Texas 2013 83rd Regular

Texas House Bill HB2578 Engrossed / Bill

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                    By: Larson, Callegari, Anderson, Villalba H.B. No. 2578


 A BILL TO BE ENTITLED
 AN ACT
 relating to the development of brackish groundwater and the use of
 brackish water and seawater; providing a penalty.
 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 SECTION 1.  (a)  With this state facing an ongoing drought,
 continuing population growth, and the need to remain economically
 competitive, this state must secure and develop plentiful and
 cost-effective water supplies to meet the ever-increasing demand
 for water. The purpose of this Act is not to hinder conservation
 efforts, because such efforts help reduce the need for new sources
 of water, or to hinder current development of fresh groundwater,
 fresh surface water, water reclamation, or aquifer storage and
 recovery. However, this state must explore every water resource in
 order to balance the supply and demand for water, one of the most
 precious resources of this state.
 (b)  Brackish groundwater and marine seawater are
 potentially new sources of public drinking water for this state.
 This state has an estimated 880 trillion gallons of brackish
 groundwater and access to over 600 quadrillion gallons of marine
 seawater from the Gulf of Mexico. The purpose of this Act is to
 streamline the process and reduce the cost and regulation of
 desalination.
 SECTION 2.  Section 11.121, Water Code, is amended to read as
 follows:
 Sec. 11.121.  PERMIT REQUIRED. Except as provided in
 Sections 11.142, 11.1421, [and] 11.1422, and 11.1423 [of this
 code], no person may appropriate any state water or begin
 construction of any work designed for the storage, taking, or
 diversion of water without first obtaining a permit from the
 commission to make the appropriation.
 SECTION 3.  Section 11.1311, Water Code, is amended by
 amending Subsection (b) and adding Subsection (b-1) to read as
 follows:
 (b)  The board may transfer interests in a permit issued
 under Subsection (a) [this section] to a municipality, river
 authority, other political subdivision, or water supply
 corporation organized under Chapter 67 as otherwise provided by
 law.
 (b-1)  In this subsection, "marine seawater" has the meaning
 assigned by Section 11.1423, and "brackish water" means water that
 contains a total dissolved solids concentration of more than 1,000
 milligrams per liter and is not marine seawater. On submission of an
 application to the commission, the commission shall issue without a
 hearing a permit to use the bed and banks of any flowing natural
 stream in the state to convey marine seawater or brackish water.
 The commission shall adopt rules to implement a procedure for
 application for a permit to convey marine seawater or brackish
 water consistent with this subsection. A flowing natural stream
 does not include impounded water. The commission shall provide
 notice and an opportunity for hearing for an application for a
 permit to convey marine seawater or brackish water into or through a
 lake, reservoir, or other impoundment.
 SECTION 4.  Subchapter D, Chapter 11, Water Code, is amended
 by adding Section 11.1423 to read as follows:
 Sec. 11.1423.  PERMIT EXEMPTION FOR USE BY WATER SUPPLY
 ENTITY OF MARINE SEAWATER. (a)  In this section:
 (1)  "Marine seawater" means water that contains a
 total dissolved solids concentration based on a yearly average of
 samples taken at the water source of more than 10,000 milligrams per
 liter that is derived from the Gulf of Mexico or an adjacent bay,
 estuary, or arm of the Gulf of Mexico.
 (2)  "Water supply entity" includes:
 (A)  a retail public utility as defined by Section
 13.002;
 (B)  a wholesale water supplier; or
 (C)  an irrigation district operating under
 Chapter 58.
 (b)  Without obtaining a permit, a water supply entity may
 use for any beneficial purpose state water that consists of marine
 seawater.
 (c)  A water supply entity must treat marine seawater and
 brackish water so that it meets the water quality level of the
 receiving stream before the entity may put the water into a stream
 under an authorization granted under Section 11.042.
 (d)  This section does not prohibit a water supply entity
 from conveying water under this section in any other manner
 authorized by law, including through the use of facilities owned or
 operated by the state if authorized by the state.
 SECTION 5.  Section 16.053(e), Water Code, is amended to
 read as follows:
 (e)  Each regional water planning group shall submit to the
 development board a regional water plan that:
 (1)  is consistent with the guidance principles for the
 state water plan adopted by the development board under Section
 16.051(d);
 (2)  provides information based on data provided or
 approved by the development board in a format consistent with the
 guidelines provided by the development board under Subsection (d);
 (2-a)  is consistent with the desired future conditions
 adopted under Section 36.108 for the relevant aquifers located in
 the regional water planning area as of the date the board most
 recently adopted a state water plan under Section 16.051 or, at the
 option of the regional water planning group, established subsequent
 to the adoption of the most recent plan;
 (3)  identifies:
 (A)  each source of water supply in the regional
 water planning area, including information supplied by the
 executive administrator on the amount of modeled available
 groundwater in accordance with the guidelines provided by the
 development board under Subsections (d) and (f);
 (B)  factors specific to each source of water
 supply to be considered in determining whether to initiate a
 drought response;
 (C)  actions to be taken as part of the response;
 and
 (D)  existing major water infrastructure
 facilities that may be used for interconnections in the event of an
 emergency shortage of water;
 (4)  has specific provisions for water management
 strategies to be used during a drought of record;
 (5)  includes but is not limited to consideration of
 the following:
 (A)  any existing water or drought planning
 efforts addressing all or a portion of the region;
 (B)  approved groundwater conservation district
 management plans and other plans submitted under Section 16.054;
 (C)  all potentially feasible water management
 strategies, including but not limited to improved conservation,
 reuse, and management of existing water supplies, conjunctive use,
 acquisition of available existing water supplies, and development
 of new water supplies;
 (D)  protection of existing water rights in the
 region;
 (E)  opportunities for and the benefits of
 developing regional water supply facilities or providing regional
 management of water supply facilities;
 (F)  appropriate provision for environmental
 water needs and for the effect of upstream development on the bays,
 estuaries, and arms of the Gulf of Mexico and the effect of plans on
 navigation;
 (G)  provisions in Section 11.085(k)(1) if
 interbasin transfers are contemplated;
 (H)  voluntary transfer of water within the region
 using, but not limited to, regional water banks, sales, leases,
 options, subordination agreements, and financing agreements; [and]
 (I)  emergency transfer of water under Section
 11.139, including information on the part of each permit, certified
 filing, or certificate of adjudication for nonmunicipal use in the
 region that may be transferred without causing unreasonable damage
 to the property of the nonmunicipal water rights holder; and
 (J)  opportunities for and the benefits of
 developing large-scale desalination facilities for brackish
 groundwater or seawater that serve local or regional brackish
 groundwater production zones identified or designated under
 Section 16.060(c)(5);
 (6)  identifies river and stream segments of unique
 ecological value and sites of unique value for the construction of
 reservoirs that the regional water planning group recommends for
 protection under Section 16.051;
 (7)  assesses the impact of the plan on unique river and
 stream segments identified in Subdivision (6) if the regional water
 planning group or the legislature determines that a site of unique
 ecological value exists;
 (8)  describes the impact of proposed water projects on
 water quality; and
 (9)  includes information on:
 (A)  projected water use and conservation in the
 regional water planning area; and
 (B)  the implementation of state and regional
 water plan projects, including water conservation strategies,
 necessary to meet the state's projected water demands.
 SECTION 6.  Section 16.060, Water Code, is amended to read as
 follows:
 Sec. 16.060.  DESALINATION STUDIES AND RESEARCH. (a) In
 this section, "brackish water desalination project" means a
 desalination project the primary purpose of which is the
 development of new drinking water.  The term does not include the
 reuse, recycling, or disposal of wastewater.
 (b)  The board shall undertake or participate in research,
 feasibility and facility planning studies, investigations, and
 surveys [as it considers] necessary to further the development of
 cost-effective water supplies from seawater or brackish water
 desalination in the state.
 (c) [(b)]  The board shall prepare a biennial progress
 report on the implementation of seawater or brackish water
 desalination activities in the state and shall submit it to the
 governor, lieutenant governor, and speaker of the house of
 representatives not later than December 1 of each even-numbered
 year. The report shall include:
 (1)  results of the board's studies and activities
 relative to seawater or brackish water desalination during the
 preceding biennium;
 (2)  identification and evaluation of research,
 regulatory, technical, and financial impediments to the
 implementation of seawater or brackish water desalination
 projects;
 (3)  evaluation of the role the state should play in
 furthering the development of large-scale seawater or brackish
 water desalination projects in the state; [and]
 (4)  the anticipated appropriation from general
 revenues necessary to continue investigating water desalination
 activities in the state during the next biennium;
 (5)  identification and designation of local or
 regional brackish water production zones in areas of the state with
 moderate to high availability and productivity of brackish water
 that can be used to reduce the use of fresh groundwater and that:
 (A)  are separated by hydrogeologic barriers
 sufficient to prevent significant impacts to water availability or
 water quality in other aquifers, subdivisions of aquifers, or
 geologic strata;
 (B)  are not, at the time of designation as a
 brackish water production zone, serving as a primary water supply
 for any purpose other than supplying a desalination project; and
 (C)  are not located:
 (i)  in areas determined to be susceptible
 to subsidence; or
 (ii)  in the Edwards Aquifer and within the
 boundaries of the Edwards Aquifer Authority; and
 (6)  information regarding state participation in
 public-private partnerships to advance research efforts, implement
 pilot projects, and develop new technologies related to:
 (A)  water transport;
 (B)  brine disposal;
 (C)  pretreatment of seawater and brackish water;
 and
 (D)  innovative concentrate management
 strategies.
 (d) [(c)]  The board shall actively pursue federal sources
 of funding for seawater and brackish water desalination projects in
 the state.
 (e)  The board shall work together with groundwater
 conservation districts and stakeholders and shall consider the
 Brackish Groundwater Manual for Texas Regional Water Planning
 Groups, and any updates to the manual, and other relevant
 scientific data or findings when identifying and designating
 brackish water production zones under Subsection (c)(5).
 (f)  In preparing the report described by Subsection (c), the
 board shall incorporate input from water utilities, water
 providers, municipalities, and other public or private entities
 that have an interest in developing and implementing seawater or
 brackish water desalination projects.
 (g)  The board shall coordinate with the Texas Center for
 Innovative Desalination Technology and any other entity created by
 the state to study, promote, facilitate, or improve the
 development, financing, implementation, or enhancement of seawater
 or brackish water desalination technology or projects.
 (h)  The board shall coordinate with each agency identified
 in the report to provide assistance with applicable regulatory
 requirements to improve implementation of seawater or brackish
 water desalination technology or projects.
 SECTION 7.  Subchapter D, Chapter 36, Water Code, is amended
 by adding Section 36.1015 to read as follows:
 Sec. 36.1015.  RULES FOR PERMITS IN BRACKISH GROUNDWATER
 PRODUCTION ZONES. (a) In this section, "designated brackish
 groundwater production zone" means an aquifer, subdivision of an
 aquifer, or geologic stratum designated under Section
 16.060(c)(5).
 (b)  On receipt of a petition from a person with a legally
 defined interest in groundwater in the district, a district located
 over any part of a designated brackish groundwater production zone
 shall adopt rules for the issuance of permits to withdraw brackish
 groundwater from a well in a designated brackish groundwater
 production zone for a project designed to treat brackish
 groundwater to drinking water standards. The rules must:
 (1)  allow unlimited withdrawals and rates of
 withdrawal of brackish groundwater from a designated brackish
 groundwater production zone;
 (2)  provide for a minimum term of 30 years for a permit
 issued for a well that produces brackish groundwater from a
 designated brackish groundwater production zone;
 (3)  require reasonable monitoring of an aquifer,
 subdivision of an aquifer, or geologic stratum adjacent to a
 designated brackish groundwater production zone;
 (4)  allow the district to amend a permit issued under
 rules adopted under this section following receipt of a report
 requested under Subsection (c); and
 (5)  require reports from the holder of a permit issued
 under rules adopted under this section that must include:
 (A)  the amount of brackish groundwater
 withdrawn;
 (B)  the average monthly water quality of the
 brackish groundwater withdrawn; and
 (C)  aquifer levels in both the designated
 brackish groundwater production zone and in any aquifer,
 subdivision of the aquifer, or geologic stratum for which the
 permit requires monitoring.
 (c)  The district shall provide the reports required under
 Subsection (b)(5) to the Texas Water Development Board. On request
 from the district, the development board shall investigate and
 issue a report on whether brackish groundwater withdrawals from the
 designated brackish groundwater production zone are causing:
 (1)  significant aquifer level declines; or
 (2)  adverse impacts to water quality in an aquifer,
 subdivision of an aquifer, or geologic stratum.
 (d)  After receiving a report requested under Subsection
 (c), the district may, after notice and hearing:
 (1)  amend the applicable permit to establish a
 production limit necessary to mitigate any impacts identified by
 the report;
 (2)  approve a mitigation plan that alleviates any
 adverse impacts identified by the report; or
 (3)  both amend the permit to establish a production
 limit and approve a mitigation plan.
 SECTION 8.  Section 36.1071(a), Water Code, is amended to
 read as follows:
 (a)  Following notice and hearing, the district shall, in
 coordination with surface water management entities on a regional
 basis, develop a management plan that addresses the following
 management goals, as applicable:
 (1)  providing the most efficient use of groundwater;
 (2)  controlling and preventing waste of groundwater;
 (3)  controlling and preventing subsidence;
 (4)  addressing conjunctive surface water management
 issues;
 (5)  addressing natural resource issues;
 (6)  addressing drought conditions;
 (7)  addressing conservation, recharge enhancement,
 rainwater harvesting, precipitation enhancement, or brush control,
 where appropriate and cost-effective; [and]
 (8)  addressing the desired future conditions adopted
 by the district under Section 36.108; and
 (9)  identifying goals for the development of brackish
 groundwater desalination strategies in designated brackish
 groundwater production zones.
 SECTION 9.  Section 36.108(d-2), Water Code, is amended to
 read as follows:
 (d-2)  The desired future conditions proposed under
 Subsection (d) must provide a balance between the highest
 practicable level of groundwater production and the conservation,
 preservation, protection, recharging, and prevention of waste of
 groundwater and control of subsidence in the management area. The
 desired future condition does not apply to brackish groundwater
 production in designated brackish groundwater production zones.
 This subsection does not prohibit the establishment of desired
 future conditions that provide for the reasonable long-term
 management of groundwater resources consistent with the management
 goals under Section 36.1071(a). The desired future conditions
 proposed under Subsection (d) must be approved by a two-thirds vote
 of all the district representatives for distribution to the
 districts in the management area. A period of not less than 90 days
 for public comments begins on the day the proposed desired future
 conditions are mailed to the districts. During the public comment
 period and after posting notice as required by Section 36.063, each
 district shall hold a public hearing on any proposed desired future
 conditions relevant to that district. During the public comment
 period, the district shall make available in its office a copy of
 the proposed desired future conditions and any supporting
 materials, such as the documentation of factors considered under
 Subsection (d) and groundwater availability model run results.
 After the public hearing, the district shall compile for
 consideration at the next joint planning meeting a summary of
 relevant comments received, any suggested revisions to the proposed
 desired future conditions, and the basis for the revisions.
 SECTION 10.  Chapter 111, Education Code, is amended by
 adding Subchapter J to read as follows:
 SUBCHAPTER J.  TEXAS CENTER FOR INNOVATIVE
 DESALINATION TECHNOLOGY
 Sec. 111.131.  DEFINITIONS. In this subchapter:
 (1)  "Boards" means the board of regents of the
 University of Houston System and the board of regents of The
 University of Texas System.
 (2)  "Center" means the Texas Center for Innovative
 Desalination Technology established under this subchapter.
 Sec. 111.132.  ESTABLISHMENT. (a) The Texas Center for
 Innovative Desalination Technology is established as a partnership
 between the University of Houston, The University of Texas at
 Brownsville, and The University of Texas at El Paso.
 (b)  The organization, control, and management of the center
 are vested in the boards, and the respective institutions shall
 execute a memorandum of understanding for that purpose.
 (c)  The center shall be hosted by the University of
 Houston's Cullen College of Engineering, The University of Texas at
 Brownsville's College of Science, Mathematics, and Technology, and
 The University of Texas at El Paso's Center for Inland Desalination
 Systems. Participation in the center's activities shall be open to
 any faculty or staff member of each host university who is an active
 researcher in the field of water desalination, engineering,
 hydrology, biology, water supply development, or energy
 efficiency, or in another relevant field as determined by the
 boards.
 Sec. 111.133.  PURPOSE. The center is created to:
 (1)  promote interdisciplinary research, education,
 and training for the development of state-of-the-art products,
 materials, systems, and technologies designed for the desalination
 of seawater from the Gulf of Mexico and brackish water within
 surface and groundwater resources throughout the state; and
 (2)  develop cost-effective, energy-efficient, and
 environmentally sound water desalination, brine disposal, and
 water conveyance technologies that can enhance the potential for
 desalinated water to contribute toward the state's long-term water
 portfolio.
 Sec. 111.134.  POWERS AND DUTIES. The center shall:
 (1)  collaborate with appropriate international,
 federal, state, and local agencies and private business or
 nonprofit entities as necessary to develop innovative desalination
 technologies;
 (2)  research and develop innovative seawater and
 brackish water desalination technologies, including pretreatment
 technologies and improvements, that are energy efficient and cost
 effective, minimize environmental impacts, and offer long-term
 water supply solutions for the state;
 (3)  research and develop brine disposal and reuse
 methods and technologies;
 (4)  research and develop water conveyance systems and
 technologies that may be used to transport desalinated water to
 target use populations;
 (5)  develop test facilities for evaluating the
 performance of new products, materials, or techniques;
 (6)  develop specifications and standards for products
 used for desalinating water, conveying water, and disposing of
 brine;
 (7)  provide public information, education, and
 outreach regarding desalination technologies and appropriate uses
 and conservation methods for desalinated water; and
 (8)  provide data, recommendations, and any other
 information necessary relating to desalination for local,
 regional, or statewide water planning programs and processes.
 Sec. 111.135.  COLLABORATION WITH OTHER ENTITIES. The
 University of Houston, The University of Texas at Brownsville, and
 The University of Texas at El Paso shall encourage public and
 private entities to participate in or support the operation of the
 center and may enter into an agreement with any public or private
 entity for that purpose. An agreement may allow the center to
 provide information, services, or other assistance to an entity in
 exchange for the entity's participation or support.
 Sec. 111.136.  GIFTS AND GRANTS. The boards may solicit,
 accept, and administer gifts and grants from any public or private
 source for the purposes of the center.
 Sec. 111.137.  PERSONNEL. The boards may employ personnel
 for the center as necessary.
 Sec. 111.138.  EXPIRATION. This subchapter expires
 September 1, 2023.
 SECTION 11.  Section 341.001, Health and Safety Code, is
 amended by adding Subdivisions (1-a), (2-a), and (4-a) to read as
 follows:
 (1-a)  "Brackish water" means water that contains a
 total dissolved solids concentration of more than 1,000 milligrams
 per liter. The term does not include marine seawater.
 (2-a)  "Desalination facility" means a facility used
 for the treatment of brackish water or marine seawater to remove
 dissolved mineral salts and other dissolved solids.
 (4-a)  "Marine seawater" means water that contains a
 total dissolved solids concentration based on a yearly average of
 samples taken at the water source of more than 10,000 milligrams per
 liter that is derived from the Gulf of Mexico or an adjacent bay,
 estuary, or arm of the Gulf of Mexico.
 SECTION 12.  Subchapter C, Chapter 341, Health and Safety
 Code, is amended by adding Section 341.0359 to read as follows:
 Sec. 341.0359.  DESALINATION OF WATER FOR DRINKING WATER.
 (a) This section applies only to a desalination facility that is
 intended to produce water for the public drinking water supply.
 This section does not apply to a desalination facility used to
 produce nonpotable water.
 (b)  The commission shall adopt rules to:
 (1)  allow water treated by a desalination facility to
 be used as public drinking water; and
 (2)  ensure that water treated by a desalination
 facility meets the requirements of Section 341.031 and rules
 adopted under that section.
 (c)  A person may not begin construction of a desalination
 facility unless the commission approves in writing the plans and
 specifications for the facility.
 (d)  A person may not begin construction of a desalination
 facility that treats brackish water or marine seawater for the
 purpose of removing primary or secondary drinking water
 contaminants unless the commission approves in writing a report
 containing:
 (1)  a computer model acceptable to the commission;
 (2)  a pilot study with a minimum 40-day run duration
 without treatment intervention to meet federal and state safe
 drinking water standards;
 (3)  data from a similar system installed at another
 desalination facility that treats source water of a similar or
 lower quality; or
 (4)  a full-scale verification protocol with a minimum
 40-day run duration without treatment intervention to meet federal
 and state safe drinking water standards.
 (e)  If a full-scale verification protocol report is
 approved, a person may not send water to a public water distribution
 system without a full-scale verification study:
 (1)  completed after construction; and
 (2)  approved by the commission.
 (f)  Not later than the 100th day after the date the
 commission receives the report for a proposed desalination
 facility, the commission shall review the report and issue an
 exception response letter that may contain conditions for approval.
 (g)  Not later than the 60th day after the date the
 commission receives the plans and specifications for a proposed
 desalination facility, the commission shall review the plans and
 specifications and issue a response letter that may contain
 conditions for approval.
 (h)  A person violates this section if the person fails to
 meet a condition for approval in a letter issued to the person under
 Subsection (f) or (g).
 SECTION 13.  This Act takes effect September 1, 2013.