S.B. No. 1758 introduces new regulations concerning the operation of cement kilns and aggregate production facilities in proximity to semiconductor wafer manufacturing facilities in Texas. 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 specifically for Grayson County, which applies to semiconductor wafer manufacturing facilities that begin operations between January 1, 2025, and December 31, 2025, and to associated cement and aggregate production facilities. The Bureau of Economic Geology is tasked with conducting a study to analyze the impact of aggregate production on seismic activity and to determine if a minimum distance is necessary between these facilities and semiconductor manufacturing sites. The bill also prohibits the issuance of permits for new cement or aggregate production facilities within 10 miles of a semiconductor facility in Grayson County until the study is completed. The provisions of this subchapter will expire on September 1, 2031.

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