H.B. No. 4256

	AN ACT
	relating to the establishment of a grant program to plug leaking
	water wells in certain counties.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
	SECTION 1.  Chapter 28, Water Code, is amended by adding
	Subchapter E to read as follows:
	SUBCHAPTER E.  LEAKING WATER WELLS GRANT PROGRAM
	Sec. 28.101.  DEFINITIONS. In this subchapter:
	(1)  "District" means a district or authority created
	under Section 52, Article III, or Section 59, Article XVI, Texas
	Constitution, that has the authority to regulate the spacing of
	water wells, the production of water wells, or both.
	(2)  "Fund" means the leaking water wells fund created
	under Section 28.103.
	(3)  "Program" means the leaking water wells program
	established under Section 28.104.
	Sec. 28.102.  APPLICABILITY OF SUBCHAPTER. This subchapter
	applies only to a district in a county that:
	(1)  has a population of 16,000 or less; and
	(2)  is adjacent to at least seven counties with
	populations of less than 15,000.
	Sec. 28.103.  LEAKING WATER WELLS FUND. (a) The leaking
	water wells fund is created as a fund in the state treasury outside
	the general revenue fund.
	(b)  The fund consists of:
	(1)  money appropriated, credited, or transferred to
	the fund by the legislature;
	(2)  gifts or grants contributed to the fund; and
	(3)  interest earned on deposits and investments of the
	fund.
	(c)  Interest earned on money deposited to the credit of the
	fund is exempt from Section 404.071, Government Code. Interest
	earned on money in the fund shall be retained in the fund.
	(d)  The fund may be used only to implement the program
	established under Section 28.104, including the costs of program
	administration and operation.
	Sec. 28.104.  LEAKING WATER WELLS PROGRAM. The commission
	shall establish and administer the leaking water wells program to
	plug leaking water wells. Under the program, the commission shall
	provide grants to districts for eligible projects to offset the
	cost of plugging leaking water wells.
	Sec. 28.105.  APPLICATION FOR GRANT. (a) A district may
	apply for and receive a grant for an eligible project under the
	program.
	(b)  An application for a grant under this subchapter must be
	made on a form provided by the commission and must contain the
	information required by the commission.
	Sec. 28.106.  ELIGIBILITY OF PROJECTS FOR GRANTS;
	PRIORITIZATION. (a) To be eligible for a grant for a project, a
	district must:
	(1)  demonstrate that the project includes a leaking
	water well:
	(A)  that:
	(i)  is located within 2,000 feet of a
	drinking water well, a water well for livestock or irrigation, or a
	sensitive wildlife area; or
	(ii)  has seasonal or annual flow to the
	surface, or a hydrological connection to surface water, including a
	waterway, intermittent stream, or springs system; and
	(B)  of which:
	(i)  the plug, casing, completion interval,
	or general integrity is known by the district to be deficient; or
	(ii)  the completion interval is
	sufficiently proximate to other known intervals or pressurized
	zones with high concentrations of salinity, chlorides, sulfides, or
	other hazardous or toxic components;
	(2)  obtain any necessary approval from a surface owner
	for access to the property where the leaking water well is located;
	and
	(3)  as necessary and subject to Subsection (b), engage
	in a bid process to select and hire a contractor or subcontractor to
	perform the work.
	(b)  Notwithstanding any other law, a contract for work on a
	project for which a grant is provided under the program:
	(1)  must be awarded to a contractor or subcontractor
	selected from a list of approved well pluggers maintained by the
	Railroad Commission of Texas; and
	(2)  may be awarded to the contractor or subcontractor
	whose bid or proposal the recipient of the grant determines
	provides the best value for the recipient based on the selection
	criteria published by the recipient.
	(c)  The commission by rule shall establish criteria for
	prioritizing projects eligible to receive a grant under the
	program.
	Sec. 28.107.  RESTRICTION ON USE OF GRANT. (a) A recipient
	of a grant provided under the program may use the grant only to pay
	the cost of the project for which the grant is provided. A recipient
	may not use the grant to pay administrative costs associated with
	the project.
	(b)  A leaking water well plugged under the program must be
	permanently plugged. The commission, in consultation with the
	Railroad Commission of Texas, shall establish criteria for ensuring
	that a well is permanently plugged.
	(c)  The amount of a grant provided under the program that is
	not spent for the completion of a project must be returned to the
	commission for deposit to the credit of the fund.
	SECTION 2.  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, 2023.
	______________________________	______________________________
	President of the Senate	Speaker of the House
	I certify that H.B. No. 4256 was passed by the House on April
	27, 2023, by the following vote:  Yeas 131, Nays 17, 1 present, not
	voting; and that the House concurred in Senate amendments to H.B.
	No. 4256 on May 25, 2023, by the following vote:  Yeas 123, Nays 17,
	2 present, not voting.
	______________________________
	Chief Clerk of the House
	I certify that H.B. No. 4256 was passed by the Senate, with
	amendments, on May 23, 2023, by the following vote:  Yeas 30, Nays
	1.
	______________________________
	Secretary of the Senate
	APPROVED: __________________
	Date
	__________________
	Governor