Relating to the operation of a cement kiln and the production of aggregates near a semiconductor wafer manufacturing facility, the official text

S.B. No. 1758

AN ACT

relating to the operation of a cement kiln and the production of

aggregates near a semiconductor wafer manufacturing facility.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Chapter 382, Health and Safety Code, is amended

by adding Subchapters M and M-1 to read as follows:

SUBCHAPTER M. CEMENT OR AGGREGATE PRODUCTION AND SEMICONDUCTOR

WAFER MANUFACTURING FACILITY

Sec. 382.601. DEFINITIONS. In this subchapter:

(1) "Aggregate production operation" has the meaning

assigned by Section 28A.001, Water Code.

(2) "Portland cement kiln" means a system, including

any solid, gaseous, or liquid fuel combustion equipment, used to

calcine and fuse raw materials, including limestone and clay, to

produce portland cement clinker.

(3) "Semiconductor wafer manufacturing facility"

means a manufacturing facility that conducts any of the following

processes with respect to semiconductor production:

(A) growing single-crystal ingots or boules;

(B) wafer slicing;

(C) etching and polishing;

(D) bonding;

(E) cleaning;

(F) epitaxial deposition; or

(G) metrology.

Sec. 382.602. LIMITATION OF LIABILITY. An owner or

operator of a facility operating under a new source review permit

issued under this chapter that authorizes the operation of a

portland cement kiln, or the production of aggregates at an

aggregate production operation, is not liable for damages to a

semiconductor wafer manufacturing facility resulting from seismic

or vibrational disturbances caused by the cement or aggregate

production facility owner's or operator's activities on the site of

the cement or aggregate production facility if the cement or

aggregate production facility began operating before the date the

semiconductor wafer manufacturing facility began operating.

SUBCHAPTER M-1. CEMENT OR AGGREGATE PRODUCTION AND SEMICONDUCTOR

WAFER MANUFACTURING FACILITY PILOT PROGRAM: GRAYSON COUNTY

Sec. 382.651. DEFINITIONS. In this subchapter:

(1) "Aggregate production operation" has the meaning

assigned by Section 28A.001, Water Code.

(2) "Bureau" means the Bureau of Economic Geology of

The University of Texas at Austin.

(3) "Portland cement kiln" means a system, including

any solid, gaseous, or liquid fuel combustion equipment, used to

calcine and fuse raw materials, including limestone and clay, to

produce portland cement clinker.

(4) "Semiconductor wafer manufacturing facility" has

the meaning assigned by Section 382.601.

Sec. 382.652. GRAYSON COUNTY PILOT PROGRAM. This

subchapter applies only to:

(1) a semiconductor wafer manufacturing facility that

begins commercial operation after January 1, 2025, and before

December 31, 2025; and

(2) a facility that:

(A) is proposed to be constructed under or is

operating under a new source review permit that authorizes the

construction or operation of a portland cement kiln; and

(B) is associated with a facility that produces

aggregates at an aggregate production operation.

Sec. 382.653. STUDY AND REPORT. (a) The bureau shall

conduct a study, in consultation with owners or operators of

facilities described by Section 382.652 in Grayson County, to:

(1) analyze seismological data related to aggregate

production operations;

(2) assess the vibrational impact of the production of

aggregates on bedrock;

(3) analyze vibrational parameters necessary to

ensure the successful operation of a semiconductor wafer

manufacturing facility within 10 miles of a facility described by

Section 382.652(2); and

(4) investigate whether a minimum distance between a

facility described by Section 382.652(2) and a semiconductor wafer

manufacturing facility is necessary to prevent seismic or

vibrational disruption to the operation of the semiconductor wafer

manufacturing facility, considering the depth of the excavation

activities conducted for the production of aggregates.

(b) In conducting the study under this section, the bureau

may:

(1) collaborate with:

(A) the commission and any other state agency,

political subdivision, or institution of higher education; and

(B) any other stakeholder or private entity as

necessary; and

(2) enter into a nondisclosure agreement with a

private entity.

(c) In addition to money appropriated by the legislature to

the bureau for the purpose of this section, the bureau may accept

gifts, grants, and other donations for the purposes of conducting

the study under this section.

(d) Not later than August 1, 2026, the bureau shall prepare

and submit to the governor, the lieutenant governor, the speaker of

the house of representatives, and each standing legislative

committee with primary jurisdiction over the environment or natural

resources a report on the results of the study conducted under this

section and any recommendations for legislative or other action.

Sec. 382.654. OPERATIONS WITHIN STUDY AREA. The commission

may not issue, renew, or amend a permit or authorize the use of a

standard permit or a permit by rule under this chapter for the

construction or operation of a facility described by Section

382.652(2) within 10 miles of a facility described by Section

382.652(1) in Grayson County.

Sec. 382.655. EXPIRATION. This subchapter expires

September 1, 2031.

SECTION 2. If any provision of this Act or its application

to any person or circumstance is held invalid, the invalidity does

not affect the other provisions or applications of this Act that can

be given effect without the invalid provision or application, and

to this end the provisions of this Act are severable.

SECTION 3. Section 382.602, Health and Safety Code, as

added by this Act, applies only to a cause of action that accrues on

or after the effective date of this Act. A cause of action that

accrues before the effective date of this Act is governed by the law

applicable to the cause of action immediately before the effective

date of this Act, and that law is continued in effect for that

purpose.

SECTION 4. This Act takes effect immediately if it receives

a vote of two-thirds of all the members elected to each house, as

provided by Section 39, Article III, Texas Constitution. If this

Act does not receive the vote necessary for immediate effect, this

Act takes effect September 1, 2025.

______________________________
______________________________

President of the Senate
Speaker of the House

I hereby certify that S.B. No. 1758 passed the Senate on

April 15, 2025, by the following vote: Yeas 23, Nays 7, one

present not voting.

______________________________

Secretary of the Senate

I hereby certify that S.B. No. 1758 passed the House on

May 28, 2025, by the following vote: Yeas 115, Nays 24, three

present not voting.

______________________________

Chief Clerk of the House

Approved:

______________________________

Date

______________________________

Governor