By: Cyrier H.B. No. 3161
A BILL TO BE ENTITLED
AN ACT
relating to prioritizing groundwater production.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 36.122, Water Code, is amended to read as
follows:
Sec. 36.122. EXPORT [TRANSFER] OF GROUNDWATER OUT OF
DISTRICT. (a) Prior to exporting [If an application for a permit
or an amendment to a permit under Section 36.113 proposes the
transfer of] groundwater outside of a district's boundaries, the
exporting person must first obtain a permit from the district-[may
also consider the provisions of this section in determining whether
to grant or deny the permit or permit amendment].
(b) A district may promulgate rules requiring a person to
obtain a permit or an amendment to a permit [under Section 36.113]
from the district for the export [transfer] of groundwater out of
the district to:
(1) increase, on or after March 2, 1997, the amount of
groundwater to be exported [transferred] under a continuing
arrangement in effect before that date; or
(2) export [transfer] groundwater out of the district
on or after March 2, 1997, under a new arrangement.
(c) Except as provided in Section 36.113(e) and subsection
(l),
the district may not impose more restrictive permit conditions
on exporters [transporters] than the district imposes on existing
in-district users.
(d) The district may impose a reasonable fee for processing
an application under this section. The fee may not exceed fees that
the district imposes for processing other applications under
Section 36.113. An application filed to comply with this section
shall be considered and processed under the same procedures as
other applications for permits under Section 36.113 and shall be
combined with applications filed to obtain a permit for in-district
groundwater [water] use under Section 36.113 from the same
applicant.
(e) The district may impose a reasonable fee or surcharge
for an export fee using one of the following methods:
(1) a fee negotiated between the district and the
exporter [transporter];
(2) a rate not to exceed the equivalent of the
district's tax rate per hundred dollars of valuation for each
thousand gallons of groundwater exported [water transferred] out of
the district or 2.5 cents per thousand gallons of water, if the
district assesses a tax rate of less than 2.5 cents per hundred
dollars of valuation; or
(3) for a fee-based district, a 50 percent export
surcharge, in addition to the district's production fee, for water
groundwater exported [water transferred] out of the district.
(f) In reviewing a proposed export [transfer] of
groundwater out of the district, the district shall consider:
(1) the availability of water in the district and in
the proposed receiving area during the period for which the
groundwater [water] supply is requested;
(2) the projected effect of the proposed export
[transfer] on the district’s ability to achieve its desired future
condition [aquifer conditions, depletion, subsidence, or effects
on existing permit holders or other groundwater users within the
district; and];
(3) factors identified in the applicable approved
regional water plans that address the following:
(A) the availability of feasible and practicable
alternative supplies in the receiving area to the groundwater
proposed for export;
(B) proposed methods and efforts by the receiving
area to avoid waste and implement water conservation and drought
contingency measures;
(C) the projected economic impact reasonably
expected to occur in each area as a result of the export;
(4) the information required to be submitted by the
applicant;
(5) the approved regional water plan and] approved
district management plan]; and
(6) if the export is based on a contractual sale of
water, the terms of the contract, including provisions for
conservation, drought response and waste prevention.
(g) The district may not deny a permit based on the fact that
the applicant seeks to export [transfer] groundwater outside of the
district but may limit a permit issued under this section if
conditions in Subsection (f) warrant the limitation, subject to
Subsection (c).
(h) Export permits [In addition to conditions provided by
Section 36.1131, the permit] shall specify:
(1) the amount of groundwater [water] that may be
exported [transferred] out of the district; and
(2) the period for which the groundwater [water] may
be exported [transferred].
(i) The period specified by Subsection (h)(2) shall be:
(1) at least three years if construction of a
conveyance system has not been initiated prior to the issuance of
the permit; [or]
(2) at least 30 years if construction of a conveyance
system has been initiated prior to the issuance of the permit; or
(3) if the export is based on a contractual sale of
water, no greater than the term of the contract, including any
extension or renewal of the contract.
(j) A term under Subsection (i)(1) shall automatically be
extended to the terms agreed to under Subsection (i)(2) if
construction of a conveyance system is begun before the expiration
of the initial term.
(k) Notwithstanding the period specified in Subsections (i)
and (j) during which groundwater [water] may be exported
[transferred] under a permit, a district may periodically review
the amount of groundwater [water] that may be transferred under the
permit and may limit the amount if additional factors considered in
Subsection (f) warrant the limitation, subject to Subsection (c).
The review described by this subsection may take place not more
frequently than the period provided for the review or renewal of
operating [regular] permits issued by the district. In its
determination of whether to renew a permit issued under this
section, the district shall consider relevant and current data for
the conservation of groundwater resources and shall consider the
permit in the same manner it would consider any other permit in the
district.
(l) Any operating permit associated with an export permit
is junior in priority to any other operating permit issued before
the time the application for the export permit is accepted for
filing, and any groundwater production reductions must be applied
to operating permits associated with an export permit before they
may be applied to any operating permit issued before the time the
application for the export permit was accepted for filing [A
district is prohibited from using revenues obtained under
Subsection (e) to prohibit the transfer of groundwater outside of a
district. A district is not prohibited from using revenues obtained
under Subsection (e) for paying expenses related to enforcement of
this chapter or district rules].
(m) A district may not prohibit the export of groundwater if
the purchase was in effect on or before June 1, 1997.
(n) This section applies only to an export [a transfer] of
groundwater [water] that is permitted after September 1, 1997.
(o) A district shall adopt rules as necessary to implement
this section but may not adopt rules expressly prohibiting the
export of groundwater.
(p) Subsection (e) does not apply to a district that is
collecting an export fee or surcharge on March 1, 2001.
[(q) In applying this section, a district must be fair,
impartial, and nondiscriminatory].
SECTION 2. EFFECTIVE DATE. This Act takes effect
immediately if it receives a vote of two-thirds of all the members
elected to each house, as provided by Section 39, Article III, Texas
Constitution. If this Act does not receive the vote necessary for
immediate effect, this Act takes effect on September 1, 2015.