HBA-SEP H.B. 2668 77(R) BILL ANALYSIS Office of House Bill AnalysisH.B. 2668 By: Christian Natural Resources 3/15/2001 Introduced BACKGROUND AND PURPOSE Current law does not require a person to obtain a permit before transferring groundwater from one county to another. As a result, local water supply systems and counties may need to implement measures to protect the volume and quality of local water supplies. House Bill 2668 delegates the power to regulate the transfer of groundwater to the Texas Natural Resource Conservation Commission, the governing body of a water supply system, and the commissioners court of the county. RULEMAKING AUTHORITY It is the opinion of the Office of House Bill Analysis that rulemaking authority is expressly delegated to the Texas Natural Resource Conservation Commission in SECTION 1 (Sections 11.553 and 11.557, Water Code) of this bill. ANALYSIS House Bill 2668 amends the Water Code to provide that a person must obtain a permit from the Texas Natural Resource Conservation Commission (TNRCC) before increasing the amount of groundwater transferred from a county with a population of 50,000 or less to another county under an existing arrangement, or transferring groundwater from a county with a population of 50,000 or less to another county under a new arrangement. A permit application, for which the bill authorizes TNRCC to impose a fee, must include information regarding the number and types of users of the groundwater that is proposed to be transferred. TNRCC must mail notice of the application to certain parties, the cost of which is required to be paid by the applicant. The bill authorizes TNRCC to establish, by rule, procedures for payment of the cost. The applicant must publish notice of the application once a week for two consecutive weeks in a newspaper of general circulation in the participating counties. If the application is contested in a manner requiring an evidentiary hearing, TNRCC must give notice and hold the hearing. The bill requires TNRCC to consider specified factors when determining whether to issue a permit. If TNRCC decides to issue a permit, TNRCC must mail written notice of its intent to issue the permit to the water supply system that uses the groundwater that is proposed to be transferred if the system is the only user of that groundwater or, if not applicable, the commissioners court of the county from which the groundwater is proposed to be transferred. The bill authorizes the governing body of the water supply system or the commissioners court of the county to notify TNRCC in writing whether the governing body or commissioners court approves the permit issuance. The bill authorizes TNRCC to issue a permit only if the commission receives notice that the governing body of the water supply system or the commissioners court of the county, as applicable, approves the issuance of the permit or if TNRCC does not receive notice within 30 days after the date TNRCC mails notice of its intent to issue the permit. The bill requires the permit to specify the amount of groundwater that is authorized to be transferred from the county and the period for which the groundwater is authorized to be transferred. The bill authorizes TNRCC to adopt rules as necessary to implement this subchapter. EFFECTIVE DATE September 1, 2001.