HBA-RBT, NMO C.S.S.B. 1311 76(R) BILL ANALYSIS Office of House Bill AnalysisC.S.S.B. 1311 By: Brown Natural Resources 5/13/1999 Committee Report (Substituted) BACKGROUND AND PURPOSE The 75th Texas Legislature enacted legislation establishing a comprehensive framework for the development and management of the state's water resources. Follow-up legislation may be needed to consolidate the emergency and enforcement provisions of the Texas Natural Resource Conservation Commission, provide for coordinated management planning districts within the same priority groundwater management area, streamline the issuance of temporary water rights permits, distinguish the issuance of an emergency water right from an emergency transfer of water, and address certain other issues. C.S.S.B. 1311 amends the Water Code and the Health and Safety Code to address these issues. RULEMAKING AUTHORITY It is the opinion of the Office of House Bill Analysis that rulemaking authority is expressly delegated to the Texas Natural Resource Conservation Commission (TNRCC) in SECTION 6 (Sections 5.517 and 5.518, Water Code) and SECTION 22 (Section 11.138, Water Code), of this bill. It is the opinion of the Office of House Bill Analysis that rulemaking authority previously delegated to TNRCC is modified in SECTION 2 (Section 5.103, Water Code) of this bill. SECTION BY SECTION ANALYSIS SECTION 1. Amends Section 5.102(a), Water Code, to provide that the Texas Natural Resource Conservation Commission (TNRCC) has the powers to perform any acts whether specifically authorized by this code or other law or necessarily implied, rather than implied, by this code or other law, in order, rather than necessary and convenient, to exercise its jurisdiction and powers as provided by this code and other laws. Makes conforming changes. SECTION 2. Amends Section 5.103, Water Code, by adding Subsection (d), as follows: (d) Requires TNRCC, in adopting a rule, to cite the statute granting the specific regulatory authority to be exercised under the proposed rule. Provides that citation to this section (Rules) or Section 5.013 (General Jurisdiction of Commission) does not fulfill TNRCC's obligation under this section. SECTION 3. Amends Section 5.504(a), Water Code, to require that an emergency order issued under Section 5.517 or 5.518 set a time for the hearing not later than the 20th day after the date the emergency order is issued. SECTION 4. Amends Section 5.507, Water Code, to make a conforming change. SECTION 5. Amends Section 5.508(a), Water Code, to make a conforming change. SECTION 6. Amends Subchapter L, Chapter 5, Water Code, by adding Sections 5.517, 5.518, 5.519, and 5.520, as follows: Sec. 5.517. EMERGENCY PERMIT TO DIVERT AND USE WATER; AMENDMENT TO WATER RIGHT. (a) Authorizes the TNRCC, except as provided by Section 5.506 (Emergency Suspension of Permit Condition Relating to Beneficial Inflows to Affected Bays and Estuaries and Instream Uses) and after notification to the governor, to issue by emergency order a permit to divert and use water or amend an existing permit, certified filing, or certificate of adjudication for an initial period not to exceed 120 days if TNRCC finds that emergency conditions exist that override the necessity to comply with established statutory procedures and there is no feasible alternative to the emergency authorization. Authorizes the renewal of an emergency authorization once for a period not to exceed 60 days. (b) Authorizes the executive director of TNRCC (executive director) to issue an emergency order if an imminent threat to the public health and safety that requires emergency action before TNRCC can take action under Subsection (a) and there is no feasible alternative. Requires TNRCC, if the executive director issues an emergency order under this subsection, to hold hearing as provided for in Section 5.504 (Hearing to Affirm, Modify, or Set Aside Order) as soon as practicable but not later than 20 days after issuance of the order to affirm, modify, or set aside the order. (c) Provides that the notice requirements of Section 11.132 (Notice) relating to the time for notice, newspaper notice, and method of giving a person notice do not apply to a hearing held on an application for an emergency order under this section. Requires TNRCC to give the general notice of the hearing that it considers practicable under the circumstances. (d) Authorizes TNRCC to adopt rules and impose fees necessary to carry out the provisions of this section. (e) Provides that an emergency order under this section does not vest in the grantee any right to the diversion, impoundment, or use of water and expires by its terms. Sec. 5.518. EMERGENCY ORDER FOR TEMPORARY TRANSFER OF USE OF WATER RIGHT. (a) Authorizes TNRCC by emergency order to grant the temporary transfer and use of all or part of a surface water right for other than domestic or municipal use to a retail or wholesale water supplier for public health and safety purposes. (b) Authorizes TNRCC to direct the applicant to timely pay the amounts for which the applicant may be potentially liable under this section and to fully indemnify and hold harmless the state, executive director, and TNRCC from any and all liability for the order sought. Authorizes TNRCC to order bond or other surety in a form acceptable to TNRCC as a condition for an emergency order under this section. Prohibits TNRCC from granting an emergency authorization under this section that would cause a violation of a federal regulation. (c) Requires the executive director or TNRCC, in transferring the amount of water requested by the applicant, to allocate the requested amount among two or more permits, certified filings, or certificates of adjudication for a use other than domestic, municipal, or electric generation. (d) Provides that a person granted an emergency authorization under this section is liable to the owner from whom the use is transferred and for any damages proximately caused by the transfer of use. Authorizes either party to file a complaint with TNRCC to determine the amount due, if, within 60 days of the termination of the order, the parties do not agree on the amount due, or if full payment is not made. (e) Requires TNRCC, by rule, to establish a dispute resolution procedure for a complaint filed under this section. Authorizes an owner from whom the use is transferred to file suit to recover or determine the amount due in a district court in the county where the owner resides or has its headquarters. Entitles the prevailing party in a suit filed under this subsection to recover court cost and reasonable attorney's fees. Sec. 5.519. EMERGENCY WORKS SAFETY ORDER. Authorizes TNRCC to issue a mandatory or prohibitory emergency order directing the owner of a dam, levee, or other water-storage or flood-control work to repair, modify, maintain, dewater, or remove a work if TNRCC finds certain conditions exist. Sec. 5.520. EMERGENCY ORDER FOR OPERATION OF UTILITY THAT DISCONTINUES OPERATION OR IS REFERRED FOR APPOINTMENT OF RECEIVER. Authorizes TNRCC to issue an emergency order appointing a willing person to temporarily manage and operate a utility under Section 7.404. Provides that notice of the action is adequate if the notice is mailed or hand delivered to the last known address of the utility's headquarters. SECTION 7. Amends Section 7.004, Water Code, to provide that nothing in this chapter affects the right of a political subdivision that has a justiciable interest, in addition to a private corporation or individual, to pursue any available common law remedy to enforce a right, in addition to abate a condition of pollution or other nuisance, to recover damages to enforce a right, or to prevent or seek redress or compensation for violation of a right or otherwise redress an injury. SECTION 8. Amends Subchapter B, Chapter 7, Water Code, by adding Section 7.034, as follows: Sec. 7.034. ATTORNEY'S FEES; COSTS. Authorizes a district court to award the cost of litigation, including reasonable attorney's fees and expert costs, to any political subdivision of the state, private corporation, or individual that is a water right holder and that prevails in a suit for injunctive relief to redress an unauthorized diversion, impoundment, or use of surface water in violation of Chapter 11 (Water Rights) or a rule adopted under Chapter 11. SECTION 9. Amends Section 7.051(b), Water Code, to provide that this subchapter (Administrative Penalties) does apply to Section 16.236 (Construction of Levee Without Approval of Plans; Levee Safety). Deletes language that provides that this subchapter does not apply to Chapters 11 (Water Rights), 13 (Water Rates and Services) or 36 (Groundwater Conservation Districts), Water Code, or Chapter 341 (Minimum Standards of Sanitation and Health Protection Measures), Health and Safety Code. Makes a conforming change. SECTION 10. Amends Section 7.052, Water Code, to prohibit the amount of the penalty for a violation under Chapter 11 from exceeding $5,000 a day for each violation. Prohibits the penalty for a violation of a rule or order adopted under Section 16.236 from exceeding $1,000 a day for each violation. Prohibits the amount of a penalty for a violation under Chapter 341, Health and Safety Code, from being less than $50 or more than $1,000 for each violation. Makes conforming changes. SECTION 11. Amend Section 7.054, Water Code, to provide that a report regarding a possible violation under Chapter 11 must state the facts on which the conclusion was based and recommend the amount of any penalty. Requires the executive director to base the recommended amount of the proposed penalty on the factors provided by Section 7.053 and to analyze each factor for the benefit of TNRCC. SECTION 12. Amends Section 7.069, Water Code, to require a penalty collected under this subchapter from a public utility to be paid to TNRCC and deposited in the water utility improvement account as provided by Section 341.0485 (Water Utility Improvement Account), Health and Safety Code. Makes conforming changes. SECTION 13. Amends Subchapter C, Chapter 7, Water Code, by adding Section 7.076, as follows: Sec. 7.076. COMPROMISE, MODIFICATION, OR REMISSION OF CERTAIN PENALTIES. Authorizes TNRCC to compromise, modify, or remit, with or without condition, any penalty imposed under this subchapter for a violation under Chapter 11. SECTION 14. Amends Section 7.102, Water Code, to prohibit the amount of a penalty for a violation of a rule under Section 12.052 (Dam Safety) from exceeding $5,000. Requires that a person who causes, suffers, allows, or permits a violation of a statute, rule, order, or permit relating to Chapter 13 (Water Rates and Services), be assessed for each violation a civil penalty not less than $100 nor greater than $5,000 for each day of each violation as the court or jury considers proper. Makes conforming changes. SECTION 15. Amends Sections 7.105(a) and (c), Water Code, to authorize the attorney general to initiate a suit for recovery of a penalty under this section for a violation under Section 13.414 (Penalty Against Retail Public Utility or Affiliated Interest). Authorizes a suit to recover a penalty for a violation of a rule or order issued by TNRCC under Section 12.052 to be brought in Travis County. Makes conforming changes. SECTION 16. Amends Subchapter D, Chapter 7, Water Code, by adding Section 7.1075, as follows: Sec. 7.1075. DISPOSITION OF PENALTY COLLECTED FROM PUBLIC UTILITY. Requires that a penalty collected under this subchapter from a public utility be paid to TNRCC and deposited in the water utility improvement account as provided by Section 341.0485, Health and Safety Code. SECTION 17. Amends Subchapter D, Chapter 7, Water Code, by adding Section 7.112, as follows: Sec. 7.112. LIMITATION ON SUIT FOR VIOLATION OF SECTION 11.081. Provides that an action to collect the penalty provided by Section 7.102 for a violation of Section 11.081 (Unlawful Use of State Water) must be brought within two years from the date of the alleged violation. SECTION 18. Amends Section 7.351, Water Code, to make a conforming change. SECTION 19. Amends Section 11.0843(a), to make conforming and nonsubstantive changes. SECTION 20. Amends Section 11.085, Water Code, by adding Subsection (w), as follows: (w) Provides that the requirements of this section (Interbasin Transfers) apply to the transfer of water from one river basin to another regardless of whether all or any part of the water right, permit, certified filing, or certificate of adjudication under which the water is authorized to be used is also transferred. SECTION 21. Amends Section 11.134(c), Water Code, to prohibit TNRCC, beginning January 5, 2002, rather than September 1, 2001, from issuing a water right for municipal purposes in certain regions. SECTION 22. Amends Section 11.138(a), Water Code, to authorize TNRCC, by rule, to authorize the beneficial use, without a permit, of not more than 25 acre-feet of water, for a term not to exceed one year, if the diversion of water will not affect existing water right holders and the user of the water registers the use with TNRCC in the manner required by TNRCC. SECTION 23. Amends Section 11.139, Water Code, to authorize TNRCC to grant an emergency permit, order, or amendment to an existing permit, certified filing, or certificate of adjudication under Subchapter L (Emergency and Temporary Orders), Chapter 5 (Texas Natural Resource Conservation Commission). Deletes existing text regarding emergency authorizations. Makes a conforming change. SECTION 24. Amends Section 11.142(a), Water Code, to provide that a person who temporarily stores more than 200 acre-feet of water in a dam or reservoir described by this subsection is not required to obtain a permit for the dam or reservoir if the person can demonstrate that the person has not stored in the dam or reservoir more than 200 acre-feet of water on average in any 12-month period. Makes a nonsubstantive change. SECTION 25. Amends Section 11.146, Water Code, by adding Subsection (g), as follows: (g) Provides that this section (Forfeitures and Cancellation of Permit for Inaction) does not apply to a permit that contemplates construction of a reservoir designed for the storage of more than 75,000 acre-feet of water SECTION 26. Amends Section 11.173(b), Water Code, to provide that a permit, certified filing, or certificate of adjudication or a portion of a permit, certified filing, of certificate or adjudication is exempt from cancellation under Subsection (a) of this section (Cancellation in Whole or in Part) if it was obtained to meet demonstrated long-term public water supply or electric generation needs as evidenced by a water management plan developed by the holder and consistent with projections of future water needs contained in the state water plan, or if it was obtained as the result of the construction of a reservoir funded, in whole or in part, by its holder as part of the holder's long-term planning. SECTION 27. Amends Section 11.177(b), Water Code, to make conforming changes. SECTION 28. Amends Sections 12.052(c), (d), (e), and (f), Water Code, to make conforming and nonsubstantive changes. SECTION 29. Amends Section 13.242(b), Water Code, to provide that a person that violates this section is subject to the penalties described in Subchapter C, Chapter 7. SECTION 30. Amends Chapter 7, Water Code, by adding Subchapter I, and transfers Sections 13.412, 13.4131, and 13.4132, Water Code, to Subchapter I, Chapter 7, Water Code, redesignated as Section 7.402, 7.403, and 7.404, as follows: SUBCHAPTER I. RECEIVERSHIP; SUPERVISION OF CERTAIN UTILITIES Sec. 7.401. DEFINITION. Defines, in this subchapter, "affiliated interest" and "affiliate." Sec. 7.402. RECEIVERSHIP. Makes conforming changes. Sec. 7.403. SUPERVISION OF CERTAIN UTILITIES. Authorizes TNRCC to require the utility to meet, rather than abide by, conditions and requirements prescribed by TNRCC and to obtain commission approval before taking an action under Subdivision (1), rather than Subsection (b), of this subsection. Authorizes an action or transaction for which commission approval is required by this section that occurs without commission approval to be voided by TNRCC. Deletes text regarding TNRCC's supervision of a utility. Makes conforming and nonsubstantive changes. Sec. 7.404. OPERATION OF UTILITY THAT DISCONTINUES OPERATION OR IS REFERRED FOR APPOINTMENT OF RECEIVER. Makes conforming changes. SECTION 31. Amends Section 13.414, Water Code, as follows: Sec. 13.414. New title: VIOLATION BY RETAIL PUBLIC UTILITY OR AFFILIATED INTEREST. Makes conforming changes. SECTION 32. Amends Section 15.102(b), Water Code, to authorize the Texas Water Development Board (board) to use the loan fund to provide grants for projects that include the provision of, rather than the supplying of water and wastewater services in economically distressed areas; and one or more of the following projects, if the legislature appropriates money specifically for that purpose: agricultural water conservation; weather modification; brush control; or production of water in connection with an oil or gas operation. SECTION 33. Amends Section 15.4061(h), Water Code, to require the board to require that regional water plans developed or revised under contracts entered into under this section (Funding for Regional Water Plans) be made available to the Texas Department of Agriculture (TDA), in addition to TNRCC and the Texas Parks and Wildlife Department (TPW). SECTION 34. Amends Section 15.7031(c), Water Code, to authorize TDA to provide input to TNRCC, as appropriate, during the review and approval process for dedication of water rights. SECTION 35. Amends Sections 16.012(c), (h), and (j), Water Code, as follows: (c) Authorizes TDA to provide advice to the executive administrator of the board, where appropriate, regarding any of the duties to be performed under Subsection (b). Subsection (b) relates to studies, investigations, and surveys. (h) Deletes language that conditions the requiring of TNRCC to provide water availability models on flows being at 75 and 50 percent of normal. (j) Makes a conforming change. SECTION 36. Amends Sections 16.051(a) and (d), Water Code, to require the board to review and update the guidance principles, with input from TNRCC, TDA, and TPW, as necessary, but at least every five years to coincide with the five-year cycle for adoption of a new state water plan. Makes conforming changes. SECTION 37. Amends Section 16.053, Water Code, by amending Subsections (c), (e), (i), and (j), and by adding Subsection (l)-(o), as follows: (c) Authorizes, rather than requires, the initial coordinating body to designate additional representatives to serve on the regional water planning group. Requires the initial coordinating body to designate additional representatives if necessary to ensure adequate representation from the interests comprising the region. Requires the regional planning group to maintain adequate representation from those interests. Requires that representatives of the board, TPW, and TDA serve as ex officio members of each regional water planning group. (e) Requires each regional water planning group to submit to the board a regional water plan that identifies certain sources, factors, and actions. Makes conforming and nonsubstantive changes. (i) Requires the regional water planning groups to submit their adopted regional water plans to the board by January 5, 2001, rather than September 1, 2000. Makes a nonsubstantive change. (j) Makes conforming and nonsubstantive changes. (l) Authorizes a political subdivision to contract with a regional water planning group to assist the regional water planning group in developing or revising a regional water plan. (m) Provides that a cause of action does not accrue against a regional water planning group, a representative who serves on the regional water planning group, or an employee of a political subdivision that contracts with the regional water planning group under Subsection (l) for an act or omission in the course and scope of the person's work relating to the regional water planning group. (n) Provides that a regional water planning group, a representative who serves on the regional water planning group, or an employee of a political subdivision that contracts with the regional water planning group under Subsection (l) is not liable for damages that may arise from an act or omission in the course and scope of the person's work relating to the regional water planning group. (o) Requires the attorney general, on request, to represent a regional water planning group, a representative who serves on the regional water planning group, or an employee of a political subdivision that contracts with the regional water planning group under Subsection (l) in a suit arising from an act or omission in the course and scope of the person's work relating to the regional water planning group. SECTION 38. Amends Section 16.054(a), Water Code, to authorize the TDA to provide input and assistance to water resource management, water conservation, and drought planning. SECTION 39. Amends 16.237(a), Water Code, to make conforming and nonsubstantive changes. SECTION 40. Amends Sections 17.871(2) and (6), Water Code, to redefine "borrower district" and "lender district." SECTION 41. Amends Subchapter J, Chapter 17, Water Code, by amending Section 17.895, and adding Section 17.8955, as follows: Sec. 17.895. CONSERVATION LOANS. Provides that this section applies only to a conservation loan from certain lender and borrower districts. Deletes a provision authorizing conservation loans for capital equipment or materials, labor, preparation costs, and installation costs for preparing and maintaining land to be used for brush control activities and for implementing precipitation enhancement activities in areas of the state where such activities would be, in the board's judgment, most effective. Authorizes the board or lender districts to seek the advice of TDA regarding the feasibility of a project for which a conservation loan is sought. Makes conforming changes. Sec. 17.8955. CONSERVATION LOANS FOR BRUSH CONTROL AND PRECIPITATION ENHANCEMENT. Authorizes the board or lender districts to make conservation loans for capital equipment or materials, labor, preparation costs, and installation costs for preparing and maintaining land to be used for brush control activities and for implementing precipitation enhancement activities in areas of the state where such activities would be, in the board's judgment, most effective. Authorizes such a loan to be made by a lender district to an individual borrower for use on private property or by the board to a borrower district. SECTION 42. Amends Section 26.0135(h), Water Code, to provide that hydroelectric rights of facilities of less than five megawatts are not subject to the assessment provided for in this section. SECTION 43. Amends Section 26.121(a), Water Code, to provide that this subdivision does not apply to any act under the jurisdiction of TDA. SECTION 44. Amends Section 26.127, Water Code, to authorize the executive director to enter into contracts or other agreements with TDA, on behalf of and with the consent of the commission, for purposes of obtaining laboratory services for water quality testing. SECTION 45. Amends Section 35.007(e), Water Code, to authorize TDA to provide input to the executive director for purposes of preparing the report required by this section. SECTION 46. Amends Chapter 35, Water Code, by adding Section 35.010, as follows: Sec. 35.010. CREATION OF DISTRICTS ON PETITION AFTER DESIGNATION OF PRIORITY GROUNDWATER MANAGEMENT AREA. Prohibits TNRCC from considering the creation of a groundwater conservation district in a designated priority groundwater management area before the conclusion of the next regular session of the Texas Legislature following the designation unless the local landowners have initiated a petition process under Chapter 36 for the creation of a groundwater conservation district with a priority ground water management area. SECTION 47. Amends Section 35.012, Water Code, by adding new Subsections (c) and (d), redesignating existing Subsections (c)-(f) as Subsections (e)-(h), and amending existing Subsection (d), as follows: (c) Requires TNRCC, not later than the 10th day after the date on which the TNRCC order designating a priority groundwater management area is issued, to send a written notice of TNRCC's actions to each entity entitled to notice. Provides that the notice must include TNRCC's findings and conclusions from the data and information considered in designating the priority groundwater management area and TNRCC's recommendation regarding the need for a groundwater conservation district in the priority groundwater management area. (d) Requires the Texas Agricultural Extension Service, as soon as possible after a TNRCC order designating a priority groundwater management area, to begin an educational program within the area with the assistance and cooperation of the Texas Water Development Board, TNRCC, other state agencies, and existing districts to inform the residents of the status of the area's water resources and management options including possible formation of a district. (f) Redesignated from existing Subsection (d). Deletes existing language to make a conforming change. SECTION 48. Amends Section 35.013(d), Water Code, to provide that the board may administer certain educational programs with the cooperation and assistance of TDA. SECTION 49. Amends Section 36.014, Water Code, to make conforming changes. SECTION 50. Amends Section 36.015, Water Code, to make conforming changes. SECTION 51. Amends Section 36.0151, Water Code, as follows: Sec. 36.0151. New title: NOTICE OF CREATION BY COMMISSION OF DISTRICT FOR PRIORITY GROUNDWATER MANAGEMENT AREA. Makes conforming changes. SECTION 52. Amends Section 36.051, Water Code, by amending Subsections (b) and (c), and adding Subsection (d), to provide that to be qualified as a director, a person must be a registered voter in the precinct that the person represents. Makes conforming changes. SECTION 53. Amends Section 36.059(b), Water Code, to make conforming changes. SECTION 54. Amends Section 36.108, Water Code, as follows: Sec. 36.108. New title: JOINT PLANNING IN MANAGEMENT AREA OR PRIORITY GROUNDWATER MANAGEMENT AREA. Makes conforming changes. SECTION 55. Transfers Section 341.047, Health and Safety Code, to Subchapter E, Chapter 7, Water Code, redesignates it as Section 7.1605, Water Code, and amends it, as follows: Sec. 7.1605. New title: VIOLATIONS RELATING TO PUBLIC DRINKING WATER. Makes conforming changes. SECTION 56. Amends Section 341.048, Health and Safety Code, as follows: Sec. 341.048. New title: VIOLATION. Deletes text to make conforming changes. SECTION 57. Amends Section 341.0485(c), Health and Safety Code, to make a conforming change. SECTION 58. Amends the heading to Section 44.901, Education Code, as follows: Sec. 44.901. New title: ENERGY OR WATER CONSERVATION MEASURES. SECTION 59. Amends Sections 44.901(a)-(f), Education Code, to include energy and water conservation measures among the contracts that the board of trustees of a school district are authorized to enter into. Includes water, along with energy, conservation to the application of this section. Sets forth the types of contracts to which this section applies. Provides that Section 19, Article 3271a, V.T.C.S. (The Texas Engineering Practice Act), applies to work performed under this section. SECTION 60. Reenacts and amends Section 51.927, Education Code, as amended by Chapters 627 and 1142, Acts of the 75th Legislature, Regular Session, 1997, as follows: Sec. 51.927. New title: ENERGY OR WATER CONSERVATION MEASURES. Includes energy and water conservation measures among the contracts that the governing body of an institution of higher education is authorized to enter into. Includes water, along with energy, conservation to the application of this section. Sets forth the types of contracts to which this section applies. Provides that Section 19, Article 3271a, V.T.C.S. (The Texas Engineering Practice Act), applies to work performed under this section. Sets forth procedures for an approval process and the development of guidelines. Makes conforming changes. SECTION 61. Amends Section 2166.406, Government Code, as follows: Sec. 2166.406. New title: ENERGY OR WATER CONSERVATION MEASURES. SECTION 62. Amends Section 2166.406(a)-(h), (k), and (l), Government Code, to include energy and water conservation measures among the contracts that the governing body of state agency is authorized to enter into. Includes water, along with energy, conservation to the application of this section. Sets forth the types of contracts to which this section applies. Provides that Section 19, Article 3271a, V.T.C.S. (The Texas Engineering Practice Act), applies to work performed under this section. Provides that a contract must comply with Section 51.927(h), Education Code. Provides that the cost savings projected by offerors must be reviewed by a licensed professional engineer selected by the governing body of the state agency having charge and control of the building and facility who is not an officer or employee of an offeror or otherwise associated with a proposed contract. Provides that a contract is not required to be reviewed or approved by the State Energy Conservation Office, the Texas Energy Coordination Council, or the board. SECTION 63. (a) Repealer: Sections 11.082 (Unlawful Use: Civil Penalty), 11.0841 (Civil Remedy), 11.0842 (Administrative Penalty), 11.148 (Emergency Suspension of Permit Conditions), 13.411 (Action to Enjoin or Require Compliance), 13.4133 (Emergency Rate Increase in Certain Circumstances), 13.4151 (Administrative Penalty), 13.416 (Penalties Cumulative), 13.417 (Contempt Proceedings), and 13.418 (Disposition of Fines and Penalties; Water Utility Improvement Account), Water Code. (b) Repealer: Sections 341.049 (Administrative Penalty) and 341.050 (Penalties Cumulative), Health and Safety Code. SECTION 64. Effective date: September 1, 1999. SECTION 65. Makes application of this Act prospective. SECTION 66. Emergency clause. COMPARISON OF ORIGINAL TO SUBSTITUTE The substitute differs from the original in the caption by specifying that this Act relates to the powers of the Texas Natural Resource Conservation Commission, as well as to the development and management of water resources. The substitute adds new SECTIONS 1, 2, 13, 21, 25, 29, 32-45, 48, 52, 53, and 58-62. For a complete analysis of these new sections please see the Section-by-Section Analysis portion of this document. The substitute redesignates SECTIONS 1, 36, 37, 3, 4, 5, 7, 8, 9, 10, 11, 12, 13, 15, 16, 17, 19, 20, 21, 23, 27, 29, 30, 32, 33, 34, 35, 38, 40, and 42 of the original as SECTIONS 3, 4, 5, 7, 8, 9, 11, 12, 14, 15, 16, 17, 18, 20, 22, 23, 26, 27, 28, 31, 46, 49, 50, 51, 54, 55, 56, 57, 64, and 66, respectively. The substitute redesignates SECTIONS 6 and 22 of the original as SECTIONS 10 and 30, respectively, and modifies them by making nonsubstantive changes. The substitute redesignates SECTION 2 of the original (proposed Sections 5.517-5.520, Water Code) as SECTION 6, and modifies it, as follows: Modifies proposed Section 5.517 (Emergency Permit to Divert and Use Water; Amendment to Water Right), in Subsection (b), by authorizing the executive director of the Texas Natural Resource Conservation Commission (executive director, TNRCC) to issue an emergency order if an imminent threat to the public health and safety, rather than the public health, safety, and welfare or environment, requires emergency action before the commission can take action under Subsection (a) and there is no feasible alternative. Modifies proposed Section 5.518 (Emergency Order for Temporary Transfer of Use of Water Right) by requiring the executive director or TNRCC, in transferring the amount of water requested by the applicant, to allocate the requested amount among two or more permits, certified filings, or certificates of adjudication for a use other than domestic, municipal, or electric generation, rather than for a domestic or municipal use, and further modifies this section by making nonsubstantive changes. The substitute redesignates SECTION 14 of the original (Section 11.0843, Water Code) as SECTION 19, reinstates text deleted in the original, makes reference to a hearing held in accordance with Section 7.058, rather than 11.0842, Water Code, and makes nonsubstantive changes. The substitute redesignates SECTION 18 of the original (Section 11.142(a), Water Code) as SECTION 24 and modifies it to provide that a person who temporarily stores more than 200 acrefeet of water in a dam or reservoir described by this subsection is not required to obtain a permit for the dam or reservoir if the person can demonstrate that the person has not stored in the dam or reservoir more than 200 acre-feet of water on average in any 12-month period, rather than providing that normal storage may involve the temporary storage of greater than 200 acre-feet if the owner of the structure maintains records which can demonstrate that throughout a 12-month period an average of not more than 200 acre-feet of water is impounded in such a structure. The substitute deletes SECTION 24 of the original, which would have amended Section 35.008, Water Code, relating to public comment hearings. The substitute deletes SECTION 25 of the original, which would have amended Section 35.009, Water Code, relating to public comment hearings. The substitute deletes SECTION 26 of the original, which would have amended Section 35.012(a), Water Code, relating to public comment hearings. The substitute redesignates SECTION 28 of the original (Section 35.012, Water Code) as SECTION 47 and modifies it by providing for notice to each entity entitled to notice under Section 35.009(c), rather than notice to each landowner in the designated priority groundwater management area. The substitute deletes SECTION 31 of the original, which would have added proposed Section 36.1074, relating to the extension of district authority to additional aquifers within district's geographic boundaries. The substitute redesignates SECTION 39 of the original (Repealer) as SECTION 63 and modifies it by no longer repealing Sections 35.004, 35.005, and 35.006, Water Code. The substitute redesignates SECTION 41 (prospective clause) of the original as SECTION 65 and modifies it to by adding new Subsections (c)-(e) to specify that changes made to Sections 15.102(b), 16.053(m)-(o), 17.871, 17.895, and the addition of Section 17.8955, Water Code, apply prospectively from the effective date of this Act.