84R2669 JAM-D By: Keffer H.B. No. 2308 A BILL TO BE ENTITLED AN ACT relating to the consideration by the Texas Commission on Environmental Quality of the economic impact of an appropriation of state water in determining whether to grant an application for the appropriation. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Subchapter D, Chapter 11, Water Code, is amended by adding Section 11.1274 to read as follows: Sec. 11.1274. ADDITIONAL REQUIREMENT: ECONOMIC IMPACT STUDY. The commission shall require from an applicant for a new or amended water right the formulation and submission of an economic impact study that assesses how approval or denial of the new or amended water right will economically impact affected communities. SECTION 2. Section 11.134(b), Water Code, is amended to read as follows: (b) The commission shall grant the application only if: (1) the application conforms to the requirements prescribed by this chapter and is accompanied by the prescribed fee; (2) unappropriated water is available in the source of supply; (3) the proposed appropriation: (A) is intended for a beneficial use; (B) does not impair existing water rights or vested riparian rights; (C) is not detrimental to the public welfare; (D) considers any applicable environmental flow standards established under Section 11.1471 and, if applicable, the assessments performed under Sections 11.147(d) and (e) and Sections 11.150, 11.151, [and] 11.152, and 11.1521; and (E) addresses a water supply need in a manner that is consistent with the state water plan and the relevant approved regional water plan for any area in which the proposed appropriation is located, unless the commission determines that conditions warrant waiver of this requirement; and (4) the applicant has provided evidence that reasonable diligence will be used to avoid waste and achieve water conservation as defined by Section 11.002(8)(B). SECTION 3. Subchapter D, Chapter 11, Water Code, is amended by adding Section 11.1521 to read as follows: Sec. 11.1521. ASSESSMENT OF ECONOMIC IMPACT OF PERMITS OR AMENDMENTS. (a) In its consideration of an application for a permit to store, take, or divert water, or for an amendment to a permit, certified filing, or certificate of adjudication, the commission shall assess the economic impact, if any, of the issuance or denial of the permit or amendment on any community affected by the issuance or denial of the permit or amendment and may require the applicant to take reasonable actions to mitigate adverse economic impacts on affected communities if the permit or amendment is issued. In determining whether to require an applicant to mitigate the adverse economic impact of a project authorized by a permit or amendment, the commission may consider any net benefit produced by the project. (b) For the purposes of Subsection (a), the commission shall consider among other factors: (1) the study submitted by the applicant under Section 11.1274; and (2) any testimony provided at a hearing on the application held under Section 11.133. SECTION 4. The changes in law made by this Act apply only to an application for a new or amended water right received by the Texas Commission on Environmental Quality on or after the effective date of this Act. An application received before the effective date of this Act is governed by the law in effect on the date the application was received, and the former law is continued in effect for that purpose. SECTION 5. This Act takes effect September 1, 2015.