Interim Charges and 2013 Legislative Outlook, Brian Sledge

Interim Charges and
2013 Legislative Outlook
Texas Groundwater Summit
August 30, 2012
Presented by:
Brian L. Sledge 816 Congress Avenue
Suite 1900
bsledge@lglawfirm.com Austin, Texas 78701
(512) 322-5800
(512) 322-5839 (512) 472-0532 Fax
www.lglawfirm.com
©Lloyd Gosselink Rochelle & Townsend, P.C.

COVERED TOPICS
I. 82nd Session Statistics
II. Elections/Composition of Legislature
III. Big Ticket Items for 83rd
IV. Committees/ Interim Charges
V. Water-related Legislation for the 83rd
Legislature

82nd Legislature Statistics

Bill Type Filed Passed
House Bills 3865 797
Senate Bills 1931 582
House Joint Resolutions 154 3
Senate Joint Resolutions 53 8
House Concurrent Resolutions 173 101
Senate Concurrent Resolutions 60 41
Totals 6236 1532


Current Composition of Legislature
Senate House

19 Republicans 101 Republicans
12 Democrats 49 Democrats

2 Freshmen Members 35 Freshmen Members


2012 General Election: House Districts

Democrat Republican
23 70% Plus 34
13 60% - 70% 44
12 55% - 60% 16
48 Total 94
6 Swing (50-55%) 2


2012 General Election: Senate Districts
Democrat Republican

2 70% Plus 4
4 60% - 70% 15
4 55% - 60% 1**
10 Total 20
1 Swing (50 – 55%) 0
** Held by D

41 House Members Not Returning
• Member Reason Member Reason

• Jose Aliseda Not running Jim Jackson Not running
• Rodney Anderson Not running Jim Landtroop Defeated in Primary Runoff
• Marva Beck Defeated in Primary Ken Legler Deceased
• Leo Berman Defeated in Primary Lanham Lyne Not running
• Fred Brown Resigned Jerry Madden Not running
• Erwin Cain Not running Barbara Mallory Caraway Running for Congress
• Joaquin Castro Running for Congress Sid Miller Defeated in Primary Runoff
• Warren Chisum Running for RCT Barbara Nash Defeated in Primary
• Wayne Christian Defeated in Primary Ken Paxton Running for Texas Senate
• Joe Driver Not running Aaron Pena Not running
• Rob Eissler Defeated in Primary Chente Quintanilla Not running
• Pete Gallego Running for Congress Charles Schwertner Running for Texas Senate
• Veronica Gonzales Not running Mark Shelton Running for Texas Senate
• Mike Hamilton Defeated in Primary Todd Smith Running for Texas Senate
• Kelly Hancock Running for Texas Senate Burt Solomons Not running
• Rick Hardcastle Not running Larry Taylor Running for Texas Senate
• Will Hartnett Not running Raul Torres Running for Texas Senate
• Scott Hochberg Not running Vicki Truitt Defeated in Primary
• Chuck Hopson Defeated in Primary Runoff Marc Veasey Running for Congress
• Charlie Howard Not running Randy Weber Running for Congress
Beverly Woolley Not running


11 House Chairmanship Losses

Hardcastle – Ag and Livestock S. Miller – Homeland Security &
Public Safety
V. Gonzales - Border &
Intergovernmental Affairs Jackson – Judiciary & Civil
Jurisprudence
Madden - Corrections
Hamilton – Licensing & Admin.
Gallego - Criminal Jurisprudence
Procedures
L. Taylor - Elections
Eissler – Public Education
Hopson – General Investigating
Pena - Technology

Will Half the House be Frosh and Sophs?
• 37 new House members in 2011
• At least 41 new House members in 2013
• 37 + 41 = 78
• 78 + x (where x = 5 seats in play in Nov.)= y (where y =
# of fresh. and sophomores in 2013)
• Aggie math? Yes, because 9 of the 37 are not returning,
and 3 of the 5 seats in play are also part of the 37.
• Also, 2 new senators in 2011; 5 or 6 new senators in
2013


83rd Legislature Big Ticket Items
• Budget

• Health Care/Medicaid

• Public Education/
School Funding

• Water Funding


House Environmental Regulation Committee
Chairman: Wayne Smith - Baytown
Vice Chair: Jessica Farrar - Houston
Membership: Jose Aliseda - Beeville
Lon Burnam - Forth Worth
Warren Chisum - Pampa
Kelly Hancock - Forth Worth
Ken Legler - Pasadena
Lanham Lyne - Wichita Falls
Ron Reynolds – Missouri City


HEReg 2011 Interim Charges
• Examine the impact on dam safety of provisions
passed in HB 2694 (82R) and develop
recommendations, if any, regarding risk to
downstream property and life.


House Energy Resources Committee
Chairman: Jim Keffer - Eastland
Vice Chair: Myra Crownover - Lake Dallas
Membership: Stefani Carter - Dallas
Tom Craddick - Midland
John Davis - Houston
Charlie Howard - Sugar Land
J.M. Lozano - Harlingen
Ralph Sheffield - Temple
Mark Strama - Austin


HERC 2011 Interim Charges
• Examine state regulations governing oil and gas well construction
and integrity and pipeline safety and construction and determine
what changes should be made, if any, to ensure that the regulations
are adequate to protect the people of Texas and its natural
resources.

• Study and make recommendations on the current process for the
submission of well logs to the state by oil and gas operators.
Specifically, identify changes that could be made in statute or
agency administrative rules that would result in increased production
through a more efficient system of collecting well logs.


House Natural Resources Committee
Chairman: Allan Ritter - Nederland
Vice Chair: Tracy O. King - Eagle Pass
Membership: Marva Beck - Centerville
Brandon Creighton - Conroe
Chuck Hopson - Jacksonville
Jim Keffer - Granbury
Lyle Larson - San Antonio
Eddie Lucio III - San Benito
Trey Martinez Fischer - San Antonio
Doug Miller - New Braunfels
Walter "Four" Price - Amarillo


HNRC 2011 Interim Charges
• Monitor the drought and the performance of state, regional, and local entities in
addressing it. Examine impact of the drought on the SWP, including an evaluation of
how well existing water resources can meet demand, need for additional funding
sources to implement SWP, and effectiveness of current drought planning and
management policies.
• Examine interplay of water and energy resources and needs in TX. Study impacts of
water use in energy production and exploration. Determine current and future water
needs of power generation and energy production, and evaluate options to develop
new or alternative supplies. Include an evaluation of current issues involving water
use for oil and gas production and related water quality issues.
• Evaluate the status of desalination projects in Texas. Include an evaluation of the
regulation of brackish groundwater and whether opportunities exist to facilitate better
utilization of this groundwater to meet future needs.
• Study ways to enhance incentives for water conservation in agricultural irrigation.


Senate Natural Resources Committee
Chairman: Troy Fraser – Horseshoe Bay
Vice Chair: Craig Estes – Wichita Falls
Membership: Bob Deuell - Greenville
Robert Duncan - Lubbock
Kevin Eltife - Tyler
Glenn Hegar, Jr. - Katy
Juan “Chuy” Hinojosa - Mission
Mike Jackson – La Porte
Robert Nichols – Jacksonville
Kel Seliger - Amarillo
Carlos Uresti – San Antonio

SNRC 2011 Interim Charges

• Review water resources and conservation measures
included in the State Water Plan to ensure that the
appropriate entities are implementing the plans and that
state and local authorities are enforcing requirements of
the plans. In addition, the committee should evaluate
methods to effectively enhance existing water resources
and promote water conservation measures across the
state at all times, not just in case of severe drought
conditions.

• Study impediments to implementation of SWP;
make recommendations to ensure sufficient
water for future generations. Specifically,
consider the following:
• Review opportunities to fully fund the SWP by
encouraging local project selection and
financing;


• Review TWDB loan application process and
prioritize the projects to ensure that the new
bonding authority is targeted to the most
pressing problems and those projects of highest
value identified in the State Water Plan;
• Consider the impact and complexity of the
water/energy/electricity connection;
• Review the progress made toward the
designation of unique reservoir sites;

• Review current and proposed federal initiatives
related to water resources;
• Review conservation measures across all
sectors of the economy, including education
about the benefits of conserved water and the
enforcement of those measures;
• Review all state and federal statutory barriers,
including the ability to move water around the
state and pipeline prohibitions;

• Consider groundwater regulation and determine
whether there is a need for modification of our
current regulatory structure; and
• Evaluate the progress of the state's goal of
promoting desalination projects across the state
(brackish and seawater), including their future
expansion to assist in meeting the state's water
needs.


• Evaluate alternatives to using SW or GW in generation
of electricity and extraction of fuels, including hydraulic
fracturing, dry-cooling, and the potential for desal and
other technologies for the reuse of brackish water.
Examine cost of alternatives in comparison to the
continued use of GW and SW including energy costs as
well as the cost of water transport and treatment.
Examine risks of continued future drought to the integrity
of Texas' electricity generation and fossil fuel extraction.


• Study and make recommendations on the
management of groundwater resources.
Specifically, consider the following:
• Consolidation of GCDs along major aquifer lines
in an effort to increase efficiency and enhance
responsible groundwater management;
• Effectiveness of single county and non-
contiguous groundwater conservation districts;


• Efficiency and effectiveness of varying
groundwater regulations and permitting
processes throughout the state, including the
adequate planning for withdrawals and the
development of DFCs, as compared to the
regulation provided to surface water resources;
• The relationship of local groundwater regulations
to the SWP and the regional planning process.


• Review and study the bundling of small water
and sewer systems by a single IOU and
consider the causes and regulatory issues
associated with rapidly escalating water and
sewer rates for Texans who live in
unincorporated and rural areas of the state.
Specifically, consider the following: (too many to
list, but transfer to PUC)


• Evaluate and monitor the production and the
development of science and best management
practices in the Barnett Shale and Eagle Ford
shale plays. Specifically, consider the following
(too many to list, but):

• The potential of new technologies to reduce
emissions and decrease water use.


2013 Legislative Issues
• TWDB’s Recommendations:
– Develop long-term, sustainable method to fund SWP
– Provide mechanism to acquire reservoir sites
– Eliminate unreasonable restrictions on voluntary IBTs
– Remove TWDB from the DFC appeals process, except for
technical review and comment
– Require all retail public utilities to conduct water loss audits
annually, rather than every 5 years
– Designate additional unique sites for reservoir construction or
ecological value
– Funding for TWDB staff for science and finance programs


• Funding for the State Water Plan / Infrastructure

– Why should GCDs care?

– What are we talking about? Didn’t Prop 2 fix this?
• Deferrals
• Rate Buy-Down
• State Participation

– What are the options?


• Water and wastewater utilities rates and services
responsibilities transferred from TCEQ to PUC

• Related IOU reforms / CCN tweaks

• Streamlining of surface water rights permitting
requirements

• Funding EARIP


• Protection of brackish groundwater resources

• SAO review of GCDs

• Interstate efforts

• Emergency water plan

• Aquifer Storage and Recovery (ASR)


• Reuse of fraccing water

• Conservation (WCAC)

• Standardization of drought restrictions


QUESTIONS

Thank You For Coming
Brian L. Sledge
bsledge@lglawfirm.com
(512) 322-5839

Interim Charges and 2013 Legislative Outlook, Brian Sledge

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Interim Charges and 2013 Legislative Outlook, Brian Sledge