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


Office of House Bill AnalysisH.B. 1437
By: Krusee
Natural Resources
3/23/99
Committee Report (Amended)


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 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
LCRA board of directors; and further authorizes 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 (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 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 LCRA's board of directors.
Makes conforming and nonsubstantive changes.   

(b) Requires LCRA to determine the amount of the additional charge under
Subsection (a).  Authorizes LCRA 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 LCRA, and requires that they be used to
benefit the water service area of LCRA described in Sections 2(a) and 26 of
this Act.  Sections 2(a) and 26 provide the boundaries of LCRA. 

SECTION 2.Emergency clause.
  Effective date: upon passage.
 
EXPLANATION OF AMENDMENTS

Committee Amendment #1 

SECTION 1.  Amends proposed changes to Subsection (a) to provide that a
person or entity in the Brazos River watershed must pay the Lower Colorado
River Authority's (district's) applicable water rate, rather than cost of
service, and a charge to pay the costs of mitigating, rather than a charge
to mitigate, the transfer, in order to be eligible for a certain water
transfer. 

Creates a new subsection (b) to prohibit LCRA from making certain transfers
of water under Subsection (a) if the transfer will result in a net loss of
water to the Colorado River watershed. Redesignates proposed subsection (b)
to Subsection (c).  Prohibits the additional charge under Subsection (a)
from being less than 10 percent of LCRA's applicable rate for surface water
to be transferred.  Requires LCRA to deposit any money LCRA receives from
the additional charge, and authorizes the deposit of any other money  as
the board of directors of LCRA determines, into a separate fund designated
as the agricultural water conservation fund.  Authorizes use of the money
from the agricultural water conservation fund to include the development
and implementation of methods, programs, and strategies relating to
groundwater resources, reuse, conservation, and other opportunities to
reduce the reliance on surface water for agricultural irrigation.  Requires
that water resources conserved or developed through the additional charge
be used to benefit the water service areas of LCRA's irrigation operations,
rather than the area of the whole district.  Makes conforming and
nonsubstantive changes.