BILL ANALYSIS

Senate Research Center	H.B. 4856
88R23613 ANG-F	By: Darby (Perry)
	Water, Agriculture & Rural Affairs
	5/17/2023
	Engrossed

AUTHOR'S / SPONSOR'S STATEMENT OF INTENT

Large amounts of produced water are generated from the production of oil and gas, which is otherwise known as fluid oil and gas waste. Historically, operators have managed produced water by means of disposal, and more recently, through reuse in hydraulic fracturing and other practices. Nevertheless, substantial volumes of produced water require the state and industry to consider additional management and recycling options. Beneficial reuse solutions outside of the oil and gas industry, including aquifer storage and recharge, are being explored. Excess produced water could provide a significant new water source. As innovators are piloting produced water recycling projects, it is vital to establish clarity surrounding agency jurisdiction. H.B. 4856 seeks to address this issue by specifying that the exclusive jurisdiction of the Texas Commission on Environmental Quality over the regulation and permitting of recharge injection wells includes such wells used for the injection of fluid oil and gas waste.

H.B. 4856 amends current law relating to the jurisdiction of the Texas Commission on Environmental Quality over certain recharge injection wells.

RULEMAKING AUTHORITY

This bill does not expressly grant any additional rulemaking authority to a state officer, institution, or agency.

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Section 27.201, Water Code, by adding Subdivision (1-a) to define "fluid oil and gas waste."

SECTION 2. Amends Section 27.202, Water Code, as follows:

Sec. 27.202.� JURISDICTION. (a) Creates this subsection from existing text. Provides that the Texas Commission on Environmental Quality (TCEQ) has exclusive jurisdiction over the regulation and permitting of recharge injection wells, including recharge injection wells used for the injection of fluid oil and gas waste.

(b) Prohibits a recharge injection well from being used for the injection of fluid oil and gas waste unless the waste has been treated to meet the standards adopted by TCEQ under Subchapter H (Aquifer Recharge Projects).

SECTION 3. Effective date: upon passage September 1, 2023.