Bill Text: TX HB3298 | 2015-2016 | 84th Legislature | Engrossed

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Bill Title: Relating to a study conducted by the Texas Water Development Board regarding the development of a market and conveyance network for water in this state.

Spectrum: Moderate Partisan Bill (Republican 6-1)

Status: (Engrossed - Dead) 2015-05-18 - No action taken in committee [HB3298 Detail]

Download: Texas-2015-HB3298-Engrossed.html

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By: Larson, Frank, Lucio III, Kacal, Keffer, H.B. No. 3298
et al.

A BILL TO BE ENTITLED
AN ACT
relating to a study conducted by the Texas Water Development Board
regarding the development of a market and conveyance network for
water in this state.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. LEGISLATIVE FINDINGS. The legislature finds
that:
(1) water is a valuable part of the natural capital of
the state, serving vital economic, environmental, and social
purposes;
(2) the growing water needs of the state require using
water in an efficient manner and increasing the economic,
environmental, and social productivity of water;
(3) the efficient use of water often requires the
reallocation of water entitlements from one water user to another
and the conveyance of water from one geographic location to
another; and
(4) improving the efficient use of water in the state
may be promoted by improving the laws regarding water transfers and
markets and by using an integrated network of both natural and
constructed water conveyance infrastructure.
SECTION 2. DEFINITION. In this Act, "board" means the
Texas Water Development Board.
SECTION 3. STUDY. (a) The board shall conduct a study to
evaluate:
(1) improvements to:
(A) the transfer of water entitlements; and
(B) the functioning of statewide and regional
water markets; and
(2) the opportunities for and barriers to the
potential establishment of a statewide or regional water grid,
including an integrated network of natural and constructed works,
including pipelines, pumping stations, and reservoirs, for the
conveyance of water between and within river basins, water sources,
and areas of water use in the state.
(b) In conducting the study, the board shall:
(1) review studies previously conducted as part of the
state water planning process or otherwise;
(2) identify the necessary and useful features of an
efficient market for water, including water rights, institutions,
and infrastructure;
(3) examine case studies of water markets in other
jurisdictions both within and outside the United States to
determine best practices and risks described in those case studies;
(4) identify and evaluate potential sources of water
for the market and the water grid;
(5) identify and evaluate potential areas of use for
water delivered by the water grid, including areas of water use for
municipal, industrial, agricultural irrigation, recreational,
environmental, and other purposes;
(6) evaluate alternative facilities with varying
capacities, source and delivery points, and alignments, including
subsea alignments, and whether the water grid should convey treated
or untreated water in each conveyance reach;
(7) develop a strategy for the water grid that will
achieve optimal results for water use efficiency, water supply
reliability, economic efficiency, the functioning of a market for
water transfers, and the protection and enhancement of water
rights, investments, and the natural environment;
(8) evaluate opportunities for and barriers to the
integration of the establishment, construction, operation, and
management of the water grid into the state water planning process;
(9) evaluate alternative methods for ownership,
construction, operation, maintenance, control, and financing of
the water grid, including:
(A) ownership by a state agency;
(B) ownership by one or more special-purpose
districts or authorities created under Section 59, Article XVI,
Texas Constitution, for the purpose of providing wholesale water
supply, improvement, management, or transportation, including
river authorities and regional districts;
(C) ownership by a public utility;
(D) operation as a state-awarded concession;
(E) operation as a public-private partnership;
(F) development by private enterprises in a
competitive market; and
(G) development similar to other integrated
networks for the conveyance of natural resources;
(10) identify and evaluate methods to fund the
establishment of a water grid, including the appropriation of funds
or the issuance of bonds by the state or a state agency and state
participation in ownership of the facilities, the issuance of bonds
or participation by one or more entities described by Subdivision
(9)(B) of this subsection, the issuance of private activity bonds,
and the use of private investment capital;
(11) evaluate methods of incorporating existing water
conveyance infrastructure and natural systems into a water grid,
including:
(A) purchasing all or a portion of the water
conveyance infrastructure from the owners of that infrastructure;
and
(B) requiring that public agency and public
utility owners of water conveyance infrastructure make unutilized
or underutilized capacity available in that infrastructure, on
payment to the owner of reimbursable costs plus a reasonable return
on investment;
(12) consult with the Texas Commission on
Environmental Quality, the Public Utility Commission of Texas, the
Railroad Commission of Texas, and the General Land Office; and
(13) offer the public an opportunity to submit written
comments on the study for consideration by the board, with a comment
period lasting at least 30 days following publication of a draft
report.
SECTION 4. REPORT. Not later than September 1, 2016, the
board shall submit to the legislature a final written report
containing the findings of the study conducted under this Act and
the board's recommendations for any legislation or other action
necessary to implement the program described by Section 3(a) of
this Act.
SECTION 5. EXPIRATION. This Act expires September 1, 2017.
SECTION 6. 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 September 1, 2015.