1-1                                   AN ACT
 1-2     relating to requirements for public notice and hearing on
 1-3     applications for certain permits that may have environmental
 1-4     impact.
 1-5           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-6           SECTION 1.  Section 382.05194, Health and Safety Code, is
 1-7     amended to read as follows:
 1-8           Sec. 382.05194.  Multiple Plant Permit.  (a)  The commission
 1-9     may issue a multiple plant permit for multiple plant sites that are
1-10     owned or operated by the same person or persons under common
1-11     control if the commission finds that:
1-12                 (1)  the aggregate rate of emission of air contaminants
1-13     to be authorized under the permit does not exceed the total of:
1-14                       (A)  for previously permitted facilities, the
1-15     rates authorized in the existing permits; and
1-16                       (B)  for existing unpermitted facilities not
1-17     subject to the requirement to obtain a preconstruction
1-18     authorization under Section 382.0518(g) or for facilities
1-19     authorized under Section 382.0519, the rates that would be
1-20     authorized under Section 382.0519; and
1-21                 (2)  there is no indication that the emissions from the
1-22     facilities will contravene the intent of this chapter, including
1-23     protection of the public's health and physical property.
1-24           (b)  A permit issued under this section may not authorize
1-25     emissions from any of the facilities authorized under the permit
 2-1     that exceed the facility's highest historic annual rate or the
 2-2     levels authorized in the facility's most recent permit.  In the
 2-3     absence of records extending back to the original construction of
 2-4     the facility, best engineering judgment shall be used to
 2-5     demonstrate the facility's highest historic annual rate to the
 2-6     commission.
 2-7           (c)  Emissions control equipment previously installed at a
 2-8     facility permitted under this section may not be removed or
 2-9     disabled unless the action is undertaken to maintain or upgrade the
2-10     control equipment or to otherwise reduce the impact of emissions
2-11     authorized by the commission.
2-12           (d)  [The commission shall publish notice of a proposed
2-13     multiple plant permit for existing facilities in the Texas Register
2-14     and in one or more statewide or regional newspapers designated by
2-15     the commission by rule that will, in the commission's judgment,
2-16     provide reasonable notice throughout the state.  If the multiple
2-17     plant permit for existing facilities will be effective for only
2-18     part of the state, the notice shall be published in a newspaper of
2-19     general circulation in the area to be affected.  The commission by
2-20     rule may require additional notice to be given.  The notice must
2-21     include an invitation for written comments by the public to the
2-22     commission regarding the proposed multiple plant permit and must be
2-23     published not later than the 30th day before the date the
2-24     commission issues the multiple plant permit.]
2-25           [(e)  For existing facilities, the commission shall hold a
2-26     public meeting to provide an additional opportunity for public
 3-1     comment.  The commission shall give notice of a public meeting
 3-2     under this subsection as part of the notice described in Subsection
 3-3     (d) not later than the 30th day before the date of the meeting.]
 3-4           [(f)  If the commission receives public comment related to
 3-5     the issuance of a multiple plant permit for existing facilities,
 3-6     the commission shall issue a written response to the comments at
 3-7     the same time the commission issues or denies the permit.  The
 3-8     response must be made available to the public, and the commission
 3-9     shall mail the response to each person who made a comment.]
3-10           [(g)]  The commission by rule shall establish the procedures
3-11     for application and approval for the use of a multiple plant
3-12     permit.
3-13           (e) [(h)]  For a multiple plant permit that applies only to
3-14     existing facilities for which an application is filed before
3-15     September 1, 2001, the issuance, amendment, or revocation by the
3-16     commission of the permit is not subject to Chapter 2001, Government
3-17     Code.
3-18           (f) [(i)]  The commission may adopt rules as necessary to
3-19     implement and administer this section and may delegate to the
3-20     executive director under Section 382.061 the authority to issue,
3-21     amend, or revoke a multiple plant permit.
3-22           SECTION 2.  Subchapter C, Chapter 382, Health and Safety
3-23     Code, is amended by adding Section 382.05197 to read as follows:
3-24           Sec. 382.05197.  MULTIPLE PLANT PERMIT:  NOTICE AND HEARING.
3-25     (a)  An applicant for a permit under Section 382.05194 shall
3-26     publish notice of intent to obtain the permit in accordance with
 4-1     Section 382.056, except that the notice of a proposed multiple
 4-2     plant permit for existing facilities shall be published in one or
 4-3     more statewide or regional newspapers that provide reasonable
 4-4     notice throughout the state.  If the multiple plant permit for
 4-5     existing facilities will be effective for only part of the state,
 4-6     the notice shall be published in a newspaper of general circulation
 4-7     in the area to be affected.  The commission by rule may require
 4-8     that additional notice be given.
 4-9           (b)  The commission may authorize an applicant for a permit
4-10     for an existing facility that constitutes or is part of a small
4-11     business stationary source as defined in Section 382.0365(h)(2) to
4-12     provide notice using an alternative means if the commission finds
4-13     that the proposed method will result in equal or better
4-14     communication with the public, considering the effectiveness of the
4-15     notice in reaching potentially affected persons, the cost, and the
4-16     consistency with federal requirements.
4-17           (c)  The commission shall provide an opportunity for a public
4-18     hearing and the submission of public comment and send notice of a
4-19     decision on an application for a permit under Section 382.05194 in
4-20     the same manner as provided by Sections 382.0561 and 382.0562.
4-21           (d)  A person affected by a decision of the commission to
4-22     issue or deny a multiple plant permit may move for rehearing and is
4-23     entitled to judicial review under Section 382.032.
4-24           SECTION 3.   Subchapter M, Chapter 5, Water Code, is amended
4-25     by adding Section 5.557 to read as follows:
4-26           Sec. 5.557.  DIRECT REFERRAL TO CONTESTED CASE HEARING.
 5-1     (a)  Immediately after the executive director issues a preliminary
 5-2     decision on an application under Section 5.553, the commission, on
 5-3     the request of the applicant or the executive director, shall refer
 5-4     the application directly to the State Office of Administrative
 5-5     Hearings for a contested case hearing on whether the application
 5-6     complies with all applicable statutory and regulatory requirements.
 5-7           (b)  Sections 5.554, 5.555, and 5.556 of this code and
 5-8     Sections 2003.047(e) and (f), Government Code, do not apply to an
 5-9     application referred for a hearing under Subsection (a).
5-10           (c)  Notwithstanding Subsection (b), the commission by rule
5-11     shall provide for public comment and the executive director's
5-12     response to public comment to be entered into the administrative
5-13     record of decision on an application.
5-14           SECTION 4.  Subsection (n), Section 382.056, Health and
5-15     Safety Code, is amended to read as follows:
5-16           (n)  Except as provided by Section 382.0561, the commission
5-17     shall consider a request that the commission reconsider the
5-18     executive director's decision or hold a public hearing in
5-19     accordance with the procedures provided by Sections [Section] 5.556
5-20     and 5.557, Water Code.
5-21           SECTION 5.   The Texas Natural Resource Conservation
5-22     Commission shall adopt rules to implement Section 5.557, Water
5-23     Code, as added by this Act, and Subsection (n), Section 382.056,
5-24     Health and Safety Code, as amended by this Act, as soon as is
5-25     necessary for the rules to take effect on or before January 1,
5-26     2002.
 6-1           SECTION 6.  This Act takes effect immediately if it receives
 6-2     a vote of two-thirds of the members elected to each house, as
 6-3     provided by Section 39, Article III, Texas Constitution.  If this
 6-4     Act does not receive the vote necessary for immediate effect, this
 6-5     Act takes effect September 1, 2001.
         _______________________________     _______________________________
             President of the Senate              Speaker of the House
               I hereby certify that S.B. No. 688 passed the Senate on
         February 28, 2001, by the following vote:  Yeas 30, Nays 0, one
         present not voting; and that the Senate concurred in House
         amendment on May 26, 2001, by the following vote:  Yeas 30, Nays 0,
         one present not voting.
                                             _______________________________
                                                 Secretary of the Senate
               I hereby certify that S.B. No. 688 passed the House, with
         amendment, on May 23, 2001, by the following vote:  Yeas 141,
         Nays 0, two present not voting.
                                             _______________________________
                                                Chief Clerk of the House
         Approved:
         _______________________________
                      Date
         _______________________________
                    Governor