By: Hinojosa  S.B. No. 1738
         (In the Senate - Filed March 13, 2015; March 24, 2015, read
  first time and referred to Committee on Agriculture, Water, and
  Rural Affairs; April 22, 2015, reported adversely, with favorable
  Committee Substitute by the following vote:  Yeas 7, Nays 0;
  April 22, 2015, sent to printer.)
Click here to see the committee vote
 
  COMMITTEE SUBSTITUTE FOR S.B. No. 1738 By:  Hinojosa
 
 
A BILL TO BE ENTITLED
 
AN ACT
 
  relating to the diversion and use of marine seawater, including the
  development of marine seawater desalination projects, integrated
  marine seawater desalination and power projects, 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 to
  expedite the development of marine seawater from the Gulf of Mexico
  and add this new source of water to this state's existing surface
  water and groundwater resources in order to bring into balance the
  supply of and demand for water in 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 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 for and reduce the
  cost and regulation of marine seawater desalination.
         (d)  The legislature finds that marine seawater desalination
  projects should be cost-effectively and timely developed,
  concurrently with other water planning solutions, to help this
  state meet its current and future firm water needs.
         (e)  The legislature finds that it is necessary and
  appropriate to grant certain rights or authority and provide for
  expedited and streamlined permitting for marine seawater
  desalination projects and integrated marine seawater desalination
  and power projects in order to avoid unnecessary costs, delays, and
  uncertainty and thereby help justify the investment of significant
  resources of this state in the development of such projects.
         SECTION 2.  Section 11.002, Water Code, is amended by adding
  Subdivision (22) to read as follows:
               (22)  "Marine seawater" has the meaning assigned by
  Section 18.001.
         SECTION 3.  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 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, "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)  Without obtaining a permit, a water supply entity may
  divert marine seawater from the Gulf of Mexico at one or more points
  of diversion located at least three miles from the coast of this
  state and use the seawater diverted for any beneficial purpose.
         (c)  Before a water supply entity first diverts marine
  seawater under Subsection (b), the entity must give notice to the
  commission of the proposed diversion.
         (d)  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.
         (e)  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), 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, as defined by Section 18.001, 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 6.  Subtitle C, Title 2, Water Code, is amended by
  adding Chapter 18 to read as follows:
  CHAPTER 18. MARINE SEAWATER DESALINATION PROJECTS AND INTEGRATED
  MARINE SEAWATER DESALINATION AND POWER PROJECTS
         Sec. 18.001.  DEFINITIONS. In this chapter:
               (1)  "Board" means the Texas Water Development Board.
               (2)  "Commission" means the Texas Commission on
  Environmental Quality.
               (3)  "Land office" means the General Land Office.
               (4)  "Marine seawater" means water that is derived from
  the Gulf of Mexico.
               (5)  "Political subdivision" means a municipality,
  county, or other body politic or corporate of this state, including
  a district or authority created under Section 52, Article III, or
  Section 59, Article XVI, Texas Constitution.
               (6)  "Project" means:
                     (A)  a marine seawater desalination project;
                     (B)  an integrated marine seawater desalination
  and power project; or
                     (C)  a facility for the storage, conveyance, and
  delivery of desalinated marine seawater.
         Sec. 18.002.  POWERS AND DUTIES OF BOARD. (a)  The board has
  general jurisdiction over the provision of state financial
  assistance for projects.
         (b)  The board may provide financial assistance for all or
  part of a project from any source of funding that may be available
  to the board for that purpose, including:
               (1)  the state water implementation fund for Texas, in
  accordance with Subchapter G, Chapter 15; and
               (2)  the state water implementation revenue fund for
  Texas, in accordance with Subchapter H, Chapter 15.
         (c)  If the board determines that a project for which
  financial assistance from the board is sought should be developed,
  the board shall pursue all available alternatives in order to
  provide the necessary financial assistance.
         Sec. 18.003.  POWERS AND DUTIES OF COMMISSION. (a)  The
  commission has general jurisdiction over the permitting of
  projects.
         (b)  The commission shall consult with the land office,
  School Land Board, board, Parks and Wildlife Department, Public
  Utility Commission of Texas, or Electric Reliability Council of
  Texas over any aspect of a project that also falls within the
  general jurisdiction of that agency or entity.
         (c)  The commission shall provide notice and an opportunity
  for the submission of written comment, but is not required to
  provide an opportunity for a contested case hearing, regarding
  commission actions relating to a permit for a project.
         Sec. 18.004.  POWERS AND DUTIES OF POLITICAL SUBDIVISIONS.
  (a)  A political subdivision may:
               (1)  own all or any interest in a project; and
               (2)  sell water produced or power generated by a
  project.
         (b)  Without obtaining a water right from the commission, a
  political subdivision may:
               (1)  divert marine seawater from the Gulf of Mexico at
  one or more points of diversion located at least three miles from
  the coast of this state;
               (2)  desalinate marine seawater;
               (3)  use diverted marine seawater for power plant
  cooling or any other beneficial use before desalinating the marine
  seawater;
               (4)  use desalinated marine seawater in this state for
  any beneficial purpose; and
               (5)  return unconsumed marine seawater or concentrated
  saline water resulting from the process for desalinating marine
  seawater to the Gulf of Mexico at one or more points of return.
         (c)  This subsection applies only to a project to which
  Subsection (b) applies.  The commission may not limit:
               (1)  the number of points of diversion or the rate of
  diversion of marine seawater; or
               (2)  the number of points of return or the rate of
  return of unconsumed marine seawater or concentrated saline water
  resulting from the process for desalinating marine seawater.
         (d)  Before beginning construction of an intake or return
  facility for a project, a political subdivision must obtain the
  approval of the land office of the location of the point of intake
  or return and the plans and specifications for the facility if the
  facility will be located on state land. The process for obtaining
  the approval of the land office is not subject to the requirements
  relating to a contested case hearing under any statute or rule,
  including this chapter, another chapter of this code, Chapter 33,
  Natural Resources Code, or Subchapters C-G, Chapter 2001,
  Government Code.
         (e)  Before a political subdivision first diverts marine
  seawater under Subsection (b), the political subdivision must give
  notice to the commission of the proposed diversion.
         (f)  A political subdivision may assign the rights granted by
  this section to the owner or operator of a project.
         Sec. 18.005.  EXPEDITED PROCESSING OF AND ACTION ON
  APPLICATIONS. (a)  This section applies to each application or
  request for a permit or other authorization, contract, lease,
  easement, or grant of an interest in property submitted to a state
  or local governmental entity for a project, including an
  application submitted to:
               (1)  the commission for a permit or authorization under
  Chapter 26 of this code or Chapter 382, Health and Safety Code; or
               (2)  the School Land Board to acquire rights in coastal
  public land under Chapter 33, Natural Resources Code.
         (b)  A governmental entity to which an application or request
  is submitted shall expedite and streamline to the extent possible
  the processing of and action on the application or request.
         (c)  A governmental entity's processing of and action on an
  application or request submitted to the governmental entity is not
  subject to the requirements relating to a contested case hearing
  under any statute or rule, including this chapter, another chapter
  of this code, Chapter 33, Natural Resources Code, or Subchapters
  C-G, Chapter 2001, Government Code.
         SECTION 7.  Section 341.001, Health and Safety Code, is
  amended by adding Subdivisions (2-a) and (4-a) to read as follows:
               (2-a) "Desalination facility" means a facility used for
  the treatment of marine seawater to remove dissolved mineral salts
  and other dissolved solids.
               (4-a) "Marine seawater" has the meaning assigned by
  Section 18.001, Water Code.
         SECTION 8.  Subchapter C, Chapter 341, Health and Safety
  Code, is amended by adding Section 341.03595 to read as follows:
         Sec. 341.03595.  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 one or more of
  the following:
               (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)  information 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 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.
 
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