TITLE 30.ENVIRONMENTAL QUALITY

Part 1. TEXAS NATURAL RESOURCE CONSERVATION COMMISSION

Chapter 290. PUBLIC DRINKING WATER

Subchapter G. WATER SAVING PERFORMANCE STANDARDS

30 TAC §290.251, §290.261

The Texas Natural Resource Conservation Commission (commission) proposes an amendment to §290.251. The commission also proposes new §290.261.

BACKGROUND AND SUMMARY OF THE FACTUAL BASIS FOR THE PROPOSED RULES

The proposed rules implement House Bill (HB) 2403, 77th Texas Legislature, 2001, which amended Texas Health and Safety Code (THSC), Chapter 372, adding §372.004, which requires that appropriate industry trade associations or other entities, by January 31st of each year, report to the commission the number of clothes washing machines imported into the state. Section 372.004 also requires the report to categorize the clothes washing machines according to four different water consumption factors. The proposed rules do not apply to clothes washing machines with a capacity of more than 3.5 cubic feet or less than 1.6 cubic feet. The first report under §372.004 must be submitted to the commission by January 31, 2003.

SECTION BY SECTION DISCUSSION

Throughout these sections minor grammatical revisions and administrative clarifications are proposed to conform to internal style standards.

Section 290.251, Purpose, Authority, and Definitions, is proposed to be amended. Subsection (a) adds reporting requirements for the number of certain commercial or residential clothes washing machines imported into the state. Subsection (c) adds definitions for "Import" and "Water consumption factor." The bill only requires that trade associations report on the number of washing machines that are imported into the state; therefore, the commission proposes to add the definition of "Import" to subsection (c) as "The physical movement of merchandise into the State of Texas, including shipments to distributors, shipments to factory distributing branches, direct factory sales, shipments to retailers, shipments to factory distributing branches, shipments to sales districts, and shipments to factory owned distributing outlets." The definition of "Water consumption factor" is defined in HB 2403 as the meaning according to 10 Code of Federal Regulations Part 430, Subpart B, Appendix J, as that appendix existed on September 1, 2001. The commission proposes to include that definition of "Water consumption factor," which is "The quotient of the total weighted per cycle consumption divided by the capacity of the clothes washer...." The commission also proposes to add "clothes washing machines" to the definition of "manufacturer."

New §290.261, Reporting on Clothes Washing Machines, is proposed to specify the reporting requirements for clothes washing machine manufacturers. The proposed new section will include the annual reporting deadlines and the criteria for categorizing the machines by the four water consumption factors.

FISCAL NOTE: COSTS TO STATE AND LOCAL GOVERNMENT

Jeffrey Horvath, Analyst with Strategic Planning and Appropriations, has determined that for the first five-year period the proposed rules are in effect, no significant fiscal implications are expected for the agency or other units of state and local government.

The proposed rules implement HB 2403 (relating to reporting requirements regarding certain clothes washing machines), 77th Legislature, 2001. This bill requires that the commission, beginning in February 2003, report to the Legislature not later than February 28th of each year, the number of washing machines imported into this state the previous year by water consumption factors. There are four water consumption factor categories defined in the bill. The bill would also require the appropriate trade industry associations or other entities to provide the information to the commission.

The proposed rules would require the appropriate industry trade associations, clothes washing machine manufacturers or other entities, no later than January 31st of each year, to report to the commission the number of clothes washing machines imported into the state. The report must categorize the machines according to four different water consumption factors. A water consumption factor is defined as the quotient of the total weighted per cycle water consumption divided by the capacity of the clothes washer. The higher the water consumption factor, the greater the amount of water consumption.

The four categories would include: 1) the number of clothes washing machines with a water consumption factor of more than 11 that were imported into this state during the preceding calendar year; 2) the number of clothes washing machines with a water consumption factor of more than 9.5, but not more than 11 that were imported into this state during the preceding year; 3) the number of clothes washing machines with a water consumption factor of 9.5 or less that were imported into the state during the preceding calendar year; and 4) the average water consumption factor of all clothes washing machines that were imported into this state during the preceding calendar year. The proposed rules would not apply to machines with a capacity of more than 3.5 cubic feet or less than 1.6 cubic feet.

At this time, there is one trade association, the Association of Home Appliance Manufacturers, that represents the majority of the estimated ten clothes washing machine manufacturers in the country. Manufacturers already report general information to the trade association, and the trade association would collect and report the required information regarding the number of machines imported into Texas by water consumption factor. Manufacturers will need to collect and report by their water consumption factors, the number of machines shipped to Texas. According to the trade association, this information is available and no significant fiscal implications are anticipated to the manufacturers or the trade association. It is not known how many clothes washing machines have been imported into Texas because this information has not been collected before and Texas is the only state known to have this requirement.

Commission staff will receive the required information from the trade association and produce a report which will be submitted to the Legislature no later than February 28th of each year. No significant fiscal implications are anticipated for the agency or other units of state or local government to submit the report.

PUBLIC BENEFITS AND COSTS

Mr. Horvath has also determined that for each year of the first five years the proposed rules are in effect, the public benefit anticipated from the enforcement of and compliance with the proposed rules would include compliance with state law, and the collection of data to make informed decisions regarding water use and conservation for clothes washing machines.

No significant fiscal implications are anticipated for businesses or individuals as a result of the implementation or enforcement of the proposed rules. The proposed rules would not impose new regulatory requirements on manufacturers or consumers of clothes washing machines, only a reporting requirement for certain manufacturers or trade associations.

The proposed rules implement HB 2403. This bill requires that the commission, beginning in February 2003, report to the Legislature not later than February 28th of each year, the number of washing machines imported into this state the previous year by water consumption factors. There are four water consumption factor categories defined in the bill. The bill would also require appropriate trade industry associations or other entities to provide this information to the commission.

The proposed rules would require clothes washing machine manufacturers, appropriate industry trade associations or other entities to report to the commission, no later than January 31st of each year, the number of clothes washing machines imported into the state the previous calendar year. The report must categorize the machines according to four water consumption factors. A water consumption factor is defined as the quotient of the total weighted per cycle water consumption divided by the capacity of the clothes washer. The higher the water consumption factor, the greater the amount of water consumption.

The four categories would include: 1) the number of clothes washing machines with a water consumption factor of more than 11 imported into the state during the preceding year; 2) the number of clothes washing machines with a water consumption factor of more than 9.5, but not more than 11 imported into the state during the preceding year; 3) the number of clothes washing machines with a water consumption factor of 9.5 or less imported into the state during the preceding year; and 4) the average water consumption factor of all clothes washing machines that were imported into the state during the preceding calendar year. The proposed rules would not apply to machines with a capacity of more than 3.5 cubic feet or less than 1.6 cubic feet.

At this time, one trade association, the Association of Home Appliance Manufacturers, represents the majority of the estimated ten clothes washing machine manufacturers in the country. Manufacturers already report general information to the trade association, and the trade association would collect and report the required information, by water consumption factor, regarding the number of machines imported into Texas. Manufacturers will need to collect and report on the number of machines shipped to Texas by their water consumption factors. According to the trade association, this information is available and no significant fiscal implications are anticipated to the manufacturers or to the trade association. There is one foreign manufacturer with a business office and distribution center in Texas. It is not known how many clothes washing machines have been imported into Texas because this information has not been collected. Texas is the only state known to have this requirement.

SMALL BUSINESS AND MICRO-BUSINESS ASSESSMENT

No adverse fiscal implications are anticipated as a result of the implementation and enforcement of the proposed rules for small and micro-businesses that import into the state any clothes washing machines with a water consumption factor of less than 11 or more than 9.5. The proposed rules would not apply to machines with a capacity of more than 3.5 cubic feet or less than 1.6 cubic feet.

There are no known small or micro-businesses that import washing machines into the state, but if there are, they will be required to report on the number of clothes washing machines they import into the state that meet certain water consumption factors.

The proposed rules would require clothes washing machine manufacturers, appropriate industry trade associations or other entities to report to the commission, no later than January 31st of each year, the number of clothes washing machines imported into the state. The report must categorize the machines according to four different water consumption factors. A water consumption factor is defined as the quotient of the total weighted per cycle water consumption divided by the capacity of the clothes washer. The higher the water consumption factor, the greater the amount of water consumption.

The four categories would include: 1) the number of clothes washing machines with a water consumption factor of more than 11 that were imported into the state during the preceding calendar year; 2) the number of clothes washing machines with a water consumption factor of more than 9.5, but not more than 11 imported into the state during the preceding calendar year; 3) the number of clothes washing machines with a water consumption factor of 9.5 or less but were imported into the state during the preceding calendar year; and 4) the average water consumption factor of all clothes washing machines that were imported into the state during the preceding calendar year. The proposed rules would not apply to machines with a capacity of more than 3.5 cubic feet or less than 1.6 cubic feet.

At this time, one trade association, the Association of Home Appliance Manufacturers, represents the majority of the estimated ten clothes washing machine manufacturers in the country. Manufacturers already report general information to the trade association, and the trade association would collect and report the required information, by water consumption factors, regarding the number of machines imported into Texas. Manufacturers will need to collect and report, by water consumption factors, on the number of machines shipped to Texas. According to the trade association, this information is available and no significant fiscal implications are anticipated by the manufacturers or the trade association. There is one foreign manufacturer with a business office and distribution center in Texas. It is not known how many clothes washing machines have been imported into Texas because this information has not been previously collected.

LOCAL EMPLOYMENT IMPACT STATEMENT

The commission has 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. Furthermore, it does not meet any of the four applicability requirements listed in Texas Government Code, §2001.0225(a).

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. The proposed rules do not meet the definition of a major environmental rule because the specific intent of the proposed rulemaking is to implement a statutory directive to compile information regarding the water consumption of certain washing machines imported into the state. Furthermore, due to the limited applicability of this rulemaking, which will only apply to importers of certain washing machines, the proposed rules will not 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.

In addition, the proposed rules do not exceed a standard set by federal law, exceed an express requirement of state law, exceed a requirement of a delegation agreement, or propose to adopt a rule solely under the general powers of the agency. The proposed rules do not exceed a standard set by federal law. The proposal does not exceed an express requirement of state law because it is in direct response to HB 2403, and does not exceed the requirements of this bill. This proposal 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 a state and federal program because there is no applicable delegation agreement or contract. This proposal does not adopt a rule solely under the general powers of the agency, but rather under specific state law, i.e., HB 2403, THSC, §372.004, which requires the commission to adopt rules which require industry trade associations or other entities to provide specific water consumption information to the commission. Finally, this rulemaking is not being proposed on an emergency basis to protect the environment or to reduce risks to human health from environmental exposure. The commission invites public comment on the draft regulatory analysis determination.

TAKINGS IMPACT ASSESSMENT

The commission performed a preliminary analysis for these proposed rules in accordance with Texas Government Code, §2007.043. The specific purpose of the proposed rulemaking is to implement HB 2403, which directs that the commission will annually report to the legislature on the water consumption of certain washing machines imported into the state. The legislation from HB 2403 also directs the commission to adopt rules which require industry trade associations or other entities to provide specific water consumption information to the commission. The proposed rules will substantially advance these stated purposes by providing specific provisions on these matters. Promulgation and enforcement of these rules will not affect private real property because the proposed rules only create recordkeeping and reporting requirements. Therefore, the proposed rules will not constitute a takings under Texas Government Code, Chapter 2007.

CONSISTENCY WITH THE COASTAL MANAGEMENT PROGRAM

The commission reviewed the proposed rulemaking and found that the proposed rules are 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 they affect any action or authorization identified in Coastal Coordination Act Implementation Rules, 31 TAC §505.11. Therefore, 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 2002-001-290-WT. Comments must be received by 5:00 pm, April 15, 2002. For further information, contact Debra Barber, Policy and Regulations Division, at (512) 239-0412.

STATUTORY AUTHORITY

The amendment is proposed under HB 2403, 77th Legislature, 2001, which requires the agency to adopt rules to implement THSC, §372.004. In addition, the amendment is proposed under Texas Water Code (TWC), §5.013, which establishes the general jurisdiction of the commission; §5.102, which establishes the commission's general authority to carry out its jurisdiction; and §5.103, which requires the commission to adopt any rule necessary to carry out its powers and duties under this code and other laws of this state.

The proposed amendment implements THSC, §372.004 and TWC, §5.102 and §5.103.

§290.251.Purpose, Authority, and Definitions.

(a) Purpose. The purpose of this subchapter is to establish water saving performance standards and labeling requirements for plumbing fixtures; establish labeling requirements for dishwashing machines, lawn sprinklers, and clothes washing machines; and establish reporting requirements for clothes washing machines. This subchapter applies to plumbing fixtures, dishwashing machines, lawn sprinklers, and clothes washing machines that are manufactured, imported, or otherwise supplied for sale in Texas unless the item is manufactured exclusively for sale outside of the state. [ Purpose. The purpose of these sections is to establish water saving performance standards and labeling requirements for sink and lavatory faucets, shower heads, drinking water fountains, urinals, toilets, and flushometer toilets that are manufactured, imported, or otherwise supplied for sale in the State of Texas, and to establish labeling requirements for commercial or residential clothes-washing and dishwashing machines and lawn sprinklers to assist the consumer in making an informed purchasing decision. These sections apply to manufacturers, importers, and major suppliers of plumbing fixtures, who sell, offer for sale, distribute, or import plumbing fixtures into the state. These sections do not apply to plumbing fixtures manufactured in the State for sale outside of the state. ]

(b) Authority. The authority for these sections is Texas [ the ] Health and Safety Code, Chapter 372, titled Environmental Performance Standards for Plumbing Fixtures [ Environmental Performance Standards for Plumbing Fixtures ].

(c) Definitions. The following words and terms, when used in this subchapter [ these sections ], shall have the following meanings, unless the context clearly indicates otherwise.

(1) - (4) (No change.)

(5) Import--The physical movement of merchandise into the State of Texas, including shipments to distributors, shipments to factory distributing branches, direct factory sales, shipments to retailers, shipments to factory distributing branches, shipments to sales districts, and shipments to factory-owned distributing outlets.

(6) [ (5) ] Importer--A business or individual that brings into the state plumbing fixtures from other countries or states for resale or installation (other than for their own domicile) within the state.

(7) [ (6) ] Major supplier--A business or individual that provides plumbing fixtures to others for resale or installation (other than for their own domicile) within the state.

(8) [ (7) ] Manufacturer--Someone who manufactures [ that makes ] plumbing fixtures or clothes washing machines .

(9) [ (8) ] Model--A type or design of a plumbing fixture.

(10) [ (9) ] Order--A request to purchase plumbing fixtures from a manufacturer, major supplier, or importer.

(11) [ (10) ] Plumbing fixture--A sink faucet, lavatory faucet, faucet aerator, shower head, urinal, toilet, flush valve toilet, or drinking water fountain.

(12) [ (11) ] Toilet--A toilet or water closet except a wall-mounted toilet that employs a flushometer valve.

[ (12) APA--The Administrative Procedure Act.]

(13) Water consumption factor--The quotient of the total weighted per cycle consumption divided by the capacity of the clothes washer, as stated in 10 Code of Federal Regulations Part 430, Subpart B, Appendix J, September 1, 2001.

§290.261.Reporting on Clothes Washing Machines.

(a) A manufacturer who imports one or more clothes washing machines into the state, a trade association representing the manufacturer, or other entities must report the following information to the executive director not later than January 31st of each year:

(1) the number of clothes washing machines imported into the state during the preceding calendar year with a water consumption factor of more than 11;

(2) the number of clothes washing machines imported into the state during the preceding calendar year with a water consumption factor of more than 9.5, but not more than 11;

(3) the number of clothes washing machines imported into the state during the preceding calendar year with a water consumption factor of 9.5 or less; and

(4) the average water consumption factor of all clothes washing machines imported into the state during the preceding calendar year.

(b) A manufacturer has complied with this section if the manufacturer reports the required information to an industry trade association or other entity who reports the required information to the executive director by January 31st of each year.

(c) This section does not apply to a clothes washing machine with a capacity of more than 3.5 cubic feet or less than 1.6 cubic feet.

(d) The first report required by this section shall be submitted to the executive director by January 31, 2003.

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 1, 2002.

TRD-200201294

Stephanie Bergeron

Director, Environmental Law Division

Texas Natural Resource Conservation Commission

Earliest possible date of adoption: April 14, 2002

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


Chapter 291. UTILITY REGULATIONS

Subchapter J. ENFORCEMENT, SUPERVISION, AND RECEIVERSHIP

30 TAC §291.145

The Texas Natural Resource Conservation Commission (commission) proposes new §291.145, Preenforcement Threshold of Noncompliance.

BACKGROUND AND SUMMARY OF THE FACTUAL BASIS FOR THE PROPOSED RULE

Senate Bill (SB) 649 (an act relating to training requirements for applicants for, and recipients of, financial assistance for water and sewer services under the Economically Distressed Areas Program (EDAP)), 77th Legislature, 2001 added Texas Water Code (TWC), Chapter 17, Subchapter M, and mandates the commission by rule to establish a preenforcement threshold of noncompliance at which the commission may notify the Texas Water Development Board (TWDB) that an operating entity needs training.

SECTION DISCUSSION

Proposed new §291.145 includes definitions for certain words; provides the purpose of the proposed rule; provides the criteria used for the proposed rule; and provides notification of enforcement actions related to the proposed rule.

Proposed new subsection (a), is included to clearly define the terms "operating entity" and "preenforcement threshold of noncompliance" as used in the proposed rule.

Proposed new subsection (b), provides that the purpose of the rule is to evaluate whether the managerial, financial, and technical capabilities of an operating entity who is an applicant for, or recipient of, financial assistance from the EDAP are adequate to meet program requirements or to remain financially viable and whether an operating entity needs training if the operating entity has a history of compliance problems.

Proposed new subsection (c), provides the criteria the commission may use when determining whether to notify the TWDB that an operating entity needs training. If an inspection or other assessment of the water system by the TWDB or the commission reveals that the governing body has failed to exercise proper care in its fiduciary duties, sufficiently employ or supervise its employees' work-related activities, or ensure adequate operation of its physical facilities, the commission may notify the TWDB.

Proposed new subsection (d), provides that the commission shall notify the TWDB when the commission proposes to assess a penalty against an operating entity and that if the commission assesses a penalty against an operating entity in an enforcement action, the enforcement order shall contain a provision requiring that the operating entity receive training as ordered by the TWDB.

FISCAL NOTE: COSTS TO STATE AND LOCAL GOVERNMENT

John Davis, Technical Specialist with Strategic Planning and Appropriations, determined that for the first five-year period the proposed new section is in effect, there will be no significant fiscal implications for the commission due to administration and enforcement of the proposed rule. The governing body of a political subdivision that provides and manages water and sewer services in economically distressed areas could incur training costs up to $6,000 if the commission determines that these operating entities require additional financial, managerial, or technical training. There would be no fiscal implications for operating entities not located in economically distressed areas to comply with the proposed rulemaking.

The proposed rule is intended to implement provisions of SB 649, 77th Legislature, 2001, which requires the commission to establish, by rule, criteria to be used to determine if an operating entity needs training. Operating entities, which include units of local government and nonprofit water supply corporations, are responsible for managing and providing water and sewer services. This rule may affect operating entities which seek or have received funding under the EDAP in economically distressed areas of the state. An economically distressed area is an area where the water supply or sewer services are inadequate to meet minimal needs of residential users as defined by TWDB rules; financial resources are inadequate to provide water supply or sewer services that will satisfy those needs; and an established residential subdivision was located on June 1, 1989, as determined by the TWDB. There are currently operating entities in 53 counties, primarily located along the Texas/Mexico border, that may seek or have received financial assistance for water and wastewater system-related projects that may be affected by this rulemaking.

Senate Bill 649 requires the commission to adopt procedural rules requiring training under certain conditions for recipients of, and applicants for, financial assistance in economically distressed areas. The proposed rule is intended to provide the criteria the commission will use when determining whether to notify the TWDB that operating entities seeking financial assistance in economically distressed areas require training on financial, managerial, and technical issues prior to receiving monetary assistance. Additionally, the proposed rule is intended to require the commission to include training requirements in any enforcement action against an operating entity seeking financial aid. These provisions are not anticipated to result in significant fiscal implications for the commission.

If the commission determines an operating entity requires further training, there will be training- related costs to comply with the proposed rule. The commission estimates it would cost an operating entity between approximately $1,500 to $6,000 for a series of three three-hour seminars. The cost to operating entities could be reduced if they apply for and receive financial assistance from the state. The commission does not anticipate that units of government in economically distressed areas would lose funding due to implementation of the proposed rule.

PUBLIC BENEFITS AND COSTS

Mr. Davis also determined that for each year of the first five years the proposed rule is in effect, the public benefit anticipated from enforcement of and compliance with the proposed rule will be potentially increased rate of compliance with the state's drinking water and wastewater treatment regulations through increased training.

This rulemaking is intended to implement provisions of SB 649, 77th Legislature, 2001, which requires the commission to adopt rules requiring training under certain conditions for recipients of, and applicants for, financial assistance in economically distressed areas. The proposed rule is intended to provide the criteria the commission will use when determining whether to notify the TWDB that operating entities seeking financial assistance in economically distressed areas require training on financial, managerial, and technical issues prior to receiving monetary assistance. Additionally, the proposed rule is intended to require the commission to include training requirements in any enforcement action against an operating entity seeking financial aid.

This rulemaking may apply to operating entities, which include nonprofit water supply corporations, providing water and wastewater services within the affected 53 counties. If the commission determines an operating entity requires further training, there will be training related costs to comply with the proposed rule. The commission estimates it would cost an operating entity between approximately $1,500 to $6,000 for a series of three three-hour seminars. The cost to operating entities could be reduced if they apply for and receive financial assistance from the state. The commission does not anticipate that operating entities in economically distressed areas would lose funding due to implementation of the proposed rule.

SMALL BUSINESS AND MICRO-BUSINESS ASSESSMENT

There will be no adverse fiscal implications to small or micro-businesses as a result of implementing the proposed rule, which is intended to implement provisions of SB 649, 77th Legislature, 2001. The bill requires the commission to adopt rules requiring training under certain conditions for recipients of, and applicants for, financial assistance in economically distressed areas. The proposed rule is intended to provide the criteria the commission will use when determining whether to notify the TWDB that operating entities seeking financial assistance in economically distressed areas require training on financial, managerial, and technical issues prior to receiving monetary assistance. Additionally, the proposed rule is intended to require the commission to include training requirements in any enforcement action against an operating entity seeking financial aid.

The proposed rule only affects political subdivisions, which does include nonprofit water supply and sewer corporations. These corporations are member owned and controlled and are not considered to be for-profit small and micro-businesses. Therefore, the commission does not anticipate that any small or micro-businesses will be impacted by provisions in this rulemaking.

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 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 intent of the proposed rule is to implement SB 649, which requires the commission to adopt rules requiring training under certain conditions for recipients of, and the applicants for, certain financial assistance in economically distressed areas. Furthermore, the rulemaking does not meet any of the four applicability requirements listed in §2001.0225(a). Specifically, the proposed rule does not exceed a federal standard because there are no applicable federal standards, exceed an express requirement of state law but rather implement specific state statutes enacted by SB 649, or exceed a requirement of a delegation agreement because there is no applicable delegation agreement. Finally, the proposed rule was not developed solely under the general powers of the commission, but specifically developed to implement SB 649, which requires the commission to establish, by rule a, preenforcement threshold of noncompliance at which the commission may notify the TWDB that an operating entity needs training.

The commission invites public comment regarding the draft regulatory impact analysis determination during the public comment period. Written comments on the draft regulatory impact analysis determination may be submitted to the contact person at the address listed under the SUBMITTAL OF COMMENTS section of this preamble.

TAKINGS IMPACT ASSESSMENT

The commission evaluated the proposed rule and performed a preliminary assessment of whether the rule constitutes a takings under Texas Government Code, Chapter 2007. The specific purpose of this rulemaking is to implement SB 649, which requires the commission to adopt procedural rules requiring training under certain conditions for recipients of and the applicants for certain financial assistance in economically distressed areas. Promulgation and enforcement of the proposed rule will constitute neither a statutory nor a constitutional taking of private real property. Specifically, the subject proposed regulation does not affect a landowner's rights in private real property because this rulemaking does not burden; 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 regulation. There are no burdens imposed on private real property under this rulemaking as the proposed rule neither relates to nor has any impact on the use or enjoyment of private real property.

CONSISTENCY WITH THE COASTAL MANAGEMENT PROGRAM

The commission reviewed the rulemaking and found that the rulemaking is neither identified in the Coastal Coordination Act Implementation Rules, 31 TAC §505.11, relating to Actions and Rules Subject to the Texas Coastal Management Program nor does it affect any action or authorization identified in §505.11. The rulemaking concerns only the determination of preenforcement thresholds of noncompliance and the subsequent appropriate notification. Therefore, the rulemaking is not subject to the Texas Coastal Management Program.

The commission invites public comment regarding the consistency determination during the public comment period. 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.

ANNOUNCEMENT OF HEARING

The commission will hold a public hearing on this proposal in Austin on April 9, 2002 at 10:00 a.m., in Building F, Room 2210 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, commission staff members will be available to discuss the proposal 30 minutes before the hearing and will answer questions before and after the hearing.

Persons with disabilities who have special communication or other accommodation needs who are planning to attend the hearing should contact the Office of Environmental Policy, Analysis, and Assessment at (512) 239-4900. Requests should be made as far in advance as possible.

SUBMITTAL OF COMMENTS

Comments may be submitted to Patricia Durón, 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 2001-052-291-WT. Comments must be received by 5:00 p.m., April 15, 2002. For further information or questions concerning this proposal, please contact Debi Dyer, Policy and Regulations Division, at (512) 239-3972.

STATUTORY AUTHORITY

The new section is proposed under TWC, §5.103 and §5.105, which provide the commission with authority to adopt any rules necessary to carry out its powers and duties under this code and other laws of this state; and TWC, §17.993(c), as adopted by SB 649, 77th Legislature, which requires the commission to establish, by rule a, preenforcement threshold of noncompliance at which the commission may notify the TWDB that an operating entity needs training.

The new section implements SB 649, 77th Legislature, 2001, which requires the commission to adopt procedural rules requiring training under certain conditions for recipients of, and the applicants for, certain financial assistance in economically distressed areas.

§291.145.Preenforcement Threshold of Noncompliance.

(a) Definitions.

(1) Operating Entity--The governing body of a political subdivision, as defined by Texas Water Code, §17.921(3) and by the rules of the Texas Water Development Board (TWDB), responsible for providing water supply and sewer services and the management of its water and sewer system.

(2) Preenforcement Threshold of Noncompliance--The point at which an operating entity needs training because of its history of violations of the commission's rules relating to the financial, managerial, or technical operation of its water or wastewater facilities.

(b) The commission may evaluate whether the managerial, financial, and technical capabilities of an operating entity who is an applicant for, or recipient of, financial assistance from the Economically Distressed Areas Program are adequate to meet program requirements or to remain financially viable. The commission may also evaluate whether an operating entity needs training if the operating entity has a history of compliance problems.

(c) The commission may notify the TWDB that the operating entity needs training if an inspection or other assessment of the water system by the TWDB or commission reveals that the governing body has failed to:

(1) exercise proper care in its fiduciary duties;

(2) sufficiently employ or supervise its employees' work-related activities; or

(3) ensure adequate operation of its physical facilities.

(d) The commission shall notify the TWDB when the commission proposes to assess a penalty against an operating entity. If the commission assesses a penalty against an operating entity in an enforcement action, the enforcement order shall contain a provision requiring that the operating entity receive training as ordered by the TWDB.

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 4, 2002.

TRD-200201299

Stephanie Bergeron

Director, Environmental Law Division

Texas Natural Resource Conservation Commission

Earliest possible date of adoption: April 14, 2002

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


Chapter 335. INDUSTRIAL SOLID WASTE AND MUNICIPAL HAZARDOUS WASTE

The Texas Natural Resource Conservation Commission (commission) proposes amendments to §335.29, Adoption of Appendices by Reference; §335.67, Marking; §335.322, Definitions; and §335.323, Generation Fee Assessment.

BACKGROUND AND SUMMARY OF THE FACTUAL BASIS FOR THE PROPOSED RULES

The primary purpose of the proposed rules is to add three new exemption categories for waste generation fees. The proposed rules would expand the current waste generation fee exemptions found in §335.323 to: 1) characteristically hazardous wastewater transported via hardpiping to a publicly-owned treatment works (POTW) for treatment; 2) Class 1 industrial wastewater transported via hardpiping to a POTW for treatment; and 3) hazardous wastewater generated due to de minimis losses of commercial chemical products at certain facilities and discharged on-site in accordance with a Texas Pollutant Discharge Elimination System (TPDES) permit or transported via hardpiping to a POTW.

These proposed rules are related to a petition for rulemaking filed by Texas Terminal Operators (TTO). The TTO petition requested fee exemptions for certain high volume wastewater generated by terminal operators and discharged via a TPDES permitted outfall or transported off-site via hardpiping to a POTW. Terminal operators provide for-hire bulk loading, unloading, and storage for chemical products. Large volumes of wastewater are generated at terminal operations due to stormwater runoff from containment areas and product loading areas, line flushing, and container rinsing. The commission denied the TTO petition for rulemaking in an order dated April 25, 2001, Docket No. 2001-0280-RUL. The commissioners directed staff to study the issues presented by the petitioners, and the commission later directed staff to initiate a rulemaking with some modification of the exemptions presented in the TTO petition.

The proposed exemptions are consistent with the waste management hierarchy in the Public Policy Concerning Hazardous Waste found in Texas Health and Safety Code (THSC), §361.023. In accordance with THSC, §361.134, the commission may authorize additional fee exemptions if they are consistent with state waste management policy. In reference to "treatment to destroy hazardous characteristics" within the waste management hierarchy, THSC, §361.023(b) states that "on-site destruction is preferred, but shall be evaluated in the context of other relevant factors such as transportation hazard, distribution of risk, quality of destruction, operator capability, and site suitability." In determining whether the fee exemptions are consistent with the waste management hierarchy, the commission finds that transportation of wastewater via hardpiping to a POTW poses a minimal transportation hazard and the quality of destruction at a POTW is equivalent to on-site treatment.

The third category of fee exemption proposed in this rulemaking applies to wastewater regulated as a hazardous waste due to the federal "mixture rule." The federal mixture rule states that any mixture of solid waste and hazardous waste listed in 40 Code of Federal Regulations (CFR) Part 261, Subpart D is a hazardous waste. Federal regulations provide an exception to the mixture rule for wastewater mixed with de minimis losses of commercial chemical products and chemical intermediates listed in 40 CFR §261.33 from manufacturing operations. De minimis losses include losses from normal material handling operations (e.g., spills from the unloading or transfer of materials from bins or other containers, leaks from pipes, valves, or other devices used to transfer materials); minor leaks of process equipment, storage tanks, or containers; leaks from well-maintained pump packings and seals; sample purgings; relief device discharges; discharges from safety showers; rinsing and cleaning of personal safety equipment; and rinsate from empty containers or from containers that are rendered empty by that rinsing. The federal exemption from hazardous waste regulation is based on the economic incentive to minimize loss of product at manufacturing facilities.

The proposed fee exemption for hazardous wastewater generated due to de minimis losses of commercial chemical products from terminal operations is consistent with the federal exemption from the definition of a hazardous waste for wastewater mixed with de minimis losses of commercial chemical products generated by manufacturing facilities. The commission proposes a fee exemption for wastewater mixed with de minimis losses of commercial chemical products at terminal facilities because: 1) terminal operations are closely related to manufacturing facilities (in providing storage of commercial chemical products); and 2) hazardous wastewater mixed with de minimis losses of commercial chemical products generated by terminal operators is similar in composition to hazardous wastewater generated by manufacturing facilities which is exempt from the definition of a hazardous waste (and therefore not subject to fees). The commission does not propose any additional reduction in regulation for these wastes.

The commission proposes the amendment of §335.29, Adoption of Appendices, by reference to incorporate recent amendments to Appendix VII and Appendix VIII in 40 CFR Part 261.

The commission also proposes an amendment to §335.67, Marking, by adding the figure in subsection (b) that describes certain requirements for hazardous waste container labeling, which was inadvertently deleted in a previous rulemaking. The proposed figure requires that generators mark each hazardous waste container of 110 gallons or less with the generator's name and address and manifest document number before transporting the container off-site.

SECTION BY SECTION DISCUSSION

Section 335.29, Adoption of Appendices by Reference, is proposed to be amended to update the Federal Register reference date for amendments to Appendix VII and Appendix VIII in 40 CFR Part 261. This proposed amendment adopts by reference the amendment of federal hazardous waste regulations which added two new hazardous wastes, K174 (wastewater treatment sludges from the production of ethylene dichloride or vinyl chloride monomer (EDC/VCM)) and K175 (wastewater treatment sludges from the production of vinyl chloride monomer using mercuric chloride catalyst in an acetylene-based process), as promulgated in the November 8, 2000 publication of the Federal Register (65 FR 67068). The United States Environmental Protection Agency (EPA) listed these wastes as hazardous based on the criteria set out in 40 CFR §261.11(a)(3) for listing a waste as hazardous.

Section 335.67, Marking, is amended to add the figure in §335.67(b) describing certain requirements for hazardous waste container labeling, which was inadvertently deleted in a previous rulemaking. The proposed figure requires that generators mark each hazardous waste container of 110 gallons or less with the generator's name and address and manifest document number before transporting the container off-site.

Section 335.322, Definitions, is proposed to be amended to add the new definition of terminal operation, to clarify the intended applicability of a newly-proposed fee exemption.

Section 335.323, Generation Fee Assessment, is proposed to be amended to add three new exemption categories for waste generation fees. The proposed rules would expand the current waste generation fee exemptions found in §335.323 to: 1) characteristically hazardous wastewater transported via hardpiping to a POTW for treatment; 2) Class 1 industrial wastewater transported via hardpiping to a POTW for treatment; and 3) hazardous wastewater generated due to de minimis losses of commercial chemical products at certain facilities and discharged on-site in accordance with a TPDES permit or transported via hardpiping to a POTW.

FISCAL NOTE: COSTS TO STATE AND LOCAL GOVERNMENT

John Davis, Technical Specialist with Strategic Planning and Appropriations, has determined that for each year of the first five-year period the proposed amendments are in effect, there will be fiscal implications, which are anticipated to be significant, on the agency's revenues received from waste generation fees. Units of state and local government that operate facilities that generate hazardous or Class 1 industrial wastewater may benefit from the waste generation fee exemptions proposed by this rulemaking. Units of state and local government that do not generate hazardous or Class I industrial wastewater would not be affected by the proposed amendments.

This rulemaking is intended to expand the current waste generation fee exemptions by adding three new exemption categories for waste generation fees. Categories proposed for exemption include hazardous wastewater transported via hardpiping to a POTW for treatment, Class I industrial wastewater transported via hardpiping to a POTW for treatment, and hazardous wastewater generated at terminal operations due to de minimis losses of commercial chemical products that are treated on-site or off-site via hardpiping to a POTW. The requirement for treatment on-site or off-site via hardpiping to a POTW is considered to be a more protective waste management practice compared to shipping waste off-site via road or rail transportation. Facilities that meet the exemption criteria could claim the exemption from annual waste generation fees.

Examples of facilities that could take advantage of the exemption include chemical manufacturing facilities, terminal facilities, refineries, and other industries that generate hazardous or Class I industrial wastewater if they meet the specific terms of the proposed exemptions. The vast majority of potential entities who qualify for the waste generation fee exemptions are anticipated to be from industry rather than units of state or local government. However, there may be some units of government that could avail themselves of the proposed exemptions. Analysis of commission data indicates at least 19 waste generators located within the Houston Ship Channel/Deer Park area would be eligible for the exemptions; however, none of these facilities are owned and operated by units of state or local government.

The savings for units of government that qualify for exemptions would depend on the type and amount of wastewater generated. Sites that generate hazardous wastewater pay no fee if they generate less than one ton of waste; $100 if they generate from 1 - 50 tons; and $2.00 per ton if they generate over 50 tons of waste. In order to take advantage of the exemptions, units of government would either have to already be using management practices consistent with the requirements of the exemptions, or initiate new practices that would include constructing a pipeline to a POTW. The commission anticipates that units of state and local government that consider changing their management practices to qualify for these exemptions will take the potential facility upgrade costs into consideration.

The proposed amendments are anticipated to result in significant fiscal implications for the commission by lowering the amount of revenues received from waste generation fees. The commission has identified 19 industrial sites in the Houston Ship Channel/Deer Park area that would be eligible for the exemptions. Assuming all of these sites qualified for exemptions from annual waste generation fees, the loss in revenues to the commission is estimated to be approximately $400,000 a year. This reduction in revenues would begin in Fiscal Year 2004, since the waste generation fees for 2002 are not actually invoiced until September 2003. This estimate only considers the 19 known sites that would be immediately eligible for the exemptions. The potential loss in revenues could be much greater than the estimate presented in this fiscal note. Other facilities may qualify for the proposed exemptions. It is also possible that there are other facilities operating in the state that could at some point in the future change their waste management practices (i.e., construct a pipeline to a POTW) and qualify for the proposed fee exemptions. The commission does not know how many additional facilities would be eligible for the proposed fee exemptions. The commission does not know how many additional facilities would be eligible for the proposed fee exemptions.

PUBLIC BENEFITS AND COSTS

Mr. Davis has also determined that for each of the first five years the proposed amendments are in effect, the public benefit anticipated as a result of implementing the proposed amendments will be potentially increased environmental protection by providing an economic incentive for sites that generate hazardous wastewater to utilize more protective management practices. The fee exemptions would only be available to certain operations that treat hazardous of Class 1 wastewater either on-site or off-site via hardpiping to a POTW. Both of these treatment methods are considered to be more protective of the environment compared to shipping waste off-site via road or rail transportation.

This rulemaking is intended to expand the current waste generation fee exemptions by adding three new exemption categories for waste generation fees. Categories proposed for exemption include hazardous wastewater transported via hardpiping to a POTW for treatment, Class I industrial wastewater transported via hardpiping to a POTW for treatment, and hazardous wastewater generated at terminal operations due to de minimis losses of commercial chemical products that are treated on-site or off-site via hardpiping to a POTW. Facilities that meet the exemption criteria could qualify for these exemptions from annual waste generation fees.

Examples of facilities that could take advantage of the exemption include chemical manufacturing facilities, terminal facilities, refineries, and other industries that generate hazardous or Class I industrial wastewater if they meet the specific terms of the proposed exemptions. Analysis of commission data indicates at least 19 waste generators located within the Houston Ship Channel/Deer Park area would be immediately eligible for the exemptions.

The savings for individuals and businesses that are granted exemptions would depend on the type and amount of wastewater generated. Sites that generate hazardous wastewater pay no fee if they generate less than one ton of waste; $100 if they generate from 1 - 50 tons; and $2.00 per ton if they generate over 50 tons of waste. Class I wastewater generators will pay no fee if they generate less than one ton of waste; $50 if they generate from 1 - 100 tons; and $.50 per ton if they generate over 100 tons of waste. Assuming all 19 of the identified waste generation were granted exemptions from annual waste generation fees, the combined savings to these facilities would be approximately $400,000 a year. In order to take advantage of the fee exemptions, facility operators would either have to already be using management practices consistent with the requirements of the exemptions, or initiate new practices that would include constructing a pipeline to a POTW. Other facilities may qualify for the proposed exemptions. It is also possible that there are other eligible facilities operating in the state that could at some point in the future change their waste management practices (i.e., construct a pipeline to a POTW) and qualify for the proposed fee exemptions. The commission does not know how many additional facilities would be eligible for the proposed fee exemptions. The commission anticipates that individuals and businesses that consider changing their management practices to qualify for these exemptions will take the potential facility upgrade costs into consideration.

SMALL BUSINESS AND MICRO-BUSINESS ASSESSMENT

There are no adverse fiscal implications anticipated for small or micro-businesses due to implementation of the proposed amendments, which are intended to expand the current waste generation fee exemptions by adding three new exemption categories for waste generation fees.

Categories proposed for exemption include hazardous wastewater transported via hardpiping to a POTW for treatment, Class I industrial wastewater transported via hardpiping to a POTW for treatment, and hazardous wastewater generated at terminal operations due to de minimis losses of commercial chemical products that are treated on-site or off-site via hardpiping to a POTW. Facilities that meet the exemption criteria could qualify for these exemptions from annual waste generation fees.

Examples of facilities that could take advantage of the exemption include chemical manufacturing facilities, terminal facilities, refineries, and other industries that generate hazardous or Class I industrial wastewater if they meet the specific terms of the proposed exemptions. There are no known small or micro-businesses that would be eligible for the exemptions proposed in this rulemaking. The commission does not anticipate a large number of small or micro-businesses, if any, would be eligible for the proposed waste generation fee exemptions, because the type of eligible facilities are anticipated to be primarily large industrial sites.

If there are small or micro-businesses that operate eligible facilities, the savings would be the same as for larger industrial businesses. Sites that generate hazardous wastewater pay no fee if they generate less than one ton of waste; $100 if they generate from 1 - 50 tons and $2.00 per ton if they generate over 50 tons of waste. Class I wastewater generators will pay no fee if they generate less than one ton of waste; $50 if they generate from 1 - 100 tons; and $.50 per ton if they generate over 100 tons of waste. In order to take advantage of the exemptions, facility operators would either have to already be using management practices consistent with the requirements of the exemptions, or initiate new practices that would include constructing a pipeline to a POTW. The commission anticipates that small and micro-businesses that consider changing their management practices to qualify for these exemptions will take the potential facility upgrade costs into consideration.

The following is an analysis of the cost savings per employee for small or micro-businesses that qualify for an exemption from annual waste generation fees proposed by this rulemaking. Small and micro-businesses are defined as having fewer than 100 or 20 employees respectively. A small business that generates a 1,000 tons of wastewater annually would save approximately $20 per employee. A micro-business that generates a 1,000 tons of wastewater annually would save approximately $100 per employee.

LOCAL EMPLOYMENT IMPACT STATEMENT

The commission has 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. 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 amendments to Chapter 335 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 primary purpose of the proposed rules is to expand the availability of exemptions of fees assessed to generators of hazardous and industrial solid waste. The proposed rules also amend references to EPA regulations which added two new hazardous wastes, K174 and K175, as promulgated in the November 8, 2000 publication of the Federal Register (65 FR 67068) and amend hazardous waste container labeling requirements which were inadvertently deleted in a previous rulemaking.

Furthermore, the proposed rules do not meet any of the four applicability requirements listed in §2001.0225(a). Section 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. The proposed rules do not exceed a standard set by federal law, an express requirement of state law, a requirement of a delegation agreement, nor adopt a rule solely under the general powers of the agency.

The proposed rules adopt by reference federal regulations adding two new hazardous wastes and do not exceed a standard set by federal law. The proposed rules also expand available exemptions from fees assessed to generators of hazardous and industrial solid waste. Federal regulations applicable to state hazardous waste programs do not address fees assessed for hazardous and industrial solid waste. The proposed rules also do not exceed an express requirement of state law. Texas Health and Safety Code, §361.134 authorizes the commission to promulgate rules that establish exemptions from fees assessed to hazardous and industrial solid waste generators. In addition, the proposed rules do not exceed a requirement of a delegation agreement. And finally, the proposed rules are not under the general rulemaking powers of the agency, but are proposed under an express authority of THSC, §361.024 and §361.134.

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

TAKINGS IMPACT ASSESSMENT

The commission evaluated these proposed rules and performed a preliminary assessment of whether Texas Government Code, Chapter 2007 is applicable. The primary purpose of the proposed rules is to expand the availability of certain exemptions from the assessment of waste generation fees and would not burden private real property. The proposed rules also adopt by reference the amendment of federal hazardous waste regulations which added two new hazardous wastes, K174 and K175, as promulgated in the November 8, 2000 publication of the Federal Register (65 FR 67068) and add a figure for hazardous waste container labeling requirements which was inadvertently deleted in a previous rulemaking. The purpose of the proposed amendments to §335.29 and §335.67 is to ensure that Texas' state hazardous waste rules are equivalent to the federal regulations, thus enabling the state to retain authorization to operate its own hazardous waste program in lieu of the corresponding federal program. These proposed amendments are an action that is reasonably taken to fulfill an obligation mandated by federal law, which is exempt under Texas Government Code, §2007.003(b)(4).

Nevertheless, the commission further evaluated these proposed rules and performed a preliminary assessment of whether these proposed rules constitute a taking under Texas Government Code, Chapter 2007. The following is a summary of that evaluation and preliminary assessment. The primary purpose of these proposed rules is to expand the exemptions available from fees assessed to generators of hazardous and solid waste. The proposed rules would substantially advance this purpose by exempting from waste generation fees: 1) characteristically hazardous wastewaters hardpiped to a POTW for treatment; 2) Class I industrial wastewaters hardpiped to a POTW for treatment; and 3) hazardous wastewater generated due to de minimis losses of chemical products at certain facilities treated and discharged according to permit or at a POTW.

Promulgation and enforcement of these proposed rules would be neither a statutory nor a constitutional taking of private real property. The subject proposed rules 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 which would otherwise exist in the absence of the rules. The proposed rules primarily expand the availability of exemptions for waste fee assessments and would, therefore, reduce financial burdens on waste generators.

CONSISTENCY WITH THE COASTAL MANAGEMENT PROGRAM

The commission has prepared a consistency determination for the proposed rules under 31 TAC §505.22, and has found that the proposed rules are consistent with the applicable Texas Coastal Management Program (CMP) goals and policies. The proposed rules are subject to the CMP and must be consistent with applicable goals and policies which are found in 31 TAC §501.12 and 501.14. The CMP goal applicable to the rules is the goal to protect, preserve, restore, and enhance the diversity, quality, quantity, functions, and values in Coastal Natural Resource Areas (CNRAs). The proposed rules do not govern any of the activities that are within the designated coastal zone management area or otherwise specifically identified under the Texas Coastal Management Act or related rules of the Coastal Coordination Council. Interested persons may submit comments on the consistency of the proposed rules with the CMP during the public comment period.

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. Comments must be received by 5:00 p.m., April 15, 2002, and should reference Rule Log Number 2001-103-335-WS. For further information, please contact Michael Bame, Policy and Regulations Division at (512) 239-5658.

Subchapter A. INDUSTRIAL SOLID WASTE AND MUNICIPAL HAZARDOUS WASTE IN GENERAL

30 TAC §335.29

STATUTORY AUTHORITY

The amendment is proposed under Texas Water Code (TWC), §5.103, which provides the commission authority to adopt any rules necessary to carry out its powers and duties under this code and other laws of this state; §5.105, which authorizes the commission to establish and approve all general policy of the commission by rule; THSC, §361.024, which authorizes the commission to adopt rules consistent with Chapter 361; and §361.134(f), which authorizes the commission to adopt rules that exempt generators of industrial solid or hazardous waste from the assessment of waste generation fees if consistent with state waste management policy.

The proposed amendment implements THSC, Chapter 361, Solid Waste Disposal Act. Section 361.002 provides that it is the state's policy and the purpose of Chapter 361 to safeguard the health, welfare, and physical property of the people and to protect the environment by controlling the management of solid waste, including accounting for hazardous waste that is generated. Section 361.134 requires the commission to assess a fee for the generation of industrial solid waste or hazardous waste and provides that the commission may authorize exemptions by rule from waste generation fees if consistent with sate waste management policy.

§335.29.Adoption of Appendices by Reference.

The following appendices contained in 40 Code of Federal Regulations Part 261 are adopted by reference as amended and adopted through April 1, 1987, and as further amended as indicated in each paragraph:

(1) (No change.)

(2) Appendix II - Method 1311 Toxicity Characteristic Leaching Procedure (TCLP) (as amended through August 31, 1993[ , ] (58 FR 46040));

(3) Appendix III - Chemical Analysis Test Methods (as amended through August 31, 1993[ , ] (58 FR 46040));

(4) Appendix VII - Basis for Listing Hazardous Waste (as amended through November 8, 2000 (65 FR 67068) [ August 6, 1998, (63 FR 42110) ] );

(5) Appendix VIII - Hazardous Constituents (as amended through November 8, 2000 (65 FR 67068) [ May 4, 1998, (63 FR 24596) ] ); and

(6) Appendix IX - Wastes Excluded Under §260.20 and §260.22 (as amended through October 19, 1999 [ , ] (64 FR 56256)).

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 1, 2002.

TRD-200201295

Stephanie Bergeron

Director, Environmental Law Division

Texas Natural Resource Conservation Commission

Earliest possible date of adoption: April 14, 2002

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


Subchapter C. STANDARDS APPLICABLE TO GENERATORS OF HAZARDOUS WASTE

30 TAC §335.67

STATUTORY AUTHORITY

The amendment is proposed under Texas Water Code (TWC), §5.103, which provides the commission authority to adopt any rules necessary to carry out its powers and duties under this code and other laws of this state; §5.105, which authorizes the commission to establish and approve all general policy of the commission by rule; THSC, §361.024, which authorizes the commission to adopt rules consistent with Chapter 361; and §361.134(f), which authorizes the commission to adopt rules that exempt generators of industrial solid or hazardous waste from the assessment of waste generation fees if consistent with state waste management policy.

The proposed amendment implements THSC, Chapter 361, Solid Waste Disposal Act. Section 361.002 provides that it is the state's policy and the purpose of Chapter 361 to safeguard the health, welfare, and physical property of the people and to protect the environment by controlling the management of solid waste, including accounting for hazardous waste that is generated.

§335.67.Marking.

(a) (No change.)

(b) Before transporting or offering hazardous waste for transportation off-site, a generator must mark each container of 110 gallons or less used in such transportation with the following words and information displayed in accordance with the requirements of 49 CFR §172.304: HAZARDOUS WASTE - Federal Law Prohibits Improper Disposal. If found, contact the nearest police or public safety authority or the EPA.

Figure: 30 TAC §335.67(b)

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 1, 2002.

TRD-200201296

Stephanie Bergeron

Director, Environmental Law Division

Texas Natural Resource Conservation Commission

Earliest possible date of adoption: April 14, 2002

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


Subchapter J. HAZARDOUS WASTE GENERATION, FACILITY AND DISPOSAL FEE SYSTEM

30 TAC §335.322, §335.323

STATUTORY AUTHORITY

The amendments are proposed under Texas Water Code (TWC), §5.103, which provides the commission authority to adopt any rules necessary to carry out its powers and duties under this code and other laws of this state; §5.105, which authorizes the commission to establish and approve all general policy of the commission by rule; THSC, §361.024, which authorizes the commission to adopt rules consistent with Chapter 361; and §361.134(f), which authorizes the commission to adopt rules that exempt generators of industrial solid or hazardous waste from the assessment of waste generation fees if consistent with state waste management policy.

The proposed amendments implement THSC, Chapter 361, Solid Waste Disposal Act. Section 361.002 provides that it is the state's policy and the purpose of Chapter 361 to safeguard the health, welfare, and physical property of the people and to protect the environment by controlling the management of solid waste, including accounting for hazardous waste that is generated. Section 361.134 requires the commission to assess a fee for the generation of industrial solid waste or hazardous waste and provides that the commission may authorize exemptions by rule from waste generation fees if consistent with sate waste management policy.

§335.322.Definitions.

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

(1) - (11) (No change.)

(12) Hazardous waste fuel--A hazardous waste or blend of hazardous wastes to be burned for energy recovery which, for the purposes of assessment of fees under this section, is not subject to regulation under 40 Code of Federal Regulations (CFR) Part 264 (or Part 265) Subpart O, relating to incinerators.

(13) Industrial solid waste--A solid waste meeting the definition of industrial solid waste under §335.1 of this title [ (relating to Definitions) ].

(14) - (20) (No change.)

(21) Terminal operations--Nonmanufacturing facilities that provide storage and transfer services for commercial chemical products or chemical intermediates listed in 40 CFR §261.33.

§335.323.Generation Fee Assessment.

(a) (No change.)

(b) Wastewaters are exempt from assessment under the following conditions.

(1) Wastewaters containing hazardous wastes which are designated as hazardous solely because they exhibit a hazardous characteristic as defined in 40 Code of Federal Regulations (CFR) Part 261, Subpart C, concerning characteristics of hazardous waste, and are rendered non-hazardous by neutralization or other treatment on-site in totally enclosed treatment facilities or wastewater treatment units for which no permit is required under §335.2 of this title (relating to Permit Required) or §335.41 of this title (relating to Purpose, Scope, and Applicability) are exempt from the assessment of hazardous waste generation fees.

(2) (No change.)

(3) Wastewaters containing hazardous wastes which are designated as hazardous solely because they exhibit a hazardous characteristic as defined in 40 CFR Part 261, Subpart C, concerning characteristics of hazardous waste, and are transported via direct hard pipe connection to a publicly- owned treatment works (POTW) and rendered nonhazardous by neutralization or other treatment are exempt from the assessment of hazardous waste generation fees.

(4) Wastewaters classified as Class 1 industrial solid wastes because they meet the criteria for a Class 1 waste under the provisions of §335.505 of this title and are transported via direct hard pipe connection to a POTW for treatment and no longer meet the criteria for a Class 1 waste are exempt from the assessment of waste generation fees.

(5) Wastewaters which are designated as hazardous waste solely under 40 CFR §261.3(a)(2)(iv) that are generated at terminal operations due to de minimis losses of commercial chemical products and chemical intermediates listed in 40 CFR §261.33 and are treated on-site or off- site at a POTW are exempt from the assessment of hazardous waste generation fees, provided that any discharge to a POTW is via a direct hardpipe connection. For the purposes of this section, de minimis losses shall have the meaning described in 40 CFR §261.3(a)(2)(iv)(D).

(6) [ (3) ] These exemptions or adjustments in fee assessment in no way limit a generator's obligation to report such waste generation or waste management activity under any applicable provision of this chapter.

(7) [ (4) ] A wastewater stream treated to meet a different waste classification is subject to only one assessment under this section.

(c) - (f) (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 March 1, 2002.

TRD-200201297

Stephanie Bergeron

Director, Environmental Law Division

Texas Natural Resource Conservation Commission

Earliest possible date of adoption: April 14, 2002

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