BILL ANALYSIS

C.S.H.B. 4413

By: Paul

Environmental Regulation

Committee Report (Substituted)

BACKGROUND AND PURPOSE

The bill author has informed the committee that many chemical manufacturers incorporate biobased waste materials, which would otherwise be discarded or landfilled, as alternatives to fossil-based feedstocks to meet customer demands, but manufacturers currently do not receive credit for doing so. C.S.H.B. 4413 seeks to provide for mass balance accounting for biobased feedstocks to track biobased raw materials through production processes and accurately attribute biobased content to end products for the purpose of enabling Texas manufacturers to use existing infrastructure efficiently and scale up production to meet customer demands.

CRIMINAL JUSTICE IMPACT

It is the committee's opinion that this bill does not expressly create a criminal offense, increase the punishment for an existing criminal offense or category of offenses, or change the eligibility of a person for community supervision, parole, or mandatory supervision.

RULEMAKING AUTHORITY

It is the committee's opinion that rulemaking authority is expressly granted to the Texas Commission on Environmental Quality in SECTION 2 of this bill.

ANALYSIS

C.S.H.B. 4413 amends the Health and Safety Code to expand the requirement for the Texas Commission on Environmental Quality (TCEQ) by rule to identify third-party certification systems for mass balance attribution that may be used for purposes of renewable chemicals in provisions relating to waste reduction programs and disposal fees under the Solid Waste Disposal Act. The bill defines "renewable chemical" to mean a monomer, polymer, plastic, formulated product, or chemical substance produced from renewable biomass feedstocks or certified under a third-party certification system for mass balance attribution identified by the TCEQ. The bill defines "renewable biomass" as the following:

· materials, pre-commercial thinnings, or invasive species from National Forest System land and public lands, as that term is defined by specified federal law, that:

o are byproducts of preventive treatments that are removed:

§ to reduce hazardous fuels;

§ to reduce or contain disease or insect infestation; or

§ to restore ecosystem health;

o would not otherwise be used for higher value products; and

o are harvested in accordance with:

§ applicable law and land management plans; and

§ requirements for old growth stand maintenance, restoration, and management direction and large tree retention under specified provisions of the federal Healthy Forests Restoration Act of 2003; or

· any organic matter that is available on a renewable or recurring basis from nonfederal land or land belonging to an Indian or Indian tribe that is held in trust by the United States or subject to a restriction against alienation imposed by the United States, including:

o renewable plant material, including:

§ feed grains and other agricultural commodities;

§ plants and trees;

§ algae; and

§ microorganisms; and

o waste material, including:

§ crop residue;

§ vegetative waste material, including wood waste and wood residue;

§ animal waste and byproducts, including fats, oils, greases, and manure;

§ food waste and yard waste;

§ plant-derived waste oils;

§ municipal solid waste; and

§ waste derived from a wastewater treatment facility.

C.S.H.B. 4413 requires the TCEQ, as soon as practicable after the bill's effective date, to adopt rules necessary to implement the changes in law made by the bill.

EFFECTIVE DATE

September 1, 2025.

COMPARISON OF INTRODUCED AND SUBSTITUTE

While C.S.H.B. 4413 may differ from the introduced in minor or nonsubstantive ways, the following summarizes the substantial differences between the introduced and committee substitute versions of the bill.

With respect to the definition of renewable biomass as, in part, any organic matter that is available on a renewable or recurring basis from nonfederal land or land belonging to an Indian or Indian tribe that is held in trust by the United States or subject to a restriction against alienation imposed by the United States, including renewable plant material and waste material, the substitute includes the following which were not included in the introduced:

· as such renewable plant material, microorganisms; and

· as such waste material, plant-derived waste oils, municipal solid waste, and waste derived from a wastewater treatment facility.