TITLE 30.ENVIRONMENTAL QUALITY

Part 1. TEXAS COMMISSION ON ENVIRONMENTAL QUALITY

Chapter 25. ENVIRONMENTAL TESTING LABORATORY ACCREDITATION AND CERTIFICATION

The Texas Commission on Environmental Quality (commission or TCEQ) proposes amendments to §25.9 and §25.62.

BACKGROUND AND SUMMARY OF THE FACTUAL BASIS FOR THE PROPOSED RULES

The purpose of the proposed rules is to refer to more recent laboratory accreditation standards adopted by the National Environmental Laboratory Accreditation Conference (NELAC) and to expand the sources of proficiency test samples for drinking water laboratories seeking or holding certifications issued by the commission.

SECTION BY SECTION DISCUSSION

Proposed §25.9, Standards for Environmental Testing Laboratory Accreditation, would replace the phrase "Chapters 3, 4, and 5, adopted July 2002, and Chapters 1, 2, and 6, adopted June 2003" with "approved June 2003" to refer to the most recent laboratory accreditation standards adopted by NELAC.

Proposed §25.62(d), Proficiency Test Sample Analyses, would replace the phrase "Proficiency test samples shall be purchased from a provider approved by the National Institute for Standards and Technology, if available" with "Proficiency test samples, if available, shall be purchased from a National Environmental Laboratory Accreditation Program-designated provider or a provider approved by the National Institute of Standards and Technology." The change would expand the number of potential sources of proficiency test samples for drinking water laboratories seeking or holding certifications issued by the commission.

FISCAL NOTE: COSTS TO STATE AND LOCAL GOVERNMENT

Jeffrey 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 expected for the agency or other units of state and local government as a result of administration or enforcement of the proposed rules.

The proposed amendments update NELAC standards currently referenced in existing rules and expand the sources of proficiency test samples for drinking water laboratories seeking or holding certifications issued by the commission.

Current §25.9 refers to standards approved by NELAC July 2002 and June 2003. The reference to NELAC standards adopted July 2002 is out-of-date. The proposed change brings the reference to NELAC standards up-to-date. There are no fiscal implications anticipated from this proposed change. Further, the change is necessary for the agency's accreditation program to be consistent with National Environmental Laboratory Accreditation Program standards, as required by Texas Water Code (TWC), §5.802.

Current §25.62 requires drinking water laboratories seeking or holding certifications issued by the commission to purchase proficiency test samples, if available, from providers approved by the National Institute of Standards and Technology. The proposed change allows these laboratories to purchase proficiency test samples from National Environmental Laboratory Accreditation Program- designated providers, as well as providers approved by the National Institute of Standards and Technology. There are no fiscal implications anticipated from this proposed change.

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 enforcement of and compliance with the proposed rules would be compliance with state law and an expanded number of potential sources of proficiency test samples for drinking water laboratories seeking or holding certifications issued by the commission.

SMALL BUSINESS AND MICRO-BUSINESS ASSESSMENT

No adverse fiscal implications are anticipated as a result of implementation of the proposed rules for small or 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 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. 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 rulemaking updates the agency's standards for accreditation and expands the number of potential sources of proficiency test samples for drinking water laboratories seeking or holding certifications issued by the commission. Thus, these rules do not meet the definition of a "major environmental rule." These rules are not a major environmental rule and do not meet any of the four applicability requirements that apply to a major environmental rule. Under Texas Government Code, §2001.0225, the proposed rules do not exceed a standard set by federal law or 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. The proposed rules do not exceed a standard set by federal law nor exceed the requirement of a delegation agreement because there is no federal authority regarding laboratory accreditation.

These revisions do not adopt a rule solely under the general powers of the commission and do not exceed an express requirement of state law. The requirements that would be implemented through these rules are expressly defined under TWC, Chapter 5, Subchapter R, which requires the commission to enact rules governing the accreditation of environmental laboratories.

TAKINGS IMPACT ASSESSMENT

The commission's preliminary assessment indicates that Texas Government Code, Chapter 2007, does not apply to these proposed amendments because the proposed amendments are not a taking as defined in Chapter 2007, nor are they a constitutional taking of private real property. The purpose of the proposed amendments is to update NELAC standards currently referenced in existing rules.

Promulgation and enforcement of these proposed rules will not affect private real property, which is the subject of the rules, because the proposed amendments will neither restrict or limit the owner's right to the property, nor cause a reduction of 25% or more in the market value of the property. The proposed rules only apply to environmental testing laboratories that submit data to the commission for use in its decisions. Property values will not be decreased because the proposed amendments will not limit the use of real property. Thus, these proposed rules will not constitute a taking under Texas Government Code, Chapter 2007.

CONSISTENCY WITH THE COASTAL MANAGEMENT PROGRAM

The commission reviewed this rulemaking and found that the proposal is not a rulemaking subject to the Texas Coastal Management Program (CMP) because the rulemaking is neither identified in 31 TAC §505.11, nor will it affect any action or authorization identified in §505.11. Therefore, the proposal is not subject to the CMP.

SUBMITTAL OF COMMENTS

Comments may be submitted to Joyce Spencer, MC 205, Texas Register Team, Office of Legal Services, P.O. Box 13087, Austin, Texas 78711-3087 or faxed to (512) 239-4808. Comments must be received by 5:00 p.m., April 24, 2006, and should reference Rule Project Number 2006-014-025-CE. Copies of the proposal may be obtained from the commission's Web site at http://www.tceq.state.tx.us/nav/rules/propose_adopt.html . For further information, please contact Stephen Stubbs, Compliance Support Division, at (512) 239-6343.

Subchapter B. ENVIRONMENTAL TESTING LABORATORY ACCREDITATION

30 TAC §25.9

STATUTORY AUTHORITY

The amendment is proposed under the general authority granted in TWC, §5.013, which establishes the general jurisdiction of the commission over other areas of responsibility as assigned to the commission under the TWC and other laws of the state; §5.103 and §5.105, which authorize the commission to adopt rules and policies necessary to carry out its responsibilities and duties under the TWC; and §5.802 and §5.805, which require the agency to adopt rules for the administration of the laboratory accreditation program.

The proposed amendment implements TWC, §§5.013, 5.103, 5.105, 5.802, and 5.805.

§25.9.Standards for Environmental Testing Laboratory Accreditation.

Accreditation must be based on an environmental testing laboratory's conformance to National Environmental Laboratory Accreditation Conference standards approved [ , Chapters 3, 4, and 5, adopted July 2002, and Chapters 1, 2, and 6, adopted ] June 2003 and the requirements of this chapter.

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 9, 2006.

TRD-200601534

Stephanie Bergeron Perdue

Acting Deputy Director, Environmental Law Division

Texas Commission on Environmental Quality

Earliest possible date of adoption: April 23, 2006

For further information, please call: (512) 239-5017


Subchapter C. ENVIRONMENTAL TESTING LABORATORY CERTIFICATION

30 TAC §25.62

STATUTORY AUTHORITY

The amendment is proposed under the general authority granted in TWC, §5.013, which establishes the general jurisdiction of the commission over other areas of responsibility as assigned to the commission under the TWC and other laws of the state; §5.103 and §5.105, which authorize the commission to adopt rules and policies necessary to carry out its responsibilities and duties under the TWC; and §5.802 and §5.805, which require the agency to adopt rules for the administration of the laboratory accreditation program.

The proposed amendment implements TWC, §§5.013, 5.103, 5.105, 5.802, and 5.805.

§25.62.Proficiency Test Sample Analyses.

(a) - (c) (No change.)

(d) Proficiency test samples , if available, shall be purchased from a National Environmental Laboratory Accreditation Program-designated provider or a provider approved by the National Institute of [ for ] Standards and Technology [ , if available ].

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 9, 2006.

TRD-200601535

Stephanie Bergeron Perdue

Acting Deputy Director, Environmental Law Division

Texas Commission on Environmental Quality

Earliest possible date of adoption: April 23, 2006

For further information, please call: (512) 239-5017


Chapter 37. FINANCIAL ASSURANCE

The Texas Commission on Environmental Quality (commission) proposes amendments to §§37.271, 37.371, and 37.8011.

BACKGROUND AND SUMMARY OF THE FACTUAL BASIS FOR THE PROPOSED RULES

House Bill (HB) 2131, 79th Legislature, 2005, amended Texas Health and Safety Code (THSC), Chapter 361, Subchapter C, by adding §361.0855 to allow political subdivisions or quasi governmental entities to rely on their own financial strength to demonstrate financial assurance. Under prior law, a municipality that owned a municipal solid waste (MSW) landfill could satisfy the requirements to demonstrate financial assurance by using a local government financial test; however, other political subdivisions, such as local government corporations and conservation and reclamation districts, could not.

SECTION BY SECTION DISCUSSION

Administrative changes are proposed throughout the rules to be consistent with Texas Register requirements and agency guidelines.

The proposed amendment to §37.271, Local Government Financial Test, expands the types of bonds that can be used by MSW landfills to pass the local government financial test. Bonds that can be used to pass the local government financial test now include revenue bonds and certificates of obligation as well as general obligation bonds.

The proposed amendment to §37.371, Local Government Financial Test, adds revenue bonds and certificates of obligation to the letter signed by the local government's chief financial officer required as part of the local government financial test.

The proposed amendment to §37.8011, Definitions, expands the definition of "Local government" by adding a phrase that clarifies that local government includes both a local government corporation created under Texas Transportation Code, Chapter 431, to act on behalf of local government and a conservation and reclamation district created under Texas Constitution, Article XVI, §59. The proposed amendment also adds the definition of "Bonds." To make the definition section easier to read, the commission proposes to divide the section into paragraph (1) for "Local government" and paragraph (2) for "Bonds."

The commission is not recommending any change to Chapter 37 to incorporate THSC, §361.0855 statutory requirements that a local government pass a financial test, demonstrate that its outstanding bonds be unsecured, and meet a minimum rating because these requirements already exist under §37.271.

The commission proposes no change to the rules related to the language about the submission of a local government's demonstration of financial assurance. The requirement under THSC, §361.0855, that a local government must demonstrate financial assurance under this section before the initial receipt of waste is covered under §37.31, which requires that a financial assurance mechanism must be in effect before the initial receipt of waste. The requirement under THSC, §361.0855, that a local government must demonstrate financial assurance under this section as soon as practicable for operating facilities does not need to be included in the proposed rules because all facilities operating on the effective date of THSC, §361.0855, are required to provide financial assurance under existing state and federal requirements.

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 amendments are in effect, no fiscal implications are anticipated for the agency. However, the proposed rules are anticipated to result in cost savings for some local government corporations and conservation and reclamation districts.

The proposed rules implement HB 2131 by providing an additional financial assurance mechanism for local government corporations and conservation and reclamation districts that own or operate MSW landfills. The proposed rules broaden the definition of "Local government" and thus allow local government corporations and conservation and reclamation districts to rely on their own financial strength to demonstrate financial assurance for MSW landfills.

At this time, there are six permitted MSW facilities that are owned or operated by a local government corporation or a conservation and reclamation district. These facilities could see annual savings for fees currently paid to provide financial assurance instruments. The annual fees of financial instruments are generally 1% - 3% of the total estimated costs for closure, post closure, and any corrective action activities for the facility. The current financial assurance required for the six affected facilities is estimated to be $15,992,969. Cost savings in annual fees spent by the six facilities for financial assurance instruments is estimated to be between $160,000 - $480,000. No fiscal implications are anticipated for the agency to implement 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 proposed rule changes will be compliance with state law.

The proposed amendments provide an additional financial assurance option for political subdivisions or quasi-governmental entities and are therefore not expected to have fiscal implications for businesses that own or operate MSW landfills.

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 amendments provide an additional financial assurance option for political subdivisions or quasi-governmental entities and are therefore not expected to have fiscal implications for small or micro-businesses that own or operate MSW landfills.

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 does not meet the definition for a "major environmental rule" as defined in that statute. A "major environmental rule" means a rule that is specifically intended to protect the environment or to 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 37 are intended to implement new legislation to allow certain governmental entities other methods to meet financial assurance requirements. In fact, the rulemaking revises the commission's rules in a manner that could provide a benefit to the economy while maintaining the same level of protection of the environment and public health and safety. Because the existing rules require financial assurance for protection of human health and the environment, this rulemaking does not decrease the protection of the environment or human health.

The 79th Legislature passed HB 2131, which amended THSC, Chapter 361, Subchapter C, by adding §361.0855. The law expands the definitions of "Bonds" and "Local governments" in relation to MSW landfills owned and operated by local governments using a financial test for financial assurance. Under prior law, a municipality that owned an MSW landfill could satisfy the requirements to demonstrate financial assurance by using a local government financial test; however, it did not state whether other political subdivisions, such as local government corporations and conservation and reclamation districts, could demonstrate financial assurance in this same manner. In order to implement HB 2131, the proposed rulemaking expands the definition of "Local government" to include these political subdivisions, making them eligible to use a local government financial test to demonstrate financial assurance and defining the types of bonds that may be used as part of the local government financial test. Therefore, it is not anticipated that the rulemaking will 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 fact, the changes should benefit the economy and productivity by producing annual savings for fees currently paid to provide financial assurance instruments. The commission concludes that the rulemaking does not meet the definition of a major environmental rule.

Furthermore, the proposed rulemaking does not meet any of the four applicability requirements specified in Texas Government Code, §2001.0225(a). Texas Government Code, §2001.0225(a) applies only 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.

In this case, the proposed amendments to Chapter 37 do not meet any of these criteria. First, federal authority (40 Code of Federal Regulations (CFR) Part 258, Subpart G) on the issue of financial assurance has been delegated to the state, and the Texas Legislature has enacted statutes that are consistent with the federal requirements. Both state and federal statutes require financial assurance for MSW facilities (THSC, §361.085(e) and §361.0855, and 40 CFR Part 258). The proposed amendments to Chapter 37 are intended to implement new legislation to allow certain governmental entities other methods to meet financial assurance requirements. Therefore, the proposed rulemaking does not exceed a standard set by federal regulations because the rules implement new state statutes that are consistent with the federal regulations. Second, the proposed rulemaking carries out the general state statutes that require financial assurance, and does not exceed an express requirement of state law. Third, this proposal does not exceed the requirements of a delegation agreement between the state and an agency of the federal government to implement a state or federal program. The proposed amendments are consistent with the corresponding federal financial assurance requirements. Fourth, the commission proposes these amendments under new specific state law, in THSC, §361.0855. Therefore, the commission does not propose the amendments solely under the commission's general powers.

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 conducted a takings impact assessment for these proposed rules in accordance with Texas Government Code, Chapter 2007. The principal intent of this proposal is to amend Chapter 37 to meet new statutory requirements by revising and clarifying sections relating to financial assurance requirements.

This proposal implements THSC, §361.0855, which was created by HB 2131. The commission's preliminary assessment indicates that Texas Government Code, Chapter 2007 does not apply to the proposed rulemaking because the proposal is an action that is reasonably taken to fulfill an obligation mandated by state law, which is exempt under Texas Government Code, §2007.003(b)(4). Chapter 37 implements the state requirements found in THSC, §361.085 and §361.0855.

Nevertheless, the commission further evaluated the proposed rulemaking and performed a preliminary assessment of whether the proposed rulemaking constitutes a takings under Texas Government Code, Chapter 2007. Promulgation and enforcement of the proposed amendments would be neither a statutory nor a constitutional taking because they do not affect private real property. Specifically, the proposed rules will not burden private real property, restrict or limit the owner's right to property, or reduce its value by 25% or more beyond what will otherwise exist in the absence of these regulations. Rather, the proposed amendments only revise and clarify financial assurance requirements. Therefore, the proposed rulemaking will not constitute a taking under Texas Government Code, Chapter 2007.

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), relating to Actions and Rules Subject to the Texas Coastal Management Program (CMP), nor will they affect any action/authorization identified in Coastal Coordination Act Implementation Rules, 31 TAC §505.11(a)(6). Therefore, the proposed rulemaking is not subject to the CMP.

SUBMITTAL OF COMMENTS

Comments may be submitted to Lola Brown, 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 2005-075-037-AS. Comments must be received by 5:00 p.m., April 24, 2006. For further information, please contact Rob Norris, Revenue Section, at (512) 239-6239.

Subchapter C. FINANCIAL ASSURANCE MECHANISMS FOR CLOSURE, POST CLOSURE, AND CORRECTIVE ACTION

30 TAC §37.271

STATUTORY AUTHORITY

The amendment is proposed under Texas Water Code (TWC), §5.103 and §5.105, which provide the commission with the authority to adopt any rules necessary to carry out its powers and duties under the laws of the state. The amendment is also proposed under THSC, Texas Solid Waste Disposal Act, §361.011, which provides the commission with the authority to manage municipal solid waste; §361.024, which provides the commission with the authority to adopt rules necessary to carry out its power and duties, and to establish standards of operation for the management of solid waste; and §361.085, which provides the commission with the authority to require financial assurance demonstrations for solid waste and permitted facilities. Together, these statutes authorize the commission to adopt any rules necessary to carry out its powers and duties under the laws of Texas and to establish and approve all general policy of the commission.

The amendment is also proposed in accordance with THSC, §361.0855, implementing HB 2131, 79th Legislature, 2005.

§37.271.Local Government Financial Test.

An owner or operator may satisfy the requirements of financial assurance for closure, post closure, or corrective action by establishing a local government financial test or a local government financial test and local government guarantee , which conforms to the requirements of this section, in addition to the requirements specified in Subchapters A and B of this chapter (relating to General Financial Assurance Requirements ; and Financial Assurance Requirements for Closure, Post Closure, and Corrective Action). An owner or operator who satisfies the requirements of paragraphs (1) - (3) [ (1), (2), and (3) ] of this section may demonstrate financial assurance up to the amount specified in paragraph (4) of this section.

(1) In order to satisfy the financial component of the test, the owner or operator must meet the criteria of either subparagraph (A) or (B) of this paragraph and in addition must meet certain general conditions outlined in subparagraph (C) of this paragraph.

(A) The owner or operator must satisfy each of the following financial ratios based on its [ it's ] most recent audited annual financial statement:

(i) - (ii) (No change.)

(B) If the owner or operator:

(i) of a facility other than a municipal solid waste landfill has outstanding, rated, general obligation bonds that are not secured by insurance, a letter of credit, or other collateral or guarantee, those bonds must have a current rating of Aaa, Aa, A, or Baa, as issued by Moody's, or AAA, AA, A, or BBB, as issued by Standard and Poor's on all such general obligation bonds; or

(ii) of a municipal solid waste landfill subject to Chapter 330 of this title (relating to Municipal Solid Waste) has bonds as defined in Subchapter R of this chapter (relating to Financial Assurance for Municipal Solid Waste Facilities) and those bonds are not secured by insurance, a letter of credit, or other collateral or guarantee, those bonds must have a current rating of Aaa, Aa, A, or Baa, as issued by Moody's, or AAA, AA, A, or BBB, as issued by Standard and Poor's on all such financial obligations.

[ (B) If the owner or operator has outstanding, rated, general obligation bonds that are not secured by insurance, a letter of credit, or other collateral or guarantee, it must have a current rating of Aaa, Aa, A, or Baa, as issued by Moody's, or AAA, AA, A or BBB, as issued by Standard and Poor's on all such general obligation bonds.]

(C) (No change.)

(D) The following terms used in this section are defined as follows.

(i) - (iii) (No change.)

(iv) Cash and current investments is the sum of "Cash," "Cash Equivalents" (e.g., bank deposits, very short-term debt securities, money market funds), and "Current Investments" (e.g., interest or dividend bearing securities that are expected to be held for less than one year), in the General Fund, Special Revenue Funds, Debt Service Fund, Enterprise Funds, and Internal Service Funds, as reported on the Comprehensive Annual Financial Report's (CAFR) Combined Balance Sheet. Note that cash, cash equivalents, and current investments are included in this term even if they are: pooled; with a fiscal agent; or restricted, provided that the assets belong to the General Fund, Special Revenue Funds, Debt Service Fund, Enterprise Funds, and Internal Service Funds. Specifically excluded from this definition are accounts receivable, retirement assets, real property, fixed assets, and other non-current assets, as well as any assets (including cash) in Capital Project Funds . [ ; and ]

(v) (No change.)

(2) In order to satisfy the public notice component of the test, the local government owner or operator must place a reference to the closure, post closure, or corrective action costs assured through the financial test into its next CAFR after the effective date of this section or prior to the initial receipt of waste at the facility, whichever is later. Disclosure must include the nature and source of closure, post closure, or corrective action requirements; the reported liability at the balance sheet date; the estimated total closure or post closure cost remaining to be recognized; the percentage of landfill capacity used to date; and the estimated landfill life in years. A reference to corrective action costs must be placed in the CAFR not later than 120 days after the corrective action remedy has been selected in accordance with the requirements of §330.415 [ §330.238 ] of this title (relating to Implementation of the Corrective Action Program). For the first year the financial test is used to assure costs at a particular facility, the reference may instead be placed in the operating record until issuance of the next available CAFR if timing does not permit the reference to be incorporated into the most recently issued CAFR or budget. For closure and post closure costs, conformance with Government Accounting Standards Board Statement 18 assures compliance with the public notice component.

(3) (No change.)

(4) The portion of the closure, post closure, or corrective action costs for which an owner or operator can assure under this paragraph is determined as follows.

(A) (No change.)

(B) If the local government owner or operator assures other environmental obligations through a financial test, including, but not limited to, those associated with hazardous waste treatment, storage, and disposal facilities under Chapter 335 of this title (relating to Industrial Solid Waste and Municipal Hazardous Waste) and 40 Code of Federal Regulations (CFR) Parts 264 and 265, petroleum underground storage tank facilities under Chapter 334 of this title (relating to Underground and Aboveground Storage Tanks) and 40 CFR Part 280, underground injection control facilities under Chapter 331 of this title (relating to Underground Injection Control) and 40 CFR §144.62 [ 144.62 ], polychlorinated biphenyl storage facilities under 40 CFR Part 761, it must add those costs to the closure, post closure, or corrective action costs it seeks to assure under this paragraph. The total that may be assured must not exceed 43% of the local government's total annual revenue.

(5) (No change.)

(6) A local government must satisfy the requirements of the financial test at the close of each fiscal year. If the local government owner or operator no longer meets the requirements of paragraphs (1) - (4) [ (1), (2), (3), and (4) ] of this section, the local government must send notice to the executive director of intent to establish alternate financial assurance. This notice must be sent within 90 days after the end of the fiscal year for which the year-end financial data shows that the local government no longer meets the requirements. The local government must provide alternate financial assurance within 120 days after the end of such fiscal year.

(7) - (8) (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 9, 2006.

TRD-200601526

Stephanie Bergeron Perdue

Acting Deputy Director, Office of Legal Services

Texas Commission on Environmental Quality

Earliest possible date of adoption: April 23, 2006

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


Subchapter D. WORDING OF THE MECHANISMS FOR CLOSURE, POST CLOSURE, AND CORRECTIVE ACTION

30 TAC §37.371

STATUTORY AUTHORITY

The amendment is proposed under TWC, §5.103 and §5.105, which provide the commission with the authority to adopt any rules necessary to carry out its powers and duties under the laws of the state. The amendment is also proposed under THSC, Texas Solid Waste Disposal Act, §361.011, which provides the commission with the authority to manage municipal solid waste; §361.024, which provides the commission with the authority to adopt rules necessary to carry out its power and duties, and to establish standards of operation for the management of solid waste; and §361.085, which provides the commission with the authority to require financial assurance demonstrations for solid waste and permitted facilities. Together, these statutes authorize the commission to adopt any rules necessary to carry out its powers and duties under the laws of Texas and to establish and approve all general policy of the commission.

The amendment is also proposed in accordance with THSC, §361.0855, implementing HB 2131, 79th Legislature, 2005.

§37.371.Local Government Financial Test.

A letter signed by the local government's chief financial officer, as specified in §37.271 of this title (relating to Local Government Financial Test) must be worded as specified in the Local Government Financial Test in this section, except that the instructions in parenthesis are to be replaced with the relevant information and the parenthesis deleted.

Figure: 30 TAC §37.371

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 9, 2006.

TRD-200601527

Stephanie Bergeron Perdue

Acting Deputy Director, Office of Legal Services

Texas Commission on Environmental Quality

Earliest possible date of adoption: April 23, 2006

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


Subchapter R. FINANCIAL ASSURANCE FOR MUNICIPAL SOLID WASTE FACILITIES

30 TAC §37.8011

STATUTORY AUTHORITY

The amendment is proposed under TWC, §5.103 and §5.105, which provide the commission with the authority to adopt any rules necessary to carry out its powers and duties under the laws of the state. The amendment is also proposed under THSC, Texas Solid Waste Disposal Act, §361.011, which provides the commission with the authority to manage municipal solid waste; §361.024, which provides the commission with the authority to adopt rules necessary to carry out its power and duties, and to establish standards of operation for the management of solid waste; and §361.085, which provides the commission with the authority to require financial assurance demonstrations for solid waste and permitted facilities. Together, these statutes authorize the commission to adopt any rules necessary to carry out its powers and duties under the laws of Texas and to establish and approve all general policy of the commission.

The amendment is also proposed in accordance with THSC, §361.0855, implementing HB 2131, 79th Legislature, 2005.

§37.8011.Definitions.

Definitions for terms that appear throughout this subchapter may be found in this section, in Subchapter A of this chapter (relating to General Financial Assurance Requirements), as well as Chapter 330 of this title (relating to Municipal Solid Waste).

(1) Local government--A city, town, county, district, association, or other public body (including an intermunicipal agency of two or more of these listed [ the foregoing ] entities) created by or under state law; an Indian tribe or an authorized Indian tribal organization having jurisdiction over solid waste management ; a local government corporation created under Texas Transportation Code, Chapter 431, to act on behalf of a local government; or a conservation and reclamation district created under Texas Constitution, Article XVI, §59 . This definition includes a special district created under state law.

(2) Bonds--Financial obligations issued by a local government, including general obligation bonds, revenue bonds, and certificates of obligation.

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 9, 2006.

TRD-200601528

Stephanie Bergeron Perdue

Acting Deputy Director, Office of Legal Services

Texas Commission on Environmental Quality

Earliest possible date of adoption: April 23, 2006

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


Subchapter W. FINANCIAL ASSURANCE FOR QUARRIES

30 TAC §§37.9160, 37.9165, 37.9170, 37.9175, 37.9180, 37.9185, 37.9190, 37.9195, 37.9200, 37.9205, 37.9210, 37.9215, 37.9220, 37.9225, 37.9230, 37.9235, 37.9240

The Texas Commission on Environmental Quality (TCEQ or commission) proposes new §§37.9160, 37.9165, 37.9170, 37.9175, 37.9180, 37.9185, 37.9190, 37.9195, 37.9200, 37.9205, 37.9210, 37.9215, 37.9220, 37.9225, 37.9230, 37.9235, and 37.9240.

BACKGROUND AND SUMMARY OF THE FACTUAL BASIS FOR THE PROPOSED RULES

Senate Bill (SB) 1354, 79th Legislature, 2005, amended Texas Water Code (TWC), Chapter 26, by adding new Subchapter M, Water Quality Protection Areas; specifically §§26.551 - 26.562. The statute addresses permitting, financial responsibility, inspections, water quality sampling, enforcement, cost recovery, and interagency cooperation with regard to quarry operations. The requirements of the statute are applicable to a pilot program in the John Graves Scenic Riverway, a stretch of the Brazos River watershed downstream of the Morris Shepard Dam on the Possum Kingdom Reservoir, and extending to the county line between Parker and Hood Counties.

Chapter 37, new Subchapter W, implements §26.553(f)(2) and §26.554. Subchapter W establishes financial assurance requirements for the John Graves Scenic Riverway pilot program. The purpose of the financial assurance requirements is to assure that adequate funds will be readily available to cover the costs of reclamation and restoration associated with quarries. Financial assurance is important for two reasons. First, it assures environmental needs related to quarries and the John Graves Scenic Riverway will be addressed using funds arranged by the responsible party. Second, it prevents delays in addressing environmental needs by assuring funds that are readily available.

A corresponding rulemaking is published in this issue of the Texas Register that includes the addition of new Subchapter H, Regulation of Quarries in the John Graves Scenic Riverway to 30 TAC Chapter 311, Watershed Protection.

SECTION BY SECTION DISCUSSION

New Subchapter W is proposed to be added to Chapter 37 to provide financial assurance requirements relating to reclamation and restoration related to quarries in the John Graves Scenic Riverway. The new subchapter also outlines the administrative procedures and requirements relating to these types of financial assurance. It is intended to be used in coordination with provisions of Chapter 311 and with certain provisions of Chapter 37, Subchapters A and B.

Proposed new §37.9160, Applicability, identifies who is subject to this subchapter and those entities that are exempt.

Proposed new §37.9165, Definitions, defines terms that are used throughout this subchapter.

Proposed new §37.9170, Financial Assurance Requirements for Reclamation and Restoration, indicates that owners and operators required to demonstrate financial assurance for reclamation or restoration must comply with certain general financial assurance requirements in Chapter 37, Subchapters A and B. Subsection (a)(1) - (4) outlines portions of Chapter 37, Subchapter B, that will not apply to owners and operators of quarries. Subsection (a)(4) specifies that §37.161 applies to quarry owners and operators, except that mechanism and wording requirements of a standby trust fund are found in this subchapter rather than Chapter 37, Subchapter B. Subsection (b) indicates that the amount of financial assurance must at least equal the current cost estimate. Required financial assurance amounts are further described in Chapter 311, Subchapter H. These amounts are reflective of the cost estimates referred to in this subchapter. Subsection (c) requires certain wordings for mechanisms and provides that the executive director will determine the acceptability of any mechanism submitted. The timing for providing the mechanism is described in subsection (d). For ease of administration and cost to the owner or operator, subsection (e) allows the use of a single financial assurance mechanism for both reclamation and restoration as long as the total mechanism amount is not less than the total required for each purpose. Continuous financial assurance until release by the executive director is provided for in subsection (f). Subsection (g) describes the conditions under which financial assurance mechanisms would be called upon. Finally, subsection (h) sets out the requirements for the standby trust agreement that must be established in conjunction with surety bonds and irrevocable letters of credit.

Proposed new §37.9175, Financial Assurance Mechanisms for Reclamation, allows the use of a trust agreement, a surety bond guaranteeing payment, an irrevocable standby letter of credit, insurance, a financial test, or a corporate guarantee as mechanisms for meeting financial assurance requirements for reclamation.

Proposed new §37.9180, Financial Assurance Mechanisms for Restoration, allows the use of a trust agreement, a surety bond guaranteeing payment, an irrevocable standby letter of credit, insurance, a financial test, or a corporate guarantee as mechanisms for meeting financial assurance requirements for restoration.

Proposed new §37.9185, Trust Fund Requirements, describes the requirements for a trust fund used to demonstrate financial assurance for reclamation or restoration.

Proposed new §37.9190, Trust Agreement Wording, describes the wording required for a trust agreement evidencing establishment of a trust fund.

Proposed new §37.9195, Surety Bond Guaranteeing Payment Requirements, describes the requirements for a payment surety bond used to demonstrate financial assurance for reclamation or restoration.

Proposed new §37.9200, Payment Bond Wording, describes the wording required for a payment surety bond used to demonstrate financial assurance for reclamation or restoration.

Proposed new §37.9205, Irrevocable Standby Letter of Credit Requirements, describes the requirements for a letter of credit used to demonstrate financial assurance for reclamation or restoration.

Proposed new §37.9210, Irrevocable Standby Letter of Credit Wording, describes the wording required for a letter of credit used to demonstrate financial assurance for reclamation or restoration.

Proposed new §37.9215, Insurance Requirements, describes the requirements for insurance used to demonstrate financial assurance for reclamation or restoration.

Proposed new §37.9220, Certificate of Insurance Wording, describes the wording required for a certificate of insurance used to demonstrate financial assurance for reclamation or restoration.

Proposed new §37.9225, Financial Test Requirements, describes the financial and reporting requirements for entities choosing to self-insure by using a financial test as a means of demonstrating financial assurance for reclamation or restoration.

Proposed new §37.9230, Financial Test Wording, describes the wording of the document that must be submitted by the chief financial officer of an entity choosing to use the financial test to demonstrate financial assurance for reclamation or restoration.

Proposed new §37.9235, Corporate Guarantee Requirements, describes the requirements for a higher tiered parent corporation choosing to use a corporate guarantee on behalf of a quarry owner or operator to demonstrate financial assurance for reclamation or restoration.

Proposed new §37.9240, Corporate Guarantee Wording, describes the wording required of a corporate guarantee used to demonstrate financial assurance for reclamation or restoration.

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 rules are in effect, no significant fiscal implications are anticipated for the agency or other units of state or local government. However, fiscal implications, which may be significant, are anticipated for up to 16 rock quarry facilities currently operating in the John Graves Scenic Riverway area.

The proposed rules implement SB 1354, which amended TWC, Chapter 26. The bill addresses permitting, financial responsibility, inspections, water quality sampling, enforcement, cost recovery, and interagency cooperation with regard to quarry operations in the John Graves Scenic Riverway. The John Graves Scenic Riverway is a stretch of the Brazos River watershed downstream of the Morris Shepard Dam on the Possum Kingdom Reservoir in Palo Pinto County, Texas, and extending to the county line between Parker and Hood Counties, Texas. The rules would add new Subchapter W in Chapter 37. New Subchapter W would add financial assurance requirements relating to reclamation and restoration for quarries operating within the John Graves Scenic Riverway. The rules would require that the owner or operator of a quarry located in the John Graves Scenic Riverway establish and maintain financial assurance for the restoration of a water body that is affected by an unauthorized discharge. Ultimately, the costs of restoration would depend on the site-specific characteristics of the quarry, the release of pollutants, and the nature of the resulting impacts to the receiving water. The financial assurance would cover the costs of corrective action and restoration performed by an independent contractor and include design and engineering fees, costs of repairing failed or impaired structural controls, costs of soil stabilization and erosion control measures necessary to prevent additional releases, and where practicable, removal of excess silt, sediment, rocks, and debris from the affected water body. Facilities that would be required to obtain the new general permit under the proposed rules would be required to meet the financial assurance requirements for restoration activities.

The rules would also require that the owner or operator of a quarry located in the John Graves Scenic Riverway establish and maintain financial assurance for reclamation of the quarry. Ultimately, the costs of reclamation would depend on the site-specific characteristics of the quarry, topography, geology, and the proposed final land use. Costs of reclamation include design and engineering fees; removal or final stabilization of all materials, waste, structures, temporary roads/railroads, and equipment; backfilling, regrading, and recontouring; slope stabilization; and the establishment of vegetation, wildlife habitat, drainage patterns, and permanent control structures. The proposed rules would expire September 1, 2025, as required by SB 1354. Facilities that would be required to obtain the individual permit under the proposed rules would be required to meet the proposed financial assurance requirements for both reclamation and restoration activities.

The proposed rules would have no significant fiscal impact for the agency. A slight increase in the number of financial assurance mechanisms to review, track, and maintain is expected. The additional workload would be absorbed using current agency resources. It is projected that the rulemaking would result in no additional costs to other units of state and local government.

PUBLIC BENEFITS AND COSTS

Mr. Perry also determined that for each year of the first five years the proposed new rules are in effect, the public benefit anticipated from the changes seen in the proposed rules will be improved water quality due to financial assurance that quarries that have unauthorized discharges would have funding for restoration costs for unauthorized discharges. The rulemaking would also provide financial assurance that the quarries would have funding for reclamation of the site.

The rulemaking would require financial assurance to guarantee the restoration of the affected waterway in the event of an unauthorized discharge and for reclamation of the site once quarry operations cease. It is estimated that financial assurance would cost the affected quarries between 3% and 5% per year of the costs to restore and/or reclaim the site. It is estimated that, on average, cost estimates providing the basis for the amount of financial assurance required would be $100,000 for restoration and $200,000 for reclamation. Therefore, to meet minimum financial assurance requirements, it is estimated to cost between $3,000 and $15,000 per year. Reclamation is specific to sites located 200 to 1,500 feet from a navigable water body in the John Graves Scenic Riverway.

SMALL BUSINESS AND MICRO-BUSINESS ASSESSMENT

Adverse fiscal implications are anticipated for small or micro-businesses as a result of the proposed rulemaking. 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. It is not known how many of the estimated 16 facilities are small or micro-businesses, but for those that are, there could be costs associated with the proposed financial assurance requirements.

Small or micro-businesses would be subject to the same requirements for compliance as larger businesses. Estimated costs would range from $3,000 to $15,000. Costs for a small business would range from $30 to $150 per employee. For a micro-business, costs could range from $150 to $750 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

The commission reviewed the proposed rulemaking in light of the regulatory analysis requirements of Texas Government Code, §2001.0225, and determined that the rules do not meet the definition of a "major environmental rule." Under Texas Government Code, §2001.0225, "major environmental rule" means a rule the specific intent of which is to protect the environment or reduce risks to human health from environmental exposure, and that may adversely affect in a material way the economy, a sector of the economy, productivity, competition, jobs, the environment, or the public health and safety of the state or a sector of the state. The proposed rules are intended to implement SB 1354, relating to the regulation of ongoing mining and quarrying within the newly created John Graves Scenic Riverway. The proposed rules in Chapter 37 would clarify financial assurance requirements for quarries located in the John Graves Scenic Riverway. The proposed rules would not adversely affect, in a material way, the economy, a section 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 rules would simply clarify financial assurance requirements for quarries located in the John Graves Scenic Riverway. The proposed rules do not meet the definition of a major environmental rule as defined in the Texas Government Code.

Furthermore, the proposed rulemaking action does not meet any of the four applicable requirements listed in Texas Government Code, §2001.0225(a). Texas Government Code, §2001.0225(a), only applies to a major environmental rule adopted by an agency, 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.

In this case, the proposed rules do not meet any of these applicability requirements. First, the proposed rules are specifically required to implement SB 1354. Second, the proposed rules do not exceed a requirement of state law, because they are being proposed to implement SB 1354. Third, the rules do not exceed an express 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. Fourth, the commission does not propose these rules solely under the general powers of the agency, but rather under the authority of SB 1354, which directs the commission to implement rules under TWC, Chapter 26. These rules do not meet the criteria for a major environmental rule as defined by Texas Government Code, §2001.0225.

The commission invites public comment regarding this draft regulatory impact analysis determination.

TAKINGS IMPACT ASSESSMENT

The commission evaluated this proposed rulemaking action and performed a preliminary analysis of whether this action would constitute a takings under Texas Government Code, Chapter 2007. The proposed new rules in Chapter 37 clarify financial assurance requirements for quarries located in the John Graves Scenic Riverway. The promulgation and enforcement of the rules will not affect private real property in a manner that would require compensation to private real property owners under the United States Constitution or the Texas Constitution. The proposed rules also will not affect private real property in a manner that restricts or limits an owner's right to the property that would otherwise exist in the absence of the governmental action. Consequently, this proposal does not meet the definition of a takings under Texas Government Code, §2007.002(5). Therefore, the proposed rules will 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 rulemaking and found that the rules are neither identified in Coastal Coordination Act Implementation Rules, 31 TAC §505.11(b)(2), relating to Actions and Rules Subject to the Coastal Management Program, nor will it 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.

ANNOUNCEMENT OF HEARING

A public hearing on this proposal will be held in Mineral Wells on April 6, 2006, at 6:30 p.m. at the Mineral Wells City Hall Annex, Council Chambers, 115 Southwest First Street. The hearing will be structured for the receipt of oral or written comments by interested persons. Individuals may present oral statements when called upon in order of registration. There will be no open discussion during the hearing; however, an agency staff member will be available to discuss the proposal 30 minutes prior to the hearing and will answer questions before and after the hearing.

Persons who have special communication or other accommodation needs who are planning to attend the hearing should contact the Office of Public Assistance at (512) 239-4000. Requests should be made as far in advance as possible.

SUBMITTAL OF COMMENTS

Comments may be submitted to Joyce Spencer, MC 205, Texas Register Team, 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 2005-051-037-PR. Comments must be received no later than 5:00 p.m., April 24, 2006. Copies of the proposed rules can be obtained from the commission's Web site at http://www.tceq.state.tx.us/nav/rules/propose_adopt.html . For further information, please contact Kimberly Wilson, Water Quality Division, (512) 239-4644.

STATUTORY AUTHORITY

The new sections are proposed under TWC, §5.013, which establishes the general jurisdiction of the commission over other areas of responsibility as assigned to the commission under the TWC and other laws of the state; §5.102, which establishes the commission's general authority necessary to carry out its jurisdiction; §5.103 and §5.105, which authorize the commission to adopt rules and policies necessary to carry out its responsibilities and duties under TWC, §5.013; §5.120, which states that the commission shall administer the law so as to promote the judicious use and maximum conservation and protection of the quality of the environment and the natural resources of the state; §26.011, which provides the commission with authority to adopt any rules necessary to carry out its powers, duties, and policies and to protect water quality in the state; and §26.027, which authorizes the commission to issue permits and amendments to permits for the discharge of waste or pollutants into or adjacent to water in the state. Rulemaking authority is expressly granted to the commission to adopt rules under TWC, Chapter 26, as amended by SB 1354, §2.

The proposed new rules implement SB 1354, which creates TWC, Chapter 26, new Subchapter M. SB 1354, §2, expressly requires the commission to adopt rules adequate to protect the water resources in a water quality protection area for inclusion in any authorization, including an individual or general permit.

§37.9160.Applicability.

This subchapter applies to an owner or operator required to provide financial assurance under Chapter 311 of this title (relating to Watershed Protection). This subchapter does not apply to state or federal governmental entities whose debts and liabilities are the debts and liabilities of a state or the United States. This subchapter establishes requirements and mechanisms for demonstrating financial assurance for reclamation and restoration.

§37.9165.Definitions.

Definitions for terms that appear throughout this subchapter may be found in this section, in Subchapter A of this chapter (relating to General Financial Assurance Requirements), as well as Chapter 311, Subchapter H of this title (relating to Regulation of Quarries in the John Graves Scenic Riverway), except where the following terms are used in this subchapter, the following definition applies: Current cost estimate--The amount of financial assurance required under Chapter 311, Subchapter H of this title.

§37.9170.Financial Assurance Requirements for Reclamation and Restoration.

(a) In addition to the requirements of this subchapter, owners and operators required to demonstrate financial assurance for reclamation or restoration must comply with §§37.141, 37.151, and 37.161 of this title (relating to Increase in Current Cost Estimate, Decrease in Current Cost Estimate, and Establishment of a Standby Trust) and Subchapter A of this chapter (relating to General Financial Assurance Requirements), except:

(1) §37.21 of this title (relating to Wording and Approval of Mechanisms);

(2) §37.31 of this title (relating to Submission of Documents);

(3) §37.52 of this title (relating to Use of a Universal Financial Assurance Mechanism for Multiple Facilities and Program Areas); and

(4) §37.161 of this title.

(b) The owner or operator of each facility required by this chapter to provide financial assurance for reclamation or restoration must establish financial assurance in an amount no less than the current cost estimate.

(c) The mechanisms submitted for compliance with this subchapter must be worded as they appear in this subchapter. The executive director shall determine the acceptability of the mechanisms submitted.

(d) An owner or operator required by this subchapter to provide financial assurance must submit an originally signed financial assurance mechanism with the application for a general or individual permit required under Chapter 311 of this title (relating to Watershed Protection). The signed financial assurance mechanism must be effective at the time it is submitted.

(e) Owners or operators may use a single financial assurance mechanism as specified in this subchapter for both reclamation and restoration. The amount of the funds available through the mechanism must be no less than the sum of funds that would be available if a separate mechanism had been established and maintained for each individual purpose.

(f) The owner or operator of a facility required by this subchapter to provide financial assurance for reclamation or restoration shall provide continuous financial assurance until the executive director provides written consent to terminate in accordance with §37.61 of this title (relating to Termination of Mechanisms).

(g) The executive director may call on the financial assurance mechanism(s) when an owner or operator who is required to comply with this chapter has:

(1) failed to perform reclamation or restoration when required;

(2) failed to provide an alternate financial assurance mechanism, when required; or

(3) failed to provide continuous financial assurance coverage.

(h) An owner or operator who uses a surety bond or an irrevocable letter of credit to satisfy the requirements of this subchapter shall establish a standby trust. The standby trust must meet the requirements of §37.161 of this title except that the wording of a standby trust agreement must follow §37.9190 of this title (relating to Trust Fund Wording) and the requirements indicated in §37.9185 of this title (relating to Trust Fund Requirements) rather than the citations reflected in §37.161 of this title.

§37.9175.Financial Assurance Mechanisms for Reclamation.

Owners and operators subject to this subchapter may use any of the following financial assurance mechanisms to demonstrate financial assurance for reclamation:

(1) a trust agreement as specified in §37.9185 of this title (relating to Trust Fund Requirements);

(2) a surety bond guaranteeing payment as specified in §37.9195 of this title (relating to Surety Bond Guaranteeing Payment Requirements);

(3) an irrevocable standby letter of credit as specified in §37.9205 of this title (relating to Irrevocable Standby Letter of Credit Requirements);

(4) insurance as specified in §37.9215 of this title (relating to Insurance Requirements);

(5) a financial test as specified in §37.9225 of this title (relating to Financial Test Requirements); or

(6) a corporate guarantee as specified in §37.9235 of this title (relating to Corporate Guarantee Requirements).

§37.9180.Financial Assurance Requirements for Restoration.

Owners and operators subject to this subchapter may use any of the following financial assurance mechanisms to demonstrate financial assurance for restoration:

(1) a trust agreement as specified in §37.9185 of this title (relating to Trust Fund Requirements);

(2) a surety bond guaranteeing payment as specified in §37.9195 of this title (relating to Surety Bond Guaranteeing Payment Requirements);

(3) an irrevocable standby letter of credit as specified in §37.9205 of this title (relating to Irrevocable Standby Letter of Credit Requirements);

(4) insurance as specified in §37.9215 of this title (relating to Insurance Requirements);

(5) a financial test as specified in §37.9225 of this title (relating to Financial Test Requirements); or

(6) a corporate guarantee as specified in §37.9235 of this title (relating to Corporate Guarantee Requirements).

§37.9185.Trust Fund Requirements.

(a) An owner or operator may satisfy the requirements of financial assurance by establishing a fully funded trust that conforms to the requirements of this subchapter and by submitting an originally signed duplicate of the executed trust agreement to the executive director.

(b) The trustee must be an entity that has the authority to act as a trustee and whose trust operations are regulated and examined by a federal or state agency.

(c) The wording of the trust agreement must be identical to the wording specified in §37.9190(a) of this title (relating to Trust Agreement Wording), including a formal certification of acknowledgment as specified in §37.9190(b) of this title.

(d) Schedule A of the trust agreement as specified in §37.9190(a) of this title must be updated within 60 days after an approved change in the amount of the current cost estimate.

(e) A fully funded trust requires that the initial payment into the trust fund be at least equal to the current cost estimate, or when a combination of mechanisms are used in accordance with §37.41 of this title (relating to Use of Multiple Financial Assurance Mechanisms), the initial payment plus the amount of the combined mechanism(s) must be at least equal to the current cost estimate. A receipt from the trustee for the initial payment must be submitted by the owner or operator to the executive director with the originally signed duplicate of the trust agreement.

(f) After the initial payment for a fully funded trust, whenever the current cost estimate changes, the owner or operator must compare the new estimate with the trustee's most recent annual valuation of the trust fund. If the value of the fund is less than the amount of the new estimate, the owner or operator, within 30 days after the change in the current cost estimate, must either deposit an amount into the fund so that its value after this deposit at least equals the amount of the current cost estimate, or obtain an additional financial assurance mechanism as specified in this subchapter to cover the difference.

(g) If the value of the trust fund is greater than the total amount of the current cost estimate, the owner or operator may submit a written request to the executive director for release of the amount in excess of the current cost estimate.

(h) Within 60 days after receiving a request from the owner or operator for release of funds as specified in subsection (g) of this section, the executive director shall instruct the trustee to release to the owner or operator such funds as the executive director specifies in writing.

(i) An owner or operator or any other person authorized by the executive director to perform reclamation at the quarry or restoration related to the quarry, may request reimbursement expenditures for reclamation at the quarry or restoration related to the quarry by submitting itemized bills to the executive director. The request shall include an explanation of the expenses and all applicable itemized bills. The owner or operator may request reimbursements for partial reclamation or restoration only if sufficient funds are remaining in the trust fund to cover the maximum remaining costs for reclamation at the quarry or restoration related to the quarry. After receiving bills for reclamation or restoration activities, the executive director shall instruct the trustee to make reimbursement in such amounts as the executive director specifies in writing, if the executive director determines that the partial or final reclamation or restoration expenditures are in accordance with the approved reclamation or restoration plan activities, or are otherwise justified. If the executive director has reason to believe that the cost of reclamation at the quarry or restoration related to the quarry will be greater than the value of the trust fund, the executive director may withhold reimbursement of such amounts as deemed prudent until it is determined, in accordance with Subchapters A and B of this chapter (relating to General Financial Assurance Requirements and Financial Assurance Requirements for Closure, Post Closure, and Corrective Action) that the owner or operator is no longer required to maintain financial assurance for reclamation or restoration.

(j) If an owner or operator substitutes other financial assurance as specified in this section for all or part of the trust fund, the owner or operator may submit a written request to the executive director for release of the amount in excess of the current cost estimate covered by the trust fund.

§37.9190.Trust Agreement Wording.

(a) A trust agreement for reclamation or restoration, as specified in §37.9185 of this title (relating to Trust Fund Requirements), must be worded as specified in the Trust Agreement in this subsection, except that the instructions in parenthesis are to be replaced with the relevant information and the parenthesis deleted.

Figure: 30 TAC §37.9190(a)

(b) The Certification of Acknowledgment in this subsection is the certification of acknowledgment that must accompany the trust agreement for a trust fund as specified in §37.9185 of this title.

Figure: 30 TAC §37.9190(b)

§37.9195.Surety Bond Guaranteeing Payment Requirements.

(a) An owner or operator may satisfy the requirements of financial assurance by obtaining a surety bond that conforms to the requirements of this subchapter and by submitting an originally signed surety bond to the executive director.

(b) The surety company issuing the bond must, at a minimum, be among those listed as acceptable sureties on federal bonds in Circular 570 of the United States Department of the Treasury.

(c) The wording of the surety bond must be identical to the wording specified in §37.9200 of this title (relating to Payment Bond Wording).

(d) The bond must guarantee that the owner or operator shall:

(1) fund the standby trust fund as required in §37.161 of this title (relating to Establishment of a Standby Trust) in an amount equal to the penal sum of the bond before the beginning of final reclamation at the quarry or restoration related to the quarry;

(2) fund the standby trust fund as required in §37.161 of this title in an amount equal to the penal sum within 15 days after a written directive by the executive director or commission to begin reclamation or restoration, or within 15 days after an order to begin final reclamation or restoration is issued by the United States district court or other court of competent jurisdiction; or

(3) provide alternate financial assurance as specified in this subchapter, and obtain the executive director's written approval of the assurance provided, within 90 days after receipt by both the owner or operator and the executive director of a notice of cancellation of the bond from the surety.

(e) Under the terms of the bond, the surety shall become liable on the bond obligation when the owner or operator fails to perform as guaranteed by the bond.

(f) The penal sum of the bond must be in an amount at least equal to the current cost estimate, except as provided in §§37.41, 37.51, or 37.9170 of this title (relating to Use of Multiple Financial Assurance Mechanisms, Use of a Financial Assurance Mechanism for Multiple Facilities, and Financial Assurance Requirements for Reclamation and Restoration).

(g) Under the terms of the bond, the surety may cancel the bond by sending notice of cancellation by certified mail to the owner or operator and to the executive director. Cancellation may not occur, however, during the 120 days beginning on the date of receipt of the notice of cancellation by both the owner or operator and the executive director, as evidenced by the return receipts.

§37.9200.Payment Bond Wording.

A surety bond guaranteeing payment for reclamation or restoration, as specified in §37.9195 of this title (relating to Surety Bond Guaranteeing Payment Requirements), must be worded as specified in the Payment Bond in this section, except that the instructions in parenthesis are to be replaced with the relevant information and the parenthesis deleted.

Figure: 30 TAC §37.9200

§37.9205.Irrevocable Standby Letter of Credit Requirements.

(a) An owner or operator may satisfy the requirements of financial assurance by obtaining an irrevocable standby letter of credit that conforms to the requirements of this subchapter and submit an originally signed irrevocable standby letter of credit to the executive director.

(b) The financial institution issuing the irrevocable standby letter of credit shall be an entity that has the authority to issue irrevocable standby letters of credit and whose operations are regulated and examined by a federal or state agency.

(c) The wording of the irrevocable standby letter of credit must be identical to the wording specified in §37.9210 of this title (relating to Irrevocable Standby Letter of Credit Wording).

(d) The originally signed irrevocable standby letter of credit must be accompanied by a letter from the owner or operator referring to the irrevocable standby letter of credit by number, issuing institution, and date, and providing the following information for each quarry:

(1) the permit number;

(2) name and physical and mailing addresses of the quarry; and

(3) the amount of funds assured for reclamation or restoration by the irrevocable standby letter of credit.

(e) The letter of credit must be irrevocable and issued for a period of at least one year. The irrevocable standby letter of credit must provide that the expiration date shall be automatically extended for a period of at least one year unless, at least 120 days before the current expiration date, the issuing institution notifies both the owner or operator and the executive director by certified mail of a decision not to extend the expiration date. Under the terms of the irrevocable standby letter of credit, the 120 days shall begin on the date when both the owner or operator and the executive director have received the notice, as evidenced by the return receipts.

(f) The irrevocable standby letter of credit must be issued in an amount at least equal to the current cost estimate, except as provided in §§37.41, 37.51, or 37.9170 of this title (relating to Use of Multiple Financial Assurance Mechanisms, Use of a Financial Assurance Mechanism for Multiple Facilities, and Financial Assurance Requirements for Reclamation and Restoration).

(g) Following a determination that the owner or operator has failed to perform reclamation or restoration in accordance with the reclamation or restoration plan, other applicable requirements of the permit(s), or written directive by the executive director or commission or that the owner or operator has failed to perform reclamation at the quarry or restoration related to the quarry in accordance with the permit, other applicable requirements, or written directive by the executive director or commission, the executive director may draw on the irrevocable standby letter of credit.

(h) If the owner or operator does not establish alternate financial assurance as specified in this subchapter and obtain written approval of such alternate assurance from the executive director within 90 days after receipt by both the owner or operator and the executive director of a notice from the issuing institution that it has decided not to extend the irrevocable standby letter of credit beyond the current expiration date, the executive director shall draw on the irrevocable standby letter of credit. The executive director may delay the drawing if the issuing institution grants an extension of the term of the letter of credit. During the last 30 days of any such extension, the executive director shall draw on the irrevocable standby letter of credit if the owner or operator has failed to provide alternate financial assurance as specified in this subchapter and obtain written approval of such assurance from the executive director.

(i) Upon termination, in accordance with §37.61 of this title (relating to Termination of Mechanisms), the executive director shall return the irrevocable standby letter of credit to the issuing institution.

§37.9210.Irrevocable Standby Letter of Credit Wording.

An irrevocable standby letter of credit for reclamation or restoration, as specified in §37.9205 of this title (relating to Irrevocable Standby Letter of Credit Requirements), must be worded as specified in the Irrevocable Standby Letter of Credit in this section, except that the instructions in parenthesis are to be replaced with the relevant information and the parenthesis deleted.

Figure: 30 TAC §37.9210

§37.9215.Insurance Requirements.

(a) An owner or operator may satisfy the requirements of financial assurance by obtaining insurance that conforms to the requirements of this subchapter and submitting an originally signed certificate to the executive director.

(b) At a minimum, the insurer must be licensed to transact the business of insurance, or eligible to provide insurance as an excess or surplus lines insurer, in one or more states.

(c) The wording of the certificate of insurance must be identical to the wording specified in §37.9220 of this title (relating to Certificate of Insurance Wording).

(d) The insurance policy must be issued for a face amount at least equal to the current cost estimate for reclamation or restoration, except when a combination of mechanisms are used in accordance with §37.41 and §37.9170 of this title (relating to Use of Multiple Financial Assurance Mechanisms and Financial Assurance Requirements for Reclamation and Restoration). Actual payments by the insurer shall not change the face amount, although the insurer's future liability shall be lowered by the amount of the payments.

(e) The insurance policy must guarantee that funds shall be available to provide for reclamation at the quarry or restoration related to the quarry. The policy shall also guarantee that once reclamation at the quarry or restoration related to the quarry begins, the issuer shall be responsible for paying out funds, up to an amount equal to the face amount of the policy, upon the direction of the executive director, to such party or parties as the executive director specifies.

(f) An owner or operator or any other person authorized to perform reclamation or restoration may request reimbursement for expenditures for reclamation at the quarry or restoration related to the quarry by submitting itemized bills to the executive director. The request shall include an explanation of the expenses and all applicable itemized bills. The owner or operator may request reimbursement for partial reclamation at the quarry or restoration related to the quarry only if the remaining value of the policy is sufficient to cover the maximum remaining costs of reclamation at the quarry or restoration related to the quarry. Within 60 days after receiving bills for reclamation at the quarry or restoration related to the quarry, the executive director shall determine whether the reclamation or restoration expenditures are in accordance with the approved reclamation or restoration activities or are otherwise justified, and if so, shall instruct the insurer to make reimbursement in such amounts as the executive director specifies in writing. If the executive director has reason to believe that the maximum cost of reclamation or restoration will be greater than the face amount of the policy, the executive director may withhold reimbursement of such amounts as deemed prudent until the executive director determines, in accordance with this subchapter, that the owner or operator is no longer required to maintain financial assurance requirements for reclamation at the quarry or restoration related to the quarry of the facility. If the executive director does not instruct the insurer to make such reimbursements, the executive director shall provide the owner or operator with a detailed written statement of reasons.

(g) The owner or operator shall maintain the policy in full force and effect until the executive director consents to termination of the policy. Failure to pay the premium, without substitution of alternate financial assurance as specified in this subchapter, shall constitute a violation of these regulations, warranting such remedy as the executive director deems necessary. Such violation shall be deemed to begin upon receipt by the executive director of a notice of future cancellation, termination, or failure to renew due to nonpayment of the premium, rather than upon the date of expiration of the policy.

(h) The policy must provide that the insurer may not cancel, terminate, or fail to renew the policy except for failure to pay the premium. The automatic renewal of the policy shall, at a minimum, provide the insured with the option of renewal at the face amount of the expiring policy. If there is a failure to pay the premium, the insurer may elect to cancel, terminate, or fail to renew the policy by sending notice by certified mail to the owner or operator and the executive director. Cancellation, termination, or failure to renew may not occur, however, during 120 days beginning with the date of receipt of the notice by both the executive director and the owner or operator, as evidenced by the return receipts.

(i) Cancellation, termination, or failure to renew may not occur and the policy shall remain in full force and effect in the event that on or before the date of expiration:

(1) the executive director deems the quarry abandoned;

(2) the permit expires, is terminated, is revoked, or a new or renewal permit is denied;

(3) reclamation or restoration is ordered by the executive director of the commission or by a United States district court or other court of competent jurisdiction;

(4) the owner or operator is named as debtor in a voluntary or involuntary proceeding under Title 11 (Bankruptcy), United States Code; or

(5) the premium due is paid.

(j) Each policy must contain a provision allowing assignment of the policy to a successor owner or operator. Such assignment may be conditional upon consent of the insurer, provided such consent is not unreasonably refused.

§37.9220.Certificate of Insurance Wording.

A certificate of insurance for reclamation or restoration, as specified in §37.9215 of this title (relating to Insurance Requirements), must be worded as specified in the Certificate of Insurance in this section, except that the instructions in parenthesis are to be replaced with the relevant information and the parenthesis deleted.

Figure: 30 TAC §37.9220

§37.9225.Financial Test Requirements.

(a) An owner or operator may satisfy the requirements of financial assurance by establishing a financial test that conforms to the requirements of this subchapter.

(b) To pass this test, the owner or operator must meet the criteria of either paragraph (1) or (2) of this subsection.

(1) The owner or operator shall have:

(A) two of the following three ratios: a ratio of total liabilities to net worth less than 2.0; a ratio of the sum of net income plus depreciation, depletion, and amortization to total liabilities greater than 0.1; and a ratio of current assets to current liabilities greater than 1.5;

(B) net working capital and tangible net worth each at least six times the sum of the current cost estimates, liability coverage requirements, and any other financial assurance obligations under the Texas Commission on Environmental Quality (TCEQ) or other federal or state environmental regulations assured by a financial test;

(C) tangible net worth of at least $10 million; and

(D) assets located in the United States amounting to at least 90% of the owner's or operator's total assets or at least six times the sum of the current cost estimates, liability coverage requirements, and any other financial assurance obligations under the TCEQ or other federal or state environmental regulations assured by a financial test.

(2) The owner or operator shall have:

(A) a current rating for his most recent bond issuance of AAA, AA, A, or BBB as issued by Standard and Poor's or Aaa, Aa, A, or Baa as issued by Moody's;

(B) tangible net worth at least six times the sum of the current cost estimates, liability coverage requirements, and any other financial assurance obligations under the TCEQ or other federal or state environmental regulations assured by a financial test;

(C) tangible net worth of at least $10 million; and

(D) assets located in the United States amounting to at least 90% of the owner's or operator's total assets or at least six times the sum of the current cost estimates, liability coverage requirements, and any other financial assurance obligations under the TCEQ or other federal or state environmental regulations assured by a financial test.

(c) To demonstrate that the requirements of the test are being met, the owner or operator shall submit the following items to the executive director:

(1) a letter signed by the owner's or operator's chief financial officer worded identically to the wording specified in §37.9230 of this title (relating to Financial Test Wording);

(2) a copy of the owner's or operator's independently audited year-end financial statements for the latest fiscal year including the "unqualified opinion" of the auditor;

(3) a special report from the owner's or operator's independent certified public accountant to the owner or operator stating that:

(A) the accountant has compared the data that the letter from the chief financial officer specifies as having been derived from the independently audited, year-end financial statements for the latest fiscal year with the amounts in such financial statements; and

(B) in connection with that procedure:

(i) such amounts were found to be in agreement; or

(ii) no matters came to the attention of the accountant that caused the accountant to believe that the specified data should be adjusted;

(4) a written verification of the current bond rating from the applicable bond rating agency, if the owner or operator is using Alternative II of the letter signed by the owner's or operator's chief financial officer specified in §37.9230 of this title; and

(5) a schedule identifying intangible assets used to calculate tangible net worth.

(d) After the initial submission of items specified in subsection (c) of this section, the owner or operator shall send updated information to the executive director within 90 days after the close of each succeeding fiscal year. This information shall consist of all items specified in subsection (c) of this section.

(e) If the owner or operator no longer meets the requirements of subsection (b) of this section, a notice shall be sent to the executive director of intent to establish alternate financial assurance as specified in this subchapter. The notice must be sent by certified mail within 90 days after the end of the fiscal year for which the year-end financial data shows that the owner or operator no longer meets the requirements. The owner or operator shall provide the alternate financial assurance within 120 days after the end of such fiscal year.

(f) The executive director may, based on a reasonable belief that the owner or operator may no longer meet the requirements of subsection (b) of this section, require reports of financial condition at any time from the owner or operator in addition to those specified in subsection (c) of this section. If the executive director finds, on the basis of such reports or other information, that the owner or operator no longer meets the requirements of subsection (b) of this section, the owner or operator shall provide alternate financial assurance as specified in this subchapter within 30 days after notification of such a finding.

(g) The executive director may disallow use of this test on the basis of qualifications in the opinion expressed in the independent certified public accountant's report on examination of the owner's or operator's financial statements. An adverse opinion or disclaimer of opinion shall be cause for disallowance. The executive director shall evaluate other qualifications on an individual basis. The owner or operator shall provide alternate financial assurance as specified in this subchapter within 30 days after notification of the disallowance.

(h) Owners and operators choosing to meet the financial assurance requirement by using a financial test agree to fund the amount demonstrated for restoration within 60 days of written notification by the executive director to any party or parties specified by the executive director.

§37.9230.Financial Test Wording.

A letter from the chief financial officer for restoration or reclamation, as specified in §37.9225 of this title (relating to Financial Test Requirements), must be worded as specified in the Financial Test in this section, except that the instructions in parenthesis are to be replaced with the relevant information and the parenthesis deleted.

Figure: 30 TAC §37.9230

§37.9235.Corporate Guarantee Requirements.

(a) An owner or operator may satisfy the requirements of financial assurance for reclamation or restoration by obtaining a written guarantee, hereafter referred to as "corporate guarantee," which conforms to the requirements of this subchapter.

(b) The guarantor shall be the direct or higher-tier parent corporation of the owner or operator or a corporation with a substantial business relationship with the owner or operator. The guarantor must meet the requirements for owners or operators as specified in §37.9225 of this title (relating to Financial Test Requirements). The guarantor must comply with the terms of the corporate guarantee.

(c) The wording of the corporate guarantee must be identical to the wording specified in §37.9240 of this title (relating to Corporate Guarantee Wording). The corporate guarantee shall accompany the items sent to the executive director as specified in §37.9225(c) of this title.

(d) If the guarantor has a substantial business relationship with the owner or operator, in addition to the requirements specified in this chapter for the financial test and corporate guarantee, the guarantor will submit a description of the substantial business relationship and the value received in consideration of the guarantee; an original or certified original copy of the Resolution by the Board of Directors or a certified letter from the chief financial officer, authorizing the corporate guarantee on behalf of the entity; an original or certified original copy of the Resolution by the Board of Directors authorizing the formation or acquisition of the guaranteed entity; an organizational chart that shows the relationship between the two entities; and the partnership agreement or other agreements, articles, or bylaws that set out the formation, structure, and operation of the guaranteed entity. After the initial submission of these items to demonstrate a substantial business relationship, if there has been no change in the substantial business relationship, the chief financial officer may submit a letter attesting that there has been no change.

(e) The terms of the corporate guarantee shall provide that:

(1) if the owner or operator fails to perform reclamation at the quarry or restoration related to the quarry covered by the corporate guarantee in accordance with the permits and other applicable requirements or written directive by the executive director or commission whenever required to perform such reclamation or restoration, the guarantor shall do so or establish a trust fund as specified in §37.9185 of this title (relating to Trust Fund Requirements) in the name of the owner or operator in the amount of the current cost estimate;

(2) the corporate guarantee will remain in force unless the guarantor sends notice of termination by certified mail to the owner or operator and the executive director and the owner or operator has obtained, and the executive director has approved, alternative financial assurance; and

(3) if the owner or operator fails to provide alternate financial assurance as specified in this subchapter and obtain the written approval of such alternate assurance from the executive director within 90 days after receipt by both the owner or operator and the executive director of a notice of termination of the corporate guarantee from the guarantor, the guarantor will provide such alternate financial assurance in the name of the owner or operator.

§37.9240.Corporate Guarantee Wording.

A corporate guarantee for reclamation or restoration, as specified in §37.9235 of this title (relating to Corporate Guarantee Requirements), must be worded as specified in the Corporate Guarantee in this section, except that the instructions in parenthesis are to be replaced with the relevant information and the parenthesis deleted.

Figure: 30 TAC §37.9240

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 9, 2006.

TRD-200601536

Stephanie Bergeron Perdue

Director, Environmental Law Division

Texas Commission on Environmental Quality

Earliest possible date of adoption: April 23, 2006

For further information, please call: (512) 239-5017


Chapter 39. PUBLIC NOTICE

The Texas Commission on Environmental Quality (TCEQ or commission) proposes amendments to §§39.501, 39.503, and 39.651.

BACKGROUND AND SUMMARY OF THE FACTUAL BASIS FOR THE PROPOSED RULES

House Bill (HB) 1609, 79th Legislature, 2005, amended Texas Health and Safety Code, §§361.0666, 361.0791, and 361.082, by making the applicant's public meeting and the TCEQ's public meeting on new hazardous waste management facilities and new municipal solid waste management facilities discretionary, rather than mandatory. In order to implement this change, the commission is proposing to amend §§39.501, 39.503, and 39.651 to reflect the change in statutory language from "shall hold a public meeting" to "may hold a public meeting."

SECTION BY SECTION DISCUSSION

Administrative and grammatical changes are proposed throughout the sections to bring the existing rule language into agreement with Texas Register requirements, agency guidelines, and guidance provided in the Texas Legislative Council Drafting Manual , November 2004.

The proposed amendments to §39.501(e), Application for Municipal Solid Waste Permit, distinguish between applications filed before September 1, 2005, the effective date of HB 1609, and applications filed on or after September 1, 2005. The mandatory public meeting requirements in paragraph (1) for applications filed before September 1, 2005, are left in place, changing the subject from the "applicant" to the "application" to conform to the language in Section 6 of HB 1609. New paragraph (2) is proposed for discretionary public meetings for applications filed on or after September 1, 2005, and removing the 45-day requirement for the applicant's public meeting. New paragraph (2)(A)(i) also specifies that the agency's public meeting will be held under 30 TAC §55.154 that, in turn, requires the executive director or the Office of Public Assistance to hold a public meeting if the executive director determines that there is a substantial or significant degree of public interest in an application or if a member of the legislature who represents the general area in which the facility is located or proposed to be located requests that a public meeting be held. At the direction of the commission, guidance on the executive director's discretion in determining substantial public interest in an application has been added by repeating a portion of Texas Water Code (TWC), §5.554 in new clause (ii). New paragraph (3) defines "substantial public interest" in terms of a local governmental entity with jurisdiction over the location at which the facility is proposed to be located by formal resolution of the entity's governing body; a council of governments with jurisdiction over the location at which the facility is proposed to be located by formal request of either the council's solid waste advisory committee, executive committee, or governing board; a homeowners' or property owners' association formally organized or chartered and having at least ten members located in the general area in which the facility is proposed to be located; or a group of ten or more local residents, property owners, or businesses located in the general area in which the facility is proposed to be located. Existing paragraphs (2) - (4) are renumbered as paragraphs (4) - (6), and references back to paragraph (1)(A) in renumbered paragraphs (4) and (6) are made to refer back to paragraphs (1)(A) or (2)(A) while the reference back to paragraph (1)(B) in renumbered paragraph (5) is made to refer back to paragraphs (1)(B) or (2)(B).

The proposed amendments to §39.503(e)(1), Application for Industrial or Hazardous Waste Facility Permit, distinguish between applications filed before September 1, 2005, the effective date of HB 1609, and applications filed on or after September 1, 2005, changing the subject from the "applicant" to the "application" to conform to the language in Section 6 of HB 1609. New paragraph (1)(A) retains the mandatory public meeting for applications filed before September 1, 2005, while new paragraph (1)(B) makes the public meeting discretionary for applications filed on or after September 1, 2005. New paragraph (1)(B)(i) also specifies that the agency's public meeting will be held under 30 TAC §55.154 that, in turn, requires the executive director or the Office of Public Assistance to hold a public meeting if the executive director determines that there is a substantial or significant degree of public interest in an application or if a member of the legislature who represents the general area in which the facility is located or proposed to be located requests that a public meeting be held. At the direction of the commission, guidance on the executive director's discretion in determining substantial public interest in an application has been added by repeating a portion of TWC, §5.554 in new clause (ii).

The proposed amendments to §39.503(e)(2) distinguish between applications filed before September 1, 2005, the effective date of HB 1609, and applications filed on or after September 1, 2005, changing the subject from the applicant to the application to conform to the language in Section 6 of HB 1609 and including Class 3 modifications with major amendments. New paragraph (2)(A) retains the mandatory public meeting for applications filed before September 1, 2005, if a person affected files a request for a public meeting with the chief clerk concerning the application before the deadline to file public comment or hearing requests. New paragraph (2)(B) makes the public meeting discretionary for applications filed on or after September 1, 2005, and removes the affected person requirement deleted from the statute in HB 1609. New paragraph (2)(B)(i) also specifies that the agency's public meeting will be held under §55.154 that, in turn, requires the executive director or the Office of Public Assistance to hold a public meeting if the executive director determines that there is a substantial or significant degree of public interest in an application or if a member of the legislature who represents the general area in which the facility is located or proposed to be located requests that a public meeting be held. At the direction of the commission, guidance on the executive director's discretion in determining substantial public interest in an application has been added by repeating a portion of TWC, §5.554 in new clause (ii). New paragraph (3) defines "substantial public interest" in terms of a local governmental entity with jurisdiction over the location at which the facility is located or proposed to be located by formal resolution of the entity's governing body; a council of governments with jurisdiction over the location at which the facility is located or proposed to be located by formal request of either the council's solid waste advisory committee, executive committee, or governing board; a homeowners' or property owners' association formally organized or chartered and having at least ten members located in the general area in which the facility is located or proposed to be located; or a group of ten or more local residents, property owners, or businesses located in the general area in which the facility is located proposed to be located. Existing paragraphs (3) - (6) are renumbered as paragraphs (4) - (7).

The proposed amendments to renumbered §39.503(e)(4) distinguish between applications filed before September 1, 2005, the effective date of HB 1609, and applications filed on or after September 1, 2005, changing the subject from the "applicant" to the "application" to conform to the language in Section 6 of HB 1609. New paragraph (3)(A) retains the mandatory applicant's public meeting for applications filed before September 1, 2005, and retains the 45-day deadline. New paragraph (3)(B) makes the applicant's public meeting discretionary for applications filed on or after September 1, 2005.

The proposed amendments to renumbered §39.503(e)(5) and (7) make references back to paragraph (1) refer back to paragraphs (1) or (2).

The proposed amendments to §39.651(e)(1), Application for Injection Well Permit, distinguish between applications filed before September 1, 2005, the effective date of HB 1609, and applications filed on or after September 1, 2005, changing the subject from the "applicant" to the "application" to conform to the language in Section 6 of HB 1609. New paragraph (1)(A) retains the mandatory public meeting for applications filed before September 1, 2005, while new paragraph (1)(B) makes the public meeting discretionary for applications filed on or after September 1, 2005. New paragraph (1)(B)(i) also specifies that the agency's public meeting will be held under §55.154 that, in turn, requires the executive director or the Office of Public Assistance to hold a public meeting if the executive director determines that there is a substantial or significant degree of public interest in an application or if a member of the legislature who represents the general area in which the facility is located or proposed to be located requests that a public meeting be held. At the direction of the commission, guidance on the executive director's discretion in determining substantial public interest in an application has been added by repeating a portion of TWC, §5.554 in new clause (ii).

New §39.651(e)(2) separates the requirements for public meetings on applications for major amendments from old paragraph (1) and distinguishes between applications filed before September 1, 2005, the effective date of HB 1609, and applications filed on or after September 1, 2005, changing the subject from the applicant to the application to conform to the language in Section 6 of HB 1609 and including Class 3 modifications with major amendments. New paragraph (2)(A) retains the mandatory public meeting for applications filed before September 1, 2005, if a person affected files a request for public meeting with the chief clerk concerning the application before the deadline to file public comment or hearing requests. New paragraph (2)(B) makes the public meeting discretionary for applications filed on or after September 1, 2005, and removes the affected person requirement deleted from the statute in HB 1609. New paragraph (2)(B)(i) also specifies that the agency's public meeting will be held under §55.154 that, in turn, requires the executive director or the Office of Public Assistance to hold a public meeting if the executive director determines that there is a substantial or significant degree of public interest in an application or if a member of the legislature who represents the general area in which the facility is located or proposed to be located requests that a public meeting be held. At the direction of the commission, guidance on the executive director's discretion in determining substantial public interest in an application has been added by repeating a portion of TWC, §5.554 in new clause (ii). New paragraph (3) defines "substantial public interest" in terms of a local governmental entity with jurisdiction over the location at which the facility is located or proposed to be located by formal resolution of the entity's governing body; a council of governments with jurisdiction over the location at which the facility is located or proposed to be located by formal request of either the council's solid waste advisory committee, executive committee, or governing board; a homeowners' or property owners' association formally organized or chartered and having at least ten members located in the general area in which the facility is located or proposed to be located; or a group of ten or more local residents, property owners, or businesses located in the general area in which the facility is located proposed to be located.

New §39.651(e)(4) separates the statements that a public meeting is not a contested case proceeding and that a public meeting held as part of a local review committee process meets the requirements of this subsection if public notice is provided, similar to the separation of these statements in §39.501(e)(4) and §39.503(e)(5). Existing paragraphs (2) and (3) are renumbered as paragraphs (5) and (6).

FISCAL NOTE: COSTS TO STATE AND LOCAL GOVERNMENT

Jeff Horvath, Analyst, Strategic Planning and Grants Management Section, determined that, for the first five-year period the proposed rulemaking is in effect, no significant fiscal implications are anticipated for the agency or other units of state or local government as a result of the administration or enforcement of the proposed rulemaking.

The proposed rulemaking implements certain provisions of HB 1609 by making public meetings for new, amended, or Class 3 modifications of hazardous waste management facilities and new municipal solid waste management facilities discretionary, rather than mandatory. Texas Water Code, Chapter 5, and applicable agency regulations still provide an opportunity for the public or a member of the legislature to request a public meeting. Public meetings shall be held if the executive director determines that there is a substantial or significant degree of public interest in an application or if a member of the legislature who represents the general area in which the facility is located or proposed to be located requests that a public meeting be held.

The proposed rulemaking is expected to decrease the number of public meetings held, depending upon the number of applicants and whether it is determined that there is significant public interest in the application. On average, there are between ten to 15 public meetings held each year for new municipal solid waste permits and hazardous waste permits (including Class 3 permits and major amendments). Units of local government that wish to obtain new or amended permits for municipal solid waste facilities may save the cost of public notice, and preparation time for public meetings for those applications where there is no substantial or significant public interest and no request for a public meeting by a member of the legislature. Public notice may cost as much as $1,000 depending upon the size of the circulation of the newspaper. Travel and staff time would depend upon the number of staff attending and the distance traveled.

The agency may save the cost of sending between four to seven staff members to public meetings at places anywhere in the state, for those applications where there is no substantial or significant public interest and no request for a public meeting by a member of the legislature. It is estimated that there will be five fewer mandatory public meetings each fiscal year. It is estimated that staff will attend approximately ten meetings per year due to significant interest or a legislative request. Most public meetings attended by agency staff generally only have per diem costs. However, some meetings take place in areas of the state where air travel, car rental, and overnight stay are required in addition to per diem costs. These trips may cost up to $3,000 depending upon the number of staff attending. Assuming each of the estimated five meetings required air travel and overnight stay for seven staff, the agency could save approximately $3,000 for each meeting, with total savings as much as $15,000 each year.

PUBLIC BENEFITS AND COSTS

Mr. Horvath also determined that for each year of the first five years that the proposed rulemaking is in effect, the public benefit anticipated from the changes seen in the proposed rulemaking will be compliance with state law and the more efficient use of public meetings.

There may be cost savings for businesses or individuals that seek new, major amendments, or Class 3 modifications of hazardous waste management facility permits or new municipal solid waste management facility permits.

The proposed rulemaking is expected to decrease the number of public meetings held, though any decrease will depend upon the number of applicants and whether it is determined that there is a substantial or significant public interest in the application or if there is a request by a member of the legislature. It is anticipated that there will be five fewer public meetings held each fiscal year. Affected businesses or individuals may save the cost of public notice and travel costs for sending personnel to public meetings for those applications where there is no substantial or significant public interest and no request for a public meeting by a member of the legislature. Public notice costs may be as much as $1,000, depending upon the size of the circulation of the newspaper. Other cost savings will vary depending upon personnel costs and other financial factors.

SMALL BUSINESS AND MICRO-BUSINESS ASSESSMENT

No adverse fiscal implications are anticipated for small or micro-businesses. It is not known how many small or micro-businesses will seek new, major amendments, or Class 3 modifications of hazardous waste management facility permits or new municipal solid waste management facility permits, but for those that do, there may be cost savings due to the fact that there may be a decrease in the number of public meetings held, though any decrease will depend upon the number of applicants and whether it is determined that there is significant public interest in the application.

LOCAL EMPLOYMENT IMPACT STATEMENT

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

The specific intent of the proposed rulemaking is to make public meetings on applications for new, major amendments, or Class 3 modifications for hazardous waste management facilities or new municipal solid waste management facilities discretionary. It is not anticipated that the proposed rulemaking will 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 concludes that this proposed rulemaking does not meet the definition of major environmental rule.

Furthermore, even if the proposed rulemaking did meet the definition of a major environmental rule, the proposed rulemaking 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). Section 2001.0225(a) applies to a rule adopted by an agency, 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.

In this case, the proposed rulemaking does not meet any of these requirements. First, the applicable federal standard calls for discretionary public meetings if there is a significant degree of public interest in a draft permit (40 Code of Federal Regulations §124.12(a)). Second, the proposed rulemaking does not exceed an express requirement of state law in Texas Health and Safety Code, §§361.0666(a), 361.0791(a) and (b), and 361.082(d), as amended by HB 1609. Third, there is no delegation agreement that would be exceeded by the proposed rulemaking. Fourth, the commission proposes this rulemaking under the specific authority of Texas Health and Safety Code, §§361.0666(a), 361.0791(a) and (b), and 361.082(d). This rulemaking is also proposed under the authority of Texas Health and Safety Code, §§361.011, 361.017, and 361.024, which provide the commission the authority to adopt rules necessary to carry out its powers and duties under the Texas Solid Waste Disposal Act. Therefore, the commission does not propose this rulemaking solely under the commission's general powers. The commission invites public comment on the draft regulatory impact analysis determination.

TAKINGS IMPACT ASSESSMENT

The commission evaluated this proposed rulemaking and performed a preliminary assessment of whether the proposed rulemaking constitutes a taking under Texas Government Code, Chapter 2007. The specific purpose of the proposed rulemaking is to make public meetings for solid waste applications discretionary. The proposed rulemaking would substantially advance this stated purpose by making public meetings on solid waste applications subject to the same discretionary standards used for other waste programs.

Promulgation and enforcement of this proposed rulemaking would be neither a statutory nor a constitutional taking of private real property because the rulemaking does not affect real property. This rulemaking exercises commission jurisdiction over public meetings for municipal solid waste and hazardous waste applications.

There are no burdens imposed on private real property, and the benefits to society are more efficient use of agency staff resources in avoiding public meetings where no one from the public attends. In addition, the proposed rulemaking does not burden, restrict, or limit an owner's right to property or reduce its value by 25% or more beyond that which would otherwise exist in the absence of the regulation. Therefore, this proposed rulemaking will not constitute a taking under Texas Government Code, Chapter 2007.

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 or 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 Joyce Spencer, MC 205, Texas Register Team, 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 2005-068-039-LS. Comments must be received by 5:00 p.m., April 24, 2006. Copies of the proposed rules can be obtained from the commission's Web site at http://www.tceq.state.tx.us/nav/rules/propose_adopt.html . For further information, please contact John E. Williams, Environmental Law Division, (512) 239-0455.

Subchapter I. PUBLIC NOTICE OF SOLID WASTE APPLICATIONS

30 TAC §39.501, §39.503

STATUTORY AUTHORITY

The amendments are proposed under Texas Health and Safety Code, §§361.0666, 361.0791, and 361.082, as amended by HB 1609, which makes public meetings on solid waste applications discretionary; §361.011, which establishes the commission's jurisdiction over all aspects of the management of municipal solid waste with all powers necessary or convenient to carry out the responsibilities of that jurisdiction; §361.017, which establishes the commission's jurisdiction over all aspects of the management of industrial solid waste and hazardous municipal waste with all powers necessary or convenient to carry out the responsibilities of that jurisdiction; and §361.024, which provides the commission with rulemaking authority.

The proposed amendments implement HB 1609, which amended Texas Health and Safety Code, §§361.0666, 361.0791, and 361.082.

§39.501.Application for Municipal Solid Waste Permit.

(a) Applicability. This section applies to applications for municipal solid waste [ (MSW) ] permits that are declared administratively complete on or after September 1, 1999.

(b) Preapplication local review committee process. If an applicant for a municipal solid waste [ an MSW ] permit decides to participate in a local review committee process under Texas Health and Safety Code, §361.063, the applicant shall [ must ] submit to the executive director a notice of intent to file an application, setting forth the proposed location and type of facility. The executive director shall mail notice to the county judge of the county in which the facility is to be located. If the proposed facility is to be located in a municipality or the extraterritorial jurisdiction of a municipality, a copy of the notice must [ shall ] also be mailed to the mayor of the municipality. The executive director shall also mail notice to the appropriate regional solid waste planning agency or council of government. The mailing must [ shall ] be by certified mail.

(c) Notice of Receipt of Application and Intent to Obtain a Permit.

(1) (No change.)

(2) After the executive director determines that the application is administratively complete:

(A) notice must [ shall ] be given as required by §39.418 of this title (relating to Notice of Receipt of Application and Intent to Obtain Permit) and, if a newspaper is not published in the county, then the applicant shall publish notice in a newspaper of circulation in the immediate vicinity in which the facility is located or proposed to be located. This notice must contain the text as required by §39.411(b)(1) - (9), (11), and (12) of this title (relating to Text of Public Notice);

(B) (No change.)

(C) the executive director or chief clerk shall mail the Notice of Receipt of Application and Intent to Obtain Permit, along with a copy of the application or summary of its contents to the mayor and health authority of a municipality in whose territorial limits or extraterritorial jurisdiction the solid waste facility is located, and to the county judge and the health authority of the county in which the facility is located.

(d) Notice of Application and Preliminary Decision. The notice required by §39.419 of this title (relating to Notice of Application and Preliminary Decision) must [ shall ] be published once as required by §39.405(f)(2) of this title (relating to General Notice Provisions). The notice must [ shall ] be published after the chief clerk has mailed the Notice of Application and Preliminary Decision to the applicant. The notice must contain the text as required by §39.411(c)(1) - (6) of this title.

(e) Notice of public meeting.

(1) If an application for [ applicant proposes ] a new facility is filed before September 1, 2005 :

(A) - (B) (No change.)

(2) If an application for a new facility is filed on or after September 1, 2005:

(A) the agency:

(i) may hold a public meeting under §55.154 of this title (relating to Public Meetings) in the county in which the facility is proposed to be located to receive public comment concerning the application;

(ii) shall hold a public meeting under §55.154 of this title in the county in which the facility is proposed to be located to receive public comment concerning the application:

(I) on the request of a member of the legislature who represents the general area in which the facility is proposed to be located; or

(II) if the executive director determines that there is substantial public interest in the proposed facility; and

(B) the applicant may hold a public meeting in the county in which the facility is proposed to be located.

(3) For purposes of this subsection, "substantial public interest" is demonstrated if a request for a public meeting is filed by:

(A) a local governmental entity with jurisdiction over the location at which the facility is proposed to be located by formal resolution of the entity's governing body;

(B) a council of governments with jurisdiction over the location at which the facility is proposed to be located by formal request of either the council's solid waste advisory committee, executive committee, or governing board;

(C) a homeowners' or property owners' association formally organized or chartered and having at least ten members located in the general area in which the facility is proposed to be located; or

(D) a group of ten or more local residents, property owners, or businesses located in the general area in which the facility is proposed to be located.

(4) [ (2) ] A public meeting is not a contested case proceeding under the Administrative Procedure Act [ APA ]. A public meeting held as part of a local review committee process under subsection (b) of this section meets the requirements of paragraph (1)(A) or (2)(A) of this subsection if public notice is provided under this subsection.

(5) [ (3) ] The applicant shall publish notice of any public meeting under this subsection, in accordance with §39.405(f)(2) of this title, once each week during the three weeks preceding a public meeting. The published notice must [ shall ] be at least 15 square inches (96.8 square centimeters) with a shortest dimension of at least three [ 3 ] inches (7.6 centimeters). For public meetings under paragraph (1)(B) or (2)(B) of this subsection, the notice of public meeting is not subject to §39.411(d) of this title, but instead must [ shall ] contain at least the following information:

(A) permit application number;

(B) applicant's name;

(C) proposed location of the facility;

(D) location and availability of copies of the application;

(E) location, date, and time of the public meeting; and

(F) name, address, and telephone number of the contact person for the applicant from whom interested persons may obtain further information.

(6) [ (4) ] For public meetings held by the agency under paragraph (1)(A) or (2)(A) of this subsection, the chief clerk shall mail notice to the persons listed in §39.413 of this title (relating to Mailed Notice).

(f) Notice of hearing.

(1) This subsection applies if an application is referred to the State Office of Administrative Hearings [ SOAH ] for a contested case hearing under Chapter 80 of this title (relating to Contested Case Hearings).

(2) (No change.)

(3) Mailed notice.

(A) If the applicant proposes a new facility, the applicant shall mail notice of the hearing to each residential or business address located within 1/2 mile of the facility and to each owner of real property located within 1/2 mile of the facility listed in the real property appraisal records of the appraisal district in which the facility is located. The notice must [ shall ] be mailed to the persons listed as owners in the real property appraisal records on the date the application is determined to be administratively complete. The notice must be mailed no more than 45 days and no less than 30 days before the hearing. Within 30 days after the date of mailing, the applicant shall [ must ] file with the chief clerk an affidavit certifying compliance with its obligations under this subsection. Filing an affidavit certifying facts that constitute compliance with notice requirements creates a rebuttable presumption of compliance with this subparagraph.

(B) (No change.)

(4) Notice under paragraphs (2) and (3)(B) of this subsection must [ shall ] be completed at least 30 days before the hearing.

§39.503.Application for Industrial or Hazardous Waste Facility Permit

(a) (No change.)

(b) Preapplication requirements.

(1) If an applicant for an industrial or hazardous waste facility permit decides to participate in a local review committee process under Texas Health and Safety Code, §361.063, the applicant shall [ must ] submit a notice of intent to file an application to the executive director, setting forth the proposed location and type of facility. The applicant shall mail notice to the county judge of the county in which the facility is to be located. If the proposed facility is to be located in a municipality or the extraterritorial jurisdiction of a municipality, a copy of the notice must also be mailed to the mayor of the municipality. Mailed notice must be by certified mail. When the applicant submits the notice of intent to the executive director, the applicant shall publish notice of the submission in a paper of general circulation in the county in which the facility is to be located.

(2) The requirements of this paragraph are set forth in [ at ] 40 Code of Federal Regulations (CFR) §124.31(b) - (d), which is adopted by reference as amended and adopted in the CFR through December 11, 1995, (60 FR 63417) [ at 60 FedReg 63417, ] and apply to all hazardous waste part B applications for initial permits for hazardous waste management units, hazardous waste part B permit applications for major amendments, and hazardous waste part B applications for renewal of permits, where the renewal application is proposing a significant change in facility operations. For the purposes of this paragraph, a "significant change" is any change that would qualify as a Class 3 permit modification under §305.69 of this title (relating to Solid Waste Permit Modification at the Request of the Permittee). The requirements of this paragraph do not apply to an application for minor amendment under §305.62 of this title (relating to Amendment), correction under §50.45 of this title (relating to Corrections to Permits), or modification under §305.69 of this title, or to an application that is submitted for the sole purpose of conducting post-closure activities or post-closure activities and corrective action at a facility, unless the application is also for an initial permit for hazardous waste management unit(s), or the application is also for renewal of the permit, where the renewal application is proposing a significant change in facility operations.

(c) Notice of Receipt of Application and Intent to Obtain Permit.

(1) Upon the executive director's receipt of an application, or notice of intent to file an application, the chief clerk shall mail notice to the state senator and representative who represent the area in which the facility is or will be located and to the persons listed in §39.413 of this title (relating to Mailed Notice). For all hazardous waste part B applications for initial permits for hazardous waste management units, hazardous waste part B permit applications for major amendments, and hazardous waste part B applications for renewal of permits, the chief clerk shall provide notice to meet the requirements of this subsection and 40 CFR §124.32(b), which is adopted by reference as amended and adopted in the CFR through December 11, 1995, (60 FR 63417) [ at 60 FedReg 63417, ] and the executive director shall meet the requirements of 40 CFR §124.32(c), which is adopted by reference as amended and adopted in the CFR through December 11, 1995, (60 FR 63417) [ at 60 FedReg 63417 ]. The requirements of this paragraph relating to 40 CFR §124.32(b) and (c) do not apply to an application for minor amendment under §305.62 of this title, correction under §50.45 of this title, or modification under §305.69 of this title, or to an application that is submitted for the sole purpose of conducting post-closure activities or post-closure activities and corrective action at a facility, unless the application is also for an initial permit for hazardous waste management unit(s), or the application is also for renewal of the permit.

(2) (No change.)

(d) (No change.)

(e) Notice of public meeting.

(1) If an application for [ applicant proposes ] a new hazardous waste facility is filed: [ , the agency shall hold a public meeting in the county in which the facility is to be located to receive public comment concerning the application. ]

(A) before September 1, 2005, the agency shall hold a public meeting in the county in which the facility is proposed to be located to receive public comment concerning the application; or

(B) on or after September 1, 2005, the agency:

(i) may hold a public meeting under §55.154 of this title (relating to Public Meetings) in the county in which the facility is proposed to be located to receive public comment concerning the application;

(ii) shall hold a public meeting under §55.154 of this title in the county in which the facility is proposed to be located to receive public comment concerning this application:

(I) on the request of a member of the legislature who represents the general area in which the facility is proposed to be located; or

(II) if the executive director determines that there is substantial public interest in the proposed facility.

(2) If an application for [ applicant proposes ] a major amendment to or a Class 3 modification of an existing hazardous waste facility permit is filed: [ , this subsection applies if a person affected files a request for public meeting with the chief clerk concerning the application before the deadline to file public comment or hearing requests. ]

(A) before September 1, 2005, the agency shall hold a public meeting in the county in which the facility is located to receive public comment concerning the application if a person affected files a request for a public meeting with the chief clerk concerning the application before the deadline to file public comment or hearing requests; or

(B) on or after September 1, 2005, the agency:

(i) may hold a public meeting under §55.154 of this title in the county in which the facility is located to receive public comment concerning the application;

(ii) shall hold a public meeting under §55.154 of this title in the county in which the facility is located to receive public comment concerning the application:

(I) on the request of a member of the legislature who represents the general area in which the facility is located; or

(II) if the executive director determines that there is substantial public interest in the facility.

(3) For purposes of this subsection, "substantial public interest" is demonstrated if a request for a public meeting is filed by:

(A) a local governmental entity with jurisdiction over the location at which the facility is located or proposed to be located by formal resolution of the entity's governing body;

(B) a council of governments with jurisdiction over the location at which the facility is located or proposed to be located by formal request of either the council's solid waste advisory committee, executive committee, or governing board;

(C) a homeowners' or property owners' association formally organized or chartered and having at least ten members located in the general area in which the facility is located or proposed to be located; or

(D) a group of ten or more local residents, property owners, or businesses located in the general area in which the facility is located or proposed to be located.

(4) [ (3) ] If an application for [ applicant proposes ] a new industrial or hazardous waste facility that would accept municipal solid waste is filed: [ , the applicant shall hold a public meeting in the county in which the facility is proposed to be located. This meeting must be held before the 45th day after the date the application is filed. ]

(A) before September 1, 2005, the applicant shall hold a public meeting in the county in which the facility is proposed to be located. This meeting must be held before the 45th day after the date the application is filed; or,

(B) on or after September 1, 2005, the applicant may hold a public meeting in the county in which the facility is proposed to be located.

(5) [ (4) ] A public meeting is not a contested case proceeding under the Administrative Procedure Act. A public meeting held as part of a local review committee process under subsection (b) of this section meets the requirements of paragraph (1) or (2) of this subsection if public notice is provided under this subsection.

(6) [ (5) ] The applicant shall publish notice of any public meeting under this subsection, in accordance with §39.405(f)(2) of this title, once each week during the three weeks preceding a public meeting. The published notice must be at least 15 square inches (96.8 square centimeters) with a shortest dimension of at least three inches (7.6 centimeters). For public meetings under paragraph (3) of this subsection, the notice of public meeting is not subject to §39.411(d) of this title, but instead must contain at least the following information:

(A) permit application number;

(B) applicant's name;

(C) proposed location of the facility;

(D) location and availability of copies of the application;

(E) location, date, and time of the public meeting; and

(F) name, address, and telephone number of the contact person for the applicant from whom interested persons may obtain further information.

(7) [ (6) ] For public meetings held by the agency under paragraph (1) or (2) of this subsection, the chief clerk shall mail notice to the persons listed in §39.413 of this title.

(f) Notice of hearing.

(1) Applicability. This subsection applies if an application is referred to the State Office of Administrative Hearings for a contested case hearing under Chapter 80 of this title (concerning Contested Case Hearings).

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

(4) Radio broadcast. If the application concerns a hazardous waste facility, the applicant shall broadcast notice of the hearing under subsection (d)(2) of this section.

(5) Deadline. Notice under paragraphs (2)(A), (3), and (4) of this subsection must be completed at least 30 days before the hearing.

(g) Injection wells. This section does not apply to applications for an injection well permit.

(h) Information repository. The requirements of 40 CFR §124.33(b) - (f), which is adopted by reference as amended and adopted in the CFR through December 11, 1995, (60 FR 63417) [ at 60 FedReg 63417, ] apply to all applications for hazardous waste permits.

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 10, 2006.

TRD-200601549

Stephanie Bergeron Perdue

Acting Deputy Director, Office of Legal Services

Texas Commission on Environmental Quality

Earliest possible date of adoption: April 23, 2006

For further information, please call: (512) 239-5017


Subchapter L. PUBLIC NOTICE OF INJECTION WELL AND OTHER SPECIFIC APPLICATIONS

30 TAC §39.651

STATUTORY AUTHORITY

The amendment is proposed under Texas Health and Safety Code, §§361.0666, 361.0791, and 361.082, as amended by HB 1609, which makes public meetings on solid waste applications discretionary; §361.011, which establishes the commission's jurisdiction over all aspects of the management of municipal solid waste with all powers necessary or convenient to carry out the responsibilities of that jurisdiction; §361.017, which establishes the commission's jurisdiction over all aspects of the management of industrial solid waste and hazardous municipal waste with all powers necessary or convenient to carry out the responsibilities of that jurisdiction; and §361.024, which provides the commission with rulemaking authority.

The proposed amendment implements HB 1609, which amended Texas Health and Safety Code, §§361.0666, 361.0791, and 361.082.

§39.651.Application for Injection Well Permit.

(a) - (b) (No change.)

(c) Notice of Receipt of Application and Intent to Obtain Permit.

(1) (No change.)

(2) After the executive director determines that the application is administratively complete, notice must be given as required by §39.418 of this title (relating to Notice of Receipt of Application and Intent to Obtain a Permit). This notice must contain the text as required by §39.411(b)(1) - (9) and (12) of this title (relating to Text of Public Notice). Notice under §39.418 [ §38.418 ] of this title will satisfy the notice of receipt of application required by §281.17(d) of this title (relating to Notice of Receipt of Application and Declaration of Administrative Completeness).

(3) After the executive director determines that the application is administratively complete, in addition to the requirements of §39.418 of this title, notice must be given to the School Land Board, if the application will affect lands dedicated to the permanent school fund. The notice must [ shall ] be in the form required by Texas Water Code, §5.115(c).

(4) For notice of receipt of application and intent to obtain a permit concerning Class I underground injection wells, the chief clerk shall also mail notice to:

(A) - (D) (No change.)

(5) - (6) (No change.)

(d) Notice of Application and Preliminary Decision. The notice required by §39.419 of this title (relating to Notice of Application and Preliminary Decision) must be published once under §39.405(f)(2) of this title (relating to General Notice Provisions) after the chief clerk has mailed the preliminary decision and the Notice of Application and Preliminary Decision to the applicant. This notice must contain the text as required by §39.411(c)(1) - (6) of this title. In addition to the requirements of §39.405(h) and §39.419 of this title, the following requirements apply.

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

(3) The chief clerk shall mail notice to the persons listed in §39.413 of this title (relating to Mailed Notice) and to local governments located in the county of the facility. "Local governments" [ shall ] have the meaning as defined [ provided for that term ] in Texas Water Code, Chapter 26.

(4) For Notice of Application and Preliminary Decision [ notice of application and preliminary decision ] concerning Class I underground injection wells, the chief clerk shall also mail notice to:

(A) - (D) (No change.)

(5) - (6) (No change.)

(e) Notice of public meeting.

(1) If an application for [ the applicant proposes ] a new hazardous waste facility is filed: [ , the executive director shall hold a public meeting in the county in which the facility is to be located to receive public comment concerning the application. If the applicant proposes a major amendment of an existing hazardous waste facility permit, the executive director shall hold a public meeting if a person affected files with the chief clerk a request for public meeting concerning the application before the deadline to file public comment or requests for reconsideration or hearing. A public meeting is not a contested case proceeding under the Administrative Procedure Act. A public meeting held as part of a local review committee process under subsection (a) of this section meets the requirements of this subsection if public notice is provided in accordance with this subsection. ]

(A) before September 1, 2005, the agency shall hold a public meeting in the county in which the facility is proposed to be located to receive public comment concerning the application; or

(B) on or after September 1, 2005, the agency:

(i) may hold a public meeting under §55.154 of this title (relating to Public Meetings) in the county in which the facility is proposed to be located to receive public comment concerning the application;

(ii) shall hold a public meeting under §55.154 of this title in the county in which the facility is proposed to be located to receive public comment concerning the application:

(I) on the request of a member of the legislature who represents the general area in which the facility is proposed to be located; or

(II) if the executive director determines that there is substantial public interest in the proposed facility.

(2) If an application for a major amendment to or a Class 3 modification of an existing hazardous waste facility permit is filed:

(A) before September 1, 2005, the agency shall hold a public meeting in the county in which the facility is located to receive public comment on the application if a person affected files with the chief clerk a request for a public meeting concerning the application before the deadline to file public comment or to file requests for reconsideration or hearing; or

(B) on or after September 1, 2005, the agency:

(i) may hold a public meeting under §55.154 of this title in the county in which the facility is located to receive public comment on the application;

(ii) shall hold a public meeting under §55.154 of this title in the county in which the facility is located to receive public comment concerning the application:

(I) on the request of a member of the legislature who represents the general area in which the facility is located; or

(II) if the executive director determines that there is substantial public interest in the facility.

(3) For purposes of this subsection, "substantial public interest" is demonstrated if a request for a public meeting is filed by:

(A) a local governmental entity with jurisdiction over the location in which the facility is located or proposed to be located by formal resolution of the entity's governing body;

(B) a council of governments with jurisdiction over the location in which the facility is located or proposed to be located by formal request of either the council's solid waste advisory committee, executive committee, or governing board;

(C) a homeowners' or property owners' association formally organized or chartered and having at least ten members located in the general area in which the facility is located or proposed to be located; or

(D) a group of ten or more local residents, property owners, or businesses located in the general area in which the facility is located or proposed to be located.

(4) A public meeting is not a contested case proceeding under the Administrative Procedure Act. A public meeting held as part of a local review committee process under subsection (a) of this section meets the requirements of this subsection if public notice is provided in accordance with this subsection.

(5) [ (2) ] The applicant shall publish notice of the public meeting once each week during the three weeks preceding a public meeting under §39.405(f)(2) of this title. The published notice must be at least 15 square inches (96.8 square centimeters) with a shortest dimension of at least three inches (7.6 centimeters).

(6) [ (3) ] The chief clerk shall mail notice to the persons listed in §39.413 of this title.

(f) Notice of contested case hearing.

(1) Applicability. This subsection applies if an application is referred to the State Office of Administrative Hearings for a contested case hearing under Chapter 80 of this title (relating to Contested Case Hearings).

(2) Newspaper notice.

(A) If the application concerns a facility other than a hazardous waste facility, the applicant shall publish notice at least once in a newspaper of general circulation in the county in which the facility is located and in each county and area that is adjacent or contiguous to each county in which [ wherein ] the proposed facility is located.

(B) - (C) (No change.)

(3) (No change.)

(4) Radio broadcast. If the application concerns a hazardous waste facility, the applicant shall broadcast notice under §39.503(d)(2) of this title.

(5) Deadline. Notice under paragraphs (2)(A), (3), and (4) of this subsection must be completed at least 30 days before the contested case hearing.

(g) Approval. All published notices required by this section must be in a form approved by the executive director prior to publication.

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 10, 2006.

TRD-200601550

Stephanie Bergeron Perdue

Acting Deputy Director, Office of Legal Services

Texas Commission on Environmental Quality

Earliest possible date of adoption: April 23, 2006

For further information, please call: (512) 239-5017


Chapter 311. WATERSHED PROTECTION

Subchapter H. REGULATION OF QUARRIES IN THE JOHN GRAVES SCENIC RIVERWAY

30 TAC §§311.71 - 311.82

The Texas Commission on Environmental Quality (commission) proposes new §§311.71 - 311.82.

BACKGROUND AND SUMMARY OF THE FACTUAL BASIS FOR THE PROPOSED RULES

Senate Bill (SB) 1354, 79th Legislature, 2005, amended Texas Water Code (TWC), Chapter 26 by adding new Subchapter M, Water Quality Protection Areas; specifically §§26.551 - 26.562. The statute addresses permitting, financial responsibility, inspections, water quality sampling, enforcement, cost recovery, and interagency cooperation with regard to quarry operations. The requirements of the statute are applicable to a pilot program in the John Graves Scenic Riverway. The John Graves Scenic Riverway is defined as the Brazos River Basin, and its contributing watershed, located downstream of the Morris Shepard Dam on the Possum Kingdom Reservoir in Palo Pinto County, Texas, and extending to the county line between Parker and Hood Counties, Texas.

Chapter 311, Subchapter H, implements §§26.551 - 26.554 and 26.562. New Subchapter H establishes the permitting and financial assurance requirements for the John Graves Scenic Riverway pilot program. A corresponding rulemaking is published in this issue of the Texas Register that includes the addition of Subchapter W, Financial Assurance for Quarries to Chapter 37, Financial Assurance.

SECTION BY SECTION DISCUSSION

Proposed new §311.71, Definitions, defines the terms used within the subchapter. Definitions for the following terms are consistent with definitions found in SB 1354: aggregates, John Graves Scenic Riverway, operator, overburden, owner, pit, quarry, quarrying, refuse, and water body. The following definitions were added to, or modified from, those contained in SB 1354: 25-year, 24-hour rainfall event, aquifer, best management practices, natural hazard lands, navigable, reclamation, restoration, responsible party, structural controls, tertiary containment, and water quality protection area. Definitions for 25-year, 24-hour rainfall event, aquifer, best management practices, natural hazard lands, and tertiary containment are generally consistent with other federal and/or state rules found in 40 Code of Federal Regulations and 30 TAC, respectively.

Proposed new §311.71(7) defines navigable, for the purposes of this subchapter, as "Designated by the United States Geological Survey (USGS) as perennial on the most recent topographic map(s) published by the USGS, at a scale of 1:24,000." Providing this definition eliminates any confusion regarding the term, given the significant variability in scope of other federal and state designations of navigability. This definition establishes the scope of proposed permitting requirements most closely related to perennial water bodies, where impacts to water quality, aquatic life, and navigability are of concern, and allows the commission to focus permitting and enforcement resources in those areas. Additionally, the use of USGS topographic maps as the source for determining navigability provides an easily accessible source and eliminates the interpretation necessary in a strictly narrative description.

Proposed new §311.71(14) and (17) include definitions for reclamation and restoration, respectively. The definitions are broad, but also define the scope of reclamation and restoration consistent with the scope of SB 1354.

Proposed new §311.71(16) defines responsible party as "Any owner, operator, lessor, or lessee who is primarily responsible for the overall function and operation of a quarry in the water quality protection area defined by §311.71(16)." This definition was modified from the definition found in SB 1354 so that it specifically references quarries located in a water quality protection area, as defined within the subchapter.

Proposed new §311.71(21) defines a water quality protection area as "For the purposes of this subchapter, the Brazos River and its contributing watershed occurring in Palo Pinto and Parker Counties below the Morris Shepard Dam." SB 1354 requires the commission to designate water quality protection areas through commission rules. The proposed definition of water quality protection area focuses permitting and enforcement resources within Palo Pinto and Parker Counties, where impacts from quarrying are of concern.

Proposed new §311.72, Applicability, identifies activities regulated by this subchapter and activities specifically excluded from regulation, consistent with SB 1354. Activities regulated by this subchapter include quarrying within a water quality protection area in the John Graves Scenic Riverway, as identified in subsection (a). Activities specifically excluded from regulation are identified in subsection (b)(1) - (4). Paragraphs (1), (4), and (5) exclude, respectively, the following: the construction or operation of a municipal solid waste facility regardless of whether the facility includes a pit or quarry that is associated with past quarrying; an activity, facility, or operation regulated under Natural Resources Code, Chapter 134, Texas Surface Coal Mining and Reclamation Act; and quarries mining clay and shale for use in manufacturing structural clay products. Paragraphs (2) and (3) exclude, respectively, the following: a quarry, or associated processing plant, that on or before January 1, 1994, has been in regular operation without cessation of operation for more than 30 consecutive days and under the same ownership; and the construction or modification of associated equipment located on a quarry site or associated processing plant site identified in §311.72(b)(2). Where facilities are specifically excluded by paragraphs (2) and (3), the exclusion is applicable to operations within the current lease hold or property boundaries. Where these facilities acquire additional lease holds and/or property, quarrying in those new areas will be subject to the requirements of this subchapter. As this distinction in applicability is dependant upon regular operation since January 1, 1994, without cessation for more than 30 days and operating within the current lease hold or property boundaries, facilities subject to this exclusion are required to maintain documentation on site to demonstrate the exclusion as provided in subsection (c). The responsible party carries the burden of proof in demonstrating that a quarry meets the exclusions listed in subsection (b).

In addition to the exclusion listed in new §311.72(b)(5), quarries mining clay and shale for use in manufacturing structural clay products are also excluded from regulation through the definition of aggregate and quarry in SB 1354 and this proposed subchapter. This exclusion includes current operations, the expansion of current operations on current property, the expansion of current operations to adjacent properties, or new operations.

Proposed new §311.73, Prohibitions, identifies areas within a water quality protection area in the John Graves Scenic Riverway where quarrying is prohibited, consistent with SB 1354. Proposed new §311.73(a) prohibits the construction or operation of any new quarry, or the expansion of an existing quarry, located within 200 feet of any water body. The construction or operation of any new quarry, or the expansion of an existing quarry, located between 200 feet and 1,500 feet of any water body is prohibited except where the requirements in §§311.75(2), 311.77, and 311.78(b) are met. For the purposes of this subchapter, a new quarry is any quarry that commenced operations after September 1, 2005. An existing quarry is any quarry that was in operation prior to September 1, 2005. Expansion of an existing quarry refers to any change to an existing quarry that results in additional disturbance, including the construction of additional processing areas.

Throughout this subchapter, prohibitions, application requirements, and performance criteria are established based upon the quarry's location relative to a navigable water body (as defined in §311.71). Where location is established as the distance from a water body, the distance is measured from the gradient boundary. Federal Emergency Management Agency flood hazard maps identify the 100-year floodplain relative to a water body.

In addition to any other required permits, proposed new §311.74, Authorization, requires all responsible parties to obtain permit coverage under 30 TAC Chapters 205 or 305. Section 311.74(1) identifies the requirements of this subchapter applicable to all quarries located within a water quality protection area in the John Graves Scenic Riverway. In addition to the requirements in paragraph (1), paragraph (2) requires individual permits for all quarries located within the 100-year floodplain, or within one mile, of a water body. The requirements of paragraph (3) are in addition to those found in paragraphs (1) and (2) for quarries located between 200 feet and 1,500 feet of a water body. These locational distinctions are consistent with SB 1354. Paragraphs (4) and (5) address facilities located within multiple applicability zones. The requirements for the more restrictive zone are applicable to the entire quarry, except where the executive director waives, modifies, or otherwise adjusts the requirements for that portion of the quarry located outside of the more restrictive applicability zone. The executive director anticipates waiving, modifying, or otherwise adjusting the requirements for that portion of the quarry located outside of the more restrictive applicability zone where a quarry can demonstrate that the portion of the facility located inside the more restrictive applicability zone will still meet all applicable performance requirements.

Proposed new §311.75, Permit Application Requirements, outlines the permit application requirements for all quarries located within a water quality protection area in the John Graves Scenic Riverway. Section 311.75(1) outlines the permit application requirements for all quarries located within a water quality protection area in the John Graves Scenic Riverway including requirements for the submission of financial assurance for restoration. Permit application requirements for quarries located between 200 feet and 1,500 feet of a water body within a water quality protection area in the John Graves Scenic Riverway are identified in paragraph (2). Paragraph (3) allows for the executive director to request any additional information necessary for the quarry to demonstrate compliance with TWC, Chapter 26, Subchapter M or this subchapter.

Proposed new §311.76, Restoration Plan, identifies the requirements for the Restoration Plan required in §311.75(1) for all quarries located within a water quality protection area in the John Graves Scenic Riverway. The Restoration Plan provides a proposed plan of action for how the responsible party will restore a water body to background conditions following an unauthorized discharge. Subsection (a)(1) and (2) outlines the requirements included in the Restoration Plan enabling the executive director to evaluate the applicant's methodology for determining the physical, chemical, and/or biological background conditions of each of the water bodies that may be at risk as a result of an unauthorized discharge from a quarry. Since background conditions in a water body may change over time, proposed paragraph (3) is designed to ensure that the determination of background conditions will be completed in a timely manner and reevaluated and updated periodically. Paragraph (4) allows the applicant to consider the unique characteristics of the facility, the receiving waters at risk, and the background conditions of these water bodies and requires the applicant to identify the specific goals and objectives of potential restoration actions based on site-specific qualities of the adjacent water bodies and the facility. Paragraph (5) requires the applicant to include an evaluation of a reasonable range of potential restoration alternatives that may be implemented to achieve the goals and objectives identified in the Restoration Plan to return affected water bodies to background conditions. It further requires that the applicant identify a preferred restoration alternative that would be implemented in the event of an unauthorized discharge. To ensure the effectiveness and long-term success of the restoration action, paragraph (6) requires the applicant to describe the process that will be used to monitor the effectiveness of the preferred restoration action and identify the performance criteria that will be used to determine the success of the restoration or the need for interim on- and off-site stabilization. To ensure meaningful input from stakeholders on the restoration action that is ultimately implemented to restore the affected water body, paragraph (7) requires the applicant to identify a process for public involvement in the evaluation of the restoration action(s) selected to restore the receiving water body to background conditions. Paragraph (8) requires a detailed estimate of the maximum probable costs required to complete a restoration action used to support the amount of financial assurance required by §311.81(a). Certification of the Restoration Plan by a licensed Texas professional engineer is required in subsection (b).

Proposed new §311.77, Technical Demonstration, identifies the requirements for the Technical Demonstration required in §311.75(3) for all quarries located within 200 feet to 1,500 feet of a water body within a water quality protection area in the John Graves Scenic Riverway. Requirements for a time schedule for the proposed quarry from initiation to termination of operations, including restoration, are identified in subsection (a)(1). Subsection (a)(2), (3), and (4) provides a description of the geology, quarrying processes, and other operations that would be found on site. Identification of the type, character, and volume of all wastewater and storm water generated at the quarry is required in paragraph (5). Paragraph (6) requires the submission of a topographic map and lists all items that must be identified on the map. Paragraph (7) defines the minimum requirements for the Surface Water Drainage and Accumulation Plan, required by SB 1354. Paragraph (7)(A) requires a description of the use and monitoring of structural controls and best management practices as identified in the Best Available Technology Evaluation. The minimum items required for identification on a topographic map are listed in subparagraph (B)(i) - (v). Paragraph (8) lists the requirements for the Best Available Technology Evaluation. Paragraph (8)(A) requires that the applicant assess the use of structural controls and best management practices. Certification by a licensed Texas professional engineer is required for the design and construction of all structural controls. Subparagraph (B) requires an evaluation of performance criteria established in §311.79 and §311.80. This evaluation should help ensure that the requirements of §311.79 and §311.80 have been reviewed and will be met by the applicant. Paragraph (9) ensures that the applicant has developed procedures and schedules for the periodic review of the Technical Demonstration for consistency with quarry operations and site conditions. Subsection (b) requires certification of the Technical Demonstration by a licensed Texas professional engineer.

Proposed new §311.78, Reclamation Plan, identifies the requirements for the Reclamation Plan required in §311.75(3) for all quarries located within 200 feet to 1,500 feet of a water body within a water quality protection area in the John Graves Scenic Riverway. The minimum requirements of the Reclamation Plan are listed in subsection (a)(1)(A) - (C). Subparagraph (A) requires the applicant to provide a description of the proposed use of the disturbed area following reclamation. The proposed use of a reclaimed area will dictate the standards for reclamation, which subparagraph (B) requires the permittee to develop. Standards for reclamation must address removal or final stabilization of all materials, waste, structures, temporary roads/railroads, and equipment; backfilling, regrading, and recontouring; slope stabilization; and the establishment of vegetation, wildlife habitat, drainage patterns, and permanent control structures, as listed in paragraph (2)(i) - (xi). A description of how reclamation will be conducted and a timetable for the completion of reclamation activities is required in the Reclamation Plan in subparagraph (C). Paragraph (2) requires a detailed estimate of the maximum probable costs required to complete reclamation. Subsection (b) requires certification of the Reclamation Plan by a licensed Texas professional engineer.

Proposed new §311.79, Performance Criteria for Quarries Located Within a Water Quality Protection Area in the John Graves Scenic Riverway, outlines the performance criteria applicable to all quarries located within a water quality protection area in the John Graves Scenic Riverway. Section 311.79(1) establishes a 45 milligrams per liter daily average effluent limitation for total suspended solids and a pH range of 6.0 to 9.0 standard units for all discharges to waters in the state. Effluent limitations for total suspended solids are established to reduce sediment loading to receiving water bodies. A daily average concentration of 45 milligrams per liter is achievable when proper best management practices and structural controls are installed and maintained. Effluent limitations for pH are established to preclude impacts to water quality and are achievable primarily through best management practices, although structural controls and/or treatment may be necessary. The applicability of total suspended solids and pH effluent limitations are limited in paragraph (2) to discharges resulting from a rainfall event less than the 25-year, 24-hour rainfall event. The 25-year, 24-hour rainfall event has historically been the design standard for water quality applications. Rainfall events beyond the 25-year, 24-hour rainfall event are typically considered an "act of God." To ensure that the effluent limitations established in paragraphs (1) and (2) are monitored consistently, monitoring frequencies are specified in paragraph (3) at once per day, when discharging. This monitoring schedule provides regular monitoring of discharges, allowing the commission and quarries to monitor the effectiveness of best management practices and structural controls. Paragraph (4) outlines monitoring and reporting requirements for monitoring conducted under paragraph (3). Because paragraph (2) limits the applicability of effluent limitations under severe rainfall conditions, paragraph (5) requires that the permittee install a permanent rain gauge and keep daily records of rainfall and resulting flow.

Proposed new §311.80, Additional Performance Criteria for Quarries Located Between 200 Feet and 1,500 Feet of a Water Body Located Within a Water Quality Protection Area in the John Graves Scenic Riverway, outlines additional performance criteria applicable to all quarries located between 200 feet and 1,500 feet of a water body within a water quality protection area in the John Graves Scenic Riverway. Section 311.80(1)(A) - (F) addresses design and construction requirements for final control structures including: certification of the design and construction, availability of design and construction plans and specifications, slope restrictions, water management capabilities, stabilization, inspection, and buffers. These requirements are established to ensure proper design and construction, operation, and maintenance of structural controls. Paragraph (2) provides for the proper operation of treatment, detention, and water storage tanks and ponds by requiring a minimum of two feet of freeboard. Paragraph (3) requires a depth marker so that compliance with paragraph (2) can be verified. Impacts to historical resources are addressed in paragraph (4) by requiring compliance with 36 Code of Federal Regulations Part 800 and 9 Texas Natural Resources Code, Chapter 191. Paragraph (5) addresses impacts to federal endangered/threatened, aquatic/aquatic-dependant species/proposed species or their critical habitat. As a measure of protection for water supply wells, paragraph (6) establishes siting restrictions for all waste management units. Paragraph (7) establishes requirements for secondary and tertiary containment of chemicals and fuels to reduce the potential for leaks and spills to contaminate surface and/or groundwater. Tertiary containment is required where quarry operations overlay aquifer and/or aquifer recharge areas and sufficient confining layers do not exist to preclude contamination. Secondary containment is required in all instances. Where natural hazards, frequent flooding, or areas of unstable geology exist, paragraph (8) prohibits the location of a quarry operation.

Proposed new §311.81, Financial Responsibility for Quarries Located Within a Water Quality Protection Area in the John Graves Scenic Riverway, establishes requirements for financial assurance for restoration and reclamation as required by this subchapter.

Proposed new §311.81(a) requires that the owner or operator of a quarry located in the John Graves Scenic Riverway establish and maintain financial assurance, in an amount determined by the cost estimate within the approved Restoration Plan in §311.76(8), for restoration of a water body that is affected by an unauthorized discharge. The financial assurance is intended to cover the costs of site stabilization and restoration performed by an independent contractor and include design and engineering fees, costs of repairing failed or impaired structural controls, costs of soil stabilization and erosion control measures necessary to prevent additional releases, and where practicable, removal of excess silt, sediment, rocks, and debris from the affected water body.

Proposed new §311.81(b) requires that the owner or operator of a quarry located in the John Graves Scenic Riverway establish and maintain financial assurance, in an amount determined by the cost estimate within the Reclamation Plan in §311.78(2), for reclamation of the quarry. The financial assurance is intended to cover the costs of reclamation performed by an independent contractor. Costs of reclamation include design and engineering fees; removal or final stabilization of all materials, waste, structures, temporary roads/railroads, and equipment; backfilling, regrading, and recontouring; slope stabilization; and the establishment of vegetation, wildlife habitat, drainage patterns, and permanent control structures.

Proposed new §311.82, Expiration, specifies September 1, 2025, as the expiration date for Chapter 311, Subchapter H, consistent with SB 1354.

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 new rules are in effect, no significant fiscal implications are anticipated for the agency or other units of state or local government. However, fiscal implications, which may be significant, are anticipated for up to 16 quarry facilities currently operating in the John Graves Scenic Riverway.

The proposed rules implement SB 1354, which amended TWC, Chapter 26. The bill addresses permitting, financial responsibility, inspections, water quality sampling, enforcement, cost recovery, and interagency cooperation with regard to quarry operations in the John Graves Scenic Riverway. The John Graves Scenic Riverway is defined as the Brazos River Basin and its contributing watershed, located downstream of the Morris Shepard Dam on the Possum Kingdom Reservoir in Palo Pinto County, Texas, and extending to the county line between Parker and Hood Counties, Texas.

The proposed rules would establish the permitting and financial assurance requirements for the John Graves Scenic Riverway 20-year pilot program. At this time, there are 16 permitted quarries operating within the John Graves Scenic Riverway. Quarries operating at a distance less than 200 feet would not be able to obtain a permit under the proposed rules. The remainder of these quarries would be required to obtain either an individual permit or coverage under a newly developed general permit based on their proximity to a water body within a water quality protection area in the John Graves Scenic Riverway. Those quarries operating between 200 feet and up to one mile of a water body would be required to obtain an individual permit. Quarries operating within a distance greater than one mile of a water body would obtain coverage under the newly developed general permit. The affected quarries are required to have a storm water pollution prevention plan under their current general permit. The proposed rules would increase permitting requirements, especially for those facilities located between 200 feet and 1,500 feet of a water body, though facilities located greater than 1,500 feet of a water body will also experience increased permitting requirements. Implementation of the new requirements is expected to increase operating costs for some quarry operators in the John Graves Scenic Riverway. None of the potentially affected quarries are owned or operated by units of local government.

The proposed rules would have no significant fiscal impact for the commission, although there may be an increase in the number of individual water quality permits issued by the agency. All quarries operating less than one mile from a perennial body of water would be required to obtain an individual permit and therefore have to pay a higher permit application fee. The maximum anticipated application fee for an individual permit is $1,250 and the fee for the general permit is $100. Fee revenue would increase dependent upon how many quarries would be required to switch to the individual permit. The additional fee revenue would be deposited in the Water Resource Management Account (Fund 153). Assuming all 16 facilities apply for individual permits, there would be an estimated one time revenue gain of $20,000.

A slight increase in the number of individual permits reviewed by the Water Quality Division is expected, along with higher levels of inspection activity. It is expected that the commission, in conjunction with the Texas Parks and Wildlife Department and the Brazos River Authority, would conduct inspections of the John Graves Scenic Riverway twice per year from the air and twice per year by boat. The costs may be shared among the interested agencies. The inspections are required twice per year until September 1, 2025, as specified by SB 1354. The additional workload is expected to be absorbed using current agency resources as no funds were appropriated to implement the requirements. SB 1354 also established the Reclamation and Restoration Fund Account within the General Revenue Fund. Penalties and other money received by the commission as a result of enforcement actions taken under the provisions of the proposed rulemaking would be deposited into the account. Money in the account could be appropriated only to the commission for the reclamation and restoration of the beds, bottoms, and banks of water bodies affected by unlawful discharges. Subsequent to the passage of SB 1354, the passage of SB 1605 by the 79th Legislature, 2005, invalidated the creation of the dedicated Reclamation and Restoration Account. If the recovery of penalty revenue or the procurement of cost recovery or financial assurance funds should occur, the commission will evaluate other mechanisms available to the agency for the deposit, accounting, and disbursement of these funds. It is projected that the rulemaking would result in no additional costs to units of local governments.

PUBLIC BENEFITS AND COSTS

Mr. Perry also determined that for each year of the first five years the proposed new rules are in effect, the public benefit anticipated from the changes seen in the proposed rules will be improved water quality due to a decrease in the amount of suspended solids entering water bodies within a water quality protection area in the John Graves Scenic Riverway.

Fiscal implications are anticipated for businesses and individuals operating rock quarries in the John Graves Scenic Riverway. The proposed rules would establish the permitting and financial assurance requirements for the John Graves Scenic Riverway 20-year pilot program. At this time, there are approximately 16 permitted quarries operating within the John Graves Scenic Riverway that would be required to obtain either an individual permit or coverage under a general permit based on the proximity to a water body within a water quality protection area in the John Graves Scenic Riverway. The proposed requirements for quarries located greater than one mile from a water body include the development of a restoration plan, maintenance of financial assurance for restoration, and compliance with performance criteria. Quarries located within one mile of a water body will be required to obtain an individual permit, develop a restoration plan, maintain financial assurance for restoration, and comply with performance criteria. Quarries located between 200 feet and 1,500 feet of a water body are required to submit a Technical Demonstration, submit a Reclamation Plan, maintain financial assurance for reclamation, comply with additional performance criteria, obtain an individual permit, develop a Restoration Plan, maintain financial assurance for restoration, and comply with performance criteria.

Quarries required to obtain coverage under the individual permit would pay a permit application fee of $1,250 instead of $100 and may have to hire a professional engineer, professional geoscientist, or other qualified individual to design the Restoration Plan and where applicable, the Reclamation Plan, Technical Demonstration, and surface water drainage and water accumulation plan, as well as perform a review of best available technology to minimize adverse impacts. These professional costs may be in the range of $200 per hour, depending upon the size of the site. Professional fees are estimated to be between $3,200 and $32,200, assuming work would take anywhere from 2 to 20 days to complete.

Construction of the performance controls would be a new cost to quarry operators as well. To control runoff from the quarries, berming must be constructed down-gradient and most likely detention structures built to meet effluent limitations. Small sites could be bermed and detention basins built at an estimated cost of $1,400. Larger sites could take longer, especially with consideration of topography and vegetative cover. For those sites requiring a detention structure, it is projected that costs would be between $24,750 and $74,250 to excavate a one million-gallon detention basin. This would capture the rainfall from a 25-year, 24-hour rainfall event from 7.55 acres (an event of 7.2 inches).

Financial assurance is estimated to cost 3% to 5% per year of the amount estimated to restore and reclaim the site. It is estimated that on average, cost estimates providing the basis for the amount of financial assurance would cost a minimum of $100,000 for restoration and $200,000 for reclamation. Therefore, at a minimum, the financial assurance is estimated to cost between $3,000 and $15,000 per year in premiums, unless operations can qualify to meet the financial assurance provisions through a corporate financial test. Facilities located greater than 1,500 feet from a water body would be required to meet the financial assurance requirements for restoration activities. Those facilities located between 200 feet and 1,500 feet of a water body would be required to meet the proposed financial assurance requirements for both reclamation and restoration activities. Reclamation is required once the quarry terminates operations. Actual costs would vary by site and would be dependent upon the condition of the site at the time that operations cease. In addition, there may be other costs associated with the individual permit such as contested case hearing costs. If there is a contested case hearing, costs to the applicant could be anywhere from $5,000 to $100,000 for attorney fees and would depend upon the length of the hearing and other circumstances. Total costs for the new requirements are estimated to be between $43,000 and $223,000 to obtain an individual permit and between $6,300 and $37,300 for a general permit.

SMALL BUSINESS AND MICRO-BUSINESS ASSESSMENT

Adverse fiscal implications are anticipated for small or micro-businesses as a result of the proposed rulemaking. 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. It is not known how many of the estimated 16 facilities are small or micro-businesses, but for those that are, there could be costs associated with the proposed permitting and financial assurance requirements.

Small or micro-businesses would be subject to the same requirements for compliance as larger businesses. Estimated costs would range from $43,000 to $223,000 to obtain an individual permit and between $6,300 and $37,300 for a general permit. Costs for a small business requiring coverage under an individual permit would range from $430 to $2,230 per employee and between $63 and $373 per employee for coverage under the general permit. For a micro-business, costs for coverage under the individual permit could range from $2,150 to $11,150 per employee and between $315 and $1,865 per employee for coverage under the general permit.

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, although the proposed rulemaking meets the definition of a "major environmental rule" as defined in §2001.0225, it does not meet any of the four applicability requirements listed in §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.

In this case, the proposed rules do not meet any of these four applicability requirements. First, regardless of whether the rules exceed a standard set by federal law, the proposed rules are specifically required to implement state law in SB 1354. Second, the proposed rules do not exceed a requirement of state law, in that they are being proposed to implement specific requirements of SB 1354. Third, the proposed rules do not exceed an express 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. Fourth, the commission does not propose these rules solely under the general powers of the agency, but rather under the authority of SB 1354, which directs the commission to implement rules under TWC, Chapter 26.

The commission invites public comment regarding this draft regulatory impact analysis determination.

TAKINGS IMPACT ASSESSMENT

The commission evaluated these proposed rules and prepared an assessment of whether the proposed rules constitute a takings under Texas Government Code, Chapter 2007.

The specific purpose of the proposed rules is to implement SB 1354. The proposed rules protect a unique portion of the Brazos River watershed between Possum Kingdom Reservoir in Palo Pinto County and Parker County, Texas, to be known as the John Graves Scenic Riverway, from ongoing mining and quarrying activities in the proximity of the beds, bottoms, and banks of the river that significantly impair the quality of the water flowing in the river.

These proposed rules implement the requirements for quarries in the John Graves Scenic Riverway that were established in SB 1354. Under SB 1354, the commission may not authorize a quarry within 200 feet of a navigable water body within the John Graves Scenic Riverway. The bill prohibits the commission from authorizing the construction or operation of a new quarry or the expansion of an existing quarry between 200 and 1,500 feet of a navigable waterbody within the John Graves Scenic Riverway, unless certain performance criteria established by rulemaking are satisfied. SB 1354 further establishes that a quarry located or proposed to be located within one mile of a navigable waterbody in the John Graves Scenic Riverway must get an individual permit. Those quarries located or proposed to be located at a distance more than one mile must be covered under a general permit. This proposed rulemaking and related restrictions implement the express requirements of SB 1354.

Promulgation and enforcement of these proposed rules would be neither a statutory nor a constitutional taking of private real property, because although the proposed rules do affect private real property, they do not constitute a "taking" as defined by the Private Real Property Rights Preservation Act. According to the Act, "taking" means a governmental action that affects private real property, in whole or in part or temporarily or permanently, in a manner that requires the governmental entity to compensate the private real property owner as provided by the Fifth and Fourteenth Amendments to the United States Constitution or Texas Constitution, Article I, §17 or §19; or a governmental action that: 1) affects an owner's private real property that is the subject of the governmental action, in whole or in part or temporarily or permanently, in a manner that restricts or limits the owner's right to the property that would otherwise exist in the absence of the governmental action; and 2) is the producing cause of a reduction of at least 25% in the market value of the affected private real property, determined by comparing the market value of the property as if the governmental action is not in effect and the market value of the property is determined as if the governmental action is in effect.

The Fifth Amendment to the United States Constitution states in relevant part: "Nor shall private property be taken for public use, without just compensation." The takings clause applies to the states by virtue of the Fourteenth Amendment. Similarly, Texas Constitution, Article I, §17 provides: "No person's property shall be taken, damaged or destroyed without adequate compensation being made, unless by the consent of such person; and, when taken, except for the use of the State, such compensation shall be first made, or secured by a deposit of money . . .."

Texas courts have held that takings can be classified as either physical or regulatory. Physical takings occur when the government authorizes an unwarranted physical occupation of an individual's property. The proposed rules do not authorize the physical occupation of any private real property; therefore, they will not result in a physical takings of private real property. A regulatory takings occurs when a regulation does not substantially advance legitimate state interests, or when a regulation either denies a landowner all economically viable use of property, or unreasonably interferes with a landowner's right to use and enjoy that property.

The proposed rules substantially advance a legitimate state interest by implementing SB 1354, relating to the protection of water quality in watersheds threatened by quarry activities; establishing a pilot program in certain portion of the Brazos River wastershed; and providing penalties. The commission is tasked with maintaining the quality of water in the state consistent with the public health and enjoyment, and the propagation and protection of terrestrial and aquatic life. SB 1354 is being implemented to protect the John Graves Scenic Riverway from ongoing mining and quarrying activities in the proximity of the beds, bottoms, and banks of the river that significantly impair the quality of the water flowing in the river.

Determining whether all economically viable use of a property would be denied entails an analysis of whether value remains in property subject to these rules if the proposed rules were adopted. The proposed rules do not prohibit quarrying altogether. While the proposed rules would prohibit quarrying within 200 feet of a navigable water body within the John Graves Scenic Riverway, quarrying would be permitted between 200 feet and 1,500 feet of a water body, provided that certain performance criteria are met. Facilities located more than one mile from a water body may obtain a general permit under TWC, §26.040. In addition, the proposed rules do not restrict other potential uses of property located in the John Graves Scenic Riverway. Therefore, the proposed rules would not deny any landowner all economically viable uses of a property.

Determining whether the proposed rules would unreasonably interfere with a landowner's right to use and enjoy property would require consideration of two factors: 1) the economic impact of the regulation; and 2) the extent to which the proposed rules interfere with distinct investment-backed expectations. This determination is typically made by courts on a fact-intensive, case-by-case basis.

As previously stated, the proposed rules do not prohibit quarrying altogether; instead, the rules restrict quarrying activities that will protect the quality of the water flowing in the John Graves Scenic Riverway. The commission does not anticipate that the proposed rules will unreasonably interfere with a landowner's investment-backed expectations, nor will the proposed rules be the producing cause of a 25% reduction in the market value of affected private real property.

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

CONSISTENCY WITH THE COASTAL MANAGEMENT PROGRAM

The commission reviewed the proposed rulemaking and found that the rules are neither identified in Coastal Coordination Act Implementation Rules, 31 TAC §505.11(b)(2), relating to Actions and Rules Subject to the Coastal Management Program, nor will it 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.

ANNOUNCEMENT OF HEARING

A public hearing on this proposal will be held in Mineral Wells on April 6, 2006, at 6:30 p.m. at the Mineral Wells City Hall Annex, Council Chambers, 115 Southwest First Street. The hearing will be structured for the receipt of oral or written comments by interested persons. Individuals may present oral statements when called upon in order of registration. There will be no open discussion during the hearing; however, an agency staff member will be available to discuss the proposal 30 minutes prior to the hearing and will answer questions before and after the hearing.

Persons who have special communication or other accommodation needs who are planning to attend the hearing should contact the Office of Public Assistance at (512) 239-4000. Requests should be made as far in advance as possible.

SUBMITTAL OF COMMENTS

Comments may be submitted to Joyce Spencer, MC 205, Texas Register Team, 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 2005-051-037-PR. Comments must be received no later than 5:00 p.m., April 24, 2006. Copies of the proposed rules can be obtained from the commission's Web site at http://www.tceq.state.tx.us/nav/rules/propose_adopt.html . For further information, please contact Kimberly Wilson, Water Quality Division, (512) 239-4644.

STATUTORY AUTHORITY

The new rules are proposed under TWC, §5.013, which establishes the general jurisdiction of the commission over other areas of responsibility as assigned to the commission under the TWC and other laws of the state; §5.102, which establishes the commission's general authority necessary to carry out its jurisdiction; §5.103 and §5.105, which authorize the commission to adopt rules and policies necessary to carry out its responsibilities and duties under TWC, §5.013; §5.120, which states the commission shall administer the law so as to promote the judicious use and maximum conservation and protection of the quality of the environment and the natural resources of the state; §26.011, which provides the commission with authority to adopt any rules necessary to carry out its powers, duties, and policies and to protect water quality in the state; and §26.027, which authorizes the commission to issue permits and amendments to permits for the discharge of waste or pollutants into or adjacent to water in the state. Rulemaking authority is expressly granted to the commission to adopt rules under TWC, Chapter 26 as amended by SB 1354, §2.

The proposed new rules implement SB 1354, which creates TWC, Chapter 26, new Subchapter M. SB 1354, §2, expressly requires the commission to adopt rules adequate to protect the water resources in a water quality protection area for inclusion in any authorization, including an individual or general permit.

§311.71.Definitions.

The following words and terms, when used in the subchapter, have the following meanings.

(1) 25-year, 24-hour rainfall event--The maximum rainfall event with a probable recurrence interval of once in 25 years, with a duration of 24 hours, as defined by the National Weather Service and Technical Paper Number 40, "Rainfall Frequency Atlas of the U.S.," May 1961, and subsequent amendments; or equivalent regional or state rainfall information.

(2) Aggregates--Any commonly recognized construction material originating from a quarry or pit by the disturbance of the surface, including dirt, soil, rock asphalt, granite, gravel, gypsum, marble, sand, stone, caliche, limestone, dolomite, rock, riprap, or other nonmineral substance. The term does not include clay or shale mined for use in manufacturing structural clay products.

(3) Aquifer--A saturated permeable geologic unit that can transmit, store, and yield to a well, the quality and quantities of groundwater sufficient to provide for a beneficial use. An aquifer can be composed of unconsolidated sands and gravels; permeable sedimentary rocks, such as sandstones and limestones; and/or heavily fractured volcanic and crystalline rocks. Groundwater within an aquifer can be confined, unconfined, or perched.

(4) Best management practices--Any prohibition, management practice, maintenance procedure, or schedule of activity designed to prevent or reduce the pollution of water in the state. Best management practices include treatment, specified operating procedures, and practices to control site runoff, spillage or leaks, sludge or waste disposal, or drainage from raw material storage areas.

(5) John Graves Scenic Riverway--That portion of the Brazos River Basin and its contributing watershed, located downstream of the Morris Shepard Dam on the Possum Kingdom Reservoir in Palo Pinto County, Texas, and extending to the county line between Parker and Hood Counties, Texas.

(6) Natural hazard lands--Geographic areas in which natural conditions exist that pose or, as a result of quarry operations, may pose a threat to the health, safety, or welfare of people, property, or the environment, including areas subject to landslides, cave-ins, large or encroaching sand dunes, severe wind or soil erosion, frequent flooding, avalanches, and areas of unstable geology.

(7) Navigable--Designated by the United States Geological Survey (USGS) as perennial on the most recent topographic map(s) published by the USGS, at a scale of 1:24,000.

(8) Operator--Any person engaged in or responsible for the physical operation and control of a quarry.

(9) Overburden--All materials displaced in an aggregates extraction operation that are not, or reasonably would not be expected to be, removed from the affected area.

(10) Owner--Any person having title, wholly or partly, to the land on which a quarry exists or has existed.

(11) Pit--An open excavation from which aggregates have been, or are being, extracted with a depth of five feet or more below the adjacent and natural ground level.

(12) Quarry--The site from which aggregates for commercial sale are being, or have been, removed or extracted from the earth to form a pit, including the entire excavation, stripped areas, haulage ramps, and the immediately adjacent land on which the plant processing the raw materials is located. The term does not include any land owned or leased by the responsible party not being currently used in the production of aggregates for commercial sale or an excavation to mine clay or shale for use in manufacturing structural clay products.

(13) Quarrying--The current and ongoing surface excavation and development without shafts, drafts, or tunnels, with or without slopes, for the extraction of aggregates for commercial sale from natural deposits occurring in the earth.

(14) Reclamation--The land treatment processes designed to minimize degradation of water quality, damage to fish or wildlife habitat, erosion, and other adverse effects from quarries. Reclamation includes backfilling, soil stabilization and compacting, grading, erosion control measures, appropriate revegetation, or other measures, as appropriate.

(15) Refuse--All waste material directly connected with the production, cleaning, or preparation of aggregates that have been produced by quarrying.

(16) Responsible party--Any owner, operator, lessor, or lessee who is primarily responsible for overall function and operation of a quarry located in the water quality protection area as defined in this section.

(17) Restoration--Those actions necessary to change the physical, chemical, and/or biological qualities of a receiving water body in order to return the water body to its background condition. Restoration includes on- and off-site stabilization to reduce or eliminate an unauthorized discharge, or substantial threat of an unauthorized discharge.

(18) Structural controls--Physical, constructed features that prevent or reduce the discharge of pollutants. Structural controls include, but are not limited to, sedimentation/detention ponds; velocity dissipation devices such as rock berms, vegetated berms, and buffers; and silt fencing.

(19) Tertiary containment--A containment method by which an additional wall or barrier is installed outside of the secondary storage vessel or other secondary barrier in a manner designed to prevent a release from migrating beyond the tertiary wall or barrier before the release can be detected.

(20) Water body--Any navigable watercourse, river, stream, or lake within the water quality protection area.

(21) Water quality protection area--The Brazos River and its contributing watershed within Palo Pinto and Parker Counties, Texas, downstream from the Morris Shepard Dam, and extending to the county line between Parker and Hood Counties, Texas.

§311.72.Applicability.

(a) This subchapter applies to quarrying within the water quality protection area designated by this subchapter, in the John Graves Scenic Riverway.

(b) This subchapter does not apply to:

(1) the construction or operation of a municipal solid waste facility regardless of whether the facility includes a pit or quarry that is associated with past quarrying;

(2) a quarry, or associated processing plant, that since on or before January 1, 1994, has been in regular operation without cessation of operation for more than 30 consecutive days and under the same ownership;

(3) the construction or modification of associated equipment located on a quarry site or associated processing plant site described in paragraph (2) of this subsection;

(4) an activity, facility, or operation regulated under Natural Resources Code, Texas Surface Coal Mining and Reclamation Act, Chapter 134; or

(5) quarries mining clay and shale for use in manufacturing structural clay products.

(c) Operations or facilities to which this subchapter does not apply under subsection (b)(2) and (3) of this section, must maintain adequate documentation on site sufficient to demonstrate their exclusions.

(1) Documentation demonstrating ownership includes, but is not limited to: deeds, property tax receipts, leases, or insurance records.

(2) Documentation demonstrating continuous operation without cessation of operation for more than 30 consecutive days beginning on or before January 1, 1994, includes, but is not limited to: production records, sales receipts, payroll records, sales tax records, income tax records, or financial statements/reports.

§311.73.Prohibitions.

(a) The construction or operation of any new quarry, or the expansion of any existing quarry, within 200 feet of any water body located within a water quality protection area in the John Graves Scenic Riverway is prohibited.

(b) Unless authorized under this subchapter, the construction or operation of any new quarry, or the expansion of an existing quarry, located between 200 feet and 1,500 feet of any water body located within a water quality protection area in the John Graves Scenic Riverway is prohibited.

§311.74.Authorization.

(a) Any responsible party shall obtain a permit subject to the requirements of Chapters 205 and 305 of this title (relating to General Permits for Waste Discharges and Consolidated Permits).

(b) The following additional requirements imposed through this subchapter for discharges from quarries located within a water quality protection area in the John Graves Scenic Riverway are based on the location of the quarry.

(1) In addition to the requirements of Chapters 205 and 305 of this title, a quarry located within a water quality protection area in the John Graves Scenic Riverway must meet the following requirements:

(A) §311.75(1) of this title (relating to Permit Application Requirements);

(B) §311.79 of this title (relating to Performance Criteria for Quarries Located Within a Water Quality Protection Area in the John Graves Scenic Riverway); and

(C) §311.81(a) of this title (relating to Financial Responsibility for Quarries Located Within a Water Quality Protection Area in the John Graves Scenic Riverway).

(2) In addition to the requirements of Chapters 205 and 305 of this title and paragraph (1) of this section, any quarry located within the 100-year floodplain or within one mile of a water body within a water quality protection area in the John Graves Scenic Riverway must obtain an individual permit.

(3) In addition to the requirements of Chapters 205 and 305 of this title and paragraph (1) and (2) of this section, all quarries located within 200 feet to 1,500 feet of a water body within a water quality protection area in the John Graves Scenic Riverway, and subject to the prohibition under §311.73(b) of this title (relating to Prohibitions), must meet the following requirements:

(A) §311.75(2) of this title;

(B) §311.80 of this title (relating to Additional Performance Criteria for Quarries Located Between 200 Feet and 1,500 Feet of a Water Body Located Within a Water Quality Protection Area in the John Graves Scenic Riverway); and

(C) §311.81(b) of this title.

(4) For any quarry subject to the provisions of paragraph (2) of this section, a part of which is also located outside of the 100-year floodplain of, or beyond one mile from, a water body, the requirements of paragraph (2) of this section are applicable to the entire quarry. The executive director may waive, modify, or otherwise adjust these requirements for that portion of the quarry located outside of the 100-year floodplain of, or beyond one mile from, a water body.

(5) For any quarry subject to the provisions of paragraph (3) of this section, a part of which is also located more than 1,500 feet from a water body, the requirements of paragraph (3) of this section will be applicable to the entire quarry. The executive director may waive, modify, or otherwise adjust these requirements for that portion of the quarry located more than 1,500 feet from a water body.

§311.75.Permit Application Requirements.

Any responsible party who is required to obtain a permit, or who requests an amendment, modification, or renewal of a permit, shall complete, sign, and submit an application to the executive director, according to the provisions in Chapters 205 and 305 of this title (relating to General Permits for Waste Discharges and Consolidated Permits). Quarries located in the John Graves Scenic Riverway must submit additional information based on the location of the quarry.

(1) A quarry located within a water quality protection area in the John Graves Scenic Riverway must submit the following:

(A) a Restoration Plan as outlined in §311.76 of this title (relating to Restoration Plan); and

(B) evidence of sufficiently funded bonding or proof of financial resources to mitigate, remediate, and correct any potential future effects on a water body by an unauthorized discharge to a water body in an amount no less than that specified in §311.81(a) of this title (relating to Financial Responsibility for Quarries Located Within a Water Quality Protection Area in the John Graves Scenic Riverway).

(2) In addition to the permit application requirements specified in paragraph (1) of this section, all applications for quarries located within 200 feet to 1,500 feet of any water body within a water quality protection area in the John Graves Scenic Riverway must include:

(A) a Technical Demonstration as outlined in §311.77 of this title (relating to Technical Demonstration); and

(B) a Reclamation Plan as outlined in §311.78 of this title (relating to Reclamation Plan).

(3) In addition to the permit application requirements in paragraphs (1) and (2) of this section, the executive director may require any additional information deemed appropriate and necessary to demonstrate compliance with the provisions of Texas Water Code, Chapter 26, Subchapter M or this subchapter.

§311.76.Restoration Plan.

(a) The Restoration Plan must include a proposed plan of action for how the responsible party will restore the receiving waters to background conditions in the event of an unauthorized discharge that affects those receiving waters. The Restoration Plan, at a minimum, must:

(1) identify receiving waters at risk of an unauthorized discharge from the quarry;

(2) describe the process to be used in documenting the existing physical, chemical, and/or biological background conditions of each of the adjacent receiving waters;

(3) provide a schedule for completing the determination of background conditions of each of the receiving waters and for updating background conditions in the future, as appropriate;

(4) identify the goals and objectives of potential restoration actions;

(5) provide a reasonable range of restoration alternatives and the preferred restoration alternative that may be implemented to return the affected waters to background conditions in the event of an unauthorized discharge;

(6) describe the process for monitoring the effectiveness of the preferred restoration action, including performance criteria, that will be used to determine the success of the restoration or need for interim site stabilization;

(7) identify a process for public involvement in the selection of the restoration alternative to be implemented to restore the receiving waters to background conditions; and

(8) provide a detailed estimate of the maximum probable costs required to complete a restoration action, given the size, location, and description of the quarry and the nature of the receiving waters. The maximum probable cost must be based on the costs to a third party conducting the action without a financial interest or ownership in the quarry.

(b) Certification of the Restoration Plan must be provided by a licensed Texas professional engineer.

§311.77.Technical Demonstration.

(a) The Technical Demonstration must include, at a minimum:

(1) a time schedule for the proposed quarry from initiation to termination of operations, including reclamation;

(2) a detailed description of the type of quarrying to be conducted, including the processes/methods employed (e.g., pit mining where blasting is employed);

(3) a geological description of the quarry area, including a detailed description of the material deposit: type, geographical extent, depth, and volume; and a description of the general area geology;

(4) identification and a detailed description of any other operations on site, including raw-material processing and/or secondary products (e.g., cement) processing;

(5) identification and a detailed description of type, character, and volume of wastewater and storm water generated on site;

(6) a topographic map, at a scale appropriate to represent the quarry operation and all of the following within the boundaries of the quarry:

(A) waterbodies;

(B) existing and proposed roads including quarry access roads;

(C) existing and proposed railroads;

(D) the 100-year floodplain boundaries, if applicable;

(E) structures (e.g., office buildings);

(F) the location of all known wells including, but not limited to, water wells, oil wells, and uplugged and abandoned wells;

(G) active, post, and reclaimed quarrying areas;

(H) buffer areas;

(I) raw material, intermediate material, final product, waste product, byproduct, and/or ancillary material storage and processing areas;

(J) chemical and fuel storage areas;

(K) vehicle/equipment maintenance, cleaning, and fueling areas;

(L) vehicle/equipment loading and unloading areas;

(M) baghouses and other air treatment units exposed to precipitation; and

(N) waste disposal areas;

(7) a Surface Water Drainage and Water Accumulation Plan. The Surface Water Drainage and Water Accumulation Plan must be designed to prevent damage to fish, wildlife, and fish/wildlife habitat from erosion, siltation, and runoff from quarry operations. The Surface Water Drainage and Water Accumulation Plan must, at a minimum:

(A) describe the use and monitoring of structural controls and best management practices as identified in paragraph (8) of this subsection designed to control erosion, siltation, and runoff; and

(B) provide a topographic map, at a scale appropriate to represent the quarry operation and all of the following within the boundaries of the quarry:

(i) the location of each process wastewater and/or storm water outfall;

(ii) an outline of the drainage area that contributes storm water to each outfall;

(iii) treatment, detention, and water storage tanks and ponds;

(iv) structural controls for managing storm water and/or process wastewater; and

(v) physical features of the site that would influence storm water runoff or contribute a dry weather flow; and

(8) a Best Available Technology Evaluation. The Best Available Technology Evaluation assists staff in reviewing and determining the best available technology designed to control erosion, siltation, and runoff from the quarry to minimize disturbance and adverse effects to fish, wildlife, and related environmental resources. Where practical, the Best Available Technology Evaluation must assist staff in reviewing and determining best available technology designed to enhance fish, wildlife, and related environmental resources.

(A) The Best Available Technology Evaluation must assess the use of structural controls and best management practices.

(B) The Best Available Technology Evaluation must evaluate performance criteria outlined in §311.79 and §311.80 of this title (relating to Performance Criteria for Quarries Located Within a Water Quality Protection Area in the John Graves Scenic Riverway and Additional Performance Criteria for Quarries Located Between 200 Feet and 1,500 Feet of a Water Body Located Within a Water Quality Protection Area in the John Graves Scenic Riverway).

(C) Structural control design and construction must be certified by a licensed Texas professional engineer. Design and construction plans/specifications must be maintained on site and made available at the request of the executive director; and

(9) a procedure and schedule for reviewing the Technical Demonstration for consistency with quarry operations and site conditions and effectiveness in controlling erosion, siltation, and runoff.

(b) Certification of the Technical Demonstration must be provided by a licensed Texas professional engineer.

§311.78.Reclamation Plan.

(a) The Reclamation Plan establishes procedures and standards for reclamation of the quarry.

(1) The Reclamation Plan must, at a minimum:

(A) provide a description of the proposed use of the disturbed area following reclamation;

(B) develop site-specific standards for reclamation appropriate to the end use proposed in subparagraph (A) of this paragraph that addresses the following:

(i) removal or final stabilization of all raw material, intermediate material, final product, waste product, byproduct, and/or ancillary material;

(ii) removal of waste or closure of all waste disposal areas;

(iii) removal of structures, where appropriate;

(iv) removal and reclamation of all temporary roads and/or railroads;

(v) backfilling, regrading, and recontouring;

(vi) slope stability for remaining highwalls and detention ponds;

(vii) revegetation of the reclaimed area giving consideration to species diversity and the use of native species;

(viii) establishment of wildlife habitat, giving consideration to creation/expansion of habitat for endangered and threatened species, where applicable;

(ix) establishment of drainage patterns;

(x) establishment of permanent control structures (e.g., retention ponds), where necessary, to address erosion, siltation, and runoff from post quarrying and reclaimed areas; and

(xi) removal of all equipment;

(C) provide a description of how reclamation will be conducted (e.g., phased reclamation) and a timetable for the completion of reclamation activities.

(2) The Reclamation Plan must include a detailed estimate of the maximum probable cost required to complete and implement the plan. The maximum probable cost must be based on the cost to a third party conducting the reclamation without a financial interest or ownership in the quarry operation.

(b) Certification of the Reclamation Plan must be provided by a licensed Texas professional engineer.

§311.79.Performance Criteria for Quarries Located Within a Water Quality Protection Area in the John Graves Scenic Riverway.

The following performance criteria are applicable to quarries located within a water quality protection area in the John Graves Scenic Riverway.

(1) Discharges from quarries shall meet the following effluent limitations.

Figure: 30 TAC §311.79(1)

(2) Discharges from quarries resulting from a rainfall event greater than the 25-year, 24-hour rainfall event are not subject to effluent limitations in paragraph (1) of this section.

(3) Discharges from quarries shall be monitored as follows.

Figure: 30 TAC §311.79(3)

(4) Results of analysis for monitoring conducted as specified in §311.75(3) of this title (relating to Permit Application Requirements) shall be submitted monthly on approved self-report forms. Monitoring and reporting records, including strip charts and records of calibration and maintenance, shall be retained on site, or shall be readily available for review by a commission representative for a period of three years from the date of the record or sample, measurement, or report.

(5) The permittee shall install a permanent rain gauge at the plant site and keep daily records of rainfall and the resulting flow. Monitoring records shall be retained on site, or shall be readily available for review by a commission representative for a period of three years from the date of the record.

§311.80.Additional Performance Criteria for Quarries Located Between 200 Feet and 1,500 Feet of a Water Body Located Within a Water Quality Protection Area in the John Graves Scenic Riverway.

Authorizations to discharge from quarries located between 200 feet and 1,500 feet of a water body within a water quality protection area in the John Graves Scenic Riverway require the permittee to satisfy the following performance criteria. An evaluation of these performance criteria must be incorporated into the Technical Demonstration, as required in §311.77 of this title (relating to Technical Demonstration).

(1) The down-gradient perimeter of the quarry must include a final control structure to manage the discharge of wastewater and/or storm water. The final control structure must be designed and constructed as follows.

(A) Certification of the final control structure design and construction must be provided by a licensed Texas professional engineer. Design and construction plans and specifications must be maintained on site and made available at the request of the executive director.

(B) The final control structure side slopes must not exceed a gradient of 1:3 (33%).

(C) The final control structure must be designed to impound, at minimum, the volume of water resulting from a 25-year, 24-hour rainfall event for the final control structure drainage area.

(D) The final control structures must be properly stabilized (via use of vegetation, riprap, and/or other acceptable technique) to prevent the final control structure from being a source of pollution and/or to prevent structural failure.

(E) The final control structure must be inspected once every 14 calendar days and within 24 hours of any rainfall event totaling 0.5 inches or greater. Where an inspection identifies failure and/or problems with the final control structure, corrections must be made within seven calendar days of the inspection. Records of these inspections and any site stabilizations must be maintained on site for a period of three years and made available to the executive director, upon request.

(F) A minimum 200-foot vegetative buffer must be maintained between the final control structure and any water body.

(2) All treatment, detention, and water storage tanks and ponds must be operated to maintain a minimum freeboard of two feet.

(3) A permanent depth marker shall be installed and maintained on all treatment, detention, and water storage tanks and ponds. The depth marker shall identify the volume required for the design rainfall event, as specified in paragraph (1)(C) of this section, and freeboard.

(4) The quarry operation must demonstrate compliance with all the requirements of 36 Code of Federal Regulations Part 800 (Protection of Historic Properties) and 9 Texas Natural Resources Code, Chapter 191 (Antiquities Code).

(5) The quarry operation must not have a detrimental effect on any federal endangered/threatened, aquatic/aquatic-dependent species/proposed species; or their critical habitat.

(6) Waste management units must be located a minimum horizontal distance from water wells, in accordance with 16 TAC Chapter 76 (relating to Water Well Drillers and Water Well Pump Installers), or where those regulations do not apply, the minimum distance to a water well must be 500 feet.

(7) Secondary containment of chemical and fuel storage is required. Where quarry operations overlay aquifer and/or aquifer recharge areas and sufficient confining layers do not exist to preclude contamination of groundwater, tertiary containment is required for all chemical and fuel storage.

(8) Quarry operations must not be located on natural hazard land, areas subject to frequent flooding, or in areas of unstable geology.

§311.81.Financial Responsibility for Quarries Located Within a Water Quality Protection Area in the John Graves Scenic Riverway.

(a) An owner or operator of a quarry located within a water quality protection area in the John Graves Scenic Riverway shall establish and maintain financial assurance for restoration in accordance with Chapter 37, Subchapter W of this title (relating to Financial Assurance for Quarries). The amount of financial assurance must be no less than the amount determined by the executive director as sufficient to meet the requirements of the Restoration Plan in §311.76(8) of this title (relating to Restoration Plan).

(b) An owner or operator of a quarry located between 200 feet and 1,500 feet of a water body within a water quality protection area in the John Graves Scenic Riverway shall establish and maintain financial assurance for reclamation in accordance with Chapter 37, Subchapter W of this title. The amount of financial assurance must be no less than the amount determined by the executive director as sufficient to meet the requirements of the Reclamation Plan in §311.78(2) of this title (relating to Reclamation Plan).

§311.82.Expiration.

This subchapter expires September 1, 2025.

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 9, 2006.

TRD-200601537

Stephanie Bergeron Perdue

Acting Deputy Director, Environmental Law Division

Texas Commission on Environmental Quality

Earliest possible date of adoption: April 23, 2006

For further information, please call: (512) 239-5017


Chapter 335. INDUSTRIAL SOLID WASTE AND MUNICIPAL HAZARDOUS WASTE

The Texas Commission on Environmental Quality (TCEQ or commission) proposes to amend §§335.1, 335.10 - 335.12, 335.15, 335.41, 335.67 - 335.69, 335.76, 335.112, and 335.152.

BACKGROUND AND SUMMARY OF THE FACTUAL BASIS FOR THE PROPOSED RULES

The purpose of the proposed rules is to implement the United States Environmental Protection Agency's (EPA) new Uniform Hazardous Waste Manifest form, continuation sheet, and instructions for completing the form as published in the March 4, 2005, issue of the Federal Register (70 FR 10776) and amended in the June 16, 2005, issue of the Federal Register (70 FR 35034). The proposed rules would also add three definitions, change when a container is empty, and modify placarding requirements. Manifesting requirements for Texas Class 1 wastes are proposed to conform to the new hazardous waste manifest requirements. The key component of this manifest system is the Uniform Hazardous Waste Manifest, which is a form prepared by all generators who transport, or offer for transport, hazardous waste for off-site treatment, recycling, storage, or disposal. Currently, the manifest is a paper document containing multiple copies of a single form. When completed, it contains information on the type and quantity of the waste being transported, instructions for handling the waste, and signature lines for all parties involved in the disposal process. The manifest is required by the Department of Transportation (DOT), the EPA, and the State of Texas. Manifests are required for both hazardous waste and Texas Class 1 waste. Each party that handles the waste signs the manifest and retains a copy for themselves. This ensures critical accountability in the transportation and disposal processes. Once the waste reaches its destination, the receiving facility returns a signed copy of the manifest to the generator, confirming that the waste has been received by the designated facility.

The EPA has established new requirements revising the Uniform Hazardous Waste Manifest and the requirements for completing the form, as well as adding three definitions, changing when a container is empty, and modifying placarding requirements. Manifesting requirements for Texas Class 1 wastes are proposed to continue to conform to the new hazardous waste manifest requirements. The revisions will standardize the content and appearance of the Uniform Hazardous Waste Manifest, EPA Form 8700-22, and continuation sheet, EPA Form 8700-22A; make the forms available from a greater number of sources; and adopt new procedures for tracking certain types of waste shipments with the manifest. These types of shipments include hazardous wastes that destination facilities reject, wastes consisting of residues from non-empty hazardous waste containers, and wastes entering or leaving the United States.

The State of Texas requires a manifest for Texas Class 1 wastes under specific circumstances. Texas Class 1 wastes are not regulated by the EPA as hazardous wastes. This proposal does not affect when a manifest is required for Class 1 wastes; however, it does propose to change the manifest requirements for Texas Class 1 waste to conform with federal requirements. This is being proposed to avoid any possible confusion between two different manifest systems.

The EPA has established an 18-month transition to the new form. During this 18-month period, handlers will only use the old form. The old forms may still be obtained from existing sources. The 18-month period ends on September 5, 2006. On that date, for hazardous waste shipments, federal manifest requirements will trump state manifest requirements where the state requirements do not conform with the federal requirements and only the new Uniform Hazardous Waste Manifest may be used. Therefore, the commission is proposing these rules so that the Texas manifest requirements mirror federal requirements. The commission is proposing that the rules be effective on September 5, 2006. This includes the proposed revisions to the Texas Class 1 manifest requirements.

Handlers can obtain new forms from any source that has registered with EPA to print and distribute the form. The EPA will not distribute forms; rather, the EPA will oversee the printing requirements and ensure that registered printers follow them. The EPA will maintain a list of entities that have been approved to print/distribute the form, so that the public may acquire the forms from one of the approved printers. States may register to print the new form, but state rules cannot establish the state as the exclusive source of forms. The TCEQ is not planning to register to print forms, but will provide free manifests to those individuals that need 50 or less in a given year. This will be accomplished by the TCEQ purchasing a minimum supply of the Uniform Hazardous Waste Manifest from a registered printer.

SECTION BY SECTION DISCUSSION

The commission proposes administrative changes throughout these sections to be consistent with Texas Register requirements and other agency rules and guidelines and to conform to the drafting standards in the Texas Legislative Council Drafting Manual , November 2004.

The commission proposes to amend Chapter 335, Industrial Solid Waste and Municipal Hazardous Waste, to incorporate the new EPA Uniform Hazardous Waste Manifest, EPA Form 8700-22, the continuation sheet, EPA Form 8700-22A, and instructions for completing the form as published in the March 4, 2005, issue of the Federal Register (70 FR 10776) and amended in the June 16, 2005, issue of the Federal Register (70 FR 35034). The proposed rules would also add three definitions, change when a container is empty, modify placarding requirements, and change manifesting requirements for Texas Class 1 wastes to conform to the federal requirements.

Subchapter A - Industrial Solid Waste and Municipal Hazardous Waste In General

§335.1. Definitions.

Section 335.1 is proposed to be amended by adding paragraph (13) "Captive facility," a facility that accepts wastes from only related (within the same corporation) off-site generators; paragraph (14) "Captured facility," a manufacturing or production facility that generates an industrial solid waste or hazardous waste that is routinely stored, processed, or disposed of on a shared basis in an integrated waste management unit owned, operated by, and located within a contiguous manufacturing complex; and paragraph (15) "Captured receiver," a receiver which is located within the property boundaries of the generators from which it receives waste. "Captured facility" is being removed from paragraph (20) and placed into its own paragraph. "Captive facility" and "Captured receiver" are proposed to be added to define the terms used by the TCEQ for the regulated community. These new definitions are consistent with the commission's interpretation of these words in the past. 40 Code of Federal Regulations (CFR) §260.10 removes the definition of "Manifest document number," revises the definitions of "Designated facility" and "Manifest," and adds the definition of "Manifest tracking number." The commission proposes mirroring these removals and additions in this section and renumbering the definitions appropriately. These additions and amendments are necessary to accurately reflect EPA's definitions, terms, and use for regulating hazardous waste.

§335.10. Shipping and Reporting Procedures Applicable to Generators of Hazardous Waste or Class 1 Waste and Primary Exporters of Hazardous Waste.

Section 335.10 sets forth the procedures related to generators of hazardous or Class 1 waste and primary exporters of hazardous waste consigned to a foreign country and is proposed to be amended by incorporating the EPA changes regarding the manifest document format, instructions, and the special provisions for Class 1 waste. Under the statutory authorities of both the Resource Conservation and Recovery Act (RCRA) and DOT, all states will implement the new (nationally uniform) RCRA Hazardous Waste Manifest (EPA Form 8700-22) and if necessary the continuation sheet (EPA Form 8700-22A). Generators must ensure that all hazardous and Class 1 wastes offered for transportation are accompanied by a manifest as required in this section. All manifests for hazardous waste must be completed according to the instructions found in the Appendix of 40 CFR Part 262. Itemized instructions for completing the manifest are proposed to be removed from the rules and replaced by references to the Appendix of 40 CFR Part 262. The Uniform Hazardous Waste Manifest may be obtained from any source that has received approval from and registered with the EPA as a supplier of the manifest as mandated in 40 CFR §262.21(g)(1). Treatment, storage, and disposal facilities that offer for transport a rejected hazardous waste load are included in the rules requiring manifests by 40 CFR §262.20(a)(1) and (2). The commission proposes to amend this section to conform with these requirements. Texas tracks hazardous and Class 1 wastes by the Texas Waste Code and therefore, it is proposed that all manifests contain the Texas Waste Code for each waste listed. The proposed rules would require that all manifests for Class 1 waste be completed according to the instructions found in the Appendix of 40 CFR Part 262 with the following modifications: in accordance with the instructions, it is proposed that the Texas Waste Codes be used in lieu of the EPA waste code and the TCEQ generator, transporter, and treatment, storage, and disposal facility identification numbers be used when EPA identification numbers are not required. The proposed changes would require a generator to ensure interstate and intrastate shipments of hazardous waste are designated for delivery and, in the case of intrastate shipments, are delivered to facilities that are authorized to operate under an approved state program or the federal program.

§335.11. Shipping Requirements for Transporters of Hazardous Waste or Class 1 Waste.

Section 335.11 sets forth the procedures related to transporters of hazardous or Class 1 waste for which a manifest is required and is proposed to be amended to be consistent with 40 CFR Part 263. Specific instructions are proposed to be replaced with references to the Appendix of 40 CFR Part 262. In the case of hazardous waste exports, it is proposed that the transporter must ensure that the shipment conforms to the requirements set forth in the regulations contained in 40 CFR §263.20(a). The proposal would require that transporters who transport hazardous waste or Class 1 waste out of the United States will comply with manifest requirements as set forth in §335.10. If the transporter cannot deliver the waste because of an emergency condition other than rejection of the waste by the designated facility, the new rules would require the transporter to contact the generator for further directions and revise the manifest according to the generator's instructions. If hazardous waste is partially rejected by the designated facility while the transporter is on the facility's premises, it is proposed that the transporter obtain a copy of the original manifest that includes the facility's date and signature, the manifest tracking number of the new manifest that will accompany the shipment, and a description of the partial rejection or container residue on the manifest. If the transporter is forwarding the rejected part of the shipment or a regulated container residue to an alternate facility or returning it to the generator, or if the original manifest is not used, the proposed rules call for the transporter to obtain a new manifest to accompany the shipment.

§335.12. Shipping Requirements Applicable to Owners or Operators of Treatment, Storage, or Disposal Facilities.

Section 335.12 sets forth the procedures related to treatment, storage, and disposal facilities and is proposed to be amended by changing the section title to be consistent with the term "treatment" as used by the TCEQ and by 40 CFR Part 264. The amendment is proposed to conform with EPA manifest requirements. The EPA new rules change the manifest to incorporate specific areas and instructions for rejected wastes. Upon rejecting waste or identifying a container residue that exceeds the quantity limits for "empty" containers, the facility must consult with the generator prior to forwarding the waste to another facility that can manage the waste. The facility must send the waste to the alternate facility or back to the generator within 60 days of the rejection or the container residue identification. While the facility is making arrangements for forwarding rejected wastes or residues to another facility under this section, it must ensure that either the delivering transporter retains custody of the waste, or the facility must provide for secure, temporary custody of the waste, pending delivery of the waste to the first transporter designated on the manifest. A new manifest is required for full or partial load rejections and residues that are to be sent off-site to an alternate facility or back to the generator. For full load rejections that are made while the transporter remains present at the facility, the facility may forward the rejected shipment to the alternate facility, and the new manifest must include all required information. When a rejected full load is taken to an alternate facility or returned to the generator, a copy of the original manifest will be annotated with the rejecting facility's signature, date, description of the rejection, the name, address, phone number, and EPA identification number for the alternate facility or generator to whom the shipment must be delivered. If a facility rejects a waste or identifies a container residue that exceeds the quantity limits for "empty" containers after it has signed, dated, and returned a copy of the manifest to the delivering transporter or to the generator, the facility must amend its copy of the manifest to indicate the rejected wastes or residues in the discrepancy space of the amended manifest. The facility must also copy the manifest tracking number of the new manifest to the discrepancy space of the amended manifest, and must re-sign and date the manifest to certify the information as amended. These amendments are proposed to conform to EPA rules and establish manifest discrepancies as a significant difference between the quantity or type of hazardous waste designated on the manifest or shipping paper, and the quantity and type of hazardous waste a facility actually receives; rejected wastes, which may be a full or partial shipment that the treatment, storage, and disposal facility cannot accept; or container residues, which are residues that exceed the quantity limits for "empty" containers set forth in 40 CFR §261.7(b). Significant differences in quantity for bulk weight are variations greater than 10% in weight and for batch waste are any variation in piece count. Significant differences in type are obvious differences which can be discovered by inspection or waste analysis. Upon discovering a significant difference in quantity or type, the owner or operator must attempt to reconcile the discrepancy with the waste generator or transporter. The facility must retain the amended manifest for at least three years from the date of amendment, and must within 30 days, send a copy of the amended manifest to the transporter and generator that received copies prior to the manifest being amended. It is further proposed that a facility that receives hazardous or Class 1 waste from a rail or water transporter be required to retain at the facility a copy of each shipping paper and manifest. It is proposed that if a facility receives waste imported from a foreign source, the receiving facility mails a copy of the manifest to the International Compliance Assurance Division, OFA/OECA, EPA. This section is proposed to be consistent with the EPA changes listed in this paragraph.

§335.15. Recordkeeping and Reporting Requirements Applicable to Owners or Operators of Treatment, Storage, or Disposal Facilities.

Section 335.15 sets forth procedures for owners and operators who receive hazardous or Class 1 waste from off-site sources or who have notified that they intend to receive hazardous or Class 1 waste from off-site sources. This section is proposed to be amended by changing the section title to be consistent with the term "treatment" as used by the agency and by outlining that if a facility accepts for treatment, storage, or disposal any hazardous waste or Class 1 waste from an off-site source without an accompanying manifest, or without an accompanying shipping paper, and if the waste is not excluded from the manifest requirement, that the owner or operator must prepare and submit a letter to the executive director within 15 days after receiving the waste and include all required information.

Subchapter B - Hazardous Waste Management General Provisions

§335.41. Purpose, Scope and Applicability.

Section 335.41 sets forth procedures implementing the Texas hazardous waste program, which controls from point of generation to ultimate disposal, those wastes that have been identified by the administrator of the EPA in 40 CFR Part 261. This section is proposed to be amended by adjusting the number of gallons that determine whether a container is "empty " from 110 to 119 gallons. The term "processing" is proposed to be replaced with "treatment" for consistency of use by the TCEQ and by 40 CFR Part 264.

Subchapter C - Standards Applicable to Generators of Hazardous Waste

§335.67. Marking.

Section 335.67 sets forth provisions relating to the marking of packages or containers of hazardous waste and is proposed to be amended by changing the number of gallons used to determine the markings on the containers. The commission is proposing to change the number of gallons from 110 to 119 and how the container is to be marked. It is proposed that a generator must mark each container of 119 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 U.S. Environmental Protection Agency." Markings are also proposed to include the generator's name and address, the generator EPA identification number, and the manifest tracking number.

§335.68. Placarding.

Section 335.68 sets forth provisions for placarding according to the DOT regulations and is proposed to be amended with added verbiage to be used in instances where placards are not required. If placards are not required, the proposed rules would require a generator to mark each motor vehicle according to 49 CFR §171.3(b)(1), which states that no person may accept for transportation, transport, or deliver a hazardous waste for which a manifest is required unless that person has marked each motor vehicle used to transport hazardous waste in accordance with §390.21 or §1058.2 even though placards may not be required.

§335.69. Accumulation Time.

Section 335.69 sets forth provisions for generators accumulating waste on-site and is proposed to be amended by adding subsection (m). The proposal would allow a generator to send a shipment of hazardous waste to a designated facility with the understanding that the designated facility can accept and manage the waste, and later receive that shipment back as a rejected load or residue in accordance with the manifest discrepancy provisions of §335.10, to accumulate the returned waste on-site depending on the amount of hazardous waste on-site in that calendar month.

§335.76. Additional Requirements Applicable to International Shipments.

Section 335.76 sets forth provisions for international shipments including primary exporters and is proposed to be amended by having importers and exporters obtain the Uniform Hazardous Waste Manifest from any source that is registered with the EPA as a supplier of manifests. In accordance with EPA requirements, it is proposed that the primary exporter must comply with manifest regulations of §335.10 except that the primary exporter must attach to the manifest, which accompanies the hazardous waste shipment, a copy of the EPA acknowledgment of consent for the shipment. For exports by rail or water (bulk shipment), the primary exporter must provide the transporter with an EPA acknowledgment of consent which must accompany the hazardous waste but need not be attached to the manifest. For exports by water (bulk shipment) the primary exporter would attach the copy of the EPA acknowledgment of consent to the shipping paper.

Subchapter E - Interim Standards for Owners and Operators of Hazardous Waste Treatment, Storage, or Disposal Facilities

§335.112. Standards.

Subchapter E sets forth provisions for interim standards for TSDFs and is proposed to be amended by changing the title to be consistent with the term "treatment" as used by the agency. This section sets forth provisions for adoption by reference regulations contained in 40 CFR Part 265. Paragraph (4) is proposed to be amended to reference all applicable federal manifest requirements, which includes the addition of 40 CFR §260.10 and §365.70, and to update the date of the last Federal Register affecting the incorporated rules.

Subchapter F - Permitting Standards for Owners and Operators of Hazardous Waste Treatment, Storage, or Disposal Facilities

§335.152. Standards.

Subchapter F sets forth provisions for the permitting standards for TSDFs and is proposed to be amended by changing the title to be consistent with the term "treatment" as used by the agency. This section sets forth provisions for adoption by reference regulations contained in 40 CFR Part 264. Paragraph (4) is proposed to be amended to reference all applicable federal manifest requirements found in Subpart E of 40 CFR Part 265.

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 agency or other units of state or local government. Industries or businesses that ship or transport hazardous waste may realize cost savings due to the implementation of the proposed rules, depending upon the amount of waste shipped or transported.

The proposed rules implement the EPA's new Uniform Hazardous Waste Manifest for all hazardous waste generators that transport, or offer for transport, hazardous waste for off-site treatment, recycling, storage, or disposal. The proposed rules would also revise the manifest requirements for Texas Class 1 wastes to conform with federal requirements and allow for its inclusion on the Uniform Hazardous Waste Manifest.

Under the existing rules, hazardous waste generators transporting waste to another state for treatment, recycling, storage, or disposal are required to prepare the destination states manifest form. The proposed rulemaking would adopt the EPA's Uniform Hazardous Waste Manifest that will be required to be used by all states beginning September 5, 2006. Generators of hazardous waste would then prepare one form regardless of the final destination. The Uniform Hazardous Waste Manifests are available from any source that has registered with the EPA to print and distribute the form. The cost for forms from a registered printer is unknown at this time, but is not expected to be significant. The TCEQ does not plan to register as a printer of the new forms but will obtain a limited quantity to provide the forms free of charge for any generator requiring 50 or less per year. Waste generators requiring more Uniform Hazardous Waste Manifests will have to obtain them from a registered printer for a fee.

Currently, the agency spends approximately $20,000 a year to print the current manifest form. These costs are recovered through fees collected from waste generators. The reduction in fee revenue and costs is not expected to be significant. Other units of state and local government are not expected to be affected by the proposed rules as they are not typically hazardous waste generators.

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 increased efficiency for shipping and transporting hazardous waste.

The proposed rules are expected to result in cost savings for those industries and businesses that ship or transport large amounts of hazardous waste. Under the existing rules, hazardous waste generators transporting waste for treatment, recycling, storage, or disposal are required to prepare the destination states manifest form. The proposed rulemaking would adopt the EPA's Uniform Hazardous Waste Manifest that will be required to be used by all states beginning September 5, 2006. Generators of hazardous waste would then prepare one form regardless of the final destination. The Uniform Hazardous Waste Manifests are available from any source which has registered with the EPA to print and distribute the form. The cost for forms from a registered printer is unknown at this time, but is not expected to be significant. Some businesses may elect to register to print their own forms. The TCEQ does not plan to register as a printer of the new forms but will obtain a limited quantity to provide the forms free of charge for any generator requiring 50 or less per year.

Generators of hazardous waste may realize a cost savings as a result of the increased efficiency for the shipment and transportation of hazardous waste. Savings may be realized as reduced administrative costs required to obtain and prepare regulatory forms required by the receiving state(s). In Texas, there are 998 large quantity generators who would be affected by the proposed rulemaking. The cost savings realized by the generators would be dependent upon how much waste was shipped. According to the EPA, there are more than 139,000 businesses in approximately 45 industries nationwide that may receive regulatory relief from the proposed rules. These businesses ship approximately 12 million tons of hazardous waste annually, and use between two and five million hazardous waste manifests. The EPA estimates that the annual change in paperwork burden resulting from these rules will save states and industry between $12 and $20 million.

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. Small or micro-businesses who used 50 or fewer Uniform Hazardous Waste Manifests per year would continue to receive their forms free of charge from TCEQ.

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 has reviewed the 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 §2001.0225(a). Because these rules are not proposed to protect the environment or to reduce the risk to human health from environmental exposure, this is not a major environmental rule. Also, because the proposed rules do 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 the proposed rules are not a major environmental rule. There is no adverse effect in a material way on the economy, a sector of the economy, productivity, competition, or jobs of the state or a sector of the state because the hazardous waste manifest changes will be implemented by the EPA on September 5, 2006, and these proposed changes conform state rules to the federal changes, and the Texas Class 1 waste manifest changes are not proposed to be more stringent, but to conform with federal requirements. Because the additional definitions define words consistent with prior agency practice, they do not result in more stringent regulation. Since these proposed rules are not more stringent there should be no adverse effect in a material way on the economy, a sector of the economy, productivity, competition, or jobs of the state or a sector of the state. In addition, these rules would not exceed a standard set by federal law, exceed an express requirement of state law, exceed a requirement of a delegation agreement, or propose a rule solely under the general powers of the agency. The commission invites public comment on the draft regulatory impact analysis determination.

TAKINGS IMPACT ASSESSMENT

The commission has prepared a takings impact assessment for these proposed rules in accordance with Texas Government Code, §2007.043. The following is a summary of that assessment. The specific purpose of these proposed rules is to ensure that Texas' state hazardous waste rules are equivalent to the federal regulations after which they are patterned, thus enabling the state to retain authorization to operate its own hazardous waste program in lieu of the corresponding federal program. The proposed rules will substantially advance this stated purpose by proposing federal regulations by reference or by introducing language intended to ensure that state rules are equivalent to the corresponding federal regulations. Promulgation and enforcement of these rules will not affect private real property which is the subject of the rules because the rule language consists of technical corrections and updates to bring certain state hazardous waste regulations into equivalence with more recent federal regulations. There is no burden on private real property because the hazardous waste manifest changes will be implemented by the EPA on September 5, 2006, and these proposed changes conform state rules to the federal changes, and the Texas Class 1 waste manifest changes are not proposed to be more stringent, but to conform with federal requirements. Also, the new definitions define words consistent with prior agency practice, and do not result in more stringent regulation. The subject regulations do not affect a landowner's rights in private real property.

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)(2) relating to 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 prepared a consistency determination for the rules under 31 TAC §505.22 and found that the rulemaking is consistent with the applicable CMP goals and policies. The CMP goal applicable to the rulemaking is the goal to protect, preserve, restore, and enhance the diversity, quality, quantity, functions, and values of coastal natural resource areas. The CMP policy applicable to the rulemaking is governing emissions of air pollutants to protect and enhance air quality in the coastal area so as to protect coastal natural resource areas and promote the public health, safety, and welfare. Promulgation and enforcement of these rules will not violate (exceed) any standards identified in the applicable CMP goals and policies.

SUBMITTAL OF COMMENTS

Comments may be submitted to Holly Vierk, 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 2005-060-335-PR. Comments must be received by 5:00 p.m., April 24, 2006. Copies of the proposed rules can be obtained from the commission's Web site at http://www.tceq.state.tx.us/nav/rules/propose_adopt.html . For further information or questions concerning this proposal, please contact Ellette Vinyard, Permitting and Remediation Support, at (512) 239-6085.

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

30 TAC §§335.1, 335.10 - 335.12, 335.15

STATUTORY AUTHORITY

The amendments are proposed under Texas Water Code (TWC), §5.103 and §5.105, which provide the commission with the authority to adopt any rules necessary to carry out its powers and duties under the provisions of the TWC or other laws of this state; and under Texas Health and Safety Code (THSC), Solid Waste Disposal Act, §361.017 and §361.024, which authorize the commission to regulate industrial solid waste and hazardous waste and to adopt rules consistent with the general intent and purposes of the THSC.

The proposed amendments implement THSC, Chapter 361.

§335.1.Definitions.

In addition to the terms defined in Chapter 3 of this title (relating to Definitions), the following words and terms, when used in this chapter, have the following meanings.

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

(5) Activities associated with the exploration, development, and protection of oil or gas or geothermal resources--Activities associated with:

(A) - (C) (No change.)

(D) the discharge, storage, handling, transportation, reclamation, or disposal of waste or any other substance or material associated with any activity listed in subparagraphs (A) - (C) of this paragraph, except for waste generated in connection with activities associated with gasoline plants, natural gas or natural gas liquids processing plants, pressure maintenance plants, or repressurizing plants if that waste is a hazardous waste as defined by the administrator of the United States Environmental Protection Agency [ EPA ] in accordance with the Federal Solid Waste Disposal Act, as amended (42 United States Code, §§6901 et seq .).

(6) Administrator--The administrator of the United States Environmental Protection Agency [ EPA ] or his designee.

(7) - (11) (No change.)

(12) Boiler--An enclosed device using controlled flame combustion and having the following characteristics:

(A) - (D) (No change.)

(E) the unit is one which the executive director has determined, on a case-by-case basis, to be a boiler, after considering the standards in §335.20 of this title (relating to Variance To Be Classified as a Boiler [ Variance to be Classified as a Boiler ]).

(13) Captive facility--A facility that accepts wastes from only related (within the same corporation) off-site generators.

(14) Captured facility--A manufacturing or production facility that generates an industrial solid waste or hazardous waste that is routinely stored, processed, or disposed of on a shared basis in an integrated waste management unit owned, operated by, and located within a contiguous manufacturing complex.

(15) Captured receiver--A receiver that is located within the property boundaries of the generators from which it receives waste.

(16) [ (13) ] Carbon regeneration unit--Any enclosed thermal treatment device used to regenerate spent activated carbon.

(17) [ (14) ] Certification--A statement of professional opinion based upon knowledge and belief.

(18) [ (15) ] Class 1 wastes--Any industrial solid waste or mixture of industrial solid wastes which because of its concentration, or physical or chemical characteristics, is toxic, corrosive, flammable, a strong sensitizer or irritant, a generator of sudden pressure by decomposition, heat, or other means, or may pose a substantial present or potential danger to human health or the environment when improperly processed, stored, transported, or disposed of or otherwise managed, as further defined in §335.505 of this title (relating to Class 1 Waste Determination).

(19) [ (16) ] Class 2 wastes--Any individual solid waste or combination of industrial solid waste which cannot be described as hazardous [ Hazardous ], Class 1 , or Class 3 as defined in §335.506 of this title (relating to Class 2 Waste Determination).

(20) [ (17) ] Class 3 wastes--Inert and essentially insoluble industrial solid waste, usually including, but not limited to, materials such as rock, brick, glass, dirt, and certain plastics and rubber, etc., that are not readily decomposable, as further defined in §335.507 of this title (relating to Class 3 Waste Determination).

(21) [ (18) ] Closed portion--That portion of a facility which an owner or operator has closed in accordance with the approved facility closure plan and all applicable closure requirements. (See also "active portion" and "inactive portion.")

(22) [ (19) ] Closure--The act of permanently taking a waste management unit or facility out of service.

(23) [ (20) ] Commercial hazardous waste management facility--Any hazardous waste management facility that accepts hazardous waste or polychlorinated biphenyl compounds for a charge, except a captured facility or a facility that accepts waste only from other facilities owned or effectively controlled by the same person[ , where "captured facility" means a manufacturing or production facility that generates an industrial solid waste or hazardous waste that is routinely stored, processed, or disposed of on a shared basis in an integrated waste management unit owned, operated by, and located within a contiguous manufacturing complex ].

(24) [ (21) ] Component--Either the tank or ancillary equipment of a tank system.

(25) [ (22) ] Confined aquifer--An aquifer bounded above and below by impermeable beds or by beds of distinctly lower permeability than that of the aquifer itself; an aquifer containing confined groundwater.

(26) [ (23) ] Consignee--The ultimate treatment, storage, or disposal facility in a receiving country to which the hazardous waste will be sent.

(27) [ (24) ] Container--Any portable device in which a material is stored, transported, processed, or disposed of, or otherwise handled.

(28) [ (25) ] Containment building--A hazardous waste management unit that is used to store or treat hazardous waste under the provisions of §335.152(a)(19) or §335.112(a)(21) of this title (relating to Standards).

(29) [ (26) ] Contaminant--Includes, but is not limited to, "solid waste," "hazardous waste," and "hazardous waste constituent" as defined in this subchapter ; [ , ] "pollutant" as defined in Texas Water Code (TWC), §26.001, and Texas Health and Safety Code (THSC), §361.431 ; [ , ] "hazardous substance" as defined in THSC, §361.003 ; [ , ] and other substances that are subject to the Texas Hazardous Substances Spill Prevention and Control Act, TWC, §§26.261 - 26.268.

(30) [ (27) ] Contaminated medium/media--A portion or portions of the physical environment to include soil, sediment, surface water, groundwater , or air, that contain contaminants at levels that pose a substantial present or future threat to human health and the environment.

(31) [ (28) ] Contingency plan--A document setting out an organized, planned, and coordinated course of action to be followed in case of a fire, explosion, or release of hazardous waste or hazardous waste constituents which could threaten human health or the environment.

(32) [ (29) ] Control--To apply engineering measures such as capping or reversible treatment methods and/or institutional measures such as deed restrictions to facilities or areas with wastes or contaminated media which result in remedies that are protective of human health and the environment when combined with appropriate maintenance, monitoring, and any necessary further corrective action.

(33) [ (30) ] Corrective action management unit (CAMU)--An area within a facility that is designated by the commission under 40 Code of Federal Regulations Part 264, Subpart S, for the purpose of implementing corrective action requirements under §335.167 of this title (relating to Corrective Action for Solid Waste Management Units) and Texas Water Code, §7.031 (Corrective Action Related to Hazardous Waste) [ (Corrective Action related to Hazardous Waste) ]. A CAMU shall only be used for the management of remediation wastes in accordance with implementing such corrective action requirements at the facility.

(34) [ (31) ] Corrosion expert--A person who, by reason of his knowledge of the physical sciences and the principles of engineering and mathematics, acquired by a professional education and related practical experience, is qualified to engage in the practice of corrosion control on buried or submerged metal piping systems and metal tanks. Such a person must be certified as being qualified by the National Association of Corrosion Engineers or be a registered professional engineer who has certification or licensing that includes education and experience in corrosion control on buried or submerged metal piping systems and metal tanks.

(35) [ (32) ] Decontaminate--To apply a treatment process(es) to wastes or contaminated media whereby the substantial present or future threat to human health and the environment is eliminated.

(36) [ (33) ] Designated facility--A Class 1 or hazardous waste treatment, storage, [ processing, ] or disposal facility which has received a United States Environmental Protection Agency [ an EPA ] permit (or a facility with interim status) in accordance with the requirements of 40 Code of Federal Regulations (CFR) Parts 270 and 124; a permit from a state authorized in accordance with 40 CFR Part 271 (in the case of hazardous waste); a permit issued in accordance with §335.2 of this title (relating to Permit Required) (in the case of nonhazardous waste); or that is regulated under §335.24(f), (g), or (h) of this title (relating to Requirements for Recyclable Materials and Nonhazardous Recyclable Materials) or §335.241 of this title (relating to Applicability and Requirements) and that has been designated on the manifest by the generator in accordance with §335.10 of this title (relating to Shipping and Reporting Procedures Applicable to Generators of Hazardous Waste or Class 1 Waste and Primary Exporters of Hazardous Waste). If a waste is destined to a facility in an authorized state which has not yet obtained authorization to regulate that particular waste as hazardous, then the designated facility must be a facility allowed by the receiving state to accept such waste. Designated facility also means a generator site designated on the manifest to receive its waste as a return shipment from a facility that has rejected the waste in accordance with §335.12(e) of this title (relating to Shipping Requirements Applicable to Owners or Operators of Storage, Processing, or Disposal Facilities).

(37) [ (34) ] Destination facility--Has the definition adopted under §335.261 of this title (relating to Universal Waste Rule).

(38) [ (35) ] Dike--An embankment or ridge of either natural or man-made materials used to prevent the movement of liquids, sludges, solids, or other materials.

(39) [ (36) ] Dioxins and furans (D/F)--Tetra, penta, hexa, hepta, and octa-chlorinated dibenzo dioxins and furans.

(40) [ (37) ] Discharge or hazardous waste discharge--The accidental or intentional spilling, leaking, pumping, pouring, emitting, emptying, or dumping of waste into or on any land or water.

(41) [ (38) ] Disposal--The discharge, deposit, injection, dumping, spilling, leaking, or placing of any solid waste or hazardous waste (whether containerized or uncontainerized) into or on any land or water so that such solid waste or hazardous waste or any constituent thereof may enter the environment or be emitted into the air or discharged into any waters, including groundwaters.

(42) [ (39) ] Disposal facility--A facility or part of a facility at which solid waste is intentionally placed into or on any land or water, and at which waste will remain after closure. The term "disposal facility" does not include a corrective action management unit into which remediation wastes are placed.

(43) [ (40) ] Drip pad--An engineered structure consisting of a curbed, free-draining base, constructed of [ a ] non-earthen materials and designed to convey preservative kick-back or drippage from treated wood, precipitation, and surface water run-on to an associated collection system at wood preserving plants.

(44) [ (41) ] Elementary neutralization unit--A device which:

(A) is used for neutralizing wastes which are hazardous only because they exhibit the corrosivity characteristic defined in 40 Code of Federal Regulations (CFR) §261.22, or are listed in 40 CFR Part 261, Subpart D, only for this reason; or is used for neutralizing the pH of non-hazardous industrial solid waste; and

(B) meets the definition of tank, tank system, container, transport vehicle, or vessel as defined in this section.

(45) [ (42) ] United States Environmental Protection Agency (EPA) acknowledgment of consent--The cable sent to EPA from the United States Embassy in a receiving country that acknowledges the written consent of the receiving country to accept the hazardous waste and describes the terms and conditions of the receiving country's consent to the shipment.

(46) [ (43) ] United States Environmental Protection Agency (EPA) hazardous waste number--The number assigned by the EPA to each hazardous waste listed in 40 Code of Federal Regulations (CFR) Part 26l, Subpart D and to each characteristic identified in 40 CFR Part 26l, Subpart C.

(47) [ (44) ] United States Environmental Protection Agency (EPA) identification number--The number assigned by the EPA or the commission to each generator, transporter, and processing, storage, or disposal facility.

(48) [ (45) ] Essentially insoluble--Any material, which if representatively sampled and placed in static or dynamic contact with deionized water at ambient temperature for seven days, will not leach any quantity of any constituent of the material into the water in excess of current United States Public Health Service or United States Environmental Protection Agency [ EPA ] limits for drinking water as published in the Federal Register .

(49) [ (46) ] Equivalent method--Any testing or analytical method approved by the administrator under 40 Code of Federal Regulations §260.20 and §260.21.

(50) [ (47) ] Existing portion--That land surface area of an existing waste management unit, included in the original Part A permit application, on which wastes have been placed prior to the issuance of a permit.

(51) [ (48) ] Existing tank system or existing component--A tank system or component that is used for the storage or processing of hazardous waste and that is in operation, or for which installation has commenced on or prior to July 14, 1986. Installation will be considered to have commenced if the owner or operator has obtained all federal, state, and local approvals or permits necessary to begin physical construction of the site or installation of the tank system and if either:

(A) a continuous on-site physical construction or installation program has begun; or

(B) the owner or operator has entered into contractual obligations--which cannot be canceled or modified without substantial loss--for physical construction of the site or installation of the tank system to be completed within a reasonable time.

(52) [ (49) ] Explosives or munitions emergency--A situation involving the suspected or detected presence of unexploded ordnance, damaged or deteriorated explosives or munitions, an improvised explosive device, other potentially explosive material or device, or other potentially harmful military chemical munitions or device, that creates an actual or potential imminent threat to human health, including safety, or the environment, including property, as determined by an explosives or munitions emergency response specialist. These situations may require immediate and expeditious action by an explosives or munitions emergency response specialist to control, mitigate, or eliminate the threat.

(53) [ (50) ] Explosives or munitions emergency response--All immediate response activities by an explosives and munitions emergency response specialist to control, mitigate, or eliminate the actual or potential threat encountered during an explosives or munitions emergency, subject to the following:

(A) an explosives or munitions emergency response includes in-place render-safe procedures, treatment or destruction of the explosives or munitions , and/or transporting those items to another location to be rendered safe, treated, or destroyed;

(B) any reasonable delay in the completion of an explosives or munitions emergency response caused by a necessary, unforeseen, or uncontrollable circumstance will not terminate the explosives or munitions emergency; and

(C) explosives and munitions emergency responses can occur on either public or private lands and are not limited to responses at hazardous waste facilities.

(54) [ (51) ] Explosives or munitions emergency response specialist--An individual trained in chemical or conventional munitions or explosives handling, transportation, render-safe procedures, or destruction techniques, including United States Department of Defense (DOD) emergency explosive ordnance disposal, technical escort unit, and DOD-certified civilian or contractor personnel; and, other federal, state, or local government, or civilian personnel similarly trained in explosives or munitions emergency responses.

(55) [ (52) ] Extrusion--A process using pressure to force ground poultry carcasses through a decreasing-diameter barrel or nozzle, causing the generation of heat sufficient to kill pathogens, and resulting in an extruded product acceptable as a feed ingredient.

(56) [ (53) ] Facility--Includes:

(A) all contiguous land, and structures, other appurtenances, and improvements on the land, used for storing, processing, or disposing of municipal hazardous waste or industrial solid waste. A facility may consist of several treatment, storage, [ processing, ] or disposal operational units (e.g., one or more landfills, surface impoundments, or combinations of them);

(B) for the purpose of implementing corrective action under §335.167 of this title (relating to Corrective Action for Solid Waste Management Units), all contiguous property under the control of the owner or operator seeking a permit for the treatment, storage, [ processing, ] and/or disposal of hazardous waste. This definition also applies to facilities implementing corrective action under Texas Water Code, §7.031 (Corrective Action Relating to Hazardous Waste).

(57) [ (54) ] Final closure--The closure of all hazardous waste management units at the facility in accordance with all applicable closure requirements so that hazardous waste management activities under Subchapter E of this chapter (relating to Interim Standards for Owners and Operators of Hazardous Waste Treatment, Storage, [ Processing, ] or Disposal Facilities) and Subchapter F of this chapter (relating to Permitting Standards for Owners and Operators of Hazardous Waste Treatment, Storage, [ Processing, ] or Disposal Facilities) are no longer conducted at the facility unless subject to the provisions in §335.69 of this title (relating to Accumulation Time).

(58) [ (55) ] Food-chain crops--Tobacco, crops grown for human consumption, and crops grown for feed for animals whose products are consumed by humans.

(59) [ (56) ] Freeboard--The vertical distance between the top of a tank or surface impoundment dike, and the surface of the waste contained therein.

(60) [ (57) ] Free liquids--Liquids which readily separate from the solid portion of a waste under ambient temperature and pressure.

(61) [ (58) ] Generator--Any person, by site, who produces municipal hazardous waste or industrial solid waste; any person who possesses municipal hazardous waste or industrial solid waste to be shipped to any other person; or any person whose act first causes the solid waste to become subject to regulation under this chapter. For the purposes of this regulation, a person who generates or possesses Class 3 wastes only shall not be considered a generator.

(62) [ (59) ] Groundwater--Water below the land surface in a zone of saturation.

(63) [ (60) ] Hazardous industrial waste--Any industrial solid waste or combination of industrial solid wastes identified or listed as a hazardous waste by the administrator of the United States Environmental Protection Agency [ EPA ] in accordance with the Resource Conservation and Recovery Act [ RCRA ] of 1976, §3001. The administrator has identified the characteristics of hazardous wastes and listed certain wastes as hazardous in 40 Code of Federal Regulations Part 26l. The executive director will maintain in the offices of the commission a current list of hazardous wastes, a current set of characteristics of hazardous waste, and applicable appendices, as promulgated by the administrator.

(64) [ (61) ] Hazardous substance--Any substance designated as a hazardous substance under the Comprehensive Environmental Response, Compensation, and Liability Act of 1980 [ CERCLA ], 40 Code of Federal Regulations Part 302.

(65) [ (62) ] Hazardous waste--Any solid waste identified or listed as a hazardous waste by the administrator of the United States Environmental Protection Agency [ EPA ] in accordance with the federal Solid Waste Disposal Act, as amended by the Resource Conservation and Recovery Act [ RCRA ], 42 United States Code , §§6901 et seq ., as amended.

(66) [ (63) ] Hazardous waste constituent--A constituent that caused the administrator to list the hazardous waste in 40 Code of Federal Regulations (CFR) Part 261, Subpart D or a constituent listed in Table 1 of 40 CFR §261.24.

(67) [ (64) ] Hazardous waste management facility--All contiguous land, including structures, appurtenances, and other improvements on the land, used for processing, storing, or disposing of hazardous waste. The term includes a publicly- or privately-owned hazardous waste management facility consisting of processing, storage, or disposal operational hazardous waste management units such as one or more landfills, surface impoundments, waste piles, incinerators, boilers, and industrial furnaces, including cement kilns, injection wells, salt dome waste containment caverns, land treatment facilities, or a combination of units.

(68) [ (65) ] Hazardous waste management unit--A landfill, surface impoundment, waste pile, industrial furnace, incinerator, cement kiln, injection well, container, drum, salt dome waste containment cavern, or land treatment unit, or any other structure, vessel, appurtenance, or other improvement on land used to manage hazardous waste.

(69) [ (66) ] In operation--Refers to a facility which is processing, storing, or disposing of solid waste or hazardous waste.

(70) [ (67) ] Inactive portion--That portion of a facility which is not operated after November 19, 1980. (See also "active portion" and "closed portion.")

(71) [ (68) ] Incinerator--Any enclosed device that:

(A) uses controlled flame combustion and neither meets the criteria for classification as a boiler, sludge dryer, or carbon regeneration unit, nor is listed as an industrial furnace; or

(B) meets the definition of infrared incinerator or plasma arc incinerator.

(72) [ (69) ] Incompatible waste--A hazardous waste which is unsuitable for:

(A) placement in a particular device or facility because it may cause corrosion or decay of containment materials (e.g., container inner liners or tank walls); or

(B) commingling with another waste or material under uncontrolled conditions because the commingling might produce heat or pressure, fire or explosion, violent reaction, toxic dusts, mists, fumes, or gases, or flammable fumes or gases.

(73) [ (70) ] Individual generation site--The contiguous site at or on which one or more solid waste or hazardous wastes are generated. An individual generation site, such as a large manufacturing plant, may have one or more sources of solid waste or hazardous waste, but is considered a single or individual generation site if the site or property is contiguous.

(74) [ (71) ] Industrial furnace--Includes any of the following enclosed devices that use thermal treatment to accomplish recovery of materials or energy:

(A) cement kilns;

(B) lime kilns;

(C) aggregate kilns;

(D) phosphate kilns;

(E) coke ovens;

(F) blast furnaces;

(G) smelting, melting, and refining furnaces (including pyrometallurgical devices such as cupolas, reverberator furnaces, sintering machines, roasters, and foundry furnaces);

(H) titanium dioxide chloride process oxidation reactors;

(I) methane reforming furnaces;

(J) pulping liquor recovery furnaces;

(K) combustion devices used in the recovery of sulfur values from spent sulfuric acid;

(L) halogen acid furnaces for the production of acid from halogenated hazardous waste generated by chemical production facilities where the furnace is located on the site of a chemical production facility, the acid product has a halogen acid content of at least 3.0%, the acid product is used in a manufacturing process, and, except for hazardous waste burned as fuel, hazardous waste fed to the furnace has a minimum halogen content of 20% as generated; and

(M) other devices the commission may list, after the opportunity for notice and comment is afforded to the public.

(75) [ (72) ] Industrial solid waste--Solid waste resulting from or incidental to any process of industry or manufacturing, or mining or agricultural operation, which may include hazardous waste as defined in this section.

(76) [ (73) ] Infrared incinerator--Any enclosed device that uses electric powered resistance heaters as a source of radiant heat followed by an afterburner using controlled flame combustion and which is not listed as an industrial furnace.

(77) [ (74) ] Inground tank--A device meeting the definition of tank in this section whereby a portion of the tank wall is situated to any degree within the ground, thereby preventing visual inspection of that external surface area of the tank that is in the ground.

(78) [ (75) ] Injection well--A well into which fluids are injected. (See also "underground injection.")

(79) [ (76) ] Inner liner--A continuous layer of material placed inside a tank or container which protects the construction materials of the tank or container from the contained waste or reagents used to treat the waste.

(80) [ (77) ] Installation inspector--A person who, by reason of his knowledge of the physical sciences and the principles of engineering, acquired by a professional education and related practical experience, is qualified to supervise the installation of tank systems.

(81) [ (78) ] International shipment--The transportation of hazardous waste into or out of the jurisdiction of the United States.

(82) [ (79) ] Lamp--Has the definition adopted under §335.261 of this title (relating to Universal Waste Rule).

(83) [ (80) ] Land treatment facility--A facility or part of a facility at which solid waste or hazardous waste is applied onto or incorporated into the soil surface and that is not a corrective action management unit; such facilities are disposal facilities if the waste will remain after closure.

(84) [ (81) ] Landfill--A disposal facility or part of a facility where solid waste or hazardous waste is placed in or on land and which is not a pile, a land treatment facility, a surface impoundment, an injection well, a salt dome formation, a salt bed formation, an underground mine, a cave, or a corrective action management unit.

(85) [ (82) ] Landfill cell--A discrete volume of a solid waste or hazardous waste landfill which uses a liner to provide isolation of wastes from adjacent cells or wastes. Examples of landfill cells are trenches and pits.

(86) [ (83) ] Leachate--Any liquid, including any suspended components in the liquid, that has percolated through or drained from solid waste or hazardous waste.

(87) [ (84) ] Leak-detection system--A system capable of detecting the failure of either the primary or secondary containment structure or the presence of a release of solid waste or hazardous waste or accumulated liquid in the secondary containment structure. Such a system must employ operational controls (e.g., daily visual inspections for releases into the secondary containment system of aboveground tanks) or consist of an interstitial monitoring device designed to detect continuously and automatically the failure of the primary or secondary containment structure or the presence of a release of solid waste or hazardous waste into the secondary containment structure.

(88) [ (85) ] Licensed professional geoscientist--A geoscientist who maintains a current license through the Texas Board of Professional Geoscientists in accordance with its requirements for professional practice.

(89) [ (86) ] Liner--A continuous layer of natural or man-made materials, beneath or on the sides of a surface impoundment, landfill, or landfill cell, which restricts the downward or lateral escape of solid waste or hazardous waste, hazardous waste constituents, or leachate.

(90) [ (87) ] Management or hazardous waste management--The systematic control of the collection, source separation, storage, transportation, processing, treatment, recovery, and disposal of solid waste or hazardous waste.

(91) [ (88) ] Manifest-- The waste shipping document, United States Environmental Protection Agency (EPA) Form 8700-22, originated and signed by the generator or offeror, that will accompany and be used for tracking the transportation, disposal, treatment, storage, or recycling of shipments of hazardous wastes or Class 1 industrial solid wastes. The form used for this purpose is the EPA Form 8700-22, obtainable from any printer registered with the EPA. [ The waste shipping document which accompanies and is used for tracking the transportation, disposal, treatment, storage, or recycling of shipments of hazardous wastes or Class 1 industrial solid wastes. The form used for this purpose is TNRCC-0311 (Uniform Hazardous Waste Manifest) which is furnished by the executive director or may be printed through the agency's "Print Your Own Manifest Program." ]

[ (89) Manifest document number--A number assigned to the manifest by the commission for reporting and recordkeeping purposes.]

(92) Manifest tracking number--The alphanumeric identification number (i.e., a unique three-letter suffix preceded by nine numerical digits), which is pre-printed on the manifest by a registered source.

(93) [ (90) ] Military munitions--All ammunition products and components produced or used by or for the Department of Defense (DOD) or the United States Armed Services for national defense and security, including military munitions under the control of the DOD, the United States Coast Guard, the United States Department of Energy (DOE), and National Guard personnel. The term "military munitions":

(A) includes confined gaseous, liquid, and solid propellants, explosives, pyrotechnics, chemical and riot control agents, smokes, and incendiaries used by DOD components, including bulk explosives and chemical warfare agents, chemical munitions, rockets, guided and ballistic missiles, bombs, warheads, mortar rounds, artillery ammunition, small arms ammunition, grenades, mines, torpedoes, depth charges, cluster munitions and dispensers, demolition charges, and devices and components thereof; and

(B) includes non-nuclear components of nuclear devices, managed under DOE's nuclear weapons program after all required sanitization operations under the Atomic Energy Act of 1954, as amended, have been completed; but

(C) does not include wholly inert items, improvised explosive devices, and nuclear weapons, nuclear devices, and nuclear components thereof.

(94) [ (91) ] Miscellaneous unit--A hazardous waste management unit where hazardous waste is stored, processed, or disposed of and that is not a container, tank, surface impoundment, pile, land treatment unit, landfill, incinerator, boiler, industrial furnace, underground injection well with appropriate technical standards under Chapter 331 of this title (relating to Underground Injection Control), corrective action management unit, containment building, staging pile, or unit eligible for a research, development, and demonstration permit or under Chapter 305, Subchapter K of this title (relating to Research , Development , and Demonstration Permits).

(95) [ (92) ] Movement--That solid waste or hazardous waste transported to a facility in an individual vehicle.

(96) [ (93) ] Municipal hazardous waste--A municipal solid waste or mixture of municipal solid wastes which has been identified or listed as a hazardous waste by the administrator of the United States Environmental Protection Agency [ EPA ].

(97) [ (94) ] Municipal solid waste--Solid waste resulting from or incidental to municipal, community, commercial, institutional, and recreational activities; including garbage, rubbish, ashes, street cleanings, dead animals, abandoned automobiles, and all other solid waste other than industrial waste.

(98) [ (95) ] New tank system or new tank component--A tank system or component that will be used for the storage or processing of hazardous waste and for which installation has commenced after July 14, 1986; except, however, for purposes of 40 Code of Federal Regulations(CFR) §264.193(g)(2) (incorporated by reference at §335.152(a)(8) of this title (relating to Standards)) and 40 CFR §265.193(g)(2) (incorporated by reference at §335.112(a)(9) of this title (relating to Standards)), a new tank system is one for which construction commences after July 14, 1986. (See also "existing tank system.")

(99) [ (96) ] Off-site--Property which cannot be characterized as on-site.

(100) [ (97) ] Onground tank--A device meeting the definition of tank in this section and that is situated in such a way that the bottom of the tank is on the same level as the adjacent surrounding surface so that the external tank bottom cannot be visually inspected.

(101) [ (98) ] On-site--The same or geographically contiguous property which may be divided by public or private rights-of-way, provided the entrance and exit between the properties is at a cross-roads intersection, and access is by crossing, as opposed to going along, the right-of-way. Noncontiguous properties owned by the same person but connected by a right-of-way which he controls and to which the public does not have access, is also considered on-site property.

(102) [ (99) ] Open burning--The combustion of any material without the following characteristics:

(A) control of combustion air to maintain adequate temperature for efficient combustion;

(B) containment of the combustion-reaction in an enclosed device to provide sufficient residence time and mixing for complete combustion; and

(C) control of emission of the gaseous combustion products. (See also "incineration" and "thermal treatment.")

(103) [ (100) ] Operator--The person responsible for the overall operation of a facility.

(104) [ (101) ] Owner--The person who owns a facility or part of a facility.

(105) [ (102) ] Partial closure--The closure of a hazardous waste management unit in accordance with the applicable closure requirements of Subchapters E and F of this chapter (relating to Interim Standards for Owners and Operators of Hazardous Waste Treatment, Storage, [ Processing, ] or Disposal Facilities; and Permitting Standards for Owners and Operators of Hazardous Waste Treatment, Storage, [ Processing, ] or Disposal Facilities) at a facility that contains other active hazardous waste management units. For example, partial closure may include the closure of a tank (including its associated piping and underlying containment systems), landfill cell, surface impoundment, waste pile, or other hazardous waste management unit, while other units of the same facility continue to operate.

(106) [ (103) ] PCBs or polychlorinated biphenyl compounds--Compounds subject to 40 Code of Federal Regulations Part 761.

(107) [ (104) ] Permit--A written permit issued by the commission which, by its conditions, may authorize the permittee to construct, install, modify, or operate a specified municipal hazardous waste or industrial solid waste treatment, storage, [ processing, ] or disposal facility in accordance with specified limitations.

(108) [ (105) ] Personnel or facility personnel--All persons who work at, or oversee the operations of, a solid waste or hazardous waste facility, and whose actions or failure to act may result in noncompliance with the requirements of this chapter.

(109) [ (106) ] Pesticide--Has the definition adopted under §335.261 of this title (relating to Universal Waste Rule).

(110) [ (107) ] Petroleum substance--A crude oil or any refined or unrefined fraction or derivative of crude oil which is a liquid at standard conditions of temperature and pressure.

(A) Except as provided in subparagraph (C) of this paragraph for the purposes of this chapter, a "petroleum substance" shall be limited to a substance in or a combination or mixture of substances within the following list (except for any listed substance regulated as a hazardous waste under the federal Solid Waste Disposal Act, Subtitle C (42 United States Code (USC), §§6921, et seq .)) and which is liquid at standard conditions of temperature (20 degrees Centigrade) and pressure (1 atmosphere):

(i) basic petroleum substances--i.e., crude oils, crude oil fractions, petroleum feedstocks, and petroleum fractions;

(ii) motor fuels--a petroleum substance which is typically used for the operation of internal combustion engines and/or motors (which includes, but is not limited to, stationary engines and engines used in transportation vehicles and marine vessels);

(iii) aviation gasolines--i.e., Grade 80, Grade 100, and Grade 100-LL;

(iv) aviation jet fuels--i.e., Jet A, Jet A-1, Jet B, JP-4, JP-5, and JP-8;

(v) distillate fuel oils--i.e., Number 1-D, Number 1, Number 2-D, and Number 2;

(vi) residual fuel oils--i.e., Number 4-D, Number 4-light, Number 4, Number 5-light, Number 5-heavy, and Number 6;

(vii) gas-turbine fuel oils--i.e., Grade O-GT, Grade 1-GT, Grade 2-GT, Grade 3-GT, and Grade 4-GT;

(viii) illuminating oils--i.e., kerosene, mineral seal oil, long-time burning oils, 300 oil, and mineral colza oil;

(ix) lubricants--i.e., automotive and industrial lubricants;

(x) building materials--i.e., liquid asphalt and dust-laying oils;

(xi) insulating and waterproofing materials--i.e., transformer oils and cable oils; and

(xii) used oils--See definition for "used oil" in this section.

(B) For the purposes of this chapter, a "petroleum substance" shall include solvents or a combination or mixture of solvents (except for any listed substance regulated as a hazardous waste under the federal Solid Waste Disposal Act, Subtitle C (42 USC, §§6921, et seq .)) and which is liquid at standard conditions of temperature (20 degrees Centigrade) and pressure (1 atmosphere) i.e., Stoddard solvent, petroleum spirits, mineral spirits, petroleum ether, varnish makers' and painters' naphthas, petroleum extender oils, and commercial hexane.

(C) The following materials are not considered petroleum substances:

(i) polymerized materials, i.e., plastics, synthetic rubber, polystyrene, high and low density polyethylene;

(ii) animal, microbial, and vegetable fats;

(iii) food grade oils;

(iv) hardened asphalt and solid asphaltic materials--i.e., roofing shingles, roofing felt, hot mix (and cold mix); and

(v) cosmetics.

(111) [ (108) ] Pile--Any noncontainerized accumulation of solid, nonflowing solid waste or hazardous waste that is used for processing or storage, and that is not a corrective action management unit or a containment building.

(112) [ (109) ] Plasma arc incinerator--Any enclosed device using a high intensity electrical discharge or arc as a source of heat followed by an afterburner using controlled flame combustion and which is not listed as an industrial furnace.

(113) [ (110) ] Post-closure order--An order issued by the commission for post-closure care of interim status units, a corrective action management unit unless authorized by permit, or alternative corrective action requirements for contamination commingled from the Resource Conservation and Recovery Act [ RCRA ] and solid waste management units.

(114) [ (111) ] Poultry--Chickens or ducks being raised or kept on any premises in the state for profit.

(115) [ (112) ] Poultry carcass--The carcass, or part of a carcass, of poultry that died as a result of a cause other than intentional slaughter for use for human consumption.

(116) [ (113) ] Poultry facility--A facility that:

(A) is used to raise, grow, feed, or otherwise produce poultry for commercial purposes; or

(B) is a commercial poultry hatchery that is used to produce chicks or ducklings.

(117) [ (114) ] Primary exporter--Any person who is required to originate the manifest for a shipment of hazardous waste in accordance with the regulations contained in 40 Code of Federal Regulations Part 262, Subpart B, which are in effect as of November 8, 1986, or equivalent state provision, which specifies a treatment, storage, or disposal facility in a receiving country as the facility to which the hazardous waste will be sent and any intermediary arranging for the export.

(118) [ (115) ] Processing--The extraction of materials, transfer, volume reduction, conversion to energy, or other separation and preparation of solid waste for reuse or disposal, including the treatment or neutralization of solid waste or hazardous waste, designed to change the physical, chemical, or biological character or composition of any solid waste or hazardous waste so as to neutralize such waste, or so as to recover energy or material from the waste or so as to render such waste nonhazardous, or less hazardous; safer to transport, store , or dispose of; or amenable for recovery, amenable for storage, or reduced in volume. The transfer of solid waste for reuse or disposal as used in this definition does not include the actions of a transporter in conveying or transporting solid waste by truck, ship, pipeline, or other means. Unless the executive director determines that regulation of such activity is necessary to protect human health or the environment, the definition of processing does not include activities relating to those materials exempted by the administrator of the United States Environmental Protection Agency [ EPA ] in accordance with the federal Solid Waste Disposal Act, as amended by the Resource Conservation and Recovery Act [ RCRA ], 42 United States Code, §§6901 et seq ., as amended.

(119) [ (116) ] Publicly-owned treatment works (POTW)--Any device or system used in the treatment (including recycling and reclamation) of municipal sewage or industrial wastes of a liquid nature which is owned by a state or municipality (as defined by the Clean Water Act, §502(4)). The definition includes sewers, pipes, or other conveyances only if they convey wastewater to a POTW providing treatment.

(120) [ (117) ] Qualified groundwater scientist--A scientist or engineer who has received a baccalaureate or post-graduate degree in the natural sciences or engineering, and has sufficient training and experience in groundwater hydrology and related fields as may be demonstrated by state registration, professional certifications, or completion of accredited university courses that enable that individual to make sound professional judgments regarding groundwater monitoring and contaminant fate and transport.

(121) [ (118) ] Receiving country--A foreign country to which a hazardous waste is sent for the purpose of treatment, storage, or disposal (except short-term storage incidental to transportation).

(122) [ (119) ] Regional administrator--The regional administrator for the United States Environmental Protection Agency [ EPA ] region in which the facility is located, or his designee.

(123) [ (120) ] Remediation--The act of eliminating or reducing the concentration of contaminants in contaminated media.

(124) [ (121) ] Remediation waste--All solid and hazardous wastes, and all media (including groundwater, surface water, soils, and sediments) and debris, which contain listed hazardous wastes or which themselves exhibit a hazardous waste characteristic, that are managed for the purpose of implementing corrective action requirements under §335.167 of this title (relating to Corrective Action for Solid Waste Management Units) and Texas Water Code, §7.031 (Corrective Action Relating to Hazardous Waste). For a given facility, remediation wastes may originate only from within the facility boundary, but may include waste managed in implementing corrective action for releases beyond the facility boundary under Texas Solid Waste Disposal Act [ TSWDA ], §361.303 (Corrective Action), §335.166(5) of this title (relating to Corrective Action Program), or §335.167(c) of this title.

(125) [ (122) ] Remove--To take waste, contaminated design or operating system components, or contaminated media away from a waste management unit, facility, or area to another location for treatment, storage, [ processing, ] or disposal.

(126) [ (123) ] Replacement unit--A landfill, surface impoundment, or waste pile unit:

(A) from which all or substantially all the waste is removed; and

(B) that is subsequently reused to treat, store, or dispose of hazardous waste. "Replacement unit" does not apply to a unit from which waste is removed during closure, if the subsequent reuse solely involves the disposal of waste from that unit and other closing units or corrective action areas at the facility, in accordance with an approved closure plan or United States Environmental Protection Agency [ EPA ] or state approved corrective action.

(127) [ (124) ] Representative sample--A sample of a universe or whole (e.g., waste pile, lagoon, groundwater) which can be expected to exhibit the average properties of the universe or whole.

(128) [ (125) ] Run-off--Any rainwater, leachate, or other liquid that drains over land from any part of a facility.

(129) [ (126) ] Run-on--Any rainwater, leachate, or other liquid that drains over land onto any part of a facility.

(130) [ (127) ] Saturated zone or zone of saturation--That part of the earth's crust in which all voids are filled with water.

(131) [ (128) ] Shipment--Any action involving the conveyance of municipal hazardous waste or industrial solid waste by any means off-site.

(132) [ (129) ] Sludge dryer--Any enclosed thermal treatment device that is used to dehydrate sludge and that has a maximum total thermal input, excluding the heating valve of the sludge itself, of 2,500 British thermal units per pound of sludge treated on a wet-weight basis.

(133) [ (130) ] Small quantity generator--A generator who generates less than 1,000 kilogram of hazardous waste in a calendar month.

(134) [ (131) ] Solid waste--

(A) Any garbage, refuse, sludge from a waste treatment plant, water supply treatment plant or air pollution control facility, and other discarded material, including solid, liquid, semisolid, or contained gaseous material resulting from industrial, municipal, commercial, mining, and agricultural operations, and from community and institutional activities, but does not include:

(i) solid or dissolved material in domestic sewage, or solid or dissolved material in irrigation return flows, or industrial discharges subject to regulation by permit issued in accordance with Texas Water Code, Chapter 26 (an exclusion applicable only to the actual point source discharge that does not exclude industrial wastewaters while they are being collected, stored, or processed before discharge, nor does it exclude sludges that are generated by industrial wastewater treatment);

(ii) uncontaminated soil, dirt, rock, sand, and other natural or man-made inert solid materials used to fill land if the object of the fill is to make the land suitable for the construction of surface improvements. The material serving as fill may also serve as a surface improvement such as a structure foundation, a road, soil erosion control, and flood protection. Man-made materials exempted under this provision shall only be deposited at sites where the construction is in progress or imminent such that rights to the land are secured and engineering, architectural, or other necessary planning have been initiated. Waste disposal shall be considered to have occurred on any land which has been filled with man-made inert materials under this provision if the land is sold, leased, or otherwise conveyed prior to the completion of construction of the surface improvement. Under such conditions, deed recordation shall be required. The deed recordation shall include the information required under §335.5(a) of this title (relating to Deed Recordation of Waste Disposal ), prior to sale or other conveyance of the property;

(iii) waste materials which result from activities associated with the exploration, development, or production of oil or gas or geothermal resources, as those activities are defined in this section, and any other substance or material regulated by the Railroad Commission of Texas in accordance with [ the ] Natural Resources Code, §91.101, unless such waste, substance, or material results from activities associated with gasoline plants, natural gas, or natural gas liquids processing plants, pressure maintenance plants, or repressurizing plants and is a hazardous waste as defined by the administrator of the United States Environmental Protection Agency [ EPA ] in accordance with the federal Solid Waste Disposal Act, as amended by the Resource Conservation and Recovery Act [ RCRA ], 42 United States Code, §§6901 et seq ., as amended; or

(iv) a material excluded by 40 Code of Federal Regulations (CFR) §261.4(a)(1) - (19), as amended through May 11, 1999[ , ] (64 FR 25408), subject to the changes in this clause, or by variance granted under §335.18 of this title (relating to Variances from Classification as a Solid Waste) and §335.19 of this title (relating to Standards and Criteria for Variances from Classification as a Solid Waste). For the purposes of the exclusion under 40 CFR §261.4(a)(16), 40 CFR §261.38 is adopted by reference as amended through July 10, 2000 (65 FR 42292), and is revised as follows, with "subparagraph (A)(iv) under the definition of 'Solid Waste' in 30 TAC §335.1" meaning "subparagraph (A)(iv) under the definition of 'Solid Waste' in §335.1 of this title (relating to Definitions)":

(I) in the certification statement under 40 CFR §261.38(c)(1)(i)(C)(4), the reference to "40 CFR §261.38" is changed to "40 CFR §261.38, as revised under subparagraph (A)(iv) under the definition of 'Solid Waste' in 30 TAC §335.1," and the reference to "40 CFR §261.28(c)(10)" is changed to "40 CFR §261.38(c)(10)";

(II) in 40 CFR §261.38(c)(2), the references to "§260.10 of this chapter" are changed to "§335.1 of this title (relating to Definitions)," and the reference to "parts 264 or 265 of this chapter" is changed to "Chapter 335, Subchapter E of this title (relating to Interim Standards for Owners and Operators of Hazardous Waste Treatment, Storage, [ Processing, ] or Disposal Facilities) or Chapter 335, Subchapter F of this title (relating to Permitting Standards for Owners and Operators of Hazardous Waste Treatment, Storage, [ Processing, ] or Disposal Facilities)";

(III) in 40 CFR §261.38(c)(3) - (5), the references to "parts 264 and 265, or §262.34 of this chapter" are changed to "Chapter 335, Subchapter E of this title (relating to Interim Standards for Owners and Operators of Hazardous Waste Treatment, Storage, [ Processing, ] or Disposal Facilities) and Chapter 335, Subchapter F of this title (relating to Permitting Standards for Owners and Operators of Hazardous Waste Treatment, Storage, [ Processing, ] or Disposal Facilities), or §335.69 of this title (relating to Accumulation Time)";

(IV) in 40 CFR §261.38(c)(5), the reference to "§261.6(c) of this chapter" is changed to "§335.24(e) and (f) of this title (relating to Requirements for Recyclable Materials and Nonhazardous Recyclable Materials)";

(V) in 40 CFR §261.38(c)(7), the references to "appropriate regulatory authority" and "regulatory authority" are changed to "executive director";

(VI) in 40 CFR §261.38(c)(8), the reference to "§262.11 of this chapter" is changed to "§335.62 of this title (relating to Hazardous Waste Determination and Waste Classification)";

(VII) in 40 CFR §261.38(c)(9), the reference to "§261.2(c)(4) of this chapter" is changed to "§335.1(129)(D)(iv) of this title (relating to Definitions)"; and

(VIII) in 40 CFR §261.38(c)(10), the reference to "implementing authority" is changed to "executive director."

(B) A discarded material is any material which is:

(i) abandoned, as explained in subparagraph (C) of this paragraph;

(ii) recycled, as explained in subparagraph (D) of this paragraph;

(iii) considered inherently waste-like, as explained in subparagraph (E) of this paragraph; or

(iv) a military munitions identified as a solid waste in 40 CFR §266.202.

(C) Materials are solid wastes if they are abandoned by being:

(i) disposed of;

(ii) burned or incinerated; or

(iii) accumulated, stored, or processed (but not recycled) before or in lieu of being abandoned by being disposed of, burned, or incinerated.

(D) Except for materials described in subparagraph (H) of this paragraph, materials are solid wastes if they are "recycled" or accumulated, stored, or processed before recycling as specified in this subparagraph. The chart referred to as Table 1 indicates only which materials are considered to be solid wastes when they are recycled and is not intended to supersede the definition of solid waste provided in subparagraph (A) of this paragraph.

(i) Used in a manner constituting disposal. Materials noted with an asterisk in Column 1 of Table 1 are solid wastes when they are:

(I) applied to or placed on the land in a manner that constitutes disposal; or

(II) used to produce products that are applied to or placed on the land or are otherwise contained in products that are applied to or placed on the land (in which cases the product itself remains a solid waste). However, commercial chemical products listed in 40 CFR §261.33 are not solid wastes if they are applied to the land and that is their ordinary manner of use.

(ii) Burning for energy recovery. Materials noted with an asterisk in Column 2 of Table 1 are solid wastes when they are:

(I) burned to recover energy; or

(II) used to produce a fuel or are otherwise contained in fuels (in which cases the fuel itself remains a solid waste). However, commercial chemical products, which are listed in 40 CFR §261.33, not listed in §261.33, but that exhibit one or more of the hazardous waste characteristics, or will be considered nonhazardous waste if disposed, are not solid wastes if they are fuels themselves and burned for energy recovery.

(iii) Reclaimed. Materials noted with an asterisk in Column 3 of Table 1 are solid wastes when reclaimed (except as provided under 40 CFR §261.4(a)(17)). Materials without an asterisk in Column 3 of Table 1 are not solid wastes when reclaimed (except as provided under 40 CFR §261.4(a)(17)).

(iv) Accumulated speculatively. Materials noted with an asterisk in Column 4 of Table 1 are solid wastes when accumulated speculatively.

Figure: 30 TAC §335.1(134)(D)(iv)

[ Figure: 30 TAC §335.1(131)(D)(iv) ]

(E) Materials that are identified by the administrator of the EPA as inherently waste-like materials under 40 CFR §261.2(d) are solid wastes when they are recycled in any manner.

(F) Materials are not solid wastes when they can be shown to be recycled by being:

(i) used or reused as ingredients in an industrial process to make a product, provided the materials are not being reclaimed;

(ii) used or reused as effective substitutes for commercial products;

(iii) returned to the original process from which they were generated, without first being reclaimed or land disposed. The material must be returned as a substitute for feedstock materials. In cases where the original process to which the material is returned is a secondary process, the materials must be managed such that there is no placement on the land. In cases where the materials are generated and reclaimed within the primary mineral processing industry, the conditions of the exclusion found at 40 CFR §261.4(a)(17) apply rather than this provision; or

(iv) secondary materials that are reclaimed and returned to the original process or processes in which they were generated where they are reused in the production process provided:

(I) only tank storage is involved, and the entire process through completion of reclamation is closed by being entirely connected with pipes or other comparable enclosed means of conveyance;

(II) reclamation does not involve controlled flame combustion (such as occurs in boilers, industrial furnaces, or incinerators);

(III) the secondary materials are never accumulated in such tanks for over 12 months without being reclaimed; and

(IV) the reclaimed material is not used to produce a fuel, or used to produce products that are used in a manner constituting disposal.

(G) Except for materials described in subparagraph (H) of this paragraph, the following materials are solid wastes, even if the recycling involves use, reuse, or return to the original process, as described in subparagraph (F) of this paragraph:

(i) materials used in a manner constituting disposal, or used to produce products that are applied to the land;

(ii) materials burned for energy recovery, used to produce a fuel, or contained in fuels;

(iii) materials accumulated speculatively; or

(iv) materials deemed to be inherently waste-like by the administrator of the EPA, as described in 40 CFR §261.2(d) (1) and (2) [ (1) - (2) ].

(H) With the exception of contaminated soils which are being relocated for use under §350.36 of this title (relating to Relocation of Soils Containing Chemicals of Concern for Reuse Purposes) and other contaminated media, materials that will otherwise be identified as nonhazardous solid wastes if disposed of are not considered solid wastes when recycled by being applied to the land or used as ingredients in products that are applied to the land, provided these materials can be shown to meet all of the following criteria:

(i) a legitimate market exists for the recycling material as well as its products;

(ii) the recycling material is managed and protected from loss as will be raw materials or ingredients or products;

(iii) the quality of the product is not degraded by substitution of raw material/product with the recycling material;

(iv) the use of the recycling material is an ordinary use and it meets or exceeds the specifications of the product it is replacing without treatment or reclamation, or if the recycling material is not replacing a product, the recycling material is a legitimate ingredient in a production process and meets or exceeds raw material specifications without treatment or reclamation;

(v) the recycling material is not burned for energy recovery, used to produce a fuel , or contained in a fuel;

(vi) the recycling material can be used as a product itself or to produce products as it is generated without treatment or reclamation;

(vii) the recycling material must not present an increased risk to human health, the environment, or waters in the state when applied to the land or used in products which are applied to the land and the material, as generated:

(I) is a Class 3 waste under Subchapter R of this chapter (relating to Waste Classification), except for arsenic, cadmium, chromium, lead, mercury, nickel, selenium, and total dissolved solids; and

(II) for the metals listed in subclause (I) of this clause:

(-a-) is a Class 2 or Class 3 waste under Subchapter R of this chapter; and

(-b-) does not exceed a concentration limit under §312.43(b)(3), Table 3 of this title (relating to Metal Limits); and

(viii) with the exception of [ notwithstanding ] the requirements under §335.17(a)(8) of this title (relating to Special Definitions for Recyclable Materials and Nonhazardous Recyclable Materials):

(I) at least 75% (by weight or volume) of the annual production of the recycling material must be recycled or transferred to a different site and recycled on an annual basis; and

(II) if the recycling material is placed in protective storage, such as a silo or other protective enclosure, at least 75% (by weight or volume) of the annual production of the recycling material must be recycled or transferred to a different site and recycled on a biennial basis.

(I) Respondents in actions to enforce the industrial solid waste regulations who raise a claim that a certain material is not a solid waste, or is conditionally exempt from regulation, must demonstrate that there is a known market or disposition for the material, and that they meet the terms of the exclusion or exemption. In doing so, they must provide appropriate documentation (such as contracts showing that a second person uses the material as an ingredient in a production process) to demonstrate that the material is not a waste, or is exempt from regulation. In addition, owners or operators of facilities claiming that they actually are recycling materials must show that they have the necessary equipment to do so and that the recycling activity is legitimate and beneficial.

(J) Materials that are reclaimed from solid wastes and that are used beneficially are not solid wastes and hence are not hazardous wastes under 40 CFR §261.3(c) unless the reclaimed material is burned for energy recovery or used in a manner constituting disposal.

(K) Other portions of this chapter that relate to solid wastes that are recycled include §335.6 of this title (relating to Notification Requirements), §§335.17 - 335.19 of this title, §335.24 of this title (relating to Requirements for Recyclable Materials and Nonhazardous Recyclable Materials), and Subchapter H of this chapter (relating to Standards for the Management of Specific Wastes and Specific Types of Facilities [ Materials ]).

(135) [ (132) ] Sorbent--A material that is used to soak up free liquids by either adsorption or absorption, or both. Sorb means to either adsorb or absorb, or both.

(136) [ (133) ] Spill--The accidental spilling, leaking, pumping, emitting, emptying, or dumping of solid waste or hazardous wastes or materials which, when spilled, become solid waste or hazardous wastes into or on any land or water.

(137) [ (134) ] Staging pile--An accumulation of solid, non-flowing remediation waste, as defined in this section, that is not a containment building and that is used only during remedial operations for temporary storage at a facility. Staging piles must be designated by the executive director according to the requirements of 40 Code of Federal Regulations §264.554, as adopted by reference under §335.152(a) of this title (relating to Standards).

(138) [ (135) ] Storage--The holding of solid waste for a temporary period, at the end of which the waste is processed, disposed of, recycled, or stored elsewhere.

(139) [ (136) ] Sump--Any pit or reservoir that meets the definition of tank in this section and those troughs/trenches connected to it that serve to collect solid waste or hazardous waste for transport to solid waste or hazardous waste treatment, storage, [ processing, ] or disposal facilities; except that as used in the landfill, surface impoundment, and waste pile rules, "sump" means any lined pit or reservoir that serves to collect liquids drained from a leachate collection and removal system or leak detection system for subsequent removal from the system.

(140) [ (137) ] Surface impoundment or impoundment--A facility or part of a facility which is a natural topographic depression, man-made excavation, or diked area formed primarily of earthen materials (although it may be lined with man-made materials), which is designed to hold an accumulation of liquid wastes or wastes containing free liquids, and which is not an injection well or a corrective action management unit. Examples of surface impoundments are holding, storage, settling, and aeration pits, ponds, and lagoons.

(141) [ (138) ] Tank--A stationary device, designed to contain an accumulation of solid waste which is constructed primarily of non-earthen materials (e.g., wood, concrete, steel, plastic) which provide structural support.

(142) [ (139) ] Tank system--A solid waste or hazardous waste storage or processing tank and its associated ancillary equipment and containment system.

(143) [ (140) ] TEQ--Toxicity equivalence, the international method of relating the toxicity of various dioxin/furan congeners to the toxicity of 2,3,7,8-tetrachlorodibenzo-p-dioxin.

(144) [ (141) ] Thermal processing--The processing of solid waste or hazardous waste in a device which uses elevated temperatures as the primary means to change the chemical, physical, or biological character or composition of the solid waste or hazardous waste. Examples of thermal processing are incineration, molten salt, pyrolysis, calcination, wet air oxidation, and microwave discharge. (See also "incinerator" and "open burning.")

(145) [ (142) ] Thermostat--Has the definition adopted under §335.261 of this title (relating to Universal Waste Rule).

(146) [ (143) ] Totally enclosed treatment facility--A facility for the processing of hazardous waste which is directly connected to an industrial production process and which is constructed and operated in a manner which prevents the release of any hazardous waste or any constituent thereof into the environment during processing. An example is a pipe in which acid waste is neutralized.

(147) [ (144) ] Transfer facility--Any transportation-related facility including loading docks, parking areas, storage areas, and other similar areas where shipments of hazardous or industrial solid waste are held during the normal course of transportation.

(148) [ (145) ] Transit country--Any foreign country, other than a receiving country, through which a hazardous waste is transported.

(149) [ (146) ] Transport vehicle--A motor vehicle or rail car used for the transportation of cargo by any mode. Each cargo-carrying body (trailer, railroad freight car, etc.) is a separate transport vehicle. Vessel includes every description of watercraft, used or capable of being used as a means of transportation on the water.

(150) [ (147) ] Transporter--Any person who conveys or transports municipal hazardous waste or industrial solid waste by truck, ship, pipeline, or other means.

(151) [ (148) ] Treatability study--A study in which a hazardous or industrial solid waste is subjected to a treatment process to determine:

(A) whether the waste is amenable to the treatment process;

(B) what pretreatment (if any) is required;

(C) the optimal process conditions needed to achieve the desired treatment;

(D) the efficiency of a treatment process for a specific waste or wastes; or

(E) the characteristics and volumes of residuals from a particular treatment process. Also included in this definition for the purpose of 40 Code of Federal Regulations §261.4(e) and (f) (§§335.2, 335.69, and 335.78 of this title (relating to Permit Required; Accumulation Time; and Special Requirements for Hazardous Waste Generated by Conditionally Exempt Small Quantity Generators)) exemptions are liner compatibility, corrosion, and other material compatibility studies and toxicological and health effects studies. A treatability study is not a means to commercially treat or dispose of hazardous or industrial solid waste.

(152) [ (149) ] Treatment--To apply a physical, biological, or chemical process(es) to wastes and contaminated media which significantly reduces the toxicity, volume, or mobility of contaminants and which, depending on the process(es) used, achieves varying degrees of long-term effectiveness.

(153) [ (150) ] Treatment zone--A soil area of the unsaturated zone of a land treatment unit within which hazardous constituents are degraded, transferred, or immobilized.

(154) [ (151) ] Underground injection--The subsurface emplacement of fluids through a bored, drilled, or driven well; or through a dug well, where the depth of the dug well is greater than the largest surface dimension. (See also "injection well.")

(155) [ (152) ] Underground tank--A device meeting the definition of tank in this section whose entire surface area is totally below the surface of and covered by the ground.

(156) [ (153) ] Unfit-for-use tank system--A tank system that has been determined through an integrity assessment or other inspection to be no longer capable of storing or processing solid waste or hazardous waste without posing a threat of release of solid waste or hazardous waste to the environment.

(157) [ (154) ] Universal waste--Any of the hazardous wastes defined as universal waste under §335.261(b)(13)(F) of this title (relating to Universal Waste Rule) that are managed under the universal waste requirements of Subchapter H, Division 5 of this chapter (relating to Universal Waste Rule).

(158) [ (155) ] Universal waste handler--Has the definition adopted under §335.261 of this title (relating to Universal Waste Rule).

(159) [ (156) ] Universal waste transporter--Has the definition adopted under §335.261 of this title (relating to Universal Waste Rule).

(160) [ (157) ] Unsaturated zone or zone of aeration--The zone between the land surface and the water table.

(161) [ (158) ] Uppermost aquifer--The geologic formation nearest the natural ground surface that is an aquifer, as well as lower aquifers that are hydraulically interconnected within the facility's property boundary.

(162) [ (159) ] Used oil--Any oil that has been refined from crude oil, or any synthetic oil, that has been used, and, as a result of such use, is contaminated by physical or chemical impurities. Used oil fuel includes any fuel produced from used oil by processing, blending, or other treatment. Rules applicable to nonhazardous used oil, oil characteristically hazardous from use versus mixing, conditionally exempt small quantity generator [ Conditionally Exempt Small Quantity Generator ] hazardous used oil, and household used oil after collection that will be recycled are found in Chapter 324 of this title (relating to Used Oil Standards ) and 40 Code of Federal Regulations Part 279 (Standards for Management of Used Oil).

(163) [ (160) ] Wastewater treatment unit--A device which:

(A) is part of a wastewater treatment facility subject to regulation under either the Federal Water Pollution Control Act (Clean Water Act), 33 United States Code, §§466 et seq ., §402 or §307(b), as amended;

(B) receives and processes or stores an influent wastewater which is a hazardous or industrial solid waste, or generates and accumulates a wastewater treatment sludge which is a hazardous or industrial solid waste, or processes or stores a wastewater treatment sludge which is a hazardous or industrial solid waste; and

(C) meets the definition of tank or tank system as defined in this section.

(164) [ (161) ] Water (bulk shipment)--The bulk transportation of municipal hazardous waste or Class 1 industrial solid waste which is loaded or carried on board a vessel without containers or labels.

(165) [ (162) ] Well--Any shaft or pit dug or bored into the earth, generally of a cylindrical form, and often walled with bricks or tubing to prevent the earth from caving in.

(166) [ (163) ] Zone of engineering control--An area under the control of the owner/operator that, upon detection of a solid waste or hazardous waste release, can be readily cleaned up prior to the release of solid waste or hazardous waste or hazardous constituents to groundwater or surface water.

§335.10.Shipping and Reporting Procedures Applicable to Generators of Hazardous Waste or Class 1 Waste and Primary Exporters of Hazardous Waste.

(a) Except as provided in subsection (g) and (h) of this section, no generator of hazardous or Class 1 waste consigned to an off-site solid waste treatment, [ process, ] storage, or disposal facility within the United States or a treatment, storage, and disposal facility that offers for transport a rejected hazardous waste load, or a primary exporter [ exporters ] of hazardous waste consigned to a foreign country shall cause, suffer, allow, or permit the shipment of hazardous waste or Class 1 waste unless:

(1) for generators of industrial nonhazardous Class 1 waste in a quantity greater than 100 kilograms per month and/or generators of hazardous waste shipping hazardous waste which is part of a total quantity of hazardous waste generated in quantities greater than 100 kilograms in a calendar month, or quantities of acute hazardous waste in excess of quantities specified in §335.78(e) of this title (relating to Special Requirements for Hazardous Waste Generated by Conditionally Exempt Small Quantity Generators), who consign that waste to an off-site solid waste treatment, storage, [ processing, ] or disposal facility in Texas , a standard (nationally uniform) Resource Conservation and Recovery Act (RCRA) manifest form (United States Environmental Protection Agency (EPA) Form 8700-22), under both RCRA and Department of Transportation (DOT) statutory authorities, is prepared; [ ; a Texas Natural Resource Conservation Commission (TNRCC) manifest on Form TNRCC-0311 is prepared; ]

(2) (No change.)

(3) for generators of hazardous waste or Class 1 waste generated in Texas for consignment to another state the standard (nationally uniform) RCRA manifest form (EPA Form 8700-22) [ the consignment state's manifest, if provided, or a Texas state manifest if the consignment state does not provide a manifest, ] is prepared, unless the generator is identified in paragraph (2) of this section;

(4) for a primary exporter of hazardous waste for consignment to a foreign country the hazardous waste is accompanied by a standard (nationally uniform) RCRA manifest form (EPA Form 8700-22) [ a manifest from the primary exporter's state if that state supplies the manifest form and requires its use or a manifest from any source if the primary exporter's state does not supply the manifest form ]; and

(5) a generator designates on the manifest one facility which is authorized to receive the waste described on the manifest. A generator may also designate one alternate facility which is authorized to receive the waste in the event an emergency prevents delivery of the waste to the primary designated facility. An alternate facility shall be identified on the manifest in the item marked "Alternate Facility." [ "Special Handling Instructions and Additional Information." ] If the transporter is unable to deliver the waste to the designated facility or the alternate facility, the generator must either designate another facility or instruct the transporter to return the waste;

(6) (No change.)

(b) Generators may obtain the manifest from any source that is registered with the EPA as a supplier of manifests. A registrant may not print, or have printed, the manifest for use or distribution unless it has received approval from the EPA director of the Office of Solid Waste to do so under 40 Code of Federal Regulations (CFR) §262.21.

[ (b) The manifest shall contain the following information.]

[ (1) The manifest shall contain the generator's United States Environmental Protection Agency (EPA) 12-digit identification number and the unique five-digit number assigned to the manifest by the generator. This requirement does not apply if the waste being shipped is nonhazardous or if the generator is a conditionally exempt small quantity generator of hazardous waste.]

[ (2) The manifest shall contain the total number of pages used to complete the manifest, plus the number of continuation sheets, if any (page 1 of ____).]

[ (3) The manifest shall contain the name, mailing address, and telephone number of the generator.]

[ (4) The manifest shall contain the telephone number where an authorized agent of the generator may be reached in the event of an emergency.]

[ (5) The manifest shall contain the generator's TNRCC registration and/or permit number. Conditionally exempt small quantity generators (CESQGs) of hazardous waste or industrial generators of less than 100 kg per month of nonhazardous Class 1 waste and less than CESQG limits of hazardous waste that are exempt from manifesting may voluntarily choose to manifest their hazardous or Class 1 industrial nonhazardous waste. Such exempt generators may utilize the letters "CESQG" for their TNRCC generator registration number.]

[ (6) The manifest shall contain the first transporter's company name.]

[ (7) The manifest shall contain the first transporter's EPA 12-digit identification number. This requirement does not apply if the waste being shipped is nonhazardous or the transporter is a conditionally exempt small quantity generator transporting only his own hazardous waste.]

[ (8) The manifest shall contain the first transporter's state registration number. Conditionally exempt small quantity generators who are not required to notify of their transportation activities as specified in §335.6(d) of this title (relating to Notification Requirements) may use the letters "CESQG" as the TNRCC transporter's registration number when transporting their own hazardous or Class 1 nonhazardous waste.]

[ (9) The manifest shall contain a telephone number where an authorized agent of first transporter may be reached in the event of an emergency.]

[ (10) The manifest shall contain the second transporter's company name.]

[ (11) The manifest shall contain the second transporter's EPA 12-digit identification number. This requirement does not apply if the waste being shipped is non-hazardous.]

[ (12) The manifest shall contain the second transporter's state registration number.]

[ (13) The manifest shall contain a telephone number where an authorized agent of the second transporter may be reached in the event of an emergency.]

[ (14) The manifest shall contain the company name and site address of the facilities designated to receive the waste identified on the manifest and an alternate facility, if designated. Except as provided otherwise in §335.78 of this title for the shipment of hazardous wastes that are required to be manifested under subsection (a) of this section, generators shall designate on the manifest only those storage, processing, or disposal facilities which are authorized under the Resource Conservation and Recovery Act (RCRA) of 1976, Subtitle C, or an approved state hazardous waste program administered in lieu thereof.]

[ (15) The manifest shall contain the designated facility's EPA 12-digit identification number; however, this requirement does not apply if the waste being shipped is non-hazardous.]

[ (16) The manifest shall contain the TNRCC storage, processing, or disposal facility registration and/or permit number.]

[ (17) The manifest shall contain the appropriate notation in the hazardous materials (HM) column of the Texas uniform hazardous waste manifest. The form has been designed to allow the listing of both federally regulated wastes and wastes regulated solely by the state. In order to distinguish between federally regulated wastes and other waste, as required by United States Department of Transportation(DOT) regulations (49 Code of Federal Regulations (CFR) §172.201(a)(1)), the TNRCC has added an HM column on the manifest before the DOT description. When a waste shipment consists of both federally regulated materials and state-regulated wastes, the HM column must be checked or marked for only those line entries which are regulated under federal law as hazardous wastes or hazardous materials.]

[ (18) The manifest shall contain the DOT proper shipping name, hazard class, and identification number (UN/NA) for each hazardous waste as identified in 49 CFR Parts 171-177. If the shipment contains non-hazardous waste solely regulated by the TNRCC, then the TNRCC waste classification code description should be used.]

[ (19) The manifest shall contain the number of containers for each waste and the appropriate abbreviation from Table 1 from §335.30 of this title (relating to Appendix I) for the type of container.]

[ (20) The manifest shall contain the total quantity of each waste described on each line.]

[ (21) The manifest shall contain the unit of measure of each waste described on each line. The appropriate abbreviation for the unit of measure may be found in Appendix I, Table 1 of 40 CFR Parts 264 or 265.]

[ (22) The manifest shall contain the TNRCC waste classification code assigned to the waste by the generator.]

[ (23) The manifest shall contain a certification by the generator stating: "I hereby declare that the contents of this consignment are fully and accurately described above by proper shipping name and are classified, packed, marked, and labeled, and are in all respects in proper condition for transport by highway according to applicable international and national government regulations, including applicable state regulations. If I am a large quantity generator, I certify that I have a program in place to reduce the volume and toxicity of waste generated to the degree I have determined to be economically practicable and I have selected the practicable method of processing, storage, or disposal currently available to me which minimizes the present and future threat to human health and the environment; or, if I am a small quantity generator, I have made a good faith effort to minimize my waste generation and select the best waste management method that is available to me and that I can afford."]

[ (24) If a mode other than highway is used, the word "highway" should be lined out and the appropriate mode (rail, water, or air) inserted in the space provided below the word "highway". If another mode in addition to the highway mode is used, enter the appropriate additional mode (e.g., and rail) in the space provided below the word "highway."]

(c) All manifests for hazardous wastes must be prepared according to the instructions found in the Appendix to 40 CFR Part 262, and must also contain the Texas Waste Code for each waste. Manifests for Class 1 wastes must be prepared according to the instructions found in the Appendix to 40 CFR Part 262 (pre-printed on the back of the Uniform Hazardous Waste Manifest) with the addition of the Texas Waste Codes for each waste. When itemizing Class 1 waste, the TCEQ solid waste registration numbers will be used when EPA identification numbers are not required.

[ (c) The manifest shall consist of at least the number of copies which will provide the generator, each transporter, the owner or operator of the storage, processing, or disposal facility and in the case of hazardous waste exports, the United States customs official, with one copy each for their records and another copy to be returned to the generator.]

(d) At the time of waste transfer, the generator shall:

(1) use a manifest system that ensures that interstate and intrastate shipments of hazardous waste are designated for delivery and, in the case of intrastate shipments, are delivered to facilities that are authorized to operate under an approved state program or the federal program; and

(2) ensure that all hazardous and Class 1 wastes offered for transportation are accompanied by a manifest except shipments subject to subsections (g) and (h) of this section or shipments by rail or water, as specified in subsections (e) and (f) of this section.

[ (1) sign the manifest by hand;]

[ (2) obtain the handwritten signature of the initial transporter and date of acceptance on the manifest;]

[ (3) retain one copy, in accordance with §335.13(i) of this title (relating to Recordkeeping and Reporting Procedures Applicable to Generators Shipping Hazardous Waste or Class 1 Waste and Primary Exporters of Hazardous Waste); and]

[ (4) give the transporter the remaining copies of the manifest.]

(e) For shipments of [ hazardous waste or ] Class 1 waste within the United States solely by water (bulk shipments only), the generator shall send three copies of the manifest dated and signed in accordance with this section to the owner or operator of the designated facility or to the last water (bulk shipment) transporter to handle the waste in the United States if exported by water. Copies of the manifest are not required for each transporter.

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

(h) No manifest and no marking in accordance with §335.67(b) of this title (relating to Marking) [ (related to Marking) ] is required for hazardous waste transported on a public or private right-of-way within or along the border of contiguous property under the control of the same person, even if such contiguous property is divided by a public or private right-of-way. However, in the event of a hazardous waste discharge on a public or private right-of-way, the generator or transporter must comply with the requirements of §335.93 of this title (relating to Hazardous Waste Discharges).

§335.11.Shipping Requirements for Transporters of Hazardous Waste or Class 1 Waste.

(a) No transporter may cause, suffer, allow, or permit the shipment of solid waste for which a manifest is required under §335.10 of this title (relating to Shipping and Reporting Procedures Applicable to Generators of Hazardous Waste or Class 1 Waste and Primary Exporters of Hazardous Waste [ exporters of hazardous waste ]) to an off-site treatment, storage, [ processing, ] or disposal facility, unless the transporter:

(1) complies with §335.10 of this title; and

[ (1) obtains a manifest completed by the generator or primary exporter where appropriate in accordance with §335.10 of this title;]

[ (2) upon receipt and prior to shipment, signs and dates the manifest acknowledging the acceptance of waste from the generator or primary exporter where appropriate;]

[ (3) returns a signed copy to the generator or primary exporter where appropriate before leaving the generator's property; and]

(2) [ (4) ] in the case of hazardous waste exports, ensures [ knows ] that the shipment conforms to the requirements set forth in the regulations contained in 40 Code of Federal Regulations (CFR) §263.20[ (a), as amended and adopted through April 12, 1996, at 61 FedReg 16290 ].

(b) A transporter may not cause, suffer, allow, or permit the delivery of a shipment of hazardous or Class 1 waste to another designated transporter or to a treatment, storage, or disposal facility unless accompanied by a standard (nationally uniform) Resource Conservation and Recovery Act (RCRA) manifest form (United States Environmental Protection Agency (EPA) Form 8700-22) prepared according to §335.10 of this title and complies with 40 CFR Part 263.

[ (b) The transporter shall ensure that the manifest accompanies the municipal hazardous waste or Class 1 waste.]

[ (c) No transporter may cause, suffer, allow, or permit the delivery of a shipment of hazardous waste or Class 1 waste to another transporter designated on the manifest, unless the transporter:]

[ (1) obtains the date of delivery and the handwritten signature of the accepting transporter on the manifest;]

[ (2) retains one copy of the manifest in accordance with §335.14(a) of this title (relating to Recordkeeping Requirements Applicable to Transporters of Hazardous Waste or Class 1 Waste);]

[ (3) gives the remaining copies of the manifest to the accepting transporter; and]

[ (4) in the case of hazardous waste exports, ensures that a copy of the EPA acknowledgment of consent also accompanies the hazardous waste.]

[ (d) No transporter may cause, suffer, allow, or permit the delivery of a shipment of municipal hazardous waste or Class 1 waste to a treatment, storage, processing, or disposal facility, unless the transporter:]

[ (1) obtains the date of delivery and the handwritten signature on the manifest of the owner or operator of the facility designated on the manifest;]

[ (2) retains one copy of the manifest in accordance with §335.14(a) of this title; and]

[ (3) gives the remaining copies of the manifest to the owner or operator of the facility designated on the manifest.]

(c) [ (e) ] The requirements of subsections (b) and (d) [ (b) - (d) and (f) ] of this section do not apply to water (bulk shipment) transporters if:

(1) the waste is delivered by water (bulk shipment) to the facility designated on the manifest;

(2) a shipping paper containing all the information required on the manifest (excluding the identification numbers, generator certification, and signatures) and, for hazardous waste exports, an EPA acknowledgment of consent accompanies the waste;

(3) the delivering transporter obtains the date of delivery and handwritten signature of the owner or operator of the facility on either the manifest or the shipping paper;

(4) the person delivering the waste to the initial water (bulk shipment) transporter obtains the date of delivery and the signature of the water (bulk shipment) transporter on the manifest and forwards it to the facility; and

(5) a copy of the shipping paper or manifest is retained by each water (bulk shipment) transporter in accordance with §335.14(b) of this title (relating to Recordkeeping Requirements Applicable to Transporters of Hazardous Waste or Class 1 Waste) .

(d) [ (f) ] For shipments involving rail transportation, the requirements of subsections (b) - (e) of this section do not apply and the following requirements do apply.

(1) When accepting Class 1 waste from a non-rail [ nonrail ] transporter, the initial rail transporter must:

(A) sign and date, the manifest acknowledging acceptance of the waste;

(B) return a copy of the manifest to the non-rail [ nonrail ] transporter;

(C) forward at least three copies of the manifest to:

(i) the next non-rail transporter, if any;

(ii) the designated facility, if the shipment is delivered to that facility by rail; or

(iii) the last rail transporter designated to handle the waste in the United States;

(D) retain one copy of the manifest and rail shipping paper in accordance with §335.14(c) of this title.

(2) Rail transporters must ensure that a shipping paper containing all the information required on the manifest (excluding the EPA identification numbers, generator certification, and signatures) and, for hazardous waste exports, an EPA acknowledgment of consent accompanies the waste at all times. Intermediate rail transporters are not required to sign either the manifest or shipping paper.

(3) When delivering Class 1 waste or municipal hazardous waste to the designated facility, a rail transporter must:

(A) obtain the date of delivery and handwritten signature of the owner or operator of the designated facility on the manifest or shipping paper (if the manifest has not been received by the facility); and

(B) retain a copy of the manifest or signed shipping paper in accordance with §335.14(c) of this title.

(4) When delivering hazardous waste or Class 1 waste to a non-rail [ nonrail ] transporter, a rail transporter must:

(A) obtain the date of delivery and the handwritten signature of the next non-rail [ nonrail ] transporter on the manifest; and

(B) retain a copy of the manifest in accordance with §335.14(c) of this title.

(5) Before accepting municipal hazardous waste or Class 1 waste from a rail transporter, a non-rail [ nonrail ] transporter must sign and date the manifest and provide a copy to the rail transporter.

(e) [ (g) ] Transporters who transport hazardous waste or Class 1 waste out of the United States shall comply with manifest requirements according to §335.10 of this title and 40 CFR Part 263. [ : ]

[ (1) indicate on the manifest the date the municipal hazardous waste or Class 1 waste left the United States under the item labeled "special handling instructions and additional information";]

[ (2) sign the manifest and retain one copy in accordance with §335.14(c) of this title;]

[ (3) return a signed copy of the manifest to the generator or primary exporter where appropriate; and]

[ (4) give a copy of the manifest to a United States customs official at the point of departure from the United States.]

(f) [ (h) ] The transporter must deliver the entire quantity of municipal hazardous waste or Class 1 waste which he has accepted from a generator or a transporter to:

(1) the designated facility listed on the manifest;

(2) the alternate designated facility if the waste cannot be delivered to the designated facility because an emergency prevents delivery;

(3) the next designated transporter; or

(4) the place outside the United States designated by the generator.

(g) [ (i) ] If the transporter cannot deliver the waste in accordance with subsection (h) of this section because of an emergency condition other than rejection of the waste by the designated facility, then the transporter must contact the generator for further directions and must revise the manifest according to the generator's instructions. [ If the transporter cannot deliver the waste in accordance with subsection (h) of this section, the transporter must contact the generator for further directions and must revise the manifest according to the generator's instructions. ]

(h) If hazardous waste is rejected by the designated facility while the transporter is on the facility's premises, then the transporter must obtain the following:

(1) for a partial load rejection or for regulated quantities of container residues, a copy of the original manifest that includes the facility's date and signature, the manifest tracking number of the new manifest that will accompany the shipment, and a description of the partial rejection or container residue in the discrepancy block of the original manifest. The transporter must retain a copy of this manifest and give the remaining copies of the original manifest to the rejecting designated facility. If the transporter is forwarding the rejected part of the shipment or a regulated container residue to an alternate facility or returning it to the generator, the transporter must obtain a new manifest to accompany the shipment, and the new manifest must include all of the information required;

(2) for a full load rejection that will be taken back by the transporter, a copy of the original manifest that includes the rejecting facility's signature and date attesting to the rejection, the description of the rejection, and the name, address, phone number, and EPA identification number for the alternate facility or generator to whom the shipment must be delivered. The transporter must retain a copy of the manifest containing this information to the rejecting designated facility. If the original manifest is not used, then the transporter must obtain a new manifest for the shipment.

§335.12.Shipping Requirements Applicable to Owners or Operators of Treatment, Storage, [ Processing, ] or Disposal Facilities.

(a) No owner or operator of a treatment, storage, [ processing, ] or disposal facility may accept delivery of solid waste for which a manifest is required under §335.10 of this title (relating to Shipping and Reporting Procedures Applicable to Generators of Hazardous Waste or Class 1 Waste and Primary Exporters of Hazardous Waste), for off-site treatment, storage, [ processing, ] or disposal unless:

(1) a manifest accompanies the shipment which designates that facility to receive the waste; [ and ]

(2) the manifest complies with §335.10 of this title and 40 Code of Federal Regulations(CFR) Part 264;

[ (2) the owner or operator signs the manifest and immediately gives at least one copy of the signed manifest to the transporter; and]

(3) the owner or operator retains one copy of the manifest in accordance with §335.15(a) of this title (relating to Recordkeeping and Reporting Requirements Applicable to Owners or Operators of Treatment, Storage, [ Processing, ] or Disposal Facilities);

(4) within 30 days after the delivery, the owner or operator sends a copy of the manifest to the generator or primary exporter where appropriate; and

(5) in the case of hazardous waste exports, a copy of the United States Environmental Protection Agency (EPA) [ EPA ] acknowledgment of consent also accompanies the waste and the owner or operator has no knowledge that the shipment does not conform to the EPA acknowledgment of consent.

(b) If a facility receives, from a rail or water (bulk shipment) transporter, hazardous waste or Class 1 waste which is accompanied by a shipping paper containing all the information required on the manifest, the owner or operator, or his agent, shall process the manifest in accordance with §335.10 of this title and comply with 40 CFR Part 264. [ : ]

[ (1) sign and date each copy of the manifest or shipping paper (if the manifest has not been received) to certify that the hazardous waste or Class 1 waste covered by the manifest or the shipping paper was received;]

[ (2) immediately give the rail or water (bulk shipment) transporter at least one copy of the manifest or shipping paper (if the manifest has not been received);]

[ (3) within 30 days after the delivery, send a copy of the signed and dated manifest to the generator; however, if the manifest has not been received within 30 days after delivery, the owner or operator, or his agent, must send a copy of the shipping paper signed and dated to the generator; and]

[ (4) retain at the facility a copy of each shipping paper and manifest in accordance with §335.15(a) of this title.]

(c) If a facility receives hazardous waste or Class 1 waste accompanied by a manifest, or in the case of shipments by rail or water (bulk shipment)[ , ] by a shipping paper, the owner or operator, or his agent[ , ] must note any significant discrepancies on each copy of the manifest or shipping paper (if the manifest has not been received).

(1) Manifest discrepancies are:

(A) significant differences between the quantity or type of hazardous waste designated on the manifest or shipping paper, and the quantity and type of hazardous waste a facility actually receives;

(B) rejected wastes, which may be a full or partial shipment of hazardous waste that the treatment, storage, and disposal facility cannot accept; or

(C) container residues, which are residues that exceed the quantity limits for "empty" containers set forth in 40 CFR §261.7(b).

(2) Significant differences in quantity are for bulk weight, variations greater than 10% in weight; and for batch waste, any variation in piece count, such as a discrepancy of one drum in a truckload.

(3) Significant differences in type are obvious differences that can be discovered by inspection or waste analysis, such as waste solvent substituted for waste acid, or toxic constituents not reported on the manifest or shipping paper.

[ (1) Manifest discrepancies are differences between the quantity or type of hazardous waste or Class 1 waste designated on the manifest or shipping paper, and the quantity or type of hazardous waste or Class 1 waste a facility actually received. Significant discrepancies in type are obvious differences which can be discovered by inspection or waste analysis, such as waste solvent substituted for waste acid, or toxic constituents not reported in the manifest or shipping paper. Significant discrepancies in quantity are:]

[ (A) for bulk weight, variations greater than 10% in weight; and]

[ (B) for batch waste, any variation in piece count, such as a discrepancy of one drum in a truckload.]

(4) [ (2) ] Upon discovering a significant difference in quantity or type [ discrepancy ], the owner or operator must attempt to reconcile the discrepancy with the waste generator or transporter (e.g., with telephone conversations). If the discrepancy is not resolved within 15 days after receiving the waste, the owner or operator must immediately submit to the executive director a letter describing the discrepancy and attempts to reconcile it, and a copy of the manifest or shipping paper at issue. The commission does not intend that the owner or operator of a facility perform the general waste analysis required by 40 CFR [ Code of Federal Regulations(CFR) ] §264.13 or §265.13 before signing the manifest and giving it to the transporter. However, subsection (c) of this section does require reporting an unreconciled discrepancy discovered during later analysis.

(d) If a facility receives hazardous waste imported from a foreign source, the receiving facility must mail a copy of the manifest to the following address within 30 days of delivery: International Compliance Assurance Division, OFA/OECA (2254A), United States Environmental Protection Agency, Ariel Rios Building, 1200 Pennsylvania Avenue, NW, Washington DC 20460.

[ (d) Within three working days of the receipt of a shipment subject to 40 CFR Part 262, Subpart H, concerning transfrontier shipments of hazardous waste for recovery within the Organization for Economic Cooperation and Development, the owner or operator of the facility must provide a copy of the tracking document bearing all required signatures to the notifier, to the Office of Enforcement and Compliance Assurance, Office of Compliance, Enforcement Planning, Targeting and Data Division(2222A), Environmental Protection Agency, 401 M St., SW., Washington, DC 20460, and to competent authorities of all other concerned countries, as defined under 40 CFR §262.81. The original copy of the tracking document must be maintained at the facility for at least three years from the date of signature.]

(e) The guidelines for rejecting waste are as follows.

(1) Upon rejecting waste or identifying a container residue that exceeds the quantity limits for "empty" containers set forth in 40 CFR §261.7(b), the facility must consult with the generator prior to forwarding the waste to another facility that can manage the waste.

(A) If it is impossible to locate an alternative facility that can receive the waste, the facility may return the rejected waste or residue to the generator. The facility must send the waste to the alternative facility or to the generator within 60 days of the rejection or the container residue identification.

(B) While the facility is making arrangements for forwarding rejected wastes or residues to another facility under this section, it must ensure that either the delivering transporter retains custody of the waste, or the facility must provide for secure, temporary custody of the waste, pending delivery of the waste to the first transporter designated on the manifest prepared under paragraph (2) or (3) of this subsection.

(2) Except as provided in subsection (e)(3) of this section, for full or partial load rejections and residues that are to be sent off-site to an alternate facility, the facility is required to prepare a new manifest as set in §335.10 of this title.

(3) For full load rejections that are made while the transporter remains present at the facility, the facility may forward the rejected shipment to the alternate facility.

(4) Except as provided in paragraph (5) of this subsection, for rejected wastes and residues that must be sent back to the generator, the facility is required to prepare a new manifest in accordance with §335.10 of this title.

(5) For full load rejections that are made while the transporter remains at the facility, the facility may return the shipment to the generator with the original manifest designating the generator as the alternate facility. The facility must retain a copy for its records then give the remaining copies of the manifest to the transporter to accompany the shipment. If the original manifest is not used, then the facility must use a new manifest.

(6) If a facility rejects a waste or identifies a container residue that exceeds the quantity limits for "empty" containers set forth in 40 CFR §261.7(b) after it has signed, dated, and returned a copy of the manifest to the delivering transporter or to the generator, the facility must amend its copy of the manifest to indicate the rejected wastes or residues in the discrepancy space of the amended manifest. The facility must also copy the manifest tracking number of the new manifest to the discrepancy space of the amended manifest, and must re-sign and date the manifest to certify to the information as amended. The facility must retain the amended manifest for at least three years from the date of amendment, and must within 30 days, send a copy of the amended manifest to the transporter and generator that received copies prior to the amendments.

§335.15.Recordkeeping and Reporting Requirements Applicable to Owners or Operators of Treatment, Storage, [ Processing, ] or Disposal Facilities.

This section applies to owners and operators who receive hazardous or Class 1 waste from off-site sources or who have notified that they intend to receive hazardous or Class 1 waste from off-site sources.

(1) The owner or operator of the treatment, storage, [ processing, ] or disposal facility designated on the manifest shall retain a copy of each manifest or, in the case of shipments by rail or water (bulk shipment), a copy of each manifest and shipping paper, for a minimum of three years from the date of initial shipment by the generator or primary exporter where appropriate.

(2) Except as provided in paragraph (6) of this section or as provided in §335.24(h) of this title (relating to Requirements for Recyclable Materials and Nonhazardous Recyclable Materials), the owner or operator shall prepare a complete and correct Monthly Waste Receipt Summary for all manifested and unmanifested hazardous or Class 1 waste shipments received. The Monthly Waste Receipt Summary shall be submitted electronically, using software provided by the executive director. Upon written request by the receiver, authorization may be given by the executive director to use paper forms or an alternative reporting method. The Monthly Waste Receipt Summary shall be submitted to the executive director on or before the 25th of each month for wastes or manifests received during the previous month. (The appropriate abbreviations for method of treatment, storage, [ processing, ] and disposal of waste and for units of measure may be found on the form or accompanying instructions.) Any owner or operator of a treatment, storage, [ processing, ] or disposal facility required to comply with this paragraph [ subsection ] shall prepare and submit a Monthly Waste Receipt Summary each month even if no waste was received.

(3) If a facility accepts for treatment, storage, or disposal any hazardous waste or Class 1 waste from an off-site source without an accompanying manifest, or without an accompanying shipping paper as described in §335.10 of this title (relating to Shipping and Reporting Procedures Applicable to Generators of Hazardous Waste or Class 1 Waste and Primary Exporters of Hazardous Waste), and if the waste is not excluded from the manifest requirement of this chapter, then the owner or operator must prepare and submit a letter to the executive director within 15 days after receiving the waste. The unmanifested waste report must contain the following information: [ The owner or operator shall submit a report on forms provided or approved by the executive director summarizing the types and volumes of any hazardous waste received without manifests, or, in the case of shipments by rail or water (bulk shipments), without shipping papers. This report shall be submitted within 15 days of receiving the waste, regardless of quantity, and shall include the following information: ]

(A) the United States Environmental Protection Agency (EPA) [ EPA ] identification number, name, and address of the facility;

(B) - (C) (No change.)

(D) a description and the quantity of each unmanifested hazardous waste the facility received which was not accompanied by a manifest;

(E) the method of treatment, storage, [ processing, ] or disposal for each hazardous waste;

(F) (No change.)

(G) a brief explanation of why the waste was unmanifested [ unaccompanied by a manifest ], if known.

(4) The owner or operator shall retain a copy of each summary required by paragraphs (2) and (3) of this section [ subsection ] for a minimum of three years from the date of each summary.

(5) - (7) (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 9, 2006.

TRD-200601529

Stephanie Bergeron Perdue

Acting Deputy Director, Office of Legal Services

Texas Commission on Environmental Quality

Earliest possible date of adoption: April 23, 2006

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


Subchapter B. HAZARDOUS WASTE MANAGEMENT GENERAL PROVISIONS

30 TAC §335.41

STATUTORY AUTHORITY:

The amendment is proposed under TWC, §5.103 and §5.105, which provide the commission with the authority to adopt any rules necessary to carry out its powers and duties under the provisions of the TWC or other laws of this state; and under THSC, Solid Waste Disposal Act, §361.017 and §361.024, which authorize the commission to regulate industrial solid waste and hazardous waste and to adopt rules consistent with the general intent and purposes of the THSC.

The proposed amendment implements THSC, Chapter 361.

§335.41.Purpose, Scope and Applicability.

(a) (No change.)

(b) Subchapter E of this chapter (relating to Interim Standards for Owners and Operators of Hazardous Waste Treatment, Storage, [ Processing, ] or Disposal Facilities); Subchapter F of this chapter (relating to Permitting Standards for Owners and Operators of Hazardous Waste, Treatment, Storage, [ Processing, ] or Disposal Facilities); §335.12 of this title (relating to Shipping Requirements Applicable to Owners or Operators of Treatment, Storage, [ Processing, ] or Disposal Facilities); and §335.15 of this title (relating to Recordkeeping and Reporting Requirements Applicable to Owners or Operators of Treatment, Storage, [ Processing, ] or Disposal Facilities) do not apply to an owner or operator of a totally enclosed treatment facility, as defined in §335.1 of this title (relating to Definitions).

(c) - (e) (No change.)

(f) The following requirements apply to residues of hazardous waste in containers.

(1) Subchapters B - F and O of this chapter (relating to Hazardous Waste Management General Provisions; Standards Applicable to Generators of Hazardous Waste; Standards Applicable to Transporters of Hazardous Waste; Interim Standards for Owners and Operators of Hazardous Waste Treatment, Storage, [ Processing, ] or Disposal Facilities; Permitting Standards for Owners and Operators of Hazardous Waste, Treatment, Storage, [ Processing, ] or Disposal Facilities; and Land Disposal Restrictions) do not apply to any hazardous waste remaining in either an empty container or an inner liner removed from an empty container, as defined in paragraph (2) of this subsection. This exemption does not apply to any hazardous waste in either a container that is not empty or an inner liner removed from a container that is not empty.

(2) For purposes of determining whether a container is empty under this subsection, the following provisions apply:

(A) a container or an inner liner removed from a container that has held any hazardous waste, except a waste that is a compressed gas or that is identified as an acute hazardous waste listed in 40 CFR §§261.31, 261.32, or 261.33(e) is empty if:

(i) - (ii) (No change.)

(iii) no more than 3.0% by weight of the total capacity of the container remains in the container or inner liner if the container is less than or equal to 119 [ 110 ] gallons in size, or no more than 0.3% by weight of the total capacity of the container remains in the container or inner liner if the container is greater than 119 [ 110 ] gallons in size;

(B) - (C) (No change.)

(g) - (j) (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 9, 2006.

TRD-200601530

Stephanie Bergeron Perdue

Acting Deputy Director, Office of Legal Services

Texas Commission on Environmental Quality

Earliest possible date of adoption: April 23, 2006

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


Subchapter C. STANDARDS APPLICABLE TO GENERATORS OF HAZARDOUS WASTE

30 TAC §§335.67 - 335.69, 335.76

STATUTORY AUTHORITY:

The amendments are proposed under TWC, §5.103 and §5.105, which provide the commission with the authority to adopt any rules necessary to carry out its powers and duties under the provisions of the TWC or other laws of this state; and under THSC, Solid Waste Disposal Act, §361.017 and §361.024, which authorize the commission to regulate industrial solid waste and hazardous waste and to adopt rules consistent with the general intent and purposes of the THSC.

The proposed amendments implement THSC, Chapter 361.

§335.67.Marking.

(a) (No change.)

(b) Before transporting or offering hazardous waste for transportation off-site, a generator must mark each container of 119 [ 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 U.S. Environmental Protection Agency (EPA) [ EPA ].

Figure: 30 TAC §335.67(b)

§335.68.Placarding.

Before transporting or offering hazardous waste for transportation off-site, a generator must placard or offer the initial transporter the appropriate placards according to Department of Transportation regulations for hazardous materials under 49 Code of Federal Regulations (CFR) Part 172, Subpart F. If placards are not required, a generator must mark each motor vehicle according to 49 CFR §171.3(b)(1), which states that no person may accept for transportation, transport, or deliver a hazardous waste for which a manifest is required unless that person has marked each motor vehicle used to transport hazardous waste in accordance with §390.21 or §1058.2 even though placards may not be required.

§335.69.Accumulation Time.

(a) Generators that comply with the requirements of paragraph (1) of this subsection are exempt from all requirements adopted by reference in §335.112(a)(6) and (7) of this title (relating to Standards), except 40 Code of Federal Regulations (CFR) §265.111 and §265.114. Except as provided in subsections (f) - (k) of this section, a generator may accumulate hazardous waste on-site for 90 days without a permit or interim status provided that:

(1) the waste is placed:

(A) - (C) (No change.)

(D) the waste is placed in containment buildings and the generator complies with 40 CFR Part 265, Subpart DD, as adopted by reference under §335.112(a) of this title and has placed its professional engineer certification that the building complies with the design standards specified in 40 CFR §265.1101 in the facility's operating record prior to operation of the unit. The owner or operator shall maintain the following records at the facility:

(i) (No change.)

(ii) documentation that the unit is emptied at least once every 90 days ; [ . ]

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

(b) (No change.)

(c) Persons exempted under this provision, who generate hazardous waste, are still subject to the requirements in Subchapter A of this chapter (relating to Industrial Solid Waste and Municipal Hazardous Waste [ Management ] in General) applicable to generators of Class 1 waste.

(d) A generator, other than a conditionally exempt small quantity generator regulated under §335.78 of this title (relating to Special Requirements for Hazardous Waste Generated by Conditionally Exempt Small Quantity Generators), may accumulate as much as 55 gallons of hazardous waste or one quart of acutely hazardous waste listed in 40 CFR §261.33(e) in containers at or near any point of generation where wastes initially accumulate, which is under the control of the operator of the process generating the waste, without a permit or interim status and without complying with subsection (a) of this section provided he:

(1) complies with 40 CFR §§265.171, 265.172 , and 265.173(a), as adopted by reference under §335.112(a) of this title (relating to Standards); and

(2) (No change.)

(e) (No change.)

(f) A generator who generates greater than 100 kilograms but less than 1,000 kilograms of hazardous waste in a calendar month may accumulate hazardous waste on-site for 180 days or less without a permit or without having interim status provided that:

(1) - (3) (No change.)

(4) the generator complies with the requirements of:

(A) subsection [ subsections ] (a)(2) and (3) of this section;

(B) - (C) (No change.)

(5) the generator complies with the following requirements . [ : ]

(A) - (C) (No change.)

(D) The emergency coordinator or his designee must respond to any emergencies that arise. The applicable responses are as follows . [ : ]

(i) In the event of a fire, call the fire department or attempt to extinguish it using a fire extinguisher . [ ; ]

(ii) In the event of a spill, contain the flow of hazardous waste to the extent possible, and as soon as is practicable, clean up the hazardous waste and any contaminated materials or soil . [ ; ]

(iii) In the event of a fire, explosion, or other release which could threaten human health outside the facility or when the generator has knowledge that a spill has reached surface water, the generator must immediately notify the National Response Center (using its [ their ] 24-hour toll free number (800) 424-8802) and the commission according to the procedures set out in the State of Texas oil and hazardous substances spill contingency plan. The reports must include the following information:

(I) the name, address, and United States Environmental Protection Agency (EPA) identification number [ Identification Number ] of the generator;

(II) - (V) (No change.)

(g) A generator who generates greater than 100 kilograms but less than 1,000 kilograms of hazardous waste in a calendar month and who must transport his waste, or offer his waste for transportation, over a distance of 200 miles or more for off-site processing, storage , or disposal may accumulate hazardous waste on-site for 270 days or less without a permit or without having interim status, provided that he complies with the requirements of subsection (f) of this section.

(h) A generator who generates greater than 100 kilograms but less than 1,000 kilograms of hazardous waste in a calendar month and who accumulates hazardous waste in quantities exceeding 6,000 kilograms [ kg ] or accumulates hazardous waste for more than 180 days (or for more than 270 days if he must transport his waste, or offer his waste for transportation, over a distance of 200 miles or more) is an operator of a storage facility and is subject to the requirements of this chapter (relating to Industrial Solid Waste and Municipal Hazardous Waste), and Subchapters E and F of this chapter (relating to Interim Standards for Owners and Operators of Hazardous Waste Treatment, Storage, [ Processing, ] or Disposal Facilities; and Permitting Standards for Owners and Operators of Hazardous Waste Treatment, Storage, [ Processing, ] or Disposal Facilities) and the permit requirements of Chapter 305 of this title (relating to Consolidated Permits), unless he has been granted an extension to the 180-day (or 270-day, if applicable) period. Such extension may be granted by the executive director if hazardous wastes must remain on-site for longer than 180 days (or 270 days, if applicable) due to unforeseen, temporary, and uncontrollable circumstances. An extension of up to 30 days may be granted at the discretion of the executive director on a case-by-case basis.

(i) (No change.)

(j) A generator of 1,000 kilograms or greater of hazardous waste per calendar month who also generates wastewater treatment sludges from electroplating operations that meet the listing description for EPA hazardous waste number F006, may accumulate F006 waste on-site for more than 90 days, but not more than 180 days without a permit or without having interim status provided that:

(1) the generator has implemented pollution prevention practices that reduce the amount of any hazardous substances, pollutants , or contaminants entering the F006 waste or otherwise released to the environment prior to its recycling;

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

(k) - (l) (No change.)

(m) A generator who sends a shipment of hazardous waste to a designated facility with the understanding that the designated facility can accept and manage the waste and later receives that shipment back as a rejected load or residue in accordance with the manifest discrepancy provisions of §335.10 of this title (relating to Shipping and Reporting Procedures Applicable to Generators of Hazardous Waste or Class 1 Waste and Primary Exporters of Hazardous Waste) may accumulate the returned waste on-site in accordance with subsections (a) and (b) or (d), (e), and (f) of this section depending on the amount of hazardous waste on-site in that calendar month.

§335.76.Additional Requirements Applicable to International Shipments.

(a) Any person who exports hazardous waste to a foreign country or imports hazardous waste from a foreign country into the state must comply with the requirements of this title and with the special requirements of this section. Except to the extent the regulations contained in 40 Code of Federal Regulations (CFR) §262.58, [ as amended and adopted through April 12, 1996 (61 FR 16290) provide otherwise, ] a primary exporter of hazardous waste must comply with the special requirements of this section as they apply to primary exporters, and a transporter transporting hazardous waste for export must comply with applicable requirements of §335.11 of this title (relating to Shipping Requirements for Transporters of Hazardous Waste or Class 1 Waste) and §335.14 of this title (relating to Recordkeeping Requirements Applicable to Transporters of Hazardous Waste or Class 1 Waste) and Subchapter D of this chapter (relating to Standards Applicable to Transporters of Hazardous Waste). 40 CFR §262.58 sets forth the requirements of international agreements between the United States and receiving countries which establish different notice, export, and enforcement procedures for the transportation, processing, storage, and disposal of hazardous waste for shipments between the United States and those countries.

(b) Exports of hazardous waste are prohibited except in compliance with the applicable requirements of this subchapter, the special requirements of this section, and §335.11 of this title [ (relating to Shipping Requirements for Transporters of Hazardous Waste or Class 1 Waste) ] and §335.14 of this title (relating to Recordkeeping Requirements Applicable to Transporters of Hazardous Waste or Class 1 Waste) and Subchapter D of this chapter (relating to Standards Applicable to Transporters of Hazardous Waste). Exports of hazardous waste are prohibited unless:

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

(3) a copy of the United States Environmental Protection Agency (EPA) [ EPA ] acknowledgment of consent to the shipment accompanies the hazardous waste shipment and, unless exported by rail, is attached to the manifest (or shipping paper for exports by water (bulk shipment));

(4) (No change.)

(5) the primary exporter complies with the manifest requirements of §335.10[ (a) - (d) ] of this title (relating to Shipping and Reporting Procedures Applicable to Generators of Hazardous Waste or Class 1 Waste and Primary Exporters of Hazardous Waste) except that:

(A) the primary exporter must attach a copy of the EPA acknowledgment of consent to the shipment to the manifest which must accompany the hazardous waste shipment. For exports by rail or water (bulk shipment), the primary exporter must provide the transporter with an EPA acknowledgment of consent which must accompany the hazardous waste but which need not be attached to the manifest except that for exports by water (bulk shipment) the primary exporter must attach the copy of the EPA acknowledgment of consent to the shipping paper; and

(B) the primary exporter may obtain the manifest from any source that is registered with the EPA as a supplier of manifests.

[ (A) in lieu of the name, site address, and EPA ID number of the designated permitted facility, the primary exporter must enter the name and site address of the consignee;]

[ (B) in lieu of the name, site address and EPA ID number of a permitted alternate facility, the primary exporter may enter the name and site address of any alternate consignee;]

[ (C) in special handling instructions and additional information, the primary exporter must identify the point of departure from the United States;]

[ (D) the following statement must be added to the end of the first sentence of the certification set forth in item 16 of the uniform hazardous waste manifest form, as set out in §335.10(b)(23) of this title: "and conforms to the terms of the attached EPA acknowledgment of consent";]

[ (E) the primary exporter must require the consignee to confirm in writing the delivery of the hazardous waste to that facility and to describe any significant discrepancies (as defined in §335.12(c)(1) of this title (relating to Shipping Requirements Applicable to Owners or Operators of Storage, Processing, or Disposal Facilities) as the subsection applies to hazardous waste between the manifest and the shipment. A copy of the manifest signed by such facility may be used to confirm delivery of the hazardous waste;]

[ (F) in lieu of the requirements of §335.10(a) of this title, where a shipment cannot be delivered for any reason to the designated or alternate consignee, the primary exporter must:]

[ (i) renotify EPA of a change in the conditions of the original notification to allow shipment to a new consignee in accordance with the regulations contained in 40 CFR §262.53(c), which are in effect as of November 8, 1986, and obtain an EPA acknowledgment of consent prior to delivery; or]

[ (ii) instruct the transporter to return the waste to the primary exporter in the United States or designate another facility within the United States; and]

[ (iii) instruct the transporter to revise the manifest in accordance with the primary exporter's instructions;]

[ (G) the primary exporter must attach a copy of the EPA acknowledgment of consent to the shipment to the manifest which must accompany the hazardous waste shipment. For exports by rail or water (bulk shipment), the primary exporter must provide the transporter with an EPA acknowledgment of consent which must accompany the hazardous waste but which need not be attached to the manifest except that for exports by water (bulk shipment) the primary exporter must attach the copy of the EPA acknowledgment of consent to the shipping paper; and]

[ (H) the primary exporter shall provide the transporter with an additional copy of the manifest for delivery to the United States customs official at the point the hazardous waste leaves the United States in accordance with §335.11(g)(4) of this title.]

(c) (No change.)

(d) When importing hazardous waste into the state from a foreign country, a person must prepare a manifest in accordance with the requirements of §335.10 of this title for the manifest except:

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

(3) a person who imports hazardous waste may obtain the Uniform Hazardous Waste Manifest from any source that is registered with the EPA as a supplier of the manifests. [ a person who imports hazardous waste must obtain the manifest form from the consignment state if the state supplies the manifest and requires its use. If the consignment state does not supply the manifest form, then the manifest form may be obtained from any source. ]

(e) - (g) (No change.)

(h) Transfrontier shipments of hazardous waste for recovery within the Organization for Economic Cooperation and Development are subject to 40 CFR Part 262, Subpart H, which is adopted by reference as amended and adopted in the CFR through April 12, 1996 (61 FR 16290) [ , at 61 FedReg 16290 ].

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 9, 2006.

TRD-200601531

Stephanie Bergeron Perdue

Acting Deputy Director, Office of Legal Services

Texas Commission on Environmental Quality

Earliest possible date of adoption: April 23, 2006

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


Subchapter E. INTERIM STANDARDS FOR OWNERS AND OPERATORS OF HAZARDOUS WASTE TREATMENT, STORAGE, OR DISPOSAL FACILITIES

30 TAC §335.112

STATUTORY AUTHORITY

The amendment is proposed under TWC, §5.103 and §5.105, which provide the commission with the authority to adopt any rules necessary to carry out its powers and duties under the provisions of the TWC or other laws of this state; and under THSC, Solid Waste Disposal Act, §361.017 and §361.024, which authorize the commission to regulate industrial solid waste and hazardous waste and to adopt rules consistent with the general intent and purposes of the THSC.

The proposed amendment implements THSC, Chapter 361.

§335.112.Standards.

(a) The following regulations contained in 40 Code of Federal Regulations (CFR) Part 265 (including all appendices to Part 265) (except as otherwise specified herein) are adopted by reference as amended and adopted in the CFR through June 1, 1990 (55 FR 22685) and as further amended as indicated in each paragraph of this subsection:

(1) - (3) (No change.)

(4) Subpart E - Manifest System, Recordkeeping and Reporting (as amended through June 16, 2005 (70 CFR 35037)). [ (as amended through December 8, 1997 (62 FR 64636)), except 40 CFR §§265.71, 265.72, 265.75, 265.76, and 265.77. ]

(5) Subpart F - Groundwater Monitoring (as amended through October 22, 1998[ , ] (63 FR 56709)), except 40 CFR §265.90 and §265.94;

(6) Subpart G - Closure and Post-Closure (as amended through October 22, 1998[ , ] (63 FR 56709)); except 40 CFR §265.112(d)(3) and (4) and §265.118(e) and (f);

(7) Subpart H - Financial Requirements (as amended through September 16, 1992 (57 FR 42832)); except 40 CFR §§265.140, 265.141, 265.142(a)(2), 265.142 (b) and (c) [ (b) - (c) ], 265.143(a) - (g), 265.144 (b) and (c) [ (b) - (c) ], 265.145(a) - (g), 264.146, 265.147(a) - (d), 265.147(f) - (k), and 265.148 - 265.150 [ 265.148, 265.149, and 265.150 ];

(8) - (12) (No change.)

(13) Subpart N - Landfills (as amended through July 10, 1992 (57 FR 30658)), except 40 CFR §§265.301(f) - [ 265.301 ](i), 265.314, and 265.315;

(14) - (19) (No change.)

(20) Subpart BB - Air Emission Standards for Equipment Leaks (as amended through April 26, 2005 (69 FR 22601)) [ December 8, 1997 (62 FR 64636)) ];

(21) - (24) (No change.)

(b) The regulations of the United States Environmental Protection Agency (EPA) [ EPA ] that are adopted by reference in this section are adopted subject to the following changes.

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

(3) Reference to Resource Conservation and Recovery Act [ RCRA ], §3008(h) is changed to Texas Water Code, §7.031(c) - (e) (Corrective Action Relating to Hazardous Waste).

(4) Reference to:

(A) - (I) (No change.)

(J) 40 CFR §270.28 is changed to §305.50 of this title (relating to Additional Requirements for an Application for a Hazardous or Industrial Solid Waste Permit and for a Post-Closure Order );

(K) - (L) (No change.)

(5) - (6) (No change.)

(7) Reference to 40 CFR §§265.71, 265.72, 265.76, and 265.77 is changed to §335.12 of this title (relating to Shipping Requirements Applicable to Owners or Operators of Treatment, Storage, [ Processing, ] or Disposal Facilities), §335.12(c)(1) and (2) of this title, §335.15(3) of this title (relating to Recordkeeping and Reporting Requirements Applicable to Owners or Operators of Treatment, Storage, [ Processing, ] or Disposal Facilities), and §335.115 of this title (relating to Additional Reports), respectively.

(8) - (10) (No change.)

(c) (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 9, 2006.

TRD-200601532

Stephanie Bergeron Perdue

Acting Deputy Director, Office of Legal Services

Texas Commission on Environmental Quality

Earliest possible date of adoption: April 23, 2006

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


Subchapter F. PERMITTING STANDARDS FOR OWNERS AND OPERATORS OF HAZARDOUS WASTE TREATMENT, STORAGE, OR DISPOSAL FACILITIES

30 TAC §335.152

STATUTORY AUTHORITY:

The amendment is proposed under TWC, §5.103 and §5.105, which provide the commission with the authority to adopt any rules necessary to carry out its powers and duties under the provisions of the TWC or other laws of this state; and under THSC, Solid Waste Disposal Act, §361.017 and §361.024, which authorize the commission to regulate industrial solid waste and hazardous waste and to adopt rules consistent with the general intent and purposes of the THSC.

The proposed amendment implements THSC, Chapter 361.

§335.152.Standards.

(a) The following regulations contained in 40 Code of Federal Regulations (CFR) Part 264 (including all appendices to Part 264) are adopted by reference as amended and adopted in the CFR through June 1, 1990 (55 FR 22685) and as further amended and adopted as indicated in each paragraph of this subsection:

(1) - (3) (No change.)

(4) Subpart E - Manifest System, Recordkeeping, and Reporting (as amended through June 16, 2005 (70 FR 35037)) ; [ December 8, 1997 (62 FR 64636)), except 40 CFR §§264.71, 264.72, 264.76 and 264.77 ] facilities which are subject to 40 CFR Part 264, Subpart X, are subject to 40 CFR §264.73(b)(6);

(5) Subpart G - Closure and Post-Closure (as amended through October 22, 1998[ , ] (63 FR 56709)); facilities which are subject to 40 CFR Part 264, Subpart X, are subject to 40 CFR §§264.90(d), 264.111(c), 264.112(a)(2), 264.114, 264.117(a)(1)(i) and (ii), and 264.118(b)(1) and (2)(i) and (ii);

(6) Subpart H - Financial Requirements (as amended through June 10, 1994 (59 FR 29958)); except 40 CFR §§264.140, 264.141, 264.142(a)(2), 264.142 (b) and (c) [ (b) - (c) ], 264.143(a) - (h), 264.144 (b) and (c) [ (b) - (c) ], 264.145(a) - (h), 264.146, 264.147(a) - (d), 264.147(f) - (k), and 264.148 - 264.151 [ 264.148, 264.149, 264.150, and 264.151 ]; and subject to the following limitations: facilities which are subject to 40 CFR Part 264, Subpart X, are subject to 40 CFR §§264.142(a), 264.144(a), and 37.6031(c) of this title (relating to Financial Assurance Requirements for Liability);

(7) - (22) (No change.)

(b) (No change.)

(c) The regulations of the United States Environmental Protection Agency (EPA) [ EPA ] that are adopted by reference in this section are adopted subject to the following changes.

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

(3) Reference to Resource Conservation and Recovery Act [ RCRA ], §3008(h) is changed to Texas Water Code, §7.031(c) - (e) (relating to Corrective Action Relating to Hazardous Waste).

(4) - (6) (No change.)

(7) Reference to 40 CFR §§264.71, 264.72, 264.76, and 264.77 is changed to §335.12 of this title (relating to Shipping Requirements Applicable to Owners or Operators of Treatment, Storage, [ Processing, ] or Disposal Facilities), §335.12(c)(1) and (2) of this title, §335.15(3) of this title (relating to Recordkeeping and Reporting Requirements Applicable to Owners or Operators of Treatment, Storage, [ Processing, ] or Disposal Facilities), and §335.155 of this title (relating to Additional Reports), respectively.

(8) - (10) (No change.)

(d) (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 9, 2006.

TRD-200601533

Stephanie Bergeron Perdue

Acting Deputy Director, Office of Legal Services

Texas Commission on Environmental Quality

Earliest possible date of adoption: April 23, 2006

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