87R7737 SLB-D
 
  By: Perry S.B. No. 601
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to the creation and activities of the Texas Produced Water
  Consortium.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Chapter 109, Education Code, is amended by
  adding Subchapter E to read as follows:
  SUBCHAPTER E. TEXAS PRODUCED WATER CONSORTIUM
         Sec. 109.201.  DEFINITIONS. In this subchapter:
               (1)  "Board" means the board established by Section
  109.203.
               (2)  "Consortium" means the Texas Produced Water
  Consortium.
               (3)  "Host university" means Texas Tech University.
               (4)  "Private entity" means an individual,
  corporation, or nonprofit corporation.
               (5)  "Produced water" means naturally occurring water
  that emerges from the ground during the production of oil or gas.
         Sec. 109.202.  TEXAS PRODUCED WATER CONSORTIUM. The Texas
  Produced Water Consortium is a consortium consisting of the host
  university, the board, and private entities.  The consortium is
  created to bring together information resources to study the
  economics of and technology related to beneficial uses of produced
  water.
         Sec. 109.203.  ADMINISTRATION. (a)  The consortium is
  governed by a board composed of representatives of the:
               (1)  Railroad Commission of Texas;
               (2)  State Energy Conservation Office;
               (3)  Texas Commission on Environmental Quality;
               (4)  Texas Economic Development and Tourism Office
  within the office of the governor; and
               (5)  Texas Water Development Board.
         (b)  Each entity described by Subsection (a) shall select a
  representative to serve on the board.
         (c)  The board shall meet as often as necessary to ensure the
  consortium meets the requirements of this subchapter.
         Sec. 109.204.  DUTIES. (a)  The consortium shall study the
  economics of beneficial uses of produced water and technology
  needed for those uses.  After October 1, 2022, the research and
  investigation goals of the consortium shall be directed by the
  sponsors of the consortium.
         (a-1)  This subsection expires October 1, 2022.  Not later
  than September 1, 2022, the consortium shall produce a report that
  includes:
               (1)  suggested changes to law to better enable
  beneficial uses of produced water;
               (2)  an economically feasible pilot project for state
  participation in a produced water facility; and
               (3)  an economic model for using produced water in an
  economic and efficient way.
         (b)  The host university shall:
               (1)  provide staff and other resources necessary for
  the consortium to meet the requirements of this subchapter; and
               (2)  solicit participation from:
                     (A)  the oil and gas industry;
                     (B)  companies that own or manage the
  infrastructure to store produced water and transport that water to
  other locations for reuse; and
                     (C)  water users, including:
                           (i)  agricultural users;
                           (ii)  political subdivisions;
                           (iii)  universities; and
                           (iv)  water utilities.
         (c)  The host university may coordinate with other members of
  the state university system and state agencies to provide resources
  necessary for the consortium to meet the requirements of this
  subchapter.
         Sec. 109.205.  FUNDING. (a) The board and the host
  university shall collaborate to create a fee structure for private
  sponsors that establishes fees for various sponsorship levels for
  private entities that may contribute money to the consortium for
  research and investigation.
         (b)  Money paid by private entities as sponsorship fees may
  be used only for research and investigation conducted by the
  consortium.
         (c)  Except for state money appropriated to the host
  university for use in meeting the requirements of Section
  109.204(a-1), and resources provided by the host university, other
  state university system entities, or state agencies, the consortium
  may not receive state money.
         (d)  The consortium may accept gifts and grants of money,
  equipment, or other resources necessary to accomplish the duties of
  this subchapter.
         Sec. 109.206.  ACCESS TO DATA. (a)  In exchange for
  sponsorship of the consortium, a private entity may receive access
  to data produced as a result of investigation by the consortium in
  an amount proportionate to the entity's level of sponsorship.
         (b)  A private entity's access to the consortium's
  investigation data must be governed by a sponsorship contract
  between the host university and the entity that describes the data
  to be released to the private entity.
         SECTION 2.  (a) Not later than December 1, 2021, each state
  agency described by Section 109.203(a), Education Code, as added by
  this Act, shall select a representative for the board of the Texas
  Produced Water Consortium, as required by Section 109.203(b),
  Education Code, as added by this Act.
         (b)  Not later than September 1, 2022, the Texas Produced
  Water Consortium shall deliver the report required by Section
  109.204(a-1), Education Code, as added by this Act.
         (c)  Not later than September 1, 2023, the Texas Produced
  Water Consortium shall create the pilot project required by Section
  109.204(a-1)(2), Education Code, as added by this Act.
         SECTION 3.  This Act takes effect September 1, 2021.