89R15089 JRR-D By: Patterson H.B. No. 3997 A BILL TO BE ENTITLED AN ACT relating to permit application review and contested case procedures for environmental permits involving a project to construct or modify a liquefied natural gas export terminal; authorizing a fee. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Subchapter M, Chapter 5, Water Code, is amended by adding Section 5.559 to read as follows: Sec. 5.559. PROCEDURES FOR PERMIT APPLICATION REVIEW AND CONTESTED CASES INVOLVING PROJECT TO CONSTRUCT OR MODIFY LIQUEFIED NATURAL GAS EXPORT TERMINAL. (a) This section applies only to a permit application filed with the commission for a project to construct or modify a liquefied natural gas export terminal. (b) The commission by rule shall establish an expedited permit application review process for permit applications described by Subsection (a). Rules adopted under this subsection must require an applicant who elects the expedited permit application review process to pay an additional fee in an amount the commission determines is necessary to cover the costs of the expedited review. (c) Not later than the 120th day after the close of the public comment period for a permit application described by Subsection (a), the executive director shall issue a written response to any relevant and material public comments received during the public comment period. (d) Notwithstanding any other law, if a party requests a contested case hearing involving a permit application described by Subsection (a), the commission shall delegate to the State Office of Administrative Hearings the responsibility to conduct the contested case hearing. The provisions of Chapter 2001, Government Code, and Section 2003.047 of that code apply to a contested case hearing held under this subsection to the extent not inconsistent with this section or rules adopted under this section. (e) In a request for a contested case hearing under this section, the party requesting the hearing must specify each reason the party is an affected person as defined by Section 5.115(a). In determining whether a party is an affected person, the administrative law judge may only consider the reasons specified by the party in the party's request for a contested case hearing. (f) In a contested case under this section, an administrative law judge shall hold a preliminary hearing for the case not later than the 30th day after the date the commission refers the case to the administrative law judge, provided that the judge may grant one extension of the time, not to exceed 15 days, on request of any party. (g) The commission shall adopt rules as necessary to implement this section. (h) To the extent of a conflict between this section and another law, this section controls. SECTION 2. The change in law made by this Act applies only to a permit application described by Section 5.559(a), Water Code, as added by this Act, that is filed with the Texas Commission on Environmental Quality on or after the effective date of this Act. A permit application described by Section 5.559(a), Water Code, as added by this Act, that is pending on the effective date of this Act is governed by the law in effect at the time the application was filed, and the former law is continued in effect for that purpose. SECTION 3. This Act takes effect September 1, 2025.