By:  Armbrister                                                   S.B. No. 3  

A BILL TO BE ENTITLED
AN ACT
relating to the development and management of the water resources of the state, including the creation of a groundwater conservation district; imposing fees and providing penalties. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
ARTICLE 1. ENVIRONMENTAL FLOWS
SECTION 1.01. The heading to Section 5.506, Water Code, is amended to read as follows: Sec. 5.506. EMERGENCY SUSPENSION OF PERMIT CONDITION RELATING TO, AND EMERGENCY AUTHORITY TO MAKE AVAILABLE WATER SET ASIDE FOR, BENEFICIAL INFLOWS TO AFFECTED BAYS AND ESTUARIES AND INSTREAM USES. SECTION 1.02. Section 5.506, Water Code, is amended by adding Subsection (a-1) and amending Subsections (b) and (c) to read as follows: (a-1) State water that is set aside by the commission to meet the needs for freshwater inflows to affected bays and estuaries and instream uses under Section 11.1471(a)(2) may be made available temporarily for other essential beneficial uses if the commission finds that an emergency exists that cannot practically be resolved in another way. (b) The commission must give written notice of the proposed action [suspension] to the Parks and Wildlife Department before the commission suspends a permit condition under Subsection (a) or makes water available temporarily under Subsection (a-1) [this section]. The commission shall give the Parks and Wildlife Department an opportunity to submit comments on the proposed action [suspension] for a period of 72 hours from receipt of the notice and must consider those comments before issuing an order implementing the proposed action [imposing the suspension]. (c) The commission may suspend a permit condition under Subsection (a) or make water available temporarily under Subsection (a-1) [this section] without notice except as required by Subsection (b). SECTION 1.03. Subsection (j), Section 5.701, Water Code, is amended to read as follows: (j) The fee for other uses of water not specifically named in this section is $1 per acre-foot, except that no political subdivision may be required to pay fees to use water for recharge of underground freshwater-bearing sands and aquifers or for abatement of natural pollution. A fee is not required for a water right that is [This fee is waived for applications for instream-use water rights] deposited into the Texas Water Trust. SECTION 1.04. Section 11.002, Water Code, is amended by adding Subdivisions (15), (16), (17), (18), and (19) to read as follows: (15) "Environmental flow analysis" means the application of a scientifically derived process for predicting the response of an ecosystem to changes in instream flows or freshwater inflows. (16) "Environmental flow regime" means a schedule of flow quantities that reflects seasonal and yearly fluctuations that typically would vary geographically, by specific location in a watershed, and that are shown to be adequate to support a sound ecological environment and to maintain the productivity, extent, and persistence of key aquatic habitats in and along the affected water bodies. (17) "Environmental flow standards" means those requirements adopted by the commission under Section 11.1471. (18) "Flows commission" means the Environmental Flows Commission. (19) "Science advisory committee" means the Texas Environmental Flows Science Advisory Committee. SECTION 1.05. Subsection (a), Section 11.023, Water Code, is amended to read as follows: (a) To the extent that state water has not been set aside by the commission under Section 11.1471(a)(2) to meet downstream instream flow needs or freshwater inflow needs, state [State] water may be appropriated, stored, or diverted for: (1) domestic and municipal uses, including water for sustaining human life and the life of domestic animals; (2) agricultural uses and industrial uses, meaning processes designed to convert materials of a lower order of value into forms having greater usability and commercial value, including the development of power by means other than hydroelectric; (3) mining and recovery of minerals; (4) hydroelectric power; (5) navigation; (6) recreation and pleasure; (7) public parks; and (8) game preserves. SECTION 1.06. Section 11.0235, Water Code, is amended by amending Subsections (c) and (e) and adding Subsections (d-1) through (d-5), and (f) to read as follows: (c) The legislature has expressly required the commission while balancing all other public interests to consider and, to the extent practicable, provide for the freshwater inflows and instream flows necessary to maintain the viability of the state's streams, rivers, and bay and estuary systems in the commission's regular granting of permits for the use of state waters. As an essential part of the state's environmental flows policy, all permit conditions relating to freshwater inflows to affected bays and estuaries and instream flow needs must be subject to temporary suspension if necessary for water to be applied to essential beneficial uses during emergencies. (d-1) The legislature finds that to provide certainty in water management and development and to provide adequate protection of the state's streams, rivers, and bays and estuaries, the state must have a process with specific timelines for prompt action to address environmental flow issues in the state's major basin and bay systems, especially those systems in which unappropriated water is still available. (d-2) The legislature finds that: (1) in those basins in which water is available for appropriation, the commission should establish an environmental set-aside below which water should not be available for appropriation; and (2) in those basins in which the unappropriated water that will be set aside for instream flow and freshwater inflow protection is not sufficient to fully satisfy the environmental flow standards established by the commission, a variety of approaches, both public and private, for filling the gap must be explored and pursued. (d-3) The legislature finds that while the state has pioneered tools to address freshwater inflow needs for bays and estuaries, there are limitations to those tools in light of both scientific and public policy evolution. To fully address bay and estuary environmental flow issues, the foundation of work accomplished by the state should be improved. While the state's instream flow studies program appears to encompass a comprehensive and scientific approach for establishing a process to assess instream flow needs for rivers and streams across the state, more extensive review and examination of the details of the program, which may not be fully developed until the program is under way, are needed to ensure an effective tool for evaluating riverine environmental flow conditions. (d-4) The legislature finds that the management of water to meet instream flow and freshwater inflow needs should be evaluated on a regular basis and adapted to reflect both improvements in science related to environmental flows and future changes in projected human needs for water. In addition, the development of management strategies for addressing environmental flow needs should be an ongoing, adaptive process that considers and addresses local issues. (d-5) The legislature finds that recommendations for state action to protect instream flows and freshwater inflows should be developed through a consensus-based, regional approach involving balanced representation of stakeholders and that such a process should be encouraged throughout the state. (e) The fact that greater pressures and demands are being placed on the water resources of the state makes it of paramount importance to ensure [reexamine the process for ensuring] that these important priorities are effectively addressed by detailing how environmental flow standards are to be developed using the environmental studies that have been and are to be performed by the state and others and specifying in clear delegations of authority how those environmental flow standards will be integrated into the regional water planning and water permitting process [to the commission]. (f) The legislature recognizes that effective implementation of the approach provided by this chapter for protecting instream flows and freshwater inflows will require more effective water rights administration and enforcement systems than are currently available in most areas of the state. SECTION 1.07. The heading to Section 11.0236, Water Code, is amended to read as follows: Sec. 11.0236. [STUDY COMMISSION ON WATER FOR] ENVIRONMENTAL FLOWS COMMISSION. SECTION 1.08. Section 11.0236, Water Code, is amended by amending Subsections (a), (b), (c), (e) through (j), (n), and (o) and adding Subsection (p) to read as follows: (a) In recognition of the importance that the ecological soundness of our riverine, bay, and estuary systems and riparian lands has on the economy, health, and well-being of the state there is created the [Study Commission on Water for] Environmental Flows Commission. (b) The flows [study] commission is composed of nine [15] members as follows: (1) three [two] members appointed by the governor; (2) three [five] members of the senate appointed by the lieutenant governor; and (3) three [five] members of the house of representatives appointed by the speaker of the house of representatives[; [(4) the presiding officer of the commission or the presiding officer's designee; [(5) the chairman of the board or the chairman's designee; and [(6) the presiding officer of the Parks and Wildlife Commission or the presiding officer's designee]. (c) Of the members appointed under Subsection (b)(1): (1) one member must be a member of the commission; (2) one member must be a member of the board; and (3) one member must be a member of the Parks and Wildlife Commission [(b)(2): [(1) one member must represent a river authority or municipal water supply agency or authority; [(2) one member must represent an entity that is distinguished by its efforts in resource protection; and [(3) three members must be members of the senate]. (e) Each [appointed] member of the flows [study] commission serves at the will of the person who appointed the member. (f) The appointed senator with the most seniority and the appointed house member with the most seniority serve together as co-presiding officers of the flows [study] commission. (g) A member of the flows [study] commission is not entitled to receive compensation for service on the flows [study] commission but is entitled to reimbursement of the travel expenses incurred by the member while conducting the business of the flows [study] commission, as provided by the General Appropriations Act. (h) The flows [study] commission may accept gifts and grants from any source to be used to carry out a function of the flows [study] commission. (i) The commission shall provide staff support for the flows [study] commission. (j) The flows [study] commission shall conduct public hearings and study public policy implications for balancing the demands on the water resources of the state resulting from a growing population with the requirements of the riverine, bay, and estuary systems including granting permits for instream flows dedicated to environmental needs or bay and estuary inflows, use of the Texas Water Trust, and any other issues that the flows [study] commission determines have importance and relevance to the protection of environmental flows. In evaluating the options for providing adequate environmental flows, the flows [study] commission shall take notice of the strong public policy imperative that exists in this state recognizing that environmental flows are important to the biological health of our public and private lands, streams and rivers [parks, game preserves], and bay and estuary systems and are high priorities in the water management [permitting] process. The flows [study] commission shall specifically address: (1) ways that the ecological soundness of those [these] systems will be ensured in the water rights administration and enforcement and water allocation processes; and (2) appropriate methods to encourage persons voluntarily to convert reasonable amounts of existing water rights to use for environmental flow protection temporarily or permanently [process]. (n) The flows [study] commission may [shall] adopt rules, procedures, and policies as needed to administer this section, to implement its responsibilities, and to exercise its authority under Sections 11.02361 and 11.02362. (o) Chapter 2110, Government Code, does not apply to the size, composition, or duration of the flows commission. (p) Not later than December 1, 2006, and every two years thereafter, the flows commission shall issue and promptly deliver to the governor, lieutenant governor, and speaker of the house of representatives copies of a report summarizing: (1) any hearings conducted by the flows commission; (2) any studies conducted by the flows commission; (3) any legislation proposed by the flows commission; (4) progress made in implementing Sections 11.02361 and 11.02362; and (5) any other findings and recommendations of the flows commission [The study commission is abolished and this section expires September 1, 2005]. SECTION 1.09. Subchapter B, Chapter 11, Water Code, is amended by adding Sections 11.02361 and 11.02362 to read as follows: Sec. 11.02361. TEXAS ENVIRONMENTAL FLOWS SCIENCE ADVISORY COMMITTEE. (a) The Texas Environmental Flows Science Advisory Committee consists of at least five but not more than nine members appointed by the flows commission. (b) The flows commission shall appoint to the science advisory committee persons who will provide an objective perspective and diverse technical expertise, including expertise in hydrology, hydraulics, water resources, aquatic and terrestrial biology, geomorphology, geology, water quality, computer modeling, and other technical areas pertinent to the evaluation of environmental flows. (c) Members of the science advisory committee serve five-year terms expiring March 1. A vacancy on the science advisory committee is filled by appointment by the co-presiding officers of the flows commission for the unexpired term. (d) Chapter 2110, Government Code, does not apply to the size, composition, or duration of the science advisory committee. (e) The science advisory committee shall: (1) serve as an objective scientific body to advise and make recommendations to the flows commission on issues relating to the science of environmental flow protection; and (2) develop recommendations to help provide overall direction, coordination, and consistency relating to: (A) environmental flow methodologies for bay and estuary studies and instream flow studies; (B) environmental flow programs at the commission, the Parks and Wildlife Department, and the board; and (C) the work of the basin and bay expert science teams described in Section 11.02362. (f) To assist the flows commission to assess the extent to which the recommendations of the science advisory committee are considered and implemented, the commission, the Parks and Wildlife Department, and the board shall provide written reports to the flows commission, at intervals determined by the flows commission, that describe: (1) the actions taken by each agency in response to each recommendation; and (2) for each recommendation not implemented, the reason it was not implemented. Sec. 11.02362. DEVELOPMENT OF ENVIRONMENTAL FLOW REGIME RECOMMENDATIONS. (a) For the purposes of this section, the flows commission, not later than November 1, 2005, shall define the geographical extent of each river basin and bay system in this state for the sole purpose of developing environmental flow regime recommendations under this section and adoption of environmental flow standards under Section 11.1471. (b) The flows commission shall give priority in descending order to the following river basin and bay systems of the state for the purpose of developing environmental flow regime recommendations and adopting environmental flow standards: (1) the river basin and bay system consisting of the Trinity and San Jacinto Rivers and Galveston Bay and the river basin and bay system consisting of the Sabine and Neches Rivers and Sabine Lake Bay; (2) the river basin and bay system consisting of the Colorado and Lavaca Rivers and Matagorda and Lavaca Bays and the river basin and bay system consisting of the Guadalupe, San Antonio, and Aransas Rivers and Copano, Aransas, and San Antonio Bays; and (3) the river basin and bay system consisting of the Nueces River and Corpus Christi and Baffin Bays, the river basin and bay system consisting of the Rio Grande, the Rio Grande estuary, and the Lower Laguna Madre, and the Brazos River and its associated bay and estuary system. (c) For the river basin and bay systems listed in Subsection (b)(1): (1) the flows commission shall appoint the basin and bay area stakeholders committee not later than November 1, 2005; (2) the basin and bay area stakeholders committee shall establish a basin and bay expert science team not later than March 1, 2006; (3) the basin and bay expert science team shall finalize environmental flow regime recommendations and submit them to the basin and bay area stakeholders committee, the flows commission, and the commission not later than March 1, 2007; (4) the basin and bay area stakeholders committee shall submit to the commission its comments on and recommendations regarding the basin and bay expert science team's recommended environmental flow regime not later than September 1, 2007; and (5) the commission shall adopt the environmental flow standards as provided by Section 11.1471 not later than September 1, 2008. (d) The flows commission shall appoint the basin and bay area stakeholders committees for the river basin and bay systems listed in Subsection (b)(2) not later than September 1, 2006, and shall appoint the basin and bay area stakeholders committees for the river basin and bay systems listed in Subsection (b)(3) not later than September 1, 2007. The flows commission shall establish a schedule for the performance of the tasks listed in Subsections (c)(2)-(5) with regard to the river basin and bay systems listed in Subsections (b)(2) and (3) that will result in the adoption of environmental flow standards for that river basin and bay system by the commission as soon as is reasonably possible. Each basin and bay area stakeholders committee and basin and bay expert science team for a river basin and bay system listed in Subsection (b)(2) or (3) shall make recommendations to the flows commission with regard to the schedule applicable to that river basin and bay system. The flows commission shall consider the recommendations of the basin and bay area stakeholders committee and basin and bay expert science team as well as coordinate with, and give appropriate consideration to the recommendations of, the commission, the Parks and Wildlife Department, and the board in establishing the schedule. (e) For a river basin and bay system or a river basin that does not have an associated bay system in this state not listed in Subsection (b), the flows commission shall establish a schedule for the development of environmental flow regime recommendations and the adoption of environmental flow standards. The flows commission shall develop the schedule in consultation with the commission, the Parks and Wildlife Department, the board, and the pertinent basin and bay area stakeholders committee and basin and bay expert science team. The flows commission may, on its own initiative or on request, modify a schedule established under this subsection to be more responsive to particular circumstances, local desires, changing conditions, or time-sensitive conflicts. This subsection does not prohibit, in a river basin and bay system for which the flows commission has not yet established a schedule for the development of environmental flow regime recommendations and the adoption of environmental flow standards, an effort to develop information on environmental flow needs and ways in which those needs can be met by a voluntary consensus-building process. (f) The flows commission shall appoint a basin and bay area stakeholders committee for each river basin and bay system in this state for which a schedule for the development of environmental flow regime recommendations and the adoption of environmental flow standards is specified by or established under Subsection (c), (d), or (e). Chapter 2110, Government Code, does not apply to the size, composition, or duration of a basin and bay area stakeholders committee. Each committee must consist of at least 17 members. The members must represent appropriate stakeholders, including representatives of: (1) agricultural water users; (2) recreational water users, including coastal recreational anglers and businesses supporting water recreation; (3) municipalities; (4) soil and water conservation districts; (5) industrial water users; (6) commercial fishermen; (7) public interest groups; (8) regional water planning groups; (9) groundwater conservation districts; (10) river authorities and other conservation and reclamation districts with jurisdiction over surface water; and (11) environmental interests. (g) Members of a basin and bay area stakeholders committee serve five-year terms expiring March 1. If a vacancy occurs on a committee, the remaining members of the committee by majority vote shall appoint a member to serve the remainder of the unexpired term. (h) Meetings of a basin and bay area stakeholders committee must be open to the public. (i) Each basin and bay area stakeholders committee shall establish a basin and bay expert science team for the river basin and bay system for which the committee is established. The basin and bay expert science team must be established not later than six months after the date the basin and bay area stakeholders committee is established. Chapter 2110, Government Code, does not apply to the size, composition, or duration of a basin and bay expert science team. Each basin and bay expert science team must be composed of technical experts with special expertise regarding the river basin and bay system or regarding the development of environmental flow regimes. A person may serve as a member of more than one basin and bay expert science team at the same time. (j) The members of a basin and bay expert science team serve five-year terms expiring April 1. A vacancy on a basin and bay expert science team is filled by appointment by the pertinent basin and bay area stakeholders committee to serve the remainder of the unexpired term. (k) The science advisory committee shall appoint one of its members to serve as a liaison to each basin and bay expert science team to facilitate coordination and consistency in environmental flow activities throughout the state. The commission, the Parks and Wildlife Department, and the board shall provide technical assistance to each basin and bay expert science team, including information about the studies conducted under Sections 16.058 and 16.059, and may serve as nonvoting members of the basin and bay expert science team to facilitate the development of environmental flow regime recommendations. (l) Where reasonably practicable, meetings of a basin and bay expert science team must be open to the public. (m) Each basin and bay expert science team shall develop environmental flow analyses and a recommended environmental flow regime for the river basin and bay system for which the team is established through a collaborative process designed to achieve a consensus. In developing the analyses and recommendations, the science team must consider all reasonably available science, without regard to the need for the water for other uses, and the science team's recommendations must be based solely on the best science available. (n) Each basin and bay expert science team shall submit its environmental flow analyses and environmental flow regime recommendations to the pertinent basin and bay area stakeholders committee, the flows commission, and the commission in accordance with the applicable schedule specified by or established under Subsection (c), (d), or (e). The basin and bay area stakeholders committee and the flows commission may not change the environmental flow analyses or environmental flow regime recommendations of the basin and bay expert science team. (o) Each basin and bay area stakeholders committee shall review the environmental flow analyses and environmental flow regime recommendations submitted by the committee's basin and bay expert science team and shall consider them in conjunction with other factors, including the present and future needs for water for other uses related to water supply planning in the pertinent river basin and bay system. The basin and bay area stakeholders committee shall develop recommendations regarding environmental flow standards and strategies to meet the environmental flow standards and submit those recommendations to the commission and to the flows commission in accordance with the applicable schedule specified by or established under Subsection (c), (d), or (e). In developing its recommendations, the basin and bay area stakeholders committee shall operate on a consensus basis to the maximum extent possible. (p) In recognition of the importance of adaptive management, after submitting its recommendations regarding environmental flow standards and strategies to meet the environmental flow standards to the commission, each basin and bay area stakeholders committee, with the assistance of the pertinent basin and bay expert science team, shall prepare and submit for approval by the flows commission a work plan. The work plan must: (1) establish a periodic review of the basin and bay environmental flow analyses and environmental flow regime recommendations, environmental flow standards, and strategies, to occur at least once every 10 years; (2) prescribe specific monitoring, studies, and activities; and (3) establish a schedule for continuing the validation or refinement of the basin and bay environmental flow analyses and environmental flow regime recommendations, the environmental flow standards adopted by the commission, and the strategies to achieve those standards. (q) In accordance with the applicable schedule specified by or established under Subsection (c), (d), or (e), the flows commission, with input from the science advisory committee, shall review the environmental flow analyses and environmental flow regime recommendations submitted by each basin and bay expert science team. If appropriate, the flows commission shall submit comments on the analyses and recommendations to the commission for use by the commission in adopting rules under Section 11.1471. Comments must be submitted not later than six months after the date of receipt of the analyses and recommendations. (r) In the event the commission, by permit or order, has established an estuary advisory council, that council may continue in full force and effect. SECTION 1.10. Subsections (a) and (b), Section 11.0237, Water Code, are amended to read as follows: (a) The commission may not issue a new permit for instream flows dedicated to environmental needs or bay and estuary inflows. The [This section does not prohibit the] commission may approve [from issuing] an application to amend [amendment to] an existing permit or certificate of adjudication to change the use to or add a use for instream flows dedicated to environmental needs or bay and estuary inflows. (b) This section does not alter the commission's obligations under Section 11.042(b), 11.042(c), 11.046(b), 11.085(k)(2)(F), 11.134(b)(3)(D), 11.147, 11.1471, 11.1491, 11.150, 11.152, 16.058, or 16.059. SECTION 1.11. Subsection (b), Section 11.082, Water Code, is amended to read as follows: (b) The state may recover the penalties prescribed in Subsection (a) [of this section] by suit brought for that purpose in a court of competent jurisdiction. The state may seek those penalties regardless of whether a watermaster has been appointed for the water division, river basin, or segment of a river basin where the unlawful use is alleged to have occurred. SECTION 1.12. Section 11.0841, Water Code, is amended by adding Subsection (c) to read as follows: (c) For purposes of this section, the Parks and Wildlife Department has: (1) the rights of a holder of a water right that is held in the Texas Water Trust, including the right to file suit in a civil court to prevent the unlawful use of such a right; (2) the right to act in the same manner that a holder of a water right may act to protect the holder's rights in seeking to prevent any person from appropriating water in violation of a set-aside established by the commission under Section 11.1471 to meet instream flow needs or freshwater inflow needs; and (3) the right to file suit in a civil court to prevent the unlawful use of a set-aside established under Section 11.1471. SECTION 1.13. Subsection (a), Section 11.0842, Water Code, is amended to read as follows: (a) If a person violates this chapter, a rule or order adopted under this chapter or Section 16.236 [of this code], or a permit, certified filing, or certificate of adjudication issued under this chapter, the commission may assess an administrative penalty against that person as provided by this section. The commission may assess an administrative penalty for a violation relating to a water division or a river basin or segment of a river basin regardless of whether a watermaster has been appointed for the water division or river basin or segment of the river basin. SECTION 1.14. Subsection (a), Section 11.0843, Water Code, is amended to read as follows: (a) Upon witnessing a violation of this chapter or a rule or order or a water right issued under this chapter, the executive director or a person designated by the executive director, including a watermaster or the watermaster's deputy, [as defined by commission rule,] may issue the alleged violator a field citation alleging that a violation has occurred and providing the alleged violator the option of either: (1) without admitting to or denying the alleged violation, paying an administrative penalty in accordance with the predetermined penalty amount established under Subsection (b) [of this section] and taking remedial action as provided in the citation; or (2) requesting a hearing on the alleged violation in accordance with Section 11.0842 [of this code]. SECTION 1.15. Subsection (b), Section 11.134, Water Code, is amended to read as follows: (b) The commission shall grant the application only if: (1) the application conforms to the requirements prescribed by this chapter and is accompanied by the prescribed fee; (2) unappropriated water is available in the source of supply; (3) the proposed appropriation: (A) is intended for a beneficial use; (B) does not impair existing water rights or vested riparian rights; (C) is not detrimental to the public welfare; (D) considers any applicable environmental flow standards established under Section 11.1471 and, if applicable, the assessments performed under Sections 11.147(d) and (e) and Sections 11.150, 11.151, and 11.152; and (E) addresses a water supply need in a manner that is consistent with the state water plan and the relevant approved regional water plan for any area in which the proposed appropriation is located, unless the commission determines that conditions warrant waiver of this requirement; and (4) the applicant has provided evidence that reasonable diligence will be used to avoid waste and achieve water conservation as defined by [Subdivision (8)(B),] Section 11.002(8)(B) [11.002]. SECTION 1.16. Section 11.147, Water Code, is amended by amending Subsections (b), (d), and (e) and adding Subsections (e-1) and (e-2) to read as follows: (b) In its consideration of an application for a permit to store, take, or divert water, the commission shall assess the effects, if any, of the issuance of the permit on the bays and estuaries of Texas. For permits issued within an area that is 200 river miles of the coast, to commence from the mouth of the river thence inland, the commission shall include in the permit any conditions considered necessary to maintain freshwater inflows to any affected bay and estuary system, to the extent practicable when considering all public interests and the studies mandated by Section 16.058 as evaluated under Section 11.1491[, those conditions considered necessary to maintain beneficial inflows to any affected bay and estuary system]. (d) In its consideration of an application to store, take, or divert water, the commission shall include in the permit, to the extent practicable when considering all public interests, those conditions considered by the commission necessary to maintain existing instream uses and water quality of the stream or river to which the application applies. In determining what conditions to include in the permit under this subsection, the commission shall consider among other factors: (1) the studies mandated by Section 16.059; and (2) any water quality assessment performed under Section 11.150. (e) The commission shall include in the permit, to the extent practicable when considering all public interests, those conditions considered by the commission necessary to maintain fish and wildlife habitats. In determining what conditions to include in the permit under this subsection, the commission shall consider any assessment performed under Section 11.152. (e-1) Any permit for a new appropriation of water or an amendment to an existing water right that increases the amount of water authorized to be stored, taken, or diverted must include a provision allowing the commission to adjust the conditions included in the permit or amended water right to provide for protection of instream flows or freshwater inflows. With respect to an amended water right, the provision may not allow the commission to adjust a condition of the amendment other than a condition that applies only to the increase in the amount of water to be stored, taken, or diverted authorized by the amendment. This subsection does not affect an appropriation of or an authorization to store, take, or divert water under a permit or amendment to a water right issued before September 1, 2005. The commission shall adjust the conditions if the commission determines, through an expedited public comment process, that such an adjustment is appropriate to achieve compliance with applicable environmental flow standards adopted under Section 11.1471. The adjustment: (1) in combination with any previous adjustments made under this subsection may not increase the amount of the pass-through or release requirement for the protection of instream flows or freshwater inflows by more than 12.5 percent of the annualized total of that requirement contained in the permit as issued or of that requirement contained in the amended water right and applicable only to the increase in the amount of water authorized to be stored, taken, or diverted under the amended water right; (2) must be based on appropriate consideration of the priority dates and diversion locations of any other water rights granted in the same river basin that are subject to adjustment under this subsection; and (3) must be based on appropriate consideration of any voluntary contributions to the Texas Water Trust that contribute toward meeting the environmental flow standards. Any water right holder making such donation shall be entitled to appropriate credit of such benefits against adjustments of his water right pursuant to Subdivision (1). (e-2) Notwithstanding Subsections (b)-(e), for the purpose of determining the environmental flow conditions necessary to maintain freshwater inflows to an affected bay and estuary system, existing instream uses and water quality of a stream or river, or fish and aquatic wildlife habitats, the commission shall apply any applicable environmental flow standard, including any environmental flow set-aside, adopted under Section 11.1471 instead of considering the factors specified by those subsections. SECTION 1.17. Subchapter D, Chapter 11, Water Code, is amended by adding Section 11.1471 to read as follows: Sec. 11.1471. ENVIRONMENTAL FLOW STANDARDS AND SET-ASIDES. (a) The commission by rule shall: (1) adopt appropriate environmental flow standards for each river basin and bay system in this state that are adequate to support a sound ecological environment, to the maximum extent reasonable considering other public interests and other relevant factors; (2) establish an amount of unappropriated water, if available, to be set aside to satisfy the environmental flow standards to the maximum extent reasonable when considering human water needs; and (3) establish procedures for implementing an adjustment of the conditions included in a permit or an amended water right as provided by Section 11.147(e-1). (b) In adopting environmental flow standards for a river basin and bay system under Subsection (a)(1), the commission shall consider: (1) the definition of the geographical extent of the river basin and bay system adopted by the flows commission under Section 11.02362(a); (2) the schedule for the adoption of environmental flow standards for the river basin and bay system established by the flows commission under Section 11.02362(d) or (e), if applicable; (3) the environmental flow analyses and the recommended environmental flow regime developed by the applicable basin and bay expert science team under Section 11.02362(m); (4) the recommendations regarding environmental flow standards and strategies to meet the flow standards developed by the applicable basin and bay area stakeholders committee under Section 11.02362(o); (5) the specific characteristics of the river basin and bay system; (6) economic factors; (7) the human and other competing water needs in the river basin and bay system; (8) all reasonably available scientific information, including any scientific information provided by the science advisory committee; and (9) any other appropriate information. (c) Environmental flow standards adopted under Subsection (a)(1) must consist of a schedule of flow quantities, reflecting seasonal and yearly fluctuations that may vary geographically by specific location in a river basin and bay system. (d) As provided by Section 11.023, the commission may not issue a permit for a new appropriation or an amendment to an existing water right that increases the amount of water authorized to be stored, taken, or diverted if the issuance of the permit or amendment would impair an environmental flow set-aside established under Subsection (a)(2). A permit for a new appropriation or an amendment to an existing water right that increases the amount of water authorized to be stored, taken, or diverted that is issued after the adoption of an applicable environmental flow set-aside must contain appropriate conditions to ensure protection of the environmental flow set-aside. (e) An environmental flow set-aside established under Subsection (a)(2) must be assigned a priority date corresponding to the date the commission receives environmental flow regime recommendations from the applicable basin and bay expert science team and be included in the appropriate water availability models in connection with an application for a permit for a new appropriation or for an amendment to an existing water right that increases the amount of water authorized to be stored, taken, or diverted. (f) An environmental flow standard or environmental flow set-aside adopted under Subsection (a) may be altered by the commission in a rulemaking process undertaken in accordance with a schedule established by the commission. The commission's schedule may not provide for the rulemaking process to occur more frequently than once every 10 years unless the applicable work plan approved by the flows commission under Section 11.02362(p) provides for a periodic review under that section to occur more frequently than once every 10 years. In that event, the commission may provide for the rulemaking process to be undertaken in conjunction with the periodic review if the commission determines that schedule to be appropriate. SECTION 1.18. The heading to Section 11.148, Water Code, is amended to read as follows: Sec. 11.148. EMERGENCY SUSPENSION OF PERMIT CONDITIONS AND EMERGENCY AUTHORITY TO MAKE AVAILABLE WATER SET ASIDE FOR ENVIRONMENTAL FLOWS. SECTION 1.19. Section 11.148, Water Code, is amended by adding Subsection (a-1) and amending Subsections (b) and (c) to read as follows: (a-1) State water that is set aside by the commission to meet the needs for freshwater inflows to affected bays and estuaries and instream uses under Section 11.1471(a)(2) may be made available temporarily for other essential beneficial uses if the commission finds that an emergency exists that cannot practically be resolved in another way. (b) Before the commission suspends a permit condition under Subsection (a) or makes water available temporarily under Subsection (a-1) [of this section], it must give written notice to the Parks and Wildlife Department of the proposed action [suspension]. The commission shall give the Parks and Wildlife Department an opportunity to submit comments on the proposed action [suspension] within 72 hours from such time and the commission shall consider those comments before issuing its order implementing the proposed action [imposing the suspension]. (c) The commission may suspend the permit condition under Subsection (a) or make water available temporarily under Subsection (a-1) without notice to any other interested party other than the Parks and Wildlife Department as provided by Subsection (b) [of this section]. However, all affected persons shall be notified immediately by publication, and a hearing to determine whether the suspension should be continued shall be held within 15 days of the date on which the order to suspend is issued. SECTION 1.20. Subsection (a), Section 11.1491, Water Code, is amended to read as follows: (a) The Parks and Wildlife Department and the commission shall have joint responsibility to review the studies prepared under Section 16.058 [of this code], to determine inflow conditions necessary for the bays and estuaries, and to provide information necessary for water resources management. Each agency shall designate an employee to share equally in the oversight of the program. Other responsibilities shall be divided between the Parks and Wildlife Department and the commission to maximize present in-house capabilities of personnel and to minimize costs to the state. Each agency shall have reasonable access to all information produced by the other agency. Publication of reports completed under this section shall be submitted for comment to [both] the commission, [and] the Parks and Wildlife Department, the flows commission, the science advisory committee, and any applicable basin and bay area stakeholders committee and basin and bay expert science team. SECTION 1.21. Subsection (g), Section 11.329, Water Code, is amended to read as follows: (g) The commission may not assess costs under this section against a holder of a non-priority hydroelectric right that owns or operates privately owned facilities that collectively have a capacity of less than two megawatts or against a holder of a water right placed in the Texas Water Trust for a term of at least 20 years. [This subsection is not intended to affect in any way the fees assessed on a water right holder by the commission under Section 1.29(d), Chapter 626, Acts of the 73rd Legislature, Regular Session, 1993. For purposes of Section 1.29(d), Chapter 626, Acts of the 73rd Legislature, Regular Session, 1993, a holder of a non-priority hydroelectric right that owns or operates privately owned facilities that collectively have a capacity of less than two megawatts shall be assessed fees at the same rate per acre-foot charged to a holder of a non-priority hydroelectric right that owns or operates privately owned facilities that collectively have a capacity of more than two megawatts.] SECTION 1.22. Subsection (e), Section 11.404, Water Code, is amended to read as follows: (e) The court may not assess costs and expenses under this section against: (1) a holder of a non-priority hydroelectric right that owns or operates privately owned facilities that collectively have a capacity of less than two megawatts; or (2) a holder of a water right placed in the Texas Water Trust for a term of at least 20 years. SECTION 1.23. Subchapter I, Chapter 11, Water Code, is amended by adding Section 11.4531 to read as follows: Sec. 11.4531. WATERMASTER ADVISORY COMMITTEE. (a) For each river basin or segment of a river basin for which the executive director appoints a watermaster under this subchapter, the executive director shall appoint a watermaster advisory committee consisting of at least nine but not more than 15 members. A member of the advisory committee must be a holder of a water right or a representative of a holder of a water right in the river basin or segment of the river basin for which the watermaster is appointed. In appointing members to the advisory committee, the executive director shall consider: (1) geographic representation; (2) amount of water rights held; (3) different types of holders of water rights and users, including water districts, municipal suppliers, irrigators, and industrial users; and (4) experience and knowledge of water management practices. (b) An advisory committee member is not entitled to reimbursement of expenses or to compensation. (c) An advisory committee member serves a two-year term expiring August 31 of each odd-numbered year and holds office until a successor is appointed. (d) The advisory committee shall meet within 30 days after the date the initial appointments have been made and shall select a presiding officer to serve a one-year term. The committee shall meet regularly as necessary. (e) The advisory committee shall: (1) make recommendations to the executive director regarding activities of benefit to the holders of water rights in the administration and distribution of water to holders of water rights in the river basin or segment of the river basin for which the watermaster is appointed; (2) review and comment to the executive director on the annual budget of the watermaster operation; and (3) perform other advisory duties as requested by the executive director regarding the watermaster operation or as requested by holders of water rights and considered by the committee to benefit the administration of water rights in the river basin or segment of the river basin for which the watermaster is appointed. SECTION 1.24. Section 11.454, Water Code, is amended to read as follows: Sec. 11.454. DUTIES AND AUTHORITY OF THE WATERMASTER. Section 11.327 applies to the duties and authority of a watermaster appointed for a river basin or segment of a river basin under this subchapter in the same manner as that section applies to the duties and authority of a watermaster appointed for a water division under Subchapter G [A watermaster as the agent of the commission and under the executive director's supervision shall: [(1) divide the water of the streams or other sources of supply of his segment or basin in accordance with the authorized water rights; [(2) regulate or cause to be regulated the controlling works of reservoirs and diversion works in time of water shortage, as is necessary because of the rights existing in the streams of his segment or basin, or as is necessary 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 [(3) perform any other duties and exercise any authority directed by the commission]. SECTION 1.25. Section 11.455, Water Code, is amended to read as follows: Sec. 11.455. COMPENSATION AND EXPENSES OF WATERMASTER [ASSESSMENTS]. (a) Section 11.329 applies to the payment of the compensation and expenses of a watermaster appointed for a river basin or segment of a river basin under this subchapter in the same manner as that section applies to the payment of the compensation and expenses of a watermaster appointed for a water division under Subchapter G. (b) The executive director shall deposit the assessments collected under this section to the credit of the watermaster fund. (c) Money deposited under this section to the credit of the watermaster fund may be used only for the purposes specified by Section 11.3291 with regard to the watermaster operation under this subchapter with regard to which the assessments were collected [The commission may assess the costs of the watermaster against all persons who hold water rights in the river basin or segment of the river basin under the watermaster's jurisdiction in accordance with Section 11.329 of this code]. SECTION 1.26. Subchapter F, Chapter 15, Water Code, is amended by adding Section 15.4063 to read as follows: Sec. 15.4063. ENVIRONMENTAL FLOWS FUNDING. The board may authorize the use of money in the research and planning fund: (1) to compensate the members of the Texas Environmental Flows Science Advisory Committee established under Section 11.02361 for attendance and participation at meetings of the committee and for transportation, meals, lodging, or other travel expenses associated with attendance at those meetings as provided by the General Appropriations Act; (2) for contracts with cooperating state and federal agencies and universities and with private entities as necessary to provide technical assistance to enable the Texas Environmental Flows Science Advisory Committee and the basin and bay expert science teams established under Section 11.02362 to perform their statutory duties; (3) to compensate the members of the expert science teams created pursuant to Section 11.02362(i) for attendance and participation at meetings of the teams and for transportation, meals, lodging, or other travel expenses associated with attendance at those meetings as provided by the General Appropriations Act; and (4) for contracts with political subdivisions designated as representatives of stakeholder committees established pursuant to Section 11.02362 to fund all or part of the administrative expenses for conducting meetings of the stakeholder committee or the associated expert science team. SECTION 1.27. Section 15.7031, Water Code, is amended by amending Subsection (c) and adding Subsection (e) to read as follows: (c) The dedication of any water rights placed in trust must be reviewed and approved by the commission, in consultation with the board, [and] the Parks and Wildlife Department, and the Environmental Flows Commission. In addition, the Department of Agriculture and the basin and bay area stakeholders committee and basin and bay expert science team established under Section 11.02362 for the river basin and bay system to which the water right pertains may provide input to the commission, as appropriate, during the review and approval process for dedication of water rights. (e) While a water right is held in the trust, the water authorized for beneficial use under the terms of the water right is considered to be held for instream flows, water quality, fish and wildlife habitat, bay and estuary inflows, or other environmental uses without the need for a permit amendment. After the water right is withdrawn in whole or in part from the trust, the use of the water right or portion of the water right withdrawn must be in accordance with the terms of the water right. SECTION 1.28. Subsection (d), Section 16.059, Water Code, is amended to read as follows: (d) The priority studies shall be completed not later than December 31, 2014 [2010]. The Parks and Wildlife Department, the commission, and the board shall establish a work plan that prioritizes the studies and that sets interim deadlines providing for publication of flow determinations for individual rivers and streams on a reasonably consistent basis throughout the prescribed study period. Before publication, completed studies shall be submitted for comment to the commission, the board, and the Parks and Wildlife Department. SECTION 1.29. Subsection (h), Section 26.0135, Water Code, as amended by Chapters 234 and 965, Acts of the 77th Legislature, Regular Session, 2001, is reenacted and amended to read as follows: (h) The commission shall apportion, assess, and recover the reasonable costs of administering the water quality management programs under this section from users of water and wastewater permit holders in the watershed according to the records of the commission generally in proportion to their right, through permit or contract, to use water from and discharge wastewater in the watershed. Irrigation water rights, [and] non-priority hydroelectric rights of a water right holder that owns or operates privately owned facilities that collectively have a capacity of less than two megawatts, and water rights held in the Texas Water Trust for terms of at least 20 years will not be subject to this assessment. The cost to river authorities and others to conduct water quality monitoring and assessment shall be subject to prior review and approval by the commission as to methods of allocation and total amount to be recovered. The commission shall adopt rules to supervise and implement the water quality monitoring, assessment, and associated costs. The rules shall ensure that water users and wastewater dischargers do not pay excessive amounts, that program funds are equitably apportioned among basins, that a river authority may recover no more than the actual costs of administering the water quality management programs called for in this section, and that no municipality shall be assessed cost for any efforts that duplicate water quality management activities described in Section 26.177 [of this chapter]. The rules concerning the apportionment and assessment of reasonable costs shall provide for a recovery of not more than $5,000,000 annually. Costs recovered by the commission are to be deposited to the credit of the water resource management account and may be used only to accomplish the purposes of this section. The commission may apply not more than 10 percent of the costs recovered annually toward the commission's overhead costs for the administration of this section and the implementation of regional water quality assessments. The commission, with the assistance and input of each river authority, shall file a written report accounting for the costs recovered under this section with the governor, the lieutenant governor, and the speaker of the house of representatives on or before December 1 of each even-numbered year. SECTION 1.30. Subsections (d), (k), (l), and (m), Section 11.0236, Subsection (c), Section 11.0237, and Subsection (b), Section 11.1491, Water Code, are repealed. SECTION 1.31. The Study Commission on Water for Environmental Flows is abolished on the effective date of this Act. SECTION 1.32. (a) The governor, lieutenant governor, and speaker of the house of representatives shall appoint the initial members of the Environmental Flows Commission as provided by Section 11.0236, Water Code, as amended by this article, as soon as practicable on or after the effective date of this Act. (b) As soon as practicable after taking office, the initial members of the Environmental Flows Commission shall appoint the initial members of the Texas Environmental Flows Science Advisory Committee as provided by Section 11.02361, Water Code, as added by this article. The terms of the initial members of the committee expire March 1, 2010. (c) The Environmental Flows Commission shall appoint the members of each basin and bay area stakeholders committee as provided by Section 11.02362, Water Code, as added by this article. The terms of the initial members of each committee expire March 1 of the fifth year that begins after the year in which the initial appointments are made. (d) Each basin and bay area stakeholders committee shall appoint the members of the basin and bay expert science team for the river basin and bay system for which the committee is established as provided by Section 11.02362, Water Code, as added by this article. The terms of the initial members of each team expire April 1 of the fifth year that begins after the year in which the initial appointments are made. (e) The executive director of the Texas Commission on Environmental Quality shall appoint the members of the watermaster advisory committee under Section 11.4531, Water Code, as added by this article, for each river basin or segment of a river basin for which the executive director appoints a watermaster under Subchapter I, Chapter 11, Water Code. The terms of the initial members of each committee expire August 31 of the first odd-numbered year that begins after the year in which the initial appointments are made. SECTION 1.33. The changes in law made by this article relating to a permit for a new appropriation of water or to an amendment to an existing water right that increases the amount of water authorized to be stored, taken, or diverted apply only to: (1) water appropriated under a permit for a new appropriation of water the application for which is pending with the Texas Commission on Environmental Quality on the effective date of this article or is filed with the commission on or after that date; or (2) the increase in the amount of water authorized to be stored, taken, or diverted under an amendment to an existing water right that increases the amount of water authorized to be stored, taken, or diverted and the application for which is pending with the Texas Commission on Environmental Quality on the effective date of this article or is filed with the commission on or after that date.
ARTICLE 2. CONJUNCTIVE MANAGEMENT WATER POLICY
SECTION 2.01. Section 1.003, Water Code, is amended to read as follows: Sec. 1.003. PUBLIC POLICY. It is the public policy of the state to provide for the conservation and development of the state's natural resources, including: (1) the control, storage, preservation, and distribution of the state's storm and floodwaters and the waters of its rivers and streams for irrigation, power, and other useful purposes; (2) the reclamation and irrigation of the state's arid, semiarid, and other land needing irrigation; (3) the reclamation and drainage of the state's overflowed land and other land needing drainage; (4) the conservation and development of its forest, water, and hydroelectric power; (5) the navigation of the state's inland and coastal waters; [and] (6) the maintenance of a proper ecological environment of the bays and estuaries of Texas and the health of related living marine resources; and (7) the stewardship of public and private lands to benefit waters of the state. SECTION 2.02. Subchapter A, Chapter 1, Water Code, is amended by adding Section 1.004 to read as follows: Sec. 1.004. FINDINGS AND POLICY REGARDING LAND STEWARDSHIP. (a) The legislature finds that responsible land stewardship enhances the efficiency and effectiveness of this state's watersheds by helping to increase surface water and groundwater supplies, resulting in a benefit to the natural resources of this state and to the general public. It is therefore the policy of this state to encourage responsible land stewardship as a significant water management tool. (b) "Land stewardship," as used in this code, is the practice of managing land to conserve or enhance suitable landscapes and the ecosystem values of the land. Land stewardship includes land and habitat management, wildlife conservation, and watershed protection. Land stewardship practices include runoff reduction, prescribed burning, managed grazing, brush management, erosion management, reseeding with native plant species, riparian management and restoration, and spring and creek-bank protection, all of which benefit the water resources of this state. SECTION 2.03. Section 11.002, Water Code, is amended by adding Subdivisions (19) and (20) to read as follows: (19) "Best management practices" means those voluntary efficiency measures that save a quantifiable amount of water, either directly or indirectly, and that can be implemented within a specified time frame. (20) "Conjunctive use" means the use of different water resources in a combination that encourages the most efficient and effective uses of those resources and optimizes the beneficial characteristics of each resource. Water resources for conjunctive use include surface water, groundwater, desalinated surface water or groundwater, and water available for reuse. SECTION 2.04. Subsection (b), Section 11.0235, Water Code, is amended to read as follows: (b) Maintaining the biological soundness of the state's rivers, lakes, bays, and estuaries is of great importance to the public's economic health and general well-being. The legislature encourages responsible water and land stewardship to benefit waters of the state. SECTION 2.05. Section 11.024, Water Code, is amended to read as follows: Sec. 11.024. APPROPRIATION: PREFERENCES. (a) In order to conserve and properly utilize state water, the public welfare requires not only recognition of beneficial uses but also a constructive public policy regarding the preferences between these uses, and it is therefore declared to be the public policy of this state that in appropriating state water preference shall be given to the following uses in the order named: (1) domestic and municipal uses, including water for sustaining human life and the life of domestic animals, it being the public policy of the state and for the benefit of the greatest number of people that in the appropriation of water as herein defined, the appropriation of water for domestic and municipal uses shall be and remain superior to the rights of the state to appropriate the same for all other purposes; (2) agricultural uses and industrial uses, which means processes designed to convert materials of a lower order of value into forms having greater usability and commercial value, including the development of power by means other than hydroelectric; (3) mining and recovery of minerals; (4) hydroelectric power; (5) navigation; (6) recreation and pleasure; and (7) other beneficial uses. (b) In considering requests for appropriation of state water for the same beneficial use, the commission shall give preference to those projects that involve conjunctive use, if conjunctive use is available, reasonable, and cost-effective. SECTION 2.06. Section 11.046, Water Code, is amended by adding Subsection (e) to read as follows: (e) Water appropriated under a permit, certified filing, or certificate of adjudication that is treated under a permit issued under Chapter 26 and then injected into an aquifer for storage and subsequent recovery for beneficial use is not considered surplus for purposes of this chapter. SECTION 2.07. Subchapter D, Chapter 11, Water Code, is amended by adding Section 11.1502 to read as follows: Sec. 11.1502. CONSIDERATION OF CONJUNCTIVE USE. In considering an application for a permit to store, take, or divert surface water, the commission shall consider whether the applicant has made reasonable efforts to incorporate plans for conjunctive use, if conjunctive use is available, reasonable, and cost-effective. SECTION 2.08. Subsection (b), Section 11.173, Water Code, is amended to read as follows: (b) A permit, certified filing, or certificate of adjudication or a portion of a permit, certified filing, or certificate of adjudication is exempt from cancellation under Subsection (a): (1) to the extent of the owner's participation in the Conservation Reserve Program authorized by the Food Security Act, Pub. L. No. 99-198, Secs. 1231-1236, 99 Stat. 1354, 1509-1514 (1985) or a similar governmental program; (2) if a significant portion of the water authorized to be used pursuant to a permit, certified filing, or certificate of adjudication has been used in accordance with a specific recommendation for meeting a water need included in the regional water plan approved pursuant to Section 16.053; (3) if the permit, certified filing, or certificate of adjudication: (A) was obtained to meet demonstrated long-term public water supply or electric generation needs as evidenced by a water management plan developed by the holder; and (B) is consistent with projections of future water needs contained in the state water plan; [or] (4) if the permit, certified filing, or certificate of adjudication was obtained as the result of the construction of a reservoir funded, in whole or in part, by the holder of the permit, certified filing, or certificate of adjudication as part of the holder's long-term water planning; or (5) to the extent the nonuse resulted from the implementation of water conservation measures under a water conservation plan submitted by the holder of the permit, certified filing, or certificate of adjudication as evidenced by implementation reports submitted by the holder. SECTION 2.09. Chapter 11, Water Code, is amended by adding Subchapter K to read as follows:
SUBCHAPTER K. REMEDIES FOR INTERFERENCE WITH DOMESTIC OR AGRICULTURAL WATER WELL
Sec. 11.551. APPLICABILITY. This subchapter applies only to a high-capacity water well that is not owned by a municipality and that: (1) is used for a purpose other than domestic or agricultural use; and (2) is located outside a groundwater conservation district. Sec 11.552. PETITION FOR REVIEW. (a) An owner of a domestic or agricultural well may petition the applicable groundwater management area council for the groundwater management area in which the petitioner's well is located to review the operation of a high-capacity well subject to this subchapter and that may be interfering with the petitioner's well. (b) The petition must demonstrate how the operation of the high-capacity well is interfering with the operation or production rate of the petitioner's well. (c) Within 60 days of receipt of the petition, the groundwater management area council shall decide whether to accept the petition for review. If the council decides to accept the petition, it shall notify the petitioner and the owner of the high-capacity well of the date and time of a public hearing at which the council shall gather all relevant information to evaluate the petition and evaluate the need for modification of the operation of the high-capacity well. If the council decides not to accept the petition, it shall so inform the petitioner and shall provide an explanation of why it has decided not to accept the petition. The council may request technical assistance from the executive director in their review of a petition. (d) A hearing under this section is not subject to the provisions of Subchapter C, Chapter 2001, Government Code. (e) Based on the information in the petition and any relevant information gathered at a public hearing held under Subsection (c), the council shall, within 60 days of the public hearing, make findings and recommendations regarding: (1) the extent to which the operation of the high-capacity well is interfering with the operation of the petitioner's well; (2) the extent to which the operation of the high-capacity well is inconsistent with the desired future condition of the aquifer as adopted by the council; and (3) the modifications that are necessary in the operation of the high-capacity well to ensure that its operation does not interfere with the petitioner's well and that its operation is consistent with the desired future condition of the aquifer. (f) A finding by the council that the operation of the high-capacity well is not interfering with petitioner's well must be based on scientific information that clearly overcomes the information provided by the petitioner. (g) The council shall provide its findings and recommendations in writing and by certified mail to both the petitioner and the owner of the high-capacity well. If the owner of the high-capacity well declines to make the modifications recommended by the council, the petitioner may file a request for relief in the district court for the county in which the petitioner's well is located seeking an injunction that requires the owner of the high-capacity well to implement the council's recommendations. (h) The action for injunctive relief shall be a trial de novo, but the district court shall receive into evidence and consider the findings and recommendations of the council. (i) In an action for injunctive relief, the burden of proof to show why the council's recommendations should not be implemented shall be on the owner of the high-capacity well. SECTION 2.10. Subchapter E, Chapter 13, Water Code, is amended by adding Section 13.146 to read as follows: Sec. 13.146. WATER CONSERVATION PLAN. The commission shall require a retail public utility that provides potable water service to a population of 3,300 or more to submit to the executive administrator of the board a water conservation plan based on specific targets and goals for water savings developed by the retail public utility and using appropriate best management practices, as defined by Section 11.002, or other water conservation strategies as determined by the retail public utility. For purposes of this section, the population served by a retail public utility shall be determined on the basis of the population estimates contained in the most recent regional water plan adopted for the regional water planning area in which the retail public utility's service area is located. SECTION 2.11. Section 15.001, Water Code, is amended by adding Subdivision (14) to read as follows: (14) "Conjunctive use" has the meaning assigned by Section 11.002. SECTION 2.12. Subchapter A, Chapter 15, Water Code, is amended by adding Section 15.009 to read as follows: Sec. 15.009. PRIORITY FOR CONJUNCTIVE USE APPLICATIONS. In its funding programs under this chapter, the board shall give priority to applications for planning funds and water supply projects that promote conjunctive use, if conjunctive use is available, reasonable, and cost-effective. The board shall consider incentives for promoting conjunctive use, including low or zero interest rate loans. SECTION 2.13. Subsection (b), Section 15.102, Water Code, is amended to read as follows: (b) The loan fund may also be used by the board to provide: (1) grants or loans for projects that include supplying water and wastewater services in economically distressed areas or nonborder colonias as provided by legislative appropriations, this chapter, and board rules, including projects involving retail distribution of those services; and (2) grants for: (A) projects for which federal grant funds are placed in the loan fund; (B) projects, on specific legislative appropriation for those projects; or (C) water conservation, desalination, brush control, weather modification, regionalization, conjunctive use projects, and projects providing regional water quality enhancement services as defined by board rule, including regional conveyance systems. SECTION 2.14. Subchapter F, Chapter 15, Water Code, is amended by adding Section 15.4062 to read as follows: Sec. 15.4062. FUNDING FOR GROUNDWATER MANAGEMENT COORDINATION. (a) The board may enter into a contract with a political subdivision designated as a representative of a groundwater management area council established under Section 36.108 to pay from the research and planning fund all or part of the cost of performing the groundwater management area planning functions required of the groundwater management area council under Section 36.108. (b) A political subdivision may submit, either individually or jointly with other political subdivisions, a written application to the board to request assistance paying for the planning functions required under Section 36.108. (c) The application must be in the manner and form prescribed by board rules and include: (1) the name of each political subdivision participating in the application; (2) a citation to each law under which each political subdivision was created and is operating, including specific citation of any law providing authority to perform the functions under Section 36.108; (3) the amount of money being requested; and (4) any other relevant information required by board rules or specifically requested by the board. (d) After providing notice of and conducting a hearing on the application, the board may award the applicant the amount of money the board considers necessary to perform the functions under Section 36.108. (e) If the board grants an application under this section and awards money, the board shall enter into a contract with each participating political subdivision that includes: (1) a detailed statement of the purpose for which the money is to be used; (2) the total amount of the award to be paid by the board from the research and planning fund; and (3) any other terms and conditions required by board rules or agreed to by the contracting parties. (f) The board shall adopt rules establishing criteria for making grants of money under this section that include: (1) the relative need of the political subdivision for the money; (2) the legal authority of the political subdivision to perform the duties required under the contract; and (3) the degree to which groundwater management area planning by each political subdivision for the groundwater management area council will address the issues of groundwater management in the groundwater management area. (g) The board may not award money under this section if existing information or data is sufficient for the performance of functions under Section 36.108. (h) The board shall require that information developed or revised under a contract entered into under this section be made available to the commission, the Department of Agriculture, and the Parks and Wildlife Department. SECTION 2.15. Subsection (a), Section 15.974, Water Code, is amended to read as follows: (a) The board may use the fund: (1) to make loans to political subdivisions at or below market interest rates for projects; (2) to make grants, low-interest loans, or zero interest loans to political subdivisions for projects to serve areas outside metropolitan statistical areas in order to ensure that the projects are implemented, for conjunctive use projects, or for projects to serve economically distressed areas; (3) to make loans at or below market interest rates for planning and design costs, permitting costs, and other costs associated with state or federal regulatory activities with respect to a project; (4) as a source of revenue or security for the payment of principal and interest on bonds issued by the board if the proceeds of the sale of the bonds will be deposited in the fund; and (5) to pay the necessary and reasonable expenses of the board in administering the fund. SECTION 2.16. Section 16.001, Water Code, is amended by adding Subdivision (13) to read as follows: (13) "Conjunctive use" has the meaning assigned by Section 11.002. SECTION 2.17. Subchapter B, Chapter 16, Water Code, is amended by adding Section 16.0122 to read as follows: Sec. 16.0122. TECHNICAL ASSISTANCE FOR GROUNDWATER MANAGEMENT AREAS. For each groundwater management area established under Section 35.007, the executive administrator shall provide one or more employees of the board to assist the groundwater management area council and the districts in the council's groundwater management area. The employees shall provide assistance: (1) training district employees or the district board on basic data collection protocols; (2) collecting and interpreting data; (3) providing technical services or expertise; (4) conducting hydrogeologic investigations; (5) providing groundwater availability modeling; (6) developing a district's groundwater management plan; (7) preparing for or conducting a joint planning effort for districts in a groundwater management area or for a district and a regional water planning group established under Section 16.053, including assistance in avoiding and resolving conflicts; and (8) providing education. SECTION 2.18. Section 16.022, Water Code, is amended to read as follows: Sec. 16.022. WATER CONSERVATION MONITORING; REPORT [STUDY]. (a) The board [and the State Soil and Water Conservation Board] shall: (1) monitor trends in water conservation implementation; (2) monitor new technologies for possible inclusion by the board and commission in updating water conservation programs that suggest best management practices under Section 11.1271(e); (3) monitor the effectiveness of the statewide water conservation public awareness program developed under Section 16.401 and associated local involvement in implementation of the program; (4) monitor the implementation of water conservation strategies by water users included in regional water plans; and (5) monitor target and goal guidelines for water conservation to be considered by the board and the commission under Section 11.1271(d). (b) Not later than December 1 of each even-numbered year, the board shall submit to the governor, lieutenant governor, and speaker of the house of representatives a report on the progress made in water conservation in this state [jointly conduct a study of the ways to improve or expand water conservation efforts and report to the legislature]. [(b) The report must include: [(1) an assessment of both agricultural and municipal water conservation issues; [(2) information on existing conservation efforts by the board and the State Soil and Water Conservation Board; [(3) information on existing conservation efforts by municipalities receiving funding from the board, as specified in water conservation plans submitted by the municipalities as part of their applications for assistance; [(4) a discussion of future conservation needs; [(5) an analysis of programmatic approaches and funding for additional conservation efforts; [(6) an assessment of existing statutory authority and whether changes are needed to more effectively promote and fund conservation projects; and [(7) an assessment of the board's agricultural water conservation program. [(c) The report shall be issued as part of, or as a supplement to, the state water plan.] SECTION 2.19. Section 16.053, Water Code, is amended by adding Subsection (d-1) and amending Subsection (e) to read as follows: (d-1) The applicable groundwater management area councils shall provide to each regional water planning group and the board their adopted estimates of the amount of managed available groundwater in each applicable groundwater management area. (e) Each regional water planning group shall submit to the board a regional water plan that: (1) is consistent with the guidance principles for the state water plan adopted by the board under Section 16.051(d); (2) provides information based on data provided or approved by the board in a format consistent with the guidelines provided by the board under Subsection (d); (3) identifies: (A) each source of water supply in the regional water planning area, including information supplied by the applicable groundwater management area councils under Subsection (d-1) on the amount of managed available groundwater in the applicable groundwater management areas, in accordance with the guidelines provided by the board under Subsections (d) and (f); (B) factors specific to each source of water supply to be considered in determining whether to initiate a drought response; and (C) actions to be taken as part of the response; (4) has specific provisions for water management strategies to be used during a drought of record; (5) includes but is not limited to consideration of the following: (A) any existing water or drought planning efforts addressing all or a portion of the region; (B) approved [certified] groundwater conservation district management plans and other plans submitted under Section 16.054; (C) all potentially feasible water management strategies, including but not limited to improved conservation, reuse, and management of existing water supplies, conjunctive use, acquisition of available existing water supplies, and development of new water supplies; (D) protection of existing water rights in the region; (E) opportunities for and the benefits of developing regional water supply facilities or providing regional management of water supply facilities; (F) appropriate provision for environmental water needs and for the effect of upstream development on the bays, estuaries, and arms of the Gulf of Mexico and the effect of plans on navigation; (G) provisions in Section 11.085(k)(1) if interbasin transfers are contemplated; (H) voluntary transfer of water within the region using, but not limited to, regional water banks, sales, leases, options, subordination agreements, and financing agreements; and (I) emergency transfer of water under Section 11.139, including information on the part of each permit, certified filing, or certificate of adjudication for nonmunicipal use in the region that may be transferred without causing unreasonable damage to the property of the nonmunicipal water rights holder; (6) identifies river and stream segments of unique ecological value and sites of unique value for the construction of reservoirs that the regional water planning group recommends for protection under Section 16.051; (7) assesses the impact of the plan on unique river and stream segments identified in Subdivision (6) if the regional water planning group or the legislature determines that a site of unique ecological value exists; and (8) describes the impact of proposed water projects on water quality. SECTION 2.20. Subsection (h), Section 16.053, Water Code, is amended by adding Subdivisions (10), (11), and (12) to read as follows: (10) The regional water planning group may amend the regional water plan after the plan has been approved by the board. Subdivisions (1)-(9) apply to an amendment to the plan in the same manner as those subdivisions apply to the plan. (11) This subdivision applies only to an amendment to a regional water plan approved by the board. This subdivision does not apply to the adoption of a subsequent regional water plan for submission to the board as required by Subsection (i). Notwithstanding Subdivision (10), the regional water planning group may amend the plan in the manner provided by this subdivision if the executive administrator issues a written determination that the amendment qualifies for adoption in the manner provided by this subdivision before the regional water planning group votes on adoption of the amendment. An amendment qualifies for adoption in the manner provided by this subdivision only if the amendment will not result in the overallocation of any existing or planned source of water, does not relate to a new reservoir, and will not have a significant effect on instream flows or freshwater inflows to bays and estuaries. If the executive administrator determines that an amendment qualifies for adoption in the manner provided by this subdivision, the regional water planning group may adopt the amendment at a public meeting held in accordance with Chapter 551, Government Code. The amendment must be placed on the agenda for the meeting, and notice of the meeting must be given in the manner provided by Chapter 551, Government Code, at least two weeks before the date the meeting is held. The public must be provided an opportunity to comment on the amendment at the meeting. (12) Notwithstanding Subdivisions (10) and (11), a regional water planning group may revise a regional water plan approved by the board without complying with Subdivisions (1)-(9) or obtaining a determination from the executive administrator that the revision qualifies for adoption in the manner provided by Subdivision (11) if the revision consists only of substituting an alternative water management strategy previously evaluated in the planning process and already contained in the current regional water plan for a water management strategy recommended in the plan. The regional water planning group may adopt the revision to the regional water plan at a public meeting held in accordance with Chapter 551, Government Code. SECTION 2.21. Section 16.131, Water Code, is amended to read as follows: Sec. 16.131. AUTHORIZED PROJECTS. (a) The board may use the state participation account of the development fund to encourage optimum regional development of projects including the design, acquisition, lease, construction, reconstruction, development, or enlargement in whole or part of: (1) reservoirs and storm water retention basins for water supply, flood protection, and groundwater recharge; (2) facilities for the transmission and treatment of water; and (3) treatment works as defined by Section 17.001 [of this code]. (b) In its funding programs under this chapter, the board shall give priority to applications for water supply projects that promote conjunctive use, if conjunctive use is available, reasonable, and cost-effective. The board shall consider incentives for promoting conjunctive use, including low or zero interest rate loans. SECTION 2.22. Chapter 16, Water Code, is amended by adding Subchapters K and L to read as follows:
SUBCHAPTER K. WATER CONSERVATION
Sec. 16.401. STATEWIDE WATER CONSERVATION PUBLIC AWARENESS PROGRAM. The executive administrator shall develop and implement a statewide water conservation public awareness program to educate residents of this state about water conservation. The program shall take into account the differences in water conservation needs of various geographic regions of the state and shall be designed to complement and support existing local and regional water conservation programs. Sec. 16.402. PROTECTION AND USE OF INTELLECTUAL PROPERTY AND PUBLICATIONS. (a) In connection with the statewide water conservation awareness program, the executive administrator may: (1) apply for, register, secure, hold, and protect under the laws of the United States, a state, or a foreign country a patent, copyright, trademark, or other evidence of protection or exclusivity issued in or for an idea, publication, or other original innovation fixed in a tangible medium, including: (A) a literary work; (B) a logo; (C) a service mark; (D) a study; (E) a map or planning document; (F) an engineering, architectural, or graphic design; (G) a manual; (H) automated systems software; (I) an audiovisual work; (J) a sound recording; or (K) educational materials, including a pamphlet, bulletin, book, map, periodical, or electronic information; (2) enter into a nonexclusive license agreement with a third party for the receipt of a fee, royalty, or other thing of monetary or nonmonetary value; (3) waive or reduce the amount of a fee, royalty, or other thing of monetary or nonmonetary value to be assessed if the executive administrator determines that the waiver will: (A) further the goals and missions of the board; and (B) result in a net benefit to the state; and (4) adopt and enforce rules necessary to implement this section. (b) Money paid to the board under this section shall be deposited to the credit of the water infrastructure fund. Sec. 16.403. WATER CONSERVATION PLAN REVIEW. (a) Each entity that is required to submit a water conservation plan to the commission under this code shall submit a copy of the plan to the executive administrator. (b) Each entity that is required to submit a water conservation plan to the executive administrator, board, or commission under this code shall report annually to the executive administrator on the entity's progress in implementing the plan. (c) The executive administrator shall review each water conservation plan and annual report to determine compliance with the minimum requirements of all applicable laws and rules.
SUBCHAPTER L. REGISTRATION AND REPORTING OF WATER TRANSACTIONS
Sec. 16.451. SCOPE OF SUBCHAPTER. This subchapter does not apply to a sale or lease of land that includes the transfer of the ownership of or a leasehold interest in the groundwater or surface water rights unless the primary purpose of the purchaser or lessee in purchasing or leasing the land is to acquire the ownership of or a leasehold interest in the groundwater or surface water rights. Sec. 16.452. REGISTRATION REQUIRED. Unless the person is registered by the executive administrator under this subchapter, a person may not: (1) sell or lease a right of any kind to more than 100 acre-feet a year of surface water or groundwater to another person; or (2) agree to provide more than 100 acre-feet a year of surface water or groundwater to another person. Sec. 16.453. ELIGIBILITY FOR REGISTRATION. To be eligible for registration under this subchapter, a person must submit to the executive administrator: (1) an application on a form prescribed by board rule; and (2) a fee in an amount determined by board rule that is sufficient to cover the costs incurred by the board in administering this subchapter. Sec. 16.454. REGISTRATION RENEWAL. Registration under this subchapter must be renewed annually. Sec. 16.455. REPORTING WATER TRANSACTIONS. A person who sells or leases a right of any kind to more than 100 acre-feet a year of surface water or groundwater to another person or agrees to provide more than 100 acre-feet a year of surface water or groundwater to another person shall report the sale, lease, or agreement to the executive administrator not later than the 30th day after the date of closing of the sale or execution of the lease or agreement by submitting to the executive administrator: (1) a report concerning the sale, lease, or agreement that complies with rules adopted by the board; and (2) a transaction reporting fee in an amount determined by board rule that is sufficient to cover the costs incurred by the board in administering this subchapter. Sec. 16.456. ADMINISTRATIVE PENALTY. (a) A person who sells or leases a right of any kind to surface water or groundwater or agrees to provide surface water or groundwater in violation of Section 16.452 or 16.455 is subject to an administrative penalty. The amount of the penalty may not exceed $5,000 for each sale, lease, or agreement in violation of Section 16.452 or 16.455. A separate penalty may be imposed for a violation of each section if a sale, lease, or agreement violates both sections. (b) The executive administrator may refer a violation of Section 16.452 or 16.455 to the commission. The commission may impose an administrative penalty for the violation in the manner provided by Subchapter C, Chapter 7. Sec. 16.457. DEPOSIT OF FEES AND PENALTIES IN WATER INFRASTRUCTURE FUND. A fee or administrative penalty collected under this subchapter shall be deposited to the credit of the water infrastructure fund. SECTION 2.23. Section 17.001, Water Code, is amended by adding Subdivision (26) to read as follows: (26) "Conjunctive use" has the meaning assigned by Section 11.002. SECTION 2.24. Subchapter A, Chapter 17, Water Code, is amended by adding Section 17.004 to read as follows: Sec. 17.004. PRIORITY FOR CONJUNCTIVE USE APPLICATIONS. In its funding programs under this chapter, the board shall give priority to applications for water supply projects that promote conjunctive use, if conjunctive use is available, reasonable, and cost-effective. The board shall consider incentives for promoting conjunctive use, including low or zero interest rate loans. SECTION 2.25. Section 17.125, Water Code, is amended by adding Subsection (b-2) to read as follows: (b-2) The board shall give priority to applications for funds for implementation of water supply projects in the state water plan by entities that: (1) have already demonstrated significant water conservation savings; or (2) will achieve significant water conservation savings by implementing the proposed project for which the financial assistance is sought. SECTION 2.26. Section 26.001, Water Code (effective upon delegation of NPDES authority), is amended by adding Subdivision (27) to read as follows: (27) "Treated effluent" means waste that has been treated as required by, and is authorized to be discharged under, a permit. SECTION 2.27. Section 26.003, Water Code, is amended to read as follows: Sec. 26.003. POLICY OF THIS SUBCHAPTER. It is the policy of this state and the purpose of this subchapter to maintain the quality of water in the state consistent with the public health and enjoyment, the propagation and protection of terrestrial and aquatic life, and the operation of existing industries, taking into consideration the economic development of the state; to encourage and promote the development and use of regional and areawide waste collection, treatment, and disposal systems to serve the waste disposal needs of the citizens of the state; to encourage the stewardship of public and private lands to benefit waters of the state; and to require the use of all reasonable methods to implement this policy. SECTION 2.28. Section 26.027, Water Code (effective upon delegation of NPDES permit authority), is amended by adding Subsections (a-1) and (c-1) to read as follows: (a-1) The commission may issue permits and amendments to permits for the injection and subsequent recovery for beneficial use of treated effluent into an aquifer in this state. A permit may not be issued authorizing the injection of any radiological, chemical, or biological warfare agent or high–level radioactive waste. The commission may issue a permit only if the commission finds that issuance of the permit would not: (1) violate a state or federal law or a rule or regulation adopted under such a law; (2) alter the physical, chemical, or biological quality of native groundwater to a degree that the introduction of treated effluent would: (A) render groundwater produced from the aquifer harmful or detrimental to people, animals, vegetation, or property; or (B) require treatment of the groundwater to a greater extent than the native groundwater requires before being applied to that beneficial use; or (3) interfere with the purpose of this chapter. (c-1) A person may not commence injection of treated effluent until the commission has issued a permit to authorize the injection from the treatment facility, except with the approval of the commission. SECTION 2.29. Section 27.012, Water Code, is amended by adding Subsection (c) to read as follows: (c) Applications for injection of treated effluent under a permit issued under Chapter 26 for purposes of injection into an aquifer for storage and subsequent recovery for beneficial use shall be processed in accordance with this chapter for the benefit of the state and the preservation of its natural resources. SECTION 2.30. Subchapter B, Chapter 27, Water Code, is amended by adding Section 27.022 to read as follows: Sec. 27.022. PERMIT FOR INJECTION FOR STORAGE AND RECOVERY OF TREATED EFFLUENT IN CLASS V WELLS. (a) The commission may issue a permit to inject for storage and subsequent recovery for beneficial use treated effluent under a permit issued under Chapter 26 in a Class V injection well if the applicant for the permit meets all the statutory and regulatory requirements for the issuance of a permit for a Class V injection well. (b) The commission by rule shall provide for public notice and comment on an application for a permit authorized by this section. Notwithstanding Section 27.018, an application for a permit authorized by this section is not subject to the hearing requirements of Chapter 2001, Government Code. SECTION 2.31. Subsection (c), Section 35.004, Water Code, is amended to read as follows: (c) The Texas Water Development Board may not alter the boundaries of designated management areas [as required by future conditions and as justified by factual data. An alteration of boundaries does not invalidate the previous creation of any district]. SECTION 2.32. Subsection (b), Section 35.018, Water Code, is amended to read as follows: (b) The report must include: (1) the names and locations of all priority groundwater management areas and districts created or attempted to be created on or after November 5, 1985, the effective date of Chapter 133 (H.B. No. 2), Acts of the 69th Legislature, Regular Session, 1985; (2) the authority under which each priority groundwater management area and district was proposed for creation; (3) a detailed analysis of each election held to confirm the creation of a district, including analysis of election results, possible reasons for the success or failure to confirm the creation of a district, and the possibility for future voter approval of districts in areas in which attempts to create districts failed; (4) a detailed analysis of the activities of each district created, including those districts which are implementing management plans approved [certified] under Section 36.1072; (5) a report on [audits performed on districts under Section 36.302 and] remedial actions taken under Section 36.303; (6) recommendations for changes in this chapter and Chapter 36 that will facilitate the creation of priority groundwater management areas and the creation and operation of districts; (7) a report on educational efforts in newly designated priority groundwater management areas; and (8) any other information and recommendations that the commission considers relevant. SECTION 2.33. Section 36.001, Water Code, is amended by amending Subdivision (21) and adding Subdivisions (4-a) and (24) through (29) to read as follows: (4-a) "Federal conservation program" means the Conservation Reserve Program of the United States Department of Agriculture, or any successor program. (21) "Conjunctive use" has the meaning assigned by Section 11.002 [means the combined use of groundwater and surface water sources that optimizes the beneficial characteristics of each source]. (24) "Total aquifer storage" means the total calculated volume of groundwater that an aquifer is capable of producing. (25) "Managed available groundwater" means the amount of water that may be permitted by a district for beneficial use in accordance with the desired future condition of the aquifer as determined by the groundwater management area council. (26) "Recharge" means the amount of water that infiltrates to the water table of an aquifer. (27) "Inflows" means the amount of water that flows into an aquifer from another formation. (28) "Discharge" means the amount of water that leaves an aquifer by natural or artificial means. (29) "Evidence of historic use" means evidence that is material and relevant to a determination of the amount of groundwater beneficially used without waste by a permit applicant during the relevant time period set by district rule that regulates groundwater based on historic use. Evidence in the form of oral or written testimony shall be subject to cross-examination. The Texas Rules of Evidence govern the admissibility and introduction of evidence, except that evidence not admissible under the Texas Rules of Evidence may be admitted if it is of the type commonly relied upon by reasonably prudent persons in the conduct of their affairs, or if agreed to by stipulation of the parties. SECTION 2.34. Subchapter A, Chapter 36, Water Code, is amended by adding Section 36.0016 to read as follows: Sec. 36.0016. POLICY GOAL. It is the policy goal of this chapter to ensure the consistent management of groundwater in a shared management area by the groundwater conservation districts located in that area. SECTION 2.35. Section 36.002, Water Code, is amended to read as follows: Sec. 36.002. OWNERSHIP OF GROUNDWATER. The ownership and rights of the owners of the land and their lessees and assigns in groundwater are hereby recognized, and nothing in this code shall be construed as depriving or divesting the owners or their lessees and assigns of the ownership or rights, except as those rights may be limited or altered by rules promulgated by a district. A rule promulgated by a district may not discriminate between owners of land that is irrigated for production and owners of land or their lessees and assigns whose land that was irrigated for production is enrolled or participating in a federal conservation program. SECTION 2.36. Subchapter B, Chapter 36, Water Code, is amended by adding Section 36.022 to read as follows: Sec. 36.022. GROUNDWATER CONSERVATION DISTRICT FOR STATE-OWNED LAND. (a) The commission may create a district composed of all state-owned land that is not inside the boundaries of a confirmed groundwater conservation district on the date the statewide district is created. (b) The members of the commission shall serve as the board of directors of the district. (c) The district has all powers and duties of a district provided by Subchapter D. (d) The following laws do not apply to the district created under this section: (1) Section 12.081; (2) Sections 36.011-36.021; (3) Subchapters C, E, F, G, H, I, J, and K; and (4) Chapter 49. (e) At least 30 days before the district is created under this section, the commission shall publish notice of the intention to create the district, setting forth the general powers and duties of the district in a newspaper having general circulation in each county with land to be included in the territory of the district. SECTION 2.37. Subsections (a), (b), and (d) through (g), Section 36.1071, Water Code, are amended to read as follows: (a) Following notice and hearing, the district shall, in coordination with surface water management entities on a regional basis, develop a comprehensive management plan which addresses the following management goals, as applicable: (1) providing the most efficient use of groundwater; (2) controlling and preventing waste of groundwater; (3) controlling and preventing subsidence; (4) addressing conjunctive surface water management issues; (5) addressing natural resource issues; (6) addressing drought conditions; [and] (7) addressing conservation, recharge enhancement, rainwater harvesting, precipitation enhancement, or brush control, where appropriate and cost-effective; (8) addressing a data collection program that meets standards established by Texas Water Development Board rules; and (9) addressing in a quantitative manner the desired future conditions for the groundwater resources within the district established by the groundwater management area council under Section 36.108. (b) A [After January 5, 2002, a] district management plan, or any amendments to a district management plan, shall be developed by the district using the district's best available data and forwarded to the regional water planning group for use [consideration] in their planning process. (d) The commission shall provide technical assistance to a district during its initial operational phase. If requested by a district, the Texas Water Development Board shall train the district on basic data collection methodology and provide technical assistance to districts as provided by Section 16.0122. (e) In the management plan described under Subsection (a), the district shall: (1) identify the performance standards and management objectives under which the district will operate to achieve the management goals identified under Subsection (a); (2) specify, in as much detail as possible, the actions, procedures, performance, and avoidance that are or may be necessary to effect the plan, including specifications and proposed rules; (3) include estimates of the following: (A) managed available [the existing total usable amount of] groundwater in the district as provided by the executive administrator and based on the desired future condition of the aquifers established by the groundwater management area council under Section 36.108; (B) the amount of groundwater [being] used within the district on an annual basis for each of the preceding 10 years; (C) the annual amount of recharge, if any, to the groundwater resources within the district and how natural or artificial recharge may be increased; and (D) the projected water supply and projected demand for water within the district; and (4) address water supply needs in a manner that is not in conflict with the adopted state [appropriate approved regional] water plan [if a regional water plan has been approved under Section 16.053]. (f) The district shall adopt rules necessary to implement the management plan. Prior to the development of the management plan and its approval under Section 36.1072, the district may not adopt rules other than rules pertaining to the registration and continued operation of existing wells and rules governing procedure before the district's board; however, the district may accept applications for permits under Section 36.113, provided the district does not act on any such application until the district's management plan is approved as provided in Section 36.1072, unless special circumstances are demonstrated which necessitate the granting of one or more interim authorizations to drill and operate new wells prior to the management plan's approval. (g) The district [board] shall adopt amendments to the management plan as necessary. Amendments to the management plan shall be adopted after notice and hearing and shall otherwise comply with the requirements of this section. SECTION 2.38. Section 36.1072, Water Code, is amended to read as follows: Sec. 36.1072. COUNCIL [TEXAS WATER DEVELOPMENT BOARD] REVIEW AND APPROVAL [CERTIFICATION] OF MANAGEMENT PLAN. (a) A district shall, not later than three [two] years after the creation of the district or, if the district required confirmation, after the election confirming the district's creation, submit the management plan required under Section 36.1071 to the executive administrator for review and comment and to the groundwater management area council for review and approval [certification]. The executive administrator shall provide comments to the groundwater management area council and groundwater district on the plan, including whether the plan contains goals and objectives consistent with achieving the desired future condition of the relevant aquifers as adopted by the groundwater management area council under Section 36.108. (b) Within 60 days of receipt of a management plan adopted under Section 36.1071, readopted under Subsection (e) of this section, or amended under Section 36.1073, the council [executive administrator] shall approve [certify] a management plan that contains goals and objectives consistent with achieving the desired future condition of the relevant aquifers as adopted by the groundwater management area council under Section 36.108 and that contains [if the plan is administratively complete. A management plan is administratively complete when it contains] the information required to be submitted under Section 36.1071. The groundwater management area council [executive administrator] may determine whether [that] conditions justify waiver of the requirements under Section 36.1071(e)(4). (c) Once the groundwater management area council has approved a [determination that a] management plan [is administratively complete has been made]: (1) the council [executive administrator] may not revoke but may suspend the approval as provided by Subsection (g) [determination that a management plan is administratively complete]; and (2) the council [executive administrator] may request additional information from the district if the information is necessary to clarify, modify, or supplement previously submitted material, but[; and [(3)] a request for additional information does not render the management plan unapproved [incomplete]. (d) A management plan takes effect on approval [certification] by the groundwater management area council [executive administrator] or, if appealed, on approval [certification] by the Texas Water Development Board. (e) The district [board] may review the plan annually and must review and readopt the plan with or without revisions at least once every five years. The district shall provide the readopted plan to the executive administrator and groundwater management area council not later than the 60th day after the date on which the plan was readopted. Approval of the preceding management plan remains in effect until: (1) the district fails to timely readopt a management plan; (2) the district fails to timely submit the district's readopted management plan to the executive administrator or the council; or (3) the council determines that the readopted management plan does not meet the requirements for approval, and the district has exhausted all appeals to the Texas Water Development Board. (f) If the groundwater management area council [executive administrator] does not approve [certify] the management plan, the council [executive administrator] shall provide to the district, in writing, the reasons for the action. Not later than the 180th day after the date a district receives notice that its management plan has not been approved [certified], the district may submit a revised management plan for review and approval [certification]. The council's [executive administrator's] decision may be appealed to the Texas Water Development Board. The decision of the Texas Water Development Board on whether to approve [certify] the management plan may [not] be appealed to a district court in the county where the district is headquartered. The commission shall not take enforcement action against a district under Subchapter I until the later of the expiration of the 180-day period or the date the Texas Water Development Board has taken final action withholding approval [certification] of a revised management plan. (g) In this subsection, "development board" means the Texas Water Development Board, and "council" means the groundwater management area council. A person with a legally defined interest in groundwater in a district or the regional water planning group may file a petition with the council [board] stating that a conflict requiring resolution may exist between the district's approved [certified groundwater conservation district] management plan developed under Section 36.1071 and the state water plan. If a conflict exists, the council [board] shall facilitate coordination between the involved person or regional water planning group and the district to resolve the conflict. If conflict remains, the council shall petition the development board to [shall] resolve the conflict. The development board action under this provision may be consolidated, at the option of the development board, with related action under Section 16.053(p). If the development board determines that resolution of the conflict requires a revision of the approved [certified groundwater conservation district] management plan, the council [board] shall suspend the approval [certification] of the plan and provide information to the district. The district shall prepare any revisions to the plan specified by the council [board] and shall hold, after notice, at least one public hearing at some central location within the district. The district shall consider all public and development board comments, prepare, revise, and adopt its plan, and submit the revised plan to the council [board] for approval [certification]. On the request of the district or the regional water planning group, the development board shall include discussion of the conflict and its resolution in the state water plan that the development board provides to the governor, the lieutenant governor, and the speaker of the house of representatives under Section 16.051(e). SECTION 2.39. Section 36.1073, Water Code, is amended to read as follows: Sec. 36.1073. AMENDMENT TO MANAGEMENT PLAN. Any amendment to the management plan shall be submitted to the groundwater management area council and the executive administrator for review and comment within 60 days following adoption of the amendment by the district's board. The council [executive administrator] shall review and approve and the executive administrator shall review and comment on [certify] any amendment which substantially affects the management plan in accordance with the procedures established under Section 36.1072. SECTION 2.40. Subchapter D, Chapter 36, Water Code, is amended by amending Section 36.108 and adding Sections 36.1081 and 36.1082 to read as follows: Sec. 36.108. GROUNDWATER MANAGEMENT AREA COUNCIL; [JOINT] PLANNING IN MANAGEMENT AREA. (a) In this section, "development board" means the Texas Water Development Board. (b) The development board shall establish a groundwater management area council for each management area designated under Section 35.004 and shall appoint the members of the council, except as provided by this section. The groundwater management area council shall ensure the coordination of groundwater management in each management area. (c) Each groundwater management area council is composed of the following representatives: (1) the presiding officer of each groundwater conservation district in the groundwater management area or the presiding officer's designee; (2) one additional representative of each multicounty groundwater conservation district, if the district chooses to appoint one; and (3) residents of a district in the groundwater management area appointed by the development board as follows: (A) one representative of retail water utility or municipal interests located wholly or partly in the groundwater management area; (B) one representative of a regional water planning group, as designated under Section 16.053, to represent all the regional water planning groups located wholly or partly in the groundwater management area; (C) one representative of agricultural interests who is an individual actively engaged in production agriculture; (D) one representative of industrial or manufacturing interests located wholly or partly in the groundwater management area; and (E) if applicable, one representative who holds a permit from a district to use groundwater outside the boundaries of the district. (d) If the number of representatives on the groundwater management area council that results from the application of Subsection (c) is an even number, the representatives shall appoint an additional representative by a two-thirds vote of those representatives. The additional member must be a resident of a district in the groundwater management area with a reasonable knowledge of groundwater issues and hydrology in the area. (e) The groundwater management area council shall elect one of the representatives as presiding officer of the council. (f) A person appointed under Subsection (c)(3) or (d) may not be an employee or officer of a district or a state or federal agency. (g) A member of the council appointed under Subsection (c)(3) or (d) serves a two–year term expiring August 31 of each odd-numbered year. If a vacancy occurs, the council shall appoint a successor not later than the 60th day after the date the council receives notice of the vacancy. (h) Not later than the fifth anniversary, after funding is made available, of the appointment of a groundwater management area council, and at least every fifth year after that anniversary, each groundwater management area council shall adopt a statement that in a quantified manner describes the desired future conditions of each aquifer in the groundwater management area, which may include protection of spring flow in the area. (i) A groundwater management area council may: (1) in coordination with the executive administrator, perform areawide hydrogeologic studies and modeling as supplements to the groundwater availability models obtained or developed by the executive administrator under Section 16.012; (2) coordinate with a district, regional water planning group, political subdivision, the commission, the development board, or any other person or entity regarding groundwater management; (3) establish groundwater monitoring networks in the groundwater management area; and (4) designate a political subdivision to perform a duty required by this section, including by executing a necessary contract. (j) In adopting the desired future conditions of each aquifer under Subsection (h), each groundwater management area council shall: (1) use groundwater availability models developed by the executive administrator or other data approved by the executive administrator; and (2) consider recommendations that districts or other interested persons in the groundwater management area propose. (k) The commission and the development board shall provide technical assistance to a groundwater management area council in the development of the statement adopted under Subsection (h). (l) Each groundwater management area council shall submit the council's final statement adopted under Subsection (h) to the executive administrator for review and comment. If the development board finds that the submitted statement and estimate are in conflict with the state water plan or the groundwater availability adopted by the development board for the council's groundwater management area, the development board shall provide comment and recommendations to the council to resolve the conflict. The council shall amend the adopted statement and estimate accordingly. The executive administrator shall provide an estimate of managed available groundwater to the groundwater management area council based on the council's statement adopted under Subsection (h). (m) Each groundwater management area council shall: (1) conduct all meetings in accordance with Chapter 551, Government Code; (2) provide notice for each meeting in the manner prescribed by Chapter 551, Government Code, for a district board of directors meeting; and (3) comply with the provisions of Chapter 552, Government Code. (n) A cause of action does not accrue against a groundwater management area council, a representative serving on a groundwater management area council, or an employee of a political subdivision designated under Subsection (i)(4) for an act or omission if the council, representative, or employee committed the act or omission while acting in good faith and in the course and scope of the council's, representative's, or employee's work related to the groundwater management area council. (o) A groundwater management area council, a representative serving on a groundwater management area council, or an employee of a political subdivision designated under Subsection (i)(4) is not liable for damages arising from an act or omission if the council, representative, or employee committed the act or omission while acting in good faith and in the course and scope of the council's, representative's, or employee's work related to the groundwater management area council. (p) On request, the attorney general shall represent a groundwater management area council, a representative serving on a groundwater management area council, or an employee of a political subdivision designated under Subsection (i)(4) in a suit arising from an act or omission relating to the groundwater management area council. (q) A person with a legally defined interest in the groundwater in the groundwater management area, a district in or adjacent to the groundwater management area, or a regional water planning group for a region in the groundwater management area may file a petition with the development board appealing the approval of the groundwater management area plan. The petition must provide evidence that: (1) the groundwater management area plan does not establish a reasonable desired future condition of the groundwater resources in the groundwater management area; (2) the management area plan does not establish reasonable groundwater availability for the district; or (3) the groundwater in the groundwater management area will not be adequately protected. (r) The development board shall review the petition and any evidence relevant to the petition. The development board shall hold at least one hearing at a central location in the management area to take testimony on the petition. The development board may delegate responsibility for a hearing to the executive administrator or to a person designated by the executive administrator. If the development board finds that the groundwater management area plan requires revision, the development board shall submit a report to the groundwater management area council that includes a list of findings and recommended revisions to the groundwater management area plan. (s) The groundwater management area council shall prepare a revised plan in accordance with development board recommendations and hold, after notice, at least one public hearing at a central location in the groundwater management area. After consideration of all public and development board comments, the council shall revise the plan and submit the plan to the development board for review [If two or more districts are located within the boundaries of the same management area, each district shall prepare a comprehensive management plan as required by Section 36.1071 covering that district's respective territory. On completion and certification of the plan as required by Section 36.1072, each district shall forward a copy of the new or revised management plan to the other districts in the management area. The boards of the districts shall consider the plans individually and shall compare them to other management plans then in force in the management area. [(b) The board of directors of each district in the management area may, by resolution, call for joint planning with the other districts in the management area to review the management plans and accomplishments for the management area. In reviewing the management plans, the boards shall consider: [(1) the goals of each management plan and its impact on planning throughout the management area; [(2) the effectiveness of the measures established by each management plan for conserving and protecting groundwater and preventing waste, and the effectiveness of these measures in the management area generally; and [(3) any other matters that the boards consider relevant to the protection and conservation of groundwater and the prevention of waste in the management area. [(c) If a joint meeting of the boards of directors is called, the meeting must be held in accordance with Chapter 551, Government Code. Notice of the meeting shall be given in accordance with the requirements for notice of district board of directors meetings under that Act]. Sec. 36.1081. PETITION AGAINST DISTRICT. (a) At least every five years a groundwater [(d) A district in the] management area council shall review the management plan and the performance of each district in the groundwater management area. A district or a groundwater management area council for good cause may file [with good cause] a petition with the commission requesting an inquiry if [the petitioner district adopted a resolution calling for joint planning and the other district or districts refused to join in the planning process or the process failed to result in adequate planning, and the petition provides evidence that]: (1) a [another] district in the groundwater management area has failed to submit its management plan to the executive administrator and the groundwater management area council [adopt rules]; (2) a district in the groundwater management area has failed to adopt or make reasonable progress toward adopting rules; (3) the rules adopted by a district are not designed to achieve the desired future condition of the groundwater resources in the groundwater management area established by the groundwater management area plan [the groundwater in the management area is not adequately protected by the rules adopted by another district]; or (4) [(3)] the groundwater in the groundwater management area is not adequately protected due to the failure of a [another] district to enforce substantial compliance with its rules. (b) [(e)] Not later than the 90th day after the date the petition is filed, the commission shall review the petition and either: (1) dismiss the petition if the commission [it if it] finds that the evidence is not adequate to show that any of the conditions alleged in the petition exist; or (2) select a review panel as provided in Subsection (c) [(f)]. (c) [(f)] If the petition is not dismissed under Subsection (b) [(e)], the commission shall appoint a review panel consisting of a chairman and four other members. A director or general manager of a district located outside the groundwater management area that is the subject of the petition may be appointed to the review panel. The commission may not appoint more than two members of the review panel from any one district. The commission also shall appoint a disinterested person to serve as a nonvoting recording secretary for the review panel. The recording secretary may be an employee of the commission. The recording secretary shall record and document the proceedings of the panel. (d) [(g)] Not later than the 120th day after appointment, the review panel shall review the petition and any evidence relevant to the petition and, in a public meeting, consider and adopt a report to be submitted to the commission. The commission may direct the review panel to conduct public hearings at a location in the groundwater management area to take evidence on the petition. The review panel may attempt to negotiate a settlement or resolve the dispute by any lawful means. (e) [(h)] In its report, the review panel shall include: (1) a summary of all evidence taken in any hearing on the petition; (2) a list of findings and recommended actions appropriate for the commission to take and the reasons it finds those actions appropriate; and (3) any other information the panel considers appropriate. (f) [(i)] The review panel shall submit its report to the commission. The commission may take action under Section 36.3011. Sec. 36.1082. DISTRICT COOPERATION. [(j)] Districts located within the same groundwater management areas or in adjacent management areas may contract to jointly conduct studies or research, or to construct projects, under terms and conditions that the districts consider beneficial. These joint efforts may include studies of groundwater availability and quality, aquifer modeling, and the interaction of groundwater and surface water; educational programs; the purchase and sharing of equipment; and the implementation of projects to make groundwater available, including aquifer recharge, brush control, weather modification, desalination, regionalization, and treatment or conveyance facilities. The districts may contract under their existing authorizations including those of Chapter 791, Government Code, if their contracting authority is not limited by Sections 791.011(c)(2) and (d)(3) and Section 791.014, Government Code. SECTION 2.41. Section 36.113, Water Code, is amended by amending Subsections (a), (c), (e), and (f) and adding Subsections (h) through (l) to read as follows: (a) A district shall require permits for [the] drilling, equipping, [or] completing, or operating [of] wells or for substantially altering the size of wells or well pumps. (c) A district may require that the following be included in the permit application: (1) the name and mailing address of the applicant and the owner of the land on which the well will be located; (2) if the applicant is other than the owner of the property, documentation establishing the applicable authority to construct and operate a well for the proposed purpose of use; (3) a statement of the nature and purpose of the proposed use and the amount of water to be used for each purpose; (4) a water conservation plan or a declaration that the applicant will comply with the district's management plan; (5) the location of each well and the estimated rate at which water will be withdrawn; (6) a water well closure plan or a declaration that the applicant will comply with well plugging guidelines and report closure to the commission; and (7) a drought contingency plan. (e) The district may impose more restrictive permit conditions on new permit applications and increased use by historic or existing users if the limitations: (1) apply to all subsequent new permit applications and increased use by historic or existing users, regardless of type or location of use; (2) bear a reasonable relationship to the existing district management plan; and (3) are reasonably necessary to protect existing use. (f) Permits may be issued subject to the rules promulgated by the district and subject to terms and provisions with reference to the drilling, equipping, completion, operating, or alteration of wells or pumps that may be necessary to prevent waste and achieve water conservation, minimize as far as practicable the drawdown of the water table or the reduction of artesian pressure, lessen interference between wells, or control and prevent subsidence. (h) A district shall provide that a change in the purpose and place of use under a permit that was granted for historic or existing use may not be made without a permit amendment. The district shall grant a permit amendment changing the purpose and place of use on application of the holder of a permit that was granted for historic or existing use, and the rules that apply to the operation of a well under any other permit issued by the district not based on historic or existing use apply to the operation of the well under the amended permit. (i) A district that authorizes a permit for historic or existing use shall issue that type of permit based on evidence of the maximum amount of water beneficially used without waste during any one year before the district was created, or before the rules of the district were adopted or notice of such proposed rules was published and only for the purpose and amount beneficially used without waste in that year. (j) In issuing a permit for an existing or historic use, a district may not discriminate between land that is irrigated for production and land or wells on land that was irrigated for production and enrolled or participating in a federal conservation program. (k) A permitting decision by a district is void if: (1) the district makes its decision in violation of Subsection (j); and (2) the district would have reached a different decision if the district had treated land or wells on land enrolled or participating in a federal conservation program the same as land irrigated for production. (l) On the application of an affected owner of land or the owner's lessee or assigns, the district shall reconsider a decision that is void under Subsection (k) and base its decision on the equal treatment of land or wells on land enrolled or participating in a federal conservation program and land that is irrigated for production. Not later than the 90th day after the date the district receives an application under this subsection, the district shall render its decision and notify the applicant of its decision. SECTION 2.42. Subchapter D, Chapter 36, Water Code, is amended by adding Section 36.1152 to read as follows: Sec. 36.1152. PERMITS BASED ON MANAGED AVAILABLE GROUNDWATER. (a) Except as provided by Subsection (b), a district, to the extent possible, shall issue permits up to the point that the total volume of groundwater permitted equals the managed available groundwater, if administratively complete permit applications are submitted to the district. (b) If a district proposes, based on sound science, to limit the volume of groundwater permitted to less than the managed available groundwater, the district must obtain the approval of the groundwater management area council. Prior to acting on the request, the groundwater management area council shall obtain and consider the executive administrator's technical review and analysis of the science on which the request is based. (c) The groundwater management area council: (1) shall approve a district's proposed limit under Subsection (b) if the total reduction from the managed available groundwater does not exceed 12.5 percent; and (2) may approve a limit resulting in a reduction greater than 12.5 percent. SECTION 2.43. Subsections (a) and (b), Section 36.116, Water Code, are amended to read as follows: (a) In order to minimize as far as practicable the drawdown of the water table or the reduction of artesian pressure, to control subsidence, to prevent interference between wells, to prevent degradation of water quality, or to prevent waste, a district by rule may regulate: (1) the spacing of water wells by: (A) requiring all water wells to be spaced a certain distance from property lines or adjoining wells; (B) requiring wells with a certain production capacity, pump size, or other characteristic related to the construction or operation of and production from a well to be spaced a certain distance from property lines or adjoining wells; or (C) imposing spacing requirements adopted by the board; and (2) the production of groundwater by: (A) setting production limits on wells; (B) limiting the amount of water produced based on acreage or tract size; (C) limiting the amount of water that may be produced from a defined number of acres assigned to an authorized well site; (D) limiting the maximum amount of water that may be produced on the basis of acre-feet per acre or gallons per minute per well site per acre; [or] (E) managed depletion; or (F) any combination of the methods listed above in Paragraphs (A) through (E) [(D)]. (b) In promulgating any rules limiting groundwater production, the district may preserve historic or existing use before the effective date of the rules to the maximum extent practicable consistent with the district's comprehensive management plan under Section 36.1071 and as provided by Section 36.113. SECTION 2.44. Subchapter D, Chapter 36, Water Code, is amended by adding Section 36.125 to read as follows: Sec. 36.125. APPEAL OF DISTRICT ACTION TO DISPUTE RESOLUTION PANEL. (a) If a dispute arises between a district and a person affected by an action taken by the district under this subchapter, either the district or the affected person may file a petition with the commission requesting the appointment of a dispute resolution panel to assist the parties in reaching a resolution of the dispute. Any party may within 10 days of the filing of the petition submit to the commission a written objection to the appointment of a panel. (b) A petition filed under this section must include: (1) the name of and contact information for each party; (2) a brief summary of the dispute along with a copy of any relevant document, including a permit, an application, a timeline, the district's enabling statute, a rule, a groundwater management plan, or the groundwater management area plan; and (3) other information required by the commission. (c) Not later than the 60th day after the date the petition is filed, the commission shall review the petition and: (1) dismiss it if the commission finds that the petition is baseless, is frivolous, or fails to present an issue that is appropriate for panel review or finds that there is reasonable basis for the objection filed under Subsection (a); or (2) select a panel as provided by Subsection (e). (d) If the petition is dismissed, the commission shall provide the reasons for the dismissal in writing to the district and the affected person. (e) If the petition is not dismissed, the commission shall, in accordance with an interagency contract, request the Center for Public Policy Dispute Resolution to select a three-member dispute resolution panel. The panel shall be selected within 30 days of the commission's request. All panel members must be individuals who are not involved in or affected by the matter in dispute and whose expertise and knowledge may be useful in resolving the dispute. The chair of the panel must also be an impartial third party, have expertise and classroom training in resolving public policy disputes, and have knowledge of groundwater law in Texas. The panel members' costs shall be shared equally among the parties, unless agreed to otherwise. The commission shall compensate the Center for its costs related to this subsection. (f) Not later than the 45th day after the date the panel is selected, the panel shall review the petition and any information relevant to the petition and begin holding meetings with the parties to assist them in resolving the dispute. The panel may consolidate multiple parties, appoint a person to represent multiple parties, invite additional parties, or dismiss parties as the panel considers appropriate. The Texas Water Development Board and the commission shall provide technical and legal assistance as requested by the panel. (g) Not later than the 90th day after the panel's first meeting with the parties, the panel shall report to the commission whether the parties have reached a settlement. If no settlement has been reached, the commission shall dissolve the panel and the parties may proceed with any other available remedy, including those provided under Subchapter H. (h) A court of this state shall take judicial notice of a dispute resolution panel under this section and may stay an affected judicial proceeding pending a settlement of the dispute or the dissolution of the panel. SECTION 2.45. Section 36.301, Water Code, is amended to read as follows: Sec. 36.301. FAILURE TO SUBMIT A MANAGEMENT PLAN. If a board fails to submit a management plan or readopted management plan to receive approval [certification] of its management plan under Section 36.1072 or fails to submit or receive approval [certification] of an amendment to the management plan under Section 36.1073, the commission shall take appropriate action under Section 36.303. SECTION 2.46. Section 36.3011, Water Code, is amended to read as follows: Sec. 36.3011. FAILURE OF [A] DISTRICT TO COMPLY WITH GROUNDWATER MANAGEMENT AREA PLAN [CONDUCT JOINT PLANNING]. [(a) If the board of a district within a common management area fails to forward a copy of its new or revised certified management plan under Section 36.108, the commission shall take appropriate action under Section 36.303. [(b)] Not later than the 45th day after receiving the review panel's report under Section 36.1081 [36.108], the executive director or the commission shall take action to implement any or all of the panel's recommendations. The commission may take any action against a district it considers necessary in accordance with Section 36.303 if [If] the commission finds that: (1) a district [in the joint planning area] has failed to submit its plan to the executive administrator and the groundwater management area council; (2) a district has failed to adopt rules; (3) the rules adopted by the district are not designed to achieve the desired future condition of the groundwater resources in the groundwater management area established under the groundwater management area plan; or (4) the district fails[, the groundwater in the management area is not adequately protected by the rules adopted by the district, or the groundwater in the management area is not adequately protected because of the district's failure] to enforce substantial compliance with its rules[, the commission may take any action it considers necessary in accordance with Section 36.303]. SECTION 2.47. Subsection (d), Section 36.302, Water Code, is amended to read as follows: (d) The state auditor may perform the review under Subsection (a) following the first anniversary of the initial approval [certification] of the plan [by the Texas Water Development Board] under Section 36.1072 and at least as often as once every seven years after that date, subject to a risk assessment and to the legislative audit committee's approval of including the review in the audit plan under Section 321.013, Government Code. SECTION 2.48. Subsection (a), Section 36.303, Water Code, is amended to read as follows: (a) If Section 36.1081 [36.108], 36.301, or 36.3011 [or 36.302(f)] applies, the commission, after notice and hearing in accordance with Chapter 2001, Government Code, shall take action the commission considers appropriate, including: (1) issuing an order requiring the district to take certain actions or to refrain from taking certain actions; (2) dissolving the board in accordance with Sections 36.305 and 36.307 and calling an election for the purpose of electing a new board; (3) requesting the attorney general to bring suit for the appointment of a receiver to collect the assets and carry on the business of the groundwater conservation district; or (4) dissolving the district in accordance with Sections 36.304, 36.305, and 36.308. SECTION 2.49. Subsection (a), Section 36.304, Water Code, is amended to read as follows: (a) The commission may dissolve a district that[: [(1) is not operational, as determined under Section 36.302; and [(2)] has no outstanding bonded indebtedness. SECTION 2.50. Subsection (b), Section 212.0101, Local Government Code, is amended to read as follows: (b) The Texas [Natural Resource Conservation] Commission on Environmental Quality by rule shall establish the appropriate form and content of a certification to be attached to a plat application under this section. SECTION 2.51. Subsection (b), Section 232.0032, Local Government Code, is amended to read as follows: (b) The Texas [Natural Resource Conservation] Commission on Environmental Quality by rule shall establish the appropriate form and content of a certification to be attached to a plat application under this section. SECTION 2.52. Section 9.017, Water Code, is repealed. SECTION 2.53. (a) The executive administrator of the Texas Water Development Board shall conduct a study to determine the effects, if any, of take-or-pay contracts on efforts to conserve water. (b) Not later than January 1, 2007, the executive administrator of the Texas Water Development Board shall submit a report to the legislature that includes: (1) a summary of the findings made during the course of the study; and (2) recommendations for legislative action based on those findings. (c) This section expires September 1, 2007. SECTION 2.54. Subsection (b), Section 11.173, Water Code, as amended by this article, applies to a cancellation proceeding that is pending on the effective date of this Act or is initiated on or after the effective date of this Act. SECTION 2.55. Subsection (b), Section 15.102, Water Code, as amended by this article, and Subsection (b-2), Section 17.125, Water Code, as added by this article, apply only to an application for financial assistance filed with the Texas Water Development Board on or after the effective date of this Act. An application for financial assistance filed before the effective date of this Act is governed by the law in effect on the date the application was filed, and the former law is continued in effect for that purpose. SECTION 2.56. (a) Not later than December 1, 2005: (1) the Texas Water Development Board shall adopt rules under Subchapter L, Chapter 16, Water Code, as added by this article; and (2) the executive administrator of the Texas Water Development Board shall be prepared to accept applications submitted under Section 16.453, Water Code, as added by this article. (b) A person is not required to be registered under Section 16.452, Water Code, as added by this article, until March 1, 2006. (c) Section 16.455, Water Code, as added by this article, applies only to a sale, lease, or agreement entered into on or after March 1, 2006. SECTION 2.57. Not later than the 90th day after the effective date of this Act, a groundwater conservation district shall amend to bring into compliance with Section 36.002, Water Code, as amended by this article, any rule adopted before the effective date of this Act. SECTION 2.58. (a) The executive administrator of the Texas Water Development Board shall appoint the initial appointed representatives for each groundwater management area council as provided by Section 36.108, Water Code, as amended by this article, as soon as practicable on or after the effective date of this Act. The terms of the initial representatives for each groundwater management area council expire August 31, 2007. (b) The Texas Water Development Board shall convene the groundwater management area councils required under Section 36.108, Water Code, as amended by this article, not later than September 1, 2006. (c) The Texas Commission on Environmental Quality and the Texas Water Development Board shall adopt any rules, models, and forms necessary for the implementation of the groundwater management area planning functions required by this article not later than September 1, 2006. SECTION 2.59. (a) Except in any district expanded by Section 20, Chapter 200, Acts of the 78th Legislature, Regular Session, 2003, the changes in law made under Subsections (h) and (i), Section 36.113, and Subsection (b), Section 36.116, Water Code, as amended by this article, do not apply to: (1) an application or permit issued on the basis of an application filed before March 1, 2005; (2) a renewal or amendment of a permit issued on the basis of an application filed before March 1, 2005; (3) a permit issued under rules in effect as of March 1, 2005; or (4) a renewal or amendment to a permit issued under rules in effect as of March 1, 2005. (b) Subsection (a) of this section does not limit the ability of a groundwater conservation district to adopt procedural rules governing notice, hearing, rulemaking, or permit processing in accordance with any law finally passed by the 79th Legislature, Regular Session, 2005, that governs notice, hearing, rulemaking, or permit processing procedures of groundwater conservation districts, if the procedural rules adopted do not conflict with a substantive district rule that existed on March 1, 2005.
ARTICLE 3. FINANCING OF WATER PROJECTS
SECTION 3.01. Chapter 13, Water Code, is amended by adding Subchapter O to read as follows:
SUBCHAPTER O. WATER CONSERVATION AND DEVELOPMENT FEE
Sec. 13.551. DEFINITIONS. In this subchapter: (1) "Agricultural use" has the meaning assigned by Section 11.002. (2) "Customer" means a person who is provided potable or nonpotable water for a charge or as an incident of tenancy. In the context of a landlord-tenant relationship, the term means the landlord unless the tenant is billed directly by the provider. (3) "Provider" means a person who provides for compensation potable or nonpotable water. Sec. 13.552. LIMITATION ON APPLICABILITY. This subchapter does not apply to: (1) the wholesale provision of water; or (2) the provision of water for agricultural use. Sec. 13.553. WATER CONSERVATION AND DEVELOPMENT FEE. (a) Each provider shall collect from each customer a water conservation and development fee as provided by this subchapter. (b) The provider shall collect the fee on behalf of this state. (c) The fee is not considered to be revenue of the provider, with the exception of the portion of the fee retained under Section 13.556(b). Sec. 13.554. POLICY REGARDING FINANCING OF WATER INFRASTRUCTURE, CREATION OF LEGISLATIVE OVERSIGHT COMMITTEE. (a) In recognition of the importance of providing for the state's future water supply and infrastructure needs, the legislature makes the following findings: (1) Senate Bill No. 1, 75th Legislature, Regular Session, 1997, made significant advances in planning for the state's future water supply needs through the state and regional water supply planning processes and no comprehensive coordinated investment has been made in water resource needs identified in Senate Bill No. 1; (2) Senate Bill No. 2, 77th Legislature, Regular Session, 2001, provided appropriate mechanism to fund future water supply projects identified in the State Water Plan through the water infrastructure fund; (3) Senate Bill No. 3, 79th Legislature, Regular Session, 2005: (A) provides for ensuring the state's environmental flow needs through an adaptive management process; (B) provides for determination of actual costing of projects in recognition of the expedited regional water planning process; (C) provides a framework for consistent groundwater management over groundwater management areas; (D) drives decision-making, sound science, and consistent management at the state, regional, and local levels; and (E) implements water transaction reporting requirements; (4) the state's population is projected to double in the next 35 years; and (5) many areas of the state have lacked the resources to make investments since the enactment of Senate Bill No. 1 and Senate Bill No. 2 to address their water supply needs. (b) To establish a fair and reasonable funding mechanism, a legislative oversight committee is created to: (1) ensure funding is available to provide for adequate water supply for the future of Texas; (2) provide a revenue-generating mechanism that is derived from data evaluation and analysis of equitable fee structures and reporting mechanisms; (3) evaluate public policy implications for assessing the water conservation and development fee; and (4) provide a source of dedicated funds for water infrastructure needs for the next 50 years. (c) In recognition of the importance of providing for the state's water infrastructure, and of the need to structure a fair and reasonable funding mechanism that will fund such infrastructure, there is created the Legislative Oversight Committee on Water Financing. (d) The oversight committee is composed of 10 members of the legislature as follows: (1) five members of the senate appointed by the lieutenant governor, one of whom shall be the chair of the Senate Natural Resources Committee; and (2) five members of the house of representatives appointed by the speaker of the house of representatives, one of whom shall be the chair of the House Natural Resources Committee. (e) The position of presiding officer of the oversight committee shall alternate annually between the chair of the Senate Natural Resources Committee and the chair of the House Natural Resources Committee. The chair of the Senate Natural Resources Committee shall serve as the first presiding officer, with a term beginning on September 1, 2005. (f) Other than the chairs of the senate and house natural resources committees, members serve at the will of the person who appointed each member. (g) The board shall provide staff support for the oversight committee. The executive administrator of the board shall compile and analyze for the committee's use information received by the board regarding water use throughout the state, water infrastructure needs throughout the state, the adequacy of current funding for such infrastructure needs, and gaps in the ability to fund such infrastructure. (h) The oversight committee shall conduct public hearings and study public policy implications for assessing the water conservation and development fee as a source of dedicated funds for water infrastructure development. Specifically, the oversight committee shall determine how to establish and implement the fee described in this subchapter, including recommendations on: (1) constitutional dedication of revenues in the water infrastructure fund; (2) the amount of the fee and the impact of the fee on all water users; (3) the uses upon which the fee shall be assessed; (4) any appropriate reservations of the fee; and (5) any proposed changes to this subchapter. (i) The oversight committee may appoint technical subcommittees, which may include persons other than the members of the oversight committee. The oversight committee shall appoint a technical advisory subcommittee composed of financial advisors and bond counsel. (j) The oversight committee shall provide a report on or before August 31, 2006, to the governor, lieutenant governor, and speaker of the house of representatives addressing the topics included in Subsection (h) and recommending any needed legislation. (k) The fee established by this subchapter shall not be assessed until the legislature has established the appropriate rate and conditions of its imposition. (l) The oversight committee shall adopt rules to administer this section. (m) The oversight committee is abolished and this section expires September 1, 2009. Sec. 13.555. EXEMPTIONS. (a) The first 5,000 gallons of water sold to a customer each month is exempt from the fee if the customer is a resident of a single-family dwelling or multifamily dwelling unit. (b) The first 5,000 gallons of water sold for each multifamily dwelling unit to a customer each month is exempt from the fee if the customer is the owner or manager of a multifamily dwelling complex. (c) The exemptions provided by Subsections (a) and (b) apply without regard to: (1) whether the provision of water is bundled with another service; or (2) the billing period used by the provider. (d) An entity described by Section 151.309 or 151.310, Tax Code, is exempt from the fee imposed by this subchapter. Sec. 13.556. PAYMENT OF FEE. (a) On or before the fifth day of the month following the end of each calendar month, each provider shall send to the comptroller the amount of the fee the provider collected under this subchapter during the preceding calendar month. (b) A provider that makes timely payment of the fee imposed under this subchapter is entitled to retain an amount equal to one-half of one percent of the amount of the fee collected as reimbursement for the costs of collecting the fee for that month. Sec. 13.557. REPORTS. On or before the fifth day of the month following the end of each calendar month, each provider shall file with the comptroller a report made under guidelines established by the comptroller stating: (1) the number of gallons of water sold during the preceding calendar month; (2) the number of gallons of water sold during the preceding calendar month on which the fee was imposed; and (3) any other information required by the comptroller. Sec. 13.558. RECORDS. A provider shall keep a complete record under guidelines established by the comptroller of: (1) the number of gallons of water sold during the preceding calendar month; (2) the number of gallons of water sold during the preceding calendar month on which the fee was imposed; and (3) any other information required by the comptroller. Sec. 13.559. DEDICATION OF REVENUE. The revenue from the fee imposed by this subchapter is dedicated to and shall be deposited to the credit of the water infrastructure fund and may be used only as provided by Subchapter Q, Chapter 15. Should bonds or other obligations be outstanding that are secured by or payable from balances initially deposited to the credit of the water infrastructure fund, including the dedication of the fees as provided by this section, any balance in the water infrastructure fund and the dedication of the fees provided by this section may not be reduced, rescinded, or repealed unless the legislature by law dedicates to the water infrastructure fund a substitute or different source that is projected by the comptroller to produce an amount no less than the amount produced by the source being reduced, rescinded, or repealed. Sec. 13.560. AUDITS AND ENFORCEMENT. (a) The comptroller may audit the records of any provider required to collect and remit to the comptroller the fee imposed by this subchapter to ensure that the fee is being properly collected and remitted to the comptroller and as otherwise necessary to ensure compliance with this subchapter. (b) The comptroller shall take appropriate action against a provider who does not collect and remit to the comptroller the fee as required by this subchapter. SECTION 3.02. Subsection (a), Section 15.407, Water Code, is amended to read as follows: (a) In this section, "economically distressed area" and "political subdivision" have the meanings assigned by Section 17.941 [16.341 of this code]. SECTION 3.03. Section 15.971, Water Code, is amended by adding Subdivision (6) to read as follows: (6) "Provider" means a person who provides for compensation potable or nonpotable water and who collects and remits fees pursuant to Subchapter O, Chapter 13. SECTION 3.04. Section 15.973, Water Code, is amended to read as follows: Sec. 15.973. WATER INFRASTRUCTURE FUND. (a) The water infrastructure fund is a special fund in the state treasury to be administered by the board under this subchapter and rules adopted by the board under this subchapter. Money in the fund may be used to pay for the implementation of water projects recommended through the state and regional water planning processes under Sections 16.051 and 16.053 and for other uses authorized by this subchapter. (b) The fund consists of: (1) appropriations from the legislature; (2) any other fees or sources of revenue that the legislature may dedicate for deposit to the fund; (3) repayments of loans made from the fund; (4) interest earned on money credited to the fund; (5) depository interest allocable to the fund; (6) money from gifts, grants, or donations to the fund; (7) money from revenue bonds or other sources designated by the board; [and] (8) proceeds from the sale of political subdivision bonds or obligations held in the fund and not otherwise pledged to the discharge, repayment, or redemption of revenue bonds or other bonds, the proceeds of which were placed in the fund; (9) the proceeds from the collection of the fee imposed under Subchapter O, Chapter 13; (10) money paid to the board under Section 16.402; and (11) fees and penalties collected under Subchapter L, Chapter 16. SECTION 3.05. Section 15.974, Water Code, is amended by amending Subsection (a) and adding Subsections (d) and (e) to read as follows: (a) The board may use the fund: (1) to make loans to political subdivisions at or below market interest rates for projects; (2) to make grants, low-interest loans, or zero interest loans to political subdivisions for projects to serve areas outside metropolitan statistical areas in order to ensure that the projects are implemented, for conjunctive use projects, or for projects to serve economically distressed areas; (3) to make loans at or below market interest rates for planning and design costs, permitting costs, and other costs associated with state or federal regulatory activities with respect to a project; (4) as a source of revenue or security for the payment of principal and interest on bonds issued by the board if the proceeds of the sale of the bonds will be deposited in the fund; [and] (5) to pay the necessary and reasonable expenses of the board in administering the fund; and (6) to make transfers: (A) to the state participation account and the economically distressed areas program account of the Texas Water Development Fund II authorized by Section 49-d-8, Article III, Texas Constitution, and Subchapter L, Chapter 17, of this code, to be used for the purposes authorized by those provisions, provided that such transfers shall not be used to make debt service or other payments on obligations the proceeds of which are placed into such accounts before September 1, 2005; (B) to the agricultural water conservation fund authorized by Section 50-d, Article III, Texas Constitution, and Subchapter J, Chapter 17, of this code, to be used for the purposes authorized by those provisions, provided that such transfers shall not be used to make debt service or other payments on obligations the proceeds of which are placed into such fund before September 1, 2005; (C) to the community/noncommunity water system financial assistance account of the safe drinking water revolving fund under Section 15.6041(b)(1) to be used for purposes authorized from that account; (D) to the water assistance fund authorized by Subchapter B; (E) from revenues collected under Subchapter O, Chapter 13, to the rural water assistance fund authorized by Subchapter R for use pursuant to Section 15.994(c); and (F) from not to exceed eight percent of the revenues collected under Subchapter O, Chapter 13, or from revenue collected under Subchapter L, Chapter 16, during a fiscal biennium to the general revenue fund in amounts not to exceed appropriations of general revenue for operations of the board and for operations of the commission related to the administration of programs relating to water resources and water quality, including the development and implementation of the statewide water conservation public awareness program required by Section 16.401. (d) Twenty-five percent of the fees collected by the comptroller from providers under Subchapter O, Chapter 13, shall be deposited into an account in the fund to be designated as the local contribution account and shall be reserved for each provider proportionate to the fees such provider has remitted to the comptroller under Subchapter O, Chapter 13. Interest earned on money in the local contribution account shall be credited to the account. Within five years of the date of deposit of money into the local contribution account, a provider may apply to the board for designation of the proportion of the fees that it has contributed to the account plus interest earned thereon for uses pursuant to Subsection (e) and for fees that are projected to be contributed to the local contribution account by that provider over the next five years. Money in the local contribution account for which an application is not filed within five years of their deposit shall be transferred to the fund, along with interest earned on such money. Providers may pool their reservations to be used for a regional project and may designate one person to apply for financial assistance for such regional project. (e) The board shall use money in the local contribution account pursuant to an application filed by a provider under Subsection (d) for the purposes listed in this subsection. The board shall not unduly withhold funding to providers and projects which meet eligibility requirements for such assistance, and shall create expedited application procedures and methods to disburse funds from the local contribution account. The local contribution account may be used for the following purposes: (1) to provide assistance directly from the account to political subdivisions for purposes specified in Subsections (a)(1)-(3), provided that grants, low-interest loans, and zero-interest loans under Subsection (a)(2) may be made without regard to whether projects serve areas outside metropolitan statistical areas; (2) to transfer to the state participation account, economically distressed areas program account, agricultural water conservation fund, water assistance fund, or safe drinking water revolving fund as authorized by Subsection (a)(6) for subsequent financial assistance to such provider; (3) to provide money for participation in the statewide water conservation public awareness program under Section 16.401 or for a political subdivision's water conservation public awareness program; (4) to reimburse the provider for the capital cost incurred in, or principal or interest paid on obligations used to finance, the construction of projects: (A) which were identified as a water management strategy in the approved regional water plan adopted in 2001 or any amendments to such regional water plan approved by the board; and (B) the costs of which would be eligible for financial assistance under this section if an application were made after September 1, 2005; and (5) to replace aging water infrastructure to ensure efficient delivery and conservation of water. SECTION 3.06. Section 17.172, Water Code, is amended to read as follows: Sec. 17.172. APPLICABILITY. This subchapter applies to financial assistance made available from the water supply account, the water quality enhancement account, the flood control account, [and] the economically distressed areas account, and the economically distressed areas program account under Subchapters D, F, G, [and] K, and K-1 of this chapter. SECTION 3.07. Chapter 17, Water Code, is amended by adding Subchapter K-1 to read as follows:
SUBCHAPTER K-1. STATEWIDE ASSISTANCE TO ECONOMICALLY DISTRESSED
AREAS FOR WATER SUPPLY AND SEWER SERVICE PROJECTS
Sec. 17.941. DEFINITIONS. In this subchapter: (1) "Economically distressed area" means an area in this state in which: (A) water supply or sewer services are inadequate to meet minimal needs of residential users as defined by board rule; (B) financial resources are inadequate to provide water supply and sewer services that will satisfy those needs; and (C) an established residential subdivision was located on June 1, 2005, as determined by the board. (2) "Financial assistance" means the funds provided by the board to political subdivisions for water supply or sewer services under this subchapter. (3) "Political subdivision" means a county, a municipality, a nonprofit water supply corporation created and operating under Chapter 67, or a district or authority created under Section 52, Article III, or Section 59, Article XVI, Texas Constitution. (4) "Sewer services" and "sewer facilities" mean treatment works or individual, on-site, or cluster treatment systems such as septic tanks and include drainage facilities and other improvements for proper functioning of the sewer services and other facilities. Sec. 17.942. FINANCIAL ASSISTANCE. The economically distressed areas program account may be used by the board to provide financial assistance to political subdivisions for the construction, acquisition, or improvement of water supply and sewer services, including providing money from the account for the state's participation in federal programs that provide assistance to political subdivisions. Money from the proceeds of bonds issued under the authority of Sections 49-d-7(b) or 49-d-8, Article III, Texas Constitution, may not be used to provide financial assistance under this subchapter. Sec. 17.943. APPLICATION FOR FINANCIAL ASSISTANCE. (a) A political subdivision may apply to the board for financial assistance under this subchapter by submitting an application together with a plan for providing water supply or sewer services to an economically distressed area. (b) The application and plan must include: (1) the name of the political subdivision and its principal officers; (2) a citation of the law under which the political subdivision operates and was created; (3) a description of the existing water supply and sewer facilities located in the area to be served by the proposed project and include with the description a statement prepared and certified by an engineer registered to practice in this state that the facilities do not meet minimum state standards; (4) information identifying the median household income for the area to be served by the proposed project; (5) a project plan prepared and certified by an engineer registered to practice in this state that: (A) describes the proposed planning, design, and construction activities necessary for providing water supply and sewer services that meet minimum state standards; and (B) identifies the households to whom the services will be provided; (6) a budget that estimates the total cost of providing water supply and sewer services to the economically distressed area and a proposed schedule and method for repayment of financial assistance consistent with board rules and guidelines; and (7) the total amount of assistance requested from the economically distressed areas program account. (c) A program of water conservation for the more effective use of water is required for approval of an application for financial assistance under this section in the same manner as such a program is required for approval of an application for financial assistance under Section 17.125. (d) Before considering the application, the board may require the applicant to: (1) participate with the board in reviewing the applicant's managerial, financial, or technical capabilities to operate the system for which assistance is being requested; (2) provide a written determination by the commission of the applicant's managerial, financial, and technical capabilities to operate the system for which assistance is being requested; (3) request that the comptroller perform a financial management review of the applicant's current operations and, if the comptroller is available to perform the review, provide the board with the results of the review; or (4) provide any other information required by the board or the executive administrator. Sec. 17.944. CONSIDERATIONS IN PASSING ON APPLICATION. (a) In passing on an application for financial assistance, the board shall consider: (1) the need of the economically distressed area to be served by the water supply or sewer services in relation to the need of other political subdivisions requiring financial assistance under this subchapter and the relative costs and benefits of all applications; (2) the availability of revenue or alternative financial assistance for the area served by the project, from all sources, for the payment of the cost of the proposed project; (3) the financing of the proposed water supply or sewer project, including consideration of: (A) the budget and repayment schedule submitted under Section 17.943(b)(6); (B) other items included in the application relating to financing; and (C) other financial information and data available to the board; and (4) the feasibility of achieving cost savings by providing a regional facility for water supply or wastewater service and the feasibility of financing the project by using money from the economically distressed areas program account or any other available financial assistance. (b) At the time an application for financial assistance is considered, the board also must find that the area to be served by a proposed project has a median household income of not more than 75 percent of the median state household income for the most recent year for which statistics are available. Sec. 17.945. APPROVAL OR DISAPPROVAL OF APPLICATION. After considering the matters described by Section 17.944, the board by resolution shall: (1) approve the plan and application as submitted; (2) approve the plan and application subject to the requirements identified by the board or commission for the applicant to obtain the managerial, financial, and technical capabilities to operate the system and any other requirements, including training under Subchapter M, the board considers appropriate; (3) deny the application and identify the requirements or remedial steps the applicant must complete before the applicant may be reconsidered for financial assistance; (4) if the board finds that the applicant will be unable to obtain the managerial, financial, or technical capabilities to build and operate a system, deny the application and issue a determination that a service provider other than the applicant is necessary or appropriate to undertake the proposed project; or (5) deny the application. Sec. 17.946. FINDINGS REGARDING PERMITS. (a) The board may not release money for the construction of that portion of a project that proposes surface water or groundwater development until the executive administrator makes a written finding: (1) that an applicant proposing surface water development has the necessary water right authorizing it to appropriate and use the water that the water supply project will provide; or (2) that an applicant proposing groundwater development has the right to use water that the water supply project will provide. (b) The board may release money for the costs of planning, engineering, architectural, legal, title, fiscal, or economic investigation, studies, surveys, or designs before making the finding required under Subsection (a) if the executive administrator determines that a reasonable expectation exists that the finding will be made before the release of funds for construction. (c) If an applicant includes a proposal for treatment works, the board may not deliver money for the treatment works until the applicant has received a permit for construction and operation of the treatment works and approval of the plans and specifications from the commission or unless such a permit is not required by the commission. Sec. 17.947. METHOD OF FINANCIAL ASSISTANCE. (a) The board may provide financial assistance to political subdivisions under this subchapter by using money in the economically distressed areas program account to purchase political subdivision bonds. (b) The board may make financial assistance available to political subdivisions in any other manner that it considers feasible, including: (1) contracts or agreements with a political subdivision for acceptance of financial assistance that establish any repayment based on the political subdivision's ability to repay the assistance and that establish requirements for acceptance of the assistance; or (2) contracts or agreements for providing financial assistance in any federal or federally assisted project or program. Sec. 17.948. TERMS OF FINANCIAL ASSISTANCE. (a) The board may use money in the economically distressed areas program account to provide financial assistance under this subchapter to a political subdivision to be repaid in the form, manner, and time provided by board rules and in the agreement between the board and the political subdivision, taking into consideration the information provided by Section 17.943. (b) In providing financial assistance to an applicant under this subchapter, the board may not provide to the applicant financial assistance for which repayment is not required in an amount that exceeds 50 percent of the total amount of the financial assistance plus interest on any amount that must be repaid, unless the Department of State Health Services issues a finding that a nuisance dangerous to the public health and safety exists resulting from water supply and sanitation problems in the area to be served by the proposed project. The board and the applicant shall provide to the Department of State Health Services information necessary to make a determination, and the board and the Department of State Health Services may enter into memoranda of understanding necessary to carry out this subsection. (c) The total amount of financial assistance provided by the board to political subdivisions under this subchapter from state-issued bonds for which repayment is not required may not exceed at any time 90 percent of the total principal amount of issued and unissued bonds authorized for purposes of this subchapter. (d) In determining the amount and form of financial assistance and the amount and form of repayment, if any, the board shall consider: (1) rates, fees, and charges that the average customer to be served by the project will be able to pay based on a comparison of what other families of similar income who are similarly situated pay for comparable services; (2) sources of funding available to the political subdivision from federal and private money and from other state money; (3) any local money of the political subdivision to be served by the project if the economically distressed area to be served by the board's financial assistance is within the boundary of the political subdivision; and (4) the just, fair, and reasonable charges for water and wastewater service as provided by this code. (e) In making its determination under Subsection (d)(1), the board may consider any study, survey, data, criteria, or standard developed or prepared by any federal, state, or local agency, private foundation, banking or financial institution, or other reliable source of statistical or financial data or information. SECTION 3.08. Subsection (c), Section 17.958, Water Code, is amended to read as follows: (c) Money on deposit in the economically distressed areas program account may be used by the board for purposes provided by Subchapter K or K-1 in the manner that the board determines necessary for the administration of the fund. SECTION 3.09. Subsection (i), Section 15.407 and Subsection (b), Section 15.974, Water Code, are repealed. SECTION 3.10. Section 3.01 of this Act shall not take effect unless and until a future legislature adopts amendments to Subchapter O, Chapter 13, Water Code, to establish a rate for the water conservation and development fee; provided, however, that the provisions of this Act regarding creation and operation of the Legislative Oversight Committee on Water Financing in Section 13.554, Water Code, shall be effective on the effective date of this Act.
ARTICLE 4. SPECIAL DISTRICT CREATION
SECTION 4.01. Subtitle H, Title 6, Special District Local Laws Code, is amended by adding Chapter 8812 to read as follows:
CHAPTER 8812. VICTORIA COUNTY GROUNDWATER
CONSERVATION DISTRICT
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 8812.001. DEFINITIONS. In this chapter: (1) "Board" means the board of directors of the district. (2) "Director" means a member of the board. (3) "District" means the Victoria County Groundwater Conservation District. Sec. 8812.002. NATURE OF DISTRICT. The district is a groundwater conservation district in Victoria County created under and essential to accomplish the purposes of Section 59, Article XVI, Texas Constitution. Sec. 8812.003. CONFIRMATION ELECTION REQUIRED. If the creation of the district is not confirmed at a confirmation election held before September 1, 2010: (1) the district is dissolved on September 1, 2010, except that: (A) any debts incurred shall be paid; (B) any assets that remain after the payment of debts shall be transferred to Victoria County; and (C) the organization of the district shall be maintained until all debts are paid and remaining assets are transferred; and (2) this chapter expires on September 1, 2013. Sec. 8812.004. INITIAL DISTRICT TERRITORY. The initial boundaries of the district are coextensive with the boundaries of Victoria County, Texas. Sec. 8812.005. APPLICABILITY OF OTHER GROUNDWATER CONSERVATION DISTRICT LAW. Except as otherwise provided by this chapter, Chapter 36, Water Code, applies to the district.
[Sections 8812.006-8812.020 reserved for expansion]
SUBCHAPTER A-1. TEMPORARY PROVISIONS
Sec. 8812.021. APPOINTMENT OF TEMPORARY DIRECTORS. (a) Not later than the 10th day after September 1, 2005, the Victoria County Commissioners Court shall appoint five temporary directors as follows: (1) one temporary director shall be appointed from each of the four commissioner precincts in the county to represent the precinct in which the temporary director resides; and (2) one temporary director who resides in the district shall be appointed to represent the district at large. (b) If there is a vacancy on the temporary board of directors of the district, the remaining temporary directors shall select a qualified person to fill the vacancy. If, at any time, there are fewer than three qualified temporary directors, the Victoria County Commissioners Court shall appoint the necessary number of persons to fill all vacancies on the board. (c) To be eligible to serve as a temporary director, a person must be a resident of Victoria County and at least 18 years of age. (d) Temporary directors serve until the earlier of: (1) the time the temporary directors become initial directors as provided by Section 8812.024; or (2) the date this chapter expires under Section 8812.003. Sec. 8812.022. ORGANIZATIONAL MEETING OF TEMPORARY DIRECTORS. As soon as practicable after all the temporary directors have qualified under Section 36.055, Water Code, a majority of the temporary directors shall convene the organizational meeting of the district at a location within the district agreeable to a majority of the directors. If an agreement on location cannot be reached, the organizational meeting shall be at the Victoria County Courthouse. At the meeting, the temporary directors shall elect a chair, vice chair, and secretary from among the temporary directors. Sec. 8812.023. CONFIRMATION ELECTION. (a) Not later than the 30th day after September 1, 2005, the temporary board shall order an election to be held not later than the 120th day after September 1, 2005, to confirm the creation of the district. (b) Section 41.001(a), Election Code, does not apply to a confirmation election held as provided by this section. (c) The ballot for the election must be printed to permit voting for or against the following proposition: "The creation of the Victoria County Groundwater Conservation District and the imposition of an ad valorem tax in the district at a rate not to exceed two cents for each $100 of assessed valuation." (d) The temporary board may include any other proposition on the ballot that it considers necessary. (e) Except as provided by this section, a confirmation election must be conducted as provided by Section 36.017(b)-(i), Water Code, and the Election Code. The provision of Section 36.017(d), Water Code, relating to the election of permanent directors does not apply to a confirmation election under this section. (f) If the creation of the district is not confirmed at a confirmation election held under this section, the board may hold another confirmation election not sooner than the first anniversary of the most recent confirmation election. Sec. 8812.024. INITIAL DIRECTORS. (a) If creation of the district is confirmed at an election held under Section 8812.023, the temporary directors of the district become the initial directors of the district and serve on the board of directors until permanent directors are elected under Section 8812.025. (b) The directors for county commissioner precincts one and three serve until the first regularly scheduled election of directors under Section 8812.025. The directors for precincts two and four and the director at large serve until the second regularly scheduled election of directors under Section 8812.025. Sec. 8812.025. INITIAL ELECTION OF PERMANENT DIRECTORS. On the uniform election date prescribed by Section 41.001, Election Code, in November of the first even-numbered year after the year in which the creation of the district is confirmed at an election held under Section 8812.023, an election shall be held in the district for the election of two directors to replace the initial directors who, under Section 8812.024(b), serve until that election. Sec. 8812.026. EXPIRATION OF SUBCHAPTER. This subchapter expires September 1, 2013.
[Sections 8812.027-8812.050 reserved for expansion]
SUBCHAPTER B. BOARD OF DIRECTORS
Sec. 8812.051. DIRECTORS; TERMS. (a) The district is governed by a board of five directors. (b) Directors serve staggered four-year terms. Sec. 8812.052. METHOD OF ELECTING DIRECTORS: COMMISSIONERS PRECINCTS. (a) The directors of the district shall be elected according to the commissioners precinct method as provided by this section. (b) One director shall be elected by the voters of the entire district, and one director shall be elected from each county commissioners precinct by the voters of that precinct. (c) Except as provided by Subsection (e), to be eligible to be a candidate for or to serve as director at large, a person must be at least 18 years of age and a resident of the district. To be a candidate for or to serve as director from a county commissioners precinct, a person must be at least 18 years of age and a resident of that precinct. (d) A person shall indicate on the application for a place on the ballot: (1) the precinct that the person seeks to represent; or (2) that the person seeks to represent the district at large. (e) When the boundaries of the county commissioners precincts are redrawn after each federal decennial census to reflect population changes, a director in office on the effective date of the change, or a director elected or appointed before the effective date of the change whose term of office begins on or after the effective date of the change, shall serve in the precinct to which elected or appointed even though the change in boundaries places the person's residence outside the precinct for which the person was elected or appointed. Sec. 8812.053. ELECTION DATE. The district shall hold an election to elect the appropriate number of directors on the uniform election date prescribed by Section 41.001, Election Code, in November of each even-numbered year. Sec. 8812.054. VACANCIES. A vacancy on the board shall be filled by appointment of the board until the next regularly scheduled directors' election. The person appointed to fill the vacancy shall serve only for the remainder of the unexpired term.
[Sections 8812.055–8812.100 reserved for expansion]
SUBCHAPTER C. POWERS AND DUTIES
Sec. 8812.101. PROHIBITION ON DISTRICT USE OF EMINENT DOMAIN. The district may not exercise the power of eminent domain.
[Sections 8812.102-8812.150 reserved for expansion]
SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS
Sec. 8812.151. LIMITATION ON TAXES. The district may not impose ad valorem taxes at a rate that exceeds two cents on each $100 of assessed valuation of taxable property in the district. SECTION 4.02. Chapter 1332, Acts of the 77th Legislature, Regular Session, 2001, is repealed. SECTION 4.03. (a) The legal notice of the intention to introduce this article, setting forth the general substance of this article, has been published as provided by law, and the notice and a copy of the substance of this article have been furnished to all persons, agencies, officials, or entities to which they are required to be furnished under Section 59, Article XVI, Texas Constitution, and Chapter 313, Government Code. (b) The governor has submitted the notice and substance of this article to the Texas Commission on Environmental Quality. (c) The Texas Commission on Environmental Quality has filed its recommendations relating to the substance of this article with the governor, lieutenant governor, and speaker of the house of representatives within the required time. (d) All requirements of the constitution and laws of this state and the rules and procedures of the legislature with respect to the notice, introduction, and passage of this article are fulfilled and accomplished.
ARTICLE 5. EDWARDS AQUIFER AUTHORITY
SECTION 5.01. Subsection (f), Section 1.11, Chapter 626, Acts of the 73rd Legislature, Regular Session, 1993, is amended to read as follows: (f) The authority may own, finance, design, [contract with a person who uses water from the aquifer for the authority or that person to] construct, operate, or [own, finance, and] maintain recharge [water supply] facilities or contract with a person who uses water from the aquifer for the authority or that person to own, finance, design, construct, operate or maintain recharge facilities. [Management fees or special fees may not be used for purchasing or operating these facilities.] For the purpose of this subsection, "recharge [water supply] facility" means [includes] a dam, reservoir, [treatment facility, transmission facility,] or other method of recharge project and associated facilities, structures, or works. SECTION 5.02. Subsections (a), (c), (f), and (h), Section 1.14, Chapter 626, Acts of the 73rd Legislature, Regular Session, 1993, are amended to read as follows: (a) Authorizations to withdraw water from the aquifer and all authorizations and rights to make a withdrawal under this Act shall be limited in accordance with this section to: (1) protect the water quality of the aquifer; (2) protect the water quality of the surface streams to which the aquifer provides springflow; (3) achieve water conservation; (4) maximize the beneficial use of water available for withdrawal from the aquifer; (5) recognize the hydro-geologic connection and interaction between surface and groundwater; (6) protect aquatic and wildlife habitat; (7) [(6)] protect species that are designated as threatened or endangered under applicable federal or state law; and (8) [(7)] provide for instream uses, bays, and estuaries. (c) Except as provided by Subsections [(d),] (f)[,] and (h) of this section [and Section 1.26 of this article,] for the period beginning January 1, 2005 [2008], the amount of permitted withdrawals from the aquifer may not exceed the sum of all regular permits issued or for which an application has been filed and issuance is pending action by the authority as of January 1, 2005. If annexation occurs, the amount of permitted withdrawals may be adjusted to include permits issued for wells in the annexed area as of January 1, 2005 [400,000 acre-feet of water for each calendar year]. (f) If the level of the aquifer is equal to or greater than 665 [650] feet above mean sea level as measured at well J-17, the authority may authorize withdrawal from the San Antonio pool, on an uninterruptible basis, of permitted amounts. If the level of the aquifer is equal to or greater than 845 feet at well J-27, the authority may authorize withdrawal from the Uvalde pool, on an uninterruptible basis, of permitted amounts. In accordance with Section 1.26 of this article, the [The] authority shall limit the additional withdrawals to ensure that springflows are not affected during critical drought conditions. (h) To accomplish the purposes of this article, [by June 1, 1994,] the authority, through a program, shall implement and enforce water management practices, procedures, and methods to ensure that, not later than December 31, 2012, the continuous minimum springflows of the Comal Springs and the San Marcos Springs are maintained to protect endangered and threatened species to the extent required by federal law and to achieve other purposes provided by Subsection (a) of this section and Section 1.26 of this article. The authority from time to time as appropriate may revise the practices, procedures, and methods. To meet this requirement, the authority shall require: (1) phased reductions in the amount of water that may be used or withdrawn by existing users or categories of other users, including the authority's critical period management plan established under Section 1.26 of this article; or (2) implementation of alternative management practices, procedures, and methods. SECTION 5.03. Subsection (c), Section 1.15, Chapter 626, Acts of the 73rd Legislature, Regular Session, 1993, is amended to read as follows: (c) The authority may issue regular permits, term permits, and emergency permits. Except as provided in Section 1.14(f) and Section 1.26 of this article, regular permits may not be issued on an interruptible basis, and the total withdrawals authorized by all regular permits issued by the authority may not exceed the limitations provided by Section 1.14 of this article. SECTION 5.04. Subsection (b), Section 1.19, Chapter 626, Acts of the 73rd Legislature, Regular Session, 1993, is amended to read as follows: (b) Withdrawal of water under a term permit must be consistent with the authority's critical period management plan established under Section 1.26 of this article. A holder of a term permit may not withdraw water from the San Antonio pool of the aquifer unless the level of the aquifer is higher than 675 [665] feet above sea level, as measured at Well J-17, and the flow at Comal Springs as determined by Section 1.26(c) is greater than 350 cfs. SECTION 5.05. Article 1, Chapter 626, Acts of the 73rd Legislature, Regular Session, 1993, is amended by amending Section 1.26 and adding Section 1.26A to read as follows: Sec. 1.26. CRITICAL PERIOD MANAGEMENT PLAN. (a) After review of the recommendations received, as prescribed in Section 1.26A of this article, the [The] authority shall prepare and coordinate implementation of a [plan for] critical period management plan in a manner consistent with Section 1.14(a) [on or before September 1, 1995]. The mechanisms must: (1) distinguish between discretionary use and nondiscretionary use; (2) require reductions of all discretionary use to the maximum extent feasible; (3) require utility pricing, to the maximum extent feasible, to limit discretionary use by the customers of water utilities; and (4) require reduction of nondiscretionary use by permitted or contractual users, to the extent further reductions are necessary, in the reverse order of the following water use preferences: (A) municipal, domestic, and livestock; (B) industrial and crop irrigation; (C) residential landscape irrigation; (D) recreational and pleasure; and (E) other uses that are authorized by law. (b) Not later than January 1, 2006, the authority shall, by rule, adopt and enforce a critical period management plan with withdrawal reduction percentages at no less than the amounts indicated in Tables 1 and 2 whether according to the index well levels or Comal Springs flow as may be applicable, for a maximum total in critical period Stage IV of 40 percent of the permitted withdrawals under Table 1 and 30 percent under Table 2:
TABLE 1 - CUMULATIVE CRITICAL PERIOD WITHDRAWAL REDUCTION STAGES FOR THE SAN ANTONIO POOL
INDEX WELL J-17 COMAL SPRINGS FLOW CRITICAL WITHDRAWAL LEVEL MSL CFS PERIOD STAG REDUCTION GE PERCENTAGE <665 N/A I 10% <650 N/A II 10% <640 <150 III 10% <630 <100 IV 10%
TABLE 2 - CUMULATIVE CRITICAL PERIOD WITHDRAWAL REDUCTION STAGES FOR THE UVALDE POOL
INDEX WELL J-27 MSL CRITICAL PERIOD WITHDRAWAL FOR UVALDE POOL STAGE REDUCTION PERCENTAGE N/A N/A N/A N/A II N/A <845 III 15% <842 IV 15% (c) The authority shall continuously track the average daily discharge rate measured over each period of five consecutive days at Comal Springs to determine whether a reduction in withdrawals to the Stage III reduction level is required. The authority shall track the average daily discharge rate measured for any five days in a period of 10 consecutive days to determine whether a reduction in withdrawals to the Stage IV reduction level is required. (d) Beginning September 1, 2005, the authority shall not allow the volume of permitted withdrawals to exceed an annualized rate of 340,000 acre-feet, under critical period Stage IV. After January 1, 2012, the authority shall not allow the volume of permitted withdrawals to exceed an annualized rate of 320,000 acre-feet, under critical period Stage IV. After January 1, 2020, the authority shall not allow the volume of permitted withdrawals to exceed an annualized rate of 288,000 acre-feet, under critical period Stage IV. (e) From time to time, the authority by rule may amend the withdrawal reduction criteria of the authority's critical period management plan as set forth in Subsections (b) and (c), after review and consideration of the recommendations from the Environmental Flows Commission, the Edwards Aquifer Area expert science team, and the Edwards Aquifer Area Stakeholders Committee, as prescribed in Section 1.26A of this article. The amended plan must be consistent with Section 1.14(a) of this article. Sec. 1.26A. DEVELOPMENT OF WITHDRAWAL REDUCTION LEVELS AND STAGES FOR CRITICAL PERIOD MANAGEMENT. (a) The Environmental Flows Commission, as established under Section 11.0236, Water Code, shall appoint a 15-member Edwards Aquifer Area Stakeholders Committee not later than January 1, 2006. The composition of the committee will be as follows: (1) five Municipal Edwards Aquifer permit holders; (2) two Irrigation Edwards Aquifer permit holders; (3) three Industrial Edwards Aquifer permit holders; (4) four Downstream Water Rights holders in the Guadalupe River Basin; and (5) one representative of a public interest group related to instream flows in the Guadalupe River Basin and bay and estuary inflows from the Guadalupe River. (b) The Edwards Aquifer Area Stakeholders Committee shall appoint a seven-member Edwards Aquifer Area expert science team not later than April 30, 2006. The expert science team must be composed of technical experts with special expertise regarding the Edwards Aquifer system, spring flows, or the development of withdrawal limitations. Chapter 2110, Government Code, does not apply to the size, composition, or duration of the expert science team. A member of the Texas Environmental Flows science advisory committee established in Section 11.02361, Water Code, shall serve as liaison to the Edwards Aquifer Area expert science team. (c) The expert science team shall develop an analysis of spring discharge rates and aquifer levels as a function of withdrawal levels. Based upon this analysis and the required elements to be considered by the authority in Section 1.14 of this article, the Edwards Aquifer Area expert science team shall, through a collaborative process designed to achieve consensus, create recommendations for withdrawal reduction levels and stages for critical period management and submit them to the Edwards Aquifer Area Stakeholders Committee, the Environmental Flows Commission, and the authority. The initial recommendations must be completed and submitted no later than September 30, 2006. (d) In developing its recommendations, the Edwards Aquifer Area expert science team must consider all reasonably available science, including any Edwards Aquifer specific studies, and the recommendations must be based solely on the best science available. The Edwards Aquifer Area Stakeholders Committee may not change the recommendations of the Edwards Aquifer Area expert science team regarding the withdrawal limitations appropriate to achieve the purposes of Section 1.14 of this article. (e) The Edwards Aquifer Area Stakeholders Committee shall review the withdrawal limitation and critical period management recommendations submitted by the expert science team and shall consider them in conjunction with other factors, including the present and future needs for water for other uses related to water supply planning in the Edwards Aquifer Area and the required elements to be considered by the authority in Section 1.14 of this article. The stakeholders committee shall develop recommendations regarding a critical period management plan and submit its recommendations to the authority and to the Environmental Flows Commission. In developing its recommendations, the stakeholders committee shall operate on a consensus basis to the maximum extent possible. The initial recommendations must be completed and submitted no later than October 31, 2006. (f) The Environmental Flows Commission shall submit to the authority its comments on and recommendations regarding the Edwards Aquifer Area expert science team's recommended withdrawal reduction levels and stages for critical period management needed to maintain target spring discharge and aquifer levels. The withdrawal reduction recommendations shall be based upon a combination of spring discharge rates of the San Marcos and Comal Springs and levels at the J-17 and J-27 wells. (g) The Edwards Aquifer Area expert science team, Edwards Aquifer Area Stakeholder Committee, and the Environmental Flows Commission shall submit recommendations to the authority for use in developing its rules relative to establishing the critical period management plan. (h) Where reasonably practicable, meetings of the Edwards Aquifer Area expert science team and Edwards Aquifer Area Stakeholders Committee must be open to the public. (i) In recognition of the importance of critical period management to adapt to changed conditions or information, after submitting its recommendations regarding withdrawal limitations and strategies to meet the spring flow needs to the authority, the stakeholders committee, with the assistance of the expert science team, shall prepare and submit to the Environmental Flows Commission a work plan. The work plan must: (1) establish a periodic review of the critical period management plan, to occur at least once every five years; (2) prescribe specific monitoring, studies, and activities; and (3) establish a schedule for continuing the validation or refinement of the critical period management plan adopted by the authority, and the strategies to achieve the plan. (j) To assist the flows commission to assess the extent to which the recommendations of the Edwards Aquifer Area expert science team are considered and implemented, the authority shall provide written reports to the flows commission, at intervals determined by the flows commission, that describe: (1) the actions taken in response to each recommendation; and (2) for each recommendation not implemented, the reason it was not implemented. SECTION 5.06. Subsections (b) and (i), Section 1.29, Section 626, Acts of the 73rd Legislature, Regular Session, 1993, are amended to read as follows: (b) The authority shall assess equitable aquifer management fees based on aquifer use under the water management plan to finance its administrative expenses and programs authorized under this article. Each water district governed by Chapter 36 [52], Water Code, that is within the authority's boundaries may contract with the authority to pay expenses of the authority through taxes in lieu of user fees to be paid by water users in the district. The contract must provide that the district will pay an amount equal to the amount that the water users in the district would have paid through user fees. The authority may not collect a total amount of fees and taxes that is more than is reasonably necessary for the administration of the authority. (i) The authority shall provide money as necessary, but not to exceed $75,000, annually adjusted for changes in the consumer price index [five percent of the money collected under Subsection (d) of this section], to finance the South Central Texas Water Advisory Committee's administrative expenses and programs authorized under this article. SECTION 5.07. Subsection (a), Section 1.45, Chapter 626, Acts of the 73rd Legislature, Regular Session, 1993, is amended to read as follows: (a) The authority may own, finance, design, construct, [build or] operate, and maintain recharge dams and associated facilities, structures, or works in the contributing or recharge area of the aquifer if the recharge is made to increase the yield of the aquifer and the recharge project does not impair senior water rights or vested riparian rights. SECTION 5.08. The following sections of Chapter 626, Acts of the 73rd Legislature, Regular Session, 1993, are repealed: (1) Subsections (b) and (d), Section 1.14; (2) Section 1.21; and (3) Subsections (a), (c), (d), and (h), Section 1.29.
ARTICLE 6. EFFECTIVE DATE
SECTION 6.01. Except as otherwise provided by this Act, this Act takes effect September 1, 2005.