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AN ACT
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relating to requirements for programs of water conservation and |
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water conservation plans. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Sections 15.103(a) and (e), Water Code, are |
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amended to read as follows: |
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(a) In an application to the board for financial assistance |
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from the loan fund, the applicant shall include: |
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(1) the name of each political subdivision or federal |
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agency and its principal officers; |
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(2) a citation of the law under which each political |
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subdivision or federal agency operates and was created; |
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(3) the total cost of the project; |
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(4) the amount of state financial assistance |
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requested; |
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(5) the plan for repaying the total cost of the |
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project; [and] |
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(6) the water conservation plan required by Section |
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16.4021; and |
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(7) any other information the board requires in order |
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to perform its duties and to protect the public interest. |
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(e) If the applicant claims an exemption under [Subsection
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(c),] Section 16.4021(d) [15.106 of this code], the applicant [he] |
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shall state the exemption in the [his] application and provide |
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information relating to the exemption as required by board rules. |
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SECTION 2. Section 15.206(b), Water Code, is amended to |
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read as follows: |
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(b) The application must include the following information: |
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(1) the name of the issuer; |
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(2) citations of the laws under which the issuer is |
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created and operates and under which the bonds to be insured are to |
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be issued; |
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(3) the total amount of bonds for which insurance |
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coverage is sought and the anticipated interest rate on the bonds; |
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(4) the term for which the bonds are to be issued; |
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(5) the purpose or purposes for which the bonds are to |
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be issued; |
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(6) financial information relating to the issuance of |
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the bonds and to the financial stability and future of the issuer; |
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[and] |
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(7) the water conservation plan required by Section |
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16.4021; and |
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(8) any other information the board requires by its |
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rules or otherwise considers necessary in making a determination of |
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the application. |
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SECTION 3. Section 15.435(g), Water Code, is amended to |
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read as follows: |
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(g) The board may not direct the trust company to enter into |
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a bond enhancement agreement with respect to bonds issued by the |
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board the proceeds of which may be used to provide financial |
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assistance to an applicant if at the time of the request the |
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applicant has failed to: |
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(1) provide information regarding [submit or
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implement] a water conservation plan in accordance with Section |
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16.4021 [11.1271]; or |
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(2) satisfactorily complete a request by the executive |
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administrator or a regional water planning group for information |
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relevant to the project for which the financial assistance is |
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sought, including a water infrastructure financing survey under |
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Section 16.053(q). |
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SECTION 4. Section 15.607, Water Code, is amended to read as |
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follows: |
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Sec. 15.607. APPROVAL OF APPLICATION. On review of |
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recommendations by the executive administrator, the board by |
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resolution may approve an application if the board finds that in its |
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opinion the revenue or taxes or both revenue and taxes pledged by |
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the applicant will be sufficient to meet all the obligations |
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assumed by the applicant and that the application and assistance |
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applied for meet the requirements of the federal act and state law, |
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including Section 16.4021. [A program of water conservation for
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the more effective use of water shall be required in the same manner
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as required for approval of an application for financial assistance
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under Section 15.106 of this code.] |
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SECTION 5. Section 15.910(a), Water Code, is amended to |
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read as follows: |
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(a) In an application to the board for financial assistance |
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from the fund, a political subdivision or water supply corporation |
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must include: |
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(1) its name and its principal officers; |
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(2) a citation of the law under which the subdivision |
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or corporation operates and was created; |
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(3) a description of the water or wastewater project |
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for which the financial assistance will be used; |
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(4) the total cost of the project; |
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(5) the amount of state financial assistance |
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requested; |
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(6) the plan for repaying any loan provided by the |
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board for the project; [and] |
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(7) the water conservation plan required by Section |
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16.4021; and |
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(8) any other information the board requires in order |
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to perform its duties and to protect the public interest. |
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SECTION 6. Section 15.975(a), Water Code, is amended to |
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read as follows: |
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(a) On review and recommendation by the executive |
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administrator, the board by resolution may approve an application |
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if the board finds that: |
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(1) the application and the assistance applied for |
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meet the requirements of this subchapter, Section 16.4021, and |
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board rules; |
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(2) the revenue or taxes, or both the revenue and |
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taxes, pledged by the applicant will be sufficient to meet all the |
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obligations assumed by the political subdivision; and |
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(3) the project will meet water needs in a manner |
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consistent with the state and regional water plans as required by |
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Section 16.053(j), unless otherwise specified by an act of the |
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legislature. |
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SECTION 7. Section 15.995(e), Water Code, is amended to |
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read as follows: |
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(e) An application from a rural political subdivision [A
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program of water conservation for the more efficient use of water
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shall be required in the same manner as is required for approval of
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an application] for financial assistance under this subchapter must |
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comply with the requirements of Section 16.4021 [Section 15.106]. |
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SECTION 8. Section 16.136, Water Code, is amended to read as |
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follows: |
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Sec. 16.136. FACILITIES WANTED BY POLITICAL SUBDIVISION. |
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The board may acquire all or part of any authorized facility to the |
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extent that the board finds that the political subdivision: |
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(1) is willing and reasonably able to finance that |
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portion of the cost of the facility that the board does not acquire; |
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(2) has obtained all necessary permits; |
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(3) has proposals that are consistent with the |
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objectives of the state water plan; and |
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(4) has complied with [a program of] water |
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conservation plan requirements [for the more efficient use of
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water] as required by Section 16.4021 [15.106 of this code]. |
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SECTION 9. Section 16.402(c), Water Code, is amended to |
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read as follows: |
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(c) The executive administrator shall review each water |
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conservation plan and annual report to determine compliance with |
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the minimum requirements established by Section 16.4021 [11.1271] |
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and the submission deadlines developed under Subsection (e) of this |
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section. |
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SECTION 10. Subchapter K, Chapter 16, Water Code, is |
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amended by adding Section 16.4021 to read as follows: |
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Sec. 16.4021. WATER CONSERVATION PLAN REQUIREMENTS. (a) |
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In this section, "water conservation plan" means a plan that |
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describes a program of water conservation for the more efficient |
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use of water. |
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(b) This section applies to an application for financial |
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assistance under: |
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(1) Subchapters C, D, E, G, H, J, O, Q, and R, Chapter |
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15; |
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(2) Subchapters E and F of this chapter; and |
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(3) Subchapters D, F, I, K, and L, Chapter 17. |
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(c) Except as provided by Subsection (d), an applicant must |
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submit with the application a description of the applicant's |
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proposed or adopted water conservation plan. The water |
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conservation plan: |
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(1) must: |
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(A) incorporate the practices, techniques, and |
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technology described by Section 15.001(9)(B); |
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(B) meet reasonably anticipated local needs and |
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conditions, as determined by the board; and |
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(C) include specific, quantified five-year and |
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10-year targets for water savings, including goals for water loss |
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programs and municipal use measured in gallons per capita per day; |
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and |
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(2) may include: |
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(A) restrictions on discretionary water uses, |
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including lawn watering; |
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(B) plumbing code standards for water |
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conservation in new building construction; |
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(C) retrofit programs to improve water-use |
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efficiency in existing buildings; |
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(D) educational programs; |
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(E) universal metering; |
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(F) conservation-oriented water rate structures; |
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(G) drought contingency plans; and |
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(H) distribution system leak detection and |
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repair. |
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(d) An applicant is not required to submit a water |
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conservation plan under this section if: |
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(1) an emergency exists as determined by the board; |
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(2) the amount of financial assistance under |
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consideration is not greater than $500,000; |
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(3) the applicant demonstrates and the board finds |
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that the implementation of a water conservation plan is not |
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reasonably necessary for conservation; or |
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(4) the financial assistance is to fund a project that |
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consists of construction outside this state. |
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(e) The board may not provide financial assistance to an |
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applicant to which this section applies unless the applicant |
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demonstrates that it has adopted and implemented a water |
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conservation plan that meets the requirements for a water |
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conservation plan under Subsection (c). |
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(f) The board shall establish an educational and technical |
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assistance program to assist political subdivisions in developing |
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comprehensive water conservation plans. |
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(g) If the applicant will use the project to furnish water |
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or services to another entity that will furnish the water or |
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services to the ultimate consumer, the requirement for an applicant |
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to demonstrate adoption and implementation of a water conservation |
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plan can be met through contractual agreements between the |
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applicant and the other entity providing for the adoption and |
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implementation of a water conservation plan by the other entity. |
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(h) Rules adopted under this section must state the criteria |
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for preparation, review, and enforcement of an applicant's water |
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conservation plan. |
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SECTION 11. Section 16.403, Water Code, as added by Chapter |
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595 (S.B. 181), Acts of the 82nd Legislature, Regular Session, |
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2011, is amended to read as follows: |
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Sec. 16.403. WATER USE REPORTING. (a) [The legislature
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finds that:
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[(1)
tracking water use over time and evaluating the
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effects of water conservation programs or strategies are vital
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components of planning for and managing the state's water resources
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to estimate and meet future water demand requirements;
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[(2)
gallons per capita per day, the common metric
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used by municipalities and water utilities for water supply
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planning and the calculation of water use, is not an accurate
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measure of water use or water conservation because a uniform,
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consistent methodology for the calculation of gallons per capita
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per day has not been established;
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[(3)
using a single gallons per capita per day metric
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to compare the water use of municipalities and water utilities does
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not produce a reliable comparison because water use is dependent on
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several variables, including differences in the amount of water
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used for commercial and industrial sector activities, power
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production, permanent versus temporary service populations, and
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agricultural sector production;
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[(4)
if valid water use comparisons and evaluations of
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a municipality's or water utility's water conservation programs are
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to be made over time for statewide resource management and water
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supply planning and permitting purposes, the methodology used to
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calculate gallons per capita per day must be uniform for all water
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suppliers;
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[(5)
a municipality's or water utility's industrial
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and agricultural sector's gallons per capita per day figures are
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not an accurate measure of actual water use and conservation by
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entities within those sectors because water use in the industrial
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and agricultural sectors is not population-dependent and therefore
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not accurately calculated using a population-based metric; and
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[(6)
a sector-based water use metric, adjusted for
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variables in water use by municipalities and water utilities, is
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necessary in order to provide an accurate comparison of water use
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and water conservation among municipalities and water utilities.
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[(b)] The board and the commission, in consultation with the |
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Water Conservation Advisory Council, shall develop a uniform, |
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consistent methodology and guidance for calculating water use and |
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conservation to be used by a municipality or water utility in |
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developing water conservation plans and preparing reports required |
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under this code. At a minimum, the methodology and guidance must |
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include: |
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(1) a method of calculating total water use by a |
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municipality or water utility, including water billed and |
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nonrevenue water used, and a method of calculating water use for |
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each sector of water users served by a municipality or water |
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utility; |
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(2) a method of calculating total water use by a |
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municipality or water utility in gallons per capita per day; |
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(3) a method of classifying water users within |
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sectors; |
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(4) a method of calculating water use in the |
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residential sector that includes both single-family and |
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multifamily residences, in gallons per capita per day; |
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(5) a method of calculating water use in the |
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industrial, agricultural, commercial, and institutional sectors |
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that is not dependent on a municipality's population or the number |
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of customers served by a water utility; and |
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(6) guidelines on the use of service populations by a |
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municipality or water utility in developing a per-capita-based |
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method of calculation, including guidance on the use of permanent |
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and temporary populations in making calculations. |
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(b) [(c)] The board or the commission, as appropriate, |
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shall use the methodology and guidance developed under Subsection |
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(a) [(b)] in evaluating a water conservation plan, program of water |
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conservation, survey, or other report relating to water |
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conservation submitted to the board or the commission under: |
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(1) Section 11.1271; |
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(2) Section 13.146; |
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(3) [Section 15.106;
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[(4) Section 15.607;
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[(5) Section 15.975;
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[(6) Section 15.995;
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[(7)] Section 16.012(m); |
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(4) [(8)] Section 16.402; or |
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(5) Section 16.4021 |
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[(9) Section 17.125;
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[(10) Section 17.277;
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[(11) Section 17.857; or
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[(12) Section 17.927]. |
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(c) [(d)] The board, in consultation with the commission |
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and the Water Conservation Advisory Council, shall develop a data |
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collection and reporting program for municipalities and water |
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utilities with more than 3,300 connections. |
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(d) [(e)] Not later than January 1 of each odd-numbered |
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year, the board shall submit to the legislature a report that |
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includes the most recent data relating to: |
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(1) statewide water usage in the residential, |
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industrial, agricultural, commercial, and institutional sectors; |
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and |
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(2) the data collection and reporting program |
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developed under Subsection (c) [(d)]. |
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(e) Data included in a water conservation plan or report |
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required under this code and submitted to the board or commission |
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must be interpreted in the context of variations in local water use. |
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The data may not be the only factor considered by the commission in |
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determining the highest practicable level of water conservation and |
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efficiency achievable in the jurisdiction of a municipality or |
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water utility for purposes of Section 11.085(l). |
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SECTION 12. Sections 17.122(a) and (c), Water Code, are |
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amended to read as follows: |
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(a) In an application to the board for financial assistance |
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for a water supply project, the applicant shall include: |
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(1) the name of the political subdivision and its |
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principal officers; |
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(2) a citation of the law under which the political |
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subdivision operates and was created; |
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(3) a description of the water supply project for |
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which the financial assistance will be used; |
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(4) the total cost of the water supply project; |
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(5) the amount of state financial assistance |
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requested; |
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(6) the plan for repaying the total cost of the water |
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supply project; |
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(7) the method for obtaining the financial assistance, |
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whether by purchase of bonds or purchase of other obligations of the |
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political subdivision; [and] |
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(8) the water conservation plan required by Section |
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16.4021; and |
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(9) any other information the board requires. |
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(c) If the applicant claims an exemption under [Subsection
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(c),] Section 16.4021 [17.125, of this code], the applicant [he] |
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shall state the exemption in the [his] application and provide |
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information relating to that exemption as provided by board rules. |
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SECTION 13. Sections 17.274(a) and (c), Water Code, are |
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amended to read as follows: |
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(a) In an application to the board for financial assistance |
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for water quality enhancement purposes, the applicant shall |
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include: |
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(1) the name of the political subdivision and its |
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principal officers; |
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(2) a citation of the law under which the political |
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subdivision operates and was created; |
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(3) a description of the treatment works for which the |
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financial assistance will be used; |
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(4) the estimated total cost of construction of the |
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treatment works; |
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(5) the amount of state financial assistance |
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requested; |
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(6) the method for obtaining the financial assistance, |
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whether by purchase of bonds or purchase of other obligations of the |
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political subdivision; |
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(7) the plan for repaying the financial assistance; |
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[and] |
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(8) the water conservation plan required by Section |
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16.4021; and |
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(9) any other information the board requires. |
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(c) If the applicant claims an exemption under [Subsection
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(d),] Section 16.4021 [17.277, of this code], the applicant shall |
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state the exemption in the application and provide information |
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relating to that exemption as provided by board rules. |
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SECTION 14. Section 17.855(a), Water Code, is amended to |
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read as follows: |
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(a) In an application to the board for financial assistance |
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through the acquisition of acquired obligations, the participant |
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shall include: |
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(1) the name of the participant and its principal |
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officer or officers; |
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(2) a citation of the law under which the participant |
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was created, operates, and proposes to issue its obligations to be |
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acquired by the board; |
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(3) the total cost of the project; |
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(4) the amount of state financial assistance |
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requested; |
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(5) the plan for paying the principal of and interest |
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on its obligations to be acquired by the board; [and] |
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(6) the water conservation plan required by Section |
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16.4021; and |
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(7) any other information the board requires in order |
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to perform its duties and to protect the public interest. |
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SECTION 15. Section 17.927(b), Water Code, is amended to |
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read as follows: |
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(b) The application and plan must include: |
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(1) the name of the political subdivision and its |
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principal officers; |
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(2) a citation of the law under which the political |
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subdivision was created and operates; |
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(3) a project plan, prepared and certified by an |
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engineer registered to practice in this state, that must: |
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(A) describe the proposed planning, design, and |
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construction activities necessary to provide water supply and sewer |
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services that meet minimum state standards; and |
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(B) identify the households to which the water |
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supply and sewer services will be provided; |
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(4) a budget that estimates the total cost of |
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providing water supply and sewer services to the economically |
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distressed area and a proposed schedule and method for repayment of |
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financial assistance consistent with board rules and guidelines; |
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(5) a description of the existing water supply and |
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sewer facilities located in the area to be served by the proposed |
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project, including a statement prepared and certified by an |
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engineer registered to practice in this state that the facilities |
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do not meet minimum state standards; |
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(6) documentation that the appropriate political |
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subdivision has adopted the model rules developed under Section |
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16.343; |
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(7) information identifying the median household |
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income for the area to be served by the proposed project; [and] |
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(8) the total amount of assistance requested from the |
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economically distressed areas account; and |
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(9) the water conservation plan required by Section |
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16.4021. |
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SECTION 16. The following provisions of the Water Code are |
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repealed: |
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(1) Section 15.103(d); |
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(2) Sections 15.106(b), (b-1), (c), (d), (e), and (f); |
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(3) Sections 15.208(b), (c), and (d); |
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(4) Section 15.910(c); |
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(5) Section 15.975(b); |
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(6) Section 16.403, as added by Chapter 1233 (S.B. |
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660), Acts of the 82nd Legislature, Regular Session, 2011; |
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(7) Sections 17.125(b), (b-1), (b-2), (c), (d), (e), |
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and (f); |
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(8) Section 17.274(b); |
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(9) Sections 17.277(b), (b-1), (c), (d), (e), and (f); |
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(10) Sections 17.857(b), (b-1), (c), and (d); and |
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(11) Section 17.927(c). |
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SECTION 17. The changes in law made by this Act apply only |
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to an application for financial assistance or public funding |
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submitted to the Texas Water Development Board on or after the |
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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. |
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SECTION 18. This Act takes effect September 1, 2019. |
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______________________________ |
______________________________ |
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President of the Senate |
Speaker of the House |
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I certify that H.B. No. 3339 was passed by the House on May 3, |
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2019, by the following vote: Yeas 138, Nays 2, 2 present, not |
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voting. |
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______________________________ |
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Chief Clerk of the House |
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I certify that H.B. No. 3339 was passed by the Senate on May |
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21, 2019, by the following vote: Yeas 31, Nays 0. |
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______________________________ |
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Secretary of the Senate |
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APPROVED: _____________________ |
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Date |
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_____________________ |
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Governor |