HBA-JLV C.S.S.B. 324 77(R)BILL ANALYSIS Office of House Bill AnalysisC.S.S.B. 324 By: Brown, J. E. "Buster" Environmental Regulation 5/4/2001 Committee Report (Substituted) BACKGROUND AND PURPOSE Currently, the Texas Natural Resource Conservation Commission (TNRCC) is limited in the amount it may charge to process an application for an underground injection well permit. C.S.S.B. 324 increases the amount of an underground injection well application fee from $25 to $100 per application and requires TNRCC to consider the compliance history of an applicant of a disposal or injection well permit. RULEMAKING AUTHORITY It is the opinion of the Office of House Bill Analysis that this bill does not expressly delegate any additional rulemaking authority to a state officer, department, agency, or institution. ANALYSIS C.S.S.B. 324 amends the Water Code to increase, from $25 to $100, the fee the Texas Natural Resource Conservation Commission (TNRCC) is required to collect with each application for a disposal well permit. The bill provides that applications for hazardous or nonhazardous disposal well permits shall be processed in accordance with applicable provisions for the benefit of the state and the preservation of its natural resources. The bill requires TNRCC, in determining if the use or installation of an injection well is in the public interest, to consider the compliance history of the applicant and related entities and to consider if the injection well will be used for the disposal of hazardous waste. The bill requires TNRCC to establish a procedure for the preparation of comprehensive summaries of the applicant's compliance history, including the compliance history of any corporation or business entity managed, owned, or otherwise closely related to the applicant. The bill deletes the requirement that TNRCC establish such procedures by rule for its preparation of compliance summaries for any injection well for which a permit has been issued. The bill provides that evidence of the compliance history of an applicant for an injection well permit may be offered by the executive director at a hearing on the application and admitted into evidence subject to the rules of evidence. The bill requires TNRCC to deny the permit for a disposal or injection well if TNRCC concludes that the applicant's compliance history is unacceptable. 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. 324 modifies the original to add additional considerations the Texas Natural Resource Conservation Commission (TNRCC) is required to evaluate when determining if the use or installation of an injection well is in the public interest. The substitute requires TNRCC to establish a procedure for the preparation of comprehensive summaries of the applicant's compliance history. The substitute deletes the requirement that TNRCC establish such procedures by rule for its preparation of compliance summaries for any injection well for which a permit has been issued. The substitute provides that evidence of the compliance history of an applicant for an injection well permit may be offered and admitted into evidence.