1-1  By:  Rodriguez, et al. (Senate Sponsor - Madla)       H.B. No. 1989
    1-2        (In the Senate - Received from the House May 1, 1995;
    1-3  May 2, 1995, read first time and referred to Committee on Natural
    1-4  Resources; May 8, 1995, reported adversely, with favorable
    1-5  Committee Substitute by the following vote:  Yeas 9, Nays 0;
    1-6  May 8, 1995, sent to printer.)
    1-7  COMMITTEE SUBSTITUTE FOR H.B. No. 1989              By:  Armbrister
    1-8                         A BILL TO BE ENTITLED
    1-9                                AN ACT
   1-10  relating to the underground storage of appropriated water
   1-11  incidental to a beneficial use.
   1-12        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
   1-13        SECTION 1.  The legislature finds that:
   1-14              (1)  the underground storage of appropriated water,
   1-15  incidental to a beneficial use, is a beneficial use of water;
   1-16              (2)  the use of aquifers for storage of appropriated
   1-17  water:
   1-18                    (A)  enhances the conservation and protection of
   1-19  appropriated water by minimizing seepage and evaporation losses;
   1-20                    (B)  reduces the incidental environmental impacts
   1-21  associated with the construction of conventional water storage
   1-22  facilities such as aboveground reservoirs; and
   1-23                    (C)  enhances and protects groundwater resources;
   1-24              (3)  the underground storage of appropriated water
   1-25  maximizes the conservation and beneficial use of water resources;
   1-26              (4)  the storage of appropriated water in aquifers
   1-27  recognizes existing property rights, including the rights of a
   1-28  landowner in groundwater;
   1-29              (5)  the storage of appropriated water in aquifers
   1-30  recognizes the authority and jurisdiction of an underground water
   1-31  conservation district;
   1-32              (6)  the use of aquifers for storage of appropriated
   1-33  water may reduce a portion of the economic burden on taxpayers and
   1-34  utility ratepayers associated with the construction of conventional
   1-35  water storage facilities;
   1-36              (7)  the successful storage of appropriated water
   1-37  underground has been demonstrated in Kerr County by the Upper
   1-38  Guadalupe River Authority in the Hosston-Sligo Aquifer; and
   1-39              (8)  the Texas Natural Resource Conservation Commission
   1-40  and the Texas Water Development Board are encouraged to evaluate
   1-41  additional aquifers within the state to identify the potential for
   1-42  storage of appropriated water underground to maximize and enhance
   1-43  the future availability and beneficial use of the water resources
   1-44  of the state.
   1-45        SECTION 2.  Subchapter D, Chapter 11, Water Code, is amended
   1-46  by adding Sections 11.153, 11.154, and 11.155 to read as follows:
   1-47        Sec. 11.153.  PILOT PROJECTS FOR STORAGE OF APPROPRIATED
   1-48  WATER IN AQUIFERS.  (a)  The commission shall investigate the
   1-49  feasibility of storing  appropriated water in various types of
   1-50  aquifers around the state by encouraging the issuance of temporary
   1-51  or term permits for pilot demonstration projects for the storage of
   1-52  appropriated water for subsequent retrieval and beneficial use in
   1-53  the following aquifers in the specified counties:
   1-54              (1)  the Anacacho, Austin Chalk, and Glen Rose
   1-55  Limestone aquifers in Bexar County and Medina County;
   1-56              (2)  the Carrizo-Wilcox aquifer in Bexar, Smith, Wood,
   1-57  Rains, and Van Zandt counties;
   1-58              (3)  the Hickory and Ellenberger aquifers in Gillespie
   1-59  County; and
   1-60              (4)  the Gulf Coast aquifer in Cameron and Hidalgo
   1-61  counties.
   1-62        (b)  A permit described by Subsection (a) must be for only
   1-63  the duration of the pilot project to provide the commission and the
   1-64  board further opportunity to evaluate the storage of appropriated
   1-65  water in aquifers for subsequent retrieval and beneficial use.
   1-66        (c)  At the conclusion of a pilot project, a permit holder
   1-67  may file an appropriate application for a permit or permit
   1-68  amendment.  After considering the success of the project and the
    2-1  criteria set out in Section 11.154, the commission shall determine
    2-2  whether to issue a permit or permit amendment authorizing the
    2-3  continued storage of appropriated water in the aquifer.
    2-4        (d)  A final order granting a permit or amendment to a permit
    2-5  authorizing the storage of appropriated water in aquifers for
    2-6  subsequent beneficial use, other than for the pilot projects
    2-7  authorized by this section, may not be issued before June 1, 1999.
    2-8        (e)  The board shall participate in the study of the pilot
    2-9  projects authorized by Subsection (a).  The pilot projects are
   2-10  eligible for grants from the water loan assistance fund established
   2-11  by Section 15.101.  The board may authorize use of money from the
   2-12  research and planning fund established by Section 15.402 to
   2-13  participate in the study of pilot projects.
   2-14        Sec. 11.154.  PERMITS TO STORE APPROPRIATED WATER IN
   2-15  AQUIFERS.  (a)  An application filed with the commission to
   2-16  undertake a pilot project under Section 11.153 must include:
   2-17              (1)  the information required for an application for a
   2-18  permit or permit amendment to appropriate state water;
   2-19              (2)  all information required for an application for a
   2-20  permit for a Class V injection well without requiring a separate
   2-21  hearing or notice; and
   2-22              (3)  a map or plat showing the injection facility and
   2-23  the aquifer in which the water will be stored.
   2-24        (b)  If the application is for a permit or permit amendment
   2-25  to store  appropriated water in an underground water reservoir or a
   2-26  subdivision of an underground water reservoir, as defined by
   2-27  Chapter 52, that is under the jurisdiction of an underground water
   2-28  conservation district:
   2-29              (1)  the applicant shall:
   2-30                    (A)  provide a copy of the application to each
   2-31  underground water conservation district that has jurisdiction over
   2-32  the reservoir or subdivision;
   2-33                    (B)  cooperate with the districts that have
   2-34  jurisdiction over the reservoir or subdivision to ensure compliance
   2-35  with the rules of each district;
   2-36                    (C)  cooperate with each district that has
   2-37  jurisdiction over the reservoir or subdivision to develop rules
   2-38  regarding the injection, storage, and withdrawal of appropriated
   2-39  water stored in the aquifer; and
   2-40                    (D)  comply with the rules governing the
   2-41  injection, storage, or withdrawal of appropriated water stored in
   2-42  the reservoir or subdivision that are adopted by a district that
   2-43  has jurisdiction over the reservoir or subdivision; and
   2-44              (2)  the commission shall require that any agreement
   2-45  the applicant reaches with a district that has jurisdiction over
   2-46  the reservoir or subdivision regarding the terms for the injection,
   2-47  storage, and withdrawal of appropriated water be included as a
   2-48  condition of the permit or permit amendment.
   2-49        (c)  On completion of a pilot project and receipt of an
   2-50  appropriate application for a permit or an amendment to an existing
   2-51  permit, the commission shall evaluate the success of the pilot
   2-52  project for purposes of issuing a final order granting a permit or
   2-53  permit amendment authorizing the storage of appropriated water
   2-54  incident to a beneficial use.  The commission shall consider
   2-55  whether:
   2-56              (1)  the introduction of water into the aquifer will
   2-57  alter the physical, chemical, or biological quality of native
   2-58  groundwater to a degree that the introduction would:
   2-59                    (A)  render groundwater produced from the aquifer
   2-60  harmful or detrimental to people, animals, vegetation, or property;
   2-61  or
   2-62                    (B)  require treatment of the groundwater to a
   2-63  greater extent than the native groundwater requires before being
   2-64  applied to that beneficial use;
   2-65              (2)  the water stored in the receiving aquifer can be
   2-66  successfully harvested from the aquifer for beneficial use; and
   2-67              (3)  the permit holder has provided evidence that
   2-68  reasonable diligence will be used to protect the water stored in
   2-69  the receiving aquifer from unauthorized withdrawals to the extent
   2-70  necessary to maximize the permit holder's ability to retrieve and
    3-1  beneficially use the stored water without experiencing unreasonable
    3-2  loss of appropriated water.
    3-3        (d)  In making its evaluation under Subsection (c), the
    3-4  commission may consider all relevant facts, including:
    3-5              (1)  the location and depth of the aquifer in which the
    3-6  stored water is located;
    3-7              (2)  the nature and extent of the surface development
    3-8  and activity above the stored water;
    3-9              (3)  the permit holder's ability to prevent
   3-10  unauthorized withdrawals by contract or the exercise of the power
   3-11  of eminent domain;
   3-12              (4)  the existence of an underground water conservation
   3-13  district with jurisdiction over the aquifer storing the water and
   3-14  the district's ability to adopt rules to protect stored water; and
   3-15              (5)  the existence of any other political subdivision
   3-16  or state agency authorized to regulate the drilling of wells.
   3-17        (e)  A permit to store appropriated water in an underground
   3-18  water reservoir or subdivision, as defined by Chapter 52, shall
   3-19  provide as a condition to the permit that the permit holder shall:
   3-20              (1)  register the permit holder's injection and
   3-21  recovery wells with an underground water conservation district that
   3-22  has jurisdiction over the reservoir or subdivision, if any; and
   3-23              (2)  each calendar month, provide the district, if any,
   3-24  with a written report showing for the previous calendar month:
   3-25                    (A)  the amount of water injected for storage;
   3-26  and
   3-27                    (B)  the amount of water recaptured for use.
   3-28        Sec. 11.155.  AQUIFER STORAGE PILOT PROJECT REPORTS.  (a)  On
   3-29  completion of each pilot project, the board and the commission
   3-30  jointly shall:
   3-31              (1)  prepare a report evaluating the success of the
   3-32  project; and
   3-33              (2)  provide copies of the report to the governor,
   3-34  lieutenant governor, and speaker of the house of representatives.
   3-35        (b)  The board shall make other studies, investigations, and
   3-36  surveys of the aquifers in the state as it considers necessary to
   3-37  determine the occurrence, quantity, quality, and availability of
   3-38  other aquifers in which water may be stored and subsequently
   3-39  retrieved for beneficial use.  The board shall undertake the
   3-40  studies, investigations, and surveys in the following order of
   3-41  priority:
   3-42              (1)  the aquifers identified in Section 11.153(a);
   3-43              (2)  areas designated by the commission as "critical
   3-44  areas" under Section 52.053; and
   3-45              (3)  other areas of the state in a priority to be
   3-46  determined by the board's ranking of where the greatest need
   3-47  exists.
   3-48        (c)  Not later than January 1 of each odd-numbered year, the
   3-49  board shall prepare and provide to the legislature a report that
   3-50  includes at least the following information:
   3-51              (1)  the progress of the pilot projects authorized
   3-52  under this subchapter and of any related project;
   3-53              (2)  the results of the board's studies of the other
   3-54  aquifers of the state during the preceding biennium; and
   3-55              (3)  the anticipated appropriation from general
   3-56  revenues necessary to investigate other aquifers in the state
   3-57  during the upcoming biennium.
   3-58        SECTION 3.  (a)  The change in law made by this Act applies
   3-59  only to an application made on or after the effective date of this
   3-60  Act for a permit or a permit amendment for a pilot project to
   3-61  appropriate water and to store appropriated water in an aquifer
   3-62  identified in this Act.
   3-63        (b)  A permit issued by the commission authorizing the
   3-64  storage of  appropriated water in an aquifer incident to a
   3-65  beneficial use before the effective date of this Act or an
   3-66  application for a permit or permit amendment to appropriate water
   3-67  that includes authorization to store appropriated water in an
   3-68  underground structure filed before the effective date of this Act
   3-69  is not affected by the changes in law made by this Act.
   3-70        SECTION 4.  The importance of this legislation and the
    4-1  crowded condition of the calendars in both houses create an
    4-2  emergency and an imperative public necessity that the
    4-3  constitutional rule requiring bills to be read on three several
    4-4  days in each house be suspended, and this rule is hereby suspended,
    4-5  and that this Act take effect and be in force from and after its
    4-6  passage, and it is so enacted.
    4-7                               * * * * *