84R11346 SLB-F
	By: Larson	H.B. No. 3298

	A BILL TO BE ENTITLED
	AN ACT
	relating to a study conducted by the Texas Water Development Board
	regarding the development of a market and conveyance network for
	water in this state.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
	SECTION 1.  LEGISLATIVE FINDINGS.  The legislature finds
	that:
	(1)  water is a valuable part of the natural capital of
	the state, serving vital economic, environmental, and social
	purposes;
	(2)  the growing water needs of the state require using
	water in an efficient manner and increasing the economic,
	environmental, and social productivity of water;
	(3)  the efficient use of water often requires the
	reallocation of water entitlements from one water user to another
	and the conveyance of water from one geographic location to
	another; and
	(4)  improving the efficient use of water in the state
	may be promoted by improving the laws regarding water transfers and
	markets and by constructing and operating an integrated network of
	water conveyance infrastructure.
	SECTION 2.  DEFINITION.  In this Act, "board" means the
	Texas Water Development Board.
	SECTION 3.  STUDY.  (a) The board shall conduct a study to
	evaluate improvements to the transfer of water entitlements in this
	state and the establishment of a water grid, including an
	integrated network of pipelines, pumping stations, reservoirs, and
	other works for the conveyance of water between river basins, water
	sources, and areas of water use in the state.
	(b)  In conducting the study, the board shall:
	(1)  review studies previously conducted as part of the
	state water planning process or otherwise;
	(2)  identify the necessary and useful features of an
	efficient market for water, including water rights, institutions,
	and infrastructure;
	(3)  examine case studies of water markets in other
	jurisdictions both within and outside the United States;
	(4)  identify and evaluate potential sources of water
	for the market and the water grid;
	(5)  identify and evaluate potential areas of use for
	water delivered by the water grid, including areas of water use for
	municipal, industrial, agricultural irrigation, recreational,
	environmental, and other purposes;
	(6)  evaluate alternative facilities with varying
	capacities, source and delivery points, and alignments, including
	subsea alignments, and whether the water grid should convey treated
	or untreated water in each conveyance reach;
	(7)  develop a strategy for the water grid that will
	achieve optimal results for water use efficiency, water supply
	reliability, economic efficiency, the functioning of a market for
	water transfers, and the protection and enhancement of water
	rights, investments, and the natural environment;
	(8)  connect the establishment, construction,
	operation, and management of the water grid to the state water
	planning process;
	(9)  evaluate alternative methods for ownership,
	construction, operation, maintenance, control, and financing of
	the water grid, including:
	(A)  ownership by a state agency;
	(B)  ownership by one or more special-purpose
	districts or authorities created under Section 59, Article XVI,
	Texas Constitution, for the purpose of providing wholesale water
	supply, improvement, management, or transportation, including
	river authorities and regional districts;
	(C)  ownership by a public utility;
	(D)  operation as a state-awarded concession;
	(E)  operation as a public-private partnership;
	(F)  development by private enterprises in a
	competitive market; and
	(G)  development similar to other integrated
	networks for the conveyance of natural resources;
	(10)  identify and evaluate methods to fund the
	establishment of a water grid, including the appropriation of funds
	or the issuance of bonds by the state or a state agency and state
	participation in ownership of the facilities, the issuance of bonds
	or participation by one or more entities described by Subdivision
	(9)(B) of this subsection, the issuance of private activity bonds,
	and the use of private investment capital;
	(11)  evaluate methods of incorporating existing water
	conveyance infrastructure into a water grid, including:
	(A)  purchasing all or a portion of the water
	conveyance infrastructure from the owners of that infrastructure;
	and
	(B)  requiring that public agency and public
	utility owners of water conveyance infrastructure make unutilized
	or underutilized capacity available in that infrastructure, on
	payment to the owner of reimbursable costs plus a reasonable return
	on investment;
	(12)  consult with the Texas Commission on
	Environmental Quality, the Public Utility Commission of Texas, the
	Railroad Commission of Texas, and the General Land Office; and
	(13)  offer the public an opportunity to submit written
	comments on the study for consideration by the board, with a comment
	period lasting at least 30 days following publication of a draft
	report.
	SECTION 4.  REPORT.  Not later than September 1, 2016, the
	board shall submit to the legislature a final written report
	containing the findings of the study conducted under this Act and
	the board's recommendations for any legislation or other action
	necessary to implement the program described by Section 3(a) of
	this Act.
	SECTION 5.  EXPIRATION.  This Act expires September 1, 2017.
	SECTION 6.  EFFECTIVE DATE.  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, 2015.