NEW BUSINESS

This meeting is a work session for discussion between commissioners and staff. No public testimony or comment will be accepted except by invitation of the commission.

1. Consideration of issues related to regionalization of water and wastewater facilities. Ken Petersen (Deputy Director, Office of Water Resource Management); Diana Borja (Director, Border Affairs); Ann McGinley (Director, Enforcement Division); John Young (Field Operations); Steve Walden (Director, Water Utilities Division) presented this item.
   For the water management regionalization issues, the commission made the following decisions:
   • Issue 1: Certificate of Convenience and Necessity (CCN) - The commission supported the option to require an applicant to provide information and analysis regarding option for regionalization. Staff will provide commission recommendation on approval of CCN only if applicant demonstrates that regionalization consolidation with another retail public utility is not economically feasible.
   • Issue 2: Applications for Texas Water Code, Chapter 26 wastewater permits - The commission directed staff to reconsider authorizations that remain unused for more than 10 years, especially of CCNs.
   • Issue 3: Designation of regional wastewater systems - This issue is already part of the legislative implementation process through rulemaking.
   • Issue 4: Community wastewater planning - The commission directed staff to repeal 30 TAC Chapter 322 relating to Community Wastewater Planning since this rule is not known or used.
   • Issue 5: Application reviews for CCNs and wastewater permits - The commission directed staff to move forward and develop written guidance on application reviews for CCNs and wastewater permits regarding regionalization.

   For the enforcement regionalization issues, the commission made the following decisions:

   • Issue 1: Encourage regionalization during enforcement action - The commission supported all of the options to require systems to analyze the costs of upgrading versus regionalization, require development of a business plan to assess long-term impacts, and require systems to investigate permanent connection to another system.
   • Issue 2: Poor management of water systems - The commission supported the option to require the use of temporary new management or joint management by a neighboring system.
   • Issue 3: Promoting voluntary through supplemental environmental projects - The commission supported the use of supplemental environmental projects (SEPs) to promote regionalization, but did not want to utilize SEPs to develop plans/designs.
   • Issue 4: Revocations of CCNs or permits or moratoriums - The commission supported the use of revocation. The commission directed staff to utilize moratoriums only sparingly.
   • Issue 5: Balance coming into compliance versus analysis for regionalization - The commission supported the use of ordering provisions requiring evaluation for possible regionalization prior to upgrading a system only when this could be done very quickly. If compliance could be achieved quickly, the commission preferred to go that route rather than opt for an evaluation of regionalization opportunities. The commission also favored more use of forced receiverships. The commission approved the use of agreements, rather than enforcement orders, with regional entities who volunteer to take over noncompliant systems.

   For the border regionalization issues, the commission made the following decisions:

   • Issue 1: Border Environment Cooperation Commission (BECC) - The commission directed staff to emphasize regionalization and work with Colonia Coordinator in Water Utilities Division.
   • Issue 2: BECC and North American Development Bank (NADBank) Technical Assistance Funds - The commission directed staff to ask EPA if funding of regionalization projects can be prioritized over standalone solutions.
   • Issue 3: Interagency Colonia workgroup - The commission directed staff to emphasize regionalization and work with Colonia Coordinator to extend service to economically distressed areas located within the service areas certified to the applicant.
   • Issue 4: Supplemental Environmental Projects - The commission directed staff to ask EPA if funding of regionalization projects can be prioritized over standalone solutions instead of using SEP funds.

   The commission directed staff to emphasize regionalization in each of the issues. The commission also directed staff to ask EPA if funding of regionalization projects can be prioritized over standalone solutions.

   2. Consideration of comments on the U.S. Environmental Protection Agency’s proposal to identify those areas which meet the one-hour national ambient air quality standard for ozone and to which that standard will no longer apply, and related issues. Herb Williams (Director, Air Policy); David Duncan (Legal); Chris Kadas (Legal); Chuck Mueller (Air Policy) presented this item. The commission approved the submittal of comments to the U.S. Environmental Protection Agency on the proposed rule and a direct final rule to identify ozone areas attaining the one-hour standard and to which the one-hour standard is no longer applicable.

   3. Consideration for publication of and hearing upon the proposed State Implementation Plan (SIP) concerning the Attainment Demonstration for the Houston/Galveston Ozone Nonattainment Area. This SIP will also substitute volatile organic compound or oxides of nitrogen reductions for certain elements to compensate for reductions that EPA plans to disapprove in the previous 9% SIP revisions. (Rule Log No. 97184-SIP-AI) Herb Williams (Director, Air Policy); Chris Kadas (Legal); Chuck Mueller and Liz Hendler (Air Policy) presented this item. Chairman McBee moved to approve publication of the proposed State Implementation Plan concerning the Houston/Galveston Ozone Nonattainment Area. Commissioner Marquez seconded and the motion passed unanimously.

   4. Consideration of the U.S. Environmental Protection Agency’s promulgation of revised national ambient air quality standards, implementation of these and the prior national ambient air quality standards, and related issues. No action was taken. Chairman McBee requested this standing issue be dropped from future agendas and only be considered if needed.

   5. Consideration of the agency's implementation of legislation enacted by the 75th Texas Legislature including the agency's efforts to work with the Interim Legislative Committees. The commission may also meet in closed meeting to receive legal advice regarding these matters, or any of the above matters, as authorized by Section 551.071 of the Open Meetings Act, Chapter 551 of the Government Code. Any commission action, decision, or vote on these matters will be made in open meeting in accordance with Section 551.102 of the Open Meetings Act, Chapter 551 of the Government Code. No action taken.

   6. Planning for the next Commissioners’ Work Session. The next Commissioners’ Work Session is scheduled for Thursday, February 19, 1998, in E-201S, at 1:30 p.m. It will include the following issues: the monthly enforcement report, municipal solid waste policy issues, the agency's implementation of legislation enacted by the 75th Texas Legislature, and the agency's efforts to work with the Interim Legislative Committees.