Zephyr Currents July 2013 | Page 3

A Summary of Environmental Bills Passed by the 83rd Texas Legislature

AN ATTORNEY ’ S PERSPECTIVE

A Summary of Environmental Bills Passed by the 83rd Texas Legislature

The 83rd Legislative Session ended on May 27 , 2013 , while most of us were enjoying Memorial Day weekend . Here is a “ Big 10 list ” of environmental bills and resolutions that will impact Texas ’ environmental industry :

HB788 – The Texas Commission on Environmental Quality ( TCEQ ) was given the legal authority to issue greenhouse gas ( GHG ) permits . The permit application review will be exempt from the contested case hearing process . TCEQ will undergo rulemaking to administer its GHG permitting program .
SB1756 – The TCEQ will be required to implement an “ expedited air quality permit review program ” if the permit application is for a project that will benefit the state or local economy . The TCEQ will be allowed to charge a surcharge for this service .
SB1300 – Environmental practitioners are afforded new opportunities to use the Texas Environmental Health & Safety Audit Privilege Act when representing buyers and sellers . By law , if proper notice is made to the TCEQ , environmental violations discovered during a pre-acquisition investigation ( aka “ due diligence period ”) may be self-disclosed and enjoy the same privileges and immunities under prior law .
HB2049 – A qualifying co-generator may sell retail electricity to more than one purchaser . This bill may not apply to muni-owned utilities or to electric co-ops where competition has not been introduced .
SJR1 – An opportunity for establishing two special state treasury funds , the State Water Implementation Fund for Texas and the State Water Implementation Revenue Fund for Texas , was created . The Texas Water Development Board would administer these funds with oversight from the Legislative Budget Board .
HB1897 – A procedural step was added to TCEQ ’ s Prop 2 Tax Relief for Pollution Control Property Program requiring that a chief appraiser may not accept an application for pollution control property exemption until the property owner provides a letter showing proof of the TCEQ ’ s final determination .
SB1727 – The Texas Emissions Reduction Plan statute for reducing NOx , PM , and VOC emissions in nonattainment and affected areas was modified to insure that TCEQ is given the authority to transfer funds among certain TERP-eligible programs . TERP fund
applicants near ports , distribution centers , or rail yards were also given an opportunity to participate in a “ Drayage Truck Incentive Program .”
HB2767 – Fluid oil and gas waste ownership was clarified . Any person who takes waste fluid for treatment and who subsequently produces a treated product suitable for drilling operations is not liable for tort . But the treated product must be transferred to another person under the contractual understanding that it will actually be used for oil and gas drilling purposes . The Railroad Commission will undergo rulemaking to clarify treatment and beneficial use of oil and gas waste .
SB466 – The Texas Department of Transportation ( TxDOT ) was given the authority to assume the responsibilities of the U . S . Department of Transportation with respect to National Environmental Policy Act duties and other federal environmental laws . Agreements between TxDOT and the U . S . Secretary of Transportation can be made to categorically exclude some highway projects from federally-mandated environmental assessments and impact statements .
HB1079 – Uranium production applications to the TCEQ will not be contested via the TCEQ ’ s traditional contested case hearing process . This bill also revised the public notice requirements for uranium applications . Z
Chris Pepper Shareholder Winstead PC
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