HBA-BSM C.S.H.B. 3044 77(R) BILL ANALYSIS Office of House Bill AnalysisC.S.H.B. 3044 By: Luna, Vilma Natural Resources 4/12/2001 Committee Report (Substituted) BACKGROUND AND PURPOSE Seawater desalination is rapidly becoming a more cost-effective strategy for meeting municipal and industrial water needs, both for demand centers along the coasts and inland areas. While no large-scale seawater desalination facilities currently exist in Texas, several regional water planning groups have included seawater desalination as a recommended water management strategy for meeting at least a portion of the long-term water needs in their planning regions. During the planning process, several regulatory and financing issues were identified as potential constraints on the development and implementation of seawater desalination facilities along the Texas coast. C.S.H.B. 3044 provides for changes in state law to address these legal and institutional constraints. RULEMAKING AUTHORITY It is the opinion of the Office of House Bill Analysis that this bill does not expressly delegate any additional rulemaking authority to a state officer, department, agency, or institution. ANALYSIS C.S.H.B. 3044 amends the Water Code to provide that a proposed transfer of water that originated in the waters of the bays or arms of the Gulf of Mexico is not subject to current requirements concerning interbasin transfers. The bill also authorizes the Texas Water Development Board to provide funding for desalination projects on the same participation basis as other water projects. EFFECTIVE DATE On passage, or if the Act does not receive the necessary vote, the Act takes effect September 1, 2001. COMPARISON OF ORIGINAL TO SUBSTITUTE C.S.H.B. 3044 differs from the original bill by providing that a proposed transfer of water that originated in the waters of the bays or arms of the Gulf of Mexico is not subject to current requirements concerning interbasin transfers rather than water made fresh by desalination for municipal or industrial purposes.