S.B. No. 1758 introduces new regulations concerning the operation of cement kilns and aggregate production facilities in proximity to semiconductor wafer manufacturing facilities. The bill amends Chapter 382 of the Health and Safety Code by adding Subchapters M and M-1, which define key terms such as "aggregate production operation," "portland cement kiln," and "semiconductor wafer manufacturing facility." It establishes a limitation of liability for owners or operators of cement or aggregate production facilities, stating they are not liable for damages to semiconductor facilities caused by seismic or vibrational disturbances if their operations commenced before the semiconductor facility began.

Additionally, the bill creates a pilot program specific to Grayson County, which applies to semiconductor wafer manufacturing facilities that begin operations between January 1, 2025, and December 31, 2025, and to associated cement production facilities. The Bureau of Economic Geology is tasked with conducting a study to analyze the impact of aggregate production on seismic activity and vibrational disturbances, with a report due by August 1, 2026. The bill also prohibits the issuance of permits for new aggregate production facilities within 10 miles of a semiconductor facility during the study period, which is set to expire on September 1, 2031.

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