The bill, H.B. No. 3997, introduces new procedures for the review of permit applications and contested case hearings specifically for projects involving the construction or modification of liquefied natural gas (LNG) export terminals. It adds Section 5.559 to Subchapter M, Chapter 5 of the Water Code, which mandates the Texas Commission on Environmental Quality (TCEQ) to establish an expedited permit application review process. Applicants opting for this expedited process will be required to pay an additional fee determined by the commission to cover the associated costs. The bill also stipulates that the executive director must respond to public comments within 120 days after the comment period closes.

Furthermore, the bill delegates the responsibility for conducting contested case hearings to the State Office of Administrative Hearings when requested by a party. It outlines specific requirements for parties requesting a hearing, including the need to specify reasons for being considered an affected person. The administrative law judge is required to hold a preliminary hearing within 30 days of referral, with a possible extension of up to 15 days. The provisions of this bill will apply only to permit applications filed after its effective date of September 1, 2025, while pending applications will continue to be governed by the previous law.

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