Texas 2015 - 84th Regular

Texas Senate Bill SB1738 Compare Versions

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1	1	By: Hinojosa S.B. No. 1738
2	2	(In the Senate - Filed March 13, 2015; March 24, 2015, read
3	3	first time and referred to Committee on Agriculture, Water, and
4	4	Rural Affairs; April 22, 2015, reported adversely, with favorable
5	5	Committee Substitute by the following vote: Yeas 7, Nays 0;
6	6	April 22, 2015, sent to printer.)
7	7	Click here to see the committee vote
8	8	COMMITTEE SUBSTITUTE FOR S.B. No. 1738 By: Hinojosa
9	9
10	10
11	11	A BILL TO BE ENTITLED
12	12	AN ACT
13	13	relating to the diversion and use of marine seawater, including the
14	14	development of marine seawater desalination projects, integrated
15	15	marine seawater desalination and power projects, and facilities for
16	16	the storage, conveyance, and delivery of desalinated marine
17	17	seawater.
18	18	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
19	19	SECTION 1. (a) With this state facing an ongoing drought,
20	20	continuing population growth, and the need to remain economically
21	21	competitive, every effort must be made to secure and develop
22	22	plentiful and cost-effective water supplies to meet the
23	23	ever-increasing demand for water. The purpose of this Act is to
24	24	expedite the development of marine seawater from the Gulf of Mexico
25	25	and add this new source of water to this state's existing surface
26	26	water and groundwater resources in order to bring into balance the
27	27	supply of and demand for water in this state.
28	28	(b) Currently, the projected long-term water needs of this
29	29	state far exceed the firm supplies that are available and that can
30	30	reasonably be made available from freshwater sources within this
31	31	state. The legislature recognizes the importance of providing for
32	32	this state's current and future water needs at all times, including
33	33	during severe droughts.
34	34	(c) In this state, marine seawater is a potential new source
35	35	of public drinking water. This state has access to over 600
36	36	quadrillion gallons of marine seawater from the Gulf of Mexico. The
37	37	purpose of this Act is to streamline the process for and reduce the
38	38	cost and regulation of marine seawater desalination.
39	39	(d) The legislature finds that marine seawater desalination
40	40	projects should be cost-effectively and timely developed,
41	41	concurrently with other water planning solutions, to help this
42	42	state meet its current and future firm water needs.
43	43	(e) The legislature finds that it is necessary and
44	44	appropriate to grant certain rights or authority and provide for
45	45	expedited and streamlined permitting for marine seawater
46	46	desalination projects and integrated marine seawater desalination
47	47	and power projects in order to avoid unnecessary costs, delays, and
48	48	uncertainty and thereby help justify the investment of significant
49	49	resources of this state in the development of such projects.
50	50	SECTION 2. Section 11.002, Water Code, is amended by adding
51	51	Subdivision (22) to read as follows:
52	52	(22) "Marine seawater" has the meaning assigned by
53	53	Section 18.001.
54	54	SECTION 3. Section 11.121, Water Code, is amended to read as
55	55	follows:
56	56	Sec. 11.121. PERMIT REQUIRED. Except as provided in
57	57	Sections 11.142, 11.1421, [and] 11.1422, and 11.1423 [of this
58	58	code], no person may appropriate any state water or begin
59	59	construction of any work designed for the storage, taking, or
60	60	diversion of water without first obtaining a permit from the
61	61	commission to make the appropriation.
62	62	SECTION 4. Subchapter D, Chapter 11, Water Code, is amended
63	63	by adding Section 11.1423 to read as follows:
64	64	Sec. 11.1423. PERMIT EXEMPTION FOR USE BY WATER SUPPLY
65	65	ENTITY OF MARINE SEAWATER. (a) In this section, "water supply
66	66	entity" includes:
67	67	(1) a retail public utility as defined by Section
68	68	13.002;
69	69	(2) a wholesale water supplier; or
70	70	(3) an irrigation district operating under Chapter 58.
71	71	(b) Without obtaining a permit, a water supply entity may
72	72	divert marine seawater from the Gulf of Mexico at one or more points
73	73	of diversion located at least three miles from the coast of this
74	74	state and use the seawater diverted for any beneficial purpose.
75	75	(c) Before a water supply entity first diverts marine
76	76	seawater under Subsection (b), the entity must give notice to the
77	77	commission of the proposed diversion.
78	78	(d) A water supply entity must treat marine seawater so that
79	79	it meets the water quality level of the receiving stream before the
80	80	entity may put the water into a stream under an authorization
81	81	granted under Section 11.042.
82	82	(e) This section does not prohibit a water supply entity
83	83	from conveying water under this section in any other manner
84	84	authorized by law, including through the use of facilities owned or
85	85	operated by the state if authorized by the state.
86	86	SECTION 5. Section 16.053(e), Water Code, is amended to
87	87	read as follows:
88	88	(e) Each regional water planning group shall submit to the
89	89	development board a regional water plan that:
90	90	(1) is consistent with the guidance principles for the
91	91	state water plan adopted by the development board under Section
92	92	16.051(d);
93	93	(2) provides information based on data provided or
94	94	approved by the development board in a format consistent with the
95	95	guidelines provided by the development board under Subsection (d);
96	96	(2-a) is consistent with the desired future conditions
97	97	adopted under Section 36.108 for the relevant aquifers located in
98	98	the regional water planning area as of the date the board most
99	99	recently adopted a state water plan under Section 16.051 or, at the
100	100	option of the regional water planning group, established subsequent
101	101	to the adoption of the most recent plan;
102	102	(3) identifies:
103	103	(A) each source of water supply in the regional
104	104	water planning area, including information supplied by the
105	105	executive administrator on the amount of modeled available
106	106	groundwater in accordance with the guidelines provided by the
107	107	development board under Subsections (d) and (f);
108	108	(B) factors specific to each source of water
109	109	supply to be considered in determining whether to initiate a
110	110	drought response;
111	111	(C) actions to be taken as part of the response;
112	112	and
113	113	(D) existing major water infrastructure
114	114	facilities that may be used for interconnections in the event of an
115	115	emergency shortage of water;
116	116	(4) has specific provisions for water management
117	117	strategies to be used during a drought of record;
118	118	(5) includes but is not limited to consideration of
119	119	the following:
120	120	(A) any existing water or drought planning
121	121	efforts addressing all or a portion of the region;
122	122	(B) approved groundwater conservation district
123	123	management plans and other plans submitted under Section 16.054;
124	124	(C) all potentially feasible water management
125	125	strategies, including but not limited to improved conservation,
126	126	reuse, and management of existing water supplies, conjunctive use,
127	127	acquisition of available existing water supplies, and development
128	128	of new water supplies;
129	129	(D) protection of existing water rights in the
130	130	region;
131	131	(E) opportunities for and the benefits of
132	132	developing regional water supply facilities or providing regional
133	133	management of water supply facilities;
134	134	(F) appropriate provision for environmental
135	135	water needs and for the effect of upstream development on the bays,
136	136	estuaries, and arms of the Gulf of Mexico and the effect of plans on
137	137	navigation;
138	138	(G) provisions in Section 11.085(k)(1) if
139	139	interbasin transfers are contemplated;
140	140	(H) voluntary transfer of water within the region
141	141	using, but not limited to, regional water banks, sales, leases,
142	142	options, subordination agreements, and financing agreements; [and]
143	143	(I) emergency transfer of water under Section
144	144	11.139, including information on the part of each permit, certified
145	145	filing, or certificate of adjudication for nonmunicipal use in the
146	146	region that may be transferred without causing unreasonable damage
147	147	to the property of the nonmunicipal water rights holder; and
148	148	(J) opportunities for and the benefits of
149	149	developing large-scale desalination facilities for marine
150	150	seawater, as defined by Section 18.001, that serve local or
151	151	regional entities;
152	152	(6) identifies river and stream segments of unique
153	153	ecological value and sites of unique value for the construction of
154	154	reservoirs that the regional water planning group recommends for
155	155	protection under Section 16.051;
156	156	(7) assesses the impact of the plan on unique river and
157	157	stream segments identified in Subdivision (6) if the regional water
158	158	planning group or the legislature determines that a site of unique
159	159	ecological value exists;
160	160	(8) describes the impact of proposed water projects on
161	161	water quality; and
162	162	(9) includes information on:
163	163	(A) projected water use and conservation in the
164	164	regional water planning area; and
165	165	(B) the implementation of state and regional
166	166	water plan projects, including water conservation strategies,
167	167	necessary to meet the state's projected water demands.
168	168	SECTION 6. Subtitle C, Title 2, Water Code, is amended by
169	169	adding Chapter 18 to read as follows:
170	170	CHAPTER 18. MARINE SEAWATER DESALINATION PROJECTS AND INTEGRATED
171	171	MARINE SEAWATER DESALINATION AND POWER PROJECTS
172	172	Sec. 18.001. DEFINITIONS. In this chapter:
173	173	(1) "Board" means the Texas Water Development Board.
174	174	(2) "Commission" means the Texas Commission on
175	175	Environmental Quality.
176	176	(3) "Land office" means the General Land Office.
177	177	(4) "Marine seawater" means water that is derived from
178	178	the Gulf of Mexico.
179	179	(5) "Political subdivision" means a municipality,
180	180	county, or other body politic or corporate of this state, including
181	181	a district or authority created under Section 52, Article III, or
182	182	Section 59, Article XVI, Texas Constitution.
183	183	(6) "Project" means:
184	184	(A) a marine seawater desalination project;
185	185	(B) an integrated marine seawater desalination
186	186	and power project; or
187	187	(C) a facility for the storage, conveyance, and
188	188	delivery of desalinated marine seawater.
189	189	Sec. 18.002. POWERS AND DUTIES OF BOARD. (a) The board has
190	190	general jurisdiction over the provision of state financial
191	191	assistance for projects.
192	192	(b) The board may provide financial assistance for all or
193	193	part of a project from any source of funding that may be available
194	194	to the board for that purpose, including:
195	195	(1) the state water implementation fund for Texas, in
196	196	accordance with Subchapter G, Chapter 15; and
197	197	(2) the state water implementation revenue fund for
198	198	Texas, in accordance with Subchapter H, Chapter 15.
199	199	(c) If the board determines that a project for which
200	200	financial assistance from the board is sought should be developed,
201	201	the board shall pursue all available alternatives in order to
202	202	provide the necessary financial assistance.
203	203	Sec. 18.003. POWERS AND DUTIES OF COMMISSION. (a) The
204	204	commission has general jurisdiction over the permitting of
205	205	projects.
206	206	(b) The commission shall consult with the land office,
207	207	School Land Board, board, Parks and Wildlife Department, Public
208	208	Utility Commission of Texas, or Electric Reliability Council of
209	209	Texas over any aspect of a project that also falls within the
210	210	general jurisdiction of that agency or entity.
211	211	(c) The commission shall provide notice and an opportunity
212	212	for the submission of written comment, but is not required to
213	213	provide an opportunity for a contested case hearing, regarding
214	214	commission actions relating to a permit for a project.
215	215	Sec. 18.004. POWERS AND DUTIES OF POLITICAL SUBDIVISIONS.
216	216	(a) A political subdivision may:
217	217	(1) own all or any interest in a project; and
218	218	(2) sell water produced or power generated by a
219	219	project.
220	220	(b) Without obtaining a water right from the commission, a
221	221	political subdivision may:
222	222	(1) divert marine seawater from the Gulf of Mexico at
223	223	one or more points of diversion located at least three miles from
224	224	the coast of this state;
225	225	(2) desalinate marine seawater;
226	226	(3) use diverted marine seawater for power plant
227	227	cooling or any other beneficial use before desalinating the marine
228	228	seawater;
229	229	(4) use desalinated marine seawater in this state for
230	230	any beneficial purpose; and
231	231	(5) return unconsumed marine seawater or concentrated
232	232	saline water resulting from the process for desalinating marine
233	233	seawater to the Gulf of Mexico at one or more points of return.
234	234	(c) This subsection applies only to a project to which
235	235	Subsection (b) applies. The commission may not limit:
236	236	(1) the number of points of diversion or the rate of
237	237	diversion of marine seawater; or
238	238	(2) the number of points of return or the rate of
239	239	return of unconsumed marine seawater or concentrated saline water
240	240	resulting from the process for desalinating marine seawater.
241	241	(d) Before beginning construction of an intake or return
242	242	facility for a project, a political subdivision must obtain the
243	243	approval of the land office of the location of the point of intake
244	244	or return and the plans and specifications for the facility if the
245	245	facility will be located on state land. The process for obtaining
246	246	the approval of the land office is not subject to the requirements
247	247	relating to a contested case hearing under any statute or rule,
248	248	including this chapter, another chapter of this code, Chapter 33,
249	249	Natural Resources Code, or Subchapters C-G, Chapter 2001,
250	250	Government Code.
251	251	(e) Before a political subdivision first diverts marine
252	252	seawater under Subsection (b), the political subdivision must give
253	253	notice to the commission of the proposed diversion.
254	254	(f) A political subdivision may assign the rights granted by
255	255	this section to the owner or operator of a project.
256	256	Sec. 18.005. EXPEDITED PROCESSING OF AND ACTION ON
257	257	APPLICATIONS. (a) This section applies to each application or
258	258	request for a permit or other authorization, contract, lease,
259	259	easement, or grant of an interest in property submitted to a state
260	260	or local governmental entity for a project, including an
261	261	application submitted to:
262	262	(1) the commission for a permit or authorization under
263	263	Chapter 26 of this code or Chapter 382, Health and Safety Code; or
264	264	(2) the School Land Board to acquire rights in coastal
265	265	public land under Chapter 33, Natural Resources Code.
266	266	(b) A governmental entity to which an application or request
267	267	is submitted shall expedite and streamline to the extent possible
268	268	the processing of and action on the application or request.
269	269	(c) A governmental entity's processing of and action on an
270	270	application or request submitted to the governmental entity is not
271	271	subject to the requirements relating to a contested case hearing
272	272	under any statute or rule, including this chapter, another chapter
273	273	of this code, Chapter 33, Natural Resources Code, or Subchapters
274	274	C-G, Chapter 2001, Government Code.
275	275	SECTION 7. Section 341.001, Health and Safety Code, is
276	276	amended by adding Subdivisions (2-a) and (4-a) to read as follows:
277	277	(2-a) "Desalination facility" means a facility used for
278	278	the treatment of marine seawater to remove dissolved mineral salts
279	279	and other dissolved solids.
280	280	(4-a) "Marine seawater" has the meaning assigned by
281	281	Section 18.001, Water Code.
282	282	SECTION 8. Subchapter C, Chapter 341, Health and Safety
283	283	Code, is amended by adding Section 341.03595 to read as follows:
284	284	Sec. 341.03595. DESALINATION OF WATER FOR DRINKING WATER.
285	285	(a) This section applies only to a desalination facility that is
286	286	intended to produce water for the public drinking water supply.
287	287	This section does not apply to a desalination facility used to
288	288	produce nonpotable water.
289	289	(b) The commission shall adopt rules to:
290	290	(1) allow water treated by a desalination facility to
291	291	be used as public drinking water; and
292	292	(2) ensure that water treated by a desalination
293	293	facility meets the requirements of Section 341.031 and rules
294	294	adopted under that section.
295	295	(c) A person may not begin construction of a desalination
296	296	facility unless the commission approves in writing the plans and
297	297	specifications for the facility.
298	298	(d) A person may not begin construction of a desalination
299	299	facility that treats marine seawater for the purpose of removing
300	300	primary or secondary drinking water contaminants unless the
301	301	commission approves in writing a report containing one or more of
302	302	the following:
303	303	(1) a computer model acceptable to the commission;
304	304	(2) a pilot study with a minimum 40-day run duration
305	305	without treatment intervention to meet federal and state safe
306	306	drinking water standards;
307	307	(3) information from a similar system installed at
308	308	another desalination facility that treats source water of a similar
309	309	or lower quality; or
310	310	(4) a full-scale verification protocol with a minimum
311	311	40-day run duration without treatment intervention to meet federal
312	312	and state safe drinking water standards.
313	313	(e) If a full-scale verification protocol report is
314	314	approved, a person may not send water to a public water distribution
315	315	system without a full-scale verification study:
316	316	(1) completed after construction; and
317	317	(2) approved by the commission.
318	318	(f) Not later than the 100th day after the date the
319	319	commission receives the report for a proposed desalination
320	320	facility, the commission shall review the report and issue an
321	321	exception response letter that may contain conditions for approval.
322	322	(g) Not later than the 60th day after the date the
323	323	commission receives the plans and specifications for a proposed
324	324	desalination facility, the commission shall review the plans and
325	325	specifications and issue a response letter that may contain
326	326	conditions for approval.
327	327	(h) A person violates this section if the person fails to
328	328	meet a condition for approval in a letter issued to the person under
329	329	Subsection (f) or (g).
330	330	SECTION 9. Section 16.060, Water Code, is repealed.
331	331	SECTION 10. This Act takes effect immediately if it
332	332	receives a vote of two-thirds of all the members elected to each
333	333	house, as provided by Section 39, Article III, Texas Constitution.
334	334	If this Act does not receive the vote necessary for immediate
335	335	effect, this Act takes effect September 1, 2015.
336	336	* * * * *