83R20518 JRR-D
 
  By: King of Zavala H.B. No. 2996
 
  Substitute the following for H.B. No. 2996:
 
  By:  Kacal C.S.H.B. No. 2996
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to regulation by the Texas Commission on Environmental
  Quality of the land application of Class B sludge.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  The heading to Section 361.121, Health and
  Safety Code, is amended to read as follows:
         Sec. 361.121.  LAND APPLICATION OF CERTAIN SLUDGE;
  REGISTRATION [PERMIT] REQUIRED.
         SECTION 2.  Section 361.121(a)(1), Health and Safety Code,
  is amended to read as follows:
               (1)  "Class B sludge" is domestic sewage sludge that:
                     (A)  meets one of the pathogen reduction
  requirements of 30 T.A.C. Section 312.82(b); or
                     (B)  if combined and processed with grease trap
  waste, grit trap waste, or septage within the boundaries of a
  wastewater treatment facility, meets one of the pathogen reduction
  requirements of 30 T.A.C. Section 312.82(b) and one of the vector
  attraction reduction requirements of 30 T.A.C. Section 312.83.
         SECTION 3.  Sections 361.121(b), (c), (d), (e), (f), (g),
  (h), (j), (k), (l), (n), and (o), Health and Safety Code, are
  amended to read as follows:
         (b)  A [Except as provided by Subsection (m), a] responsible
  person may not apply Class B sludge on a land application unit
  unless the responsible person has obtained a registration
  certificate [permit] for that land application unit issued by the
  commission under this section [on or after September 1, 2003].
         (c)  The notice and hearing provisions of Subchapter M,
  Chapter 5, Water Code, do not [as added by Chapter 1350, Acts of the
  76th Legislature, Regular Session, 1999,] apply to an application
  under this section for registration or for an [a permit, a permit]
  amendment[,] or [a permit] renewal of registration. [In addition,
  at the time published notice of intent to obtain a permit is
  required under Section 5.552, Water Code, an applicant for a
  permit, permit amendment, or permit renewal under this section must
  notify by registered or certified mail each owner of land located
  within one-quarter mile of the proposed land application unit who
  lives on that land of the intent to obtain the permit, amendment, or
  renewal. Notice to landowners must include the information
  required by Section 5.552(c), Water Code, and information regarding
  the anticipated date of the first application of the sludge to the
  proposed land application unit. An owner of land located within
  one-quarter mile of the proposed land application unit who lives on
  that land is an affected person for purposes of Section 5.115, Water
  Code.]
         (d)  In each registration certificate [permit], the
  commission shall prescribe the conditions under which it is issued,
  including:
               (1)  the duration of the registration [permit];
               (2)  the location of the land application unit;
               (3)  the maximum quantity of Class B sludge that may be
  applied or disposed of under the registration [permit];
               (4)  a requirement that the registration certificate
  [permit] holder submit quarterly to the commission a
  computer-generated report that includes, at a minimum, information
  regarding:
                     (A)  the source, quality, and quantity of sludge
  applied to the land application unit;
                     (B)  the location of the land application unit,
  either in terms of longitude and latitude or by physical address,
  including the county;
                     (C)  the date of delivery of Class B sludge;
                     (D)  the date of application of Class B sludge;
                     (E)  the cumulative amount of metals applied to
  the land application unit through the application of Class B
  sludge;
                     (F)  crops grown at the land application unit
  site; and
                     (G)  the suggested agronomic application rate for
  the Class B sludge;
               (5)  a requirement that the registration certificate
  [permit] holder submit annually to the commission evidence that the
  [permit] holder is complying with the nutrient management plan and
  the practice standards described by Subsection (h)(4);
               (6)  a requirement that the registration certificate
  [permit] holder post a sign that is visible from a road or sidewalk
  that is adjacent to the premises on which the land application unit
  is located stating that a beneficial application site is located on
  the premises;
               (7)  any other monitoring and reporting requirements
  prescribed by the commission for the registration certificate
  [permit] holder; and
               (8)  a requirement that the registration certificate
  [permit] holder must report to the commission any noncompliance by
  the [permit] holder with the registration [permit] conditions or
  applicable commission rules.
         (e)  A registration [permit] does not become a vested right
  in the registration certificate [permit] holder.
         (f)  A registration certificate [permit] may be issued under
  this section for a term set by the board not to exceed six years from
  the date of issuance.
         (g)  The commission shall charge a fee for the issuance of a
  registration certificate [permit] under this section in an amount
  not less than $1,000 and not more than $5,000. In determining the
  fee under this subsection, the commission shall consider the amount
  of sludge to be applied under the registration [permit].
         (h)  The commission by rule shall require an applicant for
  registration [a permit] under this section to submit with the
  application, at a minimum:
               (1)  information regarding:
                     (A)  the applicant;
                     (B)  the source, quality, and quantity of sludge
  to be applied; and
                     (C)  the hydrologic characteristics of the
  surface water and groundwater at and within one-quarter of a mile of
  the land application unit;
               (2)  proof evidencing that the applicant has a
  commercial liability insurance policy that:
                     (A)  is issued by an insurance company authorized
  to do business in this state that has a rating by the A. M. Best
  Company of A- or better;
                     (B)  designates the commission as an additional
  insured; and
                     (C)  is in an amount of not less than $3 million;
               (3)  proof evidencing that the applicant has an
  environmental impairment insurance policy or similar insurance
  policy that:
                     (A)  is issued by an insurance company authorized
  to do business in this state that has a rating by the A. M. Best
  Company of A- or better;
                     (B)  designates the commission as an additional
  insured; and
                     (C)  is in an amount of not less than $3 million;
  and
               (4)  proof that the applicant has minimized the risk of
  water quality impairment caused by nitrogen applied to the land
  application unit through the application of Class B sludge by
  having had a nutrient management plan prepared by a certified
  nutrient management specialist in accordance with the practice
  standards of the Natural Resources Conservation Service of the
  United States Department of Agriculture.
         (j)  A registration certificate [permit] holder must
  maintain an insurance policy required by Subsection (h) in effect
  for the duration of the registration [permit].
         (k)  The commission shall create and operate a tracking
  system for the land application of Class B sludge. The commission
  shall require a registration certificate [permit] holder to report
  deliveries and applications of Class B sludge using the tracking
  system and shall post the reported information on its website. The
  tracking system must allow a registration certificate [permit]
  holder to report electronically:
               (1)  the date of delivery of Class B sludge to a land
  application unit; and
               (2)  for each application of Class B sludge to a land
  application unit:
                     (A)  the date of the application; and
                     (B)  the source, quality, and quantity of the
  sludge applied.
         (l)  A registration certificate [permit] holder may not
  accept Class B sludge unless the sludge has been transported to the
  land application unit in a covered container with the covering
  firmly secured at the front and back.
         (n)  The insurance requirements under Subsections (h)(2) and
  (3) do not apply to an applicant that is:
               (1)  a political subdivision; or
               (2)  a small business, as defined by Section 2006.001,
  Government Code.
         (o)  The commission may not issue a registration certificate
  [permit] under this section for a land application unit that is
  located both:
               (1)  in a county that borders the Gulf of Mexico; and
               (2)  500 feet or less from any water well or surface
  water.
         SECTION 4.  Section 361.121(m), Health and Safety Code, is
  repealed.
         SECTION 5.  (a)  The changes in law made by this Act apply
  only to an application to apply Class B sludge to a land application
  unit that is:
               (1)  filed with the Texas Commission on Environmental
  Quality on or after the effective date of this Act; or
               (2)  filed with the Texas Commission on Environmental
  Quality before the effective date of this Act but not found to be
  administratively complete before that date.
         (b)  A person who holds a permit for the application of Class
  B sludge approved by the Texas Commission on Environmental Quality
  before the effective date of this Act may apply Class B sludge in
  accordance with the terms of the permit.
         SECTION 6.  This Act takes effect September 1, 2013.