By: Watson S.B. No. 1323 A BILL TO BE ENTITLED AN ACT relating to the environmental review of certain transportation projects by the Texas Department of Transportation BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Chapter 201, Transportation Code, is amended by adding Subchapter P to read as follows: SUBCHAPTER P. OPTIONAL ENVIRONMENTAL REVIEW PROCESS FOR LOCALLY-SPONSORED PROJECTS Sec. 201.1001 DEFINITIONS. In this Subchapter: (1) "Construction costs" has the same meaning assigned by Section 370.004, Transportation Code. (2) "Environmental decision" means for state review projects, the department's approval of a categorical exclusion, a finding of no significant impact, the findings of a re-evaluation, or the execution of a record of decision. (3) "Project," including within the term "state review project," means a highway or related improvement on the state highway system. For the purposes of this subchapter, "highway," "improvement" and "state highway system" shall have the meanings assigned by Section 221.001. (4) "Sponsor" means a political subdivision of the state that elects to participate in the planning, development or construction of a state review project, including a municipality or a county, a political subdivision of a county, a group of adjoining counties, a district organized or operating under Section 52, Article III, or Section 59, Article XVI, Texas Constitution, a regional tollway authority created under Chapter 366, a regional mobility authority operating under Chapter 370, or a nonprofit corporation, including a transportation corporation created under Chapter 431. (5) "State review project" means a transportation project subject to environmental review by the department, but that does not require, in its entirety, federal review under the National Environmental Policy Act (42 U.S.C. 4321, et seq.) or Section 4(f), Department of Transportation Act of 1966 (23 U.S.C. 138 and 49 U.S.C. 303). Sec. 201.1002. PURPOSES. The purposes of this subchapter are to: (1) increase public safety; (2) ensure timely compliance with environmental review requirements for state review projects; (3) enhance a sponsor's ability to participate in project development; and (4) prevent delays that substantially increase the cost of state review projects. Sec. 201.1003. ELIGIBILITY. (a) A state review project qualifies for review under the procedures provided by this subchapter if the sponsor retains, at its own expense, qualified engineers, consultants and legal counsel to ensure the preparation of draft environmental documents in compliance with applicable law and either: (1) assumes at least 25 percent of project construction costs, either on a permanent or pass-through basis; or (2) pays an application fee equal to one percent of the estimated project construction costs. (b) The eligibility of a project under Subsection (a)(1) of this section shall not be affected by an agreement for reimbursement of some or all project costs between the sponsor and the department, another agency or political subdivision of the state, or any other public or private entity. Sec. 201.1004. INITIATION OF ENVIRONMENTAL REVIEW PROCESS. A sponsor initiates the environmental review process under this subchapter by submitting to the department a declaration of intent to proceed that contains the following: (1) a certification of the project's eligibility under Section 201.1003(a)(1) or payment of the application fee under Section 201.1003(a)(2); (2) a statement of qualifications for the engineers, consultants and legal counsel retained to provide services in connection with the environmental review process; and (3) a proposed memorandum of agreement pursuant that satisfies the requirements of Section 201.1005. Sec. 201.1005. MEMORANDUM OF AGREEMENT. (a) The department shall enter into a memorandum of agreement with a sponsor who elects to proceed under this subchapter not later than 45 days after the date that the sponsor's notice of intent is received by the department. Subject to the requirements of subsections (b) and (c), the agreement must: (1) describe the purpose and need of the project; (2) establish the scope of review; (3) provide plans for public involvement, agency coordination and legal sufficiency review; (4) provide for the coordination of environmental review and permitting procedures; (5) include a schedule and related deadlines for tasks to be performed by the sponsor, which may include delivery of draft environmental documents, development of comment responses and revisions to documents, elements of the public involvement and agency coordination process, and negotiating the issuance of permits and securing related mitigation; and (6) include a schedule and related deadlines for tasks to be performed by the department, including review and provision of comments on documents, elements of the public involvement and agency coordination process, responses to comments, and the issuance of an environmental decision. (b) An agreement under this section: (1) may include other terms relating to the environmental review or permitting process that are mutually acceptable to the sponsor and the department and allowed by applicable law; (2) may be amended only in writing with the consent of the parties; and (3) shall not diminish the rights of the public regarding review and comment on projects. (c) The department may not require the sponsor to consent to extension of any deadline as a condition to any other approval, consent or authorization required for the project. Sec. 201.1006. REVIEW TIMEFRAMES. (a) The department shall render an environmental decision on a state review project reviewed under this subchapter by the date specified in the memorandum of agreement required by Section 201.1005. (b) If the department and the sponsor fail to execute a memorandum of agreement by the date required in Section 201.1005(a), then the following deadlines apply: (1) the department shall issue a classification letter no later than the 45th day after the date the sponsor's request for classification is received by the department; (2) for a project classified as a programmatic categorical exclusion, the environmental decision must be rendered no later than the 60th day after the date the sponsor's supporting documentation is received by the department; (3) for a project classified as a categorical exclusion, the environmental decision must be rendered not later than the 90th day after the date the sponsor's supporting documentation is received by the department; (4) for a project that requires the preparation of an environmental assessment: (A) the department must provide the sponsor with all department comments on a draft environmental assessment not later than the 90th day after the date that the draft is received by the department; and (B) the department must render an environmental decision on the project not later than the 60th day after the date that: (i) the sponsor's revised environmental assessment is submitted to the department, or (ii) the conclusion of the public involvement process, whichever occurs later; (5) the department must render an environmental decision on any re-evaluation requested by the sponsor no later than the 120th day after the date the sponsor's supporting documentation is received by the department; and (6) for any project that requires the preparation of an environmental impact statement, the department shall render an environmental decision not later than two years after the date of the classification letter. Sec. 201.1007. RULES. (a) The department may adopt rules for the implementation of this subchapter. (b) The availability of the process provided by this subchapter shall not be delayed pending the adoption of rules under subsection (a). SECTION 2. TRANSITION. A sponsor may initiate the optional procedures provided under this Act regarding any eligible state review project for which the department has not issued an environmental decision as of the effective date of this Act. SECTION 3. EFFECTIVE DATE. This Act takes effect immediately if it receives a vote of two-thirds of all the members elected to each house, as provided by Section 39, Article III, Texas Constitution. If this Act does not receive the vote necessary for immediate effect, this Act takes effect September 1, 2011.