By: Hegar S.B. No. 467

(In the Senate - Filed February 11, 2013; February 13, 2013, read first time and referred to Committee on Natural Resources; April 3, 2013, reported favorably by the following vote: Yeas 9, Nays 0; April 3, 2013, sent to printer.)

A BILL TO BE ENTITLED

AN ACT

relating to the regulatory analysis of rules proposed by the Texas Commission on Environmental Quality.

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

SECTION 1. Subchapter D, Chapter 5, Water Code, is amended by adding Section 5.1032 to read as follows:

Sec. 5.1032. ADOPTION OF ENVIRONMENTAL RULES. (a) In this section:

(1) "Cost" means a reasonably identifiable and significant direct or indirect economic effect.

(2) "Environmental effect" means a reasonably identifiable and quantifiable effect or outcome affecting the environment, including air, soil, or water quality.

(3) "Environmental rule" means a rule the specific intent of which is to protect the environment or reduce risks to human health from environmental exposure.

(4) "Small business" means a business that employs not more than 250 individuals.

(b) Before adopting an environmental rule, the commission shall conduct a regulatory analysis that weighs the costs and environmental effects expected to result from implementation of and compliance with the rule.

(c) When giving notice of an environmental rule, the commission shall incorporate into the fiscal note required by Section 2001.024, Government Code, 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;

(2) identify the environmental effects that the agency expects to result from implementation of and compliance with the rule, including the projected level of reduction of pollutants or contaminants in air, water, and soil media;

(3) identify and describe the costs that the agency expects that state agencies, local governments, the public, and the affected regulated entities, other than small businesses, will incur from implementation of and compliance with the rule; and

(4) identify and describe in a separate economic impact analysis the costs that the agency expects that small businesses will incur from implementation of and compliance with the rule.

(d) In identifying the environmental effects of a rule under Subsection (c)(2), the commission shall include the modeled improvement for the criteria pollutant design value expected from implementation of the rule, if the rule will be included in this state's air quality state implementation plan.

(e) After considering public comments submitted under Section 2001.029, Government Code, and determining that a proposed rule should be adopted, the agency shall prepare a final regulatory analysis that complies with Section 2001.033, Government Code.

(f) A person who submitted a comment in accordance with Section 2001.029, Government Code, may challenge the validity of an environmental rule that is not proposed and adopted in strict compliance with the procedural requirements of this section by filing an action for declaratory judgment as provided by Section 2001.038, Government Code, not later than the 30th day after the effective date of the rule. If the court determines that an environmental rule was not proposed and adopted in strict compliance with the procedural requirements of this section, the rule is invalid provided that a rule to be included in this state's air quality state implementation plan may not be invalidated for failure of strict compliance if the invalidation will prevent the timely implementation of a federal requirement.

SECTION 2. The change in law made by this Act applies only to a rule proposed by the Texas Commission on Environmental Quality for which notice is given under Sections 2001.023 and 2001.024, Government Code, on or after December 1, 2013.

SECTION 3. This Act takes effect September 1, 2013.

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