Section 361.084(a), Health and Safety Code, is
3-18     amended to read as follows:
3-19           (a)  The commission by rule shall establish a procedure to
3-20     prepare compliance summaries relating to the applicant's solid
3-21     waste management activities.  A compliance summary shall include as
3-22     evidence of compliance information regarding the applicant's
3-23     implementation of an environmental management system at the
3-24     facility for which the authorization is sought.  In this
3-25     subsection, "environmental management system" has the meaning
3-26     assigned by Section 5.127, Water Code.
3-27           SECTION 6. Section 382.0518(c), Health and Safety Code, is
3-28     amended to read as follows:
3-29           (c)  In considering the issuance, amendment, or renewal of a
3-30     permit, the commission may consider any adjudicated decision or
3-31     compliance proceeding within the five years before the date on
3-32     which the application was filed that addressed the applicant's past
3-33     performance and compliance with the laws of this state, another
3-34     state, or the United States governing air contaminants or with the
3-35     terms of any permit or order issued by the commission.  In
3-36     considering an applicant's compliance history under this
3-37     subsection, the commission shall consider as evidence of compliance
3-38     information regarding the applicant's implementation of an
3-39     environmental management system at the facility for which the
3-40     permit, permit amendment, or  permit renewal is sought.  In this
3-41     subsection, "environmental management system" has the meaning
3-42     assigned by Section 5.127, Water Code.
3-43           SECTION 7.  (a)  Not later than December 1, 2001, the Texas
3-44     Natural Resource Conservation Commission shall adopt the rules
3-45     required by Section 5.127, Water Code, as added by this Act.
3-46           (b)  The changes in law made by this Act by amending Sections
3-47     26.028, 26.0281, and 27.051(e), Water Code, and Sections 361.084(a)
3-48     and 382.0518(c), Health and Safety Code, apply only to an
3-49     application for a permit, permit modification, permit amendment,
3-50     permit revision, permit reopening, or permit renewal that is filed
3-51     with the Texas Natural Resource Conservation Commission on or after
3-52     the date on which the commission publishes in the Texas Register
3-53     the final rules adopted under Section 5.127, Water Code, as added
3-54     by this Act.
3-55           SECTION 8.  This Act takes effect September 1, 2001.
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