H.B. No. 2377         AN ACT   relating to the development of brackish groundwater.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Subchapter D, Chapter 36, Water Code, is amended   by adding Section 36.1015 to read as follows:          Sec. 36.1015.  RULES FOR PERMITS IN BRACKISH GROUNDWATER   PRODUCTION ZONES. (a)  In this section:                (1)  "Designated brackish groundwater production zone"    means an aquifer, subdivision of an aquifer, or geologic stratum   designated under Section 16.060(b)(5).                (2)  "Development board" means the Texas Water   Development Board.                (3)  "Gulf Coast Aquifer" means the system of   hydrogeologic units that run along the Gulf Coast from the Sabine   River to the Rio Grande, including:                      (A)  the Catahoula confining system, including   the Frio Formation, the Anahuac Formation, and the Catahoula Tuff   or Sandstone;                      (B)  the Jasper Aquifer, including the Oakville   Sandstone and Fleming Formation;                      (C)  the Burkeville confining system separating   the Jasper Aquifer from the Evangeline Aquifer;                      (D)  the Evangeline Aquifer, including the Goliad   Sand; and                      (E)  the Chicot Aquifer, including the Willis   Sand, the Bentley and Montgomery Formations, the Beaumont Clay, and   alluvial deposits at the surface.          (b)  A district located over any part of a designated   brackish groundwater production zone may adopt rules to govern the   issuance of permits for the completion and operation of a well for   the withdrawal of brackish groundwater from a designated brackish   groundwater production zone and shall adopt rules described by this   subsection if the district receives a petition from a person with a   legally defined interest in groundwater in the district. The   district must adopt the rules not later than the 180th day after the   date the district receives the petition. Rules adopted under this   subsection apply only to a permit for a project described by   Subsection (c).          (c)  A person may obtain a permit under rules adopted under   this section for the following projects:                (1)  a municipal project designed to treat brackish   groundwater to drinking water standards for the purpose of   providing a public source of drinking water; and                (2)  an electric generation project to treat brackish   groundwater to water quality standards sufficient for the project   needs.          (d)  The rules adopted must:                (1)  provide for processing an application for a   brackish groundwater production zone operating permit in the same   manner as an application for an operating permit for a fresh   groundwater well, except as provided by this section;                (2)  allow withdrawals and rates of withdrawal of   brackish groundwater from a designated brackish groundwater   production zone not to exceed and consistent with the withdrawal   amounts identified in Section 16.060(e);                (3)  provide for a minimum term of 30 years for a permit   issued for a well that produces brackish groundwater from a   designated brackish groundwater production zone;                (4)  require implementation of a monitoring system   recommended by the development board to monitor water levels and   water quality in the same or an adjacent aquifer, subdivision of an   aquifer, or geologic stratum in which the designated brackish   groundwater production zone is located;                (5)  for a project located in a designated brackish   groundwater production zone in the Gulf Coast Aquifer, require   reasonable monitoring by the district of land elevations to   determine if production from the project is causing or is likely to   cause subsidence during the permit term;                (6)  require from the holder of a permit issued under   rules adopted under this section annual reports that must include:                      (A)  the amount of brackish groundwater   withdrawn;                      (B)  the average monthly water quality of the   brackish groundwater withdrawn and in the monitoring wells; and                      (C)  aquifer levels in both the designated   brackish groundwater production zone and in any aquifer,   subdivision of an aquifer, or geologic stratum for which the permit   requires monitoring; and                (7)  be consistent with and not impair property rights   described by Sections 36.002(a) and (b).          (e)  An application for a brackish groundwater production   zone operating permit must include:                (1)  the proposed well field design compared to the   designated brackish groundwater production zone;                (2)  the requested maximum groundwater withdrawal rate   for the proposed project;                (3)  the number and location of monitoring wells needed   to determine the effects of the proposed project on water levels and   water quality in the same or an adjacent aquifer, subdivision of an   aquifer, or geologic stratum in which the designated brackish   groundwater production zone is located; and                (4)  a report that includes:                      (A)  a simulation of the projected effects of the   proposed production on water levels and water quality in the same or   an adjacent aquifer, subdivision of an aquifer, or geologic stratum   in which the designated brackish groundwater production zone is   located;                      (B)  a description of the model used for the   simulation described by Paragraph (A); and                      (C)  sufficient information for a technical   reviewer to understand the parameters and assumptions used in the   model described by Paragraph (B).          (f)  The district shall submit the application to the   development board and the development board shall conduct a   technical review of the application. The development board shall   submit a report of the review of the application that includes:                (1)  findings regarding the compatibility of the   proposed well field design with the designated brackish groundwater   production zone; and                (2)  recommendations for the monitoring system   described by Subsection (d)(4).          (g)  The district may not schedule a hearing on the   application until the district receives the report from the   development board described by Subsection (f).          (h)  The district shall provide the reports required under   Subsection (d)(6) to the development board. Not later than the   120th day after the date the development board receives a request   from the district, the development board shall investigate and   issue a report on whether brackish groundwater production under the   project that is the subject of the report from the designated   brackish groundwater production zone is projected to cause:                (1)  significant aquifer level declines in the same or   an adjacent aquifer, subdivision of an aquifer, or geologic stratum   that were not anticipated by the development board in the   designation of the zone;                (2)  negative effects on quality of water in an   aquifer, subdivision of an aquifer, or geologic stratum; or                (3)  for a project located in a designated brackish   groundwater production zone in the Gulf Coast Aquifer, subsidence   during the permit term.          (i)  After receiving from the development board a report   issued under Subsection (h) and after notice and hearing subject to   Subchapter M, the district may:                (1)  amend the applicable permit to establish a   production limit necessary to mitigate any negative effects   identified by the report;                (2)  approve a mitigation plan that alleviates any   negative effects identified by the report; or                (3)  both amend the permit to establish a production   limit and approve a mitigation plan.          SECTION 2.  Section 36.1132, Water Code, is amended by   adding Subsection (d) to read as follows:          (d)  Production under a permit issued under Section 36.1015   to produce brackish groundwater from a designated brackish   groundwater production zone is in addition to the amount of   groundwater that may be produced based on Subsections (b)(1) and   (2).  To the extent possible, a district shall issue permits up to   the point that the total volume of exempt and permitted groundwater   production in a designated brackish groundwater production zone   equals the amount of brackish groundwater that may be produced   annually to achieve the groundwater availability described by the   Texas Water Development Board in its designation of the brackish   groundwater production zone under Section 16.060(e).          SECTION 3.  This Act takes effect September 1, 2017.       ______________________________ ______________________________      President of the Senate Speaker of the House                   I certify that H.B. No. 2377 was passed by the House on May 4,   2017, by the following vote:  Yeas 143, Nays 0, 3 present, not   voting; that the House refused to concur in Senate amendments to   H.B. No. 2377 on May 26, 2017, and requested the appointment of a   conference committee to consider the differences between the two   houses; and that the House adopted the conference committee report   on H.B. No. 2377 on May 28, 2017, by the following vote:  Yeas 144,   Nays 3, 2 present, not voting.     ______________________________   Chief Clerk of the House               I certify that H.B. No. 2377 was passed by the Senate, with   amendments, on May 25, 2017, by the following vote:  Yeas 31, Nays   0; at the request of the House, the Senate appointed a conference   committee to consider the differences between the two houses; and   that the Senate adopted the conference committee report on H.B. No.   2377 on May 28, 2017, by the following vote:  Yeas 30, Nays 0.     ______________________________   Secretary of the Senate      APPROVED: __________________                   Date                       __________________                 Governor