HBA-EDN H.B. 3588 77(R) BILL ANALYSIS Office of House Bill AnalysisH.B. 3588 By: Cook Natural Resources 5/1/2001 Introduced BACKGROUND AND PURPOSE Currently, groundwater that is withdrawn under a surface mining permit issued by the Railroad Commission of Texas is exempt from regulation by a groundwater conservation district or any other regulations in place for surface water. The permit process does not take into account what the water will be used for after it has been used for surface mining or the impact such withdrawals will have on the aquifer. As the use of this water becomes a more attractive alternative to basin to basin transfers, consideration should be given to the end use of this water in the permit process. House Bill 3588 modifies provisions regarding permit requirements for the transfer of certain groundwater out of the basin of origin. 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 in SECTION 1 (Sections 11.556 and 11.557, Water Code) of this bill. ANALYSIS House Bill 3588 amends the Water Code to prohibit a person who withdraws groundwater for surface mining purposes under a surface mining permit issued by the Railroad Commission of Texas (RRC) from transporting out of the basin of origin groundwater withdrawn under that permit for mining purposes or in excess of amounts required for mining without first obtaining a permit from the Texas Natural Resource Conservation Commission (TNRCC). The bill sets forth provisions regarding what information must be included in an application for such a permit and the distribution of a summary of such information (Secs. 11.552 and 11.553). H.B. 3588 sets forth provisions regarding public and contested case hearings to be held on determination that a permit application is complete. The bill requires TNRCC to consider the effects of the proposed transfer on both the basin of origin and the receiving basin and sets forth conditions under which the transfer may be approved (Secs. 11.554 and 11.555). TNRCC, by rule, shall require the holder of a permit to establish not fewer than four monitoring wells designed to measure the level of the water table in the vicinity of a well from which groundwater is being withdrawn and transported and not fewer than four additional monitoring wells with testing equipment designed to measure contamination of the groundwater source. The bill requires a permit holder to present a weekly report to TNRCC that shows the level of the water table as measured at each well from which groundwater is being withdrawn and transported and the degree of purity of the groundwater source at each well. Such reports are public information. The bill sets forth provisions regarding financial assurance for interbasin transfers and compensation to property owners for damages and provides that TNRCC shall require the holder of a permit to provide financial assurance in a form and amount approved by TNRCC. TNRCC is required by rule to provide guidelines for the form and amount of financial assistance required, including guidelines for acceptable forms of insurance or for the deposit of cash or acceptable bonds or securities (Secs. 11.556 and 11.557). These provisions apply only to the transfer of groundwater that is withdrawn under a surface mining permit issued by RRC (Sec. 11.551). EFFECTIVE DATE On passage, or if the Act does not receive the necessary vote, the Act takes effect September 1, 2001.