87R9570 JAM-D By: Zwiener H.B. No. 4524 A BILL TO BE ENTITLED AN ACT relating to the adoption of rules by the Texas Commission on Environmental Quality regarding the discharge into water in this state of produced water resulting from certain oil and gas activities. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Section 26.131, Water Code, as effective until delegation of authority under the Resource Conservation and Recovery Act of 1976 (42 U.S.C. Section 6901 et seq.) to the Railroad Commission of Texas, is amended by amending Subsection (d) and adding Subsection (e) to read as follows: (d) The commission may issue permits for the discharge into water in this state of produced water, hydrostatic test water, and gas plant effluent resulting from the activities described by Subsection (a) on delegation to the commission of NPDES authority for those discharges. The discharge of produced water, hydrostatic test water, and gas plant effluent into water in this state under this subsection must meet the water quality standards established by the commission, including the standards established under Subsection (e). (e) The commission shall adopt rules governing the discharge, handling, treatment, and disposition of produced water resulting from the activities described by Subsection (a). Rules adopted under this section must: (1) be based on the best available science and technology; (2) impose standards that exceed the minimum standards established by 40 C.F.R. Parts 435 and 437, as those provisions existed on January 15, 2021; (3) prohibit a discharge of untreated produced water into water in this state; (4) prohibit a discharge of treated produced water into water in this state unless the commission determines that the discharge will not result in water pollution, including a violation of anti-degradation standards; (5) prohibit a discharge of treated produced water to impaired state waters, unless advanced and secondary treatment standards can be implemented that will prevent further degradation of the impaired water; (6) require a person who proposes to discharge treated produced water, or to treat produced water for activities unrelated to oil or gas operations, to provide to the commission for public disclosure the water contaminants in the untreated produced water, including constituents added for oil or gas drilling or production; and (7) require a thorough characterization of all contaminants present in the produced water, including the contaminants' toxicity, mobility, radioactivity, and propensity to bioaccumulate. SECTION 2. Section 26.131, Water Code, as effective upon delegation of authority under the Resource Conservation and Recovery Act of 1976 (42 U.S.C. Section 6901 et seq.) to the Railroad Commission of Texas, is amended by amending Subsection (c) and adding Subsection (d) to read as follows: (c) The commission may issue permits for the discharge into water in this state of produced water, hydrostatic test water, and gas plant effluent resulting from the activities described by Subsection (a) on delegation to the commission of NPDES authority for those discharges. The discharge of produced water, hydrostatic test water, and gas plant effluent into water in this state under this subsection must meet the water quality standards established by the commission, including the standards established under Subsection (d). (d) The commission shall adopt rules governing the discharge, handling, treatment, and disposition of produced water resulting from the activities described by Subsection (a). Rules adopted under this section must: (1) be based on the best available science and technology; (2) impose standards that exceed the minimum standards established by 40 C.F.R. Parts 435 and 437, as those provisions existed on January 15, 2021; (3) prohibit a discharge of untreated produced water into water in this state; (4) prohibit a discharge of treated produced water into water in this state unless the commission determines that the discharge will not result in water pollution, including a violation of anti-degradation standards; (5) prohibit a discharge of treated produced water to impaired state waters, unless advanced and secondary treatment standards can be implemented that will prevent further degradation of the impaired water; (6) require a person who proposes to discharge treated produced water, or to treat produced water for activities unrelated to oil or gas operations, to provide to the commission for public disclosure the water contaminants in the untreated produced water, including constituents added for oil or gas drilling or production; and (7) require a thorough characterization of all contaminants present in the produced water, including the contaminants' toxicity, mobility, radioactivity, and propensity to bioaccumulate. SECTION 3. (a) Not later than September 1, 2022, the commission shall adopt rules required by Section 26.131, Water Code, as amended by this Act. (b) Rules adopted under Section 26.131, Water Code, as amended by this Act, become effective on the effective date of delegation of National Pollutant Discharge Elimination System permit authority for discharges of produced water to the Texas Commission on Environmental Quality by the United States Environmental Protection Agency under Section 402(b) of the Federal Water Pollution Control Act (33 U.S.C. Section 1342(b)). SECTION 4. This Act takes effect September 1, 2021.