By: Watson S.B. No. 747

(In the Senate - Filed February 19, 2007; March 6, 2007, read first time and referred to Committee on Natural Resources; April 26, 2007, reported adversely, with favorable Committee Substitute by the following vote: Yeas 8, Nays 0; April 26, 2007, sent to printer.)

COMMITTEE SUBSTITUTE FOR S.B. No. 747 By: Eltife

A BILL TO BE ENTITLED

AN ACT

relating to the authority of the Barton Springs-Edwards Aquifer Conservation District to charge certain fees and limit groundwater production during a drought.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Subsection (d), Section 36.205, Water Code, is amended to read as follows:

(d) The [Barton Springs-Edwards Aquifer Conservation District, the] Lone Star Groundwater Conservation District[,] and the Guadalupe County Groundwater Conservation District may not charge production fees for an annual period greater than $1 per acre-foot for water used for agricultural use or 17 cents per thousand gallons for water used for any other purpose. [The Barton Springs-Edwards Aquifer Conservation District may assess a water use fee against a specific municipality in an amount not to exceed 60 percent of the total funding of the district received from water use fees assessed against that municipality and other nonexempt users in the district.] This subsection shall take precedence over all prior enactments.

SECTION 2. Subchapter C, Chapter 8802, Special District Local Laws Code, is amended by adding Section 8802.1045 to read as follows:

Sec. 8802.1045. AMOUNT OF ANNUAL PRODUCTION FEE. (a) Except as provided by this section, the board may not charge an annual production fee of more than $1 per acre-foot for water permitted for agricultural use or 17 cents per thousand gallons for water permitted for any other purpose.

(b) For a permit first issued after September 1, 2007, or a permit first issued after September 9, 2004, and renewed after September 1, 2007, the board may charge, for the amount of water permitted under the permit as issued or renewed if the water is permitted for any purpose other than agricultural use, an annual production fee of not more than the greater of:

(1) 38 cents per thousand gallons; or

(2) the raw surface water cost of other wholesale suppliers serving customers in the district.

(c) For a permit that is materially amended after September 1, 2007, the board may charge, for only the additional amount of water authorized by the material amendment if the water is permitted for any purpose other than agricultural use, an annual production fee of not more than the greater of:

(1) 38 cents per thousand gallons; or

(2) the raw surface water cost of other wholesale suppliers serving customers in the district.

(d) For a permit first issued on or before September 9, 2004, that is renewed without material amendment after September 1, 2007, the board may not charge an annual production fee of more than 17 cents per thousand gallons for the amount of water permitted under the permit as renewed if the water is permitted for any purpose other than agricultural use.

(e) The board may adopt a differential rate structure for the nonagricultural production fees described by this section to promote alternatives to the exclusive use of groundwater resources.

(f) A material amendment under this section is an amendment to a permit that increases the amount of water permitted by more than 10 percent in one fiscal year or by more than 25 percent in any three-year period. The renewal on or after September 1, 2007, of a permit that was issued on or before September 9, 2004, is considered to be a material amendment for purposes of this section if the permit as renewed increases the amount of water permitted by an amount that exceeds the limits specified by this subsection.

SECTION 3. Section 8802.105, Special District Local Laws Code, is amended to read as follows:

Sec. 8802.105. CERTAIN WATER USE FEES PERMITTED. (a) Each year the board may assess against the City of Austin a water use fee in an amount not to exceed 60 [40] percent of the total funding [of] the district expects to receive for the next fiscal year [received] from water use fees assessed against Austin and other nonexempt users in that year, subject to the computation under Subsection (b).

(b) For purposes of computing water use fees under this section, the district shall estimate the amount of permitted pumpage for the next fiscal year by considering various factors including historical growth rates, future growth rates, the amount of permitted pumpage, historical permitted pumpage, and any pending applications for permitted pumpage. The district shall use the estimated amount of permitted pumpage and its water use fee rate to compute the water use fee to be assessed against the City of Austin for the district's next fiscal year. The district shall compute the water use fee assessed against the City of Austin at a rate of 17 cents per thousand gallons for the total amount of water permitted for any nonagricultural purpose, regardless of the rate actually imposed on or remitted by the permittee.

SECTION 4. Subchapter C, Chapter 8802, Special District Local Laws Code, is amended by adding Sections 8802.109 and 8802.110 to read as follows:

Sec. 8802.109. RESTRICTIONS ON PRODUCTION DURING DROUGHT. (a) During a period declared by the district to be a drought and only as specified in the district's approved management plan, the district may restrict or prohibit groundwater production as provided by this section.

(b) The district may restrict groundwater production on an equivalent, pro-rata basis for permits first issued on or before September 9, 2004, including permits renewed after September 1, 2007.

(c) The district, to protect the conditions of the aquifer, may restrict or prohibit groundwater production:

(1) for permits first issued after September 9, 2004; and

(2) for permits first issued on or before September 9, 2004, and amended after September 9, 2004, for any additional amount of water authorized by the amendment.

Sec. 8802.110. RESTRICTIONS ON PRODUCTION DURING EXTREME DROUGHT. (a) During a period declared by the district to be an extreme drought, to maintain groundwater production necessary to sustain human consumption and protect the public's health, safety, and welfare, the district, as provided by this section, may impose greater restrictions on groundwater production for industrial, commercial, or nonagricultural irrigation permits than the district imposes on permits for other uses.

(b) For an industrial, commercial, or nonagricultural irrigation permit first issued on or before September 9, 2004, the district may restrict withdrawals by an amount not to exceed 40 percent of the amount permitted on or before September 9, 2004, retaining at least 60 percent of the total authorized pumpage, if:

(1) an alternative water supply for at least 10 percent of the amount permitted is available and in place during the extreme drought; and

(2) any restriction imposed by the district under Sections 8802.109(b) and (c) remains in effect.

(c) For industrial, commercial, and nonagricultural irrigation permits first issued on or before September 9, 2004, and amended after September 9, 2004, the district may impose greater restrictions, including complete curtailment, for the additional amount of water authorized by the amendment than the district imposes on similarly situated permittees for other uses.

SECTION 5. The legislature finds that the Barton Springs-Edwards Aquifer Conservation District benefits the sustainable use of groundwater by promoting, through fee and permitting mechanisms, alternatives to the exclusive use of groundwater resources, including the conjunctive use of groundwater and surface water resources.

SECTION 6. This Act takes effect September 1, 2007.

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