TO:	Honorable Jim Keffer, Chair, House Committee on Natural Resources
FROM:	Ursula Parks, Director, Legislative Budget Board
IN RE:	HB2407 by Miller, Doug (relating to the creation of the Comal Trinity Groundwater Conservation District; providing authority to issue bonds; providing authority to impose assessments, fees, or surcharges.), Committee Report 1st House, Substituted

The Legislative Budget Board, in cooperation with the Texas Water Development Board (TWDB) and the Texas Commission on Environmental Quality (TCEQ), has determined that:
 
House Bill 2407, as authored by Representative Doug Miller, would create the Comal Trinity Groundwater Conservation District (District) in Comal County with the powers and duties of Water Code, Chapter 36 related to the general law for groundwater conservation districts (GCDs). The boundaries of the District are coextensive with the boundaries of Comal County, excluding any territory that is included in the boundaries of the Trinity Glen Rose Groundwater Conservation District. 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 not subject to a confirmation election.
 
Population - The Comal Trinity GCD will be comprised of the majority of Comal County.  In the 2010 Census the total population of the county was 108,472.
     
The Comal County population projections approved for the 2016 Region L Water Plan projects the population to grow to 140,825 in 2020, 178,399 in 2030 and 216,562 in 2040.
 
Location - The proposed district would be composed of all territory within Comal County, excluding the territories of the existing Trinity Glen Rose GCD, upon a successful confirmation election within the county.
 
Comments on Powers/Duties Different from Similar Types of Districts - Unlike general law GCDs, the bill provides that the Commissioners Court of Comal County appoint seven directors with three representing the incorporated areas of Comal County and four representing the four commissioner precincts. The Commissioners Court of Comal County shall appoint the initial directors before December 31, 2015. The directors will serve staggered four-year terms. Under the Water Code, general law GCD directors are elected by the single-precinct method.
 
Similar to general law GCDs, the bill provides special provisions for the District to contract with other entities and for the District to participate in the development and implementation of best management practices for water resource management. Unlike general law GCDs, the bill defines a well exempt from permitting to mean a well incapable of producing more than 10,000 gallons of groundwater per day, a metered well that produces less than 10 acre-feet of groundwater per calendar year, or a well that is incapable of producing more than 25,000 gallons of groundwater per day for domestic use or for livestock or poultry regardless of land lot size. Under the Water Code, an exempt well used for domestic use or for providing water for livestock or poultry is located on a tract of land larger than 10 acres and is drilled, completed or equipped so the well is incapable of producing more than 25,000 gallons per day.
 
Unlike general law GCDs, the District may not require the owner of an exempt well to install a meter or measuring device; assess and collect a production fee on an exempt well; or levy and collect ad valorem taxes. The bill provides that nonexempt wells drilled before the effective date shall be issued a production permit at an amount not less than the maximum production capacity of the well. The bill provides that the owner of an existing or new nonexempt well, at his own expense and within 36 months of the effective date, shall install, operate and maintain a water-well meter or alternative measuring devise or method approved by the District. Unlike general law GCDs, the District may not exercise the power of eminent domain.
 
Similar to general law GCDs, the District may set administrative fees that do not unreasonably exceed the cost to perform the administrative function. Unlike general law GCDs, the District may assess annual administrative fees that do not exceed $15 for exempt domestic and livestock wells and $50 for other exempt wells. Similar to general law GCDs, the District may impose reasonable production fees based on the amount of groundwater actually produced by nonexempt wells. Annual District production fees may not exceed $1 per acre-foot for groundwater used for agricultural purposes or $40 per acre-foot for groundwater used for any other purpose. Under the Water Code, general law GCDs may impose annual production fees that may not exceed $1 per acre-foot for groundwater used for agricultural purposes or $10 per acre-foot for groundwater used for any other purpose.
 
Overlapping Services - The boundaries of the District are coextensive with the boundaries of Comal County, excluding any territory that is included in the boundaries of the Trinity Glen Rose Groundwater Conservation District. The southeastern part of Comal County is within the boundaries of the Edwards Aquifer Authority (EAA), which will retain jurisdiction for management of the Edwards aquifer. The EAA Act authorizes GCDs to be created within the EAA's boundaries to manage other aquifers that occur within the EAA's boundaries. GCD functions do not conflict with services provided by other types of water districts or utilities.
 
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.
      
Water Use - HB 2407 specifies that "the district has all of the rights, powers, privileges, authority, functions, and duties provided by the general law of this state, including Chapter 36, Water Code, applicable to groundwater conservation districts created under Section 59, Article XVI, Texas Constitution".
 
Within Comal County, 66 Percent of the total water use was groundwater (Trinity Aquifer and Edwards-BFZ Aquifer) in 2012. Eighty-eight percent of all the groundwater pumping was for municipal use.