C.S.H.B. 2877 78(R)    BILL ANALYSIS


C.S.H.B. 2877
By: Bonnen
Environmental Regulation
Committee Report (Substituted)



BACKGROUND AND PURPOSE 

In 1999, the Texas Legislature passed HB 801 after weeks of negotiations
by representatives of groups supporting and opposed to the legislation.
The version that was passed represented a compromise by very diverse
interests.   
 
The purpose of HB 801 was to improve public notice, clarify the role of
notice and comment in state process, and restrict contested cases to
issues involving permits instead of the whole permit.  The process also
envisioned that issues would be narrowed or eliminated as a permit in
controversy went through the process outlined in HB 801. 
 
As in any hurriedly-crafted compromise, following passage a number of
problems were uncovered.  Some of the issues were discussed extensively by
the negotiating parties, and the agreed language has proved inadequate to
accomplish the original goals.  Some of the issues were understood by the
parties agreeing, but written in a way that the agency interpreted them
otherwise.  At least one issue was simply not foreseen by the
participants. 
 
The purpose of CSHB 2877 is to provide that the TCEQ only has to respond
to written comments during the notice and comment process; clarify the
times that a request for reconsideration of the executive director's
decision and a request for a contested case hearing are made; clarify that
the only person who can request a contested case is a person who has
participated in the full process to that point and is an affected person;
tighten the requirements for issues that are referred to a contested case
in response to practices that seem to currently allow broad issues to be
referred; clarify the process in the air permitting statutes that
currently allows an early request for hearing to stand as a request for
contested case hearing; and limit who can be named parties to a hearing at
the State Office of Hearing Examiners. 


RULEMAKING AUTHORITY

It is the committee's opinion that this bill modifies rulemaking authority
to the Texas Commission on Environmental Quality in SECTION 4 (Section
382.056, Health and Safety Code) of this bill. 

ANALYSIS

SECTION 1.  Amends Sec. 5.554, Water Code, by adding a Subsection (b)
providing that the public comment period will be automatically extended to
the close of any public meeting held in accordance with Subsection (a).
The deadline for filing requests for initiation of the public
participation process or requests for reconsideration will not be extended
due to a public meeting. 

SECTION 2.  Amends Sec. 5.555(a), Water Code, to specify that the
executive director must respond only to comments filed in writing. 

SECTION 3.  Amends Sec. 5.556(a), Water Code, to clarify that a request
for reconsideration of the executive's director's decision must be filed
after publication of the preliminary decision and that a request for a
contested case hearing must be filed after the executive director's
response to public  comments is transmitted as provided by commission
rule.  
Amends Sec. 5.556(c), Water Code, by restricting the granting of contested
case hearings to affected persons who submitted written comments during
the public comment period. 
Amends Sec. 5.556(d), Water Code, by adding requirements when the
commission is referring issues to the State Office of Administrative
Hearings that the hearing request must provide substantial information
establishing a reasonable basis for the factual dispute and describe how
the executive director's response to comments failed to resolve the
dispute.  The new language also provides that the issue is discrete and
not a broad or generalized objection and that the issue was raised during
the public comment period by the person requesting the hearing. 
Amends Sec. 5.556, Water Code by adding a new Subsection (g) that provides
that public notice is not required for a contested case hearing the
commissione grants under this section. 

SECTION 4.  Amends Sec. 382.056(b), Health and Safety Code, by adding the
word "applicable" to modify "procedural rights" in the notice requirement,
deleting a statement that an affected person can request a hearing and
adding in its place a statement that an affected person can request
initiation of the public participation process. 
Amends Sec. 382.056(g), Health and Safety Code, by clarifying that a
request this point in the process is for initiation of the public
participation process and not a contested case hearing.  
Amends Sec. 382.056(h), Health and Safety Code, by clarifying that the
commission initiates the public participation process and not a contested
case hearing at this point in the process. 
Amends Sec. 382.056(i), Health and Safety Code, by clarifying that this
second notice is of the preliminary decision and changes the notice to an
affected person to reference the right to request a hearing. 
Amends Sec. 382.056(l), Health and Safety Code, to specify that the
executive director must respond only to comments filed in writing  
Amends Sec. 382.056(m), Health and Safety Code, to clarify that the person
who receives the notice at this point includes those who filed a request
to initiate the public participation process instead of a public hearing. 
Amends Sec. 382.056 (n), Health and Safety Code, by changing the word
"public" to "contested case". 
Amends Sec. 382.056, Health and Safety Code, by adding a new Subsection
(s) that  
provides that when no timely request to initiate the public participation
process is filed for a preconstruction permit or permit amendment under
Section 382.0516 or a permit renewal under Section 382.055, a public
hearing held in response to a subsequent public notice required solely by
federal program requirements is conducted in accordance with Section
382.0561 and not under Chapter 2001, Government Code. 
Amends Sec. 382.056, Health and Safety Code, by adding a new Subsection
(t) that  provides that the public comment period will automatically be
extended to the close of any public meeting.  The deadline for filing
requests for initiation of the public participation process or requests
for reconsideration will not be extended due to a public meeting.   

SECTION 5.  Amends Sec. 2003.047, Government Code, by adding a new
Subsection (p) limiting the State Office of Administrative Hearings to
only allowing the executive director, the office of public interest
counsel, the permit applicant, and other persons whose hearing requests
have been granted by the commission and whose issues have been referred by
the commission for a contested case hearing to be named as parties for a
hearing on a permit application.  The section also limits the executive
director's participation to that described in Sec. 5.228, Water Code. 
Amends Sec. 2003.047, Government Code, by adding a new Subsection (q)
clarifying that an administrative law judge may dispose of the issues
referred by the TCEQ by summary disposition, as applicable under TCEQ
rules. 

SECTION 6.  Provides an effective date of September 1, 2003, and limits
the application of these changes in law to applications for a permit,
permit, amendment, or permit renewal filed with the Texas Commission on
Environmental Quality on or after September 1, 2003.  This SECTION further
provides that a permit, permit amendment, or permit renewal filed before
that date is governed by the  law in effect on the date it was filed and
continues the law in effect for that purpose.    





EFFECTIVE DATE

September 1, 2003


COMPARISON OF ORIGINAL TO SUBSTITUTE


SECTION 1 revisions amend Section 5.554 of the Water Code to add a
Subsection (b) that provides that the public comment period will be
automatically extended to the close of any public meeting held in
accordance with Subsection (a).  But the deadline for filing requests for
initiation of the public participation process or requests for
reconsideration will not be extended due to a public meeting. 

SECTION 2 is SECTION 1 renumbered.

SECTION 3 revisions amend Section 5.556 of the Water Code to revise
Paragraph (d)(2) to prohibit the TCEQ from referring an issue to SOAH for
a hearing unless the hearing request 1) provides substantial information
establishing a reasonable basis for the requisite factual dispute and 2)
describes how the executive director's response to comments failed to
resolve the dispute. 

SECTION 3 revisions add a new Subsection (g) to Section 5.556 of the Water
Code that provides that if the TCEQ grants a request for contested case
hearing, public notice of the contested case hearing shall not be
required.   

SECTION 4 revisions amend Section 5.556 of the Water Code to add a new
Subsection (s) to provide that when no timely request to initiate the
public participation process is filed for a preconstruction permit or
permit amendment under Section 382.0516 or a permit renewal under Section
382.055, a public hearing held in response to a subsequent public notice
required solely by federal program requirements is conducted in accordance
with Section 382.0561 and not under Chapter 2001, Government Code. 

SECTION 4 revisions amend Section 5.556 of the Water Code to add a new
Subsection (t) to provide that the public comment period will
automatically be extended to the close of any public meeting.  But the
deadline for filing requests for initiation of the public participation
process or requests for reconsideration will not be extended due to a
public meeting.  This language parallels the change made by Section 1
above.   

SECTION 5 revisions amend Section 2003.047 of the Government Code by
adding Subsection (q), which clarifies that an administrative law judge
may dispose of the issues referred by the TCEQ by summary disposition, as
applicable under TCEQ rules. 

SECTION 6 is SECTION 5 renumbered.