Texas 2015 - 84th Regular

Texas House Bill HB836 Latest Draft

Bill / Introduced Version Filed 01/22/2015

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                            By: Larson H.B. No. 836


 A BILL TO BE ENTITLED
 AN ACT
 relating to the development of brackish groundwater.
 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 SECTION 1.  The legislature finds that the state will
 benefit from the encouragement of the use of brackish groundwater
 resources to help supply the water demands of the state.
 SECTION 2.  Section 16.012(b), Water Code, is amended to
 read as follows:
 (b)  The executive administrator shall:
 (1)  determine suitable locations for future water
 facilities, including reservoir sites;
 (2)  determine suitable, cost-effective water supply
 alternatives on a regional basis, including voluntary means of
 encouraging aggressive water conservation;
 (3)  locate land best suited for irrigation;
 (4)  make estimates of the cost of proposed irrigation
 works and the improvement of reservoir sites;
 (5)  examine and survey reservoir sites;
 (6)  monitor the effects of fresh water inflows upon
 the bays and estuaries of Texas;
 (7)  monitor instream flows;
 (8)  lead a statewide effort, in coordination with
 federal, state, and local governments, institutions of higher
 education, and other interested parties, to develop a network for
 collecting and disseminating water resource-related information
 that is sufficient to support assessment of ambient water
 conditions statewide;
 (9)  make recommendations for optimizing the
 efficiency and effectiveness of water resource data collection and
 dissemination as necessary to ensure that basic water resource data
 are maintained and available for Texas; and
 (10)  study groundwater resources to identify areas
 suitable for designation as brackish groundwater production zones;
 and
 (11)  make basic data and summary information developed
 under this subsection accessible to state agencies and other
 interested persons.
 SECTION 3.  Section 16.012, Water Code, is amended by
 amending Subsection (l) and adding Subsections (o) through (q) to
 read as follows:
 (l)  The executive administrator shall obtain or develop
 groundwater availability models for major and minor aquifers in
 coordination with groundwater conservation districts and regional
 water planning groups created under Section 16.053 that overlie the
 aquifers.  Modeling of major aquifers shall be completed not later
 than October 1, 2004.  On completing a groundwater availability
 model for an aquifer, the executive administrator shall provide the
 model to each groundwater conservation district and each regional
 water planning group created under Section 16.053 overlying that
 aquifer.  If the executive administrator updates a groundwater
 availability model, the executive administrator shall consider
 expanding the groundwater availability model to adequately address
 groundwater contained in designated brackish groundwater zones.
 (o)  The executive administrator shall obtain or develop a
 series of regional maps and supporting documentation that
 delineates areas of groundwater resources as follows:
 (1)  areas of groundwater resources with average total
 dissolved solid levels greater than 3,000 milligrams per liter
 that, if subjected to continuous appreciable pumping over a period
 of 30 years, would not result in unreasonable negative impacts to
 groundwater resources described by Section 36.501(b); and
 (2)  areas of groundwater resources with average total
 dissolved solid levels between 1,000 and 3,000 milligrams per liter
 that, if subjected to continuous appreciable pumping over a period
 of 30 years, would not result in unreasonable negative impacts to
 groundwater resources described by Section 36.501(b).
 (p)  The regional maps described under Subsection (o) shall
 be developed in coordination with groundwater conservation
 districts and regional water planning groups that overlie the
 groundwater resources in the area. The regional maps shall be
 completed not later than October 1, 2019.  On completing a regional
 map and its supporting documentation, the executive administrator
 shall provide the map to each groundwater conservation district and
 each regional water planning group in the area of the map.
 (q)  The executive administrator shall conduct a review and
 submit findings to the 85th Texas Legislature in the board's
 biennial report required by Section 6.156 regarding existing
 groundwater availability models developed as required by Section
 16.012(l) documenting the extent, if any, of brackish groundwater
 resources included in current models and areas of significant
 groundwater resources for which no groundwater availability model
 currently exists.
 SECTION 4.  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
 designating local or regional brackish groundwater production
 zones;
 (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 5.  Section 16.060, Water Code, is amended by
 amending Subsections (a) and (b) and adding Subsection (d) to read
 as follows:
 (a)  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 groundwater
 desalination in the state.
 (b)  The board shall prepare a biennial progress report on
 the implementation of seawater or groundwater 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 groundwater desalination during the
 preceding biennium;
 (2)  identification and evaluation of research,
 regulatory, technical, and financial impediments to the
 implementation of seawater or groundwater desalination projects;
 (3)  evaluation of the role the state should play in
 furthering the development of large-scale seawater or groundwater
 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.
 SECTION 6.  Section 36.001, Water Code, is amended by adding
 a new Subdivision (17) to read as follows:
 (17)  "Brackish groundwater production zone" means a
 zone designated by a district or the Texas Water Development Board
 in accordance with Subchapter O.
 SECTION 7.  Section 36.1071(a), Water Code, is amended to
 read as follows:
 Sec. 36.1071.  MANAGEMENT PLAN.  (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
 (8)  promoting the development and use of groundwater
 in brackish groundwater production zones; and
 (9)  addressing the desired future conditions adopted
 by the district under Section 36.108.
 SECTION 8.  Section 36.108, Water Code, is amended by
 amending Subsections (d), (d-1), and (d-3) to read as follows:
 (d)  Not later than September 1, 2010, and every five years
 thereafter, the districts shall consider groundwater availability
 models and other data or information for the management area and
 shall propose for adoption desired future conditions for the
 relevant aquifers within the management area. Before voting on the
 proposed desired future conditions of the aquifers under Subsection
 (d-2), the districts shall consider:
 (1)  aquifer uses or conditions within the management
 area, including conditions that differ substantially from one
 geographic area to another;
 (2)  the water supply needs and water management
 strategies included in the state water plan;
 (3)  hydrological conditions, including for each
 aquifer in the management area the total estimated recoverable
 storage as provided by the executive administrator, and the average
 annual recharge, inflows, and discharge;
 (4)  other environmental impacts, including impacts on
 spring flow and other interactions between groundwater and surface
 water;
 (5)  the impact on subsidence;
 (6)  socioeconomic impacts reasonably expected to
 occur;
 (7)  the impact on the interests and rights in private
 property, including ownership and the rights of management area
 landowners and their lessees and assigns in groundwater as
 recognized under Section 36.002;
 (8)  the impact on existing and potential brackish
 groundwater production zones;
 (9)  the feasibility of achieving the desired future
 condition; and
 (10)  any other information relevant to the specific
 desired future conditions.
 (d-1)  The districts may establish different desired future
 conditions for:
 (1)  each aquifer, subdivision of an aquifer, or
 geologic strata located in whole or in part within the boundaries of
 the management area; or
 (2)  each geographic area overlying an aquifer in whole
 or in part or subdivision of an aquifer within the boundaries of the
 management area; or
 (3)  brackish groundwater production zones.
 (d-3)  After the earlier of the date on which all the
 districts have submitted their district summaries or the expiration
 of the public comment period under Subsection (d-2), the district
 representatives shall reconvene to review the reports, consider any
 district's suggested revisions to the proposed desired future
 conditions, and finally adopt the desired future conditions for the
 management area. The desired future conditions must be adopted as a
 resolution by a two-thirds vote of all the district
 representatives. The district representatives shall produce a
 desired future conditions explanatory report for the management
 area and submit to the development board and each district in the
 management area proof that notice was posted for the joint planning
 meeting, a copy of the resolution, and a copy of the explanatory
 report. The report must:
 (1)  identify each desired future condition;
 (2)  provide the policy and technical justifications
 for each desired future condition;
 (3)  include documentation that the factors under
 Subsection (d) were considered by the districts and a discussion of
 how the adopted desired future conditions impact each factor;
 (4)  list other desired future condition options
 considered, if any, and the reasons why those options were not
 adopted; and
 (5)  discuss, if applicable, how the desired future
 conditions promote the use of groundwater from brackish groundwater
 production zones; and
 (6)  discuss reasons why recommendations made by
 advisory committees and relevant public comments received by the
 districts were or were not incorporated into the desired future
 conditions.
 SECTION 9.  Section 36.1132(b), Water Code, is amended to
 read as follows:
 Sec. 36.1132.  PERMITS BASED ON MODELED AVAILABLE
 GROUNDWATER.
 (b)  In issuing permits, the district shall manage total
 groundwater production on a long-term basis to achieve an
 applicable desired future condition and consider:
 (1)  the modeled available groundwater determined by
 the executive administrator;
 (2)  the executive administrator's estimate of the
 current and projected amount of groundwater produced under
 exemptions granted by district rules and Section 36.117;
 (3)  the amount of groundwater authorized under permits
 previously issued by the district;
 (4)  a reasonable estimate of the amount of groundwater
 that is actually produced under permits issued by the district; and
 (5)  yearly precipitation and production patterns; and
 (6)  the extent to which the total volume of water
 authorized to be produced under permits issued by the district may
 be increased because of the amount of groundwater production that
 will occur from within brackish groundwater production zones while
 still achieving an applicable desired future condition.
 SECTION 10.  Section 36.402, Water Code, is amended to read
 as follows:
 Sec. 36.402.  APPLICABILITY. Except as provided by Section
 36.416 and under Subchapter O, this subchapter applies to the
 notice and hearing process used by a district for permit and permit
 amendment applications.
 SECTION 11.  Chapter 36, Water Code, is amended to add
 Subchapter O, as follows:
 SUBCHAPTER O. BRACKISH GROUNDWATER PRODUCTION ZONES
 Sec. 36.501.  APPLICABILITY.  (a) Except as provided in
 subsection (b), a brackish groundwater production zone may be
 designated in any groundwater reservoir or subdivision of a
 groundwater reservoir in the state.
 (b)  No brackish groundwater production zone may be
 designated in the following:
 (1)  any area of a groundwater reservoir or subdivision
 of a groundwater reservoir with average total dissolved solids
 levels of 1,000 milligrams per liter or less, at the time of
 submission of an administratively complete petition under Section
 36.502;
 (2)  any area of a groundwater reservoir or subdivision
 of a groundwater reservoir with average total dissolved solids
 levels of more than 1,000 milligrams per liter that is serving as a
 significant source of water supply for municipal, domestic, or
 agricultural purposes, other than production from another brackish
 groundwater production zone, at the time of submission of an
 administratively complete petition under Section 36.502;
 (3)  any area of the Edwards Aquifer subject to the
 jurisdiction of the Edwards Aquifer Authority; or
 (4)  any area within the boundaries of the Barton
 Springs-Edwards Aquifer Conservation District, the
 Harris-Galveston Subsidence District, or the Fort Bend Subsidence
 District.
 (c)  The average total dissolved solids levels provided in
 Subsection (b)(1) and (2) shall be determined by:
 (1)  using the methodologies included in the guidance
 documents developed by the Texas Water Development Board under
 Section 36.503; or
 (2)  a process agreed to in writing by the petitioner
 and the district in which the project is located.
 Sec. 36.502.  DESIGNATION OF ZONE BY PETITION.  (a) A person
 with a legally defined interest in the groundwater to be included
 in a brackish groundwater production zone may petition the district
 to designate a brackish groundwater production zone in a
 groundwater reservoir or subdivision of a reservoir, or in a
 specific area of a groundwater reservoir or subdivision of a
 reservoir.
 (b)  The district shall designate a zone if the petitioner
 demonstrates that:
 (1)  the production of groundwater proposed in the
 petition will not cause unreasonable negative impacts:
 (A)  to the quality or quantity of groundwater
 available for permitted and exempt production in any area of a
 groundwater reservoir or subdivision of a groundwater reservoir
 described under Section 36.501(b);
 (B)  to existing wells or well systems; or
 (C)  on the achievement of applicable existing
 desired future conditions; and
 (2)  a monitoring plan described under Section
 36.504(a)(4) is sufficient to monitor the impacts described under
 Subdivision (1) of this subsection.
 (c)  Notwithstanding subsection (b), a district may
 designate a brackish groundwater production zone if the petitioner
 demonstrates that, while there are unreasonable negative impacts
 described under Subsection (b)(1) or there are existing wells that
 may be unreasonably negatively impacted by production from the
 zone, the mitigation plan, if any, submitted under Section 36.504
 as part of the petition will reasonably offset the impacts.
 (d)  A brackish groundwater production zone designation
 created under this subsection shall be consistent with the rights
 recognized under Section 36.002.
 Section 36.503.  TECHNICAL GUIDANCE DOCUMENTS DEVELOPED BY
 BOARD.  The Texas Water Development Board, with input from
 districts and interested stakeholders, shall develop guidance
 documents addressing the technical contents of petitions to
 designate brackish groundwater production zones.  The guidance
 documents shall include a description of the technical
 information, including hydrogeologic studies, modeling, or other
 applicable geophysical and geochemical data regarding properties
 of the groundwater reservoirs and subdivisions of groundwater
 reservoirs in the area of a proposed zone, and monitoring and
 reporting protocols that will be required as part of a petition to
 make the demonstrations set forth under Section 36.502(b) and (c),
 and guidance on how to determine average total dissolved solids
 levels in an area of a groundwater reservoir or subdivision of a
 groundwater reservoir. The guidance documents shall be used by
 petitioners in developing petitions and by districts and the Texas
 Water Development Board in reviewing petitions.
 Sec. 36.504.  CONTENTS OF A PETITION.  A petition for the
 designation of a brackish groundwater production zone shall include
 the following:
 (1)  a description of:
 (A)  the location of the area overlying the zone
 and a map that includes sufficient details to enable a property
 owner to determine whether his property is located within the
 associated surface acreage proposed to be included in the zone
 based on:
 (1)  a metes and bounds survey certified by a
 licensed state land surveyor or a registered professional land
 surveyor;
 (2)  the Texas State Plane Coordinate
 System; or
 (3)  verifiable landmarks, including a road,
 creek, or railroad line;
 (B)  the groundwater reservoir or subdivision of a
 groundwater reservoir in which the zone will be located; and
 (C)  the petitioner's rights to produce
 groundwater in the zone;
 (2)  the approximate locations, production rates,
 depths of well screens, total annual production, and total duration
 of production of wells to be used for production of groundwater
 from the zone;
 (3)  technical information consistent with the
 guidance documents developed under Subsection (b) sufficient to
 make the demonstrations set forth under Section 36.502(b),
 including the scope and degree of impact, due to projected
 production, on areas of groundwater reservoirs and subdivisions of
 groundwater reservoirs locate inside and outside the zone described
 under Section 36.501(b);
 (4)  a plan for monitoring and reporting on a periodic
 basis the quality and quantity of groundwater in the proposed zone
 and adjacent areas of groundwater reservoirs and subdivisions of
 groundwater reservoirs described under Section 36.501(b);
 (5)  proposed mitigation plans to identify and mitigate
 impacts to existing well owners, if any, caused by the petitioner's
 production of groundwater from the zone; and
 (6)  if applicable, a description of the expected
 project financing term and estimated duration of the project that
 will be producing groundwater from the zone.
 Sec. 36.505.  PROCEDURE FOR DISTRICT REVIEW OF A PETITION.
 (a)  A petition to designate a brackish groundwater production zone
 shall be filed with the district with jurisdiction over the
 groundwater reservoir or subdivision of a groundwater reservoir
 proposed to be designated as a brackish groundwater production
 zone. A copy of the petition shall be filed with the Texas Water
 Development Board. Within 45 days after receipt of a petition, the
 district shall deem the petition administratively complete,
 provide the petitioner with notice of the deficiencies in the
 petition, or provide the petitioner with notice that the petition
 shall be considered for direct referral to the Texas Water
 Development Board.
 (b)  A district shall hold a hearing on a petition or on a
 request to directly refer the petition to the Texas Water
 Development Board. The notice and hearing shall be provided and
 conducted in the same manner as a rulemaking hearing under Section
 36.101, and the district shall require all hearing participants to
 register as described under Section 36.101(g). The executive
 administrator may, and at the request of the district or petitioner
 shall, participate in the hearing and provide technical comments
 for the benefit of the district, the petitioner, and the public
 regarding the petition and the designation of the zone in
 accordance with the provisions of this subchapter.
 (c)  The district board shall make a final ruling on a
 petition within 150 days of receipt of an administratively complete
 petition.
 (d)  A petition shall be deemed denied, without further
 action by a district, if the district fails to directly refer the
 petition to the Texas Water Development Board or make a final ruling
 on the petition in accordance with Section 36.505(c), unless
 otherwise agreed by the petitioner and district.
 Sec. 36.506.  DISTRICT ACTION ON PETITION; WHEN FINAL. (a) A
 district board may grant, modify, deny or directly refer a petition
 to the Texas Water Development Board by written order. Unless the
 written order directly refers the petition to the Texas Water
 Development Board, the order shall include the findings of the
 district board relevant to the determinations set forth under
 Section 36.502(b) and (c) and projected impacts of the proposed
 groundwater production from within the zone, including any
 projected impacts to the quality or quantity of groundwater in
 areas described under Section 36.501(b). Unless the written order
 directly refers the petition to the Texas Water Development Board,
 the board's order shall describe how the zone designation is
 consistent with the rights recognized in Section 36.002 or whether
 the zone designation does not impact the rights recognized in
 Section 36.002, and shall include the participant registration
 information obtained under Section 36.505(b).
 (b)  A decision by a district on a petition is final and
 appealable pursuant to Section 36.507 on the date of the district
 board's written order approving, modifying, or denying the
 petition.  The district shall not require a motion for rehearing on
 the board action as a prerequisite to filing an appeal under Section
 36.507.  A decision by a district on a petition that directly refers
 the petition to the Texas Water Development Board is final on the
 date of the district's written order, and the decision to directly
 refer the petition is not appealable.
 Sec. 36.507.  APPEAL OR DIRECT REFERRAL TO TEXAS WATER
 DEVELOPMENT BOARD.  (a) Within 30 days after the date of a district
 board's written order approving, modifying, denying or directly
 referring a petition, or 30 days after the date a petition is deemed
 denied under Section 36.505(d), the petitioner or any person with a
 legally defined interest in groundwater in the district who
 participated in the hearing may appeal the decision of the district
 board by filing a notice of appeal along with a copy of the petition
 as reviewed by the district board with the Texas Water Development
 Board.
 (b)  If a district enters an order directly referring a
 petition, the petitioner shall file the petition with the Texas
 Water Development Board. The executive administrator shall
 promptly review the petition and, within 30 days after receipt of a
 petition, the executive administrator shall declare the petition
 administratively complete, or provide the petitioner with notice of
 the deficiencies in the petition.
 (c)  The person filing the appeal, or the petitioner, in the
 case of direct referral, shall provide notice of the Texas Water
 Development Board's review of the petition by appeal or direct
 referral to the petitioner, if the district, and to each person that
 participated in the hearing as identified in the district's order
 under Section 36.506(a) or, if the petition was deemed denied and
 there is no district order, to each person who participated and
 registered at the hearing as required under Section 36.505(b).
 (d)  The Texas Water Development Board shall review the
 petition de novo. On direct referral, or on an appeal by the
 petitioner of the district board's modification or denial of the
 petition, the petitioner shall bear the burden of demonstrating
 that the petition meets the requirements of this subchapter for the
 designation of a zone. If a person other than the petitioner appeals
 the district board's denial of the petition and the petitioner does
 not appeal, the person shall bear the burden of demonstrating that
 the petition meets the requirements of this subchapter for the
 designation of a zone. If a person other than the petitioner
 appeals the district board's modification or approval of the
 petition, the person shall bear the burden of demonstrating that
 the petition as approved does not meet the requirements of this
 subchapter for the designation of a zone.
 (e)  The Texas Water Development Board's review of a petition
 under this section is considered a contested case under Chapter
 2001, Government Code. The executive administrator shall refer an
 appeal directly to the State Office of Administrative Hearings for
 a determination of parties and a contested case hearing. The Texas
 Water Development Board shall issue a final order granting,
 modifying, or denying the petition and including the information
 required of a written order under Section 36.506(a).
 (f)  Any party to a review under this section is entitled to
 judicial review of the Texas Water Development Board's final order
 under the substantial evidence rule.
 Sec. 36.508.  PETITION PROCESS FOR BRACKISH GROUNDWATER
 PRODUCTION ZONE LOCATED IN TWO OR MORE DISTRICTS. (a) A petition to
 designate a brackish groundwater production zone in an area that
 includes more than one district shall be filed with each district
 located over the proposed zone in the manner provided by Section
 36.502.
 (b)  The districts described under Subsection (a) shall:
 (1)  hold a joint hearing on a petition within 90 days
 of receipt of an administratively complete petition in the manner
 provided by Section 36.505;
 (2)  agree in writing that one district shall hold the
 hearing on the petition on behalf of all of the districts; or
 (3)  directly refer a petition to the Texas Water
 Development Board if at least one district adopts a written order
 directly referring the petition.
 (c)  A quorum of the board of directors of each district
 located over the proposed zone is required for a joint hearing under
 this section.
 (d)  The districts located over the proposed zone may enter
 into a cost-sharing agreement to address any technical,
 regulatory, legal, administrative or other issues associated with
 the petition.
 (e)  Each district located over the proposed zone shall
 provide notice of a hearing as provided by Section 36.505. If a
 district is holding a district board meeting at which a district
 board will consider a direct referral of a petition to the Texas
 Water Development Board, the district shall provide written notice
 of the district board meeting to all other districts located over
 the proposed zone and the Texas Water Development Board.
 (f)  The board of directors of each district located over the
 proposed zone shall make a final decision on the designation of the
 zone within 75 days of the date of the hearing conducted under
 Subsection (b), unless the petitioner and each participating
 district agree in writing on another date. A single written order
 that meets the requirements of Section 36.506 must be approved by
 the board of directors of each district located over the zone in
 order to designate a zone under this section. The failure of one or
 more of the districts to approve a single order under this
 subsection, or the approval and issuance of a single order by each
 district to approve, modify, or deny a petition under this
 subsection, may be appealed to the Texas Water Development Board in
 the manner described by Section 36.507.
 Sec. 36.509.  PERMITTING OF WELLS IN A BRACKISH GROUNDWATER
 PRODUCTION ZONE. (a) Except as specifically provided under this
 subchapter or otherwise provided in the zone designation order, a
 district may adopt rules regulating the drilling, equipping,
 completion, and spacing of wells, production of groundwater, or
 otherwise managing the groundwater resources located in a brackish
 groundwater production zone in any manner authorized under this
 chapter; provided, however, that such rules must not be in conflict
 with the findings of the order designating the zone. However, any
 rules related to well spacing for wells in the zone or limiting the
 rates or amounts of groundwater production from the zone are:
 (1)  not applicable to a permit applicant that was the
 petitioner for the designation of the zone unless the rules related
 to well spacing or production were in effect at the time of the
 designation of the zone; and
 (2)  not applicable to a permit applicant that was not
 the petitioner for the designation of the zone unless the rules
 related to well spacing or production were in effect at the time of
 receipt of the administratively complete permit application by such
 permit applicant.
 (b)  An application for a permit for a well in a brackish
 groundwater production zone shall be consistent with the findings
 in the written order designating the zone under Section 36.506 or
 36.507, as applicable, and the rules of the district as described
 under Subsection (a).
 (c)  The district may impose a reasonable fee under Section
 36.205 for processing an application under this section.
 (d)  A district shall act on an application for a permit for
 a well in a brackish groundwater production zone within 60 days of
 receipt of the application, or as otherwise agreed by the district
 and the petitioner.  The application shall be processed as an
 uncontested application under Subchapter M and shall not be subject
 to a contested case hearing, or may be processed as an application
 for which a hearing is not required under Section 36.114(b).
 (e)  Notwithstanding Section 36.113(d), a district shall
 grant an application for a permit for a well in a brackish
 groundwater production zone if the application is consistent with
 the order designating the zone under Section 36.506 or 36.507, as
 applicable, and the rules of the district as described under
 Subsection (a).
 (f)  A permit issued under this section may be amended
 pursuant to an application by the permittee if the permittee
 demonstrates that the changes to the permit are consistent with the
 written order designating the zone under Sections 36.506 or 36.507.
 A permit may be amended by the district pursuant to Section 36.514.
 Sec. 36.510.  CONTENTS OF A PERMIT IN A BRACKISH GROUNDWATER
 PRODUCTION ZONE.  (a) Permits shall authorize the drilling and
 production of water at locations, rates, and amounts that are
 consistent with the written order designating the brackish
 groundwater production zone, and the rules of the district as
 described under Section 36.509(a).
 (b)  Permits in a brackish groundwater production zone shall
 contain a permit term equal to the expected project financing term
 or estimated duration of production for the project contained in
 the zone designation, but no more than 30 years.
 (c)  Permits may require reasonable monitoring of the zone
 and adjacent areas of groundwater reservoirs and subdivisions of
 groundwater reservoirs consistent with the monitoring plan
 contained in the zone designation.
 (d)  Permits may require the filing of drilling logs, and
 periodic reports of withdrawals, aquifer levels, and other
 information from the monitoring plan.
 Sec. 36.511.  NON-APPLICABILITY OF SECTION 36.122 TO
 PRODUCTION; EXPORT FEES.  (a) The production from a well in a
 brackish groundwater production zone is not subject to Section
 36.122.
 (b)  Notwithstanding subsection (a), a district may impose a
 reasonable fee or surcharge under Section 36.122(e) for groundwater
 produced from a brackish groundwater production zone for use
 outside of a district's boundaries.
 Sec. 36.512.  RIGHTS OF LANDOWNER OVER BRACKISH GROUNDWATER
 PRODUCTION ZONE TO PRODUCE GROUNDWATER.  In implementing this
 subchapter, a district's actions shall be consistent with the
 rights recognized under Section 36.002.
 Sec. 36.513.  AMENDMENTS TO BRACKISH GROUNDWATER PRODUCTION
 ZONES.  (a) A brackish groundwater production zone designation
 under this subchapter may only be amended as provided by this
 section.
 (b)  A district may initiate an amendment to a brackish
 groundwater production zone to increase or decrease the rates or
 amounts of production of groundwater from the zone, to amend the
 boundaries of the zone, or to change a monitoring or mitigation plan
 applicable to the zone by providing notice and holding a hearing in
 the manner set forth under Section 36.505. A district that
 initiates an amendment to a zone shall bear the burden of proof in
 making the demonstrations required under Section 36.502 and this
 section.  If the district amendment proposes to decrease the rates
 or amounts of production of groundwater from the zone, the district
 must demonstrate that the actual impacts to groundwater resources
 from production within the zone exceed the projected impacts
 included in the written order issued under Section 36.506 or
 36.507, as applicable, that designated the zone, or that there is a
 changed desired future condition that is impacted by production
 from the zone.
 (c)  A person who holds a permit to produce groundwater from
 within the zone or any person with a legally defined interest in
 groundwater in the district may initiate an amendment to a zone to
 increase or decrease the rates or amounts of production of
 groundwater from the zone, to amend the boundaries of the zone, or
 to change a monitoring or mitigation plan applicable to the zone by
 filing a petition with the district in the manner prescribed for
 the original designation of a zone under Section 36.502. The
 petitioner shall bear the burden of proof in making the
 demonstrations required under Section 36.502 and this section. If
 the petition proposes to decrease the rates or amounts of
 production of groundwater from the zone, the petitioner must
 demonstrate that the actual impacts to groundwater resources from
 production within the zone exceed the projected impacts included
 in the written order issued under Section 36.506 or 36.507, as
 applicable, that designated the zone, or that there is a changed
 desired future condition that is impacted by production from the
 zone.
 (d)  A person who holds a permit to produce groundwater from
 within the zone or any person with a legally defined interest in
 groundwater in the district may appeal the decision of the district
 board to amend a zone under Subsections (b) or (c) to the Texas
 Water Development Board in the manner prescribed under Section
 36.507.
 Sec. 36.514.  EFFECT OF ZONE AMENDMENT ON EXISTING WELL
 PERMITS IN A ZONE. (a) A district may amend a well permit in a
 brackish groundwater production zone to change the amount or rate
 of production, or change the monitoring or mitigation plan, only if
 the designation of the zone is amended under Section 36.513 or by
 written agreement between the district and the permit holder.  Any
 amendment to a permit must be consistent with the amendment to the
 zone and may not reduce the rates or amounts of groundwater produced
 under the permit to a level lower than necessary to be consistent
 with the amended zone designation.
 (b)  A district may not amend an existing permit to produce
 groundwater from a zone because of a change in a desired future
 condition established under Section 36.108 that may be affected by
 production from the zone, even if the zone is amended under Section
 36.513.  In such instances, the district may reduce production
 through permit renewal after expiration of the original permit term
 and only to an amount consistent with achievement of the desired
 future condition and the applicable effective findings related to
 the zone designation at the time the permit expires.
 (c)  A district may not amend an existing permit to produce
 groundwater from a zone during the term of the permit because of an
 amendment to increase or decrease the size of a zone, or to
 undesignate a previously designated zone.
 (d)  During the pendency of an amendment to a brackish
 groundwater production zone, an existing permit holder may continue
 to produce groundwater under the terms of the existing permit until
 the permit has been amended after a final decision on the amendment
 to the zone has been issued by the district under Section 36.506,
 or if the decision of the district is appealed, until a final
 decision has been issued by the Texas Water Development Board under
 Section 36.507.
 (e)  A district may not by rule or an amendment to a rule
 reduce the amount or rate of groundwater that may be produced under
 an existing permit to produce groundwater from a zone in a manner
 that the district would not be authorized to reduce by permit
 amendment under this section.
 Sec. 36.515.  MANANAGEMENT OF BRACKISH GROUNDWATER BY A
 DISTRICT OR THROUGH JOINT PLANNING.  (a) Nothing in this subchapter
 shall be construed to prohibit:
 (1)  a district, on its own initiative, from managing
 the groundwater resources as authorized by this chapter in a
 groundwater reservoir, subdivision of a groundwater reservoir, or
 area of a groundwater reservoir or subdivision of a groundwater
 reservoir described by Section 36.501(b); or
 (2)  the establishment of a desired future condition
 through the joint planning process described under Section 36.108
 for a groundwater reservoir, subdivision of a groundwater
 reservoir, or area of a groundwater reservoir or subdivision of a
 groundwater reservoir described by Section 36.501(b).
 (b)  Notwithstanding Subsection (a), a person may petition a
 district or districts for the designation of a brackish groundwater
 production zone in the manner prescribed by this subchapter
 regardless of whether:
 (1)  a district is already managing all or part of the
 groundwater resources located in the proposed zone; or
 (2)  there is a desired future condition adopted for
 all or part of the groundwater resources located within the
 proposed zone.
 Sec. 36.516.  MANAGEMENT OF BRACKISH GROUNDWATER RESOURCES
 TO PROMOTE USE; EXPLORATION OR PRODUCTION OF HYDROCARBONS. (a)
 This subchapter does not affect the exemptions related to
 hydrocarbon activities as set forth under Section 36.117.
 (b)  In order to promote the utilization of brackish
 groundwater resources, a district may establish special rules that
 are less restrictive administratively or with regard to the amount
 of groundwater that can be produced from a groundwater reservoir,
 subdivision of a groundwater reservoir, or area of a groundwater
 reservoir or subdivision of a groundwater reservoir that contains
 brackish groundwater than the district's rules are with respect to
 the administration, management, and production of non-brackish
 groundwater resources for any beneficial purpose of use, including
 use related to activities associated with the drilling,
 exploration, or production of hydrocarbons.
 (c)  A district may not adopt rules under this section that
 are more restrictive on a person producing groundwater for
 activities related to the drilling, exploration, or production of
 hydrocarbons than on a person producing groundwater for other
 purposes of use, but may adopt rules that are less restrictive.
 Sec. 36.517.  MANDAMUS. A district court in in a court of
 competent jurisdiction in any county in which the district or any
 part of the district is located may issue a writ of mandamus to
 compel a district to perform the following:
 (a)  act on a petition for designation of a brackish
 groundwater production zone within the times frames established in
 Section 36.504; or
 (b)  issue a permit for a well located in a brackish
 groundwater production zone pursuant to Section 36.508 based on an
 application that is consistent with the designation of the
 brackish groundwater production zone and the rules of the district
 as described under Section 36.509(a).
 Sec. 36.518.  CONFLICTS WITH OTHER SUBCHAPTERS.  If a
 provision in this subchapter conflicts with a provision of another
 subchapter under this chapter, the provision in this subchapter
 prevails.
 SECTION 12.  No later than January 1, 2016, the Texas Water
 Development Board shall adopt rules to implement the changes in law
 to Chapters 16 and 36, Water Code, as amended by this Act.
 SECTION 13.  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.