H.B. No. 4097
 
 
 
 
AN ACT
  relating to seawater desalination projects.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 39.203, Utilities Code, is amended by
  adding Subsection (i) to read as follows:
         (i)  The commission, in cooperation with transmission and
  distribution utilities and the ERCOT independent system operator,
  shall study whether existing transmission and distribution
  planning processes are sufficient to provide adequate
  infrastructure for seawater desalination projects. If the
  commission determines that statutory changes are needed to ensure
  that adequate infrastructure is developed for projects of that
  kind, the commission shall include recommendations in the report
  required by Section 31.003.
         SECTION 2.  Subchapter Z, Chapter 39, Utilities Code, is
  amended by adding Section 39.9055 to read as follows:
         Sec. 39.9055.  EXAMINATION OF DEMAND RESPONSE POTENTIAL OF
  SEAWATER DESALINATION PROJECTS. The commission and the ERCOT
  independent system operator shall study the potential for seawater
  desalination projects to participate in existing demand response
  opportunities in the ERCOT market. To the extent feasible, the
  study shall determine whether the operational characteristics of
  seawater desalination projects enable projects of that kind to
  participate in ERCOT-operated ancillary services markets or other
  competitively supplied demand response opportunities. The study
  shall also determine the potential economic benefit to a seawater
  desalination project if the project is able to reduce its demand
  during peak pricing periods. The commission shall include the
  results of the study in the report required by Section 31.003.
         SECTION 3.  Section 11.121, Water Code, is amended to read as
  follows:
         Sec. 11.121.  PERMIT REQUIRED. Except as provided in
  Sections 11.1405, 11.142, 11.1421, and 11.1422 [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 4.  Subchapter D, Chapter 11, Water Code, is amended
  by adding Section 11.1405 to read as follows:
         Sec. 11.1405.  DESALINATION OF SEAWATER FOR USE FOR
  INDUSTRIAL PURPOSES. (a)  The commission may issue a permit under
  this section to authorize a diversion of state water from the Gulf
  of Mexico or a bay or arm of the Gulf of Mexico for desalination and
  use for industrial purposes if:
               (1)  the point of diversion is located less than three
  miles seaward of 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 monthly at
  the water source of less than 20,000 milligrams per liter.
         (b)  A person may divert state water from the Gulf of Mexico
  or a bay or arm of the Gulf of Mexico for desalination and use for
  industrial purposes without obtaining a permit if Subsection (a)
  does not apply.
         (c)  A person who diverts and uses state water that consists
  of marine seawater under a permit issued under Subsection (a) or as
  authorized by Subsection (b) must determine the total dissolved
  solids concentration of the seawater at the water source by monthly
  sampling and analysis and provide the data collected to the
  commission. A person may not begin construction of a facility for
  the diversion of marine seawater for the purposes provided by this
  section without obtaining a permit until the person has provided
  data to the commission based on the analysis of samples taken at the
  water source over a period of at least one year demonstrating that
  Subsection (a)(2) does not apply. A person who has begun
  construction of a facility for the diversion of marine seawater for
  the purposes provided by this section without obtaining a permit
  because the person has demonstrated that Subsection (a)(2) does not
  apply is not required to obtain a permit for the facility if the
  total dissolved solids concentration of the seawater at the water
  source subsequently changes so that Subsection (a)(2) applies.
         (d)  A permit application under this section must be
  submitted as required by commission rule.
         (e)  The commission is not required to make a finding of
  water availability for an application under this section.
         (f)  The commission shall evaluate whether any proposed
  diversion under this section is consistent with any applicable
  environmental flow standards established under Section 11.1471.
         (g)  The commission may include any provision in a permit
  issued under this section that the commission considers necessary
  to comply with the environmental flow standards established under
  Section 11.1471.
         (h)  The commission shall adopt rules providing an expedited
  procedure for acting on an application for a permit under
  Subsection (a). 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 an
  application for a permit.
         SECTION 5.  Subchapter B, Chapter 26, Water Code, is amended
  by adding Section 26.0272 to read as follows:
         Sec. 26.0272.  PERMITS AUTHORIZING DISCHARGES FROM CERTAIN
  SEAWATER DESALINATION FACILITIES. (a) This section applies only to
  a facility that generates water treatment residuals from the
  desalination of seawater solely for use as part of an industrial
  process.
         (b)  The commission may issue a permit for the discharge of
  water treatment residuals from the desalination of seawater into
  the portion of the Gulf of Mexico inside the territorial limits of
  the state.
         (c)  Before issuing a permit under this section, the
  commission must evaluate the discharge of water treatment residuals
  from the desalination of seawater into the Gulf of Mexico for
  compliance with the state water quality standards adopted by the
  commission, the requirements of the Texas Pollutant Discharge
  Elimination System program, and applicable federal law.
         (d)  The commission may issue individual permits or a general
  permit under this section. If the commission elects to issue
  individual permits under this section, the commission must
  establish procedures for the review of an application that, at a
  minimum, comply with the requirements of Subchapter M, Chapter 5.
  If the commission elects to issue a general permit under this
  section, the commission must comply with the requirements of
  Section 26.040.
         SECTION 6.  Section 27.021, Water Code, is amended by adding
  Subsection (a-1) to read as follows:
         (a-1)  A permit issued under this section may authorize the
  disposal of water treatment residuals produced by the desalination
  of seawater.
         SECTION 7.  Section 27.025, Water Code, is amended by adding
  Subsection (a-1) to read as follows:
         (a-1)  A general permit issued under this section may
  authorize an injection well for the disposal of concentrate
  produced by the desalination of seawater. The general permit must
  include any requirements necessary to maintain delegation of the
  federal underground injection control program administered by the
  commission.
         SECTION 8.  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. 4097 was passed by the House on May
  11, 2015, by the following vote:  Yeas 137, Nays 0, 1 present, not
  voting; and that the House concurred in Senate amendments to H.B.
  No. 4097 on May 26, 2015, by the following vote:  Yeas 145, Nays 0,
  2 present, not voting.
 
  ______________________________
  Chief Clerk of the House   
 
         I certify that H.B. No. 4097 was passed by the Senate, with
  amendments, on May 23, 2015, by the following vote:  Yeas 31, Nays
  0.
 
  ______________________________
  Secretary of the Senate   
  APPROVED: __________________
                  Date       
   
           __________________
                Governor