SRC-MWN S.B. 1326 77(R) BILL ANALYSIS Senate Research Center S.B. 1326 By: Truan Natural Resources 3/16/2001 As Filed DIGEST AND PURPOSE The desalination of brackish water is rapidly becoming an economical source of municipal water supply, especially in conjunction with electric power generation. However, moving water from electric power generation facilities may require interbasin transfer. Furthermore, desalination is currently not eligible for financial assistance on the same state participation basis as other water projects. As proposed, S.B. 1326 permits interbasin transfer of surface water produced by desalination without meeting the requirements normally required for transfer of surface water or groundwater. Additionally, it makes desalination projects eligible for funding on the same participation basis as other water projects. S.B 1326 also requires the General Land Office and the Parks and Wildlife Department to study certain issues relating to desalination production. RULEMAKING AUTHORITY This bill does not expressly grant any additional rulemaking authority to a state officer, institution, or agency. SECTION BY SECTION ANALYSIS SECTION 1. Amends Section 11.085(v), Water Code, to provide that the provisions of this section do not apply to a proposed transfer of water made fresh by desalination for municipal or industrial purposes. SECTION 2. Amends Chapter 15C, Water Code, by adding Section 15.117, as follows: Sec. 15.117. FINANCIAL ASSISTANCE FOR DESALINATION PROJECTS. Authorizes the Texas Water Development Board (board) to provide funding for desalination projects on the same participation basis as other water projects. SECTION 3. Requires the General Land Office and the Texas Parks and Wildlife Department together to conduct studies regarding the disposal of brine produced from desalination of water for municipal purposes. SECTION 4. Effective date: upon passage or September 1, 2001.