Relating to the calculation of current market value of certain water rights by the Rio Grande Regional Water Authority.
Impact
The enactment of HB2208 significantly modernizes the process by which the Rio Grande Regional Water Authority calculates the value of water rights, impacting stakeholders such as municipal water suppliers and agricultural entities. By utilizing the price from the last three municipal purchases involving a minimum of 100 acre-feet, the bill aims to create a benchmark that could enhance the economic dealings and the management of water resources in the region. This change could influence both current and future water rights transactions, potentially leading to better-resourced municipalities.
Summary
House Bill 2208 addresses the calculation of current market value for certain water rights managed by the Rio Grande Regional Water Authority. The bill amends Section 49.509 of the Water Code, requiring the Authority to compute market value based on the average price per acre-foot of water when it is converted from irrigation use to municipal use. This adjustment aims to provide a more accurate and fair representation of water rights' value, ensuring that pricing reflects recent market conditions and trends.
Contention
Debate around HB2208 may center on how the valuation changes could affect both municipalities and irrigation districts. Some may argue that the new calculation method prioritizes urban demands over agricultural needs, straining relationships between water users. Furthermore, the bill's definition regarding the exclusion of specific sales adds another layer of complexity, potentially leading to disputes over water rights valuations and impacting regional water management strategies.
Relating to the transfer of functions relating to the economic regulation of water and sewer service from the Public Utility Commission of Texas and the Office of Public Utility Counsel to the Water Public Utility Commission and the Office of Water Public Utility Counsel; creating a criminal offense.
Relating to the procedure by which a regional water planning group is required to make the regional water plan prepared by the group available for public inspection.
Relating to the creation of the Cross Timbers Regional Utility Authority; granting a limited power of eminent domain; providing authority to issue bonds; providing authority to impose assessments and fees.