S.B. No. 1586 amends the Water Code by adding Section 26.054, which establishes specific conditions for the issuance of permits for "package plants," defined as pre-manufactured wastewater treatment facilities with a capacity of less than 500,000 gallons per day. The bill prohibits the Texas Commission on Environmental Quality (TCEQ) from issuing a permit for a package plant located within 1,000 feet of a municipal wastewater line. Additionally, it outlines several requirements that applicants must meet to obtain a permit, including demonstrating security and weatherization measures, financial assurance for future maintenance, and that nearby wastewater treatment facilities have denied requests for similar services.

The bill also stipulates that the cumulative effect of wastewater discharges from the proposed package plant and other permitted facilities must not lead to increased environmental degradation. Furthermore, applicants must not owe delinquent fees to the commission, must not be subject to unresolved administrative orders, and must not have a history of significant violations within the past ten years. This new section will apply only to permit applications filed with the TCEQ on or after the effective date of the Act, which is set for September 1, 2025.

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