Bill Text: TX SB601 | 2021-2022 | 87th Legislature | Comm Sub


Bill Title: Relating to the creation and activities of the Texas Produced Water Consortium.

Spectrum: Partisan Bill (Republican 4-0)

Status: (Engrossed) 2021-05-17 - Placed on General State Calendar [SB601 Detail]

Download: Texas-2021-SB601-Comm_Sub.html
  87R18357 SLB-D
 
  By: Perry, et al. S.B. No. 601
 
  (Burrows)
 
  Substitute the following for S.B. No. 601:  No.
 
 
 
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)  "Agency advisory council" means the agency
  advisory council created under Section 109.202.
               (2)  "Consortium" means the Texas Produced Water
  Consortium.
               (3)  "Fluid oil and gas waste" has the meaning assigned
  by Section 122.001, Natural Resources Code.
               (4)  "Host university" means Texas Tech University.
               (5)  "Private entity" means an individual,
  corporation, or nonprofit corporation.
               (6)  "Stakeholder advisory council" means the
  stakeholder advisory council created under Section 109.202.
               (7)  "Technical and economic steering committee" means
  the technical and economic steering committee created under Section
  109.202.
         Sec. 109.202.  TEXAS PRODUCED WATER CONSORTIUM. The Texas
  Produced Water Consortium is a consortium consisting of the host
  university, the agency advisory council, the stakeholder advisory
  council, the technical and economic steering committee, and private
  entities.  The consortium is created to bring together information
  resources to study the economics of and technology related to, and
  the environmental and public health considerations for, beneficial
  uses of fluid oil and gas waste.
         Sec. 109.203.  ADMINISTRATION. (a)  The agency advisory
  council is composed of representatives of the:
               (1)  Department of Agriculture;
               (2)  General Land Office;
               (3)  Parks and Wildlife Department;
               (4)  Railroad Commission of Texas;
               (5)  State Energy Conservation Office;
               (6)  Texas Commission on Environmental Quality;
               (7)  Texas Economic Development and Tourism Office
  within the office of the governor; and
               (8)  Texas Water Development Board.
         (b)  Each entity described by Subsection (a) shall select a
  representative to serve on the agency advisory council.
         (c)  The agency advisory council shall meet as often as
  necessary to ensure the consortium meets the requirements of this
  subchapter.
         (d)  The agency advisory council shall advise the consortium
  on matters related to the subject matter expertise of the agencies
  represented, including matters related to the regulation and
  permitting of and treatment standards for fluid oil and gas waste.
  Treatment standards may include a fit for purpose requirement and
  regulations necessary for the protection of public health and the
  environment.
         (e)  The stakeholder advisory council is composed of
  representatives of:
               (1)  the oil and gas industry;
               (2)  agricultural water users;
               (3)  industrial water users;
               (4)  environmental interests;
               (5)  fluid oil and gas waste recycling operators;
               (6)  public water utilities;
               (7)  landowners or owners of groundwater rights;
               (8)  commercial water recyclers and midstream water
  companies; and
               (9)  other appropriate interests or industries.
         (f)  The host university shall appoint members to the
  stakeholder advisory council from members of the consortium. If no
  member of the consortium represents an interest or industry
  described by Subsection (e), the host university may appoint a
  person to represent the interest or industry from outside the
  consortium.
         (g)  The stakeholder advisory council shall advise the
  consortium on matters related to research, investigation, and
  contract development.
         (h)  The technical and economic steering committee is
  composed of members appointed by the host university to provide
  technical, economic, and scientific expertise. The technical and
  economic steering committee shall determine the feasibility of
  proposals for research or investigation by the consortium and
  decide which proposals the consortium will accept for research or
  investigation.
         Sec. 109.204.  DUTIES. (a)  The consortium shall study the
  economic, environmental, and public health considerations of
  beneficial uses of fluid oil and gas waste and technology needed for
  those uses.  After October 1, 2022:
               (1)  the research and investigation goals of the
  consortium shall be directed by the members of the consortium; and
               (2)  the host university may disband the consortium if
  the host university determines that the consortium does not have
  sufficient membership.
         (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 laws and administrative rules
  to better enable beneficial uses of fluid oil and gas waste,
  including specific changes designed to find and define beneficial
  uses for fluid oil and gas waste outside of the oil and gas
  industry;
               (2)  suggested guidance for establishing fluid oil and
  gas waste permitting and testing standards;
               (3)  a technologically and economically feasible pilot
  project for state participation in a facility designed and operated
  to recycle fluid oil and gas waste; and
               (4)  an economic model for using fluid oil and gas waste
  in a way that is economical and efficient and that protects public
  health and the environment.
         (b)  The host university shall:
               (1)  provide staff and other resources necessary for
  the consortium to meet the requirements of this subchapter;
               (2)  consult with the New Mexico Produced Water
  Research Consortium and that consortium's Government Advisory
  Board on research, data, and any other matter related to the
  consortium; and
               (3)  solicit participation from:
                     (A)  the oil and gas industry;
                     (B)  agricultural water users;
                     (C)  industrial water users;
                     (D)  environmental interests;
                     (E)  fluid oil and gas waste recycling operators;
                     (F)  commercial water recyclers and midstream
  water companies;
                     (G)  landowners;
                     (H)  owners of groundwater rights;
                     (I)  public water utilities; and
                     (J)  river authorities subject to Section
  325.025, Government Code.
         (c)  The host university shall 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 agency advisory council and
  the host university shall collaborate to create a fee structure
  that establishes membership costs at various levels for private
  entities that may contribute money to the consortium for research
  and investigation.  Membership costs may include contributions of
  equipment or other resources in lieu of money.
         (b)  Money paid by private entities as membership costs 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 and
  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 its duties
  under this subchapter.
         Sec. 109.206.  ACCESS TO DATA. (a)  In exchange for
  membership in 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 membership.
         (b)  A private entity's access to the consortium's
  investigation data must be governed by a membership contract
  between the host university and the entity that describes the data
  to be released to the private entity.
         (c)  The consortium shall make information about the work of
  the consortium available to the public on an Internet website
  maintained by the host university.  Information made available
  under this subsection may not be privileged, proprietary, or
  confidential.
         SECTION 2.  (a) Not later than October 1, 2021, each state
  agency described by Section 109.203(a), Education Code, as added by
  this Act, shall select a representative to serve on the agency
  advisory council 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, 2022, the Texas Produced
  Water Consortium shall create a pilot project required by Section
  109.204(a-1)(3), Education Code, as added by this Act.
         SECTION 3.  The Texas Produced Water Consortium, as created
  by Subchapter E, Chapter 109, Education Code, as added by this Act,
  is required to implement a provision of this Act only if the
  legislature appropriates money specifically for that purpose. If
  the legislature does not appropriate money specifically for that
  purpose, the consortium may, but is not required to, implement a
  provision of this Act using other appropriations available for that
  purpose.
         SECTION 4.  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, 2021.
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