80(R) SB 3 - Enrolled version



	S.B. No. 3

AN ACT

relating to the development, management, and preservation of the

water resources of the state; 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~~].

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) "Advisory group" means the environmental flows

advisory group.

(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 (b), (c), and (e) and adding Subsections (d-1)

through (d-6) and (f) 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.

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 has determined that existing water

rights that are amended to authorize use for environmental purposes

should be enforced in a manner consistent with the enforcement of

water rights for other purposes as provided by the laws of this

state governing the appropriation of state water.

(d-2) 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-3) 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-4) 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-5) 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-6) 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. Subchapter B, Chapter 11, Water Code, is

amended by adding Sections 11.0236, 11.02361, 11.02362, and 11.0237

to read as follows:

Sec. 11.0236. ENVIRONMENTAL FLOWS ADVISORY GROUP. (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

environmental flows advisory group.

(b) The advisory group is composed of nine members as

follows:

(1) three members appointed by the governor;

(2) three members of the senate appointed by the

lieutenant governor; and

(3) three members of the house of representatives

appointed by the speaker of the house of representatives.

(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.

(d) Each member of the advisory group serves at the will of

the person who appointed the member.

(e) The appointed senator with the most seniority and the

appointed house member with the most seniority serve together as

co-presiding officers of the advisory group.

(f) A member of the advisory group is not entitled to

receive compensation for service on the advisory group but is

entitled to reimbursement of the travel expenses incurred by the

member while conducting the business of the advisory group, as

provided by the General Appropriations Act.

(g) The advisory group may accept gifts and grants from any

source to be used to carry out a function of the advisory group.

(h) The commission shall provide staff support for the

advisory group.

(i) The advisory group 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 advisory group

determines have importance and relevance to the protection of

environmental flows. In evaluating the options for providing

adequate environmental flows, the advisory group 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, and bay and estuary systems and are high priorities in the

water management process. The advisory group shall specifically

address:

(1) ways that the ecological soundness of those

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.

(j) The advisory group may 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.

(k) Chapter 2110, Government Code, does not apply to the

size, composition, or duration of the advisory group.

(l) Not later than December 1, 2008, and every two years

thereafter, the advisory group 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 advisory group;

(2) any studies conducted by the advisory group;

(3) any legislation proposed by the advisory group;

(4) progress made in implementing Sections 11.02361

and 11.02362; and

(5) any other findings and recommendations of the

advisory group.

(m) The advisory group is abolished on the date that the

commission has adopted environmental flow standards under Section

11.1471 for all of the river basin and bay systems in this state.

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 advisory group.

(b) The advisory group 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.

five-year terms expiring March 1. A vacancy on the science advisory

committee is filled by appointment by the co-presiding officers of

the advisory group 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 advisory group 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

teams described in Section 11.02362.

(f) To assist the advisory group 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

advisory group, at intervals determined by the advisory group, 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.

(g) The science advisory committee is abolished on the date

the advisory group is abolished under Section 11.0236(m).

Sec. 11.02362. DEVELOPMENT OF ENVIRONMENTAL FLOW REGIME

RECOMMENDATIONS. (a) For the purposes of this section, the

advisory group, not later than November 1, 2007, 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 advisory group 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, Mission, and Aransas Rivers and Mission, 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.

(b)(1):

(1) the advisory group shall appoint the basin and bay

area stakeholders committee not later than November 1, 2007;

(2) the basin and bay area stakeholders committee

shall establish a basin and bay expert science team not later than

March 1, 2008;

(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 advisory

group, and the commission not later than March 1, 2009, except that

at the request of the basin and bay area stakeholders committee for

good cause shown, the advisory group may extend the deadline

provided by this subdivision;

(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, 2009; and

(5) the commission shall adopt the environmental flow

standards as provided by Section 11.1471 not later than September

1, 2010.

(d) The advisory group 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, 2008, 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, 2009. The advisory group shall establish a

schedule for the performance of the tasks listed in Subsections

(c)(2) through (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 advisory

group with regard to the schedule applicable to that river basin and

bay system. The advisory group 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 advisory group shall establish a schedule for

the development of environmental flow regime recommendations and

the adoption of environmental flow standards. The advisory group

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 advisory group 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

advisory group 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 advisory group 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

membership of each committee must:

(1) reflect a fair and equitable balance of interest

groups concerned with the particular river basin and bay system for

which the committee is established; and

(2) be representative of appropriate stakeholders,

including the following if they have a presence in the particular

river basin and bay system for which the committee is established:

(A) agricultural water users, including

representatives of each of the following sectors:

(i) agricultural irrigation;

(ii) free-range livestock; and

(iii) concentrated animal feeding

operation;

(B) recreational water users, including coastal

recreational anglers and businesses supporting water recreation;

(D) soil and water conservation districts;

(E) industrial water users, including

representatives of each of the following sectors:

(i) refining;

(ii) chemical manufacturing;

(iii) electricity generation; and

(iv) production of paper products or

timber;

(F) commercial fishermen;

(G) public interest groups;

(H) regional water planning groups;

(I) groundwater conservation districts;

(J) river authorities and other conservation and

reclamation districts with jurisdiction over surface water; and

(K) 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 advisory group, 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 advisory group 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 advisory group 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 advisory group 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 advisory

group, 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 advisory group 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) Notwithstanding the other provisions of this section,

in the event the commission, by permit or order, has established an

estuary advisory council with specific duties related to

implementation of permit conditions for environmental flows, that

council may continue in full force and effect and shall act as and

perform the duties of the basin and bay area stakeholders committee

under this section. The estuary advisory council shall add members

from stakeholder groups and from appropriate science and technical

groups, if necessary, to fully meet the criteria for membership

established in Subsection (f) and shall operate under the

provisions of this section.

(s) Each basin and bay area stakeholders committee and basin

and bay expert science team is abolished on the date the advisory

group is abolished under Section 11.0236(m).

Sec. 11.0237. WATER RIGHTS FOR INSTREAM FLOWS DEDICATED TO

ENVIRONMENTAL NEEDS OR BAY AND ESTUARY INFLOWS. (a) The

commission may not issue a new permit for instream flows dedicated

to environmental needs or bay and estuary inflows. The commission

may approve an application to amend 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) or (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 1.08. 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 1.09. Section 11.0841, Water Code, is amended by

adding Subsection (c) to read as follows:

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 1.10. 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 1.11. 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 1.12. 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;

(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 1.13. 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 beneficial 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, 2007. 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, and of any

voluntary amendments to existing water rights to change the use of a

specified quantity of water to or add a use of a specified quantity

of water for instream flows dedicated to environmental needs or bay

and estuary inflows as authorized by Section 11.0237(a), that

actually contribute toward meeting the applicable environmental

flow standards.

(e-2) Any water right holder who makes a contribution or

amends a water right as described by Subsection (e-1)(3) is

entitled to appropriate credit for the benefits of the contribution

or amendment against the adjustment of the holder's water right

under Subsection (e-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 1.14. 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 advisory group 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 established by the advisory group

under Section 11.02362(d) or (e) for the adoption of environmental

flow standards for the river basin and bay system, 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 developed by the applicable

basin and bay area stakeholders committee under Section 11.02362(o)

regarding environmental flow standards and strategies to meet the

flow standards;

(5) any comments submitted by the advisory group to

the commission under Section 11.02362(q);

(6) the specific characteristics of the river basin

and bay system;

(7) economic factors;

(8) the human and other competing water needs in the

river basin and bay system;

(9) all reasonably available scientific information,

including any scientific information provided by the science

advisory committee; and

(10) any other appropriate information.

(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. In establishing a

schedule, the commission shall consider the applicable work plan

approved by the advisory group under Section 11.02362(p). The

commission's schedule may not provide for the rulemaking process to

occur more frequently than once every 10 years unless the work plan

provides for a periodic review under Section 11.02362(p) 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. A rulemaking process

undertaken under this subsection must provide for the participation

of stakeholders having interests in the particular river basin and

bay system for which the process is undertaken.

SECTION 1.15. 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 1.16. 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~~].

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 1.17. 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 advisory

group, the science advisory committee, and any applicable basin and

bay area stakeholders committee and basin and bay expert science

team.

SECTION 1.18. 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 1.19. 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 1.20. 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.

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 1.21. Sections 11.454 and 11.455, Water Code, are

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~~].

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.

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 1.22. 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 basin and bay

expert science teams established under Section 11.02362 for

attendance and participation at meetings of the basin and bay

expert science 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 basin and bay area stakeholders

committees established under Section 11.02362 to fund all or part

of the administrative expenses incurred in conducting meetings of

the basin and bay area stakeholders committees or the pertinent

basin and bay expert science teams.

SECTION 1.23. 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, 2016 [~~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 1.24. 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 1.25. Subsection (b), Section 11.1491, Water Code,

is repealed.

SECTION 1.26. (a) The governor, lieutenant governor, and

speaker of the house of representatives shall appoint the initial

members of the environmental flows advisory group as provided by

Section 11.0236, Water Code, as added 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 advisory group 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, 2012.

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 1.27. 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 Act 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 Act or is filed with the commission on or after that

date.

ARTICLE 2. WATER CONSERVATION AND PLANNING AND OTHER WATER-RELATED

PROVISIONS

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 waters of the state.

SECTION 2.02. Subchapter A, Chapter 1, Water Code, is

amended by adding Section 1.004 to read as follows:

Sec. 1.004. FINDINGS AND POLICY REGARDING LAND STEWARDSHIP.

(a) The legislature finds that 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.

(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. Subtitle A, Title 2, Water Code, is amended by

adding Chapter 10 to read as follows:

CHAPTER 10. WATER CONSERVATION ADVISORY COUNCIL

Sec. 10.001. DEFINITIONS. In this chapter:

(1) "Best management practices" has the meaning

assigned by Section 11.002.

(2) "Board" means the Texas Water Development Board.

(3) "Commission" means the Texas Commission on

Environmental Quality.

(4) "Council" means the Water Conservation Advisory

Council.

Sec. 10.002. PURPOSE. The council is created to provide the

governor, lieutenant governor, speaker of the house of

representatives, legislature, board, commission, political

subdivisions, and public with the resource of a select council with

expertise in water conservation.

Sec. 10.003. CREATION AND MEMBERSHIP. (a) The council is

composed of 23 members appointed by the board. The board shall

appoint one member to represent each of the following entities or

interest groups:

(1) Texas Commission on Environmental Quality;

(2) Department of Agriculture;

(3) Parks and Wildlife Department;

(4) State Soil and Water Conservation Board;

(5) Texas Water Development Board;

(6) regional water planning groups;

(7) federal agencies;

(8) municipalities;

(9) groundwater conservation districts;

(10) river authorities;

(11) environmental groups;

(12) irrigation districts;

(13) institutional water users;

(14) professional organizations focused on water

conservation;

(15) higher education;

(16) agricultural groups;

(17) refining and chemical manufacturing;

(18) electric generation;

(19) mining and recovery of minerals;

(20) landscape irrigation and horticulture;

(21) water control and improvement districts;

(22) rural water users; and

(23) municipal utility districts.

(b) Each entity or interest group described by Subsection

(a) may recommend one or more persons to fill the position on the

council held by the member who represents that entity or interest

group. If one or more persons are recommended for a position on the

council, the board shall appoint one of the persons recommended to

fill the position.

Sec. 10.004. TERMS. (a) Members of the council serve

staggered terms of six years, with seven or eight members' terms, as

applicable, expiring August 31 of each odd-numbered year.

(b) The board shall fill a vacancy on the council for the

unexpired term by appointing a person who has the same

qualifications as required under Section 10.003 for the person who

previously held the vacated position.

Sec. 10.005. PRESIDING OFFICER. The council members shall

select one member as the presiding officer of the council to serve

in that capacity until the person's term as a council member

expires.

Sec. 10.006. COUNCIL STAFF. On request by the council, the

board shall provide any necessary staff to assist the council in the

performance of its duties.

Sec. 10.007. PUBLIC MEETINGS AND PUBLIC INFORMATION.

(a) The council may hold public meetings as needed to fulfill its

duties under this chapter.

(b) The council is subject to Chapters 551 and 552,

Government Code.

Sec. 10.008. INAPPLICABILITY OF ADVISORY COMMITTEE LAW.

Chapter 2110, Government Code, does not apply to the size,

composition, or duration of the council.

Sec. 10.009. COMPENSATION OF MEMBERS. (a) Members of the

council serve without compensation but may be reimbursed by

legislative appropriation for actual and necessary expenses

related to the performance of council duties.

(b) Reimbursement under Subsection (a) is subject to the

approval of the presiding officer of the council.

Sec. 10.010. POWERS AND DUTIES OF COUNCIL. The council

shall:

(1) monitor trends in water conservation

implementation;

(2) monitor new technologies for possible inclusion by

the board as best management practices in the best management

practices guide developed by the water conservation implementation

task force under Chapter 109, Acts of the 78th Legislature, Regular

Session, 2003;

(3) monitor the effectiveness of the statewide water

conservation public awareness program developed under Section

16.401 and associated local involvement in implementation of the

program;

(4) develop and implement a state water management

resource library;

(5) develop and implement a public recognition program

for water conservation;

(6) monitor the implementation of water conservation

strategies by water users included in regional water plans; and

(7) monitor target and goal guidelines for water

conservation to be considered by the board and commission.

Sec. 10.011. REPORT. Not later than December 1 of each

even-numbered year, the council shall submit to the governor,

lieutenant governor, and speaker of the house of representatives a

report on progress made in water conservation in this state.

Sec. 10.012. DESIGNATION OF CERTIFIED WATER CONSERVATION

TRAINING FACILITIES STUDY. (a) The council shall conduct a study

to evaluate the desirability of requiring the board to:

(1) designate as certified water conservation

training facilities entities and programs that provide assistance

to retail public utilities in developing water conservation plans

under Section 13.146; and

(2) give preference to certified water conservation

training facilities in making loans or grants for water

conservation training and education activities.

(b) Not later than December 1, 2008, the council shall

submit a written report containing the findings of the study and the

recommendations of the council to the governor, lieutenant

governor, and speaker of the house of representatives.

SECTION 2.04. 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 2.05. Subdivisions (1-a), (5), and (8), Section

13.002, Water Code, are amended to read as follows:

(1-a) "Landowner," "owner of a tract of land," and

"owners of each tract of land" include multiple owners of a single

deeded tract of land as shown on the appraisal roll of the appraisal

district established for each county in which the property is

located.

(5) "Commission" means the Texas [~~Natural Resource~~

~~Conservation~~] Commission on Environmental Quality.

(8) "Executive director" means the executive director

of the commission [~~Texas Natural Resource Conservation~~

~~Commission~~].

SECTION 2.06. Subchapter E, Chapter 13, Water Code, is

amended by adding Sections 13.146 and 13.147 to read as follows:

Sec. 13.146. WATER CONSERVATION PLAN. The commission shall

require a retail public utility that provides potable water service

to 3,300 or more connections 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.

Sec. 13.147. CONSOLIDATED BILLING AND COLLECTION

CONTRACTS. (a) A retail public utility providing water service

may contract with a retail public utility providing sewer service

to bill and collect the sewer service provider's fees and payments

as part of a consolidated process with the billing and collection of

the water service provider's fees and payments. The water service

provider may provide that service only for customers who are served

by both providers in an area covered by both providers'

certificates of public convenience and necessity. If the water

service provider refuses to enter into a contract under this

section or if the water service provider and sewer service provider

cannot agree on the terms of a contract, the sewer service provider

may petition the commission to issue an order requiring the water

service provider to provide that service.

(b) A contract or order under this section must provide

procedures and deadlines for submitting billing and customer

information to the water service provider and for the delivery of

collected fees and payments to the sewer service provider.

permit a water service provider that provides consolidated billing

and collection of fees and payments to:

(1) terminate the water services of a person whose

sewage services account is in arrears for nonpayment; and

(2) charge a customer a reconnection fee if the

customer's water service is terminated for nonpayment of the

customer's sewage services account.

(d) A water service provider that provides consolidated

billing and collection of fees and payments may impose on each sewer

service provider customer a reasonable fee to recover costs

associated with providing consolidated billing and collection of

fees and payments for sewage services.

SECTION 2.07. Subchapter F, Chapter 13, Water Code, is

amended by adding Section 13.188 to read as follows:

Sec. 13.188. ADJUSTMENT FOR CHANGE IN ENERGY COSTS.

(a) Notwithstanding any other provision in this chapter, the

commission by rule shall adopt a procedure allowing a utility to

file with the commission an application to timely adjust the

utility's rates to reflect an increase or decrease in documented

energy costs in a pass through clause. The commission, by rule,

shall require the pass through of documented decreases in energy

costs within a reasonable time. The pass through, whether a

decrease or increase, shall be implemented on no later than an

annual basis, unless the commission determines a special

circumstance applies.

(b) Notwithstanding any other provision to the contrary,

this adjustment is an uncontested matter not subject to a contested

case hearing. However, the executive director shall hold an

uncontested public meeting:

(1) on the request of a member of the legislature who

represents the area served by the water and sewer utility; or

(2) if the executive director determines that there is

substantial public interest in the matter.

Section 13.187 does not apply.

SECTION 2.08. Section 13.2451, Water Code, is amended to

read as follows:

Sec. 13.2451. EXTENSION BEYOND EXTRATERRITORIAL

JURISDICTION. (a) If [~~Except as provided by Subsection (b), if~~] a

municipality extends its extraterritorial jurisdiction to include

an area certificated to a retail public utility, the retail public

utility may continue and extend service in its area of public

convenience and necessity under the rights granted by its

certificate and this chapter.

(b) A municipality that seeks to extend a certificate of

public convenience and necessity beyond the municipality's

extraterritorial jurisdiction must ensure that the municipality

complies with Section 13.241 in relation to the area covered by the

portion of the certificate that extends beyond the municipality's

extraterritorial jurisdiction.

opportunity for a hearing, may decertify an area outside a

municipality's extraterritorial jurisdiction if the municipality

does not provide service to the area on or before the fifth

anniversary of the date the certificate of public convenience and

necessity was granted for the area. This subsection does not apply

to a certificate of public convenience and necessity for an area:

(1) that was transferred to a municipality on approval

of the commission; and

(2) in relation to which the municipality has spent

public funds.

(d) To the extent of a conflict between this section and

Section 13.245, Section 13.245 prevails [~~The commission may not~~

~~extend a municipality's certificate of public convenience and~~

~~necessity beyond its extraterritorial jurisdiction without the~~

~~written consent of the landowner who owns the property in which the~~

~~certificate is to be extended. The portion of any certificate of~~

~~public convenience and necessity that extends beyond the~~

~~extraterritorial jurisdiction of the municipality without the~~

~~consent of the landowner is void~~].

SECTION 2.09. Subsection (a-1), Section 13.246, Water Code,

is amended to read as follows:

(a-1) Except as otherwise provided by this subsection, in

addition to the notice required by Subsection (a), the commission

shall require notice to be mailed to each owner of a tract of land

that is at least 25 [50] acres and is wholly or partially included

in the area proposed to be certified. Notice required under this

subsection must be mailed by first class mail to the owner of the

tract according to the most current tax appraisal rolls of the

applicable central appraisal district at the time the commission

received the application for the certificate or amendment. Good

faith efforts to comply with the requirements of this subsection

shall be considered adequate notice to landowners. Notice under

this subsection is not required for a matter filed with the

commission under:

(1) Section 13.248 or 13.255; or

(2) Chapter 65.

SECTION 2.10. 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

control, weather modification, regionalization, and projects

providing regional water quality enhancement services as defined by

board rule, including regional conveyance systems.

SECTION 2.11. Subchapter Q, Chapter 15, Water Code, is

amended by adding Section 15.9751 to read as follows:

Sec. 15.9751. PRIORITY FOR WATER CONSERVATION. The board

shall give priority to applications for funds for the

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 16.017, Water Code, is amended to

read as follows:

Sec. 16.017. TOPOGRAPHIC AND GEOLOGIC MAPPING. (a) The

executive administrator shall carry out the program for topographic

and geologic mapping of the state.

(b) The executive administrator shall operate as part of the

Texas Natural Resources Information System a strategic mapping

program to acquire, store, and distribute digital, geospatial

information.

SECTION 2.13. Subchapter B, Chapter 16, Water Code, is

amended by adding Sections 16.023 and 16.024 to read as follows:

Sec. 16.023. STRATEGIC MAPPING ACCOUNT. (a) The strategic

mapping account is an account in the general revenue fund. The

account consists of:

(1) money directly appropriated to the board;

(2) money transferred by the board from other funds

available to the board;

(3) money from gifts or grants from the United States

government, state, regional, or local governments, educational

institutions, private sources, or other sources;

(4) proceeds from the sale of maps, data,

publications, and other items; and

(5) interest earned on the investment of money in the

account and depository interest allocable to the account.

(b) The account may be appropriated only to the board to:

(1) develop, administer, and implement the strategic

mapping program;

(2) provide grants to political subdivisions for

projects related to the development, use, and dissemination of

digital, geospatial information; and

(3) administer, implement, and operate other programs

of the Texas Natural Resources Information System, including:

(A) the operation of a Texas-Mexico border region

information center for the purpose of implementing Section 16.021

(e)(5);

(B) the acquisition, storage, and distribution

of historical maps, photographs, and paper map products;

information technology; and

(D) the production, storage, and distribution of

other digital base maps, as determined by the executive

administrator or a state agency that is a member of the Texas

Geographic Information Council.

investment of any available money in the fund as provided by law for

the investment of money under Section 404.024, Government Code.

Sec. 16.024. FINANCIAL ASSISTANCE FOR DIGITAL, GEOSPATIAL

INFORMATION PROJECTS. (a) A political subdivision seeking a grant

under Section 16.023 must file an application with the board.

(b) An application must be filed in the manner and form

required by board rules.

for a grant, the board shall consider:

(1) the degree to which the political subdivision has

used other available resources to finance the development, use, and

dissemination of digital, geospatial information;

(2) the willingness and ability of the political

subdivision to develop, use, and disseminate digital, geospatial

information; and

(3) the benefits that will be gained by making the

grant.

(d) The board may approve a grant to a political subdivision

only if the board finds that:

(1) the grant will supplement rather than replace

money of the political subdivision;

(2) the public interest is served by providing the

grant; and

(3) the grant will further the state's ability to

gather, develop, use, and disseminate digital, geospatial

information.

SECTION 2.14. Subsection (h), Section 16.053, Water Code,

is amended by adding Subdivisions (10) and (11) to read as follows:

(10) The regional water planning group may amend the

regional water plan after the plan has been approved by the board.

Subdivisions (1)-(9) apply to an amendment to the plan in the same

manner as those subdivisions apply to the plan.

(11) This subdivision applies only to an amendment to

a regional water plan approved by the board. This subdivision does

not apply to the adoption of a subsequent regional water plan for

submission to the board as required by Subsection (i).

Notwithstanding Subdivision (10), the regional water planning

group may amend the plan in the manner provided by this subdivision

if the executive administrator makes a written determination that

the proposed amendment qualifies for adoption in the manner

provided by this subdivision before the regional water planning

group votes on adoption of the amendment. A proposed amendment

qualifies for adoption in the manner provided by this subdivision

only if the amendment is a minor amendment, as defined by board

rules, 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 a proposed 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 proposed 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 proposed

amendment at the meeting.

SECTION 2.15. Subsection (r), Section 16.053, Water Code,

as added by Chapter 1097, Acts of the 79th Legislature, Regular

Session, 2005, is amended to read as follows:

(r) The board by rule shall provide for reasonable

flexibility to allow for a timely amendment of a regional water

plan, the board's approval of an amended regional water plan, and

the amendment of the state water plan. If an amendment under this

subsection is[,] to facilitate planning for water supplies

reasonably required for a clean coal project, as defined by Section

5.001, the[~~. The~~] rules may allow for amending a regional water

plan without providing notice and without a public meeting or

hearing under Subsection (h) if the amendment does not:

(1) significantly change the regional water plan, as

reasonably determined by the board; or

(2) adversely affect other water management

strategies in the regional water plan.

SECTION 2.16. Subchapter E, Chapter 16, Water Code, is

amended by adding Section 16.1311 to read as follows:

Sec. 16.1311. PRIORITY FOR WATER CONSERVATION. 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 2.17. Sections 16.315 and 16.319, Water Code, are

amended to read as follows:

Sec. 16.315. POLITICAL SUBDIVISIONS; COMPLIANCE WITH

FEDERAL REQUIREMENTS. All political subdivisions are hereby

authorized to take all necessary and reasonable actions that are

not less stringent than [~~to comply with~~] the requirements and

criteria of the National Flood Insurance Program, including but not

limited to:

(1) making appropriate land use adjustments to

constrict the development of land which is exposed to flood damage

and minimize damage caused by flood losses;

(2) guiding the development of proposed future

construction, where practicable, away from a location which is

threatened by flood hazards;

(3) assisting in minimizing damage caused by floods;

(4) authorizing and engaging in continuing studies of

flood hazards in order to facilitate a constant reappraisal of the

flood insurance program and its effect on land use requirements;

(5) engaging in floodplain management, [~~and~~] adopting

and enforcing permanent land use and control measures that are not

less stringent than those [~~consistent with the criteria~~]

established under the National Flood Insurance Act, and providing

for the imposition of penalties on landowners who violate this

subchapter or rules adopted or orders issued under this subchapter;

(6) declaring property, when such is the case, to be in

violation of local laws, regulations, or ordinances which are

intended to discourage or otherwise restrict land development or

occupancy in flood-prone areas and notifying the director, or

whomever the director designates, of such property;

(7) consulting with, giving information to, and

entering into agreements with the Federal Emergency Management

Agency for the purpose of:

(A) identifying and publishing information with

respect to all flood areas, including coastal areas; and

(B) establishing flood-risk zones in all such

areas and making estimates with respect to the rates of probable

flood-caused loss for the various flood-risk zones for each of

these areas;

(8) cooperating with the director's studies and

investigations with respect to the adequacy of local measures in

flood-prone areas as to land management and use, flood control,

flood zoning, and flood damage prevention;

(9) taking steps, using regional, watershed, and

multi-objective approaches, to improve the long-range management

and use of flood-prone areas;

(10) purchasing, leasing, and receiving property from

the director when such property is owned by the federal government

and lies within the boundaries of the political subdivision

pursuant to agreements with the Federal Emergency Management Agency

or other appropriate legal representative of the United States

Government;

(11) requesting aid pursuant to the entire

authorization from the commission;

(12) satisfying criteria adopted and promulgated by

the commission pursuant to the National Flood Insurance Program;

(13) adopting permanent land use and control measures

with enforcement provisions that are not less stringent than [~~which~~

~~are consistent with~~] the criteria for land management and use

adopted by the director;

(14) adopting more comprehensive floodplain

management rules that the political subdivision determines are

necessary for planning and appropriate to protect public health and

safety;

(15) participating in floodplain management and

mitigation initiatives such as the National Flood Insurance

Program's Community Rating System, Project Impact, or other

initiatives developed by federal, state, or local government; and

(16) collecting reasonable fees to cover the cost of

administering a local floodplain management program.

Sec. 16.319. QUALIFICATION. Political subdivisions

wishing to qualify under the National Flood Insurance Program shall

have the authority to do so by complying with the directions of the

Federal Emergency Management Agency and by:

(1) evidencing to the director a positive interest in

securing flood insurance coverage under the National Flood

Insurance Program; and

(2) giving to the director satisfactory assurance that

measures will have been adopted for the political subdivision that

[~~which measures~~] will be not less stringent than [~~consistent with~~]

the comprehensive criteria for land management and use developed by

the Federal Emergency Management Agency.

SECTION 2.18. 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.

conservation plan and annual report to determine compliance with

the minimum requirements established by Section 11.1271 and the

submission deadlines developed under Subsection (e) of this

section.

(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 annual reports required by Subsection

(b); and

(2) providing for the enforcement of this section and

rules adopted under this section.

SECTION 2.19. 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 2.20. Chapter 35, Water Code, is amended by adding

Section 35.020 to read as follows:

Sec. 35.020. PUBLIC PARTICIPATION IN GROUNDWATER

MANAGEMENT PROCESS. It is the policy of the state to encourage

public participation in the groundwater management process in areas

within a groundwater management area not represented by a

groundwater conservation district.

SECTION 2.21. Subsection (d), Section 36.113, Water Code,

is amended to read as follows:

(d) Before granting or denying a permit or permit amendment,

the district shall consider whether:

(1) the application conforms to the requirements

prescribed by this chapter and is accompanied by the prescribed

fees;

(2) the proposed use of water unreasonably affects

existing groundwater and surface water resources or existing permit

holders;

(3) the proposed use of water is dedicated to any

beneficial use;

(4) the proposed use of water is consistent with the

district's certified water management plan;

(5) if the well will be located in the Hill Country

Priority Groundwater Management Area, the proposed use of water

from the well is wholly or partly to provide water to a pond, lake,

or reservoir to enhance the appearance of the landscape;

(6) the applicant has agreed to avoid waste and

achieve water conservation; and

(7) [~~(6)~~] the applicant has agreed that reasonable

diligence will be used to protect groundwater quality and that the

applicant will follow well plugging guidelines at the time of well

closure.

SECTION 2.22. Subsection (d), Section 36.117, Water Code,

is amended to read as follows:

(d) Notwithstanding Subsection (b), a district may require

a well to be permitted by the district and to comply with all

district rules if:

(1) the withdrawals from a well in the Hill Country

Priority Groundwater Management Area and exempted under Subsection

(b)(1) are no longer used solely for domestic use or to provide

water for livestock or poultry;

(2) the purpose of a well exempted under Subsection

(b)(2) is no longer solely to supply water for a rig that is

actively engaged in drilling or exploration operations for an oil

or gas well permitted by the Railroad Commission of Texas; or

(3) [~~(2)~~] the withdrawals from a well exempted under

Subsection (b)(3) are no longer necessary for mining activities or

are greater than the amount necessary for mining activities

specified in the permit issued by the Railroad Commission of Texas

under Chapter 134, Natural Resources Code.

SECTION 2.23. Subchapter H, Chapter 49, Water Code, is

amended by adding Section 49.2205 to read as follows:

Sec. 49.2205. USE OF RIGHT-OF-WAY EASEMENTS FOR CERTAIN

ENERGY-RELATED PURPOSES. (a) To foster the generation and

transmission of electricity from clean coal projects, as defined by

Section 5.001, renewable energy technology projects, and the

capture and storage of carbon dioxide and other greenhouse gases, a

district or water supply corporation may allow others to construct,

maintain, and operate transmission lines and pipelines over, under,

across, on, or along rights-of-way and easements of the district or

water supply corporation for transmission of electricity generated

by those projects and the transportation of carbon dioxide and

other greenhouse gases, unless the use:

(1) is incompatible with the public use for which the

easement was acquired or condemned; or

(2) compromises public health or safety.

(b) The district or water supply corporation is not required

to obtain additional consideration for the construction,

maintenance, and operation of the transmission lines and pipelines

under this section if the person constructing, maintaining, and

operating the transmission lines and pipelines bears all costs of

the construction, maintenance, and operation of the transmission

lines and pipelines and restoring the property. The activities

authorized by this subsection may be exercised only with the

consent of and subject to the direction of the governing body of the

district or water supply corporation.

a right-of-way easement on real property for a public use may

include in the notice of the acquisition a statement that to foster

the generation and transmission of electricity from clean coal

projects as defined by Section 5.001, Water Code, renewable energy

technology projects, and the capture and storage of carbon dioxide

and other greenhouse gases, water districts and water supply

corporations may allow others to construct, maintain, and operate

transmission lines and pipelines over, under, across, on, or along

the rights-of-way and easements for the transmission of electricity

that is generated by those projects and transportation of carbon

dioxide and other greenhouse gases, unless the use:

(1) is incompatible with the public use for which the

easement was acquired or condemned; or

(2) compromises public health or safety.

(d) This section applies only to a right-of-way or easement

acquired by the district or water supply corporation on or after

September 1, 2007.

(e) This section does not apply to a right-of-way or

easement that is used for the transmission of electricity without

the consent of a person owning the transmission lines if that use

began before September 1, 2007.

SECTION 2.24. Chapter 49, Water Code, is amended by adding

Subchapter O to read as follows:

SUBCHAPTER O. EFFECT OF SUBDIVISION OF NONAGRICULTURAL LAND ON

WATER RIGHTS

Sec. 49.501. DEFINITION. In this subchapter, "municipal

water supplier" means a municipality or a water supply corporation.

Sec. 49.502. APPLICABILITY. This subchapter applies only

to a district, other than a drainage district, located wholly or

partly in a county:

(1) that borders the Gulf of Mexico and the United

Mexican States; or

(2) that is adjacent to a county described by

Subdivision (1).

Sec. 49.503. PETITION BY MUNICIPAL WATER SUPPLIER TO

CONVERT WATER USE AFTER SUBDIVISION. (a) This section applies

only to land:

(1) that is:

(A) subdivided into town lots or blocks or small

parcels of the same general nature as town lots or blocks;

(B) designed, intended, or suitable for

residential or other nonagricultural purposes, including streets,

alleys, parkways, parks, detention or retention ponds, and railroad

property and rights-of-way; or

requirements of a governmental entity authorized to require a

recorded plat of subdivided lands;

(2) that is in a subdivision for which a plat or map

has been filed and recorded in the office of the county clerk of

each county in which the subdivision is wholly or partly located;

and

(3) that is or was assessed as flat rate irrigable

property in the municipal water supplier's certificated service

area or its corporate area.

(b) A municipal water supplier that serves land described by

Subsection (a) may petition the district in accordance with this

section to convert the proportionate irrigation water right to the

Rio Grande from irrigation use to municipal use with municipal

priority of allocation under commission rules, for the use and

benefit of the municipal water supplier.

the district not later than January 1 after the expiration of two

years after the date the plat or map was recorded under Subsection

(a). The district shall consider the petition not later than

January 31 of the year following the year in which the petition was

filed.

(d) The petition must identify by subdivision name or other

sufficient description the land that the municipal water supplier

supplies or has the right to supply potable water.

(e) This section applies only to one subdivision of the land

recorded under Subsection (a). This section does not apply to any

further subdivision of the same property.

Sec. 49.504. EFFECT OF MUNICIPAL WATER SUPPLIER'S FAILURE

TO FILE A PETITION. (a) If a municipal water supplier does not

file a petition under Section 49.503, the district may retain the

water rights for use by the district or may declare the water as

excess and contract for the sale or use of the water as determined

by the district.

(b) Before a district may contract for the sale or use of

water for more than one year with a purchaser located outside of a

county described by Section 49.502, the district must, for 90 days:

(1) make the water available under the same terms to

all municipal water suppliers located in those counties; and

(2) advertise the offer to sell or contract for the use

of the water by posting notice on:

(A) any website of the Rio Grande Watermaster's

Office;

(B) any website of the Rio Grande Regional Water

Authority; and

board meetings at the district's office.

district posted notice, a municipal water supplier in a county

described by Section 49.502 has not contracted with the district

for the sale or use of the water, the district may contract with any

other person for the sale or use of the water under the terms of the

offer advertised under Subsection (b).

Sec. 49.505. CALCULATION OF PROPORTIONATE WATER RIGHTS. A

district that receives a petition under Section 49.503 shall

compute the proportionate amount of water rights to the Rio Grande.

The proportionate amount of water rights is equal to the amount of

irrigable acres of land in the subdivision multiplied by the lesser

of:

(1) 1.25 acre-feet per irrigable acre; or

(2) the sum of all irrigation water rights owned by the

district on September 1, 2007, as if the water rights had been

converted to municipal use under applicable commission rules,

divided by the total amount of irrigable acres of land in the

district on September 1, 2007.

Sec. 49.506. PROVISION OR CONVERSION OF PROPORTIONATE WATER

RIGHTS BY DISTRICT. (a) Not later than the second anniversary of

the date the municipal water supplier files a petition under

Section 49.503:

(1) a district shall provide the municipal water

supplier with the proportionate water rights described by Section

49.505 from the district's existing water rights; or

(2) a district shall, if the district does not have

sufficient existing water rights:

(A) apply for appropriate amendments to the

district's water rights under commission rules to convert the

proportionate water rights from irrigation use to municipal use

with municipal priority of allocation; and

(B) provide to the municipal water supplier the

converted rights described by Section 49.505.

(b) The district may continue to use the irrigation use

water for district purposes until:

(1) the commission approves the amendment to the

district's water rights; or

(2) the water is otherwise provided to the municipal

water supplier.

under Subsection (a)(2) shall provide the municipal water supplier

with an estimate of the district's reasonable costs for the

administrative proceedings. The district is not required to begin

the proceedings until the municipal water supplier deposits the

amount of the estimate with the district. The municipal water

supplier shall pay the district any reasonable costs that exceed

the estimate. The district shall refund the balance of the deposit

if the actual cost is less than the estimate.

Sec. 49.507. CONTRACT TO PURCHASE PROPORTIONATE WATER

RIGHTS; WATER RIGHTS SALE CONTRACT. (a) A municipal water

supplier may contract to purchase the proportionate water rights

described by Section 49.505.

(b) The purchase price may not exceed 68 percent of the

current market value, as determined under Section 49.509, for the

year that the municipal water supplier petitions the district.

"Water Rights Sales Contract."

(d) The contract must include the purchase price for the

water rights or, if the consideration for the sale is not monetary,

the terms of the sale.

(e) The municipal water supplier shall file the contract

with the Rio Grande watermaster not later than the 10th day after

the date the contract is executed.

(f) The municipal water supplier shall pay the purchase

price when the proportionate amount of water rights is made

available to the municipal water supplier.

Sec. 49.508. CONTRACT TO USE PROPORTIONATE WATER RIGHTS;

WATER SUPPLY CONTRACT. (a) A municipal water supplier may

contract to use water associated with the proportionate water

rights described by Section 49.505.

(b) The contract must be for at least 40 years.

use water is based on an amount for one acre-foot of municipal use

water with a municipal use priority of allocation and may not exceed

the sum of:

(1) an amount equal to the district's annual flat rate

charge per assessed acre; and

(2) the equivalent of the charge for four irrigations

per flat rate acre of irrigable property in the district.

(d) The parties to the contract shall agree on the terms of

payment of the contract price.

(e) The board periodically shall determine the flat rate

charge and irrigation per acre charge described by Subsection (c).

(f) The contract must be in writing in a document entitled

"Water Supply Contract." The contract may contain any terms to

which the parties agree.

(g) The municipal water supplier shall file the contract

with the Rio Grande watermaster not later than the 10th day after

the date the contract is executed.

Sec. 49.509. DUTY OF RIO GRANDE REGIONAL WATER AUTHORITY TO

CALCULATE CURRENT MARKET VALUE. (a) The Rio Grande Regional Water

Authority annually at its January meeting shall calculate the

current market value by using the average price per acre-foot of

municipal use water after conversion from irrigation use water to

municipal use water with a municipal priority of allocation under

commission rules of the last three purchases involving:

(1) a municipal water supplier;

(2) a party other than a municipal water supplier; and

(3) at least 100 acre-feet of municipal use water,

with municipal priority of allocation.

(b) The Rio Grande Regional Water Authority shall use

information from the water rights sales contracts reported to the

Rio Grande Watermaster's Office to calculate the current market

value.

calculation:

(1) without charging any of the parties involved; and

(2) using 100 percent of the value of monetary

exchanges, not in-kind exchanges.

Sec. 49.510. ACCOUNTING FOR SALE OF WATER RIGHTS. A

district shall maintain an accounting of money received from the

sale of water rights under this subchapter.

Sec. 49.511. CAPITAL IMPROVEMENTS. A district shall

designate at least 75 percent of the proceeds from the sale of water

rights for capital improvements in the district.

Sec. 49.512. MAP OF SERVICE AREA. (a) In this section,

"outer boundaries of a district" means district boundaries without

considering any exclusion of land from inside the district.

(b) Each municipal water supplier that has a certificate of

convenience and necessity service area in the outer boundaries of a

district shall file a map of the service area with the district.

forward the map to the district when changes are made.

(d) A district periodically shall provide to a municipal

water supplier that serves territory in the district a copy of the

district's map showing the outer boundaries of the district.

(e) A district may request from a municipal water supplier a

map of the municipal water supplier's service area, and a municipal

water supplier may request from the district a map of the district's

outer boundaries. On request, the district and a municipal water

supplier shall provide the map free of charge to each other at least

one time each year. If the district or municipal water supplier

receives more than one request a year for a map, the district or

municipal water supplier may charge a reasonable fee for the map.

SECTION 2.25. Subchapter Z, Chapter 51, Education Code, is

amended by adding Section 51.969 to read as follows:

Sec. 51.969. ON-SITE RECLAIMED SYSTEM TECHNOLOGIES

CURRICULUM. The Texas Higher Education Coordinating Board shall

encourage each institution of higher education to develop

curriculum and provide related instruction regarding on-site

reclaimed system technologies, including rainwater harvesting,

condensate collection, or cooling tower blow down.

SECTION 2.26. Chapter 68, Education Code, is amended by

adding Subchapter B to read as follows:

SUBCHAPTER B. POWERS AND DUTIES OF BOARD

Sec. 68.21. SUSTAINABLE WATER SUPPLY RESEARCH CENTER.

(a) In this section, "center" means the Sustainable Water Supply

Research Center.

(b) The board may establish and operate the Sustainable

Water Supply Research Center as part of The University of Texas at

Arlington.

(1) conduct, sponsor, or direct multidisciplinary

research directed toward:

(A) promoting water conservation through

development of a sustainable water supply for this state; and

(B) mitigating the effect of diminishing water

supplies on the economy and people of this state; and

(2) conduct a comprehensive, interdisciplinary

instructional program in water conservation with emphasis on

development of a sustainable water supply at the graduate level and

offer undergraduate courses for students interested in water

conservation and sustainable water supply development.

(d) The organization, control, and management of the center

are vested in the board.

(e) The center may enter into an agreement or may cooperate

with a public or private entity to perform the research functions of

the center.

(f) The board may solicit, accept, and administer gifts and

grants from any public or private source for the use and benefit of

the center.

SECTION 2.27. Section 447.004, Government Code, is amended

by adding Subsection (c-1) to read as follows:

(c-1) The procedural standards adopted under this section

must require that on-site reclaimed system technologies, including

rainwater harvesting, condensate collection, or cooling tower blow

down, or a combination of those system technologies, for nonpotable

indoor use and landscape watering be incorporated into the design

and construction of:

(1) each new state building with a roof measuring at

least 10,000 square feet; and

(2) any other new state building for which the

incorporation of such systems is feasible.

SECTION 2.28. Section 341.042, Health and Safety Code, is

amended to read as follows:

Sec. 341.042. STANDARDS FOR HARVESTED RAINWATER. (a) The

commission shall establish recommended standards relating to the

domestic use of harvested rainwater, including health and safety

standards for treatment and collection methods for harvested

rainwater intended for drinking, cooking, or bathing.

(b) The commission by rule shall provide that if a structure

is connected to a public water supply system and has a rainwater

harvesting system for indoor use:

(1) the structure must have appropriate

cross-connection safeguards; and

(2) the rainwater harvesting system may be used only

for nonpotable indoor purposes.

chapter governing public drinking water supply systems do not apply

to a person:

(1) who harvests rainwater for domestic use; and

(2) whose property is not connected to a public

drinking water supply system.

SECTION 2.29. 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 2.30. 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 2.31. Chapter 401, Local Government Code, is

amended by adding Section 401.006 to read as follows:

Sec. 401.006. WATER CONSERVATION BY HOME-RULE

MUNICIPALITY. A home-rule municipality may adopt and enforce

ordinances requiring water conservation in the municipality and by

customers of the municipality's municipally owned water and sewer

utility in the extraterritorial jurisdiction of the municipality.

SECTION 2.32. Subchapter Z, Chapter 402, Local Government

Code, is amended by adding Section 402.911 to read as follows:

Sec. 402.911. DUTIES OF WATER SERVICE PROVIDER TO AN AREA

SERVED BY SEWER SERVICE OF CERTAIN POLITICAL SUBDIVISIONS.

(a) This section applies only to an area:

(1) that is located in a county that has a population

of more than 1.3 million; and

(2) in which a customer's sewer service is provided by

a municipality or conservation and reclamation district that also

provides water service to other customers and the same customer's

water service is provided by another entity.

(b) For each person the water service provider serves in an

area to which this section applies, the water service provider

shall provide the municipality or district with any relevant

customer information so that the municipality or district may bill

users of the sewer service directly and verify the water

consumption of users. Relevant customer information provided under

this section includes the name, address, and telephone number of

the customer of the water service provider, the monthly meter

readings of the customer, monthly consumption information,

including any billing adjustments, and certain meter information,

such as brand, model, age, and location.

service provider for its reasonable and actual incremental costs

for providing services to the municipality or district under this

section. Incremental costs are limited to only those costs that are

in addition to the water service provider's costs in providing its

services to its customers, and those costs must be consistent with

the costs incurred by other water utility providers. Only if

requested by the wastewater provider, the water service provider

must provide the municipality or district with documentation

certified by a certified public accountant of the reasonable and

actual incremental costs for providing services to the municipality

or district under this section.

(d) A municipality or conservation and reclamation district

may provide written notice to a person to whom the municipality's or

district's sewer service system provides service if the person has

failed to pay for the service for more than 90 days. The notice must

state the past due amount owed and the deadline by which the past

due amount must be paid or the person will lose water service. The

notice may be sent by mail or hand-delivered to the location at

which the sewer service is provided.

(e) The municipality or district may notify the water

service provider of a person who fails to make timely payment after

the person receives notice under Subsection (d). The notice must

indicate the number of days the person has failed to pay for sewer

service and the total amount past due. On receipt of the notice,

the water service provider shall discontinue water service to the

person.

(f) This section does not apply to a nonprofit water supply

or sewer service corporation created under Chapter 67, Water Code,

or a district created under Chapter 65, Water Code.

SECTION 2.33. Section 430.003, Local Government Code, is

amended to read as follows:

Sec. 430.003. EXEMPTIONS OF CERTAIN [~~STATE~~] PROPERTY FROM

INFRASTRUCTURE FEES. No county, municipality, or utility district

may collect from a state agency or a public or private institution

of higher education any fee charged for the development or

maintenance of programs or [of] facilities for the control of

excess water or storm water.

SECTION 2.34. Section 1903.053, Occupations Code, is

amended to read as follows:

Sec. 1903.053. STANDARDS. (a) The commission shall adopt

by rule and enforce standards governing:

(1) the connection of irrigation systems to any water

supply;

(2) the design, installation, and operation of

irrigation systems;

(3) water conservation; and

(4) the duties and responsibilities of licensed

irrigators.

(b) [~~The commission may adopt standards for irrigation that~~

~~include water conservation, irrigation system design and~~

~~installation, and compliance with municipal codes.~~

[~~(c)~~] The commission may not require or prohibit the use of

any irrigation system, component part, or equipment of any

particular brand or manufacturer.

commission shall consult the council.

SECTION 2.35. (a) In this section, "board" means the Texas

Water Development Board.

(b) The board, in coordination with the Far West Texas

Regional Water Planning Group established pursuant to Section

16.053, Water Code, shall conduct a study regarding the possible

impact of climate change on surface water supplies from the Rio

Grande.

conference within the Far West Texas regional water planning area

designated pursuant to Section 16.053, Water Code, to review:

(1) any analysis conducted by a state located to the

west of this state regarding the impact of climate change on surface

water supplies in that state;

(2) any other current analysis of potential impacts of

climate change on surface water resources; and

(3) recommendations for incorporation of potential

impacts of climate change into the Far West Texas Regional Water

Plan, including potential impacts to the Rio Grande in Texas

subject to the Rio Grande Compact and identification of feasible

water management strategies to offset any potential impacts.

(d) The conference should include, but not be limited to,

the participation of representatives of:

(1) the Far West Texas Regional Water Planning Group;

(2) water authorities;

(3) industrial customers;

(4) agricultural interests;

(5) municipalities;

(6) fishing or recreational interests;

(7) environmental advocacy organizations; and

(8) institutions of higher education.

(e) Not later than December 31, 2008, the board shall submit

to the legislature a written report regarding the study findings

under this section.

SECTION 2.36. (a) Chapter 9, Water Code, is repealed.

(b) The Texas Water Advisory Council is abolished on the

effective date of this article.

SECTION 2.37. Chapter 64, Water Code, is repealed.

SECTION 2.38. As soon as practicable on or after the

effective date of this article, the Texas Water Development Board

shall appoint the initial members of the Water Conservation

Advisory Council, as required by Section 10.003, Water Code, as

added by this article. In making the initial appointments, the

board shall designate seven members to serve terms expiring August

31, 2009, eight members to serve terms expiring August 31, 2011, and

eight members to serve terms expiring August 31, 2013.

SECTION 2.39. The changes made by this Act to Section

13.2451, Water Code, apply only to:

(1) an application for a certificate of public

convenience and necessity or for an amendment to a certificate of

public convenience and necessity submitted to the Texas Commission

on Environmental Quality on or after the effective date of this Act;

(2) a proceeding to amend or revoke a certificate of

public convenience and necessity initiated on or after the

effective date of this Act;

(3) a certificate of public convenience and necessity

issued to a municipality, regardless of the date the certificate

was issued;

(4) an application by a municipality or by a utility

owned by a municipality for a certificate of public convenience and

necessity or for an amendment to a certificate, regardless of the

date the application was filed; and

(5) a proceeding to amend or revoke a certificate of

public convenience and necessity held by a municipality or by a

utility owned by a municipality, regardless of the date the

proceeding was initiated.

SECTION 2.40. Sections 15.102 and 17.125, Water Code, as

amended by this article, and Sections 15.9751 and 16.1311, Water

Code, as added by this article, apply only to an application for

financial assistance filed with the Texas Water Development Board

on or after the effective date of this article. An application for

financial assistance filed before the effective date of this

article 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 2.41. The change in law made by Subchapter O,

Chapter 49, Water Code, as added by this Act, applies only to a

subdivision for which a plat or map has been recorded in the office

of the county clerk of a county on or after the effective date of

this Act. A subdivision for which a plat or map was recorded before

the effective date of this Act is covered by the law in effect on the

date the plat or map was recorded, and the former law is continued

in effect for that purpose.

SECTION 2.42. Not later than June 1, 2008, the Texas

Commission on Environmental Quality shall adopt standards as

required by Section 1903.053, Occupations Code, as amended by this

article, to take effect January 1, 2009.

SECTION 2.43. Section 2.27 of this article, adding

Subsection (c-1), Section 447.004, Government Code, takes effect

September 1, 2009.

ARTICLE 3. CONSTRUCTION AND OPERATION OF RESERVOIRS

SECTION 3.01. Section 16.051, Water Code, is amended by

adding Subsection (i) to read as follows:

(i) For purposes of this section, the acquisition of fee

title or an easement by a political subdivision for the purpose of

providing retail public utility service to property in the

reservoir site or allowing an owner of property in the reservoir

site to improve or develop the property may not be considered a

significant impairment that prevents the construction of a

reservoir site under Subsection (g). A fee title or easement

acquired under this subsection may not be considered the basis for

preventing the future acquisition of land needed to construct a

reservoir on a designated site.

SECTION 3.02. Subchapter E, Chapter 16, Water Code, is

amended by adding Sections 16.143 and 16.144 to read as follows:

Sec. 16.143. OPTION TO LEASE. (a) A former owner of real

property used for agricultural purposes that was acquired,

voluntarily or through the exercise of the power of eminent domain,

for a reservoir whose site has been designated as unique for the

construction of a reservoir under Section 16.051(g) is entitled to

lease the property from the person who acquired the property under

terms that allow the former owner to continue to use the property

for agricultural purposes until the person who acquired the

property determines that such use must be terminated to allow for

the physical construction of the reservoir. Consistent with

Subsection (b), the lease is subject to the terms and conditions set

forth by the person who has acquired the property that are related

to the use of the property by the former owner, including the term

of the lease, the rent the former owner is required to pay under the

lease, and the uses that may be allowed on the property during the

term of the lease.

(b) A former owner of real property used for agricultural

purposes is entitled to lease the property for the property's

agricultural rental value until the person who acquired the

property determines that the lease must be terminated to allow for

the physical construction of the reservoir.

Sec. 16.144. ENVIRONMENTAL MITIGATION. (a) If a person

proposing to construct a reservoir whose site has been designated

as unique for the construction of a reservoir under Section

16.051(g) is required to mitigate future adverse environmental

effects arising from the construction or operation of the reservoir

or its related facilities, the person shall, if authorized by the

applicable regulatory authority, attempt to mitigate those effects

by offering to contract with and pay an amount of money to an owner

of real property located outside of the reservoir site to maintain

the property through an easement instead of acquiring the fee

simple title to the property for that purpose.

(b) An owner of real property may reject an offer made under

Subsection (a). If agreement on the terms of an easement under

Subsection (a) cannot be reached by the parties after a good faith

attempt and offer is made, then the party constructing the

reservoir may obtain fee title to the property through voluntary or

involuntary means.

ARTICLE 4. UNIQUE RESERVOIR SITES AND SITES OF UNIQUE ECOLOGICAL

VALUE

SECTION 4.01. Section 16.051, Water Code, is amended by

adding Subsection (g-1) to read as follows:

(g-1) Notwithstanding any other provisions of law, a site is

considered to be a designated site of unique value for the

construction of a reservoir if the site is recommended for

designation in the 2007 state water plan adopted by the board and in

effect on May 1, 2007. The designation of a unique reservoir site

under this subsection terminates on September 1, 2015, unless there

is an affirmative vote by a proposed project sponsor to make

expenditures necessary in order to construct or file applications

for permits required in connection with the construction of the

reservoir under federal or state law.

SECTION 4.02. DESIGNATION OF SITES OF UNIQUE ECOLOGICAL

VALUE. The legislature, as authorized by Subsection (f), Section

16.051, Water Code, designates those river or stream segment sites

recommended in the 2007 state water plan as being of unique

ecological value.

SECTION 4.03. RESTRICTION ON ELIGIBILITY TO HOLD WATER

RIGHTS; LIABILITY FOR CONSTRUCTION, OPERATION, AND MAINTENANCE

COSTS. (a) This section applies only to the proposed Marvin

Nichols and Lake Fastrill reservoirs.

(b) The right to appropriate at least 20 percent of the

quantity of water that is authorized to be appropriated from each

proposed reservoir must be held by one or more entities located in

the regional water planning area in which the reservoir is to be

located.

water planning area in which a proposed reservoir is to be located

are to hold the right to appropriate a majority of the quantity of

water that is authorized to be appropriated from the reservoir,

that entity or those entities must pay all of the costs of

constructing, operating, and maintaining the reservoir until such

time as one or more entities located in the regional water planning

area in which the reservoir is to be located begins diverting water.

At such time, the entity or entities making a diversion shall pay a

pro-rata share of the cost of operating and maintaining the

reservoir.

SECTION 4.04. STUDY COMMISSION ON REGION C WATER SUPPLY.

(a) The Study Commission on Region C Water Supply is established.

The study commission consists of six members as follows:

(1) three members appointed by the Region C Regional

Water Planning Group; and

(2) three members appointed by the Region D Regional

Water Planning Group.

(b) A member of the study commission may be, but is not

required to be, a voting member of the regional water planning group

that appointed the member.

presiding officer from among the members.

(d) Members of the study commission are not entitled to

compensation for service on the study commission but may be

reimbursed for travel expenses incurred while conducting the

business of the study commission, as provided for in the General

Appropriations Act.

(e) The study commission shall:

(1) review the water supply alternatives available to

the Region C Regional Water Planning Area, including obtaining

additional water supply from Wright Patman Lake, Toledo Bend

Reservoir, Lake Texoma, Lake O' the Pines, other existing and

proposed reservoirs, and groundwater;

(2) in connection with the review under Subdivision

(1) of this subsection, analyze the socioeconomic effect on the

area where the water supply is located that would result from the

use of the water to meet the water needs of the Region C Regional

Water Planning Area, including:

(A) the effects on landowners, agricultural and

natural resources, businesses, industries, and taxing entities of

different water management strategies; and

(B) in connection with the use by the Region C

Regional Water Planning Area of water from Wright Patman Lake, the

effect on water availability in that lake and the effect on

industries relying on that water availability;

(3) determine whether water demand in the Region C

Regional Water Planning Area may be reduced through additional

conservation and reuse measures so as to postpone the need for

additional water supplies;

(4) evaluate measures that would need to be taken to

comply with the mitigation requirements of the United States Army

Corps of Engineers in connection with any proposed new reservoirs,

including identifying potential mitigation sites;

(5) consider whether the mitigation burden described

by Subdivision (4) of this subsection may be shared by the Regions C

and D Regional Water Planning Areas in proportion to the allocation

to each region of water in any proposed reservoir;

(6) review innovative methods of compensation to

affected property owners, including royalties for water stored on

acquired properties and annual payments to landowners for

properties acquired for the construction of a reservoir to satisfy

future water management strategies;

(7) evaluate the minimum number of surface acres

required for the construction of proposed reservoirs in order to

develop adequate water supply; and

(8) identify the locations of proposed reservoir sites

and proposed mitigation sites, as applicable, as selected in

accordance with existing state and federal law, in the Regions C and

D Regional Water Planning Areas using satellite imagery with

sufficient resolution to permit land ownership to be determined.

(f) The study commission may not be assisted by any person

that is a party to or is employed by a party to a contract to perform

engineering work with respect to site selection, permitting,

design, or construction of the proposed Marvin Nichols reservoir.

(g) The Texas Water Development Board, on request of the

study commission, may provide staff support or other assistance

necessary to enable the study commission to carry out its duties.

The Texas Water Development Board shall provide funding for the

study commission, including funding of any studies conducted by the

study commission, from the regional planning budget of the board.

(h) Not later than December 1, 2010, the study commission

shall deliver a report to the governor, lieutenant governor, and

speaker of the house of representatives that includes:

(1) any studies completed by the study commission;

(2) any legislation proposed by the study commission;

(3) a recommendation as to whether Marvin Nichols

should remain a designated reservoir site; and

(4) other findings and recommendations of the study

commission.

(i) The study commission is abolished and this section

expires December 31, 2011.

SECTION 4.05. EFFECTIVE DATE. This article takes effect

immediately if this Act receives a vote of two-thirds of all the

members elected to each house, as provided by Section 39, Article

III, Texas Constitution. If this Act does not receive the vote

necessary for immediate effect, this article takes effect September

1, 2007.

ARTICLE 5. LEGISLATIVE JOINT INTERIM COMMITTEE

SECTION 5.01. (a) In this section, "committee" means the

joint interim committee on state water funding.

(b) The committee is composed of eight members as follows:

(1) the chair of the Senate Committee on Natural

Resources and the chair of the House Committee on Natural Resources

who shall serve as joint chairs of the committee;

(2) three members of the senate appointed by the

lieutenant governor; and

(3) three members of the house of representatives

appointed by the speaker of the house of representatives.

pleasure of the appointing official.

(d) The committee shall meet at least annually with the

executive director of the Texas Commission on Environmental Quality

and the executive administrator of the Texas Water Development

Board to:

(1) receive information on water infrastructure needs

as identified in the state water plan;

(2) receive information on infrastructure cost and

funding options to be used by local entities to meet the needs

identified in the state water plan;

(3) receive analyses of the funding gap and

recommendations on how to address those funding needs;

(4) receive information on whether all water fees

assessed are sufficient to support the required regulatory

water-related state program functions and activities; and

(5) identify viable, sustainable, dedicated revenues

and fee sources, or increases to existing revenue and fees, to

support state water programs and to provide for natural resources

data collection and dissemination, financial assistance programs,

and water resources planning, including funding to implement water

management strategies in the state water plan.

(e) The committee may hold hearings and may request reports

and other information from state agencies as necessary to carry out

this section.

(f) The Senate Committee on Natural Resources and the House

Committee on Natural Resources shall provide staff necessary for

the committee to fulfill its duties.

(g) Not later than December 1, 2008, the committee shall

report to the governor, the lieutenant governor, and the speaker of

the house of representatives on the committee's activities under

Subsection (d) of this section. The report shall include

recommendations of any legislative action necessary to address

funding needs to support the state's water programs and water

infrastructure needs.

ARTICLE 6. WATER DEVELOPMENT BOARD

SECTION 6.01. Section 16.344, Water Code, is amended by

adding Subsections (d) through (i) to read as follows:

(d) Notwithstanding Section 16.343(g) or Section 16.350(a),

a political subdivision may temporarily continue to receive funds

under Subchapter K, Chapter 17, if the political subdivision

submits a request for temporary continuation of funding and the

board determines that:

(1) the political subdivision's initial funding

application and any amendments for a designated area were reviewed

and approved by the board before January 1, 2007;

(2) withholding funds would result in an undue

hardship for occupants of the property to be served by unreasonably

delaying the provision of adequate water or wastewater services;

(3) withholding funds would result in inefficient use

of local, state, or federal funds under the program;

(4) the political subdivision has committed to take

the necessary and appropriate actions to correct any deficiencies

in adoption or enforcement of the model rules within the time

designated by the board, but not later than the 90th day after the

date the board makes the determinations under this subsection;

(5) the political subdivision has sufficient

safeguards in place to prevent the proliferation of colonias; and

(6) during the 30 days after the date the board

receives a request under this subsection, the board, after

consulting with the attorney general, secretary of state, and

commission, has not received an objection from any of those

entities to the request for temporary continuation of funding.

(e) In applying Subsection (d) to applications for

increased financial assistance, the board shall only consider areas

that were included in the initial application, except that the

board may reconsider the eligibility of areas that were the subject

of a facility plan in the initial application and that may be

determined to be eligible based on criteria in effect September 1,

2005.

(f) The political subdivision shall take necessary and

appropriate actions to correct any deficiencies in its adoption and

enforcement of the model rules within the time period required by

the board, not to exceed the 90-day period described by Subsection

(d)(4), and provide evidence of compliance to the board. The board

shall discontinue funding unless the board makes a determination

based on the evidence provided that the political subdivision has

demonstrated sufficient compliance to continue funding.

(g) Except as provided by Subsections (d)-(f), if the board

determines that a county or city that is required to adopt and

enforce the model rules is not enforcing the model rules, the board

shall discontinue funding for all projects within the county or

city that are funded under Subchapter K, Chapter 17.

(h) The board may not accept or grant applications for

temporary funding under Subsection (d) after June 1, 2009.

(i) Subsections (d), (e), (f), (g), and (h) and this

subsection expire September 1, 2009.

ARTICLE 7. RATE CLASSES FOR BILLING

SECTION 7.01. Subchapter H, Chapter 49, Water Code, is

amended by adding Section 49.2122 to read as follows:

Sec. 49.2122. ESTABLISHMENT OF CUSTOMER CLASSES.

(a) Notwithstanding any other law, a district may establish

different charges, fees, rentals, or deposits among classes of

customers that are based on any factor the district considers

appropriate, including:

(1) the similarity of the type of customer to other

customers in the class, including:

(A) residential;

(B) commercial;

(D) apartment;

(E) rental housing;

(F) irrigation;

(G) homeowner associations;

(H) builder;

(I) out-of-district;

(J) nonprofit organization; and

(K) any other type of customer as determined by

the district;

(2) the type of services provided to the customer

class;

(3) the cost of facilities, operations, and

administrative services to provide service to a particular class of

customer, including additional costs to the district for security,

recreational facilities, or fire protection paid from other

revenues; and

(4) the total revenues, including ad valorem tax

revenues and connection fees, received by the district from a class

of customers relative to the cost of service to the class of

customers.

(b) A district is presumed to have weighed and considered

appropriate factors and to have properly established charges, fees,

rentals, and deposits absent a showing that the district acted

arbitrarily and capriciously.

ARTICLE 8. STUDY OF ROLE OF LAKE SOMERVILLE IN ECONOMIC DEVELOPMENT

SECTION 8.01. The legislature finds that:

(1) in 1954, the United States Congress authorized the

construction of Lake Somerville to provide flood control, water

conservation, and other beneficial uses for nearby areas;

subsequently, the United States Army Corps of Engineers began

reservoir construction in 1962 and began to impound water in 1967;

(2) straddling the borders of Burleson, Washington,

and Lee Counties, on Yegua Creek 20 river miles upstream from that

creek's confluence with the Brazos River, the lake has a storage

capacity of 337,700 acre-feet;

(3) operation of the lake is supervised by the Fort

Worth District of the United States Army Corps of Engineers; the

lake is one of nine federal reservoirs that are integrated into the

Brazos River Authority's basin-wide system and associated water

resource development master plan;

(4) the Brazos River Authority owns the stored water,

a source from which it furnishes supplies to the City of Brenham

according to a contract that was last renewed for a 10-year period

in 2003;

(5) also significantly involved in the region is the

Lower Colorado River Authority, which, from its diverse mix of

power plants, provides wholesale electricity to various

communities as well as offering them its economic research and

expertise;

(6) although Lake Somerville has long been a tourist

destination for fishing and other water recreation, the facility

has not fully effectuated the three-county economic impact that

originally was expected at the time that it was built; and

(7) a study of Lake Somerville's role in economic

development would assist in explaining why the lake has not yet had

that impact, beyond the tourism industry, and would help to

identify impediments that currently restrict its contribution as

well as strategies that would better maximize its economic

potential.

SECTION 8.02. The Brazos River Authority and the Lower

Colorado River Authority shall:

(1) conduct, with appropriate input from the public

and private sectors, a joint baseline study of the role of Lake

Somerville in the economic development of the surrounding vicinity;

and

(2) jointly submit a full report of their findings and

recommendations to the 81st Legislature when that legislature

convenes in January 2009.

ARTICLE 9. AGUA SPECIAL UTILITY DISTRICT

SECTION 9.01. The heading to Chapter 7201, Special District

Local Laws Code, is amended to read as follows:

CHAPTER 7201. AGUA [~~LA JOYA~~] SPECIAL UTILITY DISTRICT

SECTION 9.02. Section 7201.001, Special District Local Laws

Code, is amended by amending Subdivision (3) and adding Subdivision

(4) to read as follows:

(3) "Director" means a member of the board.

(4) "District" means the Agua [~~La Joya~~] Special

Utility District.

SECTION 9.03. Subsection (c), Section 7201.002, Special

District Local Laws Code, is amended to read as follows:

~~chapter, the~~] corporation shall be dissolved and succeeded without

interruption by the district as provided by Subchapter A1.

SECTION 9.04. Section 7201.005, Special District Local Laws

Code, is amended by amending Subsections (a) and (b) and adding

Subsection (d) to read as follows:

(a) The [~~boundaries of the corporation and initial~~

~~boundaries of the~~] district is composed of the territory described

by Section 9.12 of the Act enacted by the 80th Legislature, Regular

Session, 2007, amending this subsection [~~are coextensive with the~~

~~service areas covered by Certificates of Convenience and Necessity~~

~~Nos. 10559 and 20785, as recorded on the Texas Commission on~~

~~Environmental Quality maps associated with those certificates.~~

~~Those maps are incorporated in this section by reference~~].

(b) The boundaries and field notes contained in Section 9.12

of the Act enacted by the 80th Legislature, Regular Session, 2007,

amending this subsection form a closure. A mistake made in the

field notes or in copying the field notes in the legislative process

[~~preparation, copying, or filing of the maps described by~~

~~Subsection (a) and on file with the Texas Commission on~~

~~Environmental Quality~~] does not affect:

(1) the organization, existence, or validity of the

district;

(2) the right of the district to issue bonds; or

(3) the legality or operation of the district.

(d) The territory of the district does not include and the

district does not have jurisdiction over land that has never been in

the service area of the corporation regardless of any erroneous

inclusion of that land in the boundaries and field notes in Section

9.12 of the Act enacted by the 80th Legislature, Regular Session,

2007, amending this section.

SECTION 9.05. Section 7201.021, Special District Local Laws

Code, is amended by amending Subsections (a), (b), and (d) and

adding Subsection (f) to read as follows:

(a) Except as provided by this subsection, after the

appointment of initial directors under Section 7201.051, the

receiver for the corporation [~~On the effective date of the Act~~

~~enacting this chapter, the corporation~~] shall transfer the assets,

debts, and contractual rights and obligations of the corporation,

including all legal claims against the corporation in effect on the

date of the transfer, to the district and provide notices and make

recordings of the transfer required by the Water Code and general

law. If the transfer of any debt requires the permission of the

lender, the receiver shall initiate proceedings to obtain that

permission.

(b) In accordance with the orders of the receivership court

and not [~~Not~~] later than the 30th day after the date of the transfer

under Subsection (a), the receiver for [~~board of directors of~~] the

corporation shall commence dissolution proceedings of the

corporation.

(d) The receiver for [~~board of directors of~~] the corporation

shall notify the Texas Commission on Environmental Quality of the

dissolution of the corporation and its succession in interest by

[~~the creation of~~] the district in order [~~to replace it~~] to effect

the transfer of Certificates of Convenience and Necessity Nos.

10559 and 20785 to the district.

(f) After the Texas Commission on Environmental Quality

takes the action required by Subsection (e), the court shall

terminate the receivership.

SECTION 9.06. Section 7201.022, Special District Local Laws

Code, is amended to read as follows:

Sec. 7201.022. EXPIRATION OF SUBCHAPTER. This subchapter

expires September 1, 2012 [~~2008~~].

SECTION 9.07. Section 7201.051, Special District Local Laws

Code, is amended to read as follows:

Sec. 7201.051. APPOINTMENT OF INITIAL [~~TEMPORARY~~]

DIRECTORS. (a) As soon as practicable after the effective date of

the Act enacted by the 80th Legislature, Regular Session, 2007,

amending this section, seven initial directors shall be appointed

as provided by this section [~~The directors of the corporation who~~

~~hold office on the effective date of the Act enacting this chapter~~

~~shall serve as the temporary directors of the district until~~

~~successor directors are elected and qualify for office~~].

(b) To be eligible to be appointed as an initial director,

an individual must meet the same requirements as a candidate for an

elected position as director under Section 7201.052. The initial

directors shall be appointed as follows:

(1) one director to represent the residents of the

district in the City of Mission appointed by the governing body of

that city;

(2) one director to represent the residents of the

district in the City of Palmview appointed by the governing body of

that city;

(3) one director to represent the residents of the

district in the City of Penitas appointed by the governing body of

that city;

(4) one director to represent the residents of the

district in the City of Sullivan City appointed by the governing

body of that city; and

(5) three directors to represent the residents of the

district outside the municipalities listed in Subdivisions (1)-(4)

appointed by the Hidalgo County Commissioners Court [~~The temporary~~

~~directors of the district are assigned position numbers as follows:~~

[~~(1) Position 1, Jose Luis Trigo;~~

[~~(2) Position 2, Jose Guadalupe Reyna;~~

[~~(3) Position 3, George Barreiro;~~

[~~(4) Position 4, Frolian Ramirez;~~

[~~(5) Position 5, Russell Wicker;~~

[~~(6) Position 6, Benito Salinas;~~

[~~(7) Position 7, Manuel Ricardo Garcia;~~

[~~(8) Position 8, Valente Alaniz, Jr.; and~~

[~~(9) Position 9, Juan Lino Garza~~].

of the year in which the director's successor is elected under

Section 7201.052 [~~If there is a vacancy on the temporary board of~~

~~directors of the district, the temporary board shall appoint a~~

~~person to fill the vacancy for the remainder of the term for the~~

~~vacated position until the applicable election under Section~~

~~7201.052~~].

SECTION 9.08. Subchapter B, Chapter 7201, Special District

Local Laws Code, is amended by adding Sections 7201.0512 and

7201.0513 to read as follows:

Sec. 7201.0512. INITIAL BOARD TRAINING. (a) Not later

than the 60th day after the first date on which all of the initial

directors have been appointed, each initial director shall complete

at least 12 hours of training on district management and compliance

with laws applicable to the district as determined by the receiver

for the corporation.

(b) The district shall reimburse an initial director for the

reasonable expenses incurred by the director in attending the

training.

Sec. 7201.0513. EDUCATION PROGRAM. (a) Before the first

election of directors under Section 7201.052, the initial board

shall establish a program of education for directors that includes

information on:

(1) the history of the district;

(2) the district's enabling legislation;

(3) Chapters 49 and 65, Water Code, and other laws that

apply to the district, including the requirements of the:

(A) open meetings law, Chapter 551, Government

Code; and

(B) public information law, Chapter 552,

Government Code;

(4) relevant legal developments related to water

district governance;

(5) the duties and responsibilities of the board;

(6) the requirements of conflict of interest laws and

other laws relating to public officials; and

(7) any applicable ethics policies adopted by the

Texas Commission on Environmental Quality or the Texas Ethics

Commission.

(b) The district shall pay any costs associated with the

development of the education program from district revenue.

an organization offering courses that have been approved by the

Texas Commission on Environmental Quality.

(d) The board may adopt bylaws modifying the education

program as necessary to meet district needs.

SECTION 9.09. Section 7201.052, Special District Local Laws

Code, is amended to read as follows:

Sec. 7201.052. BOARD OF DIRECTORS. (a) Except as provided

by Subsection (l), the [~~The~~] district shall be governed by a board

of seven [~~not fewer than nine and not more than 11~~] directors,

elected as follows:

(1) one director elected by the voters of the part of

the City of Mission inside the district to represent that part of

the city;

(2) one director elected by the voters of the City of

Palmview to represent that city;

(3) one director elected by the voters of the City of

Penitas to represent that city;

(4) one director elected by the voters of the City of

Sullivan City to represent that city; and

(5) three directors elected at-large to numbered

positions on the board by the district voters who do not reside in

any of the municipalities listed in Subdivisions (1)-(4) to

represent the part of the district that is not included in those

municipalities, unless the number of at-large directors is

increased under Subsection (l) [~~in accordance with Section 49.103,~~

~~Water Code, notwithstanding Subsection (f)(2) of that section~~].

(b) A [~~Except for a temporary director under Section~~

~~7201.051, a~~] candidate for one of the numbered [~~a position as~~]

director positions:

(1) [~~is elected at large to represent the entire~~

~~service area of the district;~~

[~~(2)~~] must reside in the part of the service area of

the district that is not included in any of the municipalities

listed in Subsections (a)(1)-(4); and

(2) [~~(3)~~] must be eligible to hold office under

Section 141.001, Election Code.

representing a municipality listed in Subsection (a)(1), (2), (3),

or (4):

(1) must reside in the municipality the candidate

seeks to represent; and

(2) must be eligible to hold office under Section

141.001, Election Code.

(d) It is the policy of the district that the directors

shall represent and reside in as broad a cross-section of the

geographic area of the district as possible.

(e) [~~(d)~~] The district shall fill a vacancy on the board in

accordance with Section 49.105, Water Code.

(f) [~~(e)~~] Except for the initial [~~temporary~~] directors

appointed [~~listed~~] under Section 7201.051 or elected at the first

election under Subsection (g), directors serve staggered terms of

four [~~three~~] years.

(g) [~~(f)~~] On the uniform election date in May 2008, or in

May 2010, if the election is postponed under Subsection (h), the

district shall hold an election to elect seven directors. On the

[~~2006, and on that~~] uniform election date in May of each

even-numbered [~~every third~~] year after that date, the district

shall hold an election to elect the appropriate number of [~~three~~]

directors [~~to serve in positions 1, 4, and 7~~].

(h) The initial board by order may postpone until the

uniform election date in May 2010 the first election for directors

under Subsection (g) if the initial board determines that there is

not sufficient time to comply with the requirements of law and to

order the election of directors to be held on the first uniform

election date specified by that subsection.

(i) The directors elected at the first election under

Subsection (g) shall cast lots to determine which three directors

shall serve terms expiring June 1 of the first even-numbered year

after the year in which the directors are elected and which four

directors shall serve terms expiring June 1 of the second

even-numbered year after the year in which the directors are

elected.

(j) A director may not serve consecutive terms.

(k) A person who has served as a member of the board of

directors of the corporation is not eligible to serve as a district

director.

(l) If, before the expiration of the term of a director

elected to represent a municipality under Subsection (a)(1), (2),

(3), or (4), the district determines that all of the incorporated

territory of the municipality is outside the boundaries of the

district, the position immediately becomes an at-large numbered

position to be filled at the next general election of the district

in accordance with Subsections (a)(5) and (b) [~~(g)~~ ~~On the uniform~~

~~election date in May 2007, and on that uniform election date every~~

~~third year after that date, the district shall hold an election to~~

~~elect three directors to serve in positions 2, 3, and 5.~~

[~~(h)~~ ~~On the uniform election date in May 2008, and on that~~

~~uniform election date every third year after that date, the~~

~~district shall hold an election to elect three directors to serve in~~

~~positions 6, 8, and 9~~].

SECTION 9.10. Subchapter B, Chapter 7201, Special District

Local Laws Code, is amended by adding Sections 7201.053 and

7201.054 to read as follows:

Sec. 7201.053. DISTRICT TREASURER. (a) The board shall

elect from among its members one director to serve as district

treasurer.

(b) The district treasurer shall comply with the training

requirements provided by Section 49.1571, Water Code, for an

investment officer of a district.

Sec. 7201.054. EDUCATION FOR DIRECTORS. (a) Except for an

initial director whose term expires in 2008, each director shall

complete the education program established under Section 7201.0513

before the first anniversary of the date on which the director was

appointed or elected.

(b) The district shall reimburse a director for the

reasonable expenses incurred by the director in attending the

education program.

shall fulfill the education requirements specified by district

bylaws.

SECTION 9.11. Section 7201.206, Special District Local Laws

Code, is amended to read as follows:

Sec. 7201.206. RATES AND FEES FOR SERVICES. (a) The

district, in connection with water or sewer retail public utility

services, shall establish lifeline, senior citizen, or minimum

consumption level rates for services. The rate impact of such

services shall be allocated on the basis of costs of services to

achieve conservation principles, while securing necessary reserves

for the payment of operating expenses, sinking funds, principal,

interest, and debt coverage factors, and any other objective

established by the district's annual budget.

(b) Chapter 395, Local Government Code, does not apply to

any fee, charge, or assessment that, before the corporation's

dissolution and conversion to a district, is adopted by the

receiver for the purpose of generating revenue to fund or recoup the

costs of capital improvements or facility expansions necessitated

by and attributable to new developments.

31, 2009, the district may not impose any fee, charge, or assessment

that, before the corporation's dissolution and conversion to a

district, is adopted by the receiver for the purpose of generating

revenue to fund or recoup the costs of capital improvements or

facility expansions necessitated by and attributable to new

developments unless the district readopts the fee, charge, or

assessment or adopts a new fee, charge, or assessment in accordance

with Chapter 395, Local Government Code. This subsection does not

apply to a retail water or sewer rate adopted by the receiver or the

district.

SECTION 9.12. (a) Except for the areas excluded under

Subsection (b) of this section, the boundaries of the Agua Special

Utility District are as follows:

Beginning at a point in the centerline of FM 495 (Mile 1 Road)

a distance of approximately .18 miles west of the intersection of FM

495 and Inspiration Road.

Thence due north approximately 1.0 miles to a point

approximately 166 feet south of the centerline of Mile 2 Road and

approximately .18 miles west of the intersection of Mile 2 Road and

Inspiration Road

Thence follow west along a straight westerly line

approximately 180 feet south of Mile 2 Road approximately .51 miles

to a point in the centerline of Schubach Road.

Following westerly in a straight line approximately .78 miles

to the centerline of Bentsen Palm Drive.

From the point at the centerline of Bentsen Palm Road

continue westerly approximately .78 miles to a point at 26 15 00

latitude and -98 22 10 longitude.

Turn right and due north and follow approximately 7.0 miles

in a northerly direction .10 miles west and parallel to Bentsen Palm

Drive to a point at 226 21 04 latitude and -98 21 06 longitude.

Turn left and follow westerly along a straight line a

distance of approximately 1.66 miles to the intersection of Abram

Road and 9 Mile Road.

Follow along the centerline of 9 Mile Road westerly

approximately 1.65 miles to its intersection with Iowa Avenue.

(Latitude: 26 21 31, Longitude: -98 24 16)

Continue westerly along a straight line from latitude 26 21

31, longitude -98 24 16 approximately 3.79 miles to the center line

of FM 2221 ( Jara Chinas Road)

Thence due south along FM 2221 ( Jara Chinas Road)

approximate distance of 8.02 Miles to a point approximately .75

miles north of the Intersection of Expressway 83 and FM 2221( Jara

Chinas Road)

Thence at a distance of approximately .75 miles north of the

centerline of Expressway 83 due west to northwest approximately 4

miles following along the same contour as Expressway 83 to the

centerline of El Faro Road from a point .62 miles east of the

intersection of El Faro Road and Expressway 83.

Turn right and follow due north down the centerline of El Faro

Road until its end and continue northerly for a total of

approximately 2.79 miles to a point at latitude 26 19 13 and

longitude -98 32 40.

Turn left and follow northwesterly in a straight line along

the east side of 16 Mile Road (Starr County) approximately 1.87

miles to a point located at 26 19 30 latitude and -98 34 27

longitude.

Turn right and follow northeasterly in a straight line

approximately 1.02 miles to a point located at 26 20 22 latitude and

-98 34 17 longitude.

Turn right and follow southeasterly in a straight line

approximately 1.26 miles to a point located at 26 20 22 latitude and

-98 33 05 longitude.

Turn right and follow northeasterly in a straight line along

the west side of County Line Road (Starr County) approximately .61

miles to a point located at 26 20 43 latitude and -98 32 60

longitude.

Turn left and follow northwesterly in a straight line

approximately 1.26 miles to a point located at 26 20 53 latitude and

-98 34 12 longitude.

Turn right and follow northeasterly in a straight line along

the east side of 16 Mile Road (Starr County) approximately 1.32

miles to a point located at 26 22 02 latitude and -98 33 59

longitude.

Turn left and follow northwesterly in a straight line

approximately .55 miles to a point located at 26 22 07 latitude and

-98 34 30 longitude.

Turn left and follow southwesterly in a straight line

approximately 6.17 miles to a point located at 26 16 48 latitude and

-98 35 29 longitude.

Turn left and follow southeasterly in a straight line

approximately .91 miles to a point located at 26 16 30 latitude and

-98 34 40 longitude, near the Hidalgo-Starr County line.

Turn right and follow southwesterly along the Hidalgo-Starr

County line approximately 1.28 miles to its intersection with the

Rio Grande River (U.S. side).

Thence due south approximately 7.77 miles to the northern

winding banks (U.S. side) of the Rio Grande River

Thence east along the northern winding banks ( US side ) of

the Rio Grande River approximately 22 miles to a point

approximately 1.16 miles south of Greene Road

Thence from that center line on Bentsen Park Road

approximately .82 miles east northeast to the centerline of

Breyfogle/Shuerbach Road

Turn left and follow westerly in a straight line

approximately .56 miles to a point located 26 11 20 latitude and -98

22 30 longitude.

Turn left and follow southerly in a straight line

approximately .50 miles to the centerline of Miltary Road.

Turn right and follow northerly and then northwesterly along

the north side of Military Road approximately .36 miles to its

intersection with Farm-to-Market Road 2062.

Turn left and follow southerly along Farm-to-Market Road 2062

approximately .16 miles to a point located at 26 11 02 latitude and

-98 22 46 longitude.

Turn right and follow northerly, westerly, southerly,

southwesterly, northerly, westerly and then southwesterly for

approximately 1.27 miles to a point located at 26 11 11 latitude and

-98 23 38 longitude running just north of Park Road 43.

Turn right and follow northeasterly along a straight line for

approximately .71 miles to the north side of Military Road.

Turn left and follow along westerly approximately .44 miles

along the north side of Military Road to its intersection with

Goodwin Road.

Turn right and follow northerly along the centerline of

Goodwin Road approximately .33 miles to a point located at 26 12 07

latitude and -98 23 53 longitude.

Turn right and follow easterly, northerly, easterly and then

southeasterly approximately .78 miles to the intersection with

Green Road.

Turn left and follow northerly along the centerline of Green

Road approximately .32 miles.

Turn right and follow easterly and then southwesterly

approximately 1.16 miles to the north side of Military Road at

points 26 11 42 latitude and -98 23 16 longitude.

Turn left and follow southeasterly along the north side of

Military Road approximately 0.07 miles to a point located at 26 11

40 latitude and -98 23 13 longitude.

Turn left and follow northeasterly, northerly,

northeasterly, northerly, northeasterly, easterly, southerly and

then easterly approximately 2.04 miles to the centerline of

Shuebach Road/Airfield Road

Turn left and follow northeasterly along the centerline of

Airfield Road approximately 1.48 miles to its intersection with

U.S. Highway 83 Business.

Turn right and follow easterly along the centerline of U.S.

Highway 83 Business approximately .27 miles to its intersection

with Moorefield Road.

Turn left and follow northerly along the centerline of

Moorefield Road approximately .32 miles to a point located at 26 13

23 latitude and -98 21 21 longitude.

Make a slight right and follow northeasterly and then

northerly along the west banks of the Edinburg Main Canal

approximately .66 miles to that point on the centerline of FM 495

the beginning (Mile 1 Road) a distance of approximately .18 miles

west of the intersection of FM 495 and Inspiration Road to Close.

(b) The territory of the Agua Special Utility District does

not include the area within the city limits of La Joya, Texas, as it

existed on January 1, 1991; the area within the Certificate of

Convenience and Necessity of Hidalgo County Municipal Utility

District No. 1 as reflected on the records of the Texas Commission

on Environmental Quality as of January 1, 2007; and the area within

the following boundary lines, which lie wholly within the district:

Beginning at a point located at 26 14 57 Latitude and -98 25

55 Longitude follow in a northwesterly direction along an unnamed

creek approximately .23 Miles to a point located at 26 15 03

Latitude and -98 26 05 Longitude.

From the point located at 26 15 03 Latitude and -98 26 05

Longitude follow in a westerly direction along an unnamed creek

approximately .24 Miles to a point located at 26 15 04 Latitude and

-98 26 19 Longitude.

From the point located at 26 15 04 Latitude and -98 26 19

Longitude turn right and follow in a straight line northeasterly

approximately .97 Miles to a point located at 26 15 54 Latitude and

-98 26 09 Longitude.

From the point located at 26 15 54 Latitude and -98 26 09

Longitude turn right and follow in a straight line

easterly-southeasterly approximately .43 Miles to a point located

at 26 15 50 Latitude and -98 25 45 Longitude.

From a point located at 26 15 50 Latitude and -98 25 45

Longitude turn right and follow in a straight line southwesterly

approximately 1.03 Miles to a point located at 26 14 57 Latitude and

-98 25 55 Longitude and Place of Beginning.

SECTION 9.13. Initial directors of the board of the Agua

Special Utility District shall be appointed in accordance with

Section 7201.051, Special District Local Laws Code, as amended by

this Act, as soon as practicable after the effective date of this

Act.

SECTION 9.14. Except as otherwise provided by Chapter 7201,

Special District Local Laws Code, as amended by this Act, the Agua

Special Utility District is subject to:

(1) any judicial or administrative order imposing an

injunction against the La Joya Water Supply Corporation that is in

effect on the date of the transfer under Section 7201.021, Special

District Local Laws Code, as amended by this Act; or

(2) any judicial or administrative order imposing

liability for monetary damages or a civil or administrative penalty

against the La Joya Water Supply Corporation that:

(A) results from a legal proceeding that is

pending on the date of the transfer under Section 7201.021, Special

District Local Laws Code, as amended by this Act; or

(B) is unsatisfied on the date of the transfer

under Section 7201.021, Special District Local Laws Code, as

amended by this Act.

SECTION 9.15. (a) The legal notice of the intention to

introduce the article of this Act that amends Chapter 7201, Special

District Local Laws Code, setting forth the general substance of

the article, has been published as provided by law, and the notice

and a copy of the 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.

its recommendations relating to 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.

SECTION 9.16. This article takes effect immediately if this

Act receives a vote of two-thirds of all the members elected to each

house, as provided by Section 39, Article III, Texas Constitution.

If this Act does not receive the vote necessary for immediate

effect, this article takes effect September 1, 2007.

ARTICLE 10. TRUE RANCH MUNICIPAL UTILITY DISTRICT NO. 1

SECTION 10.01. Subtitle F, Title 6, Special District Local

Laws Code, is amended by adding Chapter 8269 to read as follows:

CHAPTER 8269. TRUE RANCH MUNICIPAL UTILITY DISTRICT NO. 1

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 8269.001. DEFINITIONS. In this chapter:

(1) "Board" means the board of directors of the

district.

(2) "Director" means a board member.

(3) "District" means the True Ranch Municipal Utility

District No. 1.

Sec. 8269.002. NATURE OF DISTRICT. The district is a

municipal utility district in Hays County created under and

essential to accomplish the purposes of Section 59, Article XVI,

Texas Constitution.

Sec. 8269.003. CONFIRMATION ELECTION REQUIRED. If the

creation of the district is not confirmed at a confirmation

election held under Section 8269.023 before September 1, 2012:

(1) the district is dissolved September 1, 2012,

except that:

(A) any debts incurred shall be paid;

(B) any assets that remain after the payment of

debts shall be transferred to Hays County; and

maintained until all debts are paid and remaining assets are

transferred; and

(2) this chapter expires September 1, 2015.

Sec. 8269.004. FINDINGS OF BENEFIT AND PUBLIC PURPOSE.

(a) All land and other property in the district will benefit from

the works and projects to be accomplished by the district under

powers conferred by Section 59, Article XVI, Texas Constitution.

(b) The district is created to serve a public use and

benefit.

Sec. 8269.005. INITIAL DISTRICT TERRITORY. (a) The

district is initially composed of the territory described by

Section 10.02 of the Act creating this chapter.

(b) The boundaries and field notes contained in Section

10.02 of the Act creating this chapter form a closure. A mistake

made in the field notes or in copying the field notes in the

legislative process does not affect:

(1) the organization, existence, or validity of the

district;

(2) the right of the district to impose taxes;

(3) the right of the district to issue bonds, notes, or

other indebtedness or to pay the principal of and interest on a

bond;

(4) the validity of the district's bonds, notes, or

other indebtedness; or

(5) the legality or operation of the district or the

board.

[Sections 8269.006-8269.020 reserved for expansion]

SUBCHAPTER A-1. TEMPORARY PROVISIONS

Sec. 8269.021. TEMPORARY DIRECTORS. (a) On or after

September 1, 2007, a person who owns land in the district may submit

a petition to the Texas Commission on Environmental Quality

requesting that the commission appoint as temporary directors the

five persons named in the petition.

(b) The commission shall appoint as temporary directors the

five persons named in the first petition received by the commission

under Subsection (a).

if a vacancy occurs in the office of temporary director, the vacancy

shall be filled as provided by Section 49.105, Water Code.

(d) Temporary directors serve until the earlier of:

(1) the date directors are elected under Section

8269.023; or

(2) the date this chapter expires under Section

8269.003.

Sec. 8269.022. ORGANIZATIONAL MEETING OF TEMPORARY

DIRECTORS. As soon as practicable after all the temporary

directors have qualified under Section 49.055, Water Code, the

directors shall meet at a location in the district agreeable to a

majority of the directors. If a location cannot be agreed upon, the

meeting shall be at the Hays County Courthouse. At the meeting, the

temporary directors shall elect officers from among the temporary

directors and conduct any other district business.

Sec. 8269.023. CONFIRMATION AND INITIAL DIRECTORS'

ELECTION. (a) The temporary directors shall hold an election to

confirm the creation of the district and to elect five directors as

provided by Section 49.102, Water Code.

(b) Section 41.001(a), Election Code, does not apply to a

confirmation and initial directors' election held under this

section.

Sec. 8269.024. INITIAL ELECTED DIRECTORS; TERMS. The

directors elected under Section 8269.023 shall draw lots to

determine which two serve until the first regularly scheduled

election of directors under Section 8269.052 and which three shall

serve until the second regularly scheduled election of directors.

Sec. 8269.025. DATE OF FIRST REGULARLY SCHEDULED ELECTION

OF DIRECTORS. The board by order may postpone the first election

under Section 8269.052 following the confirmation and initial

directors' election held under Section 8269.023 if:

(1) the election would otherwise occur not later than

the 60th day after the date on which the confirmation election is

held; or

(2) the board determines that there is not sufficient

time to comply with the requirements of law and to order the

election.

Sec. 8269.026. EXPIRATION OF SUBCHAPTER. This subchapter

expires September 1, 2015.

[Sections 8269.027-8269.050 reserved for expansion]

SUBCHAPTER B. BOARD OF DIRECTORS

Sec. 8269.051. DIRECTORS; TERMS. (a) The district is

governed by a board of five directors.

(b) Directors serve staggered four-year terms.

Sec. 8269.052. ELECTION OF DIRECTORS. On the uniform

election date in May of each even-numbered year, the appropriate

number of directors shall be elected.

[Sections 8269.053-8269.100 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIES

Sec. 8269.101. GENERAL POWERS AND DUTIES. The district has

the powers and duties necessary to accomplish the purposes for

which the district is created.

Sec. 8269.102. MUNICIPAL UTILITY DISTRICT POWERS AND

DUTIES. The district has the powers and duties provided by the

general law of this state, including Chapters 49 and 54, Water Code,

applicable to municipal utility districts created under Section 59,

Article XVI, Texas Constitution.

Sec. 8269.103. ROAD PROJECTS. (a) To the extent

authorized by Section 52, Article III, Texas Constitution, the

district may construct, acquire, improve, maintain, or operate

arterials or main feeder roads or improvements in aid of those

roads.

(b) A road project must meet all applicable construction

standards, zoning and subdivision requirements, and regulatory

ordinances of the municipality or county in whose jurisdiction the

district is located.

Sec. 8269.104. COMPLIANCE WITH MUNICIPAL CONSENT

ORDINANCES OR RESOLUTIONS. Subject to the limitations of Section

54.016, Water Code, the district shall comply with all valid and

applicable requirements of any ordinance or resolution adopted by a

municipality in the corporate limits or extraterritorial

jurisdiction of which the district is located, including an

ordinance or resolution adopted before September 1, 2007, that

consents to the creation of the district or to the inclusion of

lands within the district.

[Sections 8269.105-8269.150 reserved for expansion]

SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS

Sec. 8269.151. ELECTIONS REGARDING TAXES OR BONDS.

(a) Except as provided by Section 8269.201(b), the district may

issue, without an election, bonds and other obligations secured by

revenue or contract payments from any source other than ad valorem

taxation.

(b) The district must hold an election in the manner

provided by Chapters 49 and 54, Water Code, to obtain voter approval

before the district may impose an operation and maintenance tax or

issue bonds payable from ad valorem taxes.

Sec. 8269.152. OPERATION AND MAINTENANCE TAX. (a) If

authorized at an election held under Section 8269.151, the district

may impose an operation and maintenance tax on taxable property in

the district in accordance with Section 49.107, Water Code.

(b) The board shall determine the tax rate. The rate may not

exceed the rate approved at the election.

[Sections 8269.153-8269.200 reserved for expansion]

SUBCHAPTER E. BONDS AND OTHER OBLIGATIONS

Sec. 8269.201. AUTHORITY TO ISSUE BONDS AND OTHER

OBLIGATIONS. (a) The district may issue bonds or other

obligations payable wholly or partly from ad valorem taxes, impact

fees, revenue, grants, or other district money, or any combination

of those sources, to pay for any authorized district purpose.

(b) The district may not issue bonds to finance projects

authorized by Section 8269.103 unless the issuance is approved by a

vote of a two-thirds majority of the voters of the district voting

at an election called for that purpose.

projects authorized by Section 8269.103 may not exceed one-fourth

of the assessed value of the real property in the district.

Sec. 8269.202. TAXES FOR BONDS. At the time bonds payable

wholly or partly from ad valorem taxes are issued:

(1) the board shall impose a continuing direct annual

ad valorem tax, without limit as to rate or amount, for each year

that all or part of the bonds are outstanding; and

(2) the district annually shall impose an ad valorem

tax on all taxable property in the district in an amount sufficient

to:

(A) pay the interest on the bonds as the interest

becomes due;

(B) create a sinking fund for the payment of the

principal of the bonds when due or the redemption price at any

earlier required redemption date; and

SECTION 10.02. The True Ranch Municipal Utility District

No. 1 includes all the territory contained in the following area:

BEING ALL THAT CERTAIN TRACT OR PARCEL OF LAND CONTAINING 465.71

ACRES, MORE OR LESS, OF LAND AREA IN THE JOHN INGRAIM SURVEY,

ABSTRACT NO. 256, HAYS COUNTY, TEXAS, BEING A PORTION OF THAT TRACT

DESCRIBED AS 1279.69 ACRES IN A DEED FROM LESLIE TRUE VESPER ET AL

TO LESLIE TRUE VESPER DATED AUGUST 10, 1992 AND RECORDED IN VOLUME

948, PAGE 789 OF THE HAYS COUNTY OFFICIAL PUBLIC RECORDS, AND BEING

MORE PARTICULARLY DESCRIBED BY METES AND BOUNDS AS FOLLOWS:

BEGINNING at a ½" iron rod found in the southwest line of R.M.

Highway No. 2325 and that tract described as an 80' R.O.W. in a deed

from Cecil H. Hale, et al to the State of Texas dated August 29, 1956

and recorded in Volume 169, Page 304 of the Hays County Deed Records

for the most northerly northwest corner of the panhandle portion of

this description and the Vesper 1279.69 acre tract and east corner

of that tract described as 592.30 acres in a deed from Leslie True

Vesper et al to Ameritrust Texas, N.A., Trustee dated August 10,

1992 and recorded in Volume 949, Page 572 of the Hays County

Official Public Records, from which a TXDOT concrete monument found

bears N 69°45'42" W 162.75 feet;

THENCE leaving the Ameritrust Texas 592.30 acre tract and the

PLACE OF BEGINNING as shown on that plat numbered 24587-06-3-d

dated May 30, 2006 prepared for Leslie Vesper by Byrn & Associates,

Inc., of San Marcos, Texas with the common northeast line of the

Vesper 1279.69 acre tract and southwest line of R.M. Highway No.

2325 and the State of Texas 80' R.O.W. tract S 69°48'34" E 599.94

feet to a ½" iron rod set for the northwest corner of that tract

described as "Tract 1-1.00 acres" in a deed from Thomas W. Slaughter

et ux to Randy C. Brown et ux dated February 12, 1996 and recorded in

Volume 1206, Page 780 of the Hays County Official Public Records,

from which A TXDOT concrete monument found bears S 69°47'57" E

120.11 feet;

THENCE leaving R.M. Highway No. 2325 and the State of Texas

80' R.O.W. tract with the common east line of the Vesper 1279.69

acre tract and west and south lines of the Brown 1.00 acre Tract 1

the following two courses:

1. S 20°06'33" W 226.56 feet to a 2.5" pipe fence corner post

found for corner, and

S 69°41'58" E 234.42 feet to a 2" pipe fence corner post found

in the west line of that tract described as "Tract 2-5.347 acres" in

the previously mentioned deed to Randy C. Brown et ux for the

southeast comer of the Brown 1.00 acre Tract 1;

THENCE leaving the Brown 1.00 acre Tract 1 and continuing

with the common east line of the Vesper 1279.69 acre tract and west

line of the Brown 5.347 acre Tract 2, as fenced and used, the

following three courses:

S 00°10'12" E 410.74 feet to a ½" iron rod set at the

approximate centerline of an underground pipeline for angle point,

S 00°04'22" E 196.11 feet to a 2.5" pipe fence post found for

angle point, and

S 00°24'09" E 15.83 feet to an iron rod found with an aluminum

cap stamped "Pro-Tech Eng" at fence corner for the southwest corner

of the Brown 5.347 acre Tract 2 and northwest corner of the

remaining portion of that tract described as 187.78 acres in a deed

from Henry Polvado & Lillie Polvado to Wesley Springs dated May 6,

1983 and recorded in Volume 393, Page 570 of the Hays County Deed

Records (the Brown 5.347 acre Tract 2 being a portion of the Springs

187.78 acre tract);

THENCE leaving the Brown 5.347 acre Tract 2 and continuing

with the east line of the Vesper 1279.69 acre tract and west line of

the Springs 187.78 acre tract, as fenced and used, the following

three courses:

S 00°00'57" E 1012.24 feet to a 2.5" pipe fence post found for

angle point,

S 00°06'57" W 908.05 feet to a 4" pipe fence corner post found

for angle point, and

S 00°03'12" E 354.80 feet to a 4" pipe fence corner post found

for the southwest corner of the springs 187.78 acre tract and

northwest corner of that tract described as 126.97 acres in a deed

from Stanual W. Farris to the Stanual W. Farris Living Trust dated

March 10, 2005 and recorded in Volume 2646, Page 385 of the Hays

County Official Public Records;

THENCE leaving the Springs 187.78 acre tract and continuing

with the common east line of the Vesper 1279.69 acre tract and west

line of Farris Living Trust 126.97 acre tract, as fenced and used,

the following three courses:

S 00°12'25" W 952.36 feet to a 4" pipe fence post found for

angle point,

S 00°09'57"W 1087.12 feet to a 4" cedar post found for angle

point, and

S 00°22'11" W 1072.11 feet to a ½" iron rod found at fence

corner for the southwest corner of the Farris Living Trust 126.97

acre tract and northwest corner of that tract described as 32.03

acres in a deed from Phil Harris to Shannon Harris dated April 8,

1998 and recorded in Volume 1463, Page 335 of the Hays County

Official Public Records;

THENCE leaving the Farris Living Trust 126.97 acre tract and

continuing with the common east line of the Vesper 1279.69 acre

tract and west line of the Shannon Harris 32.03 acre tract, as

fenced and used, S 00°44'10"W 120.44 feet to a 4" cedar fence corner

post found for the southwest corner of the Shannon Harris 32.03 acre

tract and northwest corner of that tract described as 28.92 acres in

a deed from A.J. Farris et ux to Philip D. Farris dated July 18, 1991

and recorded in Volume 882, page 620 of the Hays County Official

Public Records;

THENCE leaving the Shannon Harris 32.03 acre tract and

continuing with the common east line of the Vesper 1279.69 acre

tract and west line of the Philip D. Farris 28.92 acre tract, as

fenced and used, S 00°24'02" W 279.19 feet to a ½" iron rod found at

fence corner for the southeast corner of this description and

northeast corner of that tract described as 52.30 acres in a deed

from Leslie True Vesper to Paul R. Eastup et ux dated June 5, 1996

and recorded in Volume 1240, Page 309 of the Hays County Official

Public Records (the Eastup 52.30 acre tract being a portion of the

Vesper 1279.69 acre tract);

THENCE leaving the Phillip D. Farris 28.92 acre tract and

entering the Vesper 1279.69 acre tract with the north line of the

Eastup 52.30 acre tract, N 87°10'57" W 1356.38 feet to a ½" iron rod

found in fence for the northwest corner of the Eastup 52.03 acre

tract and northeast corner of that tract described as 209.16 acres

in a deed from Leslie True Vesper to James Nicholas Edwards and Lynn

S. Edwards dated July 6, 2005 and recorded in Volume 2719, Page 740

of the Hays County Official Public Record (the Edwards 209.16 acre

tract being a portion of the Vesper 1279.69 acre tract);

THENCE leaving the Eastup 52.30 acre tract with the north

line of the Edwards 209.16 acre tract, as fenced and used, the

following five courses:

N 87°19'31" W 665.61 feet to a 4" pipe fence post found for

angle point,

N 86°58'45" W 535.67 feet to a 3" cedar fence post found for

angle point,

N 87°09'05" W 302.22 feet to a 3" cedar fence post found for

angle point,

N 87°26'23" W 724.92 feet to a 4" cedar fence post found for

angle point, and

N 86°46'01" W 426.90 feet to a ½" iron rod found with a plastic

cap stamped "Byrn Survey" in the east line of that tract described

as 504.13 acres in a deed from Leslie True Vesper to James L. Pierce

and David L. Pierce dated February 8, 1999 and recorded in Volume

1500, Page 452 of the Hays County Official Public Records (the

Pierce 504.13 acre tract being a portion of the Vesper 1279.69 acre

tract);

THENCE leaving the Edwards 209.16 acre tract with the east

line of the Pierce 504.13 acre tract the following two courses:

N 08°19'22" E 124.79 feet to a ½" iron rod found with a plastic

cap stamped "Byrn Survey" for corner, and

N 87°41'56" W 751.30 feet to a ½" iron rod found with a plastic

cap stamped "Byrn Survey" for the southwest corner of this

description, an interior corner in the east line of the Pierce

504.13 acre tract, and the south corner of that tract described as

10.59 acres in a deed from Leslie True Vesper to James L. Pierce and

David L. Pierce dated June 15, 2001 and recorded in Volume 1872,

Page 802 of the Hays County Official Public Records (the Pierce

10.59 acre tract being a portion of the Vesper 1279.69 acre tract);

THENCE leaving the Pierce 504.13 acre tract with the east

line of Pierce 10.59 acre tract the following two courses:

N 05°37'42" E (being the bearing basis for description) 734.58

feet to a ½" iron rod found with a plastic cap stamped "Byrn Survey"

for angle point, and

N 16°12'16" E 1026.26 feet to a 16" cedar tree stump found in

fence in the east line of the previously mentioned Pierce 504.13

acre tract for the north corner of the Pierce 10.59 acre tract;

THENCE leaving the Pierce 10.59 acre tract and continuing

with the east line of the Pierce 504.13 acre tract, as fenced and

used, the following eight courses:

N 20°34'38" E 42.67 feet to a 16" cedar tree stump found for

angle point,

N 15°43'09" E 241.85 feet to a 12" cedar tree stump found for

angle point,

N 08°41'46" E 86.90 feet to a 14" cedar tree stump found for

angle point,

N 07°33'58" E 244.38 feet to a 2.5" pipe fence post found for

angle point,

N 24°14'46" E 623.77 feet to a 6" cedar fence post found for

angle point,

N 24°15'46" E 420.45 feet to a 2.5" pipe fence post found for

angle point,

N 12°52'45" E 194.02 feet to a 2.5" pipe fence post found for

angle point, and

N 01°30'08" E 340.55 feet to a 4" pipe fence corner post found

in the south line of the previously mentioned Ameritrust Texas

592.30 acre tract and north line of the Vesper 1279.69 acre tract

for the northeast corner of the Pierce 504.13 acre tract and

exterior west corner of this description;

THENCE leaving the Pierce 504.13 acre tract with the common

north line of the Vesper 1279.69 acre tract, and south line of the

Ameritrust Texas 592.30 acre tract, as fenced and used, the

following six courses:

N 73°32'00" E 130.18 feet to a 4" pipe fence post found for

angle point,

S 48°36'36" E 170.02 feet to a ½" iron rod found for angle

point,

S 76°17'07" E 88.03 feet to a 4" pipe fence post found for

angle point,

S 86°44'44" E 798.24 feet to a 4" pipe fence post found for

angle point,

S 86°55'19" E 913.16 feet to a 4" pipe fence post found for

angle point, and

S 86°56'50" E 421.51 feet to a ½" iron rod found for the

southeast corner of the Ameritrust Texas 592.30 acre tract and

southwest corner of the panhandle portion of this description and

the Vesper 1279.69 acre tract;

THENCE leaving the fence with the common west line of the

panhandle portion of the Vesper 1279.69 acre tract and east line of

the Ameritrust Texas 592.30 acre tract the following two courses:

N 00°00'32" E 1999.62 feet to a ½" iron rod found for angle

point, and

N 32°23'54" E 1152.96 feet to the PLACE OF BEGINNING.

THERE are contained within these metes and bounds 465.71

acres, more or less, as prepared from public records and surveys

made on the ground in 1999, 2001, 2005 and on May 30, 2006 by Byrn &

Associates, Inc., of San Marcos, Texas. All ½" iron rods set are

capped with a plastic cap stamped "Byrn Survey".

SECTION 10.03. (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 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, one of the required recipients, has

submitted the notice and article to the Texas Commission on

Environmental Quality.

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 10.04. This article takes effect immediately if

this Act receives a vote of two-thirds of all the members elected to

each house, as provided by Section 39, Article III, Texas

Constitution. If this Act does not receive the vote necessary for

immediate effect, this article takes effect September 1, 2007.

ARTICLE 11. TABLEROCK GROUNDWATER CONSERVATION DISTRICT

SECTION 11.01. Subtitle H, Title 6, Special District Local

Laws Code, is amended by adding Chapter 8823 to read as follows:

CHAPTER 8823. TABLEROCK GROUNDWATER CONSERVATION DISTRICT

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 8823.001. DEFINITIONS. In this chapter:

(1) "Board" means the district's board of directors.

(2) "Director" means a board member.

(3) "District" means the Tablerock Groundwater

Conservation District.

Sec. 8823.002. NATURE OF DISTRICT. The district is a

groundwater conservation district in Coryell County created under

and essential to accomplish the purposes of Section 59, Article

XVI, Texas Constitution.

Sec. 8823.003. CONFIRMATION ELECTION REQUIRED. (a) If the

creation of the district is not confirmed at a confirmation

election held before September 1, 2012:

(1) the district is dissolved on September 1, 2012,

except that the district shall:

(A) pay any debts incurred;

(B) transfer to Coryell County any assets that

remain after the payment of debts; and

until all debts are paid and remaining assets are transferred; and

(2) this chapter expires September 1, 2012.

(b) This section expires September 1, 2012.

Sec. 8823.004. INITIAL DISTRICT TERRITORY. The initial

boundaries of the district are coextensive with the boundaries of

Coryell County, Texas.

Sec. 8823.005. CONSTRUCTION OF CHAPTER. This chapter shall

be liberally construed to achieve the legislative intent and

purposes of Chapter 36, Water Code. A power granted by Chapter 36,

Water Code, or this chapter shall be broadly interpreted to achieve

that intent and those purposes.

Sec. 8823.006. APPLICABILITY OF OTHER GROUNDWATER

CONSERVATION DISTRICT LAW. Except as otherwise provided by this

chapter, Chapter 36, Water Code, applies to the district.

[Sections 8823.007-8823.020 reserved for expansion]

SUBCHAPTER A-1. TEMPORARY PROVISIONS

Sec. 8823.021. APPOINTMENT OF TEMPORARY DIRECTORS.

(a) Not later than the 45th day after the effective date of this

chapter, five temporary directors shall be appointed as follows:

(1) the Coryell County Commissioners Court shall

appoint one temporary director from each of the four commissioners

precincts in the county to represent the precincts in which the

temporary directors reside; and

(2) the county judge of Coryell County shall appoint

one temporary director who resides in the district to represent the

district at large.

(b) If there is a vacancy on the temporary board, the

authority who appointed the temporary director whose position is

vacant shall appoint a person to fill the vacancy.

(1) the time the temporary directors become initial

directors as provided by Section 8823.024; or

(2) the date this chapter expires under Section

8823.003.

Sec. 8823.022. 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 Coryell County Courthouse.

Sec. 8823.023. 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.

election must be conducted as provided by Sections 36.017(b), (c),

and (e)-(i), Water Code, and the Election Code. Section 36.017(d),

Water Code, does not apply to the confirmation election.

(d) The ballot for the election must be printed in

accordance with the Election Code and provide for voting for or

against the proposition: "The creation of the Tablerock

Groundwater Conservation District and the imposition of a

maintenance tax at a rate not to exceed two cents on each $100 of

assessed valuation of taxable property in the district."

(e) If a majority of the votes cast at the election are not

in favor of the creation of the district, the temporary directors

may hold a subsequent confirmation election. The subsequent

election may not be held before the first anniversary of the date on

which the previous election was held.

(f) The district may not impose a maintenance tax unless a

majority of the votes cast at the election are in favor of the

imposition of the maintenance tax.

Sec. 8823.024. INITIAL DIRECTORS. (a) If creation of the

district is confirmed at an election held under Section 8823.023,

the temporary directors become the initial directors and serve for

the terms provided by Subsection (b).

(b) The initial directors representing commissioners

precincts 2 and 4 serve until the election of directors under

Section 8823.025, and the initial directors representing

commissioners precincts 1 and 3 and the at-large director serve

until the next regularly scheduled election of directors under

Section 8823.053.

Sec. 8823.025. INITIAL ELECTION OF DIRECTORS. On the

uniform election date 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 8823.023, the district shall hold an

election of two directors to replace the initial directors who,

under Section 8823.024(b), serve until that election.

Sec. 8823.026. EXPIRATION OF SUBCHAPTER. This subchapter

expires September 1, 2012.

[Sections 8823.027-8823.050 reserved for expansion]

SUBCHAPTER B. BOARD OF DIRECTORS

Sec. 8823.051. DIRECTORS; TERMS. (a) The district is

governed by a board of five directors.

(b) Directors serve staggered four-year terms.

Sec. 8823.052. METHOD OF ELECTING DIRECTORS. One director

is elected from each county commissioners precinct in Coryell

County and one director is elected at large.

Sec. 8823.053. ELECTION DATE. The district shall hold an

election in the district to elect directors on the uniform election

date in November of each even-numbered year.

Sec. 8823.054. QUALIFICATIONS FOR ELECTION. (a) To be

qualified for election as a director, a person must reside in the

district.

(b) To be qualified for election as a director from a

precinct, a person must reside in that precinct.

[Sections 8823.055-8823.100 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIES

Sec. 8823.101. GROUNDWATER CONSERVATION DISTRICT POWERS

AND DUTIES. Except as provided by this chapter, the district has

the powers and duties provided by the general law of this state,

including Chapter 36, Water Code, and Section 59, Article XVI,

Texas Constitution, applicable to groundwater conservation

districts.

Sec. 8823.102. REGISTRATION AND REPORTING REQUIREMENTS FOR

CERTAIN EXEMPT WELLS. The district may adopt rules that require the

owner or operator of a well or class of wells exempt from permitting

under Section 36.117, Water Code, to register the well with the

district and, if the well is not exempt under Section 36.117(b)(1),

Water Code, to report groundwater withdrawals from the well using

reasonable and appropriate reporting methods and frequency.

Sec. 8823.103. WELL SPACING RULES; EXEMPTIONS. (a) Except

as provided by Subsection (b), the district shall exempt from the

well spacing requirements adopted by the district any well that is

completed on or before the effective date of those requirements.

(b) The district may provide by rule that a well may lose its

exemption under this section if the well is modified in a manner

that substantially increases the capacity of the well after the

effective date of the well spacing requirements adopted by the

district.

require any well or class of wells exempt from permitting under

Chapter 36, Water Code, to comply with the well spacing

requirements adopted by the district. The district shall apply

well spacing requirements uniformly to any well or class of wells

based on the size or capacity of the well and without regard to the

type of use of the groundwater produced by the well.

Sec. 8823.104. ADOPTION OF RULES AND ISSUANCE OF PERMITS.

Before the district adopts a management plan, the district may

adopt rules and issue permits.

Sec. 8823.105. CONTRACTS WITH OTHER GOVERNMENTAL ENTITIES.

(a) The district and another governmental entity, including a

river authority located in the district, may contract for the

performance by that entity of a district function.

(b) The district may accept a loan from Coryell County to

pay for any initial costs of the district, including costs related

to a confirmation election.

Sec. 8823.106. NO EMINENT DOMAIN POWER. The district may

not exercise the power of eminent domain.

Sec. 8823.107. DISTRICT TERRITORY REQUIREMENTS;

DISSOLUTION OF DISTRICT. (a) On September 1, 2011, the district

boundaries must include at least one county adjacent to Coryell

County.

(b) As soon as practicable after September 1, 2011, the

Texas Commission on Environmental Quality shall determine whether

the district complies with Subsection (a).

determines that the district does not comply with Subsection (a),

the commission shall dissolve the district in accordance with

Sections 36.304, 36.305, 36.307, 36.308, 36.309, and 36.310, Water

Code, regardless of whether the district meets the criteria for

dissolution under Section 36.304(a), Water Code.

(d) This section expires September 1, 2013.

[Sections 8823.108-8823.150 reserved for expansion]

SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS

Sec. 8823.151. REVENUE. To pay the maintenance and

operating costs of the district and to pay any bonds or notes issued

by the district, the district may:

(1) impose an ad valorem tax at a rate that:

(A) is approved by a majority of district voters

voting at an election held for that purpose; and

(B) does not exceed two cents on each $100 of

assessed valuation of taxable property in the district;

(2) assess fees for services or for water withdrawn

from nonexempt wells; or

(3) solicit and accept grants from any private or

public source.

[Sections 8823.152-8823.200 reserved for expansion]

SUBCHAPTER E. DISSOLUTION

Sec. 8823.201. ELECTION FOR DISSOLUTION. (a) If the

district has no outstanding bond or other long-term indebtedness,

the district may be dissolved by a favorable vote of a majority of

the registered voters of the district at an election held for that

purpose.

(b) The board shall hold a dissolution election if the board

receives a petition for dissolution signed by at least 50 percent of

the registered voters in the district as computed by using the list

of registered voters for Coryell County.

board shall:

(1) notify the Texas Commission on Environmental

Quality and the secretary of state of the dissolution; and

(2) transfer title to any assets of the district to

Coryell County.

SECTION 11.02. (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.

its recommendations relating to 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 12. EDWARDS AQUIFER AUTHORITY

SECTION 12.01. Section 1.11, Chapter 626, Acts of the 73rd

Legislature, Regular Session, 1993, is amended by amending

Subsection (f) and adding Subsections (f-1) and (f-2) 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. [~~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 but does not include a

facility to recirculate water at Comal or San Marcos Springs.

(f-1) The authority shall provide written notice of the

intent to own, finance, design, construct, operate, or maintain

recharge facilities to:

(1) each groundwater conservation district in the area

in which the recharge facility will be located;

(2) the mayor of each municipality in the area in which

the recharge facility will be located;

(3) the county judge of each county in the area in

which the recharge facility will be located; and

(4) each member of the legislature who represents the

area in which the proposed recharge facility will be located.

(f-2) Any entity within the county in which a recharge

facility is to be constructed shall be provided opportunity for

input and allowed to provide proposals for partnering with the

authority to own, finance, design, construct, operate, or maintain

the recharge facility.

SECTION 12.02. Subsections (a), (c), (e), (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 extent of the hydro-geologic

connection and interaction between surface water 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.

of this section and Section 1.26 of this article, for the period

beginning January 1, 2008, the amount of permitted withdrawals from

the aquifer may not exceed or be less than 572,000 [~~400,000~~]

acre-feet of water for each calendar year, which is the sum of all

regular permits issued or for which an application was filed and

issuance was pending action by the authority as of January 1, 2005.

(e) The authority may not allow withdrawals from the aquifer

through wells drilled after June 1, 1993, except for replacement,

test, or exempt wells or to the extent that the authority approves

an amendment to an initial regular permit to authorize a change in

the point of withdrawal under that permit [~~additional water as~~

~~provided by Subsection (d) and then on an interruptible basis~~].

(f) If the level of the aquifer is equal to or greater than

660 [~~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. [~~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 adjustments to [~~reductions in~~] the amount

of water that may be used or withdrawn by existing users or

categories of other users, including adjustments in accordance with

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 12.03. Subsection (g), Section 1.16, Chapter 626,

Acts of the 73rd Legislature, Regular Session, 1993, is amended to

read as follows:

(g) The authority shall issue an initial regular permit

without a term, and an initial regular permit remains in effect

until the permit is abandoned or[,] cancelled[~~, or retired~~].

SECTION 12.04. 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:

(1) the level of the aquifer is higher than 675 [~~665~~]

feet above sea level, as measured at Well J-17;

(2) the flow at Comal Springs as determined by Section

1.26(c) of this article is greater than 350 cubic feet per second;

and

(3) the flow at San Marcos Springs as determined by

Section 1.26(c) of this article is greater than 200 cubic feet per

second.

SECTION 12.05. Subsection (a), Section 1.22, Chapter 626,

Acts of the 73rd Legislature, Regular Session, 1993, is amended to

read as follows:

(a) The authority may acquire permitted rights to use water

from the aquifer for the purposes of:

(1) holding those rights in trust for sale or transfer

of the water or the rights to persons within the authority's

jurisdiction who may use water from the aquifer;

(2) holding those rights in trust as a means of

managing overall demand on the aquifer; or

(3) holding those rights for resale [~~or retirement as~~

~~a means of complying with pumping reduction requirements under this~~

~~article; or~~

[~~(4)~~ ~~retiring those rights, including those rights~~

~~already permitted~~].

SECTION 12.06. 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 in the program document, as

prescribed by Section 1.26A of this article, the [~~The~~] authority by

rule shall adopt [~~prepare and coordinate implementation of~~] a [~~plan~~

~~for~~] critical period management plan consistent with Sections

1.14(a), (f), and (h) of this article [~~on or before September 1,~~

~~1995~~]. The critical period management plan shall be adopted by the

authority no later than six months after the authority's receipt of

the program document. On adoption of the critical period

management plan, the authority shall provide a written report to

the governor, lieutenant governor, and speaker of the house of

representatives describing the actions taken in response to each

recommendation and, for each recommendation not implemented, the

reason it was not implemented. The plan [~~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;

(D) recreational and pleasure; and

(E) other uses that are authorized by law; and

(5) allow irrigation use to continue in order to

permit the user to complete the irrigation of a crop in progress.

(b) In this section, "MSL" means the elevation above mean

sea level, measured in feet, of the surface of the water in a well,

and "CFS" means cubic feet per second. Not later than January 1,

2008, the authority shall, by rule, adopt and enforce a critical

period management plan with withdrawal reduction percentages in the

amounts indicated in Tables 1 and 2 whether according to the index

well levels or the Comal or San Marcos Springs flow as applicable,

for a total in critical period Stage IV of 40 percent of the

permitted withdrawals under Table 1 and 35 percent under Table 2:

TABLE 1

CRITICAL PERIOD WITHDRAWAL REDUCTION STAGES

FOR THE SAN ANTONIO POOL

Comal

San Marcos Springs Flow cfs

Index Well J-17 Level MSL

Critical Period Stage

Withdrawal Reduction- San Antonio Pool

Springs Flow

San Marcos Springs Flow cfs

Index Well J-17 Level MSL

Critical Period Stage

Withdrawal Reduction- San Antonio Pool

cfs

San Marcos Springs Flow cfs

Index Well J-17 Level MSL

Critical Period Stage

Withdrawal Reduction- San Antonio Pool

225

<96

<660

20%

200

<80

<650

30%

150

N/A

<640

III

35%

100

N/A

<630

40%

TABLE 2

CRITICAL PERIOD WITHDRAWAL REDUCTION STAGES

FOR THE UVALDE POOL

Withdrawal Reduction-Uvalde Pool

Index Well J-27 Level MSL

Critical Period Stage

N/A

---

<850

20%

<845

III

35%

<842

withdrawal reduction percentages is triggered if the 10-day average

of daily springflows at the Comal Springs or the San Marcos Springs

or the 10-day average of daily aquifer levels at the J-17 Index Well

drops below the lowest number of any of the trigger levels indicated

in Table 1. A change to a critical period stage with lower

withdrawal reduction percentages is triggered only when the 10-day

average of daily springflows at the Comal Springs and the San Marcos

Springs and the 10-day average of daily aquifer levels at the J-17

Index Well are all above the same stage trigger level. The

authority may adjust the withdrawal percentages for Stage IV in

Tables 1 and 2 if necessary in order to comply with Subsection (d)

or (e) of this section.

(d) Beginning September 1, 2007, the authority may not

require the volume of permitted withdrawals to be less than an

annualized rate of 340,000 acre-feet, under critical period Stage

IV.

(e) After January 1, 2013, the authority may not require the

volume of permitted withdrawals to be less than an annualized rate

of 320,000 acre-feet, under critical period Stage IV unless, after

review and consideration of the recommendations provided under

Section 1.26A of this article, the authority determines that a

different volume of withdrawals is consistent with Sections

1.14(a), (f), and (h) of this article in maintaining protection for

federally listed threatened and endangered species associated with

the aquifer to the extent required by federal law.

(f) Notwithstanding Subsections (d) and (e) of this

section, the authority may require further withdrawal reductions

before reviewing and considering the recommendations provided

under Section 1.26A of this article if the discharge of Comal

Springs or San Marcos Springs declines an additional 15 percent

after Stage IV withdrawal reductions are imposed under Subsection

(b) of this section. This subsection expires on the date that

critical period management plan rules adopted by the authority

based on the recommendations provided under Section 1.26A of this

article take effect.

(g) Notwithstanding the existence of any stage of an interim

or final critical period adopted by the authority under this

section, a person authorized to withdraw groundwater from the

aquifer for irrigation purposes shall, without regard to the

withdrawal reductions prescribed for that stage, be allowed to

finish a crop already planted in the calendar year during which the

critical period is in effect.

Sec. 1.26A. DEVELOPMENT OF WITHDRAWAL REDUCTION LEVELS AND

STAGES FOR CRITICAL PERIOD MANAGEMENT THROUGH RECOVERY

IMPLEMENTATION PROGRAM. (a) The authority, with the assistance of

Texas A&M University, shall cooperatively develop a recovery

implementation program through a facilitated, consensus-based

process that involves input from the United States Fish and

Wildlife Service, other appropriate federal agencies, and all

interested stakeholders, including those listed under Subsection

(e)(1) of this section. The recovery implementation program shall

be developed for the species that are:

(1) listed as threatened or endangered species under

federal law; and

(2) associated with the aquifer.

(b) The authority shall enter into a memorandum of agreement

with the United States Fish and Wildlife Service, other appropriate

federal agencies, the Texas Commission on Environmental Quality,

the Parks and Wildlife Department, the Department of Agriculture,

the Texas Water Development Board, and other stakeholders, not

later than December 31, 2007, in order to develop a program document

that may be in the form of a habitat conservation plan used in

issuance of an incidental take permit as outlined in Subsection (d)

of this section.

agreement with the United States Fish and Wildlife Service, other

appropriate federal agencies, the Texas Commission on

Environmental Quality, the Parks and Wildlife Department, the

Department of Agriculture, the Texas Water Development Board, and

other stakeholders to develop a program document that may be in the

form of a habitat conservation plan used in issuance of an

incidental take permit as outlined in Subsection (d) of this

section not later than December 31, 2009.

(d) The authority, the Texas Commission on Environmental

Quality, the Parks and Wildlife Department, the Department of

Agriculture, the Texas Water Development Board, and other

stakeholders shall jointly prepare a program document that may be

in the form of a habitat conservation plan used in issuance of an

incidental take permit with the United States secretary of the

interior, through the United States Fish and Wildlife Service and

other appropriate federal agencies, under Section 4 or Section 6,

Endangered Species Act of 1973 (16 U.S.C. Section 1533 or 1535), as

applicable, based on the program developed under Subsection (a) of

this section. The program document shall:

(1) provide recommendations for withdrawal

adjustments based on a combination of spring discharge rates of the

San Marcos and Comal Springs and levels at the J-17 and J-27 wells

during critical periods to ensure that federally listed,

threatened, and endangered species associated with the Edwards

Aquifer will be protected at all times, including throughout a

repeat of the drought of record;

(2) include provisions to pursue cooperative and grant

funding to the extent available from all state, federal, and other

sources for eligible programs included in the cooperative agreement

under Subsection (c) of this section, including funding for a

program director; and

(3) be approved and executed by the authority, the

Texas Commission on Environmental Quality, the Parks and Wildlife

Department, the Department of Agriculture, the Texas Water

Development Board, and the United States Fish and Wildlife Service

not later than September 1, 2012, and the agreement shall take

effect December 31, 2012.

(e) Texas A&M University shall assist in the creation of a

steering committee to oversee and assist in the development of the

cooperative agreement under Subsection (c) of this section. The

steering committee must be created not later than September 30,

2007. The initial steering committee shall be composed of:

(1) a representative of each of the following

entities, as appointed by the governing body of that entity:

(A) the Edwards Aquifer Authority;

(B) the Texas Commission on Environmental

Quality;

(D) the Department of Agriculture;

(E) the Texas Water Development Board;

(F) the San Antonio Water System;

(G) the Guadalupe-Blanco River Authority;

(H) the San Antonio River Authority;

(I) the South Central Texas Water Advisory

Committee;

(J) Bexar County;

(K) CPS Energy; and

(L) Bexar Metropolitan Water District or its

successor; and

(2) nine other persons who respectively must be:

(A) a representative of a holder of an initial

regular permit issued to a retail public utility located west of

Bexar County, to be appointed by the authority;

(B) a representative of a holder of an initial

regular permit issued by the authority for industrial purposes, to

be appointed by the authority;

surface water right in the Guadalupe River Basin, to be appointed by

the Texas Commission on Environmental Quality;

(D) a representative of a holder of a municipal

surface water right in the Guadalupe River Basin, to be appointed by

the Texas Commission on Environmental Quality;

(E) a representative of a retail public utility

in whose service area the Comal Springs or San Marcos Springs is

located;

(F) a representative of a holder of an initial

regular permit issued by the authority for irrigation, to be

appointed by the commissioner of agriculture;

(G) a representative of an agricultural producer

from the Edwards Aquifer region, to be appointed by the

commissioner of agriculture;

(H) a representative of environmental interests

from the Texas Living Waters Project, to be appointed by the

governing body of that project; and

(I) a representative of recreational interests

in the Guadalupe River Basin, to be appointed by the Parks and

Wildlife Commission.

(f) The steering committee shall work with Texas A&M

University to:

(1) establish a regular meeting schedule and publish

that schedule to encourage public participation; and

(2) not later than October 31, 2007, hire a program

director to be housed at Texas A&M University.

(g) Texas A&M University may accept outside funding to pay

the salary and expenses of the program director hired under this

section and any expenses associated with the university's

participation in the creation of the steering committee or

subcommittees established by the steering committee.

(h) Where reasonably practicable or as required by law, any

meeting of the steering committee, the Edwards Aquifer area expert

science subcommittee, or another subcommittee established by the

steering committee must be open to the public.

(i) The steering committee appointed under this section

shall appoint an Edwards Aquifer area expert science subcommittee

not later than December 31, 2007. The expert science subcommittee

must be composed of an odd number of not fewer than seven or more

than 15 members who have technical expertise regarding the Edwards

Aquifer system, the threatened and endangered species that inhabit

that system, springflows, or the development of withdrawal

limitations. The Bureau of Economic Geology of The University of

Texas at Austin and the River Systems Institute at Texas State

University shall assist the expert science subcommittee. Chapter

2110, Government Code, does not apply to the size, composition, or

duration of the expert science subcommittee.

(j) The Edwards Aquifer area expert science subcommittee

shall, among other things, analyze species requirements in relation

to spring discharge rates and aquifer levels as a function of

recharge and withdrawal levels. Based on that analysis and the

elements required to be considered by the authority under Section

1.14 of this article, the expert science subcommittee shall,

through a collaborative process designed to achieve consensus,

develop recommendations for withdrawal reduction levels and stages

for critical period management including, if appropriate,

establishing separate and possibly different withdrawal reduction

levels and stages for critical period management for different

pools of the aquifer needed to maintain target spring discharge and

aquifer levels. The expert science subcommittee shall submit its

recommendations to the steering committee and all other

stakeholders involved in the recovery implementation program under

this section.

(k) The initial recommendations of the Edwards Aquifer area

expert science subcommittee must be completed and submitted to the

steering committee and other stakeholders not later than December

31, 2008, and should include an evaluation:

(1) of the option of designating a separate San Marcos

pool, of how such a designation would affect existing pools, and of

the need for an additional well to measure the San Marcos pool, if

designated;

(2) of the necessity to maintain minimum springflows,

including a specific review of the necessity to maintain a flow to

protect the federally threatened and endangered species; and

(3) as to whether adjustments in the trigger levels

for the San Marcos Springs flow for the San Antonio pool should be

made.

(l) In developing its recommendations, the Edwards Aquifer

area expert science subcommittee shall:

(1) consider all reasonably available science,

including any Edwards Aquifer-specific studies, and base its

recommendations solely on the best science available; and

(2) operate on a consensus basis to the maximum extent

possible.

(m) After development of the cooperative agreement, the

steering committee, with the assistance of the Edwards Aquifer area

expert science subcommittee and with input from the other recovery

implementation program stakeholders, shall prepare and submit

recommendations to the authority. The recommendations must:

(1) include a review of the critical period management

plan, to occur at least once every five years;

(2) include specific monitoring, studies, and

activities that take into account changed conditions and

information that more accurately reflects the importance of

critical period management; 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 program and cooperative

agreement described by this section.

(n) In this subsection, "recharge facility" means a dam,

reservoir, or other method of recharge project and associated

facilities, structures, or works but does not include facilities

designed to recirculate water at Comal or San Marcos Springs. The

steering committee shall establish a recharge facility feasibility

subcommittee to:

(1) assess the need for the authority or any other

entity to own, finance, design, construct, operate, or maintain

recharge facilities;

(2) formulate plans to allow the authority or any

other entity to own, finance, design, construct, operate, or

maintain recharge facilities;

(3) make recommendations to the steering committee as

to how to calculate the amount of additional water that is made

available for use from a recharge project including during times of

critical period reductions;

(4) maximize available federal funding for the

authority or any other entity to own, finance, design, construct,

operate, or maintain recharge facilities; and

(5) evaluate the financing of recharge facilities,

including the use of management fees or special fees to be used for

purchasing or operating the facilities.

(o) The steering committee may establish other

subcommittees as necessary, including a hydrology subcommittee, a

community outreach and education subcommittee, and a water supply

subcommittee.

(p) On execution of the memorandum of agreement described by

Subsection (b) of this section, the steering committee described by

Subsection (e) of this section may, by majority vote of its members,

vote to add members to the steering committee, change the makeup of

the committee, or dissolve the committee. If the steering

committee is dissolved, the program director hired under Subsection

(f) of this section shall assume the duties of the steering

committee.

(q) The authority shall provide an annual report to the

governor, lieutenant governor, and speaker of the house of

representatives not later than January 1 of each year that details:

(1) the status of the recovery implementation program

development process;

(2) the likelihood of completion of the recovery

implementation program and the cooperative agreement described by

Subsection (c) of this section;

(3) the extent to which the recommendations of the

Edwards Aquifer area expert science subcommittee are being

considered and implemented by the authority;

(4) any other actions that need to be taken in response

to each recommendation;

(5) reasons explaining why any recommendation

received has not been implemented; and

(6) any other issues the authority considers of value

for the efficient and effective completion of the program and the

cooperative agreement under this section.

SECTION 12.07. Subsections (b), (h), and (i), Section 1.29,

Chapter 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.

(h) Fees assessed by the authority may not be used to fund

the cost of reducing withdrawals or retiring permits or of

judgments or claims related to withdrawals or permit retirements

[~~Special fees collected under Subsection (c) or (d) of this section~~

~~may not be used to finance a surface water supply reservoir~~

~~project~~].

(i) The authority and other stakeholders, including state

agencies, listed under Section 1.26A of this article shall provide

money as necessary[~~, but not to exceed five percent of the money~~

~~collected under Subsection (d) of this section,~~] to finance the

activities of the steering committee and any subcommittees

appointed by the steering committee and the program director of the

recovery implementation program under Section 1.26A of this

article. The authority shall provide, as necessary, up to $75,000

annually, adjusted for changes in the consumer price index, to

finance the South Central Texas Water Advisory Committee's

administrative expenses and programs authorized under this

article.

SECTION 12.08. 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, and the recharge project is

not designed to recirculate water at Comal or San Marcos Springs.

SECTION 12.09. Subsections (b) and (d), Section 1.14,

Section 1.21, and Subsections (a), (c), and (d), Section 1.29,

Chapter 626, Acts of the 73rd Legislature, Regular Session, 1993,

are repealed.

SECTION 12.10. (a) Before January 1, 2012, a suit may not

be instituted in a state court contesting:

(1) the validity or implementation of this article; or

(2) the groundwater withdrawal amounts recognized in

Section 1.14, Chapter 626, Acts of the 73rd Legislature, Regular

Session, 1993, as amended by this Act.

(b) If applicable, a party that files a suit in any court

shall be automatically removed from the steering committee

established under Section 1.26A, Chapter 626, Acts of the 73rd

Legislature, Regular Session, 1993, as added by this Act.

instituted or maintained by a person who owns, holds, or uses a

surface water right and claims injury or potential injury to that

right for any reason, including any actions taken by the Edwards

Aquifer Authority to implement or enforce Article 1, Chapter 626,

Acts of the 73rd Legislature, Regular Session, 1993, as amended.

This section does not apply to suits brought pursuant to Section

1.45, Chapter 626, Acts of the 73rd Legislature, Regular Session,

1993.

SECTION 12.11. The change in law made by this article

applies only to a cause of action filed on or after the effective

date of this article. A cause of action that is filed before the

effective date of this article is governed by the law in effect

immediately before the effective date of this article, and that law

is continued in effect for that purpose.

SECTION 12.12. This article takes effect immediately if

this Act receives a vote of two-thirds of all the members elected to

each house, as provided by Section 39, Article III, Texas

Constitution. If this Act does not receive the vote necessary for

immediate effect, this article takes effect September 1, 2007.

ARTICLE 13. TERRITORY OF CULBERSON COUNTY GROUNDWATER CONSERVATION

DISTRICT

SECTION 13.01. Chapter 1075, Acts of the 75th Legislature,

Regular Session, 1997, is amended by adding Section 3A to read as

follows:

Sec. 3A. In addition to the portions of Culberson County

included in the boundaries of the district on August 31, 2007, the

boundaries of the district include all of the remaining territory

in Culberson County.

SECTION 13.02. (a) The annexation under Section 3A,

Chapter 1075, Acts of the 75th Legislature, Regular Session, 1997,

as added by this article, of the additional territory in Culberson

County that was not included in the boundaries of the Culberson

County Groundwater Conservation District on August 31, 2007, is

subject to ratification at an election held under Section 36.328,

Water Code, and this section in which only the voters residing in

the territory to be annexed are eligible to vote.

(b) The board of directors of the Culberson County

Groundwater Conservation District shall hold the ratification

election on the first uniform election date that occurs after the

effective date of this article that allows for compliance with the

time requirements of the Election Code.

election vote in favor of the annexation, the Culberson County

Groundwater Conservation District boundaries include all of

Culberson County.

(d) If a majority of the voters voting at the ratification

election do not vote in favor of the annexation, the Culberson

County Groundwater Conservation District boundaries are unchanged

and this article expires.

ARTICLE 14. EFFECTIVE DATE

SECTION 14.01. Except as otherwise provided by this Act,

this Act takes effect September 1, 2007.

______________________________

President of the Senate

Speaker of the House

I hereby certify that S.B. No. 3 passed the Senate on

March 27, 2007, by the following vote: Yeas 30, Nays 0;

May 24, 2007, Senate refused to concur in House amendments and

requested appointment of Conference Committee; May 26, 2007, House

granted request of the Senate; May 27, 2007, Senate adopted

Conference Committee Report by the following vote: Yeas 29,

Nays 1.

______________________________

Secretary of the Senate

I hereby certify that S.B. No. 3 passed the House, with

amendments, on May 23, 2007, by the following vote: Yeas 133,

Nays 8, one present not voting; May 26, 2007, House granted request

of the Senate for appointment of Conference Committee;

May 28, 2007, House adopted Conference Committee Report by the

following vote: Yeas 113, Nays 28, two present not voting.

______________________________

Chief Clerk of the House

Approved:

______________________________

Date

______________________________

Governor