By: Landgraf H.B. No. 3884       A BILL TO BE ENTITLED   AN ACT   relating to the regulation and management of produced water from   oil and gas operations.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Section 91.101(a), Natural Resources 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 to read as   follows:          (a)  To prevent pollution of surface water or subsurface   water in the state, the commission shall adopt and enforce rules and   orders and may issue permits relating to:                (1)  the drilling of exploratory wells and oil and gas   wells or any purpose in connection with them;                (2)  the production of oil and gas, 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   commission;                      (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;                (3)  the operation, abandonment, and proper plugging of   wells subject to the jurisdiction of the commission; [and]                (4)  the discharge, storage, handling, transportation,   reclamation, or disposal of oil and gas waste as defined in Section   91.1011 of this subchapter, or of any other substance or material   associated with any operation or activity regulated by the   commission under Subdivisions (1), (2), and (3) of this subsection;   and                (5)  the recycling and beneficial use of produced water   associated with any operation or activity regulated by the   commission under Subdivisions (1), (2), and (3) of this subsection,   taking into account the need to protect the public health and the   environment.          SECTION 2.  Section 91.101, Natural Resources Code, as   effective on 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 to read as   follows:          Sec. 91.101.  RULES AND ORDERS. To prevent pollution of   surface water or subsurface water in the state, the commission   shall adopt and enforce rules and orders and may issue permits   relating to:                (1)  the drilling of exploratory wells and oil and gas   wells or any purpose in connection with them;                (2)  the production of oil and gas, 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   commission;                      (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;                (3)  the operation, abandonment, and proper plugging of   wells subject to the jurisdiction of the commission; [and]                (4)  the discharge, storage, handling, transportation,   reclamation, or disposal of oil and gas waste as defined in Section   91.1011 of this subchapter, or of any other substance or material   associated with any operation or activity regulated by the   commission under Subdivisions (1), (2), and (3) of this section;   and                (5)  the recycling and beneficial use of produced water   associated with any operation or activity regulated by the   commission under Subdivisions (1), (2), and (3) of this section,   taking into account the need to protect the public health and the   environment.          SECTION 3.  Subtitle D, Title 3, Natural Resources Code, is   amended by adding Chapter 122A to read as follows:   CHAPTER 122A. BENEFICIAL USE OF PRODUCED WATER          Sec. 122A.0101.  BENEFICIAL USE. For the purposes of this   chapter, a beneficial use of produced water means irrigation, a   discharge approved under a permit issued by the Texas Commission on   Environmental Quality under Chapter 26, Water Code, or another   beneficial use approved under a permit issued by the Railroad   Commission of Texas under Chapter 91.          SECTION 4.  Section 26.131(d), 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 to read as follows:          (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.  The commission shall provide to an applicant for   a permit described by this subsection for the discharge of produced   water assistance with the preparation and submission of the permit   application.          SECTION 5.  Section 26.131(c), Water Code, as effective on   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 to read as follows:          (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.  The commission shall provide to an applicant for   a permit described by this subsection for the discharge of produced   water assistance with the preparation and submission of the permit   application.          SECTION 6.  The change in law made by this Act does not   affect tax liability accruing before the effective date of this   Act.  That liability continues in effect as if this Act had not been   enacted, and the former law is continued in effect for the   collection of taxes due and for civil and criminal enforcement of   the liability for those taxes.          SECTION 7.  This Act takes effect September 1, 2023.