By: Hunter, et al. (Senate Sponsor - Kolkhorst) H.B. No. 4097
(In the Senate - Received from the House May 12, 2015;
May 14, 2015, read first time and referred to Committee on
Agriculture, Water, and Rural Affairs; May 20, 2015, reported
adversely, with favorable Committee Substitute by the following
vote: Yeas 6, Nays 0; May 20, 2015, sent to printer.)
Click here to see the committee vote
COMMITTEE SUBSTITUTE FOR H.B. No. 4097 By: Kolkhorst
A BILL TO BE ENTITLED
AN ACT
relating to seawater desalination projects.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 39.203, Utilities Code, is amended by
adding Subsection (i) to read as follows:
(i) The commission, in cooperation with transmission and
distribution utilities and the ERCOT independent system operator,
shall study whether existing transmission and distribution
planning processes are sufficient to provide adequate
infrastructure for seawater desalination projects. If the
commission determines that statutory changes are needed to ensure
that adequate infrastructure is developed for projects of that
kind, the commission shall include recommendations in the report
required by Section 31.003.
SECTION 2. Subchapter Z, Chapter 39, Utilities Code, is
amended by adding Section 39.9055 to read as follows:
Sec. 39.9055. EXAMINATION OF DEMAND RESPONSE POTENTIAL OF
SEAWATER DESALINATION PROJECTS. The commission and the ERCOT
independent system operator shall study the potential for seawater
desalination projects to participate in existing demand response
opportunities in the ERCOT market. To the extent feasible, the
study shall determine whether the operational characteristics of
seawater desalination projects enable projects of that kind to
participate in ERCOT-operated ancillary services markets or other
competitively supplied demand response opportunities. The study
shall also determine the potential economic benefit to a seawater
desalination project if the project is able to reduce its demand
during peak pricing periods. The commission shall include the
results of the study in the report required by Section 31.003.
SECTION 3. Section 11.121, Water Code, is amended to read as
follows:
Sec. 11.121. PERMIT REQUIRED. Except as provided in
Sections 11.1405, 11.142, 11.1421, and 11.1422 [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 4. Subchapter D, Chapter 11, Water Code, is amended
by adding Section 11.1405 to read as follows:
Sec. 11.1405. DESALINATION OF SEAWATER FOR USE FOR
INDUSTRIAL PURPOSES. (a) The commission may issue a permit under
this section to authorize a diversion of state water from the Gulf
of Mexico or a bay or arm of the Gulf of Mexico for desalination and
use for industrial purposes 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 state water from the Gulf of Mexico
or a bay or arm of the Gulf of Mexico for desalination and use for
industrial purposes 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 issued under 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 for the purposes provided by this
section 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 for
the purposes provided by this section 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 permit application under this section must be
submitted as required by commission rule.
(e) The commission is not required to make a finding of
water availability for an application under this section.
(f) The commission shall evaluate whether any proposed
diversion under this section is consistent with any applicable
environmental flow standards established under Section 11.1471.
(g) The commission may include any provision in a permit
issued under this section that the commission considers necessary
to comply with the environmental flow standards established under
Section 11.1471.
(h) The commission shall adopt rules providing an expedited
procedure for acting on an application for a permit under
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.
SECTION 5. Subchapter B, Chapter 26, Water Code, is amended
by adding Section 26.0272 to read as follows:
Sec. 26.0272. PERMITS AUTHORIZING DISCHARGES FROM CERTAIN
SEAWATER DESALINATION FACILITIES. (a) This section applies only to
a facility that generates water treatment residuals from the
desalination of seawater solely for use as part of an industrial
process.
(b) The commission may issue a permit for the discharge of
water treatment residuals from the desalination of seawater into
the portion of the Gulf of Mexico inside the territorial limits of
the state.
(c) Before issuing a permit under this section, the
commission must evaluate the discharge of water treatment residuals
from the desalination of seawater into the Gulf of Mexico for
compliance with the state water quality standards adopted by the
commission, the requirements of the Texas Pollutant Discharge
Elimination System program, and applicable federal law.
(d) The commission may issue individual permits or a general
permit under this section. If the commission elects to issue
individual permits under this section, the commission must
establish procedures for the review of an application that, at a
minimum, comply with the requirements of Subchapter M, Chapter 5.
If the commission elects to issue a general permit under this
section, the commission must comply with the requirements of
Section 26.040.
SECTION 6. Section 27.021, Water Code, is amended by adding
Subsection (a-1) to read as follows:
(a-1) A permit issued under this section may authorize the
disposal of water treatment residuals produced by the desalination
of seawater.
SECTION 7. Section 27.025, Water Code, is amended by adding
Subsection (a-1) to read as follows:
(a-1) A general permit issued under this section may
authorize an injection well for the disposal of concentrate
produced by the desalination of seawater. The general permit must
include any requirements necessary to maintain delegation of the
federal underground injection control program administered by the
commission.
SECTION 8. 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.
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