84R20112 SLB-F
By: Ashby, Larson, Paddie, Clardy H.B. No. 2647
Substitute the following for H.B. No. 2647:
By: Burns C.S.H.B. No. 2647
A BILL TO BE ENTITLED
AN ACT
relating to a limitation on the authority to curtail groundwater
production from wells used for power generation or mining.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subchapter D, Chapter 36, Water Code, is amended
by adding Section 36.1175 to read as follows:
Sec. 36.1175. POWER GENERATION EXEMPTION. (a) This
section applies to a well that produces groundwater used to support
the operation of a power generation facility or a mine that provides
fuel to a power generation facility, including production for
boiler makeup water, fire suppression, dewatering, potable water,
and depressurization.
(b) An owner or operator of a well to which this section
applies is entitled to petition the district for a delay in the
effective date of any district action that would reduce or curtail
production from a well or limit the groundwater production rate of a
well to an amount that is less than:
(1) the maximum annual amount of withdrawal as of
September 1, 2014, authorized by the permit, regardless of whether
the permit was issued by the district or the Railroad Commission of
Texas; or
(2) the maximum annual historical amount of withdrawal
recorded before September 1, 2014, if the well was in operation on
that date and no permit from any entity was required for the
operation of the well.
(c) The owner or operator of a well subject to this section
may petition for a delay described by Subsection (b). After receipt
of the petition, the district shall hold a public hearing and after
the hearing shall make a final determination as to whether the
proposed reduction or curtailment in groundwater production would
threaten public health or safety or the reliability of the electric
grid. The proposed reduction or curtailment for which the owner or
operator is seeking a delay may not take effect until the district
has a made a final determination under this subsection.
(d) If the district determines under Subsection (c) that a
proposed reduction or curtailment in groundwater production would
threaten public health or safety or the reliability of the electric
grid, the district shall delay the effective date of the reduction
or curtailment to a date not earlier than seven years after the date
that the final determination is made.
(e) If an owner or operator receives a delay under
Subsection (d), the owner or operator may petition the district at
any time before the delayed effective date of the proposed
reduction or curtailment to delay the effective date a second time
for an additional three years as provided by this subsection. After
receiving the petition, the district shall hold a public hearing
and after the hearing shall make a final determination to approve
the additional three-year delay if the district determines that:
(1) the owner or operator has engaged in good faith
efforts to identify and begin implementing strategies to comply
with the proposed reduction or curtailment; and
(2) implementation of the proposed reduction or
curtailment in groundwater production on the date set under
Subsection (d) would threaten public health or safety or the
reliability of the electric grid.
(f) In making a final determination described by Subsection
(c), (d), or (e), the district shall request, obtain, and give great
weight to an opinion issued by the Public Utility Commission of
Texas.
SECTION 2. The changes in law made by this Act apply only to
a reduction or curtailment in groundwater production ordered by a
groundwater conservation district on or after the effective date of
this Act. A reduction or curtailment in groundwater production
ordered by a groundwater conservation district before the effective
date of this Act is governed by the law in effect at the time the
reduction or curtailment in groundwater production was ordered, and
the former law is continued in effect for that purpose.
SECTION 3. 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.