Morning Briefing - April 10, 2019
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April 10, 2019

Texas Legislature Committees Advance Rad Waste Disposal Bills

By ExchangeMonitor

Committees in both chambers of the Texas Legislature have advanced identical pieces of legislation intended to give Dallas-based Waste Control Specialists an edge in the market for disposal of low-level radioactive waste.

The Texas House Environmental Regulation Committee on April 4 voted 5-3 in favor of Rep. Brooks Landgraf’s (R) H.B. 2269. On Monday, the state Senate Natural Resources and Economic Development Committee voted 7-2 to report Sen. Kel Seliger’s S.B. 1021. Both lawmakers represent Andrews County in West Texas, home to the Waste Control Specialists disposal facility.

The company’s property encompasses the disposal facility for the Texas Low-Level Radioactive Waste Disposal Compact. The state is the owner and one of just two members to the compact, along with Vermont, though 34 other states can also ship their low-level waste to the facility at higher fees.

Among other measures, the bills would shrink the Texas Commissionn on Environmental Quality surcharge for disposal of waste from non-compact states from 20% to 5% of the full contracted rate.

The legislation also requires the state to compare disposal fees paid by the two compact member states and all other states, and to issue rebates to Texas and Vermont if their average fees are higher than those for other waste generators. In addition, the measure would set aside exclusive disposal space, by both volume and curie, for the two compact member states.

Waste Control Specialists operates one of four U.S. commercial facilities for disposal of low-level waste. But it has struggled financially for years, which precipitated its sale in 2018 from holding company Valhi Inc. to private equity firm J.F. Lehman & Co. The Landgraf and Seliger legislation is intended to drive up business from both in-compact and other states.

If passed, the measure would take effect on Sept. 1 of this year.

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