By: Fraser S.B. No. 957 (In the Senate - Filed February 28, 2013; March 12, 2013, read first time and referred to Committee on Natural Resources; April 22, 2013, reported adversely, with favorable Committee Substitute by the following vote: Yeas 6, Nays 3; April 22, 2013, sent to printer.) COMMITTEE SUBSTITUTE FOR S.B. No. 957 By: Fraser A BILL TO BE ENTITLED AN ACT relating to the procedure for action by the Texas Commission on Environmental Quality on applications for certain environmental permits. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Chapter 2001, Government Code, is amended by adding Subchapter J to read as follows: SUBCHAPTER J. CONTESTED CASES: CERTAIN ENVIRONMENTAL PERMITS Sec. 2001.301. PURPOSE. It is the public policy of this state and the purpose of this subchapter to continue leading the country in maintaining protection of public health and the environment while providing stability and certainty for the state's economy. Sec. 2001.302. DEFINITIONS. In this subchapter: (1) "Commission" means the Texas Commission on Environmental Quality. (2) "Office" means the State Office of Administrative Hearings. (3) "Permit" includes a permit, license, certificate, registration, approval, or other form of authorization issued by the commission, including the amendment or renewal of an authorization. Sec. 2001.303. APPLICABILITY. This subchapter applies to a permit issued by the commission for: (1) a national pollutant discharge elimination system permit under Chapter 26, Water Code; (2) a Class I or Class III injection well permit under Chapter 27, Water Code; (3) an in situ uranium mining production area authorization under Chapter 27, Water Code; (4) a permit under Chapter 28, Water Code; (5) a solid waste facility permit under Chapter 361, Health and Safety Code; (6) a hazardous waste management facility permit under Chapter 361, Health and Safety Code; (7) a preconstruction permit under Chapter 382, Health and Safety Code; (8) a standard permit for a concrete batch plant under Chapter 382, Health and Safety Code; and (9) a license under Chapter 401, Health and Safety Code. Sec. 2001.304. BURDEN OF PROOF. A person who requests a contested case hearing to which this subchapter applies has the burden of proof to demonstrate that: (1) the person has a right to a contested case hearing as an affected person as described by Section 5.115, Water Code; and (2) the commission erred in its decision on a permit application based on the issues and arguments raised by the person requesting the hearing during the public comment period. Sec. 2001.305. SCOPE OF REVIEW. (a) The scope of review of a contested case hearing under this subchapter is limited to the administrative record provided to the office by the chief clerk of the commission. (b) The office may not consider any issue outside of those described by Section 5.556, Water Code, unless the matter was directly referred to the office for a contested case hearing under Section 5.557, Water Code. Sec. 2001.306. PARTIES. A person may join as a party to a contested case hearing only if the person requested a contested case hearing in compliance with any applicable deadlines established by commission rule. Sec. 2001.307. HEARINGS. (a) In the event of a conflict between the provisions of this section and another provision of this chapter, this section prevails. (b) Not later than the 120th day after the date the office conducts a preliminary hearing on the matter, the office shall conclude the hearing and submit a proposal for decision to the commission that includes findings of fact and conclusions of law. The deadline prescribed by this subsection may not be extended unless all parties agree to an extension of time. An extension of time granted under this subsection may not exceed 60 days. SECTION 2. Subsection (d), Section 2003.024, Government Code, is amended to read as follows: (d) This section does not apply to hearings conducted: (1) by the environmental quality [natural resource conservation] division or the utility division; or (2) under the administrative license revocation program. SECTION 3. The heading to Section 2003.047, Government Code, is amended to read as follows: Sec. 2003.047. ENVIRONMENTAL QUALITY [NATURAL RESOURCE CONSERVATION] DIVISION. SECTION 4. Subsection (a), Section 2003.047, Government Code, is amended to read as follows: (a) The office shall establish an environmental quality [a natural resource conservation] division to perform the contested case hearings of certain permit decisions for the Texas Commission on Environmental Quality [Natural Resource Conservation Commission]. SECTION 5. Section 2003.048, Government Code, is amended to read as follows: Sec. 2003.048. TEXAS [NATURAL RESOURCE CONSERVATION] COMMISSION ON ENVIRONMENTAL QUALITY HEARINGS FEE. The office shall charge the Texas [Natural Resource Conservation] Commission on Environmental Quality a fixed annual fee rather than an hourly rate for services rendered by the office to the commission. The amount of the fee may not be less than the amount appropriated to the Texas [Natural Resource Conservation] Commission on Environmental Quality in the General Appropriations Act for payment to the environmental quality [natural resource conservation] division to conduct commission hearings. The amount of the fee shall be based on the costs of conducting the hearings, the costs of travel expenses and telephone charges directly related to the hearings, docketing costs, and other applicable administrative costs of the office including the administrative costs of the environmental quality [natural resource conservation] division. The office and the Texas [Natural Resource Conservation] Commission on Environmental Quality shall negotiate the amount of the fixed fee biennially, subject to the approval of the governor, to coincide with the commission's legislative appropriations request. SECTION 6. Section 5.115, Water Code, is amended by adding Subsections (a-1) and (a-2) to read as follows: (a-1) An association is not entitled to standing in a contested case hearing unless the association: (1) expressly identifies each member of the association who would otherwise have standing to request a hearing in the member's own right; and (2) submits with the hearing request documentation demonstrating that: (A) the interests of the association are germane to the matter that is the subject of the contested case; and (B) at least part of the association's purpose is to contest permit applications. (a-2) The commission shall deny a hearing request submitted by an association that does not satisfy the requirements of Subsection (a-1). The information required by Subsection (a-1) may not be submitted after the hearing request. SECTION 7. Subsection (a), Section 5.551, Water Code, is amended to read as follows: (a) This subchapter establishes procedures for providing public notice, an opportunity for public comment, and an opportunity for public hearing under Subchapters C-H and J, Chapter 2001, Government Code, regarding commission actions relating to a permit issued under Chapter 26 or 27 of this code or Chapter 361, Health and Safety Code. This subchapter is procedural and does not expand or restrict the types of commission actions for which public notice, an opportunity for public comment, and an opportunity for public hearing are provided under Chapter 26 or 27 of this code or Chapter 361, Health and Safety Code. SECTION 8. Subchapter M, Chapter 5, Water Code, is amended by adding Sections 5.5541 and 5.5551 to read as follows: Sec. 5.5541. OBLIGATION TO RAISE ISSUES AND PROVIDE INFORMATION DURING PUBLIC COMMENT PERIOD. (a) A person must raise all reasonably ascertainable issues and submit all reasonably available arguments supporting the person's position on the executive director's preliminary decision before the close of the public comment period. (b) Supporting materials submitted during the public comment period must be included in full in the administrative record for the application and may not be incorporated by reference unless the materials: (1) are already part of the administrative record in the same proceeding; or (2) consist of: (A) state or federal statutes or rules; or (B) generally available reference materials. (c) The commission by rule shall establish procedures to make supporting materials not already included in the administrative record available to the executive director. Sec. 5.5551. UNCONTESTED APPLICATIONS. (a) If a contested case hearing has not been requested in the time and manner required by applicable law, that application is considered uncontested and the executive director may issue a final decision on the permit application. (b) A person may file with the commission a motion to overturn as described by commission rule to challenge an executive director's final decision under this section. (c) A final permit decision issued under this section is not subject to a contested case hearing. SECTION 9. Section 5.556, Water Code, is amended by adding Subsection (g) to read as follows: (g) Granting a request for a contested case hearing on a draft permit issued by the executive director creates a rebuttable presumption that the draft permit: (1) meets all state and federal legal and technical requirements; and (2) is protective of human health and safety. SECTION 10. Subchapter M, Chapter 5, Water Code, is amended by adding Section 5.5571 to read as follows: Sec. 5.5571. FINAL COMMISSION DECISION. (a) Not later than the 45th day after the date the commission receives a proposal for decision from the State Office of Administrative Hearings, the commission shall consider the proposal. (b) In considering the proposal for decision, the commission shall limit each of the parties in the proceeding to: (1) one exceptions brief; and (2) one reply brief that may only include arguments in reply to another party's exceptions. (c) An exceptions brief must be submitted not later than the 20th day after the date the commission receives the proposal for decision. A reply brief must be submitted not later than the 30th day after the date the commission receives the proposal for decision. SECTION 11. The changes in law made by this Act apply only to an application for a permit that is filed with the Texas Commission on Environmental Quality on or after the effective date of this Act. An application for a permit filed before the effective date of this Act is governed by the law in effect on the date of filing, and that law is continued in effect for that purpose. SECTION 12. This Act takes effect September 1, 2013. * * * * *