H.B. No. 4
 
 
 
 
AN ACT
  relating to water conservation.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 1.003, Water Code, is amended to read as
  follows:
         Sec. 1.003.  PUBLIC POLICY.  It is the public policy of the
  state to provide for the conservation and development of the
  state's natural resources, including:
               (1)  the control, storage, preservation, and
  distribution of the state's storm and floodwaters and the waters of
  its rivers and streams for irrigation, power, and other useful
  purposes;
               (2)  the reclamation and irrigation of the state's
  arid, semiarid, and other land needing irrigation;
               (3)  the reclamation and drainage of the state's
  overflowed land and other land needing drainage;
               (4)  the conservation and development of its forest,
  water, and hydroelectric power;
               (5)  the navigation of the state's inland and coastal
  waters; [and]
               (6)  the maintenance of a proper ecological environment
  of the bays and estuaries of Texas and the health of related living
  marine resources; and
               (7)  the voluntary stewardship of public and private
  lands to benefit waters of the state.
         SECTION 2.  Subchapter A, Chapter 1, Water Code, is amended
  by adding Section 1.004 to read as follows:
         Sec. 1.004.  FINDINGS AND POLICY REGARDING LAND STEWARDSHIP.
  (a)  The legislature finds that voluntary land stewardship
  enhances the efficiency and effectiveness of this state's
  watersheds by helping to increase surface water and groundwater
  supplies, resulting in a benefit to the natural resources of this
  state and to the general public. It is therefore the policy of this
  state to encourage voluntary land stewardship as a significant
  water management tool.
         (b)  "Land stewardship," as used in this code, is the
  voluntary practice of managing land to conserve or enhance suitable
  landscapes and the ecosystem values of the land. Land stewardship
  includes land and habitat management, wildlife conservation, and
  watershed protection. Land stewardship practices include runoff
  reduction, prescribed burning, managed grazing, brush management,
  erosion management, reseeding with native plant species, riparian
  management and restoration, and spring and creek-bank protection,
  all of which benefit the water resources of this state.
         SECTION 3.  Subtitle A, Title 2, Water Code, is amended by
  adding Chapter 10 to read as follows:
  CHAPTER 10. WATER CONSERVATION ADVISORY COUNCIL
         Sec. 10.001.  DEFINITIONS. In this chapter:
               (1)  "Best management practices" has the meaning
  assigned by Section 11.002.
               (2)  "Board" means the Texas Water Development Board.
               (3)  "Commission" means the Texas Commission on
  Environmental Quality.
               (4)  "Council" means the Water Conservation Advisory
  Council.
         Sec. 10.002.  PURPOSE.  The council is created to provide the
  governor, lieutenant governor, speaker of the house of
  representatives, legislature, board, commission, political
  subdivisions, and public with the resource of a select council with
  expertise in water conservation.
         Sec. 10.003.  CREATION AND MEMBERSHIP.  (a)  The council is
  composed of 23 members appointed by the board. The board shall
  appoint one member to represent each of the following entities or
  interest groups:
               (1)  Texas Commission on Environmental Quality;
               (2)  Department of Agriculture;
               (3)  Parks and Wildlife Department;
               (4)  State Soil and Water Conservation Board;
               (5)  Texas Water Development Board;
               (6)  regional water planning groups;
               (7)  federal agencies;
               (8)  municipalities;
               (9)  groundwater conservation districts;
               (10)  river authorities;
               (11)  environmental groups;
               (12)  irrigation districts;
               (13)  institutional water users;
               (14)  professional organizations focused on water
  conservation;
               (15)  higher education;
               (16)  agricultural groups;
               (17)  refining and chemical manufacturing;
               (18)  electric generation;
               (19)  mining and recovery of minerals;
               (20)  landscape irrigation and horticulture;
               (21)  water control and improvement districts;
               (22)  rural water users;  and
               (23)  municipal utility districts.
         (b)  Each entity or interest group described by Subsection
  (a) may recommend one or more persons to fill the position on the
  council held by the member who represents that entity or interest
  group.  If one or more persons are recommended for a position on the
  council, the board shall appoint one of the persons recommended to
  fill the position.
         Sec. 10.004.  TERMS.  (a)  Members of the council serve
  staggered terms of six years, with seven or eight members' terms, as
  applicable, expiring August 31 of each odd-numbered year.
         (b)  The board shall fill a vacancy on the council for the
  unexpired term by appointing a person who has the same
  qualifications as required under Section 10.003 for the person who
  previously held the vacated position.
         Sec. 10.005.  PRESIDING OFFICER.  The council members shall
  select one member as the presiding officer of the council to serve
  in that capacity until the person's term as a council member
  expires.
         Sec. 10.006.  COUNCIL STAFF. On request by the council, the
  board shall provide any necessary staff to assist the council in the
  performance of its duties.
         Sec. 10.007.  PUBLIC MEETINGS AND PUBLIC INFORMATION. (a)  
  The council may hold public meetings as needed to fulfill its duties
  under this chapter.
         (b)  The council is subject to Chapters 551 and 552,
  Government Code.
         Sec. 10.008.  INAPPLICABILITY OF ADVISORY COMMITTEE LAW.  
  Chapter 2110, Government Code, does not apply to the size,
  composition, or duration of the council.
         Sec. 10.009.  COMPENSATION OF MEMBERS.  (a)  Members of the
  council serve without compensation but may be reimbursed by
  legislative appropriation for actual and necessary expenses
  related to the performance of council duties.
         (b)  Reimbursement under Subsection (a) is subject to the
  approval of the presiding officer of the council.
         Sec. 10.010.  POWERS AND DUTIES OF COUNCIL.  The council
  shall:
               (1)  monitor trends in water conservation
  implementation;
               (2)  monitor new technologies for possible inclusion by
  the board as best management practices in the best management
  practices guide developed by the water conservation implementation
  task force under Chapter 109, Acts of the 78th Legislature, Regular
  Session, 2003;
               (3)  monitor the effectiveness of the statewide water
  conservation public awareness program developed under Section
  16.401 and associated local involvement in implementation of the
  program;
               (4)  develop and implement a state water management
  resource library;
               (5)  develop and implement a public recognition program
  for water conservation;
               (6)  monitor the implementation of water conservation
  strategies by water users included in regional water plans; and
               (7)  monitor target and goal guidelines for water
  conservation to be considered by the board and commission.
         Sec. 10.011.  REPORT.  Not later than December 1 of each
  even-numbered year, the council shall submit to the governor,
  lieutenant governor, and speaker of the house of representatives a
  report on progress made in water conservation in this state.
         Sec. 10.012.  DESIGNATION OF CERTIFIED WATER CONSERVATION
  TRAINING FACILITIES STUDY. (a) The council shall conduct a study
  to evaluate the desirability of requiring the board to:
               (1)  designate as certified water conservation
  training facilities entities and programs that provide assistance
  to retail public utilities in developing water conservation plans
  under Section 13.146; and
               (2)  give preference to certified water conservation
  training facilities in making loans or grants for water
  conservation training and education activities.
         (b)  Not later than December 1, 2008, the council shall
  submit a written report containing the findings of the study and the
  recommendations of the council to the governor, lieutenant
  governor, and speaker of the house of representatives.
         (c)  This section expires June 1, 2009.
         SECTION 4.  Section 11.002, Water Code, is amended by adding
  Subdivision (15) to read as follows:
               (15)  "Best management practices" means those
  voluntary efficiency measures developed by the commission and the
  board that save a quantifiable amount of water, either directly or
  indirectly, and that can be implemented within a specified time
  frame.
         SECTION 5.  Section 11.0235(b), Water Code, is amended to
  read as follows:
         (b)  Maintaining the biological soundness of the state's
  rivers, lakes, bays, and estuaries is of great importance to the
  public's economic health and general well-being. The legislature
  encourages voluntary water and land stewardship to benefit the
  water in the state, as defined by Section 26.001.
         SECTION 6.  Subchapter E, Chapter 13, Water Code, is amended
  by adding Section 13.146 to read as follows:
         Sec. 13.146.  WATER CONSERVATION PLAN.  The commission shall
  require a retail public utility that provides potable water service
  to 3,300 or more connections to submit to the executive
  administrator of the board a water conservation plan based on
  specific targets and goals developed by the retail public utility
  and using appropriate best management practices, as defined by
  Section 11.002, or other water conservation strategies.
         SECTION 7.  Section 15.102(b), Water Code, is amended to
  read as follows:
         (b)  The loan fund may also be used by the board to provide:
               (1)  grants or loans for projects that include
  supplying water and wastewater services in economically distressed
  areas or nonborder colonias as provided by legislative
  appropriations, this chapter, and board rules, including projects
  involving retail distribution of those services; and
               (2)  grants for:
                     (A)  projects for which federal grant funds are
  placed in the loan fund;
                     (B)  projects, on specific legislative
  appropriation for those projects; or
                     (C)  water conservation, desalination, brush
  control, weather modification, regionalization, and projects
  providing regional water quality enhancement services as defined by
  board rule, including regional conveyance systems.
         SECTION 8.  Chapter 16, Water Code, is amended by adding
  Subchapter K to read as follows:
  SUBCHAPTER K. WATER CONSERVATION
         Sec. 16.401.  STATEWIDE WATER CONSERVATION PUBLIC AWARENESS
  PROGRAM.  (a)  The executive administrator shall develop and
  implement a statewide water conservation public awareness program
  to educate residents of this state about water conservation. The
  program shall take into account the differences in water
  conservation needs of various geographic regions of the state and
  shall be designed to complement and support existing local and
  regional water conservation programs.
         (b)  The executive administrator is required to develop and
  implement the program required by Subsection (a) in a state fiscal
  biennium only if the legislature appropriates sufficient money in
  that biennium specifically for that purpose.
         Sec. 16.402.  WATER CONSERVATION PLAN REVIEW. (a)  Each
  entity that is required to submit a water conservation plan to the
  commission under this code shall submit a copy of the plan to the
  executive administrator.
         (b)  Each entity that is required to submit a water
  conservation plan to the executive administrator, board, or
  commission under this code shall report annually to the executive
  administrator on the entity's progress in implementing the plan.
         (c)  The executive administrator shall review each water
  conservation plan and annual report to determine compliance with
  the minimum requirements established by Section 11.1271 and the
  submission deadlines developed under Subsection (e) of this
  section.
         (d)  The board may notify the commission if the board
  determines that an entity has violated this section or a rule
  adopted under this section.  Notwithstanding Section 7.051(b), a
  violation of this section or of a rule adopted under this section is
  enforceable in the manner provided by Chapter 7 for a violation of a
  provision of this code within the commission's jurisdiction or of a
  rule adopted by the commission under a provision of this code within
  the commission's jurisdiction.
         (e)  The board and commission jointly shall adopt rules:
               (1)  identifying the minimum requirements and
  submission deadlines for the annual reports required by Subsection
  (b); and
               (2)  providing for the enforcement of this section and
  rules adopted under this section.
         SECTION 9.  Subchapter Z, Chapter 51, Education Code, is
  amended by adding Section 51.969 to read as follows:
         Sec. 51.969.  ON-SITE RECLAIMED SYSTEM TECHNOLOGIES
  CURRICULUM. The Texas Higher Education Coordinating Board shall
  encourage each institution of higher education to develop
  curriculum and provide related instruction regarding on-site
  reclaimed system technologies, including rainwater harvesting,
  condensate collection, or cooling tower blow down.
         SECTION 10.  Section 447.004, Government Code, is amended by
  adding Subsections (c-1) and (c-2) to read as follows:
         (c-1)  The procedural standards adopted under this section
  must require that on-site reclaimed system technologies, including
  rainwater harvesting, condensate collection, or cooling tower blow
  down, or a combination of those system technologies, for nonpotable
  indoor use and landscape watering be incorporated into the design
  and construction of:
               (1)  each new state building with a roof measuring at
  least 10,000 square feet; and
               (2)  any other new state building for which the
  incorporation of such systems is feasible.
         (c-2)  The procedural standards required by Subsection (c-1)
  do not apply to a building if the state agency or institution of
  higher education constructing the building:
               (1)  determines that compliance with those standards is
  impractical; and
               (2)  notifies the state energy conservation office of
  the determination and provides to the office documentation
  supporting the determination.
         SECTION 11.  Section 341.042, Health and Safety Code, is
  amended to read as follows:
         Sec. 341.042.  STANDARDS FOR HARVESTED RAINWATER.  (a) The
  commission shall establish recommended standards relating to the
  domestic use of harvested rainwater, including health and safety
  standards for treatment and collection methods for harvested
  rainwater intended for drinking, cooking, or bathing.
         (b)  The commission by rule shall provide that if a structure
  is connected to a public water supply system and has a rainwater
  harvesting system for indoor use:
               (1)  the structure must have appropriate
  cross-connection safeguards; and
               (2)  the rainwater harvesting system may be used only
  for nonpotable indoor purposes.
         (c)  Standards and rules adopted by the commission under this
  chapter governing public drinking water supply systems do not apply
  to a person:
               (1)  who harvests rainwater for domestic use; and
               (2)  whose property is not connected to a public
  drinking water supply system.
         SECTION 12.  Chapter 401, Local Government Code, is amended
  by adding Section 401.006 to read as follows:
         Sec. 401.006.  WATER CONSERVATION BY HOME-RULE
  MUNICIPALITY. A home-rule municipality may adopt and enforce
  ordinances requiring water conservation in the municipality and by
  customers of the municipality's municipally owned water and sewer
  utility in the extraterritorial jurisdiction of the municipality.
         SECTION 13.  Section 1903.053, Occupations Code, is amended
  to read as follows:
         Sec. 1903.053.  STANDARDS.  (a)  The commission shall adopt
  by rule and enforce standards governing:
               (1)  the connection of irrigation systems to any water
  supply;
               (2)  the design, installation, and operation of
  irrigation systems;
               (3)  water conservation; and
               (4)  the duties and responsibilities of licensed
  irrigators.
         (b)  [The commission may adopt standards for irrigation that
  include water conservation, irrigation system design and
  installation, and compliance with municipal codes.
         [(c)]  The commission may not require or prohibit the use of
  any irrigation system, component part, or equipment of any
  particular brand or manufacturer.
         (c)  In adopting standards under this section, the
  commission shall consult the council.
         SECTION 14.  Section 151.355, Tax Code, is amended to read as
  follows:
         Sec. 151.355.  WATER-RELATED EXEMPTIONS. The following are
  exempted from taxes imposed by this chapter:
               (1)  rainwater harvesting equipment or supplies, water
  recycling and reuse equipment or supplies, or other equipment,
  services, or supplies used solely to reduce or eliminate water use;
               (2)  equipment, services, or supplies used solely for
  desalination of surface water or groundwater;
               (3)  equipment, services, or supplies used solely for
  brush control designed to enhance the availability of water;
               (4)  equipment, services, or supplies used solely for
  precipitation enhancement;
               (5)  equipment, services, or supplies used solely to
  construct or operate a water or wastewater system certified by the
  Texas Commission on Environmental Quality as a regional system;
  [and]
               (6)  equipment, services, or supplies used solely to
  construct or operate a water supply or wastewater system by a
  private entity as a public-private partnership as certified by the
  political subdivision that is a party to the project; and
               (7)  tangible personal property specifically used to
  process, reuse, or recycle wastewater that will be used in
  fracturing work performed at an oil or gas well.
         SECTION 15.  The change in law made by this Act to Section
  151.355, Tax Code, does not affect taxes imposed before the
  effective date of this Act, and the law in effect before the
  effective date of this Act is continued in effect for purposes of
  the liability for and collection of those taxes.
         SECTION 16.  As soon as practicable on or after the effective
  date of this Act, the Texas Water Development Board shall appoint
  the initial members of the Water Conservation Advisory Council, as
  required by Section 10.003, Water Code, as added by this Act.  In
  making the initial appointments, the board shall designate seven
  members to serve terms expiring August 31, 2009, eight members to
  serve terms expiring August 31, 2011, and eight members to serve
  terms expiring August 31, 2013.
         SECTION 17.  Section 15.102(b), Water Code, as amended by
  this Act, applies only to an application for financial assistance
  filed with the Texas Water Development Board on or after the
  effective date of this Act. An application for financial assistance
  filed before the effective date of this Act is governed by the law
  in effect on the date the application was filed, and the former law
  is continued in effect for that purpose.
         SECTION 18.  Not later than January 1, 2008, the Texas Water
  Development Board and the Texas Commission on Environmental Quality
  jointly shall adopt rules as required by Section 16.402(e), Water
  Code, as added by this Act.
         SECTION 19.  Not later than June 1, 2008, the Texas
  Commission on Environmental Quality shall adopt standards as
  required by Section 1903.053, Occupations Code, as amended by this
  Act, to take effect January 1, 2009.
         SECTION 20.  (a)  Except as provided by Subsection (b) of
  this section, 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, 2007.
         (b)  Section 10 of this Act takes effect September 1, 2009.
 
 
  ______________________________ ______________________________
     President of the Senate Speaker of the House     
 
 
         I certify that H.B. No. 4 was passed by the House on May 1,
  2007, by the following vote:  Yeas 130, Nays 1, 1 present, not
  voting; that the House refused to concur in Senate amendments to
  H.B. No. 4 on May 25, 2007, and requested the appointment of a
  conference committee to consider the differences between the two
  houses; and that the House adopted the conference committee report
  on H.B. No. 4 on May 27, 2007, by the following vote:  Yeas 144,
  Nays 1, 2 present, not voting.
 
  ______________________________
  Chief Clerk of the House   
 
         I certify that H.B. No. 4 was passed by the Senate, with
  amendments, on May 23, 2007, by the following vote:  Yeas 30, Nays
  0; at the request of the House, the Senate appointed a conference
  committee to consider the differences between the two houses; and
  that the Senate adopted the conference committee report on H.B. No.
  4 on May 28, 2007, by the following vote:  Yeas 30, Nays 0.
 
  ______________________________
  Secretary of the Senate   
  APPROVED: __________________
                  Date       
   
           __________________
                Governor