HBA-SEP H.B. 2905 77(R) BILL ANALYSIS Office of House Bill AnalysisH.B. 2905 By: Burnam Environmental Regulation 3/29/2001 Introduced BACKGROUND AND PURPOSE In 1999, the Low-Level Radioactive Waste Disposal Authority was abolished and the functions of the authority were transferred to the Texas Natural Resource Conservation Commission (TNRCC). Because TNRCC both regulates and handles the disposal of low-level radioactive waste, the creation of a new agency to operate the disposal of low-level radioactive waste may prevent any conflict of interest that could arise. House Bill 2905 creates a new Low-Level Radioactive Waste Disposal Authority, as a state agency with statewide jurisdiction over low-level radioactive waste management and disposal. RULEMAKING AUTHORITY It is the opinion of the Office of House Bill Analysis that rulemaking authority is expressly delegated to the Low-Level Radioactive Waste Disposal Authority in SECTION 1 (Sections 404.052 and 404.102, Health and Safety Code) of this bill. ANALYSIS House Bill 2905 amends the Health and Safety Code to create the Low-Level Radioactive Waste Disposal Authority (authority), a state agency with statewide jurisdiction over low-level radioactive waste management and disposal. The authority is composed of a board of seven directors appointed by the governor who serve 2-year terms and are entitled to compensation as provided by the authority's budget. One director must be licensed to practice law in Texas, one a hydrologist, one a geologist, one a person knowledgeable in the effects of radiation on human health, one a firefighter, one knowledgeable of the effects of low-level radioactive waste on the environment, and one must be appointed from a list provided by environmental organizations (Sec. 404.002). The bill requires the authority to keep an office in Travis County and an office at each waste management site (site) (Sec. 404.003). The bill requires the board to create an advisory committee of residents of this state to perform oversight functions regarding each site (Sec. 404.004). The bill gives the authority jurisdiction over low-level radioactive waste management sites. (Sec. 404.051). The bill sets forth the general powers of the authority. The authority is required to adopt or issue rules, standards, and orders to fulfill its functions and duties and adopt civil and administrative penalties for a violation of these provisions. A violation that concerns the handling or management of low-level radioactive waste is a Class B misdemeanor and a violation that results in the release of low-level radioactive waste is a felony (Secs. 404.052 and 404.053). The bill authorizes the authority to make any studies necessary to determine places in this state that are acceptable or unacceptable for site location (Sec. 404.101). After considering studies and other relevant information, the authority by rule is required to adopt site selection criteria to ensure that a site will not endanger the public health or safety or environment, including acceptable and unacceptable socioeconomic effects on communities related to the location of a site. The authority is required, by rule, to establish a preference for selecting a location for a management site that is on or near a site licensed by the United States Nuclear Regulatory Commission (Sec. 404.102). The bill sets forth provisions regarding the site selection process and requires the authority to propose that at least one suitable site be licensed by Texas Natural Resource Conservation Commission (TNRCC) to manage low-level radioactive waste (Sec. 404.103). A management site is prohibited from being licensed by TNRCC unless the voters of the county in which the site is proposed to be located have approved of the location at a referendum election called and held for that purpose (Sec. 404.104). The bill requires the authority to hold a public hearing to consider whether a proposed location for a management site is safe and suitable according to the criteria adopted by the authority and other factors. The authority is authorized to contract with a mediator to facilitate agreement among parties interested in the location of a proposed management site before and during the hearing (Secs. 404.105 and 404.106). The bill authorizes the authority to acquire by gift, grant, or purchase, any land or other rights in property necessary to construct and operate a site (Sec. 404.108). The bill requires the authority to apply for, obtain, and maintain licenses and other authorizations from TNRCC, other state agencies, and federal agencies as necessary to construct and operate a site (Sec. 404.151). TNRCC is authorized to issue a license to the authority for a site and is required, by rule, to provide for license categories according to the management method for the low-level radioactive waste proposed to be managed at a site. TNRCC is prohibited from licensing the management of mixed waste at a site and from licensing belowground disposal or shallow land burial of low-level radioactive waste. The bill authorizes TNRCC to permit the authority to have the operations at the site conducted by a contract operator under the authority's supervision, direction, and administrative control (Sec. 404.152). The bill sets forth provisions regarding the jurisdiction of the Texas Department of Health (department) and requires the department to require each public utility that operates or constructs a nuclear power reactor in this state to provide storage facilities near the reactor site with a capacity sufficient to store low-level radioactive waste generated at that site during at least five years of normal operations (Sec. 404.153). The authority is responsible for safely decommissioning and closing each site (Sec. 404.201). The authority is required to divert fees received for management of low-level radioactive waste at a site to economic development projects conducted by local governments in the county in which the site is located. The authority is also required to divert fees received for management of low-level radioactive waste at a site to projects designed to mitigate negative effects on local communities caused by the site (Secs. 404.251 and 404.252). The authority's expenses are required to be paid from fees received for low-level radioactive waste management, proceeds of the sale of bonds, contributions from members of the Texas Low-Level Radioactive Waste Disposal Compact (compact), appropriations, gifts, grants, and interest earned on money from any of those sources (Sec. 404. 301). The bill requires the authority to determine the amount of fees in accordance with the terms of the compact (Sec. 404. 302). The authority is authorized to issue revenue bonds and refunding bonds to pay an expense of the authority. Bonds issued are exempt by taxation by this state, an agency or instrumentality of this state, or a political subdivision of this state (Sec.404.303). The bill repeals the Texas Low-Level Radioactive Waste Disposal Authority Act (SECTION 2). EFFECTIVE DATE September 1, 2001.