83R10730 JAM-D
 
  By: Burnam H.B. No. 3603
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to water conservation.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 10.011, Water Code, is amended to read as
  follows:
         Sec. 10.011.  REPORT. Not later than December 1 of each
  even-numbered year, the council shall submit to the governor,
  lieutenant governor, and speaker of the house of representatives a
  report on progress made in water conservation in this state. The
  report must include recommendations for necessary and desirable
  legislation.
         SECTION 2.  Section 16.0121, Water Code, is amended by
  amending Subsections (b), (c), and (f) and adding Subsection (g) to
  read as follows:
         (b)  A [Except as provided by Subsection (b-1), a] retail
  public utility providing potable water [that receives from the
  board financial assistance] shall perform, review, and file with
  the board an annual water audit computing the utility's system
  water loss during the preceding year.
         (c)  The board shall develop appropriate methodologies and
  submission dates for a water audit required under Subsection (b)
  [or (b-1)] for the following categories of retail public utilities:
               (1)  retail public utilities serving populations of
  100,000 or more;
               (2)  retail public utilities serving populations of
  50,000 or more but less than 100,000;
               (3)  retail public utilities serving populations of
  more than 10,000 but less than 50,000; and
               (4)  retail public utilities serving populations of
  10,000 or less.
         (f)  The board shall compile the information included in the
  water audits required by Subsection [Subsections] (b) [and (b-1)]
  according to category of retail public utility and according to
  regional water planning area.  The regional planning group for a
  regional planning area shall use the information to identify
  appropriate water management strategies in the development of a
  regional water plan under Section 16.053.
         (g)  The board may notify the commission if the board
  determines that an entity has violated this section.  
  Notwithstanding Section 7.051(b), a violation of this section is
  enforceable in the manner provided by Chapter 7 for a violation of a
  provision of this code within the commission's jurisdiction or of a
  rule adopted by the commission under a provision of this code within
  the commission's jurisdiction.
         SECTION 3.  Section 16.055(h), Water Code, is amended to
  read as follows:
         (h)  On receipt of the notice under Subsection (g)(2)(B), a
  [the] person or entity required to develop a drought contingency
  plan shall immediately implement the person's or entity's [water
  conservation plan or drought contingency] plan.
         SECTION 4.  Subchapter D, Chapter 17, Water Code, is amended
  by adding Section 17.1245 to read as follows:
         Sec. 17.1245.  EVALUATION AND MODIFICATION OF CERTAIN
  APPLICATIONS.  (a) In passing on an application for financial
  assistance from a retail public utility that provides potable water
  service to 3,300 or more connections, the board shall:
               (1)  evaluate the utility's system water loss based on
  the most recent audit prepared under Section 16.0121;
               (2)  evaluate for compliance with the best management
  practices the utility's water conservation plan required under
  Section 13.146; and
               (3)  issue a report to a utility detailing the results
  of the evaluation conducted under Subdivision (2).
         (b)  If an evaluation conducted under Subsection (a)(1)
  indicates that a utility's system water loss exceeds 15 percent
  annually, the board:
               (1)  shall require the utility to amend the utility's
  application for financial assistance to include a plan to reduce
  the utility's system water loss to less than 15 percent annually;
  and
               (2)  may require that a portion of financial assistance
  awarded under this chapter be used to mitigate the system water loss
  or award additional financial assistance for that purpose.
         (c)  The board, by a two-thirds vote, may exempt from the
  application of Subsection (b) a utility whose system water loss
  exceeds 15 percent.
         (d)  Not later than January 1 of each odd-numbered year, the
  board shall submit to the legislature a written summary of the
  results of evaluations conducted under Subsection (a)(2).
         SECTION 5.  Section 16.0121(b-1), Water Code, is repealed.
         SECTION 6.  Not later than May 1, 2015, a retail public
  utility providing potable water that does not receive financial
  assistance from the Texas Water Development Board shall file with
  the board the first annual water audit required by Section 16.0121,
  Water Code, as amended by this Act. The water audit must compute
  the utility's most recent annual system water loss.
         SECTION 7.  Section 17.1245, Water Code, as added by this
  Act, applies only to an application for financial assistance
  submitted on or after the effective date of this Act. An
  application for financial assistance submitted before the
  effective date of this Act is governed by the law in effect on the
  date the application was submitted, and the former law is continued
  in effect for that purpose.
         SECTION 8.  This Act takes effect September 1, 2013.