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State Legislative Update Texas Water 2011 April 6, 2011 Carol Batterton, Water Environment Association of Texas 82 nd Session Texas Legislature Key Dates November 8, 2010: Pre filing of bills began January 11, 2011: Legislature convened March 11, 2011: Statewide bill filing deadline May 30, 2011: Last day of session June 19, 2011: Governor s veto deadline Heather Cooke, Austin Water Utility Legislative Statistics 80 th Session (2007) 6,190 bills filed 1,480 bills passed (24%) 81 st Session (2009) 7,419 bills filed 1,459 bills passed (19.6%) 82 nd Session (2011) 7, 867 bills filed to date Challenges and Issues for the 82 nd Session Budget, budget, budget Redistricting State sovereignty Voter ID, Arizona style immigration, sonogram bill State Sovereignty HB 3188 by Larson statute prohibiting the implementation of any federal greenhouse gas emissions regulatory program HCR 61 by Callegari, Creighton, Ritter, Doug Miller, Tracy King Resolution opposing federal interference in state management of Texas' water resources HCR 78 by Price, Creighton, Ritter, Tracy King, Lavender Resolution opposing any federal government attempts to diminish the jurisdiction of individual states over their intrastate water resources HCR 81 by Isaac Resolution opposing federal regulation of hazardous waste, water, and clean air and the production, exploration, drilling, development, operation, transportation, and processing of oil, natural gas, and petroleum in Texas TCEQ s Operating Budget Appropriations Bills (HB 1 by Pitts and SB 1 by Ogden) Reflects a 33.7% decrease in overall funding for TCEQ Reduction of 14.4 FTE s in water assessment and planning Reduction of 61.8 FTE s in Field Operations and complaints Reduction of 18.6 FTE s in Enforcement and Compliance Support Reduction of 1.3 FTE s each in water resource permitting and Safe Drinking Water Source: Legislative Budget Board filed bills Texas Water 2011 Texas Legislative Update, 4/6/2011 Page 1

State Agency Fiscal Flexibility SB 1584 /HB 3418 authorizes TCEQ and TWDB to reduce expenditures by Consolidating reports Extending the effective period of any license or permit Privatizing or out sourcing services Adopting and collecting fees or charges to cover any costs State Water Plan Funding HB 3273 and HJR 138 by Ritter Creates the State Water Implementation Fund for Texas (SWIFT) to assist the Texas Water Development Board in the funding of certain projects included in the state water plan HJR 137 by Ritter Proposes constitutional amendments relating to the funding of certain water projects Similar bills for other state agencies Funding Options for Water Plan Tap fee on retail public utilities connections Water conservation and development fee Water rights fee (two options) Combined water rights and water conservation and development fee Impose state sales tax on retail sales of utility water and sewer Sales tax on bottled water Water hog fee Energy water use fee Groundwater SB 332/HB 1730 relating to the vested ownership interest in groundwater beneath the surface and the right to produce that groundwater (Rule of Capture) SB 667/HB1731 reasserts the policy of regulating groundwater through groundwater districts SB 1306 appeal of desired future conditions HCR 92 resolution urging Congress to allow interstate groundwater compacts Many more bills on groundwater Surface and Groundwater Transfers HB 2358 repeals Section 11.085(s), Water Code which provides that Any proposed transfer of all or a portion of a water right under this section is junior in priority to water rights granted before the time application for transfer is accepted for filing SB 756 prohibits the transport of surface water or groundwater more than 75 miles from the water's source Land Use SB 18 major overhaul of eminent domain Relocation costs Buy back if land not used within 10 years SB 549/HB 1558 expansion or new construction of wastewater plants in environmental justice areas; public participation, benefit agreements Water and Wastewater CCN bills HB 490, HB 2888, HB 2962, HB 3668, SB 572, SB 573, SB 1097 Texas Water 2011 Texas Legislative Update, 4/6/2011 Page 2

Infrastructure HB 628 alternative service delivery contracts SB 1048/HB 2432 creates Partnership Advisory Commission to oversee public/private partnerships; increases flexibility and permissiveness; includes water and wastewater facilities SB 1654/HB 2729 relates to local government contracts with private entities for design, development, financing, maintenance, operation, and construction of a facility or infrastructure project Impact Fees and Others HB 3187 requires political subdivisions imposing impact fees to update land use assumptions and CIP plans every 3 years instead of every 5 years HB 3555 exempts higher education facilities from paying impact fees HB 3606 exempts political subdivisions and other governmental entities that levy or collect property taxes from paying impact fees HB 2995 A retail public utility may not charge for wastewater service provided to an urban farm Water Consumption and Loss SB 181/HB 1319 similar bills require TCEQ and TWDB to develop uniform, sector based, water consumption metrics for municipalities and water utilities HB 3530/SB 660 (TWDB Sunset bills) Section 5 includes broad language on consumption metrics HB 3090 requires retail public utilities over 3,300 connections to conduct water loss audits every year instead of every five years HB 1664 allows unmetered water use for outdoor irrigation from lakes not used for drinking water Potable Use of Rainwater HB 3372 by Tracy King and SB 1073 by Mike Jackson HB 3391 by Doug Miller includes other rainwater provisions including training requirements All three bills allow for indoor potable use of rainwater for properties connected to public drinking water supplies Other Conservation Bills SB 409/SB 449/SJR 16 property tax credits for open space preservation for water stewardship Water efficiency in buildings HB 775, HB 1728, SB 457, SB 459/HB 659 HB 2507 creates a Class C misdemeanor if an irrigation system is installed by a non licensed irrigator Energy Efficiency SB 552 creates the Energy Efficiency Council requires development of a state energy efficiency plan every 6 years Council shall set statewide savings targets for electricity, natural gas, and electric consumption that results from the diversion, transportation, delivery, treatment, or purification of water, wastewater, and storm water to reduce peak and overall demand Texas Water 2011 Texas Legislative Update, 4/6/2011 Page 3

Disaster Recovery HB 805/HB 2619 backup power, limited to drinking water plants in or adjacent to Harris County with a population of 350,000 (change from 400,000) HB 2257 use of reverse 911 by utilities and others HB 3705 creates Disaster Reconstruction Office to include TCEQ and TWDB Radioactive Waste Disposal from Drinking Water Treatment HB 931 gives the Railroad Commission the sole authority to regulate and issue licenses, permits, and orders for the disposal in a bedded salt formation of naturally occurring radioactive waste resulting from the treatment of drinking water On Site Sewage Systems HB 1141 and SB 1412 allow the permitting of cluster commercial systems as on site sewage systems Property must be jointly owned Maximum 5,000 gallons per day Service area not to exceed 15 acres HB 240 requires TCEQ to adopt rules preventing accidental or unauthorized access to on site sewage disposal systems Liquid Waste Transport Manifests SB 617 creates a uniform, statewide manifest system for certain liquid wastes Applies to generation, collection, conveyance, transport, processing, storage, or disposal of municipal sewage sludge, grit trap waste, or grease trap waste SB 448 on site sewage permit fees charged by Authorized Agents may not exceed TCEQ fees Grit Trap Waste HB 2551 Land application of grit trap waste may only be considered recycling if: Waste includes no hazardous substance All components will have a beneficial effect on the soil No components will have a negative effect Application rates will not exceed agronomic application rates for chemical components. Edwards Aquifer Discharge Permits SB 853 limits issuance of a new or amended permits in the recharge zone included in the Barton Springs Edwards Aquifer Conservation District HB 3602 requires that new water treatment facilities in the Edwards must remove at least 85% of total suspended solids from stormwater Texas Water 2011 Texas Legislative Update, 4/6/2011 Page 4

Endangered Species HB 2760/SB 1595 legislative intent on environmental flows and endangered species in the Edwards Aquifer, Guadalupe River Basin, San Antonio River Basin and the San Antonio Bay and Estuary System Authorizes Edwards Aquifer Authority, Guadalupe Blanco River Authority, and San Antonio River Authority to impose a sales and use tax to fund a species protection program Illegal Dumping HB 451 creates the Don't Mess with Texas Water Program to prevent illegal dumping that affects surface waters Signage on major highway water crossings to report illegal dumping near surface waters Requires TCEQ to establish a toll free hotline that sends calls to the appropriate law enforcement agency Local government participation is optional Continuing Education WEAT/TAWWA Legislation HB 965 allows TCEQ to recognize, prepare, or administer continuing education programs for license holders, including continuing education programs made available through the Internet Allows A and B water and wastewater operators to certify at the time the license is renewed that the license holder has complied with TCEQ s continuing education requirements Other Bills HB 89 establishes a drug donation program for certain drugs that are to be redistributed HB 3480 TCEQ may not impose a standard or requirement to regulate an activity under TCEQ s jurisdiction that is more stringent than applicable federal law or regulation Multiple bills related to water and wastewater rates, water districts, injection wells, regulation of engineers and plumbers TCEQ and TWDB Sunset bills More Information State of Texas and WEAT websites: www.capitol.state.tx.us Contact Information Carol Batterton, Executive Director, WEAT 512 924 2102 carol@weat.org www.weat.org http://www.weat.org/governmentalaffairs.htm Heather Cooke, Legislative Coordinator, Austin Water 512 972 0083 heather.cooke@ci.austin.tx.us Texas Water 2011 Texas Legislative Update, 4/6/2011 Page 5