TITLE 30.ENVIRONMENTAL QUALITY

Part 1. TEXAS COMMISSION ON ENVIRONMENTAL QUALITY

Chapter 11. CONTRACTS

Subchapter D. RESOLUTION OF CONTRACT CLAIMS

30 TAC §§11.103 - 11.105, 11.108

The Texas Commission on Environmental Quality (commission) proposes amendments to §§11.103 - 11.05 and 11.108.

BACKGROUND AND SUMMARY OF THE FACTUAL BASIS FOR THE PROPOSED RULES

House Bill (HB) 1940, 79th Legislature, 2005, amended Texas Government Code, §2260.051(d), Claim for Breach of Contract; Notice, and §2260.052(a), Negotiation, by reducing the amount of time by which units of state government must file a counterclaim against a contractor from 90 days to 60 days after receiving notice of the claim from the contractor, and modifying the time by which units of state government must enter into negotiations with the contractor to 120 days after the date the claim is received.

The purpose of the proposed rulemaking is to amend Chapter 11 to implement HB 1940. Additionally, the commission proposes the amendments to §11.103 and §11.108 to conform to Texas Register requirements.

SECTION BY SECTION DISCUSSION

The proposed amendment to §11.103, Other Rules and Statutes, corrects the section title of a reference to conform to Texas Register requirements.

The proposed amendment to §11.104, Filing Notice of Claim for Breach of Contract; Counterclaim, changes the time in which the executive director must file a counterclaim from 90 days to 60 days after receiving the notice of claim from the contractor. At the time of the adoption of the rule on August 20, 2000, a unit of state government had 90 days after receiving the notice of claim in which to file a counterclaim. The proposed amendment to §11.104 would also spell out the acronym "OLS" to conform to Texas Register requirements.

The proposed amendment to §11.105, Negotiation, deletes the language that states that the executive director, upon receiving the claim, shall provide the contractor a reasonable opportunity to meet and negotiate the claim. The proposed amendment to §11.105 also specifies that the executive director must begin negotiations within 120 days after receiving notice of the claim by the contractor.

The proposed amendment to §11.108, Request for Hearing, would spell out the acronyms "SOAH" and "OLS" to conform to Texas Register requirements.

FISCAL NOTE: COSTS TO STATE AND LOCAL GOVERNMENT

Walter Perry, Analyst, Strategic Planning and Assessment Section, determined that for the first five-year period the proposed amendments are in effect, no significant fiscal implications are anticipated for the commission or other units of state or local government.

The proposed rules implement HB 1940, which amended Texas Government Code, Chapter 2260. The bill addresses the resolution of certain contract claims against the state. The proposed rulemaking would reduce the time by which the commission must file a counterclaim from 90 days to 60 days after receiving notice of the claim from the contractor. The commission would also be required to enter into negotiations with a contractor within 120 days after receiving notice of the claim by the contractor. These proposed changes are not anticipated to have significant fiscal implications for the commission.

The proposed rules are specific to anyone who directly enters into a contract with the commission. Units of local government who enter into a contract directly with a unit of state government would be subject to the proposed rules and as such may benefit from the reduced time frame to resolve claims, though cost savings, if any, are not expected to be significant.

PUBLIC BENEFITS AND COSTS

Mr. Perry also determined that for each year of the first five years the proposed rules are in effect, the public benefit anticipated from the changes seen in the proposed rules will be compliance with state law.

The proposed rulemaking would reduce the time by which the commission must file a counterclaim from 90 days to 60 days after receiving notice of the claim from the contractor. The commission would also be required to enter into negotiations with a contractor within 120 days after receiving notice of the claim by the contractor.

No significant fiscal implications are anticipated for businesses and individuals as a result of the proposed rules. The proposed rules would reduce the time frame for the resolution of claims against a unit of state government.

SMALL BUSINESS AND MICRO-BUSINESS ASSESSMENT

No adverse fiscal implications are anticipated for small or micro-businesses as a result of the proposed rulemaking. Small and micro-businesses would experience the same benefits as larger businesses.

LOCAL EMPLOYMENT IMPACT STATEMENT

The commission reviewed this proposed rulemaking and determined that a local employment impact statement is not required because the proposed rules do not adversely affect a local economy in a material way for the first five years that the proposed rules are in effect.

DRAFT REGULATORY IMPACT ANALYSIS DETERMINATION

The commission reviewed the proposed rulemaking in light of the regulatory analysis requirements of Texas Government Code, §2001.0225, and determined that the proposed rulemaking is not subject to §2001.0225 because it does not meet the definition of a "major environmental rule" as defined in the act. The intent of the proposed rulemaking is to reduce the time in which a unit of state government must file a counterclaim against a contractor and the time in which to enter negotiations. The commission invites public comment on the draft regulatory impact analysis determination.

TAKINGS IMPACT ASSESSMENT

The commission evaluated these proposed rules and performed an assessment of whether these proposed rules constitute a takings under Texas Government Code, Chapter 2007. The specific purpose of these proposed rules is to provide the time frame in which units of government must file a counterclaim against a contractor and enter into negotiations to resolve certain contract claims. The proposed rules will substantially advance this stated purpose.

Promulgation and enforcement of these proposed rules would be neither a statutory nor a constitutional taking of private real property. Specifically, the subject proposed regulations do not affect a landowner’s rights in private real property because this rulemaking does not burden (constitutionally); nor restrict or limit the owner’s right to property and reduce its value by 25% or more beyond that which would otherwise exist in the absence of the regulations. In other words, these proposed rules affect the time frame in which units of state government must file a counterclaim and enter into negotiations in order to resolve certain contract claims. There are no burdens imposed on private real property, and the benefits to society are the efficient resolution of contract claims against a unit of state government.

CONSISTENCY WITH THE COASTAL MANAGEMENT PROGRAM

The commission reviewed the proposed rules and found that they are neither identified in Coastal Coordination Act Implementation Rules, 31 TAC §505.11(b)(2) or (4), nor will they affect any action/authorization identified in Coastal Coordination Act Implementation Rules, 31 TAC §505.11(a)(6). Therefore, the proposed rules are not subject to the Texas Coastal Management Program.

SUBMITTAL OF COMMENTS

Comments may be submitted to Patricia Durón, MC 205, Texas Register Team, Office of Legal Services, Texas Commission on Environmental Quality, P.O. Box 13087, Austin, Texas 78711-13087, or faxed to (512) 239-4808. All comments should reference Rule Project Number 2005-071-011-LS. Comments must be received by 5:00 p.m., April 10, 2006. For further information, please contact Evelyn Njuguna, General Law Division, (512) 239-0688.

STATUTORY AUTHORITY

The amendments are proposed under the Texas Water Code, §5.103, Rules, which provides the commission with the authority to adopt rules necessary to carry out its power and duties under the Texas Water Code and any other laws of the State of Texas, and the Texas Government Code, §2260.052(c), Negotiation, which gives each unit of state government with rulemaking authority the authority to develop rules to govern the negotiation and mediation of a claim.

The proposed amendments implement Texas Government Code, §2260.051(d), Claim for Breach of Contract; Notice, and §2260.052(a), Negotiation.

§11.103.Other Rules and Statutes.

The requirements of the following statutes and rules also apply to claims filed under this subchapter:

(1) (No change.)

(2) Section 1.10 and §1.11 of this title ( relating to [ regarding ] Document Filing Procedures; and Service on Judge, Parties, and Interested Persons ) except §1.11(a) of this title .

§11.104.Filing Notice of Claim for Breach of Contract; Counterclaim.

A contractor asserting a claim that the agency has breached a contract must file a notice of claim as follows.

(1) - (2) (No change.)

(3) Copies of the written notice of claim and all other documents filed with the chief clerk must be served on the executive director and the deputy director of Office of Legal Services [ OLS ] no later than the day of filing.

(4) The executive director shall file any appropriate counterclaim with the chief clerk within 60 [ 90 ] days after the filing of the notice of claim and provide a copy to the contractor.

§11.105.Negotiation.

(a) (No change.)

(b) The executive director shall initiate negotiations with the contractor within 120 days after receiving the notice of claim [ Upon receiving a notice of claim, the executive director shall provide the contractor a reasonable opportunity to meet and negotiate the claim ].

(c) (No change.)

§11.108.Request for Hearing.

(a) A contractor may request a contested case hearing before the State Office of Administrative Hearings (SOAH) [ state SOAH ] of any unsettled portion of the claim.

(b) - (c) (No change.)

(d) A contractor must serve copies of the request for hearing on the executive director and the deputy director of Office of Legal Services [ OLS ] no later than the day of filing.

(e) After a contractor files the request for hearing, the chief clerk shall refer the entire file on the claim and counterclaim to [ the ] SOAH for a contested case hearing under Texas Government Code, Chapter 2001, as to the issues raised in the request for hearing. Referral of a request for hearing to SOAH does not constitute waiver by the commission of statutory or regulatory requirements for the notice of claim, the claim or the request for hearing.

(f) - (g) (No change.)

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 February 24, 2006.

TRD-200600997

Kevin McCalla

Director, General Law Division

Texas Commission on Environmental Quality

Earliest possible date of adoption: April 9, 2006

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


Chapter 35. EMERGENCY AND TEMPORARY ORDERS AND PERMITS; TEMPORARY SUSPENSION OR AMENDMENT OF PERMIT CONDITIONS

Subchapter K. AIR ORDERS

30 TAC §§35.801, 35.802, 35.804, 35.805, 35.807, 35.808

The Texas Commission on Environmental Quality (commission) proposes amendments to §§35.801, 35.802, 35.804, 35.805, 35.807, and 35.808.

The amended sections will be submitted to the United States Environmental Protection Agency as a revision to the state implementation plan.

BACKGROUND AND SUMMARY OF THE FACTUAL BASIS FOR THE PROPOSED RULES

House Bill (HB) 2949, 79th Legislature, 2005, amended Texas Water Code (TWC), §5.515, to allow for authorization of emergency orders to repair or replace roads, bridges, or other infrastructure improvements involving public works projects destroyed during a catastrophe. The TWC previously only authorized emergency orders to allow repair of a facility or control equipment. Amended TWC, §5.515 adds language regarding the contents of the application for an emergency order. The required language in the application pertaining to the reason for allowing the construction and emissions was expanded to include preventing a "loss of a critical transportation thoroughfare." The purpose of this rulemaking is to reflect these changes in Subchapter K of this chapter. Because the statute is self-implementing, an emergency order could currently be issued for one of the previously described instances prior to the adoption of these proposed rules.

The proposed rules would add language authorizing emergency orders to include repair or replacement of roads, bridges, or other infrastructure improvements to the list of actions that can be authorized by an emergency order. Additionally, the proposed rules would authorize an applicant to list loss of a critical transportation thoroughfare as a reason why the construction and emissions are essential. As a point of clarification, it is noted that the issuance of an emergency order, under the proposed rules, to a rock crusher or concrete batch plant that performs wet batching, dry batching, or central mixing will not be prohibited under TWC, §5.5145, or subject to penalty under TWC, §7.052(b), because the facility is considered to be operating under a temporary permit as provided in TWC, §5.501(a)(2)(A).

SECTION BY SECTION DISCUSSION

The commission proposes administrative changes throughout the rules to conform with Texas Register requirements and agency guidelines.

The proposed amendment to §35.801, Emergency Orders Because of Catastrophe, adds roads, bridges, or other infrastructure to the list of repairs or replacements for which the commission may authorize immediate action. The commission also proposes to revise the definition of catastrophe by replacing the word "operator" with the word "applicant" and by adding the language "or a road, bridge, or other infrastructure."

The proposed amendment to §35.802, Application of an Emergency Order, adds language, in paragraphs (1) and (5), allowing an applicant to state that the proposed construction and emissions are essential to prevent the loss of a critical transportation thoroughfare, and that the construction and emissions are necessary for the repair or replacement of roads, bridges, or other infrastructure to the list of possible statements in an application for an emergency order of why the construction and emissions are necessary. In describing the limitations on the proposed construction and emissions, the applicant may cite the public works project as the specific basis for the emergency authorization.

The proposed amendment to §35.804, Issuance of Order, adds language, in paragraph (1), allowing the commission to issue an order under this subchapter if it is found that the proposed construction and emissions are essential to prevent the loss of a critical transportation thoroughfare, and that the construction and emissions are necessary for the repair or replacement of roads, bridges, or other infrastructure to the list of possible reasons that would allow the commission to issue an emergency order. Proposed new §35.804(5)(C), adds public works projects needed to rebuild or repair damaged roads, bridges, or other infrastructure destroyed during a catastrophe to the list of limitations of the proposed construction and emissions.

The proposed amendment to §35.805, Contents of an Emergency Order, adds in paragraph (3), public works projects needed to rebuild or repair damaged roads, bridges, or other infrastructure destroyed during a catastrophe to the list of limitations of the proposed construction and emissions.

The proposed amendment to §35.807, Affirmation of an Emergency Order, adds language, in paragraph (1), allowing the commission to affirm a proposed or issued order under this subchapter if the applicant shows that the proposed construction and emissions are essential to prevent the loss of a critical transportation thoroughfare, and that the construction and emissions are necessary for the repair or replacement of roads, bridges, or other infrastructure to the list of possible reasons that would allow the commission to issue an emergency order. Proposed new §35.807(5)(C) adds public works projects needed to rebuild or repair damaged roads, bridges, or other infrastructure destroyed during a catastrophe to the list of limitations of the proposed construction and emissions.

The proposed amendment to §35.808, Modification of an Emergency Order, adds language, in paragraph (1), allowing the commission to modify a proposed or issued order under this subchapter if the applicant shows that the proposed construction and emissions are essential to prevent the loss of a critical transportation thoroughfare, and that the construction and emissions are necessary for the repair or replacement of roads, bridges, or other infrastructure.

FISCAL NOTE: COSTS TO STATE AND LOCAL GOVERNMENT

Jeff Horvath, Analyst, Strategic Planning and Assessment Section, determined that for the first five-year period the proposed rules are in effect, no fiscal implications are anticipated for the agency or any other unit of state or local government.

The proposed rules allow for the authorization of emergency orders to repair or replace roads, bridges, or other infrastructure improvements involving public works projects destroyed during a catastrophe. The rulemaking is consistent with HB 2949. The TWC previously only authorized emergency orders to allow the repair of a facility or control equipment. The proposed rules would add language authorizing emergency orders for the repair or replacement of roads, bridges, or other infrastructure improvements. Additionally, the proposed rules would authorize an applicant to list loss of a critical thoroughfare as a reason why the proposed construction and emissions are essential.

In general, the proposed rules are expected to affect rock crushers and concrete batch plants in that the proposed emergency order could authorize any air emissions or other activities necessary to repair or replace infrastructure in the event of a catastrophic event. No costs are anticipated for the agency to implement the proposed rules, and no fiscal implications are anticipated for other units of state or local government due to the enforcement or administration of the proposed rules.

PUBLIC BENEFITS AND COSTS

Mr. Horvath also determined that for each year of the first five years the proposed rules are in effect, the public benefit anticipated from the changes seen in the proposed rules will be compliance with state law, and the expedited rebuilding or repair of critical infrastructure in the event of a catastrophe. The proposed rules would authorize emergency orders that previously would not have been allowed under commission rules. Allowing another category of emergency orders would permit industry to respond more quickly to catastrophes that affect major infrastructure. The emergency order could authorize any air emissions or other activities from rock crushers and concrete batch plants to repair or replace any necessary infrastructure. Because the amended statute is self-implementing, an emergency order could currently be issued prior to the adoption of these proposed rules. No fiscal implications are anticipated for businesses or industry due to the implementation of the proposed rules.

SMALL BUSINESS AND MICRO-BUSINESS ASSESSMENT

No adverse fiscal implications are anticipated for small or micro-businesses that own or operate rock crushers or concrete batch plants. The proposed rules would authorize emergency orders that previously would not have been allowed under commission rules and are expected to permit industry to respond more quickly to catastrophes that affect major infrastructure.

LOCAL EMPLOYMENT IMPACT STATEMENT

The commission reviewed this proposed rulemaking and determined that a local employment impact statement is not required because the proposed rules do not adversely affect a local economy in a material way for the first five years that the proposed rules are in effect.

DRAFT REGULATORY IMPACT ANALYSIS DETERMINATION

The commission reviewed the proposed rulemaking in light of the regulatory analysis requirements of Texas Government Code, §2001.0225, and 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. A "major environmental rule" means a rule, the specific intent of which, is to protect the environment or reduce risks to human health from 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 commission has determined that the proposed rulemaking does not fall under the definition of a "major environmental rule" because none of the proposed rules mandate new requirements for the regulated community. Rather, the proposed rules are intended to reflect the statutory changes made to TWC, §5.515, by HB 2949.

Furthermore, the proposed rulemaking does not meet any of the four applicability requirements listed in Texas Government Code, §2001.0225(a). Texas Government Code, §2001.0225(a), 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 because this rulemaking: 1) does not exceed any standard set by federal law; 2) does not exceed the requirements of state law under TWC, Chapter 5, Subchapter L; 3) does not exceed a requirement of a delegation agreement or contract between the state and an agency or representative of the federal government to implement any state and federal program; and 4) is not proposed solely under the general powers of the agency, but rather specifically under TWC, §5.515.

TAKINGS IMPACT ASSESSMENT

The commission evaluated these proposed rules and performed an assessment of whether these proposed rules constitute a takings under Texas Government Code, Chapter 2007. The specific purpose of the rules is to incorporate into commission rules the changes made to TWC, §5.515, by the Texas Legislature by adding language to authorize emergency orders in the event of a catastrophe to include the repair or replacement of roads, bridges, or other infrastructure.

Promulgation and enforcement of the proposed amendments would constitute neither a statutory nor a constitutional taking of private real property. There are no burdens imposed on private real property under this rulemaking because the proposed amendments neither relate to, nor have any impact on, the use or enjoyment of private real property, and there would be no reduction in value of property as a result of this rulemaking. None of the proposed rules mandate any new requirements, but rather, provide for a specific type of authorization.

CONSISTENCY WITH THE COASTAL MANAGEMENT PROGRAM

The commission reviewed the proposed rulemaking and found that the proposal is a rulemaking identified in the Coastal Coordination Act Implementation Rules, 31 TAC §505.11(b)(2), relating to rules subject to the Coastal Management Program, and will, therefore, require that goals and policies of the Texas Coastal Management Program (CMP) be considered during the rulemaking process.

The CMP goal applicable to the proposed rules is the goal to protect, preserve, restore, and enhance the diversity, quality, quantity, functions, and values of coastal natural resource areas. CMP policies applicable to the proposed rules include the administrative policies and the policies for specific activities related to the emission of air pollutants. Promulgation and enforcement of these proposed rules is consistent with the applicable CMP goals and policies because the proposed rules will establish clear and consistent requirements governing the issuance of emergency and temporary orders for the repair or replacement of roads, bridges, or other infrastructure when necessitated by a catastrophe, as authorized by TWC, Chapter 5, Subchapter L. Under the authority granted by statute, the commission may issue emergency or temporary orders to address unforeseen circumstances such as potential catastrophes. Promulgation and enforcement of these rules will not violate or exceed any standards identified in the applicable CMP goals and policies because they will allow the commission to take steps to mitigate emergency or potential emergency situations, which will result in environmental benefits for the entire state, including coastal areas.

ANNOUNCEMENT OF HEARING

The commission will hold a public hearing on this proposal in Austin on April 4, 2006, at 10:00 a.m. in Building B, Room 201A, at the commission's central office located at 12100 Park 35 Circle. 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 be permitted during the hearing; however, a staff member will be available to discuss the proposal 30 minutes before the hearing and will answer questions before and after the hearing.

Persons who have special communication or other accommodation needs who are planning to attend the hearing should contact Lola Brown, Office of Legal Services at (512) 239-0348. Requests should be made as far in advance as possible.

SUBMITTAL OF COMMENTS

Comments may be submitted to Lola Brown, Texas Register Team, Office of Legal Services, MC 205, Texas Commission on Environmental Quality, P.O. Box 13087, Austin, Texas 78711-3087, or faxed to (512) 239-4808. Copies of the proposed rulemaking can be obtained from the commission's Web site at http://www.tceq.state.tx.us/nav/rules/propose_adopt.html . All comments should reference Rule Project Number 2005-070-035-LS. Comments must be received by 5:00 p.m., April 10, 2006. For further information, please contact Les Trobman, Environmental Law Division, (512) 239-6056.

STATUTORY AUTHORITY

These amendments are proposed under TWC, §5.102, which establishes the commission's general authority necessary to carry out its jurisdiction; §5.103, which establishes the commission's general authority to adopt rules to carry out its duties under the TWC and the other laws of the state; §5.105, which establishes the commission's authority to set policy by rule; and §5.515, which allows the commission to issue emergency orders for immediate action for the addition, replacement, or repair of facilities or control equipment, or the repair or replacement of roads, bridges, or other infrastructure, and authorizing associated emissions of air contaminants, whenever a catastrophe necessitates such construction and emissions otherwise precluded under the Texas Clean Air Act (TCAA).

The proposed amendments implement changes made by the Texas Legislature to TWC, §5.515.

§35.801.Emergency Orders Because of Catastrophe.

The commission or executive director may issue emergency orders under Texas Water Code, §5.515, to authorize immediate action for the addition, replacement, or repair of facilities or control equipment, or the repair or replacement of roads, bridges, or other infrastructure, and authorizing associated emissions of air contaminants, whenever a catastrophe necessitates such construction and emissions otherwise precluded under the Texas Clean Air Act [ TCAA ]. For purposes of this section, a catastrophe is an unforeseen event including, but not limited to, an act of God, an act of war, severe weather conditions, explosions, fire, or other similar occurrences beyond the reasonable control of the applicant [ operator ], which renders a facility or its functionally related appurtenances , or a road, bridge, or other infrastructure, inoperable.

§35.802.Application for an Emergency Order.

The owner or operator of a facility, as that term is defined in Texas Health and Safety Code, §382.003, desiring to obtain an order under this subchapter shall submit an application in accordance with §35.24 of this title (relating to Application for Emergency or Temporary Order). The application must contain the information required by that section and the following:

(1) a statement that the proposed construction and emissions are essential to prevent loss of life, serious injury, severe property damage, loss of a critical transportation thoroughfare, or severe economic loss not attributable to the applicant's actions, and are necessary for the addition, replacement, or repair of facilities or control equipment , or repair or replacement of roads, bridges, or other infrastructure, necessitated by a catastrophe;

(2) - (4) (No change.)

(5) a statement that the proposed construction and emissions will occur only :

(A) on [ at ] the property where the catastrophe occurred ;

(B) [ or ] on other property owned by the owner or operator of the damaged facility, which produces the same intermediates, products, or by-products, provided [ providing ] that no more than a de minimus [ de minimis ] increase will occur in the predicted concentration of the air contaminants at or beyond the property line at such other property; or

(C) for public works projects needed to rebuild or repair damaged roads, bridges, or other infrastructure destroyed during a catastrophe;

(6) - (10) (No change.)

§35.804.Issuance of Order.

The commission or executive director may issue an order under this subchapter if it is found that:

(1) the proposed construction and emissions are essential to prevent loss of life, serious injury, severe property damage, loss of a critical transportation thoroughfare, or severe economic loss not attributable to the applicant's actions and are necessary for the addition, replacement, or repair of facilities or control equipment , or repair or replacement of roads, bridges, or other infrastructure, that is necessitated by a catastrophe;

(2) - (4) (No change.)

(5) the proposed construction or emissions will occur only:

(A) on [ at ] property where the catastrophe occurred; [ or ]

(B) on [ at ] other property owned by the owner or operator of the damaged facility , which produces the same intermediates, products, or by-products, provided that [ so long as there will be ] no more than a de minimus [ de minimis ] increase will occur in the predicted concentration of the air contaminants at or beyond the property line at such other property; or

(C) for public works projects needed to rebuild or repair damaged roads, bridges, or other infrastructure destroyed during a catastrophe;

(6) - (7) (No change.)

§35.805.Contents of an Emergency Order.

In addition to the requirements of §35.26 of this title (relating to Contents of Emergency or Temporary Order), an emergency order issued under this subchapter shall contain at least the following:

(1) - (2) (No change.)

(3) authorization for action only :

(A) on [ at ] the property where the catastrophe occurred ;

(B) [ or ] on other property owned by the owner or operator of the damaged facility, which [ also ] produces the same intermediates, products, or by-products, provided that [ there will be ] no more than a de minimus [ de minimis ] increase will occur in the predicted concentration of the air contaminants at or beyond the property line at such other property; or

(C) for public works projects needed to rebuild or repair damaged roads, bridges, or other infrastructure destroyed during a catastrophe;

(4) (No change.)

(5) a schedule for submission of a complete construction permit application under provisions of Texas Clean Air Act [ TCAA ], Chapter 382 [ §382.0518 ].

§35.807.Affirmation of an Emergency Order.

The commission shall affirm a proposed or issued order if the applicant shows at the hearing, by a preponderance of the evidence, that:

(1) the proposed construction and emissions are essential to prevent loss of life, serious injury, severe property damage, loss of a critical transportation thoroughfare, or severe economic loss not attributable to the applicant's actions and are necessary for the addition, replacement, or repair of facilities or control equipment , or repair or replacement of roads, bridges, or other infrastructure, that is necessitated by a catastrophe;

(2) - (4) (No change.)

(5) the proposed construction or emissions will occur only:

(A) on [ at ] property where the catastrophe occurred; [ or ]

(B) on [ at ] other property owned by the owner or operator of the damaged facility , which produces the same intermediates, products, or by-products, provided that [ so long as there will be ] no more than a de minimus [ de minimis ] increase will occur in the predicted concentration of the air contaminants at or beyond the property line at such other property; or

(C) for public works projects needed to rebuild or repair damaged roads, bridges, or other infrastructure destroyed during the catastrophe;

(6) - (7) (No change.)

§35.808.Modification of an Emergency Order.

The commission shall modify a proposed or issued order if the hearing record shows that:

(1) construction and emissions otherwise precluded under the Texas Clean Air Act [ TCAA ] are essential to prevent loss of life, serious injury, severe property damage, loss of a critical transportation thoroughfare, or severe economic loss not attributable to the applicant's actions and are necessary for the addition, replacement, or repair of facilities or control equipment , or repair or replacement of roads, bridges, or other infrastructure, that is necessitated by a catastrophe;

(2) - (3) (No change.)

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 February 24, 2006.

TRD-200600972

Stephanie Bergeron Perdue

Acting Deputy Director, Office of Legal Services

Texas Commission on Environmental Quality

Earliest possible date of adoption: April 9, 2006

For further information, please call: (512) 239-0348


Chapter 291. UTILITY REGULATIONS

Subchapter J. ENFORCEMENT, SUPERVISION, AND RECEIVERSHIP

30 TAC §291.146

The Texas Commission on Environmental Quality (commission or TCEQ) proposes new §291.146.

BACKGROUND AND SUMMARY OF THE FACTUAL BASIS FOR THE PROPOSED RULE

The 79th Legislature, 2005, passed House Bill (HB) 841, which relates to municipally owned utilities that provide nonsubmetered master metered utility service to recreational vehicle parks. HB 841 amended Texas Water Code (TWC), §13.087, by defining "nonsubmetered master metered utility service" and by requiring municipally owned utilities to determine rates charged to recreational parks in the same manner as they do for other commercial businesses that serve transient customers.

This bill requires the commission to incorporate into the agency's rules the definition of "nonsubmetered utility service" and to review complaints received by recreational vehicle parks. This bill also gives the commission the authority to take enforcement action against a municipally owned utility that charges a higher rate to a recreational vehicle park than to a commercial customer.

SECTION DISCUSSION

The commission proposes to add new §291.146, Municipal Rates for Certain Recreational Vehicle Parks, to implement TWC, §13.087, as amended by the 79th Legislature. This proposed new section defines "nonsubmetered master metered utility service" as potable water service that is master metered but not submetered and wasterwater service that is based on master metered potable water service. The proposed new section gives the commission enforcement authority over municipally owned utilities that do not determine rates charged to recreational parks in the same manner as they do for other commercial businesses that serve transient customers.

FISCAL NOTE: COSTS TO STATE AND LOCAL GOVERNMENT

Walter Perry, Analyst, Strategic Planning and Assessment Section, determined that, for the first five-year period the proposed rule is in effect, no significant fiscal implications are anticipated for the agency or other units of state or local government.

The proposed rule implements HB 841, 79th Legislature, which requires all municipally owned utilities that provide nonsubmetered master metered utility service to recreational vehicle parks to determine their rates for recreational vehicle parks in the same manner used for other commercial businesses that serve transient customers. The rulemaking would grant jurisdiction to the agency to take enforcement action against a municipally owned utility that charges a higher rate to a recreational vehicle park than to similar commercial customers. The rulemaking defines nonsubmetered utility service as potable water service that is master metered but not submetered and wastewater service that is based on master metered potable water service.

The rulemaking would not affect agency revenues or costs. The agency would be required to review complaints received from recreational vehicle parks and take any necessary enforcement action. Any additional costs for the agency to review complaints or take enforcement action would be absorbed using current agency resources. Other units of state government are not expected to be affected by the proposed rule as they do not own or operate municipal water utilities. Local governments that own their own municipal water utilities would be prevented from charging recreational vehicle parks rates that are different from similar businesses. Of the estimated 1,920 cities in Texas, approximately 962 have a municipally owned utility. Any reduction in revenue for the utilities is not projected to be significant. Any reduction in revenue would be dependent upon the level of water consumption and the current disparity between rates charged for the recreational vehicle parks and similar businesses that serve transient customers. It is unknown how many recreational vehicle parks are located in areas serviced by municipal water utilities.

PUBLIC BENEFITS AND COSTS

Mr. Perry also determined that for each year of the first five years the proposed new rule is in effect, the public benefit anticipated from the changes seen in the proposed rule will be billing rate protection for recreational vehicle parks serviced by municipal water utilities. The commission would be granted enforcement authority to ensure that recreational vehicle parks are billed at the same rates as similar businesses that serve transient customers.

The proposed rule implements HB 841, 79th Legislature, which requires all municipally owned utilities that provide nonsubmetered master metered utility service to recreational vehicle parks to determine their rates for recreational vehicle parks in the same manner used for other commercial businesses that serve transient customers. The rulemaking would grant jurisdiction to the agency to take enforcement action against a municipally owned utility that charges a higher rate to a recreational vehicle park than to similar commercial customers. The rulemaking defines nonsubmetered utility service as potable water service that is master metered but not submetered and wastewater service that is based on master metered potable water service.

The proposed rule is expected to result in cost savings for any recreational vehicle park serviced by a municipally owned water utility. Of the estimated 1,920 cities in Texas, approximately 962 have a municipally owned utility. It is unknown how many recreational vehicle parks are located in areas serviced by municipal water utilities. It is projected that the rulemaking would protect the recreational vehicle parks from being charged rates that are higher than other similar businesses and could result in financial savings for the affected recreational vehicle parks. Any savings realized would be dependent upon consumption and the current disparity between rates charged for the recreational vehicle parks and similar businesses that serve transient customers.

SMALL BUSINESS AND MICRO-BUSINESS ASSESSMENT

No adverse fiscal implications are anticipated for small or micro-businesses as a result of the proposed rulemaking. The proposed rulemaking would result in no additional costs for small and micro-businesses. Small and micro-businesses would experience the same potential cost savings as industry. It is believed that the majority of businesses that own and operate recreational vehicle parks and would be affected by the rulemaking are small and micro-businesses.

LOCAL EMPLOYMENT IMPACT STATEMENT

The commission reviewed this proposed rulemaking and determined that a local employment impact statement is not required because the proposed rule does not adversely affect a local economy in a material way for the first five years that the proposed rule is in effect.

DRAFT REGULATORY IMPACT ANALYSIS DETERMINATION

The commission reviewed the proposed rulemaking in light of the regulatory analysis requirements of Texas Government Code, §2001.0225, and determined that the rulemaking is not subject to §2001.0225 because it does not meet the criteria for a "major environmental rule" as defined in that statute. A "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.

This proposal does not qualify as a major environmental rule because it does not have as its specific intent the protection of the environment or the reduction of risk to human health from environmental exposure. The specific purpose of this rulemaking is to amend the commission rules in Chapter 291 to incorporate the requirements of HB 841 from the 79th Legislature, related to the rates charged by a municipally owned utility to certain recreational vehicle parks for potable water or wastewater service. The proposed rule incorporates the requirement in HB 841 that a municipally owned utility determine the rates for nonsubmetered master metered utility service to a recreational vehicle park on the same basis the utility uses to determine the rates for other commercial businesses. The requirements of HB 841 relate to the utility rates charged by a municipally owned utility and are not related to environmental protection or the reduction of risk to human health.

Furthermore, even if the proposed rulemaking did meet the definition of a major environmental rule, it is not subject to Texas Government Code, §2001.0225, because it does not meet any of the four applicable requirements specified in §2001.0225(a). Specifically, the proposed rule does not: 1) exceed a standard set by federal law; 2) exceed an express requirement of state 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.

The commission invites public comment on the draft regulatory analysis determination.

TAKINGS IMPACT ASSESSMENT

The commission evaluated the proposed rule and performed an assessment of whether the proposed rule constitutes a takings under Texas Government Code, Chapter 2007. The specific purpose of this rulemaking is to amend the commission rules in Chapter 291 to incorporate the requirements of HB 841 from the 79th Legislature, related to the rates charged by a municipally owned utility to certain recreational vehicle parks for potable water or wastewater service. The proposed rule would substantially advance this stated purpose by incorporating the requirements of HB 841 related to municipal utility rates into the commission rules. There are no burdens imposed on private real property by the enactment of the rule because the rule addresses municipal utility rates and does not affect private real property. Therefore, the proposed rule does not constitute a takings under Texas Government Code, Chapter 2007.

The commission invites public comment on this preliminary takings impact assessment.

CONSISTENCY WITH THE COASTAL MANAGEMENT PROGRAM

The commission reviewed the proposed rule and found that it is neither identified in Coastal Coordination Act Implementation Rules, 31 TAC §505.11(b)(2) or (4), nor will it affect any action/authorization identified in Coastal Coordination Act Implementation Rules, 31 TAC §505.11(a)(6). Therefore, the proposed rule is not subject to the Texas Coastal Management Program.

SUBMITTAL OF COMMENTS

Comments may be submitted to Holly Vierk, MC 205, Office of Legal Services, Texas Commission on Environmental Quality, P.O. Box 13087, Austin, Texas 78711-3087, or faxed to (512) 239-4808. All comments should reference Rule Project Number 2005-059-291-PR. Comments must be received by 5:00 p.m., April 10, 2006. For further information, please contact Lisa Mejia, Utilities & Districts Section, (512) 239-6117.

STATUTORY AUTHORITY

The new section is proposed under TWC, §5.102, which provides the commission the general powers to carry out duties under TWC; and §5.103, which provides the commission with the authority to adopt any rules necessary to carry out the powers and duties under the provisions of the TWC and other laws of this state. In addition, TWC, §13.041, states that the commission may regulate and supervise the business of every water and sewer utility within its jurisdiction and may do all things, whether specifically designated in TWC, Chapter 13, or implied in TWC, Chapter 13, necessary and convenient to the exercise of this power and jurisdiction. Further, TWC, §13.041, states that the commission shall adopt and enforce rules reasonably required in the exercise of its powers and jurisdiction, including rules governing practice and procedure before the commission. Finally, TWC, §13.087, the section added by HB 841, states that the commission has jurisdiction to enforce this section.

The proposed new rule implements TWC, §§5.102, 5.103, 13.041, and 13.087.

§291.146.Municipal Rates for Certain Recreational Vehicle Parks.

(a) The following words and terms, when used in this section, have the following meanings, unless the context clearly indicates otherwise.

(1) Nonsubmetered master metered utility service--Potable water service that is master metered but not submetered and wastewater service that is based on master metered potable water service.

(2) Recreational vehicle--Includes a:

(A) house trailer as that term is defined by Texas Transportation Code, §501.002; and

(B) towable recreational vehicle as that term is defined by Texas Transportation Code, §541.201.

(3) Recreational vehicle park--A commercial property on which service connections are made for recreational vehicle transient guest use and for which fees are paid at intervals of one day or longer.

(b) A municipally owned utility that provides nonsubmetered master metered utility service to a recreational vehicle park shall determine the rates for that service on the same basis the utility uses to determine the rates for other commercial businesses, including hotels and motels, that serve transient customers and receive nonsubmetered master metered utility service from the utility.

(c) With the exception of any other provision of this chapter, the commission has jurisdiction to enforce this section.

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 February 24, 2006.

TRD-200600971

Stephanie Bergeron Perdue

Acting Deputy Director, Office of Legal Services

Texas Commission on Environmental Quality

Earliest possible date of adoption: April 9, 2006

For further information, please call: (512) 239-0177


Chapter 295. WATER RIGHTS, PROCEDURAL

The Texas Commission on Environmental Quality (commission) proposes amendments to §§295.2 and 295.171 - 295.174; and proposes new §295.42.

BACKGROUND AND SUMMARY OF THE FACTUAL BASIS FOR THE PROPOSED RULES

The 79th Legislature, 2005, passed House Bill (HB) 2140. This proposed rulemaking is necessary to implement that bill. This proposed rulemaking is also necessary to update the rules to reflect the agency's current practices, to adhere to the style and formatting requirements in the Texas Legislative Council Drafting Manual , November 2004, and to conform with Texas Register and agency guidelines.

When an application is filed to construct a storage reservoir, Texas Water Code (TWC), §11.124, as amended by HB 2140, requires that the application contain evidence that notice of the application has been given to members of the governing bodies of each county and municipality in which the reservoir will be located. The rule and statute ensure that local elected officials are provided timely information on reservoirs that are proposed for their area.

A corresponding proposed rulemaking that includes changes to 30 TAC Chapter 297, Water Rights, Substantive, is published in this issue of the Texas Register .

SECTION BY SECTION DISCUSSION

The proposed amendment to §295.2, Preparation of Application, adds a provision that the applicant must submit one original and six copies of the application and supporting materials, with a provision that electronic versions can be submitted for copies with the approval of the executive director. Some applicants have suggested to staff that the applicants may not provide the customary copies. In order to ensure timely processing of applications it is especially important for the staff to have copies of maps and other exhibits that cannot be readily copied by staff.

Proposed new §295.42, Additional Notice Requirements, requires proof of mailed notice of the application for a proposed storage reservoir to each member of the governing body of each county and municipality in which the reservoir, or any part of the reservoir, will be located. Proposed new §295.42 would implement TWC, §11.124, as amended by the 79th Legislature.

The commission proposes to change the title of Subchapter D from "Public Hearing" to "Contested Case Hearing" because this subchapter relates to contested case or trial-type hearings and the term "public hearing" is a broad term which includes all types of hearings.

The proposed amendment to §295.171, Request for Public Hearing, changes the title of the section from "Request for Public Hearing" to "Request for Contested Case Hearing," incorporates the requirements of 30 TAC Chapter 55, Subchapter G, concerning Requests for Reconsideration and Contested Case Hearings; Public Comments, and adds a reference to the time period specified in §55.251, to make the time for requesting a contested case hearing consistent with other commission rules. Additionally, the commission proposes to delete subsection (b) because those requirements are contained in Chapter 55, Subchapter G, and therefore, do not need to be repeated in §295.171(b).

The proposed amendment to §295.172, Public Hearing, changes all references from "public hearings" to "contested case hearings" to clarify that this rule only applies to contested case hearings. The reference to §295.171 will also be changed to refer to §55.251 and §55.255.

The proposed amendment to §295.173, Action on Application Without Public Hearing, changes the name of the section title from "Action on Application Without Public Hearing" to "Action on Application Without Contested Case Hearing" to more accurately reflect the contents of the section. Additionally, the proposed amendment combines existing paragraphs (1) and (2), renumbers existing paragraph (3) to new paragraph (2), and adds a new paragraph (3). Proposed paragraph (3) provides that the commission may take action on an application requiring notice without holding a contested case hearing, if the commission did not grant a request for a contested case hearing. This amendment is proposed to make the rule consistent with current commission procedures under TWC, §5.115.

The proposed amendment to §295.174, Applications for Temporary Permits, Emergency Permits, and Authorization to Divert Water From Unsponsored and Storage-Limited Projects for Domestic and Livestock Purposes, changes all references from "public hearings" to "contested case hearings" to clarify that this rule only applies to contested case hearings.

FISCAL NOTE: COSTS TO STATE AND LOCAL GOVERNMENT

Nina Chamness, Analyst, Strategic Planning and Assessment Section, determined that for the first five-year period the proposed rules are in effect, no fiscal implications are anticipated for the agency as a result of administration or enforcement of the proposed rules. Local governments, or other units of state government, who are water rights holders will see fiscal implications if they decide to construct a storage reservoir, but those implications are anticipated to be minor.

HB 2140 amended TWC, §11.124(b) to require that applications filed to construct a storage reservoir contain evidence that notice of the application has been given to each member of the governing bodies of each county and municipality in which the reservoir, or any part of the reservoir, will be located. The proposed rulemaking would amend §295.42 to require proof of mailed notice of the application to members of the appropriate governing bodies as now required by state law. In addition, the proposed rulemaking amends §295.2 to state that applicants must submit one original and six copies of the application and supporting materials when requesting any type of water permit. Current agency practice is to require an original and six copies, but the proposed rulemaking will clarify this requirement. The proposed rulemaking also makes administrative changes to Chapter 295 regarding contested case hearings to provide consistency and clarification within current rule provisions.

Local governments or other units of state government may see a cost increase if they apply to construct a storage reservoir. Staff cannot anticipate the number of future applications that will be filed to construct storage reservoirs. The requirement for each application for this type of construction to contain evidence of mailed notice to each member of the appropriate governing bodies will require the mailing of certified letters, which is estimated to cost $3.00 each. County commissioner courts have five members. Size of city councils varies among municipalities, but it is estimated that the average council size is six members. If a storage reservoir is constructed within one county and within one municipality, mailing costs could total $33 for each application. Constructing a storage reservoir that crosses county lines or is contained within more than one municipal boundary will cause application costs to increase by the number of members of each governing body. This increased cost is not anticipated to have significant fiscal implications for local governments or other units of state government.

PUBLIC BENEFITS AND COSTS

Ms. Chamness also determined that for each year of the first five years the proposed rules are in effect, the public benefit anticipated from the changes seen in the proposed rules will be compliance with state law and increased awareness among local government officials regarding planned construction of storage reservoirs that may be constructed within their jurisdictions.

The proposed rules would require applicants who wish to construct storage reservoirs, to send certified letters to each member of the appropriate governing bodies. Assuming an average cost of $3.00 per certified letter, a county commissioner court size of five, and an average city council size of six members, application costs to construct storage reservoirs could increase by $33. Application costs will increase incrementally if a storage reservoir is contained within more than one county or municipality. This increased cost is not anticipated to have significant fiscal implications for applicants applying to construct storage reservoirs.

SMALL BUSINESS AND MICRO-BUSINESS ASSESSMENT

Fiscal implications are anticipated for small or micro-businesses planning to construct storage reservoirs, although they are not anticipated to be significant. Application costs would increase because of the requirement to send certified letters to each member of the appropriate local government. This cost, estimated to be $3.00 per letter, could be as much as $33. A small business is defined as having fewer than 100 employees or less than $1 million in annual gross receipts. A micro- business is defined as having no more than 20 employees. The cost per employee for a small business is estimated to be $0.33. For a micro-business, the cost is estimated to be $1.65 per employee.

LOCAL EMPLOYMENT IMPACT STATEMENT

The commission reviewed this proposed rulemaking and determined that a local employment impact statement is not required because the proposed rules do not adversely affect a local economy in a material way for the first five years that the proposed rules are in effect.

DRAFT REGULATORY IMPACT ANALYSIS DETERMINATION

These proposed rules are not a "major environmental rule" as defined by Texas Government Code, §2001.0225(g)(3), because they are not proposed to protect the environment or reduce risks to human health from environmental exposure. The proposed rules are procedural and require six copies of an application and supporting materials, require proof of mailed notice of an application for a proposed storage reservoir to each member of a governing body of each county or municipality in which the reservoir will be located, change "public hearing" to "contested case hearing" in three existing rules, and add a current statutory procedure to the request for contested case hearing process. Therefore, no regulatory analysis on the costs of the proposed rulemaking is required.

Furthermore, these proposed rules do not exceed an express requirement of state law or exceed a requirement of a delegation agreement or contract between the state and federal government, and are not adopted under the general authority of the agency.

TAKINGS IMPACT ASSESSMENT

These proposed rules do not affect private real property. The proposed rules require six copies of an application and supporting materials, require proof of mailed notice of an application for a proposed storage reservoir to each member of a governing body of each county or municipality in which the reservoir will be located, change "public hearing" to "contested case hearing" in three existing rules, and add a current statutory procedure to the request for contested case hearing process. All of these changes are procedural changes which will aid the executive director's staff in processing applications, provide more notice of certain applications, clean up language concerning contested case hearings, and add a process for contested case hearing requests under TWC, §5.115.

None of these changes have any impact on any private real property interest. There are no alternatives to these procedural changes because they are either required for clarity or efficiency or reflect state law.

CONSISTENCY WITH THE COASTAL MANAGEMENT PROGRAM

The commission reviewed the proposed rulemaking and found the proposal is a rulemaking identified in the Coastal Coordination Act Implementation Rules, 31 TAC §505.11(b)(4) concerning rules subject to the Texas Coastal Management Program (CMP), and will, therefore, require that goals and policies of the CMP be considered during the rulemaking process.

The commission reviewed this rulemaking for consistency with the CMP goals and policies in accordance with the regulations of the Coastal Coordination Council and determined that the rulemaking is editorial and procedural in nature and will have no substantive effect on commission actions subject to the CMP and is, therefore, consistent with CMP goals and policies.

Written comments on the consistency of this rulemaking may be submitted to the contact person at the address listed under the SUBMITTAL OF COMMENTS section of this preamble.

SUBMITTAL OF COMMENTS

Comments may be submitted to Patricia Durón, MC 205, Texas Register Team, Office of Legal Services, P.O. Box 13087, Austin, Texas 78711-3087 or faxed to (512) 239-4808. All comments should reference Rule Project Number 2005-057-297-PR. Comments must be received by 5:00 p.m. on April 10, 2006. For further information, please contact Kathy Hopkins, Water Rights Permitting and Availability Section, at (512) 239-2567.

Subchapter A. REQUIREMENTS OF WATER RIGHTS APPLICATIONS GENERAL PROVISIONS

1. GENERAL REQUIREMENTS

30 TAC §295.2

STATUTORY AUTHORITY

The amendment is proposed under TWC, Chapter 11, which sets out the powers and duties of the commission relating to water rights, and under §5.103(a), which provides the commission with the authority to adopt rules necessary to carry out its powers and duties under the TWC and other laws of the state. TWC, §§11.124 - 11.128, contain certain requirements for water rights applications.

The proposed amendment implements TWC, §§11.124 - 11.128, relating to application requirements for water rights, and TWC, §5.103(a), which provides that the commission has the authority to adopt rules necessary to carry out its powers and duties under the TWC and other laws of the state.

§295.2.Preparation of Application.

(a) All applications shall be typewritten or printed legibly in ink. Illegible applications will be returned to the applicant. Applicants will be notified if additional information is needed to process an application, under [ pursuant to ] §281.4 of this title (relating to Applications for Use of State Water). The applicant should confer with the staff of the executive director on any questions concerning preparation of the application, especially if the application is unusual or unique. Upon express written or verbal approval of the applicant or the applicant's agent, any employee of the commission may make nonsubstantive changes in any documents submitted by the applicant. Substantive changes in an application may be made only by the applicant or the applicant's agent who submitted the application and only in the form of a written, notarized amendment to the application signed by the proper person; provided, however, that no substantive changes may be made after an application has been filed with the chief clerk of the commission by the executive director.

(b) All applicants shall submit one original and six copies of the application and supporting materials. In addition to the original notarized application form, if approved by the executive director, an applicant may submit electronic versions of required application documents.

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 February 24, 2006.

TRD-200600974

Stephanie Bergeron Perdue

Acting Deputy Director, Office of Legal Services

Texas Commission on Environmental Quality

Earliest possible date of adoption: April 9, 2006

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


4. ADDITIONAL REQUIREMENTS FOR DAMS AND RESERVOIRS

30 TAC §295.42

STATUTORY AUTHORITY

The new section is proposed under TWC, Chapter 11, which sets out the powers and duties of the commission relating to water rights; §5.103(a), which provides the commission with the authority to adopt rules necessary to carry out its powers and duties under the TWC and other laws of the state; §11.132, which requires notice for certain applications; and §11.124(f), which requires that an applicant provide evidence that it has provided notice of an application to construct a proposed reservoir to the governing bodies of each county and municipality in which the reservoir will be located. The commission must enact procedural rules for notice, and amend them when required by commission decision or statutory law.

The proposed new section implements TWC, §11.132 and §11.124(f), concerning notice requirements for water rights applications. The new section specifically implements §11.124(f), requiring notice of a storage reservoir to each member of the governing body of each county and municipality in which the reservoir will be located. The proposed new section also implements TWC, §5.103(a), which provides that the commission has the authority to adopt rules necessary to carry out its powers and duties under the TWC and other laws of the state.

§295.42.Additional Notice Requirement.

(a) The applicant for a permit to construct a storage reservoir shall give notice by certified mail of the application to each member of the governing body of each county and municipality in which the reservoir, or any part of the reservoir, will be located.

(b) For purposes of this section, a reservoir is located within a municipality when any part of the reservoir, when full, will be within the city limits of the municipality.

(c) An application for a permit to construct a storage reservoir must contain a copy of the notice that was mailed to each member of the governing bodies, as well as copies of the certified mailing cards.

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 February 24, 2006.

TRD-200600975

Stephanie Bergeron Perdue

Acting Deputy Director, Office of Legal Services

Texas Commission on Environmental Quality

Earliest possible date of adoption: April 9, 2006

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


Subchapter D. CONTESTED CASE HEARING

30 TAC §§295.171 - 295.174

STATUTORY AUTHORITY

The amendments are proposed under TWC, Chapter 11, which sets out the powers and duties of the commission relating to water rights; §5.103(a), which provides the commission with the authority to adopt rules necessary to carry out its powers and duties under the TWC and other laws of the state; and §5.115, which also contains requirements for a contested case hearing for water rights permits. The commission must enact procedural rules for contested case hearings, and amend them when required by commission decision or statutory law.

The proposed amendments implement TWC, §11.176 and §5.115, which contain the requirements for contested case hearings for water rights applications, and TWC, §5.103(a), which provides that the commission has the authority to adopt rules necessary to carry out its powers and duties under the TWC and other laws of the state.

§295.171.Request for Contested Case Hearing [ Public Hearing ].

[ (a) ] A request for contested case hearing [ public hearing ] on an application for a water use permit or amendment made by the applicant, the executive director, or an affected person who objects to the application must be made in writing , must comply with the requirements of Chapter 55, Subchapter G, of this title (relating to Requests for Reconsideration and Contested Case Hearings; Public Comment), and specifically §55.251 of this title (relating to Requests for Contested Case Hearing, Public Comment), and must be submitted to the commission within 30 days after the publication of the notice of application. The commission may extend the time allowed for submitting a request for contested case hearing [ public hearing ].

[ (b) A written request for a hearing from an affected person who objects to the application shall contain the following information: ]

[ (1) the name, mailing address, and phone number of the person making the request; ]

[ (2) the application number or other recognizable reference to the application; ]

[ (3) a brief description of the interest of the requester, or of persons represented by the requester; and ]

[ (4) a brief description of how the application, if granted, would adversely affect such interest. ]

§295.172. Contested Case Hearing [ Public Hearing ].

The commission may conduct a contested case hearing [ public hearing ] on any application. If the commission has received a request for a contested case hearing, [ public hearing ] which it determines is in compliance with §55.251 and §55.255 of this title (relating to Requests for Contested Case Hearing, Public Comment; and Commission Action on Hearing Request) [ §295.171 of this title (relating to Request for Public Hearing) ], if it determines that a contested case hearing [ public hearing ] would serve the public interest, or if a commissioner requests a contested case hearing [ public hearing ], the commission shall conduct a contested case hearing [ public hearing ] or refer the matter to the State Office of Administrative Hearings for a contested case hearing . [ If the commission determines that a public hearing must be held, the matter shall be remanded for hearing. ] See §295.157 of this title (relating to Notice of Hearing).

§295.173.Action on Application Without Contested Case Hearing [ Public Hearing ].

The commission may take action on an application requiring public notice at a regular meeting, without holding a contested case hearing [ public hearing ], provided:

(1) at least 30 days prior to the regular meeting at which action is taken, notice of the application has been given by publication and by mail and no person has requested a contested case hearing within 30 days of the publication of notice ;

[ (2) within the 30-day period after the publication of the notice, no request for a public hearing has been submitted by the executive director, the applicant, or an affected person who objects to the application; and ]

(2) [ (3) ] no commissioner has submitted a request for a contested case hearing [ public hearing ] within the 30-day period after publication of the notice or requests a contested case hearing [ public hearing ] at the regular meeting of the commission at which action on the application could be taken according to such notice ; or [ . ]

(3) the commission did not grant a request for a contested case hearing.

§295.174.Applications for Temporary Permits, Emergency Permits, and Authorization to Divert Water From Unsponsored and Storage-Limited Projects for Domestic and Livestock Purposes.

The sections in this subchapter relating to requests for contested case hearings [ public hearings ] and the requirements to hold contested case hearings [ public hearings ] in certain circumstances do not apply to applications for temporary water use permits, emergency water use permits, or authorization to divert water from unsponsored and storage-limited projects for domestic and livestock purposes. In these specified instances, the commission may conduct such hearings as it deems appropriate. However, the commission shall conduct a hearing on a temporary permit if it has been provisionally issued and if the permit has been cancelled upon request of the executive director under [ pursuant to ] §295.181 of this title (relating to Provisional Disposition of Application for Temporary Permit).

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 February 24, 2006.

TRD-200600976

Stephanie Bergeron Perdue

Acting Deputy Director, Office of Legal Services

Texas Commission on Environmental Quality

Earliest possible date of adoption: April 9, 2006

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


Chapter 297. WATER RIGHTS, SUBSTANTIVE

The Texas Commission on Environmental Quality (commission) proposes amendments to §297.46 and §297.71.

BACKGROUND AND SUMMARY OF THE FACTUAL BASIS FOR THE PROPOSED RULES

The 79th Legislature, 2005, passed House Bill (HB) 1225. This proposed rulemaking is necessary to implement that bill. This proposed rulemaking is also necessary to update the rules to reflect the agency's current practices, to adhere to the style and formatting requirements in the Texas Legislative Council Drafting Manual , November 2004, and to conform with Texas Register and agency guidelines.

The 79th Legislature passed HB 1225 in response to recommendations by the Water Conservation Implementation Task Force, which was created by the 78th Legislature, 2003. HB 1225 added a provision to Texas Water Code (TWC), §11.173(b), which exempts a state water right from cancellation for nonuse if the nonuse was the result of water conservation measures. This measure will encourage the conservation of water in the state.

A corresponding proposed rulemaking that includes changes to 30 TAC Chapter 295, Water Rights, Procedural, is published in this issue of the Texas Register .

SECTION BY SECTION DISCUSSION

The proposed amendment to §297.46, Consideration of Public Welfare, deletes an obsolete reference to 30 TAC Chapter 261, which has been repealed.

The proposed amendment to §297.71, Cancellation in Whole or in Part, adds subsection (b)(7) that provides an additional exemption from cancellation for those water rights that are not used due to implementation of water conservation measures. Subsection (b) implements HB 1225, as amended by the 79th Legislature, which will encourage water conservation.

FISCAL NOTE: COSTS TO STATE AND LOCAL GOVERNMENT

Nina Chamness, Analyst, Strategic Planning and Assessment Section, determined that for the first five-year period the proposed rules are in effect, no fiscal implications are anticipated for the agency or other units of state or local governments as a result of administration or enforcement of the proposed rules.

The proposed rulemaking would implement HB 1225, which amended TWC, §11.173(b). HB 1225 encourages water conservation by exempting a state water right from cancellation for nonuse if that nonuse was the result of water conservation measures. Additionally, the proposed rulemaking amends Chapter 297 to reflect current agency practices.

Current agency practice reflects the provisions of the proposed rulemaking and has no fiscal implications to local government water right holders.

PUBLIC BENEFITS AND COSTS

Ms. Chamness also determined that for each year of the first five years the proposed rules are in effect, the public benefit anticipated from the changes seen in the proposed rules will be increased efforts to conserve water and greater consistency between agency rules and the TWC.

The proposed rulemaking implements provisions of TWC, §11.173(b), and encourages water conservation by exempting a state water right from cancellation for nonuse if that nonuse was the result of water conservation measures. Additionally, the proposed rulemaking amends Chapter 297 to reflect current agency practices.

Current agency practice reflects the provisions of the proposed rulemaking and has no fiscal implications to water right holders.

SMALL BUSINESS AND MICRO-BUSINESS ASSESSMENT

No adverse fiscal implications are anticipated for small or micro-businesses as a result of the proposed rules. Current agency practice reflects the provisions of the proposed rules and has no fiscal implications to water right holders.

LOCAL EMPLOYMENT IMPACT STATEMENT

The commission reviewed this proposed rulemaking and determined that a local employment impact statement is not required because the proposed rules do not adversely affect a local economy in a material way for the first five years that the proposed rules are in effect.

DRAFT REGULATORY IMPACT ANALYSIS DETERMINATION

These proposed amendments are not a "major environmental rule" as defined by Texas Government Code, §2001.0225(g)(3), because they are not proposed to protect the environment or reduce risks to human health from environmental exposure. The purpose of the proposed rulemaking is to comply with state law. TWC, §11.173(b), exempts a state water right from cancellation for nonuse if the nonuse was the result of water conservation measures. This change is not expressly to protect the environment and reduce risks to human health and the environment. Therefore, no regulatory analysis on the costs of the proposed rulemaking is required.

Furthermore, these proposed amendments do not exceed an express requirement of state law or exceed a requirement of a delegation agreement or contract between the state and federal government, and are not adopted under the general authority of agency.

TAKINGS IMPACT ASSESSMENT

These proposed amendments do not affect private real property. These changes exempt conserved water from cancellation. The purpose of the proposed rulemaking is to comply with state law. TWC, §11.173(b), exempts a state water right from cancellation for nonuse if the nonuse was the result of water conservation measures.

These proposed amendments do not burden private real property because allowing a further exemption from cancellation protects private real property. There are no alternatives to these proposed amendments because the proposed amendments implement state law.

CONSISTENCY WITH THE COASTAL MANAGEMENT PROGRAM

The commission reviewed the proposed rulemaking and found the proposal is a rulemaking identified in the Coastal Coordination Act Implementation Rules, 31 TAC §505.11(b)(4), concerning rules subject to the Texas Coastal Management Program (CMP), and will, therefore, require that goals and policies of the CMP be considered during the rulemaking process.

The commission reviewed this rulemaking for consistency with the CMP goals and policies in accordance with the regulations of the Coastal Coordination Council and determined that the rulemaking is editorial and procedural in nature and will have no substantive effect on commission actions subject to the CMP and is, therefore, consistent with CMP goals and policies.

Written comments on the consistency of this rulemaking may be submitted to the contact person at the address listed under the SUBMITTAL OF COMMENTS section of this preamble.

SUBMITTAL OF COMMENTS

Comments may be submitted to Patricia Durón, MC 205, Texas Register Team, Office of Legal Services, P.O. Box 13087, Austin, Texas 78711-3087 or faxed to (512) 239-4808. All comments should reference Rule Project Number 2005-057-297-PR. Comments must be received by 5:00 p.m. April 10, 2006. For further information, please contact Julie Wood, Water Rights Permitting and Availability Section, at (512) 239-1282.

Subchapter E. ISSUANCE AND CONDITIONS OF WATER RIGHTS

30 TAC §297.46

STATUTORY AUTHORITY

The amendment is proposed under TWC, Chapter 11, which sets out the powers and duties of the commission relating to water rights, and under TWC, §5.103(a), which provides the commission with the authority to adopt rules necessary to carry out its powers and duties under the TWC and other laws of the state.

The proposed amendment implements TWC, §5.103(a), which provides that the commission has the authority to adopt rules necessary to carry out its powers and duties under the TWC and other laws of the state.

§297.46.Consideration of Public Welfare.

The commission may grant an application for a new or amended water right only if it finds that it would not be detrimental to the public welfare. [ In making this determination, the commission shall consider the social, economic and environmental impact statement submitted with an application if required by Chapter 261, Subchapters B and D, of this title (relating to Environmental, Social and Economic Impacts Statements). ]

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 February 24, 2006.

TRD-200600977

Stephanie Bergeron Perdue

Acting Deputy Director, Office of Legal Services

Texas Commission on Environmental Quality

Earliest possible date of adoption: April 9, 2006

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


Subchapter G. CANCELLATION, REVOCATION, ABANDONMENT, AND FORFEITURE OF WATER RIGHTS

30 TAC §297.71

STATUTORY AUTHORITY

The amendment is proposed under TWC, Chapter 11, which sets out the powers and duties of the commission relating to water rights, and under TWC, §5.103(a), which provides the commission with the authority to adopt rules necessary to carry out its powers and duties under the TWC and other laws of the state. Specifically, TWC, §11.173, provides the commission with the authority to cancel water rights. The commission must amend its substantive rules to ensure that the commission's rules are consistent with commission decisions and statutory law.

The proposed amendment implements TWC, §11.173(d)(5), which exempts from cancellation water rights for which nonuse was due to implementation of water conservation measures under a water conservation plan submitted by the holder of the water right. Additionally, the proposed amendment implements TWC, §5.103(a), which provides that the commission has the authority to adopt rules necessary to carry out its powers and duties under the TWC and other laws of the state.

§297.71.Cancellation in Whole or in Part.

(a) Except as provided by subsection (b) of this section, if all or part of a water right has not been put to beneficial use during a consecutive ten-year [ ten year ] period, such water right is subject to cancellation in whole or in part as provided by this subchapter.

(b) A water right is not subject to cancellation as provided by subsection (a) of this section to the extent that such nonuse is the result of:

(1) the water right holder's participation in the Conservation Reserve Program authorized by 16 United States Code, §§3831 -3836, [ the ] Food Security Act of 1985 [ , Pub. L. No. 99-198, Secs. 1231-1236, 99 Stat. 1354, 1509-1514 (1985) ] or a similar governmental program;

(2) - (4) (No change.)

(5) the water right was obtained to meet demonstrated long-term public water supply or electric generation needs as evidenced by a water management plan developed by the water right holder, and the water right is consistent with projections of future water needs contained in the state water plan; [ or ]

(6) the water right was obtained as the result of the construction of a reservoir funded, in whole or in part, by the holder of the water right, as part of the water right holder's long-term water planning ; or [ . ]

(7) the implementation of water conservation measures under a water conservation plan submitted by the holder of the permit, certified filing, or certificate of adjudication as evidenced by implementation reports submitted by the holder.

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 February 24, 2006.

TRD-200600978

Stephanie Bergeron Perdue

Acting Deputy Director, Office of Legal Services

Texas Commission on Environmental Quality

Earliest possible date of adoption: April 9, 2006

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