HBA-NMO H.B. 1437 76(R)    BILL ANALYSIS


Office of House Bill AnalysisH.B. 1437
By: Krusee
Natural Resources
2/28/1999
Introduced


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.  The 1998 Trans-Texas Water Program Study concluded that the most
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 the 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 the LCRA, subject to existing statutory requirements,
to transfer surface water to a person or entity in Williamson County that
pays the cost of transfer and an additional charge in an amount determined
by the LCRA board of directors; and further authorizes the LCRA to use
money from this additional charge 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.      

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 (district) to
transfer surface water from the district 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 the district's cost of service and an additional
charge to mitigate any adverse effects of the transfer of surface water to
Williamson County from the Colorado River watershed, as determined by the
district's board of directors.  Makes conforming and nonsubstantive
changes.   

(b) Requires the district to determine the amount of the additional charge
under Subsection (a).  Authorizes the district to use money from the
additional charge 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.  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 water
resources developed or conserved through the additional charge to be
acquired from any source, in or outside the boundaries of the district, and
requires that they be used to benefit the water service area of the
district described in Sections 2(a) and 26 of this Act.  Sections 2(a) and
26 provide the boundaries of the district. 

SECTION 2.Emergency clause.
  Effective date: upon passage.