Floor Packet Page No. 46
      Amend CSHB 2912 as follows:
      (1)  On page 53, line 20, at the end of ARTICLE 3 of the
bill, add a new SECTION 3.04 or other appropriately numbered
SECTION of the bill as follows:
      "SECTION 3.04.  Section 26.0291, Water Code, is amended to
read as follows:
      Sec. 26.0291.  WATER QUALITY <WASTE TREATMENT INSPECTION>
FEE. (a)  An annual water quality <waste treatment inspection> fee
is imposed on:
            (1)  each wastewater <permittee for each waste>
discharge permit holder for each wastewater discharge permit held;
and
            (2)  each user of water in proportion to the user's
water right, through permit or contract, as reflected in the
commission's records <by the permittee>.
      (b)  The fee is to supplement any other funds available to
pay expenses of the commission related to:
            (1)  <in> inspecting waste treatment facilities; and
            (2)  enforcing the laws of the state and the rules of
the commission governing:
                  (A)  waste discharge and waste treatment
facilities, including any expenses <of the commission> necessary
<to obtain from the federal government delegation of and> to
administer the national pollutant discharge elimination system
(NPDES) program;
                  (B)  the water resources of this state, including
the water quality management programs under Section 26.0135; and
                  (C)  any other water resource management programs
reasonably related to the activities of the persons required to pay
a fee under this section.
      (c)  The fee for each year is imposed on each permit or water
right in effect during any part of the year.  The commission may
establish reduced fees for inactive permits.
      (d)  Irrigation water rights are not subject to a fee under
this section.
      (e) <(b)>  The commission by rule shall adopt a fee schedule
for determining the amount of the fee to be charged.  The amount of
the fee may not exceed $75,000 <$25,000> for each <waste discharge>
permit or contract <held by a permittee>.  The maximum annual fee
under this section for a wastewater discharge or waste treatment
facility that holds a water right for the use of water by the
facility may not exceed $75,000.  In determining the amount of a
fee under this section, the commission may consider:
            (1)  waste discharge permitting factors such as flow
volume, toxic pollutant potential, level of traditional pollutant,
and heat load;
            (2)  <.  The commission may consider> the designated
uses and segment ranking classification of the water affected by
discharges from the permitted facility;
            (3)  <.  Finally, the commission also may consider> the
expenses necessary to obtain and administer the NPDES program;
            (4)  the reasonable costs of administering the water
quality management programs under Section 26.0135; and
            (5)  any other reasonable costs necessary to administer
and enforce a water resource management program reasonably related
to the activities of the persons required to pay a fee under this
section.  <The commission shall not adopt any rule designed to
increase the fee imposed under this section on a treatment works
owned by a local government, as those terms are defined in Section
26.001 of this code, before August 31, 1999.>
      (f) <(c)>  The fees collected under this section shall be
deposited to the credit of the water resource management account,
an account in the general revenue fund.
      (g) <(d)>  The commission may adopt rules necessary to
administer this section.
      (h) <(e)>  A fee collected under this section is in addition
to any other fee that may be charged under this chapter."
      (2)  On page 53, line 20, at the end of ARTICLE 3 of the bill
and after new SECTION 3.04 described above, add a new SECTION 3.05
or other appropriately numbered SECTION of the bill as follows:
      "SECTION 3.05.  Section 26.0135(h), Water Code, is amended to
read as follows:
      (h)  The commission shall apportion, assess, and recover the
reasonable costs of administering the water quality management
programs under this section <from users of water and wastewater
permit holders in the watershed according to the records of the
commission generally in proportion to their right, through permit
or contract, to use water from and discharge wastewater in the
watershed.  Irrigation water rights will not be subject to this
assessment>.  The cost to river authorities and others to conduct
water quality monitoring and assessment shall be subject to prior
review and approval by the commission as to methods of allocation
and total amount to be recovered.  The commission shall adopt rules
to supervise and implement the water quality monitoring,
assessment, and associated costs.  The rules shall ensure that
water users and wastewater dischargers do not pay excessive
amounts, <that program funds are equitably apportioned among
basins,> that a river authority may recover no more than the actual
costs of administering the water quality management programs called
for in this section, and that no municipality shall be assessed the
cost for any efforts under this section that duplicate water
quality management activities described in Section 26.177 of this
chapter.  <The rules concerning the apportionment and assessment of
reasonable costs shall provide for a recovery of not more than
$5,000,000 annually.  Costs recovered by the commission are to be
deposited to the credit of the water resource management account
and may be used only to accomplish the purposes of this section.
The commission may apply not more than 10 percent of the costs
recovered annually toward the commission's overhead costs for the
administration of this section and the implementation of regional
water quality assessments.  The commission, with the assistance and
input of each river authority, shall file a written report
accounting for the costs recovered under this section with the
governor, the lieutenant governor, and the speaker of the house of
representatives on or before December 1 of each even-numbered
year.>"
      (3)  On page 53, line 20, at the end of ARTICLE 3 of the bill
and after new SECTION 3.05 described above, add a new SECTION 3.06
or other appropriately numbered SECTION of the bill as follows:
      "SECTION 3.06.  Section 26.0135(j), Water Code, is repealed."
      (4)  On page 81, line 21, after SECTION 9.06 and before
SECTION 9.07 of the bill, add a new SECTION 9.07 of the bill as
follows:
      "SECTION 9.07.  Sections 26.0135(a) and (b), Water Code, are
amended to read as follows:
      (a)  To ensure clean water, the commission shall establish
the strategic and comprehensive monitoring of water quality and the
periodic assessment of water quality in each watershed and river
basin of the state.  In order to conserve public funds and avoid
duplication of effort, subject to adequate funding under Section
26.0291 <Subsection (h)>, river authorities shall, to the greatest
extent possible and under the supervision of the commission,
conduct water quality monitoring and assessments in their own
watersheds.  Watershed monitoring and assessments involving
agricultural or silvicultural nonpoint source pollution shall be
coordinated through the State Soil and Water Conservation Board
with local soil and water conservation districts.  The water
quality monitoring and reporting duties under this section apply
only to a river authority that has entered into an agreement with
the commission to perform those duties. The commission, either
directly or through cooperative agreements and contracts with local
governments, shall conduct monitoring and assessments of watersheds
where a river authority is unable to perform an adequate assessment
of its own watershed.  The monitoring program shall provide data to
identify significant long-term water quality trends, characterize
water quality conditions, support the permitting process, and
classify unclassified waters.  The commission shall consider
available monitoring data and assessment results in developing or
reviewing wastewater permits and stream standards and in conducting
other water quality management activities.  The assessment must
include a review of wastewater discharges, nonpoint source
pollution, nutrient loading, toxic materials, biological health of
aquatic life, public education and involvement in water quality
issues, local and regional pollution prevention efforts, and other
factors that affect water quality within the watershed.  The
monitoring and assessment required by this section is a continuing
duty, and the monitoring and assessment shall be periodically
revised to show changes in the factors subject to assessment.
      (b)  In order to assist in the coordination and development
of assessments and reports required by this section, a river
authority shall organize and lead a basin-wide steering committee
that includes persons paying fees under Section 26.0291 <Subsection
(h)>, private citizens, the State Soil and Water Conservation
Board, representatives from other appropriate state agencies,
political subdivisions, and other persons with an interest in water
quality matters of the watershed or river basin.  Based on
committee and public input, each steering committee shall develop
water quality objectives and priorities that are achievable
considering the available technology and economic impact.  The
objectives and priorities shall be used to develop work plans and
allocate available resources under Section 26.0291 <Subsection
(h)>.  Each committee member shall help identify significant water
quality issues within the basin and shall make available to the
river authority all relevant water quality data held by the
represented entities.  A river authority shall also develop a
public input process that provides for meaningful comments and
review by private citizens and organizations on each basin summary
report.  A steering committee established by the commission to
comply with this subsection in the absence of a river authority or
other qualified local government is not subject to Chapter 2110,
Government Code <Article 6252-33, Revised Statutes>."
      (5)  On page 81, line 21, after SECTION 9.06 of the bill and
SECTION 9.07 as described above, add a new SECTION 9.08 of the bill
as follows:
      "SECTION 9.08.  Section 26.0135(d), Water Code, as amended by
Chapters  101 and 1082, Acts of the 75th Legislature, Regular
Session, 1997, is reenacted and amended to read as follows:
      (d)  In the appropriate year of the cycle provided by
commission rules adopted to implement Section 26.0285, each river
authority shall submit a written summary report to the commission,
State Soil and Water Conservation Board, and Parks and Wildlife
Department on the water quality assessment of the authority's
watershed.  The summary report must identify concerns relating to
the watershed or bodies of water, including an identification of
bodies of water with impaired or potentially impaired uses, the
cause and possible source of use impairment, and recommended
actions the commission may take to address those concerns.  The
summary report must discuss the public benefits from the water
quality monitoring and assessment program, including efforts to
increase public input in activities related to water quality and
the effectiveness of targeted monitoring in assisting the
permitting process.  A river authority shall submit a summary
report after the report has been approved by the basin steering
committee and coordinated with the public and the commission.  A
river authority shall hold basin steering committee meetings and
shall invite users of water and wastewater permit holders in the
watershed who pay fees under Section 26.0291 <Subsection (h)> to
review the draft of the work plans and summary report.  A river
authority shall inform those parties of the availability and
location of the summary report for inspection and shall solicit
input from those parties concerning their satisfaction with or
suggestions for modification of the summary report for the
watershed, the operation or effectiveness of the watershed
monitoring and assessment program authorized by this section, and
the adequacy, use, or equitable apportionment of the program's
costs and funds.  A river authority shall summarize all comments
received from persons who pay fees under Section 26.0291
<Subsection (h)> and from steering committee members and shall
submit the report and the summaries to the governor, the lieutenant
governor, and the speaker of the house of representatives not later
than the 90th day after the date the river authority submits the
summary report to the commission and other agencies."
      (6)  On page 81, line 21 of the bill renumber SECTION 9.07 of
the bill as SECTION 9.09 of the bill and renumber the subsequent
sections appropriately.
      (7)  On page 113, line 6 of the bill, after "September 1,
2001." add:
      "The change in law made by this Act to Sections 26.0135 and
26.0291, Water Code relating to the consolidation of certain fees
relating to water quality takes effect September 1, 2002 and
applies only to fees due on or after that date.    The assessment
and collection of fees due before the effective date of this Act
are governed by the former law, and that law is continued in effect
for that purpose.  <>Water resource management account balances
dedicated to a particular purpose under Sections 26.0135 and
26.0291, Water Code, as that law exists prior to the changes in law
made by this Act that have not been expended before the effective
date of this Act may be used for the purposes authorized by this
Act."