BILL ANALYSIS


                                                    C.S.H.B. 1989
                                            By: Rodriguez (Madla)
                                                Natural Resources
                                                           5-9-95
                            Senate Committee Report (Substituted)
BACKGROUND

Presently, state law allows state water to be appropriated, stored,
or diverted for any beneficial use as mandated by the Texas Water
Code, Section 11.023(b), which outlines the purposes for which
water may be appropriated and used. This broad authorization
becomes limited if the proposed use of the state water is to
recharge the portions of the Edwards Aquifer under Kinney, Uvalde,
Medina, Bexar, Comal, and Hays counties as cited in Sections
11.023(c) and (d), Water Code.

PURPOSE

As proposed, C.S.H.B. 1989 provides for the underground storage of
appropriated water incidental to a beneficial use.

RULEMAKING AUTHORITY

It is the committee's opinion that this bill does not grant any
additional rulemaking authority to a state officer, institution, or
agency.

SECTION BY SECTION ANALYSIS

SECTION 1. Sets forth legislative findings in relation to
underground storage of appropriated water incidental to a
beneficial use.

SECTION 2. Amends Chapter 11D, Water Code, by adding Sections
11.153, 11.154, and 11.155, as follows:

     Sec. 11.153. PILOT PROJECTS FOR STORAGE OF APPROPRIATED WATER
     IN AQUIFERS. (a) Requires the Natural Resource Conservation
     Commission (commission) to investigate the feasibility of
     storing appropriated water in various types of aquifers around
     the state by encouraging the issuance of temporary or term
     permits for pilot demonstration projects for the storage of
     appropriated water for subsequent retrieval and beneficial use
     in certain aquifers.
     
     (b) Sets forth requirements for a permit described by
       Subsection (a).
       
       (c) Authorizes a permit holder, at the conclusion of a pilot
       project, to file an appropriate application for a permit or
       a permit amendment.  Requires the commission, after
       considering the success of a project, to determine whether
       to issue a permit or permit amendment authorizing the
       continued storage of the appropriated water in the aquifer.
       
       (d) Prohibits a final order granting a permit or permit
       amendment authorizing the storage of appropriated water for
       subsequent beneficial use, other than for pilot projects,
       from being issued before June 1, 1999.
       
       (e) Requires the Texas Water Development Board (board) to
       participate in the study of the pilot projects authorized by
       Subsection (a). Provides that the pilot projects are
       eligible for grants from the water loan assistance fund
       established by Section 15.101. Authorizes the board to
       authorize use of money from the research and planning fund
       established by Section 15.402 to participate in the study of
       pilot projects.
       
       Sec. 11.154. PERMITS TO STORE APPROPRIATED WATER IN AQUIFERS.
     (a) Sets forth provisions required to be included in an
     application filed with the commission to undertake a pilot
     project under Section 11.153.
     
     (b)(1) Sets forth requirements for an applicant applying for
       a permit or permit amendment to store appropriated water in
       an underground reservoir or a subdivision of an underground
       water reservoir that is under the jurisdiction of an
       underground water conservation district (permit).
       
       (2) Requires the commission to require that any agreement
         the applicant reaches with the district that has
         jurisdiction over the reservoir or subdivision regarding
         the terms for the injection, storage, and withdrawal of
         appropriated water be included as a condition of the
         permit or permit amendment.
         
         (c) Requires the commission, on completion of a pilot
       project and receipt of an appropriate permit or permit
       amendment application, to evaluate the success of the pilot
       project.  Sets forth the issues the commission must consider
       for the purposes of issuing a final order granting a permit
       or permit amendment authorizing the storage of appropriated
       water incident to a beneficial use.
       
       (d) Sets forth the relevant facts the commission may
       consider in making its evaluation.
       
       (e) Requires a permit to store appropriated water in an
       underground water reservoir or subdivision to provide as a
       condition of the permit that the permit holder register
       specific kinds of wells and provide reports to districts.
       
       Sec. 11.155. AQUIFER STORAGE PILOT PROJECT REPORTS. (a)
     Requires the board and the commission, on completion of each
     pilot project, to jointly prepare a report evaluating the
     success of the project; and provide copies of the report to
     the governor, lieutenant governor, and speaker of the house of
     representatives.
     
     (b) Requires the board to make other studies,
       investigations, and surveys of the aquifers in the state as
       it considers necessary to determine the occurrence,
       quantity, quality, and availability of other aquifers in
       which water may be stored and subsequently retrieved for
       beneficial use. Sets forth the order of priority in which
       the board is required to undertake the studies,
       investigations, and surveys.
       
       (c) Sets forth information for a report the board is
       required, no later than January 1 of each odd-numbered year,
       to prepare and provide to the legislature.
       
       SECTION 3.   Makes application of this Act prospective.

SECTION 4  Emergency clause.
           Effective date: upon passage.