By Counts                                             H.B. No. 3528
         77R12360 QS-D                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to the consolidation and use of certain fees under Chapter
 1-3     26, Water Code.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1.  Section 26.0291, Water Code, is amended to read
 1-6     as follows:
 1-7           Sec. 26.0291.  WATER QUALITY [WASTE TREATMENT INSPECTION]
 1-8     FEE. (a)  An annual water quality [waste treatment inspection] fee
 1-9     is imposed on:
1-10                 (1)  each wastewater [permittee for each waste]
1-11     discharge permit holder for each wastewater discharge permit held;
1-12     and
1-13                 (2)  each user of water in proportion to the user's
1-14     water right, through permit or contract, as reflected in the
1-15     commission's records [by the permittee].
1-16           (b)  The fee is to supplement any other funds available to
1-17     pay expenses of the commission related to:
1-18                 (1)  [in] inspecting waste treatment facilities; and
1-19                 (2)  enforcing the laws of the state and the rules of
1-20     the commission governing:
1-21                       (A)  waste discharge and waste treatment
1-22     facilities, including any expenses [of the commission] necessary
1-23     [to obtain from the federal government delegation of and] to
1-24     administer the national pollutant discharge elimination system
 2-1     (NPDES) program;
 2-2                       (B)  the water resources of this state, including
 2-3     the water quality management programs under Section 26.0135; and
 2-4                       (C)  any other water resource management programs
 2-5     reasonably related to the activities of the persons required to pay
 2-6     a fee under this section.
 2-7           (c)  The fee for each year is imposed on each permit or water
 2-8     right in effect during any part of the year.  The commission may
 2-9     establish reduced fees for inactive permits.
2-10           (d)  Irrigation water rights are not subject to a fee under
2-11     this section.
2-12           (e) [(b)]  The commission by rule shall adopt a fee schedule
2-13     for determining the amount of the fee to be charged.  The amount of
2-14     the fee may not exceed $75,000 [$25,000] for each [waste discharge]
2-15     permit or contract [held by a permittee].  The maximum annual fee
2-16     under this section for a wastewater discharge or waste treatment
2-17     facility that holds a water right for the use of water by the
2-18     facility may not exceed $75,000.  In determining the amount of a
2-19     fee under this section, the commission may consider:
2-20                 (1)  waste discharge permitting factors such as flow
2-21     volume, toxic pollutant potential, level of traditional pollutant,
2-22     and heat load;
2-23                 (2)  [.  The commission may consider] the designated
2-24     uses and segment ranking classification of the water affected by
2-25     discharges from the permitted facility;
2-26                 (3)  [.  Finally, the commission also may consider] the
2-27     expenses necessary to obtain and administer the NPDES program;
 3-1                 (4)  the reasonable costs of administering the water
 3-2     quality management programs under Section 26.0135; and
 3-3                 (5)  any other reasonable costs necessary to administer
 3-4     and enforce a water resource management program reasonably related
 3-5     to the activities of the persons required to pay a fee under this
 3-6     section.  [The commission shall not adopt any rule designed to
 3-7     increase the fee imposed under this section on a treatment works
 3-8     owned by a local government, as those terms are defined in Section
 3-9     26.001 of this code, before August 31, 1999.]
3-10           (f) [(c)]  The fees collected under this section shall be
3-11     deposited to the credit of the water resource management account,
3-12     an account in the general revenue fund.
3-13           (g) [(d)]  The commission may adopt rules necessary to
3-14     administer this section.
3-15           (h) [(e)]  A fee collected under this section is in addition
3-16     to any other fee that may be charged under this chapter.
3-17           SECTION 2.  Sections 26.0135(a) and (b), Water Code, are
3-18     amended to read as follows:
3-19           (a)  To ensure clean water, the commission shall establish
3-20     the strategic and comprehensive monitoring of water quality and the
3-21     periodic assessment of water quality in each watershed and river
3-22     basin of the state.  In order to conserve public funds and avoid
3-23     duplication of effort, subject to adequate funding under Section
3-24     26.0291 [Subsection (h)], river authorities shall, to the greatest
3-25     extent possible and under the supervision of the commission,
3-26     conduct water quality monitoring and assessments in their own
3-27     watersheds.  Watershed monitoring and assessments involving
 4-1     agricultural or silvicultural nonpoint source pollution shall be
 4-2     coordinated through the State Soil and Water Conservation Board
 4-3     with local soil and water conservation districts.  The water
 4-4     quality monitoring and reporting duties under this section apply
 4-5     only to a river authority that has entered into an agreement with
 4-6     the commission to perform those duties.  The commission, either
 4-7     directly or through cooperative agreements and contracts with local
 4-8     governments, shall conduct monitoring and assessments of watersheds
 4-9     where a river authority is unable to perform an adequate assessment
4-10     of its own watershed.  The monitoring program shall provide data to
4-11     identify significant long-term water quality trends, characterize
4-12     water quality conditions, support the permitting process, and
4-13     classify unclassified waters.  The commission shall consider
4-14     available monitoring data and assessment results in developing or
4-15     reviewing wastewater permits and stream standards and in conducting
4-16     other water quality management activities.  The assessment must
4-17     include a review of wastewater discharges, nonpoint source
4-18     pollution, nutrient loading, toxic materials, biological health of
4-19     aquatic life, public education and involvement in water quality
4-20     issues, local and regional pollution prevention efforts, and other
4-21     factors that affect water quality within the watershed.  The
4-22     monitoring and assessment required by this section is a continuing
4-23     duty, and the monitoring and assessment shall be periodically
4-24     revised to show changes in the factors subject to assessment.
4-25           (b)  In order to assist in the coordination and development
4-26     of assessments and reports required by this section, a river
4-27     authority shall organize and lead a basin-wide steering committee
 5-1     that includes persons paying fees under Section 26.0291 [Subsection
 5-2     (h)], private citizens, the State Soil and Water Conservation
 5-3     Board, representatives from other appropriate state agencies,
 5-4     political subdivisions, and other persons with an interest in water
 5-5     quality matters of the watershed or river basin.  Based on
 5-6     committee and public input, each steering committee shall develop
 5-7     water quality objectives and priorities that are achievable
 5-8     considering the available technology and economic impact.  The
 5-9     objectives and priorities shall be used to develop work plans and
5-10     allocate available resources under Section 26.0291 [Subsection
5-11     (h)].  Each committee member shall help identify significant water
5-12     quality issues within the basin and shall make available to the
5-13     river authority all relevant water quality data held by the
5-14     represented entities.  A river authority shall also develop a
5-15     public input process that provides for meaningful comments and
5-16     review by private citizens and organizations on each basin summary
5-17     report.  A steering committee established by the commission to
5-18     comply with this subsection in the absence of a river authority or
5-19     other qualified local government is not subject to Chapter 2110,
5-20     Government Code [Article 6252-33, Revised Statutes].
5-21           SECTION 3.  Section 26.0135(d), Water Code, as amended by
5-22     Chapters  101 and 1082, Acts of the 75th Legislature, Regular
5-23     Session, 1997, is reenacted and amended to read as follows:
5-24           (d)  In the appropriate year of the cycle provided by
5-25     commission rules adopted to implement Section 26.0285, each river
5-26     authority shall submit a written summary report to the commission,
5-27     State Soil and Water Conservation Board, and Parks and Wildlife
 6-1     Department on the water quality assessment of the authority's
 6-2     watershed.  The summary report must identify concerns relating to
 6-3     the watershed or bodies of water, including an identification of
 6-4     bodies of water with impaired or potentially impaired uses, the
 6-5     cause and possible source of use impairment, and recommended
 6-6     actions the commission may take to address those concerns.  The
 6-7     summary report must discuss the public benefits from the water
 6-8     quality monitoring and assessment program, including efforts to
 6-9     increase public input in activities related to water quality and
6-10     the effectiveness of targeted monitoring in assisting the
6-11     permitting process.  A river authority shall submit a summary
6-12     report after the report has been approved by the basin steering
6-13     committee and coordinated with the public and the commission.  A
6-14     river authority shall hold basin steering committee meetings and
6-15     shall invite users of water and wastewater permit holders in the
6-16     watershed who pay fees under Section 26.0291 [Subsection (h)] to
6-17     review the draft of the work plans and summary report.  A river
6-18     authority shall inform those parties of the availability and
6-19     location of the summary report for inspection and shall solicit
6-20     input from those parties concerning their satisfaction with or
6-21     suggestions for modification of the summary report for the
6-22     watershed, the operation or effectiveness of the watershed
6-23     monitoring and assessment program authorized by this section, and
6-24     the adequacy, use, or equitable apportionment of the program's
6-25     costs and funds.  A river authority shall summarize all comments
6-26     received from persons who pay fees under Section 26.0291
6-27     [Subsection (h)] and from steering committee members and shall
 7-1     submit the report and the summaries to the governor, the lieutenant
 7-2     governor, and the speaker of the house of representatives not later
 7-3     than the 90th day after the date the river authority submits the
 7-4     summary report to the commission and other agencies.
 7-5           SECTION 4.  Section 26.0135(h), Water Code, is amended to
 7-6     read as follows:
 7-7           (h)  The commission shall apportion, assess, and recover the
 7-8     reasonable costs of administering the water quality management
 7-9     programs under this section [from users of water and wastewater
7-10     permit holders in the watershed according to the records of the
7-11     commission generally in proportion to their right, through permit
7-12     or contract, to use water from and discharge wastewater in the
7-13     watershed.  Irrigation water rights will not be subject to this
7-14     assessment].  The cost to river authorities and others to conduct
7-15     water quality monitoring and assessment shall be subject to prior
7-16     review and approval by the commission as to methods of allocation
7-17     and total amount to be recovered.  The commission shall adopt rules
7-18     to supervise and implement the water quality monitoring,
7-19     assessment, and associated costs.  The rules shall ensure that
7-20     water users and wastewater dischargers do not pay excessive
7-21     amounts, [that program funds are equitably apportioned among
7-22     basins,] that a river authority may recover no more than the actual
7-23     costs of administering the water quality management programs called
7-24     for in this section, and that no municipality shall be assessed the
7-25     cost for any efforts under this section that duplicate water
7-26     quality management activities described in Section 26.177 of this
7-27     chapter.  [The rules concerning the apportionment and assessment of
 8-1     reasonable costs shall provide for a recovery of not more than
 8-2     $5,000,000 annually.  Costs recovered by the commission are to be
 8-3     deposited to the credit of the water resource management account
 8-4     and may be used only to accomplish the purposes of this section.
 8-5     The commission may apply not more than 10 percent of the costs
 8-6     recovered annually toward the commission's overhead costs for the
 8-7     administration of this section and the implementation of regional
 8-8     water quality assessments.  The commission, with the assistance and
 8-9     input of each river authority, shall file a written report
8-10     accounting for the costs recovered under this section with the
8-11     governor, the lieutenant governor, and the speaker of the house of
8-12     representatives on or before December 1 of each even-numbered
8-13     year.]
8-14           SECTION 5.  Section 26.0135(j), Water Code, is repealed.
8-15           SECTION 6.  Water resource management account balances
8-16     dedicated to a particular purpose under Sections 26.0135 and
8-17     26.0291, Water Code, that have not been expended before the
8-18     effective date of this Act may be used for the purposes authorized
8-19     by this Act.
8-20           SECTION 7.  This Act takes effect September 1, 2002, and
8-21     applies only to fees due on or after that date.  The assessment and
8-22     collection of fees due before the effective date of this Act are
8-23     governed by the former law, and that law is continued in effect for
8-24     that purpose.