83S10137 SLB-D
	By: Larson	H.B. No. 25

	A BILL TO BE ENTITLED
	AN ACT
	relating to the underground storage of water for later retrieval
	and beneficial use; authorizing the imposition of fees.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
	SECTION 1.  Section 11.002, Water Code, is amended by adding
	Subdivisions (22) and (23) to read as follows:
	(22)  "Aquifer storage and recovery project" means an
	undertaking to facilitate the injection of surface water,
	groundwater, or treated effluent into a suitable aquifer by means
	of a well for later retrieval and beneficial use from that well or
	another well.
	(23)  "Target aquifer" means an aquifer used in an
	aquifer storage and recovery project.
	SECTION 2.  The heading to Section 11.153, Water Code, is
	amended to read as follows:
	Sec. 11.153.  AQUIFER STORAGE AND RECOVERY PROJECTS [FOR
	STORAGE OF APPROPRIATED WATER IN AQUIFERS].
	SECTION 3.  Sections 11.153(a), (b), (c), and (d), Water
	Code, are amended to read as follows:
	(a)  The commission shall expedite [investigate the
	feasibility of storing appropriated water in various types of
	aquifers around the state by encouraging] the issuance of temporary
	or term permits for aquifer [demonstration projects for the]
	storage and recovery projects [of appropriated water for subsequent
	retrieval and beneficial use].  The commission by rule shall allow
	the use of an existing permit for appropriated water that
	authorizes a consumptive use for a project to demonstrate the
	feasibility of an aquifer storage and recovery project.
	(b)  A permit described by Subsection (a) must authorize the
	use of a sufficient quantity of appropriated water to demonstrate
	the feasibility of [be for only the duration of] the aquifer storage
	and recovery [pilot] project for the duration of the project to
	provide the commission [and] the [board further] opportunity to
	evaluate the storage of appropriated water in the target aquifer
	[aquifers for subsequent retrieval and beneficial use].
	(c)  After [At the conclusion of a pilot project,] a permit
	holder has completed the feasibility project described by
	Subsection (a), the permit holder may file an appropriate
	application for a permit or permit amendment to store appropriated
	water in an aquifer storage and recovery project. After
	considering the success of the project and the criteria set out in
	Section 11.154, the commission shall determine whether to issue a
	permit or permit amendment authorizing the continued storage of
	appropriated water in the aquifer.
	(d)  The commission shall [only] issue a final order granting
	a permit or amendment to a permit authorizing the storage of
	appropriated water using an aquifer storage and recovery project
	[in aquifers for subsequent beneficial use] where the aquifer
	storage and recovery project is [completed pilot projects or
	historically demonstrated projects have been] shown to be feasible
	under the criteria provided in Sections 11.154(c) and (d).
	SECTION 4.  Section 11.154, Water Code, is amended to read as
	follows:
	Sec. 11.154.  PERMITS FOR AQUIFER STORAGE AND RECOVERY
	PROJECTS [TO STORE APPROPRIATED WATER IN AQUIFERS]. (a) An
	application filed with the commission [to undertake a project]
	under Section 11.153 for a permit or a permit amendment to authorize
	the storage of appropriated water in an aquifer storage and
	recovery project must include:
	(1)  the information required for an application for a
	permit or permit amendment to appropriate state water;
	(2)  all information required for an application for a
	permit for a Class V injection well without requiring a separate
	hearing or notice; and
	(3)  a map or plat showing the injection facility and
	the aquifer in which the water will be stored.
	(a-1)  Subsection (a)(1) does not apply to an application
	filed under this section if the application is for an amendment to
	an existing permit and:
	(1)  the permit the applicant seeks to amend authorizes
	a consumptive use of the appropriated water; and
	(2)  the requested amendment will not change the point
	of diversion or the rate of diversion authorized under the permit
	the applicant seeks to amend.
	(b)  If the application is for a permit or permit amendment
	to store appropriated water in a groundwater reservoir or a
	subdivision of a groundwater reservoir, as defined by Chapter 36,
	that is under the jurisdiction of a groundwater conservation
	district:
	(1)  the applicant shall:
	(A)  provide a copy of the application to each
	groundwater conservation district that has jurisdiction over the
	reservoir or subdivision;
	(B)  register the permit as provided by Subchapter
	N, Chapter 36, [cooperate] with each district that has jurisdiction
	over the reservoir or subdivision [to ensure compliance with the
	rules of each district]; and
	(C)  [cooperate with each district that has
	jurisdiction over the reservoir or subdivision to develop rules
	regarding the injection, storage, and withdrawal of appropriated
	water stored in the aquifer; and
	[(D)]  comply with the rules governing the
	injection, storage, and withdrawal of appropriated water stored in
	the reservoir or subdivision that are adopted by each district that
	has jurisdiction over the reservoir or subdivision, including a
	rule specifically relating to an aquifer storage and recovery
	project; and
	(2)  the commission shall require that the applicant
	notify the commission when the applicant has registered the permit
	with the district as required by Subdivision (1)(B) [any agreement
	the applicant reaches with a district that has jurisdiction over
	the reservoir or subdivision regarding the terms for the injection,
	storage, and withdrawal of appropriated water be included as a
	condition of the permit or permit amendment].
	(c)  Before issuing [On receipt of an application for] a
	permit or an amendment to an existing permit authorizing the
	storage of appropriated water in an aquifer storage and recovery
	project, the [from an applicant with a completed pilot or
	historically demonstrated project, the commission shall evaluate
	the success of the project for purposes of issuing a final order
	granting a permit or permit amendment authorizing the storage of
	appropriated water incident to a beneficial use. The] commission
	shall consider whether:
	(1)  the introduction of water into the target aquifer
	will alter the physical, chemical, or biological quality of native
	groundwater to a degree that the introduction would:
	(A)  render groundwater produced from the aquifer
	harmful or detrimental to people, animals, vegetation, or property;
	or
	(B)  require treatment of the groundwater to a
	greater extent than the native groundwater requires before being
	applied to that beneficial use;
	(2)  the water stored in the target [receiving] aquifer
	can be successfully retrieved [harvested] from the aquifer for
	beneficial use; and
	(3)  reasonable diligence will be used to protect the
	water stored in the target [receiving] aquifer from unauthorized
	withdrawals to the extent necessary to maximize the permit holder's
	ability to retrieve and beneficially use the stored water without
	experiencing unreasonable loss of appropriated water.
	(d)  In making its evaluation under Subsection (c), the
	commission may consider all relevant facts, including:
	(1)  the location and depth of the target aquifer in
	which the stored water is located;
	(2)  the nature and extent of the surface development
	and activity above the stored water;
	(3)  the permit holder's ability to prevent
	unauthorized withdrawals by contract or the exercise of the power
	of eminent domain;
	(4)  the existence of a groundwater [an underground
	water] conservation district or other governmental entity with
	jurisdiction over the production of water from the target aquifer
	[storing the water] and the district's ability to adopt rules to
	protect [stored] water stored in the aquifer storage and recovery
	project; and
	(5)  the existence of any other political subdivision
	or state agency authorized to regulate the drilling of wells into or
	the production of water from the target aquifer.
	(e)  A permit or a permit amendment that authorizes the
	storage of [to store] appropriated water in a groundwater reservoir
	or subdivision, as defined by Chapter 36, shall provide as a
	condition to the permit or permit amendment that the permit holder
	shall:
	(1)  register the permit holder's injection and
	recovery wells that are used in connection with an aquifer storage
	and recovery project with a groundwater conservation district that
	has jurisdiction over the reservoir or subdivision, if any; and
	(2)  comply with the reporting requirements
	established under Subchapter N, Chapter 36 [each calendar month,
	provide the district, if any, with a written report showing for the
	previous calendar month:
	[(A)     the amount of water injected for storage;
	and
	[(B)  the amount of water recaptured for use].
	SECTION 5.  The heading to Section 11.155, Water Code, is
	amended to read as follows:
	Sec. 11.155.  AQUIFER STORAGE AND RECOVERY [PILOT] PROJECT
	REPORTS.
	SECTION 6.  Section 11.155(b), Water Code, is amended to
	read as follows:
	(b)  The board, as part of the state and regional water
	planning process, shall conduct [make other] studies,
	investigations, and surveys of the aquifers in the state, including
	target aquifers, as it considers necessary to determine the
	feasibility of recommending the occurrence, quantity, quality, and
	availability of other aquifers in which water may be stored and
	subsequently retrieved for beneficial use. [The board shall
	undertake the studies, investigations, and surveys in the following
	order of priority:
	[(1)  the aquifers described in Section 11.153(a);
	[(2)     areas designated by the commission as "priority
	groundwater management areas" under Section 35.008; and
	[(3)     other areas of the state in a priority to be
	determined by the board's ranking of where the greatest need
	exists.]
	SECTION 7.  Section 26.001, Water Code, is amended by adding
	Subdivisions (27) and (28) to read as follows:
	(27)  "Aquifer storage and recovery project" means an
	undertaking to facilitate the injection of surface water,
	groundwater, or treated effluent into a suitable aquifer by means
	of a well for later retrieval and beneficial use from that well or
	another well.
	(28)  "Target aquifer" means an aquifer used in an
	aquifer storage and recovery project.
	SECTION 8.  Sections 26.0271(b) and (c), Water Code, are
	amended to read as follows:
	(b)  In any permit or amendment to a permit issued under this
	chapter, at the request of the applicant the commission may
	authorize a wastewater treatment facility to contribute treated
	domestic wastewater produced by the facility as reclaimed water to
	a reuse water system, or for storage in an aquifer storage and
	recovery project, if the commission has approved the use of
	reclaimed water from the wastewater treatment facility.
	(c)  In any permit or amendment to a permit issued under this
	chapter, at the request of the applicant the commission shall
	authorize, subject to any required approval by the United States
	Environmental Protection Agency, a wastewater treatment facility
	to:
	(1)  contribute reclaimed water into a reuse water
	system operated by the agency; [and]
	(2)  discharge reclaimed water contributed to a reuse
	water system at any outfall for which a discharge from the reuse
	water system is authorized in any permit issued for any wastewater
	treatment facility operated by the agency; or
	(3)  inject the reclaimed water for storage in an
	aquifer storage and recovery project.
	SECTION 9.  Section 26.029(a), Water Code, is amended to
	read as follows:
	(a)  In each permit, the commission shall prescribe the
	conditions on which it is issued, including:
	(1)  the duration of the permit;
	(2)  the location of the point of discharge of the
	waste;
	(3)  the maximum quantity of waste that may be
	discharged under the permit at any time and from time to time;
	(4)  the character and quality of waste that may be
	discharged under the permit; [and]
	(5)  any monitoring and reporting requirements
	prescribed by the commission for the permittee; and
	(6)  the target aquifer into which the treated effluent
	may be injected as a contribution to an aquifer storage and recovery
	project.
	SECTION 10.  Chapter 36, Water Code, is amended by adding
	Subchapter N to read as follows:
	SUBCHAPTER N. AQUIFER STORAGE AND RECOVERY PROJECTS
	Sec. 36.451.  DEFINITIONS.  In this subchapter:
	(1)  "Aquifer storage and recovery project" means an
	undertaking to facilitate the injection of surface water,
	groundwater, or treated effluent into a suitable aquifer by means
	of a well for later retrieval and beneficial use from that well or
	another well.
	(2)  "Target aquifer" means an aquifer used in an
	aquifer storage and recovery project.
	Sec. 36.452.  AQUIFER STORAGE AND RECOVERY PROJECT WELLS.
	(a) A well that is constructed and operated as part of an aquifer
	storage and recovery project is subject to the permitting
	requirements established under Section 11.154.
	(b)  A well that is constructed and operated as part of an
	aquifer storage and recovery project is not subject to:
	(1)  permitting by a district; or
	(2)  rules adopted by a district relating to spacing,
	setback, or production limits.
	Sec. 36.453.  REGISTRATION OF WELLS. (a) A well that is
	constructed and operated as part of an aquifer storage and recovery
	project must be registered with the district.
	(b)  The registration application shall include:
	(1)  the longitude and latitude coordinates of the
	well;
	(2)  the depth at which the deepest point of the well is
	located and the aquifer, groundwater reservoir, or aquifer
	subdivision into which the well penetrates;
	(3)  a designation of the well as a well for injection,
	recovery, or injection and recovery;
	(4)  a copy of the commission's Class V injection well
	authorization, if applicable;
	(5)  a copy of an authorization, if required, to use the
	surface and subsurface of the property to construct and operate an
	aquifer storage and recovery project, including a deed, lease, or
	easement;
	(6)  evidence that each well associated with the
	aquifer storage and recovery project is metered; and
	(7)  a copy of the following, as applicable:
	(A)  a permit authorizing the use of the water to
	be injected into a storage well, if use of that water requires a
	permit;
	(B)  a permit for use of unappropriated water from
	the commission; or
	(C)  a production and operating permit issued by a
	district other than the district in which the well is registered.
	(c)  A district shall register a well that is the subject of
	an application that meets the requirements of Subsection (b).
	Sec. 36.454.  PROTECTION OF RIGHTS TO STORED WATER. (a)
	Except as provided by Subsection (b), a district shall adopt rules
	to protect water stored in an aquifer storage and recovery project
	to the greatest extent practicable.
	(b)  The district is not required to adopt rules to prohibit
	the withdrawal of water stored in an aquifer storage and recovery
	project by the holder of a permit issued by a district from a well
	located outside of the area described in the aquifer storage and
	recovery project well registration.
	(c)  Nothing in this subchapter may be construed as
	authorizing the production of groundwater from an aquifer,
	groundwater reservoir, or subdivision of an aquifer within the
	jurisdiction of a district without a permit issued under this
	chapter.
	(d)  In considering an application for a permit for
	production from a highly productive aquifer, as determined by
	district rule, for purposes of storing the water produced in an
	aquifer storage and recovery project, a district shall consider:
	(1)  the benefits of storing the water in the aquifer
	storage and recovery project; and
	(2)  the ability of the more productive contributing
	aquifer to recover and replace the water stored in the target
	aquifer.
	Sec. 36.455.  REPORTS. (a) A person operating an aquifer
	storage and recovery project shall meter the volume of water
	injected and recovered from each well associated with the project
	at the wellhead and file a monthly report with the district in which
	each well is located. The report must contain the following
	information:
	(1)  the amount of water injected for storage in each
	well located in the district and the source of the injected water;
	and
	(2)  the amount of water recovered from each well
	located in the district.
	(b)  The report required by Subsection (a) must be filed not
	later than the 20th day of each month.
	(c)  A person operating an aquifer storage and recovery
	project shall file an annual report with the district in which each
	well associated with the project is located. The report must
	contain the following information:
	(1)  the cumulative amount of water in storage in the
	project; and
	(2)  a map showing the areal extent of the underground
	movement of the stored water as of the end of the year in which the
	report is prepared.
	(d)  The report required by Subsection (c) must be filed not
	later than January 20 of each year.
	(e)  If water is injected into a well for storage in one
	district and later recovered from a well located in a different
	district, the reports required under this section shall be provided
	to each district in which a well associated with the project is
	located.
	Sec. 36.456.  FEES. (a) Except as provided by Subsections
	(b) and (c), a district may not assess against an aquifer storage
	and recovery project a fee, assessment, or tax.
	(b)  A district may require:
	(1)  the payment of a fee of $100 for each well related
	to an aquifer storage and recovery project that is registered as
	provided by Section 36.453, payable at the time the well is
	registered with the district, except as provided by Subsection (c);
	and
	(2)  the payment of an annual fee not to exceed $5 per
	acre-foot of water injected in an aquifer storage and recovery
	project during the preceding year, which must be submitted with the
	annual report required under Section 36.455(c).
	(c)  The fees collected by a district:
	(1)  under Subsection (b)(1) may not exceed $10,000 for
	a single aquifer storage and recovery project and may only be used
	to compensate the district for the cost of conducting field
	inspections to verify:
	(A)  the location of wells associated with an
	aquifer storage and recovery project; and
	(B)  the installation of meters on each well
	associated with an aquifer storage and recovery project; and
	(2)  under Subsection (b)(2) must be deposited into a
	mitigation account and may be used by the district only to
	compensate a person who meets the requirements prescribed by
	Subsection (d).
	(d)  A district may pay money from a mitigation account to a
	person in an amount equal to the costs incurred by the person to
	repair, rehabilitate, or replace a well if the person presents
	evidence to the district's board of directors that demonstrates to
	a reasonable degree of certainty that the operation of the aquifer
	storage and recovery project resulted in damage to the person's
	well.
	(e)  A district's payment of money under Subsection (d) may
	not be construed as an admission of liability by an aquifer storage
	and recovery project.
	Sec. 36.457.  STORAGE AND RECOVERY. (a) Water in an aquifer
	storage and recovery project may be stored in and recovered from
	multiple aquifers, provided that the storage and recovery is
	accomplished using injection and recovery wells completed in the
	target aquifer. Individual injection and recovery wells may be
	completed only in a single aquifer to prevent cross-contamination
	of aquifers.
	(b)  Water stored in an aquifer storage and recovery project
	is not subject to production limits, cutbacks, or other action by
	the district to reduce production.
	Sec. 36.458.  REGULATION BY DISTRICT. An aquifer storage
	and recovery project, and the water stored in a project, is not
	subject to any provision or requirement of this chapter related to
	the desired future conditions or modeled available groundwater
	adopted by the district or the applicable groundwater management
	area.
	Sec. 36.459.  ADMINISTRATION. The executive administrator
	shall develop for adoption by the Texas Water Development Board or
	any successor agency model rules for the administration of aquifer
	storage and recovery projects for districts not later than December
	31, 2013. The model rules, once adopted, are applicable to all
	districts in the state and must be adopted by each district on or
	before the 60th day following the date of adoption by the Texas
	Water Development Board.
	Sec. 36.460.  WASTEWATER USAGE. Under a permit issued under
	Chapter 26, treated wastewater effluent may be stored in an aquifer
	storage and recovery project.
	Sec. 36.461.  STATE FUNDING. An aquifer storage and
	recovery project is eligible for state funding in the form of loans
	and grants from any available fund or revenue source used to fund
	projects included in the state water plan.
	SECTION 11.  Sections 11.153(e) and 11.155(a), Water Code,
	are repealed.
	SECTION 12.  This Act takes effect on the 91st day after the
	last day of the legislative session.