85R961 AAF-F

By: Perry S.B. No. 1392

A BILL TO BE ENTITLED

AN ACT

relating to groundwater conservation districts.

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

SECTION 1. Section 36.001, Water Code, is amended by amending Subdivisions (25) and (30) and adding Subdivision (32) to read as follows:

(25) "Modeled available groundwater" means the total amount of water within a common reservoir that the executive administrator determines may be produced on an average annual basis to achieve a desired future condition established under Section 36.108.

(30) "Desired future condition" means a quantitative description, adopted in accordance with Section 36.108, of the desired condition of a common reservoir [the groundwater resources] in a management area at one or more specified future times.

(32) "Common reservoir" means an aquifer or subdivision of a groundwater reservoir delineated in conjunction with a management area under Section 36.108.

SECTION 2. Section 36.0015(b), Water Code, is amended to read as follows:

(b) In order to provide for the conservation, preservation, protection, recharging, and prevention of waste of groundwater, and of groundwater reservoirs or their subdivisions, and to control subsidence caused by withdrawal of water from those groundwater reservoirs or their subdivisions, consistent with the objectives of Section 59, Article XVI, Texas Constitution, groundwater conservation districts may be created as provided by this chapter. Groundwater conservation districts created as provided by this chapter are the state's preferred method of groundwater management in order to:

(1) protect property rights;

(2) [,] balance the conservation and provide for the orderly development of groundwater to meet the needs of this state;

(3) [, and] use the best available science;

(4) treat each groundwater owner overlying a common reservoir fairly; and

(5) act jointly with other groundwater conservation districts [in the conservation and development of groundwater] through common rules developed, adopted, and promulgated by those districts [a district] in accordance with the provisions of this chapter.

SECTION 3. Sections 36.002(a), (b), and (d), Water Code, are amended to read as follows:

(a) A [The legislature recognizes that a] landowner owns the groundwater below the surface of the landowner's land as real property.

(b) The groundwater ownership and rights described by this section entitle the landowner, including a landowner's lessees, heirs, or assigns, to:

(1) drill for and produce the groundwater below the surface of real property, subject to Subsection (d), without causing waste or malicious drainage of other property or negligently causing subsidence; [and]

(2) the right to use produced groundwater for a beneficial use without causing waste; and

(3) [have] any other right recognized under common law.

(d) This section does not:

(1) prohibit a district from limiting or prohibiting the drilling of a well by a landowner for failure or inability to comply with minimum well spacing or tract size requirements or with production limits based on the amount of land owned by the landowner adopted by the district;

(2) affect the ability of a district to regulate groundwater production as authorized under Section 36.113, 36.116, or 36.122 or otherwise under this chapter or a special law governing a district; or

(3) require that a rule adopted by a district allocate to each landowner a proportionate share of available groundwater for production from the aquifer based on the number of acres owned by the landowner.

SECTION 4. Section 36.020(a), Water Code, is amended to read as follows:

(a) At an election to create a district, the temporary directors may include a proposition for the issuance of bonds or notes, the levy of taxes to retire all or part of the bonds or notes, and the levy of a maintenance tax. The maintenance tax rate may not exceed 37.5 [50] cents on each $100 of assessed valuation.

SECTION 5. Section 36.051, Water Code, is amended by adding Subsection (b-1) to read as follows:

(b-1) A representative or employee of the governing body of a river authority is ineligible for appointment or election as a director.

SECTION 6. Section 36.062, Water Code, is amended to read as follows:

Sec. 36.062. OFFICES AND MEETING PLACES. (a) The board shall designate from time to time and maintain one or more regular offices for conducting the business of the district and maintaining the records of the district. Such offices must be reasonably accessible to the public and may be located either inside or outside the district's boundaries as determined in the discretion of the board.

(b) The board shall designate one or more places reasonably accessible to members of the public who reside in the district inside or outside the district for conducting the meetings of the board.

SECTION 7. Sections 36.101(a) and (c), Water Code, are amended to read as follows:

(a) A district shall adopt [may make] and enforce rules, including rules limiting groundwater production based on tract size or the spacing of wells, to provide for conserving, preserving, protecting, and recharging of the groundwater or of a groundwater reservoir or its subdivisions in order to control subsidence, prevent degradation of water quality, or prevent waste of groundwater and to carry out the powers and duties provided by this chapter. In adopting a rule under this chapter, a district shall:

(1) [consider all groundwater uses and needs;

[(2)] develop rules that are fair and impartial;

(2) [(3)] consider the groundwater ownership and rights described by Section 36.002;

(3) [(4) consider the public interest in conservation, preservation, protection, recharging, and prevention of waste of groundwater, and of groundwater reservoirs or their subdivisions, and in controlling subsidence caused by withdrawal of groundwater from those groundwater reservoirs or their subdivisions, consistent with the objectives of Section 59, Article XVI, Texas Constitution;

[(5)] consider the goals developed as part of the district's management plan under Section 36.1071; and

(4) [(6)] not discriminate based on:

(A) the prior use of groundwater; or

(B) whether the proposed groundwater use is inside or outside of the district [between land that is irrigated for production and land that was irrigated for production and enrolled or participating in a federal conservation program].

(c) The board shall compile its rules and make them available for use and inspection at each of the district's offices [principal office].

SECTION 8. Sections 36.1071(e), (f), and (h), Water Code, are amended to read as follows:

(e) In the management plan described under Subsection (a), the district shall:

(1) identify the performance standards and management objectives under which the district will operate to achieve the management goals identified under Subsection (a);

(2) specify, in as much detail as possible, the actions, procedures, performance, and avoidance that are or may be necessary to effect the plan, including specifications and proposed rules;

(3) for each common reservoir designated under Section 36.108, include estimates of the following:

(A) modeled available groundwater in the common reservoir [district] based on the desired future condition established under Section 36.108;

(B) the amount of groundwater from the common reservoir being used [within the district] on an annual basis;

(C) the annual amount of recharge from precipitation, if any, to the groundwater resources of the common reservoir [within the district];

(D) [for each aquifer,] the estimated annual volume of water that discharges from:

(i) the common reservoir [aquifer] to springs and any surface water bodies, including lakes, streams, and rivers; and

(ii) evaporation or transpiration; and

(E) the annual volume of lateral and vertical flow into and out of each common reservoir and any adjoining common reservoir [the district within each aquifer and between aquifers in the district, if a groundwater availability model is available];

[(F) the projected surface water supply in the district according to the most recently adopted state water plan; and

[(G) the projected total demand for water in the district according to the most recently adopted state water plan;] and

(4) identify each common reservoir jointly managed by the district under Section 36.108 [consider the water supply needs and water management strategies included in the adopted state water plan].

(f) The district shall adopt rules necessary to implement the management plan. Prior to the development of the management plan and its approval under Section 36.1072, the district may not adopt rules other than rules pertaining to the registration and interim permitting of new and existing wells and rules governing spacing and procedure before the district's board; however, the district may not adopt any rules limiting the production of wells, except rules requiring that groundwater produced from a well be put to a nonwasteful, beneficial use. [The district may accept applications for permits under Section 36.113, provided the district does not act on any such application until the district's management plan is approved as provided in Section 36.1072.]

(h) In developing its management plan, the district shall use:

(1) the groundwater availability modeling information provided by the executive administrator;

(2) [together with] any available site-specific information that has been provided by the district to the executive administrator for review and comment before being used in the plan; and

(3) the designation of the appropriate common reservoir within a management area under Section 36.108.

SECTION 9. Sections 36.108(c), (d), (d-1), (d-2), (d-3), and (d-4), Water Code, are amended to read as follows:

(c) The district representatives shall meet at least annually to conduct joint planning with the other districts in the management area [and to review the management plans, the accomplishments of the management area, and proposals to adopt new or amend existing desired future conditions]. In conducting joint planning, [reviewing the management plans, the] districts shall consider:

(1) the boundaries of each common reservoir in [goals of each management plan and its impact on planning throughout] the management area;

(2) the effectiveness of the measures established by each district's management plan generally in the management area and specifically for:

(A) conserving and protecting groundwater; and

(B) preventing waste[, and the effectiveness of these measures in the management area generally];

(3) any other matters that the boards consider relevant to the protection and conservation of groundwater and the prevention of waste in the management area; and

(4) the degree to which [each management plan achieves] the desired future conditions in the management area are being achieved [established during the joint planning process].

(d) Not later than September 1, 2010, and every five years thereafter, the districts shall consider groundwater availability models, groundwater monitoring data, and other data or information for the management area and shall propose for adoption desired future conditions for the relevant aquifers within the management area. Before voting on the proposed desired future conditions of the aquifers under Subsection (d-2), the districts shall consider:

(1) [aquifer uses or conditions within the management area, including conditions that differ substantially from one geographic area to another;

[(2)] the water supply needs and water management strategies included in the state water plan;

(2) [(3)] hydrological conditions that affect groundwater, including for each common reservoir [aquifer] in the management area the total estimated recoverable storage as provided by the executive administrator, and the average annual recharge, inflows, and discharge;

(3) [(4)] other environmental impacts, including impacts on spring flow and other interactions between groundwater and surface water;

(4) [(5)] the impact on subsidence;

(5) [(6) socioeconomic impacts reasonably expected to occur;

[(7)] the impact on the interests and rights in private property, including ownership and the rights of management area landowners and their lessees and assigns in groundwater as recognized under Section 36.002;

(6) [(8)] the feasibility of achieving the desired future condition and the degree to which any previously adopted desired future condition is being achieved; and

(7) [(9)] any other information relevant to the specific desired future conditions.

(d-1) After considering and documenting the factors described by Subsection (d) and other relevant scientific and hydrogeological data, the districts may establish different desired future conditions for[:

[(1)] each common reservoir [aquifer, subdivision of an aquifer, or geologic strata] located in whole or in part within the boundaries of the management area[; or

[(2) each geographic area overlying an aquifer in whole or in part or subdivision of an aquifer within the boundaries of the management area].

(d-2) The desired future conditions proposed under Subsection (d) must provide a balance between the highest practicable level of groundwater production and the conservation, preservation, protection, recharging, and prevention of waste of groundwater and control of subsidence in each common reservoir in the management area. This subsection does not prohibit the establishment of desired future conditions that provide for the reasonable long-term management of groundwater resources consistent with the management goals under Section 36.1071(a). The desired future conditions proposed under Subsection (d) must be approved by a two-thirds vote of all the district representatives for distribution to the districts in the management area. A period of not less than 90 days for public comments begins on the day the proposed desired future conditions are mailed to the districts. During the public comment period and after posting notice as required by Section 36.063, each district shall hold a public hearing on any proposed desired future conditions relevant to that district. During the public comment period, the district shall make available in its office a copy of the proposed desired future conditions and any supporting materials, such as the documentation of factors considered under Subsection (d) [and groundwater availability model run results]. After the public hearing, the district shall compile for consideration at the next joint planning meeting a summary of relevant comments received, any suggested revisions to the proposed desired future conditions, and the basis for the revisions.

(d-3) After the earlier of the date on which all the districts have submitted their district summaries or the expiration of the public comment period under Subsection (d-2), the district representatives shall reconvene to review the reports, consider any district's suggested revisions to the proposed desired future conditions, and finally adopt the desired future conditions for the management area. The desired future conditions must be approved by [adopted as] a resolution adopted by a two-thirds vote of all the district representatives not later than the 60th day after the date the public comment period expires. Not later than the 120th day after the expiration of the public comment period, the [The] district representatives shall produce a desired future conditions explanatory report for the management area and submit to the development board and each district in the management area proof that notice was posted for the joint planning meeting, a copy of the resolution, and a copy of the explanatory report. The report must:

(1) identify each desired future condition and each common reservoir to which the condition applies;

(2) provide the policy and technical justifications for each desired future condition;

(3) include documentation that the factors under Subsection (d) were considered by the districts and a discussion of how the adopted desired future conditions impact each factor;

(4) list other desired future condition options considered, if any, and the reasons why those options were not adopted; and

(5) discuss reasons why recommendations made by advisory committees and relevant public comments received by the districts were or were not incorporated into the desired future conditions.

(d-4) Not later than 120th day after the date the public comment period expires, the district shall submit the explanatory report under Subsection (d-3) to the development board and [As soon as possible after a district receives the desired future conditions resolution and explanatory report under Subsection (d-3), the district shall] adopt the desired future conditions in the resolution required by Subsection (d-3) and the explanatory report that apply to the district.

SECTION 10. Section 36.1083(e), Water Code, is amended to read as follows:

(e) Not later than the 10th day after receiving a petition described by Subsection (b), the district shall submit a copy of the petition to the development board and to each district overlying any part of the applicable common reservoir. On receipt of the petition, the development board shall conduct:

(1) an administrative review to determine whether the desired future condition established by the district meets the criteria in Section 36.108(d); and

(2) a study containing scientific and technical analysis of the desired future condition, including consideration of:

(A) the hydrogeology of the common reservoir, including the identification and determination of boundaries of each common reservoir in the management area [aquifer];

(B) the explanatory report provided to the development board under Section 36.108(d-3);

(C) the factors described under Section 36.108(d); and

(D) any relevant:

(i) groundwater availability models;

(ii) published studies;

(iii) estimates of total recoverable storage capacity;

(iv) average annual amounts of recharge, inflows, and discharge of groundwater; or

(v) information provided in the petition or available to the development board.

SECTION 11. Section 36.1084(b), Water Code, is amended to read as follows:

(b) The executive administrator shall provide each district and regional water planning group located wholly or partly in the management area with the modeled available groundwater in the management area based upon the desired future conditions adopted by the districts. The modeled available groundwater must be reported as the total available groundwater for each common reservoir identified under Section 36.108.

SECTION 12. Sections 36.1085 and 36.1086, Water Code, are amended to read as follows:

Sec. 36.1085. MANAGEMENT PLAN GOALS AND OBJECTIVES. Each district in the management area shall ensure that its management plan contains goals and objectives consistent with achieving the desired future conditions of the relevant common reservoirs [aquifers] as adopted during the joint planning process.

Sec. 36.1086. JOINT EFFORTS BY DISTRICTS IN A MANAGEMENT AREA. Districts located within the same management areas or in adjacent management areas may contract to jointly conduct studies or research, or to construct projects, under terms and conditions that the districts consider beneficial. These joint efforts may include studies of groundwater availability and quality, aquifer modeling, aquifer monitoring, and the interaction of groundwater and surface water; educational programs; the purchase and sharing of equipment; and the implementation of projects to make groundwater available, including aquifer recharge, brush control, weather modification, desalination, regionalization, and treatment or conveyance facilities. The districts may contract under their existing authorizations including those of Chapter 791, Government Code, if their contracting authority is not limited by Sections 791.011(c)(2) and (d)(3) and Section 791.014, Government Code.

SECTION 13. 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) for each water well, the proposed spacing of the wells conforms to the district's rules regulating the spacing of wells under Section 36.116;

(3) the proposed use of water unreasonably affects existing groundwater and surface water resources or existing permit holders;

(4) [(3)] the proposed annual production of the well conforms to the district's rules regulating the groundwater production of wells under Section 36.116;

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

(6) [(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;

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

(8) [(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 14. Section 36.1131(b), Water Code, is amended to read as follows:

(b) The permit may include:

(1) the name and address of the person to whom the permit is issued;

(2) the location of the well;

(3) the date the permit is to expire if no well is drilled;

(4) a statement of the purpose for which the well is to be used;

(5) a requirement that the water withdrawn under the permit be put to beneficial use at all times;

(6) the location of the use of the water from the well;

(7) a water well closure plan or a declaration that the applicant will comply with well plugging guidelines and report closure to the commission;

(8) the conditions and restrictions[, if any,] placed by district rules adopted under Section 36.116 on the rate and amount of withdrawal;

(9) any conservation-oriented methods of drilling and operating prescribed by the district;

(10) a drought contingency plan prescribed by the district; and

(11) other terms and conditions as provided by Section 36.113.

SECTION 15. The heading to Section 36.1132, Water Code, is amended to read as follows:

Sec. 36.1132. DISTRICT MANAGEMENT TO ACHIEVE DESIRED FUTURE CONDITIONS [PERMITS BASED ON MODELED AVAILABLE GROUNDWATER].

SECTION 16. Section 36.1132, Water Code, is amended by amending Subsections (b) and (c) and adding Subsections (b-1) and (d) to read as follows:

(b) In issuing permits, each [the] district overlying a common reservoir shall jointly manage [total] groundwater production on a long-term basis to achieve an applicable desired future condition by [and consider]:

(1) adopting common rules on the spacing of water wells and groundwater production as provided by Section 36.116;

(2) considering the modeled available groundwater determined by the executive administrator;

(3) monitoring groundwater conditions, including groundwater levels, in each common reservoir with a desired future condition in the district and, at least every two years, providing the collected monitoring data to other districts overlying the common reservoir;

(4) preparing a report on the degree to which the desired future conditions are being achieved in the one-year period after the collection of monitoring data from a common reservoir and the relevant desired future conditions; and

(5) participating in a joint groundwater management hearing if the report prepared under Subsection (b)(4) indicates the desired future conditions are not being achieved.

(b-1) The joint groundwater management hearing held under Subsection (b)(5) must include a public comment period on the desired future conditions. During the joint groundwater management hearing, the districts shall consider:

(1) [(2)] the executive administrator's estimate of the current and projected amount of groundwater produced in the common reservoir under exemptions granted by district rules and Section 36.117;

(2) [(3)] the amount of groundwater authorized under permits previously issued by the districts overlying the common reservoir [district];

(3) the potential use of groundwater in the common reservoir;

(4) an [a reasonable] estimate of the amount of groundwater that is actually produced from the common reservoir under permits issued by the districts [district]; and

(5) yearly precipitation and production patterns.

(c) In developing the estimate of exempt use under Subsection (b-1)(1) [(b)(2)], the executive administrator shall solicit information from each applicable district overlying the common reservoir.

(d) Not later than the first anniversary of the date of the readoption of a desired future condition that is not being achieved, the applicable districts shall adopt new common rules under Section 36.116. The new rules shall immediately apply to all new permit applications submitted to a district. The districts shall adopt rules indicating when all existing permits must comply with the new rules to achieve the desired future condition.

SECTION 17. Sections 36.114(a) and (h), Water Code, are amended to read as follows:

(a) The district by rule shall require [determine each activity regulated by the district for which] a permit or permit amendment for:

(1) drilling a new or replacement well;

(2) increasing the instantaneous peak production rate of a well or well system permit;

(3) increasing the authorized annual production volume of a well or well system permit; and

(4) changing the designated use of water produced under an existing well or well system permit [is required].

(h) The district shall determine if an application is administratively complete not later than the 30th day after the date the district receives the application. An administratively complete application requires information set forth in accordance with Sections 36.113 and 36.1131.

SECTION 18. Sections 36.116(a), (b), (d), and (e), Water Code, are amended to read as follows:

(a) In order to minimize as far as practicable the drawdown of the water table or the reduction of artesian pressure, to control subsidence, to prevent interference between wells, to prevent degradation of water quality, or to prevent waste, a district by rule may regulate:

(1) the spacing of water wells by:

(A) requiring all water wells to be spaced a certain distance from property lines or adjoining wells; or

(B) requiring wells with a certain production capacity, pump size, or other characteristic related to the construction or operation of and production from a well to be spaced a certain distance from property lines or adjoining wells; [or

[(C) imposing spacing requirements adopted by the board;] and

(2) the production of groundwater by:

(A) setting production limits on wells;

(B) limiting the amount of water produced based on acreage or tract size;

(C) limiting the amount of water that may be produced from a defined number of acres assigned to an authorized well site;

(D) limiting the maximum amount of water that may be produced on the basis of acre-feet per acre or gallons per minute per well site per acre;

(E) managed depletion; or

(F) any combination of the methods listed above in Paragraphs (A) through (E).

(b) In promulgating any rules limiting groundwater production, a [the] district shall maintain well spacing or groundwater production allocation [may preserve historic or] existing [use] before the effective date of the rules to the maximum extent practicable [consistent with the district's management plan under Section 36.1071 and as provided by Section 36.113].

(d) For proper [better] management of the groundwater resources located in a common reservoir, each district overlying a common reservoir that is under joint management under Section 36.108 shall adopt common rules for regulation of groundwater production [district or if a district determines that conditions in or use of an aquifer differ substantially from one geographic area of the district to another, the district may adopt different rules for:

[(1) each aquifer, subdivision of an aquifer, or geologic strata located in whole or in part within the boundaries of the district; or

[(2) each geographic area overlying an aquifer or subdivision of an aquifer located in whole or in part within the boundaries of the district].

(e) In regulating the production of groundwater under Subsection (a)(2), a district[:

[(1)] shall select a method that is appropriate based on the hydrogeological conditions of the aquifer or aquifers in the district[; and

[(2) may limit the amount of water produced based on contiguous surface acreage].

SECTION 19. Sections 36.122(a), (g), (h), (i), and (q), Water Code, are amended to read as follows:

(a) The right to export groundwater is of equal dignity with the right to produce groundwater. If an application for a permit or an amendment to a permit under Section 36.113 proposes the transfer of groundwater outside of a district's boundaries, the district may not impose more restrictive permit conditions on persons who will transfer groundwater than the permit conditions the district imposes on persons who will use groundwater in the district [also consider the provisions of this section in determining whether to grant or deny the permit or permit amendment].

(g) The district may not deny a permit based on the fact that the applicant seeks to 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) In addition to conditions provided by Section 36.1131, the permit shall specify:

(1) the maximum amount of water that may be transferred out of the district; and

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

(i) The period specified by Subsection (h)(2) shall be[:

[(1) at least three years if construction of a conveyance system has not been initiated prior to the issuance of the permit; or

[(2)] at least 30 years unless the applicant requests a shorter period [if construction of a conveyance system has been initiated prior to the issuance of the permit].

(q) In applying this section, a district must be fair, impartial, and nondiscriminatory between the transfer of groundwater outside of the district's boundaries and the use of groundwater in the district.

SECTION 20. Section 36.201(b), Water Code, is amended to read as follows:

(b) The board may annually levy taxes to pay the maintenance and operating expenses of the district at a rate not to exceed 37.5 [50] cents on each $100 of assessed valuation.

SECTION 21. Section 36.205(f), Water Code, is amended to read as follows:

(f) A district[, including a district described under Subsection (d),] may assess a production fee under Subsection (c) and an export fee under Subsection (g), if applicable, for any water produced under an exemption under Section 36.117 if that water is subsequently sold to another person.

SECTION 22. Section 36.207, Water Code, is amended to read as follows:

Sec. 36.207. USE OF FEES. (a) A district may use funds obtained from administrative or[,] production[, or export] fees collected under a special law governing the district or this chapter for any purpose consistent with the district's approved management plan, including, without limitation, making grants, loans, or contractual payments to achieve, facilitate, or expedite reductions in groundwater pumping or the development or distribution of alternative water supplies.

(b) A district may use funds obtained from export fees collected under a special law governing the district or this chapter only to:

(1) enhance aquifer monitoring, modeling, and data collection and to enhance research on the advancement of the scientific understanding of a district's groundwater resources; or

(2) issue payments to existing permit holders in the district.

(c) If a district issues payments to existing permit holders under Subsection (b)(2), the district shall by rule determine the amount of a payment to a permit holder based on a pro rata share of:

(1) the acreage of the permit holder's tract of land on which the permit holder's well is located; or

(2) the drainable volume of groundwater in the aquifer under the permit holder's tract of land.

SECTION 23. Sections 36.4051(a) and (d), Water Code, are amended to read as follows:

(a) The board may take action on any uncontested application at a properly noticed public meeting held at any time after the public hearing at which the application is scheduled to be heard. The board may issue a written order to[:

[(1)] grant [the application;

[(2) grant the application with special conditions;] or

[(3)] deny the application.

(d) An applicant may, not later than the 20th day after the date the board issues an order granting the application, demand a contested case hearing [if the order:

[(1) includes special conditions that were not part of the application as finally submitted; or

[(2) grants a maximum amount of groundwater production that is less than the amount requested in the application].

SECTION 24. Section 8810.103(b), Special District Local Laws Code, is amended to read as follows:

(b) Sections 36.122(e) and [36.122(c), (e),] (i)[, and (j)], Water Code, do not apply to a requirement or limitation imposed under this section.

SECTION 25. Section 8824.101, Special District Local Laws Code, is amended to read as follows:

Sec. 8824.101. RESTRICTIONS ON GENERAL POWERS. Section [Sections] 36.103 [and 36.104], Water Code, does [do] not apply to the district.

SECTION 26. Section 8852.104(c), Special District Local Laws Code, is amended to read as follows:

(c) Section 36.122(i) [Sections 36.122(c), (i), and (j)], Water Code, does [do] not apply to a requirement or limitation imposed under this section.

SECTION 27. Section 11002.112, Special District Local Laws Code, is amended to read as follows:

Sec. 11002.112. GROUNDWATER REGULATION. [Section 36.121, Water Code, does not apply to a groundwater well owned or used by the district within the boundaries of the Brewster County Groundwater Conservation District.] The rules of the Brewster County Groundwater Conservation District govern a groundwater well owned or used by the district within the Brewster County Groundwater Conservation District.

SECTION 28. The following provisions of the Special District Local Laws Code are repealed:

(1) Section 8837.006(b);

(2) Section 8851.103;

(3) Section 8852.108;

(4) Section 8867.102; and

(5) Section 8876.005(b).

SECTION 29. The following provisions of the Water Code are repealed:

(1) Section 36.001(29);

(2) Section 36.001(31), as added by Chapter 415 (H.B. 2767), Acts of the 84th Legislature, Regular Session, 2015;

(3) Section 36.002(b-1);

(4) Sections 36.0151(f) and (g);

(5) Section 36.101(a-1);

(6) Section 36.104;

(7) Section 36.1072(g);

(8) Section 36.108(d-5);

(9) Sections 36.113(f), (h), and (i);

(10) Section 36.121;

(11) Sections 36.122(b), (c), (j), (m), and (n); and

(12) Section 36.205(d).

SECTION 30. As soon as practicable after the effective date of this Act, each groundwater conservation district shall adopt rules as necessary to implement the changes in law made by this Act.

SECTION 31. The changes in law made by this Act apply only to an application for a permit or a permit amendment that is received by a groundwater conservation district on or after the effective date of this Act. An application for a permit or permit amendment that is received before the effective date of this Act is governed by the law in effect on the date the application is received, and that law is continued in effect for that purpose.

SECTION 32. The changes in law made by this Act apply only to a suit involving a groundwater conservation district that is filed on or after the effective date of this Act. A suit filed before the effective date of this Act is subject to the law in effect on the date the suit is filed, and that law is continued in effect for that purpose.

SECTION 33. This Act takes effect September 1, 2017.