BILL ANALYSIS

C.S.H.B. 2941

By: Zwiener

Natural Resources

Committee Report (Substituted)

BACKGROUND AND PURPOSE

Recognizing the sensitive nature of the Edwards Aquifer, the Texas Commission on Environmental Quality regulates certain land use within the aquifer's recharge, transition, or contributing zones through the Edwards Aquifer Protection Program. This program requires a water pollution abatement plan to protect water quality for certain proposed regulated activity; however, water pollution abatement plans are not always required for oil and gas development. C.S.H.B. 2941 seeks to address this issue by providing for the requirement of the owner or operator of an oil or gas pipeline that is subject to the jurisdiction of the Railroad Commission of Texas to submit a water pollution abatement plan for the pipeline, if the pipeline is constructed or expanded in the Edwards Aquifer recharge zone.

CRIMINAL JUSTICE IMPACT

It is the committee's opinion that this bill does not expressly create a criminal offense, increase the punishment for an existing criminal offense or category of offenses, or change the eligibility of a person for community supervision, parole, or mandatory supervision.

RULEMAKING AUTHORITY

It is the committee's opinion that rulemaking authority is expressly granted to the Railroad Commission of Texas and the Texas Commission on Environmental Quality in SECTION 1 of this bill.

ANALYSIS

C.S.H.B. 2941 amends the Water Code to require the Railroad Commission of Texas (RRC) to require the owner or operator of an oil or gas pipeline that is subject to the RRC's jurisdiction and constructed or expanded in the recharge zone of the Edwards Aquifer to submit to the RRC a water pollution abatement plan for the pipeline. The bill defines "water pollution abatement plan" as a plan that outlines best management practices that will be implemented to protect water quality when a construction-related or post-construction activity in the recharge zone of the Edwards Aquifer has the potential for polluting the aquifer and hydrologically connected surface streams.

C.S.H.B. 2941 requires the RRC, by rule and in consultation with the Texas Commission on Environmental Quality (TCEQ), to adopt construction or operational temporary best management practices for water pollution abatement plans and authorizes the rules to incorporate construction best management practices adopted for protection of the Edwards Aquifer recharge zone by the TCEQ. The bill requires the TCEQ and the RRC to develop a process for joint consultation on water pollution abatement in the Edwards Aquifer recharge zone by owners or operators of pipelines and to enter by rule into a memorandum of understanding on the implementation of the process.

C.S.H.B. 2941 amends the Natural Resources Code to authorize the RRC to enforce the bill's provisions or any RRC rule, order, or permit adopted under those provisions in the manner and subject to the conditions provided in applicable state law, including the authority to seek and obtain civil penalties and injunctive relief as provided by that law. The bill applies only to a pipeline the construction or expansion of which begins on or after the bill's effective date.

EFFECTIVE DATE

September 1, 2024.

COMPARISON OF INTRODUCED AND SUBSTITUTE

While C.S.H.B. 2941 may differ from the introduced in minor or nonsubstantive ways, the following summarizes the substantial differences between the introduced and committee substitute versions of the bill.

Whereas the introduced required the RRC, in consultation with the TCEQ, to adopt by rule construction or operational standards for water abatement plans, the substitute instead requires the RRC, in consultation with the TCEQ, to adopt by rule construction or operational temporary best practices for those plans.

The substitute omits the provisions from the introduced that created an offense for a person who wilfully or with criminal negligence violates the bill's provisions relating to Edwards Aquifer protection plans for oil or gas pipelines or an RRC rule, order, or permit issued under those provisions that is punishable by a maximum $10,000 daily fine for each day a violation is committed.

The substitute changes the bill's effective date from September 1, 2023, as in the introduced, to September 1, 2024.