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.