TO:	Honorable Troy Fraser, Chair, Senate Committee on Natural Resources
FROM:	Ursula Parks, Director, Legislative Budget Board
IN RE:	SB1870 by Hegar (Relating to the creation of the West Fort Bend Water Authority; providing authority to issue bonds; granting the power of eminent domain; providing an administrative penalty.), 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:
 
Senate Bill 1870, as authored by Senator Hegar, would create West Fort Bend Water Authority (Authority) under and essential to accomplish the purposes of Section 59, Article XVI, Texas Constitution, including the acquisition and provision of surface water and groundwater for residential, commercial, industrial, agricultural, and other uses, the reduction of groundwater withdrawals, the conservation, preservation, protection, and recharge of groundwater and of groundwater reservoirs or their subdivisions, the prevention of waste of groundwater, the control of subsidence caused by the withdrawal of water from groundwater reservoirs or their subdivisions, and other public purposes. 
 
1) Population: The very specific description of the proposed boundaries is in terminology which does not match Census geography, thus population can be estimated only for an area somewhat larger than the authority will actually cover. Population in this larger area, of which this authority will only be a part, could be as high as 204,244 based on the 2010 Census and planning data consistent with the 2012 State Water Plan.

Population growth in that specific area since the 2010 census is unknown. However, Fort Bend County is projected to continue its rapid development. In the 2012 State Water Plan, Fort Bend County was projected to grow from 310,242 in 2000 to 550,121 in 2010 and 719,737 in 2020. The 2010 census estimate for Fort Bend County was 585,375.
 
2) Location: The proposed authority's initial boundaries are described in a combination of stated municipalities and districts that are excluded within the county, Original Texas Land Surveys and metes and bounds. Due to the complexity of these boundaries for the various sub-areas of the authority, staff is able to determine only the general location of the proposed authority.
The proposed authority's area is approximately 395 square miles, and will be located in the eastern and southern portions of Fort Bend County. According to Bill Analysis by the Senate Research Center, this area will "mostly encompass Regulatory Area B, as designated by the Fort Bend Subsidence District, which consists mostly of unincorporated Fort Bend County." The authority appears to overlap portions of CCNs held by City of Beasley, Aqua Texas Inc. and several other municipalities and private systems.

3) Comments on Powers/Duties Different from Similar Types of Districts:  The bill states that an election to confirm the Authority is not required. The bill states that the Authority by rule may require all districts located within the Authority to send to the Authority written notice of the effective date of an annexation and require the districts to send to the Authority copies of any necessary documents describing the annexed land and describing the districts' boundaries as they exist after inclusion of the annexed land.  The bill states that territory may be annexed to the Authority, regardless of whether the territory is contiguous to the Authority, as provided by Chapter 49, Water Code.  The bill states that the bill does not prevail over or preempt a provision of Chapter 36, Water Code, or Section of the bill that is being implemented by the Fort Bend Subsidence District or applicable subsidence district.  The bill states that Chapter 36 of the Water Code (Groundwater Districts) does not apply to the Authority.  The Authority is divided into five single-member director precincts.  The bill specifies that in order to be eligible to serve as a director an individual must: (1)  be at least 18 years of age; (2)  be a resident of the authority; and (3)  have served as a director of one or more districts or as a member of the governing body of a municipality within the authority for a total of at least four years.  The bill states that Sections 49.451-49.455 of the Water Code, regarding posting signs in the Authority, Notice to purchasers, notice from the Authority, notice of unpaid standby fees and filing information do not apply to the Authority.  The Authority may charge the owner of a well located within the Authority's boundaries a fee or user fee according to the amount of water pumped from the well.  The board may undertake improvement projects and services that confer a special benefit on all or a definable part of the Authority.  The board may impose special assessments on property in that area, including property of a local government, based on the benefit conferred by the improvement project or services, to pay all or part of the cost of the project and services.  The board may provide improvements and services to an area outside the boundaries of the Authority if the board determines that there is a benefit to the Authority.  The Authority may finance with special assessments any improvement project or service authorized by this chapter or any other applicable law.  The Authority by rule may develop, prepare, revise, adopt, implement, enforce, and manage comprehensive water supply or drought contingency plans for the Authority, or any portion of the Authority.  The bill states that the Authority may wholly or partly develop, prepare, revise, adopt, implement, enforce, manage, or participate in a groundwater reduction plan that is applicable only to the Authority and one or more persons outside the authority.  The Authority may store, sell, or reuse: (1) water; or (2) any by-product from the Authority's operations.  The bill states that the Authority may not impose an ad valorem tax.  The bill states that the Authority may exercise the power of eminent domain; but not for the condemnation of land for the purpose of acquiring rights to groundwater or for the purpose of acquiring water or water rights.  The bill states that the Authority may sell revenue bonds and notes.  The TCEQ's review authority of the issuance of bonds or notes does not apply to the Authority.  If the bill does not receive a two-thirds vote of all members elected to each house, the District may not exercise the power of eminent domain.
 
4) Overlapping Services:  There is insufficient information to determine what entities the Authority overlaps.
 
5) TCEQ's Supervision:  As with general law districts, the TCEQ will have general supervisory authority, including review of financial reports.
 
6)  Water Use: SB 1870 specifies that "The authority is a regional water authority in Fort Bend County created under and essential to accomplish the purposes of Section 59, Article XVI, Texas Constitution, including the acquisition and provision of surface water and groundwater for residential, commercial, industrial, agricultural, and other uses, the reduction of groundwater withdrawals, the conservation, preservation, protection, and recharge of groundwater and of groundwater reservoirs or their subdivisions, and other public purposes stated in this chapter."
 
Within Fort Bend County, 62 percent of the total water use was groundwater (Gulf Coast and Brazos River Alluvium aquifers) in 2010.  Eighty percent of the groundwater pumping was for municipal use.  Future water use would be expected to place more emphasis on surface water to meet subsidence district goals.