Amend CSSB 16 by adding the following appropriately numbered
SECTIONS to the bill and renumbering subsequent SECTIONS of the
bill accordingly:
SECTION ____. Section 2001.0225, Government Code, is
amended to read as follows:
Sec. 2001.0225. REGULATORY ANALYSIS OF MAJOR ENVIRONMENTAL
RULES. (a) This section applies only to a major environmental rule
adopted by a state agency, the result of which is to:
(1) exceed an express requirement of [a standard set
by] federal law, unless the rule is specifically required by state
law;
(2) exceed an express requirement of state law, unless
the rule is specifically required by federal law; or
(3) [exceed a requirement of a delegation agreement or
contract between the state and an agency or representative of the
federal government to implement a state and federal program; or
[(4)] adopt a rule solely under the general powers of
the agency instead of under a specific state law.
(b) Before adopting a major environmental rule subject to
this section, a state agency shall conduct a regulatory analysis. A
regulatory analysis of a major environmental rule conducted under
this section must provide the public with transparency regarding
the cost-effectiveness of the rule, including the economic costs
and the economic benefits weighed by the agency in adopting the
rule. The regulatory analysis does not preclude the agency from
adopting the rule [that:
[(1) identifies the problem the rule is intended to
address;
[(2) determines whether a new rule is necessary to
address the problem; and
[(3) considers the benefits and costs of the proposed
rule in relationship to state agencies, local governments, the
public, the regulated community, and the environment].
(c) When giving notice of a major environmental rule subject
to this section, a state agency shall incorporate into the fiscal
note required by Section 2001.024 a draft impact analysis
describing the anticipated effects of the proposed rule. The draft
impact analysis, at a minimum, must:
(1) identify the problem the rule is intended to
address and the benefits that the agency anticipates from adoption
and implementation of the rule, including reduced risks to human
health, safety, or the environment;
(2) identify and describe in a quantitative and
qualitative manner the costs that the agency anticipates state
agencies, local governments, the public, and the regulated
community, including regulated small businesses, will experience
after implementation of the rule; and
(3) identify and [describe the benefits and costs
anticipated from implementation of the rule in as quantitative a
manner as feasible, but including a qualitative description when a
quantitative description is not feasible or adequately
descriptive;
[(4)] describe reasonable alternative methods of
compliance, including performance-based and market-based
approaches [for achieving the purpose of the rule that were
considered by the agency and provide the reasons for rejecting
those alternatives in favor of the proposed rule;
[(5) identify the data and methodology used in
performing the analysis required by this section;
[(6) provide an explanation of whether the proposed
rule specifies a single method of compliance, and, if so, explain
why the agency determines that a specified method of compliance is
preferable to adopting a flexible regulatory approach, such as a
performance oriented, voluntary, or market based approach;
[(7) state that there is an opportunity for public
comment on the draft impact analysis under Section 2001.029 and
that all comments will be addressed in the publication of the final
regulatory analysis; and
[(8) provide information in such a manner that a
reasonable person reading the analysis would be able to identify
the impacts of the proposed rule].
(d) After considering public comments submitted under
Section 2001.029 and determining that a proposed rule should be
adopted, the agency shall prepare a final regulatory analysis under
this section that complies with Section 2001.033. [Additionally,
the agcncy shall find that, compared to the alternative proposals
considered and rejected, the rule will result in the best
combination of effectiveness in obtaining the desired results and
of economic costs not materially greater than the costs of any
alternative regulatory method considered.]
(e) [In preparing the draft impact analysis before
publication for comment and the final regulatory analysis for the
agency order adopting the rule, the state agency shall consider
that the purpose of this requirement is to identify for the public
and the regulated community the information that was considered by
the agency, the information that the agency determined to be
relevant and reliable, and the assumptions and facts on which the
agency made its regulatory decision.] In making its final
regulatory decision, the agency shall assess and consider:
(1) all information submitted to it, whether
quantitative or qualitative, consistent with generally accepted
scientific standards;
(2) actual data where possible; and
(3) assumptions that reflect actual impacts that the
regulation is likely to impose.
(f) A person who submitted public comment in accordance with
Section 2001.029 may challenge the validity of a major
environmental rule that is not proposed and adopted strictly in
accordance with the procedural requirements of this section by
filing an action for declaratory judgment under Section 2001.038
not later than the 30th day after the effective date of the rule. If
a court determines that a major environmental rule was not proposed
and adopted strictly in accordance with the procedural requirements
of this section, the rule is invalid.
(g) In this section:
(1) "Benefit" means a reasonably identifiable,
significant, direct or indirect, favorable effect, including a
quantifiable or nonquantifiable environmental, health, or economic
effect, that is expected to result from implementation of a rule.
(2) "Cost" means a reasonably identifiable,
significant, direct or indirect, adverse effect, including a
quantifiable or nonquantifiable environmental, health, or economic
effect, that is expected to result from implementation of a rule.
(3) "Major environmental rule" means a rule the
specific intent of which is to:
(A) protect the environment or reduce risks to
human health from environmental exposure and that may adversely
affect [in a material way] the economy, a sector of the economy,
productivity, competition, jobs, the environment, or the public
health and safety of the state or a sector of the state;
(B) control or monitor emissions of:
(i) criteria pollutants that are subject to
a federal air quality standard under 40 C.F.R. Part 50, including
sulfur dioxide, particulate matter, carbon monoxide, ozone,
nitrogen dioxide, and lead;
(ii) precursors of ozone, which include
oxides of nitrogen and volatile organic compounds; and
(iii) greenhouse gases, which include
carbon dioxide, methane, nitrous oxide, hydrofluorocarbons,
perfluorocarbons, and sulfur hexafluoride; or
(C) change an existing agency rule or policy in a
way that adds a new, substantive, or procedural requirement:
(i) that must be met by a regulated entity;
and
(ii) a violation of which by a regulated
entity would subject the entity to administrative, civil, or
criminal penalties.
(h) The requirements of this section do not apply to state
agency rules that are proposed or adopted on an emergency basis to
protect the environment or to reduce risks to human health from
environmental exposure.
SECTION ____. Section 2001.035(a), Government Code, is
amended to read as follows:
(a) A rule is voidable unless a state agency adopts it:
(1) in substantial compliance with Sections 2001.023
[2001.0225] through 2001.034; or
(2) in strict compliance with Section 2001.0225, if
applicable.