88R4569 ANG-F
By: Birdwell S.B. No. 786
A BILL TO BE ENTITLED
AN ACT
relating to the regulation by the Railroad Commission of Texas of
closed-loop geothermal injection wells.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subchapter C, Chapter 27, Water Code, is amended
by adding Section 27.037 to read as follows:
Sec. 27.037. JURISDICTION OVER CLOSED-LOOP GEOTHERMAL
INJECTION WELLS. (a) In this section, "closed-loop geothermal
injection well" means a closed system geothermal well used to
circulate water, other fluids, or gases through the earth as a heat
source or heat sink to generate power or heat or cool a structure.
(b) The railroad commission has jurisdiction over
closed-loop geothermal injection wells and may issue permits for
closed-loop geothermal injection wells, including individual
permits, general permits, or permits by rule.
(c) A person may not begin drilling a closed-loop geothermal
injection well unless that person holds a valid permit issued by the
railroad commission under this section.
(d) For purposes of railroad commission regulation, a
closed-loop geothermal injection well is designated as a Class V
well under the underground injection control program administered
by the railroad commission.
(e) The railroad commission shall adopt rules as necessary
to administer this section and regulate closed-loop geothermal
injection wells.
SECTION 2. (a) In this section:
(1) "Closed-loop geothermal injection well" has the
meaning assigned by Section 27.037, Water Code, as added by this
Act.
(2) "Commission" means the Texas Commission on
Environmental Quality.
(3) "Railroad commission" means the Railroad
Commission of Texas.
(b) On the effective date of this Act:
(1) all functions and activities performed by the
commission that relate to the regulation of closed-loop geothermal
injection wells under Chapter 27, Water Code, are transferred to
the railroad commission;
(2) a rule, standard, or form adopted by the
commission that is related to the regulation of closed-loop
geothermal injection wells under Chapter 27, Water Code, is a rule,
standard, or form of the railroad commission and remains in effect
until altered by the railroad commission;
(3) a proceeding involving the commission that is
related to the regulation of closed-loop geothermal injection wells
under Chapter 27, Water Code, is transferred without change in
status to the railroad commission, and the railroad commission
assumes, without change in status, the position of the commission
in any proceeding relating to the regulation of closed-loop
geothermal injection wells to which the commission is a party;
(4) all money, contracts, leases, rights, and
obligations of the commission related to closed-loop geothermal
injection wells under Chapter 27, Water Code, are transferred to
the railroad commission;
(5) all property, including records, in the custody of
the commission related to the regulation of closed-loop geothermal
injection wells under Chapter 27, Water Code, is transferred to the
railroad commission; and
(6) all money appropriated to the commission for
purposes related to the regulation of closed-loop geothermal
injection wells under Chapter 27, Water Code, is transferred to the
railroad commission.
(c) Section 27.037, Water Code, as added by this Act, does
not affect the validity of a permit for a closed-loop geothermal
injection well issued before the effective date of this Act.
(d) Not later than the 90th day after the effective date of
this Act:
(1) the railroad commission shall issue a substitute
permit under the name and authority of the railroad commission to
each person who on the effective date of this Act holds a valid
permit issued by the commission for a closed-loop geothermal
injection well; and
(2) the commission shall transmit to the railroad
commission all pending applications for closed-loop geothermal
injection wells submitted to the commission before the effective
date of this Act.
SECTION 3. This Act takes effect September 1, 2023.