HBA-LJP C.S.H.B. 3096 77(R) BILL ANALYSIS Office of House Bill AnalysisC.S.H.B. 3096 By: Counts Natural Resources 4/2/2001 Committee Report (Substituted) BACKGROUND AND PURPOSE The first proposal to acquire and construct the Post Reservoir, which would be located on the North Fork of the Double Mountain Fork of the Brazos Rivers in Garza County, was submitted to the White River Municipal Water District in 1968 for an estimated cost of $2.2 million. The Post Reservoir site project has been proposed again for an estimated cost of $28,200,00 to provide surface water supply to a local area which may not be able to finance the project. C.S.H.B. 3096 provides for the construction of the Post Reservoir site and the financing of the project from the state participation account under the state participation program of the Texas Water Development Board. 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. 3096 amends law to provide that the legislature finds that the construction and development of a site known as the Post Reservoir site on the Double Mountain Fork of the Brazos River to impound water derived from the unappropriated flows of the Brazos River is in the public interest and would constitute a beneficial use of water. The bill provides that the legislature finds that the conditions warrant a Texas Water Development Board (board) waiver of the requirement that the Post Reservoir project meet needs in a manner consistent with the state and regional water plans. The bill requires that the project receive priority for existing and uncommitted bond authorizations in the state participation account. The bill provides that when using the state participation account of the Texas Water Development Fund II, the board is authorized to acquire up to 100 percent of the undivided interest in the Post Reservoir project in partnership with local or regional interest to encourage the optimal regional development of the Post Reservoir project. The bill requires that the purchase of the board's interest in the reservoir by such local or regional entities begin not later than 20 years after the board's execution of the contract with local entities for the participation in the project of the board. The bill provides that the legislature finds that the cost of the acquisition of the site exceeds the current financing capabilities of the applicable area, the project cannot be reasonably financed by local interests without state participation, and that it is reasonable to expect that the state will recover its investment in the project. The bill includes the owning or operating in the authorization of the White River Municipal Water District (district) to conduct certain projects within or without the boundaries of the district and removes the provision that the district is not to conduct projects outside any county in which the district is located. The bill removes the prohibition on the White River Municipal Water District from developing or otherwise acquiring underground sources of water. 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. 3096 amends the original to raise, from up to 50 percent to up to 100 percent of the undivided interest in the Post Reservoir project in partnership with local or regional interest that the Texas Water Development Board is authorized to acquire to encourage optimal regional development of the Post Reservoir project when using the state participation account of the Texas Water Development Fund II. The substitute removes the prohibition on the White River Municipal Water District from having authorization to develop or otherwise acquire underground sources of water.