1-1                                   AN ACT
 1-2     relating to the exemption of small hydroelectric facilities from
 1-3     water quality management and watermaster fees.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1.  Section 11.329, Water Code, is amended by adding
 1-6     Subsection (g) to read as follows:
 1-7           (g)  The commission may not assess costs under this section
 1-8     against a holder of a non-priority hydroelectric right that owns or
 1-9     operates privately owned facilities that collectively have a
1-10     capacity of less than two megawatts.  This subsection is not
1-11     intended to affect in any way the fees assessed on a water right
1-12     holder by the commission under Section 1.29(d), Chapter 626, Acts
1-13     of the 73rd Legislature, Regular Session, 1993.  For purposes of
1-14     Section 1.29(d), Chapter 626, Acts of the 73rd Legislature, Regular
1-15     Session, 1993, a holder of a non-priority hydroelectric right that
1-16     owns or operates privately owned facilities that collectively have
1-17     a capacity of less than two megawatts shall be assessed fees at the
1-18     same rate per acre-foot charged to a holder of a non-priority
1-19     hydroelectric right that owns or operates privately owned
1-20     facilities that collectively have a capacity of more than two
1-21     megawatts.
1-22           SECTION 2.  Section 11.404, Water Code, is amended by
1-23     amending Subsection (a) and adding Subsection (e) to read as
1-24     follows:
1-25           (a)  Except as provided by Subsection (e), the [The] trial
 2-1     court shall assess the costs and expenses of the watermaster and
 2-2     his staff against all persons receiving an allocation of the water
 2-3     in judicial custody.  The court shall assess the costs and expenses
 2-4     monthly or at other time intervals ordered by the court.
 2-5           (e)  The court may not assess costs and expenses under this
 2-6     section against a holder of a non-priority hydroelectric right that
 2-7     owns or operates privately owned facilities that collectively have
 2-8     a capacity of less than two megawatts.
 2-9           SECTION 3.  Subsection (h), Section 26.0135, Water Code, is
2-10     amended to read as follows:
2-11           (h)  The commission shall apportion, assess, and recover the
2-12     reasonable costs of administering the water quality management
2-13     programs under this section from users of water and wastewater
2-14     permit holders in the watershed according to the records of the
2-15     commission generally in proportion to their right, through permit
2-16     or contract, to use water from and discharge wastewater in the
2-17     watershed.  Irrigation water rights and non-priority hydroelectric
2-18     rights of a water right holder that owns or operates privately
2-19     owned facilities that collectively have a capacity of less than two
2-20     megawatts will not be subject to this assessment.  The cost to
2-21     river authorities and others to conduct water quality monitoring
2-22     and assessment shall be subject to prior review and approval by the
2-23     commission as to methods of allocation and total amount to be
2-24     recovered.  The commission shall adopt rules to supervise and
2-25     implement the water quality monitoring, assessment, and associated
2-26     costs.  The rules shall ensure that water users and wastewater
 3-1     dischargers do not pay excessive amounts, that program funds are
 3-2     equitably apportioned among basins, that a river authority may
 3-3     recover no more than the actual costs of administering the water
 3-4     quality management programs called for in this section, and that no
 3-5     municipality shall be assessed cost for any efforts that duplicate
 3-6     water quality management activities described in Section 26.177 of
 3-7     this chapter.  The rules concerning the apportionment and
 3-8     assessment of reasonable costs shall provide for a recovery of not
 3-9     more than $5,000,000 annually.  Costs recovered by the commission
3-10     are to be deposited to the credit of the water resource management
3-11     account and may be used only to accomplish the purposes of this
3-12     section.  The commission may apply not more than 10 percent of the
3-13     costs recovered annually toward the commission's overhead costs for
3-14     the administration of this section and the implementation of
3-15     regional water quality assessments.  The commission, with the
3-16     assistance and input of each river authority, shall file a written
3-17     report accounting for the costs recovered under this section with
3-18     the governor, the lieutenant governor, and the speaker of the house
3-19     of representatives on or before December 1 of each even-numbered
3-20     year.
3-21           SECTION 4.  This Act is not intended to affect in any way the
3-22     fees assessed on a water right holder by the Edwards Aquifer
3-23     Authority under Chapter 626, Acts of the 73rd Legislature, Regular
3-24     Session, 1993.
3-25           SECTION 5.  This Act takes effect September 1, 2001.
         _______________________________     _______________________________
             President of the Senate              Speaker of the House
               I hereby certify that S.B. No. 289 passed the Senate on
         March 7, 2001, by a viva-voce vote; and that the Senate concurred
         in House amendments on May 9, 2001, by a viva-voce vote.
                                             _______________________________
                                                 Secretary of the Senate
               I hereby certify that S.B. No. 289 passed the House, with
         amendments, on May 5, 2001, by a non-record vote.
                                             _______________________________
                                                Chief Clerk of the House
         Approved:
         _______________________________
                      Date
         _______________________________
                    Governor