By: Perry  S.B. No. 2658
         (In the Senate - Filed March 13, 2025; April 3, 2025, read
  first time and referred to Committee on Water, Agriculture and
  Rural Affairs; April 22, 2025, reported adversely, with favorable
  Committee Substitute by the following vote:  Yeas 7, Nays 0;
  April 22, 2025, sent to printer.)
Click here to see the committee vote
 
  COMMITTEE SUBSTITUTE FOR S.B. No. 2658 By:  Perry
 
 
A BILL TO BE ENTITLED
 
AN ACT
 
  relating to the production and study of brackish groundwater.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Sections 16.060(b) and (e), Water Code, are
  amended to read as follows:
         (b)  The board shall prepare a biennial progress report on
  the implementation of seawater or brackish groundwater
  desalination activities in the state and shall submit it to the
  governor, lieutenant governor, and speaker of the house of
  representatives not later than December 1 of each even-numbered
  year. The report shall include:
               (1)  results of the board's studies and activities
  relative to seawater or brackish groundwater desalination during
  the preceding biennium;
               (2)  identification and evaluation of research,
  regulatory, technical, and financial impediments to the
  implementation of seawater or brackish groundwater desalination
  projects;
               (3)  evaluation of the role the state should play in
  furthering the development of large-scale seawater or brackish
  groundwater desalination projects in the state;
               (4)  the anticipated appropriation from general
  revenues necessary to continue investigating water desalination
  activities in the state during the next biennium; and
               (5)  identification and designation of local or
  regional brackish groundwater production zones in areas of the
  state with moderate to high availability and productivity of
  brackish groundwater that can be used to reduce the use of fresh
  groundwater and that:
                     (A)  are separated by hydrogeologic barriers
  sufficient to prevent significant impacts to water availability or
  water quality in any area of the same or other aquifers,
  subdivisions of aquifers, or geologic strata that have an average
  total dissolved solids level of 1,000 milligrams per liter or less
  at the time of designation of the zones; and
                     (B)  are not located in:
                           (i)  an area of the Edwards Aquifer subject
  to the jurisdiction of the Edwards Aquifer Authority;
                           (ii)  the boundaries of the:
                                 (a)  Barton Springs-Edwards Aquifer
  Conservation District;
                                 (b)  Harris-Galveston Subsidence
  District; or
                                 (c)  Fort Bend Subsidence District; or
                           (iii)  an aquifer, subdivision of an
  aquifer, or geologic stratum that:
                                 (a)  has an average total dissolved
  solids level of more than 1,000 milligrams per liter; and
                                 (b)  is serving as a significant source
  of water supply for municipal, domestic, or agricultural purposes
  at the time of designation of the zones[; or
                           [(iv)  an area of a geologic stratum that is
  designated or used for wastewater injection through the use of
  injection wells or disposal wells permitted under Chapter 27].
         (e)  In designating a brackish groundwater production zone
  under this section, the board shall:
               (1)  determine the amount of brackish groundwater that
  the zone is capable of producing over a 30-year period and a 50-year
  period without causing a significant impact to water availability
  or water quality as described by Subsection (b)(5)(A); and
               (2)  include in the designation description:
                     (A)  the amounts of brackish groundwater that the
  zone is capable of producing during the periods described by
  Subdivision (1); [and]
                     (B)  recommendations regarding reasonable
  monitoring to observe the effects of brackish groundwater
  production within the zone; and
                     (C)  an allocation of the available amounts of
  brackish groundwater identified in Paragraph (A) to each
  groundwater conservation district and county located in the zone.
         SECTION 2.  Section 36.117, Water Code, is amended by
  amending Subsections (b) and (d) and adding Subsections (e-1),
  (e-2), and (k-1) to read as follows:
         (b)  Except as provided by this section, a district shall
  provide an exemption from the district requirement to obtain a
  permit for:
               (1)  drilling or operating a well used solely for
  domestic use or for providing water for livestock or poultry if the
  well is:
                     (A)  located or to be located on a tract of land
  larger than 10 acres; and
                     (B)  drilled, completed, or equipped so that it is
  incapable of producing more than 25,000 gallons of groundwater a
  day;
               (2)  drilling a water well used solely to supply water
  for a rig that is actively engaged in drilling or exploration
  operations for an oil or gas well permitted by the Railroad
  Commission of Texas provided that the person holding the permit is
  responsible for drilling and operating the water well and the water
  well is located on the same lease or field associated with the
  drilling rig;
               (3)  drilling a water well authorized under a permit
  issued by the Railroad Commission of Texas under Chapter 134,
  Natural Resources Code, or for production from the well to the
  extent the withdrawals are required for mining activities
  regardless of any subsequent use of the water; [or]
               (4)  drilling a water well for temporary use to supply
  water for a rig that is actively engaged in drilling a groundwater
  production well permitted by the district; or
               (5)  drilling or operating a well for the withdrawal of
  groundwater from a designated brackish groundwater production
  zone, as defined by Section 36.1015, if:
                     (A)  the operator of the well provides the
  district with documentation:
                           (i)  from an environmental testing
  laboratory accredited under commission rules for water quality
  analysis in permitting decisions demonstrating that the well
  produces water with a total dissolved solids concentration of at
  least 3,000 milligrams per liter; and
                           (ii)  showing that the operator has acquired
  a real property interest in the groundwater described by this
  paragraph underlying the tracts of land within the spacing area
  assigned to the well or the spacing distances required for the
  drilling of other wells, as applicable, under the well spacing
  rules of the district; and
                     (B)  total brackish groundwater production from
  the area of the designated brackish groundwater production zone
  located in the district would not exceed the applicable estimated
  withdrawal amounts allocated to the district by the Texas Water
  Development Board pursuant to Section 16.060(e)(2)(C).
         (d)  A district may cancel a previously granted exemption and
  may require an operating permit for or restrict production from a
  well and assess any appropriate fees if:
               (1)  the groundwater withdrawals that were exempted
  under Subsection (b)(1) are no longer used solely for domestic use
  or to provide water for livestock or poultry;
               (2)  the groundwater withdrawals that were exempted
  under Subsection (b)(2) are no longer used solely to supply water
  for a rig that is actively engaged in drilling or exploration
  operations for an oil or gas well permitted by the Railroad
  Commission of Texas;
               (3)  the groundwater withdrawals that were exempted
  under Subsection (b)(3) are no longer necessary for mining
  activities or are greater than the amount necessary for mining
  activities specified in the permit issued by the Railroad
  Commission of Texas under Chapter 134, Natural Resources Code; [or]
               (4)  the groundwater withdrawals that were exempted
  under Subsection (b)(4) are no longer used solely to supply water
  for a rig that is actively engaged in drilling a groundwater
  production well permitted by the district; or
               (5)  for groundwater withdrawals that were exempted
  under Subsection (b)(5):
                     (A)  the withdrawals are no longer from a
  designated brackish groundwater production zone, as defined by
  Section 36.1015; or
                     (B)  the groundwater produced no longer has an
  average total dissolved solids concentration of 3,000 milligrams
  per liter or more.
         (e-1)  A person owning or operating a well withdrawing water
  from a brackish groundwater production zone that is exempt from the
  requirement to obtain a permit under Subsection (b)(5) shall:
               (1)  implement a monitoring system approved by the
  district that accomplishes the purposes of Sections 36.1015(e)(4)
  and (5); and
               (2)  submit an annual report to the district that
  contains the information required by Section 36.1015(e)(6).
         (e-2)  Before approving a proposed monitoring system under
  Subsection (e-1), the district shall consult with the Texas Water
  Development Board to ensure that the proposed monitoring system
  aligns with the recommendations provided under Section
  16.060(e)(2)(B) and with Sections 36.1015(e)(4) and (5). The
  district shall provide each report required under Subsection
  (e-1)(2) to the development board.
         (k-1)  Notwithstanding Subsection (k) or any other law, a
  district may not subject water withdrawn from a well exempted from a
  permit requirement by Subsection (b)(5) to a transport or export
  fee.
         SECTION 3.  Section 36.205, Water Code, is amended by adding
  Subsection (h) to read as follows:
         (h)  A district may not assess a production fee under this
  section for any water produced under an exemption under Section
  36.117(b)(5). 
         SECTION 4.  Sections 36.117(k-1) and 36.205(h), Water Code,
  as added by this Act, apply only to water withdrawn from a well on or
  after the effective date of this Act. Water withdrawn from a well
  before the effective date of this Act is governed by the law in
  effect on the date the water is withdrawn, and the former law is
  continued in effect for that purpose.
         SECTION 5.  This Act takes effect September 1, 2025.
 
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