City of Houston Passes Municipal Setting Designation Ordinance Allowing Restrictions on Groundwater Usage and Risk-Based Remediation Plans

The City of Houston passed an ordinance allowing the City to participate in the Texas Municipal Setting Designation ("MSD") program on August 22, 2007.  The MSD program permits cities in Texas to approve of designated properties where groundwater cannot be used for potable purposes.  Once the local government endorses the MSD application, the applicant can apply to the Texas Commission on Environmental Quality ("TCEQ") for an MSD certificate, which then allows the designated area to be taken out of consideration for potable uses of groundwater.  The result is that the area does not have to be investigated or remediated to address potable risks.   Thus, a true risk-based remediation plan can be developed.

The legislation enabling the MSD program was passed in but in 2003 by the Texas Legislature, but he City of Houston had previously decided not to participate in this program. As mayors and other leadership changed, and as many other cities, primarily Dallas, Fort Worth, and other north Texas cities have enacted programs and approved many sites, the City of Houston has come around to allowing MSDs in its jurisdiction.

In North Texas, we have found the MSD program to be of significant assistance in moving forward with acquisition, sale, and development of contaminated properties.  We would expect similar results in Houston.

For answers to Frequently Asked Questions on MSDs, please see my prior post on the topic by clicking here.