BILL ANALYSIS H.B. 3506 By: Dyson Energy Resources Committee Report (Unamended) BACKGROUND AND PURPOSE The Interstate Mining Compact Commission (IMCC) recognized Texas as a compact member in 1975, which is approximately when lignite coal production in the state was sharply increasing, according to the Texas Mining and Reclamation Association. The bill author has informed the committee that, while IMCC's advocacy benefitted the coal mining industry during this period by maintaining a presence in federal regulatory matters, membership in IMCC no longer benefits the state's interest due to the significant decline in Texas' lignite coal production. According to the Railroad Commission of Texas (RRC), negotiations with IMCC to decrease Texas' membership dues have not been productive. Additionally, the RRC surface mining staff has found other national associations, for which minimal dues are required, more beneficial, and the bill author has informed the committee that the RRC's expected cost savings resulting from withdrawal from IMCC can be better used for other purposes within the RRC's surface mining and reclamation division. H.B. 3506 seeks to address this issue by providing for Texas' withdrawal from IMCC. CRIMINAL JUSTICE IMPACT It is the committee's opinion that this bill does not expressly create a criminal offense, increase the punishment for an existing criminal offense or category of offenses, or change the eligibility of a person for community supervision, parole, or mandatory supervision. RULEMAKING AUTHORITY It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency, or institution. ANALYSIS H.B. 3506 withdraws the State of Texas from the Interstate Mining Compact as authorized by applicable provisions of the compact. The bill requires the governor, as soon as practicable after the bill's effective date, to provide written notice of the withdrawal to the governor of each state that is a party to the compact as provided by such provisions and publish notice of the withdrawal in the Texas Register. The bill abolishes the office of the Interstate Mining Compact Commissioner for Texas and the Texas Mining Council on the first anniversary of the date the governor publishes that notice. H.B. 3506 also repeals Chapter 132, Natural Resources Code, which sets out provisions relating to the compact, on the first anniversary of the date the governor publishes the applicable notice. EFFECTIVE DATE Except as otherwise provided, on passage, or, if the bill does not receive the necessary vote, September 1, 2025. BILL ANALYSIS # BILL ANALYSIS H.B. 3506 By: Dyson Energy Resources Committee Report (Unamended) H.B. 3506 By: Dyson Energy Resources Committee Report (Unamended) BACKGROUND AND PURPOSE The Interstate Mining Compact Commission (IMCC) recognized Texas as a compact member in 1975, which is approximately when lignite coal production in the state was sharply increasing, according to the Texas Mining and Reclamation Association. The bill author has informed the committee that, while IMCC's advocacy benefitted the coal mining industry during this period by maintaining a presence in federal regulatory matters, membership in IMCC no longer benefits the state's interest due to the significant decline in Texas' lignite coal production. According to the Railroad Commission of Texas (RRC), negotiations with IMCC to decrease Texas' membership dues have not been productive. Additionally, the RRC surface mining staff has found other national associations, for which minimal dues are required, more beneficial, and the bill author has informed the committee that the RRC's expected cost savings resulting from withdrawal from IMCC can be better used for other purposes within the RRC's surface mining and reclamation division. H.B. 3506 seeks to address this issue by providing for Texas' withdrawal from IMCC. CRIMINAL JUSTICE IMPACT It is the committee's opinion that this bill does not expressly create a criminal offense, increase the punishment for an existing criminal offense or category of offenses, or change the eligibility of a person for community supervision, parole, or mandatory supervision. RULEMAKING AUTHORITY It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency, or institution. ANALYSIS H.B. 3506 withdraws the State of Texas from the Interstate Mining Compact as authorized by applicable provisions of the compact. The bill requires the governor, as soon as practicable after the bill's effective date, to provide written notice of the withdrawal to the governor of each state that is a party to the compact as provided by such provisions and publish notice of the withdrawal in the Texas Register. The bill abolishes the office of the Interstate Mining Compact Commissioner for Texas and the Texas Mining Council on the first anniversary of the date the governor publishes that notice. H.B. 3506 also repeals Chapter 132, Natural Resources Code, which sets out provisions relating to the compact, on the first anniversary of the date the governor publishes the applicable notice. EFFECTIVE DATE Except as otherwise provided, on passage, or, if the bill does not receive the necessary vote, September 1, 2025. BACKGROUND AND PURPOSE The Interstate Mining Compact Commission (IMCC) recognized Texas as a compact member in 1975, which is approximately when lignite coal production in the state was sharply increasing, according to the Texas Mining and Reclamation Association. The bill author has informed the committee that, while IMCC's advocacy benefitted the coal mining industry during this period by maintaining a presence in federal regulatory matters, membership in IMCC no longer benefits the state's interest due to the significant decline in Texas' lignite coal production. According to the Railroad Commission of Texas (RRC), negotiations with IMCC to decrease Texas' membership dues have not been productive. Additionally, the RRC surface mining staff has found other national associations, for which minimal dues are required, more beneficial, and the bill author has informed the committee that the RRC's expected cost savings resulting from withdrawal from IMCC can be better used for other purposes within the RRC's surface mining and reclamation division. H.B. 3506 seeks to address this issue by providing for Texas' withdrawal from IMCC. CRIMINAL JUSTICE IMPACT It is the committee's opinion that this bill does not expressly create a criminal offense, increase the punishment for an existing criminal offense or category of offenses, or change the eligibility of a person for community supervision, parole, or mandatory supervision. RULEMAKING AUTHORITY It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency, or institution. ANALYSIS H.B. 3506 withdraws the State of Texas from the Interstate Mining Compact as authorized by applicable provisions of the compact. The bill requires the governor, as soon as practicable after the bill's effective date, to provide written notice of the withdrawal to the governor of each state that is a party to the compact as provided by such provisions and publish notice of the withdrawal in the Texas Register. The bill abolishes the office of the Interstate Mining Compact Commissioner for Texas and the Texas Mining Council on the first anniversary of the date the governor publishes that notice. H.B. 3506 also repeals Chapter 132, Natural Resources Code, which sets out provisions relating to the compact, on the first anniversary of the date the governor publishes the applicable notice. EFFECTIVE DATE Except as otherwise provided, on passage, or, if the bill does not receive the necessary vote, September 1, 2025.