C.S.H.B. 1630 78(R)    BILL ANALYSIS


C.S.H.B. 1630
By: Hilderbran
Environmental Regulation
Committee Report (Substituted)



BACKGROUND AND PURPOSE 

At the present time, Section 341.031, Health and Safety Code, clearly
specifies that public drinking water in Texas must be free from harmful
matter and must comply with the drinking water standards established by
the Texas Commission on Environmental Quality (TCEQ) or the U.S.
Environmental Protection Agency. Furthermore, the statute grants TCEQ the
authority to adopt and enforce rules in Texas to implement the federal
Safe Drinking Water Act (42 U.S.C.    300f-j).   
 
However, the current law does not give TCEQ, in the adoption of any rule
implementing a federal drinking water maximum contaminant level standard
for naturally occurring materials,  the authority to make exceptions, from
implementing the federal standards, for potentially affected small
community water systems in Texas with no reasonably available alternate
water supply.  This gap in the statute leaves small community water
systems that are dependent on only one water supply for all their water
needs unprotected from federal mandates that have failed to consider their
circumstances, thereby failing  to carve out exceptions in the federal
rules protecting these systems from losing access to their only water
source.  

This bill establishes criteria for a joint study in consultation with
Environmental Protection Agency(EPA), and in conjunction with the Texas
Water Development Board (TWDB), the Texas Department of Agriculture(TDA),
and TCEQ to establish alternate compliance schedules for a small community
water systems that cannot achieve compliance in accordance because they
face exceptional physical or financial circumstances. The study also
includes costs and benefits analysis for implementation to the state and
all community water systems affected, oral ingestion studies to ensure
demonstrable public health benefits, and viable alternative for small
community water systems.  Finally, the bill maintains the granting of
alternate compliance schedules is not necessary if all the costs
associated with compliance of the federal standards, including those of
the State of Texas, the drinking supplier, and the end-point user are paid
for entirely by the federal government. 

The effect of this bill is to protect the small community water system
with no reasonably available water supply from implementing federal
drinking water standards adopted by the state, particularly when the
standards are not scientifically or legally valid, are not based on a
proper cost-benefit analysis and are not necessary from a public health
benefit viewpoint.  


RULEMAKING AUTHORITY

It is the committee's opinion that rulemaking authority is expressly
granted to the Texas Commission on Environmental Quality in SECTION 1(b)
(Section 341.0316 Subchapter C, Chapter 341,Health and Safety Code) of
this bill. 

ANALYSIS

This bill establishes criteria for a joint study in consultation with
Environmental Protection Agency(EPA), and in conjunction with the Texas
Water Development Board (TWDB), the Texas Department of Agriculture(TDA),
and TCEQ to establish alternate compliance schedules for a small community
water systems that cannot achieve compliance in accordance because they
face exceptional physical or financial  circumstances. The study also
includes costs and benefits analysis for implementation to the state and
all community water systems affected, oral ingestion studies to ensure
demonstrable public health benefits, and viable alternative for small
community water systems.  Finally, the bill maintains the granting of
alternate compliance schedules is not necessary if all the costs
associated with compliance of the federal standards, including those of
the State of Texas, the drinking supplier, and the end-point user are paid
for entirely by the federal government. 

EFFECTIVE DATE

Upon passage if the bill receives a two-thirds vote, otherwise September
1, 2003. 

COMPARISON OF ORIGINAL TO SUBSTITUTE

The original bill provided an exemption from the federal drinking water
standards for small community water systems without access to a reasonably
available alternate water source.  However, the committee substitute
eliminates the exemption language, and instead focuses on the issuance of
realistic and feasible compliance schedules with the standards for the
affected small community water systems without an alternate water source
or adequate funds to adopt the standards.  

The substitute articulates the factors that must be taken into
consideration by TCEQ when the agency is issuing alternate schedules for
small community water systems that are unable to achieve compliance
because they face exceptional physical or financial circumstances,
including the size, density, and median income of the populations served
by the exempted system; the existence of, and costs associated with,
properly licensed facilities for treatment, storage or disposal of waste
materials that are generated by water treatment systems capable of
removing the naturally occurring materials; and the absence of any
reasonably available alternate water supply available to the affected
system. 

 Furthermore, the language in section (d) has been added to mandate that
the TCEQ, in conjunction with the Texas Water Development Board, the Texas
Department of Agriculture, and state agencies with expertise in the
protection of public health shall conduct studies on the following: the
cost-benefit to the state in implementing the federal drinking water
standards; whether the federal standards reflect the best available,
peer-reviewed science and proper oral ingestion studies; an accurate cost
assessment of implementation of the standards to the state and all
community water systems within the state affected by the standards; and
whether point-of-use removal technology provides an economically
reasonable and viable water treatment alternative for these affected small
community water systems.  As indicated in section (g), the studies
required are to be completed by  November 1, 2004, and a report to the
Legislature on the findings is to be provided by January 1, 2005. 

 Finally, the substitute language in section (f) further clarifies that
the issuance of alternate compliance schedules does not apply to small
community water systems which have entered into prior agreements, or which
are under obligation, to completely abandon use of groundwater by
conversion to surface water for drinking water supply.