88R4569 ANG-F
 
  By: Darby H.B. No. 1777
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to the regulation by the Railroad Commission of Texas of
  closed-loop geothermal injection wells.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Subchapter C, Chapter 27, Water Code, is amended
  by adding Section 27.037 to read as follows:
         Sec. 27.037.  JURISDICTION OVER CLOSED-LOOP GEOTHERMAL
  INJECTION WELLS.  (a)  In this section, "closed-loop geothermal
  injection well" means a closed system geothermal well used to
  circulate water, other fluids, or gases through the earth as a heat
  source or heat sink to generate power or heat or cool a structure.
         (b)  The railroad commission has jurisdiction over
  closed-loop geothermal injection wells and may issue permits for
  closed-loop geothermal injection wells, including individual
  permits, general permits, or permits by rule.
         (c)  A person may not begin drilling a closed-loop geothermal
  injection well unless that person holds a valid permit issued by the
  railroad commission under this section.
         (d)  For purposes of railroad commission regulation, a
  closed-loop geothermal injection well is designated as a Class V
  well under the underground injection control program administered
  by the railroad commission.
         (e)  The railroad commission shall adopt rules as necessary
  to administer this section and regulate closed-loop geothermal
  injection wells.
         SECTION 2.  (a)  In this section:
               (1)  "Closed-loop geothermal injection well" has the
  meaning assigned by Section 27.037, Water Code, as added by this
  Act.
               (2)  "Commission" means the Texas Commission on
  Environmental Quality.
               (3)  "Railroad commission" means the Railroad
  Commission of Texas.
         (b)  On the effective date of this Act:
               (1)  all functions and activities performed by the
  commission that relate to the regulation of closed-loop geothermal
  injection wells under Chapter 27, Water Code, are transferred to
  the railroad commission;
               (2)  a rule, standard, or form adopted by the
  commission that is related to the regulation of closed-loop
  geothermal injection wells under Chapter 27, Water Code, is a rule,
  standard, or form of the railroad commission and remains in effect
  until altered by the railroad commission;
               (3)  a proceeding involving the commission that is
  related to the regulation of closed-loop geothermal injection wells
  under Chapter 27, Water Code, is transferred without change in
  status to the railroad commission, and the railroad commission
  assumes, without change in status, the position of the commission
  in any proceeding relating to the regulation of closed-loop
  geothermal injection wells to which the commission is a party;
               (4)  all money, contracts, leases, rights, and
  obligations of the commission related to closed-loop geothermal
  injection wells under Chapter 27, Water Code, are transferred to
  the railroad commission;
               (5)  all property, including records, in the custody of
  the commission related to the regulation of closed-loop geothermal
  injection wells under Chapter 27, Water Code, is transferred to the
  railroad commission; and
               (6)  all money appropriated to the commission for
  purposes related to the regulation of closed-loop geothermal
  injection wells under Chapter 27, Water Code, is transferred to the
  railroad commission.
         (c)  Section 27.037, Water Code, as added by this Act, does
  not affect the validity of a permit for a closed-loop geothermal
  injection well issued before the effective date of this Act.
         (d)  Not later than the 90th day after the effective date of
  this Act:
               (1)  the railroad commission shall issue a substitute
  permit under the name and authority of the railroad commission to
  each person who on the effective date of this Act holds a valid
  permit issued by the commission for a closed-loop geothermal
  injection well; and
               (2)  the commission shall transmit to the railroad
  commission all pending applications for closed-loop geothermal
  injection wells submitted to the commission before the effective
  date of this Act.
         SECTION 3.  This Act takes effect September 1, 2023.