Bill Text: TX SB1624 | 2013-2014 | 83rd Legislature | Introduced
Bill Title: Relating to the establishment of regional water banks by the Texas Commission on Environmental Quality and the Texas Water Development Board.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2013-03-20 - Referred to Natural Resources [SB1624 Detail]
Download: Texas-2013-SB1624-Introduced.html
83R7462 JAM-D | ||
By: Davis | S.B. No. 1624 |
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relating to the establishment of regional water banks by the Texas | ||
Commission on Environmental Quality and the Texas Water Development | ||
Board. | ||
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
SECTION 1. Section 11.177(b), Water Code, is amended to | ||
read as follows: | ||
(b) In determining what constitutes reasonable diligence or | ||
a justified nonuse as used in Subsection (a)(2), the commission | ||
shall give consideration to: | ||
(1) whether sufficient water is available in the | ||
source of supply to meet all or part of the appropriation during the | ||
10-year period of nonuse; | ||
(2) whether the nonuse is justified by the holder's | ||
participation in the federal Conservation Reserve Program or a | ||
similar governmental program as provided by Section 11.173(b)(1); | ||
(3) whether the existing or proposed authorized | ||
purpose and place of use are consistent with an approved regional | ||
water plan as provided by Section 16.053; | ||
(4) whether the permit, certified filing, or | ||
certificate of adjudication has been deposited into the Texas Water | ||
Bank as provided by Sections 15.7031 and 15.704 or a regional water | ||
bank as provided by Sections 15.1004 and 15.1005 or whether it can | ||
be shown that the water right or water available under the right is | ||
currently being made available for purchase through private | ||
marketing efforts; or | ||
(5) whether the permit, certified filing, or | ||
certificate of adjudication has been reserved to provide for | ||
instream flows or bay and estuary inflows. | ||
SECTION 2. Section 15.011(c), Water Code, is amended to | ||
read as follows: | ||
(c) The board may transfer money in the fund to: | ||
(1) the water bank account to be used by the board for | ||
administration and operation of the Texas Water Bank; or | ||
(2) a regional water bank account to be used by the | ||
commission for the administration and operation of a regional water | ||
bank. | ||
SECTION 3. Section 15.703(a), Water Code, is amended to | ||
read as follows: | ||
(a) The board may take all actions necessary to operate the | ||
water bank and to facilitate the transfer of water rights from the | ||
water bank for future beneficial use including but not limited to: | ||
(1) negotiating a sale price and terms acceptable to | ||
the depositor and purchaser; | ||
(2) maintaining a registry of water bank deposits and | ||
those water users in need of additional supplies; | ||
(3) informing water users in need of additional supply | ||
of water rights available in the bank; | ||
(4) encouraging water right holders to implement water | ||
conservation practices and deposit the right to use the conserved | ||
water into the bank; | ||
(5) establishing requirements for deposit of a water | ||
right into the water bank including minimum terms for deposit; | ||
(6) purchasing, holding, and transferring water or | ||
water rights in its own name; | ||
(7) [ |
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information including water availability, pricing of water | ||
transactions, environmental considerations, and potential buyers | ||
and sellers of water rights; | ||
(8) [ |
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structuring water transactions; | ||
(9) [ |
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rights to meet instream, water quality, fish and wildlife habitat, | ||
or bay and estuary inflow needs; | ||
(10) [ |
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pay for feasibility studies or the preparation of plans and | ||
specifications relating to water conservation efforts or to | ||
estimate the amount of water that would be saved through | ||
conservation efforts; and | ||
(11) [ |
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transactions. | ||
SECTION 4. Chapter 15, Water Code, is amended by adding | ||
Subchapter S to read as follows: | ||
SUBCHAPTER S. REGIONAL WATER BANKS | ||
Sec. 15.1001. DEFINITIONS. In this subchapter: | ||
(1) "Deposit" means the placement of a water right or | ||
the right to use water in the water bank for transfer. | ||
(2) "Depositor" means a person who deposits or has on | ||
deposit a water right in the water bank or trust. | ||
(3) "Person" includes but is not limited to any | ||
individual, corporation, organization, government, or governmental | ||
subdivision or agency, including the board, business trust, estate, | ||
trust, partnership, association, and any other legal entity. | ||
(4) "Transfer" means the conveyance of a water right | ||
or the right to use water under a water right in any of the following | ||
manners: | ||
(A) the conveyance of legal title to a water | ||
right; or | ||
(B) a contract or option contract to allow use of | ||
a water right. | ||
(5) "Trust" means a regional water trust. | ||
(6) "Water bank" or "bank" means a regional water bank | ||
established under this subchapter. | ||
(7) "Water right" means a right acquired or authorized | ||
under the laws of this state to impound, divert, or use state water, | ||
underground water, or water from any source to the extent | ||
authorized by law. | ||
Sec. 15.1002. CREATION OF REGIONAL WATER BANKS. (a) The | ||
commission, in consultation with the board, shall establish a | ||
regional water bank for all or a portion of: | ||
(1) the Colorado River Basin; | ||
(2) the Brazos River Basin; | ||
(3) the Trinity River Basin; and | ||
(4) other river basins or regions, as the commission | ||
considers necessary. | ||
(b) The commission shall administer the water banks to | ||
facilitate water transactions to provide sources of adequate water | ||
supplies for use during times of drought or water shortage in each | ||
of the various river basins or regions. | ||
Sec. 15.1003. BANK OPERATION; RULES. (a) The commission | ||
may take all actions necessary to operate a water bank and to | ||
facilitate the transfer of water rights from a water bank for future | ||
beneficial use including but not limited to: | ||
(1) negotiating a sale price and terms acceptable to | ||
the depositor and purchaser; | ||
(2) maintaining a registry of water bank deposits and | ||
those water users in need of additional supplies; | ||
(3) informing water users in need of additional supply | ||
of water rights available in a bank; | ||
(4) encouraging water right holders to implement water | ||
conservation practices and deposit the right to use the conserved | ||
water into a bank; | ||
(5) establishing requirements for deposit of a water | ||
right into a water bank including minimum terms for deposit; | ||
(6) purchasing, holding, and transferring water or | ||
water rights in its own name; | ||
(7) acting as a clearinghouse for water marketing | ||
information including water availability, pricing of water | ||
transactions, environmental considerations, and potential buyers | ||
and sellers of water rights; | ||
(8) preparing and publishing a manual on structuring | ||
water transactions; | ||
(9) accepting and holding donations of water rights to | ||
meet instream, water quality, fish and wildlife habitat, or bay and | ||
estuary inflow needs; | ||
(10) entering into contracts with persons to pay for | ||
feasibility studies or the preparation of plans and specifications | ||
relating to water conservation efforts or to estimate the amount of | ||
water that would be saved through conservation efforts; and | ||
(11) other actions to facilitate water transactions. | ||
(b) The commission may adopt rules necessary for | ||
implementation of water banks. | ||
(c) The commission may contract with any person to achieve | ||
the purposes of this subchapter. | ||
Sec. 15.1004. TEXAS WATER TRUST. (a) A regional water | ||
trust is established within each water bank established under this | ||
chapter to hold water rights dedicated to environmental needs, | ||
including instream flows, water quality, fish and wildlife habitat, | ||
or bay and estuary inflows. | ||
(b) The commission, in consultation with the Parks and | ||
Wildlife Department and the board, shall adopt rules governing the | ||
process for holding and transferring water rights. | ||
(c) The dedication of any water rights placed in trust must | ||
be reviewed and approved by the commission, in consultation with | ||
the board and the Parks and Wildlife Department. In addition, the | ||
Department of Agriculture may provide input to the commission, as | ||
appropriate, during the review and approval process for dedication | ||
of water rights. | ||
(d) Water rights may be held in a trust for a term specified | ||
by contractual agreement or in perpetuity. | ||
Sec. 15.1005. TRANSFERS AND CONDITIONS. (a) A water right | ||
may be deposited in a water bank for an initial term of up to 10 | ||
years, unless otherwise held in a trust as established under | ||
Section 15.1004, during which time the water right is exempt from | ||
cancellation by the commission under the terms of Subchapter E, | ||
Chapter 11. A water right is exempt from cancellation under this | ||
subsection only once even if it has been transferred or | ||
redeposited. | ||
(b) The commission may not bring a cancellation action under | ||
Subchapter E, Chapter 11, for a 10-year period following commission | ||
approval of any necessary actions relating to a water right which | ||
has been transferred while on deposit in a water bank. | ||
(c) A contract or option contract to allow use of a water | ||
right under this subchapter: | ||
(1) may include a requirement that the purchaser show | ||
diligence in pursuing feasible and practicable alternative water | ||
supplies; and | ||
(2) does not vest any right in the purchaser beyond the | ||
stated terms and conditions of the contract or option contract. | ||
Sec. 15.1006. FEES. (a) The commission may charge a | ||
transaction fee per transfer not to exceed one percent of the value | ||
of the water or water right received into or transferred from a | ||
water bank to cover expenses of the board in operating the water | ||
bank. | ||
(b) The board shall place the fees in the water bank account | ||
of the water assistance fund where they shall be separately | ||
accounted for and used, with interest, only for the administration | ||
and operation of a water bank by the commission. | ||
Sec. 15.1007. REPORTS. The commission and the board shall | ||
provide ready access by the other agency through manual or computer | ||
capabilities to all water rights permits, final water rights | ||
decisions, applications, amendments, contracts, computerized | ||
files, computer programs, and other information related to water | ||
rights and to the operation of the water banks. The commission | ||
shall provide the board with all notices of proposed water rights | ||
actions. | ||
Sec. 15.1008. REGIONAL WATER BANK ACCOUNT. (a) The water | ||
bank account is created as a special account in the water assistance | ||
fund and is composed of: | ||
(1) money appropriated to the board or commission for | ||
the program; | ||
(2) fees collected by the board or commission under | ||
this subchapter; | ||
(3) money transferred to the account from the water | ||
assistance fund in Section 15.011(c) of this code; | ||
(4) grants, contracts, gifts, or other such funds that | ||
the board or commission may receive relating to this subchapter; | ||
(5) money received from the transfer of water or water | ||
rights held in the commission's name in a bank; and | ||
(6) interest earned on the investment of money in the | ||
account. | ||
(b) The money in the account may be used only for the | ||
administration and operation of a water bank by the commission | ||
under this subchapter. | ||
Sec. 15.1009. OTHER TRANSFERS. This subchapter does not | ||
prevent the sale or purchase of water or water rights by or through | ||
persons or entities outside of a water bank to the extent allowed by | ||
law. | ||
SECTION 5. Not later than May 1, 2014, the Texas Commission | ||
on Environmental Quality shall adopt rules necessary to implement | ||
Subchapter S, Chapter 15, Water Code, as added by this Act. | ||
SECTION 6. This Act takes effect September 1, 2013. |