1. Legislative Update
Stacey A. Steinbach
Texas Alliance of Groundwater Districts
TAGD Quarterly Meeting
May 29, 2013

2. A Marathon, Not a Sprint

3. Major Groundwater Issues
Relevant Bills that Survived
What Next?

4. Major Groundwater Issues
• Long-term permitting
• Desalination and aquifer storage and recovery
• Oil and gas groundwater exemptions
• Other recurring issues

5. Long-Term Permitting
• Issue raised by three regional water providers
wanting permitting certainty and improved ability
to secure long-term funding
• Bills filed for past three sessions
• Rep. Isaac, Rep. Martinez-Fischer, and Sen. Uresti

6. Long-Term Permitting
• Three major components:
– Automatic renewals if no conditions change (GCD
sets permit term length)
– GCDs can open up permits at any time but only when
certain conditions change; GCD has burden of proof
– GCDs cannot implement cutbacks arbitrarily

7. Long-Term Permitting
• Unanswered questions:
– Is list of “changed conditions” sufficient?
• Conditions look to future only
• Private property interests
– Implementing cutbacks based on well classification
system
– Operating v. transfer permits

8. Desalination Legislation
• Session theme: Definition of brackish
groundwater as water with a TDS level of >
1,000 mg/L TDS
• Original bills would have either:
– Eliminated GCD jurisdiction over brackish
groundwater
– Prohibited management unless TWDB model rules
adopted

9. Desalination Legislation
• All or most of the groundwater in
some GCDs would be considered
brackish
• Groundwater salinity falls on a
continuum
• Implies brackish groundwater not
worthy of same protections
• Most MAGs do not distinguish based
on TDS level
• How is the TDS level determined?
• Who determines the TDS level?
• What if the level changes during
production?
• “Desirability” of water is not based
solely on TDS
Brackish Groundwater as a TDS Level

10. CSHB 2578
• “Brackish Groundwater Production Zones”
– Identified by TWDB with input from GCDs/stakeholders
– Must be “sufficiently separated” from groundwater currently
used for water supply
• 30-year permit terms
• Unlimited production unless evidence of impacts; must
get report from TWDB before implementing cutbacks

11. Aquifer Storage and Recovery
• Considered separately from desalination legislation
• Concerns about protection of groundwater quality
• GCDs could be required to "protect” ASR
operator, possibly at groundwater users’ expense
• Requirement to adopt one-size-fits-all TWDB model
rules

12. Oil & Gas Groundwater Exemptions
• 36.117(b)(2): solely to supply water for a rig that is actively engaged in
drilling or exploration operations for an oil or gas well..
• Language negotiated among stakeholders in 2001; intended to
encourage “wildcatting” in areas where drilling/exploration took more
risk
• Negotiation included language that GCD cannot deny permit for
groundwater withdrawals related to hydrocarbon production

13. Oil & Gas Groundwater Exemptions
• Oil and gas position:
– hydraulic fracturing is exploration
– No time to get permit; money lost every day
• TAGD position:
– hydraulic fracturing is production
– Exemption did not contemplate hydraulic fracturing
– users of significant amounts of groundwater should not receive
special treatment based on use

14. SB 873 Evolution
• Originally authorized GCD to require a permit for hydraulic
fracturing
• In response to O&G concerns, idea of “interim permit”
surfaced
• Bill that reached the House included interim permit
concept so drilling could begin immediately; permit would
then be processed in accordance with (uniformly applied)
GCD rules

15. Other Recurring Issues
• SBs 272 (reporting) and 302 (DFCs in
management plan)
• DFC appeal process
• Attorney’s fees provisions
• Standard of review of GCD actions

16. Major Groundwater Issues
Relevant Bills that Survived
What Next?

17. Groundwater-Related Bills
• HB 1563: fees of office for GCD Board
• SB 1282: DFC proposal deadline extended
• SB 1093:
– Fixes a typographical error in section 36.205(e)
– Resolves 36.121 issue from 82nd Legislature
• HB 1026: codifies GCD enabling legislation in Special
District Local Laws Code

18. Local Groundwater Bills
New/Revived GCDs:
– Calhoun County GCD
– Reeves County GCD
– Deep East Texas GCD
(Shelby, San
Augustine, and Sabine)
Local GCD Bills:
– Duval County GCD
– Hays Trinity GCD
– Central Texas GCD
– McMullen GCD

19. State Water Plan Funding
• HB 4:
– creates SWIF and SWIRF
– Changes TWDB structure
– Requires 20% to conservation and reuse and 10% to rural areas or
agricultural water conservation
– Requires prioritization of projects
• HB 1025: appropriates $2 billion from Rainy Day Fund
for SWIF and SWIRF
• SJR 1: constitutional amendment to approve ↑

20. Water Conservation
• SB 1: Appropriations
– $1 million in FY 2014 for water conservation grants
– $1.8 million/year in FYs 2014 and 2015 to TAWC for
Ogallala demonstration project
– $1.5 million/year in FYs 2014 and 2015 to GCDs for
agricultural water conservation (GCD must require
meters; funds offset 50% of meter costs)

21. Water Conservation
• HB 857: annual water loss audit for > 3,300 connections
• HB 1461: notification of water loss to customers
• HB 2615: penalties for failure to comply with water use
reporting requirements
• HB 2781: rainwater harvesting systems
• HB 3604: water conservation and drought contingency
plan implementation

22. Water Conservation
• HB 3605: TWDB funds/mitigation of water loss and water
conservation plan compliance
• SB 198: HOAs can’t prohibit xeriscaping
• SB 385: municipal/county financing programs to decrease
water/energy consumption on private property
• SB 654: municipal enforcement of water conservation
measures

23. Open Meetings
• HB 2414: General videoconference meetings
• SB 293: “Water districts” covering 3 or more counties
may hold a meeting via telephone or video conference
if:
– Special called meeting,
– Immediate action required, and
– Quorum difficult to obtain
• SB 471: No more betamax

24. Open Meetings
• SB 984: Videoconference meetings when entity
is statewide or covers three or more counties
• SB 1297: Allows public officials to communicate
between meetings on governmental body
message boards visible to public

25. Public Information
• SB 983: In camera review information at issue
in a public information lawsuit
• SB 1368: Public information as related to
contracts between non-government entities
and government entities

26. Other Bills of Interest
• SB 281: Authorizes Red River Authority to
develop groundwater
• HB 3509: Endangered species habitat
conservation
• Elections Code: SB 910 and HB 3103

27. Major Groundwater Issues
Relevant Bills that Survived
What Next?

28. What Next?
• Education Education Education
• Work on consensus language for permitting
certainty, desalination, and oil and gas
permitting
• Water quality monitoring

29. Questions?