BILL ANALYSIS

C.S.H.B. 4856

By: Darby

Natural Resources

Committee Report (Substituted)

BACKGROUND AND PURPOSE

Large amounts of produced water are generated from the production of oil and gas, which is otherwise known as fluid oil and gas waste. Historically, operators have managed produced water by means of disposal, and more recently, through reuse in hydraulic fracturing and other practices. Nevertheless, substantial volumes of produced water require the state and industry to consider additional management and recycling options. Beneficial reuse solutions outside of the oil and gas industry, including aquifer storage and recharge, are being explored. Excess produced water could provide a significant new water source. As innovators are piloting produced water recycling projects, it is vital to establish clarity surrounding agency jurisdiction. C.S.H.B. 4856 seeks to address this issue by specifying that the exclusive jurisdiction of the Texas Commission on Environmental Quality over the regulation and permitting of recharge injection wells includes such wells used for the injection of fluid oil and gas waste.

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. 4856 amends the Water Code to specify that the exclusive jurisdiction of the Texas Commission on Environmental Quality (TCEQ) over the regulation and permitting of recharge injection wells includes such wells used for the injection of fluid oil and gas waste, defined by reference as waste containing salt or other mineralized substances, brine, hydraulic fracturing fluid, flowback water, produced water, or other fluid that arises out of or is incidental to the drilling for or production of oil or gas. The bill prohibits a recharge injection well from being used for the injection of fluid oil and gas waste unless the waste has been treated to meet the standards adopted by the TCEQ under provisions relating to aquifer recharge projects.

EFFECTIVE DATE

On passage, or, if the bill does not receive the necessary vote, September 1, 2023.

COMPARISON OF INTRODUCED AND SUBSTITUTE

While C.S.H.B. 4856 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.

With regard to the TCEQ's exclusive jurisdiction over the regulation and permitting of recharge injection wells, whereas the introduced provided that the jurisdiction includes the injection of recycled fluid oil and gas waste that has been treated to a standard approved by the TCEQ, the substitute provides instead that the jurisdiction includes recharge injection wells used for the injection of fluid oil and gas waste.

The substitute includes provisions absent in the introduced that define "fluid oil and gas waste" by reference and that prohibit a recharge injection well from being used for the injection of fluid oil and gas waste unless the waste has been treated to meet the standards adopted by the TCEQ under provisions relating to aquifer recharge projects.