The bill, S.B. No. 1758, introduces new regulations concerning the operation of cement kilns and the production of aggregates in proximity to semiconductor wafer manufacturing facilities. It amends the Health and Safety Code by adding Subchapters M and M-1, which define key terms such as "Portland cement kiln" and "semiconductor wafer manufacturing facility." A significant provision included in the bill is the limitation of liability for owners or operators of cement facilities, stating that they will not be held liable for damages to semiconductor facilities caused by seismic or vibrational disturbances if the cement facility commenced operations before the semiconductor facility.

Additionally, the bill establishes a pilot program in Grayson County that applies to semiconductor wafer manufacturing facilities starting operations in 2025 and outlines specific conditions for cement production operations near these 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 necessary distances between these operations and semiconductor facilities to prevent disruptions. The bill also includes a provision that prohibits the issuance or renewal of permits for cement facilities within 10 miles of a new semiconductor facility during the study period, which is set to expire on September 1, 2031.

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