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


Senate Research CenterC.S.S.B. 455
By: Armbrister
Natural Resources
4/17/2003
Committee Report (Substituted)


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.  C.S.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 making information public. 

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 Section 5.752(5), Water Code, to redefine
"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.  Deletes existing language which
authorized the components of compliance history to include orders under
Section 7.070.  

(e) Requires TCEQ, by rule, to establish a 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.  

(d) Makes conforming changes.

(g) Makes conforming changes.  

(h) Makes conforming changes.

(i) Requires TCEQ to consider the compliance history of and other relevant
compliance information relating to a regulated entity when determining
whether to grant the regulated entity's application for a permit or permit
amendment for any activity under TCEQ's jurisdiction to which this
subchapter applies. 

SECTION 4.  Amends Section 5.756, Water Code, by amending Subsection (b)
and adding Subsection (e), as follows: 

(b) Requires TCEQ to collect certain data and make it available to the
public.  Deletes existing text relating to making certain data available
on the Internet.  Makes conforming changes. 

(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 5.  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 demonstrate to TCEQ that the applicant's proposed
project will result in protection of environmental quality that is equal
to or greater than the protection afforded by existing standards. 

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

SECTION 7.  Effective date: September 1, 2003.