Amend CSSB 1 as follows:
      Amend Sec. 1.03 of the bill amending Sec. 11.1271 of the
Water Code (House Committee Substitute for SB 1, page 13, line 17
through page 14, line 7,) by striking subsection (a) (b) and (c)
and substituting the following:
      Sec. 11.1271 ADDITIONAL REQUIREMENTS:  WATER CONSERVATION
PLANS & INCENTIVES.  (a)  The commission shall <may> require an
applicant seeking to appropriate unappropriated water to formulate
and submit <the formulation and submission of> a water conservation
plan to adopt <the adoption of> reasonable water conservation
measures, as defined by Subdivision (8)(B), Section 11.002, of this
code. The commission shall adopt rules establishing criteria for
implementing this provision.
      (b)  When any person entitled to the use of water under a
permit, certified filing, or certificate of adjudication reduces
his use of the water through water conservation efforts,
            (1)  the reduction in use shall be deemed equivalent to
a beneficial use of the water,
            (2)  the conserved water shall not be subject to
forfeiture or cancellation under this chapter, and
            (3)  the person who has engaged in the water
conservation shall be entitled to put the water to a new use or to
sell, lease, or otherwise transfer the water, pursuant to any
relevant provisions of law including Section 11.122 of this code.
      (c)  On or before January 1, 2003, the commission shall
report back to the legislature on the success of voluntary
incentives in encouraging water conservation and shall recommend
any additional legislation that the commission believes will
encourage additional conservation.