H.B. No. 1989 1-1 AN ACT 1-2 relating to the underground storage of appropriated water 1-3 incidental to a beneficial use. 1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-5 SECTION 1. The legislature finds that: 1-6 (1) the underground storage of appropriated water, 1-7 incidental to a beneficial use, is a beneficial use of water; 1-8 (2) the use of aquifers for storage of appropriated 1-9 water: 1-10 (A) enhances the conservation and protection of 1-11 appropriated water by minimizing seepage and evaporation losses; 1-12 (B) reduces the incidental environmental impacts 1-13 associated with the construction of conventional water storage 1-14 facilities such as aboveground reservoirs; and 1-15 (C) enhances and protects groundwater resources; 1-16 (3) the underground storage of appropriated water 1-17 maximizes the conservation and beneficial use of water resources; 1-18 (4) the storage of appropriated water in aquifers 1-19 recognizes existing property rights, including the rights of a 1-20 landowner in groundwater; 1-21 (5) the storage of appropriated water in aquifers 1-22 recognizes the authority and jurisdiction of an underground water 1-23 conservation district; 2-1 (6) the use of aquifers for storage of appropriated 2-2 water may reduce a portion of the economic burden on taxpayers and 2-3 utility ratepayers associated with the construction of conventional 2-4 water storage facilities; 2-5 (7) the successful storage of appropriated water 2-6 underground has been demonstrated in Kerr County by the Upper 2-7 Guadalupe River Authority in the Hosston-Sligo Aquifer; and 2-8 (8) the Texas Natural Resource Conservation Commission 2-9 and the Texas Water Development Board are encouraged to evaluate 2-10 additional aquifers within the state to identify the potential for 2-11 storage of appropriated water underground to maximize and enhance 2-12 the future availability and beneficial use of the water resources 2-13 of the state. 2-14 SECTION 2. Subchapter D, Chapter 11, Water Code, is amended 2-15 by adding Sections 11.153, 11.154, and 11.155 to read as follows: 2-16 Sec. 11.153. PILOT PROJECTS FOR STORAGE OF APPROPRIATED 2-17 WATER IN AQUIFERS. (a) The commission shall investigate the 2-18 feasibility of storing appropriated water in various types of 2-19 aquifers around the state by encouraging the issuance of temporary 2-20 or term permits for pilot demonstration projects for the storage of 2-21 appropriated water for subsequent retrieval and beneficial use in 2-22 the following aquifers in the specified counties: 2-23 (1) the Anacacho, Austin Chalk, and Glen Rose 2-24 Limestone aquifers in Bexar County and Medina County; 2-25 (2) the Carrizo-Wilcox aquifer in Bexar, Webb, Smith, 3-1 Wood, Rains, and Van Zandt counties; 3-2 (3) the Hickory and Ellenberger aquifers in Gillespie 3-3 County; and 3-4 (4) the Gulf Coast aquifer in Cameron and Hidalgo 3-5 counties. 3-6 (b) A permit described by Subsection (a) must be for only 3-7 the duration of the pilot project to provide the commission and the 3-8 board further opportunity to evaluate the storage of appropriated 3-9 water in aquifers for subsequent retrieval and beneficial use. 3-10 (c) At the conclusion of a pilot project, a permit holder 3-11 may file an appropriate application for a permit or permit 3-12 amendment. After considering the success of the project and the 3-13 criteria set out in Section 11.154, the commission shall determine 3-14 whether to issue a permit or permit amendment authorizing the 3-15 continued storage of appropriated water in the aquifer. 3-16 (d) A final order granting a permit or amendment to a permit 3-17 authorizing the storage of appropriated water in aquifers for 3-18 subsequent beneficial use, other than for the pilot projects 3-19 authorized by this section, may not be issued before June 1, 1999. 3-20 (e) The board shall participate in the study of the pilot 3-21 projects authorized by Subsection (a). The pilot projects are 3-22 eligible for grants from the water loan assistance fund established 3-23 by Section 15.101. The board may authorize use of money from the 3-24 research and planning fund established by Section 15.402 to 3-25 participate in the study of pilot projects. 4-1 Sec. 11.154. PERMITS TO STORE APPROPRIATED WATER IN 4-2 AQUIFERS. (a) An application filed with the commission to 4-3 undertake a pilot project under Section 11.153 must include: 4-4 (1) the information required for an application for a 4-5 permit or permit amendment to appropriate state water; 4-6 (2) all information required for an application for a 4-7 permit for a Class V injection well without requiring a separate 4-8 hearing or notice; and 4-9 (3) a map or plat showing the injection facility and 4-10 the aquifer in which the water will be stored. 4-11 (b) If the application is for a permit or permit amendment 4-12 to store appropriated water in an underground water reservoir or a 4-13 subdivision of an underground water reservoir, as defined by 4-14 Chapter 52, that is under the jurisdiction of an underground water 4-15 conservation district: 4-16 (1) the applicant shall: 4-17 (A) provide a copy of the application to each 4-18 underground water conservation district that has jurisdiction over 4-19 the reservoir or subdivision; 4-20 (B) cooperate with the districts that have 4-21 jurisdiction over the reservoir or subdivision to ensure compliance 4-22 with the rules of each district; 4-23 (C) cooperate with each district that has 4-24 jurisdiction over the reservoir or subdivision to develop rules 4-25 regarding the injection, storage, and withdrawal of appropriated 5-1 water stored in the aquifer; and 5-2 (D) comply with the rules governing the 5-3 injection, storage, or withdrawal of appropriated water stored in 5-4 the reservoir or subdivision that are adopted by a district that 5-5 has jurisdiction over the reservoir or subdivision; and 5-6 (2) the commission shall require that any agreement 5-7 the applicant reaches with a district that has jurisdiction over 5-8 the reservoir or subdivision regarding the terms for the injection, 5-9 storage, and withdrawal of appropriated water be included as a 5-10 condition of the permit or permit amendment. 5-11 (c) On completion of a pilot project and receipt of an 5-12 appropriate application for a permit or an amendment to an existing 5-13 permit, the commission shall evaluate the success of the pilot 5-14 project for purposes of issuing a final order granting a permit or 5-15 permit amendment authorizing the storage of appropriated water 5-16 incident to a beneficial use. The commission shall consider 5-17 whether: 5-18 (1) the introduction of water into the aquifer will 5-19 alter the physical, chemical, or biological quality of native 5-20 groundwater to a degree that the introduction would: 5-21 (A) render groundwater produced from the aquifer 5-22 harmful or detrimental to people, animals, vegetation, or property; 5-23 or 5-24 (B) require treatment of the groundwater to a 5-25 greater extent than the native groundwater requires before being 6-1 applied to that beneficial use; 6-2 (2) the water stored in the receiving aquifer can be 6-3 successfully harvested from the aquifer for beneficial use; and 6-4 (3) the permit holder has provided evidence that 6-5 reasonable diligence will be used to protect the water stored in 6-6 the receiving aquifer from unauthorized withdrawals to the extent 6-7 necessary to maximize the permit holder's ability to retrieve and 6-8 beneficially use the stored water without experiencing unreasonable 6-9 loss of appropriated water. 6-10 (d) In making its evaluation under Subsection (c), the 6-11 commission may consider all relevant facts, including: 6-12 (1) the location and depth of the aquifer in which the 6-13 stored water is located; 6-14 (2) the nature and extent of the surface development 6-15 and activity above the stored water; 6-16 (3) the permit holder's ability to prevent 6-17 unauthorized withdrawals by contract or the exercise of the power 6-18 of eminent domain; 6-19 (4) the existence of an underground water conservation 6-20 district with jurisdiction over the aquifer storing the water and 6-21 the district's ability to adopt rules to protect stored water; and 6-22 (5) the existence of any other political subdivision 6-23 or state agency authorized to regulate the drilling of wells. 6-24 (e) A permit to store appropriated water in an underground 6-25 water reservoir or subdivision, as defined by Chapter 52, shall 7-1 provide as a condition to the permit that the permit holder shall: 7-2 (1) register the permit holder's injection and 7-3 recovery wells with an underground water conservation district that 7-4 has jurisdiction over the reservoir or subdivision, if any; and 7-5 (2) each calendar month, provide the district, if any, 7-6 with a written report showing for the previous calendar month: 7-7 (A) the amount of water injected for storage; 7-8 and 7-9 (B) the amount of water recaptured for use. 7-10 Sec. 11.155. AQUIFER STORAGE PILOT PROJECT REPORTS. (a) On 7-11 completion of each pilot project, the board and the commission 7-12 jointly shall: 7-13 (1) prepare a report evaluating the success of the 7-14 project; and 7-15 (2) provide copies of the report to the governor, 7-16 lieutenant governor, and speaker of the house of representatives. 7-17 (b) The board shall make other studies, investigations, and 7-18 surveys of the aquifers in the state as it considers necessary to 7-19 determine the occurrence, quantity, quality, and availability of 7-20 other aquifers in which water may be stored and subsequently 7-21 retrieved for beneficial use. The board shall undertake the 7-22 studies, investigations, and surveys in the following order of 7-23 priority: 7-24 (1) the aquifers identified in Section 11.153(a); 7-25 (2) areas designated by the commission as "critical 8-1 areas" under Section 52.053; and 8-2 (3) other areas of the state in a priority to be 8-3 determined by the board's ranking of where the greatest need 8-4 exists. 8-5 (c) Not later than January 1 of each odd-numbered year, the 8-6 board shall prepare and provide to the legislature a report that 8-7 includes at least the following information: 8-8 (1) the progress of the pilot projects authorized 8-9 under this subchapter and of any related project; 8-10 (2) the results of the board's studies of the other 8-11 aquifers of the state during the preceding biennium; and 8-12 (3) the anticipated appropriation from general 8-13 revenues necessary to investigate other aquifers in the state 8-14 during the upcoming biennium. 8-15 SECTION 3. (a) The change in law made by this Act applies 8-16 only to an application made on or after the effective date of this 8-17 Act for a permit or a permit amendment for a pilot project to 8-18 appropriate water and to store appropriated water in an aquifer 8-19 identified in this Act. 8-20 (b) A permit issued by the commission authorizing the 8-21 storage of appropriated water in an aquifer incident to a 8-22 beneficial use before the effective date of this Act or an 8-23 application for a permit or permit amendment to appropriate water 8-24 that includes authorization to store appropriated water in an 8-25 underground structure filed before the effective date of this Act 9-1 is not affected by the changes in law made by this Act. 9-2 SECTION 4. The importance of this legislation and the 9-3 crowded condition of the calendars in both houses create an 9-4 emergency and an imperative public necessity that the 9-5 constitutional rule requiring bills to be read on three several 9-6 days in each house be suspended, and this rule is hereby suspended, 9-7 and that this Act take effect and be in force from and after its 9-8 passage, and it is so enacted.