SRC-TJG S.B. 455 78(R)   BILL ANALYSIS


Senate Research Center   S.B. 455
78R4315 MI-DBy: Armbrister
Natural Resources
4/4/2003
As Filed


DIGEST AND PURPOSE 

The Texas Commission on Environmental Quality (TCEQ) has consolidated all
innovative regulatory programs into one office, changing the requirements
for innovative regulatory programs and the use of regulatory flexibility,
and establishing a new raking system based on compliance history, based on
the recommendations of the Sunset Advisory Committee.  As proposed, S.B.
455 allows the use of these innovative programs upon showing of an equal
environmental benefit with economic savings to the regulated entity.  This
bill also eliminates the requirement for a single uniform standard for all
entities regulated by TCEQ and authorizes TCEQ to adopt standards that are
uniform for sites that are similar in size and complexity and at which
similar activities occur.  Finally, this bill provides guidance for TCEQ
concerning formulas, length of compliance history considered for ranking
purposes, and placing information on the Internet. 

RULEMAKING AUTHORITY

This bill does not expressly grant any additional rulemaking authority to
a state officer, institution, or agency. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Sections 5.752(2) and (5), Water Code, as follows:

(2) Adds benefits to the environment that are equal to benefits that would
result from compliance with applicable legal requirements under Texas
Commission on Environmental Quality (TCEQ) jurisdiction and that also
result in economic benefit to regulated entities to the list of actions
for which incentives are provided within the definition of "innovative
program." Makes a conforming and nonsubstantive change. 

(5) Redefines "strategically directed regulatory structure."

SECTION 2.  Amends Sections 5.753(a), (b), and (e), Water Code, as follows:

(a) Authorizes, rather than requires, TCEQ, by rule, to develop standards,
rather than uniform standards, for evaluating site-specific compliance
history that are uniform for sites that are similar in size and complexity
and at which similar activities occur. 

(b) Authorizes, rather than requires, the components of compliance history
to include certain actions relating to compliance with applicable legal
requirements under the jurisdiction of TCEQ.  Adds the laws of the federal
government and the United States Environmental Protection Agency to the
list of actions relating to compliance with applicable legal requirements
under the jurisdiction of TCEQ.  

(e) Requires TCEQ, by rule, to establish a three-year period for
site-specific compliance history, except as provided by other law or any
requirement necessary to maintain federal program authorization. 
 
SECTION 3.  Amends Sections 5.754(a), (b), (c), (d), (g), (h), and (i), as
follows: 

(a) Authorizes, rather than requires, TCEQ to establish a set of standards
for the classification of a person's compliance history at a particular
site. 

(b) Requires rules adopted under this section to, at a minimum, provide
for three classifications of site-specific compliance history in a manner
adequate to distinguish among certain poor performers, satisfactory
performers, and high performers.  Makes conforming changes.   

(c) Requires TCEQ, in classifying a person's compliance history at a
particular site, to take certain actions.  Deletes existing text relating
to determining if a violation is of major, moderate, or minor
significance.   

(d) Makes conforming changes.

(g) Makes conforming changes.  

(h) Makes conforming changes.

(i) Authorizes, rather than requires, TCEQ to consider the compliance
history of a regulated entity at any of its sites when determining whether
to grant the regulated entity's application for a permit or permit
amendment for any new activity under TCEQ's jurisdiction to which this
subchapter applies. 

SECTION 4.  Amends Section 5.755. Water Code, by amending Subsections (a)
and (b) and adding Subsection (d), as follows: 

(a) Requires TCEQ, by rule, to develop a strategically directed regulatory
structure to provide certain incentives and benefits. 

(b) Makes conforming changes.

(d) Requires the denominator, if TCEQ uses a formula to determine
classifications for purposes of this subchapter, to include inspections
and reports submitted to TCEQ that allege potential violations at the
site. 

SECTION 5.  Amends Section 5.756, Water Code, by amending Subsection (b)
and adding Subsection (e), as follows: 

(b) Makes conforming changes.  Deletes existing Subdivision (3) related to
whether a violation is major, moderate, or minor, as defined by TCEQ rule.
Redesignates existing Subdivisions (4) and (5) as (3) and (4). 

(e) Provides that any material about a site that is placed on the Internet
under this subchapter is subject to a quality assurance and quality
control procedure, including an opportunity for the entity that holds the
permit for the site to review the information before it is placed on the
Internet. 

SECTION 6.  Amends Sections 5.758(a), (b), (d), and (h), Water Code, as
follows: 

(a) Authorizes TCEQ by order to exempt an applicant from a requirement of
a statute or commission rule regarding the control or abatement of
pollution if the applicant proposes to control or abate pollution by an
alternative method or by applying an alternative standard that is as,
rather than more, protective of the environment and the public health as
the method or standard prescribed by the statute or TCEQ rule that would
otherwise apply. 
 
(b) Prohibits TCEQ from exempting an applicant under this section unless
the applicant can present documented evidence of benefits to environmental
quality or of economic benefit with equivalent protection of environmental
quality that will result from the project the applicant proposes. 

(d) Deletes existing modifier "specific" related to a description of the
alternative method or standard. 

(h) Requires TCEQ, in implementing the program of regulatory flexibility
authorized by this section, to endorse alternative methods that will
clearly benefit the environment and impose the least onerous restrictions
on business, including economic benefit.  Deletes existing text related to
marketing the program and fixing and enforcing environmental standards. 

SECTION 7.  Repealer: Sections 5.753(d) (Compliant history components
include notices of violations) and 5.757 (Coordination of Innovative
Programs), Water Code. 

SECTION 8.  Effective date: September 1, 2003.