HBA-JLV C.S.H.B. 2997 77(R)BILL ANALYSIS


Office of House Bill AnalysisC.S.H.B. 2997
By: Callegari
Environmental Regulation
4/8/2001
Committee Report (Substituted)



BACKGROUND AND PURPOSE 

Texas has not developed a comprehensive program for the use of
environmental management systems (system) that assist regulated businesses
in reaching, maintaining, and even exceeding compliance with environmental
regulations.  Many would like to implement these systems to improve
compliance of environmental regulations and reduce pollution.  The Sunset
Advisory Commission has recommended that the Texas Natural Resource
Conservation Commission (TNRCC) encourage regulated entities to develop
these systems as a measure of their commitment to compliance with
environmental regulations and to natural resource conservation.  C.S.H.B.
2997 requires TNRCC to adopt a comprehensive program that provides certain
incentives to encourage the use of environmental management systems by
regulated entities. 

RULEMAKING AUTHORITY

It is the opinion of the Office of House Bill Analysis that rulemaking
authority is expressly delegated to the Texas Natural Resource Conservation
Commission in SECTION 1 (Section 5.127, Water Code) and SECTION 7 of this
bill. 

ANALYSIS

C.S.H.B. 2997 amends the Water Code to require the Texas Natural Resource
Conservation Commission (TNRCC) by rule to adopt a comprehensive program
that provides incentives to encourage the use of environmental management
systems (system) by regulated entities, state agencies, local governments,
and other entities.  The bill provides that the incentives may include: 

 _on-site technical assistance;
 
 _accelerated access to information about programs;
 
 _inclusion of information regarding an entity's use of an environmental
management system in the entity's compliance history and compliance
summaries; and 
 
 _consideration of the entity's implementation of an environmental
management system in scheduling and conducting compliance inspections. 

The bill requires TNRCC to integrate the use of systems into its programs,
develop model systems for small businesses and local governments, and
establish environmental performance indicators to measure the program's
performance (Sec. 5.127). 

The bill requires TNRCC, in considering evidence of an applicant's
compliance history, to consider information regarding the applicant's
implementation of a system at the facility for which the permit, permit
amendment, or permit renewal is sought (Secs. 26.028, 26.0281, 361.084, and
382.0518). 

The bill requires the TNRCC to adopt rules regarding the comprehensive
program not later than December  1, 2001 (SECTION 7). 

EFFECTIVE DATE

September 1, 2001.

COMPARISON OF ORIGINAL TO SUBSTITUTE

C.S.H.B. 2997 modifies the original to remove the provision that the
regulatory incentives to encourage the use of the environmental management
systems (system) may include expedited processing of permit renewal,
modification, or amendment.  The substitute also removes provisions
requiring the Texas Natural Resource Conservation Commission (TNRCC) to
establish a mechanism to allow for public participation.  

The substitute removes provisions regarding a public hearing on an
application for the renewal, modification, or amendment of any permit
issued by TNRCC in which the executive director of TNRCC finds that the
applicant has implemented a system for the facility for which the permit
renewal, modification, or amendment is sought, and has no outstanding
significant and unresolved violations related to that facility.