Relating to the relationship between the amount of an administrative penalty imposed by the Texas Commission on Environmental Quality and the economic benefit of the violation to the alleged violator.
The bill amends Section 7.053 of the Water Code, which outlines factors to be considered in determining the amount of penalties. Specifically, it emphasizes that the economic benefit gained from the violation must be factored into the penalty amount. The intention is to align punitive measures with the level of financial gain from their wrongful conduct, thereby promoting a stronger incentive for compliance with environmental standards.
House Bill 826 addresses the relationship between the amount of administrative penalties imposed by the Texas Commission on Environmental Quality (TCEQ) and the economic benefits derived by violators from their actions. The bill aims to ensure that penalties are reflective of the financial gain that a violator may have obtained from noncompliance with environmental regulations. This change intends to deter future violations by making it financially disadvantageous for entities to violate environmental laws.
While supporters of HB 826 argue that it will hold violators accountable and reduce incidents of environmental degradation, critics contend that the changes might lead to excessive penalties that could burden small businesses and governmental entities. They raise concerns that penalties equal to the economic benefits could adversely affect operations, especially for those struggling to comply with stringent regulatory frameworks. Additionally, the bill includes provisions for the TCEQ to defer penalties for governmental entities or non-profit organizations if they meet specific compliance conditions, which could be seen as preferential treatment.