1-1     By:  Brown                                            S.B. No. 1593
 1-2           (In the Senate - Filed March 12, 1999; March 15, 1999, read
 1-3     first time and referred to Committee on Natural Resources;
 1-4     April 16, 1999, reported adversely, with favorable Committee
 1-5     Substitute by the following vote:  Yeas 5, Nays 0; April 16, 1999,
 1-6     sent to printer.)
 1-7     COMMITTEE SUBSTITUTE FOR S.B. No. 1593                   By:  Brown
 1-8                            A BILL TO BE ENTITLED
 1-9                                   AN ACT
1-10     relating to the development of a water supply reservoir project at
1-11     the Allens Creek Reservoir site in Austin County, Texas, and
1-12     providing for the issuance of certain water rights permits to the
1-13     Texas Water Development Board.
1-14           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-15                                  ARTICLE 1
1-16           SECTION 1.01.  The Legislature designates a site known as the
1-17     Allens Creek Reservoir site at the confluence of Allens Creek and
1-18     the Brazos River in Austin County, Texas, as a site of unique value
1-19     for the construction of a dam and reservoir on Allens Creek
1-20     pursuant to Subdivision (2), Subsection (f), Section 16.051, Water
1-21     Code, to impound water derived from the unappropriated inflows of
1-22     Allens Creek and water diverted from the unappropriated flows of
1-23     the Brazos River.  The Brazos River Authority currently holds an
1-24     option to acquire all or a substantial portion of the site.  The
1-25     legislature finds that construction and development of the Allens
1-26     Creek Reservoir project, and the impoundment, diversion, and use of
1-27     the waters in amounts up to those specified in this article, are in
1-28     the public interest and would constitute a beneficial use of the
1-29     water.  The legislature further finds that the project shall
1-30     receive priority for existing and uncommitted bond authorization in
1-31     the state participation account.
1-32           SECTION 1.02.  (a)  The Texas Water Development Board is
1-33     granted the right to construct a dam and reservoir on Allens Creek
1-34     and to impound therein the amount specified by permit or amendment
1-35     issued hereunder, up to 500,000 acre-feet, of the unappropriated
1-36     waters of the Brazos River and Allens Creek, derived from inflows
1-37     from Allens Creek and diversions from the Brazos River, and to
1-38     divert and use from the reservoir an amount of water specified in
1-39     the permit issued under Subsection (b) of this section or in
1-40     amendment granted by the Texas Natural Resource Conservation
1-41     Commission in accordance with the Water Code, up to an average of
1-42     500,000 acre-feet of water per year.  Water may be diverted,
1-43     impounded, and used only in the amounts and for the purposes and
1-44     under the terms of the permit as so issued or amended.
1-45           (b)  Upon application by the Texas Water Development Board
1-46     pursuant to Section 11.1311, Water Code, the Texas Natural Resource
1-47     Conservation Commission shall reissue without notice or hearing
1-48     Water Appropriation Permit No. 2925 previously issued for the
1-49     Allens Creek Reservoir.  The permit shall be issued in the name of
1-50     the Texas Water Development Board and it shall have a priority date
1-51     of September 1, 1999.  The date to commence construction of the
1-52     reservoir shall be not later than September 1, 2018.  The Texas
1-53     Natural Resource Conservation Commission may extend such time for
1-54     beginning of construction for good cause.
1-55           (c)  Pursuant to Section 11.1311, Water Code, the Texas Water
1-56     Development Board may transfer interests in the reissued permit for
1-57     the Allens Creek Reservoir to a municipality, river authority,
1-58     other political subdivision, or water supply corporation organized
1-59     under Chapter 67, Water Code, as otherwise provided by law.
1-60           (d)  Pursuant to Section 11.1311, Water Code, the reissued
1-61     permit for the Allens Creek Reservoir may be amended by the Texas
1-62     Natural Resource Conservation Commission as otherwise provided by
1-63     law upon submission of an application to amend by the holder or
1-64     holders of the permit.  The permit as so amended shall have a
 2-1     priority date of September 1, 1999, provided the authorizations in
 2-2     the amended permit do not exceed those set forth in Subsection (a)
 2-3     of this section.  The Texas Natural Resource Conservation
 2-4     Commission shall process and issue any amendment to the permit
 2-5     according to the provisions of Chapter 11, Water Code, including
 2-6     but not limited to directing that stream flow restrictions and
 2-7     other conditions and restrictions be placed in the amended permit
 2-8     to protect senior water rights and to comply with Sections 11.147,
 2-9     11.150, and 11.152, Water Code.  The Parks and Wildlife Department
2-10     shall propose to the Texas Natural Resource Conservation Commission
2-11     any terms recommended for inclusion in the amended permit for
2-12     protection of instream uses and bays and estuaries pursuant to
2-13     Section 11.147, Water Code, and fish and wildlife habitat pursuant
2-14     to Section 11.152, Water Code.
2-15           SECTION 1.03.  Using the state participation account of the
2-16     Texas Water Development Fund II to encourage optimal regional
2-17     development of the Allens Creek Reservoir project, the Texas Water
2-18     Development Board is authorized to acquire the entire or any
2-19     undivided interest in the Allens Creek site, provided that the
2-20     total amount of money invested by the Texas Water Development Board
2-21     in the site shall not exceed $20 million with $1.8 million of such
2-22     investment to be for reimbursement to Brazos River Authority for
2-23     costs incurred to obtain and hold its option to acquire such site.
2-24     The legislature finds that the cost of acquisition of the site for
2-25     the Allens Creek Reservoir project exceeds the current financing
2-26     capabilities of the area involved, and the optimum regional
2-27     development of the Allens Creek site cannot be reasonably financed
2-28     by local interests without state participation.
2-29           SECTION 1.04.  Using funds from the state participation
2-30     account of the Texas Water Development Fund II, the Texas Water
2-31     Development Board is authorized to issue bonds to acquire up to 50
2-32     percent of any undivided interest in the Allens Creek Reservoir
2-33     project, including the entire or any undivided interest in the
2-34     site.  The legislature finds that the cost of the Allens Creek
2-35     Reservoir project exceeds the current financing capabilities of the
2-36     area involved, and the optimum regional development of the Allens
2-37     Creek Reservoir project cannot be reasonably financed by local
2-38     interests without state participation.
2-39           SECTION 1.05.  Any contract providing for state participation
2-40     in the Allens Creek site or the construction of a reservoir at such
2-41     site shall provide for the purchase of the Texas Water Development
2-42     Board's interest in the facility pursuant to the provisions of
2-43     Subsection (b), Section 16.186, Water Code.  The Texas Water
2-44     Development Board may contract for such a sale with a municipality,
2-45     a river authority, a political subdivision or a water supply
2-46     corporation organized under Chapter 67, Water Code.
2-47                                  ARTICLE 2
2-48           SECTION 2.01.  Subchapter D, Chapter 11, Water Code, is
2-49     amended by adding Section 11.1311 to read as follows:
2-50           Sec. 11.1311.  APPROVAL OF CERTAIN APPLICATIONS WITHOUT
2-51     HEARING.  (a)  If a permit for a reservoir project which is listed
2-52     on the effective date of this section as a recommended project in
2-53     the current state water plan has been abandoned, voluntarily
2-54     canceled, or forfeited for failure to commence construction within
2-55     the time specified by law, and the reservoir project site is owned
2-56     by a municipality, river authority, other political subdivision, or
2-57     water supply corporation organized under Chapter 67, the commission
2-58     may reissue that same permit with a new priority date to the board
2-59     without notice or hearing, upon submission of an application by the
2-60     board.
2-61           (b)  The board may transfer interests in a permit issued
2-62     under this section to a municipality, river authority, other
2-63     political subdivision, or water supply corporation organized under
2-64     Chapter 67 as otherwise provided by law.
2-65           (c)  A permit issued pursuant to this section shall be
2-66     administered in accordance with this chapter and as otherwise
2-67     provided by law.
2-68                                  ARTICLE 3
2-69           SECTION 3.01.  Nothing in this Act shall be construed as
 3-1     prohibiting or impairing any lawful use, sale, or other curtailment
 3-2     or diminution of waters that contribute to the flows of the Brazos
 3-3     River at the proposed point of diversion for the Allens Creek
 3-4     Reservoir project including, without limitation, curtailment or
 3-5     diminution of discharges of groundwater into tributaries of the
 3-6     Brazos River upstream of such point, whether due to use or sale of
 3-7     such groundwater or any other reason.
 3-8           SECTION 3.02.  This Act takes effect September 1, 1999.
 3-9           SECTION 3.03.  The importance of this legislation and the
3-10     crowded condition of the calendars in both houses create an
3-11     emergency and an imperative public necessity that the
3-12     constitutional rule requiring bills to be read on three several
3-13     days in each house be suspended, and this rule is hereby suspended.
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