88R20894 KBB-F
 
  By: Murr H.B. No. 4256
 
  Substitute the following for H.B. No. 4256:
 
  By:  King of Uvalde C.S.H.B. No. 4256
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to the establishment of a grant program to plug leaking
  water wells in certain counties; making an appropriation.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Chapter 28, Water Code, is amended by adding
  Subchapter E to read as follows:
  SUBCHAPTER E.  LEAKING WATER WELLS GRANT PROGRAM
         Sec. 28.101.  DEFINITIONS. In this subchapter: 
               (1)  "District" means a district or authority created
  under Section 52, Article III, or Section 59, Article XVI, Texas
  Constitution, that has the authority to regulate the spacing of
  water wells, the production of water wells, or both. 
               (2)  "Fund" means the leaking water wells fund created
  under Section 28.103. 
               (3)  "Program" means the leaking water wells program
  established under Section 28.104.
         Sec. 28.102.  APPLICABILITY OF SUBCHAPTER. This subchapter
  applies only to a district in a county that: 
               (1)  has a population of 16,000 or less; and 
               (2)  is adjacent to at least seven counties with
  populations of less than 15,000. 
         Sec. 28.103.  LEAKING WATER WELLS FUND. (a) The leaking
  water wells fund is created as a fund in the state treasury outside
  the general revenue fund. 
         (b)  The fund consists of: 
               (1)  money appropriated, credited, or transferred to
  the fund by the legislature;
               (2)  gifts or grants contributed to the fund; and 
               (3)  interest earned on deposits and investments of the
  fund. 
         (c)  Interest earned on money deposited to the credit of the
  fund is exempt from Section 404.071, Government Code. Interest
  earned on money in the fund shall be retained in the fund.
         (d)  The fund may be used only to implement the program
  established under Section 28.104, including the costs of program
  administration and operation. 
         Sec. 28.104.  LEAKING WATER WELLS PROGRAM. The commission
  shall establish and administer the leaking water wells program to
  plug leaking water wells. Under the program, the commission shall
  provide grants to districts for eligible projects to offset the
  cost of plugging leaking water wells. 
         Sec. 28.105.  APPLICATION FOR GRANT. (a) A district may
  apply for and receive a grant for an eligible project under the
  program.
         (b)  An application for a grant under this subchapter must be
  made on a form provided by the commission and must contain the
  information required by the commission.
         Sec. 28.106.  ELIGIBILITY OF PROJECTS FOR GRANTS;
  PRIORITIZATION. (a) To be eligible for a grant for a project, a
  district must: 
               (1)  demonstrate that the project includes a leaking
  water well:
                     (A)  that: 
                           (i)  is located within 2,000 feet of a
  drinking water well, a water well for livestock or irrigation, or a
  sensitive wildlife area; or 
                           (ii)  has seasonal or annual flow to the
  surface, or a hydrological connection to surface water, including a
  waterway, intermittent stream, or springs system; and
                     (B)  of which:
                           (i)  the plug, casing, completion interval,
  or general integrity is known by the district to be deficient; or 
                           (ii)  the completion interval is
  sufficiently proximate to other known intervals or pressurized
  zones with high concentrations of salinity, chlorides, sulfides, or
  other hazardous or toxic components; 
               (2)  obtain any necessary approval from a surface owner
  for access to the property where the leaking water well is located;
  and 
               (3)  as necessary and subject to Subsection (b), engage
  in a bid process to select and hire a contractor or subcontractor to
  perform the work. 
         (b)  Notwithstanding any other law, a contract for work on a
  project for which a grant is provided under the program:
               (1)  must be awarded to a contractor or subcontractor
  selected from a list of approved well pluggers maintained by the
  Railroad Commission of Texas; and
               (2)  may be awarded to the contractor or subcontractor
  whose bid or proposal the recipient of the grant determines
  provides the best value for the recipient based on the selection
  criteria published by the recipient.
         (c)  The commission by rule shall establish criteria for
  prioritizing projects eligible to receive a grant under the
  program.
         Sec. 28.107.  RESTRICTION ON USE OF GRANT. (a) A recipient
  of a grant provided under the program may use the grant only to pay
  the cost of the project for which the grant is provided. A recipient
  may not use the grant to pay administrative costs associated with
  the project.
         (b)  A leaking water well plugged under the program must be
  permanently plugged. The commission, in consultation with the
  Railroad Commission of Texas, shall establish criteria for ensuring
  that a well is permanently plugged.
         (c)  The amount of a grant provided under the program that is
  not spent for the completion of a project must be returned to the
  commission for deposit to the credit of the fund.
         SECTION 2.  The amount of $40 million is appropriated from
  the general revenue fund to the comptroller of public accounts for
  the purpose of transferring that amount immediately to the credit
  of the leaking water wells fund, as created by this Act.
         SECTION 3.  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, 2023.