H.B. No. 2771
 
 
 
 
AN ACT
  relating to the authority of the Texas Commission on Environmental
  Quality to issue permits for the discharge into water in this state
  of produced water, hydrostatic test water, and gas plant effluent
  resulting from certain oil and gas activities.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 26.131, Water Code, as effective until
  delegation of authority under the Resource Conservation and
  Recovery Act of 1976 (42 U.S.C. Section 6901 et seq.) to the
  Railroad Commission of Texas, is amended by amending Subsections
  (a) and (b) and adding Subsection (d) to read as follows:
         (a)  Except as provided by this section, the [The] Railroad
  Commission of Texas is solely responsible for the control and
  disposition of waste and the abatement and prevention of pollution
  of surface and subsurface water resulting from:
               (1)  activities associated with the exploration,
  development, and production of oil or gas or geothermal resources,
  including:
                     (A)  activities associated with the drilling of
  injection water source wells which penetrate the base of useable
  quality water;
                     (B)  activities associated with the drilling of
  cathodic protection holes associated with the cathodic protection
  of wells and pipelines subject to the jurisdiction of the Railroad
  Commission of Texas;
                     (C)  activities associated with gasoline plants,
  natural gas or natural gas liquids processing plants, pressure
  maintenance plants, or repressurizing plants;
                     (D)  activities associated with any underground
  natural gas storage facility, provided the terms "natural gas" and
  "storage facility" shall have the meanings set out in Section
  91.173, Natural Resources Code;
                     (E)  activities associated with any underground
  hydrocarbon storage facility, provided the terms "hydrocarbons"
  and "underground hydrocarbon storage facility" shall have the
  meanings set out in Section 91.201, Natural Resources Code; and
                     (F)  activities associated with the storage,
  handling, reclamation, gathering, transportation, or distribution
  of oil or gas prior to the refining of such oil or prior to the use
  of such gas in any manufacturing process or as a residential or
  industrial fuel;
               (2)  except to the extent the activities are regulated
  by the Texas Department of Health under Chapter 401, Health and
  Safety Code, activities associated with uranium exploration
  consisting of the disturbance of the surface or subsurface for the
  purpose of or related to determining the location, quantity, or
  quality of uranium ore; and
               (3)  any other activities regulated by the Railroad
  Commission of Texas pursuant to Section 91.101, Natural Resources
  Code.
         (b)  Except as provided by Subsection (d), the [The] Railroad
  Commission of Texas may issue permits for the discharge of waste
  resulting from the [these] activities described by Subsection (a),
  and the discharge of waste into water in this state resulting from
  those [these] activities must [shall] meet the water quality
  standards established by the commission.
         (d)  The commission may issue permits for the discharge into
  water in this state of produced water, hydrostatic test water, and
  gas plant effluent resulting from the activities described by
  Subsection (a) on delegation to the commission of NPDES authority
  for those discharges.  The discharge of produced water, hydrostatic
  test water, and gas plant effluent into water in this state under
  this subsection must meet the water quality standards established
  by the commission.
         SECTION 2.  Section 26.131, Water Code, as effective on
  delegation of authority under the Resource Conservation and
  Recovery Act of 1976 (42 U.S.C. 6901 et seq.) to the Railroad
  Commission of Texas, is amended to read as follows:
         Sec. 26.131.  DUTIES OF RAILROAD COMMISSION. (a) Except as
  provided by this section, the [The] Railroad Commission of Texas is
  solely responsible for the control and disposition of waste and the
  abatement and prevention of pollution of surface and subsurface
  water resulting from:
               (1)  activities associated with the exploration,
  development, and production of oil or gas or geothermal resources,
  including:
                     (A)  activities associated with the drilling of
  injection water source wells which penetrate the base of useable
  quality water;
                     (B)  activities associated with the drilling of
  cathodic protection holes associated with the cathodic protection
  of wells and pipelines subject to the jurisdiction of the Railroad
  Commission of Texas;
                     (C)  activities associated with gasoline plants,
  natural gas or natural gas liquids processing plants, pressure
  maintenance plants, or repressurizing plants;
                     (D)  activities associated with any underground
  natural gas storage facility, provided the terms "natural gas" and
  "storage facility" shall have the meanings set out in Section
  91.173, Natural Resources Code;
                     (E)  activities associated with any underground
  hydrocarbon storage facility, provided the terms "hydrocarbons"
  and "underground hydrocarbon storage facility" shall have the
  meanings set out in Section 91.201, Natural Resources Code; and
                     (F)  activities associated with the storage,
  handling, reclamation, gathering, transportation, or distribution
  of oil or gas prior to the refining of such oil or prior to the use
  of such gas in any manufacturing process or as a residential or
  industrial fuel;
               (2)  except to the extent the activities are regulated
  by the Texas Department of Health under Chapter 401, Health and
  Safety Code, activities associated with uranium exploration
  consisting of the disturbance of the surface or subsurface for the
  purpose of or related to determining the location, quantity, or
  quality of uranium ore; and
               (3)  any other activities regulated by the Railroad
  Commission of Texas pursuant to Section 91.101, Natural Resources
  Code.
         (b)  Except as provided by Subsection (c), the [The] Railroad
  Commission of Texas may issue permits for the discharge of waste
  resulting from the [these] activities described by Subsection (a),
  and the discharge of waste into water in this state resulting from
  those [these] activities must [shall] meet the water quality
  standards established by the commission.
         (c)  The commission may issue permits for the discharge into
  water in this state of produced water, hydrostatic test water, and
  gas plant effluent resulting from the activities described by
  Subsection (a) on delegation to the commission of NPDES authority
  for those discharges.  The discharge of produced water, hydrostatic
  test water, and gas plant effluent into water in this state under
  this subsection must meet the water quality standards established
  by the commission.
         SECTION 3.  (a)  In this section:
               (1)  "Commission" means the Texas Commission on
  Environmental Quality.
               (2)  "NPDES" means National Pollutant Discharge
  Elimination System.
         (b)  On delegation of NPDES permit authority for discharges
  of produced water, hydrostatic test water, and gas plant effluent
  to the commission by the United States Environmental Protection
  Agency under Section 402(b) of the Federal Water Pollution Control
  Act (33 U.S.C. Section 1342(b)), the following are transferred from
  the Railroad Commission of Texas to the commission:
               (1)  the powers, duties, functions, programs, and
  activities of the Railroad Commission of Texas relating to the
  regulation of discharges of produced water, hydrostatic test water,
  and gas plant effluent into water in this state, other than
  discharges resulting from spills or other unplanned releases;
               (2)  any obligations and contracts of the Railroad
  Commission of Texas that are directly related to implementing a
  power, duty, function, program, or activity transferred under this
  Act; and
               (3)  all property and records in the custody of the
  Railroad Commission of Texas that are related to a power, duty,
  function, program, or activity transferred under this Act.
         (c)  The Railroad Commission of Texas shall continue to carry
  out its duties related to the regulation of discharges of produced
  water, hydrostatic test water, and gas plant effluent into water in
  this state until delegation of NPDES permit authority for
  discharges of produced water, hydrostatic test water, and gas plant
  effluent to the commission by the United States Environmental
  Protection Agency under Section 402(b) of the Federal Water
  Pollution Control Act (33 U.S.C. Section 1342(b)).
         (d)  The commission may carry out activities to ensure an
  orderly transfer of the powers, duties, functions, programs, and
  activities transferred under this Act, including hiring additional
  employees and amending the memorandum of understanding by mutual
  agreement with the Railroad Commission of Texas.
 
         (e)  Not later than September 1, 2021, the commission shall
  submit to the United States Environmental Protection Agency for
  approval a request to supplement or amend the Texas Pollutant
  Discharge Elimination System program to include delegation of NPDES
  permit authority for discharges of produced water, hydrostatic test
  water, and gas plant effluent.
         SECTION 4.  The change in law made by this Act to Section
  26.131, Water Code, applies to an application for an authorization
  to discharge produced water, hydrostatic test water, or gas plant
  effluent into water in this state that is pending on or after the
  effective date of delegation of National Pollutant Discharge
  Elimination System permit authority for discharges of produced
  water, hydrostatic test water, and gas plant effluent to the Texas
  Commission on Environmental Quality by the United States
  Environmental Protection Agency under Section 402(b) of the Federal
  Water Pollution Control Act (33 U.S.C. Section 1342(b)). An
  application that is granted or denied in a final decision before the
  effective date of such delegation is governed by the law as it
  existed immediately before the effective date of such delegation,
  and that law is continued in effect for that purpose.
         SECTION 5.  This Act takes effect September 1, 2019.
 
 
  ______________________________ ______________________________
     President of the Senate Speaker of the House     
 
 
         I certify that H.B. No. 2771 was passed by the House on April
  17, 2019, by the following vote:  Yeas 94, Nays 47, 2 present, not
  voting; and that the House concurred in Senate amendments to H.B.
  No. 2771 on May 23, 2019, by the following vote:  Yeas 109, Nays 33,
  2 present, not voting.
 
  ______________________________
  Chief Clerk of the House   
 
         I certify that H.B. No. 2771 was passed by the Senate, with
  amendments, on May 16, 2019, by the following vote:  Yeas 24, Nays
  7.
 
  ______________________________
  Secretary of the Senate   
  APPROVED: __________________
                  Date       
   
           __________________
                Governor