C.S.S.B. 1902 78(R)    BILL ANALYSIS


C.S.S.B. 1902
By: Lucio
Natural Resources
Committee Report (Substituted)



BACKGROUND AND PURPOSE 

Currently, there is no requirement that developments bordering the Rio
Grande River and the Laguna Madre and/or the Gulf of Mexico, which are
especially susceptible to flooding from tropical storms, ensure adequate
water drainage. The needs of the residents of those areas, which include
colonias and economically distressed areas, include safety from floods and
flooding.  
   
Historically, irrigation districts have been charged with the
responsibility of providing irrigation water to farmers and also providing
drainage services to related agricultural services. Likewise, drainage
districts are charged with the responsibility of providing drainage of
areas falling outside municipalities, resulting in concurrent jurisdiction
over many drainage areas. 

By and large, incorporated cities are responsible for providing
underground storm sewers and providing for drainage ditches within the
boundaries of a city. The counties in which the municipalities are located
are responsible for providing drainage of all areas outside the boundaries
of the cities. Drainage districts usually are responsible for providing
the major drainage arteries into which the municipalities and smaller
ditches can empty. Irrigation districts are usually responsible only for
providing drainage for the excess irrigation and agricultural water they
handle.  

Unlike elsewhere in Texas where water is a flow resource, surface water in
the Rio Grande below Amistad is a stock resource meaning that water
accumulates in Amistad and Falcon reservoirs and is released on demand.
Amistad and Falcon reservoirs are considered one system with water
frequently released from the upstream dam (Amistad) to replenish Falcon
reservoir and meet the demands in the Lower Rio Grande Valley.  The
watermaster is the authorized agent allowed to request releases of United
States water held in storage at Amistad/Falcon. 

C.S.S.B. 1902 would establish provisions regarding the regulation of the
subdivision or development of land in those areas.  C.S.S.B. 1902 creates
the Rio Grande Regional Water Authority (RGRWA) as a conservation and
reclamation district within Cameron, Hidalgo, Starr, Willacy, Webb and
Zapata counties. 

C.S.S.B. 1902 gives a person, who has a permit issued by the commission,
the authorization to use the Rio Grande banks and bed for the transport of
privately owned water from the owner to a purchaser of the water.  The
watermaster for the Rio Grande is given authorization to store privately
owned water in transit for future release, and the contract to purchase
the water must specify that the contract is for the purchase and delivery
of a specified amount of water, less the carriage losses incurred in
transit.  

In addition to existing authority of watermasters, the bill makes clear
that the Rio Grande watermaster has certain roles in cases of imminent
threat to public health and safety or the environment. The bill requires
the Texas Commission on Environmental Quality (TCEQ) to make rules in this
area to define the scope of those duties. 

RULEMAKING AUTHORITY

It is the committee's opinion that rulemaking authority is expressly
granted to the Texas Commission on Environmental Quality in SECTION 6.01
(Sec. 11.3271 , Water Code) of this bill. 


 

ANALYSIS

C.S.S.B. 1902 creates the Rio Grande Regional Water Authority (RGRWA) to
accomplish the purposes of Section 59, Article XVI, Texas Constitution.
The RGRWA would be governed by a 15member board of directors, with nine
members appointed by the Governor (geographically balanced and
representative of various local interests) and six members appointed one
each by the constituent county commissioners courts.  The bill provides
that the appointed directors must take the constitutional oath of office
and pay a bond sufficient to the secretary of state.  Furthermore, the
directors are not entitled to any compensation for service on the board.
 
The RGRWA would have no taxing authority.  All revenue transactions would
be through mutual agreement of participating parties.   This Act
authorizes the authority to issue bonds in order to accomplish the
purposes of this Act; the bonds are exempt from taxation from the state,
county, municipal corporation, or other political subdivision.  

C.S.S.B. 1902 provides that the Rio Grande watermaster divide the water of
the streams or other sources of supply of the division in accordance with
adjudicated water rights and regulate the controlling works of reservoirs
and diversion works in time of water shortage, or to prevent waste. The
substitute requires the TCEQ to adopt rules specifying the watermaster's
duties in the event of an imminent threat to public health and safety or
the environment.  Provides that rules adopted under this subsection must
address terrorist response. The substitute would also authorize a person,
who obtains a permit in accordance with rules prescribed by theTCEQ, to
use the banks and bed of the Rio Grande to convey privately owned water
pumped from an underground reservoir to the place of use or the point of
diversion by a person who has contracted with the owner of the water to
purchase the water.  Likewise, the substitute authorizes the Rio Grande
watermaster to store water that is to be released at a later time, in a
reservoir en route to the place of use or point of diversion by the
purchaser.  The substitute provides that a contract for the purchase of
privately owned water to be conveyed to the purchaser, must specify that
the contract is for the purchase and delivery of a specified amount of
water. The substitute also requires that carriage loss incurred in transit
be measured and described as required by TCEQ  rule and states that the
TCEQ may not issue a permit if it determines that the water to be conveyed
would degrade the water quality of the Rio Grande.   

The substitute also provides that the watermaster is the official recorder
of all instruments, including deeds, deeds of trust, financing statements,
security agreements, and liens that the are filed in connection with water
rights relating to water in the lower, middle, or upper basin of the Rio
Grande that are subject to a permit.  The watermaster may charge a fee in
connection with recordation and shall prescribe rules necessary for the
implementation of a recordation system. 

The substitute provides that the watermaster provisions of the bill do not
apply to the Rio Grande above the Fort Quitman Dam. 

Finally, the substitute provides that as soon as practicable after
September 1, 2003 the TCEQ shall adopt rules necessary for the
implementation of the watermaster provisions of the bill and shall
expedite any application for a permit for the delivery of water down the
banks and bed of the Rio Grande under Sec. 11.042, Water Code. 

EFFECTIVE DATE

September 1, 2003

COMPARISON OF ORIGINAL TO SUBSTITUTE

C.S.S.B. 1902 would take the area within the corporate limits of the City
of Laredo out of the Rio Grande Water Authority.  The area of Webb county
will still be included in the bill with the exception of the City of
Laredo. 



 

C.S.S.B. 1902 adds Section 11.3271 to Subchapter G, Chapter 11, Water Code
to do the following:  
C.S.S.B. 1902 amends the Water Code to add a section which applies only to
the watermaster with jurisdiction over the Rio Grande and the water
division for which that watermaster is appointed.  The bill requires the
watermaster to divide the water of the streams or other sources of supply
in accordance with the adjudicated water rights; requires the watermaster
to regulate the controlling works of reservoirs and diversion works in
time of water shortage, as is necessary due to rights existing in the
streams, to prevent the waste of water or its diversion, taking, storage,
or use in excess of the quantities to which the holders of water rights
are lawfully entitled; and  authorizes the water master to regulate the
distribution of water from any system of works that serves users whose
rights have been separately determined. 

C.S.S.B. 1902 also prohibits the duties of the watermaster in any
activities relating to other programs of the commission, except as
provided in this section.  The bill stipulates that the duties of the
watermaster include activities of imminent threat to public health and
safety or the environment. Further, the bill requires the commission to
adopt rules to define situations of imminent threat, and the rules must
address terrorism response.   

C.S.S.B. 1902 also authorizes the watermaster to store water in transit
for release at a later time.  The bill defines "water in transit" as
water, not including state water, that a person has pumped from an
underground reservoir from the point of discharge into the river to the
place of use or the point of diversion by a person who has contracted with
the owner of the water in transit to purchase, provided that the contract
specify that the contract is for the purchase and delivery of a specified
amount of water less the carriage losses incurred in transit, as described
and measured by commission rules.  

C.S.S.B. 1902 stipulates that the watermaster may only allow storage of
the water when the storage will not hinder any other Rio Grande surface
water right's ability to store its maximum authorized capacity.  The bill
also provides that prior to issuing a permit to convey water, the TCEQ
shall adopt rules providing for the method to account for all water
conveyed via this Act.  Further, the bill stipulates that a permit holder
may not share in any beneficial state water inflows into the Rio Grande,
and the permit holder is entitled to convey only the amount of water
specified in the permit, less the carriage losses, as described and
measured by commission rules.  Also, the bill provides that any rules
adopted must be consistent with certain treaties and minute orders.  The
bill also stipulates that a permit may not be issued if the water to be
conveyed would degrade the water quality of the Rio Grande. 

C.S.S.B. 1902 names the Rio Grande Watermaster as the official recorder
for all financial instruments that deal with the purchase of water rights.
All financial records, including liens, would be required to be filed with
the Rio Grande Watermaster. 

C.S.S.B. 1902 also adds a provision which stipulates that this section
does not apply to the Rio Grande above the Fort Quitman Dam.