HBA-LJP H.B. 2432 77(R)BILL ANALYSIS Office of House Bill AnalysisH.B. 2432 By: Cook Natural Resources 77/18/2001 Enrolled BACKGROUND AND PURPOSE Texas faces a difficult challenge to develop water policies that serve state, regional, rural, and urban water interests. The Texas Constitution authorizes the creation of groundwater conservation districts to plan, develop, and regulate the use of water. The Bastrop and Lee County area has been dependent on the waters of the Carrizo-Wilcox underground aquifer for most of its water supply. Although there are other surface water sources in and around these two counties, in this rural area, the residents have been highly dependent on well water for survival. The entire Carrizo-Wilcox aquifer has been threatened by over production and potential pollution that may devastate the health, the lifestyles, and the economic well-being of every citizen in the region. As the population of these counties and the entire area grows, the dependence and demand on water continues to increase. House Bill 2432 ratifies the creation of the Lost Pines Groundwater Conservation District, if approved by the voters at a confirmation election, to manage the groundwater resources of Bastrop and Lee counties. 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. ANALYSIS House Bill 2432 amends law to ratify the creation of the Lost Pines Groundwater Conservation District (district), if approved by the voters at a confirmation election (SECTION 1 and 13). The bill prohibits the district from imposing a tax. The district is authorized to assess a regulatory pumping fee for water produced in or exported from the district and provides that the regulatory pumping fee for agricultural use is not to exceed 20 percent of the fee rate for municipal use. The bill provides fee caps for regulatory pumping fees that are based on the amount of water withdrawn from a well. The bill prohibits combined regulatory pumping fees for production and the export of water from exceeding 17 cents per thousand gallons for water used. The bill authorizes the district to adopt rules to exempt a well that is not capable of producing more than 50,000 gallons of groundwater a day from a permit requirement, a fee, or a restriction on production (SECTION 4). The bill provides that the Railroad Commission of Texas (RCC) has exclusive jurisdiction over groundwater wells that are drilled or operated within the district under permits issued by RCC and exempts these groundwater wells from the regulation by the district. The bill sets forth provisions that establish the relationship between groundwater wells under the jurisdiction of RCC and the district (SECTION 5). The bill prohibits the district from requiring a permit for the drilling of a water well used solely to supply water for a rig that is actively engaged in drilling or exploration operations for an oil or gas well permitted by RCC if the person holding the permit is responsible for drilling and operating a water well that is located on the same lease or field associated with the drilling rig (SECTION 6). House Bill 2432 provides that the district is governed by a board of ten directors and requires the county judge of Bastrop County to appoint five directors from Bastrop County and the county judge of Lee County to appoint five directors from Lee County. The bill sets forth provisions regarding the administration of the board and the appointment, qualifications, and terms of the directors. The bill sets forth provisions regarding an election to confirm establishment of the district (SECTIONS 7 and 8). The bill provides that the district is a member of the Central Carrizo-Wilcox Coordinating Council (council). The bill requires the district to develop or contract to develop its own management plan and submit it to the council to be included in the management plan developed by the council (SECTIONS 10 and 11). The bill provides for the expiration of this Act on September 1, 2003 if the creation of the district is not confirmed at a confirmation election on August 31, 2003 (SECTION 13). EFFECTIVE DATE June 16, 2001.