82R6406 SLB-D

By: Smith of Harris H.B. No. 2694

A BILL TO BE ENTITLED

AN ACT

relating to the continuation and functions of the Texas Commission on Environmental Quality and abolishing the On-site Wastewater Treatment Research Council.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

ARTICLE 1. GENERAL PROVISIONS

SECTION 1.01. The heading to Chapter 5, Water Code, is amended to read as follows:

CHAPTER 5. TEXAS [NATURAL RESOURCE CONSERVATION] COMMISSION ON

ENVIRONMENTAL QUALITY

SECTION 1.02. Section 5.014, Water Code, is amended to read as follows:

Sec. 5.014. SUNSET PROVISION. The Texas [Natural Resource Conservation] Commission on Environmental Quality is subject to Chapter 325, Government Code (Texas Sunset Act). Unless continued in existence as provided by that chapter, the commission is abolished and this chapter expires September 1, 2023 [2011].

SECTION 1.03. Subchapter C, Chapter 5, Water Code, is amended by adding Section 5.061 to read as follows:

Sec. 5.061. PROHIBITION ON ACCEPTING CAMPAIGN CONTRIBUTIONS. A member of the commission may not accept a contribution to a campaign for election to an elected office. If a member of the commission accepts a campaign contribution, the person is considered to have resigned from the office and the office immediately becomes vacant. The vacancy shall be filled in the manner provided by law.

SECTION 1.04. Subchapter D, Chapter 5, Water Code, is amended by adding Section 5.1031 to read as follows:

Sec. 5.1031. NEGOTIATED RULEMAKING AND ALTERNATIVE DISPUTE RESOLUTION. (a) The commission shall develop and implement a policy to encourage the use of:

(1) negotiated rulemaking procedures under Chapter 2008, Government Code, for the adoption of commission rules; and

(2) appropriate alternative dispute resolution procedures under Chapter 2009, Government Code, to assist in the resolution of internal and external disputes under the commission's jurisdiction.

(b) The commission's procedures relating to alternative dispute resolution must conform, to the extent possible, to any model guidelines issued by the State Office of Administrative Hearings for the use of alternative dispute resolution by state agencies.

(c) The commission shall:

(1) coordinate the implementation of the policy adopted under Subsection (a);

(2) provide training as needed to implement the procedures for negotiated rulemaking or alternative dispute resolution; and

(3) collect data concerning the effectiveness of those procedures.

SECTION 1.05. Section 12.052(a), Water Code, is amended to read as follows:

(a) The commission shall make and enforce rules and orders and shall perform all other acts necessary to provide for the safe construction, maintenance, repair, and removal of dams located in this state. In performing the commission's duties under this subsection, the commission shall identify and focus on the most hazardous dams in the state.

ARTICLE 2. TRANSFER OF CERTAIN DUTIES TO THE RAILROAD COMMISSION

SECTION 2.01. Section 91.011, Natural Resources Code, is amended to read as follows:

Sec. 91.011. CASING. (a) Before drilling into the oil or gas bearing rock, the owner or operator of a well being drilled for oil or gas shall encase the well with good and sufficient wrought iron or steel casing or with any other material that meets standards adopted by the commission, particularly where wells could be subjected to corrosive elements or high pressures and temperatures, in a manner and to a depth that will exclude surface or fresh water from the lower part of the well from penetrating the oil or gas bearing rock, and if the well is drilled through the first into the lower oil or gas bearing rock, the well shall be cased in a manner and to a depth that will exclude fresh water above the last oil or gas bearing rock penetrated.

(b) The commission shall adopt rules regarding the depth of well casings necessary to meet the requirements of this section.

SECTION 2.02. Subchapter B, Chapter 91, Natural Resources Code, is amended by adding Section 91.0115 to read as follows:

Sec. 91.0115. CASING; LETTER OF DETERMINATION. (a) The commission shall issue, on request from an applicant for a permit for a well to be drilled into oil or gas bearing rock, a letter of determination stating the total depth of surface casing required for the well by Section 91.011.

(b) The commission may charge a fee in an amount to be determined by the commission for a letter of determination.

(c) The commission shall charge a fee not to exceed $75, in addition to the fee required by Subsection (b), for processing a request to expedite a letter of determination. Money collected under this subsection may be used only to study and evaluate electronic access to geologic data and surface casing depths under Section 91.020.

SECTION 2.03. Subchapter B, Chapter 91, Natural Resources Code, is amended by adding Section 91.020 to read as follows:

Sec. 91.020. ELECTRONIC GEOLOGIC DATA. The commission shall work cooperatively with other appropriate state agencies to study and evaluate electronic access to geologic data and surface casing depths necessary to protect usable groundwater in this state.

SECTION 2.04. Section 27.033, Water Code, is amended to read as follows:

Sec. 27.033. LETTER OF DETERMINATION [FROM EXECUTIVE DIRECTOR]. A person making application to the railroad commission for a permit under this chapter shall submit with the application a letter of determination from the railroad commission [from the executive director] stating that drilling and using the disposal well and injecting oil and gas waste into the subsurface stratum will not endanger the freshwater strata in that area and that the formation or stratum to be used for the disposal is not freshwater sand.

SECTION 2.05. Section 27.046, Water Code, is amended to read as follows:

Sec. 27.046. LETTER OF DETERMINATION [FROM EXECUTIVE DIRECTOR]. (a) The railroad commission may not issue a permit under rules adopted under this subchapter until the commission issues to the applicant for the permit [provides to the railroad commission] a letter of determination [from the executive director] stating that drilling and operating the anthropogenic carbon dioxide injection well for geologic storage or operating the geologic storage facility will not injure any freshwater strata in that area and that the formation or stratum to be used for the geologic storage facility is not freshwater sand.

(b) To make the determination required by Subsection (a), the railroad commission [executive director] shall review:

(1) the area of review and corrective action plans;

(2) any subsurface monitoring plans required during injection or post injection;

(3) any postinjection site care plans; and

(4) any other elements of the application reasonably required in order for the railroad commission [executive director] to make the determination required by Subsection (a).

(c) The railroad commission shall adopt rules to implement and administer this section.

SECTION 2.06. Section 5.701(r), Water Code, is repealed.

SECTION 2.07. (a) The Railroad Commission of Texas shall adopt rules to implement the changes in law made by this article not later than March 1, 2012.

(b) A rule, form, policy, or procedure of the Texas Commission on Environmental Quality related to the changes in law made by this article continues in effect as a rule, form, policy, or procedure of the Railroad Commission of Texas and remains in effect until amended or replaced by that agency.

ARTICLE 3. PUBLIC INTEREST

SECTION 3.01. Subchapter F, Chapter 5, Water Code, is amended by adding Section 5.239 to read as follows:

Sec. 5.239. PUBLIC EDUCATION AND ASSISTANCE. (a) The executive director shall ensure that the agency is responsive to environmental and citizens' concerns, including environmental quality and consumer protection.

(b) The executive director shall develop and implement a program to:

(1) provide a centralized point for the public to access information about the commission and to learn about matters regulated by the commission;

(2) identify and assess the concerns of the public in regard to matters regulated by the commission; and

(3) respond to the concerns identified by the program.

SECTION 3.02. Section 5.271, Water Code, is amended to read as follows:

Sec. 5.271. CREATION AND GENERAL RESPONSIBILITY OF THE OFFICE OF PUBLIC INTEREST COUNSEL. The office of public interest counsel is created to ensure that the commission promotes the public's interest [and is responsive to environmental and citizens' concerns including environmental quality and consumer protection]. The primary duty of the office is to represent the public interest as a party to matters before the commission.

SECTION 3.03. Subchapter G, Chapter 5, Water Code, is amended by adding Section 5.2725 to read as follows:

Sec. 5.2725. ANNUAL REPORT; PERFORMANCE MEASURES. (a) The office of public interest counsel shall report to the commission each year in a public meeting held on a date determined by the commission to be timely for the commission to include the reported information in the commission's reports under Sections 5.178(a) and (b) and in the commission's biennial legislative appropriations requests as appropriate:

(1) an evaluation of the office's performance in representing the public interest in the preceding year;

(2) an assessment of the budget needs of the office, including the need to contract for outside expertise; and

(3) any legislative or regulatory changes recommended under Section 5.273.

(b) The commission and the office of public interest counsel shall work cooperatively to identify performance measures for the office.

SECTION 3.04. Subchapter G, Chapter 5, Water Code, is amended by adding Section 5.276 to read as follows:

Sec. 5.276. FACTORS FOR PUBLIC INTEREST REPRESENTATION. (a) The commission by rule, after consideration of recommendations from the office of public interest counsel, shall establish factors the public interest counsel must consider before the public interest counsel decides to represent the public interest as a party to a commission proceeding.

(b) Rules adopted under this section must include:

(1) factors to determine the nature and extent of the public interest; and

(2) factors to consider in prioritizing the workload of the office of public interest counsel.

ARTICLE 4. COMPLIANCE AND ENFORCEMENT

SECTION 4.01. Section 5.753, Water Code, is amended by amending Subsections (a) and (b) and adding Subsection (d-1) to read as follows:

(a) Consistent with other law and the requirements necessary to maintain federal program authorization, the commission by rule shall develop a method [uniform standard] for evaluating compliance history that ensures consistency in the evaluation. In developing the method, the commission may account for differences among regulated entities.

(b) The components of compliance history must include:

(1) except for orders described by Subsection (d-1)(2), enforcement orders, court judgments, consent decrees, and criminal convictions of this state and the federal government relating to compliance with applicable legal requirements under the jurisdiction of the commission or the United States Environmental Protection Agency;

(2) notwithstanding any other provision of this code, orders issued under Section 7.070;

(3) to the extent readily available to the commission, enforcement orders, court judgments, and criminal convictions relating to violations of environmental laws of other states; and

(4) changes in ownership.

(d-1) The components of compliance history may include:

(1) information related to the complexity of the regulated entity, including:

(A) the complexity of the regulatory requirements applicable to the entity; and

(B) the severity of the consequences of noncompliance by the entity;

(2) enforcement orders issued without penalties, shutdown orders, or other punitive sanctions; and

(3) any other positive compliance factors related to the regulated entity.

SECTION 4.02. Section 5.754(d), Water Code, is amended to read as follows:

(d) The commission by rule may require [shall establish methods of assessing the compliance history of regulated entities for which it does not have adequate compliance information. The methods may include requiring] a compliance inspection to determine an entity's eligibility for participation in a program that requires a high level of compliance.

SECTION 4.03. Subchapter A, Chapter 7, Water Code, is amended by adding Section 7.006 to read as follows:

Sec. 7.006. ENFORCEMENT POLICIES. (a) The commission by rule shall adopt a general enforcement policy that describes the commission's approach to enforcement.

(b) The commission shall assess, update, and publicly adopt specific enforcement policies regularly, including policies regarding the calculation of penalties.

(c) The commission shall make the policies available to the public, including by posting the policies on the commission's Internet website.

SECTION 4.04. Sections 7.052(a) and (c), Water Code, are amended to read as follows:

(a) The amount of the penalty for a violation of Chapter 37 of this code, Chapter 366, 371, or 372, Health and Safety Code, or Chapter 1903, Occupations Code, may not be less than $50 or greater than $5,000 [exceed $2,500] a day for each violation.

(c) The amount of the penalty for all other violations within the jurisdiction of the commission to enforce may not be less than $50 or greater than $25,000 [exceed $10,000] a day for each violation.

SECTION 4.05. Section 7.067, Water Code, is amended to read as follows:

Sec. 7.067. SUPPLEMENTAL ENVIRONMENTAL PROJECTS. (a) The commission may compromise, modify, or remit, with or without conditions, an administrative penalty imposed under this subchapter. In determining the appropriate amount of a penalty for settlement of an administrative enforcement matter, the commission may consider a respondent's willingness to contribute to supplemental environmental projects that are approved by the commission, giving preference to projects that benefit the community in which the alleged violation occurred. The commission may encourage the cleanup of contaminated property through the use of supplemental environmental projects. The commission may approve a supplemental environmental project with activities in territory of the United Mexican States if the project substantially benefits territory in this state in a manner described by Subsection (b). Except as provided by Subsection (a-1), the [The] commission may not approve a project that is necessary to bring a respondent into compliance with environmental laws, that is necessary to remediate environmental harm caused by the respondent's alleged violation, or that the respondent has already agreed to perform under a preexisting agreement with a governmental agency.

(a-1) The commission may approve a supplemental environmental project that is necessary to bring a respondent into compliance with environmental laws or that is necessary to remediate environmental harm caused by the respondent's alleged violation if the respondent is a local government.

(a-2) The commission shall develop a policy to prevent regulated entities from systematically avoiding compliance through the use of supplemental environmental projects under Subsection (a-1), including rules requiring an assessment of:

(1) the entity's financial ability to pay administrative penalties;

(2) the ability of the entity to remediate the harm or come into compliance; and

(3) the need for corrective action.

(b) In this section:

(1) "Local government" means a school district, county, municipality, junior college district, river authority, water district or other special district, or other political subdivision created under the constitution or a statute of this state.

(2) "Supplemental [, "supplemental] environmental project" means a project that prevents pollution, reduces the amount of pollutants reaching the environment, enhances the quality of the environment, or contributes to public awareness of environmental matters.

SECTION 4.06. Section 13.4151(a), Water Code, is amended to read as follows:

(a) If a person, affiliated interest, or entity subject to the jurisdiction of the commission violates this chapter or a rule or order adopted under this chapter, the commission may assess a penalty against that person, affiliated interest, or entity as provided by this section. The penalty may be in an amount not less than $100 or greater than $5,000 [to exceed $500] a day. Each day a violation continues may be considered a separate violation.

SECTION 4.07. Section 26.3467, Water Code, is amended by adding Subsection (d) to read as follows:

(d) A person may not deliver any regulated substance into an underground storage tank regulated under this chapter unless the underground storage tank has been issued a valid, current underground storage tank registration and certificate of compliance under Section 26.346. The commission may impose an administrative penalty against a person who violates this subsection. The commission shall adopt rules as necessary to enforce this subsection.

SECTION 4.08. Section 26.351, Water Code, is amended by adding Subsections (c-1) and (c-2) to read as follows:

(c-1) The commission may undertake corrective action to remove an underground or aboveground storage tank that:

(1) is not in compliance with the requirements of this chapter;

(2) is out of service;

(3) presents a contamination risk; and

(4) is owned or operated by a person who is financially unable to remediate the tank.

(c-2) The commission shall adopt rules to implement Subsection (c-1), including rules regarding:

(1) the determination of the financial ability of the tank owner or operator to remediate the tank; and

(2) the assessment of the potential risk of contamination from the site.

SECTION 4.09. Section 26.3573(d), Water Code, is amended to read as follows:

(d) The commission may use the money in the petroleum storage tank remediation account to pay:

(1) necessary expenses associated with the administration of the petroleum storage tank remediation account and the groundwater protection cleanup program;

(2) expenses associated with investigation, cleanup, or corrective action measures performed in response to a release or threatened release from a petroleum storage tank, whether those expenses are incurred by the commission or pursuant to a contract between a contractor and an eligible owner or operator as authorized by this subchapter;

(3) subject to the conditions of Subsection (f), expenses associated with investigation, cleanup, or corrective action measures performed in response to a release or threatened release of hydraulic fluid or spent oil from hydraulic lift systems or tanks located at a vehicle service and fueling facility and used as part of the operations of that facility; [and]

(4) expenses associated with assuring compliance with the commission's applicable underground or aboveground storage tank administrative and technical requirements, including technical assistance and support, inspections, enforcement, and the provision of matching funds for grants; and

(5) expenses associated with investigation, cleanup, or corrective action measures performed under Section 26.351(c-1).

SECTION 4.10. Section 26.3574, Water Code, is amended by amending Subsection (b) and adding Subsection (b-1) to read as follows:

(b) A fee is imposed on the delivery of a petroleum product on withdrawal from bulk of that product as provided by this subsection. Each operator of a bulk facility on withdrawal from bulk of a petroleum product shall collect from the person who orders the withdrawal a fee in an amount determined as follows:

(1) not more than $3.75 for each delivery into a cargo tank having a capacity of less than 2,500 gallons [for the state fiscal year beginning September 1, 2007, through the state fiscal year ending August 31, 2011];

(2) not more than $7.50 for each delivery into a cargo tank having a capacity of 2,500 gallons or more but less than 5,000 gallons [for the state fiscal year beginning September 1, 2007, through the state fiscal year ending August 31, 2011];

(3) not more than $11.75 for each delivery into a cargo tank having a capacity of 5,000 gallons or more but less than 8,000 gallons [for the state fiscal year beginning September 1, 2007, through the state fiscal year ending August 31, 2011];

(4) not more than $15.00 for each delivery into a cargo tank having a capacity of 8,000 gallons or more but less than 10,000 gallons [for the state fiscal year beginning September 1, 2007, through the state fiscal year ending August 31, 2011]; and

(5) not more than $7.50 for each increment of 5,000 gallons or any part thereof delivered into a cargo tank having a capacity of 10,000 gallons or more [for the state fiscal year beginning September 1, 2007, through the state fiscal year ending August 31, 2011].

(b-1) The commission by rule shall set the amount of the fee in Subsection (b) in an amount not to exceed the amount necessary to cover the agency's costs of administering this subchapter, as indicated by the amount appropriated by the legislature from the petroleum storage tank remediation account for that purpose.

SECTION 4.11. (a) Not later than September 1, 2012, the Texas Commission on Environmental Quality by rule shall establish the method for evaluating compliance history as required by Section 5.753(a), Water Code, as amended by this article. Until the commission adopts that method, the commission shall continue in effect its current standard for evaluating compliance history.

(b) The changes in law made by Sections 7.052 and 13.4151, Water Code, as amended by this article, apply only to a violation that occurs on or after the effective date of this Act. For purposes of this section, a violation occurs before the effective date of this Act if any element of the violation occurs before that date. A violation that occurs before the effective date of this Act is covered by the law in effect on the date the violation occurred, and the former law is continued in effect for that purpose.

(c) The change in law made by Section 26.3467(d), Water Code, as added by this article, applies only to a delivery of a regulated substance to a petroleum storage tank made on or after the effective date of this Act.

ARTICLE 5. WATER RIGHTS

SECTION 5.01. Section 11.031, Water Code, is amended by adding Subsections (d), (e), and (f) to read as follows:

(d) Each person who has a water right issued by the commission or who impounds, diverts, or otherwise uses state water shall maintain water use information on a monthly basis during the months a water rights holder uses permitted water. The person shall make the information available to the commission on the commission's request.

(e) The commission may request information maintained under Subsection (d) only during a drought or other emergency shortage of water.

(f) A person submitting a report under Subsection (a) is not required to include information maintained under Subsection (d).

SECTION 5.02. Subchapter B, Chapter 11, Water Code, is amended by adding Section 11.053 to read as follows:

Sec. 11.053. EMERGENCY ORDER CONCERNING WATER RIGHTS. (a) During a period of drought or other emergency shortage of water, the executive director by order may:

(1) temporarily suspend the right of any person who holds a water right to use the water; and

(2) adjust the allocation of water between water rights holders.

(b) The executive director in ordering a suspension or an allocation adjustment under this section shall ensure that an action taken:

(1) maximizes the beneficial use of water;

(2) minimizes the impact on water rights holders; and

(3) prevents the waste of water.

(c) The commission shall adopt rules to implement this section, including rules to determine the conditions under which the executive director may take action under this section.

SECTION 5.03. Section 11.326, Water Code, is amended by adding Subsections (g) and (h) to read as follows:

(g) For a water basin in which a watermaster is not appointed, the executive director shall:

(1) evaluate the water basin at least once every five years to determine whether a watermaster should be appointed; and

(2) report the findings and make recommendations to the commission.

(h) The commission shall:

(1) determine the criteria or risk factors to be considered in an evaluation under Subsection (g); and

(2) include the findings and recommendations under Subsection (g) in the commission's biennial report to the legislature.

ARTICLE 6. FUNDING

SECTION 6.01. Section 401.246(a), Health and Safety Code, is amended to read as follows:

(a) Compact waste disposal fees adopted by the commission must be sufficient to:

(1) allow the compact waste facility license holder to recover costs of operating and maintaining the compact waste disposal facility and a reasonable profit on the operation of that facility;

(2) provide an amount necessary to meet future costs of decommissioning, closing, and postclosure maintenance and surveillance of the compact waste disposal facility and the compact waste disposal facility portion of the disposal facility site;

(3) provide an amount to fund local public projects under Section 401.244;

(4) provide a reasonable rate of return on capital investment in the facilities used for management or disposal of compact waste at the compact waste disposal facility; [and]

(5) provide an amount necessary to pay compact waste disposal facility licensing fees, to pay compact waste disposal facility fees set by rule or statute, and to provide security for the compact waste disposal facility as required by the commission under law and commission rules; and

(6) provide an amount necessary to support the activities of the Texas Low-Level Radioactive Waste Compact Commission.

SECTION 6.02. Subchapter F, Chapter 401, Health and Safety Code, is amended by adding Section 401.251 to read as follows:

Sec. 401.251. LOW-LEVEL RADIOACTIVE WASTE DISPOSAL COMPACT COMMISSION ACCOUNT. (a) The low-level radioactive waste disposal compact commission account is an account in the general revenue fund.

(b) The commission shall deposit in the account the portion of the fee collected under Section 401.245 that is calculated to support the activities of the Texas Low-Level Radioactive Waste Disposal Compact Commission as required by Section 4.04(4), Texas Low-Level Radioactive Waste Disposal Compact (Section 403.006 of this code).

(c) Money in the account may be appropriated only to support the operations of the Texas Low-Level Radioactive Waste Disposal Compact Commission.

SECTION 6.03. Sections 5.701(n) and (p), Water Code, are amended to read as follows:

(n)(1) Each provider of potable water or sewer utility service shall collect a regulatory assessment from each retail customer as follows:

(A) A public utility as defined in Section 13.002 [of this code] shall collect from each retail customer a regulatory assessment equal to one percent of the charge for retail water or sewer service.

(B) A water supply or sewer service corporation as defined in Section 13.002 [of this code] shall collect from each retail customer a regulatory assessment equal to [one-half of] one percent of the charge for retail water or sewer service.

(C) A district as defined in Section 49.001 [of this code] that provides potable water or sewer utility service to retail customers shall collect from each retail customer a regulatory assessment equal to [one-half of] one percent of the charge for retail water or sewer service.

(2) The regulatory assessment may be listed on the customer's bill as a separate item and shall be collected in addition to other charges for utility services.

(3) The [commission shall use the] assessments collected under this subsection may be appropriated only to the commission or to the Public Utility Commission of Texas solely to pay costs and expenses incurred by the agency [commission] in the regulation of districts, water supply or sewer service corporations, and public utilities under Chapter 13[, Water Code].

(4) The commission shall annually use a portion of the assessments to provide on-site technical assistance and training to public utilities, water supply or sewer service corporations, and districts. The commission shall contract with others to provide the services.

(5) The commission by rule may establish due dates, collection procedures, and penalties for late payment related to regulatory assessments under this subsection. The executive director shall collect all assessments from the utility service providers.

(6) The commission shall assess a penalty against a municipality with a population of more than 1.5 million that does not provide municipal water and sewer services in an annexed area in accordance with Section 43.0565, Local Government Code. A penalty assessed under this paragraph shall be not more than $1,000 for each day the services are not provided after March 1, 1998, for areas annexed before January 1, 1993, or not provided within 4-1/2 years after the effective date of the annexation for areas annexed on or after January 1, 1993. A penalty collected under this paragraph shall be deposited to the credit of the water resource management account to be used to provide water and sewer service to residents of the city.

(7) The regulatory assessment does not apply to water that has not been treated for the purpose of human consumption.

(p) Notwithstanding any other law, fees collected for deposit to the water resource management account under the following statutes may be appropriated and used to protect water resources in this state, including assessment of water quality, reasonably related to the activities of any of the persons required to pay a fee under:

(1) Subsection (b), to the extent those fees are paid by water districts, and Subsections (e), (f), and (n);

(2) [Sections 13.4521 and 13.4522; or

[(3)] Section 54.037(c); or

(3) Section 367.010, Health and Safety Code.

SECTION 6.04. Subchapter L, Chapter 13, Water Code, is repealed.

ARTICLE 7. WATER AND SEWER UTILITIES

SECTION 7.01. Subchapter E, Chapter 13, Water Code, is amended by adding Section 13.1325 to read as follows:

Sec. 13.1325. ELECTRONIC COPIES OF RATE INFORMATION. The state agency with jurisdiction over rates charged by water and sewer utilities shall provide to a ratepayer, at a reasonable cost to the ratepayer, electronic copies of information provided to the agency under Sections 13.016, 13.043, and 13.187, to the extent that the information is available and not confidential.

ARTICLE 8. ABOLITION OF THE ON-SITE WASTEWATER TREATMENT RESEARCH

COUNCIL

SECTION 8.01. The heading to Chapter 367, Health and Safety Code, is amended to read as follows:

CHAPTER 367. ON-SITE WASTEWATER TREATMENT RESEARCH [COUNCIL]

SECTION 8.02. Section 367.001, Health and Safety Code, is amended to read as follows:

Sec. 367.001. DEFINITIONS. In this chapter:

(1) "Commission" means the Texas Commission on Environmental Quality [Natural Resource Conservation Commission].

(2) ["Council" means the On-site Wastewater Treatment Research Council.

[(3)] "On-site wastewater treatment system" means a system of treatment devices or disposal facilities that:

(A) is used for the disposal of domestic sewage, excluding liquid waste resulting from the processes used in industrial and commercial establishments;

(B) is located on the site where the sewage is produced; and

(C) produces not more than 5,000 gallons of waste a day.

SECTION 8.03. Section 367.007, Health and Safety Code, is amended to read as follows:

Sec. 367.007. ADMINISTRATION. (a) [The council is not an advisory body to the commission. The commission, at the direction of the council, shall implement council decisions.

[(b) The council may enter into an interagency contract with the commission to provide staff and other administrative support as required to improve the quality of wastewater treatment and reduce the cost of providing wastewater treatment to consumers.

[(c)] The commission [council] may accept grants and donations from other sources to supplement the fees collected under Section 367.010. Grants and donations shall be deposited to the credit of the water resource management [on-site wastewater treatment research] account and may be disbursed as the commission [council] directs and in accordance with Section 367.008.

(b) [(d)] Administrative and facilities support costs are payable from the water resources management [on-site wastewater treatment research] account.

[(e) The council may award grants and enter into contracts in its own name and on its own behalf.]

SECTION 8.04. Section 367.008, Health and Safety Code, is amended to read as follows:

Sec. 367.008. AWARD OF COMPETITIVE GRANTS. (a) The commission [council] shall establish procedures for awarding competitive grants and disbursing grant money.

(b) The commission [council] may award competitive grants to:

(1) support applied research and demonstration projects by accredited colleges and universities in this state, by other governmental entities, or by acceptable public or private research centers regarding on-site wastewater treatment technology and systems applicable to this state that are directed toward improving the quality of wastewater treatment and reducing the cost of providing wastewater treatment to consumers; and

(2) enhance technology transfer regarding on-site wastewater treatment by using educational courses, seminars, symposia, publications, and other forms of information dissemination.

(c) The commission shall seek the advice of relevant experts when choosing research topics, awarding grants, and holding educational conferences associated with activities under this chapter. [The council may award grants or make other expenditures authorized under this chapter only after the comptroller certifies that the on-site wastewater treatment research account contains enough money to pay for those expenditures.]

SECTION 8.05. Section 367.009, Health and Safety Code, is amended to read as follows:

Sec. 367.009. APPROPRIATIONS. Money appropriated for the purposes of this chapter shall be disbursed as the commission [council] directs and in accordance with Section 367.008.

SECTION 8.06. Section 367.010(d), Health and Safety Code, is amended to read as follows:

(d) The fee proceeds shall be deposited to the credit of the water resources management [on-site wastewater treatment research] account.

SECTION 8.07. Sections 367.002, 367.003, 367.004, 367.005, 367.006, and 367.011, Health and Safety Code, are repealed.

SECTION 8.08. (a) On the effective date of this Act, the Texas Commission on Environmental Quality shall assume the administration of all grants of the On-site Wastewater Treatment Research Council in existence on that date.

(b) The Texas Commission on Environmental Quality shall assume all contracts held by the On-site Wastewater Treatment Research Council on the effective date of this Act, including all rights and obligations associated with the contracts.

ARTICLE 9. EFFECTIVE DATE

SECTION 9.01. This Act takes effect September 1, 2011.