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By: Armbrister S.B. No. 3
Substitute the following for S.B. No. 3:
By: Puente C.S.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 market
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, including representatives
of both the manufacturing and refining sectors;
(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. For the Rio Grande below Fort Quitman, any uses
attributable to Mexican water flows must be excluded from
environmental flow regime recommendations.
(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. For the Rio Grande, the basin and bay area
stakeholders committee shall also consider the water accounting
requirements for any international water sharing treaty, minutes,
and agreement applicable to the Rio Grande and the effects on
allocation of water by the Rio Grande watermaster in the middle and
lower Rio Grande. The Rio Grande basin and bay expert science team
may not recommend any environmental flow regime that would result
in a violation of a treaty or court decision. 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), (e-2), and (e-3) 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.
(e-2) Any water right holder making a contribution
described by Subsection (e-1)(3) is entitled to appropriate credit
of such benefits against adjustments of the holder's water right
pursuant to Subsection (e-1)(1).
(e-3) 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 Sections 11.147(e-1) and (e-2).
(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) and the definition and designation of the river
basin by the board under Section 16.051(c);
(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) for a river basin and bay system other than the
middle and lower Rio Grande 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. WATER CONSERVATION AND PLANNING
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 voluntary stewardship of public and private
lands to benefit the water in the state, as defined by Section
26.001.
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 voluntary 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 voluntary land stewardship as a significant
water management tool by providing assistance to landowners to
conduct those activities.
(b) "Land stewardship," as used in this code, is the
voluntary 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 Subdivision (20) to read as follows:
(20) "Best management practices" means those
voluntary efficiency measures developed by the commission and the
board that save a quantifiable amount of water, either directly or
indirectly, and that can be implemented within a specified time
frame.
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 voluntary water and land stewardship to benefit the
water in the state, as defined by Section 26.001.
SECTION 2.05. 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 2.06. 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 developed by the retail public utility
and using appropriate best management practices, as defined by
Section 11.002, or other water conservation strategies. 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 2.07. Section 13.502, Water Code, is amended by
adding Subsections (f) through (i) to read as follows:
(f) Before the executive director may approve a request to
change from submetered billing to allocated billing under
Subsection (e), the property owner or manager must submit
documentation to the commission in support of the request as
provided by Subsection (i). The executive director shall assign
commission staff who are knowledgeable in water billing issues to
review the documentation and make a recommendation to the executive
director concerning whether to approve or disapprove the request.
In reviewing the documentation, the staff shall consider whether
needed repairs or problems are routine in nature or are
extraordinary and constitute good cause for the billing change.
The executive director may not approve the request unless the
property owner or manager demonstrates that all reasonable steps
were taken to ensure the proper installation and maintenance of the
submetering system and that the circumstances reasonably justify
the billing change.
(g) The commission by rule shall require a property owner or
manager requesting a billing change under Subsection (e) to provide
timely notice to affected tenants of the request. The notice must
include information relating to the manner in which a tenant may
comment to the commission on the request.
(h) If the executive director does not approve a request for
a billing change under Subsection (e), the executive director shall
provide to the property owner or manager an explanation of why the
request was disapproved. Disapproval of a request does not
preclude a property owner or manager from submitting subsequent
requests.
(i) A property owner or manager who submits a request for a
billing change under Subsection (e) must submit with the request
any relevant and detailed information necessary to support the
request, including:
(1) if the request is based on equipment failures:
(A) at least one independent itemized bid
indicating the number of submeters that are malfunctioning or that
need to be replaced and the cost of the equipment and labor to
replace the submeters;
(B) copies of any relevant repair or service
invoices during the previous 12 months; and
(C) an explanation of why the equipment failed
before the end of the equipment's expected useful life, if
applicable; and
(2) if the request is based on meter reading or billing
problems:
(A) copies of any resident complaints, any
correspondence with billing companies, and any correspondence from
the commission regarding consumer complaints directly attributable
to billing company problems; and
(B) an affidavit by the property owner or manager
regarding efforts to find alternative service providers that
includes an explanation of why alternative providers could not be
used.
SECTION 2.08. 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, and projects
providing regional water quality enhancement services as defined by
board rule, including regional conveyance systems.
SECTION 2.09. Subsection (h), Section 16.053, Water Code,
is amended by adding Subdivisions (10), (11), (12), and (13) 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 a minor
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 is a
minor amendment, as defined by board rule, that 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 fully 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.
(13) A regional water planning group that amends or
revises a regional water plan under Subdivision (11) or (12) must
submit the amended or revised plan to the board for review and
approval to ensure that the amended or revised plan contains a full
evaluation of the amendment or revision and that the plan as amended
or revised complies with applicable requirements.
SECTION 2.10. Chapter 16, Water Code, is amended by adding
Subchapter K to read as follows:
SUBCHAPTER K. WATER CONSERVATION
Sec. 16.401. STATEWIDE WATER CONSERVATION PUBLIC AWARENESS
PROGRAM. (a) 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.
(b) The executive administrator is required to develop and
implement the program required by Subsection (a) in a state fiscal
biennium only if the legislature appropriates sufficient money in
that biennium specifically for that purpose.
Sec. 16.402. 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 and submission deadlines developed under
Subsection (e).
(d) The board may notify the commission if the board
determines that an entity has violated this section or a rule
adopted under this section. Notwithstanding Section 7.051(b), a
violation of this section or of a rule adopted under this section is
enforceable in the manner provided by Chapter 7 for a violation of a
provision of this code within the commission's jurisdiction or of a
rule adopted by the commission under a provision of this code within
the commission's jurisdiction.
(e) The board and commission jointly shall adopt rules:
(1) identifying the minimum requirements and
submission deadlines for the water conservation plans described by
Subsection (b) and the annual reports required by that subsection;
and
(2) providing for the enforcement of this section and
rules adopted under this section.
SECTION 2.11. 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 2.12. 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
voluntary stewardship of public and private lands to benefit the
water in the state; and to require the use of all reasonable methods
to implement this policy.
SECTION 2.13. Subchapter A, Chapter 2165, Government Code,
is amended by adding Section 2165.008 to read as follows:
Sec. 2165.008. WATER CONSERVATION SYSTEMS FOR STATE
BUILDINGS. (a) The commission may contract with a private vendor,
at no cost to the state, to install electronic water conservation
systems on toilets, sinks, and showers in state buildings.
(b) A private vendor contracting with the commission under
this section must:
(1) demonstrate that the electronic water
conservation systems used will yield an annual cost savings, as
verified by the Texas Water Development Board, of at least 50
percent of the amount of current plumbing operation costs;
(2) have a minimum of five years of verifiable
experience with retrofit installations in public buildings;
(3) use technological equipment that has a five-year
history of use in public buildings;
(4) have demonstrable experience with the use and
reuse of gray water; and
(5) have demonstrable experience with the use of
rainwater harvesting.
(c) A contract between the commission and a private vendor
under this section must include a provision that will ensure a
budget-neutral or positive fiscal impact on the state.
(d) The commission shall contract for the installation of
the conservation systems in at least 15 state buildings designated
by the commission. In designating a state building under this
subsection, the commission shall consider:
(1) the building where the greatest amount of savings
can be achieved;
(2) the age of the building; and
(3) the potential operational and security concerns of
the building.
(e) A private vendor that contracts with the commission
under this section may not receive any remuneration under the
contract until cost savings to the state have been verified by the
Texas Water Development Board.
(f) Not later than December 31, 2006, the commission shall
submit a progress report to the lieutenant governor, the speaker of
the house of representatives, and the Legislative Budget Board.
The report must include an evaluation of the initial installation
of the water conservation systems, the effectiveness of the
technology used, and the amount of cost savings to the state. The
commission may request assistance from the state auditor and the
Legislative Budget Board with the preparation of the report and the
calculation of savings.
SECTION 2.14. 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 2.15. 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 2.16. Chapter 401, Local Government Code, is
amended by adding Section 401.006 to read as follows:
Sec. 401.006. IRRIGATION SYSTEMS. (a) A municipality with
a population of 5,000 or more by ordinance shall require an
installer of an irrigation system:
(1) to hold a license issued under Section 1903.251,
Occupations Code; and
(2) to obtain a permit before installing a system
within the territorial limits or extraterritorial jurisdiction of
the municipality.
(b) The ordinance shall include minimum standards and
specifications for designing, installing, and operating irrigation
systems in accordance with Section 1903.053, Occupations Code, and
any rules adopted by the Texas Commission on Environmental Quality
under that section.
(c) A municipality may employ or contract with a licensed
plumbing inspector or a licensed irrigator to enforce the
ordinance.
(d) This section does not apply to an on-site sewage
disposal system, as defined by Section 366.002, Health and Safety
Code.
SECTION 2.17. Subsection (b), Section 1903.053,
Occupations Code, is amended to read as follows:
(b) The commission shall [may] adopt:
(1) standards relating to:
(A) the design, installation, and operation of
[for] irrigation systems;
(B) [that include] water conservation; and
(C) the duties and responsibilities of licensed
irrigators; and
(2) rules that provide for effective enforcement of
those standards[, irrigation system design and installation, and
compliance with municipal codes].
SECTION 2.18. Section 36.001, Water Code, is amended by
adding Subdivision (4-a) 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.
SECTION 2.19. 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 2.20. 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 that was
irrigated for production and 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 that was irrigated for production
and 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 2.21. Subsection (b), Section 36.116, Water Code,
is amended to read as follows:
(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 2.22. (a) The changes in law made under Section
36.002, and Subsections (h), (i), (j), (k), and (l), Section
36.113, 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.
SECTION 2.23. Chapter 49, Subchapter J, Water Code is
amended by adding a new Section 49.316, as follows:
49.316 REGULATION OF FIREWORKS BY A MUNICIPALITY
(a) An annexation by a municipality under Subchapters D or
F, Chapter 43, Local Government Code, of a district or water supply
corporation, does not authorize the municipality to regulate
fireworks, as defined in Section 2154.001(5), Occupations Code,
within the annexed area.
(b) Notwithstanding Subsection (a), a municipality may
continue to regulate fireworks within:
(1) the area of a district or water supply corporation
annexed under Subchapters D or F, Chapter 43, Local Government
Code; or
(2) an area regulated under Section 217.042, Local
Government Code;
if either area was regulated prior to January 1, 2005.
SECTION 2.24. (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 2.25. 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 2.26. (a) Section 13.502, Water Code, as amended by
this article, applies to a request to change from submetered
billing to allocated billing for which the Texas Commission on
Environmental Quality has not issued a final decision before the
effective date of this Act.
(b) Sections 15.102 and 17.125, Water Code, as amended 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 2.27. (a) Not later than October 1, 2005, the Texas
Building and Procurement Commission shall submit a request for
proposals from private vendors to provide water conservation
systems under Section 2165.008, Government Code, as added by this
article.
(b) The initial installation of the water conservation
systems described by Subsection (a) of this section shall begin not
later than February 1, 2006, and shall be completed by January 1,
2008.
SECTION 2.28. (a) Not later than June 1, 2006, the Texas
Commission on Environmental Quality shall adopt rules as required
by Section 1903.053, Occupations Code, as amended by this article,
to take effect January 1, 2007.
(b) Not later than January 1, 2007, a municipality with a
population of 5,000 or more shall adopt an ordinance under Section
401.006, Local Government Code, as added by this article.
SECTION. 2.29. STAKEHOLDER COMMITTEE REGARDING REGULATION
OF GROUNDWATER UNDER STATE-OWNED LAND. (a) A statewide
stakeholders group designated the "State-owned Groundwater
Management Stakeholders Committee" to study issues regarding
management of groundwater underlying state-owned land shall be
established.
(b) The State-owned Groundwater Management Stakeholders
Committee shall be composed of 14 members with the following
makeup.
(1) three members appointed by the lieutenant
governor;
(2) three members appointed by the speaker of the
house;
(3) one member representing the permanent university
fund appointed by the University of Texas Board of Regents;
(4) one member representing the public school lands
appointed by the School Land Board;
(5) one member representing the Texas Parks and
Wildlife Department appointed by the Commissioners of the Texas
Parks and Wildlife Department;
(6) one member representing the Texas Department of
Corrections appointed by the Commissioners of the Texas Department
of Corrections;
(7) one member representing the Texas Highway
Department appointed by the Commissioners of the Texas Highway
Department;
(8) one member representing administrators of
state-owned land other than that managed by the permanent
university fund and the public school lands appointed by the Texas
Land Commissioner;
(9) one member representing the Texas Commission on
Environmental Quality appointed by the Commissioners of the Texas
Commission on Environmental Quality; and
(10) one member representing the Texas Water
Development Board appointed by the Texas Water Development Board.
(c) Of the members appointed under Subsection (b)(1):
(1) one member must represent municipalities using
groundwater produced from state-owned land;
(2) one member must represent agricultural users of
groundwater produced from state-owned land; and
(3) one member must represent industrial users of
groundwater produced from state-owned land.
(d) Of the members appointed under Subsection (b)(2):
(1) one member must represent municipalities using
groundwater produced from state-owned land;
(2) one member must represent agricultural users of
groundwater produced from state-owned land; and
(3) one member must represent industrial users of
groundwater produced from state-owned land.
(e) The State-owned Groundwater Management Stakeholders
Committee may appoint a technical advisory committee of up to 5
members to assist the State-owned Groundwater Management
Stakeholders Committee in addressing the technical aspects of the
issues to be studied.
(f) The State-owned Groundwater Management Stakeholders
Committee shall address the following issues:
(1) The appropriate management goals for groundwater
underlying state-owned land;
(2) The appropriate science to use to determine the
availability of groundwater under state-owned land;
(3) The appropriate manner to undertake and pay for
science to determine the availability of groundwater under
state-owned land:
(4) Whether a standard contract and standard term of
lease for the leasing of groundwater under state-owned lands should
be developed;
(5) Whether a standardized process for determining the
value of groundwater under state-owned land should be developed;
(6) Whether a standardized methodology for
determining surface damages associated with the production and
transportation of groundwater under state land should be developed;
and
(7) Whether a groundwater conservation district
should be created consisting of all state-owned land not located
within the boundaries of a groundwater conservation district and if
so investigate:
(i) The appropriate powers for the district;
(ii) The appropriate method for funding the
district; and
(iii) The method for establishing a board of
directors for the district;
(g) Report to the Legislature. The State-owned Groundwater
Management Stakeholders Committee shall make a report to the
legislature by December 1, 2006.
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. STUDY CONCERNING FUNDING OF WATER INFRASTRUCTURE
DEVELOPMENT
Sec. 13.551. 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 an 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, provides for ensuring the state's environmental flow
needs through an adaptive management process;
(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
a 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 a 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,
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; and
(4) any appropriate reservations of the fee.
(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 oversight committee shall adopt rules to administer
this section.
(l) The oversight committee is abolished and this
subchapter expires September 1, 2009.
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. Subsection (a), Section 15.973, Water Code,
is amended to read as follows:
(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.
SECTION 3.04. 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, 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; and
(D) to the water assistance fund authorized by
Subchapter B.
SECTION 3.05. 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 3.06. 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 3.07. 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 3.08. Subsection (i), Section 15.407, and
Subsection (b), Section 15.974, Water Code, are repealed.
ARTICLE 4. CREATION OF VICTORIA COUNTY GROUNDWATER CONSERVATION
DISTRICT
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) In this subsection, "MSL" means the elevation, measured
in feet, of the surface of the water in a well above mean sea level,
and "CFS" means cubic feet per second. 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 POOLINDEX 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 POOLINDEX 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.
(e) 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, unless, after
review and consideration of recommendations received by the
authority under Section 1.26A of this article and consultation with
the appropriate state and federal agencies, the authority
determines that a different volume of withdrawals is consistent
with Section 1.14(a) of this article in maintaining protection for
protected and endangered species to the extent required by federal
law.
(f) 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), (c), and (e) 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) two Downstream Water Rights holders in the
Guadalupe River Basin;
(5) two Downstream Water Rights holders in the Nueces
River Basin; and
(6) 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 including, if appropriate,
establishing separate and different withdrawal levels and critical
period management rules for different pools of the aquifer 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 Stakeholders 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.
SECTION 5.09. Section 1.29, Chapter 626, Acts of the 73rd
Legislature, Regular Session, 1993 is amended by adding Subsection
(j) to read as follows:
(j) BUDGETARY ADVISORY COMMITTEE. The authority shall
appoint a budgetary advisory committee no later than September 30,
2005 to consult and advise the authority on budget matters,
including aquifer management fees and bonding authority issues.
Each voting member of the authority board shall appoint one member
of the committee.
ARTICLE 6. CREATION OF VAL VERDE COUNTY
GROUNDWATER CONSERVATION DISTRICT
SECTION 6.01. DEFINITIONS. In this article:
(1) "Board" means the board of directors of the
district.
(2) "Director" means a member of the board.
(3) "District" means the Val Verde County Groundwater
Conservation District.
SECTION 6.02. CREATION. A groundwater conservation
district, to be known as the Val Verde County Groundwater
Conservation District, is created in Val Verde County, subject to
approval at a confirmation election under Section 6.08 of this
article.
SECTION 6.03. FINDINGS OF BENEFIT. (a) The district is
created to serve a public use and benefit.
(b) The district is created under and is essential to
accomplish the purposes of Section 59, Article XVI, Texas
Constitution.
(c) All of the land and other property included within the
boundaries of the district will be benefited by the works and
projects that are to be accomplished by the district under powers
conferred by Section 59, Article XVI, Texas Constitution.
SECTION 6.04. CONTINUING PROVISIONS OF DISTRICT. Subtitle
H, Title 6, Special District Local Laws Code, is amended by adding
Chapter 8804 to read as follows:
CHAPTER 8804. VAL VERDE COUNTY GROUNDWATER
CONSERVATION DISTRICT
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 8804.001. DEFINITIONS. In this chapter:
(1) "Agricultural use" means any use or activity
involving agriculture, including irrigation.
(2) "Agriculture" means any of the following
activities:
(A) cultivating the soil to produce crops for
human food, animal feed, or planting seed or for the production of
fibers;
(B) the practice of floriculture, viticulture,
silviculture, and horticulture, including the cultivation of
plants in containers of nonsoil media, by a nursery grower;
(C) raising, feeding, or keeping animals, other
than fish, for breeding purposes or for the production of food or
fiber, leather, pelts, or other tangible products having a
commercial value;
(D) planting cover crops, including cover crops
cultivated for transplantation, or leaving land idle for the
purpose of participating in any governmental program or normal crop
or livestock rotation procedure;
(E) wildlife management; and
(F) raising or keeping equine animals.
(3) "Board" means the board of directors of the
district.
(4) "Director" means a member of the board.
(5) "District" means the Val Verde County Groundwater
Conservation District.
(6) "Domestic use" means use in the district of water
by a person owning the well from which the water is withdrawn and by
that person's household for:
(A) drinking, washing, or culinary purposes;
(B) irrigation of lawns;
(C) irrigation of a family garden or orchard the
produce of which is for household consumption only;
(D) swimming pools, decorative ponds, or
fountains on the person's property; and
(E) watering of domestic animals not raised,
maintained, or sold for commercial purposes.
(7) "Political subdivision" means a county,
municipality, or other body politic or corporate of the state,
including a district or authority created under Section 52, Article
III, or Section 59, Article XVI, Texas Constitution, a state
agency, or a nonprofit water supply corporation created under
Chapter 67, Water Code.
Sec. 8804.002. NATURE OF DISTRICT. The district is a
groundwater conservation district in Val Verde County created under
Section 59, Article XVI, Texas Constitution.
Sec. 8804.003. DISTRICT PURPOSE. The district is created
to:
(1) provide for the protection, recharging, and
prevention of waste of groundwater in Val Verde County;
(2) control subsidence caused by the withdrawal of
water from the groundwater reservoirs in Val Verde County;
(3) regulate the transport of groundwater out of the
boundaries of the district;
(4) manage the issuance of permits for the transfer of
groundwater by requiring groundwater availability models of permit
applicants; and
(5) protect water quality.
[Sections 8804.004-8804.050 reserved for expansion]
SUBCHAPTER B. TERRITORY
Sec. 8804.051. BOUNDARIES. The boundaries of the district
are coextensive with the boundaries of Val Verde County, Texas.
[Sections 8804.052-8804.100 reserved for expansion]
SUBCHAPTER C. BOARD OF DIRECTORS
Sec. 8804.101. BOARD. The board consists of seven
directors.
Sec. 8804.102. 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) Three directors 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
a registered voter in the district. To be a candidate for or to
serve as director from a county commissioners precinct, a person
must be a registered voter 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 from
which elected or appointed even if the change in boundaries places
the person's residence outside the precinct from which the person
was elected or appointed.
Sec. 8804.103. 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. 8804.104. TERMS. (a) Directors serve staggered
four-year terms.
(b) A director may serve for consecutive terms.
Sec. 8804.105. COMPENSATION. (a) A director is not
entitled to receive fees of office for performing the duties of a
director.
(b) The board may authorize a director to receive
reimbursement for the director's reasonable expenses incurred
while engaging in activities outside the district on behalf of the
board.
[Sections 8804.106-8804.150 reserved for expansion]
SUBCHAPTER D. POWERS AND DUTIES
Sec. 8804.151. POWERS AND DUTIES. Except as otherwise
provided by this chapter, the district has all of the rights,
powers, privileges, authority, functions, and duties provided by
the general law of this state, including Chapter 36, Water Code,
applicable to groundwater conservation districts created under
Section 59, Article XVI, Texas Constitution.
Sec. 8804.152. PERMIT TO TRANSFER GROUNDWATER. (a) The
district by rule shall:
(1) require a person to obtain a permit from the
district to transfer groundwater out of the district; and
(2) regulate the terms of a transfer of groundwater
out of the district.
(b) The district shall develop rules under this section that
are consistent with the requirements of Section 36.122, Water Code.
(c) The district shall use a groundwater availability
model, and not historical use, as the basis for issuing permits.
(d) A permit issued under this section, except for a permit
issued under Section 8804.153(a), does not establish historical
use.
(e) In the event of a conflict between the information
provided by the groundwater study conducted under Section 8804.161
and the recommendations submitted under Section 8804.164 regarding
the minimum flow requirements for any spring in the district, the
determination of the Texas Water Development Board study under
Section 8804.161 controls for purposes of development of rules
under this section.
Sec. 8804.153. PERMITS FOR USE SOLELY INSIDE DISTRICT. (a)
The district shall grant the City of Del Rio a permit in the city's
name that authorizes the city to pump from all city wells a stated
cumulative amount of not less than 15,000 acre-feet of water
annually for use solely inside the district. If the study performed
under Section 8804.162 finds that sufficient groundwater is
available, the district shall amend the city's permit to authorize
the city to pump from all city wells a stated cumulative amount of
not less than 20,000 acre-feet of water annually for use solely
inside the district. This subsection does not limit the City of Del
Rio's right to apply for or obtain a permit to transfer groundwater
under Section 8804.152.
(b) The district shall grant to a nonprofit rural water
supply corporation, water district, or other political subdivision
a permit that authorizes the water supply corporation, water
district, or other political subdivision to pump from its wells
annually a volume of water that is not less than the volume equal to
twice its greatest water usage in a calendar year before the date
the district is confirmed at an election held for that purpose, for
use solely inside the district.
Sec. 8804.154. AGRICULTURAL USE PERMIT. (a) Except as
provided by Section 8804.155, the district shall grant any
application for an agricultural use permit for any well that is used
solely for agricultural use inside the district. The district
shall issue an agricultural use permit in an amount that is not less
than five acre-feet of water per acre actually cultivated per year.
An agricultural use permit is nontransferable and expires on the
date the well ceases to be used solely for agricultural use inside
the district.
(b) This section does not limit the well owner's right to
apply for or obtain a permit to transfer groundwater under Section
8804.152.
Sec. 8804.155. LIMITATION ON WELL PERMIT REQUIREMENTS. (a)
The district may not require a person to obtain a permit from the
district for:
(1) a well used solely for domestic use or for
providing water for livestock or poultry on a tract of land smaller
than 10 acres that is either drilled, completed, or equipped so that
it is incapable of producing more than 30,000 gallons of
groundwater a day;
(2) a well used solely for domestic use or for
providing water for livestock or poultry on a tract of land 10 acres
or larger that is either drilled, completed, or equipped so that it
is incapable of producing more than 50,000 gallons of groundwater a
day; or
(3) any well in use before the date the district is
confirmed at an election held for that purpose and used solely for
agricultural use.
(b) The district shall require a permit for a well described
by Subsection (a)(3) that ceases to be used solely for agricultural
use. The district also may impose a fee on the well as provided by
Section 8804.202(c)(1)(A).
(c) An owner of a well described by this section shall
register the well with the district.
(d) A well owner is entitled to a permit exemption under
this section only if water from the well is used solely inside the
district. If water from a well is not used solely inside the
district, the well owner must obtain a permit.
Sec. 8804.156. REPLACEMENT WELL. (a) A new well that
replaces an abandoned or decommissioned well is subject to the same
permit requirements or exemption as the well it replaces if the
replacement well:
(1) is used solely for the same purposes as the well it
replaces; and
(2) serves the same area as the well it replaces.
(b) The district may not require a person who repairs or
modifies a well to obtain a permit for that well if the well:
(1) is exempt under Section 8804.155; and
(2) continues to be used solely for agricultural use.
Sec. 8804.157. PROHIBITION ON DISTRICT PURCHASE, SALE,
TRANSPORT, OR DISTRIBUTION OF WATER. The district may not
purchase, sell, transport, or distribute surface water or
groundwater for any purpose.
Sec. 8804.158. PROHIBITION ON DISTRICT USE OF EMINENT
DOMAIN. The district may not exercise the power of eminent domain.
Sec. 8804.159. REGIONAL COOPERATION. To provide for
regional continuity, the district shall:
(1) participate as needed in coordination meetings
with other groundwater conservation districts in its designated
management area;
(2) coordinate the collection of data with other
groundwater conservation districts in its designated management
area in such a way as to achieve relative uniformity of data type
and quality;
(3) coordinate efforts to monitor water quality with
other groundwater conservation districts in its designated
management area, local governments, and state agencies;
(4) provide groundwater level data to other
groundwater conservation districts in its designated management
area;
(5) investigate any groundwater or aquifer pollution
with the intention of locating its source;
(6) notify other groundwater conservation districts
in its designated management area and all appropriate agencies of
any groundwater pollution detected; and
(7) include other groundwater conservation districts
in its designated management area on the mailing lists for district
newsletters, seminars, public education events, news articles, and
field days.
Sec. 8804.160. WATER CONSERVATION INITIATIVE. The district
may create a water conservation initiative as described by Section
11.32, Tax Code.
Sec. 8804.161. TEXAS WATER DEVELOPMENT BOARD STUDY. At
least once every 10 years and at any other time the board considers
necessary to implement Section 8804.152, the staff of the Texas
Water Development Board shall make a complete study of the
groundwater in the district and determine:
(1) the water level;
(2) the rates and amounts of groundwater withdrawal;
(3) the rates and amounts by which the groundwater is
recharged;
(4) rainwater levels; and
(5) other information relating to the groundwater
availability of the aquifer.
Sec. 8804.162. LOCAL STUDY OF GROUNDWATER AVAILABILITY.
(a) Except as provided by Subsection (b), not later than the 10th
anniversary of the date on which the district is confirmed, the
district shall complete a study to determine whether there is
sufficient groundwater to amend the permit granted under Section
8804.153(a) to the City of Del Rio as authorized by Section
8804.153(a).
(b) In place of the district's study, the City of Del Rio may
perform a study of the groundwater availability in the district and
the board shall rely on the city's study if the city's study meets
the criteria of the Texas Water Development Board study required by
Section 8804.161 and the Texas Water Development Board study has
not been completed or is otherwise unavailable.
Sec. 8804.163. MORATORIUM ON TRANSFER PERMITS. (a) Except
as provided by Subsection (d), the district shall impose a
moratorium on the issuance of permits for the transfer of
groundwater during each period set aside to conduct and consider a
groundwater study under Section 8804.161.
(b) Except for the initial study, the district by rule shall
specify the length of the period set aside to conduct and consider
groundwater studies under Section 8804.161.
(c) The district may not issue a permit for the transfer of
groundwater until:
(1) an initial groundwater study under Section
8804.161 is completed and submitted to the district; and
(2) the spring flow and groundwater availability
advisory panel makes a determination under Section 8804.164 of the:
(A) flow of each spring in the district; and
(B) groundwater availability in the district.
(d) The board by emergency order may issue a permit during a
moratorium on the affirmative vote of at least five directors.
Sec. 8804.164. SPRING FLOW AND GROUNDWATER AVAILABILITY
ADVISORY PANEL. (a) Not later than the 90th day after the date on
which the first permanent directors are elected, the board shall
appoint a spring flow and groundwater availability advisory panel
to determine the minimum spring flow of each spring and the
groundwater availability in the district and recommend to the board
the maximum groundwater withdrawal rate that should be permitted by
the district to achieve or maintain at least those minimum flows and
that groundwater availability.
(b) The advisory panel shall be composed of the following
members:
(1) two members who represent the City of Del Rio;
(2) two members who represent agricultural interests
and each own a minimum of 5,000 acres of land in the district;
(3) two members who represent the interests of and are
riparian landowners in the district;
(4) one member who represents rural water suppliers;
(5) one member who represents environmental
interests; and
(6) one member who represents a water marketing group,
or, if the board is unable to locate a person to represent water
marketing, a member appointed by the board.
(c) The panel shall develop and submit to the board
recommendations for limitations on groundwater withdrawal rates
consistent with maintaining minimum spring flows and groundwater
availability. In developing the recommendations, the panel shall
consider:
(1) the results of the Texas Water Development Board
study required by Section 8804.161 and the findings of any other
study presented to the panel;
(2) the best available science;
(3) the water level;
(4) the rate and amount of groundwater withdrawal;
(5) the rate and amount of groundwater recharge;
(6) underflow from outside the district;
(7) information related to the availability of
groundwater in the district for withdrawal;
(8) spring discharge rates as a function of
groundwater withdrawal rates;
(9) historical data;
(10) drought period management; and
(11) other factors required to be considered by the
board.
(d) The district shall provide the panel with:
(1) any information the district has that is relevant
to the work and purpose of the panel; and
(2) any support necessary to determine spring flows
and groundwater availability in the district.
(e) The board shall review the recommendations submitted by
the advisory panel under Subsection (c) and shall consider them in
conjunction with other factors, including the present and future
needs for water related to water supply planning in Val Verde
County.
(f) The board may accept or reject the advisory panel's
recommendations, but the board may not change the determination of
the panel regarding the limitations on groundwater withdrawal rates
necessary to achieve or maintain at least the minimum spring flows
and groundwater availability.
[Sections 8804.165-8804.200 reserved for expansion]
SUBCHAPTER E. GENERAL FINANCIAL PROVISIONS
Sec. 8804.201. LIMITATION ON TAXES. (a) The district may
not levy ad valorem taxes at a rate that exceeds five cents on each
$100 of assessed valuation of taxable property in the district.
(b) The district may not levy ad valorem taxes at a rate that
exceeds 2-1/2 cents on each $100 of assessed valuation of taxable
property in the district for the first two tax years after the
district's confirmation.
(c) Not later than the seventh anniversary of the date on
which the district is confirmed, the district shall maintain in
reserve at all times not less than six months and not more than two
years of operating capital. If the district's reserve operating
capital at any time exceeds the amount needed to operate the
district for two years, the district must:
(1) reduce taxes so as not to collect more revenue than
is needed to operate the district; or
(2) perform a recharge project with the excess
revenue.
Sec. 8804.202. FEES. (a) The board by rule may impose
reasonable fees on each well:
(1) for which a permit is issued by the district; and
(2) that is not exempt from district regulation.
(b) A production fee may be based on:
(1) the size of column pipe used by the well; or
(2) the amount of water actually withdrawn from the
well, or the amount authorized or anticipated to be withdrawn.
(c) The board shall base the initial production fee on the
criteria listed in Subsection (b)(2). The initial production fee:
(1) may not exceed:
(A) $0.25 per acre-foot for water used for
agricultural irrigation; or
(B) $0.0425 per thousand gallons for water used
for any other purpose; and
(2) may be increased at a cumulative rate not to exceed
three percent per year.
(d) In addition to the production fee authorized under this
section, the district may assess an export fee on groundwater from a
well that is produced for transport outside the district.
(e) Fees authorized by this section may be:
(1) assessed annually or monthly; and
(2) used to pay the cost of district operations.
Sec. 8804.203. EXEMPTION FROM FEES. (a) Except as provided
by Subsection (b), the district may not impose a fee on a well
drilled by a nonprofit rural water supply corporation, water
district, or other political subdivision if the well's production
is for use within the district.
(b) The district by emergency order of the board may impose
a reasonable and temporary production fee on a well described by
Subsection (a) if:
(1) at least five of the directors approve the
emergency order;
(2) severe drought or another district emergency makes
the fee necessary; and
(3) the term of the order does not exceed 180 days.
SECTION 6.05. APPOINTMENT OF TEMPORARY DIRECTORS. (a) Not
later than the 45th day after the effective date of this Act:
(1) the Val Verde County Commissioners Court shall
appoint one temporary director from each of the four commissioners
precincts in the county to represent the precinct in which the
temporary director resides;
(2) the county judge of Val Verde County shall appoint
one temporary director who resides in the district to represent the
district at large; and
(3) the Del Rio City Council shall appoint two
temporary directors, each of whom resides in the district, to
represent the district at large.
(b) Of the temporary directors appointed under Subsections
(a)(1) and (2) of this section, at least one director must represent
rural water suppliers in the district, one must represent
agricultural interests in the district, one must represent
industrial interests in the district, and one must represent
municipal water suppliers.
(c) If there is a vacancy on the temporary board of
directors of the district, the authority who appointed the
temporary director whose position is vacant shall appoint a person
to fill the vacancy in a manner that meets the representational
requirements of this section.
(d) Temporary directors serve until the earliest of the
date:
(1) temporary directors become initial directors as
provided by Section 6.09 of this article;
(2) the confirmation election under Section 6.08 of
this article fails to pass; or
(3) this article expires under Section 6.13.
SECTION 6.06. LIMITED POWERS AND DUTIES OF TEMPORARY BOARD
OF DIRECTORS. (a) The temporary board may only:
(1) hold an election under Section 6.08 of this
article;
(2) manage the day-to-day governance of the district;
(3) make administrative and nondiscretionary
decisions; and
(4) establish temporary fees under Section 36.206,
Water Code.
(b) The temporary board does not have rulemaking or
permitting authority.
(c) Any procedures, fees, or policies established by the
temporary board are subject to ratification by the permanent
directors elected under Section 6.10 of this article.
SECTION 6.07. 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 no location
can be agreed upon, the organizational meeting shall be at the Val
Verde County Courthouse.
SECTION 6.08. CONFIRMATION ELECTION. (a) The temporary
directors shall hold an election 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) Except as provided by this section, a confirmation
election must be conducted as provided by Sections 36.017(b)-(i),
Water Code, and the Election Code.
(d) The district may hold a subsequent confirmation
election if the previous confirmation election fails to pass. A
subsequent confirmation election may not be held sooner than one
year after the date of the previous confirmation election.
(e) The confirmation election ballot shall be printed to
permit voting for or against the proposition: "To create the Val
Verde County Groundwater Conservation District and to authorize the
district to impose an ad valorem tax at a rate not to exceed 2.5
cents for each $100 valuation of all taxable property in the
district for the first two tax years after the district's
confirmation and at a rate not to exceed 5 cents for each $100
valuation of all taxable property in the district after the second
tax year."
(f) If a majority of the voters voting at a confirmation
election under this section do not vote in favor of the ballot
proposition, the proposition fails and the temporary board is
dissolved. The authorities that appointed the temporary board may
agree to establish a new temporary board in the manner provided by
Section 6.05 of this article. A person who served on the original
or a subsequent temporary board is eligible to serve on another
temporary board. Each temporary board has the duties and powers
provided by this section and Sections 6.06 and 6.07 of this article.
(g) If the establishment of the district is not confirmed at
an election held under this section before September 1, 2010, the
district is dissolved, except that:
(1) any debts incurred shall be paid;
(2) any assets that remain after the payment of debts
shall be transferred to Val Verde County; and
(3) the organization of the district shall be
maintained until all debts are paid and remaining assets are
transferred.
SECTION 6.09. INITIAL DIRECTORS. (a) If creation of the
district is confirmed at an election held under Section 6.08 of this
article, 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 6.10 of this article.
(b) The initial directors have the powers and duties of the
temporary directors under Sections 6.06(a)(2)-(4), (b), and (c) of
this article, and shall hold an election for permanent directors
under Section 6.10 of this article.
SECTION 6.10. ELECTION OF PERMANENT DIRECTORS. (a) The
initial directors serve until the first regularly scheduled
election of directors under Subsection (b) of this section.
(b) 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 district is authorized to be created at
a confirmation election, an election shall be held in the district
for the election of seven directors. The elected directors shall
draw lots to determine which three directors shall serve terms
lasting until the first regularly scheduled election under Section
8804.103, Special District Local Laws Code, as added by this
article, and which four shall serve until the second regularly
scheduled directors election.
SECTION 6.11. FINDINGS RELATED TO PROCEDURAL REQUIREMENTS.
(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 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 article to the
Texas Commission on Environmental Quality.
(c) The Texas Commission on Environmental Quality has filed
its recommendations relating to this article with the governor, the
lieutenant governor, and the 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.
SECTION 6.12. STUDY COMPLETION. Not later than the last day
of the 18th month after the month in which the district is confirmed
at an election held for that purpose, the Texas Water Development
Board shall complete the initial study required by Section
8804.161, Special District Local Laws Code, as added by this
article, and deliver the findings of the study to the board.
SECTION 6.13. EXPIRATION. (a) If the creation of the
district is not confirmed at a confirmation election held under
Section 6.08 of this article before September 1, 2010, this article
expires on that date.
(b) The expiration of this article does not affect the
liability of the district to pay any debt incurred or the transfer
of any assets remaining to Val Verde County as required by Section
6.08(g) of this article.
ARTICLE 7. EFFECTIVE DATE
SECTION 7.01. Except as otherwise provided by this Act,
this Act takes effect September 1, 2005.