By: Rodriguez H.B. No. 2857 73R6831 MI-D A BILL TO BE ENTITLED 1-1 AN ACT 1-2 relating to the creation of the Edwards Augmentation Authority. 1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-4 ARTICLE 1. GENERAL PROVISIONS 1-5 SECTION 1.01. PURPOSES. The purposes of this Act are: 1-6 (1) to provide for the construction and demonstration 1-7 of various methods of augmenting stream flows and spring flows in 1-8 the areas of and near San Marcos Springs and Comal Springs to 1-9 maintain endangered species under all conditions, including a 1-10 repeat of the drought of record; 1-11 (2) to provide, through actual demonstration projects, 1-12 the strongest possible evidence to federal and state legislative, 1-13 judicial, and administrative bodies and to the public of how 1-14 endangered species can be maintained and protected with 1-15 augmentation and recharge waters; and 1-16 (3) to provide for the preparation of: 1-17 (A) a plan to maximize the long-term sustainable 1-18 yield of the Edwards Aquifer with recharge and augmentation 1-19 projects; and 1-20 (B) a comparison of the economic costs, 1-21 engineering requirements, and environmental impacts of the various 1-22 methods proposed to meet the long-term water supply needs of the 1-23 Edwards Aquifer region in the San Antonio area while maintaining 1-24 the endangered species in the areas of the springs under all 2-1 conditions, including a repeat of the drought of record. 2-2 SECTION 1.02. DEFINITIONS. In this Act: 2-3 (1) "Authority" means the Edwards Augmentation 2-4 Authority. 2-5 (2) "Board" means the board of directors of the 2-6 authority. 2-7 (3) "Edwards Aquifer" means that portion of an arcuate 2-8 belt of porous, water-bearing, predominantly carbonate rocks known 2-9 as the Edwards and Associated Limestones in the Balcones Fault Zone 2-10 trending from west to east to northeast in Kinney, Uvalde, Medina, 2-11 Atascosa, Bexar, Guadalupe, and Comal counties, and in Hays County 2-12 south of the hydrologic division near Kyle that separates flow 2-13 toward the San Marcos River from flow to the Colorado River Basin; 2-14 and composed of the Salmon Peak Limestone, McKnight Formation, West 2-15 Nueces Formation, Devil's River Limestone, Person Formation, Kainer 2-16 Formation, Edwards Formation, Georgetown Formation, and Walnut 2-17 Formation. 2-18 (4) "Springs" means San Marcos Springs and Comal 2-19 Springs. 2-20 SECTION 1.03. JURISDICTION OF COMMISSION. The rights, 2-21 powers, privileges, authority, and functions of the authority and 2-22 of each local authority are subject to the continuing right of 2-23 supervision of the state to be exercised by and through the Texas 2-24 Natural Resource Conservation Commission. 2-25 ARTICLE 2. EDWARDS AUGMENTATION AUTHORITY 2-26 SECTION 2.01. CREATION OF AUTHORITY. (a) A conservation 2-27 and reclamation authority to be known as the Edwards Augmentation 3-1 Authority is created. 3-2 (b) The authority is created under and is essential to 3-3 accomplish the purposes of Article XVI, Section 59, of the Texas 3-4 Constitution. 3-5 SECTION 2.02. BOUNDARIES OF AUTHORITY. The authority 3-6 includes all the territory within the counties of Bexar, Comal, 3-7 Hays, Medina, and Uvalde. 3-8 SECTION 2.03. FINDING OF BENEFIT. All of the land and other 3-9 property included in the boundaries of the authority will be 3-10 benefited by the works and projects that are to be accomplished by 3-11 the authority under the powers conferred by Article XVI, Section 3-12 59, of the Texas Constitution. The authority is created to serve a 3-13 public use and benefit. 3-14 SECTION 2.04. CONFIRMATION ELECTION NOT REQUIRED. An 3-15 election to confirm the creation of the authority is not required. 3-16 ARTICLE 3. ADMINISTRATION OF AUTHORITY 3-17 SECTION 3.01. BOARD OF DIRECTORS. (a) The authority is 3-18 governed by a board of 18 directors. 3-19 (b) The board consists of: 3-20 (1) six members who are the directors of the Edwards 3-21 Underground Water District elected from Bexar County; 3-22 (2) three members who are the directors of the Edwards 3-23 Underground Water District elected from Hays County; 3-24 (3) three members who are the directors of the Edwards 3-25 Underground Water District elected from Comal County; 3-26 (4) three members who are elected from among its 3-27 members by the board of directors of the Medina County Underground 4-1 Water Conservation District; and 4-2 (5) three members from Uvalde County who are: 4-3 (A) elected by the board of directors of the 4-4 Uvalde County Underground Water Conservation District from among 4-5 its members if that district is validated by or created under an 4-6 Act of the 73rd Legislature, Regular Session, 1993; or 4-7 (B) appointed by the commissioners court of 4-8 Uvalde County if the Uvalde County Underground Water Conservation 4-9 District is not validated by or created under an Act of the 73rd 4-10 Legislature, Regular Session, 1993. 4-11 SECTION 3.02. TERM OF OFFICE. (a) A director who is a 4-12 member of the board of directors of an underground water 4-13 conservation district or of the Edwards Underground Water District 4-14 serves on the authority board for the time that the director serves 4-15 on the district board. 4-16 (b) A director who is appointed by the commissioners court 4-17 serves a term of four years. 4-18 SECTION 3.03. OATH OF OFFICE. (a) Each director shall take 4-19 the oath of office prescribed by the constitution for public 4-20 officers. 4-21 (b) The oath shall be filed with the authority and retained 4-22 in its records. 4-23 SECTION 3.04. ORGANIZATION OF BOARD. At its first meeting 4-24 after the creation of the authority, the board shall organize by 4-25 electing a chairman, a vice-chairman, a secretary, and other 4-26 officers that in the judgment of the board are necessary. 4-27 SECTION 3.05. COMPENSATION OF DIRECTORS. Directors receive 5-1 no compensation for service on the board but are entitled to 5-2 receive reimbursement for actual and necessary expenses incurred in 5-3 the performance of their duties. 5-4 SECTION 3.06. QUORUM; VOTING. (a) A majority of the 5-5 membership of the board constitutes a quorum. The concurrence of a 5-6 majority of the membership of the board is required for transacting 5-7 business of the authority. 5-8 (b) Each director is entitled to one vote. The chairman is 5-9 entitled to a second vote if necessary to break a tie. 5-10 SECTION 3.07. COUNTY EXECUTIVE COMMITTEES. (a) The county 5-11 executive committee for each county within the authority consists 5-12 of the board members from that county as described in Section 3.01 5-13 of this Act. A county executive committee has jurisdiction over 5-14 the county it represents. 5-15 (b) Each executive committee shall select a chairman from 5-16 among its members. The chairman is entitled to a second vote if 5-17 necessary to break a tie. 5-18 (c) A majority of the membership of an executive committee 5-19 constitutes a quorum. The concurrence of a majority of the 5-20 membership of the committee is required for transacting business of 5-21 the committee. 5-22 SECTION 3.08. GENERAL MANAGER. The board may employ a 5-23 general manager to manage and conduct the business of the authority 5-24 subject to orders of the board. 5-25 SECTION 3.09. EMPLOYEES AND CONSULTANTS. The board may 5-26 employ staff and consultants as necessary to carry out the duties 5-27 of the authority. 6-1 ARTICLE 4. POWERS AND DUTIES OF AUTHORITY 6-2 SECTION 4.01. EVALUATION OF AUGMENTATION METHODS. (a) With 6-3 the goal of finding as many methods as possible for providing for 6-4 the reliable maintenance of the numbers, reproductive capacity, and 6-5 distribution range of endangered species under all conditions, 6-6 including a repeat of the drought of record, the authority shall 6-7 collect information on and evaluate the following augmentation 6-8 methods: 6-9 (1) pumping aquifer water from various locations in 6-10 the Edwards Aquifer into a streambed at, below, above, adjacent to, 6-11 or in the area of the springs; 6-12 (2) pumping aquifer water from various locations in 6-13 the Edwards Aquifer and injecting or percolating the water back 6-14 into the aquifer in locations near or at the springs, or in distant 6-15 flowpaths that result in waters issuing from the springs; 6-16 (3) recirculating the waters of the San Marcos and 6-17 Comal rivers, whether derived from augmented flow or otherwise, 6-18 from points below the springs back into the aquifer or back into 6-19 the streambed at, below, above, adjacent to, or in the area of the 6-20 springs; 6-21 (4) providing enhanced recharge to the Edwards Aquifer 6-22 by percolation or injection from diversions of water from streams 6-23 above or crossing the aquifer, including the Guadalupe River, 6-24 Blanco River, Cibolo Creek, Medina River, San Antonio River, Frio 6-25 River, Dry Frio River, Nueces River, or tributaries of those 6-26 streams, and delivering water from those sources to a streambed at, 6-27 below, above, adjacent to, or in the area of the springs; 7-1 (5) providing enhanced recharge to the Edwards Aquifer 7-2 by percolation or injection from new or additional diversions of 7-3 water from streams outside the aquifer area, using both 7-4 intermittent and firm waters, and delivering water from those 7-5 sources to a streambed at, below, above, adjacent to, or in the 7-6 area of the springs; 7-7 (6) providing enhanced recharge to the Edwards Aquifer 7-8 at various sites, including Medina Lake, Upper Cibolo Creek, Hueco 7-9 Springs, nearby recharge sites for San Marcos Springs, nearby 7-10 recharge sites for Comal Springs, and areas of the Edwards Aquifer 7-11 or other aquifers where injection wells or natural percolation into 7-12 an aquifer may be considered; 7-13 (7) providing for elevation of the existing dams 7-14 constructed in the areas below the springs' discharge and 7-15 installing flow control valves to regulate spring discharge during 7-16 periods of high aquifer levels to make more water available for 7-17 release in time of drought; 7-18 (8) providing enhanced recharge by percolation or 7-19 injection to the Edwards Aquifer from water stored in other 7-20 aquifers, or providing water to the streambeds in the area of the 7-21 springs from waters stored in other aquifers; 7-22 (9) adding recharge to the Edwards Aquifer from 7-23 existing reservoirs lying above, over, or near the Edwards Aquifer, 7-24 including Canyon Lake and Medina Lake; 7-25 (10) adding recharge by injection or percolation at 7-26 places in or above the Edwards Aquifer, whether in the Edwards 7-27 Aquifer itself or in other aquifers that flow waters into the 8-1 Edwards Aquifer, where the residency time of waters is sufficiently 8-2 long to give benefits to aquifer levels and spring flow over a long 8-3 period of time; 8-4 (11) other augmentation methods that may be suggested 8-5 by a consultant hired by the authority; and 8-6 (12) any combination of the listed augmentation 8-7 methods. 8-8 (b) The evaluations required by Subsection (a) of this 8-9 section shall include for each augmentation method considered a 8-10 description or estimate of: 8-11 (1) engineering requirements; 8-12 (2) economic costs; 8-13 (3) environmental consequences; and 8-14 (4) reliability of each method in providing for the 8-15 maintenance of numbers, reproductive capacity, and distribution 8-16 range of endangered species under all conditions, including a 8-17 repeat of the drought of record. 8-18 (c) The authority, in seeking information on augmentation 8-19 methods, may consult with and consider augmentation methods 8-20 designed to maintain endangered species suggested by: 8-21 (1) government agencies, including: 8-22 (A) the Texas Water Development Board; 8-23 (B) the Edwards Underground Water District; 8-24 (C) the Texas Natural Resource Conservation 8-25 Commission; 8-26 (D) the Parks and Wildlife Department; 8-27 (E) the United States Geological Survey; 9-1 (F) the United States Fish and Wildlife Service; 9-2 (G) the San Antonio Water System; 9-3 (H) the city of San Antonio; 9-4 (I) the San Antonio River Authority; 9-5 (J) the Guadalupe-Blanco River Authority; and 9-6 (K) the Nueces River Authority; and 9-7 (2) private organizations and individuals, including 9-8 environmental organizations and members of the public who 9-9 participate in public hearings held under Subsection (d) of this 9-10 section. 9-11 (d) In collecting information on augmentation methods as 9-12 required by this section, the authority shall hold at least one 9-13 public hearing in each county within the authority. 9-14 SECTION 4.02. CONSTRUCTION OF DEMONSTRATION AUGMENTATION 9-15 PROJECTS; EMINENT DOMAIN. (a) The authority shall construct 9-16 augmentation projects to demonstrate the augmentation methods the 9-17 authority determines to be the most reliable and feasible for 9-18 maintaining the numbers, reproductive capacity, and distribution 9-19 range of endangered species. The authority has the power of 9-20 eminent domain for projects constructed by the authority under this 9-21 section. 9-22 (b) The authority shall contract for the construction of at 9-23 least one demonstration augmentation project under this section not 9-24 later than November 1, 1994. 9-25 (c) If the authority does not contract to construct an 9-26 augmentation project within the time required, a county executive 9-27 committee may contract to construct augmentation projects in the 10-1 county represented by the committee. The committee may use money 10-2 retained under Section 5.01 of this Act or the proceeds of bonds 10-3 issued by the committee under Section 5.03 of this Act to pay for 10-4 county augmentation projects. A county executive committee has the 10-5 power of eminent domain for projects constructed by the committee 10-6 under this section. 10-7 SECTION 4.03. PREPARATION OF LONG-TERM PLAN. (a) The 10-8 authority shall prepare a plan or plans for use of augmentation and 10-9 recharge projects to maximize the long-term sustainable yield of 10-10 the Edwards Aquifer. 10-11 (b) A plan prepared under this section shall: 10-12 (1) describe or estimate: 10-13 (A) economic costs of implementing the plan; 10-14 (B) engineering requirements; 10-15 (C) environmental impacts; and 10-16 (D) reliability of the plan for maintaining 10-17 endangered species under all conditions, including a repeat of the 10-18 drought of record; and 10-19 (2) compare the plan with other proposed plans for 10-20 providing water to maintain endangered species by means other than 10-21 augmentation. 10-22 (c) Comparisons prepared under Subsection (b)(2) of this 10-23 section: 10-24 (1) shall include the descriptions or estimates 10-25 required by Subsection (b)(1) of this section; 10-26 (2) shall include any plan proposed by a state or 10-27 federal agency or court; and 11-1 (3) may, at the discretion of the authority, include 11-2 comparisons of proposed legislation for the management of the 11-3 Edwards Aquifer that contains provisions for the maintenance of 11-4 endangered species in the area of the springs. 11-5 (d) Not later than November 1, 1995, the authority shall 11-6 provide copies of a completed plan to the governor, the lieutenant 11-7 governor, the speaker of the house of representatives, and the 11-8 Texas Water Development Board. The authority shall make copies of 11-9 the plan available on request to state and federal agencies and 11-10 courts, to members of congress, and to the public. 11-11 ARTICLE 5. FINANCIAL PROVISIONS 11-12 SECTION 5.01. RESERVE FUND OF EDWARDS UNDERGROUND WATER 11-13 DISTRICT. (a) The Edwards Underground Water District shall 11-14 disburse the district's reserve fund to the county executive 11-15 committees. Each county executive committee shall receive an 11-16 amount proportionate to the amount contributed to the fund by the 11-17 county it represents. 11-18 (b) A county executive committee may transfer to the 11-19 authority the entire amount disbursed to the committee under this 11-20 section. Each county executive committee shall transfer to the 11-21 authority not less than 25 percent of that amount. 11-22 (c) A county executive committee that retains any portion of 11-23 the amount disbursed to the committee under this section may use 11-24 the money only to pay for the construction of augmentation projects 11-25 in the county represented by the committee. 11-26 (d) The authority may use money transferred to the authority 11-27 under this section for: 12-1 (1) administrative costs; 12-2 (2) preparing the evaluation and plans required by 12-3 Article 4 of this Act; and 12-4 (3) planning and constructing augmentation projects 12-5 required by Section 4.02 of this Act. 12-6 SECTION 5.02. USER FEES. (a) A county executive committee 12-7 may impose a user fee on persons who pump water from the Edwards 12-8 Aquifer in the committee's jurisdiction. 12-9 (b) A fee imposed under this section may not be more than 12-10 $50 per acre-foot per year or less than $10 per acre-foot per year. 12-11 (c) A county executive committee that imposes a fee under 12-12 this section shall exempt from that fee two acre-feet per acre per 12-13 year for irrigated agriculture in existence on September 1, 1993. 12-14 (d) Fees collected under this section may be used to secure 12-15 bonds issued under Section 5.03 of this Act. 12-16 SECTION 5.03. BONDS. (a) The authority may issue revenue 12-17 bonds secured by user fees imposed under Section 5.02 of this Act 12-18 if the county executive committee that imposed the fee by 12-19 resolution agrees to that use of fee revenues. 12-20 (b) If the authority does not contract to construct 12-21 augmentation projects under Section 4.02 of this Act before 12-22 November 1, 1994, a county executive committee may issue revenue 12-23 bonds secured by user fees imposed by that committee to the extent 12-24 that the fees are not already committed. 12-25 (c) Proceeds from bonds issued under this section may be 12-26 used only for constructing augmentation and recharge projects in 12-27 the jurisdiction of the entity issuing the bonds. 13-1 (d) The issuing entity by resolution may authorize the 13-2 issuance of revenue bonds in various series or issues. Bonds may 13-3 mature serially or otherwise not more than 40 years from their date 13-4 and shall bear interest at any rate permitted by the constitution 13-5 and laws of the state. The bonds and interest coupons, if any, are 13-6 investment securities under the terms of Chapter 8, 13-7 Business & Commerce Code, and may be issued registrable as to 13-8 principal or as to both principal and interest and may be made 13-9 redeemable before maturity, at the option of the issuing entity, or 13-10 may contain a mandatory redemption provision. The bonds may be 13-11 issued in the form, denominations, and manner and under the terms, 13-12 conditions, and details and shall be signed and executed as 13-13 directed by the issuing entity in the resolution authorizing their 13-14 issuance. 13-15 (e) The resolutions of the issuing entity authorizing the 13-16 issuance of bonds may also prohibit the further issuance of bonds 13-17 or other obligations payable from the pledged revenue or may 13-18 reserve the right to issue additional bonds to be secured by a 13-19 pledge of and payable from the pledged revenue on a parity with or 13-20 subordinate to the lien and pledge in support of the bonds being 13-21 issued. 13-22 (f) The resolutions of the issuing entity authorizing the 13-23 issuance of the bonds may contain other provisions and covenants as 13-24 the issuing entity may determine. 13-25 (g) The issuing entity by resolution may authorize the 13-26 execution or any other proceedings or instruments necessary and 13-27 convenient in the issuance of the bonds. 14-1 (h) The bonds issued under this section must be submitted to 14-2 the attorney general for examination. If the attorney general 14-3 finds that the bonds have been authorized in accordance with law, 14-4 the attorney general shall approve them, and the comptroller shall 14-5 register them. After the approval and registration of bonds, the 14-6 bonds are incontestable in any court or other forum, for any 14-7 reason, and are valid and binding obligations in accordance with 14-8 their terms for all purposes. 14-9 (i) The bonds are legal and authorized investments for: 14-10 (1) banks; 14-11 (2) savings banks; 14-12 (3) trust companies; 14-13 (4) savings and loan associations; 14-14 (5) insurance companies; 14-15 (6) fiduciaries; 14-16 (7) trustees; 14-17 (8) guardians; and 14-18 (9) sinking funds of cities, counties, school 14-19 districts, and other political subdivisions of the state and other 14-20 public funds of the state and its agencies, including the permanent 14-21 school fund. 14-22 (j) The bonds are eligible to secure deposits of public 14-23 funds of the state and cities, counties, school districts, and 14-24 other political subdivisions of the state. The bonds are lawful 14-25 and sufficient security for deposits to the extent of their value 14-26 when accompanied by all unmatured coupons. 14-27 SECTION 5.04. DISPOSITION OF BOND PROCEEDS. (a) Except as 15-1 provided by Subsections (b) and (c) of this section, proceeds from 15-2 the sale of bonds issued under Section 5.03 of this Act, less the 15-3 administrative costs of issuing the bonds, shall be deposited by 15-4 the issuing entity in a special account and used for the 15-5 construction of augmentation projects under Section 4.02 of this 15-6 Act. 15-7 (b) The issuing entity may transfer from the special account 15-8 to the interest and sinking account an amount that, together with 15-9 the accrued interest received, is sufficient to pay interest 15-10 coupons coming due during the fiscal year in which the bonds are 15-11 sold and to establish appropriate reserves. 15-12 (c) Proceeds from the sale of bonds issued under this 15-13 article may be invested in the manner and in the obligations or 15-14 securities specified in the resolution authorizing the bonds or in 15-15 supplemental resolutions of the issuing entity. 15-16 ARTICLE 6. MISCELLANEOUS PROVISIONS 15-17 SECTION 6.01. APPOINTMENTS. (a) If the Uvalde Underground 15-18 Water Conservation District is not validated or created by an Act 15-19 of the 73rd Legislature during its Regular Session, the 15-20 commissioners court of Uvalde County shall appoint three directors 15-21 to the board of directors of the authority, as required by Section 15-22 3.01(b)(5)(B) of this Act, not later than 30 days after the 15-23 effective date of this Act. 15-24 (b) The board of directors of the Medina County Underground 15-25 Water Conservation District shall appoint three directors to the 15-26 board of directors of the authority, as required by Section 15-27 3.01(b)(4) of this Act, not later than 30 days after the effective 16-1 date of this Act. 16-2 SECTION 6.02. TRANSFER OF FUNDS. (a) The Edwards 16-3 Underground Water District shall transfer to a county executive 16-4 committee the committee's proportionate share of the district's 16-5 reserve fund, as required by Section 5.01(a) of this Act, not later 16-6 than 30 days after the creation of the committee. 16-7 (b) A county executive committee shall transfer to the 16-8 authority 25 percent of the county's proportionate share of the 16-9 reserve fund, as required by Section 5.01(b) of this Act, on 16-10 receipt of that share. 16-11 SECTION 6.03. EFFECTIVE DATE. This Act takes effect 16-12 September 1, 1993. 16-13 SECTION 6.04. EMERGENCY. The importance of this legislation 16-14 and the crowded condition of the calendars in both houses create an 16-15 emergency and an imperative public necessity that the 16-16 constitutional rule requiring bills to be read on three several 16-17 days in each house be suspended, and this rule is hereby suspended.