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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