HB 1682 proposes amendments to the Water Code to establish a framework for the division and use of civil penalties recovered in environmental violation cases brought by local governments. The bill specifies that the state's portion of the penalties, up to a certain amount, will be partially allocated to a newly created Special Environmental Remediation Fund. This fund will support a grant program administered by the Texas Commission on Environmental Quality (TCEQ) to provide financial assistance to counties and municipalities for environmental remediation projects. The commission is tasked with creating rules for the grant program, including criteria for eligibility, application, and monitoring.