H.B. No. 2647

AN ACT

relating to a limitation on the authority to curtail groundwater production from wells used for power generation or mining.

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

SECTION 1. Subchapter D, Chapter 36, Water Code, is amended by adding Section 36.1175 to read as follows:

Sec. 36.1175. POWER GENERATION EXEMPTION. (a) This section applies to a well that produces groundwater used to support the operation of a power generation facility or a mine that provides fuel to a power generation facility, including production for boiler makeup water, fire suppression, dewatering, potable water, and depressurization.

(b) An owner or operator of a well to which this section applies is entitled to petition the district for a delay in the effective date of any district action that would reduce or curtail production from a well or limit the groundwater production rate of a well to an amount that is less than:

(1) the maximum annual amount of withdrawal as of September 1, 2014, authorized by the permit, regardless of whether the permit was issued by the district or the Railroad Commission of Texas; or

(2) the maximum annual historical amount of withdrawal recorded before September 1, 2014, if the well was in operation on that date and no permit from any entity was required for the operation of the well.

(c) The owner or operator of a well subject to this section may petition for a delay described by Subsection (b). The petition must include evidence that the owner or operator is engaging in good faith efforts to identify practicable, readily available alternative sources of water with comparable quality. After receipt of the petition, the district shall hold a public hearing and after the hearing shall make a final determination as to whether the proposed reduction or curtailment in groundwater production would threaten public health or safety or the reliability of the electric grid. The proposed reduction or curtailment for which the owner or operator is seeking a delay may not take effect until the district has made a final determination under this subsection.

(d) If the district determines under Subsection (c) that a proposed reduction or curtailment in groundwater production would threaten public health or safety or the reliability of the electric grid, the district shall delay the effective date of the reduction or curtailment to a date not earlier than seven years after the date that the final determination is made.

(e) If an owner or operator receives a delay under Subsection (d), the owner or operator may petition the district at any time before the delayed effective date of the proposed reduction or curtailment to delay the effective date a second time for an additional three years as provided by this subsection. After receiving the petition, the district shall hold a public hearing and after the hearing shall make a final determination to approve the additional three-year delay if the district determines that:

(1) the owner or operator has engaged in good faith efforts to identify and begin implementing strategies to comply with the proposed reduction or curtailment; and

(2) implementation of the proposed reduction or curtailment in groundwater production on the date set under Subsection (d) would threaten public health or safety or the reliability of the electric grid.

(f) In making a final determination described by Subsection (c), (d), or (e), the district shall request, obtain, and give great weight to an opinion issued by the Public Utility Commission of Texas.

SECTION 2. The changes in law made by this Act apply only to a reduction or curtailment in groundwater production ordered by a groundwater conservation district on or after the effective date of this Act. A reduction or curtailment in groundwater production ordered by a groundwater conservation district before the effective date of this Act is governed by the law in effect at the time the reduction or curtailment in groundwater production was ordered, and the former law is continued in effect for that purpose.

SECTION 3. 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.

______________________________ ______________________________

President of the Senate Speaker of the House

I certify that H.B. No. 2647 was passed by the House on May 4, 2015, by the following vote: Yeas 139, Nays 2, 1 present, not voting.

______________________________ Chief Clerk of the House

I certify that H.B. No. 2647 was passed by the Senate on May 26, 2015, by the following vote: Yeas 21, Nays 10.

______________________________ Secretary of the Senate APPROVED: _____________________

Date

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Governor