By: Lucio III H.B. No. 2031

A BILL TO BE ENTITLED

AN ACT

relating to the development and production of marine seawater desalination, integrated marine seawater desalination, and facilities for the storage, conveyance, and delivery of desalinated marine seawater.

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 the conservation or development of other surface water efforts; however, its purpose is to more fully explore and expedite the development of all water resources in order to balance the state's supply and demand for water, 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 the state. The legislature recognizes the importance of providing for this state's current and future water needs at all times, including during severe droughts.

(b) In Texas, marine seawater is a potential new source of public drinking water. This state has access to over 600 quadrillion gallons of marine seawater from the Gulf of Mexico. The purpose of this Act is to streamline the process and reduce the cost and regulation of marine seawater desalination.

(c) The legislature finds that marine seawater desalination projects should be cost-effectively, timely, and concurrently developed, alongside other water planning solutions, to help this state meet its current and future firm water needs.

(d) The legislature finds that it is necessary and appropriate to grant certain rights or authority and provide for expedited and streamlined permitting for large-scale marine seawater desalination projects and integrated marine seawater desalination and power projects, to avoid unnecessary costs, delays and uncertainty and thereby help justify the investment of significant resources of the state in the development of such projects.

SECTION 2. 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 11.1423 [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 3. Section 11.1311, Water Code, is amended by amending Subsection (b) and adding Subsection (b-1) to read as follows:

(b) The board may transfer interests in a permit issued under Subsection (a) [this section] to a municipality, river authority, other political subdivision, or water supply corporation organized under Chapter 67 as otherwise provided by law.

(b-1) In this subsection, "marine seawater" has the meaning assigned by Section 11.1423. On submission of an application to the commission, the commission shall issue without a hearing a permit to use the bed and banks of any flowing natural stream in the state to convey marine seawater. The commission shall adopt rules to implement a procedure for application for a permit to convey marine seawater consistent with this subsection. A flowing natural stream does not include impounded water. The commission shall provide notice and an opportunity for hearing for an application for a permit to convey marine seawater into or through a lake, reservoir, or other impoundment.

SECTION 4. Subchapter D, Chapter 11, Water Code, is amended by adding Section 11.1423 to read as follows:

Sec. 11.1423. PERMIT EXEMPTION FOR USE BY WATER SUPPLY ENTITY OF MARINE SEAWATER. (a) In this section:

(1) "Marine seawater" means water that contains a total dissolved solids concentration based on a yearly average of samples taken at the water source of more than 10,000 milligrams per liter that is derived from the Gulf of Mexico or an adjacent bay, estuary, or arm of the Gulf of Mexico.

(2) "Water supply entity" includes:

(A) a retail public utility as defined by Section 13.002;

(B) a wholesale water supplier; or

(C) an irrigation district operating under Chapter 58.

(b) Without obtaining a permit, a water supply entity may use for any beneficial purpose state water that consists of marine seawater.

(c) A water supply entity must treat marine seawater so that it meets the water quality level of the receiving stream before the entity may put the water into a stream under an authorization granted under Section 11.042.

(d) This section does not prohibit a water supply entity from conveying water under this section in any other manner authorized by law, including through the use of facilities owned or operated by the state if authorized by the state.

SECTION 5. Section 16.053(e)(5), Water Code, is amended by adding Subsection (J) as follows:

(J) opportunities for and the benefits of developing large-scale desalination facilities for marine seawater that serve local or regional entities or;

SECTION 6. Section 16.060, Water Code, is repealed.

SECTION 7. Subtitle C, Title 2, Water Code, is amended by adding Chapter 14 to read as follows:

CHAPTER 14. MARINE SEAWATER DESALINATION PROJECTS AND INTEGRATED

MARINE SEAWATER DESALINATION AND POWER PROJECTS

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 14.001. DEFINITIONS. In this chapter:

(1) "Board" means the Texas Water Development Board.

(2) "Commission" means the Texas Commission on Environmental Quality.

(3) "ERCOT" means the Electric Reliability Council of Texas.

(4) "GLO" means the General Land Office.

(5) "Political subdivision" means a city or county or other body politic or corporate of the state, including any district or authority created under Article III, Section 52, or Article XVI, Section 59, of the Texas Constitution.

(6) "Project" means any project to produce water supplies from marine seawater desalination, any integrated marine seawater desalination and power project, and any facilities for the storage, conveyance, and delivery of water.

(7) "PUC" means the Public Utility Commission.

(8) "School Land Board" means the Texas School Land Board.

(9) "TPWD" means the Texas Parks and Wildlife Department.

SUBCHAPTER B. POWERS AND DUTIES

Sec. 14.021 POWERS AND DUTIES OF THE BOARD. The commission has general jurisdiction over the state financial assistance of projects to produce water supplies from marine seawater desalination, integrated marine seawater desalination and power projects, and facilities for the storage, conveyance, and delivery of water.

Sec. 14.022 POWERS AND DUTIES OF THE COMMISSION. (a) The commission has general jurisdiction over the permitting of projects to produce water supplies from marine seawater desalination, integrated marine seawater desalination and power projects, and facilities for the storage, conveyance, and delivery of water.

(b) The commission shall consult with the GLO, the School Land Board, the board, the TPWD, the PUC, and ERCOT, over all aspects of any project or facilities within the scope of subsection (a) that also fall within the general jurisdiction of each of those agencies.

Sec. 14.023 POWERS OF CERTAIN POLITICAL SUBDIVISIONS. A political subdivision that has a defined territory extending to the Gulf of Mexico may own all or any interest in a project or facilities within the scope of subsection (a) of section 14.021, and may sell water produced and power generated from such project.

SUBCHAPTER C. RIGHTS AND AUTHORIZATIONS

Sec. 14.031 GRANT OF WATER RIGHT TO CERTAIN POLITICAL SUBDIVISIONS. (a) The political subdivision is hereby granted the right to divert marine seawater from the Gulf of Mexico at one or more points of diversion along the Texas coast, to desalinate such water and supply and use the desalinated water within the state for all beneficial uses, and to return the concentrated saline water resulting from the desalination process to the Gulf of Mexico at one or more points of return.

(b) The political subdivision is also granted the right to use marine seawater diverted from the Gulf of Mexico via a desalination project's intake facilities for power plant cooling or any other beneficial use before the marine seawater is desalinated, and then to either desalinate the unconsumed marine seawater or return the unconsumed marine seawater to the Gulf of Mexico via the project's return facilities.

(c) There are no limitations on the number of points of diversion or the rate of diversion at any point of diversion. There are no limitations on the number of points of return or the rate of return.

(d) The political subdivision may assign the rights granted to it under this section to any project to produce water supplies from marine seawater desalination or any integrated marine seawater desalination and power project, or to the owner(s) or operator(s) of such project.

Sec. 14.032 APPROVALS OF GLO AND SCHOOL LAND BOARD REQUIRED. Before construction of any intake or return facilities may commence, the political subdivision first must obtain the GLO's and the School Land Board's approvals of the locations of the points of intake and return and plans and specifications for facilities located on state lands. The GLO's and School Land Board's review and approval processes are not subject to the requirements relating to a contested case hearing under any statute or rule including, without limitation, the provisions of this chapter or other chapter of the Water Code, Chapter 33, Natural Resources Code, or Subchapters C-G, Chapter 2001, Government Code.

SUBCHAPTER D. EXPEDITED AND STREAMLINED PERMITTING

Sec. 14.041 DIRECTION TO PERMITTING AUTHORITIES (a) This section applies to all applications for permits or other authorizations, and all applications or requests for contracts, leases, easements, or grants of interests in property, needed from any state or local governmental authority for any project and facilities within the scope of subsection (a) of section 14.021. Such applications and requests include, but are not limited to, all applications to the TCEQ for permits or authorizations to discharge under Chapter 26, Water Code, all applications to the TCEQ for permits or authorizations under the Texas Clean Air Act, Chapter 382, Health and Safety Code, and all applications to the School Land Board to acquire rights in coastal public land under Chapter 33, Natural Resources Code.

(b) All governmental authorities are directed to expedite and streamline to the extent possible the processing of and action on all applications and requests.

(c) A governmental authority's processing of and action on any application for a permit or other authorization or any application or request for a contract, lease, easement, or grant of interest in property shall not be subject to the requirements relating to a contested case hearing under any statute or rule including, without limitation, the provisions of this chapter or other chapter of the Water Code, Chapter 33, Natural Resources Code, or Subchapters C-G, Chapter 2001, Government Code.

SECTION 8. Section 341.001, Health and Safety Code, is amended by adding Subdivisions (1-a) and (2-a) to read as follows:

(1-a) "Desalination facility" means a facility used for the treatment of brackish water or marine seawater to remove dissolved mineral salts and other dissolved solids; and

(2-a) "Marine seawater" means water that contains a total dissolved solids concentration based on a yearly average of samples taken at the water source of more than 10,000 milligrams per liter that is derived from the Gulf of Mexico or an adjacent bay, estuary, or arm of the Gulf of Mexico.

SECTION 9. Subchapter C, Chapter 341, Health and Safety Code, is amended by adding Section 341.0359 to read as follows:

Sec. 341.0359. DESALINATION OF WATER FOR DRINKING WATER. (a) This section applies only to a desalination facility that is intended to produce 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 unless the commission approves in writing the plans and specifications for the facility.

(d) 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 in writing a report containing:

(1) a computer model acceptable to the commission;

(2) a pilot study with a minimum 40-day run duration without treatment intervention to meet federal and state safe drinking water standards;

(3) data from a similar system installed at another desalination facility that treats source water of a similar or lower quality; or

(4) a full-scale verification protocol with a minimum 40-day run duration without treatment intervention to meet federal and state safe drinking water standards.

(e) If a full-scale verification protocol report is approved, a person may not send water to a public water distribution system without a full-scale verification study:

(1) completed after construction; and

(2) approved by the commission.

(f) Not later than the 100th day after the date the commission receives the report for a proposed desalination facility, the commission shall review the report and issue an exception response letter that may contain conditions for approval.

(g) Not later than the 60th day after the date the commission receives the plans and specifications for a proposed desalination facility, the commission shall review the plans and specifications and issue a response letter that may contain conditions for approval.

(h) A person violates this section if the person fails to meet a condition for approval in a letter issued to the person under Subsection (f) or (g).

SECTION 10. EFFECTIVE DATE OF THIS ACT. 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.