By: Birdwell, Blanco S.B. No. 786       Zaffirini     A BILL TO BE ENTITLED   AN ACT   relating to the regulation by the Railroad Commission of Texas of   closed-loop geothermal injection wells.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Subchapter C, Chapter 27, Water Code, is amended   by adding Section 27.037 to read as follows:          Sec. 27.037.  JURISDICTION OVER CLOSED-LOOP GEOTHERMAL   INJECTION WELLS.  (a)  In this section, "closed-loop geothermal   injection well" means a closed system geothermal well used to   circulate water, other fluids, or gases through the earth as a heat   source or heat sink to generate power or heat or cool a structure.          (b)  The railroad commission has jurisdiction over   closed-loop geothermal injection wells and may issue permits for   closed-loop geothermal injection wells, including individual   permits, general permits, or permits by rule.          (c)  A person may not begin drilling a closed-loop geothermal   injection well unless that person holds a valid permit issued by the   railroad commission under this section.          (d)  For purposes of railroad commission regulation, a   closed-loop geothermal injection well is designated as a Class V   well under the underground injection control program administered   by the railroad commission.          (e)  The railroad commission shall adopt rules as necessary   to administer this section and regulate closed-loop geothermal   injection wells.          SECTION 2.  (a)  In this section:                (1)  "Closed-loop geothermal injection well" has the   meaning assigned by Section 27.037, Water Code, as added by this   Act.                (2)  "Commission" means the Texas Commission on   Environmental Quality.                (3)  "Railroad commission" means the Railroad   Commission of Texas.          (b)  On the effective date of this Act:                (1)  all functions and activities performed by the   commission that relate to the regulation of closed-loop geothermal   injection wells under Chapter 27, Water Code, are transferred to   the railroad commission;                (2)  a rule, standard, or form adopted by the   commission that is related to the regulation of closed-loop   geothermal injection wells under Chapter 27, Water Code, is a rule,   standard, or form of the railroad commission and remains in effect   until altered by the railroad commission;                (3)  a proceeding involving the commission that is   related to the regulation of closed-loop geothermal injection wells   under Chapter 27, Water Code, is transferred without change in   status to the railroad commission, and the railroad commission   assumes, without change in status, the position of the commission   in any proceeding relating to the regulation of closed-loop   geothermal injection wells to which the commission is a party;                (4)  all money, contracts, leases, rights, and   obligations of the commission related to closed-loop geothermal   injection wells under Chapter 27, Water Code, are transferred to   the railroad commission;                (5)  all property, including records, in the custody of   the commission related to the regulation of closed-loop geothermal   injection wells under Chapter 27, Water Code, is transferred to the   railroad commission; and                (6)  all money appropriated to the commission for   purposes related to the regulation of closed-loop geothermal   injection wells under Chapter 27, Water Code, is transferred to the   railroad commission.          (c)  Section 27.037, Water Code, as added by this Act, does   not affect the validity of a permit for a closed-loop geothermal   injection well issued before the effective date of this Act.          (d)  Not later than the 90th day after the effective date of   this Act:                (1)  the railroad commission shall issue a substitute   permit under the name and authority of the railroad commission to   each person who on the effective date of this Act holds a valid   permit issued by the commission for a closed-loop geothermal   injection well; and                (2)  the commission shall transmit to the railroad   commission all pending applications for closed-loop geothermal   injection wells submitted to the commission before the effective   date of this Act.          SECTION 3.  This Act takes effect September 1, 2023.