Amend CSHB 1732 (Senate Committee Report) by adding a new SECTION ____ as follows:

SECTION ____.  Section 15.9751, Water Code is amended as follows:

Sec. 15.9751.  PRIORITY FOR APPLICATIONS [WATER CONSERVATION]. The board shall give priority to applications for funds for the implementation of water supply projects in the state water plan based on factors determined by the board, including but not limited to recommended implementation date, historical need for water supply infrastructure investment, per capita water supply need, ability of the applicant to finance the project, and whether an applicant [by entities that]:

(1)  has [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.