LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 84TH LEGISLATIVE REGULAR SESSION March 27, 2015 TO: Honorable Geanie Morrison, Chair, House Committee on Environmental Regulation FROM: Ursula Parks, Director, Legislative Budget Board IN RE:HB1247 by Smith (Relating to presumptions in contested case hearings regarding certain environmental permit applications.), As Introduced No significant fiscal implication to the State is anticipated. The bill would provide that in a contested case hearing regarding a permit application, the filing with the State Office of Administrative Hearings (SOAH) of the draft permit and preliminary decision prepared by the Texas Commission on Environmental Quality (TCEQ) executive director, and other supporting documentation in the administrative records, establish a prima facie presumption that: the permit application meets all state and federal legal and technical requirements; and a permit, if issued, that is consistent with the draft permit would protect human health and safety and the environment. The bill would also provide that a party may rebut a presumption under a preponderance of the evidence standard. The bill applies to hearings set by SOAH on or after September 1, 2015. The law in effect before September 1, 2015 would apply to hearings set before that date, including any decisions or appeals from those hearings.Both TCEQ and SOAH report that passage of the bill could result in shorter contested case hearings, which could result in some savings to the TCEQ, which reimburses SOAH for cases. This estimate assumes that any savings would not be significant. Local Government Impact For local and other governmental entities that are permit applicants, the bill could possibly result in shorter hearings, according to the TCEQ. For those entities who are protesting a permit, the prima facie demonstration by the applicant's filing of materials with the administrative law judge will likely require these entities to expend more resources for a hearing. Source Agencies:360 State Office of Administrative Hearings, 582 Commission on Environmental Quality LBB Staff: UP, SZ, TL, ER LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 84TH LEGISLATIVE REGULAR SESSION March 27, 2015 TO: Honorable Geanie Morrison, Chair, House Committee on Environmental Regulation FROM: Ursula Parks, Director, Legislative Budget Board IN RE:HB1247 by Smith (Relating to presumptions in contested case hearings regarding certain environmental permit applications.), As Introduced TO: Honorable Geanie Morrison, Chair, House Committee on Environmental Regulation FROM: Ursula Parks, Director, Legislative Budget Board IN RE: HB1247 by Smith (Relating to presumptions in contested case hearings regarding certain environmental permit applications.), As Introduced Honorable Geanie Morrison, Chair, House Committee on Environmental Regulation Honorable Geanie Morrison, Chair, House Committee on Environmental Regulation Ursula Parks, Director, Legislative Budget Board Ursula Parks, Director, Legislative Budget Board HB1247 by Smith (Relating to presumptions in contested case hearings regarding certain environmental permit applications.), As Introduced HB1247 by Smith (Relating to presumptions in contested case hearings regarding certain environmental permit applications.), As Introduced No significant fiscal implication to the State is anticipated. No significant fiscal implication to the State is anticipated. The bill would provide that in a contested case hearing regarding a permit application, the filing with the State Office of Administrative Hearings (SOAH) of the draft permit and preliminary decision prepared by the Texas Commission on Environmental Quality (TCEQ) executive director, and other supporting documentation in the administrative records, establish a prima facie presumption that: the permit application meets all state and federal legal and technical requirements; and a permit, if issued, that is consistent with the draft permit would protect human health and safety and the environment. The bill would also provide that a party may rebut a presumption under a preponderance of the evidence standard. The bill applies to hearings set by SOAH on or after September 1, 2015. The law in effect before September 1, 2015 would apply to hearings set before that date, including any decisions or appeals from those hearings.Both TCEQ and SOAH report that passage of the bill could result in shorter contested case hearings, which could result in some savings to the TCEQ, which reimburses SOAH for cases. This estimate assumes that any savings would not be significant. Local Government Impact For local and other governmental entities that are permit applicants, the bill could possibly result in shorter hearings, according to the TCEQ. For those entities who are protesting a permit, the prima facie demonstration by the applicant's filing of materials with the administrative law judge will likely require these entities to expend more resources for a hearing. Source Agencies: 360 State Office of Administrative Hearings, 582 Commission on Environmental Quality 360 State Office of Administrative Hearings, 582 Commission on Environmental Quality LBB Staff: UP, SZ, TL, ER UP, SZ, TL, ER