Relating to an oil and gas production tax credit for oil and gas producers that provide produced water for recycling.
If enacted, HB3067 would bring a significant change to the regulation of produced water in Texas. The bill emphasizes the need for producers to present water with high total dissolved solids concentration (over 90,000 mg/L) for recycling. This stipulation is likely to streamline the quality control process for treated water, ensuring that recycled water meets standards for safe discharge into state waters. Additionally, the total amount of credits that can be claimed is capped at $25 million per state fiscal year, fostering a controlled yet encouraging economic environment for water recycling.
House Bill 3067 introduces a tax credit for oil and gas producers who supply produced water for recycling to permitted holders. The bill seeks to incentivize the recycling of produced water, primarily coming from oil and gas drilling operations. This initiative aims to address environmental concerns associated with produced water disposal while promoting more efficient water management practices within the oil and gas industry. By enabling a tax credit mechanism, the bill encourages producers to participate in recycling programs, endorsing environmentally sustainable practices.
During its discussions, the bill has been met with varied opinions regarding its potential effects on environmental regulations and economic practices. Proponents have pointed to the economic benefits and the environmental necessity for recycling produced water, seeing this as a progressive step towards minimizing waste in the oil and gas industry. Conversely, critics express concerns that despite its good intentions, the bill may lead to lax enforcement of water quality standards. They argue that the structural changes introduced may favor economic interests over strict environmental protection, highlighting the importance of maintaining high-quality standards in water management.