87R7737 SLB-D
By: Perry S.B. No. 601
A BILL TO BE ENTITLED
AN ACT
relating to the creation and activities of the Texas Produced Water
Consortium.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Chapter 109, Education Code, is amended by
adding Subchapter E to read as follows:
SUBCHAPTER E. TEXAS PRODUCED WATER CONSORTIUM
Sec. 109.201. DEFINITIONS. In this subchapter:
(1) "Board" means the board established by Section
109.203.
(2) "Consortium" means the Texas Produced Water
Consortium.
(3) "Host university" means Texas Tech University.
(4) "Private entity" means an individual,
corporation, or nonprofit corporation.
(5) "Produced water" means naturally occurring water
that emerges from the ground during the production of oil or gas.
Sec. 109.202. TEXAS PRODUCED WATER CONSORTIUM. The Texas
Produced Water Consortium is a consortium consisting of the host
university, the board, and private entities. The consortium is
created to bring together information resources to study the
economics of and technology related to beneficial uses of produced
water.
Sec. 109.203. ADMINISTRATION. (a) The consortium is
governed by a board composed of representatives of the:
(1) Railroad Commission of Texas;
(2) State Energy Conservation Office;
(3) Texas Commission on Environmental Quality;
(4) Texas Economic Development and Tourism Office
within the office of the governor; and
(5) Texas Water Development Board.
(b) Each entity described by Subsection (a) shall select a
representative to serve on the board.
(c) The board shall meet as often as necessary to ensure the
consortium meets the requirements of this subchapter.
Sec. 109.204. DUTIES. (a) The consortium shall study the
economics of beneficial uses of produced water and technology
needed for those uses. After October 1, 2022, the research and
investigation goals of the consortium shall be directed by the
sponsors of the consortium.
(a-1) This subsection expires October 1, 2022. Not later
than September 1, 2022, the consortium shall produce a report that
includes:
(1) suggested changes to law to better enable
beneficial uses of produced water;
(2) an economically feasible pilot project for state
participation in a produced water facility; and
(3) an economic model for using produced water in an
economic and efficient way.
(b) The host university shall:
(1) provide staff and other resources necessary for
the consortium to meet the requirements of this subchapter; and
(2) solicit participation from:
(A) the oil and gas industry;
(B) companies that own or manage the
infrastructure to store produced water and transport that water to
other locations for reuse; and
(C) water users, including:
(i) agricultural users;
(ii) political subdivisions;
(iii) universities; and
(iv) water utilities.
(c) The host university may coordinate with other members of
the state university system and state agencies to provide resources
necessary for the consortium to meet the requirements of this
subchapter.
Sec. 109.205. FUNDING. (a) The board and the host
university shall collaborate to create a fee structure for private
sponsors that establishes fees for various sponsorship levels for
private entities that may contribute money to the consortium for
research and investigation.
(b) Money paid by private entities as sponsorship fees may
be used only for research and investigation conducted by the
consortium.
(c) Except for state money appropriated to the host
university for use in meeting the requirements of Section
109.204(a-1), and resources provided by the host university, other
state university system entities, or state agencies, the consortium
may not receive state money.
(d) The consortium may accept gifts and grants of money,
equipment, or other resources necessary to accomplish the duties of
this subchapter.
Sec. 109.206. ACCESS TO DATA. (a) In exchange for
sponsorship of the consortium, a private entity may receive access
to data produced as a result of investigation by the consortium in
an amount proportionate to the entity's level of sponsorship.
(b) A private entity's access to the consortium's
investigation data must be governed by a sponsorship contract
between the host university and the entity that describes the data
to be released to the private entity.
SECTION 2. (a) Not later than December 1, 2021, each state
agency described by Section 109.203(a), Education Code, as added by
this Act, shall select a representative for the board of the Texas
Produced Water Consortium, as required by Section 109.203(b),
Education Code, as added by this Act.
(b) Not later than September 1, 2022, the Texas Produced
Water Consortium shall deliver the report required by Section
109.204(a-1), Education Code, as added by this Act.
(c) Not later than September 1, 2023, the Texas Produced
Water Consortium shall create the pilot project required by Section
109.204(a-1)(2), Education Code, as added by this Act.
SECTION 3. This Act takes effect September 1, 2021.