By: Perry S.B. No. 601
(In the Senate - Filed February 5, 2021; March 11, 2021,
read first time and referred to Committee on Water, Agriculture &
Rural Affairs; March 25, 2021, reported adversely, with favorable
Committee Substitute by the following vote: Yeas 8, Nays 0;
March 25, 2021, sent to printer.)
Click here to see the committee vote
COMMITTEE SUBSTITUTE FOR S.B. No. 601 By: Perry
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) "Agency advisory council" means the agency
advisory council created under Section 109.202.
(2) "Consortium" means the Texas Produced Water
Consortium.
(3) "Fluid oil and gas waste" has the meaning assigned
by Section 122.001, Natural Resources Code.
(4) "Host university" means Texas Tech University.
(5) "Private entity" means an individual,
corporation, or nonprofit corporation.
(6) "Stakeholder advisory council" means the
stakeholder advisory council created under Section 109.202.
(7) "Technical steering committee" means the
technical steering committee created under Section 109.202.
Sec. 109.202. TEXAS PRODUCED WATER CONSORTIUM. The Texas
Produced Water Consortium is a consortium consisting of the host
university, the agency advisory council, the stakeholder advisory
council, the technical steering committee, and private entities.
The consortium is created to bring together information resources
to study the economics of and technology related to beneficial uses
of fluid oil and gas waste.
Sec. 109.203. ADMINISTRATION. (a) The agency advisory
council is composed of representatives of the:
(1) Department of Agriculture;
(2) Railroad Commission of Texas;
(3) State Energy Conservation Office;
(4) Texas Commission on Environmental Quality;
(5) Texas Economic Development and Tourism Office
within the office of the governor;
(6) Parks and Wildlife Department; and
(7) Texas Water Development Board.
(b) Each entity described by Subsection (a) shall select a
representative to serve on the agency advisory council.
(c) The agency advisory council shall meet as often as
necessary to ensure the consortium meets the requirements of this
subchapter.
(d) The agency advisory council shall advise the consortium
on matters related to the subject matter expertise of the agencies
represented, including matters related to the regulation and
permitting of and treatment standards for fluid oil and gas waste.
Treatment standards may include a fit for purpose requirement and
regulations necessary for the protection of human health and the
environment.
(e) The stakeholder advisory council is composed of
representatives of:
(1) the oil and gas industry;
(2) agricultural water users;
(3) industrial water users;
(4) environmental interests;
(5) fluid oil and gas waste recycling operations;
(6) public water utilities;
(7) landowners or owners of groundwater rights;
(8) commercial water recyclers and midstream water
companies; and
(9) other appropriate interests or industries.
(f) The host university shall appoint members to the
stakeholder advisory council from members of the consortium. If no
member of the consortium represents an interest or industry
described by Subsection (e), the host university may appoint a
person to represent the interest or industry from outside the
consortium.
(g) The stakeholder advisory council shall advise the
consortium on matters related to research, investigation, and
contract development.
(h) The technical steering committee is composed of members
appointed by the host university to provide technical and
scientific expertise. The technical steering committee shall
determine the feasibility of proposals for research or
investigation by the consortium and decide which proposals the
consortium will accept for research or investigation.
Sec. 109.204. DUTIES. (a) The consortium shall study the
economics of beneficial uses of fluid oil and gas waste and
technology needed for those uses. After October 1, 2022:
(1) the research and investigation goals of the
consortium shall be directed by the members of the consortium; and
(2) the host university may disband the consortium if
the host university determines that the consortium does not have
sufficient membership.
(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 fluid oil and gas waste, including specifically
changes designed to find and define beneficial uses for fluid oil
and gas waste outside of the oil and gas industry;
(2) suggested guidance for establishing fluid oil and
gas waste permitting and testing standards;
(3) an economically feasible pilot project for state
participation in a facility designed and operated to recycle fluid
oil and gas waste; and
(4) an economic model for using fluid oil and gas waste
in a way that is economical and efficient and that protects public
health and the environment.
(b) The host university shall:
(1) provide staff and other resources necessary for
the consortium to meet the requirements of this subchapter;
(2) consult with the New Mexico Produced Water
Research Consortium on completed research, data, and any other
matter related to the consortium; and
(3) solicit participation from:
(A) the oil and gas industry;
(B) agricultural water users;
(C) industrial water users;
(D) environmental interests;
(E) fluid oil and gas waste recycling operations;
(F) midstream water companies;
(G) landowners;
(H) owners of groundwater rights;
(I) public water utilities; and
(J) river authorities subject to Section
325.025, Government Code.
(c) The host university shall 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 agency advisory council and
the host university shall collaborate to create a fee structure
that establishes membership costs at various levels for private
entities that may contribute money to the consortium for research
and investigation. Membership costs may include contributions of
equipment or other resources in lieu of money.
(b) Money paid by private entities as membership costs 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 and
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 its duties
under this subchapter.
Sec. 109.206. ACCESS TO DATA. (a) In exchange for
membership in 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 membership.
(b) A private entity's access to the consortium's
investigation data must be governed by a membership contract
between the host university and the entity that describes the data
to be released to the private entity.
(c) The consortium shall make information about the work and
progress of the consortium available to the public on an Internet
website maintained by the host university.
SECTION 2. (a) Not later than October 1, 2021, each state
agency described by Section 109.203(a), Education Code, as added by
this Act, shall select a representative to serve on the agency
advisory council 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, 2022, the Texas Produced
Water Consortium shall create the pilot project required by Section
109.204(a-1)(3), Education Code, as added by this Act.
SECTION 3. The Texas Produced Water Consortium, as created
by Subchapter E, Chapter 109, Education Code, as added by this Act,
is required to implement a provision of this Act only if the
legislature appropriates money specifically for that purpose. If
the legislature does not appropriate money specifically for that
purpose, the consortium may, but is not required to, implement a
provision of this Act using other appropriations available for that
purpose.
SECTION 4. This Act takes effect September 1, 2021.
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