Texas 2011 - 82nd Regular

Texas Senate Bill SB657 Latest Draft

Bill / Introduced Version

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                            82R6406 SLB-D
 By: Huffman, Hegar S.B. No. 657


 A BILL TO BE ENTITLED
 AN ACT
 relating to the continuation and functions of the Texas Commission
 on Environmental Quality and abolishing the On-site Wastewater
 Treatment Research Council.
 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 ARTICLE 1.  GENERAL PROVISIONS
 SECTION 1.01.  The heading to Chapter 5, Water Code, is
 amended to read as follows:
 CHAPTER 5.  TEXAS [NATURAL RESOURCE CONSERVATION] COMMISSION ON
 ENVIRONMENTAL QUALITY
 SECTION 1.02.  Section 5.014, Water Code, is amended to read
 as follows:
 Sec. 5.014.  SUNSET PROVISION. The Texas [Natural Resource
 Conservation] Commission on Environmental Quality is subject to
 Chapter 325, Government Code (Texas Sunset Act).  Unless continued
 in existence as provided by that chapter, the commission is
 abolished and this chapter expires September 1, 2023 [2011].
 SECTION 1.03.  Subchapter C, Chapter 5, Water Code, is
 amended by adding Section 5.061 to read as follows:
 Sec. 5.061.  PROHIBITION ON ACCEPTING CAMPAIGN
 CONTRIBUTIONS. A member of the commission may not accept a
 contribution to a campaign for election to an elected office.  If a
 member of the commission accepts a campaign contribution, the
 person is considered to have resigned from the office and the office
 immediately becomes vacant.  The vacancy shall be filled in the
 manner provided by law.
 SECTION 1.04.  Subchapter D, Chapter 5, Water Code, is
 amended by adding Section 5.1031 to read as follows:
 Sec. 5.1031.  NEGOTIATED RULEMAKING AND ALTERNATIVE DISPUTE
 RESOLUTION. (a)  The commission shall develop and implement a
 policy to encourage the use of:
 (1)  negotiated rulemaking procedures under Chapter
 2008, Government Code, for the adoption of commission rules; and
 (2)  appropriate alternative dispute resolution
 procedures under Chapter 2009, Government Code, to assist in the
 resolution of internal and external disputes under the commission's
 jurisdiction.
 (b)  The commission's procedures relating to alternative
 dispute resolution must conform, to the extent possible, to any
 model guidelines issued by the State Office of Administrative
 Hearings for the use of alternative dispute resolution by state
 agencies.
 (c)  The commission shall:
 (1)  coordinate the implementation of the policy
 adopted under Subsection (a);
 (2)  provide training as needed to implement the
 procedures for negotiated rulemaking or alternative dispute
 resolution; and
 (3)  collect data concerning the effectiveness of those
 procedures.
 SECTION 1.05.  Section 12.052(a), Water Code, is amended to
 read as follows:
 (a)  The commission shall make and enforce rules and orders
 and shall perform all other acts necessary to provide for the safe
 construction, maintenance, repair, and removal of dams located in
 this state. In performing the commission's duties under this
 subsection, the commission shall identify and focus on the most
 hazardous dams in the state.
 ARTICLE 2. TRANSFER OF CERTAIN DUTIES TO THE RAILROAD COMMISSION
 SECTION 2.01.  Section 91.011, Natural Resources Code, is
 amended to read as follows:
 Sec. 91.011.  CASING.  (a) Before drilling into the oil or
 gas bearing rock, the owner or operator of a well being drilled for
 oil or gas shall encase the well with good and sufficient wrought
 iron or steel casing or with any other material that meets standards
 adopted by the commission, particularly where wells could be
 subjected to corrosive elements or high pressures and temperatures,
 in a manner and to a depth that will exclude surface or fresh water
 from the lower part of the well from penetrating the oil or gas
 bearing rock, and if the well is drilled through the first into the
 lower oil or gas bearing rock, the well shall be cased in a manner
 and to a depth that will exclude fresh water above the last oil or
 gas bearing rock penetrated.
 (b)  The commission shall adopt rules regarding the depth of
 well casings necessary to meet the requirements of this section.
 SECTION 2.02.  Subchapter B, Chapter 91, Natural Resources
 Code, is amended by adding Section 91.0115 to read as follows:
 Sec. 91.0115.  CASING; LETTER OF DETERMINATION. (a)  The
 commission shall issue, on request from an applicant for a permit
 for a well to be drilled into oil or gas bearing rock, a letter of
 determination stating the total depth of surface casing required
 for the well by Section 91.011.
 (b)  The commission may charge a fee in an amount to be
 determined by the commission for a letter of determination.
 (c)  The commission shall charge a fee not to exceed $75, in
 addition to the fee required by Subsection (b), for processing a
 request to expedite a letter of determination.  Money collected
 under this subsection may be used only to study and evaluate
 electronic access to geologic data and surface casing depths under
 Section 91.020.
 SECTION 2.03.  Subchapter B, Chapter 91, Natural Resources
 Code, is amended by adding Section 91.020 to read as follows:
 Sec. 91.020.  ELECTRONIC GEOLOGIC DATA. The commission
 shall work cooperatively with other appropriate state agencies to
 study and evaluate electronic access to geologic data and surface
 casing depths necessary to protect usable groundwater in this
 state.
 SECTION 2.04.  Section 27.033, Water Code, is amended to
 read as follows:
 Sec. 27.033.  LETTER OF DETERMINATION [FROM EXECUTIVE
 DIRECTOR]. A person making application to the railroad commission
 for a permit under this chapter shall submit with the application a
 letter of determination from the railroad commission [from the
 executive director] stating that drilling and using the disposal
 well and injecting oil and gas waste into the subsurface stratum
 will not endanger the freshwater strata in that area and that the
 formation or stratum to be used for the disposal is not freshwater
 sand.
 SECTION 2.05.  Section 27.046, Water Code, is amended to
 read as follows:
 Sec. 27.046.  LETTER OF DETERMINATION [FROM EXECUTIVE
 DIRECTOR]. (a) The railroad commission may not issue a permit
 under rules adopted under this subchapter until the commission
 issues to the applicant for the permit [provides to the railroad
 commission] a letter of determination [from the executive director]
 stating that drilling and operating the anthropogenic carbon
 dioxide injection well for geologic storage or operating the
 geologic storage facility will not injure any freshwater strata in
 that area and that the formation or stratum to be used for the
 geologic storage facility is not freshwater sand.
 (b)  To make the determination required by Subsection (a),
 the railroad commission [executive director] shall review:
 (1)  the area of review and corrective action plans;
 (2)  any subsurface monitoring plans required during
 injection or post injection;
 (3)  any postinjection site care plans; and
 (4)  any other elements of the application reasonably
 required in order for the railroad commission [executive director]
 to make the determination required by Subsection (a).
 (c)  The railroad commission shall adopt rules to implement
 and administer this section.
 SECTION 2.06.  Section 5.701(r), Water Code, is repealed.
 SECTION 2.07.  (a)  The Railroad Commission of Texas shall
 adopt rules to implement the changes in law made by this article not
 later than March 1, 2012.
 (b)  A rule, form, policy, or procedure of the Texas
 Commission on Environmental Quality related to the changes in law
 made by this article continues in effect as a rule, form, policy, or
 procedure of the Railroad Commission of Texas and remains in effect
 until amended or replaced by that agency.
 ARTICLE 3. PUBLIC INTEREST
 SECTION 3.01.  Subchapter F, Chapter 5, Water Code, is
 amended by adding Section 5.239 to read as follows:
 Sec. 5.239.  PUBLIC EDUCATION AND ASSISTANCE. (a)  The
 executive director shall ensure that the agency is responsive to
 environmental and citizens' concerns, including environmental
 quality and consumer protection.
 (b)  The executive director shall develop and implement a
 program to:
 (1)  provide a centralized point for the public to
 access information about the commission and to learn about matters
 regulated by the commission;
 (2)  identify and assess the concerns of the public in
 regard to matters regulated by the commission; and
 (3)  respond to the concerns identified by the program.
 SECTION 3.02.  Section 5.271, Water Code, is amended to read
 as follows:
 Sec. 5.271.  CREATION AND GENERAL RESPONSIBILITY OF THE
 OFFICE OF PUBLIC INTEREST COUNSEL. The office of public interest
 counsel is created to ensure that the commission promotes the
 public's interest [and is responsive to environmental and citizens'
 concerns including environmental quality and consumer protection].
 The primary duty of the office is to represent the public interest
 as a party to matters before the commission.
 SECTION 3.03.  Subchapter G, Chapter 5, Water Code, is
 amended by adding Section 5.2725 to read as follows:
 Sec. 5.2725.  ANNUAL REPORT; PERFORMANCE MEASURES. (a)  The
 office of public interest counsel shall report to the commission
 each year in a public meeting held on a date determined by the
 commission to be timely for the commission to include the reported
 information in the commission's reports under Sections 5.178(a) and
 (b) and in the commission's biennial legislative appropriations
 requests as appropriate:
 (1)  an evaluation of the office's performance in
 representing the public interest in the preceding year;
 (2)  an assessment of the budget needs of the office,
 including the need to contract for outside expertise; and
 (3)  any legislative or regulatory changes recommended
 under Section 5.273.
 (b)  The commission and the office of public interest counsel
 shall work cooperatively to identify performance measures for the
 office.
 SECTION 3.04.  Subchapter G, Chapter 5, Water Code, is
 amended by adding Section 5.276 to read as follows:
 Sec. 5.276.  FACTORS FOR PUBLIC INTEREST REPRESENTATION.
 (a)  The commission by rule, after consideration of recommendations
 from the office of public interest counsel, shall establish factors
 the public interest counsel must consider before the public
 interest counsel decides to represent the public interest as a
 party to a commission proceeding.
 (b)  Rules adopted under this section must include:
 (1)  factors to determine the nature and extent of the
 public interest; and
 (2)  factors to consider in prioritizing the workload
 of the office of public interest counsel.
 ARTICLE 4. COMPLIANCE AND ENFORCEMENT
 SECTION 4.01.  Section 5.753, Water Code, is amended by
 amending Subsections (a) and (b) and adding Subsection (d-1) to
 read as follows:
 (a)  Consistent with other law and the requirements
 necessary to maintain federal program authorization, the
 commission by rule shall develop a method [uniform standard] for
 evaluating compliance history that ensures consistency in the
 evaluation.  In developing the method, the commission may account
 for differences among regulated entities.
 (b)  The components of compliance history must include:
 (1)  except for orders described by Subsection
 (d-1)(2), enforcement orders, court judgments, consent decrees,
 and criminal convictions of this state and the federal government
 relating to compliance with applicable legal requirements under the
 jurisdiction of the commission or the United States Environmental
 Protection Agency;
 (2)  notwithstanding any other provision of this code,
 orders issued under Section 7.070;
 (3)  to the extent readily available to the commission,
 enforcement orders, court judgments, and criminal convictions
 relating to violations of environmental laws of other states; and
 (4)  changes in ownership.
 (d-1)  The components of compliance history may include:
 (1)  information related to the complexity of the
 regulated entity, including:
 (A)  the complexity of the regulatory
 requirements applicable to the entity; and
 (B)  the severity of the consequences of
 noncompliance by the entity;
 (2)  enforcement orders issued without penalties,
 shutdown orders, or other punitive sanctions; and
 (3)  any other positive compliance factors related to
 the regulated entity.
 SECTION 4.02.  Section 5.754(d), Water Code, is amended to
 read as follows:
 (d)  The commission by rule may require [shall establish
 methods of assessing the compliance history of regulated entities
 for which it does not have adequate compliance information. The
 methods may include requiring] a compliance inspection to determine
 an entity's eligibility for participation in a program that
 requires a high level of compliance.
 SECTION 4.03.  Subchapter A, Chapter 7, Water Code, is
 amended by adding Section 7.006 to read as follows:
 Sec. 7.006.  ENFORCEMENT POLICIES. (a)  The commission by
 rule shall adopt a general enforcement policy that describes the
 commission's approach to enforcement.
 (b)  The commission shall assess, update, and publicly adopt
 specific enforcement policies regularly, including policies
 regarding the calculation of penalties.
 (c)  The commission shall make the policies available to the
 public, including by posting the policies on the commission's
 Internet website.
 SECTION 4.04.  Sections 7.052(a) and (c), Water Code, are
 amended to read as follows:
 (a)  The amount of the penalty for a violation of Chapter 37
 of this code, Chapter 366, 371, or 372, Health and Safety Code, or
 Chapter 1903, Occupations Code, may not be less than $50 or greater
 than $5,000 [exceed $2,500] a day for each violation.
 (c)  The amount of the penalty for all other violations
 within the jurisdiction of the commission to enforce may not be less
 than $50 or greater than $25,000 [exceed $10,000] a day for each
 violation.
 SECTION 4.05.  Section 7.067, Water Code, is amended to read
 as follows:
 Sec. 7.067.  SUPPLEMENTAL ENVIRONMENTAL PROJECTS. (a) The
 commission may compromise, modify, or remit, with or without
 conditions, an administrative penalty imposed under this
 subchapter. In determining the appropriate amount of a penalty for
 settlement of an administrative enforcement matter, the commission
 may consider a respondent's willingness to contribute to
 supplemental environmental projects that are approved by the
 commission, giving preference to projects that benefit the
 community in which the alleged violation occurred. The commission
 may encourage the cleanup of contaminated property through the use
 of supplemental environmental projects. The commission may approve
 a supplemental environmental project with activities in territory
 of the United Mexican States if the project substantially benefits
 territory in this state in a manner described by Subsection (b).
 Except as provided by Subsection (a-1), the [The] commission may
 not approve a project that is necessary to bring a respondent into
 compliance with environmental laws, that is necessary to remediate
 environmental harm caused by the respondent's alleged violation, or
 that the respondent has already agreed to perform under a
 preexisting agreement with a governmental agency.
 (a-1)  The commission may approve a supplemental
 environmental project that is necessary to bring a respondent into
 compliance with environmental laws or that is necessary to
 remediate environmental harm caused by the respondent's alleged
 violation if the respondent is a local government.
 (a-2)  The commission shall develop a policy to prevent
 regulated entities from systematically avoiding compliance through
 the use of supplemental environmental projects under Subsection
 (a-1), including rules requiring an assessment of:
 (1)  the entity's financial ability to pay
 administrative penalties;
 (2)  the ability of the entity to remediate the harm or
 come into compliance; and
 (3)  the need for corrective action.
 (b)  In this section:
 (1)  "Local government" means a school district,
 county, municipality, junior college district, river authority,
 water district or other special district, or other political
 subdivision created under the constitution or a statute of this
 state.
 (2)  "Supplemental [, "supplemental] environmental
 project" means a project that prevents pollution, reduces the
 amount of pollutants reaching the environment, enhances the quality
 of the environment, or contributes to public awareness of
 environmental matters.
 SECTION 4.06.  Section 13.4151(a), Water Code, is amended to
 read as follows:
 (a)  If a person, affiliated interest, or entity subject to
 the jurisdiction of the commission violates this chapter or a rule
 or order adopted under this chapter, the commission may assess a
 penalty against that person, affiliated interest, or entity as
 provided by this section. The penalty may be in an amount not less
 than $100 or greater than $5,000 [to exceed $500] a day. Each day a
 violation continues may be considered a separate violation.
 SECTION 4.07.  Section 26.3467, Water Code, is amended by
 adding Subsection (d) to read as follows:
 (d)  A person may not deliver any regulated substance into an
 underground storage tank regulated under this chapter unless the
 underground storage tank has been issued a valid, current
 underground storage tank registration and certificate of
 compliance under Section 26.346.  The commission may impose an
 administrative penalty against a person who violates this
 subsection.  The commission shall adopt rules as necessary to
 enforce this subsection.
 SECTION 4.08.  Section 26.351, Water Code, is amended by
 adding Subsections (c-1) and (c-2) to read as follows:
 (c-1)  The commission may undertake corrective action to
 remove an underground or aboveground storage tank that:
 (1)  is not in compliance with the requirements of this
 chapter;
 (2)  is out of service;
 (3)  presents a  contamination risk; and
 (4)  is owned or operated by a person who is financially
 unable to remediate the tank.
 (c-2)  The commission shall adopt rules to implement
 Subsection (c-1), including rules regarding:
 (1)  the determination of the financial ability of the
 tank owner or operator to remediate the tank; and
 (2)  the assessment of the potential risk of
 contamination from the site.
 SECTION 4.09.  Section 26.3573(d), Water Code, is amended to
 read as follows:
 (d)  The commission may use the money in the petroleum
 storage tank remediation account to pay:
 (1)  necessary expenses associated with the
 administration of the petroleum storage tank remediation account
 and the groundwater protection cleanup program;
 (2)  expenses associated with investigation, cleanup,
 or corrective action measures performed in response to a release or
 threatened release from a petroleum storage tank, whether those
 expenses are incurred by the commission or pursuant to a contract
 between a contractor and an eligible owner or operator as
 authorized by this subchapter;
 (3)  subject to the conditions of Subsection (f),
 expenses associated with investigation, cleanup, or corrective
 action measures performed in response to a release or threatened
 release of hydraulic fluid or spent oil from hydraulic lift systems
 or tanks located at a vehicle service and fueling facility and used
 as part of the operations of that facility; [and]
 (4)  expenses associated with assuring compliance with
 the commission's applicable underground or aboveground storage
 tank administrative and technical requirements, including
 technical assistance and support, inspections, enforcement, and
 the provision of matching funds for grants; and
 (5)  expenses associated with investigation, cleanup,
 or corrective action measures performed under Section 26.351(c-1).
 SECTION 4.10.  Section 26.3574, Water Code, is amended by
 amending Subsection (b) and adding Subsection (b-1) to read as
 follows:
 (b)  A fee is imposed on the delivery of a petroleum product
 on withdrawal from bulk of that product as provided by this
 subsection.  Each operator of a bulk facility on withdrawal from
 bulk of a petroleum product shall collect from the person who orders
 the withdrawal a fee in an amount determined as follows:
 (1)  not more than $3.75 for each delivery into a cargo
 tank having a capacity of less than 2,500 gallons [for the state
 fiscal year beginning September 1, 2007, through the state fiscal
 year ending August 31, 2011];
 (2)  not more than $7.50 for each delivery into a cargo
 tank having a capacity of 2,500 gallons or more but less than 5,000
 gallons [for the state fiscal year beginning September 1, 2007,
 through the state fiscal year ending August 31, 2011];
 (3)  not more than $11.75 for each delivery into a cargo
 tank having a capacity of 5,000 gallons or more but less than 8,000
 gallons [for the state fiscal year beginning September 1, 2007,
 through the state fiscal year ending August 31, 2011];
 (4)  not more than $15.00 for each delivery into a cargo
 tank having a capacity of 8,000 gallons or more but less than 10,000
 gallons [for the state fiscal year beginning September 1, 2007,
 through the state fiscal year ending August 31, 2011]; and
 (5)  not more than $7.50 for each increment of 5,000
 gallons or any part thereof delivered into a cargo tank having a
 capacity of 10,000 gallons or more [for the state fiscal year
 beginning September 1, 2007, through the state fiscal year ending
 August 31, 2011].
 (b-1)  The commission by rule shall set the amount of the fee
 in Subsection (b) in an amount not to exceed the amount necessary to
 cover the agency's costs of administering this subchapter, as
 indicated by the amount appropriated by the legislature from the
 petroleum storage tank remediation account for that purpose.
 SECTION 4.11.  (a)  Not later than September 1, 2012, the
 Texas Commission on Environmental Quality by rule shall establish
 the method for evaluating compliance history as required by Section
 5.753(a), Water Code, as amended by this article.  Until the
 commission adopts that method, the commission shall continue in
 effect its current standard for evaluating compliance history.
 (b)  The changes in law made by Sections 7.052 and 13.4151,
 Water Code, as amended by this article, apply only to a violation
 that occurs on or after the effective date of this Act. For
 purposes of this section, a violation occurs before the effective
 date of this Act if any element of the violation occurs before that
 date. A violation that occurs before the effective date of this Act
 is covered by the law in effect on the date the violation occurred,
 and the former law is continued in effect for that purpose.
 (c)  The change in law made by Section 26.3467(d), Water
 Code, as added by this article, applies only to a delivery of a
 regulated substance to a petroleum storage tank made on or after the
 effective date of this Act.
 ARTICLE 5. WATER RIGHTS
 SECTION 5.01.  Section 11.031, Water Code, is amended by
 adding Subsections (d), (e), and (f) to read as follows:
 (d)  Each person who has a water right issued by the
 commission or who impounds, diverts, or otherwise uses state water
 shall maintain water use information on a monthly basis during the
 months a water rights holder uses permitted water. The person shall
 make the information available to the commission on the
 commission's request.
 (e)  The commission may request information maintained under
 Subsection (d) only during a drought or other emergency shortage of
 water.
 (f)  A person submitting a report under Subsection (a) is not
 required to include information maintained under Subsection (d).
 SECTION 5.02.  Subchapter B, Chapter 11, Water Code, is
 amended by adding Section 11.053 to read as follows:
 Sec. 11.053.  EMERGENCY ORDER CONCERNING WATER RIGHTS. (a)
 During a period of drought or other emergency shortage of water, the
 executive director by order may:
 (1)  temporarily suspend the right of any person who
 holds a water right to use the water; and
 (2)  adjust the allocation of water between water
 rights holders.
 (b)  The executive director in ordering a suspension or an
 allocation adjustment under this section shall ensure that an
 action taken:
 (1)  maximizes the beneficial use of water;
 (2)  minimizes the impact on water rights holders; and
 (3)  prevents the waste of water.
 (c)  The commission shall adopt rules to implement this
 section, including rules to determine the conditions under which
 the executive director may take action under this section.
 SECTION 5.03.  Section 11.326, Water Code, is amended by
 adding Subsections (g) and (h) to read as follows:
 (g)  For a water basin in which a watermaster is not
 appointed, the executive director shall:
 (1)  evaluate the water basin at least once every five
 years to determine whether a watermaster should be appointed; and
 (2)  report the findings and make recommendations to
 the commission.
 (h)  The commission shall:
 (1)  determine the criteria or risk factors to be
 considered in an evaluation under Subsection (g); and
 (2)  include the findings and recommendations under
 Subsection (g) in the commission's biennial report to the
 legislature.
 ARTICLE 6. FUNDING
 SECTION 6.01.  Section 401.246(a), Health and Safety Code,
 is amended to read as follows:
 (a)  Compact waste disposal fees adopted by the commission
 must be sufficient to:
 (1)  allow the compact waste facility license holder to
 recover costs of operating and maintaining the compact waste
 disposal facility and a reasonable profit on the operation of that
 facility;
 (2)  provide an amount necessary to meet future costs
 of decommissioning, closing, and postclosure maintenance and
 surveillance of the compact waste disposal facility and the compact
 waste disposal facility portion of the disposal facility site;
 (3)  provide an amount to fund local public projects
 under Section 401.244;
 (4)  provide a reasonable rate of return on capital
 investment in the facilities used for management or disposal of
 compact waste at the compact waste disposal facility; [and]
 (5)  provide an amount necessary to pay compact waste
 disposal facility licensing fees, to pay compact waste disposal
 facility fees set by rule or statute, and to provide security for
 the compact waste disposal facility as required by the commission
 under law and commission rules; and
 (6)  provide an amount necessary to support the
 activities of the Texas Low-Level Radioactive Waste Compact
 Commission.
 SECTION 6.02.  Subchapter F, Chapter 401, Health and Safety
 Code, is amended by adding Section 401.251 to read as follows:
 Sec. 401.251.  LOW-LEVEL RADIOACTIVE WASTE DISPOSAL COMPACT
 COMMISSION ACCOUNT. (a)  The low-level radioactive waste disposal
 compact commission account is an account in the general revenue
 fund.
 (b)  The commission shall deposit in the account the portion
 of the fee collected under Section 401.245 that is calculated to
 support the activities of the Texas Low-Level Radioactive Waste
 Disposal Compact Commission as required by Section 4.04(4), Texas
 Low-Level Radioactive Waste Disposal Compact (Section 403.006 of
 this code).
 (c)  Money in the account may be appropriated only to support
 the operations of the Texas Low-Level Radioactive Waste Disposal
 Compact Commission.
 SECTION 6.03.  Sections 5.701(n) and (p), Water Code, are
 amended to read as follows:
 (n)(1)  Each provider of potable water or sewer utility
 service shall collect a regulatory assessment from each retail
 customer as follows:
 (A)  A public utility as defined in Section 13.002
 [of this code] shall collect from each retail customer a regulatory
 assessment equal to one percent of the charge for retail water or
 sewer service.
 (B)  A water supply or sewer service corporation
 as defined in Section 13.002 [of this code] shall collect from each
 retail customer a regulatory assessment equal to [one-half of] one
 percent of the charge for retail water or sewer service.
 (C)  A district as defined in Section 49.001 [of
 this code] that provides potable water or sewer utility service to
 retail customers shall collect from each retail customer a
 regulatory assessment equal to [one-half of] one percent of the
 charge for retail water or sewer service.
 (2)  The regulatory assessment may be listed on the
 customer's bill as a separate item and shall be collected in
 addition to other charges for utility services.
 (3)  The [commission shall use the] assessments
 collected under this subsection may be appropriated only to the
 commission or to the Public Utility Commission of Texas solely to
 pay costs and expenses incurred by the agency [commission] in the
 regulation of districts, water supply or sewer service
 corporations, and public utilities under Chapter 13[, Water Code].
 (4)  The commission shall annually use a portion of the
 assessments to provide on-site technical assistance and training to
 public utilities, water supply or sewer service corporations, and
 districts. The commission shall contract with others to provide
 the services.
 (5)  The commission by rule may establish due dates,
 collection procedures, and penalties for late payment related to
 regulatory assessments under this subsection. The executive
 director shall collect all assessments from the utility service
 providers.
 (6)  The commission shall assess a penalty against a
 municipality with a population of more than 1.5 million that does
 not provide municipal water and sewer services in an annexed area in
 accordance with Section 43.0565, Local Government Code. A penalty
 assessed under this paragraph shall be not more than $1,000 for each
 day the services are not provided after March 1, 1998, for areas
 annexed before January 1, 1993, or not provided within 4-1/2 years
 after the effective date of the annexation for areas annexed on or
 after January 1, 1993. A penalty collected under this paragraph
 shall be deposited to the credit of the water resource management
 account to be used to provide water and sewer service to residents
 of the city.
 (7)  The regulatory assessment does not apply to water
 that has not been treated for the purpose of human consumption.
 (p)  Notwithstanding any other law, fees collected for
 deposit to the water resource management account under the
 following statutes may be appropriated and used to protect water
 resources in this state, including assessment of water quality,
 reasonably related to the activities of any of the persons required
 to pay a fee under:
 (1)  Subsection (b), to the extent those fees are paid
 by water districts, and Subsections (e), (f), and (n);
 (2)  [Sections 13.4521 and 13.4522; or
 [(3)]  Section 54.037(c); or
 (3)  Section 367.010, Health and Safety Code.
 SECTION 6.04.  Subchapter L, Chapter 13, Water Code, is
 repealed.
 ARTICLE 7. WATER AND SEWER UTILITIES
 SECTION 7.01.  Subchapter E, Chapter 13, Water Code, is
 amended by adding Section 13.1325 to read as follows:
 Sec. 13.1325.  ELECTRONIC COPIES OF RATE INFORMATION.  The
 state agency with jurisdiction over rates charged by water and
 sewer utilities shall provide to a ratepayer, at a reasonable cost
 to the ratepayer, electronic copies of information provided to the
 agency under Sections 13.016, 13.043, and 13.187, to the extent
 that the information is available and not confidential.
 ARTICLE 8. ABOLITION OF THE ON-SITE WASTEWATER TREATMENT RESEARCH
 COUNCIL
 SECTION 8.01.  The heading to Chapter 367, Health and Safety
 Code, is amended to read as follows:
 CHAPTER 367.  ON-SITE WASTEWATER TREATMENT RESEARCH [COUNCIL]
 SECTION 8.02.  Section 367.001, Health and Safety Code, is
 amended to read as follows:
 Sec. 367.001.  DEFINITIONS. In this chapter:
 (1)  "Commission" means the Texas Commission on
 Environmental Quality [Natural Resource Conservation Commission].
 (2)  ["Council" means the On-site Wastewater Treatment
 Research Council.
 [(3)]  "On-site wastewater treatment system" means a
 system of treatment devices or disposal facilities that:
 (A)  is used for the disposal of domestic sewage,
 excluding liquid waste resulting from the processes used in
 industrial and commercial establishments;
 (B)  is located on the site where the sewage is
 produced; and
 (C)  produces not more than 5,000 gallons of waste
 a day.
 SECTION 8.03.  Section 367.007, Health and Safety Code, is
 amended to read as follows:
 Sec. 367.007.  ADMINISTRATION. (a) [The council is not an
 advisory body to the commission. The commission, at the direction
 of the council, shall implement council decisions.
 [(b)     The council may enter into an interagency contract with
 the commission to provide staff and other administrative support as
 required to improve the quality of wastewater treatment and reduce
 the cost of providing wastewater treatment to consumers.
 [(c)]  The commission [council] may accept grants and
 donations from other sources to supplement the fees collected under
 Section 367.010. Grants and donations shall be deposited to the
 credit of the water resource management [on-site wastewater
 treatment research] account and may be disbursed as the commission
 [council] directs and in accordance with Section 367.008.
 (b) [(d)]  Administrative and facilities support costs are
 payable from the water resources management [on-site wastewater
 treatment research] account.
 [(e)     The council may award grants and enter into contracts
 in its own name and on its own behalf.]
 SECTION 8.04.  Section 367.008, Health and Safety Code, is
 amended to read as follows:
 Sec. 367.008.  AWARD OF COMPETITIVE GRANTS. (a) The
 commission [council] shall establish procedures for awarding
 competitive grants and disbursing grant money.
 (b)  The commission [council] may award competitive grants
 to:
 (1)  support applied research and demonstration
 projects by accredited colleges and universities in this state, by
 other governmental entities, or by acceptable public or private
 research centers regarding on-site wastewater treatment technology
 and systems applicable to this state that are directed toward
 improving the quality of wastewater treatment and reducing the cost
 of providing wastewater treatment to consumers; and
 (2)  enhance technology transfer regarding on-site
 wastewater treatment by using educational courses, seminars,
 symposia, publications, and other forms of information
 dissemination.
 (c)  The commission shall seek the advice of relevant experts
 when choosing research topics, awarding grants, and holding
 educational conferences associated with activities under this
 chapter. [The council may award grants or make other expenditures
 authorized under this chapter only after the comptroller certifies
 that the on-site wastewater treatment research account contains
 enough money to pay for those expenditures.]
 SECTION 8.05.  Section 367.009, Health and Safety Code, is
 amended to read as follows:
 Sec. 367.009.  APPROPRIATIONS. Money appropriated for the
 purposes of this chapter shall be disbursed as the commission
 [council] directs and in accordance with Section 367.008.
 SECTION 8.06.  Section 367.010(d), Health and Safety Code,
 is amended to read as follows:
 (d)  The fee proceeds shall be deposited to the credit of the
 water resources management [on-site wastewater treatment research]
 account.
 SECTION 8.07.  Sections 367.002, 367.003, 367.004, 367.005,
 367.006, and 367.011, Health and Safety Code, are repealed.
 SECTION 8.08.  (a) On the effective date of this Act, the
 Texas Commission on Environmental Quality shall assume the
 administration of all grants of the On-site Wastewater Treatment
 Research Council in existence on that date.
 (b)  The Texas Commission on Environmental Quality shall
 assume all contracts held by the On-site Wastewater Treatment
 Research Council on the effective date of this Act, including all
 rights and obligations associated with the contracts.
 ARTICLE 9. EFFECTIVE DATE
 SECTION 9.01.  This Act takes effect September 1, 2011.