CHAPTER 5. TEXAS NATURAL RESOURCE CONSERVATION COMMISSION

WATER CODE

TITLE 2. WATER ADMINISTRATION

SUBTITLE A. EXECUTIVE AGENCIES

CHAPTER 5. TEXAS NATURAL RESOURCE CONSERVATION COMMISSION

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 5.001. DEFINITIONS. In this chapter:

(1) "Board" means the Texas Water Development Board.

(2) "Commission" means the Texas Commission on Environmental

Quality.

(3) "Executive director" means the executive director of the

Texas Commission on Environmental Quality.

(4) "Clean coal project" means the installation of one or more

components of the coal-based integrated sequestration and

hydrogen research project to be built in partnership with the

United States Department of Energy, commonly referred to as the

FutureGen project. The term includes the construction or

modification of a facility for electric generation, industrial

production, or the production of steam as a byproduct of coal

gasification to the extent that the facility installs one or more

components of the FutureGen project.

(5) "Coal" has the meaning assigned by Section 134.004, Natural

Resources Code.

(6) "Component of the FutureGen project" means a process,

technology, or piece of equipment that:

(A) is designed to employ coal gasification technology to

generate electricity, hydrogen, or steam in a manner that meets

the FutureGen project profile;

(B) is designed to employ fuel cells to generate electricity in

a manner that meets the FutureGen project profile;

(C) is designed to employ a hydrogen-fueled turbine to generate

electricity where the hydrogen is derived from coal in a manner

that meets the FutureGen project profile;

(D) is designed to demonstrate the efficacy at an electric

generation or industrial production facility of a carbon dioxide

capture technology in a manner that meets the FutureGen project

profile;

(E) is designed to sequester a portion of the carbon dioxide

captured from an electric generation or industrial production

facility in a manner that meets the FutureGen project profile in

conjunction with appropriate remediation plans and appropriate

techniques for reservoir characterization, injection control, and

monitoring;

(F) is designed to sequester carbon dioxide as part of enhanced

oil recovery in a manner that meets the FutureGen project profile

in conjunction with appropriate techniques for reservoir

characterization, injection control, and monitoring;

(G) qualifies for federal funds designated for the FutureGen

project;

(H) is required to perform the sampling, analysis, or research

necessary to submit a proposal to the United States Department of

Energy for the FutureGen project; or

(I) is required in a final United States Department of Energy

request for proposals for the FutureGen project or is described

in a final United States Department of Energy request for

proposals as a desirable element to be considered in the awarding

of the project.

(7) "FutureGen project profile" means a standard or standards

relevant to a component of the FutureGen project, as provided in

a final or amended United States Department of Energy request for

proposals or contract.

Amended by Acts 1985, 69th Leg., ch. 795, Sec. 1.001, eff. Sept.

1, 1985; Acts 1991, 72nd Leg., 1st C.S., ch. 3, Sec. 1.001, eff.

Aug. 12, 1991.

Amended by:

Acts 2005, 79th Leg., Ch.

1097, Sec. 6, eff. June 18, 2005.

Sec. 5.002. SCOPE OF CHAPTER. The powers and duties enumerated

in this chapter are the general powers and duties of the

commission and those incidental to the conduct of its business.

The commission has other specific powers and duties as prescribed

in other sections of this code and other laws of this state.

Amended by Acts 1985, 69th Leg., ch. 795, Sec. 1.001, eff. Sept.

1, 1985.

SUBCHAPTER B. ORGANIZATION OF THE TEXAS NATURAL RESOURCE

CONSERVATION COMMISSION

Sec. 5.011. PURPOSE OF CHAPTER. It is the purpose of this

chapter to provide an organizational structure for the commission

that will provide more efficient and effective administration of

the conservation of natural resources and the protection of the

environment in this state and to define the duties,

responsibilities, authority, and functions of the commission and

the executive director.

Amended by Acts 1985, 69th Leg., ch. 795, Sec. 1.001, eff. Sept.

1, 1985; Acts 1991, 72nd Leg., 1st C.S., ch. 3, Sec. 1.003, eff.

Aug. 12, 1991.

Sec. 5.012. DECLARATION OF POLICY. The commission is the agency

of the state given primary responsibility for implementing the

constitution and laws of this state relating to the conservation

of natural resources and the protection of the environment.

Amended by Acts 1985, 69th Leg., ch. 795, Sec. 1.001, eff. Sept.

1, 1985; Acts 1991, 72nd Leg., 1st C.S., ch. 3, Sec. 1.004, eff.

Aug. 12, 1991.

Sec. 5.013. GENERAL JURISDICTION OF COMMISSION. (a) The

commission has general jurisdiction over:

(1) water and water rights including the issuance of water

rights permits, water rights adjudication, cancellation of water

rights, and enforcement of water rights;

(2) continuing supervision over districts created under Article

III, Sections 52(b)(1) and (2), and Article XVI, Section 59, of

the Texas Constitution;

(3) the state's water quality program including issuance of

permits, enforcement of water quality rules, standards, orders,

and permits, and water quality planning;

(4) the determination of the feasibility of certain federal

projects;

(5) the adoption and enforcement of rules and performance of

other acts relating to the safe construction, maintenance, and

removal of dams;

(6) conduct of the state's hazardous spill prevention and

control program;

(7) the administration of the state's program relating to

inactive hazardous substance, pollutant, and contaminant disposal

facilities;

(8) the administration of a portion of the state's injection

well program;

(9) the administration of the state's programs involving

underground water and water wells and drilled and mined shafts;

(10) the state's responsibilities relating to regional waste

disposal;

(11) the responsibilities assigned to the commission by Chapters

361, 363, 382, and 401, Health and Safety Code;

(12) administration of the state's water rate program under

Chapter 13 of this code; and

(13) any other areas assigned to the commission by this code and

other laws of this state.

(b) The rights, powers, duties, and functions delegated to the

Texas Department of Water Resources by this code or by any other

law of this state that are not expressly assigned to the board

are vested in the commission.

(c) This section allocates among various state agencies

statutory authority delegated by other laws. This section does

not delegate legislative authority.

Amended by Acts 1985, 69th Leg., ch. 795, Sec. 1.001, eff. Sept.

1, 1985; Acts 1991, 72nd Leg., ch. 14, Sec. 284(75), eff. Sept.

1, 1991; Acts 1991, 72nd Leg., 1st C.S., ch. 3, Sec. 1.005, eff.

Aug. 12, 1991; Acts 2001, 77th Leg., ch. 376, Sec. 3.01, eff.

Sept. 1, 2001; Acts 2001, 77th Leg., ch. 965, Sec. 1.01, eff.

Sept. 1, 2001; Acts 2003, 78th Leg., ch. 1067, Sec. 22, eff.

Sept. 1, 2003.

Amended by:

Acts 2007, 80th Leg., R.S., Ch.

1323, Sec. 2, eff. September 1, 2007.

Sec. 5.014. SUNSET PROVISION. The Texas Natural Resource

Conservation Commission is subject to Chapter 325, Government

Code (Texas Sunset Act). Unless continued in existence as

provided by that chapter, the commission is abolished and this

chapter expires September 1, 2011.

Amended by Acts 1985, 69th Leg., ch. 795, Sec. 1.001, eff. Sept.

1, 1985; Acts 1987, 70th Leg., ch. 167, Sec. 2.20(46), eff. Sept.

1, 1987; Acts 1991, 72nd Leg., 1st C.S., ch. 3, Sec. 1.006, eff.

Aug. 12, 1991; Acts 1991, 72nd Leg., 1st C.S., ch. 17, Sec.

5.19(a), eff. Nov. 12, 1991; Acts 2001, 77th Leg., ch. 965, Sec.

1.02, eff. Sept. 1, 2001.

Amended by:

Acts 2009, 81st Leg., 1st C.S., Ch.

2, Sec. 1.12, eff. July 10, 2009.

Sec. 5.015. CONSTRUCTION OF TITLE. This title shall be

liberally construed to allow the commission and the executive

director to carry out their powers and duties in an efficient and

effective manner.

Amended by Acts 1985, 69th Leg., ch. 795, Sec. 1.001, eff. Sept.

1, 1985.

SUBCHAPTER C. TEXAS NATURAL RESOURCE CONSERVATION COMMISSION

Sec. 5.051. COMMISSION. The Texas Natural Resource Conservation

Commission is created as an agency of the state.

Amended by Acts 1985, 69th Leg., ch. 795, Sec. 1.001, eff. Sept.

1, 1985; Acts 1991, 72nd Leg., 1st C.S., ch. 3, Sec. 1.008, eff.

Aug. 12, 1991.

Sec. 5.052. MEMBERS OF THE COMMISSION; APPOINTMENT. (a) The

commission is composed of three members who are appointed by the

governor with the advice and consent of the senate to represent

the general public.

(b) The governor shall make the appointments in such a manner

that each member is from a different section of the state.

(c) Appointments to the commission shall be made without regard

to the race, color, disability, sex, religion, age, or national

origin of the appointees.

Amended by Acts 1985, 69th Leg., ch. 795, Sec. 1.001, eff. Sept.

1, 1985; Acts 1993, 73rd Leg., ch. 485, Sec. 1, eff. June 9,

1993; Acts 2001, 77th Leg., ch. 965, Sec. 1.03, eff. Sept. 1,

2001.

Sec. 5.053. ELIGIBILITY FOR MEMBERSHIP. (a) A person may not

be a member of the commission if the person or the person's

spouse:

(1) is registered, certified, licensed, permitted, or otherwise

authorized by the commission;

(2) is employed by or participates in the management of a

business entity or other organization regulated by the commission

or receiving money from the commission;

(3) owns or controls, directly or indirectly, more than a 10

percent interest in a business entity or other organization

regulated by or receiving funds from the commission; or

(4) uses or receives a substantial amount of tangible goods,

services, or money from the commission other than compensation or

reimbursement authorized by law for commission membership,

attendance, or expenses.

(b) In addition to the eligibility requirements in Subsection

(a) of this section, persons who are appointed to serve on the

commission for terms which expire after August 31, 2001, must

comply at the time of their appointment with the eligibility

requirements established under 33 U.S.C. Sections 1251-1387, as

amended.

(c) Subsection (a)(2) does not apply to an employee of a

political subdivision of this state. If the United States

Environmental Protection Agency determines that there will be a

negative impact on the State of Texas' National Pollution

Discharge Elimination Systems delegation, this subsection does

not apply.

Added by Acts 1995, 74th Leg., ch. 310, Sec. 1, eff. Aug. 28,

1995. Amended by Acts 2001, 77th Leg., ch. 965, Sec. 1.04, eff.

Sept. 1, 2001.

Amended by:

Acts 2007, 80th Leg., R.S., Ch.

1278, Sec. 1, eff. June 15, 2007.

Sec. 5.0535. REQUIRED TRAINING PROGRAM FOR COMMISSION MEMBERS.

(a) A person who is appointed to and qualifies for office as a

member of the commission may not vote, deliberate, or be counted

as a member in attendance at a meeting of the commission until

the person completes a training program that complies with this

section.

(b) The training program must provide the person with

information regarding:

(1) the legislation that created the commission;

(2) the programs operated by the commission;

(3) the role and functions of the commission;

(4) the rules of the commission, with an emphasis on the rules

that relate to disciplinary and investigatory authority;

(5) the current budget for the commission;

(6) the results of recent significant internal and external

audits of the commission;

(7) the requirements of:

(A) the open meetings law, Chapter 551, Government Code;

(B) the public information law, Chapter 552, Government Code;

(C) the administrative procedure law, Chapter 2001, Government

Code; and

(D) other laws relating to public officials, including

conflict-of-interest laws; and

(8) any applicable ethics policies adopted by the commission or

the Texas Ethics Commission.

(c) A person appointed to the commission is entitled to

reimbursement, as provided by the General Appropriations Act, for

the travel expenses incurred in attending the training program

regardless of whether the attendance at the program occurs before

or after the person qualifies for office.

Added by Acts 2001, 77th Leg., ch. 965, Sec. 1.05, eff. Sept. 1,

2001.

Sec. 5.054. REMOVAL OF COMMISSION MEMBERS. (a) It is a ground

for removal from the commission that a member:

(1) does not have at the time of taking office the

qualifications required by Section 5.053(b);

(2) does not maintain during the service on the commission the

qualifications required by Section 5.053(b);

(3) is ineligible for membership under Section 5.053(a), 5.059,

or 5.060;

(4) cannot, because of illness or disability, discharge the

member's duties for a substantial part of the member's term; or

(5) is absent from more than one-half of the regularly scheduled

commission meetings that the member is eligible to attend during

each calendar year without an excuse approved by a majority vote

of the commission.

(b) The validity of an action of the commission is not affected

by the fact that it is taken when a ground for removal of a

member of the commission exists.

(c) If the executive director or a member has knowledge that a

potential ground for removal exists, the executive director or

member shall notify the presiding officer of the commission of

the potential ground. The presiding officer shall then notify the

governor and the attorney general that a potential ground for

removal exists. If the potential ground for removal involves the

presiding officer, the executive director or another member of

the commission shall notify the member of the commission with the

most seniority, who shall then notify the governor and the

attorney general that a potential ground for removal exists.

Amended by Acts 1985, 69th Leg., ch. 795, Sec. 1.001, eff. Sept.

1, 1985; Acts 2001, 77th Leg., ch. 965, Sec. 1.06, eff. Sept. 1,

2001.

Sec. 5.055. OFFICERS OF STATE; OATH. Each member of the

commission is an officer of the state as that term is used in the

constitution, and each member shall qualify by taking the

official oath of office.

Amended by Acts 1985, 69th Leg., ch. 795, Sec. 1.001, eff. Sept.

1, 1985.

Sec. 5.056. TERMS OF OFFICE. (a) The members of the commission

hold office for staggered terms of six years, with the term of

one member expiring every two years. Each member holds office

until his successor is appointed and has qualified.

(b) A person appointed to the commission may not serve for more

than two six-year terms.

Amended by Acts 1985, 69th Leg., ch. 795, Sec. 1.001, eff. Sept.

1, 1985.

Sec. 5.057. FULL-TIME SERVICE. Each member of the commission

shall serve on a full-time basis.

Amended by Acts 1985, 69th Leg., ch. 795, Sec. 1.001, eff. Sept.

1, 1985.

Sec. 5.058. OFFICERS; MEETINGS. (a) The governor shall

designate a member of the commission as the presiding officer of

the commission to serve in that capacity at the pleasure of the

governor.

(b) The presiding officer may designate another commissioner to

act for the presiding officer in the presiding officer's absence.

(c) The presiding officer shall preside at the meetings and

hearings of the commission.

(d) The commission shall hold regular meetings and all hearings

at times specified by a commission order and entered in its

minutes. The commission may hold special meetings at the times

and places in the state that the commission decides are

appropriate for the performance of its duties. The presiding

officer or acting presiding officer shall give the other members

reasonable notice before holding a special meeting.

(e) A majority of the commission is a quorum.

Amended by Acts 1985, 69th Leg., ch. 795, Sec. 1.001, eff. Sept.

1, 1985; Acts 2001, 77th Leg., ch. 965, Sec. 1.07, eff. Sept. 1,

2001.

Sec. 5.059. CONFLICT OF INTEREST. (a) In this section, "Texas

trade association" means a cooperative and voluntarily joined

association of business or professional competitors in this state

designed to assist its members and its industry or profession in

dealing with mutual business or professional problems and in

promoting their common interest.

(b) A person may not be a member of the commission and may not

be a commission employee employed in a "bona fide executive,

administrative, or professional capacity," as that phrase is used

for purposes of establishing an exemption to the overtime

provisions of the federal Fair Labor Standards Act of 1938 (29

U.S.C. Section 201 et seq.) and its subsequent amendments, if:

(1) the person is an officer, employee, or paid consultant of a

Texas trade association in an industry regulated by the

commission; or

(2) the person's spouse is an officer, manager, or paid

consultant of a Texas trade association in an industry regulated

by the commission.

Amended by Acts 1985, 69th Leg., ch. 795, Sec. 1.001, eff. Sept.

1, 1985; Acts 2001, 77th Leg., ch. 965, Sec. 1.08, eff. Sept. 1,

2001.

Sec. 5.060. LOBBYIST PROHIBITION. A person may not be a member

of the commission or act as general counsel to the commission if

the person is required to register as a lobbyist under Chapter

305, Government Code, because of the person's activities for

compensation on behalf of a profession related to the operation

of the commission.

Amended by Acts 1985, 69th Leg., ch. 795, Sec. 1.001, eff. Sept.

1, 1985; Acts 1987, 70th Leg., ch. 167, Sec. 2.19(24), eff. Sept.

1, 1987; Acts 2001, 77th Leg., ch. 965, Sec. 1.08, eff. Sept. 1,

2001.

SUBCHAPTER D. GENERAL POWERS AND DUTIES OF THE COMMISSION

Sec. 5.101. SCOPE OF SUBCHAPTER. The powers and duties provided

by this subchapter are the general powers and duties of the

commission and those incidental to the conduct of its business.

The commission has other specific powers and duties as prescribed

in other sections of the code and other laws of this state.

Amended by Acts 1985, 69th Leg., ch. 795, Sec. 1.001, eff. Sept.

1, 1985.

Sec. 5.102. GENERAL POWERS. (a) The commission has the powers

to perform any acts whether specifically authorized by this code

or other law or implied by this code or other law, necessary and

convenient to the exercise of its jurisdiction and powers as

provided by this code and other laws.

(b) The commission may call and hold hearings, receive evidence

at hearings, administer oaths, issue subpoenas to compel the

attendance of witnesses and the production of papers and

documents, and make findings of fact and decisions with respect

to its jurisdiction under this code and other laws and rules,

orders, permits, licenses, certificates, and other actions

adopted, issued, or taken by the commission.

Amended by Acts 1985, 69th Leg., ch. 795, Sec. 1.001, eff. Sept.

1, 1985.

Sec. 5.103. RULES. (a) The commission shall adopt any rules

necessary to carry out its powers and duties under this code and

other laws of this state.

(b) The commission shall adopt reasonable procedural rules to be

followed in a commission hearing. The executive director may

recommend to the commission for its consideration any rules that

he considers necessary.

(c) Rules shall be adopted in the manner provided by Chapter

2001, Government Code. As provided by that Act, the commission

must adopt rules when adopting, repealing, or amending any agency

statement of general applicability that interprets or prescribes

law or policy or describes the procedure or practice requirements

of an agency. The commission shall follow its own rules as

adopted until it changes them in accordance with that Act.

(d) The commission shall include as a part of each rule the

commission adopts, and each proposed rule for adoption after the

effective date of this subsection, a citation to the statute that

grants the specific regulatory authority under which the rule is

justified and a citation of the specific regulatory authority

that will be exercised. If no specific statutory authority exists

and the agency is depending on this section, citation of this

section, or Section 5.102 or 5.013, is sufficient. A rule adopted

in violation of this subsection is void.

Amended by Acts 1985, 69th Leg., ch. 795, Sec. 1.001, eff. Sept.

1, 1985; Acts 1993, 73rd Leg., ch. 802, Sec. 1, eff. June 18,

1993; Acts 1995, 74th Leg., ch. 76, Sec. 5.95(49), eff. Sept. 1,

1995; Acts 2001, 77th Leg., ch. 965, Sec. 1.09, eff. Sept. 1,

2001.

Sec. 5.1035. RULES REGARDING DRINKING-WATER STANDARDS. Before

adopting rules regarding statewide drinking-water standards, the

commission shall hold public meetings, if requested, at its

regional offices to allow municipalities, water supply

corporations, and other interested persons to submit data or

comments concerning the proposed drinking-water standards.

Added by Acts 1997, 75th Leg., ch. 1010, Sec. 4.41, eff. Sept. 1,

1997.

Sec. 5.104. MEMORANDA OF UNDERSTANDING. (a) The commission and

board by rule shall develop memoranda of understanding as

necessary to clarify and provide for their respective duties,

responsibilities, or functions on any matter under the

jurisdiction of the commission or board that is not expressly

assigned to either the commission or board.

(b) The commission may enter into a memorandum of understanding

with any other state agency and shall adopt by rule any

memorandum of understanding between the commission and any other

state agency.

Amended by Acts 1985, 69th Leg., ch. 795, Sec. 1.001, eff. Sept.

1, 1985.

Sec. 5.105. GENERAL POLICY. Except as otherwise specifically

provided by this code, the commission, by rule, shall establish

and approve all general policy of the commission.

Amended by Acts 1985, 69th Leg., ch. 795, Sec. 1.001, eff. Sept.

1, 1985.

Sec. 5.106. BUDGET APPROVAL. The commission shall examine and

approve all budget recommendations for the commission that are to

be transmitted to the legislature.

Amended by Acts 1985, 69th Leg., ch. 795, Sec. 1.001, eff. Sept.

1, 1985.

Sec. 5.107. ADVISORY COMMITTEES, WORK GROUPS, AND TASK FORCES.

(a) The commission or the executive director may create and

consult with advisory committees, work groups, or task forces,

including committees, work groups, or task forces for the

environment, for public information, or for any other matter that

the commission or the executive director may consider

appropriate.

(b) The commission shall identify affected groups of interested

persons for advisory committees, work groups, and task forces and

shall make reasonable attempts to have balanced representation on

all advisory committees, work groups, and task forces. This

subsection does not require the commission to ensure that all

representatives attend a scheduled meeting. A rule or other

action may not be challenged because of the composition of an

advisory committee, work group, or task force.

(c) The commission shall monitor the composition and activities

of advisory committees, work groups, and task forces appointed by

the commission or formed at the staff level and shall maintain

that information in a form and location that is easily accessible

to the public, including making the information available on the

Internet.

Amended by Acts 1985, 69th Leg., ch. 795, Sec. 1.001, eff. Sept.

1, 1985; Acts 2001, 77th Leg., ch. 965, Sec. 1.10, eff. Sept. 1,

2001.

Sec. 5.108. EXECUTIVE DIRECTOR. (a) The commission shall

appoint an executive director to serve at the will of the

commission.

(b) The board shall exercise the powers of appointment which the

Texas Water Rights Commission had the authority to exercise on

August 30, 1977, except for those powers of appointment expressly

provided to the Texas Water Rights Commission in Chapters 50

through 63 inclusive, of the Water Code, which are delegated to

the commission.

Amended by Acts 1985, 69th Leg., ch. 795, Sec. 1.001, eff. Sept.

1, 1985.

Sec. 5.109. CHIEF CLERK. (a) The commission shall appoint a

chief clerk who shall serve at the will of the commission.

(b) The chief clerk shall assist the commission in carrying out

its duties under this code and other law.

(c) The chief clerk shall issue notice of public hearings held

under the authority of the commission.

Amended by Acts 1985, 69th Leg., ch. 795, Sec. 1.001, eff. Sept.

1, 1985; Acts 1991, 72nd Leg., 1st C.S., ch. 3, Sec. 1.009, eff.

Aug. 12, 1991.

Sec. 5.110. GENERAL COUNSEL. (a) The commission shall appoint

a general counsel who shall serve at the will of the commission.

(b) The general counsel is the chief legal officer for the

commission.

(c) The general counsel must be an attorney licensed to practice

law in this state.

(d) The general counsel shall perform the duties and may

exercise the powers specifically authorized by this code or

delegated to the general counsel by the commission.

Amended by Acts 1985, 69th Leg., ch. 795, Sec. 1.001, eff. Sept.

1, 1985.

Sec. 5.111. STANDARDS OF CONDUCT. The commission shall provide

to its members, appointees, and employees as often as is

necessary information regarding their qualifications under this

code and their responsibilities under applicable laws relating to

standards of conduct for state officers or employees.

Amended by Acts 1985, 69th Leg., ch. 795, Sec. 1.001, eff. Sept.

1, 1985.

Sec. 5.112. PUBLIC TESTIMONY POLICY. The commission shall

develop and implement policies that will provide the public with

a reasonable opportunity to appear before the commission and to

speak on any issue under the jurisdiction of the commission.

Amended by Acts 1985, 69th Leg., ch. 795, Sec. 1.001, eff. Sept.

1, 1985; Acts 1987, 70th Leg., ch. 977, Sec. 1, eff. June 19,

1987.

Sec. 5.113. COMMISSION AND STAFF RESPONSIBILITY POLICY. The

commission shall develop and implement policies that clearly

separate the respective responsibilities of the commission and

the staff.

Amended by Acts 1985, 69th Leg., ch. 795, Sec. 1.001, eff. Sept.

1, 1985.

Sec. 5.114. APPLICATIONS AND OTHER DOCUMENTS. Applications and

other documents to be filed with the commission for final action

under this code shall be filed with the executive director and

handled in the manner provided by this code.

Amended by Acts 1985, 69th Leg., ch. 795, Sec. 1.001, eff. Sept.

1, 1985.

Sec. 5.115. PERSONS AFFECTED IN COMMISSION HEARINGS; NOTICE OF

APPLICATION. (a) For the purpose of an administrative hearing

held by or for the commission involving a contested case,

"affected person," or "person affected," or "person who may be

affected" means a person who has a personal justiciable interest

related to a legal right, duty, privilege, power, or economic

interest affected by the administrative hearing. An interest

common to members of the general public does not qualify as a

personal justiciable interest. The commission shall adopt rules

specifying factors which must be considered in determining

whether a person is an affected person in any contested case

arising under the air, waste, or water programs within the

commission's jurisdiction and whether an affected association is

entitled to standing in contested case hearings.

(b) At the time an application for a permit or license under

this code is filed with the executive director and is

administratively complete, the commission shall give notice of

the application to any person who may be affected by the granting

of the permit or license.

(c) At the time an application for any formal action by the

commission that will affect lands dedicated to the permanent

school fund is filed with the executive director or the

commission and is administratively complete, the commission shall

give notice of the application to the School Land Board. Notice

shall be delivered by certified mail, return receipt requested,

addressed to the deputy commissioner of the asset management

division of the General Land Office. Delivery is not complete

until the return receipt is signed by the deputy commissioner of

the asset management division of the General Land Office and

returned to the commission.

(d) The commission shall adopt rules for the notice required by

this section.

(e) The notice must state:

(1) the identifying number given the application by the

commission;

(2) the type of permit or license sought under the application;

(3) the name and address of the applicant;

(4) the date on which the application was submitted; and

(5) a brief summary of the information included in the permit

application.

(f) The notice to the School Land Board under this section shall

additionally:

(1) state the location of the permanent school fund land to be

affected; and

(2) describe any foreseeable impact or effect of the

commission's action on permanent school fund land.

(g) A formal action or ruling by the commission on an

application affecting permanent school fund land that is made

without the notice required by this section is voidable by the

School Land Board as to any permanent school fund lands affected

by the action or ruling.

Amended by Acts 1985, 69th Leg., ch. 795, Sec. 1.001, eff. Sept.

1, 1985; Acts 1991, 72nd Leg., 1st C.S., ch. 3, Sec. 1.010, eff.

Aug. 12, 1991; Acts 1993, 73rd Leg., ch. 991, Sec. 6, eff. Sept.

1, 1993; Acts 1995, 74th Leg., ch. 882, Sec. 1, eff. Sept. 1,

1995; Acts 1999, 76th Leg., ch. 1350, Sec. 1, eff. Sept. 1, 1999.

Sec. 5.116. HEARINGS; RECESS. The commission may recess any

hearing or examination from time to time and from place to place.

Amended by Acts 1985, 69th Leg., ch. 795, Sec. 1.001, eff. Sept.

1, 1985.

Sec. 5.117. MANDATORY ENFORCEMENT HEARING. (a) The executive

director shall monitor compliance with all permits and licenses

issued by the commission under this code, and if the evidence

available to the executive director through this monitoring

process indicates that a permittee or licensee is in substantial

noncompliance with his permit or license for a period of four

months, or for a shorter period of time if the executive director

considers an emergency to exist, the executive director shall

report this fact to the commission together with the information

relating to the noncompliance.

(b) On receiving a report from the executive director under

Subsection (a) of this section, the commission shall call and

hold a hearing to determine whether the permittee or licensee who

is the subject of the executive director's report has been in

substantial noncompliance with his permit or license.

(c) At the conclusion of the hearing, the commission shall issue

one of the following orders stating that:

(1) no violation of the permit or license has occurred;

(2) a violation of the permit or license has occurred but has

been corrected and no further action is necessary to protect the

public interest;

(3) the executive director is authorized to enter into a

compliance agreement with the permittee or licensee;

(4) a violation of the permit or license has occurred and an

administrative penalty is assessed as provided by this code; or

(5) a violation of the permit or license has occurred, and the

executive director is directed to have enforcement proceedings

instituted against the permittee or licensee.

(d) A compliance agreement under Subsection (c)(3) of this

section is not effective unless it is approved by the commission.

If the commission determines at a hearing that a permittee or

licensee has not complied with the terms of the compliance

agreement, the commission may direct the executive director to

institute enforcement proceedings.

(e) The executive director, on receiving an order from the

commission directing institution of enforcement proceedings,

shall take all necessary steps to have enforcement proceedings

instituted.

(f) The commission may compel the attendance of the governing

body or any other officer of any permittee or licensee at any

hearing held under this section.

Amended by Acts 1985, 69th Leg., ch. 795, Sec. 1.001, eff. Sept.

1, 1985; Acts 1991, 72nd Leg., 1st C.S., ch. 3, Sec. 1.011, eff.

Aug. 12, 1991.

Sec. 5.1175. PAYMENT OF PENALTY BY INSTALLMENT. (a) The

commission by rule may allow a person who owes a monetary civil

or administrative penalty imposed for a violation of law within

the commission's jurisdiction or for a violation of a license,

permit, or order issued or rule adopted by the commission to pay

the penalty in periodic installments. The rule must provide a

procedure for a person to apply for permission to pay the penalty

over time.

(b) The rule may vary the period over which the penalty may be

paid or the amount of the periodic installments according to the

amount of the penalty owed and the size of the business that owes

the penalty. The period over which the penalty may be paid may

not exceed 36 months.

Added by Acts 1995, 74th Leg., ch. 112, Sec. 1, eff. May 17,

1995.

Amended by:

Acts 2009, 81st Leg., R.S., Ch.

1386, Sec. 4, eff. September 1, 2009.

Sec. 5.118. POWER TO ADMINISTER OATHS. Each member of the

commission, the chief clerk, or a hearings examiner may

administer oaths in any hearing or examination on any matter

submitted to the commission for action.

Amended by Acts 1985, 69th Leg., ch. 795, Sec. 1.001, eff. Sept.

1, 1985.

Sec. 5.119. COMMISSION TO BE KNOWLEDGEABLE. The commission

shall be knowledgeable of the watercourses and natural resources

of the state and of the needs of the state concerning the use,

storage and conservation of water and the use and conservation of

other natural resources and of the need to maintain the quality

of the environment in the state.

Amended by Acts 1985, 69th Leg., ch. 795, Sec. 1.001, eff. Sept.

1, 1985; Acts 1991, 72nd Leg., 1st C.S., ch. 3, Sec. 1.012, eff.

Aug. 12, 1991.

Sec. 5.1191. RESEARCH MODEL. (a) In this section, "research

model" means a mechanism for developing a plan to address the

commission's practical regulatory needs. The commission's plan

shall be prioritized by need and shall identify short-term,

medium-term, and long-term research goals. The plan may address

preferred methods of conducting the identified research.

(b) The commission shall develop a research model. The

commission may appoint a research advisory board to assist the

commission in providing appropriate incentives to encourage

various interest groups to participate in developing the research

model and to make recommendations regarding research topics

specific to this state. The research advisory board must include

representatives of the academic community, representatives of the

regulated community, and public representatives of the state at

large.

Added by Acts 2001, 77th Leg., ch. 965, Sec. 1.11, eff. Sept. 1,

2001.

Sec. 5.1192. COORDINATION OF RESEARCH. (a) The commission

shall facilitate and coordinate environmental research in the

state according to the research model developed under Section

5.1191.

(b) The commission shall explore private and federal funding

opportunities for research needs identified in the research

model. The commission may conduct, direct, and facilitate

research to implement the commission's research model by

administering grants or by contracting for research if money is

appropriated to the commission for those purposes.

(c) To the degree practicable, the commission, through the

research model, shall coordinate with or make use of any research

activities conducted under existing state initiatives, including

research by state universities, the Texas Higher Education

Coordinating Board, the United States Department of Agriculture,

the Texas Department of Agriculture, and other state and federal

agencies as appropriate.

(d) This section does not authorize the commission to initiate

or direct the research efforts of another entity except under the

terms of a grant or contract.

Added by Acts 2001, 77th Leg., ch. 965, Sec. 1.11, eff. Sept. 1,

2001.

Sec. 5.1193. REPORT. The commission shall include in the

reports required by Section 5.178 a description of cooperative

research efforts, an accounting of money spent on research, and a

review of the purpose, implementation, and results of particular

research projects conducted.

Added by Acts 2001, 77th Leg., ch. 965, Sec. 1.11, eff. Sept. 1,

2001.

Sec. 5.120. CONSERVATION AND QUALITY OF ENVIRONMENT. 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.

Amended by Acts 1985, 69th Leg., ch. 795, Sec. 1.001, eff. Sept.

1, 1985; Acts 1991, 72nd Leg., 1st C.S., ch. 3, Sec. 1.013, eff.

Aug. 12, 1991.

Sec. 5.121. PUBLIC INFORMATION. (a) The commission shall

comply with Section 2001.004, Government Code, by indexing and

making available for public inspection all rules and all other

written statements of policy or interpretations formulated,

adopted, or used by the commission in the discharge of its

functions.

(b) The commission shall comply with Section 2001.004,

Government Code, by indexing and making available for public

inspection all of the commission's final orders, decisions, and

opinions.

Added by Acts 1987, 70th Leg., ch. 638, Sec. 1, eff. Sept. 1,

1987. Amended by Acts 1995, 74th Leg., ch. 76, Sec. 5.95(71),

(72), eff. Sept. 1, 1995.

Sec. 5.122. DELEGATION OF UNCONTESTED MATTERS TO EXECUTIVE

DIRECTOR. (a) The commission by rule or order may delegate to

the executive director the commission's authority to act on an

application or other request to issue, renew, reopen, transfer,

amend, extend, withdraw, revoke, terminate, or modify a permit,

license, certificate, registration, or other authorization or

approval if:

(1) required notice of the application or request for the

authorization or approval has been given;

(2) the holder of or applicant for the authorization or approval

agrees in writing to the action to be taken by the executive

director; and

(3) the application or request:

(A) is uncontested and does not require an evidentiary hearing;

or

(B) has become uncontested because all parties have agreed in

writing to the action to be taken by the executive director.

(b) A person affected by an action the executive director takes

on a matter delegated under this section may appeal the executive

director's action to the commission unless the action is a

decision:

(1) regarding a federal operating permit under Subchapter C,

Chapter 382, Health and Safety Code; or

(2) specified as final and appealable by the commission rule

that delegates the decision to the executive director.

(c) A person affected by a decision of the executive director on

a matter delegated under this section that regards a federal

operating permit under Subchapter C, Chapter 382, Health and

Safety Code, may:

(1) petition the administrator of the United States

Environmental Protection Agency in accordance with rules adopted

under Section 382.0563, Health and Safety Code; or

(2) file a petition for judicial review under Section 382.032,

Health and Safety Code.

(d) The commission's authority under this section is cumulative

of the commission's authority to delegate its powers, duties, or

rights under any other law.

Added by Acts 1995, 74th Leg., ch. 860, Sec. 1, eff. Aug. 28,

1995. Amended by Acts 1997, 75th Leg., ch. 302, Sec. 1, eff.

Sept. 1, 1997.

Sec. 5.124. AUTHORITY TO AWARD GRANTS. (a) With the consent of

the commission, the executive director may award grants for any

purpose regarding resource conservation or environmental

protection in accordance with this section.

(b) The commission by rule shall establish procedures for

awarding a grant, for making any determination related to

awarding a grant, and for making grant payments.

(c) Each activity funded by a grant must directly relate to a

purpose specified in the grant. A grant may be awarded only for a

purpose consistent with the commission's jurisdiction and

purposes under law, including:

(1) the development or implementation of a comprehensive

conservation and management plan under Section 320, Federal Water

Pollution Control Act (33 U.S.C. Section 1330), for a designated

national estuary in this state;

(2) a demonstration project that involves new techniques for

pollution prevention, energy or resource conservation, or waste

management;

(3) an environmental purpose identified in a federal grant that

is intended as a pass-through grant;

(4) development or improvement of monitoring or modeling

techniques for water or air quality;

(5) support of a local air pollution program; or

(6) a study or program related to efforts to prevent an area

that is near nonattainment with federal air quality standards

from reaching nonattainment status.

(d) A grant may be awarded to any person that meets the

eligibility requirements of the grant. The executive director

shall establish eligibility requirements for each grant

appropriate to the purposes of and activities under the grant and

the method of selecting the recipient.

(e) Selection of grant recipients must be by solicitation of a

proposal or application except as provided by Subsections (f) and

(g). The executive director may specify any selection criterion

the executive director considers relevant to the grant. Selection

criteria must address:

(1) evaluation and scoring of:

(A) fiscal controls;

(B) project effectiveness;

(C) project cost; and

(D) previous experience with grants and contracts; and

(2) the possibility and method of making multiple awards.

(f) A grant may be made by direct award only if:

(1) the executive director determines that:

(A) selection of recipients by the solicitation of proposals or

applications is not feasible; and

(B) awarding the grant directly is in the best interest of the

state;

(2) eligibility for the grant is limited to:

(A) an agency or political subdivision of this state or of

another state;

(B) a state institution of higher learning of this state or of

another state, including any part or service of the institution;

or

(C) an agency of the United States; or

(3) the grant is awarded to a person established or authorized

to develop or implement a comprehensive conservation and

management plan under Section 320, Federal Water Pollution

Control Act (33 U.S.C. Section 1330), for a national estuary in

this state.

(g) If a solicitation of a proposal is made for the purpose of

identifying a partner for a joint application for a federal grant

that is subsequently awarded to the commission, the executive

director is not required to make an additional solicitation for

entering into a pass-through grant with an identified partner.

(h) The executive director shall publish information regarding a

solicitation related to a grant to be awarded under this section

on the commission's electronic business daily in the manner

provided by Section 2155.074, Government Code, as added by

Section 1, Chapter 508, Acts of the 75th Legislature, Regular

Session, 1997.

(i) For a grant awarded under this section, the commission may

use:

(1) money appropriated for grant-making purposes;

(2) federal money granted for making pass-through grants; and

(3) state or federal grant money appropriated for a purpose that

the executive director determines is consistent with a purpose of

the grant from the commission.

Added by Acts 1999, 76th Leg., ch. 404, Sec. 28, eff. Sept. 1,

1999.

Sec. 5.125. COST-SHARING FOR ENVIRONMENTAL COMPLIANCE

ASSESSMENTS BY CERTAIN BUSINESSES. (a) In this section,

"environmental compliance assessment" means an environmental

compliance audit, pollution prevention assessment, or

environmental management system audit performed by a small

business. The term does not include an audit conducted under the

Texas Environmental, Health, and Safety Audit Privilege Act

(Article 4447cc, Vernon's Texas Civil Statutes).

(b) The commission may implement cost-sharing to assist with

payment of costs for an environmental compliance assessment

performed by a business subject to regulation by the commission

that employs at least 100 but not more than 250 individuals.

Added by Acts 1999, 76th Leg., ch. 104, Sec. 2, eff. May 17,

1999.

Sec. 5.126. REPORT ON ENFORCEMENT ACTIONS. (a) Not later than

December 1 of each year, the commission shall:

(1) prepare an electronic report on its enforcement actions for

the preceding fiscal year, including a comparison with its

enforcement actions for each of the preceding five fiscal years;

and

(2) provide the report to the governor, lieutenant governor, and

speaker of the house of representatives.

(b) The report shall separately describe the enforcement actions

for each type of regulatory program, including programs under

Chapters 26 and 27 of this code and Chapters 361, 382, and 401,

Health and Safety Code.

(c) The description of enforcement actions for each type of

regulatory program shall include:

(1) the number of inspections;

(2) the number of notices of violations;

(3) the number of enforcement actions;

(4) the type of enforcement actions;

(5) the amount of penalties assessed, deferred, or collected;

and

(6) any other information the commission determines relevant.

(d) As soon as possible after the end of each fiscal year, the

attorney general shall provide the commission information on

enforcement actions referred by the commission to the attorney

general that were resolved during the preceding fiscal year or

are pending at the end of that fiscal year.

Added by Acts 1997, 75th Leg., ch. 304, Sec. 1, eff. May 26,

1997; Acts 1997, 75th Leg., ch. 1082, Sec. 1, eff. Sept. 1, 1997.

Renumbered from Sec. 5.123 by Acts 2001, 77th Leg., ch. 1420,

Sec. 21.001(112), eff. Sept. 1, 2001.

Sec. 5.127. ENVIRONMENTAL MANAGEMENT SYSTEMS. (a) In this

section, "environmental management system" means a documented

management system to address applicable environmental regulatory

requirements that includes organizational structure, planning

activities, responsibilities, practices, procedures, processes,

and resources for developing, implementing, achieving, reviewing,

and maintaining an environmental policy directed toward

continuous improvement.

(b) The commission by rule shall adopt a comprehensive program

that provides regulatory incentives to encourage the use of

environmental management systems by regulated entities, state

agencies, local governments, and other entities as determined by

the commission. The incentives may include:

(1) on-site technical assistance;

(2) accelerated access to information about programs; and

(3) to the extent consistent with federal requirements:

(A) inclusion of information regarding an entity's use of an

environmental management system in the entity's compliance

history and compliance summaries; and

(B) consideration of the entity's implementation of an

environmental management system in scheduling and conducting

compliance inspections.

(c) The rules must provide that an environmental management

system, at a minimum, must require the entity implementing the

system to:

(1) adopt a written environmental policy;

(2) identify the environmental aspects and impacts of the

entity's activities;

(3) set priorities, goals, and targets for continuous

improvement in environmental performance and for ensuring

compliance with environmental laws, regulations, and permit terms

applicable to the facility;

(4) assign clear responsibilities for implementation, training,

monitoring, and corrective action and for ensuring compliance

with environmental laws, regulations, and permit terms applicable

to the facility;

(5) document implementation of procedures and results; and

(6) evaluate and refine implementation over time to improve

attainment of environmental goals and targets and the system

itself.

(d) The commission shall:

(1) integrate the use of environmental management systems into

its regulatory programs, including permitting, compliance

assistance, and enforcement;

(2) develop model environmental management systems for small

businesses and local governments; and

(3) establish environmental performance indicators to measure

the program's performance.

Added by Acts 2001, 77th Leg., ch. 1161, Sec. 1, eff. Sept. 1,

2001.

Sec. 5.128. ELECTRONIC REPORTING TO COMMISSION; ELECTRONIC

TRANSMISSION OF INFORMATION BY COMMISSION; REDUCTION OF DUPLICATE

REPORTING. (a) The commission shall encourage the use of

electronic reporting through the Internet, to the extent

practicable, for reports required by the commission.

Notwithstanding any other law, the commission may:

(1) adjust fees as necessary to encourage electronic reporting

and the use of the commission's electronic document receiving

system. An electronic report must be submitted in a format

prescribed by the commission. The commission may consult with

the Department of Information Resources on developing a simple

format for use in implementing this subsection; and

(2) utilize electronic means of transmission of information,

including notices, orders, and decisions issued or sent by the

commission.

(b) The commission shall strive to reduce duplication in

reporting requirements throughout the agency.

Added by Acts 2001, 77th Leg., ch. 965, Sec. 1.12, eff. Sept. 1,

2001.

Amended by:

Acts 2007, 80th Leg., R.S., Ch.

664, Sec. 1, eff. September 1, 2007.

Acts 2009, 81st Leg., R.S., Ch.

962, Sec. 1, eff. September 1, 2009.

Sec. 5.129. SUMMARY FOR PUBLIC NOTICES. (a) The commission by

rule shall provide for each public notice issued or published by

the commission or by a person under the jurisdiction of the

commission as required by law or by commission rule to include at

the beginning of the notice a succinct statement of the subject

of the notice. The rules must provide that a summary statement

must be designed to inform the reader of the subject matter of

the notice without having to read the entire text of the notice.

(b) The summary statement may not be grounds for challenging the

validity of the proposed action for which the notice was

published.

Added by Acts 2001, 77th Leg., ch. 965, Sec. 1.12, eff. Sept. 1,

2001.

Sec. 5.130. CONSIDERATION OF CUMULATIVE RISKS. The commission

shall:

(1) develop and implement policies, by specific environmental

media, to protect the public from cumulative risks in areas of

concentrated operations; and

(2) give priority to monitoring and enforcement in areas in

which regulated facilities are concentrated.

Added by Acts 2001, 77th Leg., ch. 965, Sec. 1.12, eff. Sept. 1,

2001.

Sec. 5.132. CREATION OF PERFORMANCE MEASURES FOR INNOVATIVE

REGULATORY PROGRAMS. The commission shall work with the

Legislative Budget Board to create performance measures that

assess the improvements in environmental quality achieved by

innovative regulatory programs implemented by the commission.

Added by Acts 2001, 77th Leg., ch. 1483, Sec. 1, eff. Sept. 1,

2001. Renumbered from Water Code Sec. 5.127 by Acts 2003, 78th

Leg., ch. 1275, Sec. 2(138), eff. Sept. 1, 2003.

Sec. 5.133. ACTIONS IN MEXICO. The commission may take and

finance any action in Mexico, in cooperation with governmental

authorities of Mexico, that in the opinion of the commission:

(1) is necessary or convenient to accomplish a duty of the

commission imposed by law; and

(2) will yield benefits to the environment in this state.

Added by Acts 2001, 77th Leg., ch. 728, Sec. 1, eff. Sept. 1,

2001. Renumbered from Water Code Sec. 5.127 by Acts 2003, 78th

Leg., ch. 1275, Sec. 2(139), eff. Sept. 1, 2003.

Sec. 5.134. USE OF ENVIRONMENTAL TESTING LABORATORY DATA AND

ANALYSIS. (a) The commission may accept environmental testing

laboratory data and analysis for use in commission decisions

regarding any matter under the commission's jurisdiction relating

to permits or other authorizations, compliance matters,

enforcement actions, or corrective actions only if the data and

analysis is prepared by an environmental testing laboratory

accredited by the commission under Subchapter R or an

environmental testing laboratory described in Subsection (b) or

(e).

(b) The commission may accept for use in commission decisions

data and analysis prepared by:

(1) an on-site or in-house environmental testing laboratory if

the laboratory:

(A) is periodically inspected by the commission; or

(B) is located in another state and is accredited or

periodically inspected by that state;

(2) an environmental testing laboratory that is accredited under

federal law; or

(3) if the data and analysis are necessary for emergency

response activities and the required data and analysis are not

otherwise available, an environmental testing laboratory that is

not accredited by the commission under Subchapter R or under

federal law.

(c) The commission by rule may require that data and analysis

used in other commission decisions be obtained from an

environmental testing laboratory accredited by the commission

under Subchapter R.

(d) The commission shall periodically inspect on-site or

in-house environmental testing laboratories described in

Subsection (b).

(e) The commission may accept for use in commission decisions

data from an on-site or in-house laboratory if the laboratory is

performing the work:

(1) for another company with a unit located on the same site; or

(2) without compensation for a governmental agency or a

charitable organization if the laboratory is periodically

inspected by the commission.

Added by Acts 2001, 77th Leg., ch. 965, Sec. 1.12, eff. Sept. 1,

2001. Renumbered from Water Code Sec. 5.127 by Acts 2003, 78th

Leg., ch. 1275, Sec. 2(140), eff. Sept. 1, 2003. Amended by Acts

2003, 78th Leg., ch. 912, Sec. 1, eff. Sept. 1, 2005.

Sec. 5.135. SMALL BUSINESS COMPLIANCE ASSISTANCE PROGRAM. (a)

The commission shall establish a small business compliance

assistance program.

(b) The program shall include:

(1) mechanisms to develop, collect, and coordinate information

about compliance methods and technologies for small businesses

and to encourage cooperation between those small businesses and

other persons to achieve compliance with applicable air quality,

water quality, and solid waste laws;

(2) mechanisms to assist small businesses with pollution

prevention and the prevention and detection of accidental

releases, including information about alternative technologies,

process changes, products, and methods of operation to reduce air

pollution, water pollution, and improper disposal of solid waste;

(3) an ombudsman to help small businesses meet the requirements

of the federal Clean Air Act Amendments of 1990 (Pub.L. No.

101-549), as amended, the Federal Water Pollution Control Act (33

U.S.C. Section 1251 et seq.), as amended, and the federal Solid

Waste Disposal Act (42 U.S.C. Section 6901 et seq.), as amended;

(4) a compliance assistance program to help small businesses

identify the requirements for and obtain required permits in a

timely and efficient manner;

(5) notification procedures to assure that small businesses

receive notice of their rights and obligations under the federal

Clean Air Act Amendments of 1990 (Pub.L. No. 101-549), as

amended, the Federal Water Pollution Control Act (33 U.S.C.

Section 1251 et seq.), as amended, and the federal Solid Waste

Disposal Act (42 U.S.C. Section 6901 et seq.), as amended, in

time to identify applicable requirements and evaluate and

implement appropriate compliance methods;

(6) auditing services or referrals for small business stationary

source operations to determine compliance with the federal Clean

Air Act Amendments of 1990 (Pub.L. No. 101-549), as amended; and

(7) procedures for considering a request by a small business to

modify work practices, technological compliance methods, or an

implementation schedule requirement that precedes a compliance

date, taking into account the technological and financial

capability of that source.

(c) The program shall include a small business compliance

assistance advisory panel that consists of the following seven

members:

(1) two members who are not owners or representatives of owners

of small business stationary sources, selected by the governor to

represent the public;

(2) two members who are owners or who represent owners of small

business stationary sources, selected by the speaker of the house

of representatives;

(3) two members who are owners or who represent owners of small

business stationary sources, selected by the lieutenant governor;

and

(4) one member selected by the chairman of the commission to

represent the commission.

(d) The small business compliance assistance advisory panel

shall:

(1) give advisory opinions on the effectiveness of the program,

the difficulties of implementing the program, and the incidence

and severity of enforcement;

(2) report periodically to the administrator regarding the

program's compliance with requirements of the Paperwork Reduction

Act of 1980 (Pub.L. No. 96-511), as amended, the Regulatory

Flexibility Act (5 U.S.C. Section 601 et seq.), as amended, and

the Equal Access to Justice Act (Pub.L. No. 96-481), as amended;

(3) review information the program provides to small businesses

to assure the information is understandable to nonexperts; and

(4) distribute opinions, reports, and information developed by

the panel.

(e) The commission shall enter into a memorandum of

understanding with the Texas Department of Economic Development

to coordinate assistance to any small business in applying for

permits from the commission.

(f) The commission may adopt rules reasonably necessary to

implement this section. Rules relating to air pollution must

comply with Section 507 of the federal Clean Air Act (42 U.S.C.

Section 7661f), as added by Section 501 of the federal Clean Air

Act Amendments of 1990 (Pub.L. No. 101-549), as amended, and

regulations adopted under that Act.

(g) In this section:

(1) "Program" means the small business compliance assistance

program.

(2) "Small business" means:

(A) a small business stationary source; or

(B) a business that employs at least 100 but not more than 250

individuals.

(3) "Small business stationary source" has the meaning assigned

by Section 507(c) of the federal Clean Air Act (42 U.S.C. Section

7661f), as added by Section 501 of the federal Clean Air Act

Amendments of 1990 (Pub.L. No. 101-549), as amended.

Added by Acts 1991, 72nd Leg., 1st C.S., ch. 3, Sec. 2.05, eff.

Sept. 1, 1991. Amended by Acts 1995, 74th Leg., ch. 76, Sec.

11.156, eff. Sept. 1, 1995; Acts 1999, 76th Leg., ch. 104, Sec.

3, eff. May 17, 1999. Renumbered from Health & Safety Code,

Sec. 382.0365 and amended by Acts 2003, 78th Leg., ch. 81, Sec.

1, eff. Sept. 1, 2003.

SUBCHAPTER E. ADMINISTRATIVE PROVISIONS FOR COMMISSION

Sec. 5.171. AUDIT. The financial transactions of the commission

are subject to audit by the state auditor in accordance with

Chapter 321, Government Code.

Amended by Acts 1985, 69th Leg., ch. 795, Sec. 1.001, eff. Sept.

1, 1985; Acts 1989, 71st Leg., ch. 584, Sec. 73, eff. Sept. 1,

1989.

Sec. 5.172.