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4 | 6 | | |
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5 | 7 | | A BILL TO BE ENTITLED |
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6 | 8 | | AN ACT |
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7 | 9 | | relating to a voluntary financial assurance program for permit |
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8 | 10 | | holders under the Texas Pollutant Discharge Elimination System. |
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9 | 11 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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10 | 12 | | SECTION 1. Subchapter B, Chapter 26, Water Code, is amended |
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11 | 13 | | by adding Section 26.054 to read as follows: |
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12 | 14 | | Sec. 26.054. VOLUNTARY FINANCIAL ASSURANCE PROGRAM. (a) |
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13 | 15 | | In this section, "permit holder" means the holder of a permit to |
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14 | 16 | | discharge effluent into any body of water under the NPDES. |
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15 | 17 | | (b) The commission shall establish a program to allow a |
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16 | 18 | | permit holder to deposit with the commission an amount of money or |
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17 | 19 | | evidence of equivalent financial assurance to be held by the |
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18 | 20 | | commission to be used in the event the permit holder causes a |
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19 | 21 | | discharge that violates the terms of the agreement described by |
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20 | 22 | | Subsection (c). |
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21 | 23 | | (c) The program established under this section shall |
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22 | 24 | | require an agreement between the permit holder and interested |
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23 | 25 | | parties in the community affected by the facility or proposed |
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24 | 26 | | facility. The agreement may be entered into at any time before the |
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25 | 27 | | issuance of the relevant NPDES permit. An agreement under this |
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26 | 28 | | subsection: |
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27 | 29 | | (1) must include provisions allowing for the |
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28 | 30 | | cancellation of the agreement and return of the financial assurance |
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29 | 31 | | to the permit holder in the event that a party that is not a party to |
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30 | 32 | | the agreement seeks to demand a contested case regarding the NPDES |
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31 | 33 | | permit that is the subject of the agreement; |
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32 | 34 | | (2) may only include provisions that restrict |
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33 | 35 | | discharge that specify: |
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34 | 36 | | (A) the amount of discharge allowed; |
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35 | 37 | | (B) the frequency of discharge allowed; and |
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36 | 38 | | (C) the minimum flow that must be present in |
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37 | 39 | | order for a discharge to be allowed; and |
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38 | 40 | | (3) must include: |
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39 | 41 | | (A) the total amount of financial assurance; and |
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40 | 42 | | (B) specific amounts to be deducted if the permit |
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41 | 43 | | holder violates a provision of the agreement. |
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42 | 44 | | (d) The commission shall adopt rules necessary to implement |
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43 | 45 | | the program created under this section, including establishing the |
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44 | 46 | | types of financial assurance to be deposited under Subsection (b), |
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45 | 47 | | including: |
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46 | 48 | | (1) payment bonds; and |
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47 | 49 | | (2) letters of credit. |
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48 | 50 | | (e) The duration of the financial assurance under |
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49 | 51 | | Subsection (d) must extend at least for the duration of the term of |
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50 | 52 | | the discharge permit held by the permit holder, including any |
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51 | 53 | | amendment. |
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52 | 54 | | (f) If the permit holder does not comply with the terms of |
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53 | 55 | | the agreement, money may be withdrawn from the financial assurance |
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54 | 56 | | according to commission rule. The money shall be deposited to the |
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55 | 57 | | credit of the Texas water resources fund for use in the green |
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56 | 58 | | project reserve program administered by the board. |
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57 | 59 | | (g) A party to an agreement under this section that is not a |
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58 | 60 | | permit holder is an affected person for the purpose of Section |
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59 | 61 | | 26.028. Notwithstanding any other law, and in accordance with |
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60 | 62 | | NPDES program requirements, the renewal of an NPDES permit that is |
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61 | 63 | | the subject of an agreement under this section may be the subject of |
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62 | 64 | | a contested case hearing, including an agreement under which a |
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63 | 65 | | complete drawdown of the financial assurance has occurred. |
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64 | 66 | | SECTION 2. This Act takes effect September 1, 2019. |
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