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.