88R778 JAM-F By: Bowers H.B. No. 874 A BILL TO BE ENTITLED AN ACT relating to an exemption to the cancellation of a water right for nonuse. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Section 11.173(b), Water Code, is amended to read as follows: (b) A permit, certified filing, or certificate of adjudication or a portion of a permit, certified filing, or certificate of adjudication is exempt from cancellation under Subsection (a): (1) to the extent of the owner's participation in the Conservation Reserve Program authorized by the Food Security Act, Pub.L. No. 99-198, Secs. 1231-1236, 99 Stat. 1354, 1509-1514 (1985) or a similar governmental program; (2) if a significant portion of the water authorized to be used pursuant to a permit, certified filing, or certificate of adjudication has been used in accordance with a specific recommendation for meeting a water need included in the regional water plan approved pursuant to Section 16.053; (3) if the permit, certified filing, or certificate of adjudication: (A) was obtained to meet demonstrated long-term public water supply or electric generation needs as evidenced by a water management plan developed by the holder; and (B) is consistent with projections of future water needs contained in the state water plan; (4) if the permit, certified filing, or certificate of adjudication was obtained as the result of the construction of a reservoir funded, in whole or in part, by the holder of the permit, certified filing, or certificate of adjudication as part of the holder's long-term water planning; or (5) to the extent the nonuse resulted from: (A) the implementation of water conservation measures under a water conservation plan submitted by the holder of the permit, certified filing, or certificate of adjudication as evidenced by implementation reports submitted by the holder; (B) a suspension, adjustment, or other restriction on the use of the water authorized to be appropriated under the permit, certified filing, or certificate of adjudication imposed under an order issued by the executive director; [or] (C) an inability to appropriate the water authorized to be appropriated under the permit, certified filing, or certificate of adjudication due to drought conditions; or (D) an executed temporary or permanent forbearance agreement that: (i) promotes restoration, preservation, or enhancement of instream flows; (ii) was entered into by the holder of the permit, certified filing, or certificate of adjudication; and (iii) was filed with the commission not later than the 180th day after the date the agreement was executed. SECTION 2. This Act takes effect September 1, 2023.