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A BILL TO BE ENTITLED
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AN ACT
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relating to a study conducted by the Texas Water Development Board |
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regarding the development of a market and conveyance network for |
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water in this state. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. LEGISLATIVE FINDINGS. The legislature finds |
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that: |
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(1) water is a valuable part of the natural capital of |
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the state, serving vital economic, environmental, and social |
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purposes; |
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(2) the growing water needs of the state require using |
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water in an efficient manner and increasing the economic, |
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environmental, and social productivity of water; |
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(3) the efficient use of water often requires the |
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reallocation of water entitlements from one water user to another |
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and the conveyance of water from one geographic location to |
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another; and |
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(4) improving the efficient use of water in the state |
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may be promoted by improving the laws regarding water transfers and |
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markets and by constructing and operating an integrated network of |
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water conveyance infrastructure. |
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SECTION 2. DEFINITION. In this Act, "board" means the |
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Texas Water Development Board. |
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SECTION 3. STUDY. (a) The board shall conduct a study to |
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evaluate improvements to the transfer of water entitlements in this |
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state and the establishment of a water grid, including an |
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integrated network of pipelines, pumping stations, reservoirs, and |
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other works for the conveyance of water between river basins, water |
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sources, and areas of water use in the state. |
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(b) In conducting the study, the board shall: |
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(1) review studies previously conducted as part of the |
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state water planning process or otherwise; |
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(2) identify the necessary and useful features of an |
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efficient market for water, including water rights, institutions, |
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and infrastructure; |
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(3) examine case studies of water markets in other |
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jurisdictions both within and outside the United States; |
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(4) identify and evaluate potential sources of water |
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for the market and the water grid; |
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(5) identify and evaluate potential areas of use for |
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water delivered by the water grid, including areas of water use for |
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municipal, industrial, agricultural irrigation, recreational, |
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environmental, and other purposes; |
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(6) evaluate alternative facilities with varying |
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capacities, source and delivery points, and alignments, including |
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subsea alignments, and whether the water grid should convey treated |
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or untreated water in each conveyance reach; |
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(7) develop a strategy for the water grid that will |
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achieve optimal results for water use efficiency, water supply |
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reliability, economic efficiency, the functioning of a market for |
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water transfers, and the protection and enhancement of water |
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rights, investments, and the natural environment; |
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(8) connect the establishment, construction, |
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operation, and management of the water grid to the state water |
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planning process; |
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(9) evaluate alternative methods for ownership, |
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construction, operation, maintenance, control, and financing of |
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the water grid, including: |
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(A) ownership by a state agency; |
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(B) ownership by one or more special-purpose |
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districts or authorities created under Section 59, Article XVI, |
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Texas Constitution, for the purpose of providing wholesale water |
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supply, improvement, management, or transportation, including |
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river authorities and regional districts; |
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(C) ownership by a public utility; |
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(D) operation as a state-awarded concession; |
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(E) operation as a public-private partnership; |
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(F) development by private enterprises in a |
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competitive market; and |
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(G) development similar to other integrated |
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networks for the conveyance of natural resources; |
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(10) identify and evaluate methods to fund the |
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establishment of a water grid, including the appropriation of funds |
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or the issuance of bonds by the state or a state agency and state |
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participation in ownership of the facilities, the issuance of bonds |
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or participation by one or more entities described by Subdivision |
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(9)(B) of this subsection, the issuance of private activity bonds, |
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and the use of private investment capital; |
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(11) evaluate methods of incorporating existing water |
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conveyance infrastructure into a water grid, including: |
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(A) purchasing all or a portion of the water |
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conveyance infrastructure from the owners of that infrastructure; |
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and |
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(B) requiring that public agency and public |
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utility owners of water conveyance infrastructure make unutilized |
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or underutilized capacity available in that infrastructure, on |
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payment to the owner of reimbursable costs plus a reasonable return |
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on investment; |
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(12) consult with the Texas Commission on |
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Environmental Quality, the Public Utility Commission of Texas, the |
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Railroad Commission of Texas, and the General Land Office; and |
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(13) offer the public an opportunity to submit written |
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comments on the study for consideration by the board, with a comment |
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period lasting at least 30 days following publication of a draft |
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report. |
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SECTION 4. REPORT. Not later than September 1, 2016, the |
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board shall submit to the legislature a final written report |
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containing the findings of the study conducted under this Act and |
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the board's recommendations for any legislation or other action |
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necessary to implement the program described by Section 3(a) of |
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this Act. |
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SECTION 5. EXPIRATION. This Act expires September 1, 2017. |
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SECTION 6. EFFECTIVE DATE. This Act takes effect |
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immediately if it receives a vote of two-thirds of all the members |
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elected to each house, as provided by Section 39, Article III, Texas |
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Constitution. If this Act does not receive the vote necessary for |
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immediate effect, this Act takes effect September 1, 2015. |