HBA-DMH C.S.S.B. 1071 77(R)    BILL ANALYSIS


Office of House Bill AnalysisC.S.S.B. 1071
By: Armbrister
Environmental Regulation
5/3/2001
Committee Report (Substituted)



BACKGROUND AND PURPOSE 

The 76th Texas Legislature enacted legislation to create a new procedure
for contested case proceedings on certain environmental permitting actions
by the Texas Natural Resource Conservation Commission (TNRCC).  The
legislation required early notice of applications, more detailed public
comments, and a narrowing of contested issues prior to a referral of a
matter to the State Office of Administrative Hearings for a contested case
hearing.  The legislation intended to increase public participation and
streamline contested case matters before TNRCC. Both industry and
environmental groups believed that early review of an application and an
examination of disputed issues would result in more efficient, less costly
permit proceedings.  C.S.S.B. 1071 provides applicants the option of
proceeding directly to a contested case hearing immediately after the
executive director of TNRCC issues a preliminary decision. 

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 5.557, Water Code) and SECTION 3 of this
bill. 

ANALYSIS

C.S.S.B. 1071 amends the Water and Health and Safety codes relating to
contested case hearings regarding applications for certain environmental
permits.  The bill requires the Texas Natural Resource Conservation
Commission (TNRCC), immediately after the executive director of TNRCC
issues a preliminary decision on a permit application and on the request of
the applicant or the executive director, to refer the application directly
to the State Office of Administrative Hearings for a contested case hearing
on whether the application complies with all applicable statutory and
regulatory requirements.  The bill requires TNRCC by rule to provide for
public comment and the executive director's response to public comment to
be entered into the administrative record of decision on an application.
The bill requires TNRCC to adopt rules to implement these provisions as
soon as is necessary for the rules to take effect on or before January 1,
2002.  

EFFECTIVE DATE

On passage, or if the Act does not receive the necessary vote, the Act
takes effect September 1, 2001. 

COMPARISON OF ORIGINAL TO SUBSTITUTE

C.S.S.B. 1071 differs from the original bill to apply the public comment
provisions to all environmental permits under this section, whereas the
original only applied the provisions to a permit under a delegated or
authorized federal program if the comment and response are required for
permit decisions under that program. 

The substitute provides that the executive director, in addition to an
applicant, may request a referral of a permit application.  The substitute
requires the Texas Natural Resource Conservation Commission  (TNRCC),
rather than TNRCC or the general counsel, to refer the application directly
to the State Office of Administrative Hearings for a contested case hearing
on whether the application complies with all applicable statutory and
regulatory requirements.