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, the official text

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