1 | 1 | | By: Perry S.B. No. 1907 |
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2 | 2 | | (In the Senate - Filed March 13, 2015; March 25, 2015, read |
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3 | 3 | | first time and referred to Committee on Agriculture, Water, and |
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4 | 4 | | Rural Affairs; April 22, 2015, reported favorably by the following |
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5 | 5 | | vote: Yeas 5, Nays 1; April 22, 2015, sent to printer.) |
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6 | 6 | | Click here to see the committee vote |
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7 | 7 | | |
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8 | 8 | | |
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9 | 9 | | A BILL TO BE ENTITLED |
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10 | 10 | | AN ACT |
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11 | 11 | | relating to a study conducted by the Texas Water Development Board |
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12 | 12 | | regarding the development of a market and conveyance network for |
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13 | 13 | | water in this state. |
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14 | 14 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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15 | 15 | | SECTION 1. LEGISLATIVE FINDINGS. The legislature finds |
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16 | 16 | | that: |
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17 | 17 | | (1) water is a valuable part of the natural capital of |
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18 | 18 | | the state, serving vital economic, environmental, and social |
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19 | 19 | | purposes; |
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20 | 20 | | (2) the growing water needs of the state require using |
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21 | 21 | | water in an efficient manner and increasing the economic, |
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22 | 22 | | environmental, and social productivity of water; |
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23 | 23 | | (3) the efficient use of water often requires the |
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24 | 24 | | reallocation of water entitlements from one water user to another |
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25 | 25 | | and the conveyance of water from one geographic location to |
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26 | 26 | | another; and |
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27 | 27 | | (4) improving the efficient use of water in the state |
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28 | 28 | | may be promoted by improving the laws regarding water transfers and |
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29 | 29 | | markets and by constructing and operating an integrated network of |
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30 | 30 | | water conveyance infrastructure. |
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31 | 31 | | SECTION 2. DEFINITION. In this Act, "board" means the |
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32 | 32 | | Texas Water Development Board. |
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33 | 33 | | SECTION 3. STUDY. (a) The board shall conduct a study to |
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34 | 34 | | evaluate improvements to the transfer of water entitlements in this |
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35 | 35 | | state and the establishment of a water grid, including an |
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36 | 36 | | integrated network of pipelines, pumping stations, reservoirs, and |
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37 | 37 | | other works for the conveyance of water between river basins, water |
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38 | 38 | | sources, and areas of water use in the state. |
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39 | 39 | | (b) In conducting the study, the board shall: |
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40 | 40 | | (1) review studies previously conducted as part of the |
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41 | 41 | | state water planning process or otherwise; |
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42 | 42 | | (2) identify the necessary and useful features of an |
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43 | 43 | | efficient market for water, including water rights, institutions, |
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44 | 44 | | and infrastructure; |
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45 | 45 | | (3) examine case studies of water markets in other |
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46 | 46 | | jurisdictions both within and outside the United States; |
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47 | 47 | | (4) identify and evaluate potential sources of water |
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48 | 48 | | for the market and the water grid; |
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49 | 49 | | (5) identify and evaluate potential areas of use for |
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50 | 50 | | water delivered by the water grid, including areas of water use for |
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51 | 51 | | municipal, industrial, agricultural irrigation, recreational, |
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52 | 52 | | environmental, and other purposes; |
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53 | 53 | | (6) evaluate alternative facilities with varying |
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54 | 54 | | capacities, source and delivery points, and alignments, including |
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55 | 55 | | subsea alignments, and whether the water grid should convey treated |
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56 | 56 | | or untreated water in each conveyance reach; |
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57 | 57 | | (7) develop a strategy for the water grid that will |
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58 | 58 | | achieve optimal results for water use efficiency, water supply |
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59 | 59 | | reliability, economic efficiency, the functioning of a market for |
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60 | 60 | | water transfers, and the protection and enhancement of water |
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61 | 61 | | rights, investments, and the natural environment; |
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62 | 62 | | (8) connect the establishment, construction, |
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63 | 63 | | operation, and management of the water grid to the state water |
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64 | 64 | | planning process; |
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65 | 65 | | (9) evaluate alternative methods for ownership, |
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66 | 66 | | construction, operation, maintenance, control, and financing of |
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67 | 67 | | the water grid, including: |
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68 | 68 | | (A) ownership by a state agency; |
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69 | 69 | | (B) ownership by one or more special-purpose |
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70 | 70 | | districts or authorities created under Section 59, Article XVI, |
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71 | 71 | | Texas Constitution, for the purpose of providing wholesale water |
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72 | 72 | | supply, improvement, management, or transportation, including |
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73 | 73 | | river authorities and regional districts; |
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74 | 74 | | (C) ownership by a public utility; |
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75 | 75 | | (D) operation as a state-awarded concession; |
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76 | 76 | | (E) operation as a public-private partnership; |
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77 | 77 | | (F) development by private enterprises in a |
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78 | 78 | | competitive market; and |
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79 | 79 | | (G) development similar to other integrated |
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80 | 80 | | networks for the conveyance of natural resources; |
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81 | 81 | | (10) identify and evaluate methods to fund the |
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82 | 82 | | establishment of a water grid, including the appropriation of funds |
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83 | 83 | | or the issuance of bonds by the state or a state agency and state |
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84 | 84 | | participation in ownership of the facilities, the issuance of bonds |
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85 | 85 | | or participation by one or more entities described by Subdivision |
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86 | 86 | | (9)(B) of this subsection, the issuance of private activity bonds, |
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87 | 87 | | and the use of private investment capital; |
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88 | 88 | | (11) evaluate methods of incorporating existing water |
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89 | 89 | | conveyance infrastructure into a water grid, including: |
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90 | 90 | | (A) purchasing all or a portion of the water |
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91 | 91 | | conveyance infrastructure from the owners of that infrastructure; |
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92 | 92 | | and |
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93 | 93 | | (B) requiring that public agency and public |
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94 | 94 | | utility owners of water conveyance infrastructure make unutilized |
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95 | 95 | | or underutilized capacity available in that infrastructure, on |
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96 | 96 | | payment to the owner of reimbursable costs plus a reasonable return |
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97 | 97 | | on investment; |
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98 | 98 | | (12) consult with the Texas Commission on |
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99 | 99 | | Environmental Quality, the Public Utility Commission of Texas, the |
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100 | 100 | | Railroad Commission of Texas, and the General Land Office; and |
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101 | 101 | | (13) offer the public an opportunity to submit written |
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102 | 102 | | comments on the study for consideration by the board, with a comment |
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103 | 103 | | period lasting at least 30 days following publication of a draft |
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104 | 104 | | report. |
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105 | 105 | | SECTION 4. REPORT. Not later than September 1, 2016, the |
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106 | 106 | | board shall submit to the legislature a final written report |
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107 | 107 | | containing the findings of the study conducted under this Act and |
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108 | 108 | | the board's recommendations for any legislation or other action |
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109 | 109 | | necessary to implement the program described by Section 3(a) of |
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110 | 110 | | this Act. |
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111 | 111 | | SECTION 5. EXPIRATION. This Act expires September 1, 2017. |
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112 | 112 | | SECTION 6. EFFECTIVE DATE. This Act takes effect |
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113 | 113 | | immediately if it receives a vote of two-thirds of all the members |
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114 | 114 | | elected to each house, as provided by Section 39, Article III, Texas |
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115 | 115 | | Constitution. If this Act does not receive the vote necessary for |
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116 | 116 | | immediate effect, this Act takes effect September 1, 2015. |
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117 | 117 | | * * * * * |
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