BILL ANALYSIS Senate Research Center C.S.S.B. 2658 89R23236 JBD-D By: Perry Water, Agriculture and Rural Affairs 4/14/2025 Committee Report (Substituted) AUTHOR'S / SPONSOR'S STATEMENT OF INTENT Under existing law, the Texas Water Development Board (TWDB) studies brackish aquifers and identifies "brackish groundwater production zones" (BGPZ)areas of the state with moderate to high availability of brackish groundwater that can be used in place of fresh groundwater. During the May 15, 2024, interim hearing of the Texas Senate Committee on Water, Agriculture, and Rural Affairs, TWDB testified that 3.2 billion acre-feet of brackish groundwater had been assessed by the brackish aquifer studies the agency had completed to that point in time. TWDB staff further confirmed that most areas of the state have access to brackish groundwater. To further incentivize the use of brackish groundwater as an alternative to fresh groundwater, S.B. 2658 exempts brackish water wells located within a BGPZ from the requirement to obtain a production permit from a groundwater conservation district, provided the operator of the well provides the district with documentation that the well produces water with an average total dissolved solids concentration of at least 3,000 milligrams per liter. (Original Author's/Sponsor's Statement of Intent) [Note: While the statutory reference in this bill is to the Texas Natural Resource Conservation Commission (TNRCC), the following amendments affect the Texas Commission on Environmental Quality, as the successor agency to TNRCC.] C.S.S.B. 2658 amends current law relating to the production and study of brackish groundwater. RULEMAKING AUTHORITY This bill does not expressly grant any additional rulemaking authority to a state officer, institution, or agency. SECTION BY SECTION ANALYSIS SECTION 1. Amends Sections 16.060(b) and (e), Water Code, as follows: (b) Deletes existing text requiring that the biennial progress report on the implementation of seawater or brackish groundwater desalination activities include certain information, including identification and designation of local or regional brackish groundwater production zones in areas of the state with moderate to high availability and productivity of brackish groundwater that can be used to reduce the use of fresh groundwater not located in an area of a geologic stratum that is designated or used for wastewater injection through the use of injection wells or disposal wells permitted under Chapter 27 (Injection Wells). Makes nonsubstantive changes. (e) Requires the Texas Water Development Board (TWDB), in designating a brackish groundwater production zone under Section 16.060 (Desalination Studies and Research) to: (1) makes no changes to this subdivision; and (2) include in the designation description: (A)-(B) makes nonsubstantive changes to these paragraphs; and (C) an allocation of the available amounts of brackish groundwater identified in Paragraph (A) (relating to the amounts of brackish groundwater the zone is capable of producing during certain periods) to each groundwater conservation district and county located in the zone. SECTION 2. Amends Sections 36.117 by amending Subsections (b) and (d) and adding Subsections (e-1), (e-2), and (k-1), Water Code, as follows: (b) Requires a groundwater conservation district (district), except as provided by Section 36.117 (Exemptions; Exception; Limitations), to provide an exemption from the district requirement to obtain a permit for: (1)-(2) makes no changes to these subdivisions; (3)-(4) makes nonsubstantive changes to these subdivisions; and (5) drilling or operating a well for the withdrawal of groundwater from a designated brackish groundwater production zone, as defined by Section 36.1015 (Rules For Permits in Brackish Groundwater Production Zones), if: (A) the operator of the well provides the district with documentation from an environmental testing laboratory accredited under Texas Natural Resource Conservation Commission rules for water quality analysis in permitting decisions demonstrating that the well produces water with a total dissolved solids concentration of at least 3,000 milligrams per liter and showing that the operator has acquired a real property interest in the groundwater described by this paragraph underlying the tracts of land within the spacing area assigned to the well or the spacing distances required for the drilling of other wells, as applicable, under the well spacing rules of the district; and (B) total brackish groundwater production from the area of the designated brackish groundwater production zone located in the district would not exceed the applicable estimated withdrawal amounts allocated to the district by TWDB pursuant to Section 16.060(e)(2)(C). (d) Authorizes a district to cancel a previously granted exemption and to require an operating permit for or restrict production from a well and assess any appropriate fees if certain conditions are met, including, for groundwater withdrawals that were exempted under Subsection (b)(5), the withdrawals are no longer from a designated brackish groundwater production zone, as defined by Section 36.1015 or the groundwater produced no longer has an average total dissolved solids concentration of 3,000 milligrams per liter or more. (e-1) Requires a person owning or operating a well withdrawing water from a brackish groundwater production zone that is exempt from the requirement to obtain a permit under Subsection (b)(5) to: (1) implement a monitoring system approved by the district that accomplishes the purposes of Sections 36.1015(e)(6) (relating to rules requiring the holder of a permit to provide annual reports that include certain information) and (5) (relating to rules for a project located in the Gulf Coast Aquifer); and (2) submit an annual report to the district that contains the information required by Section 36.1015(e)(6). (e-2) Requires the district, before approving a proposed monitoring system under Subsection (e-1), to consult with TWDB to ensure that the proposed monitoring system aligns with the recommendations provided under Section 16.060(e)(2)(B) (relating to monitoring recommendations to observe the effect of brackish groundwater production within the zone) and with Sections 36.1015(e)(4) and (5). Requires the district to provide each report required under Subsection (e-1)(2) to TWDB. (k-1) Prohibits a district, notwithstanding Subsection (k) or any other law, from subjecting water withdrawn from a well exempted from a permit requirement by Subsection (b)(5). SECTION 3. Amends Section 36.205, Water Code, by adding Subsection (h) to prohibit a district from assessing a production fee under Section 36.205 (Authority to Set Fees), Water Code, for any water produced under an exemption under Section 36.117(b)(5). SECTION 4. Makes application of Sections 36.117(k-1) and 36.205(h), Water Code, as added by this Act, prospective. SECTION 5. Effective date: September 1, 2025.
BILL ANALYSIS
Senate Research Center C.S.S.B. 2658
89R23236 JBD-D By: Perry
Water, Agriculture and Rural Affairs
4/14/2025
Committee Report (Substituted)
Senate Research Center
C.S.S.B. 2658
89R23236 JBD-D
By: Perry
Water, Agriculture and Rural Affairs
4/14/2025
Committee Report (Substituted)
AUTHOR'S / SPONSOR'S STATEMENT OF INTENT
Under existing law, the Texas Water Development Board (TWDB) studies brackish aquifers and identifies "brackish groundwater production zones" (BGPZ)areas of the state with moderate to high availability of brackish groundwater that can be used in place of fresh groundwater. During the May 15, 2024, interim hearing of the Texas Senate Committee on Water, Agriculture, and Rural Affairs, TWDB testified that 3.2 billion acre-feet of brackish groundwater had been assessed by the brackish aquifer studies the agency had completed to that point in time. TWDB staff further confirmed that most areas of the state have access to brackish groundwater.
To further incentivize the use of brackish groundwater as an alternative to fresh groundwater, S.B. 2658 exempts brackish water wells located within a BGPZ from the requirement to obtain a production permit from a groundwater conservation district, provided the operator of the well provides the district with documentation that the well produces water with an average total dissolved solids concentration of at least 3,000 milligrams per liter.
(Original Author's/Sponsor's Statement of Intent)
[Note: While the statutory reference in this bill is to the Texas Natural Resource Conservation Commission (TNRCC), the following amendments affect the Texas Commission on Environmental Quality, as the successor agency to TNRCC.]
C.S.S.B. 2658 amends current law relating to the production and study of brackish groundwater.
RULEMAKING AUTHORITY
This bill does not expressly grant any additional rulemaking authority to a state officer, institution, or agency.
SECTION BY SECTION ANALYSIS
SECTION 1. Amends Sections 16.060(b) and (e), Water Code, as follows:
(b) Deletes existing text requiring that the biennial progress report on the implementation of seawater or brackish groundwater desalination activities include certain information, including identification and designation of local or regional brackish groundwater production zones in areas of the state with moderate to high availability and productivity of brackish groundwater that can be used to reduce the use of fresh groundwater not located in an area of a geologic stratum that is designated or used for wastewater injection through the use of injection wells or disposal wells permitted under Chapter 27 (Injection Wells). Makes nonsubstantive changes.
(e) Requires the Texas Water Development Board (TWDB), in designating a brackish groundwater production zone under Section 16.060 (Desalination Studies and Research) to:
(1) makes no changes to this subdivision; and
(2) include in the designation description:
(A)-(B) makes nonsubstantive changes to these paragraphs; and
(C) an allocation of the available amounts of brackish groundwater identified in Paragraph (A) (relating to the amounts of brackish groundwater the zone is capable of producing during certain periods) to each groundwater conservation district and county located in the zone.
SECTION 2. Amends Sections 36.117 by amending Subsections (b) and (d) and adding Subsections (e-1), (e-2), and (k-1), Water Code, as follows:
(b) Requires a groundwater conservation district (district), except as provided by Section 36.117 (Exemptions; Exception; Limitations), to provide an exemption from the district requirement to obtain a permit for:
(1)-(2) makes no changes to these subdivisions;
(3)-(4) makes nonsubstantive changes to these subdivisions; and
(5) drilling or operating a well for the withdrawal of groundwater from a designated brackish groundwater production zone, as defined by Section 36.1015 (Rules For Permits in Brackish Groundwater Production Zones), if:
(A) the operator of the well provides the district with documentation from an environmental testing laboratory accredited under Texas Natural Resource Conservation Commission rules for water quality analysis in permitting decisions demonstrating that the well produces water with a total dissolved solids concentration of at least 3,000 milligrams per liter and showing that the operator has acquired a real property interest in the groundwater described by this paragraph underlying the tracts of land within the spacing area assigned to the well or the spacing distances required for the drilling of other wells, as applicable, under the well spacing rules of the district; and
(B) total brackish groundwater production from the area of the designated brackish groundwater production zone located in the district would not exceed the applicable estimated withdrawal amounts allocated to the district by TWDB pursuant to Section 16.060(e)(2)(C).
(d) Authorizes a district to cancel a previously granted exemption and to require an operating permit for or restrict production from a well and assess any appropriate fees if certain conditions are met, including, for groundwater withdrawals that were exempted under Subsection (b)(5), the withdrawals are no longer from a designated brackish groundwater production zone, as defined by Section 36.1015 or the groundwater produced no longer has an average total dissolved solids concentration of 3,000 milligrams per liter or more.
(e-1) Requires a person owning or operating a well withdrawing water from a brackish groundwater production zone that is exempt from the requirement to obtain a permit under Subsection (b)(5) to:
(1) implement a monitoring system approved by the district that accomplishes the purposes of Sections 36.1015(e)(6) (relating to rules requiring the holder of a permit to provide annual reports that include certain information) and (5) (relating to rules for a project located in the Gulf Coast Aquifer); and
(2) submit an annual report to the district that contains the information required by Section 36.1015(e)(6).
(e-2) Requires the district, before approving a proposed monitoring system under Subsection (e-1), to consult with TWDB to ensure that the proposed monitoring system aligns with the recommendations provided under Section 16.060(e)(2)(B) (relating to monitoring recommendations to observe the effect of brackish groundwater production within the zone) and with Sections 36.1015(e)(4) and (5). Requires the district to provide each report required under Subsection (e-1)(2) to TWDB.
(k-1) Prohibits a district, notwithstanding Subsection (k) or any other law, from subjecting water withdrawn from a well exempted from a permit requirement by Subsection (b)(5).
SECTION 3. Amends Section 36.205, Water Code, by adding Subsection (h) to prohibit a district from assessing a production fee under Section 36.205 (Authority to Set Fees), Water Code, for any water produced under an exemption under Section 36.117(b)(5).
SECTION 4. Makes application of Sections 36.117(k-1) and 36.205(h), Water Code, as added by this Act, prospective.
SECTION 5. Effective date: September 1, 2025.