H.B. No. 655
 
 
 
 
AN ACT
  relating to the storage and recovery of water in aquifers;
  authorizing fees and surcharges; adding provisions subject to a
  criminal penalty.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Sections 11.153(a), (b), and (c), Water Code,
  are amended to read as follows:
         (a)  In this section, "aquifer storage and recovery project"
  has the meaning assigned by Section 27.151 [The commission shall
  investigate the feasibility of storing appropriated water in
  various types of aquifers around the state by encouraging the
  issuance of temporary or term permits for demonstration projects
  for the storage of appropriated water for subsequent retrieval and
  beneficial use].
         (b)  A water right holder or a person who has contracted for
  the use of water under a contract that does not prohibit the use of
  the water in an aquifer storage and recovery project may undertake
  an aquifer storage and recovery project without obtaining any
  additional authorization under this chapter for the project. A
  person described by this subsection undertaking an aquifer storage
  and recovery project must:
               (1)  obtain any required authorizations under
  Subchapter G, Chapter 27, and Subchapter N, Chapter 36; and
               (2)  comply with the terms of the applicable water
  right [A permit described by Subsection (a) must be for only the
  duration of the pilot project to provide the commission and the
  board further opportunity to evaluate the storage of appropriated
  water in aquifers for subsequent retrieval and beneficial use].
         (c)  This section does not preclude the commission from
  considering an aquifer storage and recovery project to be a
  component of a project permitted under this chapter that is not
  required to be based on the continuous availability of historic,
  normal stream flow [At the conclusion of a pilot project, a permit
  holder may file an appropriate application for a permit or permit
  amendment. After considering the success of the project and the
  criteria set out in Section 11.154, the commission shall determine
  whether to issue a permit or permit amendment authorizing the
  continued storage of appropriated water in the aquifer].
         SECTION 2.  Section 11.155, Water Code, is amended to read as
  follows:
         Sec. 11.155.  AQUIFER STORAGE AND RECOVERY [PILOT PROJECT]
  REPORTS.  [(a)   On completion of each pilot project, the board and
  the commission jointly shall:
               [(1)     prepare a report evaluating the success of the
  project; and
               [(2)     provide copies of the report to the governor,
  lieutenant governor, and speaker of the house of representatives.
         [(b)]  The board shall make [other] studies, investigations,
  and surveys of the aquifers in the state as it considers necessary
  to determine the occurrence, quantity, quality, and availability of
  [other] aquifers in which water may be stored and subsequently
  retrieved for beneficial use.  The board shall undertake the
  studies, investigations, and surveys in the following order of
  priority:
               (1)  [the aquifers described in Section 11.153(a);
               [(2)]  areas designated by the commission as "priority
  groundwater management areas" under Section 35.008; and
               (2) [(3)]  other areas of the state in a priority to be
  determined by the board's ranking of where the greatest need
  exists.
         SECTION 3.  Chapter 27, Water Code, is amended by adding
  Subchapter G to read as follows:
  SUBCHAPTER G. AQUIFER STORAGE AND RECOVERY PROJECTS
         Sec. 27.151.  DEFINITIONS. In this subchapter:
               (1)  "Aquifer storage and recovery project" means a
  project involving the injection of water into a geologic formation
  for the purpose of subsequent recovery and beneficial use by the
  project operator.
               (2)  "ASR injection well" means a Class V injection
  well used for the injection of water into a geologic formation as
  part of an aquifer storage and recovery project.
               (3)  "ASR recovery well" means a well used for the
  recovery of water from a geologic formation as part of an aquifer
  storage and recovery project.
               (4)  "Native groundwater" means the groundwater
  naturally occurring in a geologic formation.
               (5)  "Project operator" means a person holding an
  authorization under this subchapter to undertake an aquifer storage
  and recovery project.
         Sec. 27.152.  JURISDICTION. The commission has exclusive
  jurisdiction over the regulation and permitting of ASR injection
  wells.
         Sec. 27.153.  AUTHORIZATION FOR USE OF CLASS V INJECTION
  WELLS. (a) The commission may authorize the use of a Class V
  injection well as an ASR injection well:
               (1)  by rule;
               (2)  under an individual permit; or
               (3)  under a general permit.
         (b)  In adopting a rule or issuing a permit under this
  section, the commission shall consider:
               (1)  whether the injection of water will comply with
  the standards set forth under the federal Safe Drinking Water Act
  (42 U.S.C. Section 300f et seq.);
               (2)  the extent to which the cumulative volume of water
  injected for storage in the receiving geologic formation can be
  successfully recovered from the geologic formation for beneficial
  use, taking into account that injected water may be commingled to
  some degree with native groundwater;
               (3)  the effect of the aquifer storage and recovery
  project on existing water wells; and
               (4)  whether the introduction of water into the
  receiving geologic formation will alter the physical, chemical, or
  biological quality of the native groundwater to a degree that
  would:
                     (A)  render the groundwater produced from the
  receiving geologic formation harmful or detrimental to people,
  animals, vegetation, or property; or
                     (B)  require an unreasonably higher level of
  treatment of the groundwater produced from the receiving geologic
  formation than is necessary for the native groundwater in order to
  render the groundwater suitable for beneficial use.
         (c)  All wells associated with a single aquifer storage and
  recovery project must be located within a continuous perimeter
  boundary of one parcel of land, or two or more adjacent parcels of
  land under common ownership, lease, joint operating agreement, or
  contract.
         (d)  The commission by rule shall provide for public notice
  and comment on a proposed general permit authorized under this
  section. The commission shall require an applicant for an
  individual permit authorized under this section to provide notice
  of the application by first class mail to any groundwater
  conservation district in which the wells associated with the
  aquifer storage and recovery project will be located and by
  publishing notice in a newspaper of general circulation in the
  county in which the wells will be located.
         Sec. 27.154.  TECHNICAL STANDARDS. (a) The commission shall
  adopt technical standards governing the approval of the use of a
  Class V injection well as an ASR injection well.
         (b)  This subsection applies only to an aquifer storage and
  recovery project proposed to be located in a groundwater
  conservation district or other special-purpose district with the
  authority to regulate the withdrawal of groundwater. Except as
  otherwise provided by this section, the commission shall limit the
  volume of water that may be recovered by an aquifer storage and
  recovery project to an amount that does not exceed the amount of
  water injected under the project. If the commission determines that
  the proposed injection of water into a geologic formation will
  result in a loss of injected water or native groundwater, the
  commission shall impose additional restrictions on the amount of
  water that may be recovered to account for the loss. The commission
  may not deny a permit based on a determination that a loss described
  by this subsection will occur. A limitation imposed under this
  subsection may not prohibit the production of native groundwater by
  an aquifer storage and recovery project if the production complies
  with Subchapter N, Chapter 36.
         (c)  The commission by rule shall prescribe construction and
  completion standards and metering and reporting requirements for
  ASR injection wells and ASR recovery wells, including for an ASR
  injection well that also serves as an ASR recovery well.
         (d)  The commission may not adopt or enforce groundwater
  quality protection standards for the quality of water injected into
  an ASR injection well that are more stringent than applicable
  federal standards.
         Sec. 27.155.  REPORTING OF INJECTION AND RECOVERY VOLUMES.
  (a) A project operator shall install a meter on each ASR injection
  well and ASR recovery well associated with the aquifer storage and
  recovery project.
         (b)  Each calendar month, the project operator shall provide
  to the commission a written or electronic report showing for the
  preceding calendar month the volume of water:
               (1)  injected for storage; and
               (2)  recovered for beneficial use.
         Sec. 27.156.  REPORTING OF WATER QUALITY DATA. A project
  operator shall:
               (1)  perform water quality testing annually on water to
  be injected into a geologic formation and water recovered from a
  geologic formation as part of the aquifer storage and recovery
  project; and
               (2)  provide the results of the testing described by
  Subdivision (1) in written or electronic form to the commission.
         Sec. 27.157.  OTHER LAWS NOT AFFECTED. (a) This subchapter
  does not affect the ability to regulate an aquifer storage and
  recovery project as authorized under:
               (1)  Chapter 626, Acts of the 73rd Legislature, Regular
  Session, 1993, for the Edwards Aquifer Authority;
               (2)  Chapter 8801, Special District Local Laws Code,
  for the Harris-Galveston Subsidence District;
               (3)  Chapter 8834, Special District Local Laws Code,
  for the Fort Bend Subsidence District;
               (4)  Chapter 8802, Special District Local Laws Code,
  for the Barton Springs-Edwards Aquifer Conservation District; or
               (5)  Chapter 8811, Special District Local Laws Code,
  for the Corpus Christi Aquifer Storage and Recovery Conservation
  District.
         (b)  This subchapter does not affect the authority of the
  commission regarding:
               (1)  recharge projects in certain portions of the
  Edwards underground reservoir under Sections 11.023(c) and (d); or
               (2)  injection wells that transect or terminate in
  certain portions of the Edwards Aquifer under Section 27.0516.
         SECTION 4.  Chapter 36, Water Code, is amended by adding
  Subchapter N to read as follows:
  SUBCHAPTER N. AQUIFER STORAGE AND RECOVERY PROJECTS
         Sec. 36.451.  DEFINITIONS. In this subchapter, "aquifer
  storage and recovery project," "ASR injection well," "ASR recovery
  well," and "project operator" have the meanings assigned by Section
  27.151.
         Sec. 36.452.  APPLICABILITY TO RECOVERY WELLS THAT ALSO
  FUNCTION AS INJECTION WELLS. Notwithstanding Section 27.152, this
  subchapter applies to an ASR recovery well that also functions as an
  ASR injection well.
         Sec. 36.453.  REGISTRATION AND REPORTING OF WELLS. (a) A
  project operator shall:
               (1)  register the ASR injection wells and ASR recovery
  wells associated with the aquifer storage and recovery project with
  any district in which the wells are located;
               (2)  each calendar month by the deadline established by
  the commission for reporting to the commission, provide the
  district with a copy of the written or electronic report required to
  be provided to the commission under Section 27.155; and
               (3)  annually by the deadline established by the
  commission for reporting to the commission, provide the district
  with a copy of the written or electronic report required to be
  provided to the commission under Section 27.156.
         (b)  If an aquifer storage and recovery project recovers an
  amount of groundwater that exceeds the volume authorized by the
  commission to be recovered under the project, the project operator
  shall report to the district the volume of groundwater recovered
  that exceeds the volume authorized to be recovered in addition to
  providing the report required by Subsection (a)(2).
         Sec. 36.454.  PERMITTING, SPACING, AND PRODUCTION
  REQUIREMENTS. (a) Except as provided by Subsection (b), a district
  may not require a permit for the drilling, equipping, operation, or
  completion of an ASR injection well or an ASR recovery well that is
  authorized by the commission.
         (b)  The ASR recovery wells that are associated with an
  aquifer storage and recovery project are subject to the permitting,
  spacing, and production requirements of the district if the amount
  of groundwater recovered from the wells exceeds the volume
  authorized by the commission to be recovered under the project. The
  requirements of the district apply only to the portion of the volume
  of groundwater recovered from the ASR recovery wells that exceeds
  the volume authorized by the commission to be recovered.
         (c)  A project operator may not recover groundwater by an
  aquifer storage and recovery project in an amount that exceeds the
  volume authorized by the commission to be recovered under the
  project unless the project operator complies with the applicable
  requirements of a district as described by this section.
         Sec. 36.455.  FEES AND SURCHARGES. (a) A district may not
  assess a production fee or a transportation or export fee or
  surcharge for groundwater recovered from an ASR recovery well,
  except to the extent that the amount of groundwater recovered under
  the aquifer storage and recovery project exceeds the volume
  authorized by the commission to be recovered.
         (b)  A district may assess a well registration fee or other
  administrative fee for an ASR recovery well in the same manner that
  the district assesses such a fee for other wells registered with the
  district.
         Sec. 36.456.  DESIRED FUTURE CONDITIONS. A district may
  consider hydrogeologic conditions related to the injection and
  recovery of groundwater as part of an aquifer storage and recovery
  project in the planning for and monitoring of the achievement of a
  desired future condition for the aquifer in which the wells
  associated with the project are located.
         Sec. 36.457.  OTHER LAWS NOT AFFECTED.  This subchapter does
  not affect the ability to regulate groundwater as authorized under:
               (1)  Chapter 626, Acts of the 73rd Legislature, Regular
  Session, 1993, for the Edwards Aquifer Authority;
               (2)  Chapter 8801, Special District Local Laws Code,
  for the Harris-Galveston Subsidence District;
               (3)  Chapter 8834, Special District Local Laws Code,
  for the Fort Bend Subsidence District;
               (4)  Chapter 8802, Special District Local Laws Code,
  for the Barton Springs-Edwards Aquifer Conservation District; or
               (5)  Chapter 8811, Special District Local Laws Code,
  for the Corpus Christi Aquifer Storage and Recovery Conservation
  District.
         SECTION 5.  The following sections of the Water Code are
  repealed:
               (1)  Sections 11.153(d) and (e); and
               (2)  Section 11.154.
         SECTION 6.  Not later than May 1, 2016, the Texas Commission
  on Environmental Quality shall adopt rules to implement Section
  11.153, Water Code, as amended by this Act, and Subchapter G,
  Chapter 27, Water Code, as added by this Act.
         SECTION 7.  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.
 
 
  ______________________________ ______________________________
     President of the Senate Speaker of the House     
 
 
         I certify that H.B. No. 655 was passed by the House on April
  22, 2015, by the following vote:  Yeas 142, Nays 2, 2 present, not
  voting; and that the House concurred in Senate amendments to H.B.
  No. 655 on May 21, 2015, by the following vote:  Yeas 142, Nays 1, 2
  present, not voting.
 
  ______________________________
  Chief Clerk of the House   
 
         I certify that H.B. No. 655 was passed by the Senate, with
  amendments, on May 18, 2015, by the following vote:  Yeas 29, Nays
  1.
 
  ______________________________
  Secretary of the Senate   
  APPROVED: __________________
                  Date       
   
           __________________
                Governor