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.