The House Committee on Natural Resources has published its report to the 82nd Legislature. Below is a summary of the recommendations.

Interim Charge 1—Evaluate groundwater regulations and permitting processes throughout the state, including the role of state agencies in groundwater management, the development of desired future conditions, and the adoption of groundwater management plans in relation to regional and state water planning.

Recommendations:

Desired Future Conditions Planning Process

1. Provide better guidance/ framework to GCDs and GMAs for the determination/ development of DFCs. Consider the ramifications of altering “geographic area” language in the definition of DFCs.

2. Encourage further regional stakeholder participation in the DFCs process at the GMA level, possibly considering the addition of non-voting, ex-officio RWPG members to the respective GMAs.

3. Adjust the timing of the DFCs submissions in accordance with the overall State Water Planning timeline so that the most current DFCs may be incorporated into the regional and statewide planning processes.

4. Consider the incorporation of more formal proceedings for the DFCs petitioning process such as conducting a contested case hearing through the State Office of Administrative Hearings and evaluate the court’s ability to award legal fees.

5. Clarify the statutory language related to “permitting up to the MAG” and the inclusion/ exclusion of exempt use in the MAG.

Other Groundwater Management Issues 

6. Continue to monitor and evaluate the various ongoing groundwater management issues related to groundwater ownership, regulations, and permitting processes throughout the state, including the role of state agencies, regional planning groups, and local districts.

Interim Charge 2—Monitor the effects of current and proposed federal initiatives that could impact the implementation of the State Water Plan. Evaluate the policies and investments developed by other states dealing with water issues similar to the State of Texas.

Recommendation:

1. Continue to monitor and evaluate the effects of current and proposed federal initiatives that could impact the implementation of the State Water Plan.

Interim Charge 3—Monitor ongoing drought conditions and initiatives to promote water conservation through the review of the following: state requirements for the submittal of water conservation plans and annual reporting; the “trigger” for use of drought contingency plans; recommendations by state agencies and the Water Conservation Advisory Council; and progress toward the development of recycled water resources and desalination projects.

Recommendations:

Water Conservation Plans/ Drought Contingency Plans

1. Consider directing the TWDB and the TCEQ to require the development and implementation of WCPs and DCPs, and create enforcement measures to ensure compliance. 

Water Conservation Advisory Council/ Gallons per Capita per Day

2. Monitor the progress and recommendations of the WCAC and support the standardization of the GPCD measurement.  

Desalination, Recycled Water Resources, and Aquifer Storage and Recovery

3. Continue to examine the advancement and commercial viability of water conservation technologies like desalination, recycling, and aquifer storage and recovery across the state. 

4. Study innovations and techniques that are being tested and deployed in other geological and hydrological conditions similar to Texas around the world.

Implementation/ Consistency of Statewide Conservation Program

5. Evaluate the effectiveness of existing conservation programs and enhance any statewide water conservation education programs developed through a local and regional planning process that considers the unique challenges facing different areas of the state.  

6. Consider providing incentives to the public for participating in conservation practices.

7. Continue to encourage localities to initiate projects that promote water conservation.

Interim Charge 4—Evaluate the regulatory model for investor-owned water and sewer utilities, including rate case process and timing, consultant fee recovery, overall cost reductions and more effective consumer participation.

Recommendations:

Historical Test Year

1. Continue to examine the interplay between historical test year and forward looking methodologies for setting public utility rates.

Rate Case Process and Timing

2. Provide certainty and clarity to customers and utilities by directing the regulatory agency to develop timelines for public utility rate case proceedings that are more concise and follow the rate proceedings for other regulated utilities.

Consolidated Rate System

3. Continue to explore options through the regulatory agency and/or legislature for better enabling consolidated rates between substantially similar systems at the regional level through the development and/or clarification of the regulatory agency’s application and guidance documents, as well as other rules and/or statutes.

Customer Participation

4. Enhance customer participation and representation during the rate case process by directing the regulatory agency and/or legislature to offer public meetings more convenient to local stakeholders and to develop standardized forms and notice requirements.

5. Consider streamlining rate cases that receive a majority of support from all parties through options like a partial settlement.

Overall Cost Reductions

6. Continue to explore overall cost reductions through the regulatory agency and/or legislature for the improvement of a public utility’s accounting, operations, maintenance, and depreciation methodologies, as well as allow public utilities the ability to construct low-income affordability rates among other infrastructure cost reductions.

A complete copy of the report can be found by visiting:

http://www.house.state.tx.us/_media/pdf/committees/reports/82interim/House-Committee-on-Natural-Resources-Interim-Report-2010.pdf