Relating to the disposition and use of the state's portion of civil penalties recovered in suits brought by local governments for violations of certain laws under the jurisdiction of, or rules adopted or orders or permits issued by, the Texas Commission on Environmental Quality.

HB 1682 changes how civil penalties from environmental lawsuits are divided. If a local government sues for violations under Texas Commission on Environmental Quality (TCEQ) rules, the first $4.3 million recovered goes half to the state and half to the suing local government, with any amount above $4.3 million going entirely to the state. The state’s portion of penalties is then split: half funds a new Special Environmental Remediation Fund, which provides grants to counties and municipalities for environmental cleanup projects. The bill takes effect September 1, 2025, applying only to violations occurring after that date.