88R20894 KBB-F     By: Murr H.B. No. 4256       A BILL TO BE ENTITLED   AN ACT   relating to the establishment of a grant program to plug leaking   water wells in certain counties; making an appropriation.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Chapter 28, Water Code, is amended by adding   Subchapter E to read as follows:   SUBCHAPTER E.  LEAKING WATER WELLS GRANT PROGRAM          Sec. 28.101.  DEFINITIONS. In this subchapter:                 (1)  "District" means a district or authority created   under Section 52, Article III, or Section 59, Article XVI, Texas   Constitution, that has the authority to regulate the spacing of   water wells, the production of water wells, or both.                 (2)  "Fund" means the leaking water wells fund created   under Section 28.103.                 (3)  "Program" means the leaking water wells program   established under Section 28.104.          Sec. 28.102.  APPLICABILITY OF SUBCHAPTER. This subchapter   applies only to a district in a county that:                 (1)  has a population of 16,000 or less; and                 (2)  is adjacent to at least seven counties with   populations of less than 15,000.           Sec. 28.103.  LEAKING WATER WELLS FUND. (a) The leaking   water wells fund is created as a fund in the state treasury outside   the general revenue fund.           (b)  The fund consists of:                 (1)  money appropriated, credited, or transferred to   the fund by the legislature;                (2)  gifts or grants contributed to the fund; and                 (3)  interest earned on deposits and investments of the   fund.           (c)  Interest earned on money deposited to the credit of the   fund is exempt from Section 404.071, Government Code. Interest   earned on money in the fund shall be retained in the fund.          (d)  The fund may be used only to implement the program   established under Section 28.104, including the costs of program   administration and operation.           Sec. 28.104.  LEAKING WATER WELLS PROGRAM. The commission   shall establish and administer the leaking water wells program to   plug leaking water wells. Under the program, the commission shall   provide grants to districts for eligible projects to offset the   cost of plugging leaking water wells.           Sec. 28.105.  APPLICATION FOR GRANT. (a) A district may   apply for and receive a grant for an eligible project under the   program.          (b)  An application for a grant under this subchapter must be   made on a form provided by the commission and must contain the   information required by the commission.          Sec. 28.106.  ELIGIBILITY OF PROJECTS FOR GRANTS;   PRIORITIZATION. (a) To be eligible for a grant for a project, a   district must:                 (1)  demonstrate that the project includes a leaking   water well:                      (A)  that:                             (i)  is located within 2,000 feet of a   drinking water well, a water well for livestock or irrigation, or a   sensitive wildlife area; or                             (ii)  has seasonal or annual flow to the   surface, or a hydrological connection to surface water, including a   waterway, intermittent stream, or springs system; and                      (B)  of which:                            (i)  the plug, casing, completion interval,   or general integrity is known by the district to be deficient; or                             (ii)  the completion interval is   sufficiently proximate to other known intervals or pressurized   zones with high concentrations of salinity, chlorides, sulfides, or   other hazardous or toxic components;                 (2)  obtain any necessary approval from a surface owner   for access to the property where the leaking water well is located;   and                 (3)  as necessary and subject to Subsection (b), engage   in a bid process to select and hire a contractor or subcontractor to   perform the work.           (b)  Notwithstanding any other law, a contract for work on a   project for which a grant is provided under the program:                (1)  must be awarded to a contractor or subcontractor   selected from a list of approved well pluggers maintained by the   Railroad Commission of Texas; and                (2)  may be awarded to the contractor or subcontractor   whose bid or proposal the recipient of the grant determines   provides the best value for the recipient based on the selection   criteria published by the recipient.          (c)  The commission by rule shall establish criteria for   prioritizing projects eligible to receive a grant under the   program.          Sec. 28.107.  RESTRICTION ON USE OF GRANT. (a) A recipient   of a grant provided under the program may use the grant only to pay   the cost of the project for which the grant is provided. A recipient   may not use the grant to pay administrative costs associated with   the project.          (b)  A leaking water well plugged under the program must be   permanently plugged. The commission, in consultation with the   Railroad Commission of Texas, shall establish criteria for ensuring   that a well is permanently plugged.          (c)  The amount of a grant provided under the program that is   not spent for the completion of a project must be returned to the   commission for deposit to the credit of the fund.          SECTION 2.  The amount of $40 million is appropriated from   the general revenue fund to the comptroller of public accounts for   the purpose of transferring that amount immediately to the credit   of the leaking water wells fund, as created by this Act.          SECTION 3.  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, 2023.