BILL ANALYSIS C.S.H.B. 2584 By: Landgraf Energy Resources Committee Report (Substituted) BACKGROUND AND PURPOSE The bill author has informed the committee that produced water, which is a byproduct of oil and gas extraction, drilling, and mining operations, historically has been mostly disposed of in underground injection wells but that advances in treatment and recycling technologies have created opportunities for beneficial reuse of this byproduct. Additionally, the author has informed the committee that treated produced water has several end-use and industrial applications but that a gap in regulatory authority to permit the land application of treated produced water has created uncertainty regarding how and where treated produced water can be safely reused on land. C.S.H.B. 2584 seeks to close this gap and provide regulatory clarity, promote responsible water reuse, and safeguard natural water resources by authorizing the Texas Commission on Environmental Quality to issue permits for the land application of certain produced water that has been treated for beneficial use. CRIMINAL JUSTICE IMPACT It is the committee's opinion that this bill does not expressly create a criminal offense, increase the punishment for an existing criminal offense or category of offenses, or change the eligibility of a person for community supervision, parole, or mandatory supervision. RULEMAKING AUTHORITY It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency, or institution. ANALYSIS C.S.H.B. 2584 amends the Water Code to authorize the Texas Commission on Environmental Quality (TCEQ) to issue permits for the land application of produced water resulting from the following activities that has been treated for beneficial use: applicable activities associated with the exploration, development, and production of oil or gas or geothermal resources; applicable activities associated with uranium exploration consisting of the disturbance of the surface or subsurface for the purpose of or related to determining the location, quantity, or quality of uranium ore; and any other applicable activities regulated by the Railroad Commission of Texas (RRC) with regard to the prevention of pollution. The bill requires the TCEQ to adopt standards for this land application of water, including standards that prevent the pollution of surface and subsurface water. The bill adds a temporary provision set to expire September 1, 2027, requiring the TCEQ to consult with the RRC when adopting the standards for such a permit. C.S.H.B. 2584 applies only to a permit the application for which is filed on or after the bill's effective date. A permit the application for which is filed before the bill's effective date is subject to the law in effect on the date the application is filed, and that law is continued in effect for that purpose. EFFECTIVE DATE September 1, 2025. COMPARISON OF INTRODUCED AND SUBSTITUTE While C.S.H.B. 2584 may differ from the introduced in minor or nonsubstantive ways, the following summarizes the substantial differences between the introduced and committee substitute versions of the bill. The substitute includes temporary provisions set to expire September 1, 2027, which did not appear in the introduced, that require the TCEQ to consult with the RRC when adopting the standards for a permit issued under the bill's provisions.
BILL ANALYSIS
# BILL ANALYSIS
C.S.H.B. 2584
By: Landgraf
Energy Resources
Committee Report (Substituted)
C.S.H.B. 2584
By: Landgraf
Energy Resources
Committee Report (Substituted)
BACKGROUND AND PURPOSE The bill author has informed the committee that produced water, which is a byproduct of oil and gas extraction, drilling, and mining operations, historically has been mostly disposed of in underground injection wells but that advances in treatment and recycling technologies have created opportunities for beneficial reuse of this byproduct. Additionally, the author has informed the committee that treated produced water has several end-use and industrial applications but that a gap in regulatory authority to permit the land application of treated produced water has created uncertainty regarding how and where treated produced water can be safely reused on land. C.S.H.B. 2584 seeks to close this gap and provide regulatory clarity, promote responsible water reuse, and safeguard natural water resources by authorizing the Texas Commission on Environmental Quality to issue permits for the land application of certain produced water that has been treated for beneficial use.
CRIMINAL JUSTICE IMPACT It is the committee's opinion that this bill does not expressly create a criminal offense, increase the punishment for an existing criminal offense or category of offenses, or change the eligibility of a person for community supervision, parole, or mandatory supervision.
RULEMAKING AUTHORITY It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency, or institution.
ANALYSIS C.S.H.B. 2584 amends the Water Code to authorize the Texas Commission on Environmental Quality (TCEQ) to issue permits for the land application of produced water resulting from the following activities that has been treated for beneficial use: applicable activities associated with the exploration, development, and production of oil or gas or geothermal resources; applicable activities associated with uranium exploration consisting of the disturbance of the surface or subsurface for the purpose of or related to determining the location, quantity, or quality of uranium ore; and any other applicable activities regulated by the Railroad Commission of Texas (RRC) with regard to the prevention of pollution. The bill requires the TCEQ to adopt standards for this land application of water, including standards that prevent the pollution of surface and subsurface water. The bill adds a temporary provision set to expire September 1, 2027, requiring the TCEQ to consult with the RRC when adopting the standards for such a permit. C.S.H.B. 2584 applies only to a permit the application for which is filed on or after the bill's effective date. A permit the application for which is filed before the bill's effective date is subject to the law in effect on the date the application is filed, and that law is continued in effect for that purpose.
EFFECTIVE DATE September 1, 2025.
COMPARISON OF INTRODUCED AND SUBSTITUTE While C.S.H.B. 2584 may differ from the introduced in minor or nonsubstantive ways, the following summarizes the substantial differences between the introduced and committee substitute versions of the bill. The substitute includes temporary provisions set to expire September 1, 2027, which did not appear in the introduced, that require the TCEQ to consult with the RRC when adopting the standards for a permit issued under the bill's provisions.
BACKGROUND AND PURPOSE
The bill author has informed the committee that produced water, which is a byproduct of oil and gas extraction, drilling, and mining operations, historically has been mostly disposed of in underground injection wells but that advances in treatment and recycling technologies have created opportunities for beneficial reuse of this byproduct. Additionally, the author has informed the committee that treated produced water has several end-use and industrial applications but that a gap in regulatory authority to permit the land application of treated produced water has created uncertainty regarding how and where treated produced water can be safely reused on land. C.S.H.B. 2584 seeks to close this gap and provide regulatory clarity, promote responsible water reuse, and safeguard natural water resources by authorizing the Texas Commission on Environmental Quality to issue permits for the land application of certain produced water that has been treated for beneficial use.
CRIMINAL JUSTICE IMPACT
It is the committee's opinion that this bill does not expressly create a criminal offense, increase the punishment for an existing criminal offense or category of offenses, or change the eligibility of a person for community supervision, parole, or mandatory supervision.
RULEMAKING AUTHORITY
It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency, or institution.
ANALYSIS
C.S.H.B. 2584 amends the Water Code to authorize the Texas Commission on Environmental Quality (TCEQ) to issue permits for the land application of produced water resulting from the following activities that has been treated for beneficial use:
applicable activities associated with the exploration, development, and production of oil or gas or geothermal resources;
applicable activities associated with uranium exploration consisting of the disturbance of the surface or subsurface for the purpose of or related to determining the location, quantity, or quality of uranium ore; and
any other applicable activities regulated by the Railroad Commission of Texas (RRC) with regard to the prevention of pollution.
The bill requires the TCEQ to adopt standards for this land application of water, including standards that prevent the pollution of surface and subsurface water. The bill adds a temporary provision set to expire September 1, 2027, requiring the TCEQ to consult with the RRC when adopting the standards for such a permit.
C.S.H.B. 2584 applies only to a permit the application for which is filed on or after the bill's effective date. A permit the application for which is filed before the bill's effective date is subject to the law in effect on the date the application is filed, and that law is continued in effect for that purpose.
EFFECTIVE DATE
September 1, 2025.
COMPARISON OF INTRODUCED AND SUBSTITUTE
While C.S.H.B. 2584 may differ from the introduced in minor or nonsubstantive ways, the following summarizes the substantial differences between the introduced and committee substitute versions of the bill.
The substitute includes temporary provisions set to expire September 1, 2027, which did not appear in the introduced, that require the TCEQ to consult with the RRC when adopting the standards for a permit issued under the bill's provisions.