By:  Brown                                            S.B. No. 1593
                                A BILL TO BE ENTITLED
                                       AN ACT
 1-1     relating to the development of a water supply reservoir project at
 1-2     the Allens Creek Reservoir site in Austin County, Texas, and
 1-3     providing for the issuance of certain water rights permits to the
 1-4     Texas Water Development Board.
 1-5           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-6                                  ARTICLE 1
 1-7           SECTION 1.01.  The Legislature designates a site known as the
 1-8     Allens Creek Reservoir site at the confluence of Allens Creek and
 1-9     the Brazos River in Austin County, Texas, as a site of unique value
1-10     for the construction of a dam and reservoir on Allens Creek
1-11     pursuant to Subdivision (2), Subsection (f), Section 16.051, Water
1-12     Code, to impound water derived from the unappropriated inflows of
1-13     Allens Creek and water diverted from the unappropriated flows of
1-14     the Brazos River.  The Brazos River Authority currently holds an
1-15     option to acquire all or a substantial portion of the site.  The
1-16     legislature finds that construction and development of the Allens
1-17     Creek Reservoir project, and the impoundment, diversion, and use of
1-18     the waters in amounts up to those specified in this article, are in
1-19     the public interest and would constitute a beneficial use of the
1-20     water.  The legislature further finds that the project shall
1-21     receive priority for existing and uncommitted bond authorization in
1-22     the state participation account.
1-23           SECTION 1.02.  (a)  The Texas Water Development Board is
1-24     granted the right to construct a dam and reservoir on Allens Creek
 2-1     and to impound therein the amount specified by permit or amendment
 2-2     issued hereunder, up to 500,000 acre-feet, of the unappropriated
 2-3     waters of the Brazos River and Allens Creek, derived from inflows
 2-4     from Allens Creek and diversions from the Brazos River, and to
 2-5     divert and use from the reservoir an amount of water specified in
 2-6     the permit issued under Subsection (b) of this section or in
 2-7     amendment granted by the Texas Natural Resource Conservation
 2-8     Commission in accordance with the Water Code, up to an average of
 2-9     500,000 acre-feet of water per year.  Water may be diverted,
2-10     impounded, and used only in the amounts and for the purposes and
2-11     under the terms of the permit as so issued or amended.
2-12           (b)  Upon application by the Texas Water Development Board
2-13     pursuant to Section 11.1311, Water Code, the Texas Natural Resource
2-14     Conservation Commission shall reissue without notice or hearing
2-15     Water Appropriation Permit No. 2925 previously issued for the
2-16     Allens Creek Reservoir.  The permit shall be issued in the name of
2-17     the Texas Water Development Board and it shall have a priority date
2-18     of September 1, 1999.  The date to commence construction of the
2-19     reservoir shall be not later than September 1, 2018.  The Texas
2-20     Natural Resource Conservation Commission may extend such time for
2-21     beginning of construction for good cause.
2-22           (c)  Pursuant to Section 11.1311, Water Code, the Texas Water
2-23     Development Board may transfer interests in the reissued permit for
2-24     the Allens Creek Reservoir to a municipality, river authority,
2-25     other political subdivision, or water supply corporation organized
2-26     under Chapter 67, Water Code, as otherwise provided by law.
 3-1           (d)  Pursuant to Section 11.1311, Water Code, the reissued
 3-2     permit for the Allens Creek Reservoir may be amended by the Texas
 3-3     Natural Resource Conservation Commission as otherwise provided by
 3-4     law upon submission of an application to amend by the holder or
 3-5     holders of the permit.  The permit as so amended shall have a
 3-6     priority date of September 1, 1999, provided the authorizations in
 3-7     the amended permit do not exceed those set forth in Subsection (a)
 3-8     of this section.  The Texas Natural Resource Conservation
 3-9     Commission shall process and issue any amendment to the permit
3-10     according to the provisions of Chapter 11, Water Code, including
3-11     but not limited to directing that stream flow restrictions and
3-12     other conditions and restrictions be placed in the amended permit
3-13     to protect senior water rights and to comply with Sections 11.147,
3-14     11.150, and 11.152, Water Code.  The Parks and Wildlife Department
3-15     shall propose to the Texas Natural Resource Conservation Commission
3-16     any terms recommended for inclusion in the amended permit for
3-17     protection of instream uses and bays and estuaries pursuant to
3-18     Section 11.147, Water Code, and fish and wildlife habitat pursuant
3-19     to Section 11.152, Water Code.
3-20           SECTION 1.03.  Using the state participation account of the
3-21     Texas Water Development Fund II to encourage optimal regional
3-22     development of the Allens Creek Reservoir project, the Texas Water
3-23     Development Board is authorized to acquire the entire or any
3-24     undivided interest in the Allens Creek site, provided that the
3-25     total amount of money invested by the Texas Water Development Board
3-26     in the site shall not exceed $20 million with $1.8 million of such
 4-1     investment to be for reimbursement to Brazos River Authority for
 4-2     costs incurred to obtain and hold its option to acquire such site.
 4-3     The legislature finds that the cost of acquisition of the site for
 4-4     the Allens Creek Reservoir project exceeds the current financing
 4-5     capabilities of the area involved, and the optimum regional
 4-6     development of the Allens Creek site cannot be reasonably financed
 4-7     by local interests without state participation.
 4-8           SECTION 1.04.  Using funds from the state participation
 4-9     account of the Texas Water Development Fund II, the Texas Water
4-10     Development Board is authorized to issue bonds to acquire up to 50
4-11     percent of any undivided interest in the Allens Creek Reservoir
4-12     project, including the entire or any undivided interest in the
4-13     site.  The legislature finds that the cost of the Allens Creek
4-14     Reservoir project exceeds the current financing capabilities of the
4-15     area involved, and the optimum regional development of the Allens
4-16     Creek Reservoir project cannot be reasonably financed by local
4-17     interests without state participation.
4-18           SECTION 1.05.  Any contract providing for state participation
4-19     in the Allens Creek site or the construction of a reservoir at such
4-20     site shall provide for the purchase of the Texas Water Development
4-21     Board's interest in the facility pursuant to the provisions of
4-22     Subsection (b), Section 16.186, Water Code.  The Texas Water
4-23     Development Board may contract for such a sale with a municipality,
4-24     a river authority, a political subdivision or a water supply
4-25     corporation organized under Chapter 67, Water Code.
 5-1                                  ARTICLE 2
 5-2           SECTION 2.01.  Subchapter D, Chapter 11, Water Code, is
 5-3     amended by adding Section 11.1311 to read as follows:
 5-4           Sec. 11.1311.  APPROVAL OF CERTAIN APPLICATIONS WITHOUT
 5-5     HEARING.  (a)  If a permit for a reservoir project which is listed
 5-6     on the effective date of this section as a recommended project in
 5-7     the current state water plan has been abandoned, voluntarily
 5-8     canceled, or forfeited for failure to commence construction within
 5-9     the time specified by law, and the reservoir project site is owned
5-10     by a municipality, river authority, other political subdivision, or
5-11     water supply corporation organized under Chapter 67, the commission
5-12     may reissue that same permit with a new priority date to the board
5-13     without notice or hearing, upon submission of an application by the
5-14     board.
5-15           (b)  The board may transfer interests in a permit issued
5-16     under this section to a municipality, river authority, other
5-17     political subdivision, or water supply corporation organized under
5-18     Chapter 67 as otherwise provided by law.
5-19           (c)  A permit issued pursuant to this section shall be
5-20     administered in accordance with this chapter and as otherwise
5-21     provided by law.
5-22                                  ARTICLE 3
5-23           SECTION 3.01.  Nothing in this Act shall be construed as
5-24     prohibiting or impairing any lawful use, sale, or other curtailment
5-25     or diminution of waters that contribute to the flows of the Brazos
5-26     River at the proposed point of diversion for the Allens Creek
 6-1     Reservoir project including, without limitation, curtailment or
 6-2     diminution of discharges of groundwater into tributaries of the
 6-3     Brazos River upstream of such point, whether due to use or sale of
 6-4     such groundwater or any other reason.
 6-5           SECTION 3.02.  This Act takes effect September 1, 1999.
 6-6           SECTION 3.03.  The importance of this legislation and the
 6-7     crowded condition of the calendars in both houses create an
 6-8     emergency and an imperative public necessity that the
 6-9     constitutional rule requiring bills to be read on three several
6-10     days in each house be suspended, and this rule is hereby suspended.