HBA-SEB S.B. 1178 76(R)    BILL ANALYSIS


Office of House Bill AnalysisS.B. 1178
By: Ogden
Natural Resources
4/26/1999
Engrossed


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 may negatively impact
Colorado River downstream irrigation needs.  

S.B. 1178  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, Article 8280-107, V.T.C.S. (Chapter 7, Acts
of the 43rd Legislature, 4th Called Session, 1934), 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 municipality that was a district water customer on May 20, 1997.
Authorizes the transfer 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 and if the transfer results in no net loss of
water to the Colorado River Watershed, as determined by the district's
board of directors (board).  Prohibits the volume of surface water
transferred from exceeding 25,000 acre-feet per annum.  Provides that the
legislature intends for the district to not be the sole provider of surface
water to Williamson County.  Makes conforming and nonsubstantive changes.   

(b) Requires the district to determine the amount of the additional charge
under Subsection (a).  Prohibits the additional charge from being less than
10 percent of the district's applicable rate for surface water to be
transferred.  Requires the district to deposit any money the district
receives from the additional charge, and authorizes the district to deposit
any other money as the board determines into a separate fund called the
agricultural water conservation fund.  Authorizes the district to use money
from that 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.  Requires the district  to consult with an advisory
committee representing agricultural irrigation interests that is appointed
by the county judges of Matagorda, Wharton, and Colorado counties, prior to
the district's determination of the use of money from the agricultural
water conservation fund.  Provides that the board's 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,
inside or outside the boundaries of the district, and requires that they be
used to benefit the water service area of the district's irrigation
operations. 

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