LEGISLATIVE BUDGET BOARD
Austin, Texas
 
WATER DEVELOPMENT POLICY IMPACT STATEMENT
 
80TH LEGISLATIVE REGULAR SESSION
 
April 23, 2007

TO:
Honorable Robert Puente, Chair, House Committee on Natural Resources
 
FROM:
John S. O'Brien, Director, Legislative Budget Board
 
IN RE:
HB3986 by Dunnam (Relating to the creation of the McLennan County Groundwater Conservation District; providing authority to impose a tax and issue bonds.), As Introduced

The Legislative Budget Board, in cooperation with the Texas Water Development Board (TWDB) and the Texas Commission on Environmental Quality (TCEQ), has determined the following:
 
The bill creates the McLennan County Groundwater Conservation District (District) in McLennan County with the powers and duties of Water Code, Chapter 36 related to general law for groundwater conservation districts (GCDs). The purpose of the District is to benefit property by providing for the conservation, preservation, protection, recharging, and prevention of waste of groundwater, and to control subsidence caused by the withdrawal of groundwater under powers conferred by Article XVI, Section 59 of the Texas Constitution. The District’s creation is subject to a confirmation election.

1) Population - The total 2000 Census population of McLennan County was 213,517.  The total population is projected to increase to 250,398 by 2020.
 
2) Location - The boundaries of the proposed district are coextensive with the boundaries of McLennan County.
 
3) Comments on Powers/Duties Different from Similar Types of Districts    The District’s temporary directors may hold subsequent elections if the initial election to confirm the District’s creation is defeated. The temporary directors become the initial directors at the time the District is confirmed by the voters, and serve staggered two- and four-year terms. Permanent directors are appointed to four-year terms by the McLennan County Commissioners Court. The District is authorized to require a registration or permit for any activity that extracts groundwater. The District may impose additional requirements or limitations on permits to transfer groundwater out of the District. The District is authorized to adopt rules and issue permits before it adopts a management plan. The District may not exercise the power of eminent domain. The bill authorizes District revenue through service fees, user fees, well production fees, and grants. Fee caps are not specified except that the District may not impose a fee for agricultural use that is more than 20 percent of the rate for municipal use. The bill includes provisions for an election to dissolve the District if petitioned by over 50 percent of the registered voters in McLennan County. The District is dissolved on December 31, 2012, if not confirmed by the voters.
 
4) Overlapping Services  -  There are no other GCDs in McLennan County. GCD functions do not conflict with services provided by other types of water districts or utilities.
 
5) TCEQ's Supervision -  As with general law GCDs, the TCEQ will have general supervisory authority, including bond review authority and authority as it is related to the District’s development and implementation of a management plan. The District would not have to comply with the TCEQ’s financial or auditing requirements.
 
6) Water Use – In 2004, 73 percent of the total water use in McLennan County was for municipal use, with 12 percent for power generation and 9 percent for irrigation. Twenty-nine percent of the total water use (and 32 percent of the municipal water use) is from groundwater sources. 


Source Agencies:
582 Commission on Environmental Quality, 580 Water Development Board
LBB Staff:
JOB, DB