By Combs, Stiles                                      H.B. No. 2276
       74R6549 MI-D
                                 A BILL TO BE ENTITLED
    1-1                                AN ACT
    1-2  relating to interwatershed transfers of surface water.
    1-3        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-4        SECTION 1.  Section 11.085(b), Water Code, is amended to read
    1-5  as follows:
    1-6        (b)  No person may transfer water from one watershed to
    1-7  another without first applying for and receiving a permit from the
    1-8  commission to do so.  Before issuing such a permit, the commission
    1-9  shall hold a hearing to determine the rights that might be affected
   1-10  by the transfer and must comply with the requirements of Sections
   1-11  11.0851 and 11.0852.  The commission shall give notice and hold the
   1-12  hearing in the manner prescribed by its procedural rules.
   1-13        SECTION 2.  Subchapter C, Chapter 11, Water Code, is amended
   1-14  by adding Sections 11.0851, 11.0852, and 11.0853 to read as
   1-15  follows:
   1-16        Sec. 11.0851.  INTERWATERSHED TRANSFERS:  REGIONAL WATER
   1-17  MANAGEMENT PLAN REQUIRED.  (a)  The commission may not issue a
   1-18  permit for an interwatershed transfer of surface water unless a
   1-19  regional water management plan for the receiving basin has been
   1-20  approved by the commission and incorporated as a condition of the
   1-21  transfer permit.
   1-22        (b)  The commission shall adopt procedures for the
   1-23  development of the regional water management plan that provide for
   1-24  broad public participation from both the exporting and the
    2-1  receiving basins.  The procedures must require:
    2-2              (1)  notice of the proposed transfer to all persons in
    2-3  both the exporting and receiving basins whose rights or interests
    2-4  may be affected;
    2-5              (2)  a separate public hearing on the proposed transfer
    2-6  in the exporting and in the receiving basin;
    2-7              (3)  approval of the plan by the two basins; and
    2-8              (4)  the submission of the plan to the commission and
    2-9  review and  approval of the plan by the commission.
   2-10        (c)  A regional water management plan must:
   2-11              (1)  demonstrate that before any transfer the receiving
   2-12  basin has examined or implemented, and during any transfer will
   2-13  reexamine or implement, all reasonable measures to develop or
   2-14  extend local water supplies, including:
   2-15                    (A)  measures to assure efficient management of
   2-16  existing water supplies in order to provide optimum yield;
   2-17                    (B)  aggressive water conservation and reuse
   2-18  programs, including the use of greywater for the irrigation of
   2-19  public areas and new residential areas;
   2-20                    (C)  purchase and transfer of water within the
   2-21  applicant's basin;
   2-22                    (D)  stringent drought management procedures; and
   2-23                    (E)  other similar measures prescribed by
   2-24  commission rule;
   2-25              (2)  estimate future water demands and identify and
   2-26  evaluate all practicable water supply options and conservation
   2-27  measures to meet those demands; and
    3-1              (3)  provide mechanisms for protecting the water supply
    3-2  of the exporting basin, which may include:
    3-3                    (A)  a surcharge against the amount of water
    3-4  exported to compensate the exporting  basin for the costs of
    3-5  dry-year alternative water supplies; or
    3-6                    (B)  compensation to the exporting basin through
    3-7  free use of part of the exported water resource.
    3-8        (d)  A regional water management plan approved and
    3-9  incorporated as a condition of a permit is enforceable in the same
   3-10  manner as other permit conditions and as provided by commission
   3-11  rule adopted under Subsection (e).
   3-12        (e)  The commission by rule shall adopt procedures by which
   3-13  an affected party may petition the commission for an emergency
   3-14  order suspending or terminating an interwatershed transfer permit
   3-15  if the receiving basin is violating the regional water management
   3-16  plan or another condition of the permit.
   3-17        Sec. 11.0852.  INTERWATERSHED TRANSFERS:  YIELD REQUIREMENTS.
   3-18  A permit for an interwatershed transfer or a water supply contract
   3-19  for an interwatershed transfer may not authorize a level of
   3-20  firm-yield supply to the receiving basin that exceeds 70 percent of
   3-21  the entire amount to be supplied under the permit or contract.   A
   3-22  permit for an interwatershed transfer or a water supply contract
   3-23  for an interwatershed transfer must assure that not less than 30
   3-24  percent of the entire amount to be supplied is subject to
   3-25  interruption to protect the exporting basin's water requirements in
   3-26  time of drought.
   3-27        Sec. 11.0853.  INTERWATERSHED TRANSFERS:  RESTRICTED USE.
    4-1  Water obtained through an interwatershed transfer may not be used
    4-2  in the receiving basin for lawn irrigation, water  amusement parks,
    4-3  maintaining  water levels for recreational or aesthetic purposes,
    4-4  or other nonessential uses specified by commission rule.
    4-5        SECTION 3.  Subchapter C, Chapter 16, Water Code, is amended
    4-6  by adding Section 16.0515  to read as follows:
    4-7        Sec. 16.0515.  SUPPLY AND DEMAND FORECASTS.  (a)  Before the
    4-8  board may use a water supply or demand forecast to determine
    4-9  whether a river basin is a surplus water basin for planning
   4-10  purposes, the board must confer and reach agreement concerning the
   4-11  forecast with the responsible river authority and a panel of users
   4-12  of water from that basin.
   4-13        (b)  A water supply forecast and a water demand forecast to
   4-14  be considered under this section must be prepared using the same
   4-15  formula according to requirements adopted by the board.
   4-16        SECTION 4.  The change in law made by Sections  11.0851
   4-17  through 11.0853, Water Code, as added by this Act, applies only to:
   4-18              (1)  a contract executed after the effective date of
   4-19  this Act; or
   4-20              (2)  a permit the application for which is:
   4-21                    (A)  pending before the Texas Natural Resource
   4-22  Conservation Commission on the effective date of this Act; or
   4-23                    (B)  submitted to the Texas Natural Resource
   4-24  Conservation Commission on or after the effective date of this Act.
   4-25        SECTION 5.  This Act takes effect September 1, 1995.
   4-26        SECTION 6.  The importance of this legislation and the
   4-27  crowded condition of the calendars in both houses create an
    5-1  emergency and an imperative public necessity that the
    5-2  constitutional rule requiring bills to be read on three several
    5-3  days in each house be suspended, and this rule is hereby suspended.