85R8587 GRM-F

By: Larson H.B. No. 4050

A BILL TO BE ENTITLED

AN ACT

relating to exports of groundwater from a groundwater conservation district.

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

SECTION 1. Section 36.113(d), Water Code, is amended to read as follows:

(d) This subsection does not apply to the renewal of an operating permit issued under Section 36.1145. Before granting or denying a permit, or a permit amendment issued in accordance with Section 36.1146, the district shall consider whether:

(1) the application conforms to the requirements prescribed by this chapter and is accompanied by the prescribed fees;

(2) the projected effect of the proposed production [use of water] unreasonably affects aquifer conditions, depletion, subsidence, existing groundwater and surface water resources, [or] existing permit holders, or registered wells that are exempt from the requirement to obtain a permit under this chapter or district rules;

(3) the proposed use of water is dedicated to any beneficial use;

(4) the proposed use of water is consistent with the district's approved management plan;

(5) if the well will be located in the Hill Country Priority Groundwater Management Area, the proposed use of water from the well is wholly or partly to provide water to a pond, lake, or reservoir to enhance the appearance of the landscape;

(6) the applicant has agreed to avoid waste and achieve water conservation; and

(7) the applicant has agreed that reasonable diligence will be used to protect groundwater quality and that the applicant will follow well plugging guidelines at the time of well closure.

SECTION 2. The heading to Section 36.122, Water Code, is amended to read as follows:

Sec. 36.122. EXPORT [TRANSFER] OF GROUNDWATER [OUT OF DISTRICT].

SECTION 3. Section 36.122, Water Code, is amended by amending Subsections (a), (b), (c), (d), (f), (g), and (h) and adding Subsections (j-1), (j-2), and (r) to read as follows:

(a) If an application for a permit or an amendment to a permit under Section 36.113 proposes the export [transfer] of groundwater [outside of a district's boundaries], the district may also consider the provisions of this section in determining whether to grant or deny the permit or permit amendment.

(b) A district may promulgate rules requiring a person to obtain a permit or an amendment to a permit under Section 36.113 from the district to export [for the transfer of] groundwater [out of the district] to:

(1) increase, on or after March 2, 1997, the amount of groundwater to be exported [transferred] under a continuing arrangement in effect before that date; or

(2) export [transfer] groundwater [out of the district] on or after March 2, 1997, under a new arrangement.

(c) Except as provided in Section 36.113(e), the district may not impose more restrictive permit conditions on exporters [transporters] than the district imposes on existing in-district users.

(d) The district may impose a reasonable fee for processing an application under this section. The fee may not exceed fees that the district imposes for processing other applications under Section 36.113. An application filed under [to comply with] this section shall be considered and processed under the same procedures as other applications for permits under Section 36.113 and shall be combined with applications filed to obtain a permit [for in-district water use] under Section 36.113 from the same applicant.

(f) In reviewing a proposed [transfer of] groundwater export [out of the district], the district shall consider:

(1) the projected availability and demand for groundwater [of water] in the district and the projected availability and demand for water in the proposed receiving area during the period for which the water supply is requested; and

(2) [the projected effect of the proposed transfer on aquifer conditions, depletion, subsidence, or effects on existing permit holders or other groundwater users within the district; and

[(3)] the latest approved state water plan, regional water plan, and [approved] district management plan.

(g) The district may not deny a permit based on the fact that the applicant seeks to export [transfer] groundwater [outside of the district] but may limit a permit issued under this section if conditions in Subsection (f) warrant the limitation, subject to Subsection (c).

(h) The [In addition to conditions provided by Section 36.1131, the] permit shall specify:

(1) the amount of water that may be exported from [transferred out of] the district; and

(2) the period for which the water may be exported [transferred].

(j-1) A term under Subsection (i) or (j) shall automatically be extended on or before its expiration:

(1) to a term that is not shorter than the term of an operating permit for the production of water to be exported that is in effect at the time of the extension; and

(2) for each additional term for which that operating permit for production is renewed under Section 36.1145 or remains in effect under Section 36.1146.

(j-2) A permit automatically extended under Subsection (j-1) continues to be subject to conditions contained in the permit as issued before the automatic extension.

(r) This subsection applies only to a district that requires separate operating permits to authorize groundwater production associated with the export of groundwater. A permit holder authorized to export groundwater under this section may not export an amount of groundwater in excess of the amount of groundwater authorized to be produced under one or more associated operating permits. The district may authorize a permit holder to export an amount that exceeds the amount authorized to be produced under operating permits associated with the export authorization if:

(1) the district issues operating permits that vary in the amount of groundwater authorized to be produced in:

(A) different years; or

(B) different permit terms; and

(2) the export authorization states that the permit holder may not export an amount of groundwater greater than the amount of groundwater authorized for the associated operating permit during the corresponding year or permit term.

SECTION 4. Sections 36.122(k), (l), (n), (o), and (q), Water Code, are repealed.

SECTION 5. This Act takes effect immediately if it receives a vote of two-thirds of all the members elected to each house, as provided by Section 39, Article III, Texas Constitution. If this Act does not receive the vote necessary for immediate effect, this Act takes effect September 1, 2017.