88R11798 JXC-F
 
  By: Goldman H.B. No. 4623
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to the consideration of water markets in the regional
  water planning process.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 16.053, Water Code, is amended by adding
  Subsection (d-1) and amending Subsection (e) to read as follows:
         (d-1)  In this section, "water market" means an exchange
  where water rights and all or a portion of the volumes associated
  with those rights are sold, purchased, optioned, or leased for the
  purpose of conveyance, transfer, supply, or forbearance or changing
  the legal purpose of use. The term does not include a market for
  wholesale or retail water transactions.
         (e)  Each regional water planning group shall submit to the
  development board a regional water plan that:
               (1)  is consistent with the guidance principles for the
  state water plan adopted by the development board under Section
  16.051(d);
               (2)  provides information based on data provided or
  approved by the development board in a format consistent with the
  guidelines provided by the development board under Subsection (d);
               (2-a) is consistent with the desired future conditions
  adopted under Section 36.108 for the relevant aquifers located in
  the regional water planning area as of the most recent deadline for
  the board to adopt the state water plan under Section 16.051 or, at
  the option of the regional water planning group, established
  subsequent to the adoption of the most recent plan; provided,
  however, that if no groundwater conservation district exists within
  the area of the regional water planning group, the regional water
  planning group shall determine the supply of groundwater for
  regional planning purposes; the Texas Water Development Board shall
  review and approve, prior to inclusion in the regional water plan,
  that the groundwater supply for the regional planning group without
  a groundwater conservation district in its area is physically
  compatible, using the board's groundwater availability models,
  with the desired future conditions adopted under Section 36.108 for
  the relevant aquifers in the groundwater management area that are
  regulated by groundwater conservation districts;
               (3)  identifies:
                     (A)  each source of water supply in the regional
  water planning area, including information supplied by the
  executive administrator on the amount of modeled available
  groundwater in accordance with the guidelines provided by the
  development board under Subsections (d) and (f);
                     (B)  factors specific to each source of water
  supply to be considered in determining whether to initiate a
  drought response;
                     (C)  actions to be taken as part of the response;
                     (D)  existing major water infrastructure
  facilities that may be used for interconnections in the event of an
  emergency shortage of water; and
                     (E)  unnecessary or counterproductive variations
  in specific drought response strategies, including outdoor
  watering restrictions, among user groups in the regional water
  planning area that may confuse the public or otherwise impede
  drought response efforts;
               (4)  has specific provisions for water management
  strategies to be used during a drought of record;
               (5)  includes but is not limited to consideration of
  the following:
                     (A)  any existing water or drought planning
  efforts addressing all or a portion of the region and potential
  impacts on public health, safety, or welfare in this state;
                     (B)  approved groundwater conservation district
  management plans and other plans submitted under Section 16.054;
                     (C)  all potentially feasible water management
  strategies, including but not limited to improved conservation,
  reuse, and management of existing water supplies, conjunctive use,
  acquisition of available existing water supplies, and development
  of new water supplies;
                     (D)  protection of existing water rights in the
  region;
                     (E)  opportunities for and the benefits of
  developing regional water supply facilities or providing regional
  management of water supply facilities;
                     (F)  appropriate provision for environmental
  water needs and for the effect of upstream development on the bays,
  estuaries, and arms of the Gulf of Mexico and the effect of plans on
  navigation;
                     (G)  provisions in Section 11.085(k)(1) if
  interbasin transfers are contemplated;
                     (H)  voluntary transfer of water within the region
  using, but not limited to, regional water banks, sales, leases,
  options, subordination agreements, and financing agreements;
                     (I)  emergency transfer of water under Section
  11.139, including information on the part of each permit, certified
  filing, or certificate of adjudication for nonmunicipal use in the
  region that may be transferred without causing unreasonable damage
  to the property of the nonmunicipal water rights holder; and
                     (J)  opportunities for and the benefits of
  developing large-scale desalination facilities for:
                           (i)  marine seawater that serve local or
  regional entities; and
                           (ii)  brackish groundwater that serve local
  or regional brackish groundwater production zones identified and
  designated under Section 16.060(b)(5);
               (6)  identifies river and stream segments of unique
  ecological value and sites of unique value for the construction of
  reservoirs that the regional water planning group recommends for
  protection under Section 16.051;
               (7)  assesses the impact of the plan on unique river and
  stream segments identified in Subdivision (6) if the regional water
  planning group or the legislature determines that a site of unique
  ecological value exists;
               (8)  describes the impact of proposed water projects on
  water quality;
               (9)  includes information on:
                     (A)  projected water use and conservation in the
  regional water planning area; and
                     (B)  the implementation of state and regional
  water plan projects, including water conservation strategies,
  necessary to meet the state's projected water demands;
               (10)  if the regional water planning area has
  significant identified water needs, provides a specific assessment
  of the potential for aquifer storage and recovery projects to meet
  those needs;
               (11)  sets one or more specific goals for gallons of
  water use per capita per day in each decade of the period covered by
  the plan for the municipal water user groups in the regional water
  planning area; [and]
               (12)  assesses the progress of the regional water
  planning area in encouraging cooperation between water user groups
  for the purpose of achieving economies of scale and otherwise
  incentivizing strategies that benefit the entire region; and
               (13)  describes opportunities for the creation and
  establishment of local or regional water markets and considers the
  potential for voluntary transfer of water in the region using those
  markets.
         SECTION 2.  This Act takes effect September 1, 2023.