By: Hinojosa	S.B. No. 1738

	A BILL TO BE ENTITLED
	AN ACT
	relating to the development and production of marine seawater
	desalination, integrated marine seawater desalination, and
	facilities for the storage, conveyance, and delivery of desalinated
	marine seawater.
	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 the conservation or development of other surface water
	efforts; however, its purpose is to more fully explore and expedite
	the development of all water resources in order to balance the
	state's supply and demand for water, 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 the
	state.  The legislature recognizes the importance of providing for
	this state's current and future water needs at all times, including
	during severe droughts.
	(b)  In Texas, marine seawater is a potential new source of
	public drinking water.  This state has access to over 600
	quadrillion gallons of marine seawater from the Gulf of Mexico.  The
	purpose of this Act is to streamline the process and reduce the cost
	and regulation of marine seawater desalination.
	(c)  The legislature finds that marine seawater desalination
	projects should be cost-effectively, timely, and concurrently
	developed, alongside other water planning solutions, to help this
	state meet its current and future firm water needs.
	(d)  The legislature finds that it is necessary and
	appropriate to grant certain rights or authority and provide for
	expedited and streamlined permitting for large-scale marine
	seawater desalination projects and integrated marine seawater
	desalination and power projects, to avoid unnecessary costs, delays
	and uncertainty and thereby help justify the investment of
	significant resources of the state in the development of such
	projects.
	SECTION 2.  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 11.1423 [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 3.  Section 11.1311, Water Code, is amended by
	amending Subsection (b) and adding Subsection (b-1) to read as
	follows:
	(b)  The board may transfer interests in a permit issued
	under Subsection (a) [this section] to a municipality, river
	authority, other political subdivision, or water supply
	corporation organized under Chapter 67 as otherwise provided by
	law.
	(b-1)  In this subsection, "marine seawater" has the meaning
	assigned by Section 11.1423.  On submission of an application to the
	commission, the commission shall issue without a hearing a permit
	to use the bed and banks of any flowing natural stream in the state
	to convey marine seawater.  The commission shall adopt rules to
	implement a procedure for application for a permit to convey marine
	seawater consistent with this subsection.  A flowing natural stream
	does not include impounded water.  The commission shall provide
	notice and an opportunity for hearing for an application for a
	permit to convey marine seawater into or through a lake, reservoir,
	or other impoundment.
	SECTION 4.  Subchapter D, Chapter 11, Water Code, is amended
	by adding Section 11.1423 to read as follows:
	Sec. 11.1423.  PERMIT EXEMPTION FOR USE BY WATER SUPPLY
	ENTITY OF MARINE SEAWATER. (a)  In this section:
	(1)  "Marine seawater" means water that contains a
	total dissolved solids concentration based on a yearly average of
	samples taken at the water source of more than 10,000 milligrams per
	liter that is derived from the Gulf of Mexico or an adjacent bay,
	estuary, or arm of the Gulf of Mexico.
	(2)  "Water supply entity" includes:
	(A)  a retail public utility as defined by Section
	13.002;
	(B)  a wholesale water supplier; or
	(C)  an irrigation district operating under
	Chapter 58.
	(b)  Without obtaining a permit, a water supply entity may
	use for any beneficial purpose state water that consists of marine
	seawater.
	(c)  A water supply entity must treat marine seawater so that
	it meets the water quality level of the receiving stream before the
	entity may put the water into a stream under an authorization
	granted under Section 11.042.
	(d)  This section does not prohibit a water supply entity
	from conveying water under this section in any other manner
	authorized by law, including through the use of facilities owned or
	operated by the state if authorized by the state.
	SECTION 5.  Section 16.053(e)(5), Water Code, is amended by
	adding Subsection (J) as follows:
	(J)  opportunities for and the benefits of developing
	large-scale desalination facilities for marine seawater that serve
	local or regional entities or;
	SECTION 6.  Section 16.060, Water Code, is repealed.
	SECTION 7.  Subtitle C, Title 2, Water Code, is amended by
	adding Chapter 14 to read as follows:
	CHAPTER 14.  MARINE SEAWATER DESALINATION PROJECTS AND INTEGRATED
	MARINE SEAWATER DESALINATION AND POWER PROJECTS
	SUBCHAPTER A.  GENERAL PROVISIONS
	Sec. 14.001.  DEFINITIONS. In this chapter:
	(1)  "Board" means the Texas Water Development Board.
	(2)  "Commission" means the Texas Commission on
	Environmental Quality.
	(3)  "ERCOT" means the Electric Reliability Council of
	Texas.
	(4)  "GLO" means the General Land Office.
	(5)  "Political subdivision" means a city or county or
	other body politic or corporate of the state, including any
	district or authority created under Article III, Section 52, or
	Article XVI, Section 59, of the Texas Constitution.
	(6)  "Project" means any project to produce water
	supplies from marine seawater desalination, any integrated marine
	seawater desalination and power project, and any facilities for the
	storage, conveyance, and delivery of water.
	(7)  "PUC" means the Public Utility Commission.
	(8)  "School Land Board" means the Texas School Land
	Board.
	(9)  "TPWD" means the Texas Parks and Wildlife
	Department.
	SUBCHAPTER B.  POWERS AND DUTIES
	Sec. 14.021  POWERS AND DUTIES OF THE BOARD. The commission
	has general jurisdiction over the state financial assistance of
	projects to produce water supplies from marine seawater
	desalination, integrated marine seawater desalination and power
	projects, and facilities for the storage, conveyance, and delivery
	of water.
	Sec. 14.022  POWERS AND DUTIES OF THE COMMISSION. (a)  The
	commission has general jurisdiction over the permitting of projects
	to produce water supplies from marine seawater desalination,
	integrated marine seawater desalination and power projects, and
	facilities for the storage, conveyance, and delivery of water.
	(b)  The commission shall consult with the GLO, the School
	Land Board, the board, the TPWD, the PUC, and ERCOT, over all
	aspects of any project or facilities within the scope of subsection
	(a) that also fall within the general jurisdiction of each of those
	agencies.
	Sec. 14.023  POWERS OF CERTAIN POLITICAL SUBDIVISIONS. A
	political subdivision that has a defined territory extending to the
	Gulf of Mexico may own all or any interest in a project or
	facilities within the scope of subsection (a) of section 14.021,
	and may sell water produced and power generated from such project.
	SUBCHAPTER C.  RIGHTS AND AUTHORIZATIONS
	Sec. 14.031  GRANT OF WATER RIGHT TO CERTAIN POLITICAL
	SUBDIVISIONS. (a)  The political subdivision is hereby granted the
	right to divert marine seawater from the Gulf of Mexico at one or
	more points of diversion along the Texas coast, to desalinate such
	water and supply and use the desalinated water within the state for
	all beneficial uses, and to return the concentrated saline water
	resulting from the desalination process to the Gulf of Mexico at one
	or more points of return.
	(b)  The political subdivision is also granted the right to
	use marine seawater diverted from the Gulf of Mexico via a
	desalination project's intake facilities for power plant cooling or
	any other beneficial use before the marine seawater is desalinated,
	and then to either desalinate the unconsumed marine seawater or
	return the unconsumed marine seawater to the Gulf of Mexico via the
	project's return facilities.
	(c)  There are no limitations on the number of points of
	diversion or the rate of diversion at any point of diversion.  There
	are no limitations on the number of points of return or the rate of
	return.
	(d)  The political subdivision may assign the rights granted
	to it under this section to any project to produce water supplies
	from marine seawater desalination or any integrated marine seawater
	desalination and power project, or to the owner(s) or operator(s)
	of such project.
	Sec. 14.032  APPROVALS OF GLO AND SCHOOL LAND BOARD
	REQUIRED. Before construction of any intake or return facilities
	may commence, the political subdivision first must obtain the GLO's
	and the School Land Board's approvals of the locations of the points
	of intake and return and plans and specifications for facilities
	located on state lands.  The GLO's and School Land Board's review
	and approval processes are not subject to the requirements relating
	to a contested case hearing under any statute or rule including,
	without limitation, the provisions of this chapter or other chapter
	of the Water Code, Chapter 33, Natural Resources Code, or
	Subchapters C-G, Chapter 2001, Government Code.
	SUBCHAPTER D.  EXPEDITED AND STREAMLINED PERMITTING
	Sec. 14.041  DIRECTION TO PERMITTING AUTHORITIES  (a)  This
	section applies to all applications for permits or other
	authorizations, and all applications or requests for contracts,
	leases, easements, or grants of interests in property, needed from
	any state or local governmental authority for any project and
	facilities within the scope of subsection (a) of section 14.021.
	Such applications and requests include, but are not limited to, all
	applications to the TCEQ for permits or authorizations to discharge
	under Chapter 26, Water Code, all applications to the TCEQ for
	permits or authorizations under the Texas Clean Air Act, Chapter
	382, Health and Safety Code, and all applications to the School Land
	Board to acquire rights in coastal public land under Chapter 33,
	Natural Resources Code.
	(b)  All governmental authorities are directed to expedite
	and streamline to the extent possible the processing of and action
	on all applications and requests.
	(c)  A governmental authority's processing of and action on
	any application for a permit or other authorization or any
	application or request for a contract, lease, easement, or grant of
	interest in property shall not be subject to the requirements
	relating to a contested case hearing under any statute or rule
	including, without limitation, the provisions of this chapter or
	other chapter of the Water Code, Chapter 33, Natural Resources
	Code, or Subchapters C-G, Chapter 2001, Government Code.
	SECTION 8.  Section 341.001, Health and Safety Code, is
	amended by adding Subdivisions (1-a) and (2-a) to read as follows:
	(1-a)  "Desalination facility" means a facility
	used for the treatment of brackish water or marine seawater to
	remove dissolved mineral salts and other dissolved solids; and
	(2-a)  "Marine seawater" means water that
	contains a total dissolved solids concentration based on a yearly
	average of samples taken at the water source of more than 10,000
	milligrams per liter that is derived from the Gulf of Mexico or an
	adjacent bay, estuary, or arm of the Gulf of Mexico.
	SECTION 9.  Subchapter C, Chapter 341, Health and Safety
	Code, is amended by adding Section 341.0359 to read as follows:
	Sec. 341.0359.  DESALINATION OF WATER FOR DRINKING WATER.
	(a)  This section applies only to a desalination facility that is
	intended to produce 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 unless the commission approves in writing the plans and
	specifications for the facility.
	(d)  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 in writing a report containing:
	(1)  a computer model acceptable to the commission;
	(2)  a pilot study with a minimum 40-day run duration
	without treatment intervention to meet federal and state safe
	drinking water standards;
	(3)  data from a similar system installed at another
	desalination facility that treats source water of a similar or
	lower quality; or
	(4)  a full-scale verification protocol with a minimum
	40-day run duration without treatment intervention to meet federal
	and state safe drinking water standards.
	(e)  If a full-scale verification protocol report is
	approved, a person may not send water to a public water distribution
	system without a full-scale verification study:
	(1)  completed after construction; and
	(2)  approved by the commission.
	(f)  Not later than the 100th day after the date the
	commission receives the report for a proposed desalination
	facility, the commission shall review the report and issue an
	exception response letter that may contain conditions for approval.
	(g)  Not later than the 60th day after the date the
	commission receives the plans and specifications for a proposed
	desalination facility, the commission shall review the plans and
	specifications and issue a response letter that may contain
	conditions for approval.
	(h)  A person violates this section if the person fails to
	meet a condition for approval in a letter issued to the person under
	Subsection (f) or (g).
	SECTION 10.  EFFECTIVE DATE OF THIS ACT. 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.