84R19516 SMH-F
	By: Lucio III, Miller of Comal, Workman	H.B. No. 2031
	Substitute the following for H.B. No. 2031:
	By:  Larson	C.S.H.B. No. 2031

	A BILL TO BE ENTITLED
	AN ACT
	relating to the diversion, treatment, and use of marine seawater
	and the discharge of treated marine seawater and waste resulting
	from the desalination of marine seawater; adding provisions subject
	to a criminal penalty.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
	SECTION 1.  (a)  With this state facing an ongoing drought,
	continuing population growth, and the need to remain economically
	competitive, every effort must be made to secure and develop
	plentiful and cost-effective water supplies to meet the
	ever-increasing demand for water. The purpose of this Act is not to
	hinder efforts to conserve or develop other surface water supplies
	but rather to more fully explore and expedite the development of all
	this state's water resources in order to balance this state's supply
	and demand for water, which is one of the most precious resources of
	this state.
	(b)  Currently, the projected long-term water needs of this
	state far exceed the firm supplies that are available and that can
	reasonably be made available from freshwater sources within this
	state. The legislature recognizes the importance of providing for
	this state's current and future water needs at all times, including
	during severe droughts.
	(c)  In this state, marine seawater is a potential new source
	of water for drinking and other beneficial uses. This state has
	access to vast quantities of marine seawater from the Gulf of
	Mexico. The purpose of this Act is to streamline the regulatory
	process for and reduce the time required for and cost of marine
	seawater desalination.
	(d)  The legislature finds that marine seawater desalination
	facilities should be cost-effectively and timely developed,
	concurrently with other water planning solutions, to help this
	state meet its current and future water needs.
	(e)  The legislature finds that it is necessary and
	appropriate to grant authority and provide for expedited and
	streamlined authorization for marine seawater desalination
	facilities in order to avoid unnecessary costs, delays, and
	uncertainty and thereby help justify the investment of significant
	resources in the development of such facilities.
	SECTION 2.  Section 11.0237(b), Water Code, is amended to
	read as follows:
	(b)  This section does not alter the commission's
	obligations under Section 11.042(a-1), (a-2), (b), or (c),
	11.046(b), 11.085(k)(2)(F), 11.134(b)(3)(D), 11.147, 11.1471,
	11.1491, 11.150, 11.152, 16.058, or 16.059.
	SECTION 3.  Section 11.042, Water Code, is amended by adding
	Subsection (a-2) to read as follows:
	(a-2)  In this subsection, "water supply entity" has the
	meaning assigned by Section 11.156. With prior authorization
	granted under rules prescribed by the commission, a water supply
	entity may use the bed and banks of any flowing natural stream in
	this state or a lake, reservoir, or other impoundment in this state
	to convey marine seawater that has been treated so as to meet
	standards that are at least as stringent as the water quality
	standards applicable to the receiving stream or impoundment adopted
	by the commission. The commission shall provide for notice and an
	opportunity for the submission of written comment but may not
	provide an opportunity for a public hearing regarding commission
	actions relating to an authorization under this subsection to use
	the bed and banks of a flowing natural stream to convey treated
	marine seawater. The commission shall provide for notice, an
	opportunity for the submission of written comment, and an
	opportunity for a contested case hearing regarding commission
	actions relating to an authorization under this subsection to use a
	lake, reservoir, or other impoundment to convey treated marine
	seawater. A water supply entity may not discharge treated marine
	seawater into a flowing natural stream in this state or a lake,
	reservoir, or other impoundment in this state for the purpose of
	conveyance of the water under an authorization granted under this
	subsection unless the entity holds a permit under Section 26.054
	authorizing the discharge. Treated marine seawater that is
	conveyed under an authorization granted under this subsection may
	be used only by the water supply entity to which the authorization
	is granted. This subsection does not prohibit a water supply entity
	from conveying treated marine seawater in any other manner
	authorized by law.
	SECTION 4.  Section 11.121, Water Code, is amended to read as
	follows:
	Sec. 11.121.  PERMIT REQUIRED. Except as provided in
	Sections 11.142, 11.1421, [and] 11.1422, and 11.156 [of this code],
	no person may appropriate any state water or begin construction of
	any work designed for the storage, taking, or diversion of water
	without first obtaining a permit from the commission to make the
	appropriation.
	SECTION 5.  Subchapter D, Chapter 11, Water Code, is amended
	by adding Section 11.156 to read as follows:
	Sec. 11.156.  PERMIT OR PERMIT EXEMPTION FOR DIVERSION AND
	USE OF MARINE SEAWATER BY WATER SUPPLY ENTITY. (a) In this section,
	"water supply entity" includes:
	(1)  a retail public utility as defined by Section
	13.002;
	(2)  a wholesale water supplier; or
	(3)  an irrigation district operating under Chapter 58.
	(b)  A water supply entity must obtain a permit to divert and
	use state water that consists of marine seawater if:
	(1)  the point of diversion is located less than six
	miles from any point located on the coast of this state; or
	(2)  the seawater contains a total dissolved solids
	concentration based on a yearly average of samples taken at the
	water source of less than 20,000 milligrams per liter.
	(c)  A water supply entity may divert and use state water
	that consists of marine seawater without obtaining a permit if
	Subsection (b) does not apply.
	(d)  A water supply entity may use marine seawater diverted
	as authorized by a permit issued under Subsection (b), or as
	authorized by Subsection (c), for any beneficial purpose, but only
	if the seawater is treated in accordance with rules adopted by the
	commission before it is used. Rules adopted under this subsection
	may impose different treatment requirements based on the purpose
	for which the seawater is to be used but must require that the
	seawater be treated in accordance with:
	(1)  Section 341.0316(b)(2), Health and Safety Code, if
	the water is to be used as public drinking water;
	(2)  Section 11.042(a-2) if the bed and banks of a
	flowing natural stream in this state or a lake, reservoir, or other
	impoundment in this state are to be used to convey the water; and
	(3)  Section 26.054(c)(1) if the water is to be
	discharged into a flowing natural stream in this state or a lake,
	reservoir, or other impoundment in this state.
	(e)  The commission shall adopt rules providing an expedited
	procedure for acting on an application for a permit under
	Subsection (b). The rules must provide for notice, an opportunity
	for the submission of written comment, and an opportunity for a
	contested case hearing regarding commission actions relating to a
	permit.
	(f)  The point of diversion of marine seawater may not be in a
	bay or estuary.
	(g)  The commission shall adopt rules prescribing the number
	of points from which, and the rate at which, a facility may divert
	marine seawater.
	(h)  The Parks and Wildlife Department and the General Land
	Office jointly shall conduct a study to identify zones in the Gulf
	of Mexico that are appropriate for the diversion of marine
	seawater, taking into account the need to protect marine organisms,
	and shall recommend zones for designation by the commission. Not
	later than September 1, 2020, the commission shall adopt rules
	designating appropriate diversion zones. A diversion zone may be
	contiguous to or the same as or may overlap a discharge zone
	designated under Section 26.054. The point or points at which a
	facility may divert marine seawater must be located in a diversion
	zone designated by the commission under rules adopted under this
	subsection if:
	(1)  the facility is authorized by a permit issued
	under Subsection (b) after the rules are adopted; or
	(2)  the facility is exempt under Subsection (c) from
	the requirement of a permit and construction of the facility begins
	after the rules are adopted.
	(i)  Until the commission adopts rules under Subsection (h),
	a water supply entity must consult the Parks and Wildlife
	Department and the General Land Office regarding the point or
	points at which the facility the entity proposes to construct may
	divert marine seawater before submitting an application for a
	permit for the facility if Subsection (b) applies or before
	beginning construction of the facility if Subsection (c) applies.
	SECTION 6.  Section 16.053(e), Water Code, is amended to
	read as follows:
	(e)  Each regional water planning group shall submit to the
	development board a regional water plan that:
	(1)  is consistent with the guidance principles for the
	state water plan adopted by the development board under Section
	16.051(d);
	(2)  provides information based on data provided or
	approved by the development board in a format consistent with the
	guidelines provided by the development board under Subsection (d);
	(2-a)  is consistent with the desired future conditions
	adopted under Section 36.108 for the relevant aquifers located in
	the regional water planning area as of the date the board most
	recently adopted a state water plan under Section 16.051 or, at the
	option of the regional water planning group, established subsequent
	to the adoption of the most recent plan;
	(3)  identifies:
	(A)  each source of water supply in the regional
	water planning area, including information supplied by the
	executive administrator on the amount of modeled available
	groundwater in accordance with the guidelines provided by the
	development board under Subsections (d) and (f);
	(B)  factors specific to each source of water
	supply to be considered in determining whether to initiate a
	drought response;
	(C)  actions to be taken as part of the response;
	and
	(D)  existing major water infrastructure
	facilities that may be used for interconnections in the event of an
	emergency shortage of water;
	(4)  has specific provisions for water management
	strategies to be used during a drought of record;
	(5)  includes but is not limited to consideration of
	the following:
	(A)  any existing water or drought planning
	efforts addressing all or a portion of the region;
	(B)  approved groundwater conservation district
	management plans and other plans submitted under Section 16.054;
	(C)  all potentially feasible water management
	strategies, including but not limited to improved conservation,
	reuse, and management of existing water supplies, conjunctive use,
	acquisition of available existing water supplies, and development
	of new water supplies;
	(D)  protection of existing water rights in the
	region;
	(E)  opportunities for and the benefits of
	developing regional water supply facilities or providing regional
	management of water supply facilities;
	(F)  appropriate provision for environmental
	water needs and for the effect of upstream development on the bays,
	estuaries, and arms of the Gulf of Mexico and the effect of plans on
	navigation;
	(G)  provisions in Section 11.085(k)(1) if
	interbasin transfers are contemplated;
	(H)  voluntary transfer of water within the region
	using, but not limited to, regional water banks, sales, leases,
	options, subordination agreements, and financing agreements; [and]
	(I)  emergency transfer of water under Section
	11.139, including information on the part of each permit, certified
	filing, or certificate of adjudication for nonmunicipal use in the
	region that may be transferred without causing unreasonable damage
	to the property of the nonmunicipal water rights holder; and
	(J)  opportunities for and the benefits of
	developing large-scale desalination facilities for marine seawater
	that serve local or regional entities;
	(6)  identifies river and stream segments of unique
	ecological value and sites of unique value for the construction of
	reservoirs that the regional water planning group recommends for
	protection under Section 16.051;
	(7)  assesses the impact of the plan on unique river and
	stream segments identified in Subdivision (6) if the regional water
	planning group or the legislature determines that a site of unique
	ecological value exists;
	(8)  describes the impact of proposed water projects on
	water quality; and
	(9)  includes information on:
	(A)  projected water use and conservation in the
	regional water planning area; and
	(B)  the implementation of state and regional
	water plan projects, including water conservation strategies,
	necessary to meet the state's projected water demands.
	SECTION 7.  Subchapter B, Chapter 26, Water Code, is amended
	by adding Section 26.054 to read as follows:
	Sec. 26.054.  DISCHARGE OF TREATED MARINE SEAWATER OR WASTE
	RESULTING FROM DESALINATION OF MARINE SEAWATER. (a) In this
	section, "water supply entity" has the meaning assigned by Section
	11.156.
	(b)  A water supply entity must obtain a permit to discharge:
	(1)  marine seawater into a flowing natural stream in
	this state or a lake, reservoir, or other impoundment in this state;
	or
	(2)  waste resulting from the desalination of marine
	seawater into the Gulf of Mexico.
	(c)  A water supply entity must:
	(1)  treat marine seawater so as to meet standards that
	are at least as stringent as the water quality standards applicable
	to the receiving stream or impoundment adopted by the commission
	before discharging the seawater under a permit described by
	Subsection (b)(1); and
	(2)  comply with all applicable state and federal
	requirements when discharging waste resulting from the
	desalination of marine seawater into the Gulf of Mexico under a
	permit described by Subsection (b)(2).
	(d)  The commission shall adopt rules providing an expedited
	procedure for acting on an application for a permit under
	Subsection (b). The rules must provide for:
	(1)  notice, an opportunity for the submission of
	written comment, and an opportunity to request a public meeting and
	may authorize a contested case hearing regarding commission actions
	relating to a permit described by Subsection (b)(1);
	(2)  notice, an opportunity for the submission of
	written comment, an opportunity to request a public meeting, and an
	opportunity for a contested case hearing regarding commission
	actions relating to a permit described by Subsection (b)(2) if the
	point of discharge is located within six miles of any point located
	on the coast of this state; and
	(3)  notice and an opportunity for the submission of
	written comment regarding commission actions relating to a permit
	described by Subsection (b)(2) if Subdivision (2) of this
	subsection does not apply.
	(e)  A water supply entity may not discharge waste resulting
	from the desalination of marine seawater into a bay or estuary.
	(f)  The Parks and Wildlife Department and the General Land
	Office jointly shall conduct a study to identify zones in the Gulf
	of Mexico that are appropriate for the discharge of waste resulting
	from the desalination of marine seawater, taking into account the
	need to protect marine organisms, and shall recommend zones for
	designation by the commission. Not later than September 1, 2020,
	the commission shall adopt rules designating appropriate discharge
	zones. The point at which a facility may discharge waste resulting
	from the desalination of marine seawater must be located in a
	discharge zone designated by the commission under rules adopted
	under this subsection if the facility is authorized by a permit
	issued under Subsection (b)(2) after the rules are adopted.
	(g)  Until the commission adopts rules under Subsection (f),
	a water supply entity must consult the Parks and Wildlife
	Department and the General Land Office regarding the point at which
	the facility the entity proposes to construct may discharge waste
	resulting from the desalination of marine seawater before
	submitting an application for a permit under Subsection (b)(2) for
	the facility.
	SECTION 8.  Subchapter C, Chapter 341, Health and Safety
	Code, is amended by adding Section 341.0316 to read as follows:
	Sec. 341.0316.  DESALINATION OF MARINE SEAWATER FOR DRINKING
	WATER. (a) This section applies only to a desalination facility
	that is intended to treat marine seawater for the purpose of
	producing water for the public drinking water supply. This section
	does not apply to a desalination facility used to produce
	nonpotable water.
	(b)  The commission shall adopt rules to:
	(1)  allow water treated by a desalination facility to
	be used as public drinking water; and
	(2)  ensure that water treated by a desalination
	facility meets the requirements of Section 341.031 and rules
	adopted under that section.
	(c)  A person may not begin construction of a desalination
	facility that treats marine seawater for the purpose of removing
	primary or secondary drinking water contaminants unless the
	commission approves the construction of the facility.
	SECTION 9.  Section 16.060, Water Code, is repealed.
	SECTION 10.  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, 2015.