House Natural Resources met on March 30 to take up a number of bills. This report covers discussions concerning HB 837 (Lucio III), HB 1484 (Metcalf), HB 2268 (Paul), HB 2350 (Zwiener), and HB 3801 (Metcalf).

 

This report is intended to give you an overview and highlight of the discussions on the various topics taken up. It is not a verbatim transcript of the discussions but is based upon what was audible or understandable to the observer and the desire to get details out as quickly as possible with few errors or omissions.

 

Vote Outs

HB 2083 (Darby) (9 ayes, 0 nays)

HB 374 (Smith, Holland) (9 ayes, 0 nays)

HB 1544 (Guillen) (9 ayes, 0 nays)

HB 1874 (Larson) (9 ayes, 0 nays)

HB 1904 (Harris) (9 ayes, 0 nays)

HB 1905 (Harris) (9 ayes, 0 nays)

 

HB 2268 (Paul) – Relating to disconnection notices for water and sewer service

  • Paul – Requires notification of a shut-off 14 days prior

HB 2268 left pending

 

HB 1484 (Metcalf) – Relating to rates applied to certain water or sewer systems after a sale or purchase of the system

  • Metcalf – Permits an investor-owned utility to use previously filed PUC rates once it acquires another utility

 

Jeffery McIntyre, SouthWest Water – For

  • Bill is in the public interest and is a tool for public utilities
  • Avoids unnecessary legal costs for rate cases
  • King – These systems you take over, are you find they are not charging enough or not good at collecting fees?
    • Yes; creates situations where they do not have the money to invest in their systems

 

Thomas Hodge, SJWTX – For

  • Voices support for the bill

HB 1484 left pending

 

HB 3801 (Metcalf) – Relating to desired future conditions for groundwater that are declared unreasonable

  • Metcalf – Will clarify the most recently adopted DFC will be in the water development plan

 

Sara Kirkle, Texas Water Conservation Association – For

  • Members include cities and other water districts
  • Clarifies which DFC should be in a water development plan

 

Leah Martinson, Texas Alliance of Groundwater Districts – For

  • Bill is straightforward on management plans and is timely as the groundwater management areas are wrapping up this cycle

 

Gregory Ellis, GM Ellis Law Firm P.C. – For

  • Voices support for the bill on behalf of groundwater conservation districts

HB 3801 left pending

 

HB 837 (Lucio III) – Relating to the procedure for amending or revoking certificates of public convenience and necessity issued to certain retail public utilities

  • Lucio – PUC is responsible for approving CCNs; may revoke with a decertification process and must provide just and adequate compensation
  • Bill amends the water code to require the PUC to collect a report from the petitioner that verifies just compensation
  • Walle – Notes this situation happened in their community; bill would help receiving just and adequate compensation?
    • Would allow for better, good faith negotiations; is transparency
    • Would be accountability

 

Shan Rutherford, Self – For

  • Works for Terrill & Waldrop and represent large IOUs and rural water supply companies
  • Bill assists the PUC to meet their statutory obligation

HB 837 left pending

 

HB 2350 (Zwiener) (CS) – Relating to financial assistance provided to political subdivisions by the Texas Water Development Board for nature-based water quality enhancement projects

  • Zwiener – Encourages the proliferation of nature-based projects; these projects provide ancillary benefits such as aquifer recharge
  • Nature based infrastructure can process more storm water over time; is a onetime long-lasting cost
  • Local governments could use an incentive to invest in nature-based projects
  • This bill lowers the interest rates of loans within the fund and returns the remaining funds to the community; is a sponsored project and is similar to successful programs in Iowa and Ohio
  • Is a fiscal note, but an optimistic to work with TWDB to address; have been concerns about the lower interest rates and will bring a new CS to create a floor for these interest rates
  • Bowers – Supports bill, did see the fiscal note, but agrees they can work with TWDB on that
    • Would only be used for projects that are already funded through the revolving funds
  • Ramos – Voices support for the bill

 

Elizabeth Arceneaux, Environment Texas – For

  • Provides an anecdote that nature-based water quality enhancement projects currently have to be expensive in order to receive aid from TWDB through the Green Project Reserve
  • Voices support for the bill

 

David Batts, Houston Land/Water Sustainability Forum – For

  • Have been pushing for nature-based infrastructure for years; notes green infrastructure could help preventing how easily Houston, and other cities, floods
  • Are “softer” features rather than big pipes
  • Walle – The types of projects are not like all the concrete that was poured in some bayous in Houston? You can hold the water using this type of engineering?
    • Yes; notes that if a 50-acre HEB is built, it holds the water on the property rather than it running off all the concrete and creating a flash flood
  • Walle – Under normal storms, the water will absorb where?
    • May not completely prevent flooding, but will hold the water to prevent further flooding
  • Walle – So this bill will help with funding?
    • Houston and Dallas have good interest rates, but this bill is for the smaller communities; as areas develop, they can get a leg up on the problem
  • King – Had some compelling testimony on how covering up a lot of prairie contributed to flooding

 

Susan Mitchell, – For

  • Did not testify

 

Jeff Walker, TWDB – Resource

  • King – Can you talk to us about the fiscal note?
    • Because we do not get GR funds to pay off bonds is from interest loans
    • These are smaller projects, are usually not solely city, is a lot of coordination between them; base fiscal note on Iowa and Ohio
  • Walle – Is there a way to work on that fiscal note to get it in the right parameters?
    • Yes; are not against these projects, but the way it needs to be done is difficult on TWDB
    • King – You are set up to pay with interest, we can work on this

 

T. King lists a number of those who are registered for the bill, but not testifying:

  • Adrianne Shelly – Self, Judith McGeary – Farm and Ranch Freedom Alliance, Cyrus Reed – Lone Star Sierra Club, Bill Kelly – City of Houston, Brian Sledge – San Antonio River Authority, Daniel Womack -DOW Inc., Anna Farrell-Sherman – Clean Water Association, Jill Boullion – Bayou Land Conservancy, Gavin Massingil – Edwards Aquifer Authority, Kirby Brown – Ducks Unlimited, Scott Moorhead – Audubon Texas, and Vanessa McDougle – Self

 

Zwiener, in closing

  • Will work to reduce if not eliminate the fiscal note; will bring back a CS reflecting this

HB 2350 left pending