Bill Text: TX HB3339 | 2019-2020 | 86th Legislature | Enrolled

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Bill Title: Relating to requirements for programs of water conservation and water conservation plans.

Sponsorship: Bipartisan Bill

Status: (Passed) 2019-06-10 - Effective on 9/1/19 [HB3339 Detail]

Download: Texas-2019-HB3339-Enrolled.html

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H.B. No. 3339

AN ACT
relating to requirements for programs of water conservation and
water conservation plans.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Sections 15.103(a) and (e), Water Code, are
amended to read as follows:
(a) In an application to the board for financial assistance
from the loan fund, the applicant shall include:
(1) the name of each political subdivision or federal
agency and its principal officers;
(2) a citation of the law under which each political
subdivision or federal agency operates and was created;
(3) the total cost of the project;
(4) the amount of state financial assistance
requested;
(5) the plan for repaying the total cost of the
project; [and]
(6) the water conservation plan required by Section
16.4021; and
(7) any other information the board requires in order
to perform its duties and to protect the public interest.
(e) If the applicant claims an exemption under [Subsection
(c),] Section 16.4021(d) [15.106 of this code], the applicant [he]
shall state the exemption in the [his] application and provide
information relating to the exemption as required by board rules.
SECTION 2. Section 15.206(b), Water Code, is amended to
read as follows:
(b) The application must include the following information:
(1) the name of the issuer;
(2) citations of the laws under which the issuer is
created and operates and under which the bonds to be insured are to
be issued;
(3) the total amount of bonds for which insurance
coverage is sought and the anticipated interest rate on the bonds;
(4) the term for which the bonds are to be issued;
(5) the purpose or purposes for which the bonds are to
be issued;
(6) financial information relating to the issuance of
the bonds and to the financial stability and future of the issuer;
[and]
(7) the water conservation plan required by Section
16.4021; and
(8) any other information the board requires by its
rules or otherwise considers necessary in making a determination of
the application.
SECTION 3. Section 15.435(g), Water Code, is amended to
read as follows:
(g) The board may not direct the trust company to enter into
a bond enhancement agreement with respect to bonds issued by the
board the proceeds of which may be used to provide financial
assistance to an applicant if at the time of the request the
applicant has failed to:
(1) provide information regarding [submit or
implement] a water conservation plan in accordance with Section
16.4021 [11.1271]; or
(2) satisfactorily complete a request by the executive
administrator or a regional water planning group for information
relevant to the project for which the financial assistance is
sought, including a water infrastructure financing survey under
Section 16.053(q).
SECTION 4. Section 15.607, Water Code, is amended to read as
follows:
Sec. 15.607. APPROVAL OF APPLICATION. On review of
recommendations by the executive administrator, the board by
resolution may approve an application if the board finds that in its
opinion the revenue or taxes or both revenue and taxes pledged by
the applicant will be sufficient to meet all the obligations
assumed by the applicant and that the application and assistance
applied for meet the requirements of the federal act and state law,
including Section 16.4021. [A program of water conservation for
the more effective use of water shall be required in the same manner
as required for approval of an application for financial assistance
under Section 15.106 of this code.]
SECTION 5. Section 15.910(a), Water Code, is amended to
read as follows:
(a) In an application to the board for financial assistance
from the fund, a political subdivision or water supply corporation
must include:
(1) its name and its principal officers;
(2) a citation of the law under which the subdivision
or corporation operates and was created;
(3) a description of the water or wastewater project
for which the financial assistance will be used;
(4) the total cost of the project;
(5) the amount of state financial assistance
requested;
(6) the plan for repaying any loan provided by the
board for the project; [and]
(7) the water conservation plan required by Section
16.4021; and
(8) any other information the board requires in order
to perform its duties and to protect the public interest.
SECTION 6. Section 15.975(a), Water Code, is amended to
read as follows:
(a) On review and recommendation by the executive
administrator, the board by resolution may approve an application
if the board finds that:
(1) the application and the assistance applied for
meet the requirements of this subchapter, Section 16.4021, and
board rules;
(2) the revenue or taxes, or both the revenue and
taxes, pledged by the applicant will be sufficient to meet all the
obligations assumed by the political subdivision; and
(3) the project will meet water needs in a manner
consistent with the state and regional water plans as required by
Section 16.053(j), unless otherwise specified by an act of the
legislature.
SECTION 7. Section 15.995(e), Water Code, is amended to
read as follows:
(e) An application from a rural political subdivision [A
program of water conservation for the more efficient use of water
shall be required in the same manner as is required for approval of
an application] for financial assistance under this subchapter must
comply with the requirements of Section 16.4021 [Section 15.106].
SECTION 8. Section 16.136, Water Code, is amended to read as
follows:
Sec. 16.136. FACILITIES WANTED BY POLITICAL SUBDIVISION.
The board may acquire all or part of any authorized facility to the
extent that the board finds that the political subdivision:
(1) is willing and reasonably able to finance that
portion of the cost of the facility that the board does not acquire;
(2) has obtained all necessary permits;
(3) has proposals that are consistent with the
objectives of the state water plan; and
(4) has complied with [a program of] water
conservation plan requirements [for the more efficient use of
water] as required by Section 16.4021 [15.106 of this code].
SECTION 9. Section 16.402(c), Water Code, is amended to
read as follows:
(c) The executive administrator shall review each water
conservation plan and annual report to determine compliance with
the minimum requirements established by Section 16.4021 [11.1271]
and the submission deadlines developed under Subsection (e) of this
section.
SECTION 10. Subchapter K, Chapter 16, Water Code, is
amended by adding Section 16.4021 to read as follows:
Sec. 16.4021. WATER CONSERVATION PLAN REQUIREMENTS. (a)
In this section, "water conservation plan" means a plan that
describes a program of water conservation for the more efficient
use of water.
(b) This section applies to an application for financial
assistance under:
(1) Subchapters C, D, E, G, H, J, O, Q, and R, Chapter
15;
(2) Subchapters E and F of this chapter; and
(3) Subchapters D, F, I, K, and L, Chapter 17.
(c) Except as provided by Subsection (d), an applicant must
submit with the application a description of the applicant's
proposed or adopted water conservation plan. The water
conservation plan:
(1) must:
(A) incorporate the practices, techniques, and
technology described by Section 15.001(9)(B);
(B) meet reasonably anticipated local needs and
conditions, as determined by the board; and
(C) include specific, quantified five-year and
10-year targets for water savings, including goals for water loss
programs and municipal use measured in gallons per capita per day;
and
(2) may include:
(A) restrictions on discretionary water uses,
including lawn watering;
(B) plumbing code standards for water
conservation in new building construction;
(C) retrofit programs to improve water-use
efficiency in existing buildings;
(D) educational programs;
(E) universal metering;
(F) conservation-oriented water rate structures;
(G) drought contingency plans; and
(H) distribution system leak detection and
repair.
(d) An applicant is not required to submit a water
conservation plan under this section if:
(1) an emergency exists as determined by the board;
(2) the amount of financial assistance under
consideration is not greater than $500,000;
(3) the applicant demonstrates and the board finds
that the implementation of a water conservation plan is not
reasonably necessary for conservation; or
(4) the financial assistance is to fund a project that
consists of construction outside this state.
(e) The board may not provide financial assistance to an
applicant to which this section applies unless the applicant
demonstrates that it has adopted and implemented a water
conservation plan that meets the requirements for a water
conservation plan under Subsection (c).
(f) The board shall establish an educational and technical
assistance program to assist political subdivisions in developing
comprehensive water conservation plans.
(g) If the applicant will use the project to furnish water
or services to another entity that will furnish the water or
services to the ultimate consumer, the requirement for an applicant
to demonstrate adoption and implementation of a water conservation
plan can be met through contractual agreements between the
applicant and the other entity providing for the adoption and
implementation of a water conservation plan by the other entity.
(h) Rules adopted under this section must state the criteria
for preparation, review, and enforcement of an applicant's water
conservation plan.
SECTION 11. Section 16.403, Water Code, as added by Chapter
595 (S.B. 181), Acts of the 82nd Legislature, Regular Session,
2011, is amended to read as follows:
Sec. 16.403. WATER USE REPORTING. (a) [The legislature
finds that:
[(1) tracking water use over time and evaluating the
effects of water conservation programs or strategies are vital
components of planning for and managing the state's water resources
to estimate and meet future water demand requirements;
[(2) gallons per capita per day, the common metric
used by municipalities and water utilities for water supply
planning and the calculation of water use, is not an accurate
measure of water use or water conservation because a uniform,
consistent methodology for the calculation of gallons per capita
per day has not been established;
[(3) using a single gallons per capita per day metric
to compare the water use of municipalities and water utilities does
not produce a reliable comparison because water use is dependent on
several variables, including differences in the amount of water
used for commercial and industrial sector activities, power
production, permanent versus temporary service populations, and
agricultural sector production;
[(4) if valid water use comparisons and evaluations of
a municipality's or water utility's water conservation programs are
to be made over time for statewide resource management and water
supply planning and permitting purposes, the methodology used to
calculate gallons per capita per day must be uniform for all water
suppliers;
[(5) a municipality's or water utility's industrial
and agricultural sector's gallons per capita per day figures are
not an accurate measure of actual water use and conservation by
entities within those sectors because water use in the industrial
and agricultural sectors is not population-dependent and therefore
not accurately calculated using a population-based metric; and
[(6) a sector-based water use metric, adjusted for
variables in water use by municipalities and water utilities, is
necessary in order to provide an accurate comparison of water use
and water conservation among municipalities and water utilities.
[(b)] The board and the commission, in consultation with the
Water Conservation Advisory Council, shall develop a uniform,
consistent methodology and guidance for calculating water use and
conservation to be used by a municipality or water utility in
developing water conservation plans and preparing reports required
under this code. At a minimum, the methodology and guidance must
include:
(1) a method of calculating total water use by a
municipality or water utility, including water billed and
nonrevenue water used, and a method of calculating water use for
each sector of water users served by a municipality or water
utility;
(2) a method of calculating total water use by a
municipality or water utility in gallons per capita per day;
(3) a method of classifying water users within
sectors;
(4) a method of calculating water use in the
residential sector that includes both single-family and
multifamily residences, in gallons per capita per day;
(5) a method of calculating water use in the
industrial, agricultural, commercial, and institutional sectors
that is not dependent on a municipality's population or the number
of customers served by a water utility; and
(6) guidelines on the use of service populations by a
municipality or water utility in developing a per-capita-based
method of calculation, including guidance on the use of permanent
and temporary populations in making calculations.
(b) [(c)] The board or the commission, as appropriate,
shall use the methodology and guidance developed under Subsection
(a) [(b)] in evaluating a water conservation plan, program of water
conservation, survey, or other report relating to water
conservation submitted to the board or the commission under:
(1) Section 11.1271;
(2) Section 13.146;
(3) [Section 15.106;
[(4) Section 15.607;
[(5) Section 15.975;
[(6) Section 15.995;
[(7)] Section 16.012(m);
(4) [(8)] Section 16.402; or
(5) Section 16.4021
[(9) Section 17.125;
[(10) Section 17.277;
[(11) Section 17.857; or
[(12) Section 17.927].
(c) [(d)] The board, in consultation with the commission
and the Water Conservation Advisory Council, shall develop a data
collection and reporting program for municipalities and water
utilities with more than 3,300 connections.
(d) [(e)] Not later than January 1 of each odd-numbered
year, the board shall submit to the legislature a report that
includes the most recent data relating to:
(1) statewide water usage in the residential,
industrial, agricultural, commercial, and institutional sectors;
and
(2) the data collection and reporting program
developed under Subsection (c) [(d)].
(e) Data included in a water conservation plan or report
required under this code and submitted to the board or commission
must be interpreted in the context of variations in local water use.
The data may not be the only factor considered by the commission in
determining the highest practicable level of water conservation and
efficiency achievable in the jurisdiction of a municipality or
water utility for purposes of Section 11.085(l).
SECTION 12. Sections 17.122(a) and (c), Water Code, are
amended to read as follows:
(a) In an application to the board for financial assistance
for a water supply project, the applicant shall include:
(1) the name of the political subdivision and its
principal officers;
(2) a citation of the law under which the political
subdivision operates and was created;
(3) a description of the water supply project for
which the financial assistance will be used;
(4) the total cost of the water supply project;
(5) the amount of state financial assistance
requested;
(6) the plan for repaying the total cost of the water
supply project;
(7) the method for obtaining the financial assistance,
whether by purchase of bonds or purchase of other obligations of the
political subdivision; [and]
(8) the water conservation plan required by Section
16.4021; and
(9) any other information the board requires.
(c) If the applicant claims an exemption under [Subsection
(c),] Section 16.4021 [17.125, of this code], the applicant [he]
shall state the exemption in the [his] application and provide
information relating to that exemption as provided by board rules.
SECTION 13. Sections 17.274(a) and (c), Water Code, are
amended to read as follows:
(a) In an application to the board for financial assistance
for water quality enhancement purposes, the applicant shall
include:
(1) the name of the political subdivision and its
principal officers;
(2) a citation of the law under which the political
subdivision operates and was created;
(3) a description of the treatment works for which the
financial assistance will be used;
(4) the estimated total cost of construction of the
treatment works;
(5) the amount of state financial assistance
requested;
(6) the method for obtaining the financial assistance,
whether by purchase of bonds or purchase of other obligations of the
political subdivision;
(7) the plan for repaying the financial assistance;
[and]
(8) the water conservation plan required by Section
16.4021; and
(9) any other information the board requires.
(c) If the applicant claims an exemption under [Subsection
(d),] Section 16.4021 [17.277, of this code], the applicant shall
state the exemption in the application and provide information
relating to that exemption as provided by board rules.
SECTION 14. Section 17.855(a), Water Code, is amended to
read as follows:
(a) In an application to the board for financial assistance
through the acquisition of acquired obligations, the participant
shall include:
(1) the name of the participant and its principal
officer or officers;
(2) a citation of the law under which the participant
was created, operates, and proposes to issue its obligations to be
acquired by the board;
(3) the total cost of the project;
(4) the amount of state financial assistance
requested;
(5) the plan for paying the principal of and interest
on its obligations to be acquired by the board; [and]
(6) the water conservation plan required by Section
16.4021; and
(7) any other information the board requires in order
to perform its duties and to protect the public interest.
SECTION 15. Section 17.927(b), Water Code, is amended to
read as follows:
(b) The application and plan must include:
(1) the name of the political subdivision and its
principal officers;
(2) a citation of the law under which the political
subdivision was created and operates;
(3) a project plan, prepared and certified by an
engineer registered to practice in this state, that must:
(A) describe the proposed planning, design, and
construction activities necessary to provide water supply and sewer
services that meet minimum state standards; and
(B) identify the households to which the water
supply and sewer services will be provided;
(4) a budget that estimates the total cost of
providing water supply and sewer services to the economically
distressed area and a proposed schedule and method for repayment of
financial assistance consistent with board rules and guidelines;
(5) a description of the existing water supply and
sewer facilities located in the area to be served by the proposed
project, including a statement prepared and certified by an
engineer registered to practice in this state that the facilities
do not meet minimum state standards;
(6) documentation that the appropriate political
subdivision has adopted the model rules developed under Section
16.343;
(7) information identifying the median household
income for the area to be served by the proposed project; [and]
(8) the total amount of assistance requested from the
economically distressed areas account; and
(9) the water conservation plan required by Section
16.4021.
SECTION 16. The following provisions of the Water Code are
repealed:
(1) Section 15.103(d);
(2) Sections 15.106(b), (b-1), (c), (d), (e), and (f);
(3) Sections 15.208(b), (c), and (d);
(4) Section 15.910(c);
(5) Section 15.975(b);
(6) Section 16.403, as added by Chapter 1233 (S.B.
660), Acts of the 82nd Legislature, Regular Session, 2011;
(7) Sections 17.125(b), (b-1), (b-2), (c), (d), (e),
and (f);
(8) Section 17.274(b);
(9) Sections 17.277(b), (b-1), (c), (d), (e), and (f);
(10) Sections 17.857(b), (b-1), (c), and (d); and
(11) Section 17.927(c).
SECTION 17. The changes in law made by this Act apply only
to an application for financial assistance or public funding
submitted to the Texas Water Development Board on or after the
effective date of this Act. An application submitted before the
effective date of this Act is governed by the law in effect
immediately before the effective date of this Act, and the former
law is continued in effect for that purpose.
SECTION 18. This Act takes effect September 1, 2019.
______________________________ ______________________________
President of the Senate Speaker of the House
I certify that H.B. No. 3339 was passed by the House on May 3,
2019, by the following vote: Yeas 138, Nays 2, 2 present, not
voting.
______________________________
Chief Clerk of the House
I certify that H.B. No. 3339 was passed by the Senate on May
21, 2019, by the following vote: Yeas 31, Nays 0.
______________________________
Secretary of the Senate
APPROVED: _____________________
Date
_____________________
Governor