PRODUCED WATER FACILITY INSURANCE

HB 326 requires owners or operators of produced water facilities (which handle wastewater from oil and gas drilling) to obtain specific insurance before receiving state permits for treatment, reuse, discharge, or transport of this water. The insurance must cover all foreseeable costs of spills, including cleanup, remediation, long-term monitoring, and public health impacts. It also establishes that multiple parties involved in produced water activities could be held jointly and severally liable for damages caused by their operations. The law takes effect July 1, 2026, and applies directly to oil and gas facilities handling produced water.