BILL ANALYSIS

S.B. 1145

By: Birdwell

Energy Resources

Committee Report (Unamended)

BACKGROUND AND PURPOSE

The bill sponsor has informed the committee that produced water, which is a byproduct of oil and gas extraction, drilling, and mining operations, historically has been mostly disposed of in underground injection wells but that advances in treatment and recycling technologies have created opportunities for beneficial reuse of this byproduct. Additionally, the sponsor has informed the committee that treated produced water has several end-use and industrial applications but that a gap in regulatory authority to permit the land application of treated produced water has created uncertainty regarding how and where treated produced water can be safely reused on land. S.B. 1145 seeks to close this gap and provide regulatory clarity, promote responsible water reuse, and safeguard natural water resources by authorizing the Texas Commission on Environmental Quality to issue permits for the land application of certain produced water that has been treated for beneficial use.

CRIMINAL JUSTICE IMPACT

It is the committee's opinion that this bill does not expressly create a criminal offense, increase the punishment for an existing criminal offense or category of offenses, or change the eligibility of a person for community supervision, parole, or mandatory supervision.

RULEMAKING AUTHORITY

It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency, or institution.

ANALYSIS

S.B. 1145 amends the Water Code to authorize the Texas Commission on Environmental Quality (TCEQ) to issue permits for the land application of produced water resulting from the following activities that has been treated for beneficial use:

· applicable activities associated with the exploration, development, and production of oil or gas or geothermal resources;

· applicable activities associated with uranium exploration consisting of the disturbance of the surface or subsurface for the purpose of or related to determining the location, quantity, or quality of uranium ore; and

· any other applicable activities regulated by the Railroad Commission of Texas with regard to the prevention of pollution.

The bill requires the TCEQ to adopt standards for this land application of water, including standards that prevent the pollution of surface and subsurface water.

S.B. 1145 applies only to a permit the application for which is filed on or after the bill's effective date. A permit the application for which is filed before the bill's effective date is subject to the law in effect on the date the application is filed, and that law is continued in effect for that purpose.

EFFECTIVE DATE

September 1, 2025.