HB 3997

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.  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
(c)  Not later than the 120th day after the close of the
public comment period for a permit application described by
Subsection (a), the executive director shall issue a written
response to any relevant and material public comments received
during the public comment period.
(d)  Notwithstanding any other law, if a party requests a
contested case hearing involving a permit application described by
Subsection (a), the commission shall delegate to the State Office
of Administrative Hearings the responsibility to conduct the
contested case hearing.  The provisions of Chapter 2001, Government
Code, and Section 2003.047 of that code apply to a contested case
hearing held under this subsection to the extent not inconsistent
with this section or rules adopted under this section.
(e)  In a request for a contested case hearing under this
section, the party requesting the hearing must specify each reason
the party is an affected person as defined by Section 5.115(a).  In
determining whether a party is an affected person, the
administrative law judge may only consider the reasons specified by
the party in the party's request for a contested case hearing.
(f)  In a contested case under this section, an
administrative law judge shall hold a preliminary hearing for the
case not later than the 30th day after the date the commission
refers the case to the administrative law judge, provided that the
judge may grant one extension of the time, not to exceed 15 days, on
(g)  The commission shall adopt rules as necessary to
(h)  To the extent of a conflict between this section and
another law, this section controls.
SECTION 2.  The change in law made by this Act applies only
to a permit application described by Section 5.559(a), Water Code,
as added by this Act, that is filed with the Texas Commission on
Environmental Quality on or after the effective date of this Act.  A
permit application described by Section 5.559(a), Water Code, as
added by this Act, 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 3.  This Act takes effect September 1, 2025.