By Bernsen S.B. No. 1641
77R6831 MI-D
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to financial assistance for water development projects to
1-3 offset the effects of interbasin transfers.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Subchapter C, Chapter 11, Water Code, is amended
1-6 by adding Section 11.0855 to read as follows:
1-7 Sec. 11.0855. INTERBASIN TRANSFER OFFSET FEE. (a) As a
1-8 condition of any authorization for an interbasin transfer of
1-9 surface water, the parties to the contract for the interbasin
1-10 transfer must pay, in addition to any other fees prescribed by law,
1-11 an annual interbasin transfer offset fee.
1-12 (b) The amount of the interbasin transfer offset fee is an
1-13 amount equal to $2 per acre-foot of surface water transferred
1-14 annually out of the basin of origin under the contract for the
1-15 interbasin transfer. If either the basin of origin or the
1-16 receiving basin undertakes a water conservation or water
1-17 development project approved by the board, the board may reduce the
1-18 fee to $1 per acre-foot of water transferred annually.
1-19 (c) The contract for the interbasin transfer must:
1-20 (1) specify whether the fee imposed by this section
1-21 will be paid by:
1-22 (A) the party from the receiving basin;
1-23 (B) the party from the basin of origin; or
1-24 (C) both parties, in individual amounts
2-1 specified in the contract;
2-2 (2) provide that:
2-3 (A) no loss will occur in the basin of origin;
2-4 or
2-5 (B) an impact statement must be prepared to
2-6 examine the basin of origin's ability to meet the demands of the
2-7 next 100 years; and
2-8 (3) if an impact statement prepared under Subdivision
2-9 (2)(B) shows that the basin of origin cannot meet its projected
2-10 future needs, provide that:
2-11 (A) the basin of origin set aside a quantity of
2-12 water sufficient to meet projected future needs; or
2-13 (B) the receiving basin make available to the
2-14 basin of origin a quantity of water sufficient to meet that basin's
2-15 projected future needs.
2-16 (d) The interbasin transfer offset fee shall be paid
2-17 annually to the board in a manner and at the time prescribed by the
2-18 board. Fees collected under this section shall be deposited to the
2-19 credit of the interbasin transfer offset fund.
2-20 (e) The board by rule may:
2-21 (1) establish due dates, schedules, and procedures for
2-22 the assessment and collection of the fees; and
2-23 (2) provide for the assessment of penalties for late
2-24 payment of fees and the assessment of interest for the late payment
2-25 of fees or penalties in amounts not to exceed rates established for
2-26 delinquent taxes under Sections 111.060 and 111.061, Tax Code.
2-27 SECTION 2. Chapter 17, Water Code, is amended by adding
3-1 Subchapter M to read as follows:
3-2 SUBCHAPTER M. INTERBASIN TRANSFER OFFSET FUND
3-3 Sec. 17.1001. DEFINITION. In this subchapter, "fund" means
3-4 the interbasin transfer offset fund.
3-5 Sec. 17.1002. INTERBASIN TRANSFER OFFSET FUND. (a) The
3-6 interbasin transfer offset fund is a special account in the state
3-7 treasury.
3-8 (b) The fund consists of:
3-9 (1) fees collected and deposited to the fund under
3-10 Section 11.0855; and
3-11 (2) penalties collected for unpaid fees due under
3-12 Section 11.0855 and interest accrued on the unpaid fees or
3-13 penalties.
3-14 Sec. 17.1003. USE OF FUND. Money in the fund may be used
3-15 only by the board to provide financial assistance under this
3-16 subchapter.
3-17 Sec. 17.1004. FINANCIAL ASSISTANCE. (a) The board may
3-18 provide financial assistance to a river authority, political
3-19 subdivision, or other water supplier to pay for the construction of
3-20 a water development project, including a reservoir, desalination
3-21 plant, or major conservation project, to offset the loss of surface
3-22 water from a basin of origin in an interbasin transfer. Financial
3-23 assistance under this section may include the award of grants.
3-24 (b) The board by rule shall establish eligibility standards
3-25 and procedures for awarding and administering the financial
3-26 assistance authorized by this section and may establish priorities
3-27 among types of projects eligible for assistance.
4-1 (c) An applicant for financial assistance under this
4-2 subchapter must submit a preliminary proposal for the proposed
4-3 water development project to the board at the time and in the
4-4 manner prescribed by board rule.
4-5 (d) In considering applications, the board shall consider
4-6 the perceived need for the proposed project in the basin of origin,
4-7 the contribution of the project to the public good, and the
4-8 demonstrated experience and competence of the applicant in carrying
4-9 out projects of the type proposed.
4-10 Sec. 17.1005. ADVISORY COMMITTEE. (a) The Interbasin
4-11 Transfer Offset Fund Advisory Committee consists of:
4-12 (1) the presiding officer of the standing committee of
4-13 the house of representatives having primary jurisdiction over
4-14 matters relating to natural resources;
4-15 (2) the presiding officer of the standing committee of
4-16 the senate having primary jurisdiction over matters relating to
4-17 natural resources; and
4-18 (3) two members of each house to be appointed by the
4-19 presiding officer of the appropriate committee.
4-20 (b) The advisory committee shall recommend to the board when
4-21 and for what projects money in the fund may be spent.
4-22 (c) The board may not spend money in the fund without first
4-23 consulting the advisory committee.
4-24 SECTION 3. (a) This Act takes effect September 1, 2001.
4-25 (b) The change in law made by Section 11.0855, Water Code,
4-26 as added by this Act, applies only to parties to a contract for an
4-27 interbasin transfer that is entered into on or after September 1,
5-1 2001.