BILL ANALYSIS C.S.H.B. 753 By: King 5-2-95 Committee Report (Substituted) BACKGROUND During the 73rd Session, the Legislature passed legislation regarding the Edwards Aquifer. As a result of this legislation, the Edwards Aquifer Authority was created to regulate the Edwards Aquifer region. The U.S. Justice Department disallowed the Edwards Aquifer Authority due to voting rights violations, and the management plan has not yet gone into effect. The proposed management plan relied primarily on strict pumping limits which placed a tremendous burden on pumpers and citizens who rely on the aquifer throughout the region. C.S.H.B. 753 proposes to manage the Edwards Aquifer region through an Interlocal Contract agreed to by the Edwards Underground Water District (EUWD), Uvalde County Underground Water Conservation District (UCUWCD), and the Medina County Underground Water Conservation District (MCUWCD). The EUWD, the UCUWCD, and the MCUWD have been pre-approved by the Justice Department and are currently in operation. The Interlocal proposes that the EUWD regulate water management in Bexar, Comal, and the Hays Counties, UCUWCD regulate water management in Uvalde County, and MCUWCD regulate water in Medina County. PURPOSE To implement the Interlocal Contract as the statutory authority of the Edwards Underground Water District, the Medina County Underground Water Conservation District, and the Uvalde County Underground Water Conservation District. RULEMAKING AUTHORITY It is in the opinion of the Committee that this bill doesn't create any additional rule making authority. SECTION BY SECTION ANALYSIS SECTION 1. COMPREHENSIVE MANAGEMENT PLAN. The Edwards Underground Water District, the Medina County Underground Water Conservation District, and the Uvalde County Underground Water Conservation District agree upon regional management of the Edwards Aquifer. SECTION 2. DEFINITIONS. 2.1 Defines "Beneficial Use" with the meaning assigned by Texas Water Code 52.001 or or Section 1.02 of the 1992 Demand Management Plan for the Edwards District. 2.2 Defines "Endangered Species Act" as codified in 16 U.S.C. 1531-1544. 2.3 Defines "Waste" with the meaning assigned by Texas Water Code 52.001 or Section 1.02 of the 1992 Demand Management Plan of the Edwards District. SECTION 3. GOVERNANCE. 3.1 Parties shall retain their own governing structure and maintain local control; Legislative authority will be organized in accordance with Chapter 52 Texas Water Code. 3.2 Geographic Boundary shall comply with the cumulative area of the counties covered by each Party's geographic jurisdiction. 3.3 The Liaison Committee shall function as coordinating committee among the Parties; Criteria under which the Liaison Committee shall function is defined. SECTION 4. FINANCING STRUCTURE. Financial structure for water management shall be based upon the guiding principal that "Those who benefit--pay." 4.1 Ad Valorem Taxation. 4.2 Production Fees. 4.3 Production Surcharge Fees. 4.4 Transport and Export Fees. 4.5 General Obligation Bonds and Revenue Bonds. 4.6 Making Loans and Grants. 4.7 Receiving Loans and Grants. 4.8 Research Costs. 4.9 Aquifer Management Guidelines. SECTION 5. WATER MANAGEMENT ELEMENTS. Parties agree upon the following terms of the comprehensive water management plan: 5.1 Aquifer complexity. 5.2 Long-term planning. 5.3 Springflow. 5.4 Downstream and Upstream Interests. 5.5 Drought Response Plans. 5.6 Conservation Plans. 5.7 Reuse Policies. 5.8 Water Quality. 5.9 Water Supplies. 5.10 Water Management Tools. 5.11 Transport of Water. 5.12 Export of Water. 5.13 Production Management. 5.14 Water Markets. SECTION 6. WATER AND OTHER PROPERTY RIGHTS. Nothing in this Contract creates or diminishes water rights or other property rights recognized under law. SECTION 7. DISPUTE RESOLUTION. All claims and controversies relating to this Contract shall be referred for resolution by each party to its General Manager. SECTION 8. ENFORCEMENT. Each Party shall meet the requirements under this Contract. SECTION 9. MISCELLANEOUS PROVISIONS. 9.1 Entire Contract. 9.2 Term of Contract. 9.3 Amendment. 9.4 Notices. 9.5 Force Majeure. 9.6 Governing Law. 9.7 Severability. 9.8 Counterparts. SECTION 10. EMERGENCY CLAUSE. COMPARISON OF ORIGINAL TO SUBSTITUTE The Original simply stated that the Legislature validates a certain agreement known as the Edwards Aquifer Interlocal Contract. The Substitute actually includes the language of that agreement. SUMMARY OF COMMITTEE ACTION H.B.753 was considered by the committee in a public hearing on May 2, 1995. No testimony was received. The committee considered a complete substitute for the bill. The substitute was adopted without objection. The bill was reported favorably as substituted, with the recommendation that it do pass and be printed, by a record vote of 7 ayes, 2 nays, 0 pnv, 0 absent.