SB2037 - Relating to permit application review and contested case procedures for environmental permits involving a project to construct or modify a liquefied natural gas export terminal; authorizing a fee.

      S.B. No. 2037         AN ACT   relating to permit application review and contested case procedures   for environmental permits involving a project to construct or   modify a liquefied natural gas export terminal; authorizing a fee.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Section 5.555, Water Code, is amended by adding   Subsection (a-1) to read as follows:           (a-1)     With respect to a permit application filed with the   commission for a project to construct or modify a liquefied natural   gas export terminal or a renewal of that permit, the executive   director shall provide each response required by Subsection (a) not   later than the 120th day after the close of the public comment   period.          SECTION 2.  Subchapter M, Chapter 5, Water Code, is amended   by adding Section 5.559 to read as follows:           Sec.   5.559.     PROCEDURES FOR PERMIT APPLICATION REVIEW AND   CONTESTED CASES INVOLVING PROJECT TO CONSTRUCT OR MODIFY LIQUEFIED   NATURAL GAS EXPORT TERMINAL. (a) This section applies only to a   permit application filed with the commission for a project to   construct or modify a liquefied natural gas export terminal.           (b)     The commission by rule shall establish an expedited   permit application review process for permit applications   described by Subsection (a).   Rules adopted under this subsection   must require an applicant who elects the expedited permit   application review process to pay an additional fee in an amount the   commission determines is necessary to cover the costs of the   expedited review. The additional fee collected pursuant to this   subsection is considered part of the application fee and shall be   deposited and used in the manner provided for the application fee.           (c)     The commission may authorize the use of overtime,   full-time equivalent commission employees to support the expedited   processing of permit applications under Subsection (b), or contract   labor to process those expedited applications. The overtime,   full-time equivalent commission employees, or contract labor   authorized under this subsection is not included in the calculation   of the number of full-time equivalent commission employees allotted   under other law.           (d)     The commission may pay for compensatory time, overtime,   full-time equivalent commission employees supporting the expedited   processing of permit applications under Subsection (b), or contract   labor used to implement that subsection. The commission is   authorized to set the rate for overtime compensation for full-time   equivalent commission employees supporting the expedited   processing of permit applications under Subsection (b).           (e)     In a request for a contested case hearing involving a   permit application described by Subsection (a), the party   requesting the hearing must specify each reason the party is an   affected person as defined by Section 5.115(a).           (f)     In a contested case involving a permit application   described by Subsection (a), an administrative law judge shall   conduct a preliminary hearing not later than the 60th day after the   date the executive director refers the application to the State   Office of Administrative Hearings, provided that the judge may   grant one extension of the time, not to exceed 15 days, on request   of any party.           (g)     The commission shall adopt rules as necessary to   implement this section.          SECTION 3.  Section 382.056, Health and Safety Code, is   amended by amending Subsection (n) and adding Subsection (n-1) to   read as follows:          (n)  Except as provided by Section 382.0561, the commission   shall consider a request that the commission reconsider the   executive director's decision or hold a contested case [ public ]   hearing in accordance with the procedures provided by Sections   5.556 and 5.557, Water Code.           (n-1)     With respect to a permit application filed with the   commission under Section 382.0518 for a project to construct or   modify a liquefied natural gas export terminal or for renewal of a   permit issued to a liquefied natural gas export terminal under   Section 382.055:                 (1)     the requirements of Section 5.559, Water Code,   apply;                 (2)     the commission shall adopt rules as necessary to   implement Subdivision (1); and                 (3)     the executive director shall provide each response   required by Subsection (l) not later than the 120th day after the   close of the public comment period.          SECTION 4.  The change in law made by this Act applies only   to a permit application for a project to construct or modify a   liquefied natural gas export terminal or a renewal of that permit   that is filed with the Texas Commission on Environmental Quality on   or after the effective date of this Act.  A permit application for a   project to construct or modify a liquefied natural gas export   terminal or a renewal of that permit that is pending on the   effective date of this Act is governed by the law in effect at the   time the application was filed, and the former law is continued in   effect for that purpose.          SECTION 5.  This Act takes effect September 1, 2025.               ______________________________ ______________________________      President of the Senate Speaker of the House                 I hereby certify that S.B. No. 2037 passed the Senate   on April 24, 2025, by the following vote: Yeas 29, Nays 2; and   that the Senate concurred in House amendments on May 26, 2025, by   the following vote: Yeas 31, Nays 0.       ______________________________   Secretary of the Senate                I hereby certify that S.B. No. 2037 passed the House, with   amendments, on May 21, 2025, by the following vote: Yeas 109,   Nays 29, three present not voting.       ______________________________   Chief Clerk of the House            Approved:     ______________________________                Date       ______________________________              Governor