By: Lucio III, et al. (Senate Sponsor - Hinojosa)	H.B. No. 2031
	(In the Senate - Received from the House May 4, 2015;
	May 4, 2015, read first time and referred to Committee on
	Agriculture, Water, and Rural Affairs; May 19, 2015, reported
	favorably by the following vote:  Yeas 6, Nays 0; May 19, 2015, sent
	to printer.)

	A BILL TO BE ENTITLED
	AN ACT
	relating to the diversion, treatment, and use of marine seawater
	and the discharge of treated marine seawater and waste resulting
	from the desalination of marine seawater; adding provisions subject
	to a criminal penalty.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
	SECTION 1.  (a)  With this state facing an ongoing drought,
	continuing population growth, and the need to remain economically
	competitive, every effort must be made to secure and develop
	plentiful and cost-effective water supplies to meet the
	ever-increasing demand for water. The purpose of this Act is not to
	hinder efforts to conserve or develop other surface water supplies
	but rather to more fully explore and expedite the development of all
	this state's water resources in order to balance this state's supply
	and demand for water, which is one of the most precious resources of
	this state.
	(b)  Currently, the projected long-term water needs of this
	state far exceed the firm supplies that are available and that can
	reasonably be made available from freshwater sources within this
	state. The legislature recognizes the importance of providing for
	this state's current and future water needs at all times,
	including, consistent with reasonable drought contingency
	measures, during severe droughts.
	(c)  In this state, marine seawater is a potential new source
	of water for drinking and other beneficial uses. This state has
	access to vast quantities of marine seawater from the Gulf of
	Mexico. The purpose of this Act is to streamline the regulatory
	process for and reduce the time required for and cost of marine
	seawater desalination.
	(d)  The legislature finds that marine seawater desalination
	facilities should be cost-effectively and timely developed,
	concurrently with other water planning solutions, to help this
	state meet its current and future water needs.
	(e)  The legislature finds that it is necessary and
	appropriate to grant authority and provide for expedited and
	streamlined authorization for marine seawater desalination
	facilities, consistent with appropriate environmental and water
	right protections, in order to avoid unnecessary costs, delays, and
	uncertainty and thereby help justify the investment of significant
	resources in the development of such facilities.
	SECTION 2.  Section 5.509(a), Water Code, is amended to read
	as follows:
	(a)  The commission may issue an emergency or temporary order
	relating to the discharge of waste or pollutants into or adjacent to
	water in the state if:
	(1)  the order is necessary to enable action to be taken
	more expeditiously than is otherwise provided by Chapter 18 or 26,
	as applicable, to effectuate the policy and purposes of that
	chapter; and
	(2)  the commission finds that:
	(A)  the discharge is unavoidable to:
	(i)  prevent loss of life, serious injury,
	or severe property damage;
	(ii)  prevent severe economic loss or
	ameliorate serious drought conditions, to the extent consistent
	with the requirements for United States Environmental Protection
	Agency authorization of a state permit program; or
	(iii)  make necessary and unforeseen repairs
	to a facility;
	(B)  there is no feasible alternative to the
	proposed discharge;
	(C)  the discharge will not cause significant
	hazard to human life and health, unreasonable damage to the
	property of persons other than the applicant, or unreasonable
	economic loss to persons other than the applicant; and
	(D)  the discharge will not present a significant
	hazard to the uses that will be made of the receiving water after
	the discharge.
	SECTION 3.  Section 5.551, Water Code, is amended by adding
	Subsection (a-1) to read as follows:
	(a-1)  Notwithstanding Section 18.002, this subchapter does
	not apply to a permit issued under Section 18.005(c)(2) if the point
	of discharge is not located within three miles of any point located
	on the coast of this state.
	SECTION 4.  Section 7.302(a), Water Code, is amended to read
	as follows:
	(a)  This section applies to a permit or exemption issued by
	the commission under:
	(1)  Section 18.005 of this code;
	(2)  Chapter 26, 27, 28, or 31 of this code;
	(3) [(2)]  Subchapter C or R, Chapter 361, Health and
	Safety Code;
	(4) [(3)]  Subchapter D, Chapter 366, Health and Safety
	Code;
	(5) [(4)]  Chapter 382, Health and Safety Code; or
	(6) [(5)]  a rule adopted under any of those
	provisions.
	SECTION 5.  Section 11.0237(b), Water Code, is amended to
	read as follows:
	(b)  This section does not alter the commission's
	obligations under Section 11.042(a-1), (b), or (c), 11.046(b),
	11.085(k)(2)(F), 11.134(b)(3)(D), 11.147, 11.1471, 11.1491,
	11.150, 11.152, 16.058, [or] 16.059, or 18.004.
	SECTION 6.  Section 11.082, Water Code, is amended by adding
	Subsection (a-1) to read as follows:
	(a-1)  Notwithstanding Section 18.002, this section does not
	apply to a violation of:
	(1)  Section 18.003 or a permit issued under that
	section; or
	(2)  Section 18.004 or an authorization granted under
	that section.
	SECTION 7.  Section 11.0842, Water Code, is amended by
	adding Subsection (a-1) to read as follows:
	(a-1)  Notwithstanding Section 18.002, this section does not
	apply to a violation of:
	(1)  Section 18.003 or a permit issued under that
	section; or
	(2)  Section 18.004 or an authorization granted under
	that section.
	SECTION 8.  Section 11.121, Water Code, is amended to read as
	follows:
	Sec. 11.121.  PERMIT REQUIRED. Except as provided in
	Sections 11.142, 11.1421, [and] 11.1422, and 18.003 [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 9.  Section 16.053(e), Water Code, is amended to
	read as follows:
	(e)  Each regional water planning group shall submit to the
	development board a regional water plan that:
	(1)  is consistent with the guidance principles for the
	state water plan adopted by the development board under Section
	16.051(d);
	(2)  provides information based on data provided or
	approved by the development board in a format consistent with the
	guidelines provided by the development board under Subsection (d);
	(2-a)  is consistent with the desired future conditions
	adopted under Section 36.108 for the relevant aquifers located in
	the regional water planning area as of the date the board most
	recently adopted a state water plan under Section 16.051 or, at the
	option of the regional water planning group, established subsequent
	to the adoption of the most recent plan;
	(3)  identifies:
	(A)  each source of water supply in the regional
	water planning area, including information supplied by the
	executive administrator on the amount of modeled available
	groundwater in accordance with the guidelines provided by the
	development board under Subsections (d) and (f);
	(B)  factors specific to each source of water
	supply to be considered in determining whether to initiate a
	drought response;
	(C)  actions to be taken as part of the response;
	and
	(D)  existing major water infrastructure
	facilities that may be used for interconnections in the event of an
	emergency shortage of water;
	(4)  has specific provisions for water management
	strategies to be used during a drought of record;
	(5)  includes but is not limited to consideration of
	the following:
	(A)  any existing water or drought planning
	efforts addressing all or a portion of the region;
	(B)  approved groundwater conservation district
	management plans and other plans submitted under Section 16.054;
	(C)  all potentially feasible water management
	strategies, including but not limited to improved conservation,
	reuse, and management of existing water supplies, conjunctive use,
	acquisition of available existing water supplies, and development
	of new water supplies;
	(D)  protection of existing water rights in the
	region;
	(E)  opportunities for and the benefits of
	developing regional water supply facilities or providing regional
	management of water supply facilities;
	(F)  appropriate provision for environmental
	water needs and for the effect of upstream development on the bays,
	estuaries, and arms of the Gulf of Mexico and the effect of plans on
	navigation;
	(G)  provisions in Section 11.085(k)(1) if
	interbasin transfers are contemplated;
	(H)  voluntary transfer of water within the region
	using, but not limited to, regional water banks, sales, leases,
	options, subordination agreements, and financing agreements; [and]
	(I)  emergency transfer of water under Section
	11.139, including information on the part of each permit, certified
	filing, or certificate of adjudication for nonmunicipal use in the
	region that may be transferred without causing unreasonable damage
	to the property of the nonmunicipal water rights holder; and
	(J)  opportunities for and the benefits of
	developing large-scale desalination facilities for marine seawater
	that serve local or regional entities;
	(6)  identifies river and stream segments of unique
	ecological value and sites of unique value for the construction of
	reservoirs that the regional water planning group recommends for
	protection under Section 16.051;
	(7)  assesses the impact of the plan on unique river and
	stream segments identified in Subdivision (6) if the regional water
	planning group or the legislature determines that a site of unique
	ecological value exists;
	(8)  describes the impact of proposed water projects on
	water quality; and
	(9)  includes information on:
	(A)  projected water use and conservation in the
	regional water planning area; and
	(B)  the implementation of state and regional
	water plan projects, including water conservation strategies,
	necessary to meet the state's projected water demands.
	SECTION 10.  Subtitle C, Title 2, Water Code, is amended by
	adding Chapter 18 to read as follows:
	CHAPTER 18. MARINE SEAWATER DESALINATION PROJECTS
	Sec. 18.001.  DEFINITIONS. In this chapter:
	(1)  "Commission" means the Texas Commission on
	Environmental Quality.
	(2)  "Marine seawater" means water that is derived from
	the Gulf of Mexico.
	(3)  "Project" means:
	(A)  a marine seawater desalination project; or
	(B)  a facility for the storage, conveyance, and
	delivery of desalinated marine seawater.
	Sec. 18.002.  RELATIONSHIP TO OTHER LAWS. (a)  Except as
	provided by Subsection (b) or as otherwise provided by law:
	(1)  Chapter 11 applies to a permit or authorization
	under Section 18.003 or 18.004 in the same manner as that chapter
	applies to a permit or authorization under that chapter; and
	(2)  Chapter 26 applies to a permit under Section
	18.005 in the same manner as that chapter applies to a permit under
	that chapter.
	(b)  In the event of a conflict between this chapter and
	Chapter 11 or 26, this chapter controls.
	(c)  This chapter is intended to provide an alternative
	procedure for obtaining an authorization to divert and use state
	water that consists of marine seawater or to discharge treated
	marine seawater or waste resulting from the desalination of treated
	marine seawater under the circumstances provided by this chapter.
	This chapter does not affect the authority of a person to:
	(1)  divert and use state water that consists of marine
	seawater in accordance with the procedures provided by Chapter 11,
	including the authority to divert marine seawater from a point of
	diversion located in a bay or estuary; or
	(2)  discharge treated marine seawater or waste
	resulting from the desalination of treated marine seawater in
	accordance with the procedures provided by Chapter 26, including
	the authority to discharge waste resulting from the desalination of
	marine seawater into a bay or estuary.
	Sec. 18.003.  DIVERSIONS OF MARINE SEAWATER. (a)  A person
	must obtain a permit to divert and use state water that consists of
	marine seawater 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 and use state water that consists of
	marine seawater 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 required by 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 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 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 person may use marine seawater diverted under a permit
	required by Subsection (a) or as authorized by Subsection (b) for
	any beneficial purpose, but only if the seawater is treated in
	accordance with rules adopted by the commission before it is used.
	Rules adopted under this subsection may impose different treatment
	requirements based on the purpose for which the seawater is to be
	used.
	(e)  The commission shall adopt rules providing an expedited
	procedure for acting on an application for a permit required by
	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.
	(f)  A person may not divert marine seawater under a permit
	required by Subsection (a) or as authorized by Subsection (b) from a
	point of diversion located in a bay or estuary.
	(g)  An application for a permit required by Subsection (a)
	must address the points from which, and the rate at which, the
	facility the applicant proposes to construct will divert marine
	seawater.
	(h)  The commission by rule shall prescribe reasonable
	measures to minimize impingement and entrainment.
	(i)  The Parks and Wildlife Department and the General Land
	Office jointly shall conduct a study to identify zones in the Gulf
	of Mexico that are appropriate for the diversion of marine
	seawater, taking into account the need to protect marine organisms.
	Not later than September 1, 2018, the Parks and Wildlife Department
	and the General Land Office shall submit a report on the results of
	the study to the commission.  The report must include recommended
	diversion zones for designation by the commission and
	recommendations for the number of points from which, and the rate at
	which, a facility may divert marine seawater.  Not later than
	September 1, 2020, the commission by rule shall designate
	appropriate diversion zones. A diversion zone may be contiguous
	to, be the same as, or overlap a discharge zone. The point or points
	from which a facility may divert marine seawater must be located in
	a diversion zone designated by the commission under rules adopted
	under this subsection if:
	(1)  the facility is authorized by a permit as required
	by Subsection (a) issued after the rules are adopted; or
	(2)  the facility is exempt under Subsection (b) from
	the requirement of a permit and construction of the facility begins
	after the rules are adopted.
	(j)  Until the commission adopts rules under Subsection (i),
	a person must consult the Parks and Wildlife Department and the
	General Land Office regarding the point or points from which a
	facility the person proposes to construct may divert marine
	seawater before submitting an application for a permit for the
	facility if Subsection (a) applies or before beginning construction
	of the facility if Subsection (b) applies.
	Sec. 18.004.  BED AND BANKS AUTHORIZATION. (a)  With prior
	authorization granted under rules prescribed by the commission, a
	person may use the bed and banks of any flowing natural stream in
	this state or a lake, reservoir, or other impoundment in this state
	to convey marine seawater that has been treated so as to meet
	standards that are at least as stringent as the water quality
	standards applicable to the receiving stream or impoundment adopted
	by the commission.
	(b)  The commission shall provide for notice and an
	opportunity for the submission of written comment but may not
	provide an opportunity for a contested case hearing regarding
	commission actions relating to an application for an authorization
	under this section to use the bed and banks of a flowing natural
	stream to convey treated marine seawater. The commission shall
	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 an authorization
	under this section to use a lake, reservoir, or other impoundment to
	convey treated marine seawater.
	(c)  A person may not discharge treated marine seawater into
	a flowing natural stream in this state or a lake, reservoir, or
	other impoundment in this state for the purpose of conveyance of the
	water under an authorization granted under this section unless the
	person holds a permit issued under Section 18.005 authorizing the
	discharge.
	(d)  Treated marine seawater that is conveyed under an
	authorization granted under this section may be used only by the
	person to whom the authorization is granted.
	(e)  Section 11.042(c) applies to an authorization granted
	under this section in the same manner as that subsection applies to
	an authorization granted under Section 11.042.
	(f)  This section does not prohibit a person from conveying
	treated marine seawater in any other manner authorized by law.
	Sec. 18.005.  DISCHARGE OF TREATED MARINE SEAWATER OR WASTE
	RESULTING FROM DESALINATION OF MARINE SEAWATER. (a)  In this
	section, "permit," "person," "to discharge," "waste," and "water"
	have the meanings assigned by Section 26.001.
	(b)  Section 26.011 applies to discharges governed by this
	section in the same manner as that section applies to discharges
	governed by Chapter 26.
	(c)  A person must obtain a permit to discharge:
	(1)  treated marine seawater into a natural stream in
	this state or a lake, reservoir, or other impoundment in this state;
	or
	(2)  waste resulting from the desalination of treated
	marine seawater into the Gulf of Mexico.
	(d)  A person shall:
	(1)  treat marine seawater so as to meet standards that
	are at least as stringent as the water quality standards adopted by
	the commission applicable to the receiving stream or impoundment
	before discharging the seawater under this section; and
	(2)  comply with all applicable state and federal
	requirements when discharging waste resulting from the
	desalination of marine seawater into the Gulf of Mexico.
	(e)  The commission by rule shall provide an expedited
	procedure for acting on an application for a permit under this
	section. The rules must provide for:
	(1)  notice, an opportunity for the submission of
	written comment, and an opportunity to request a public meeting and
	may authorize a contested case hearing regarding commission actions
	relating to an application for a permit described by Subsection
	(c)(1);
	(2)  notice, an opportunity for the submission of
	written comment, an opportunity to request a public meeting, and an
	opportunity for a contested case hearing regarding commission
	actions relating to an application for a permit described by
	Subsection (c)(2) if the point of discharge is located within three
	miles of any point located on the coast of this state; and
	(3)  notice and an opportunity for the submission of
	written comment regarding commission actions relating to an
	application for a permit described by Subsection (c)(2) if
	Subdivision (2) of this subsection does not apply.
	(f)  A person may not discharge waste resulting from the
	desalination of marine seawater into a bay or estuary under a permit
	issued under Subsection (c)(2).
	(g)  The Parks and Wildlife Department and the General Land
	Office jointly shall conduct a study to identify zones in the Gulf
	of Mexico that are appropriate for the discharge of waste resulting
	from the desalination of marine seawater, taking into account the
	need to protect marine organisms. Not later than September 1, 2018,
	the Parks and Wildlife Department and the General Land Office shall
	submit a report on the results of the study to the commission. The
	report must include recommended discharge zones for designation by
	the commission.  Not later than September 1, 2020, the commission by
	rule shall designate appropriate discharge zones. The point at
	which a facility may discharge waste resulting from the
	desalination of marine seawater must be located in a discharge zone
	designated by the commission under rules adopted under this
	subsection if the facility is authorized by a permit issued under
	Subsection (c)(2) after the rules are adopted.
	(h)  Until the commission adopts rules under Subsection (g),
	a person must consult the Parks and Wildlife Department and the
	General Land Office regarding the point at which the facility the
	person proposes to construct may discharge waste resulting from the
	desalination of marine seawater before submitting an application
	for a permit under Subsection (c)(2) for the facility.
	SECTION 11.  Section 26.0291(a), Water Code, is amended to
	read as follows:
	(a)  An annual water quality fee is imposed on:
	(1)  each wastewater discharge permit holder,
	including the holder of a permit issued under Section 18.005, for
	each wastewater discharge permit held; and
	(2)  each user of water in proportion to the user's
	water right, through permit or contract, as reflected in the
	commission's records, provided that the commission by rule shall
	ensure that no fee shall be assessed for the portion of a municipal
	or industrial water right directly associated with a facility or
	operation for which a fee is assessed under Subdivision (1) of this
	subsection.
	SECTION 12.  Subchapter C, Chapter 341, Health and Safety
	Code, is amended by adding Section 341.0316 to read as follows:
	Sec. 341.0316.  DESALINATION OF MARINE SEAWATER FOR DRINKING
	WATER. (a)  This section applies only to a desalination facility
	that is intended to treat marine seawater for the purpose of
	producing water for the public drinking water supply. This section
	does not apply to a desalination facility used to produce
	nonpotable water.
	(b)  The commission shall adopt rules to:
	(1)  allow water treated by a desalination facility to
	be used as public drinking water; and
	(2)  ensure that water treated by a desalination
	facility meets the requirements of Section 341.031 and rules
	adopted under that section.
	(c)  A person may not begin construction of a desalination
	facility that treats marine seawater for the purpose of removing
	primary or secondary drinking water contaminants unless the
	commission approves the construction of the facility.
	SECTION 13.  Section 16.060, Water Code, is repealed.
	SECTION 14.  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.
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