87R7737 SLB-D     By: Burrows H.B. No. 3096       A BILL TO BE ENTITLED   AN ACT   relating to the creation and activities of the Texas Produced Water   Consortium.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Chapter 109, Education Code, is amended by   adding Subchapter E to read as follows:   SUBCHAPTER E. TEXAS PRODUCED WATER CONSORTIUM          Sec. 109.201.  DEFINITIONS. In this subchapter:                (1)  "Board" means the board established by Section   109.203.                (2)  "Consortium" means the Texas Produced Water   Consortium.                (3)  "Host university" means Texas Tech University.                (4)  "Private entity" means an individual,   corporation, or nonprofit corporation.                (5)  "Produced water" means naturally occurring water   that emerges from the ground during the production of oil or gas.          Sec. 109.202.  TEXAS PRODUCED WATER CONSORTIUM. The Texas   Produced Water Consortium is a consortium consisting of the host   university, the board, and private entities.  The consortium is   created to bring together information resources to study the   economics of and technology related to beneficial uses of produced   water.          Sec. 109.203.  ADMINISTRATION. (a)  The consortium is   governed by a board composed of representatives of the:                (1)  Railroad Commission of Texas;                (2)  State Energy Conservation Office;                (3)  Texas Commission on Environmental Quality;                (4)  Texas Economic Development and Tourism Office   within the office of the governor; and                (5)  Texas Water Development Board.          (b)  Each entity described by Subsection (a) shall select a   representative to serve on the board.          (c)  The board shall meet as often as necessary to ensure the   consortium meets the requirements of this subchapter.          Sec. 109.204.  DUTIES. (a)  The consortium shall study the   economics of beneficial uses of produced water and technology   needed for those uses.  After October 1, 2022, the research and   investigation goals of the consortium shall be directed by the   sponsors of the consortium.          (a-1)  This subsection expires October 1, 2022.  Not later   than September 1, 2022, the consortium shall produce a report that   includes:                (1)  suggested changes to law to better enable   beneficial uses of produced water;                (2)  an economically feasible pilot project for state   participation in a produced water facility; and                (3)  an economic model for using produced water in an   economic and efficient way.          (b)  The host university shall:                (1)  provide staff and other resources necessary for   the consortium to meet the requirements of this subchapter; and                (2)  solicit participation from:                      (A)  the oil and gas industry;                      (B)  companies that own or manage the   infrastructure to store produced water and transport that water to   other locations for reuse; and                      (C)  water users, including:                            (i)  agricultural users;                            (ii)  political subdivisions;                            (iii)  universities; and                            (iv)  water utilities.          (c)  The host university may coordinate with other members of   the state university system and state agencies to provide resources   necessary for the consortium to meet the requirements of this   subchapter.          Sec. 109.205.  FUNDING. (a) The board and the host   university shall collaborate to create a fee structure for private   sponsors that establishes fees for various sponsorship levels for   private entities that may contribute money to the consortium for   research and investigation.          (b)  Money paid by private entities as sponsorship fees may   be used only for research and investigation conducted by the   consortium.          (c)  Except for state money appropriated to the host   university for use in meeting the requirements of Section   109.204(a-1), and resources provided by the host university, other   state university system entities, or state agencies, the consortium   may not receive state money.          (d)  The consortium may accept gifts and grants of money,   equipment, or other resources necessary to accomplish the duties of   this subchapter.          Sec. 109.206.  ACCESS TO DATA. (a)  In exchange for   sponsorship of the consortium, a private entity may receive access   to data produced as a result of investigation by the consortium in   an amount proportionate to the entity's level of sponsorship.          (b)  A private entity's access to the consortium's   investigation data must be governed by a sponsorship contract   between the host university and the entity that describes the data   to be released to the private entity.          SECTION 2.  (a) Not later than December 1, 2021, each state   agency described by Section 109.203(a), Education Code, as added by   this Act, shall select a representative for the board of the Texas   Produced Water Consortium, as required by Section 109.203(b),   Education Code, as added by this Act.          (b)  Not later than September 1, 2022, the Texas Produced   Water Consortium shall deliver the report required by Section   109.204(a-1), Education Code, as added by this Act.          (c)  Not later than September 1, 2023, the Texas Produced   Water Consortium shall create the pilot project required by Section   109.204(a-1)(2), Education Code, as added by this Act.          SECTION 3.  This Act takes effect September 1, 2021.