TITLE 30.ENVIRONMENTAL QUALITY

Part 1. TEXAS NATURAL RESOURCE CONSERVATION COMMISSION

Chapter 291. UTILITY REGULATIONS

The Texas Natural Resource Conservation Commission (commission) proposes the repeal of §§291.121 - 291.127, Utility Submetering; and new §§291.121, General Definitions; 291.122, Owner Registration and Records; 291.123, Rental Agreement; 291.124, Changes and Calculations; 291.125, Billing; 291.126, Discontinuance of Service; and 291.127, Submeters.

BACKGROUND AND SUMMARY OF THE FACTUAL BASIS FOR THE PROPOSED RULES

The proposed new sections under Chapter 291, Subchapter H, relating to Utility Submetering and Allocation, govern the submetering or allocation of water or wastewater service provided by apartment houses, condominiums, manufactured home rental communities, and other multiple use facilities receiving master metered utility service from a retail public utility. These rules do not regulate those properties which include master metered water and wastewater service in tenants' rent or condominium members' assessments. The previous sections are repealed and new sections are proposed in order to improve the organization, clarity and consistency of this subchapter. The proposed rules are intended to identify information that must be made available to tenants affected by these rules, clarify a property owner's responsibilities with regard to record keeping and rental agreements, establish procedures for passing utility costs through to tenants, update and revise acceptable methods for allocating utility costs, ensure accurate and timely rendering of tenant bills, define circumstances under which utility service may be discontinued for nonpayment, and update the requirements related to the installation, use and testing of submeters. The proposed rules are also intended to implement statutory changes made by Senate Bill (SB) 950, 76th Legislature 1999; specifically, to encourage submetering of individual rental or dwelling units, to replace definitions of "mobile home" and "mobile home park" with "manufactured home" and "manufactured home rental community", to permit the collection of a service charge by owners or managers of manufactured home rental communities, and to add manufactured home rental communities to the list of properties that may bill tenants for nonsusmbetered (allocated) service. The proposed rules provide that if the property owner wishes to bill tenants for water utility service, he or she must do so on a submetered or approved allocation basis. For those property owners who do not wish to submeter or allocate, the owner can still include utility service in the monthly rental rate agreed upon in the lease agreement.

Staff conducted a series of roundtable meetings on the proposed changes with representatives from multi-family property owners, utility companies, billing service contractors, industry associations and consumer/tenant representatives. Roundtable participants provided guidance and suggestions on the revisions to the allocation methods and on issues related to submetering. This information was incorporated where appropriate into the proposed revisions.

SECTION BY SECTION DISCUSSION

Section 291.121 sets out the purpose of the subchapter, identifies the types of property covered by the rules, and defines terms used in the subchapter. Manufactured home rental communities are expressly included in the coverage of the subchapter in keeping with SB 950, 76th Legislature 1999.

Section 291.122 requires owners that intend to bill tenants for submetered or allocated utility service to register with the executive director. Provision is also made for records that must be kept by the owner and made available for inspection by tenants or the agency. New provisions require the owner to make available to tenants: a copy of these rules; a copy of Texas Water Code, Chapter 13, Subchapter M, regarding "Submetering and Nonsubmetering for Apartments and Manufactured Home Rental Communities and Other Multiple Use Facilities" and information on the rates charged to the property by the retail public utility. The owner shall also make available any information regarding water conservation that is received by the owner from the retail public utility or the billing contractor.

Section 291.123 sets out the requirements for rental agreements between the owner and tenant where the owner wishes to bill tenants for submetered or allocated water or wastewater service. Subsection (d) prohibits an owner from changing from a submetered billing method where charges are based on a tenant's actual use to an allocated method where charges are estimated. A new owner who purchases a property that has been providing service and billing under a submetering method, may change to an allocated method but must provide notice to the tenants and include the change in tenant's rental agreements when they come up for renewal.

Section 291.124 provides for the acceptable methods of calculating charges for submetered utility service and allocated utility service. Subsection (a) lists charges billed by a retail public utility that may not be included in bills to tenants. Subsection (b) provides for a direct pass through of retail public utility charges if based on the number of dwelling units served by the utility through a master meter. Subsection (c) sets out the acceptable methods of calculating submetered utility service, including, for manufactured home rental communities, a service charge, as authorized by SB 950, 76th Legislature, 1999. Subsection (d) sets out acceptable methods of calculating allocated utility service. Current rules and approved methods that are proposed for repeal allow allocation of utility service based on the size of a dwelling unit, the size and occupancy of a dwelling unit, or the amount of submetered electric service consumed in the dwelling unit. Under the proposed new rule, utility service may only be allocated according to the number of occupants in a dwelling unit or the amount of submetered hot water used in a dwelling unit. If all common areas are not metered or submetered separately from tenants' service, only 75% of the total amount billed by the retail public utility may be allocated to tenants. Subsection (e) provides for a transition period for those properties using one of the currently approved methods of allocation that will be prohibited under the proposed new rules.

Section 291.125 provides rules for billing, including rules on the form of the bill, items that must be included on the bill, time of billing, due date, a provision for over billing and under billing and for billing disputes. Subsection (a) requires owners to bill tenants each month for the full amount owed for the tenant's submetered or allocated services. Subsection (h) extends, to sixteen, the number of days a tenant has before their payment is considered late. The repealed rules provided for seven days.

Section 291.126 provides proposed rules related to the circumstances, terms and conditions under which an owner may discontinue a tenant's utility service for nonpayment. Subsection (a) requires an owner to send a disconnection notice ten days prior to disconnecting service. The repealed rules provided for five days.

Section 291.127 sets out special rules related to submetered service, including requirements for using the same type as that used by the retail public utility, installation by the owner, testing, accuracy and record keeping.

FISCAL NOTE

Bob Orozco, Technical Specialist with Strategic Planning and Appropriations, has determined that for the first five-year period the proposed new sections are in effect there will be no fiscal implications for units of state and local government as a result of administration or enforcement of the proposed amendments. The proposed changes would repeal Subchapter H, Utility Submetering, and propose a new Subchapter H, Utility Submetering and Allocation, that would clarify portions of existing rules; specify certain duties and responsibilities of owners and tenants regarding submetered or allocated water and wastewater service. The rules would also implement certain provisions contained in SB 950, 76th Legislature, 1999, an act relating to submetered and nonsubmetered water utility service provided to residents of apartment houses and manufactured home rental communities. Submetered water utility service is service that is metered by the retail public utility for the owner and metered by the owner for each dwelling unit or multiple use facility unit; and wastewater utility service based on submetered water utility service. Allocated water/wastewater utility service is master metered to an owner by a retail public utility and allocated to each tenant by the owner.

The Texas Water Code, Chapter 13, Subchapter M, addresses submetering for apartments, condominiums, mobile home parks and other multiple use facilities. SB 950 revised Subchapter M by changing all references to "mobile home parks" to "manufactured home rental communities"; "mobile home" to "manufactured home"; defining "costs related to submetering" to include water costs as well as other applicable taxes and surcharges that are charged by the retail public utility to the manufactured home rental community owner or manger; and allowing manufactured home rental community owners or mangers to impose a service charge of not more than 9.0% of the costs related to submetering allocated to each submetered rental manufactured home. The bill also directed the commission to encourage submetering of apartments, condominiums, and manufactured homes by master meter operators to enhance the conservation of water resources.

The proposed rules would also prohibit an owner from changing from a submetered billing method to an allocated billing method for passing utility charges to tenants. There is an exception to this provision for a new owner. The proposed rules do not prohibit inclusion of water and wastewater service in the tenants' rent as long as the utility service is not billed separately.

The proposed rules apply to the submetering or allocation of water or wastewater service by apartments houses, condominiums, manufactured home rental communities, and other similar multiple use facilities that receive service from a retail public utility and bill tenants for utility service separately from rent charges. The proposed rules do not apply to apartments houses, condominiums, manufactured home rental communities, and other similar multiple use facilities that choose to discontinue separate billing for water and wastewater service and include this service in the tenants' rent.

The proposed new sections are also intended to establish acceptable methods for allocating utility service, promoting water conservation, and encouraging submetering of individual rental or dwelling units by master meter operators. Specifically, the proposed rules require owners of rental property that intend to either submeter or allocate utility bills to tenants to register with the commission and maintain certain records for inspection by tenants and/or the TNRCC. The proposed rules specify requirements for rental agreements between the owner and tenant where water and wastewater utility billing will be submetered or allocated to tenants from a master meter and prohibits a property owner from changing from a submetered to an allocated billing. The proposed rules also specify acceptable allocation methods and methods of calculating both submetered and allocated utility services to tenants. The proposed rules specify items that must be included on the tenant's bill such as billing and due dates; and specify provisions for over billing and under billing. The proposed rules will also provide for circumstances and under what terms and conditions an owner may discontinue utility service to a tenant.

For submetered service, the proposed rules specify requirements for type of meter, installation of meters, and regular testing of meters for accuracy.

Currently, rules allow allocation of utility service charges based on the size of the unit and other methods approved by the executive director. The proposed rules specify that allocated water and wastewater service may only be based on either the number of occupants in the tenants dwelling unit divided by the total number of occupants in all dwelling units at the beginning of the retail utility billing period, or the individually submetered hot water usage of the tenant's dwelling unit divided by all hot water usage in all dwelling units.

PUBLIC BENEFIT

Mr. Orozco also has determined that for each year of the first five years the proposed rules are in effect, the public benefit anticipated from enforcement of and compliance with the proposed rules will be allocated billing which more closely approximates actual tenant usage, increased use of submetering, decreased costs to consumers as they react to their individual consumption by controlling usage, and increased conservation efforts by owners of multi family and multi use properties.

The fiscal implications of SB 950 are limited to the authorization for owners and managers of manufactured home rental communities to impose a service charge of not more than 9.0% of the costs related to submetering of each manufactured home rental unit. It is assumed that over time, the conservation of water resources will offset the additional costs of submetering and does not impose any additional requirements because it is optional.

If owners of multiple use rental properties opt to use submeters, it is anticipated that the costs of installing submeters on new construction will range from approximately $175 to $200 per meter. Plumbing costs associated with minor retrofitting to established systems, when required, is estimated to cost an additional $50 to $100 per meter. The total cost of installing submeters is estimated to be in the range of $175 to $300 per meter. Major plumbing retrofit, where required, is variable and is dependent on existing plumbing, site characteristics, and the design used for a submetering system. An estimate for a major plumbing retrofit could not be determined because of the extensive variables. It is anticipated that capital costs associated with submeter purchase and installation and additional costs associated with meter maintenance and service may be recovered over time through rent. It is also anticipated that some owners may choose to include master metered water and wastewater service in the tenants' rent or use an approved allocation method with an existing system if submetering is not economically viable.

The proposed rules include a transition period of one year during which affected facilities that are already allocating utility billing based on currently approved methods must transition to the proposed allocation methods or submetering. The proposed rules also prohibit an owner from changing to an allocated method from a submetered method for billing tenants. There is an exception from this prohibition for new owners. The proposed rules do not prohibit inclusion of water and wastewater service in the tenants' rent.

SMALL BUSINESS AND MICRO-BUSINESS IMPACT ANALYSES

It is anticipated that many of the facilities affected by the proposed rules are small business and micro businesses. If owners of affected facilities choose to install submeters, the costs associated with installing submetering equipment is dependent on the number of rental units, meters required, and the characteristics of the property and the existing plumbing. It is estimated that costs for small businesses and micro businesses would be similar to the estimated range of $175 to $300 per meter for business in general. It is anticipated that some owners may choose to include water and wastewater service in the tenants' rent or use an approved allocation method for existing rental properties if submetering is not economically viable.

DRAFT REGULATORY IMPACT ANALYSIS

The commission has reviewed the proposed rulemaking in light of the regulatory analysis requirements of Texas Government Code, §2001.0225, and has determined that the rulemaking is not subject to §2001.0225 because it does not meet the definition of a "major environmental rule" as defined in that statute. "Major environmental rule" means a rule the specific intent of which is to protect the environment or reduce risks to human health from environmental exposure and that may adversely affect in a material way the economy, a sector of the economy, productivity, competition, jobs, the environment, or the public health and safety of the state or a sector of the state. The proposed rulemaking is not intended to protect the environment or reduce risks to human health from environmental exposure. The proposed rulemaking is not anticipated to adversely affect in a material way the economy, a sector of the economy, productivity, competition, jobs, the environment, or the public health and safety of the state or a sector of the state because the costs associated with submeter installation are relatively minor and may be recovered through rents. In addition, costs associated with submeter installation may be avoided by using an approved allocation method for existing rental properties, or utility billing may be discontinued by including water and wastewater service in rents. The proposed rulemaking does not meet the applicability requirements of a "major environmental rule" because it does not meet the definition as set forth in Texas Government Code, §2001.0225. The proposed rulemaking does not exceed a standard set by federal law, exceed an express requirement of state law, nor exceed a requirement of a delegation agreement. In addition, the proposed rules are consistent with provisions in SB 950 and are specifically required by Texas Water Code, §13.503 and §13.5031.

TAKINGS IMPACT ASSESSMENT

The commission has prepared a Takings Impact Assessment for these rules pursuant to Texas Government Code,§207.043. The following is a summary of that Assessment. The specific purposes of the rule are to implement SB 950, 76th Legislature, 1999, and Texas Water Code, §§13.501 - 13.505. The rule would also set standards for submetering and allocation of master metered water and wastewater service to tenants. Promulgation and enforcement of these rules will not burden private real property because apartment house owners, condominium managers or owners of other multiple use facilities retain the freedom to choose not to submeter or allocate water and wastewater service. The proposed rules have been developed to encourage submetering, promote judicious use and maximum conservation of water, and provide safeguards to tenants as provided by statute. Submetering provides a fairer and more accurate accounting in billing for utility service. The proposed sections provide that if the property owner wishes to bill tenants for water utility service, they must do so on a submetered or approved allocation basis. For those property owners that do not wish to submeter, or allocate, the owners can still include water utility service in the monthly rental rate agreed upon in the lease agreement.

CONSISTENCY WITH THE COASTAL MANAGEMENT PROGRAM

The commission has reviewed the proposed rulemaking and found that the rule is neither identified in Coastal Coordination Act Implementation Rules, 31 TAC, §505.11, relating to Actions and Rules Subject to the Texas Coastal Management Program (CMP), nor will it affect any action or authorization identified in Coastal Coordination Act Implementation Rules, 31 TAC, §505.11. Therefore, the proposed rule is not subject to the CMP.

PUBLIC HEARING

A public hearing on this proposal will be held in Austin on April 18, 2000, at 10:00 a.m. in Building F, Room 2210 of the commission's central office, located at 12100 North IH-35, Park 35 Technical Center, Austin, Texas 78753. The hearing is structured for the receipt of oral or written comments by interested persons. Individuals may present oral statements when called upon in order of registration. Open discussion will not occur during the hearing; however, an agency staff member will be available to discuss the proposal 30 minutes prior to the hearing and will answer questions before and after the hearing.

SUBMITTAL OF COMMENTS

Comments on the proposal may be submitted to Bettie Bell, Texas Natural Resource Conservation Commission, Office of Environmental Policy, Analysis, and Assessment, MC-205, P.O. Box 13087, Austin, Texas 78711-3087, (512) 239-6087, or faxed to (512) 239-5687. All comments should reference Rule Log No. 1999-042-291-WT and must be received by 5:00 p.m. on April 24, 2000. For further information or questions concerning this proposal, please contact Kate Wilkins, Utilities and Districts Section, at (512) 239-6960.

Subchapter H. UTILITY SUBMETERING

30 TAC §§291.121 - 291.127

STATUTORY AUTHORITY

(Editor's note: The text of the following sections proposed for repeal will not be published. The sections may be examined in the offices of the Texas Natural Resource Conservation Commission or in the Texas Register office, Room 245, James Earl Rudder Building, 1019 Brazos Street, Austin.)

The repeal sections are proposed under the Texas Water Code, §5.103, which provide the commission the authority to adopt and enforce rules necessary to carry out its powers and duties under the laws of this state; Texas Water Code, §5.011, which provides that the commission is established for the purpose of ensuring the efficient and effective administration of the conservation of the state's natural resources; Texas Water Code, §5.120, which requires the commission to administer the law so as to promote the judicious use and maximum conservation of water; Texas Water Code, §13.503, which requires the commission to adopt rules regulating submetering of water or sewer service under certain situations; and Texas Water Code, §13.5031, which requires the commission to adopt rules governing the allocation of water and sewer service costs in certain situations.

The rule implements Texas Water Code, §§13.501 - 13.505.

§291.121. General Rules.

§291.122.Definitions.

§291.123. Records and Reports.

§291.124. Calculation of Costs.

§291.125. Billing.

§291.126. Discontinuance of Service.

§291.127. Submeters.

This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

Filed with the Office of the Secretary of State, on March 13, 2000.

TRD-200001885

Margaret Hoffman

Director, Environmental Law Division

Texas Natural Resource Conservation Commission

Earliest possible date of adoption: April 23, 2000

For further information, please call: (512) 239-6087


Chapter 291. WATER RATES

Subchapter H. UTILITY SUBMETERING AND ALLOCATION

30 TAC §§291.121 - 291.127

STATUTORY AUTHORITY

The new sections are proposed under the Texas Water Code, §5.103, which provide the commission the authority to adopt and enforce rules necessary to carry out its powers and duties under the laws of this state; Texas Water Code, §5.011, which provides that the commission is established for the purpose of ensuring the efficient and effective administration of the conservation of the state's natural resources; Texas Water Code, §5.120, which requires the commission to administer the law so as to promote the judicious use and maximum conservation of water; Texas Water Code, §13.503, which requires the commission to adopt rules regulating submetering of water or sewer service under certain situations; and Texas Water Code, §13.5031, which requires the commission to adopt rules governing the allocation of water and sewer service costs in certain situations.

The proposed rules implement Texas Water Code, §§13.501 - 13.505.

§291.121. General Rules and Definitions.

(a)

Purpose and scope. The provisions of this subchapter are intended to establish a comprehensive regulatory system to assure that the practices involving submetered and allocated billing of dwelling units for utility service are just and reasonable and include appropriate safeguards for tenants.

(b)

Application. The provisions of this subchapter shall apply to apartment houses, condominiums, multiple use facilities, and manufactured home rental communities billing for utility service on a submetered or allocated basis.

(c)

Definitions. The following words and terms, when used in this subchapter, shall have the following meanings unless the context clearly indicates otherwise.

(1)

Allocated utility service - Water or wastewater utility service that is master metered to an owner by a retail public utility and allocated to tenants by the owner.

(2)

Apartment house - A building or buildings containing five or more dwelling units which are occupied primarily for nontransient use, including a residential condominium whether rented or owner occupied, and if a dwelling unit is rented, having rental paid at intervals of one month or longer.

(3)

Dwelling unit - One or more rooms in an apartment house or condominium, suitable for occupancy as a residence, and containing kitchen and bathroom facilities; or a manufactured home in a manufactured home rental community.

(4)

Master meter - A meter used to measure, for billing purposes, all water usage of an apartment house, condominium, multiple use facility, or manufactured home rental community, including common areas, common facilities, and dwelling units.

(5)

Manufactured home rental community - A property on which spaces are rented for the occupancy of manufactured homes for nontransient residential use and for which rental is paid at intervals of one month or longer.

(6)

Multiple use facility - A commercial or industrial park, office complex or marina with five or more units which are occupied primarily for nontransient use and are rented at intervals of one month or longer.

(7)

Owner - The legal titleholder of an apartment house, manufactured home rental community, or multiple use facility; a condominium association; or any individual, firm, or corporation that purports to be the landlord of tenants in the apartment house, manufactured home rental community, or multiple use facility.

(8)

Submetered utility service - Water utility service that is master metered for the owner by the retail public utility and individually metered by the owner at each dwelling unit or multiple use facility unit; or wastewater utility service based on submetered water utility service.

(9)

Tenant - A person who owns or is entitled to occupy a dwelling unit or multiple use facility unit to the exclusion of others and, if rent is paid, who is obligated to pay for the occupancy under a written or oral rental agreement.

(10)

Utility service - For purposes of this subchapter, utility service shall only include drinking water and wastewater.

§291.122. Owner Registration and Records.

(a)

Registration. An owner who intends to bill tenants for submetered or allocated utility service or who changes the method currently used to bill tenants for utility service shall register with the executive director in a form prescribed by the executive director.

(b)

Records. The owner shall make the following records available for inspection by the tenant or the executive director at the onsite manager's office during normal business hours:

(1)

a current and complete copy of Texas Water Code, Chapter 13, Subchapter M;

(2)

a current and complete copy of this subchapter;

(3)

a current copy of the retail public utility's rate structure applicable to the owner's bill;

(4)

information regarding water conservation that is received by the owner from the retail public utility or an owner's billing contractor;

(5)

the bills from the retail public utility to the owner;

(6)

for allocated billing, the formula and percentage used to calculate tenant bills; and

(7)

for submetered billing:

(A)

the calculation of the average cost per gallon or cubic foot;

(B)

all submeter readings; and

(C)

all submeter test results.

(c)

Records retention. Each of the records required under subsection (b) of this section shall be maintained for the current year and the previous calendar year, except that all submeter test results shall be maintained until the submeter is permanently removed from service.

(d)

Availability of records.

(1)

If the records required under subsection (b) of this section are not routinely maintained at the onsite manager's office, the owner shall provide copies of the records to the onsite manager within 15 days of receiving a written request from a tenant or the executive director.

(2)

If there is no onsite manager, the owner shall make copies of the records available at the tenant's dwelling unit at a time agreed upon by the tenant within 30 days of the owner receiving a written request from the tenant.

§291.123. Rental Agreement.

(a)

Rental agreement content. The rental agreement between the owner and tenant shall clearly state:

(1)

the tenant will be billed by the owner for submetered or allocated utility services, whichever is applicable;

(2)

which utility services will be included in the bill issued by the owner;

(3)

any disputes relating to the computation of the tenant's bill or the accuracy of any submetering device will be between the tenant and the owner;

(4)

the average monthly bill for all dwelling units in the previous calendar year; and

(5)

if not submetered, a clear description of the formula used to allocate utility services.

(b)

Information on applicable rules. At the time a rental agreement is discussed, the owner shall make a copy of this subchapter available to inform the tenant of his rights and the owner's responsibilities under this subchapter.

(c)

Tenant agreement to billing method changes. An owner shall not change the method by which a tenant is billed unless the tenant has agreed to the change by signing a lease or other written agreement. The owner shall provide notice of the proposed change at least 35 days prior to implementing the new method.

(d)

Change from submetered to allocated billing prohibited. An owner shall not change from submetered billing to allocated billing, unless there has been a change in ownership of the property and the rental agreement requirements under subsections (a), (b), and (c) have been met.

(e)

Waiver of tenant rights prohibited. A rental agreement provision that purports to waive a tenant's rights or an owner's responsibilities under this subchapter is void.

§291.124. Charges and Calculations.

(a)

Prohibited charges. Charges for submetered or allocated utility service shall not include any fees billed to the owner by the retail public utility or billing service contractor for any deposit, disconnect, reconnect, late payment, or other similar fees.

(b)

Dwelling unit base charge. If the retail public utility's rate structure includes a dwelling unit base charge, the owner shall bill each dwelling unit for the base charge applicable to that unit. A dwelling unit base charge is a flat rate or fee charged by a retail public utility for each dwelling unit recorded by the retail public utility. The owner shall not bill tenants for any base charges applicable to unoccupied dwelling units.

(c)

Calculations for submetered utility service. After the retail public utility's monthly bill is received, the tenant's submetered charges shall be calculated each month as follows:

(1)

water utility service: the retail public utility's total monthly charges for water service (less dwelling unit base charges if applicable), divided by the total monthly water consumption measured by the retail public utility to obtain an average water cost per gallon or cubic foot, multiplied by the tenant's monthly consumption;

(2)

wastewater utility service: the retail public utility's total monthly charges for wastewater service (less dwelling unit base charges if applicable), divided by the total monthly water consumption measured by the retail public utility, multiplied by the tenant's monthly consumption; and

(3)

the service charge which may be billed by the owner of a manufactured home rental community: multiply the tenant's charge for submetered water service by an amount not to exceed 9.0%.

(d)

Calculations for allocated utility service.

(1)

After deducting dwelling unit base charges if applicable, charges for allocated utility service shall be based on:

(A)

the total amount billed by the retail public utility for water or wastewater service, if there are no common areas served through the master meter serving tenants; or

(B)

the total amount billed by the retail public utility less charges applicable to common areas, all of which are separately metered or submetered; or

(C)

75% of the total amount billed by the retail public utility for water or wastewater service if all common areas are not separately metered or submetered.

(2)

To calculate a tenant's bill, the owner shall multiply the amount established in subsection (d)(1) of this section by either:

(A)

the number of occupants in the tenant's dwelling unit divided by the total number of occupants in all dwelling units at the beginning of the retail public utility's billing period; or

(B)

the individually submetered hot water usage of the tenant's dwelling unit divided by all hot water usage in all dwelling units.

(e)

Conversion to approved allocation method. Within 365 days after the effective date of this subchapter, an owner using an allocation formula other than those approved in subsection (d)(2) of this section shall provide notice as required under §291.123 (c) of this title (relating to Rental Agreement) and either:

(1)

adopt one of the methods in subsection (d)(2) of this section; or

(2)

install submeters and begin billing on a submetered basis; or

(3)

discontinue billing for utility services.

§291.125. Billing.

(a)

Monthly billing of total charges. The owner shall bill the tenant each month for the total charges calculated under §291.124 of this title (relating to Charges and Calculations).

(b)

Rendering bill. Bills shall be rendered as promptly as possible after the owner receives the retail public utility bill and reads submeters, if applicable.

(c)

Submeter reading schedule. Submeters shall be read within three days of the scheduled reading date of the retail public utility's master meter.

(d)

Billing period. Bills shall be rendered for the same billing period as that of the retail public utility, generally monthly, unless service is provided for less than that period.

(e)

Multi-item bill. If issued on a multi-item bill, charges for submetered or allocated utility service shall be separate and distinct from any other charges on the bill.

(f)

Information on bill. The bill shall clearly state the utility service is submetered or allocated as applicable and shall include all of the following:

(1)

total amount due for submetered or allocated water;

(2)

total amount due for submetered or allocated wastewater;

(3)

total amount due for dwelling unit base charge(s), if applicable;

(4)

total amount due for a service charge, if applicable;

(5)

the name of the retail public utility and a statement that the bill is not from the retail public utility;

(6)

name and address of the tenant to whom the bill is applicable;

(7)

name of the firm rendering the bill and the name or title, address, and telephone number of the firm or person to be contacted in case of a billing dispute; and

(8)

name, address, and telephone number of the party to whom payment is to be made.

(g)

Information on submetered service. In addition to the information required in subsection (f) of this section, a bill for submetered service shall include all of the following:

(1)

the date and reading of the submeter at the beginning and at the end of the period for which the bill is rendered;

(2)

the number of gallons or cubic feet metered; and

(3)

the cost per gallon or cubic foot for each service provided.

(h)

Due date. The due date on the bill shall not be less than 16 days after it is mailed or hand delivered to the tenant, unless the due date falls on a federal holiday or weekend in which case the following work day shall be the due date. The owner shall record the date the bill is mailed or hand delivered. A payment is delinquent if not received by the due date.

(i)

Estimated bill. An estimated bill shall not be rendered unless a master meter or submeter has been tampered with, cannot be read, or is out of order; and in such case the bill shall be distinctly marked as an estimate and the subsequent bill shall reflect an adjustment for actual charges.

(j)

Payment by tenant. Unless clearly designated by the tenant, payment shall be applied first to rent and then to utilities.

(k)

Overbilling and underbilling. If a bill is issued and subsequently found to be in error, the owner shall calculate a billing adjustment. If the tenant is due a refund, an adjustment shall be calculated for all bills that included overcharges. If the tenant was undercharged, and the cause was not due to submeter error, the owner may calculate an adjustment for bills issued in the previous six months. If the total undercharge is $25.00 or more, the owner shall offer the tenant a deferred payment plan option, for the same length of time as that of the underbilling. Adjustments for usage by a previous tenant shall not be backbilled to a current tenant.

(l)

Disputed bills. In the event of a dispute between a tenant and an owner regarding any bill, the owner shall investigate the matter and report the results of the investigation to the tenant. The investigation and report shall be completed within 30 days from the date the tenant gives written notification of the dispute to the owner.

§291.126. Discontinuance of Service.

(a)

Disconnection for nonpayment. A tenant's water utility service may be disconnected if payment was not received by the due date, and the owner issues a disconnection notice after the due date at least ten days prior to a stated date of disconnection.

(b)

Disconnection notice. The notice issued by an owner under this section shall include the following:

(1)

the words "disconnection notice" prominently displayed,

(2)

the date payment must be received by the owner to avoid disconnection,

(3)

the date service will be disconnected if payment is not received, and

(4)

a local address where the tenant can go during normal business hours to make arrangements for payment of the bill and for reconnecting service.

(c)

Disconnection on holidays and weekends. Unless a dangerous condition exists which is related to the type of service provided, or unless the tenant requests disconnection, service shall not be disconnected on a day, or on a day immediately preceding a day, when the owner or his representative is not available to collect payments and reconnect service.

§291.127. Submeters.

(a)

Same type meters required. All submeters served through a master meter shall use the same unit of measurement as the master meter, such as gallon or cubic foot.

(b)

Installation by owner. The owner shall be responsible for providing, installing, and maintaining all submeters necessary for the measurement of water to tenants and to common areas, if applicable.

(c)

Submeter tests prior to installation. No submeter shall be placed in service unless its accuracy has been established. If any submeter is removed from service, it shall be properly tested and calibrated before being placed in service again.

(d)

Accuracy requirements for submeters. Submeters shall be calibrated as close as possible to the condition of zero error and within the accuracy standards established by the American Water Works Association (AWWA) for water meters.

(e)

Location of submeters. Submeters shall be installed in accordance with applicable plumbing codes and AWWA standards for water meters, and shall be readily accessible to the tenant and to the owner for reading, testing, and inspection where such activities will cause minimum interference and inconvenience to the tenant.

(f)

Submeter records. The owner shall maintain a record on each submeter which includes:

(1)

an identifying number;

(2)

the installation date (and removal date if applicable);

(3)

date(s) the submeter was calibrated or tested;

(4)

copies of all tests; and

(5)

the current location of the submeter.

(g)

Submeter test on request of tenant. Upon receiving a written request from the tenant, the owner shall either:

(1)

provide evidence, at no charge to the tenant, that the submeter was calibrated or tested within the preceding 12 months and determined to be within the accuracy standards established by the AWWA for water meters; or

(2)

have the submeter removed and tested and promptly advise the tenant of the test results.

(h)

Billing for submeter test.

(1)

The owner shall not bill the tenant for testing costs if the submeter fails to meet AWWA accuracy standards.

(2)

The owner shall not bill the tenant for testing costs if there is no evidence the submeter was calibrated or tested within the preceding 12 months.

(3)

The owner may bill the tenant for actual testing costs (not to exceed $25) if the submeter meets AWWA accuracy standards and evidence as described in subsection (g)(1) of this section was provided to the tenant.

(i)

Bill adjustment due to submeter error. If a submeter does not meet AWWA accuracy standards and the tenant was overbilled, an adjusted bill shall be rendered in accordance with §291.125(l) of this title (relating to Billing). The owner shall not charge the tenant for any underbilling that occurred because the submeter was in error.

(j)

Submeter testing facilities and equipment. An owner shall comply with the meter testing requirements applicable to utilities under §291.89(e) of this title (relating to Meters).

This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

Filed with the Office of the Secretary of State, on March 13, 2000.

TRD-200001886

Margaret Hoffman

Director, Environmental Law Division

Texas Natural Resource Conservation Commission

Earliest possible date of adoption: April 23, 2000

For further information, please call: (512) 239-6087


Chapter 330. MUNICIPAL SOLID WASTE

Subchapter O. REGIONAL AND LOCAL SOLID WASTE MANAGEMENT PLANNING AND FINANCIAL ASSISTANCE GENERAL PROVISIONS

30 TAC §§330.562, 330.563, 330.566

The Texas Natural Resource Conservation Commission (TNRCC or commission) proposes amendments to §330.562, Definitions of Terms and Abbreviations; §330.563, Regional and Local Plan Requirements; and §330.566, Procedures for Regional and Local Plan Submission and Approval. The commission proposes these revisions in response to requirements of Senate Bill (SB) 1447, 76th Legislature, 1999, which added new requirements for identifying former municipal solid waste landfill units and notifying the owners of the overlaying property. SB 1447 amended the Texas Health and Safety Code (THSC), §363.064(a)(10), concerning inventories of closed municipal solid waste landfill units to be included in regional and local solid waste management plans. The proposed rule amendments reflect legislative clarification of certain procedures and responsibilities related to the development of the inventories and making them available for public inspection.

BACKGROUND AND SUMMARY OF THE FACTUAL BASIS FOR THE PROPOSED RULES

In January 1996, the commission adopted amendments to Chapter 330, Subchapter O, to incorporate requirements mandated by House Bill (HB) 2537, 73rd Legislature, 1993, that all regional and local solid waste management plans include an inventory of existing and closed landfill units. In accordance with HB 2537, the inventory required that the location of the landfill units be provided. SB 1447 required that the exact boundaries of each former landfill unit or, if the exact boundaries are not known, the best approximation of each unit's boundaries, and a map showing the approximate boundaries of the former landfill unit, if the exact boundaries are not known, be provided. SB 1447 also established requirements for notification of the contents of the inventory to the commission, local governments, and the public.

SECTION BY SECTION DESCRIPTION

Section 330.562 is proposed to be amended to include a more detailed definition of "closed municipal solid waste landfill unit," in order to specify the types of solid waste disposal sites to be included in the inventories.

Section 330.563 is proposed to be amended to distinguish between the regional and local solid waste management plan inventory requirements for landfill units for which exact boundaries are known and for landfill units for which exact boundaries are not known. The amendments will provide that local plans may substitute the inventory information contained in the regional plan. The amendments will also provide that the requirement to include the inventory information in the local plan will not apply until that information has been incorporated into the applicable regional plan and approved by the commissioners.

Section 330.566 is proposed to be amended to more appropriately name the section and to add procedures for making the closed landfill inventory available for public inspection.

FISCAL NOTE

Jeff Grymkoski, Director, Strategic Planning and Appropriations, has determined that for the first five-year period the proposed amendments are in effect, there will be no significant fiscal implications for units of state and local government as a result of administration or enforcement of the proposed amendments. The proposed amendments would implement certain provisions of SB 1447.

The proposed rules will require councils of governments (COGs) and local governments to include in a regional or local solid waste plan an inventory of the exact boundaries of each former landfill unit or, if the exact boundaries are not known, the best approximation of each unit's boundaries. For each landfill unit for which the exact boundaries are not known, the inventories shall include a map showing the approximate boundaries of the former landfill unit. To the maximum extent practical, such inventories shall list the current owner of the land on which the former landfill units were located.

The rules would require each COG to provide a copy of the inventory of closed municipal solid waste landfill units to the chief planning official of each municipality and county in which a unit is located. COGs and chief planning officials would also be required to make the inventory available for public inspection.

PUBLIC BENEFIT

Mr. Grymkoski has also determined that for each year of the first five years the proposed amendments are in effect, the public benefit anticipated from enforcement of and compliance with the proposed amendments will be improved public access to the exact boundaries or the best approximation of boundaries of former landfill units located in Texas.

No adverse economic costs to any person or business are anticipated as a result of implementing the proposed rules. The rules will require COGs and local governments to include in regional or local solid waste plans an inventory of the exact boundaries of each former landfill unit, or if the exact boundaries are not known, the best approximation of each unit's boundaries. The rules would require that this information be made available for public inspection.

SMALL BUSINESS AND MICRO-BUSINESS ANALYSES

No adverse economic effects are anticipated to any small businesses or micro-businesses as a result of implementing the proposed rules. The rules will require COGs and local governments to include in regional or local solid waste plans an inventory of the exact boundaries of each former landfill unit, or if the exact boundaries are not known, the best approximation of each unit's boundaries. The rules would require that this information be made available for public inspection.

DRAFT REGULATORY IMPACT ANALYSIS

The commission has reviewed the proposed rulemaking in light of the regulatory analysis requirements of Texas Government Code, §2001.0225, and has determined that the rulemaking is not subject to §2001.0225 because it does not meet the definition of a "major environmental rule" as defined in that statute. "Major environmental rule" means a rule the specific intent of which is to protect the environment or reduce risks to human health from environmental exposure and that may adversely affect in a material way the economy, a sector of the economy, productivity, competition, jobs, the environment, or the public health and safety of the state or a sector of the state. The proposed rules are not anticipated to adversely affect in a material way the economy, a sector of the economy, productivity, competition, jobs, the environment, or the public health and safety of the state or a sector of the state. The proposed amendments do not add any additional regulatory requirements not already required by state or federal law. In addition, the proposed amendments are not a "major environmental rule" because they do not meet the applicability requirements of a "major environmental rule." The proposed amendments do not exceed a standard set by federal law, exceed an express requirement of state law, nor exceed a requirement of a delegation agreement. This rulemaking implements provisions of SB 1447. The commission seeks public comment on the draft regulatory impact analysis.

TAKINGS IMPACT ASSESSMENT

The commission has prepared a takings impact assessment for these rule amendments pursuant to Texas Government Code, §2007.043. The following is a summary of that assessment. The specific purpose of the rule amendments is to make commission rules conform with the provisions in SB 1447 which clarify the responsibilities of COGs and local governments with respect to documenting and reporting the location of closed municipal solid waste landfill units. The original legislation and implementing rules required the reporting of only the location of a closed landfill to the landowner and the county clerk, but the proposed amendments will require that the exact boundaries, or approximate boundaries with a supporting map of the former landfill be reported and recorded in the closed landfill inventory as required by SB 1447.

The proposed rule amendments will substantially advance the specific purpose by incorporating the new requirements specified by SB 1447. Promulgation and enforcement of these amendments will not burden private real property which is the subject of the amendments because the actions that are required by the amendments are directed at regional and local planning agencies and not toward private real property owners. Therefore, this proposal will not constitute a takings under the Texas Government Code, Chapter 2007.

COASTAL MANAGEMENT PROGRAM CONSISTENCY REVIEW

The commission has reviewed the proposed rulemaking and found that the rules are neither identified in Coastal Coordination Act Implementation Rules, 31 TAC §505.11, relating to Actions and Rules Subject to the Coastal Management Program, nor will the rules affect any action/authorization identified in Coastal Coordination Act Implementation Rules, 31 TAC 505.11. Therefore, the proposed rules are not subject to the Coastal Management Program.

SUBMITTAL OF COMMENTS

Comments may be submitted to Angela Slupe, Office of Environmental Policy, Analysis, and Assessment, MC 205, P.O. Box 13087, Austin, Texas 78711-3087 or faxed to (512) 239-4808. All comments should reference Rule Log Number 1999-048-330-WS. Comments must be received by 5:00 p.m., April 24, 2000. For further information, please contact Hector Mendieta, Policy and Regulations Division, telephone number (512) 239-6694.

STATUTORY AUTHORITY

The amendments are proposed under the Solid Waste Disposal Act, THSC, §361.011 and §361.24, which authorize the commission to regulate nonhazardous municipal solid waste and to adopt rules consistent with the general intent and purposes of the Act; and the Comprehensive Municipal Solid Waste Management, Resource Recovery and Conservation Act, THSC, §363.061 and §363.064, which require the commission to adopt rules relating to regional and local solid waste management plans and specify the content of the plans.

The proposed amendments implement THSC, Chapters 361 and 363.

§330.562.Definitions of Terms and Abbreviations.

The following words and terms, when used in this subchapter, shall have the following meanings, unless the context clearly indicates otherwise.

(1)-(2)

(No change.)

(3)

Closed Municipal Solid Waste Landfill (CMSWLF) Unit--A discrete area of land or an excavation that has received only municipal solid waste or municipal solid waste combined with other solid wastes, including but not limited to construction/demolition waste, commercial solid waste, nonhazardous sludge, conditionally-exempt small-quantity generator hazardous waste, and industrial solid waste, and that is not a land application unit, surface impoundment, injection well, or waste pile as those terms are defined by 40 Code of Federal Regulations §257.2 [ CMSWLF--Closed municipal solid waste landfill ].

(4)-(26)

(No change.)

§330.563.Regional and Local Plan Requirements.

(a)

Regional plans. A regional plan identifies the problems, goals, objectives, and recommended actions for solid waste management over a long-range period for the entire planning region.

(1)-(2)

(No change.)

(3)

Plan content. A regional plan shall be the result of a planning process related to the proper management of solid waste in the planning region. The process shall include identification of problems and collection and evaluation of the data necessary to provide a written public statement of goals and objectives and actions recommended to accomplish those goals and objectives. The regional plan shall include:

(A)-(N)

(No change.)

(O)

an inventory of closed municipal solid waste landfill units located within the planning region. The inventories shall include the exact boundaries of each former landfill unit or, if the extent of the boundaries are not known, the best approximation of each unit's boundaries. For each landfill unit for which the exact boundaries are not known, the inventories shall include a map showing the approximate boundaries of the former landfill unit. To the maximum extent practicable, such inventories shall list the current owners of the land on which the former landfill units were located and the current use of the land [ municipal solid waste landfill units, including landfill units no longer in operation. To the extent possible, such inventories shall list the location of such units, the current owners of the land on which the former landfill units were located, and the current use of the land. The executive director may conduct inventories, in coordination with the regional planning commissions, on a statewide basis and provide such inventories to the regional planning commissions to incorporate into their regional plans ].

(4)

(No change.)

(b)

Local plans. A local plan addresses specific short and long-range problems and actions related to solid waste management within the jurisdiction of one or more local governments and may be developed regardless of whether a regional plan has been developed which will affect the local planning area.

(1)-(2)

(No change.)

(3)

Plan content. A local plan shall be the result of a planning process that is related to the proper management of solid waste in the local planning area. The process shall include identification of problems and collection and evaluation of the data necessary to provide a written public statement of goals and objectives and the actions recommended to accomplish those goals and objectives. The local plan shall include:

(A)-(K)

(No change.)

(L)

an inventory of closed municipal solid waste landfill units located within the local planning area. The inventories shall include the exact boundaries of each former landfill unit or, if the exact boundaries are not known, the best approximation of each unit's boundaries. For each landfill unit for which the exact boundaries are not known, the inventories shall include a map showing the approximate boundaries of the former landfill unit. To the maximum extent practicable, such inventories shall list the current owners of the land on which the former landfill units were located and the current use of the land. For this requirement, local plans may substitute the applicable parts of the regional inventory required under subsection (a)(3)(O) of this section. This requirement does not apply until a regional inventory is incorporated into the applicable regional plan(s) and approved by the commissioners [ municipal solid waste landfill units, including landfill units no longer in operation. To the extent possible, such inventories shall list the location of such units, the current owners of the land on which the former landfill units were located, and the current use of the land. For this requirement, local plans may substitute the inventory of municipal solid waste landfill units required by subsection (a)(3)(O) of this section ].

(4)

(No change.)

§330.566.Procedures for Regional and Local Plan Submission , Approval, and Distribution [ and Approval ].

(a)-(h)

(No change.)

(i)

Upon approval of a regional plan by the commissioners, the regional planning commission shall provide a copy of the adopted plan, including the inventory of closed municipal solid waste landfill units, to the chief planning official of each municipality and county within the planning region. The regional planning commission and the chief planning officials shall make the adopted regional plan available for public inspection.

This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

Filed with the Office of the Secretary of State, on March 13, 2000.

TRD-200001906

Margaret Hoffman

Director, Environmental Law Division

Texas Natural Resource Conservation Commission

Proposed date of adoption: April 24, 2000

For further information, please call: (512) 239-4712


Chapter 335. INDUSTRIAL SOLID WASTE AND MUNICIPAL HAZARDOUS WASTE

The Texas Natural Resource Conservation Commission (TNRCC or commission) proposes the repeal of §§335.226-335.229, 335.361-335.367, and 335.404 and the readoption of the remaining sections of Chapter 335. The commission also proposes the review of the rules in Chapter 335 under Texas Government Code, §2001.039, and the General Appropriations Act, Article IX, §9 - 10.13, 76th Legislature, 1999. The proposed notice of review can be found in the Review of Agency Rules section of this issue of the Texas Register .

BACKGROUND AND SUMMARY OF THE FACTUAL BASIS FOR THE PROPOSED RULES

Chapter 335 is a recodification of rules which were initiated in 1970 with the adoption of regulations concerning industrial solid waste by the Texas Water Quality Board pursuant to the Texas Solid Waste Disposal Act, 61st Legislature, 1969. These initial rules established design criteria and permit requirements for commercial disposal operations, established the basic policy that waste generators are responsible for assuring that their waste is properly and safely disposed of, and established requirements for a certificate of registration whereby each noncommercial industrial solid waste facility's compliance status would be established and regularly reviewed.

Subsequent regulatory development came in 1975, when the Texas Water Quality Board revised its industrial solid waste regulations to establish uniform performance standards for all disposal operations. The 1975 amendments prohibited discharge of industrial solid waste to groundwater or surface water, prohibited the creation of any nuisance or public health problems, and prohibited disposal at unauthorized locations. Also, these amendments called for the development of technical guidelines outlining recommended technical standards for various methods of industrial solid waste storage and disposal and established shipping control requirements for a certain category of industrial solid waste.

The 65th Legislature, 1977, amended the Texas Solid Waste Disposal Act to require permits for all waste storage, processing, and disposal facilities which would manage waste identified as hazardous waste by the Administrator of the United States Environmental Protection Agency (EPA). Then, after the identification of hazardous waste by EPA in 1980, the Texas Department of Water Resources (TDWR) adopted rules implementing this statutory permit requirement. These rules also set forth hazardous industrial solid waste management requirements patterned after the hazardous waste regulations promulgated by the EPA. Subsequently, the TDWR made application and was granted authorization by the EPA under the Resource Conservation and Recovery Act (RCRA) to implement hazardous waste program elements in lieu of the EPA. Successor agencies to the TDWR, the Texas Water Commission and the TNRCC, have amended Chapter 335 over the intervening years to maintain this authorization under RCRA, and to address state regulatory concerns.

The commission has conducted a preliminary review of the rules under Chapter 335 and has determined that the reasons for adopting these rules continues to exist, with the exception of §335.226, relating to Standards for Burning Hazardous Waste in Commercial Combustion Facilities; §335.227, relating to Testing Requirements for Commercial Hazardous Waste Combustion Facilities; §335.228, relating to Monitoring and Recordkeeping Requirements for Commercial Hazardous Waste Combustion Facilities; §335.229, relating to Operating Requirements for Commercial Hazardous Waste Combustion Facilities; §335.361, relating to Definitions; §335.362, relating to Applicability; §335.363, relating to Permit Conditions; §335.364, relating to Representations in Application for Permit; §335.365, relating to Responsibility for Review of Air Quality Impacts from Existing, New, and Modified Facilities; §335.366, relating to General Air Emissions Requirements for Hazardous or Solid Waste Management Facilities; §335.367, relating to Specific Air Emissions Requirements for Hazardous or Solid Waste Management Facilities; and §335.404, relating to Interagency Coordination. With the aforementioned exceptions, these rules are needed to accomplish the purposes of Texas Health and Safety Code (THSC), Chapter 361, in accordance with THSC, §361.017(b), which states "The commission shall accomplish the purposes of this chapter by controlling all aspects of the management of industrial solid waste and hazardous municipal waste by all practical and economically feasible methods consistent with its powers and duties under this chapter and other law;" and in accordance with THSC, §361.024(a), which states "The commission may adopt rules consistent with this chapter and establish minimum standards of operation for the management and control of solid waste under this chapter."

SECTION BY SECTION DISCUSSION

Sections 335.226-335.229 are proposed for repeal because the reason for these rules no longer exists. These sections were originally adopted in the year 1991 as part of a joint rulemaking between the Texas Water Commission (TWC) and the Texas Air Control Board (TACB), and they contain the same requirements as 30 TAC §§111.124-111.129. The TWC and the TACB were consolidated into the Texas Natural Resource Conservation Commission, effective September 1, 1993, thus eliminating the need for two separate sets of rules covering the same requirements. Thus, §§335.226-335.229 are no longer needed.

Sections 335.361-335.367, which make up Subchapter L, relating to Control of Air Pollution from Hazardous Waste or Solid Waste Management Facilities, are also proposed for repeal because the reason for these rules no longer exists. These sections were adopted under THSC, §§361.070-361.077, which were repealed by Acts, 72nd Legislature, 1997, Chapter 3, §1.098(b), effective September 1, 1993. The sections proposed for repeal mandate that facilities obtain a single permit containing provisions regulating the solid waste aspects and the air emissions aspects of a hazardous waste facility. Subsequent to the repeal of the aforementioned THSC sections, an optional consolidated permit processing and hearing procedure was added to the Texas Water Code by the 75th Legislature, 1997, under Chapter 5, Subchapter J, relating to Consolidated Permit Processing, with an effective date of September 1, 1997. The commission has adopted rules under this statutory language in Chapter 33, relating to Consolidated Permit Processing. Therefore, Chapter 335, Subchapter L is no longer needed.

Finally, §335.404, relating to Interagency Coordination, is proposed for repeal because the reason for this rule no longer exists. This section is proposed for repeal because it is obsolete due to the fact that the commission and not the Texas Department of Health now regulates household hazardous waste, making the requirements of this section, regarding interagency coordination with the Texas Department of Health over household hazardous waste, no longer necessary or appropriate.

The commission's review of Chapter 335 has also revealed a number of inconsistencies and incorrect references and citations, which the commission intends to propose to correct in another rulemaking in the near future. For example, the statutory citations involving the Solid Waste Disposal Act are inconsistent throughout Chapter 335, which will be addressed in the future rulemaking. The commission also intends to propose to correct or delete the out-of-date references to the Texas Water Commission and the Texas Department of Health, and to correct rule references, where appropriate. The commission invites comments on corrections that could be considered in the aforementioned future rulemaking. Today's proposal is limited to the repeals and review discussed earlier in this preamble.

FISCAL NOTE

Bob Orozco, Technical Specialist with Strategic Planning and Appropriations, has determined for the first five-year period after the proposed repeal of certain portions of Chapter 335, Industrial Solid Waste and Municipal Hazardous Waste, there will be no significant adverse fiscal implications for the TNRCC and other units of state and local government as a result of the proposed repeals. The sections of Chapter 335 proposed for repeal are either redundant, no longer required, or no longer necessary.

The current sections of Chapter 335 relating to Standards for Burning Hazardous Waste in Commercial Combustion Facilities; Testing Requirements for Commercial Hazardous Waste Combustion Facilities; Monitoring and Recordkeeping Requirements for Commercial Hazardous Waste Combustion Facilities; and Operating Requirements for Commercial Hazardous Waste Combustion Facilities were originally adopted as part of a joint rulemaking between the TWC and the TACB. These requirements are currently contained in Chapter 111, Control of Air Pollution from Visible Emissions and Particulate Matter, are no longer needed in Chapter 335, and are proposed for repeal from Chapter 335.

Current Subchapter L specify that facilities obtain a single permit containing provisions regulating the solid waste aspects and the air emissions aspects of a hazardous waste facility. These requirements were repealed effective September 1, 1993 by the 72nd Legislature, 1991. Subsequent to the repeal of these requirements, an optional consolidated permit processing and hearing procedure was added to the Texas Water Code by the 75th Legislature, 1997, under Chapter 5, Subchapter J. The commission has adopted rules relating to this legislation in Chapter 33. The current Subchapter L of Chapter 335 is no longer needed and proposed for repeal.

The section of Chapter 335 relating to Interagency Coordination with the Texas Department of Health regarding the regulation of household hazardous waste was necessary when the Texas Department of Health regulated household hazardous waste. The TNRCC currently regulates household hazardous waste so interagency coordination with the Texas Department of Health on household hazardous waste is no longer necessary or appropriate. This portion of Chapter 335 is obsolete and proposed for repeal.

PUBLIC BENEFIT

Mr. Orozco has also determined for each year of the first five years after the repeals of the proposed sections to Chapter 335, the public benefit anticipated from the repeals will be the removal of redundant, outdated, or unnecessary rules promulgated under Chapter 335. No significant adverse fiscal implications are anticipated to any person or business as a result of repealing the proposed provisions of Chapter 335 of the rules. The proposed amendments do not add additional requirements to existing rules.

SMALL BUSINESS AND MICRO-BUSINESS ANALYSES

No significant adverse fiscal implications are anticipated to any individuals, small businesses, or micro-businesses as a result of repealing the proposed provisions of Chapter 335 of the rules. The repeals will eliminate redundant, outdated, or unnecessary rules promulgated under Chapter 335.

DRAFT REGULATORY IMPACT ANALYSIS

The commission has reviewed the proposed rulemaking in light of the regulatory analysis requirements of Texas Government Code, §2001.0225, and has determined that the rulemaking is not subject to §2001.0225 because it does not meet the definition of a "major environmental rule" as defined in that statute. "Major environmental rule" means a rule the specific intent of which is to protect the environment or reduce risks to human health from environmental exposure and that may adversely affect in a material way the economy, a sector of the economy, productivity, competition, jobs, the environment, or the public health and safety of the state or a sector of the state. Because the specific intent of the proposed rulemaking is to repeal redundant, outdated, or unnecessary rules promulgated under Chapter 335, and does not add regulatory requirements to existing rules, the rulemaking is not anticipated to have an adverse material affect on the economy, a sector of the economy, productivity, competition, jobs, the environment, or the public health and safety of the state or a sector of the state. In addition, §2001.0225 only applies to a major environmental rule, the result of which is to: 1) exceed a standard set by federal law, unless the rule is specifically required by state law; 2) exceed an express requirement of state law, unless the rule is specifically required by federal law; 3) exceed a requirement of a delegation agreement or contract between the state and an agency or representative of the federal government to implement a state and federal program or; 4) adopt a rule solely under the general powers of the agency instead of under a specific state law.

This rulemaking does not meet any of these four applicability requirements of a "major environmental rule." Specifically, the proposed repeals do not exceed a standard set by federal law, exceed an express requirement of state law, nor exceed a requirement of a delegation agreement. The repeals to certain provisions of Chapter 335 and readoption of the remaining provisions are not proposed solely under the general powers of the agency but specifically under Texas Health and Safety Code, §361.017 and §361.024, which authorize the commission to regulate industrial solid waste and municipal hazardous waste and to adopt rules consistent with the general intent and purposes of the Act. The commission invites public comment on the draft regulatory impact analysis.

TAKINGS IMPACT ASSESSMENT

The commission has prepared a takings impact assessment for this proposal under the Texas Government Code, §2007.043. The following is a summary of that assessment. The specific purpose of the proposed rulemaking is to review the rules in Chapter 335 and repeal each rule for which a reason no longer exists. The proposed rules would substantially advance this stated purpose by performing a review of the entire Chapter 335 and proposing the repeal of each rule for which a reason no longer exists, which in this case are those rules which are outdated or redundant. Promulgation and enforcement of these proposed rules would not affect private real property which is the subject of the rules because the proposed rulemaking would not add any regulatory requirements to existing rules. Since the rules that would be repealed are outdated or redundant, the proposed rules would not create a burden on private real property that is the subject of the regulation. The subject proposed regulations do not affect a landowner's rights in private real property because this rulemaking does not restrict or limit the owner's right to property that would otherwise exist in the absence of the proposed repeals. In other words, because these rules would merely repeal outdated or redundant requirements, they do not restrict the owner's right to property. Therefore, this action, which would not add any requirements, does not create a burden on private real property, and will not constitute a takings under the Texas Government Code, §2007.

COASTAL MANAGEMENT PROGRAM CONSISTENCY REVIEW

The commission has reviewed the proposed rulemaking for consistency with the Texas Coastal Management Program (CMP) goals and policies in accordance with the regulations of the Coastal Coordination Council and found that the proposed rules are not subject to the CMP because these rules would merely repeal outdated or redundant requirements, and they would not add any requirements. The commission invites public comment on the commission's finding that the proposed rules are not subject to the CMP.

SUBMITTAL OF COMMENTS

Comments may be submitted to Angela Slupe, Office of Environmental Policy, Analysis, and Assessment, MC 205, P.O. Box 13087, Austin, Texas 78711-3087 or faxed to (512) 239-4808. All comments should reference Rule Log Number 1999-076-335-WS. Comments must be received by 5:00 p.m., April 24, 2000. For further information or questions concerning this proposal, please contact Ray Henry Austin, Policy and Regulations Division, at (512) 239-6814.

Subchapter H. STANDARDS FOR THE MANAGEMENT OF SPECIFIC WASTES AND SPECIFIC TYPES OF FACILITIES

2. HAZARDOUS WASTE BURNED FOR ENERGY RECOVERY

30 TAC §§335.226 - 335.229

(Editor's note: The text of the following sections proposed for repeal will not be published. The sections may be examined in the offices of the Texas Natural Resource Conservation Commission or in the Texas Register office, Room 245, James Earl Rudder Building, 1019 Brazos Street, Austin.)

STATUTORY AUTHORITY

The repeals and readoption are proposed under Texas Water Code, §5.103 and §5.105, which provide the commission with the authority to adopt any rules necessary to carry out its powers and duties under the provisions of the Texas Water Code or other laws of this state; and under Texas Health and Safety Code, Solid Waste Disposal Act, §361.017 and §361.024, which authorize the commission to regulate industrial solid waste and municipal hazardous waste and to adopt rules consistent with the general intent and purposes of the Act. The review and consideration for readoption of the rules are authorized under the requirements of Texas Government Code, §2001.039, and the General Appropriations Act, Article IX, §9-10.13, 76th Legislature, 1999.

The proposed rule repeals implement Texas Government Code, Chapter 2001 and the General Appropriations Act, Article IX, §9-10.13.

§335.226. Standards for Burning Hazardous Waste in Commercial Combustion Facilities.

§335.227. Testing Requirements for Commercial Hazardous Waste Combustion Facilities.

§335.228. Monitoring and Recordkeeping Requirements for Commercial Hazardous Waste Combustion Facilities.

§335.229. Operating Requirements for Commercial Hazardous Waste Combustion Facilities.

This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

Filed with the Office of the Secretary of State, on March 13, 2000.

TRD-200001902

Margaret Hoffman

Director, Environmental Law Division

Texas Natural Resource Conservation Commission

Proposed date of adoption: April 24, 2000

For further information, please call: (512) 239-4712


Subchapter L. CONTROL OF AIR POLLUTION FROM HAZARDOUS WASTE OR SOLID WASTE MANAGEMENT FACILITIES

30 TAC §§335.361 - 335.367

(Editor's note: The text of the following sections proposed for repeal will not be published. The sections may be examined in the offices of the Texas Natural Resource Conservation Commission or in the Texas Register office, Room 245, James Earl Rudder Building, 1019 Brazos Street, Austin.)

STATUTORY AUTHORITY

The repeals and readoption are proposed under Texas Water Code, §5.103 and §5.105, which provide the commission with the authority to adopt any rules necessary to carry out its powers and duties under the provisions of the Texas Water Code or other laws of this state; and under Texas Health and Safety Code, Solid Waste Disposal Act, §361.017 and §361.024, which authorize the commission to regulate industrial solid waste and municipal hazardous waste and to adopt rules consistent with the general intent and purposes of the Act. The review and consideration for readoption of the rules are authorized under the requirements of Texas Government Code, §2001.039, and the General Appropriations Act, Article IX, §9-10.13, 76th Legislature, 1999.

The proposed rule repeals implement Texas Government Code, Chapter 2001 and the General Appropriations Act, Article IX, §9-10.13.

§335.361. Definitions.

§335.362. Applicability.

§335.363. Permit Conditions.

§335.364. Representations in Application for Permit.

§335.365. Responsibility for Review of Air Quality Impacts from Existing, New, and Modified Facilities.

§335.366. General Air Emissions Requirements for Hazardous or Solid Waste Management Facilities.

§335.367. Specific Air Emissions Requirements for Hazardous or Solid Waste Management Facilities.

This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

Filed with the Office of the Secretary of State, on March 13, 2000.

TRD-200001903

Margaret Hoffman

Director, Environmental Law Division

Texas Natural Resource Conservation Commission

Proposed date of adoption: April 24, 2000

For further information, please call: (512) 239-4712


Subchapter N. HOUSEHOLD MATERIALS WHICH COULD BE CLASSIFIED AS HAZARDOUS WASTE

30 TAC §335.404

(Editor's note: The text of the following section proposed for repeal will not be published. The section may be examined in the offices of the Texas Natural Resource Conservation Commission or in the Texas Register office, Room 245, James Earl Rudder Building, 1019 Brazos Street, Austin.)

STATUTORY AUTHORITY

The repeals and readoption are proposed under Texas Water Code, §5.103 and §5.105, which provide the commission with the authority to adopt any rules necessary to carry out its powers and duties under the provisions of the Texas Water Code or other laws of this state; and under Texas Health and Safety Code, Solid Waste Disposal Act, §361.017 and §361.024, which authorize the commission to regulate industrial solid waste and municipal hazardous waste and to adopt rules consistent with the general intent and purposes of the Act. The review and consideration for readoption of the rules are authorized under the requirements of Texas Government Code, §2001.039, and the General Appropriations Act, Article IX, §9-10.13, 76th Legislature, 1999.

The proposed rule repeals implement Texas Government Code, Chapter 2001 and the General Appropriations Act, Article IX, §9-10.13.

§335.404. Interagency Coordination.

This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

Filed with the Office of the Secretary of State, on March 13, 2000.

TRD-200001904

Margaret Hoffman

Director, Environmental Law Division

Texas Natural Resource Conservation Commission

Proposed date of adoption: April 24, 2000

For further information, please call: (512) 239-4712