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A BILL TO BE ENTITLED
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AN ACT
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relating to financial assistance provided and programs |
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administered by the Texas Water Development Board. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Chapter 15, Water Code, is amended by adding |
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Subchapter G-1 to read as follows: |
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SUBCHAPTER G-1. NEW WATER SUPPLY FOR TEXAS FUND |
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Sec. 15.451. DEFINITION. In this subchapter, "fund" means |
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the new water supply for Texas fund. |
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Sec. 15.452. FUND. The new water supply for Texas fund is a |
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special fund in the state treasury. The fund consists of: |
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(1) money appropriated to the board for a purpose of |
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the fund; |
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(2) money the board transfers to the fund from an |
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available source; |
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(3) depository interest allocable to the fund and |
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other investment returns on money in the fund; |
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(4) money from gifts, grants, or donations to the |
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fund; and |
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(5) any other fees or sources of revenue that the |
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legislature may dedicate for deposit to the fund. |
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Sec. 15.453. USE OF FUND. (a) The board by rule shall |
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undertake to finance projects through the fund that will lead to the |
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acquisition or creation of seven million acre-feet of new water |
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supplies by December 31, 2033. |
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(b) The fund may be used only to provide low-interest loans |
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to political subdivisions and wholesale water providers to develop |
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water supply projects that create new water sources for the state |
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including: |
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(1) the acquisition of water from other states; |
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(2) the development of infrastructure to transport |
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water from other states; |
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(3) desalination projects, including marine and |
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brackish water desalination; |
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(4) produced water treatment projects; and |
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(5) research into new technology that may lead to the |
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development of significant new water supply sources, as determined |
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by the board based on the amount of water the technology may |
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produce. |
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(c) The fund may be used to provide zero interest loans, |
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negative interest loans, or loan forgiveness for any purpose |
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described by Subsection (b) under criteria developed by the board. |
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Loans made under this subchapter may provide for repayment terms of |
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up to 40 years, in the board's discretion. |
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(d) Financial assistance described by Subsection (c) for a |
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purpose described by Subsection (b) may be provided for a public |
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works project that includes the participation of or a financial |
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contribution from a nongovernmental entity, including a wholesale |
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water provider, only if a political subdivision is a participant in |
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the project. |
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(e) The board may not provide financial assistance from the |
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fund if the balance of the fund is less than $50 million. |
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Sec. 15.454. FINANCIAL ASSISTANCE. (a) The board shall |
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adopt rules necessary to administer this subchapter, including |
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rules establishing procedures for the application for and award of |
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loans, the distribution of loans, the investment of funds, and the |
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administration of loans and the fund. |
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(b) In passing on an application from a political |
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subdivision or wholesale water provider for financial assistance, |
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the board shall consider: |
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(1) the needs of the area to be served by the project, |
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the expected benefit of the project to the area, the relationship of |
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the project to the water needs of this state overall, and the |
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relationship of the project to the state water plan; |
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(2) the amount of water expected to be produced by the |
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project; and |
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(3) the availability of revenue to the political |
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subdivision or wholesale water provider from all sources for the |
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ultimate repayment of the cost of the project, including all |
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interest. |
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(c) The board by resolution may approve an application if, |
Statutes affected:
Introduced: Water Code 15.994, Water Code 16.0121, Water Code 16.4021 (Water Code 15, Water Code 16)