HBA-NMO H.B. 1437 76(R)BILL ANALYSIS Office of House Bill AnalysisH.B. 1437 By: Krusee Natural Resources 7/29/1999 Enrolled BACKGROUND AND PURPOSE The 75th Texas Legislature enacted legislation authorizing the Lower Colorado River Authority (LCRA) to increase sales of surface water to existing customers in Williamson County. As Williamson County continues to experience significant growth, future water supplies are an increasing concern. According to the 1998 Trans-Texas Water Program Study, an economical way to supply water to Williamson County in the future is for the Brazos River Authority to provide surface water from Lake Stillhouse Hollow and LCRA to provide surface water from the Highland Lakes. However, because Williamson County lies in the Brazos River watershed, supplying surface water from the Highland Lakes would negatively impact Colorado River downstream irrigation needs. H.B. 1437 authorizes LCRA, subject to existing statutory provisions, to transfer surface water to a person or entity in Williamson County that pays LCRA's applicable water rate and an agricultural water conservation fund charge, provided that such a transfer results in no net loss of water to the Colorado River watershed. Additionally, this bill limits the total amount of surface water that LCRA may transfer per year to Williamson County in accordance with this provision; authorizes LCRA to use money from the agricultural water conservation fund only for the development of water resources or other water use strategies to replace or offset the amount of surface water transferred to Williamson County; and sets forth certain other provisions regarding this type of water transfer. RULEMAKING AUTHORITY It is the opinion of the Office of House Bill Analysis that this bill does not expressly delegate any additional rulemaking authority to a state officer, department, agency, or institution. SECTION BY SECTION ANALYSIS SECTION 1. Amends Section 27, Chapter 7, Acts of the 43rd Legislature, 4th Called Session, 1934 (Article 8280-107, V.T.C.S.), as follows: Sec. 27. (a) Authorizes the Lower Colorado River Authority (LCRA) to transfer surface water from LCRA to a place in Williamson County that is outside the watershed of the Colorado River if the transfer is made to a person or entity that pays for the surface water in an amount sufficient to pay both LCRA's applicable water rate and an additional charge to pay for the costs of mitigating any adverse effects of the transfer of surface water to Williamson County from the Colorado River watershed, and provided such transfer results in no net loss of water to the Colorado River watershed as determined by LCRA's board of directors. Prohibits the volume of surface water authorized for transfer by LCRA in accordance with this provision from exceeding 25,000 acre-feet per annum, it being the intent of the legislature to prohibit LCRA from being the sole provider of surface water to Williamson County. Makes conforming and nonsubstantive changes. (b) Requires LCRA to determine the amount of the additional charge under Subsection (a). Prohibits the additional charge from being less than 10 percent of LCRA's applicable rate for surface water to be transferred. Requires LCRA to deposit any money the district receives from the additional charge and authorizes it to deposit any other money as the board of directors determines into a separate fund designated as the agricultural water conservation fund. Authorizes LCRA to use money from the agricultural water conservation fund only for the development of water resources or other water use strategies to replace or offset the amount of surface water to be transferred to Williamson County. Requires LCRA, prior to its determination of the use of the money from the agricultural water conservation fund, to consult with an advisory committee representing agricultural interests that is appointed by the county judges of Matagorda, Wharton, and Colorado counties. Provides that the board of directors' determination of the additional charge is not subject to review or modification by any regulatory agency or authority. Authorizes that water resources developed or conserved through the additional charge be acquired from any source, in or outside the boundaries of LCRA, and requires that they be used to benefit the water service areas of LCRA's irrigation operations SECTION 2.Emergency clause. Effective date: upon passage.