H.B. No. 3233
  relating to interbasin transfers of state water.
         SECTION 1.  Sections 11.085(b), (e), (g), (l), (n), and (v),
  Water Code, are amended to read as follows:
         (b)  The application must include:
               (1)  the contract price of the water to be transferred;
               (2)  a statement of each general category of proposed
  use of the water to be transferred and a detailed description of the
  proposed uses and users under each category; and
               (3)  the cost of diverting, conveying, distributing,
  and supplying the water to, and treating the water for, the proposed
  users[; and
               [(4)     the projected effect on user rates and fees for
  each class of ratepayers].
         (e)  In addition to the public meetings required by
  Subsection (d) [of this section], if the application is contested
  in a manner requiring an evidentiary hearing under the rules of the
  commission, the commission shall give notice and hold an
  evidentiary hearing, in accordance with commission rules and
  applicable state law. An evidentiary hearing on an application to
  transfer water authorized under an existing water right is limited
  to considering issues related to the requirements of this section.
         (g)  The applicant shall cause the notice of application for
  an interbasin transfer to be published in two different weeks
  within a 30-day period [once a week for two consecutive weeks] in
  one or more newspapers having general circulation in each county
  located in whole or in part in the basin of origin or the receiving
  basin. The published notice may not be smaller than 96.8 square
  centimeters or 15 square inches with the shortest dimension at
  least 7.6 centimeters or three inches. The notice of application
  and public meetings shall be combined in the mailed and published
         (l)  The commission may grant, in whole or in part, an
  application for an interbasin transfer only to the extent that:
               (1)  the detriments to the basin of origin during the
  proposed transfer period are less than the benefits to the
  receiving basin during the proposed transfer period, as determined
  by the commission based on consideration of the factors described
  by Subsection (k); and
               (2)  the applicant for the interbasin transfer has
  prepared a drought contingency plan and has developed and
  implemented a water conservation plan that will result in the
  highest practicable levels of water conservation and efficiency
  achievable within the jurisdiction of the applicant.
         (n)  If the transfer of water is based on a contractual sale
  of water, the new water right or amended permit, certified filing,
  or certificate of adjudication authorizing the transfer shall
  contain a condition for a term or period not greater than the term
  of the contract, including any extension or renewal of the contract 
         (v)  The provisions of this section, except Subsection (a),
  do not apply to:
               (1)  a proposed transfer which in combination with any
  existing transfers totals less than 3,000 acre-feet of water per
  annum from the same permit, certified filing, or certificate of
               (2)  a request for an emergency transfer of water;
               (3)  a proposed transfer from a basin to its adjoining
  coastal basin;
               (4)  a proposed transfer from the part of the
  geographic area of [a basin to] a county or municipality, or the
  part of the retail service area of a retail public utility as
  defined by Section 13.002, [the municipality's retail service area]
  that is [partially] within the basin of origin for use in that part
  of the geographic area of the county or municipality, or that
  contiguous part of the retail service area of the utility, [and the
  municipality's retail service area] not within the basin of origin;
               (5)  a proposed transfer of water that is:
                     (A)  imported from a source located wholly outside
  the boundaries of this state, except water that is imported from a
  source located in the United Mexican States;
                     (B)  for use in this state; and
                     (C)  transported by using the bed and banks of any
  flowing natural stream located in this state.
         SECTION 2.  The changes in law made by this Act apply only to
  an application for an interbasin transfer filed with the Texas
  Commission on Environmental Quality on or after the effective date
  of this Act. An application 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 3.  This Act takes effect September 1, 2013.
  ______________________________ ______________________________
     President of the Senate Speaker of the House     
         I certify that H.B. No. 3233 was passed by the House on May 7,
  2013, by the following vote:  Yeas 139, Nays 0, 2 present, not
  Chief Clerk of the House   
         I certify that H.B. No. 3233 was passed by the Senate on May
  21, 2013, by the following vote:  Yeas 30, Nays 0.
  Secretary of the Senate    
  APPROVED:  _____________________