SB 1758

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 PRODUCTION AND SEMICONDUCTOR WAFER
Sec. 382.601.  DEFINITIONS.  In this subchapter:
(1)  "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.
(2)  "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;
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 is not liable for damages to a semiconductor
wafer manufacturing facility resulting from seismic or vibrational
disturbances caused by the cement facility owner or operator's
activities on the site of the cement facility if the cement facility
began operating before the date the semiconductor wafer
manufacturing facility began operating.
SUBCHAPTER M-1.  CEMENT 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
(1)  a semiconductor wafer manufacturing facility that
begins operation after January 1, 2025, and before December 31,
(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)  includes or is sited adjacent to an aggregate
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
(2)  assess the vibrational impact of the production of
(3)  analyze vibrational parameters necessary to
ensure the successful operation of a semiconductor wafer
manufacturing facility within 10 miles of a facility described by
(4)  determine whether a minimum distance of more than
10 miles 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.
(b)  In conducting the study under this section, the bureau
(A)  the commission and any other state agency,
political subdivision, or institution of higher education; and
(B)  any other stakeholder or private entity as
(2)  enter into a nondisclosure agreement with a
(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
(d)  Not later than March 31, 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.  CEMENT PRODUCTION OPERATIONS WITHIN STUDY
AREA.  The commission may not issue, renew, or amend a permit or
authorize the use of a standard permit 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
Sec. 382.655.  EXPIRATION.  This subchapter expires
SECTION 2.  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
SECTION 3.  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.