Amend HB 3960 by striking SECTION 10 of the bill (page 8, line 
1, through page 9, line 20) and substituting:
	SECTION 10.  Section 5.758, Water Code, is transferred to 
Subchapter D, Chapter 5, Water Code, and redesignated as Section 
5.123, Water Code, as follows:
	Sec. 5.123 [5.758].  REGULATORY FLEXIBILITY.  (a)  The 
commission by order may 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:
		(1)  more protective of the environment and the public 
health than the method or standard prescribed by the statute or 
commission rule that would otherwise apply; and
		(2)  not inconsistent with federal law.                                       
	(b)  The commission may not exempt an applicant under this 
section unless the applicant can present to the commission 
documented evidence of benefits to environmental quality that will 
result from the project the applicant proposes.
	(c)  The commission by rule shall specify the procedure for 
obtaining an exemption under this section.  The rules must provide 
for public notice and for public participation in a proceeding 
involving an application for an exemption under this section.
	(d)  The commission's order must provide a specific 
description of the alternative method or standard and condition the 
exemption on compliance with the method or standard as the order 
prescribes.
	(e)  The commission by rule may establish a reasonable fee 
for applying for an exemption under this section.
	(f)  A violation of an order issued under this section is 
punishable as if it were a violation of the statute or rule from 
which the order grants an exemption.
	(g)  This section does not authorize exemptions to statutes 
or regulations for storing, handling, processing, or disposing of 
low-level radioactive materials.
	(h)  In implementing the program of regulatory flexibility 
authorized by this section, the commission shall:
		(1)  market the program to businesses in the state 
through all available appropriate media;
		(2)  endorse alternative methods that will clearly 
benefit the environment and impose the least onerous restrictions 
on business;
		(3)  fix and enforce environmental standards, allowing 
businesses flexibility in meeting the standards in a manner that 
clearly enhances environmental outcomes; and
		(4)  work to achieve consistent and predictable results 
for the regulated community and shorter waits for permit issuance.