BILL ANALYSIS

Senate Research Center	S.B. 872
88R37 JAM-D	By: Springer
	Water, Agriculture & Rural Affairs
	4/11/2023
	As Filed

AUTHOR'S / SPONSOR'S STATEMENT OF INTENT

Texas' dairy industry was faced with millions of gallons of excess milk with limited capabilities to dispose of the unanticipated surplus at the start of the COVID-19 pandemic and during Winter Storm Uri in 2021.

Currently, the legal method of disposing of "dairy waste" in Texas is to take the milk to a disposal well. There are only two disposal wells in Texas, one in the DFW area and the other in Houston. The average cost to dump a truck load of milk (about 50,000 pounds) is $3,000 which is a costly burden for the dairy co-ops and the farmers. However, land application of milk proves to be great fertilizer. Based on current research, milk itself can improve soil health if applied properly.

This bill authorizes the Texas Commission on Environmental Quality to create rules for the disposal of dairy waste from a dairy producer via two options: the application of dairy waste for fertilizing land and the removal of dairy waste in a retention facility. Under the bill, agricultural use will depend on proven beneficial rates. Disposal in a retention facility will address the risks of affecting water quality and irrigation use through best management practices.

As proposed, S.B. 872 amends current law relating to the authorization for certain land applications and disposal of dairy waste.

[Note: While a statutory reference in this bill is to the Texas Natural Resource Conservation Commission (TNRCC), the following amendments affect the Texas Commission on Environmental Quality (TCEQ), as the successor agency to TNRCC.]

RULEMAKING AUTHORITY

Rulemaking authority is expressly granted to the Texas Commission on Environmental Quality in SECTION 1 (Section 361.1215, Health and Safety Code) of this bill.

Rulemaking authority is expressly granted to the Texas Natural Resource Conservation Commission in SECTION 2 (Section 26.0481, Water Code) of this bill.

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Subchapter C, Chapter 361, Health and Safety Code, by adding Section 361.1215, as follows:

Sec. 361.1215. PERMISSIVE LAND APPLICATION OF DAIRY WASTE. (a) Defines "dairy waste."

(b) Requires the Texas Commission on Environmental Quality (TCEQ) to issue an authorization by rule for land application of dairy waste, notwithstanding any other law.

(c) Requires TCEQ to adopt rules governing the land application of dairy waste authorized under this section.

(d) Requires that rules adopted under Subsection (c):

(1) minimize the risk of water quality impairment caused by the land application; and

(2) prescribe the conditions under which an authorization is issued, including:

(A) the duration of the authorization;

(B) the location of the land application unit;

(C) the maximum quantity or application rate of dairy waste that is authorized to be applied or disposed of under the authorization;

(D) the suggested agronomic application rate for the dairy waste or other beneficial uses of the dairy waste; and

(E) best management practices for the handling and disposal of dairy waste.

SECTION 2. Amends Subchapter B, Chapter 26, Water Code, by adding Section 26.0481, as follows:

Sec. 26.0481. DISPOSAL OF DAIRY WASTE IN RETENTION FACILITY. (a) Defines "dairy waste."

(b) Requires the Texas Natural Resource Conservation Commission, notwithstanding any other law and to the extent permitted by federal law, to adopt rules under this section to allow:

(1) the disposal of dairy waste from a concentrated animal feeding operation into a control or retention facility, including a lagoon or playa, as that term is defined by Section 26.048 (Prohibition of Discharge to a Playa from a Concentrated Animal Feeding Operation); and

(2) the land application by irrigation associated with the disposal described by Subdivision (1).

(c) Requires that rules under Subsection (b):

(1) minimize the risk of water quality impairment caused by:

(A) the disposal of dairy waste into the control or retention facility; and

(B) the land application by irrigation associated with the disposal described by Paragraph (A); and

(2) require best management practices to ensure that the disposal of dairy waste into the control or retention facility does not impair water quality.

SECTION 3. Requires TCEQ to adopt rules necessary to implement Section 361.1215, Health and Safety Code, and Section 26.0481, Water Code, as added by this Act, not later than March 1, 2024.

SECTION 4. Effective date: September 1, 2023.