By: Larson	H.B. No. 836

	A BILL TO BE ENTITLED
	AN ACT
	relating to the development of brackish groundwater.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
	SECTION 1.  The legislature finds that the state will
	benefit from the encouragement of the use of brackish groundwater
	resources to help supply the water demands of the state.
	SECTION 2.  Section 16.012(b), Water Code, is amended to
	read as follows:
	(b)  The executive administrator shall:
	(1)  determine suitable locations for future water
	facilities, including reservoir sites;
	(2)  determine suitable, cost-effective water supply
	alternatives on a regional basis, including voluntary means of
	encouraging aggressive water conservation;
	(3)  locate land best suited for irrigation;
	(4)  make estimates of the cost of proposed irrigation
	works and the improvement of reservoir sites;
	(5)  examine and survey reservoir sites;
	(6)  monitor the effects of fresh water inflows upon
	the bays and estuaries of Texas;
	(7)  monitor instream flows;
	(8)  lead a statewide effort, in coordination with
	federal, state, and local governments, institutions of higher
	education, and other interested parties, to develop a network for
	collecting and disseminating water resource-related information
	that is sufficient to support assessment of ambient water
	conditions statewide;
	(9)  make recommendations for optimizing the
	efficiency and effectiveness of water resource data collection and
	dissemination as necessary to ensure that basic water resource data
	are maintained and available for Texas; and
	(10)  study groundwater resources to identify areas
	suitable for designation as brackish groundwater production zones;
	and
	(11)  make basic data and summary information developed
	under this subsection accessible to state agencies and other
	interested persons.
	SECTION 3.  Section 16.012, Water Code, is amended by
	amending Subsection (l) and adding Subsections (o) through (q) to
	read as follows:
	(l)  The executive administrator shall obtain or develop
	groundwater availability models for major and minor aquifers in
	coordination with groundwater conservation districts and regional
	water planning groups created under Section 16.053 that overlie the
	aquifers.  Modeling of major aquifers shall be completed not later
	than October 1, 2004.  On completing a groundwater availability
	model for an aquifer, the executive administrator shall provide the
	model to each groundwater conservation district and each regional
	water planning group created under Section 16.053 overlying that
	aquifer.  If the executive administrator updates a groundwater
	availability model, the executive administrator shall consider
	expanding the groundwater availability model to adequately address
	groundwater contained in designated brackish groundwater zones.
	(o)  The executive administrator shall obtain or develop a
	series of regional maps and supporting documentation that
	delineates areas of groundwater resources as follows:
	(1)  areas of groundwater resources with average total
	dissolved solid levels greater than 3,000 milligrams per liter
	that, if subjected to continuous appreciable pumping over a period
	of 30 years, would not result in unreasonable negative impacts to
	groundwater resources described by Section 36.501(b); and
	(2)  areas of groundwater resources with average total
	dissolved solid levels between 1,000 and 3,000 milligrams per liter
	that, if subjected to continuous appreciable pumping over a period
	of 30 years, would not result in unreasonable negative impacts to
	groundwater resources described by Section 36.501(b).
	(p)  The regional maps described under Subsection (o) shall
	be developed in coordination with groundwater conservation
	districts and regional water planning groups that overlie the
	groundwater resources in the area. The regional maps shall be
	completed not later than October 1, 2019.  On completing a regional
	map and its supporting documentation, the executive administrator
	shall provide the map to each groundwater conservation district and
	each regional water planning group in the area of the map.
	(q)  The executive administrator shall conduct a review and
	submit findings to the 85th Texas Legislature in the board's
	biennial report required by Section 6.156 regarding existing
	groundwater availability models developed as required by Section
	16.012(l) documenting the extent, if any, of brackish groundwater
	resources included in current models and areas of significant
	groundwater resources for which no groundwater availability model
	currently exists.
	SECTION 4.  Section 16.053(e), Water Code, is amended to
	read as follows:
	(e)  Each regional water planning group shall submit to the
	development board a regional water plan that:
	(1)  is consistent with the guidance principles for the
	state water plan adopted by the development board under Section
	16.051(d);
	(2)  provides information based on data provided or
	approved by the development board in a format consistent with the
	guidelines provided by the development board under Subsection (d);
	(2-a) is consistent with the desired future conditions
	adopted under Section 36.108 for the relevant aquifers located in
	the regional water planning area as of the date the board most
	recently adopted a state water plan under Section 16.051 or, at the
	option of the regional water planning group, established subsequent
	to the adoption of the most recent plan;
	(3)  identifies:
	(A)  each source of water supply in the regional
	water planning area, including information supplied by the
	executive administrator on the amount of modeled available
	groundwater in accordance with the guidelines provided by the
	development board under Subsections (d) and (f);
	(B)  factors specific to each source of water
	supply to be considered in determining whether to initiate a
	drought response;
	(C)  actions to be taken as part of the response;
	and
	(D)  existing major water infrastructure
	facilities that may be used for interconnections in the event of an
	emergency shortage of water;
	(4)  has specific provisions for water management
	strategies to be used during a drought of record;
	(5)  includes but is not limited to consideration of
	the following:
	(A)  any existing water or drought planning
	efforts addressing all or a portion of the region;
	(B)  approved groundwater conservation district
	management plans and other plans submitted under Section 16.054;
	(C)  all potentially feasible water management
	strategies, including but not limited to improved conservation,
	reuse, and management of existing water supplies, conjunctive use,
	acquisition of available existing water supplies, and development
	of new water supplies;
	(D)  protection of existing water rights in the
	region;
	(E)  opportunities for and the benefits of
	developing regional water supply facilities or providing regional
	management of water supply facilities;
	(F)  appropriate provision for environmental
	water needs and for the effect of upstream development on the bays,
	estuaries, and arms of the Gulf of Mexico and the effect of plans on
	navigation;
	(G)  provisions in Section 11.085(k)(1) if
	interbasin transfers are contemplated;
	(H)  voluntary transfer of water within the region
	using, but not limited to, regional water banks, sales, leases,
	options, subordination agreements, and financing agreements; [and]
	(I)  emergency transfer of water under Section
	11.139, including information on the part of each permit, certified
	filing, or certificate of adjudication for nonmunicipal use in the
	region that may be transferred without causing unreasonable damage
	to the property of the nonmunicipal water rights holder; and
	(J)  opportunities for and the benefits of
	designating local or regional brackish groundwater production
	zones;
	(6)  identifies river and stream segments of unique
	ecological value and sites of unique value for the construction of
	reservoirs that the regional water planning group recommends for
	protection under Section 16.051;
	(7)  assesses the impact of the plan on unique river and
	stream segments identified in Subdivision (6) if the regional water
	planning group or the legislature determines that a site of unique
	ecological value exists;
	(8)  describes the impact of proposed water projects on
	water quality; and
	(9)  includes information on:
	(A)  projected water use and conservation in the
	regional water planning area; and
	(B)  the implementation of state and regional
	water plan projects, including water conservation strategies,
	necessary to meet the state's projected water demands.
	SECTION 5.  Section 16.060, Water Code, is amended by
	amending Subsections (a) and (b) and adding Subsection (d) to read
	as follows:
	(a)  The board shall undertake or participate in research,
	feasibility and facility planning studies, investigations, and
	surveys as it considers necessary to further the development of
	cost-effective water supplies from seawater or groundwater
	desalination in the state.
	(b)  The board shall prepare a biennial progress report on
	the implementation of seawater or groundwater desalination
	activities in the state and shall submit it to the governor,
	lieutenant governor, and speaker of the house of representatives
	not later than December 1 of each even-numbered year.  The report
	shall include:
	(1)  results of the board's studies and activities
	relative to seawater or groundwater desalination during the
	preceding biennium;
	(2)  identification and evaluation of research,
	regulatory, technical, and financial impediments to the
	implementation of seawater or groundwater desalination projects;
	(3)  evaluation of the role the state should play in
	furthering the development of large-scale seawater or groundwater
	desalination projects in the state; and
	(4)  the anticipated appropriation from general
	revenues necessary to continue investigating water desalination
	activities in the state during the next biennium.
	SECTION 6.  Section 36.001, Water Code, is amended by adding
	a new Subdivision (17) to read as follows:
	(17)  "Brackish groundwater production zone" means a
	zone designated by a district or the Texas Water Development Board
	in accordance with Subchapter O.
	SECTION 7.  Section 36.1071(a), Water Code, is amended to
	read as follows:
	Sec. 36.1071.  MANAGEMENT PLAN.  (a) Following notice and
	hearing, the district shall, in coordination with surface water
	management entities on a regional basis, develop a management plan
	that addresses the following management goals, as applicable:
	(1)  providing the most efficient use of groundwater;
	(2)  controlling and preventing waste of groundwater;
	(3)  controlling and preventing subsidence;
	(4)  addressing conjunctive surface water management
	issues;
	(5)  addressing natural resource issues;
	(6)  addressing drought conditions;
	(7)  addressing conservation, recharge enhancement,
	rainwater harvesting, precipitation enhancement, or brush control,
	where appropriate and cost-effective
	(8)  promoting the development and use of groundwater
	in brackish groundwater production zones; and
	(9)  addressing the desired future conditions adopted
	by the district under Section 36.108.
	SECTION 8.  Section 36.108, Water Code, is amended by
	amending Subsections (d), (d-1), and (d-3) to read as follows:
	(d)  Not later than September 1, 2010, and every five years
	thereafter, the districts shall consider groundwater availability
	models and other data or information for the management area and
	shall propose for adoption desired future conditions for the
	relevant aquifers within the management area. Before voting on the
	proposed desired future conditions of the aquifers under Subsection
	(d-2), the districts shall consider:
	(1)  aquifer uses or conditions within the management
	area, including conditions that differ substantially from one
	geographic area to another;
	(2)  the water supply needs and water management
	strategies included in the state water plan;
	(3)  hydrological conditions, including for each
	aquifer in the management area the total estimated recoverable
	storage as provided by the executive administrator, and the average
	annual recharge, inflows, and discharge;
	(4)  other environmental impacts, including impacts on
	spring flow and other interactions between groundwater and surface
	water;
	(5)  the impact on subsidence;
	(6)  socioeconomic impacts reasonably expected to
	occur;
	(7)  the impact on the interests and rights in private
	property, including ownership and the rights of management area
	landowners and their lessees and assigns in groundwater as
	recognized under Section 36.002;
	(8)  the impact on existing and potential brackish
	groundwater production zones;
	(9)  the feasibility of achieving the desired future
	condition; and
	(10)  any other information relevant to the specific
	desired future conditions.
	(d-1)  The districts may establish different desired future
	conditions for:
	(1)  each aquifer, subdivision of an aquifer, or
	geologic strata located in whole or in part within the boundaries of
	the management area; or
	(2)  each geographic area overlying an aquifer in whole
	or in part or subdivision of an aquifer within the boundaries of the
	management area; or
	(3)  brackish groundwater production zones.
	(d-3)  After the earlier of the date on which all the
	districts have submitted their district summaries or the expiration
	of the public comment period under Subsection (d-2), the district
	representatives shall reconvene to review the reports, consider any
	district's suggested revisions to the proposed desired future
	conditions, and finally adopt the desired future conditions for the
	management area. The desired future conditions must be adopted as a
	resolution by a two-thirds vote of all the district
	representatives. The district representatives shall produce a
	desired future conditions explanatory report for the management
	area and submit to the development board and each district in the
	management area proof that notice was posted for the joint planning
	meeting, a copy of the resolution, and a copy of the explanatory
	report. The report must:
	(1)  identify each desired future condition;
	(2)  provide the policy and technical justifications
	for each desired future condition;
	(3)  include documentation that the factors under
	Subsection (d) were considered by the districts and a discussion of
	how the adopted desired future conditions impact each factor;
	(4)  list other desired future condition options
	considered, if any, and the reasons why those options were not
	adopted; and
	(5)  discuss, if applicable, how the desired future
	conditions promote the use of groundwater from brackish groundwater
	production zones; and
	(6)  discuss reasons why recommendations made by
	advisory committees and relevant public comments received by the
	districts were or were not incorporated into the desired future
	conditions.
	SECTION 9.  Section 36.1132(b), Water Code, is amended to
	read as follows:
	Sec. 36.1132.  PERMITS BASED ON MODELED AVAILABLE
	GROUNDWATER.
	(b)  In issuing permits, the district shall manage total
	groundwater production on a long-term basis to achieve an
	applicable desired future condition and consider:
	(1)  the modeled available groundwater determined by
	the executive administrator;
	(2)  the executive administrator's estimate of the
	current and projected amount of groundwater produced under
	exemptions granted by district rules and Section 36.117;
	(3)  the amount of groundwater authorized under permits
	previously issued by the district;
	(4)  a reasonable estimate of the amount of groundwater
	that is actually produced under permits issued by the district; and
	(5)  yearly precipitation and production patterns; and
	(6)  the extent to which the total volume of water
	authorized to be produced under permits issued by the district may
	be increased because of the amount of groundwater production that
	will occur from within brackish groundwater production zones while
	still achieving an applicable desired future condition.
	SECTION 10.  Section 36.402, Water Code, is amended to read
	as follows:
	Sec. 36.402.  APPLICABILITY. Except as provided by Section
	36.416 and under Subchapter O, this subchapter applies to the
	notice and hearing process used by a district for permit and permit
	amendment applications.
	SECTION 11.  Chapter 36, Water Code, is amended to add
	Subchapter O, as follows:
	SUBCHAPTER O. BRACKISH GROUNDWATER PRODUCTION ZONES
	Sec. 36.501.  APPLICABILITY.  (a) Except as provided in
	subsection (b), a brackish groundwater production zone may be
	designated in any groundwater reservoir or subdivision of a
	groundwater reservoir in the state.
	(b)  No brackish groundwater production zone may be
	designated in the following:
	(1)  any area of a groundwater reservoir or subdivision
	of a groundwater reservoir with average total dissolved solids
	levels of 1,000 milligrams per liter or less, at the time of
	submission of an administratively complete petition under Section
	36.502;
	(2)  any area of a groundwater reservoir or subdivision
	of a groundwater reservoir with average total dissolved solids
	levels of more than 1,000 milligrams per liter that is serving as a
	significant source of water supply for municipal, domestic, or
	agricultural purposes, other than production from another brackish
	groundwater production zone, at the time of submission of an
	administratively complete petition under Section 36.502;
	(3)  any area of the Edwards Aquifer subject to the
	jurisdiction of the Edwards Aquifer Authority; or
	(4)  any area within the boundaries of the Barton
	Springs-Edwards Aquifer Conservation District, the
	Harris-Galveston Subsidence District, or the Fort Bend Subsidence
	District.
	(c)  The average total dissolved solids levels provided in
	Subsection (b)(1) and (2) shall be determined by:
	(1)  using the methodologies included in the guidance
	documents developed by the Texas Water Development Board under
	Section 36.503; or
	(2)  a process agreed to in writing by the petitioner
	and the district in which the project is located.
	Sec. 36.502.  DESIGNATION OF ZONE BY PETITION.  (a) A person
	with a legally defined interest in the groundwater to be included
	in a brackish groundwater production zone may petition the district
	to designate a brackish groundwater production zone in a
	groundwater reservoir or subdivision of a reservoir, or in a
	specific area of a groundwater reservoir or subdivision of a
	reservoir.
	(b)  The district shall designate a zone if the petitioner
	demonstrates that:
	(1)  the production of groundwater proposed in the
	petition will not cause unreasonable negative impacts:
	(A)  to the quality or quantity of groundwater
	available for permitted and exempt production in any area of a
	groundwater reservoir or subdivision of a groundwater reservoir
	described under Section 36.501(b);
	(B)  to existing wells or well systems; or
	(C)  on the achievement of applicable existing
	desired future conditions; and
	(2)  a monitoring plan described under Section
	36.504(a)(4) is sufficient to monitor the impacts described under
	Subdivision (1) of this subsection.
	(c)  Notwithstanding subsection (b), a district may
	designate a brackish groundwater production zone if the petitioner
	demonstrates that, while there are unreasonable negative impacts
	described under Subsection (b)(1) or there are existing wells that
	may be unreasonably negatively impacted by production from the
	zone, the mitigation plan, if any, submitted under Section 36.504
	as part of the petition will reasonably offset the impacts.
	(d)  A brackish groundwater production zone designation
	created under this subsection shall be consistent with the rights
	recognized under Section 36.002.
	Section 36.503.  TECHNICAL GUIDANCE DOCUMENTS DEVELOPED BY
	BOARD.  The Texas Water Development Board, with input from
	districts and interested stakeholders, shall develop guidance
	documents addressing the technical contents of petitions to
	designate brackish groundwater production zones.  The guidance
	documents shall include a description of the technical
	information, including hydrogeologic studies, modeling, or other
	applicable geophysical and geochemical data regarding properties
	of the groundwater reservoirs and subdivisions of groundwater
	reservoirs in the area of a proposed zone, and monitoring and
	reporting protocols that will be required as part of a petition to
	make the demonstrations set forth under Section 36.502(b) and (c),
	and guidance on how to determine average total dissolved solids
	levels in an area of a groundwater reservoir or subdivision of a
	groundwater reservoir. The guidance documents shall be used by
	petitioners in developing petitions and by districts and the Texas
	Water Development Board in reviewing petitions.
	Sec. 36.504.  CONTENTS OF A PETITION.  A petition for the
	designation of a brackish groundwater production zone shall include
	the following:
	(1)  a description of:
	(A)  the location of the area overlying the zone
	and a map that includes sufficient details to enable a property
	owner to determine whether his property is located within the
	associated surface acreage proposed to be included in the zone
	based on:
	(1)  a metes and bounds survey certified by a
	licensed state land surveyor or a registered professional land
	surveyor;
	(2)  the Texas State Plane Coordinate
	System; or
	(3)  verifiable landmarks, including a road,
	creek, or railroad line;
	(B)  the groundwater reservoir or subdivision of a
	groundwater reservoir in which the zone will be located; and
	(C)  the petitioner's rights to produce
	groundwater in the zone;
	(2)  the approximate locations, production rates,
	depths of well screens, total annual production, and total duration
	of production of wells to be used for production of groundwater
	from the zone;
	(3)  technical information consistent with the
	guidance documents developed under Subsection (b) sufficient to
	make the demonstrations set forth under Section 36.502(b),
	including the scope and degree of impact, due to projected
	production, on areas of groundwater reservoirs and subdivisions of
	groundwater reservoirs locate inside and outside the zone described
	under Section 36.501(b);
	(4)  a plan for monitoring and reporting on a periodic
	basis the quality and quantity of groundwater in the proposed zone
	and adjacent areas of groundwater reservoirs and subdivisions of
	groundwater reservoirs described under Section 36.501(b);
	(5)  proposed mitigation plans to identify and mitigate
	impacts to existing well owners, if any, caused by the petitioner's
	production of groundwater from the zone; and
	(6)  if applicable, a description of the expected
	project financing term and estimated duration of the project that
	will be producing groundwater from the zone.
	Sec. 36.505.  PROCEDURE FOR DISTRICT REVIEW OF A PETITION.
	(a)  A petition to designate a brackish groundwater production zone
	shall be filed with the district with jurisdiction over the
	groundwater reservoir or subdivision of a groundwater reservoir
	proposed to be designated as a brackish groundwater production
	zone. A copy of the petition shall be filed with the Texas Water
	Development Board. Within 45 days after receipt of a petition, the
	district shall deem the petition administratively complete,
	provide the petitioner with notice of the deficiencies in the
	petition, or provide the petitioner with notice that the petition
	shall be considered for direct referral to the Texas Water
	Development Board.
	(b)  A district shall hold a hearing on a petition or on a
	request to directly refer the petition to the Texas Water
	Development Board. The notice and hearing shall be provided and
	conducted in the same manner as a rulemaking hearing under Section
	36.101, and the district shall require all hearing participants to
	register as described under Section 36.101(g). The executive
	administrator may, and at the request of the district or petitioner
	shall, participate in the hearing and provide technical comments
	for the benefit of the district, the petitioner, and the public
	regarding the petition and the designation of the zone in
	accordance with the provisions of this subchapter.
	(c)  The district board shall make a final ruling on a
	petition within 150 days of receipt of an administratively complete
	petition.
	(d)  A petition shall be deemed denied, without further
	action by a district, if the district fails to directly refer the
	petition to the Texas Water Development Board or make a final ruling
	on the petition in accordance with Section 36.505(c), unless
	otherwise agreed by the petitioner and district.
	Sec. 36.506.  DISTRICT ACTION ON PETITION; WHEN FINAL. (a) A
	district board may grant, modify, deny or directly refer a petition
	to the Texas Water Development Board by written order. Unless the
	written order directly refers the petition to the Texas Water
	Development Board, the order shall include the findings of the
	district board relevant to the determinations set forth under
	Section 36.502(b) and (c) and projected impacts of the proposed
	groundwater production from within the zone, including any
	projected impacts to the quality or quantity of groundwater in
	areas described under Section 36.501(b). Unless the written order
	directly refers the petition to the Texas Water Development Board,
	the board's order shall describe how the zone designation is
	consistent with the rights recognized in Section 36.002 or whether
	the zone designation does not impact the rights recognized in
	Section 36.002, and shall include the participant registration
	information obtained under Section 36.505(b).
	(b)  A decision by a district on a petition is final and
	appealable pursuant to Section 36.507 on the date of the district
	board's written order approving, modifying, or denying the
	petition.  The district shall not require a motion for rehearing on
	the board action as a prerequisite to filing an appeal under Section
	36.507.  A decision by a district on a petition that directly refers
	the petition to the Texas Water Development Board is final on the
	date of the district's written order, and the decision to directly
	refer the petition is not appealable.
	Sec. 36.507.  APPEAL OR DIRECT REFERRAL TO TEXAS WATER
	DEVELOPMENT BOARD.  (a) Within 30 days after the date of a district
	board's written order approving, modifying, denying or directly
	referring a petition, or 30 days after the date a petition is deemed
	denied under Section 36.505(d), the petitioner or any person with a
	legally defined interest in groundwater in the district who
	participated in the hearing may appeal the decision of the district
	board by filing a notice of appeal along with a copy of the petition
	as reviewed by the district board with the Texas Water Development
	Board.
	(b)  If a district enters an order directly referring a
	petition, the petitioner shall file the petition with the Texas
	Water Development Board. The executive administrator shall
	promptly review the petition and, within 30 days after receipt of a
	petition, the executive administrator shall declare the petition
	administratively complete, or provide the petitioner with notice of
	the deficiencies in the petition.
	(c)  The person filing the appeal, or the petitioner, in the
	case of direct referral, shall provide notice of the Texas Water
	Development Board's review of the petition by appeal or direct
	referral to the petitioner, if the district, and to each person that
	participated in the hearing as identified in the district's order
	under Section 36.506(a) or, if the petition was deemed denied and
	there is no district order, to each person who participated and
	registered at the hearing as required under Section 36.505(b).
	(d)  The Texas Water Development Board shall review the
	petition de novo. On direct referral, or on an appeal by the
	petitioner of the district board's modification or denial of the
	petition, the petitioner shall bear the burden of demonstrating
	that the petition meets the requirements of this subchapter for the
	designation of a zone. If a person other than the petitioner appeals
	the district board's denial of the petition and the petitioner does
	not appeal, the person shall bear the burden of demonstrating that
	the petition meets the requirements of this subchapter for the
	designation of a zone. If a person other than the petitioner
	appeals the district board's modification or approval of the
	petition, the person shall bear the burden of demonstrating that
	the petition as approved does not meet the requirements of this
	subchapter for the designation of a zone.
	(e)  The Texas Water Development Board's review of a petition
	under this section is considered a contested case under Chapter
	2001, Government Code. The executive administrator shall refer an
	appeal directly to the State Office of Administrative Hearings for
	a determination of parties and a contested case hearing. The Texas
	Water Development Board shall issue a final order granting,
	modifying, or denying the petition and including the information
	required of a written order under Section 36.506(a).
	(f)  Any party to a review under this section is entitled to
	judicial review of the Texas Water Development Board's final order
	under the substantial evidence rule.
	Sec. 36.508.  PETITION PROCESS FOR BRACKISH GROUNDWATER
	PRODUCTION ZONE LOCATED IN TWO OR MORE DISTRICTS. (a) A petition to
	designate a brackish groundwater production zone in an area that
	includes more than one district shall be filed with each district
	located over the proposed zone in the manner provided by Section
	36.502.
	(b)  The districts described under Subsection (a) shall:
	(1)  hold a joint hearing on a petition within 90 days
	of receipt of an administratively complete petition in the manner
	provided by Section 36.505;
	(2)  agree in writing that one district shall hold the
	hearing on the petition on behalf of all of the districts; or
	(3)  directly refer a petition to the Texas Water
	Development Board if at least one district adopts a written order
	directly referring the petition.
	(c)  A quorum of the board of directors of each district
	located over the proposed zone is required for a joint hearing under
	this section.
	(d)  The districts located over the proposed zone may enter
	into a cost-sharing agreement to address any technical,
	regulatory, legal, administrative or other issues associated with
	the petition.
	(e)  Each district located over the proposed zone shall
	provide notice of a hearing as provided by Section 36.505. If a
	district is holding a district board meeting at which a district
	board will consider a direct referral of a petition to the Texas
	Water Development Board, the district shall provide written notice
	of the district board meeting to all other districts located over
	the proposed zone and the Texas Water Development Board.
	(f)  The board of directors of each district located over the
	proposed zone shall make a final decision on the designation of the
	zone within 75 days of the date of the hearing conducted under
	Subsection (b), unless the petitioner and each participating
	district agree in writing on another date. A single written order
	that meets the requirements of Section 36.506 must be approved by
	the board of directors of each district located over the zone in
	order to designate a zone under this section. The failure of one or
	more of the districts to approve a single order under this
	subsection, or the approval and issuance of a single order by each
	district to approve, modify, or deny a petition under this
	subsection, may be appealed to the Texas Water Development Board in
	the manner described by Section 36.507.
	Sec. 36.509.  PERMITTING OF WELLS IN A BRACKISH GROUNDWATER
	PRODUCTION ZONE. (a) Except as specifically provided under this
	subchapter or otherwise provided in the zone designation order, a
	district may adopt rules regulating the drilling, equipping,
	completion, and spacing of wells, production of groundwater, or
	otherwise managing the groundwater resources located in a brackish
	groundwater production zone in any manner authorized under this
	chapter; provided, however, that such rules must not be in conflict
	with the findings of the order designating the zone. However, any
	rules related to well spacing for wells in the zone or limiting the
	rates or amounts of groundwater production from the zone are:
	(1)  not applicable to a permit applicant that was the
	petitioner for the designation of the zone unless the rules related
	to well spacing or production were in effect at the time of the
	designation of the zone; and
	(2)  not applicable to a permit applicant that was not
	the petitioner for the designation of the zone unless the rules
	related to well spacing or production were in effect at the time of
	receipt of the administratively complete permit application by such
	permit applicant.
	(b)  An application for a permit for a well in a brackish
	groundwater production zone shall be consistent with the findings
	in the written order designating the zone under Section 36.506 or
	36.507, as applicable, and the rules of the district as described
	under Subsection (a).
	(c)  The district may impose a reasonable fee under Section
	36.205 for processing an application under this section.
	(d)  A district shall act on an application for a permit for
	a well in a brackish groundwater production zone within 60 days of
	receipt of the application, or as otherwise agreed by the district
	and the petitioner.  The application shall be processed as an
	uncontested application under Subchapter M and shall not be subject
	to a contested case hearing, or may be processed as an application
	for which a hearing is not required under Section 36.114(b).
	(e)  Notwithstanding Section 36.113(d), a district shall
	grant an application for a permit for a well in a brackish
	groundwater production zone if the application is consistent with
	the order designating the zone under Section 36.506 or 36.507, as
	applicable, and the rules of the district as described under
	Subsection (a).
	(f)  A permit issued under this section may be amended
	pursuant to an application by the permittee if the permittee
	demonstrates that the changes to the permit are consistent with the
	written order designating the zone under Sections 36.506 or 36.507.
	A permit may be amended by the district pursuant to Section 36.514.
	Sec. 36.510.  CONTENTS OF A PERMIT IN A BRACKISH GROUNDWATER
	PRODUCTION ZONE.  (a) Permits shall authorize the drilling and
	production of water at locations, rates, and amounts that are
	consistent with the written order designating the brackish
	groundwater production zone, and the rules of the district as
	described under Section 36.509(a).
	(b)  Permits in a brackish groundwater production zone shall
	contain a permit term equal to the expected project financing term
	or estimated duration of production for the project contained in
	the zone designation, but no more than 30 years.
	(c)  Permits may require reasonable monitoring of the zone
	and adjacent areas of groundwater reservoirs and subdivisions of
	groundwater reservoirs consistent with the monitoring plan
	contained in the zone designation.
	(d)  Permits may require the filing of drilling logs, and
	periodic reports of withdrawals, aquifer levels, and other
	information from the monitoring plan.
	Sec. 36.511.  NON-APPLICABILITY OF SECTION 36.122 TO
	PRODUCTION; EXPORT FEES.  (a) The production from a well in a
	brackish groundwater production zone is not subject to Section
	36.122.
	(b)  Notwithstanding subsection (a), a district may impose a
	reasonable fee or surcharge under Section 36.122(e) for groundwater
	produced from a brackish groundwater production zone for use
	outside of a district's boundaries.
	Sec. 36.512.  RIGHTS OF LANDOWNER OVER BRACKISH GROUNDWATER
	PRODUCTION ZONE TO PRODUCE GROUNDWATER.  In implementing this
	subchapter, a district's actions shall be consistent with the
	rights recognized under Section 36.002.
	Sec. 36.513.  AMENDMENTS TO BRACKISH GROUNDWATER PRODUCTION
	ZONES.  (a) A brackish groundwater production zone designation
	under this subchapter may only be amended as provided by this
	section.
	(b)  A district may initiate an amendment to a brackish
	groundwater production zone to increase or decrease the rates or
	amounts of production of groundwater from the zone, to amend the
	boundaries of the zone, or to change a monitoring or mitigation plan
	applicable to the zone by providing notice and holding a hearing in
	the manner set forth under Section 36.505. A district that
	initiates an amendment to a zone shall bear the burden of proof in
	making the demonstrations required under Section 36.502 and this
	section.  If the district amendment proposes to decrease the rates
	or amounts of production of groundwater from the zone, the district
	must demonstrate that the actual impacts to groundwater resources
	from production within the zone exceed the projected impacts
	included in the written order issued under Section 36.506 or
	36.507, as applicable, that designated the zone, or that there is a
	changed desired future condition that is impacted by production
	from the zone.
	(c)  A person who holds a permit to produce groundwater from
	within the zone or any person with a legally defined interest in
	groundwater in the district may initiate an amendment to a zone to
	increase or decrease the rates or amounts of production of
	groundwater from the zone, to amend the boundaries of the zone, or
	to change a monitoring or mitigation plan applicable to the zone by
	filing a petition with the district in the manner prescribed for
	the original designation of a zone under Section 36.502. The
	petitioner shall bear the burden of proof in making the
	demonstrations required under Section 36.502 and this section. If
	the petition proposes to decrease the rates or amounts of
	production of groundwater from the zone, the petitioner must
	demonstrate that the actual impacts to groundwater resources from
	production within the zone exceed the projected impacts included
	in the written order issued under Section 36.506 or 36.507, as
	applicable, that designated the zone, or that there is a changed
	desired future condition that is impacted by production from the
	zone.
	(d)  A person who holds a permit to produce groundwater from
	within the zone or any person with a legally defined interest in
	groundwater in the district may appeal the decision of the district
	board to amend a zone under Subsections (b) or (c) to the Texas
	Water Development Board in the manner prescribed under Section
	36.507.
	Sec. 36.514.  EFFECT OF ZONE AMENDMENT ON EXISTING WELL
	PERMITS IN A ZONE. (a) A district may amend a well permit in a
	brackish groundwater production zone to change the amount or rate
	of production, or change the monitoring or mitigation plan, only if
	the designation of the zone is amended under Section 36.513 or by
	written agreement between the district and the permit holder.  Any
	amendment to a permit must be consistent with the amendment to the
	zone and may not reduce the rates or amounts of groundwater produced
	under the permit to a level lower than necessary to be consistent
	with the amended zone designation.
	(b)  A district may not amend an existing permit to produce
	groundwater from a zone because of a change in a desired future
	condition established under Section 36.108 that may be affected by
	production from the zone, even if the zone is amended under Section
	36.513.  In such instances, the district may reduce production
	through permit renewal after expiration of the original permit term
	and only to an amount consistent with achievement of the desired
	future condition and the applicable effective findings related to
	the zone designation at the time the permit expires.
	(c)  A district may not amend an existing permit to produce
	groundwater from a zone during the term of the permit because of an
	amendment to increase or decrease the size of a zone, or to
	undesignate a previously designated zone.
	(d)  During the pendency of an amendment to a brackish
	groundwater production zone, an existing permit holder may continue
	to produce groundwater under the terms of the existing permit until
	the permit has been amended after a final decision on the amendment
	to the zone has been issued by the district under Section 36.506,
	or if the decision of the district is appealed, until a final
	decision has been issued by the Texas Water Development Board under
	Section 36.507.
	(e)  A district may not by rule or an amendment to a rule
	reduce the amount or rate of groundwater that may be produced under
	an existing permit to produce groundwater from a zone in a manner
	that the district would not be authorized to reduce by permit
	amendment under this section.
	Sec. 36.515.  MANANAGEMENT OF BRACKISH GROUNDWATER BY A
	DISTRICT OR THROUGH JOINT PLANNING.  (a) Nothing in this subchapter
	shall be construed to prohibit:
	(1)  a district, on its own initiative, from managing
	the groundwater resources as authorized by this chapter in a
	groundwater reservoir, subdivision of a groundwater reservoir, or
	area of a groundwater reservoir or subdivision of a groundwater
	reservoir described by Section 36.501(b); or
	(2)  the establishment of a desired future condition
	through the joint planning process described under Section 36.108
	for a groundwater reservoir, subdivision of a groundwater
	reservoir, or area of a groundwater reservoir or subdivision of a
	groundwater reservoir described by Section 36.501(b).
	(b)  Notwithstanding Subsection (a), a person may petition a
	district or districts for the designation of a brackish groundwater
	production zone in the manner prescribed by this subchapter
	regardless of whether:
	(1)  a district is already managing all or part of the
	groundwater resources located in the proposed zone; or
	(2)  there is a desired future condition adopted for
	all or part of the groundwater resources located within the
	proposed zone.
	Sec. 36.516.  MANAGEMENT OF BRACKISH GROUNDWATER RESOURCES
	TO PROMOTE USE; EXPLORATION OR PRODUCTION OF HYDROCARBONS. (a)
	This subchapter does not affect the exemptions related to
	hydrocarbon activities as set forth under Section 36.117.
	(b)  In order to promote the utilization of brackish
	groundwater resources, a district may establish special rules that
	are less restrictive administratively or with regard to the amount
	of groundwater that can be produced from a groundwater reservoir,
	subdivision of a groundwater reservoir, or area of a groundwater
	reservoir or subdivision of a groundwater reservoir that contains
	brackish groundwater than the district's rules are with respect to
	the administration, management, and production of non-brackish
	groundwater resources for any beneficial purpose of use, including
	use related to activities associated with the drilling,
	exploration, or production of hydrocarbons.
	(c)  A district may not adopt rules under this section that
	are more restrictive on a person producing groundwater for
	activities related to the drilling, exploration, or production of
	hydrocarbons than on a person producing groundwater for other
	purposes of use, but may adopt rules that are less restrictive.
	Sec. 36.517.  MANDAMUS. A district court in in a court of
	competent jurisdiction in any county in which the district or any
	part of the district is located may issue a writ of mandamus to
	compel a district to perform the following:
	(a)  act on a petition for designation of a brackish
	groundwater production zone within the times frames established in
	Section 36.504; or
	(b)  issue a permit for a well located in a brackish
	groundwater production zone pursuant to Section 36.508 based on an
	application that is consistent with the designation of the
	brackish groundwater production zone and the rules of the district
	as described under Section 36.509(a).
	Sec. 36.518.  CONFLICTS WITH OTHER SUBCHAPTERS.  If a
	provision in this subchapter conflicts with a provision of another
	subchapter under this chapter, the provision in this subchapter
	prevails.
	SECTION 12.  No later than January 1, 2016, the Texas Water
	Development Board shall adopt rules to implement the changes in law
	to Chapters 16 and 36, Water Code, as amended by this Act.
	SECTION 13.  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, 2015.