By: Murr (Senate Sponsor - Blanco) H.B. No. 4256
(In the Senate - Received from the House May 1, 2023;
May 2, 2023, read first time and referred to Committee on Finance;
May 21, 2023, reported adversely, with favorable Committee
Substitute by the following vote: Yeas 16, Nays 1; May 21, 2023,
sent to printer.)
Click here to see the committee vote
COMMITTEE SUBSTITUTE FOR H.B. No. 4256 By: Hinojosa
A BILL TO BE ENTITLED
AN ACT
relating to the establishment of a grant program to plug leaking
water wells in certain counties.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Chapter 28, Water Code, is amended by adding
Subchapter E to read as follows:
SUBCHAPTER E. LEAKING WATER WELLS GRANT PROGRAM
Sec. 28.101. DEFINITIONS. In this subchapter:
(1) "District" means a district or authority created
under Section 52, Article III, or Section 59, Article XVI, Texas
Constitution, that has the authority to regulate the spacing of
water wells, the production of water wells, or both.
(2) "Fund" means the leaking water wells fund created
under Section 28.103.
(3) "Program" means the leaking water wells program
established under Section 28.104.
Sec. 28.102. APPLICABILITY OF SUBCHAPTER. This subchapter
applies only to a district in a county that:
(1) has a population of 16,000 or less; and
(2) is adjacent to at least seven counties with
populations of less than 15,000.
Sec. 28.103. LEAKING WATER WELLS FUND. (a) The leaking
water wells fund is created as a fund in the state treasury outside
the general revenue fund.
(b) The fund consists of:
(1) money appropriated, credited, or transferred to
the fund by the legislature;
(2) gifts or grants contributed to the fund; and
(3) interest earned on deposits and investments of the
fund.
(c) Interest earned on money deposited to the credit of the
fund is exempt from Section 404.071, Government Code. Interest
earned on money in the fund shall be retained in the fund.
(d) The fund may be used only to implement the program
established under Section 28.104, including the costs of program
administration and operation.
Sec. 28.104. LEAKING WATER WELLS PROGRAM. The commission
shall establish and administer the leaking water wells program to
plug leaking water wells. Under the program, the commission shall
provide grants to districts for eligible projects to offset the
cost of plugging leaking water wells.
Sec. 28.105. APPLICATION FOR GRANT. (a) A district may
apply for and receive a grant for an eligible project under the
program.
(b) An application for a grant under this subchapter must be
made on a form provided by the commission and must contain the
information required by the commission.
Sec. 28.106. ELIGIBILITY OF PROJECTS FOR GRANTS;
PRIORITIZATION. (a) To be eligible for a grant for a project, a
district must:
(1) demonstrate that the project includes a leaking
water well:
(A) that:
(i) is located within 2,000 feet of a
drinking water well, a water well for livestock or irrigation, or a
sensitive wildlife area; or
(ii) has seasonal or annual flow to the
surface, or a hydrological connection to surface water, including a
waterway, intermittent stream, or springs system; and
(B) of which:
(i) the plug, casing, completion interval,
or general integrity is known by the district to be deficient; or
(ii) the completion interval is
sufficiently proximate to other known intervals or pressurized
zones with high concentrations of salinity, chlorides, sulfides, or
other hazardous or toxic components;
(2) obtain any necessary approval from a surface owner
for access to the property where the leaking water well is located;
and
(3) as necessary and subject to Subsection (b), engage
in a bid process to select and hire a contractor or subcontractor to
perform the work.
(b) Notwithstanding any other law, a contract for work on a
project for which a grant is provided under the program:
(1) must be awarded to a contractor or subcontractor
selected from a list of approved well pluggers maintained by the
Railroad Commission of Texas; and
(2) may be awarded to the contractor or subcontractor
whose bid or proposal the recipient of the grant determines
provides the best value for the recipient based on the selection
criteria published by the recipient.
(c) The commission by rule shall establish criteria for
prioritizing projects eligible to receive a grant under the
program.
Sec. 28.107. RESTRICTION ON USE OF GRANT. (a) A recipient
of a grant provided under the program may use the grant only to pay
the cost of the project for which the grant is provided. A recipient
may not use the grant to pay administrative costs associated with
the project.
(b) A leaking water well plugged under the program must be
permanently plugged. The commission, in consultation with the
Railroad Commission of Texas, shall establish criteria for ensuring
that a well is permanently plugged.
(c) The amount of a grant provided under the program that is
not spent for the completion of a project must be returned to the
commission for deposit to the credit of the fund.
SECTION 2. This Act takes effect immediately if it receives
a vote of two-thirds of all the members elected to each house, as
provided by Section 39, Article III, Texas Constitution. If this
Act does not receive the vote necessary for immediate effect, this
Act takes effect September 1, 2023.
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