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.