| |
| |
|
|
A BILL TO BE ENTITLED
|
|
|
AN ACT
|
|
|
relating to a voluntary financial assurance program for permit |
|
|
holders under the Texas Pollutant Discharge Elimination System. |
|
|
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
|
|
SECTION 1. Subchapter B, Chapter 26, Water Code, is amended |
|
|
by adding Section 26.054 to read as follows: |
|
|
Sec. 26.054. VOLUNTARY FINANCIAL ASSURANCE PROGRAM. (a) |
|
|
In this section, "permit holder" means the holder of a permit to |
|
|
discharge effluent into any body of water under the NPDES. |
|
|
(b) The commission shall establish a program to allow a |
|
|
permit holder to deposit with the commission an amount of money or |
|
|
evidence of equivalent financial assurance to be held by the |
|
|
commission to be used in the event the permit holder causes a |
|
|
discharge that violates the terms of the agreement described by |
|
|
Subsection (c). |
|
|
(c) The program established under this section shall |
|
|
require an agreement between the permit holder and interested |
|
|
parties in the community affected by the facility or proposed |
|
|
facility. The agreement may be entered into at any time before the |
|
|
issuance of the relevant NPDES permit. An agreement under this |
|
|
subsection: |
|
|
(1) must include provisions allowing for the |
|
|
cancellation of the agreement and return of the financial assurance |
|
|
to the permit holder in the event that a party that is not a party to |
|
|
the agreement seeks to demand a contested case regarding the NPDES |
|
|
permit that is the subject of the agreement; |
|
|
(2) may only include provisions that restrict |
|
|
discharge that specify: |
|
|
(A) the amount of discharge allowed; |
|
|
(B) the frequency of discharge allowed; and |
|
|
(C) the minimum flow that must be present in |
|
|
order for a discharge to be allowed; and |
|
|
(3) must include: |
|
|
(A) the total amount of financial assurance; and |
|
|
(B) specific amounts to be deducted if the permit |
|
|
holder violates a provision of the agreement. |
|
|
(d) The commission shall adopt rules necessary to implement |
|
|
the program created under this section, including establishing the |
|
|
types of financial assurance to be deposited under Subsection (b), |
|
|
including: |
|
|
(1) payment bonds; and |
|
|
(2) letters of credit. |
|
|
(e) The duration of the financial assurance under |
|
|
Subsection (d) must extend at least for the duration of the term of |
|
|
the discharge permit held by the permit holder, including any |
|
|
amendment. |
|
|
(f) If the permit holder does not comply with the terms of |
|
|
the agreement, money may be withdrawn from the financial assurance |
|
|
according to commission rule. The money shall be deposited to the |
|
|
credit of the Texas water resources fund for use in the green |
|
|
project reserve program administered by the board. |
|
|
(g) A party to an agreement under this section that is not a |
|
|
permit holder is an affected person for the purpose of Section |
|
|
26.028. Notwithstanding any other law, and in accordance with |
|
|
NPDES program requirements, the renewal of an NPDES permit that is |
|
|
the subject of an agreement under this section may be the subject of |
|
|
a contested case hearing, including an agreement under which a |
|
|
complete drawdown of the financial assurance has occurred. |
|
|
SECTION 2. This Act takes effect September 1, 2019. |