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          A BILL TO BE ENTITLED
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          AN ACT
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        relating to research, development and utilization of brackish  | 
      
      
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        groundwater resources. | 
      
      
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               BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | 
      
      
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               SECTION 1.  Section 16.060, Water Code, is amended to read as  | 
      
      
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        follows: | 
      
      
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               Sec. 16.060.  DESALINATION STUDIES AND RESEARCH.  (a)  The  | 
      
      
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        board shall undertake or participate in research, feasibility and  | 
      
      
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        facility planning studies, investigations, and surveys [as it 
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          considers necessary] to further the development of cost-effective  | 
      
      
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        water supplies from water [seawater] desalination in the state. | 
      
      
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               (b)  The board shall prepare a biennial progress report on  | 
      
      
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        the implementation of water [seawater] desalination activities in  | 
      
      
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        the state and shall submit it to the governor, lieutenant governor,  | 
      
      
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        and speaker of the house of representatives not later than December  | 
      
      
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        1 of each even-numbered year. The report shall include: | 
      
      
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                     (1)  results of the board's studies and activities  | 
      
      
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        relative to [seawater] water desalination during the preceding  | 
      
      
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        biennium; | 
      
      
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                     (2)  identification and evaluation of research,  | 
      
      
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        regulatory, technical, and financial impediments to the  | 
      
      
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        implementation of [seawater] water desalination projects; | 
      
      
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                     (3)  evaluation of the role the state should play in  | 
      
      
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        furthering the development of large-scale [seawater] water  | 
      
      
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        desalination projects in the state; [and] | 
      
      
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                     (4)  the anticipated appropriation from general  | 
      
      
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        revenues necessary to continue investigating water desalination  | 
      
      
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        activities in the state during the next biennium; | 
      
      
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                     (5)  identification of brackish groundwater management  | 
      
      
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        zones with moderate to high availability and productivity of  | 
      
      
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        brackish water that can be used to reduce reliance on fresh  | 
      
      
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        groundwater and that: | 
      
      
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                           (A)  are separated by hydrogeologic barriers  | 
      
      
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        sufficient to prevent adverse impacts to water availability or  | 
      
      
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        water quality in other aquifers, subdivisions of aquifers, or  | 
      
      
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        geologic strata; | 
      
      
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                           (B)  are not part of an aquifer management unit  | 
      
      
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        for which a desired future condition has been established; | 
      
      
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                           (C)  are not, at the time of designation as a  | 
      
      
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        brackish groundwater management zone, serving as a primary water  | 
      
      
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        supply for any purpose other than supplying a desalination project; | 
      
      
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                           (D)  production from which will not result in  | 
      
      
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        subsidence; and | 
      
      
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                           (E)  are not located: | 
      
      
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                                 (i)  within the boundaries of the  | 
      
      
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        Harris-Galveston Subsidence District or the Fort Bend Subsidence  | 
      
      
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        District; or | 
      
      
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                                 (ii)  in the Edwards Aquifer and within the  | 
      
      
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        boundaries of the Edwards Aquifer Authority; and | 
      
      
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                     (6)  information regarding state participation in  | 
      
      
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        public-private partnerships to advance research efforts, implement  | 
      
      
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        pilot projects, and develop new technologies related to: | 
      
      
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                           (A)  water transport; | 
      
      
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                           (B)  brine disposal; | 
      
      
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                           (C)  pretreatment of water for desalination; and | 
      
      
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                           (D)  innovative concentrate management  | 
      
      
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        strategies. | 
      
      
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               (c)  The board shall actively pursue federal sources of  | 
      
      
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        funding for desalination projects in the state. | 
      
      
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               (d)  The board shall coordinate with groundwater  | 
      
      
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        conservation districts and stakeholders and shall consider the  | 
      
      
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        Brackish Groundwater Manual for Texas Regional Water Planning  | 
      
      
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        Groups, and any updates to the manual, and other relevant  | 
      
      
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        scientific data or findings when identifying brackish groundwater  | 
      
      
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        management zones under Subsection (b)(5). | 
      
      
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               SECTION 2.  Subchapter D, Chapter 36, Water Code, is amended  | 
      
      
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        by adding Sections 36.1012 and 36.1013 to read as follows: | 
      
      
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               Sec. 36.1012.  PETITION FOR DESIGNATION OF A BRACKISH  | 
      
      
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        GROUNDWATER MANAGEMENT ZONE.  (a)  A person with a legally defined  | 
      
      
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        interest in groundwater in a district may petition that district to  | 
      
      
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        establish a brackish groundwater management zone within the  | 
      
      
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        district by following the procedures in this section.  A "brackish  | 
      
      
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        groundwater management zone" means an aquifer, subdivision of an  | 
      
      
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        aquifer, or geologic stratum that: | 
      
      
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                     (1)  is separated by hydrogeologic barriers sufficient  | 
      
      
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        to prevent adverse impacts to water availability or water quality  | 
      
      
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        in other aquifers, subdivisions of aquifers, or geologic strata; | 
      
      
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                     (2)  is not part of an aquifer management unit for which  | 
      
      
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        a desired future condition has been established; | 
      
      
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                     (3)  is not, at the time of designation as a brackish  | 
      
      
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        groundwater management zone, serving as a primary water supply for  | 
      
      
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        any purpose other than supplying a desalination project; | 
      
      
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                     (4)  production from which will not result in  | 
      
      
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        subsidence; and | 
      
      
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                     (5)  is not located: | 
      
      
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                           (A)  within the boundaries of the  | 
      
      
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        Harris-Galveston Subsidence District or the Fort Bend Subsidence  | 
      
      
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        District; or | 
      
      
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                           (B)  in the Edwards Aquifer and within the  | 
      
      
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        boundaries of the Edwards Aquifer Authority. | 
      
      
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               (b)  The district shall review the petition and either deem  | 
      
      
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        it to be administratively complete or return it with an explanation  | 
      
      
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        of how the petition is deficient. | 
      
      
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               (c)  Upon request from the petitioner or on its own motion,  | 
      
      
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        the district may forward an administratively complete petition to  | 
      
      
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        the Texas Water Development Board for review, along with a copy of  | 
      
      
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        the relevant district rules and any other information the district  | 
      
      
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        deems relevant to review of the petition. | 
      
      
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               (d)  If requested, Texas Water Development Board shall  | 
      
      
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        perform a technical review of the petition to determine: | 
      
      
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                     (1)  potential water quality or water quantity impacts  | 
      
      
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        to any aquifer, subdivision of an aquifer, or geologic stratum  | 
      
      
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        adjacent to the proposed brackish groundwater management zone; and | 
      
      
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                     (2)  whether production from the proposed zone will  | 
      
      
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        negatively impact the district's ability to achieve approved  | 
      
      
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        desired future conditions. | 
      
      
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               (e)  Following the review, the Texas Water Development Board  | 
      
      
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        shall issue a report to the district detailing the findings under  | 
      
      
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        subsection (d). | 
      
      
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               (f)  The district shall schedule a public hearing to consider  | 
      
      
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        the petition, and shall make the petition and any other relevant  | 
      
      
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        material available to any person upon request. | 
      
      
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               Sec. 36.1013.  RULES FOR PERMITS IN BRACKISH GROUNDWATER  | 
      
      
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        MANAGEMENT ZONES.  (a)  A district may, by rule, designate one or  | 
      
      
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        more brackish groundwater management zones as a separate  | 
      
      
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        subdivision of an aquifer, and may issue permits with terms and  | 
      
      
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        conditions specific to that zone. | 
      
      
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               (b)  After a district has designated a brackish groundwater  | 
      
      
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        management zone, the district shall adopt rules for the issuance of  | 
      
      
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        permits under Section 36.113 to withdraw groundwater specific to  | 
      
      
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        that brackish groundwater management zone. The rules must: | 
      
      
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                     (1)  allow withdrawals and rates of withdrawal from a  | 
      
      
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        brackish groundwater management zone that can be demonstrated as  | 
      
      
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        not having an impact on aquifers, a subdivision of an aquifer, or  | 
      
      
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        geologic stratum adjacent to the brackish groundwater management  | 
      
      
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        zone; | 
      
      
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                     (2)  require reasonable monitoring of the aquifers,  | 
      
      
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        subdivisions of aquifers, or geologic stratum adjacent to the  | 
      
      
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        brackish groundwater management zone; | 
      
      
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                     (3)  allow the district to amend a permit issued under  | 
      
      
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        rules adopted under this section following receipt of a report  | 
      
      
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        requested under Subsection (d); and | 
      
      
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                     (4)  require reports from the holder of a permit issued  | 
      
      
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        under rules adopted under this section that must include: | 
      
      
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                           (A)  the amount of groundwater withdrawn; | 
      
      
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                           (B)  the average monthly water quality of the  | 
      
      
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        groundwater withdrawn from both the brackish groundwater  | 
      
      
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        management zone and in any aquifer, subdivision of the aquifer, or  | 
      
      
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        geologic stratum for which the permit requires monitoring; and | 
      
      
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                           (C)  aquifer levels in both the brackish  | 
      
      
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        groundwater management zone and in any aquifer, subdivision of the  | 
      
      
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        aquifer, or geologic stratum for which the permit requires  | 
      
      
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        monitoring. | 
      
      
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               (c)  The district shall provide the reports required under  | 
      
      
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        Subsection (b)(4) to the Texas Water Development Board. On request  | 
      
      
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        from the district, the Texas Water Development Board shall  | 
      
      
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        investigate and issue a report on: | 
      
      
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                     (1)  impacts to water quantity in an adjacent aquifer,  | 
      
      
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        subdivision of an aquifer, or geologic stratum; or | 
      
      
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                     (2)  impacts to water quality in an adjacent aquifer,  | 
      
      
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        subdivision of an aquifer, or geologic stratum. | 
      
      
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               (d)  After receiving a report requested under subsection  | 
      
      
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        (c), the district may, after notice and hearing: | 
      
      
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                     (1)  amend the applicable permit to establish a  | 
      
      
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        production limit necessary to mitigate any impacts identified by  | 
      
      
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        the report; | 
      
      
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                     (2)  with the approval of persons with a legally  | 
      
      
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        defined interest in groundwater within the district, approve a  | 
      
      
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        mitigation plan that alleviates any adverse impacts identified by  | 
      
      
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        the report; or | 
      
      
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                     (3)  both amend the permit to establish a production  | 
      
      
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        limit and, with the approval of persons with a legally defined  | 
      
      
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        interest in groundwater within the district, approve a mitigation  | 
      
      
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        plan. | 
      
      
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               SECTION 3.  Section 36.205(a), Water Code, is amended to  | 
      
      
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        read as follows: | 
      
      
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               (a)  A district may set fees for administrative acts of the  | 
      
      
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        district, such as filing applications or petitions. Fees set by a  | 
      
      
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        district may not unreasonably exceed the cost to the district of  | 
      
      
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        performing the administrative function for which the fee is  | 
      
      
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        charged. | 
      
      
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               SECTION 4.  This Act takes effect immediately if it receives  | 
      
      
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        a vote of two-thirds of all the members elected to each house, as  | 
      
      
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        provided by Section 39, Article III, Texas Constitution. If this  | 
      
      
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        Act does not receive the vote necessary for immediate effect, this  | 
      
      
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        Act takes effect September 1, 2015. |