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