Texas 2015 84th Regular

Texas House Bill HB2031 Engrossed / Bill

Filed 05/01/2015

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                    By: Lucio III, Keffer, Hunter, H.B. No. 2031
 Miller of Comal, Workman


 A BILL TO BE ENTITLED
 AN ACT
 relating to the diversion, treatment, and use of marine seawater
 and the discharge of treated marine seawater and waste resulting
 from the desalination of marine seawater; adding provisions subject
 to a criminal 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, every effort must be made to 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 efforts to conserve or develop other surface water supplies
 but rather to more fully explore and expedite the development of all
 this state's water resources in order to balance this state's supply
 and demand for water, which is one of the most precious resources of
 this state.
 (b)  Currently, the projected long-term water needs of this
 state far exceed the firm supplies that are available and that can
 reasonably be made available from freshwater sources within this
 state. The legislature recognizes the importance of providing for
 this state's current and future water needs at all times,
 including, consistent with reasonable drought contingency
 measures, during severe droughts.
 (c)  In this state, marine seawater is a potential new source
 of water for drinking and other beneficial uses. This state has
 access to vast quantities of marine seawater from the Gulf of
 Mexico. The purpose of this Act is to streamline the regulatory
 process for and reduce the time required for and cost of marine
 seawater desalination.
 (d)  The legislature finds that marine seawater desalination
 facilities should be cost-effectively and timely developed,
 concurrently with other water planning solutions, to help this
 state meet its current and future water needs.
 (e)  The legislature finds that it is necessary and
 appropriate to grant authority and provide for expedited and
 streamlined authorization for marine seawater desalination
 facilities, consistent with appropriate environmental and water
 right protections, in order to avoid unnecessary costs, delays, and
 uncertainty and thereby help justify the investment of significant
 resources in the development of such facilities.
 SECTION 2.  Section 5.509(a), Water Code, is amended to read
 as follows:
 (a)  The commission may issue an emergency or temporary order
 relating to the discharge of waste or pollutants into or adjacent to
 water in the state if:
 (1)  the order is necessary to enable action to be taken
 more expeditiously than is otherwise provided by Chapter 18 or 26,
 as applicable, to effectuate the policy and purposes of that
 chapter; and
 (2)  the commission finds that:
 (A)  the discharge is unavoidable to:
 (i)  prevent loss of life, serious injury,
 or severe property damage;
 (ii)  prevent severe economic loss or
 ameliorate serious drought conditions, to the extent consistent
 with the requirements for United States Environmental Protection
 Agency authorization of a state permit program; or
 (iii)  make necessary and unforeseen repairs
 to a facility;
 (B)  there is no feasible alternative to the
 proposed discharge;
 (C)  the discharge will not cause significant
 hazard to human life and health, unreasonable damage to the
 property of persons other than the applicant, or unreasonable
 economic loss to persons other than the applicant; and
 (D)  the discharge will not present a significant
 hazard to the uses that will be made of the receiving water after
 the discharge.
 SECTION 3.  Section 5.551, Water Code, is amended by adding
 Subsection (a-1) to read as follows:
 (a-1)  Notwithstanding Section 18.002, this subchapter does
 not apply to a permit issued under Section 18.005(c)(2) if the point
 of discharge is not located within three miles of any point located
 on the coast of this state.
 SECTION 4.  Section 7.302(a), Water Code, is amended to read
 as follows:
 (a)  This section applies to a permit or exemption issued by
 the commission under:
 (1)  Section 18.005 of this code;
 (2)  Chapter 26, 27, 28, or 31 of this code;
 (3) [(2)]  Subchapter C or R, Chapter 361, Health and
 Safety Code;
 (4) [(3)]  Subchapter D, Chapter 366, Health and Safety
 Code;
 (5) [(4)]  Chapter 382, Health and Safety Code; or
 (6) [(5)]  a rule adopted under any of those
 provisions.
 SECTION 5.  Section 11.0237(b), Water Code, is amended to
 read as follows:
 (b)  This section does not alter the commission's
 obligations under Section 11.042(a-1), (b), or (c), 11.046(b),
 11.085(k)(2)(F), 11.134(b)(3)(D), 11.147, 11.1471, 11.1491,
 11.150, 11.152, 16.058, [or] 16.059, or 18.004.
 SECTION 6.  Section 11.082, Water Code, is amended by adding
 Subsection (a-1) to read as follows:
 (a-1)  Notwithstanding Section 18.002, this section does not
 apply to a violation of:
 (1)  Section 18.003 or a permit issued under that
 section; or
 (2)  Section 18.004 or an authorization granted under
 that section.
 SECTION 7.  Section 11.0842, Water Code, is amended by
 adding Subsection (a-1) to read as follows:
 (a-1)  Notwithstanding Section 18.002, this section does not
 apply to a violation of:
 (1)  Section 18.003 or a permit issued under that
 section; or
 (2)  Section 18.004 or an authorization granted under
 that section.
 SECTION 8.  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 18.003 [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 9.  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 marine seawater
 that serve local or regional entities;
 (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 10.  Subtitle C, Title 2, Water Code, is amended by
 adding Chapter 18 to read as follows:
 CHAPTER 18. MARINE SEAWATER DESALINATION PROJECTS
 Sec. 18.001.  DEFINITIONS. In this chapter:
 (1)  "Commission" means the Texas Commission on
 Environmental Quality.
 (2)  "Marine seawater" means water that is derived from
 the Gulf of Mexico.
 (3)  "Project" means:
 (A)  a marine seawater desalination project; or
 (B)  a facility for the storage, conveyance, and
 delivery of desalinated marine seawater.
 Sec. 18.002.  RELATIONSHIP TO OTHER LAWS. (a)  Except as
 provided by Subsection (b) or as otherwise provided by law:
 (1)  Chapter 11 applies to a permit or authorization
 under Section 18.003 or 18.004 in the same manner as that chapter
 applies to a permit or authorization under that chapter; and
 (2)  Chapter 26 applies to a permit under Section
 18.005 in the same manner as that chapter applies to a permit under
 that chapter.
 (b)  In the event of a conflict between this chapter and
 Chapter 11 or 26, this chapter controls.
 (c)  This chapter is intended to provide an alternative
 procedure for obtaining an authorization to divert and use state
 water that consists of marine seawater or to discharge treated
 marine seawater or waste resulting from the desalination of treated
 marine seawater under the circumstances provided by this chapter.
 This chapter does not affect the authority of a person to:
 (1)  divert and use state water that consists of marine
 seawater in accordance with the procedures provided by Chapter 11,
 including the authority to divert marine seawater from a point of
 diversion located in a bay or estuary; or
 (2)  discharge treated marine seawater or waste
 resulting from the desalination of treated marine seawater in
 accordance with the procedures provided by Chapter 26, including
 the authority to discharge waste resulting from the desalination of
 marine seawater into a bay or estuary.
 Sec. 18.003.  DIVERSIONS OF MARINE SEAWATER. (a)  A person
 must obtain a permit to divert and use state water that consists of
 marine seawater if:
 (1)  the point of diversion is located less than three
 miles seaward of any point located on the coast of this state; or
 (2)  the seawater contains a total dissolved solids
 concentration based on a yearly average of samples taken monthly at
 the water source of less than 20,000 milligrams per liter.
 (b)  A person may divert and use state water that consists of
 marine seawater without obtaining a permit if Subsection (a) does
 not apply.
 (c)  A person who diverts and uses state water that consists
 of marine seawater under a permit required by Subsection (a) or as
 authorized by Subsection (b) must determine the total dissolved
 solids concentration of the seawater at the water source by monthly
 sampling and analysis and provide the data collected to the
 commission. A person may not begin construction of a facility for
 the diversion of marine seawater without obtaining a permit until
 the person has provided data to the commission based on the analysis
 of samples taken at the water source over a period of at least one
 year demonstrating that Subsection (a)(2) does not apply. A person
 who has begun construction of a facility for the diversion of marine
 seawater without obtaining a permit because the person has
 demonstrated that Subsection (a)(2) does not apply is not required
 to obtain a permit for the facility if the total dissolved solids
 concentration of the seawater at the water source subsequently
 changes so that Subsection (a)(2) applies.
 (d)  A person may use marine seawater diverted under a permit
 required by Subsection (a) or as authorized by Subsection (b) for
 any beneficial purpose, but only if the seawater is treated in
 accordance with rules adopted by the commission before it is used.
 Rules adopted under this subsection may impose different treatment
 requirements based on the purpose for which the seawater is to be
 used.
 (e)  The commission shall adopt rules providing an expedited
 procedure for acting on an application for a permit required by
 Subsection (a). The rules must provide for notice, an opportunity
 for the submission of written comment, and an opportunity for a
 contested case hearing regarding commission actions relating to an
 application for a permit.
 (f)  A person may not divert marine seawater under a permit
 required by Subsection (a) or as authorized by Subsection (b) from a
 point of diversion located in a bay or estuary.
 (g)  An application for a permit required by Subsection (a)
 must address the points from which, and the rate at which, the
 facility the applicant proposes to construct will divert marine
 seawater.
 (h)  The commission by rule shall prescribe reasonable
 measures to minimize impingement and entrainment.
 (i)  The Parks and Wildlife Department and the General Land
 Office jointly shall conduct a study to identify zones in the Gulf
 of Mexico that are appropriate for the diversion of marine
 seawater, taking into account the need to protect marine organisms.
 Not later than September 1, 2018, the Parks and Wildlife Department
 and the General Land Office shall submit a report on the results of
 the study to the commission.  The report must include recommended
 diversion zones for designation by the commission and
 recommendations for the number of points from which, and the rate at
 which, a facility may divert marine seawater.  Not later than
 September 1, 2020, the commission by rule shall designate
 appropriate diversion zones. A diversion zone may be contiguous
 to, be the same as, or overlap a discharge zone. The point or points
 from which a facility may divert marine seawater must be located in
 a diversion zone designated by the commission under rules adopted
 under this subsection if:
 (1)  the facility is authorized by a permit as required
 by Subsection (a) issued after the rules are adopted; or
 (2)  the facility is exempt under Subsection (b) from
 the requirement of a permit and construction of the facility begins
 after the rules are adopted.
 (j)  Until the commission adopts rules under Subsection (i),
 a person must consult the Parks and Wildlife Department and the
 General Land Office regarding the point or points from which a
 facility the person proposes to construct may divert marine
 seawater before submitting an application for a permit for the
 facility if Subsection (a) applies or before beginning construction
 of the facility if Subsection (b) applies.
 Sec. 18.004.  BED AND BANKS AUTHORIZATION. (a)  With prior
 authorization granted under rules prescribed by the commission, a
 person may use the bed and banks of any flowing natural stream in
 this state or a lake, reservoir, or other impoundment in this state
 to convey marine seawater that has been treated so as to meet
 standards that are at least as stringent as the water quality
 standards applicable to the receiving stream or impoundment adopted
 by the commission.
 (b)  The commission shall provide for notice and an
 opportunity for the submission of written comment but may not
 provide an opportunity for a contested case hearing regarding
 commission actions relating to an application for an authorization
 under this section to use the bed and banks of a flowing natural
 stream to convey treated marine seawater. The commission shall
 provide for notice, an opportunity for the submission of written
 comment, and an opportunity for a contested case hearing regarding
 commission actions relating to an application for an authorization
 under this section to use a lake, reservoir, or other impoundment to
 convey treated marine seawater.
 (c)  A person may not discharge treated marine seawater into
 a flowing natural stream in this state or a lake, reservoir, or
 other impoundment in this state for the purpose of conveyance of the
 water under an authorization granted under this section unless the
 person holds a permit issued under Section 18.005 authorizing the
 discharge.
 (d)  Treated marine seawater that is conveyed under an
 authorization granted under this section may be used only by the
 person to whom the authorization is granted.
 (e)  Section 11.042(c) applies to an authorization granted
 under this section in the same manner as that subsection applies to
 an authorization granted under Section 11.042.
 (f)  This section does not prohibit a person from conveying
 treated marine seawater in any other manner authorized by law.
 Sec. 18.005.  DISCHARGE OF TREATED MARINE SEAWATER OR WASTE
 RESULTING FROM DESALINATION OF MARINE SEAWATER. (a)  In this
 section, "permit," "person," "to discharge," "waste," and "water"
 have the meanings assigned by Section 26.001.
 (b)  Section 26.011 applies to discharges governed by this
 section in the same manner as that section applies to discharges
 governed by Chapter 26.
 (c)  A person must obtain a permit to discharge:
 (1)  treated marine seawater into a natural stream in
 this state or a lake, reservoir, or other impoundment in this state;
 or
 (2)  waste resulting from the desalination of treated
 marine seawater into the Gulf of Mexico.
 (d)  A person shall:
 (1)  treat marine seawater so as to meet standards that
 are at least as stringent as the water quality standards adopted by
 the commission applicable to the receiving stream or impoundment
 before discharging the seawater under this section; and
 (2)  comply with all applicable state and federal
 requirements when discharging waste resulting from the
 desalination of marine seawater into the Gulf of Mexico.
 (e)  The commission by rule shall provide an expedited
 procedure for acting on an application for a permit under this
 section. The rules must provide for:
 (1)  notice, an opportunity for the submission of
 written comment, and an opportunity to request a public meeting and
 may authorize a contested case hearing regarding commission actions
 relating to an application for a permit described by Subsection
 (c)(1);
 (2)  notice, an opportunity for the submission of
 written comment, an opportunity to request a public meeting, and an
 opportunity for a contested case hearing regarding commission
 actions relating to an application for a permit described by
 Subsection (c)(2) if the point of discharge is located within three
 miles of any point located on the coast of this state; and
 (3)  notice and an opportunity for the submission of
 written comment regarding commission actions relating to an
 application for a permit described by Subsection (c)(2) if
 Subdivision (2) of this subsection does not apply.
 (f)  A person may not discharge waste resulting from the
 desalination of marine seawater into a bay or estuary under a permit
 issued under Subsection (c)(2).
 (g)  The Parks and Wildlife Department and the General Land
 Office jointly shall conduct a study to identify zones in the Gulf
 o
 f Mexico that are appropriate for the discharge of waste resulting
 from the desalination of marine seawater, taking into account the
 need to protect marine organisms. Not later than September 1, 2018,
 the Parks and Wildlife Department and the General Land Office shall
 submit a report on the results of the study to the commission. The
 report must include recommended discharge zones for designation by
 the commission.  Not later than September 1, 2020, the commission by
 rule shall designate appropriate discharge zones. The point at
 which a facility may discharge waste resulting from the
 desalination of marine seawater must be located in a discharge zone
 designated by the commission under rules adopted under this
 subsection if the facility is authorized by a permit issued under
 Subsection (c)(2) after the rules are adopted.
 (h)  Until the commission adopts rules under Subsection (g),
 a person must consult the Parks and Wildlife Department and the
 General Land Office regarding the point at which the facility the
 person proposes to construct may discharge waste resulting from the
 desalination of marine seawater before submitting an application
 for a permit under Subsection (c)(2) for the facility.
 SECTION 11.  Section 26.0291(a), Water Code, is amended to
 read as follows:
 (a)  An annual water quality fee is imposed on:
 (1)  each wastewater discharge permit holder,
 including the holder of a permit issued under Section 18.005, for
 each wastewater discharge permit held; and
 (2)  each user of water in proportion to the user's
 water right, through permit or contract, as reflected in the
 commission's records, provided that the commission by rule shall
 ensure that no fee shall be assessed for the portion of a municipal
 or industrial water right directly associated with a facility or
 operation for which a fee is assessed under Subdivision (1) of this
 subsection.
 SECTION 12.  Subchapter C, Chapter 341, Health and Safety
 Code, is amended by adding Section 341.0316 to read as follows:
 Sec. 341.0316.  DESALINATION OF MARINE SEAWATER FOR DRINKING
 WATER. (a)  This section applies only to a desalination facility
 that is intended to treat marine seawater for the purpose of
 producing 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 that treats marine seawater for the purpose of removing
 primary or secondary drinking water contaminants unless the
 commission approves the construction of the facility.
 SECTION 13.  Section 16.060, Water Code, is repealed.
 SECTION 14.  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, 2015.