84R19516 SMH-F
 
  By: Lucio III, Miller of Comal, Workman H.B. No. 2031
 
  Substitute the following for H.B. No. 2031:
 
  By:  Larson C.S.H.B. No. 2031
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to the diversion, treatment, and use of marine seawater
  and the discharge of treated marine seawater and waste resulting
  from the desalination of marine seawater; adding provisions subject
  to a criminal penalty.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  (a)  With this state facing an ongoing drought,
  continuing population growth, and the need to remain economically
  competitive, every effort must be made to secure and develop
  plentiful and cost-effective water supplies to meet the
  ever-increasing demand for water. The purpose of this Act is not to
  hinder efforts to conserve or develop other surface water supplies
  but rather to more fully explore and expedite the development of all
  this state's water resources in order to balance this state's supply
  and demand for water, which is one of the most precious resources of
  this state.
         (b)  Currently, the projected long-term water needs of this
  state far exceed the firm supplies that are available and that can
  reasonably be made available from freshwater sources within this
  state. The legislature recognizes the importance of providing for
  this state's current and future water needs at all times, including
  during severe droughts.
         (c)  In this state, marine seawater is a potential new source
  of water for drinking and other beneficial uses. This state has
  access to vast quantities of marine seawater from the Gulf of
  Mexico. The purpose of this Act is to streamline the regulatory
  process for and reduce the time required for and cost of marine
  seawater desalination.
         (d)  The legislature finds that marine seawater desalination
  facilities should be cost-effectively and timely developed,
  concurrently with other water planning solutions, to help this
  state meet its current and future water needs.
         (e)  The legislature finds that it is necessary and
  appropriate to grant authority and provide for expedited and
  streamlined authorization for marine seawater desalination
  facilities in order to avoid unnecessary costs, delays, and
  uncertainty and thereby help justify the investment of significant
  resources in the development of such facilities.
         SECTION 2.  Section 11.0237(b), Water Code, is amended to
  read as follows:
         (b)  This section does not alter the commission's
  obligations under Section 11.042(a-1), (a-2), (b), or (c),
  11.046(b), 11.085(k)(2)(F), 11.134(b)(3)(D), 11.147, 11.1471,
  11.1491, 11.150, 11.152, 16.058, or 16.059.
         SECTION 3.  Section 11.042, Water Code, is amended by adding
  Subsection (a-2) to read as follows:
         (a-2)  In this subsection, "water supply entity" has the
  meaning assigned by Section 11.156. With prior authorization
  granted under rules prescribed by the commission, a water supply
  entity may use the bed and banks of any flowing natural stream in
  this state or a lake, reservoir, or other impoundment in this state
  to convey marine seawater that has been treated so as to meet
  standards that are at least as stringent as the water quality
  standards applicable to the receiving stream or impoundment adopted
  by the commission. The commission shall provide for notice and an
  opportunity for the submission of written comment but may not
  provide an opportunity for a public hearing regarding commission
  actions relating to an authorization under this subsection to use
  the bed and banks of a flowing natural stream to convey treated
  marine seawater. The commission shall provide for notice, an
  opportunity for the submission of written comment, and an
  opportunity for a contested case hearing regarding commission
  actions relating to an authorization under this subsection to use a
  lake, reservoir, or other impoundment to convey treated marine
  seawater. A water supply entity may not discharge treated marine
  seawater into a flowing natural stream in this state or a lake,
  reservoir, or other impoundment in this state for the purpose of
  conveyance of the water under an authorization granted under this
  subsection unless the entity holds a permit under Section 26.054
  authorizing the discharge. Treated marine seawater that is
  conveyed under an authorization granted under this subsection may
  be used only by the water supply entity to which the authorization
  is granted. This subsection does not prohibit a water supply entity
  from conveying treated marine seawater in any other manner
  authorized by law.
         SECTION 4.  Section 11.121, Water Code, is amended to read as
  follows:
         Sec. 11.121.  PERMIT REQUIRED. Except as provided in
  Sections 11.142, 11.1421, [and] 11.1422, and 11.156 [of this code],
  no person may appropriate any state water or begin construction of
  any work designed for the storage, taking, or diversion of water
  without first obtaining a permit from the commission to make the
  appropriation.
         SECTION 5.  Subchapter D, Chapter 11, Water Code, is amended
  by adding Section 11.156 to read as follows:
         Sec. 11.156.  PERMIT OR PERMIT EXEMPTION FOR DIVERSION AND
  USE OF MARINE SEAWATER BY WATER SUPPLY ENTITY. (a) In this section,
  "water supply entity" includes:
               (1)  a retail public utility as defined by Section
  13.002;
               (2)  a wholesale water supplier; or
               (3)  an irrigation district operating under Chapter 58.
         (b)  A water supply entity must obtain a permit to divert and
  use state water that consists of marine seawater if:
               (1)  the point of diversion is located less than six
  miles from any point located on the coast of this state; or
               (2)  the seawater contains a total dissolved solids
  concentration based on a yearly average of samples taken at the
  water source of less than 20,000 milligrams per liter.
         (c)  A water supply entity may divert and use state water
  that consists of marine seawater without obtaining a permit if
  Subsection (b) does not apply.
         (d)  A water supply entity may use marine seawater diverted
  as authorized by a permit issued under Subsection (b), or as
  authorized by Subsection (c), for any beneficial purpose, but only
  if the seawater is treated in accordance with rules adopted by the
  commission before it is used. Rules adopted under this subsection
  may impose different treatment requirements based on the purpose
  for which the seawater is to be used but must require that the
  seawater be treated in accordance with:
               (1)  Section 341.0316(b)(2), Health and Safety Code, if
  the water is to be used as public drinking water;
               (2)  Section 11.042(a-2) if the bed and banks of a
  flowing natural stream in this state or a lake, reservoir, or other
  impoundment in this state are to be used to convey the water; and
               (3)  Section 26.054(c)(1) if the water is to be
  discharged into a flowing natural stream in this state or a lake,
  reservoir, or other impoundment in this state.
         (e)  The commission shall adopt rules providing an expedited
  procedure for acting on an application for a permit under
  Subsection (b). The rules must provide for notice, an opportunity
  for the submission of written comment, and an opportunity for a
  contested case hearing regarding commission actions relating to a
  permit.
         (f)  The point of diversion of marine seawater may not be in a
  bay or estuary.
         (g)  The commission shall adopt rules prescribing the number
  of points from which, and the rate at which, a facility may divert
  marine seawater.
         (h)  The Parks and Wildlife Department and the General Land
  Office jointly shall conduct a study to identify zones in the Gulf
  of Mexico that are appropriate for the diversion of marine
  seawater, taking into account the need to protect marine organisms,
  and shall recommend zones for designation by the commission. Not
  later than September 1, 2020, the commission shall adopt rules
  designating appropriate diversion zones. A diversion zone may be
  contiguous to or the same as or may overlap a discharge zone
  designated under Section 26.054. The point or points at which a
  facility may divert marine seawater must be located in a diversion
  zone designated by the commission under rules adopted under this
  subsection if:
               (1)  the facility is authorized by a permit issued
  under Subsection (b) after the rules are adopted; or
               (2)  the facility is exempt under Subsection (c) from
  the requirement of a permit and construction of the facility begins
  after the rules are adopted.
         (i)  Until the commission adopts rules under Subsection (h),
  a water supply entity must consult the Parks and Wildlife
  Department and the General Land Office regarding the point or
  points at which the facility the entity proposes to construct may
  divert marine seawater before submitting an application for a
  permit for the facility if Subsection (b) applies or before
  beginning construction of the facility if Subsection (c) applies.
         SECTION 6.  Section 16.053(e), Water Code, is amended to
  read as follows:
         (e)  Each regional water planning group shall submit to the
  development board a regional water plan that:
               (1)  is consistent with the guidance principles for the
  state water plan adopted by the development board under Section
  16.051(d);
               (2)  provides information based on data provided or
  approved by the development board in a format consistent with the
  guidelines provided by the development board under Subsection (d);
               (2-a)  is consistent with the desired future conditions
  adopted under Section 36.108 for the relevant aquifers located in
  the regional water planning area as of the date the board most
  recently adopted a state water plan under Section 16.051 or, at the
  option of the regional water planning group, established subsequent
  to the adoption of the most recent plan;
               (3)  identifies:
                     (A)  each source of water supply in the regional
  water planning area, including information supplied by the
  executive administrator on the amount of modeled available
  groundwater in accordance with the guidelines provided by the
  development board under Subsections (d) and (f);
                     (B)  factors specific to each source of water
  supply to be considered in determining whether to initiate a
  drought response;
                     (C)  actions to be taken as part of the response;
  and
                     (D)  existing major water infrastructure
  facilities that may be used for interconnections in the event of an
  emergency shortage of water;
               (4)  has specific provisions for water management
  strategies to be used during a drought of record;
               (5)  includes but is not limited to consideration of
  the following:
                     (A)  any existing water or drought planning
  efforts addressing all or a portion of the region;
                     (B)  approved groundwater conservation district
  management plans and other plans submitted under Section 16.054;
                     (C)  all potentially feasible water management
  strategies, including but not limited to improved conservation,
  reuse, and management of existing water supplies, conjunctive use,
  acquisition of available existing water supplies, and development
  of new water supplies;
                     (D)  protection of existing water rights in the
  region;
                     (E)  opportunities for and the benefits of
  developing regional water supply facilities or providing regional
  management of water supply facilities;
                     (F)  appropriate provision for environmental
  water needs and for the effect of upstream development on the bays,
  estuaries, and arms of the Gulf of Mexico and the effect of plans on
  navigation;
                     (G)  provisions in Section 11.085(k)(1) if
  interbasin transfers are contemplated;
                     (H)  voluntary transfer of water within the region
  using, but not limited to, regional water banks, sales, leases,
  options, subordination agreements, and financing agreements; [and]
                     (I)  emergency transfer of water under Section
  11.139, including information on the part of each permit, certified
  filing, or certificate of adjudication for nonmunicipal use in the
  region that may be transferred without causing unreasonable damage
  to the property of the nonmunicipal water rights holder; and
                     (J)  opportunities for and the benefits of
  developing large-scale desalination facilities for marine seawater
  that serve local or regional entities;
               (6)  identifies river and stream segments of unique
  ecological value and sites of unique value for the construction of
  reservoirs that the regional water planning group recommends for
  protection under Section 16.051;
               (7)  assesses the impact of the plan on unique river and
  stream segments identified in Subdivision (6) if the regional water
  planning group or the legislature determines that a site of unique
  ecological value exists;
               (8)  describes the impact of proposed water projects on
  water quality; and
               (9)  includes information on:
                     (A)  projected water use and conservation in the
  regional water planning area; and
                     (B)  the implementation of state and regional
  water plan projects, including water conservation strategies,
  necessary to meet the state's projected water demands.
         SECTION 7.  Subchapter B, Chapter 26, Water Code, is amended
  by adding Section 26.054 to read as follows:
         Sec. 26.054.  DISCHARGE OF TREATED MARINE SEAWATER OR WASTE
  RESULTING FROM DESALINATION OF MARINE SEAWATER. (a) In this
  section, "water supply entity" has the meaning assigned by Section
  11.156.
         (b)  A water supply entity must obtain a permit to discharge:
               (1)  marine seawater into a flowing natural stream in
  this state or a lake, reservoir, or other impoundment in this state;
  or
               (2)  waste resulting from the desalination of marine
  seawater into the Gulf of Mexico.
         (c)  A water supply entity must:
               (1)  treat marine seawater so as to meet standards that
  are at least as stringent as the water quality standards applicable
  to the receiving stream or impoundment adopted by the commission
  before discharging the seawater under a permit described by
  Subsection (b)(1); and
               (2)  comply with all applicable state and federal
  requirements when discharging waste resulting from the
  desalination of marine seawater into the Gulf of Mexico under a
  permit described by Subsection (b)(2).
         (d)  The commission shall adopt rules providing an expedited
  procedure for acting on an application for a permit under
  Subsection (b). The rules must provide for:
               (1)  notice, an opportunity for the submission of
  written comment, and an opportunity to request a public meeting and
  may authorize a contested case hearing regarding commission actions
  relating to a permit described by Subsection (b)(1);
               (2)  notice, an opportunity for the submission of
  written comment, an opportunity to request a public meeting, and an
  opportunity for a contested case hearing regarding commission
  actions relating to a permit described by Subsection (b)(2) if the
  point of discharge is located within six miles of any point located
  on the coast of this state; and
               (3)  notice and an opportunity for the submission of
  written comment regarding commission actions relating to a permit
  described by Subsection (b)(2) if Subdivision (2) of this
  subsection does not apply.
         (e)  A water supply entity may not discharge waste resulting
  from the desalination of marine seawater into a bay or estuary.
         (f)  The Parks and Wildlife Department and the General Land
  Office jointly shall conduct a study to identify zones in the Gulf
  of Mexico that are appropriate for the discharge of waste resulting
  from the desalination of marine seawater, taking into account the
  need to protect marine organisms, and shall recommend zones for
  designation by the commission. Not later than September 1, 2020,
  the commission shall adopt rules designating appropriate discharge
  zones. The point at which a facility may discharge waste resulting
  from the desalination of marine seawater must be located in a
  discharge zone designated by the commission under rules adopted
  under this subsection if the facility is authorized by a permit
  issued under Subsection (b)(2) after the rules are adopted.
         (g)  Until the commission adopts rules under Subsection (f),
  a water supply entity must consult the Parks and Wildlife
  Department and the General Land Office regarding the point at which
  the facility the entity proposes to construct may discharge waste
  resulting from the desalination of marine seawater before
  submitting an application for a permit under Subsection (b)(2) for
  the facility.
         SECTION 8.  Subchapter C, Chapter 341, Health and Safety
  Code, is amended by adding Section 341.0316 to read as follows:
         Sec. 341.0316.  DESALINATION OF MARINE SEAWATER FOR DRINKING
  WATER. (a) This section applies only to a desalination facility
  that is intended to treat marine seawater for the purpose of
  producing water for the public drinking water supply. This section
  does not apply to a desalination facility used to produce
  nonpotable water.
         (b)  The commission shall adopt rules to:
               (1)  allow water treated by a desalination facility to
  be used as public drinking water; and
               (2)  ensure that water treated by a desalination
  facility meets the requirements of Section 341.031 and rules
  adopted under that section.
         (c)  A person may not begin construction of a desalination
  facility that treats marine seawater for the purpose of removing
  primary or secondary drinking water contaminants unless the
  commission approves the construction of the facility.
         SECTION 9.  Section 16.060, Water Code, is repealed.
         SECTION 10.  This Act takes effect immediately if it
  receives a vote of two-thirds of all the members elected to each
  house, as provided by Section 39, Article III, Texas Constitution.  
  If this Act does not receive the vote necessary for immediate
  effect, this Act takes effect September 1, 2015.