By: Hunter H.B. No. 4097

A BILL TO BE ENTITLED

AN ACT

relating to seawater desalination projects .

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

SECTION 1. Subchapter C, Chapter 341, Health and Safety Code, is amended by adding Section 341.0331 to read as follows:

Sec. 341.0331. DESALINATION FOR NONPOTABLE USE. (a) This section applies only to the desalination of seawater under a permit issued under Section 26.0272, Water Code.

(b) The commission shall adopt rules that allow desalinated seawater to be used for nonpotable uses. The rules must specify that:

(1) the quality of water produced by seawater desalination does not have to meet the criteria prescribed by the sanitary standards for drinking water adopted by the commission;

(2) a public drinking water supply may not be connected to any alternative source unless the connection is designed to ensure against a backflow or siphonage of water into the drinking water supply; and

(3) equipment used to desalinate seawater for nonpotable uses may not subsequently be used to produce water for human consumption.

SECTION 2. Section 39.203, Utilities Code, is amended by adding Subsection (i) to read as follows:

(i) The commission, in cooperation with transmission and distribution utilities and the ERCOT independent system operator, shall study whether existing transmission and distribution planning processes are sufficient to provide adequate infrastructure for seawater desalination projects. If the commission determines that statutory changes are needed to ensure that adequate infrastructure is developed for projects of that kind, the commission shall include recommendations in the report required by Section 31.003.

SECTION 3. Subchapter Z, Chapter 39, Utilities Code, is amended by adding Section 39.9055 to read as follows:

Sec. 39.9055. EXAMINATION OF DEMAND RESPONSE POTENTIAL OF SEAWATER DESALINATION PROJECTS. The commission and the ERCOT independent system operator shall study the potential for seawater desalination projects to participate in existing demand response opportunities in the ERCOT market. To the extent feasible, the study shall determine whether the operational characteristics of seawater desalination projects enable projects of that kind to participate in ERCOT-operated ancillary services markets or other competitively supplied demand response opportunities. The study shall also determine the potential economic benefit to a seawater desalination project if the project is able to reduce its demand during peak pricing periods. The commission shall include the results of the study in the report required by Section 31.003.

SECTION 4. Subchapter D, Chapter 11, Water Code, is amended by adding Section 11.1405 to read as follows:

Sec. 11.1405. PERMIT FOR DESALINATION OF SEAWATER FOR USE FOR INDUSTRIAL PURPOSES. (a) The commission may issue a permit to authorize a diversion of state water from the Gulf of Mexico or a bay or arm of the Gulf of Mexico for desalination and use for industrial purposes.

(b) A permit application under this section must be submitted as required by commission rule.

(c) The commission is not required to make a finding of water availability for an application under this section.

(d) The commission shall evaluate whether any proposed diversion under this section is consistent with any applicable environmental flow standards established under Section 11.1471.

(e) The commission may include any provision in a permit issued under this section that the commission considers necessary to comply with the environment flow standards established under Section 11.1471.

(f) A permit issued under this section does not require public notice and is not subject to a contested case hearing.

SECTION 5. Subchapter B, Chapter 26, Water Code, is amended by adding Section 26.0272 to read as follows:

Sec. 26.0272. PERMITS AUTHORIZING DISCHARGES FROM SEAWATER DESALINATION FACILITIES. (a) This section applies only to a facility that generates waste from the desalination of seawater for use as part of an industrial process.

(b) The commission may issue a permit for the discharge of waste or pollutants from the desalination of seawater into the portion of the Gulf of Mexico inside the territorial limits of the state.

(c) Before issuing a permit under this section, the commission must evaluate the discharge of waste or pollutants from the desalination of seawater into the Gulf of Mexico for compliance with the state water quality standards adopted by the commission, the requirements of the Texas Pollutant Discharge Elimination System program, and applicable federal law.

(d) The commission may issue individual permits or a general permit under this section. If the commission elects to issue individual permits under this section, the commission must establish procedures for the review of an application that, at a minimum, comply with the requirements of Subchapter M, Chapter 5. If the commission elects to issue a general permit under this section, the commission must comply with the requirements of Section 26.040.

SECTION 6. Section 27.021, Water Code, is amended by adding Subsection (a-1) to read as follows:

(a-1) A permit issued under this section may authorize the disposal of brine produced by the desalination of seawater.

SECTION 7. Section 27.025, Water Code, is amended by adding Subsection (a-1) to read as follows:

(a-1) A general permit issued under this section may authorize an injection well for the disposal of brine produced by the desalination of seawater.

SECTION 8. 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.