SB1758

Regular Session

Relating to the operation of a cement kiln and the production of aggregates near a semiconductor wafer manufacturing facility.

CriticalImmediate action required

High Cost

Effective:2025-09-01

Enforcing Agencies

Texas Commission on Environmental Quality (TCEQ) • Bureau of Economic Geology (University of Texas at Austin)

Compliance Analysis

Key implementation requirements and action items for compliance with this legislation

Implementation Timeline

Effective Date: September 1, 2025.
Compliance Deadline: Immediate. Operators in Grayson County must halt all permit application preparations for facilities within the 10-mile exclusion zone immediately.
Agency Rulemaking: The Bureau of Economic Geology (BEG) must submit a vibration impact study by August 1, 2026. Expect a "regulatory gray zone" between now and the 2027 Legislative Session, where the study's findings will likely dictate permanent setback rules.

Immediate Action Plan

1. Geofence Grayson County Assets: Immediately map a 10-mile radius around any known or announced semiconductor project in Grayson County relative to your assets.
2. Audit Permit Expirations: Identify any air permits in the exclusion zone expiring before September 1, 2031. If you have one, contact outside counsel immediately—you are statutorily barred from renewal.
3. Secure "First-in-Time" Evidence: For all statewide assets, archive dated proof of initial operations (utility bills, first sales invoices) to lock in your liability shield.
4. Engage with BEG: Proactively contact the Bureau of Economic Geology to establish protocols for the upcoming study to ensure your industry data is represented accurately.

Operational Changes Required

Contracts

Real Estate Purchase Agreements: Buyers in Grayson County must insert contingency clauses regarding the 10-mile semiconductor buffer zone before closing on land intended for cement/aggregate use.
Supply Agreements: Operators within the Grayson County exclusion zone with permits expiring before 2031 must review "Force Majeure" and "Change in Law" provisions, as the statutory ban on renewals may force a breach of supply obligations.
Non-Disclosure Agreements (NDAs): Legal teams must draft specific NDAs for the Bureau of Economic Geology to protect proprietary seismic data shared during the mandatory study.

Hiring/Training

Legal & Compliance: In-house counsel must be briefed on the new Subchapter M liability shield to ensure it is pleaded as an affirmative defense in any future nuisance litigation.
Site Management: Facility managers in Grayson County must be trained to identify and report any new semiconductor construction activity within a 10-mile radius immediately.

Reporting & Record-Keeping

Operational Timestamping (Statewide): You must curate a permanent legal file proving the exact date your facility commenced commercial operations. This is the primary evidence required to trigger the liability shield against future claims.
Seismic Data Segregation: Prepare to segregate vibrational data from general operational logs to facilitate sharing with the BEG without exposing unrelated trade secrets.

Fees & Costs

Legal Intervention: Budget for outside counsel to intervene or consult on the BEG study; the resulting report will define your future operating parameters.
Insurance Premiums: Notify your liability carrier of the new statutory defense; this reduction in litigation risk should be leveraged to negotiate lower General Liability premiums.

Strategic Ambiguities & Considerations

Measurement Methodology: The statute bans permits within 10 miles but fails to define the measurement points (e.g., property line to property line vs. emission stack to fabrication plant). A difference of 500 feet could determine facility viability.
"Associated With": The moratorium applies to kilns "associated with" aggregate operations. The lack of a definition for "associated" (e.g., co-located vs. common ownership) creates significant enforcement discretion for TCEQ.
"Commercial Operation" Trigger: The moratorium is triggered by semiconductor facilities beginning "commercial operation." It is unclear if this means initial testing or full-scale production.

Need Help Understanding Implementation?

Our government affairs experts can walk you through this bill's specific impact on your operations.

Schedule Consultation

Information presented is for general knowledge only and is provided without warranty, express or implied. Consult qualified government affairs professionals and legal counsel before making compliance decisions.

Legislative Timeline

This bill's path through the Texas Legislature

TopicsGrayson County Environment Environment--air Environment--general Interim Studies Cement & Concrete University of Texas At Austin Bureau of Economic Geology Environmental Quality, Texas Commission On

Official Analysis

View HRO Analysis View All Bill Documents

BILL ANALYSIS

Senate Research Center	S.B. 1758
89R9575 KRM-D	By: Birdwell
	Natural Resources
	3/24/2025
	As Filed

AUTHOR'S / SPONSOR'S STATEMENT OF INTENT

Concerns have been raised regarding the ability of cement kilns, including associated aggregate production operations, and semiconductor wafer manufacturers to operate in proximity to one another, particularly in areas such as Grayson County where both industries find favorable conditions for site location.

S.B. 1758 creates a pilot program in Grayson County to determine a scientific-based zone within which existing semiconductor wafer manufacturers could incur, without negative impact, the vibrations caused by cement kilns and aggregate production operations. This bill requires a study and report to be conducted by The University of Texas Bureau of Economic Geology in consultation with owners or operators of the semiconductor wafer manufacturer and cement kilns and aggregate operations in Grayson County. The study will be delivered to the legislature for further consideration. To allow time for the study and actions of the legislature, this bill prohibits the authorization of cement kilns and associated aggregate permits within ten miles of such semiconductor wafer manufacturers in Grayson County until September 1, 2031.

Further, based on the critical need for aggregate materials and the stationary nature of the natural resources produced for the materials, this bill creates a limitation of liability for cement kilns who are in operation prior to the date a semiconductor wafer manufacturing facility began operation.

As proposed, S.B. 1758 amends current law relating to the operation of a cement kiln and the production of aggregates near a semiconductor wafer manufacturing facility.

RULEMAKING AUTHORITY

This bill does not expressly grant any additional rulemaking authority to a state officer, institution, or agency.

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Chapter 382, Health and Safety Code, by adding Subchapters M and M-1, as follows:

SUBCHAPTER M.� CEMENT PRODUCTION AND SEMICONDUCTOR WAFER MANUFACTURING FACILITY

Sec. 382.601.� DEFINITIONS. Defines "portland cement kiln" and "semiconductor wafer manufacturing facility."

Sec. 382.602.� LIMITATION OF LIABILITY. Provides that an owner or operator of a facility operating under a new source review permit issued under Chapter 382 (Clean Air Act) that authorizes the operation of a portland cement kiln is not liable for damages to a semiconductor wafer manufacturing facility resulting from seismic or vibrational disturbances caused by the cement facility owner or operator's activities on the site of the cement facility if the cement facility began operating before the date the semiconductor wafer manufacturing facility began operating.

SUBCHAPTER M-1.� CEMENT PRODUCTION AND SEMICONDUCTOR WAFER MANUFACTURING FACILITY PILOT PROGRAM: GRAYSON COUNTY

Sec. 382.651.� DEFINITIONS.� Defines "aggregate production operation," "bureau," "portland cement kiln," and "semiconductor wafer manufacturing facility."

Sec. 382.652.� GRAYSON COUNTY PILOT PROGRAM.� Provides that this subchapter applies only to:

(1) a semiconductor wafer manufacturing facility that begins operation after January 1, 2025, and before December 31, 2025; and

(2) a facility that is proposed to be constructed under or is operating under a new source review permit that authorizes the construction or operation of a portland cement kiln and includes or is sited adjacent to an aggregate production operation.

Sec. 382.653.� STUDY AND REPORT.� (a)� Requires the Bureau of Economic Geology (bureau) to conduct a study, in consultation with owners or operators of facilities described by Section 382.652 in Grayson County, to analyze seismological data related to aggregate production operations, assess the vibrational impact of the production of aggregates on bedrock, analyze vibrational parameters necessary to ensure the successful operation of a semiconductor wafer manufacturing facility within 10 miles of a facility described by Section 382.652(2), and �determine whether a minimum distance of more than 10 miles between a facility described by Section 382.652(2) and a semiconductor wafer manufacturing facility is necessary to prevent seismic or vibrational disruption to the operation of the semiconductor wafer manufacturing facility.

(b)� Authorizes the bureau, in conducting the study under this section, to collaborate with the Texas Commission on Environmental Quality (TCEQ) and any other state agency, political subdivision, or institution of higher education and any other stakeholder or private entity as necessary and enter into a nondisclosure agreement with a private entity.

(c)� Authorizes the bureau, in addition to money appropriated by the legislature to the bureau for the purpose of this section, to accept gifts, grants, and other donations for the purposes of conducting the study under this section.

(d)� Requires the bureau, not later than March 31, 2026, to prepare and submit to the governor, the lieutenant governor, the speaker of the house of representatives, and each standing legislative committee with primary jurisdiction over the environment or natural resources a report on the results of the study conducted under this section and any recommendations for legislative or other action.

Sec. 382.654.� CEMENT PRODUCTION OPERATIONS WITHIN STUDY AREA. Prohibits TCEQ from issuing, renewing, or amending a permit or authorizing the use of a standard permit under this chapter for the construction or operation of a facility described by Section 382.652(2) within 10 miles of a facility described by Section 382.652(1) in Grayson County.

Sec. 382.655.� EXPIRATION.� Provides that this subchapter expires September 1, 2031.

SECTION 2. Makes application of Section 382.602, Health and Safety Code, as added by this Act, prospective.

SECTION 3. Effective date: upon passage or September 1, 2025.

Senate Authors

Sen. Brian BirdwellRepublican · Primary Author

Coauthors (1)

Brent Hagenbuch (R)

House Sponsor

Rep. Brooks LandgrafRepublican · Primary Sponsor

Bill Text(with markup)

S.B. No. 1758

View bill text in multiple formats on Texas Legislature website

Fiscal NoteView Original

	AN ACT
	relating to the operation of a cement kiln and the production of
	aggregates near a semiconductor wafer manufacturing facility.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
	SECTION 1. Chapter 382, Health and Safety Code, is amended
	by adding Subchapters M and M-1 to read as follows:
	SUBCHAPTER M. CEMENT OR AGGREGATE PRODUCTION AND SEMICONDUCTOR
	WAFER MANUFACTURING FACILITY
	Sec. 382.601. DEFINITIONS. In this subchapter:
	(1) "Aggregate production operation" has the meaning
	assigned by Section 28A.001, Water Code.
	(2) "Portland cement kiln" means a system, including
	any solid, gaseous, or liquid fuel combustion equipment, used to
	calcine and fuse raw materials, including limestone and clay, to
	produce portland cement clinker.
	(3) "Semiconductor wafer manufacturing facility"
	means a manufacturing facility that conducts any of the following
	processes with respect to semiconductor production:
	(A) growing single-crystal ingots or boules;
	(B) wafer slicing;
	(C) etching and polishing;
	(D) bonding;
	(E) cleaning;
	(F) epitaxial deposition; or
	(G) metrology.
	Sec. 382.602. LIMITATION OF LIABILITY. An owner or
	operator of a facility operating under a new source review permit
	issued under this chapter that authorizes the operation of a
	portland cement kiln, or the production of aggregates at an
	aggregate production operation, is not liable for damages to a
	semiconductor wafer manufacturing facility resulting from seismic
	or vibrational disturbances caused by the cement or aggregate
	production facility owner's or operator's activities on the site of
	the cement or aggregate production facility if the cement or
	aggregate production facility began operating before the date the
	semiconductor wafer manufacturing facility began operating.
	SUBCHAPTER M-1. CEMENT OR AGGREGATE PRODUCTION AND SEMICONDUCTOR
	WAFER MANUFACTURING FACILITY PILOT PROGRAM: GRAYSON COUNTY
	Sec. 382.651. DEFINITIONS. In this subchapter:
	(1) "Aggregate production operation" has the meaning
	assigned by Section 28A.001, Water Code.
	(2) "Bureau" means the Bureau of Economic Geology of
	The University of Texas at Austin.
	(3) "Portland cement kiln" means a system, including
	any solid, gaseous, or liquid fuel combustion equipment, used to
	calcine and fuse raw materials, including limestone and clay, to
	produce portland cement clinker.
	(4) "Semiconductor wafer manufacturing facility" has
	the meaning assigned by Section 382.601.
	Sec. 382.652. GRAYSON COUNTY PILOT PROGRAM. This
	subchapter applies only to:
	(1) a semiconductor wafer manufacturing facility that
	begins commercial operation after January 1, 2025, and before
	December 31, 2025; and
	(2) a facility that:
	(A) is proposed to be constructed under or is
	operating under a new source review permit that authorizes the
	construction or operation of a portland cement kiln; and
	(B) is associated with a facility that produces
	aggregates at an aggregate production operation.
	Sec. 382.653. STUDY AND REPORT. (a) The bureau shall
	conduct a study, in consultation with owners or operators of
	facilities described by Section 382.652 in Grayson County, to:
	(1) analyze seismological data related to aggregate
	production operations;
	(2) assess the vibrational impact of the production of
	aggregates on bedrock;
	(3) analyze vibrational parameters necessary to
	ensure the successful operation of a semiconductor wafer
	manufacturing facility within 10 miles of a facility described by
	Section 382.652(2); and
	(4) investigate whether a minimum distance between a
	facility described by Section 382.652(2) and a semiconductor wafer
	manufacturing facility is necessary to prevent seismic or
	vibrational disruption to the operation of the semiconductor wafer
	manufacturing facility, considering the depth of the excavation
	activities conducted for the production of aggregates.
	(b) In conducting the study under this section, the bureau
	may:
	(1) collaborate with:
	(A) the commission and any other state agency,
	political subdivision, or institution of higher education; and
	(B) any other stakeholder or private entity as
	necessary; and
	(2) enter into a nondisclosure agreement with a
	private entity.
	(c) In addition to money appropriated by the legislature to
	the bureau for the purpose of this section, the bureau may accept
	gifts, grants, and other donations for the purposes of conducting
	the study under this section.
	(d) Not later than August 1, 2026, the bureau shall prepare
	and submit to the governor, the lieutenant governor, the speaker of
	the house of representatives, and each standing legislative
	committee with primary jurisdiction over the environment or natural
	resources a report on the results of the study conducted under this
	section and any recommendations for legislative or other action.
	Sec. 382.654. OPERATIONS WITHIN STUDY AREA. The commission
	may not issue, renew, or amend a permit or authorize the use of a
	standard permit or a permit by rule under this chapter for the
	construction or operation of a facility described by Section
	382.652(2) within 10 miles of a facility described by Section
	382.652(1) in Grayson County.
	Sec. 382.655. EXPIRATION. This subchapter expires
	September 1, 2031.
	SECTION 2. If any provision of this Act or its application
	to any person or circumstance is held invalid, the invalidity does
	not affect the other provisions or applications of this Act that can
	be given effect without the invalid provision or application, and
	to this end the provisions of this Act are severable.
	SECTION 3. Section 382.602, Health and Safety Code, as
	added by this Act, applies only to a cause of action that accrues on
	or after the effective date of this Act. A cause of action that
	accrues before the effective date of this Act is governed by the law
	applicable to the cause of action immediately before the effective
	date of this Act, and that law is continued in effect for that
	purpose.
	SECTION 4. This Act takes effect immediately if it receives
	a vote of two-thirds of all the members elected to each house, as
	provided by Section 39, Article III, Texas Constitution. If this
	Act does not receive the vote necessary for immediate effect, this
	Act takes effect September 1, 2025.

LEGISLATIVE BUDGET BOARD
Austin, Texas

FISCAL NOTE, 89TH LEGISLATIVE REGULAR SESSION


March 25, 2025

TO:	Honorable Brian Birdwell, Chair, Senate Committee on Natural Resources

FROM:	Jerry McGinty, Director, Legislative Budget Board

IN RE:	SB1758 by Birdwell (Relating to the operation of a cement kiln and the production of aggregates near a semiconductor wafer manufacturing facility.), As Introduced

Estimated Two-year Net Impact to General Revenue Related Funds for SB1758, As Introduced: a negative impact of ($1,222,500) through the biennium ending August 31, 2027.

The bill would make no appropriation but could provide the legal basis for an appropriation of funds to implement the provisions of the bill.

General Revenue-Related Funds, Five- Year Impact:

Fiscal Year	Probable Net Positive/(Negative) Impact to General Revenue Related Funds
2026	($1,222,500)
2027	$0
2028	$0
2029	$0
2030	$0

All Funds, Five-Year Impact:

Fiscal Year	Probable Savings/(Cost) from General Revenue Fund 1	Change in Number of State Employees from FY 2025
2026	($1,222,500)	4.0
2027	$0	0.0
2028	$0	0.0
2029	$0	0.0
2030	$0	0.0

Fiscal Analysis

The bill would require the Bureau of Economic Geology at The University of Texas at Austin to conduct a study that would analyze the vibrational impact of aggregate operations on semiconductor manufacturing in Grayson County. Not later than March 31, 2026, the Bureau of Economic Geology would be required to prepare and submit to the governor, the lieutenant governor, the speaker of the house of representatives, and each standing legislative committee with primary jurisdiction over the environment or natural resources a report on the results of the study and any recommendations for legislative or other action.

The bill would prohibit the Texas Commission on Environmental Quality from issuing, renewing, or amending permits for cement production facilities within 10 miles of a semiconductor wafer manufacturing facility in Grayson County until September 1, 2031.

Methodology

The Bureau of Economic Geology indicates that the study required by the bill would require the hiring of 4.0 FTEs and the purchase of equipment at a total cost of $1.2 million in fiscal year 2026.

According to the Comptroller of Public Accounts, the limitation on issuing, renewing, or amending permits for portland cement kiln operations in Grayson County may have revenue implications, but that amount cannot be determined.

Local Government Impact

No significant fiscal implication to units of local government is anticipated.

Source Agencies:

304 Comptroller of Public Accounts, 582 Commission on Environmental Quality, 720 The University of Texas System Administration

LBB Staff:

JMc, TUf, LBO, GO

Related Legislation

Explore more bills from this author and on related topics

Frequently Asked Questions

Common questions about SB1758

What does Texas SB1758 do?

SB1758 creates a bifurcated regulatory environment: it imposes an immediate permitting moratorium (blocking new permits, amendments, and renewals) for cement kilns within 10 miles of semiconductor facilities in Grayson County until 2031. Statewide, it establishes a "first-in-time" affirmative defense, shielding existing cement and aggregate operators from vibration-related nuisance lawsuits filed by new semiconductor entrants. Implementation Timeline Effective Date: September 1, 2025.

Who authored SB1758?

SB1758 was authored by Texas Senator Brian Birdwell during the Regular Session.

When was SB1758 signed into law?

SB1758 was signed into law by Governor Greg Abbott on June 22, 2025.

Which agencies enforce SB1758?

SB1758 is enforced by Texas Commission on Environmental Quality (TCEQ) and Bureau of Economic Geology (University of Texas at Austin).

How urgent is compliance with SB1758?

The compliance urgency for SB1758 is rated as "critical". Businesses and organizations should review the requirements and timeline to ensure timely compliance.

What is the cost impact of SB1758?

The cost impact of SB1758 is estimated as "high". This may vary based on industry and implementation requirements.

What topics does SB1758 address?

SB1758 addresses topics including grayson county, environment, environment--air, environment--general and interim studies.

Legislative data provided by LegiScanLast updated: November 25, 2025

Need Strategic Guidance on This Bill?

Need help with Government Relations, Lobbying, or compliance? JD Key Consulting has the expertise you're looking for.