SB7 - Relating to the oversight and financing of certain water infrastructure matters under the jurisdiction of the Texas Water Development Board.

      S.B. No. 7         AN ACT   relating to the oversight and financing of certain water   infrastructure matters under the jurisdiction of the Texas Water   Development Board.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:   ARTICLE 1. WATER INFRASTRUCTURE DEVELOPMENT          SECTION 1.01.  Chapter 6, Water Code, is amended by adding   Subchapter H to read as follows:   SUBCHAPTER H. WATER SUPPLY CONVEYANCE COORDINATION           Sec.   6.301.     DEFINITION. In this subchapter, "project"   means a water supply development, treatment, or conveyance project   eligible to receive financial assistance from the board.           Sec.   6.302.     RESPONSIBILITIES OF BOARD. (a) Subject to   legislative appropriation, the board shall:                 (1)     for the development of infrastructure to transport   water that is made available by a project, facilitate joint   planning and coordination between project sponsors, governmental   entities, utilities, common carriers, and other entities, as   applicable, to reduce the necessity of exercising the power of   eminent domain to obtain interests in real property by using   existing transportation and utility easements;                 (2)     facilitate the development of guidance and best   practices for the standardization of the specifications,   materials, and components used to design and construct   infrastructure to transport water;                 (3)     facilitate the development of standards and   guidance to ensure potential interconnectivity and   interoperability between different systems developed to transport   water from different projects;                 (4)     facilitate the development of mechanical and   technical standards for the integration of water that is made   available by a project into a water supply system or into   infrastructure to transport water that is made available by a   project, as applicable; and                 (5)     take other action the board determines necessary   to facilitate interconnectivity and interoperability between   different infrastructure developed to transport water from   different projects.           (b)     When developing guidance and best practices under   Subsection (a)(2), the board shall, if practicable, recommend   building excess capacity into infrastructure to transport water to   facilitate the transportation of additional water supplies that are   developed after the initial construction of the infrastructure.           Sec.   6.303.     USE OF PROFESSIONAL AND CONSULTING SERVICES   AUTHORIZED. (a) The board may procure professional and consulting   services to achieve a purpose described by Section 6.302.           (b)     Chapter 2254, Government Code, applies to the   procurement of professional and consulting services by the board.           Sec.   6.304.     FORMATION OF AD HOC COMMITTEES AUTHORIZED. The   board may convene one or more ad hoc committees composed of   representatives of current or potential project sponsors, the Texas   Department of Transportation, river authorities, retail public   utilities, electric utilities, counties, municipalities, special   purpose districts, common carriers, and other entities considered   appropriate by the board to advise and assist the board in   fulfilling any purpose described by Section 6.302, including in   drafting any guidance or best practices described by that section.           Sec.   6.305.     PAYMENT OF EXPENSES FROM TEXAS WATER FUND   ADMINISTRATIVE FUND. Pursuant to Section 15.504(f), the board   shall pay from the Texas water fund administrative fund established   under Section 15.508:                 (1)     the necessary and reasonable administrative   expenses, including staffing expenses, incurred in administering   its responsibilities under this subchapter; and                 (2)     the necessary and reasonable expenses for the   procurement of professional and consulting services under Section   6.303.          SECTION 1.02.  Section 11.036, Water Code, is amended by   adding Subsection (e) to read as follows:           (e)     This section does not apply to a transfer of water or   water rights originating from outside this state under Section   15.703(a)(6) to any person having the right to acquire use of the   water.          SECTION 1.03.  Section 15.153, Water Code, is amended by   amending Subsection (b) and adding Subsection (e) to read as   follows:          (b)  The fund may be used to:                (1)  provide financial assistance to political   subdivisions to develop water supply projects that create new water   sources for the state, including:                      (A)  desalination projects, including marine and   brackish water desalination;                      (B)  produced water treatment projects, other   than projects that are only for purposes of oil and gas exploration;                      (C)  aquifer storage and recovery projects; [ and ]                      (D)   water and wastewater reuse projects;                       (E)     acquisition of water or water rights   originating from outside this state;                       (F)  reservoir projects for which:                             (i)     the required land has already been   acquired;                             (ii)     a permit for the discharge of dredged   or fill material has been issued by the United States Secretary of   the Army under Section 404, Federal Water Pollution Control Act (33   U.S.C. Section 1344); and                             (iii)     a permit for the storage, taking, or   diversion of state water has been issued by the commission under   Section 11.121; and                       (G)   the development of infrastructure to   transport water or integrate water into a water supply system,   other than groundwater produced from a well in this state  [ water ]   that is not part of  [ made available by ] a project described by this   subdivision;                (2)  make transfers from the fund:                      (A)  to the state water implementation fund for   Texas established under Subchapter G or the Texas Water Development   Fund II established under Subchapter L, Chapter 17; and                      (B)  for a purpose described by Subdivision (1);   [ and ]                (3)  make transfers from the fund to the water bank   account established under Section 15.707 ; and                 (4)  make transfers from the fund:                       (A)     to the Texas Water Development Fund II state   participation account established under Section 17.957; and                       (B)  for a purpose described by Subdivision (1) .           (e)     Money from the fund may be used to acquire another   person's right acquired or authorized in accordance with state law   to impound, divert, or use state water only by a water supply   contract or a lease of that right from its owner.          SECTION 1.04. Effective September 1, 2027, Section 15.153,   Water Code, is amended by adding Subsection (f) to read as follows:           (f)     For purposes of Section 7-e(c), Article VIII, Texas   Constitution, groundwater is considered brackish if, at the time of   production from a well, the groundwater had a total dissolved   solids concentration of not less than 3,000 milligrams per liter.          SECTION 1.05.  Sections 15.502(b) and (e), Water Code, are   amended to read as follows:          (b)  The board may use the fund only to transfer money to:                (1)  the water assistance fund established under   Subchapter B;                (2)  the new water supply for Texas fund established   under Subchapter C-1;                (3)  the state water implementation fund for Texas   established under Subchapter G;                (4)  the state water implementation revenue fund for   Texas established under Subchapter H;                 (4-a)   the Texas water fund administrative fund   established under Section 15.508;                   (4-b)     the flood infrastructure fund established under   Subchapter I;                (5)  a revolving fund established under Subchapter J;                (6)  the rural water assistance fund established under   Subchapter R;                (7)  the statewide water public awareness account   established under Section 16.027;                (8)  the Texas Water Development Fund II water   financial assistance account established under Section 17.959;   [ and ]                 (8-a)     the Texas Water Development Fund II economically   distressed areas program account established under Section 17.958;                (9)  the Texas Water Development Fund II state   participation account established under Section 17.957 ; and                 (10)     the agricultural water conservation fund   established under Section 50-d, Article III, Texas Constitution .          (e)  The fund consists of:                (1)  money transferred or deposited to the credit of   the fund by law, including :                       (A)   money appropriated by the legislature   directly to the fund ; and                       (B)   money from any source transferred or   deposited to the credit of the fund as authorized by law;                (2)  any other revenue that the legislature by statute   dedicates for deposit to the credit of the fund;                (3)  investment earnings and interest earned on amounts   credited to the fund; [Text truncated for display. 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