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 of 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, ensuring that the provisions of the Government Code apply unless they conflict with the new section. It requires parties requesting a contested case hearing to specify their reasons for being considered affected persons, and it mandates that preliminary hearings occur within 30 days of referral to an administrative law judge, with a possible extension of up to 15 days. The changes will apply only to permit applications filed after the effective date of the Act, which is set for September 1, 2025.

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