85R13166 JXC-D

By: Larson H.B. No. 3987

A BILL TO BE ENTITLED

AN ACT

relating to the authority of the Texas Water Development Board to use the state participation account of the water development fund to provide financial assistance for the development of certain facilities.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Subchapter E, Chapter 16, Water Code, is amended by adding Section 16.145 to read as follows:

Sec. 16.145. SEAWATER DESALINATION OR AQUIFER STORAGE AND RECOVERY FACILITY. (a) In addition to using the account for the purposes described by Section 16.131, the board may use the state participation account of the development fund to provide financial assistance for the development of a seawater desalination or aquifer storage and recovery facility, including associated intake or distribution facilities, to meet existing or projected future water needs.

(b) Section 16.135 does not apply to the use of the state participation account to acquire a facility or an interest in a facility described by Subsection (a).

(c) Before the board may acquire a facility or an interest in a facility described by Subsection (a), the board must find affirmatively that:

(1) it is reasonable to expect that the state will recover its investment in the facility; and

(2) the public interest will be served by the acquisition of the facility.

(d) The board may not provide financial assistance under this section for a facility unless the facility is included in the state water plan.

(e) The board shall establish a point system for prioritizing facilities for which financial assistance is sought from the board under this section. The system must include a standard for the board to apply in determining whether a facility qualifies for financial assistance at the time the application for financial assistance is filed with the board.

(f) The board may not issue more than $200 million in water financial assistance bonds designated by the board as issued to provide financial assistance for facilities under this section.

(g) If the board does not provide financial assistance for a facility under this section before September 1, 2022, the board may not provide financial assistance for any facility under this section after that date.

SECTION 2. Section 16.182, Water Code, is amended to read as follows:

Sec. 16.182. PERMIT REQUIRED. (a) Before the board grants the application to buy, receive, or lease the facilities, the applicant shall first secure a permit for water use from the commission. If the facilities are to be leased, the permit may be for a term of years.

(b) The board may assist the applicant with securing a permit for a facility described by Section 16.145.

SECTION 3. Sections 17.957(b) and (c), Water Code, are amended to read as follows:

(b) The state participation account is composed of:

(1) money and assets attributable to water financial assistance bonds designated by the board as issued for projects described in Sections [Section] 16.131 and 16.145;

(2) money from the sale, transfer, or lease of a project described in Subdivision (1) that was acquired, constructed, reconstructed, developed, or enlarged with money from the state participation account;

(3) payments received under a bond enhancement agreement with respect to water financial assistance bonds designated by the board as issued for projects described in Sections [Section] 16.131 and 16.145;

(4) investment income earned on money on deposit in the state participation account;

(5) money disbursed to the fund from the state water implementation fund for Texas as authorized by Section 15.434; and

(6) any other funds, regardless of their source, that the board directs be deposited to the credit of the state participation account.

(c) Money on deposit in the state participation account may be used by the board for projects described in Sections [Section] 16.131 and 16.145 in the manner that the board determines necessary for the administration of the fund.

SECTION 4. This Act takes effect September 1, 2017.