By Keel                                         H.B. No. 1060

      75R3095 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 on or after the effective date

4-19     of 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, 1997.

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.