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By:  Bonnen, et al. (Senate Sponsor - Armbrister)                 H.B. No. 2877
	(In the Senate - Received from the House May 6, 2003; 
May 8, 2003, read first time and referred to Committee on Natural 
Resources; May 23, 2003, reported adversely, with favorable 
Committee Substitute by the following vote:  Yeas 8, Nays 1; 
May 23, 2003, sent to printer.)


COMMITTEE SUBSTITUTE FOR H.B. No. 2877                                   By:  Armbrister

A BILL TO BE ENTITLED
AN ACT
relating to certain permitting procedures of the Texas Commission on Environmental Quality. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Subsection (a), Section 5.555, Water Code, is amended to read as follows: (a) The executive director, in accordance with procedures provided by commission rule, shall file with the chief clerk of the commission a response to each relevant and material public comment on the preliminary decision filed in writing during the public comment period. SECTION 2. Section 5.556, Water Code, is amended by amending Subsections (a), (c), and (d) and adding Subsections (g) and (h) to read as follows: (a) A person may request that the commission reconsider the executive director's decision or hold a contested case hearing. A request for reconsideration of the executive director's decision or for a contested case hearing must be filed with the commission after transmittal of the executive director's response to public comments and during the period provided by commission rule. (c) The commission may not grant a request for a contested case hearing unless the commission determines that the request was filed by an affected person, as defined by Section 5.115, who submitted written comments during the public comment period or by a local government with authority under state law over the issues contemplated by the application upon a showing of good cause for not having submitted written comments during the comment period. (d) The commission may not refer an issue to the State Office of Administrative Hearings for a hearing unless the commission determines that [the issue]: (1) the issue involves a disputed question of fact; (2) the hearing request is based on information in the record establishing a reasonable basis for the factual dispute and describes how the executive director's response to comments failed to resolve the dispute; (3) the issue is a specific, identifiable, technical dispute regarding the application or draft permit rather than an expression of generalized public health or environmental concerns or objections; (4) the issue was raised during the public comment period by the person requesting the hearing; and (5) the issue [(3)] is relevant and material to the decision on the application. (g) Notwithstanding other law, public notice of a contested case hearing that the commission grants under this section is not required. Notice of a hearing shall be provided to the applicant, the office of public interest counsel, the executive director, and the person whose hearing requests have been granted. (h) Notwithstanding other law, an application to upgrade a permitted landfill facility to meet the requirements of 40 C.F.R. Part 258 submitted to the commission before April 30, 2003, shall be considered by the commission as a modification as defined by commission rules. SECTION 3. Section 7.0025, Water Code, is amended to read as follows: Sec. 7.0025. INITIATION OF ENFORCEMENT ACTION USING INFORMATION PROVIDED BY PRIVATE INDIVIDUAL. (a) In this section, "relevant commission protocols" means protocols that are used by the commission or determined to be acceptable by the executive director. (b) The commission may initiate an enforcement action on a matter under its jurisdiction under this code or the Health and Safety Code based on a combination of information the commission [it] receives from a private individual and information developed by the commission if that combined information, in the commission's judgment, is of sufficient value and credibility to warrant the initiation of an enforcement action. (c) [(b)] The executive director or the executive director's designated representative may evaluate the value and credibility of information received from a private individual and the merits of any proposed enforcement action based on that information. In evaluating information under this subsection, the executive director or the executive director's designated representative shall consider the following criteria: (1) the individual providing the information must be willing to: (A) submit a sworn affidavit attesting to the facts that constitute the alleged violation and authenticating any writings, recordings, or photographs provided by the individual; and (B) testify in any enforcement proceedings regarding the alleged violation; and (2) if the executive director relies on any physical or sampling data submitted by an individual to prove one or more elements of an enforcement case: (A) the data must have been collected or gathered in accordance with relevant commission protocols; and (B) the individual submitting the physical or sampling data must submit a sworn affidavit that the individual followed relevant commission protocols when collecting the data. (d) [(c)] The commission by rule may adopt additional criteria for the executive director to use in evaluating the value and credibility of information received from a private individual and for use of that information in an enforcement action. (e) [(d)] A private individual who submits information on which the commission relies for all or part of an enforcement case may be called to testify in the enforcement proceedings and is subject to all sanctions under law for knowingly falsifying evidence. If the commission relies on the information submitted by a private individual to prove an enforcement case, any physical or sampling data must have been collected or gathered in accordance with commission protocols. The commission is not required to call a private individual who provides information on which the commission relies unless doing so is essential to the enforcement action. (f) The commission may not use information provided by a private individual if the information was obtained by trespass or another illegal act. (g) Information provided by a private individual that is used in an enforcement action is subject to the rules of evidence. SECTION 4. Subchapter C, Chapter 361, Health and Safety Code, is amended by adding Section 361.1145 to read as follows: Sec. 361.1145. PROHIBITION OF PERMIT FOR CERTAIN SOLIDIFIED, COMMERCIAL INDUSTRIAL SOLID WASTE FACILITIES. The commission may not issue a permit for the storage, processing, or disposal of solidified, commercial, industrial solid waste in a solution-mined salt dome cavern or a sulphur mine located within one mile of a drinking water well, school, place of worship, or public park. SECTION 5. Section 382.056, Health and Safety Code, is amended by amending Subsections (b), (g), (h), (i), (l), (m), and (n) and adding Subsections (s) and (t) to read as follows: (b) The notice must include: (1) a description of the location or proposed location of the facility or federal source; (2) the location at which a copy of the application is available for review and copying as provided by Subsection (d); (3) a description, including a telephone number, of the manner in which the commission may be contacted for further information; (4) a description, including a telephone number, of the manner in which the applicant may be contacted for further information; (5) a description of the applicable procedural rights and obligations of the public, printed in a font style or size that clearly provides emphasis and distinguishes it from the remainder of the notice[, that includes a statement that a person who may be affected by emissions of air contaminants from the facility, proposed facility, or federal source is entitled to request a hearing from the commission]; (6) a statement that a person who may be affected by emissions of air contaminants from the facility, proposed facility, or federal source is entitled to file a notice of contest; (7) a description of the procedure by which a person may be placed on a mailing list in order to receive additional information about the application; (8) [(7)] the time and location of any public meeting to be held under Subsection (e); and (9) [(8)] any other information the commission by rule requires. (g) If, in response to the notice published under Subsection (a) for a permit or permit amendment under Section 382.0518 or a permit renewal review under Section 382.055, a person files a notice of contest [requests] during the period provided by commission rule [that the commission hold a public hearing] and the notice of contest [request] is not withdrawn before the date the preliminary decision is issued, the applicant shall publish notice of the preliminary decision in a newspaper, and the commission shall seek public comment on the preliminary decision in accordance with[. The commission shall consider the request for public hearing under] the procedures provided by Subsections (i)-(n). However, the [The] commission may not seek further public comment or hold a public hearing [under the procedures provided by Subsections (i)-(n)] in response to a notice of contest [request for a public hearing] on an amendment, modification, or renewal that would not result in an increase in allowable emissions and would not result in the emission of an air contaminant not previously emitted. (h) The commission shall consider any hearing request regarding [If, in response to the notice published under Subsection (a) for] a permit under Section 382.054[, a person requests during the public comment period provided by commission rule that the commission hold a public hearing, the commission shall consider the request] under the procedures provided by Section 382.0561 and not under the procedures provided by Subsections (i)-(n). (i) The commission by rule shall establish the form and content of the notice of preliminary decision under Subsection (g), the manner of publication, and the duration of the public comment period. The notice must include: (1) the information required by Subsections [Subsection] (b)(1)-(5) and (7)-(9); (2) a summary of the preliminary decision; (3) the location at which a copy of the preliminary decision is available for review and copying as provided by Subsection (j); (4) a description of the manner in which comments regarding the preliminary decision may be submitted; and (5) any other information the commission by rule requires. (l) The executive director, in accordance with procedures adopted by the commission by rule, shall file with the chief clerk of the commission a response to each relevant and material public comment on the preliminary decision filed in writing during the public comment period. (m) The chief clerk of the commission shall transmit the executive director's decision, the executive director's response to public comments, and instructions for requesting that the commission reconsider the executive director's decision or hold a contested case hearing to: (1) the applicant; (2) any person who submitted comments during the public comment period; (3) any person who requested to be on the mailing list for the permit action; and (4) any person who timely filed a notice of contest [request for a public hearing] in response to the notice published under Subsection (a). (n) Except as provided by Section 382.0561, the commission shall consider a request that the commission reconsider the executive director's decision or hold a contested case [public] hearing in accordance with the procedures provided by Sections 5.556 and 5.557, Water Code. (s) If a notice of contest is not filed or is withdrawn under Subsection (g), any public hearing requested in response to a later public notice required solely by federal program requirements, if granted, shall be conducted in accordance with Section 382.0561 and not under Chapter 2001, Government Code. (t) The commission shall extend the public comment period automatically until the close of the public meetings held under Subsection (k). The commission may not extend the period during which a notice of contest or request for reconsideration may be filed. SECTION 6. Section 382.0564, Health and Safety Code, is amended to read as follows: Sec. 382.0564. NOTIFICATION TO OTHER GOVERNMENTAL ENTITIES. (a) The commission by rule may allow for notification of and review by the administrator and affected states of permit applications, revisions, renewals, or draft permits prepared under Sections 382.054-382.0543. (b) The commission shall mail notice of intent to obtain a permit, permit amendment, or other authorization for a rock-crushing facility associated with blasting operations to an affected municipality. (c) An affected municipality entitled to notice under Subsection (b) may submit comments to the commission within 30 days of receiving a notice of intent under Subsection (b). (d) The commission may not issue a permit, permit amendment, or other authorization for a rock-crushing facility associated with blasting operations if the commission receives from an affected municipality a resolution in opposition to issuance of the permit, permit amendment, or other authorization during the 30-day comment period. (e) The commission shall prohibit a currently permitted rock-crushing facility from being associated with blasting operations if: (1) blasting operations have not taken place on the tract for 10 or more years before April 10, 2003; and (2) the commission receives from an affected municipality a resolution in opposition to the currently permitted rock-crushing facility. (f) For purposes of this section, an "affected municipality" means a municipality whose primary source of drinking water is an aquifer made, wholly or partly, of water-bearing limestone or dolomite which is located in a county: (1) that is adjacent to a county with a population of 500,000 or more; and (2) in which is located a portion of a body of water into which a discharge of pollutants is prohibited by the commission under 30 T.A.C. Chapter 311. SECTION 7. Section 2003.047, Government Code, is amended by adding Subsections (p) and (q) to read as follows: (p) In designating parties to a hearing on a permit application, the administrative law judge may name as parties only the executive director of the commission, 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. The executive director may participate in a contested case hearing only to the extent described in Section 5.228, Water Code. (q) An administrative law judge may grant a motion for a summary disposition on any or all of the issues referred for hearing and issue a proposal for decision that resolves the contested case without an evidentiary hearing or with a limited evidentiary hearing as provided by commission rules. SECTION 8. Subchapter B, Chapter 11, Water Code, is amended by adding Sections 11.0235, 11.0236, and 11.0237 to read as follows: Sec. 11.0235. POLICY REGARDING WATERS OF THE STATE. (a) The waters of the state are held in trust for the public, and the right to use state water may be appropriated only as expressly authorized by law. (b) Maintaining the biological soundness of the state's rivers, lakes, bays, and estuaries is of great importance to the public's economic health and general well-being. (c) The legislature has expressly required the commission while balancing all other interests to consider and provide for the freshwater inflows necessary to maintain the viability of the state's bay and estuary systems in the commission's regular granting of permits for the use of state waters. (d) The legislature has not expressly authorized granting water rights exclusively for: (1) instream flows dedicated to environmental needs or inflows to the state's bay and estuary systems; or (2) other similar beneficial uses. (e) The fact that greater pressures and demands are being placed on the water resources of the state makes it of paramount importance to reexamine the process for ensuring that these important priorities are effectively addressed in clear delegations of authority to the commission. Sec. 11.0236. STUDY COMMISSION ON WATER FOR ENVIRONMENTAL FLOWS. (a) In recognition of the importance that the ecological soundness of our riverine, bay, and estuary systems and riparian lands has on the economy, health, and well-being of the state there is created the Study Commission on Water for Environmental Flows. (b) The study commission is composed of 15 members as follows: (1) two members appointed by the governor; (2) five members appointed by the lieutenant governor; (3) five members appointed by the speaker of the house of representatives; (4) the presiding officer of the commission or the presiding officer's designee; (5) the chairman of the board or the chairman's designee; and (6) the presiding officer of the Parks and Wildlife Commission or the presiding officer's designee. (c) Of the members appointed under Subsection (b)(2): (1) one member must represent a river authority or municipal water supply agency or authority; (2) one member must represent an entity that is distinguished by its efforts in resource protection; and (3) three members must be members of the senate. (d) Of the members appointed under Subsection (b)(3): (1) one member must represent a river authority or municipal water supply agency or authority; (2) one member must represent an entity that is distinguished by its efforts in resource protection; and (3) three members must be members of the house of representatives. (e) Each appointed member of the study commission serves at the will of the person who appointed the member. (f) The appointed senator with the most seniority and the appointed house member with the most seniority serve together as co-presiding officers of the study commission. (g) A member of the study commission is not entitled to receive compensation for service on the study commission but is entitled to reimbursement of the travel expenses incurred by the member while conducting the business of the study commission, as provided by the General Appropriations Act. (h) The study commission may accept gifts and grants from any source to be used to carry out a function of the study commission. (i) The commission shall provide staff support for the study commission. (j) The study commission shall conduct public hearings and study public policy implications for balancing the demands on the water resources of the state resulting from a growing population with the requirements of the riverine, bay, and estuary systems including granting permits for instream flows dedicated to environmental needs or bay and estuary inflows, use of the Texas Water Trust, and any other issues that the study commission determines have importance and relevance to the protection of environmental flows. In evaluating the options for providing adequate environmental flows, the study commission shall take notice of the strong public policy imperative that exists in this state recognizing that environmental flows are important to the biological health of our parks, game preserves, and bay and estuary systems and are high priorities in the permitting process. The study commission shall specifically address ways that the ecological soundness of these systems will be ensured in the water allocation process. (k) The study commission: (1) shall appoint an advisory scientific committee that will: (A) serve as impartial scientific advisors and reviewers for the study commission; and (B) have a membership of no fewer than five and no more than nine total members chosen by the study commission to represent a variety of areas of relevant technical expertise; (2) may appoint additional advisory committees to assist the study commission; and (3) may draft proposed legislation to modify existing water-rights permitting statutes. (l) Not later than December 1, 2004, the study commission shall issue a report summarizing: (1) any hearings conducted by the study commission; (2) any studies conducted by the study commission; (3) any legislation proposed by the study commission; and (4) any other findings and recommendations of the study commission. (m) The study commission shall promptly deliver copies of the report to the governor, lieutenant governor, and speaker of the house of representatives. (n) The study commission shall adopt rules to administer this section. (o) The study commission is abolished and this section expires September 1, 2005. Sec. 11.0237. WATER RIGHTS FOR INSTREAM FLOWS DEDICATED TO ENVIRONMENTAL NEEDS OR BAY AND ESTUARY INFLOWS. (a) The commission may not issue a new permit for instream flows dedicated to environmental needs or bay and estuary inflows. This section does not prohibit the commission from issuing an amendment to an existing permit or certificate of adjudication to change the use to or add a use for instream flows dedicated to environmental needs or bay and estuary inflows. (b) This section does not alter the commission's obligations under Section 11.042(b), 11.046(b), 11.085(k)(2)(F), 11.134(b)(3)(D), 11.147, 11.1491, 16.058, or 16.059. (c) This section expires September 1, 2005. SECTION 9. Subsections (d) and (e), Section 11.147, Water Code, are amended to read as follows: (d) In its consideration of an application to store, take, or divert water, the commission shall include in the permit, to the extent practicable when considering all public interests, those conditions considered by the commission necessary to maintain [consider the effect, if any, of the issuance of the permit on] existing instream uses and water quality of the stream or river to which the application applies. (e) The commission shall include in the permit, to the extent practicable when considering all public interests, those conditions considered by the commission necessary to maintain [also consider the effect, if any, of the issuance of the permit on] fish and wildlife habitats. SECTION 10. Rules adopted by the Texas Commission on Environmental Quality under Section 26.040, Water Code, before the effective date of this Act are validated as of the dates they were adopted and remain valid until they are modified or repealed by the commission. SECTION 11. (a) Except as provided by Subsection (b) of this section, this Act takes effect September 1, 2003. (b) Sections 8 and 9 of this Act take effect immediately if this Act receives a vote of two-thirds of all the members elected to each house, as provided by Section 39, Article III, Texas Constitution. If this Act does not receive the vote necessary for immediate effect, Sections 8 and 9 of this Act take effect September 1, 2003. (c) The changes in law made by Sections 1, 2, 4, 5, and 7 of this Act apply only to an application for a permit, permit amendment, or permit renewal for which the notice of preliminary decision required by Section 5.553, Water Code, or Section 382.056(g), Health and Safety Code, is published on or after September 1, 2003. A permit, permit amendment, or permit renewal for which the notice of preliminary decision required by Section 5.553, Water Code, or Section 382.056(g), Health and Safety Code, is published before September 1, 2003, is governed by the law in effect on the date it was published, and that law is continued in effect for that purpose. (d) The changes in law made by Sections 8 and 9 of this Act apply to a permit application pending before the Texas Commission on Environmental Quality on the effective date of those sections or filed with the commission on or after that date.
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