H.B. No. 1989
    1-1                                AN ACT
    1-2  relating to the underground storage of appropriated water
    1-3  incidental to a beneficial use.
    1-4        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-5        SECTION 1.  The legislature finds that:
    1-6              (1)  the underground storage of appropriated water,
    1-7  incidental to a beneficial use, is a beneficial use of water;
    1-8              (2)  the use of aquifers for storage of appropriated
    1-9  water:
   1-10                    (A)  enhances the conservation and protection of
   1-11  appropriated water by minimizing seepage and evaporation losses;
   1-12                    (B)  reduces the incidental environmental impacts
   1-13  associated with the construction of conventional water storage
   1-14  facilities such as aboveground reservoirs; and
   1-15                    (C)  enhances and protects groundwater resources;
   1-16              (3)  the underground storage of appropriated water
   1-17  maximizes the conservation and beneficial use of water resources;
   1-18              (4)  the storage of appropriated water in aquifers
   1-19  recognizes existing property rights, including the rights of a
   1-20  landowner in groundwater;
   1-21              (5)  the storage of appropriated water in aquifers
   1-22  recognizes the authority and jurisdiction of an underground water
   1-23  conservation district;
    2-1              (6)  the use of aquifers for storage of appropriated
    2-2  water may reduce a portion of the economic burden on taxpayers and
    2-3  utility ratepayers associated with the construction of conventional
    2-4  water storage facilities;
    2-5              (7)  the successful storage of appropriated water
    2-6  underground has been demonstrated in Kerr County by the Upper
    2-7  Guadalupe River Authority in the Hosston-Sligo Aquifer; and
    2-8              (8)  the Texas Natural Resource Conservation Commission
    2-9  and the Texas Water Development Board are encouraged to evaluate
   2-10  additional aquifers within the state to identify the potential for
   2-11  storage of appropriated water underground to maximize and enhance
   2-12  the future availability and beneficial use of the water resources
   2-13  of the state.
   2-14        SECTION 2.  Subchapter D, Chapter 11, Water Code, is amended
   2-15  by adding Sections 11.153, 11.154, and 11.155 to read as follows:
   2-16        Sec. 11.153.  PILOT PROJECTS FOR STORAGE OF APPROPRIATED
   2-17  WATER IN AQUIFERS.  (a)  The commission shall investigate the
   2-18  feasibility of storing  appropriated water in various types of
   2-19  aquifers around the state by encouraging the issuance of temporary
   2-20  or term permits for pilot demonstration projects for the storage of
   2-21  appropriated water for subsequent retrieval and beneficial use in
   2-22  the following aquifers in the specified counties:
   2-23              (1)  the Anacacho, Austin Chalk, and Glen Rose
   2-24  Limestone aquifers in Bexar County and Medina County;
   2-25              (2)  the Carrizo-Wilcox aquifer in Bexar, Webb, Smith,
    3-1  Wood, Rains, and Van Zandt counties;
    3-2              (3)  the Hickory and Ellenberger aquifers in Gillespie
    3-3  County; and
    3-4              (4)  the Gulf Coast aquifer in Cameron and Hidalgo
    3-5  counties.
    3-6        (b)  A permit described by Subsection (a) must be for only
    3-7  the duration of the pilot project to provide the commission and the
    3-8  board further opportunity to evaluate the storage of appropriated
    3-9  water in aquifers for subsequent retrieval and beneficial use.
   3-10        (c)  At the conclusion of a pilot project, a permit holder
   3-11  may file an appropriate application for a permit or permit
   3-12  amendment.  After considering the success of the project and the
   3-13  criteria set out in Section 11.154, the commission shall determine
   3-14  whether to issue a permit or permit amendment authorizing the
   3-15  continued storage of appropriated water in the aquifer.
   3-16        (d)  A final order granting a permit or amendment to a permit
   3-17  authorizing the storage of appropriated water in aquifers for
   3-18  subsequent beneficial use, other than for the pilot projects
   3-19  authorized by this section, may not be issued before June 1, 1999.
   3-20        (e)  The board shall participate in the study of the pilot
   3-21  projects authorized by Subsection (a).  The pilot projects are
   3-22  eligible for grants from the water loan assistance fund established
   3-23  by Section 15.101.  The board may authorize use of money from the
   3-24  research and planning fund established by Section 15.402 to
   3-25  participate in the study of pilot projects.
    4-1        Sec. 11.154.  PERMITS TO STORE APPROPRIATED WATER IN
    4-2  AQUIFERS.  (a)  An application filed with the commission to
    4-3  undertake a pilot project under Section 11.153 must include:
    4-4              (1)  the information required for an application for a
    4-5  permit or permit amendment to appropriate state water;
    4-6              (2)  all information required for an application for a
    4-7  permit for a Class V injection well without requiring a separate
    4-8  hearing or notice; and
    4-9              (3)  a map or plat showing the injection facility and
   4-10  the aquifer in which the water will be stored.
   4-11        (b)  If the application is for a permit or permit amendment
   4-12  to store  appropriated water in an underground water reservoir or a
   4-13  subdivision of an underground water reservoir, as defined by
   4-14  Chapter 52, that is under the jurisdiction of an underground water
   4-15  conservation district:
   4-16              (1)  the applicant shall:
   4-17                    (A)  provide a copy of the application to each
   4-18  underground water conservation district that has jurisdiction over
   4-19  the reservoir or subdivision;
   4-20                    (B)  cooperate with the districts that have
   4-21  jurisdiction over the reservoir or subdivision to ensure compliance
   4-22  with the rules of each district;
   4-23                    (C)  cooperate with each district that has
   4-24  jurisdiction over the reservoir or subdivision to develop rules
   4-25  regarding the injection, storage, and withdrawal of appropriated
    5-1  water stored in the aquifer; and
    5-2                    (D)  comply with the rules governing the
    5-3  injection, storage, or withdrawal of appropriated water stored in
    5-4  the reservoir or subdivision that are adopted by a district that
    5-5  has jurisdiction over the reservoir or subdivision; and
    5-6              (2)  the commission shall require that any agreement
    5-7  the applicant reaches with a district that has jurisdiction over
    5-8  the reservoir or subdivision regarding the terms for the injection,
    5-9  storage, and withdrawal of appropriated water be included as a
   5-10  condition of the permit or permit amendment.
   5-11        (c)  On completion of a pilot project and receipt of an
   5-12  appropriate application for a permit or an amendment to an existing
   5-13  permit, the commission shall evaluate the success of the pilot
   5-14  project for purposes of issuing a final order granting a permit or
   5-15  permit amendment authorizing the storage of appropriated water
   5-16  incident to a beneficial use.  The commission shall consider
   5-17  whether:
   5-18              (1)  the introduction of water into the aquifer will
   5-19  alter the physical, chemical, or biological quality of native
   5-20  groundwater to a degree that the introduction would:
   5-21                    (A)  render groundwater produced from the aquifer
   5-22  harmful or detrimental to people, animals, vegetation, or property;
   5-23  or
   5-24                    (B)  require treatment of the groundwater to a
   5-25  greater extent than the native groundwater requires before being
    6-1  applied to that beneficial use;
    6-2              (2)  the water stored in the receiving aquifer can be
    6-3  successfully harvested from the aquifer for beneficial use; and
    6-4              (3)  the permit holder has provided evidence that
    6-5  reasonable diligence will be used to protect the water stored in
    6-6  the receiving aquifer from unauthorized withdrawals to the extent
    6-7  necessary to maximize the permit holder's ability to retrieve and
    6-8  beneficially use the stored water without experiencing unreasonable
    6-9  loss of appropriated water.
   6-10        (d)  In making its evaluation under Subsection (c), the
   6-11  commission may consider all relevant facts, including:
   6-12              (1)  the location and depth of the aquifer in which the
   6-13  stored water is located;
   6-14              (2)  the nature and extent of the surface development
   6-15  and activity above the stored water;
   6-16              (3)  the permit holder's ability to prevent
   6-17  unauthorized withdrawals by contract or the exercise of the power
   6-18  of eminent domain;
   6-19              (4)  the existence of an underground water conservation
   6-20  district with jurisdiction over the aquifer storing the water and
   6-21  the district's ability to adopt rules to protect stored water; and
   6-22              (5)  the existence of any other political subdivision
   6-23  or state agency authorized to regulate the drilling of wells.
   6-24        (e)  A permit to store appropriated water in an underground
   6-25  water reservoir or subdivision, as defined by Chapter 52, shall
    7-1  provide as a condition to the permit that the permit holder shall:
    7-2              (1)  register the permit holder's injection and
    7-3  recovery wells with an underground water conservation district that
    7-4  has jurisdiction over the reservoir or subdivision, if any; and
    7-5              (2)  each calendar month, provide the district, if any,
    7-6  with a written report showing for the previous calendar month:
    7-7                    (A)  the amount of water injected for storage;
    7-8  and
    7-9                    (B)  the amount of water recaptured for use.
   7-10        Sec. 11.155.  AQUIFER STORAGE PILOT PROJECT REPORTS.  (a)  On
   7-11  completion of each pilot project, the board and the commission
   7-12  jointly shall:
   7-13              (1)  prepare a report evaluating the success of the
   7-14  project; and
   7-15              (2)  provide copies of the report to the governor,
   7-16  lieutenant governor, and speaker of the house of representatives.
   7-17        (b)  The board shall make other studies, investigations, and
   7-18  surveys of the aquifers in the state as it considers necessary to
   7-19  determine the occurrence, quantity, quality, and availability of
   7-20  other aquifers in which water may be stored and subsequently
   7-21  retrieved for beneficial use.  The board shall undertake the
   7-22  studies, investigations, and surveys in the following order of
   7-23  priority:
   7-24              (1)  the aquifers identified in Section 11.153(a);
   7-25              (2)  areas designated by the commission as "critical
    8-1  areas" under Section 52.053; and
    8-2              (3)  other areas of the state in a priority to be
    8-3  determined by the board's ranking of where the greatest need
    8-4  exists.
    8-5        (c)  Not later than January 1 of each odd-numbered year, the
    8-6  board shall prepare and provide to the legislature a report that
    8-7  includes at least the following information:
    8-8              (1)  the progress of the pilot projects authorized
    8-9  under this subchapter and of any related project;
   8-10              (2)  the results of the board's studies of the other
   8-11  aquifers of the state during the preceding biennium; and
   8-12              (3)  the anticipated appropriation from general
   8-13  revenues necessary to investigate other aquifers in the state
   8-14  during the upcoming biennium.
   8-15        SECTION 3.  (a)  The change in law made by this Act applies
   8-16  only to an application made on or after the effective date of this
   8-17  Act for a permit or a permit amendment for a pilot project to
   8-18  appropriate water and to store appropriated water in an aquifer
   8-19  identified in this Act.
   8-20        (b)  A permit issued by the commission authorizing the
   8-21  storage of  appropriated water in an aquifer incident to a
   8-22  beneficial use before the effective date of this Act or an
   8-23  application for a permit or permit amendment to appropriate water
   8-24  that includes authorization to store appropriated water in an
   8-25  underground structure filed before the effective date of this Act
    9-1  is not affected by the changes in law made by this Act.
    9-2        SECTION 4.  The importance of this legislation and the
    9-3  crowded condition of the calendars in both houses create an
    9-4  emergency and an imperative public necessity that the
    9-5  constitutional rule requiring bills to be read on three several
    9-6  days in each house be suspended, and this rule is hereby suspended,
    9-7  and that this Act take effect and be in force from and after its
    9-8  passage, and it is so enacted.