The Sunset Bill (SB 1397) for the Texas Commission on Environmental Quality (TCEQ) passed out of the House finally on May 17th (142-2) with one adopted floor amendment. The bill will now move back over to the Senate where they can concur or move to go to conference to work on the differences. A floor report of the discussions as the bill moved through the House chamber can be found below.

Additionally, budget items that TCEQ identified as “exceptional item requests” to help implement certain Sunset recommendations include:

  • Agency website useability enhancements – $6.3 million and nine (9) FTEs to maintain and develop content and ensure cross functionality. This would implement Sunset recommendations to improve the agency’s website and make public information easier to access.  Currently, public information is managed across 89 programs, and within more than 4,300 webpages and 118 information technology applications. .
  • Increase access to public records – $7.1 million.  The project would involve imaging, document review, redaction, and placement of the records on the TCEQ records online portal. In accordance with the law, confidential information must be redacted from the original agency records prior to making them available to the public. The Sunset Advisory Commission’s Staff Report noted the need for improvements to the information the agency provides on its website. This exceptional item request would increase the number of records available to the public on the Internet.
  • Updates to compliance history ratings – $1.1 million and five (5) FTEs.  Sunset Commission Management Action Recommendation 2.1 directed TCEQ to regularly update an entity’s compliance history throughout the year as it receives additional information.

This report is intended to give you an overview and highlight of the various topics taken up. It is not a verbatim transcript of the discussions but is based upon what was audible or understandable to the observer.

May 16th 

SB 1397 (Schwertner / et al. SP: Bell, Keith / Holland / Goldman / Canales / Clardy / et al.) Relating to the continuation and functions of the Texas Commission on Environmental Quality.

  • K Bell – Updates TCEQ enforcement practices to focus on most significant violations; major provisions incl.
    • Extending public comment period for certain air permit hearings
    • Permit application posting, permit applicant must submit copy of notice and affidavit
    • Enforcement diversion program
    • TCEQ regulated entities with continuous and open-ended permits must report annually
    • Work group to update environmental flow standards
    • Max penalty from $25k to $40k per day
    • Extends agency for 12 years, ensures only agency & not statute is subject to abolishment
  • Reynolds – This version is even better than the Senate, will improve transparency, public participation, and enforcement; had a few amendments, but decided to ask intent question instead
  • Reynolds – In addition to being major violation, TCEQ must find that company had same violation previously and company could’ve reasonably anticipated and avoided violation?
    • K Bell – Correct
  • Reynolds – Still maintains ability of TCEQ to apply higher fine for major violations with additional considerations, intent is to apply to most egregious and willful actors
    • Correct
  • Reynolds – Two willful releases could have $40k fine per day
    • Yes, what is important is company would have several violations
  • Reynolds – On cumulative air impact, is it true that SB 1397 is silent on whether TCEQ should do better job of considering this?
    • Nothing in bill currently on this
  • Reynolds – Intent to not consider this?
    • No, TCEQ does currently look at this, federal and state law already clear that TCEQ should consider, particularly in nonattainment areas
    • TCEQ has new standard on concrete batch plants with updated protectiveness review as rule proposal currently
  • Reynolds – So TCEQ already has ability o consider without need for statutory change?
    • Correct
  • Zwiener – Worked on bills last session to increase max penalty TCEQ could assess, does bill address this?
    • Yes, increases from $25k to $40k
  • Zwiener – Also concerned about transparency, what changes has bill made on water & air permits?
    • Posted online, consideration for those without connectivity
  • Anchia – Batch plants?
    • In April had standard permit for batch plants for review, TCEQ working on this
  • Anchia – Look forward to working on notice & comment period to protect constituents
  • Dutton – At hearing in my district TCEQ was not going to do anything with info gathered, weren’t going to take comments from public into consideration; does your bill do anything about this?
    • Recommendation 1.1 extended opportunity for requesting contested case hearings for certain permit
  • Dutton and K Bell discuss hearing process
  • Dutton – To be an affected person you have to live within 440 yards of facility permitted?
    • Correct; would be Lege decision to extend this or not
  • Dutton – Affected person doesn’t include legislators?
    • Correct, has not changed
  • Dutton – Still have a long way to go
  • Collier – 440 yards from site of production excludes a lot of people, did you give any thought to extending this? TCEQ already has authority to change distance?
    • TCEQ only has authority to determine science of permits, changing distance would require act of Lege
  • Collier – Many frustrated by lack of consideration for distance and concerned with science of determination like lack of consideration for trucks transporting material
    • TCEQ addresses cumulative exposure
  • FA 1 K Bell – TCEQ to develop & publish best management practices for APOs on website
    • FA 1 adopted
  • FA 2 Turner – Requires TCEQ to install, maintain, and monitor air quality monitors near gas wells in areas of 2m or more
    • Turner – Have open wells in Harris that cause health conditions; state has jurisdiction to regulate O&G operations, municipalities have very little input on location and state has responsibility to make sure O&G wells are safe
    • FA 2 withdrawn
  • Kuempel – Environmental flows advisory group would do the review or ensure they are done?
    • Advisory group will ensure reviews are done
  • Kuempel – Sunset recommendations said environmental flows stakeholder committees and members of science team should continue to serve until new member is appointed or member resigns, but bill doesn’t address this issue because current law already allows?
    • Correct
  • Passed to third reading

May 17th 

SB 1397 (Schwertner / et al. SP: Bell, Keith / Holland / Goldman / Canales / Clardy / et al.) Relating to the continuation and functions of the Texas Commission on Environmental Quality.

  • Goodwin – Is EPA currently investigating adequacy of delegated programs?
    • K Bell – TCEQ does have authority to do so via EPA in TX
    • Unadvised on whether EPA is investigating
  • Goodwin – Is standing for contested case hearings the same as in federal court?
    • Requestors must be personally affected by the permitting decision
  • Finally passed (142-2)