By Counts                                             H.B. No. 3594
         Line and page numbers may not match official copy.
         Bill not drafted by TLC or Senate E&E.
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to the development of a water supply reservoir project at
 1-3     a site known as the Allens Creek Reservoir site in Austin County,
 1-4     Texas, and providing for the issuance of certain water rights
 1-5     permits to the Texas Water Development Board.
 1-7           ARTICLE 1.  
 1-8           SECTION 1.01.   The Legislature designates a site known as
 1-9     the Allens Creek Reservoir site at the confluence of Allens Creek
1-10     and the Brazos River in Austin County, Texas, as a site of unique
1-11     value for the construction of a dam and reservoir on Allens Creek
1-12     pursuant to Water Code Sec. 16.051(f)(2) to impound up to 168,000
1-13     acre-feet of water derived from the unappropriated inflows of
1-14     Allens Creek and water diverted from the unappropriated flows of
1-15     the Brazos River at a rate of diversion of up to 3,500 cubic feet
1-16     per second.  Based on existing studies, the firm yield of the
1-17     Allens Creek Reservoir project could be as high as approximately
1-18     87,000 acre-feet of water per year.  The Brazos River Authority
1-19     currently holds an option to acquire the site.
1-20           SECTION 1.02.   Provided the application for a water
1-21     appropriation permit for the Allens Creek Reservoir project and any
 2-1     applications to amend the permit are submitted to the Texas Natural
 2-2     Resource Conservation Commission within two years from the
 2-3     effective date of this Act, the priority date of all rights under
 2-4     the permit or amended permit shall be September 1, 1999.  The
 2-5     permit shall authorize a date to commence construction of the
 2-6     project not later than September 1, 2018.  The Texas Natural
 2-7     Resource Conservation Commission may extend such time for beginning
 2-8     of construction for good cause.
 2-9           SECTION 1.03.   Using the state participation account of the
2-10     Texas Water Development Fund II to encourage optimal regional
2-11     development of the Allens Creek Reservoir project, the Texas Water
2-12     Development Board is authorized to acquire the entire or any
2-13     undivided interest in the Allens Creek site, provided that the
2-14     total amount of money invested by the Water Development Board in
2-15     the site shall not exceed $20,000,000 with $1,800,000 of such
2-16     investment to be for reimbursement to Brazos River Authority for
2-17     costs incurred to obtain and hold its easement to acquire such
2-18     site.
2-19           SECTION 1.04.   Using funds from the state participation
2-20     account of the Texas Water Development Fund II, the Water
2-21     Development Board is authorized to issue bonds to acquire up to
2-22     fifty percent of any undivided interest in the Allens Creek
2-23     Reservoir project, including the entire or any undivided interest
2-24     in the site, provided that the total amount of money invested in
2-25     the project, including the site, by the Water Development Board,
 3-1     shall not exceed $100,000,000.
 3-2           SECTION 1.05.   Any contract providing for State
 3-3     participation in the Allens Creek site or the construction of a
 3-4     reservoir at such site shall provide for the purchase of the Water
 3-5     Development Board's interest in the facility pursuant to the
 3-6     provisions of Texas Water Code Subsection F, Section 16.186(b).
 3-7     The Water Development Board may contract for such a sale with a
 3-8     municipality, a river authority, a political subdivision or a water
 3-9     supply corporation organized under Chapter 67 of the Water Code.
3-10           ARTICLE 2.  
3-11           SECTION 2.01.   Chapter 11, Water Code, is amended by adding
3-12     a new section 11.1311 to read as follows:
3-14     HEARING.  (a)  If a permit for a reservoir project which is listed
3-15     as a recommended project in the current state water plan has been
3-16     abandoned, voluntarily canceled, or forfeited for failure to
3-17     commence construction within the time specified by law, the
3-18     commission may reissue that same permit with a new priority date to
3-19     the Texas Water Development Board without notice or hearing, upon
3-20     submission of an application by the Board.
3-21           (b)  The Board may transfer interests in permit issued under
3-22     this section to a municipality, river authority or other political
3-23     subdivision, or water supply corporation organized under Chapter
3-24     67, Water Code, as otherwise provided by law.
3-25           (c)  A permit issued pursuant to this section may be amended
 4-1     as otherwise provided by law by submission of an application to
 4-2     amend by the holder or holders of the permit.
 4-3           ARTICLE 3.  
 4-4           SECTION 3.01.   Nothing in this Act shall be construed as
 4-5     prohibiting or impairing any lawful use, sale, or other curtailment
 4-6     or diminution of waters that contribute to the flows of the Brazos
 4-7     River at the proposed point of diversion for the Allens Creek
 4-8     Reservoir project including, without limitation, curtailment or
 4-9     diminution of discharges of groundwater into tributaries of the
4-10     Brazos River upstream of such point, whether due to use or sale of
4-11     such groundwater or any other reason.
4-12           SECTION 3.02.  EFFECTIVE DATE.  This Act takes effect
4-13     September 1, 1999.
4-14           SECTION 3.03.  EMERGENCY.  The importance of this legislation
4-15     and the crowded condition of the calendars in both houses create an
4-16     emergency and an imperative public necessity that the
4-17     constitutional rule requiring bills to be read on three several
4-18     days in each house be suspended, and this rule is hereby suspended.