TO:	Honorable Jim Keffer, Chair, House Committee on Natural Resources
FROM:	Ursula Parks, Director, Legislative Budget Board
IN RE:	HB4038 by Workman (Relating to the creation of the Western Travis County Groundwater Conservation District; providing general law authority to issue bonds; providing authority to impose fees.), 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:


House Bill 4038, as authored by Representative Paul Workman, would create the Western Travis County Groundwater Conservation District (District) in Western Travis 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 boundaries that include Travis County territory southwest of the Colorado River and Lake Travis and northwest of the boundary of the Barton Springs Edwards Aquifer Conservation District and does not include territory in the corporate limits or extraterritorial jurisdiction of the City of Bee Cave, the City of Lakeway, the City of West Lake Hills, the Village of Briarcliff, or the Village of the Hills. 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 Western Travis GCD will be comprised of portions of Travis County.  In the 2010 Census the total population of the proposed district is estimated to be 66,983.
     
Population growth in the specific area since the 2010 census is unknown. The 2010 population estimate for Travis County is 1,024,266. The Travis County population projections approved for the 2016 Region K Water Plan projects the population to grow to 1,273,260 in 2020, 1,508,642 in 2030 and 1,732,860 in 2040.
    
Location - The proposed district would be composed of southwest corner of Travis County. The proposed district will include anything west of the Barton Springs-Edwards Aquifer GCD and south of the Colorado river to Travis County lines, excluding the city limits of Bee Caves, Lakeway, West Lake Hills, Briarcliff and Village of the Hills. Portions of the City Limits of Bear Creek, Lago Vista, Point Venture and Austin are included in the proposed district.
 
Comments on Powers/Duties Different from Similar Types of Districts: Unlike general law GCDs, the bill provides five temporary directors be appointed within 90 days of the effective date of the Act, with the Travis County Commissioner appointing two, and the Travis County Judge, State Representative, and State Senator each appointing one. The temporary directors are required to hold an organizational meeting and select officers within 45 days of the date the last temporary director is appointed. The temporary directors are required to hold an initial directors' election not later than the uniform election date in November 2017, with the five initial directors being elected at large. The bill provides that the temporary directors will determine if staggered terms are in the best interest of the District and will determine if initial directors serve staggered two- and four-year terms or if all five directors serve concurrent four-year terms. All subsequent elected directors will serve four-year terms. Under the Water Code, general law GCD directors are elected by the single-precinct method.
 
Unlike general law GCDs, temporary directors may not exercise authorities granted by Water Code, relating to certain elections, taxes, bonds and notes, the power of eminent domain, management plan development and joint planning responsibilities, or adding territory or combining with another GCD. The management plan development and joint planning responsibilities, or adding territory or combining with another GCD prohibitions do not extend to the initial directors upon their election.
 
Unlike general law GCDs, the bill provides that groundwater withdrawals may not be regulated, permitted, or metered by the District for exempt wells that include wells used for domestic purposes for a single private residential household incapable of producing more than 25,000 gallons of water per day, and wells used for conventional farming and ranching activities including aquaculture, feedlot, or poultry operations. The bill provides that the District may not assess a construction fee on exempt wells. The bill provides that wells used for dewatering and monitoring in the production of coal or lignite is exempt from District permit requirements, regulations, and fees. The bill provides that all owners of non-exempt wells must obtain a District permit and pay any required fees before using groundwater. The bill prohibits the District from entering property to inspect an exempt well without the property owner's permission. The bill prohibits the District from exercising the power of eminent domain.
 
Unlike general law GCDs, the bill provides that the District may charge and collect a new well construction fee not to exceed $1,000 and levy and collect a water utility service connection fee not to exceed $1,000 for each new water service connection made after September 1, 2015, unless the water utility has surface water as its sole source of water. The bill provides that all taxes and other fees are prohibited. Under the Water Code, general law GCDs fund operation and maintenance expenses through ad valorem taxes or well production fees.  
 
Overlapping Services:  The boundaries of the District are the Travis County territory southwest of the Colorado River and Lake Travis and northwest of the boundary of the Barton Springs Edwards Aquifer Conservation District and does not include territory in the corporate limits or extraterritorial jurisdiction of the City of Bee Cave, the City of Lakeway, the City of West Lake Hills, the Village of Briarcliff, or the Village of the Hills. 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 4038 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 Travis County, 10 percent of the total water use was groundwater (Edwards BFZ Aquifer, Trinity Aquifer and Other Aquifer) in 2012. Ten percent of all the groundwater pumping was for municipal use.