89R9159 ANG-D By: Hinojosa of Nueces S.B. No. 2506 A BILL TO BE ENTITLED AN ACT relating to the establishment of a grant program by the Texas Department of Licensing and Regulation to plug abandoned and deteriorating water wells. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Chapter 28, Water Code, is amended by adding Subchapter F to read as follows: SUBCHAPTER F. PLUGGING ABANDONED AND DETERIORATED WATER WELLS GRANT PROGRAM Sec. 28.151. DEFINITIONS. In this subchapter: (1) "Department" means the Texas Department of Licensing and Regulation. (2) "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. (3) "Fund" means the plugging abandoned and deteriorated water wells fund established under Section 28.153. (4) "Program" means the plugging abandoned and deteriorated water wells grant program established under Section 28.152. Sec. 28.152. PLUGGING ABANDONED AND DETERIORATED WATER WELLS GRANT PROGRAM. (a) The department by rule shall develop a program to provide grants for the public purpose of offsetting the costs associated with plugging abandoned or deteriorated water wells. (b) A grant may be provided under this section only to: (1) a district; or (2) a landowner who plugs a well that is not located within the boundaries of a district. Sec. 28.153. PROGRAM FUND. (a) The plugging abandoned and deteriorated water wells fund is an account in the general revenue fund. (b) The fund consists of money appropriated, credited, or transferred to the fund by the legislature. Sec. 28.154. APPLICATION; AMOUNT OF GRANT. (a) A district or landowner who pays or incurs the cost of plugging an abandoned or deteriorated water well may apply to the department for a reimbursement grant for an amount equal to 50 percent of the costs associated with plugging the water well. (b) The department may approve an application for a grant under this section only if the Texas Water Development Board finds that the district or landowner has submitted sufficient documentation to show that the district or landowner has permanently plugged the abandoned or deteriorated water well in accordance with this chapter and the rules and regulations of the commission. Sec. 28.155. APPLICATION FOR GRANT ON BEHALF OF LANDOWNER. (a) A district may apply for a grant under Section 28.154 on behalf of a landowner who has plugged an abandoned or deteriorated water well on land that is located in the boundaries of the district. (b) A district by resolution may establish rules regarding the application process under this section. Sec. 28.156. RULES. The department may adopt rules necessary to administer the program established under this subchapter, including rules regarding: (1) inspection requirements; and (2) administrative procedures, including procedures related to the timing of a reimbursement. SECTION 2. This Act takes effect September 1, 2025.