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Signed Into Law
Signed May 13, 2025Effective 2025-09-01
SB1145

Regular Session

Relating to the authority of the Texas Commission on Environmental Quality to issue permits for the land application of water produced from certain mining and oil and gas extraction operations.

Government Affairs & Regulatory Compliance Analysis

SB1145: Government Affairs Overview

Effective September 1, 2025, jurisdiction for the permitting of land application of treated produced water transfers from the Railroad Commission of Texas (RRC) to the Texas Commission on Environmental Quality (TCEQ). This legislation moves surface water management from an extraction-friendly regulatory framework to a rigorous environmental discharge framework, subjecting operators to stricter public scrutiny, higher testing standards, and new liability exposures.

Sen. Brian Birdwell·Senate Bill·Regular Session

Moderate
Medium Cost
Effective:2025-09-01
Business Impact

Who SB1145 Affects

This legislation has regulatory implications for the following Texas businesses and organizations:

Regulatory Priority: moderate

Notable regulatory updates (effective 2025-09-01). Consider how these changes may affect your operations.

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Water

Affected business types:

  • Water utilities
  • Wastewater treatment facilities
  • Municipal water districts
  • Agricultural water users
View all water legislation

Key Operational Considerations

  • 1Technical Staffing: Your regulatory team must transition from RRC Form H-11 workflows to complex TCEQ Texas Land Application Permit (TLAP) protocols.

Estimated Cost Impact

mediumModerate costs expected for implementation.

Enforcing Agencies

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SB1145
Moderate
Relating to the authority of the Texas Commission on Environmental Quality to issue permits for the land application of water produced from certain mi...
Moderate Compliance Urgency
Requires near-term attention
Cost Impact
Medium
Effective
2025-09-01
Enforcing Agencies
RRCTCEQ
Primary Author: Sen. Brian Birdwell
89th Texas Legislature
jdkey.com
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Compliance Analysis

Key implementation requirements and action items for compliance with this legislation

Implementation Timeline

  • Effective Date: September 1, 2025.
  • Compliance Deadline: Strict Jurisdictional Cutoff. Applications filed before September 1, 2025, remain under RRC authority. Applications filed on or after this date fall under TCEQ jurisdiction.
  • Agency Rulemaking: High Risk of Delay. The Legislative Budget Board anticipates zero permits issued in Fiscal Year 2026 and only 10 in FY2027. This indicates a "Regulatory Dead Zone" of 12–18 months post-enactment while TCEQ hires staff and drafts standards.

Immediate Action Plan

  • 1. File Early: If you have a viable land application project, file the permit application with the RRC before August 31, 2025, to lock in the current regulatory regime.
  • 2. Audit Insurance: Review Pollution Legal Liability (PLL) policies. Ensure coverage extends to "permitted land application" under TCEQ jurisdiction, as this increases exposure to citizen suits.
  • 3. Join the Rulemaking Working Group: Your organization must participate in the TCEQ public comment period in late 2025/early 2026 to influence the definition of "Beneficial Use."
  • 4. Update Vendor Lists: Identify which environmental labs are committing to the new TCEQ accreditation fields for produced water constituents.

Operational Changes Required

Contracts

  • Surface Use Agreements (SUAs): Review all SUAs immediately. Clauses referencing RRC standards for surface application will be legally obsolete for new projects post-2025. You must amend agreements to indemnify against TCEQ-specific violations.
  • Master Service Agreements (MSAs): Water treatment vendors must contractually guarantee that their output meets forthcoming TCEQ "Beneficial Use" standards. Failure to meet these standards shifts liability for unpermitted waste disposal back to the operator.

Hiring/Training

  • Lab Vendor Audit: You must verify your third-party laboratories are preparing for new TCEQ accreditations. The state anticipates 175 labs will need to add 7–10 new fields of accreditation by FY2026 to test for produced water constituents.
  • Technical Staffing: Your regulatory team must transition from RRC Form H-11 workflows to complex TCEQ Texas Land Application Permit (TLAP) protocols.

Reporting & Record-Keeping

  • Proof of Beneficial Use: You must document the agronomic or industrial necessity of the water application. Under TCEQ rules, application without a proven beneficial use is classified as illegal disposal.
  • Discharge Monitoring: Prepare for monthly or quarterly Discharge Monitoring Reports (DMRs) tracking flow and pollutant loading, subject to public record.

Fees & Costs

  • Permit Application Fee: Anticipate a new fee of $1,250 per application (New/Amended) or $1,215 (Renewal).
  • Annual Water Quality Fee: Minimum $1,250/year per permit, scaling up based on volume and pollutant concentration.
  • Lab Costs: Expect increased vendor pricing to offset the cost of new state-mandated accreditations.

Strategic Ambiguities & Considerations

  • "Beneficial Use" Definition: The statute requires TCEQ to define this. If the agency adopts a narrow definition (e.g., strictly agricultural irrigation) versus a broad one (e.g., industrial dust suppression), commercial viability for water midstream companies could be severely impacted.
  • Pollutant Limits: The law requires standards to "prevent pollution." It is currently unclear if TCEQ will apply Drinking Water Standards (prohibitively expensive to treat) or Agricultural Standards (commercially viable). This will be determined during the FY2026 rulemaking process.

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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.

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Legislative Timeline

This bill's path through the Texas Legislature

Filed
Feb 6, 2025
Passed Senate
Mar 12, 2025
Passed House
Apr 29, 2025
Signed
May 13, 2025
Effective
Sep 1, 2025
TopicsEnvironmentEnvironment--waterMines & Mineral ResourcesOil & GasPermitsEnvironmental Quality, Texas Commission OnRailroad Commission
03

Senate Authors

Sen. Brian BirdwellRepublican · Primary Author
Joint Authors
Coauthors (2)

House Sponsors

Rep. Brooks LandgrafRepublican · Primary Sponsor
Joint Sponsors

Bill Text(with markup)

View bill text in multiple formats on Texas Legislature website

Fiscal NoteView Original

Related Legislation

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More from Sen. Brian Birdwell

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Related by Topic

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Quick Reference

Frequently Asked Questions

Common questions about SB1145

Q

What does Texas SB1145 do?

Effective September 1, 2025, jurisdiction for the permitting of land application of treated produced water transfers from the Railroad Commission of Texas (RRC) to the Texas Commission on Environmental Quality (TCEQ). This legislation moves surface water management from an extraction-friendly regulatory framework to a rigorous environmental discharge framework, subjecting operators to stricter public scrutiny, higher testing standards, and new liability exposures.

Q

Who authored SB1145?

SB1145 was authored by Texas Senator Brian Birdwell during the Regular Session.

Q

When was SB1145 signed into law?

SB1145 was signed into law by Governor Greg Abbott on May 13, 2025.

Q

Which agencies enforce SB1145?

SB1145 is enforced by Railroad Commission of Texas (RRC) (retains authority for non-treated/non-beneficial use waste) and Texas Commission on Environmental Quality (TCEQ).

Q

How significant are the changes in SB1145?

The regulatory priority for SB1145 is rated as "moderate". Businesses and organizations should review the legislation to understand potential impacts.

Q

What is the cost impact of SB1145?

The cost impact of SB1145 is estimated as "medium". This may vary based on industry and implementation requirements.

Q

What topics does SB1145 address?

SB1145 addresses topics including environment, environment--water, mines & mineral resources, oil & gas and permits.

Q

What are the key dates for SB1145?

Key dates for SB1145: Effective date is 2025-09-01. Rulemaking: Must adopt standards for land application of treated produced water, specifically to prevent pollution of surface and subsurface water. (No statutory deadline (Fiscal Note implies FY2026 implementation)). Consult with legal counsel regarding applicability.

Need Strategic Guidance on This Legislation?

JD Key Consulting is an Austin, Texas-based government affairs firm led by James Dickey, former Chairman of the Republican Party of Texas. We specialize in Texas regulatory compliance and legislative strategy for data centers, energy, banking, and manufacturing.

Legislative data provided by LegiScanLast updated: January 11, 2026