HBA-SEB C.S.S.B. 1178 76(R)BILL ANALYSIS Office of House Bill AnalysisC.S.S.B. 1178 By: Ogden Natural Resources 4/30/1999 Committee Report (Substituted) 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. C.S.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). Makes conforming and nonsubstantive changes. (b) Prohibits the volume of surface water transferred in accordance with Subsection (a) or this subsection from exceeding 25,000 acre-feet per annum, notwithstanding the amounts of surface water transferred by the district to municipalities that were district water customers before May 20, 1997. Provides that the legislature intends for the district to not be the sole provider of surface water to Williamson County. (c) 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. Establishes that those water use strategies 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, provided that the methods, programs, and strategies take into consideration the surface water and groundwater needs of the affected Colorado River basin users. 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. COMPARISON OF ORIGINAL TO SUBSTITUTE The substitute modifies the original in SECTION 1 to amend Section 27, Article 8280-107, V.T.C.S. (Chapter 7, Acts of the 43rd Legislature, 4th Called Session, 1934), as follows: Subsection (b) is created from text in proposed Subsection (a). Subsection (b) modifies references to other provisions in Subsection (a). In effect, Subsection (b) prohibits the volume of surface water transferred in accordance with Subsection (a) or this subsection from exceeding 25,000 acre-feet per annum, notwithstanding the amounts of surface water transferred by the district to municipalities that were district water customers before May 20, 1997. Subsection (c) is redesignated from proposed Subsection (b). Subsection (c) adds a provision that establishes that the methods, programs, and strategies for which the district is authorized to use money from the agricultural water conservation fund take into consideration the surface water and groundwater needs of the affected Colorado River basin users.