83R7265 JXC-F

By: Larson H.B. No. 2752

A BILL TO BE ENTITLED

AN ACT

relating to the development and operation of advanced brackish desalination projects.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. The Water Code is amended by adding Title 6 to read as follows:

TITLE 6. WATER INFRASTRUCTURE

CHAPTER 201. ADVANCED BRACKISH DESALINATION PROJECTS

Sec. 201.001. DEFINITIONS. In this chapter:

(1) "Advanced brackish desalination project" means a project owned or operated by a governmental entity or nonprofit corporation that:

(A) is designed to reduce the total dissolved solids in brackish water to less than 1,000 milligrams per liter; and

(B) is integrated with an electric generation facility owned by a power generation company as defined by Section 31.002, Utilities Code.

(2) "Brackish water" means surface water or groundwater containing more than 1,000 milligrams and less than 10,000 milligrams per liter of total dissolved solids.

(3) "Governmental entity" means a municipality, county, district, or other political subdivision or public entity or instrumentality.

(4) "Nonprofit corporation" includes a water supply or sewer service corporation operating under Chapter 67.

Sec. 201.002. INTEGRATION WITH ELECTRIC GENERATION FACILITY. For purposes of this chapter, an advanced brackish desalination project is considered to be integrated with an electric generation facility if the project and the facility:

(1) are located in the same or an adjacent county; and

(2) are directly connected using transmission facilities that are not owned or operated by an electric utility.

Sec. 201.003. PROJECT FUNDING. An advanced brackish desalination project that conserves or reuses water may receive funding from the Texas Water Development Board in the same manner as a project included in the state water plan adopted under Section 16.051. For purposes of this section, there is a presumption that an advanced brackish desalination project is a water conservation or reuse project designed to reduce the need for the development of additional fresh water resources.

Sec. 201.004. ELECTRICITY TRANSACTIONS. (a) An electric generation facility that is integrated with an advanced brackish desalination project and provides electricity to the project is not an electric utility or a retail electric provider, as defined by Section 31.002, Utilities Code, or a retail electric utility, as defined by Section 37.001, Utilities Code, solely because of the electricity transactions between the facility and the project.

(b) A purchase of electricity described by this chapter or of a related resource, such as thermal output, made by a governmental entity or nonprofit corporation for the purposes of an advanced brackish desalination project is a purchase of personal property under Subchapter A, Chapter 271, Local Government Code, and the sale of that electricity may not be considered a retail sale of electricity.

Sec. 201.005. PARTNERSHIPS. A private entity or other person may submit a proposal requesting approval of an advanced brackish desalination project as a qualifying project under Chapter 2267, Government Code.

SECTION 2. Section 36.001, Water Code, is amended by amending Subdivision (5) and adding Subdivision (31) to read as follows:

(5) "Groundwater" means water percolating below the surface of the earth. The term does not include brackish groundwater.

(31) "Brackish groundwater" means groundwater containing more than 1,000 milligrams and less than 10,000 milligrams per liter of total dissolved solids.

SECTION 3. Section 36.117, Water Code, is amended by amending Subsection (l) and adding Subsection (m) to read as follows:

(l) Except as provided by Subsection (m), this [This] chapter applies to water wells, including water wells used to supply water for activities related to the exploration or production of hydrocarbons or minerals. This chapter does not apply to production or injection wells drilled for oil, gas, sulphur, uranium, or brine, or for core tests, or for injection of gas, saltwater, or other fluids, under permits issued by the Railroad Commission of Texas.

(m) This chapter does not apply to wells used to withdraw brackish groundwater for an advanced brackish desalination project, as defined by Chapter 201.

SECTION 4. This Act takes effect September 1, 2013.