TO:	Honorable Robert Puente, Chair, House Committee on Natural Resources
FROM:	John S. O'Brien, Director, Legislative Budget Board
IN RE:	HB4052 by King, Phil (Relating to the creation, administration, powers, duties, operations and financing of the Upper Trinity Groundwater Conservation District.), 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 that:
 
The bill creates the Upper Trinity Groundwater Conservation District (District) in Hood, Montague, Parker, and Wise Counties 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. Creation of the District is subject to a confirmation election. 
 

1)   Population - The total 2000 Census population of Hood, Parker, Montague, and Wise Counties was 197,505.  The total population is projected to increase to 338,720 by 2020.
 
2)   Location - The boundaries of the district are coextensive with the boundaries of Hood, Parker, Montague, and Wise Counties.

3)  Comments on Powers/Duties Different from Similar Types of Districts-    Unlike general law GCDs, the bill provides that the District directors are appointed by the Commissioners Courts of Hood, Montague, Parker, and Wise Counties. The District’s temporary directors may hold a subsequent election if the initial election to confirm the District’s creation is defeated by a majority of the voters. If director appointments are not made within set time frames, or if vacancies occur on the board, the District directors are responsible for filling the vacancies on the District board. District directors are not entitled to receive fees of office for performance of duties.
 
Existing water wells are exempt from District well spacing requirements. The District may require any new well or class of wells exempt from permitting to comply with District spacing requirements. The District may prohibit the storage of groundwater in a surface impoundment if the water is to be sold or used for commercial or industrial activity. By rule, the District may require entities that drill or operate water wells for activities related to the exploration or production of oil or gas to report groundwater usage, and may require these entities pay District production fees on the amount of water actually withdrawn from the wells. Water Code Section 36.121 does not apply to the District. The District is provided enhanced fee remedies for enforcement purposes.
 
The District may not impose a tax for any purpose. District well production fees for non-agricultural use are capped at $0.30 per 1,000 gallons. The District is authorized to establish, adopt, and enforce the collection of fees and establish and enforce metering and reporting requirements before the adoption of the District’s management plan. The District would be dissolved on September 1, 2009, if it is not confirmed by the voters. Bill language relating to temporary provisions will expire on September 1, 2012.
 
4)  Overlapping Services-     There are no other GCDs in Hood, Montague, Parker, or Wise Counties. 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 TCEQ financial auditing requirements. 
 
6)  Water Use - According to TWDB 2004 Water Use estimates, 38 percent (18,860 acre-feet) of the water use in the 4-county area was from groundwater sources.  1,322 acre-feet were pumped for agricultural use.  Overall, 58 percent of the total water use is for municipal purposes, with 22 percent for agriculture and 15 percent for mining.