The Texas Natural Resource Conservation Commission (TNRCC or commission) adopts new Subchapter A, §§261.1 - 261.6, Environmental, Social, and Economic Impacts Statements; and Subchapter B, §§261.21 - 261.23, Guidelines for Preparation of Environmental, Social, and Economic Impacts Statements; and adopts the repeal of §§261.21 - 261.26 and §§261.41 - 261.43, General Provisions, without changes to the text published in the November 12, 1999 issue of the Texas Register (24 TexReg 9947-9951). The purpose of the repeal and the new sections is to rename the chapter and one subchapter, reformat both subchapters, and amend two sections.

The commission also adopts the review of the rules in Chapter 261 as required by the Texas Government Code, §2001.039, and the General Appropriations Act, Article IX, §9-10.13, 76th Legislature, 1999. The adopted 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 ADOPTED RULES

Chapter 261 is a recodification of a rule first adopted by the former Texas Water Rights Commission (TWRC). The TWRC rule (formerly §129.03.25.008) allowed environmental impact evidence created for proposed projects to be introduced into evidence in commission proceedings where statutory criteria for the review of an application included public welfare. The rule later was readopted with four subchapters under Chapter 261, General Provisions, by the Texas Department of Water Resources. In 1996, Subchapters A and C were removed from Chapter 261 and incorporated into Chapters 1 and 10. Subchapter B, Environmental, Social, and Economic Impacts Statements; and Subchapter D, Guidelines for Preparation of Environmental Impact Studies, were left intact and now comprise Subchapters A and B, respectively, of Chapter 261.

FINAL REGULATORY IMPACT ANALYSIS

The commission has reviewed the adopted 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 adopted amendments to Chapter 261 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 because the amendments are administrative in nature and are intended to reformat the chapter, correct or update references, and make the rules easier to read and understand. The amendments do not add any additional regulatory requirements. In addition, the amendments do not meet the applicability requirements of a "major environmental rule." The 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. In addition, the amendments are consistent with the TWC.

TAKINGS IMPACT ASSESSMENT

The commission has prepared a takings impact assessment for this rulemaking under the Texas Government Code, §2007.043. The following is a summary of that assessment. The specific purpose of the rulemaking is to repeal Chapter 261 and adopt it in a new format. This action does not affect private real property which is the subject of the rules because this rulemaking action does not restrict or limit the owner's right to the property that otherwise would exist in the absence of the rulemaking. Further, this rulemaking is not the producing cause of the reduction in the market value of private real property. Therefore, this action, which involves no change in 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 determined that this rulemaking relates to an action or actions subject to the Texas Coastal Management Program (CMP) in accordance with the Coastal Coordination Act of 1991, as amended (Texas Natural Resources Code, §§33.201 et seq.), and the commission's rules in 30 TAC Chapter 281, Subchapter B, Consistency with Texas Coastal Management Program. The commission has reviewed this proposal for consistency with the CMP goals and policies listed in the rules of the Coastal Coordination Council, §§501.12 - 501.15, and has determined that the rulemaking is consistent with the applicable CMP goals and policies. The rulemaking involves only renaming, reformatting, and three minor amendments. No changes are adopted in the requirements of this chapter.

The applicable CMP goals under §501.12, Goals, are Nos. 1, 2, 3, 5, and 8. The applicable CMP policy under §501.13(a), Administrative Policies, is number (1), and the applicable CMP policies under §501.14, Policies for Specific Activities and Coastal Natural Resource Areas, are (b), (c), (d), (f), (h), (i), (j), and (r). No comments were submitted on the consistency of the proposed rules with the CMP during the public comment period.

HEARING AND COMMENTERS

No hearing was held on the proposal and no comments were received during the public comment period.

Subchapter A. ENVIRONMENTAL, SOCIAL, AND ECONOMIC IMPACTS STATEMENTS

Subchapter B. ENVIRONMENTAL, SOCIAL, AND ECONOMIC IMPACTS STATEMENTS

Subchapter B. RECYCLING, REUSE, AND MATERIALS RECOVERY