Relating to the inspection of the location of a proposed Class I injection well.
ModeratePlan for compliance
Low Cost
Effective:2025-05-28
Enforcing Agencies
Texas Commission on Environmental Quality (TCEQ)
01
Compliance Analysis
Key implementation requirements and action items for compliance with this legislation
Implementation Timeline
Effective Date: September 1, 2025.
Compliance Deadline: Applies immediately to all Class I injection well permit applications filed on or after September 1, 2025. Applications filed before this date remain under the previous TCEQ inspection protocol.
Agency Rulemaking: While no formal rulemaking deadline is mandated, TCEQ must establish internal protocols to review third-party virtual reports. Expect a "regulatory gray zone" between September 2025 and March 2026 where the definition of "appropriate information sources" for virtual inspections remains fluid.
Immediate Action Plan
Audit Pending Applications: Determine if current projects should be filed before September 1, 2025 (to utilize state inspection) or delayed until after (to utilize faster third-party inspection).
Update Vendor MSAs: Insert liability clauses regarding the rejection of virtual inspection reports.
Establish Data Standards: Define internal requirements for "virtual inspection" data (e.g., imagery must be <6 months old and <50cm resolution) to preempt TCEQ rejection.
Secure Licensure Proof: Obtain current P.E./P.G. license validations for all consultants slated to work on upcoming Class I applications.
Operational Changes Required
Contracts
Master Service Agreements (MSAs) with environmental engineering and geoscience firms require immediate amendment.
Indemnification: You must strengthen indemnification clauses. If TCEQ rejects a virtual inspection report due to poor data quality, the vendor must bear the cost of the subsequent required in-person inspection.
Scope of Work: Contracts must explicitly require the vendor to produce a certification of "local conditions" and "probable well effects" compliant with Water Code Sections 27.051, 27.055, and 27.056.
Hiring/Training
Vendor Verification: You do not need new internal staff, but you must verify that your external consultants hold active Texas licenses (P.E. or P.G.). Unlicensed "environmental specialists" are no longer sufficient for this specific reporting requirement.
Project Management: Train regulatory teams to integrate the "Inspection Report" into the pre-application phase; this is no longer a post-filing step handled by the state.
Reporting & Record-Keeping
New Filing Requirement: A certified Inspection Report must accompany the permit application.
Data Archiving: If utilizing virtual inspections, you must archive the specific satellite imagery or aerial data used. This data must be retrievable for audit to prove the imagery was current at the time of the application.
Fees & Costs
Cost Shift: While state fees do not increase, the applicant now bears the direct cost of the third-party inspection.
Budgeting: Allocate funds for high-resolution satellite imagery or aerial drone surveys if opting for virtual inspection, as free public sources (e.g., basic Google Earth) may not meet the evidentiary standard for complex sites.
Strategic Ambiguities & Considerations
The "May" Discretion: Section 27.016(b) grants the TCEQ Executive Director the authority to accept a third-party report but does not mandate it. The Director retains the right to reject a report and require an in-person inspection if the virtual data "reveals an issue." The statute does not define the threshold of an "issue." Until TCEQ provides guidance, any ambiguity in satellite imagery will likely trigger a rejection.
"Appropriate Information Sources": The law allows virtual inspections via "other appropriate information sources" without defining them. It is unclear if older USGS maps or lower-resolution commercial satellite data will suffice.
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Information presented is for general knowledge only and is provided without warranty, express or implied. Consult qualified government affairs professionals and legal counsel before making compliance decisions.
The process for acquiring state approval for the drilling of an injection well can sometimes be lengthy due to the complexity and volume of wells requiring inspection, which may lead to the Texas Commission on Environmental Quality (TCEQ) being overburdened with inspections. Under current law, the executive director of the TCEQ is required to have an inspection made of the location of the proposed disposal well to determine the local conditions and the probable effect of the well, which could cause delays in the process of establishing a well due to limited availability of approved inspectors. H.B. 1238 seeks to address this issue by authorizing the executive director of TCEQ to satisfy the inspection requirements for a proposed Class I injection well by accepting an inspection report prepared by an engineer or geoscientist licensed in Texas.
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 this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency, or institution.
ANALYSIS
H.B. 1238 amends the Water Code to authorize the executive director of the Texas Commission on Environmental Quality (TCEQ) to satisfy the inspection requirements for a proposed Class I injection well by accepting an inspection report prepared by an engineer or geoscientist licensed in Texas. The bill sets out the following with respect to such a report:
·a requirement that the report confirm that the engineer or geoscientist inspected the location of the proposed injection well to determine the local conditions and the probable effect of the well;
·a requirement that the report state the engineer's or geoscientist's determination regarding the applicable requirements for the setting of casing; and
·an authorization for the engineer or geoscientist to conduct the inspection in person at the location of the proposed injection well or virtually through satellite or other aerial imagery, mapping software, or other appropriate information sources.
The bill applies only to a permit application filed with the TCEQ on or after the bill's effective date. A permit application filed before the bill's effective date is subject to the law in effect on the date the application is filed, and that law is continued in effect for that purpose.
HB1238 fundamentally shifts the burden of site verification for Class I injection wells from the Texas Commission on Environmental Quality (TCEQ) to the applicant. Effective September 1, 2025, operators must engage private, state-licensed engineers or geoscientists to conduct site inspections—physically or virtually—prior to permit submission. This expedites the timeline but transfers liability for site suitability assessment directly to the operator and their vendors.
Q
Who authored HB1238?
HB1238 was authored by Texas Representative Ryan Guillen during the Regular Session.
Q
When was HB1238 signed into law?
HB1238 was signed into law by Governor Greg Abbott on May 28, 2025.
Q
Which agencies enforce HB1238?
HB1238 is enforced by Texas Commission on Environmental Quality (TCEQ).
Q
How urgent is compliance with HB1238?
The compliance urgency for HB1238 is rated as "moderate". Businesses and organizations should review the requirements and timeline to ensure timely compliance.
Q
What is the cost impact of HB1238?
The cost impact of HB1238 is estimated as "low". This may vary based on industry and implementation requirements.
Q
What topics does HB1238 address?
HB1238 addresses topics including environment, environment--water, environmental quality, texas commission on and injection wells.
Legislative data provided by LegiScanLast updated: November 25, 2025
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