Facts About

YOUR WATER SUPPLYDiscovering Who Provides and Makes Decisions About Your Water in Te x a s

ACKNOWLEDGEMENTS

Your Water Supply: Discovering Who Provides and Makes Decisions about Your Water in Texas is a publication of the Lone StarChapter of the Sierra Club. This publication was produced as part of the Texas Living Waters Project, a collaborative effort of theNational Wildlife Federation, Environmental Defense, and the Lone Star Chapter. The goals of the project are to (1) ensureadequate water for people and environmental needs, (2) reduce future demand for water and foster efficient and sustainable use ofcurrent water supplies, (3) educate the public and decision makers about the wasteful water use and opportunities for waterconservation, and (4) involve citizens in the decision making process for water management. More information about the projectand about water issues is available at www.texaswatermatters.org and www.texas.sierraclub.org or by writing Lone Star Chapter,Sierra Club, P. O. Box 1931, Austin, TX 78767.

The Texas Living Waters Project has received generous support from The Houston Endowment, Inc.; The Meadows Foundation;The Brown Foundation, Inc; The Jacob and Terese Hershey Foundation; and Magnolia Charitable Trust.

The Lone Star Chapter of the Sierra Club would like to express its appreciation to the following people for their contributions tothe production of this publication: Scott Byers and Jackie McFadden (layout and design); Ken Kramer (editing); Justin Murrill andJennifer Walker (research and writing); Andrea Goebel (Spanish translation); and all of the representatives from the state agencies,regional entities, water districts, and nonprofit water supply corporations who provided background information for thispublication.

—September 2003

Copyright © 2003by the Lone Star Chapter Sierra Club

Printed in USA

Printed on recycled paper.

YOUR WATER SUPPLYDiscovering Who Provides and Makes Decisions About Your Water in Te x a s

Facts About

ContentsIntroduction

Section One: State Entities and the Texas Legislature . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1Texas Commission on Environmental Quality. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2Texas Parks and Wildlife Department . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4Texas State Soil & Water Conservation Board . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5Texas Water Development Board . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6Texas Legislature . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7

Section Two: Regional Entities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8Groundwater Conservation Districts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9River Authorities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11Edwards Aquifer Authority. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13Harris-Galveston Coastal Subsidence District . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14Regional Water Planning Groups. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15

Section Three: Local Entities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17Municipal Water Suppliers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18Municipal Utility Districts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19Water Supply Corporations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20Private Water Suppliers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22Water Control and Improvement Districts. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23Special Utility Districts. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23Freshwater Supply Districts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24

Glossary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25Abbreviations. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25Terms . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26

Appendices . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27A. 30 TAC CH 291.81, Water Utility Customer Relations. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27B. Who Provides Water or Sewer Service to My Property?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29C. Open Meetings Information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30D. TCEQ Jurisdiction Over Utility Rates and Service Policies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31E. River Authorities Contact Sheet . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32

Index . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34

IntroductionOn any given day hundreds and even thousands of federal, state, regional, and local government entities, and some for-profit andnonprofit water supply entities, are making critical decisions about water management and protection in Texas. The citizens andresidents of the state need to make their views on important water issues known to those decision-makers so that these decisionsare informed and in the public interest.

In order to do so, however, the public needs a general understanding of where the respective responsibilities for water managementand protection rest among the multitude of entities involved. Gaining that understanding is not an easy task in a state as large andcomplex as Texas. As our state has evolved from a predominantly rural state to a highly urbanized and industrialized one, and asthe population has grown exponentially over the last several decades, water management and protection responsibilities have cometo rest with a myriad of entities, many of which are largely unknown to the general public.

This publication is intended to provide Texans with an overview of these various water management and protection entities at thestate, regional, and local level. (Federal decision-makers on water matters are not covered in this publication since informationabout the federal level is provided in a number of national documents). Please keep in mind that these thousands of water entitiesdirectly affect your water supply, including the rate you will pay for the water you use. When it comes to your pocketbook andyour health, it certainly does matter; it garners our attention, and begs for steps we can take to be more in control. Throughout thetext, therefore, readers will encounter two symbols and appearing in the margins to help guide you to material that isparticularly important and to alert you to opportunities to participate in the water decision-making process. We hope that thisknowledge will empower you to follow the activities of these water entities and to make our voices heard by water decision-makers. A separate Sierra Club publication gives readers step-by-step instructions on how to make your voice on water issuesheard.

Another companion piece to this publication is Facts About Texas Water – a primer of basic information about water that will helpyou understand this important resource and how to use and protect it. Together these publications present a foundation ofknowledge for Texans who wish to practice good water management themselves while making sure that larger decisions aboutwater management and protection are made with appropriate input. The Sierra Club sincerely hopes you enjoy all thesepublications. Feel free to give us feedback regarding this water publication and others produced by the Lone Star Chapter SierraClub. Enjoy.

— Designates material that is particularly important.

— Designates opportunities to participate in the water decision-making process.

SECTION ONE

State Entities and the Texas LegislatureState agencies, by their very nature, provide the broadest coverage of water supply issues. For purposes of this publication,discussion is limited to those agencies that deal directly with your water supply. Therefore, other agencies whoseresponsibilities include oil clean-ups, surface mining, and regulation of agricultural chemicals, as it pertains to waterresources, are not discussed. Texas Commission on Environmental Quality, Texas Parks and Wildlife Department, TexasState Soil & Water Conservation Board, and Texas Water Development Board all share pieces of your water supply pieand house many decision-makers that make water-related decisions that would matter to you.

Reader Note:Throughout this publication, readers will encounter two symbols and appearing in the margins to helpguide you to material that is particularly important and to alert you to opportunities to participate in the waterdecision-making process.

Texas Commissionon Environmental

QualityThe TCEQ sets thestandards for surface waterquality for bodies of waterin the state and implementsthose standards bymonitoring and assessingsurface water resources andby regulating sources ofpollution.

Texas Parks andWildlife Department

TPWD has a regulatoryresponsibility for recreationalfishing in Texas' waters andregulates commercial fishingon the coast. TPWD isdesignated as the state trusteefor aquatic resources, but ithas no direct regulatoryauthority to ensure waterquality and quantity for fish,wildlife, and recreationalresources.

Texas State Soil &Water Conservation

BoardThe TSSWCB is the stateagency that implements theTexas Soil ConservationLaw, enacted to combat soilerosion. In the 1970s theagency was designated asthe lead state agency foraddressing nonpoint sourcepollution from agriculturaland silvicultural (timbering)operations.

Texas WaterDevelopment

BoardThe TWDB was createdin 1957 and is the stateagency primarilyresponsible for waterplanning andadministering waterfinancing for the state.

1

STATE ENTITIES

Texas Commission on Environmental QualityWebsite: http://www.tceq.state.tx.us/

The Texas Commission on Environmental Quality (TCEQ) is the state’s primary environmental regulatory agency. Among otherenvironmental issues, the TCEQ is involved with the following aspects of water:

◆ Quality◆ Quantity ◆ Regulations◆ Permits◆ Prices◆ Suppliers◆ Consumers.

The TCEQ sets the standards for surface water quality for bodies of water in the state (subject to approval by the U. S.Environmental Protection Agency) and implements those standards by monitoring and assessing surface water resources andregulating sources of pollution. Restoration efforts to improve impaired water supplies attempt to bring sub-quality water up to therespective standards. (The term "impaired" refers to streams or lakes that do not meet the water quality standards set for them.)Under the federal Clean Water Act these restoration efforts include determinations of how much pollution a body of water mayreceive without violating water quality standards (these determinations are known as "TMDLs" or total maximum daily loads).Other TCEQ efforts focus on addressing potential threats to water quality, in order to avoid impairments.

In the water quantity area, TCEQ is responsible for processing and acting on applications for permits to use the state’s surfacewater (known as "water rights"), including any applications to transfer surface water from one river basin to another (known as"interbasin transfers"). TCEQ is also responsible for developing models (known as "Water Availability Models" or "WAMs") todetermine available amounts of surface water in the various river basins of the state.

TCEQ also has the authority to regulate the operations of certain water suppliers (see Appendix D). In some cases where theTCEQ does not have jurisdiction, the 10% rule comes into affect (see the discussion of "Municipal Water Suppliers" elsewhere inthis publication). Essentially this means if 10% of a water supplier’s consumers submit complaints to the TCEQ (regarding price,quality, service, etc.), then the TCEQ can intervene by holding a hearing to resolve the issue.

The following TCEQ links are related to water utilities and water supplies:

Public Drinking Water http://www.tceq.state.tx.us/permitting/waterperm/pdw/pdw000.html

Source Water Assessment and Protection http://www.tceq.state.tx.us/permitting/waterperm/pdw/swap/swap.html

Water Availability Models http://www.tceq.state.tx.us/permitting/waterperm/wrpa/wam.html

Surface Water Rights in Texas http://www.tceq.state.tx.us/enforcement/fod/wmaster/wmaster1.html

Water Rights Permits http://www.tceq.state.tx.us/permitting/waterperm/wrpa/permits.html

Water Utilities and Water Districts http://www.tceq.state.tx.us/permitting/waterperm/ud/u&d.html

Water Utility Database http://www.tceq.state.tx.us/permitting/waterperm/ud/iwud.html

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Texas Co m m i ssion onEn v i ronmen t al Qu a l i t y

P. O. Box 13 0 8 7Aus t in, TX 78 7 1 1 - 3 0 8 7Main Swi t c h boa rd: 512/23 9 -1 0 0 0Public ass i s t a nce on permi t t ing, call 1- 8 0 0 - 6 8 7- 4 0 4 0To re po r t environmen t al viola t ions, call 1-8 8 8-777 - 3 1 8 6

For informa t ion on rules, regula t ions and rule-making, as well ast o find ou t rule s t a t us and public hearing oppo r t uni t ies, visi t :h t t p : / / 1 6 3 . 2 3 4 . 2 0 . 1 0 6 / AC / n a v / r u l e s / r u l e s _ r u l e m a k i n g . h t m l

3

The TCEQ oversees water entities within Texas and has authority over many areas such as district bond issues and rates chargedby private and member owned water utilities. Furthermore, the TCEQ processes petitions for new districts and handles requestsfor designations of utility service areas. TCEQ has a wealth of resources to provide you with information concerning your waterand your water supplier.

Texas Parks and Wildlife DepartmentWebsite: http://www.tpwd.state.tx.us/

Texas Parks & Wildlife Department (TPWD) plays an important role in protecting aquatic ecosystems throughout the state. TPWDhas a regulatory responsibility for recreational fishing in Texas' waters and regulates commercial fishing on the coast. TPWD isdesignated as the state trustee for aquatic resources, but it has no direct regulatory authority to ensure water quality and quantity forfish, wildlife, and recreational resources.

TPWD also works to maintain and restore sustainable aquatic life and maintain water quality for fishing and swimming. Animportant component of the work is integration of data on aquatic communities, physical, chemical, and habitat parameters andadjacent land uses. TPWD works with regional and state water planning stakeholders and works closely with regulatory agencies inan advisory capacity to protect and enhance water quality and to assure adequate instream flows for rivers and freshwater inflows forbays and estuaries.

TPWD is the state agency with primary responsibility for protecting the state’s fish and wildlife resources. One of TPWD’s resourceprotection activities is to provide recommendations to the Texas Commission on Environmental Quality (TCEQ) on scheduling ofinstream flows and freshwater inflows to Texas estuaries for the management of fish and wildlife resources. TPWD also makesrecommendations to TCEQ regarding permit conditions and mitigation requirements to protect fish and wildlife resources. Ifnecessary, TPWD also can be a party in water right permit hearings. The Resource Protection Division leads the agency’s researchand coordination efforts on instream flow issues for Texas. All these facets serve as an effort to promote aquatic ecosystems for futureTexans.

TPWD participates as a non-voting member in the state’s regional water planning process by sending liaisons from the agency to the16 regional planning groups in order to assist them and provide technical expertise for their planning efforts.

The Texas Parks and Wildlife Commission, the governing body for TPWD, consists of nine members appointed by the Governorwith the advice and consent of the Senate. Commission members serve staggered terms of six years. The Commission's chiefresponsibility is the adoption of policies and rules to carry out all programs of the Parks and Wildlife Department.

The Commission:

◆ Approves the biennial budget and appropriation requests for submission to the legislature

◆ Sets departmental policy

◆ Appoints an Executive Director charged with the implementation of that policy and operation of the department on a daily basis.

4

Texas State Soil & Water Conservation BoardWebsite: http://www.tsswcb.state.tx.us/

The Texas State Soil & Water Conservation Board (TSSWCB) is the state agency that implements the Texas Soil ConservationLaw, enacted to combat soil erosion. In the 1970s the agency was designated as the lead state agency for addressing nonpointsource pollution from agricultural and silvicultural (timbering) operations. Nonpoint source pollution comes from sources, such asstormwater runoff from an agricultural field, as contrasted to pollution from a point source such as a sewage discharge pipe.

TSSWCB is headquartered in Temple, but it maintains a number of regional offices in other parts of the state to carry out its waterquality functions. A major thrust of the agency is its provision of technical assistance to the state’s 216 soil and water conservationdistricts. A unique feature of this agency is that each of the five members of its governing board are elected by soil and waterconservation district directors in the state district they represent.

Other major programs administered by TSSWCB are the Water Quality Management Plan Program and the State Brush ControlProgram. Participation by local landowners in these programs is voluntary. Through the first program listed, the agency assistsagricultural and silvicultural producers in preparing water quality management plans to control pollution from their operations andprovides funding to pay for 75 percent of the implementation of an approved plan.

Through the State Brush Control Program landowners contract with the state for cost-share assistance to prepare brushmanagement plans developed through local soil and water conservation districts. One of the aims of this program is to enhancegroundwater supplies by controlling invasive brush species, which use large amounts of water. If you have a question aboutinvasive brush species in your area, contact TSSWCB staff.

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Texas Water Development BoardWebsite: http://www.twdb.state.tx.us/

The Texas Water Development Board (TWDB) was created in 1957 and is the state agency primarily responsible for waterplanning and administering water financing for the state. The agency is governed by a six-member Board whose members areappointed to six-year staggered terms by the Governor and which meets monthly, usually on the third Wednesday of the month inAustin. Board and committee meetings are open to the public, and, their schedules and agendas are posted on the TWDB website.The Board considers loan applications from eligible applicants, awards grants for water-related research and planning, andconducts other TWDB business, such as approving the State Water Plan. To receive one copy of the State Water Plan, Water forTexas – 2002, either download it from the TWDB website, or contact TWDB staff member Ann Omoegbele atann.omoegbele@twdb.state.tx.us, or call 512/936-0814.

The mission of the Water Development Board is to provide leadership, technical services and financial assistance to supportplanning, conservation and development of water for Texas. The Board has two goals. The first goal is to plan and guide theconservation and orderly, cost-effective development and best management of the state’s water resources for the benefit of allTexans. The second goal is to provide cost-effective financing for the development of water supply, for water quality protection,and for other water related projects.

The following is a list of the board’s duties:

◆ Provides loans to local governments for water supply projects; water quality projects including wastewater treatment, municipalsolid waste management and non-point source pollution control; flood control projects; agricultural water conservation projects;and groundwater district creation expenses

◆ Provides grants and loans for the water and wastewater needs of the state’s economically distressed areas

◆ Provides agricultural water conservation funding and water-related research and planning grants

◆ Supports regions in developing their regional water plans that will be incorporated into a statewide water plan for the orderlydevelopment, management and conservation of the state’s water resources by studying Texas’ surface and groundwater resources(including the development of "Groundwater Availability Models" or "GAMs" to determine the volume of groundwater availablein different aquifers around the state). (Also see p. 16 for more discussion on regional water plans.)

◆ Collects data and conducts studies concerning the fresh-water needs of the state’s bays and estuaries

◆ Administers the Texas Water Bank, which was established to facilitate the transfer, sale or lease of water and water rightsthroughout the state, and administers the Texas Water Trust, which was established to hold water rights for environmental flowmaintenance purposes

◆ Maintains a centralized data bank of information on the state’s naturalresources called the Texas Natural Resources Information System (TNRIS) andmanages the Strategic Mapping Initiative, a Texas-based, public and private sectorcost-sharing program to develop consistent, large-scale computerized base mapsdescribing basic geographic features of Texas.

Texas Na t ural Re s o u rce sI n forma t ion Sys t em (TNRIS)

h t t p : / / w w w. t n r i s . s t a t e . t x . u s ]

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Texas LegislatureWebsite: http://www.capitol.state.tx.us/

The Texas Legislature, composed of the Texas House of Representatives and the Texas Senate, is the law-making body for stategovernment. As such it is ultimately responsible, subject to the provisions of the Texas Constitution and in some cases federallaws and regulations governing water, for making and revising state water law, providing financial appropriations to state wateragencies, and creating or setting the legal requirements and procedures for creating various local and regional water entities.

Although ultimately the Texas House and the Texas Senate must adopt laws and appropriations affecting water (subject to the vetopower of the Governor, of course), the usual legislative process involves a considerable amount of work and discretion on the partof standing committees of both houses. In the case of water, most but not all water-related legislation goes through the HouseNatural Resources Committee in the Texas House and the Senate Natural Resources Committee in the Texas Senate. The chairsand members of these committees are appointed by the respective presiding officers in each house – the Speaker of the House inthe case of the Texas House and the Lieutenant Governor in the case of the Texas Senate.

Appropriations for state agencies and programs addressing water go through the House Appropriations Committee and the SenateFinance Committee before going to the respective floors of each house and usually are finally decided by a joint House-Senateconference committee that reconciles the differences between House and Senate versions of the appropriations bill. The House andSenate then usually adopt the conference committee report on the appropriations bill, which goes to the Governor (who mayexercise the power of "line item" veto over the appropriations in the bill).

Practically every session of the Texas Legislature sees a variety of water-related legislation introduced, including sometimes majorre-writes or additions to the Texas Water Code, as occurred with the "water package" in 1985, the passage of Senate Bill 1 in 1997,and the passage of Senate Bill 2 in 2001. Thus, anyone interested in water policy decision-making should pay special attention tothe work of the Texas Legislature in its regular sessions in the spring of each odd-numbered year and sometimes to the work of theLegislature in special sessions called by the Governor at other times.

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SECTION TWO

Regional Entities

Texas Commissionon Environmental

Quality

Texas State Soil &Water Conservation

Board

Texas WaterDevelopment

Board

Texas Parks andWildlife

Department

GroundwaterConservation

Districtsprovide groundwater

management andconservation.

RiverAuthorities

protect and monitorTexas’ rivers for thestate’s inhabitantsand ecosystems.

Edwards AquiferAuthority

manages, conserves,preserves and protectsthe Edwards Aquifer.

Regional Water

Planning Groups

RWPGs prepareregional water plansfor their respective

areas.

Harris-GalvestonCoastal Subsidence

Districtregulates the withdrawal ofgroundwater within Harrisand Galveston Counties.

— Designates material that is particularly important.

— Designates opportunities to participate in the water decision-making process.

River authorities, groundwater conservation districts, and other regional entities provide another layer of the "water supplypie" and also play critical roles in making decisions about your water that directly affects the quality, quantity, and cost ofyour water. Regional Water Planning Groups, also included in this layer, develop regional water plans for their respectivearea of the state to identify water demands and water management strategies to meet those demands.

8

Reader Note:Throughout this publication, readers will encounter two symbols and appearing in the margins to help guide you tomaterial that is particularly important and to alert you to opportunities to participate in the water decision-making process.

S TATE ENTITIES

REGIONAL ENTITIES

Groundwater conservation districts are important for two primary reasons, groundwater management and conservation. Thesedistricts provide some form of groundwater management in a state where groundwater withdrawals operate generally under the"rule of capture." The rule of capture is the basic groundwater law for Texas that allows the surface owner of land to pump anunlimited amount of groundwater from under his/her land. The rule of capture has been modified considerably in some areas ofthe state (for example, in Bexar County and counties to the east and west where pumping from the Edwards Aquifer is regulatedby the Edwards Aquifer Authority, in the Houston-Galveston area where pumping is regulated by the Harris-Galveston CoastalSubsidence District, and in some respects in areas covered by other groundwater conservation districts created under Chapter 36 ofthe Texas Water Code or by other special legislation).

The state’s groundwater supplies, which provide water for most of West Texas and much of East Texas, are decreasing at analarming rate in many areas. One of the reasons for creating a groundwater conservation district is to conserve preciousgroundwater supplies.

Groundwater conservation districts (GCDs) were authorized by the Texas Legislature to provide for the conservation, preservation,protection, recharge, and prevention of waste of groundwater and groundwater reservoirs. They are the state’s preferred method ofmanaging groundwater resources. While no state agency has the right to regulate the production or use of groundwater, districtscan provide some local controls.

GCDs can be created in one of four following ways: ◆ By the Texas Legislature◆ Through a petition by property owners◆ By annexation into an existing district ◆ By the Texas Commission on Environmental Quality (TCEQ).

A locally elected board of directors manages each GCD and is responsible for establishing policies, rules and procedures. GCDsgenerate revenues to pay for their operations through either property taxes or production fees.

GCDs are required by law to develop and adopt a groundwater management plan. The goals of this plan are to provide forefficient use of groundwater, control and prevent waste and subsidence (the lowering of land elevation due to extracting too muchwater beneath it), and address issues such as conjunctive water use, natural resources, drought conditions, and conservation.

Districts also are required to:◆ Adopt rules to implement their management plan◆ Coordinate with Senate Bill 1 regional water planning groups, state agencies, and other groundwater conservation districts◆ Permit and register certain wells and alterations to well size or well pumps ◆ Update records on the drilling, equipping, and completion of wells and the production and use of groundwater

Groundwater Conservation DistrictsWebsite: http://www.texasgroundwater.org

9

Depending on their enabling legislation and the discretion of their board, GCDs also may have the authority to:◆ Adopt and enforce rules to regulate the spacing and production of groundwater wells◆ Require permits and fees for transferring groundwater out of the district◆ Acquire land through eminent domain◆ Buy, sell, transport and distribute surface water or groundwater◆ Make surveys of aquifers◆ Require uncovered wells to be closed or capped

Presently, groundwater supplies provide almost 60% of our state’s water demand. However, these supplies are predicted todecrease 20% by 2050. At present GCDs are our best defense to protect these diminishing groundwater resources.

G ro u n d wa t e rCo n s e rva t ion Dis t ric t s

If you live within the jurisdiction of a groundwater district, you may wish to participate in district activities. To participate, contactyour groundwater conservation district and attend their meetings. All meetings are public and are subject to the Open Meetingsand Open Records Act. Residents within a groundwater conservation district may also vote in elections to select the members ofthe Board of Directors of the district.

For informa t ion on t he forma t ion and opera t ion of dis t ric t s, seeChap t er 3 6 of t he Texas Wa t er Code a twww.capi t ol.s t a t e. t x.us/s t a t ut es/wa/wa 0 0 0 3 6 0 0 toc.h t ml.

For a map of GCDs in Texas, go t o t he Texas Wa t er Development Boardwebsi t e map sec t ion a t www. t wdb.s t a t e. t x.us/mapandphot os/map-main.h t m and click on Confirmed and Newly Crea t ed GCD’s in Texas orcall Mark Hays a t 512/4 6 3-0 8 2 8 .

For cont ac t informa t ion for a specific dis t ric t cont ac t Rima Pe t rossian,Texas Wa t er Development Board, 512/4 6 3-0 8 2 8 . Cont ac t t he dis t ric tdirec t ly t o see a copy of t heir groundwa t er management plan.

10

Texas’ extensive river systems supply water for the state’s inhabitants and ecosystems. To protect andmonitor this precious resource, the Texas Legislature (following passage of an amendment to theTexas Constitution) created river authorities. River authorities now control rights to more than70% of the state’s surface water. Therefore, they play a crucial role in determining the future ofTexas water.

There are more than 20 river authorities in Texas and, their primary function is todistribute and conserve the state’s surface water. In addition, some riverauthorities, depending upon the laws creating and empowering them (known astheir "enabling legislation") may perform one or more of the following specificfunctions:

◆ Monitor and enforce surface water quality throughout an entire watershed◆ Finance and conduct water projects◆ Manage waste water systems◆ Oversee permit application processes

The water to which river authorities have rights is either sold to consumers (i.e.,households and businesses) or sold to other suppliers of water (i.e., municipal andcounty water suppliers, private water companies). Many parts of the state receive water, either directly or indirectly, from a riverauthority. As a citizen and consumer, you have the right and the opportunity to monitor the actions of your river authority.

River authorities are subject to several requirements that may result in information that would be useful to you in monitoring theiractivities. Specifically, river authorities must:

◆ Monitor water quality in their respective basins and prepare an assessment of that water quality on a periodic basis◆ Meet the obligations of the state’s open records and open meetings laws◆ Submit annual independent audit reports◆ Get approval from the state Attorney General to issue bonds.

Moreover, the Texas Commission on Environmental Quality (TCEQ) monitors river authorities, and the river authorities areaccountable to the Texas Legislature, the customers of the river authority, and the officials who select the members of thegoverning board of the river authority.

11

Did you know?River authoritiescontrol more than70% of Texas’ surfacewater.

River Authorities

12

R i ve rAu t h o r i t i e s

For more informa t ion cont ac t t he TCEQ’s wa t er supply division a t 512/23 9-4 6 91

Refer t o t he River Aut hori t ies Cont ac t Shee t a t t he end of t his publica t ion.

Links for si t es rela t ed t o river aut hori t ies:www. t xwin.ne t /Moni t oring/SW/RA's.h t mwww. t exaswa t er.org/ne t work/defaul t .h t m

River authorities tend to vary significantly in structure and function, ranging from modest to massive in their magnitude ofoperations. In this regard, the largest river authority in Texas is the Lower Colorado River Authority, and the smallest is theNueces River Authority. In addition to distributing and conserving surface water, some river authorities generate and sell electricpower, regulate navigation, construct and operate reservoirs, and/or operate parks. Since river authorities do not receive directlegislative appropriations, the selling of water or by-products of water constitute the majority of their revenues. River authoritiesmay also receive grants or loans from state agencies for specific programs or projects.

Streams, rivers, evaporation, and precipitation interconnect Texas waters, allowing water management in one region to affect waterquality and water supply in another. Therefore, the success and collaboration of river authorities is crucial to the future availabilityof water across Texas. To help ensure the quality and quantity of your water supply, familiarize yourself with your regional riverauthority and monitor the actions of these important water decision-makers.

The Edwards Aquifer Authority (EAA) is a regulatory agency created by the Texas Legislature – the Edwards Aquifer Authority Actof 1993 (also known as SB 1477) – to (1) manage, conserve, preserve and protect the aquifer, (2) increase the recharge to theaquifer, and (3) prevent waste or pollution in the aquifer. The number of water users within the EAA’s jurisdiction of eightcounties is currently 1.7 million and expected to nearly double by 2030. However, the water supply within the aquifer is limitedand unpredictable due to annual variations in rainfall and therefore recharge of the aquifer as well as variations in pumping fromthe aquifer -- making the EAA an important entity to monitor and manage the aquifer.

The goals of the EAA are to guide the organization in achieving its objectives and influence its actions. According to the EAA, itsobjectives are to do the following:◆ Fully implement the requirements of the Edwards Aquifer Authority Act◆ Develop an effective, comprehensive management plan base on sound, consensus-based scientific

research and technical data◆ Maintain continuous spring flow at Comal and San Marcos Springs◆ Protect and ensure the quality of ground water in the Authority’s jurisdiction◆ Forge solutions that ensure public trust◆ Promote healthy economies in all parts of the region◆ Research and develop additional sources of water.

To meet some of the above performance goals, the EAA issues permits specifying amounts of water that may be withdrawn fromthe aquifer by various users (in keeping with provisions in its enabling legislation), and it imposes and enforces regulations, withinthe area of its jurisdiction (which covers Bexar County – the San Antonio area – and several counties to the west and east thatoverlie the Edwards Aquifer).The EAA is also required tohave and implement a criticalperiod management plan tofurther restrict water useduring times of low aquiferlevels. The Board of Directorshold public meetings and publichearings where members of thepublic and representatives oforganizations can give writtenand/or oral feedback on theAuthority’s rules andregulations (the EAA onlyresponds to written feedback).

The Edwards Aquifer, anunderground water reserve created from porous limestone, is the source of water for millions of people. It is the EAA’sresponsibility to maintain this invaluable water resource, through rules and permits as well as research and development, in orderto ensure the aquifer’s productivity in the future.

For information on proposed rules, final rules, and public meetings/hearings, visit http://www.edwardsaquifer.org/Pages/frames_regulations.html

Edwards Aquifer AuthorityWebsite: http://www.edwardsaquifer.org

unsaturatedzone

sand &gravel aquifer

limestoneaquifer

water table well

artesian well

surface water

atmospheric water

water table

groundwaterresidesin this

saturatedzone

Water Table

13

Harris-Galveston Coastal Subsidence DistrictWebsite: http://www.hgsubsidence.org/

The Harris-Galveston Coastal Subsidence District (HGCSD) was created in 1975 by the 64th Texas Legislatureto regulate the withdrawal of groundwater within Harris and Galveston Counties. The District was created"…for the purpose of ending subsidence, which contributes to or precipitates flooding, inundation, oroverflow of the district, including without limitation rising waters resulting from storms or hurricanes."A board of directors consisting of 19 members, who serve for two-year staggered terms, governsthe District.

Harris and Galveston Counties have experienced significant subsidence as a result of thewithdrawal of groundwater. Subsidence in this region of the Gulf Coast is most notable inthe critical areas along Galveston Bay, where the land surface has sunk as much as 19 feetsince 1906, causing serious flooding and inundation. The subsidence problem in the region,due to groundwater withdrawals, was recognized and studied by private entities as early as1954. The relationship between groundwater withdrawal and subsidence was determined bystudies conducted in the mid- 1950s and 1960s. At that time, area leaders beganconsideration of measures to control further subsidence. Local area governments questionedthe continued impact of subsidence on the economic growth and quality of life of the region.The HGCSD was created to address these problems. The jurisdiction of the District includesall of Harris and Galveston Counties. The district works to minimize the potential impacts ofsubsidence within the region through implementation of its district plan.

The district performs the following duties and functions:◆ Technical research, measurements, and studies to determine and project the extent of subsidence and available groundwater

supplies◆ Preparation of regulatory and management plans based on current technically sound information ◆ Issuance of permits to withdraw groundwater for beneficial uses in amounts that are not detrimental to the aquifer system ◆ Regulation of well spacing and production in order to control and

prevent subsidence◆ Enforcement actions, when needed, to achieve the objectives of

the District◆ Assessment of permit fees as a regulatory tool to encourage

conservation and conversion to surface water ◆ Cooperation with surface water suppliers to assure that adequate

water supplies are available for beneficial uses ◆ Participation with other districts, regions, and state and local

governments to achieve the District's goals◆ Encouragement of water conservation through education and

incentives ◆ Provision of public access to information about subsidence,

groundwater withdrawal, and actions of the District ◆ Development of information and determination of the District's role in groundwater quality management.

The District must comply with the state open meetings law (all meeting are open to the public). The governing board of thedistrict meets for a regular meeting once a month and may hold special meetings at the call of the chairman.

Did you know?The land surface in partsof Harris and Galvestoncounties along the GulfCoast has sunk 19 feetsince 1906.

For more informa t ion about t he Dis t ric t , look a tChap t er 151 of t he Texas Wa t er Code. I t can beviewed online a t t he following address:

h t t p://www.capi t ol.s t a t e. t x.us/s t a t ut es/wa/wa0 01510 0 toc.h t ml.

14

Regional Water Planning GroupsWebsite: http://www.twdb.state.tx.us/RWPG/group_info.htm

15

Regional Water Planning Groups (RWPGs) were established throughout Texas in 1998 as part of the implementation of Senate Bill1 (SB 1), comprehensive water legislation enacted by the 75th Texas Legislature a year earlier. The passage of SB 1 followed aperiod of drought in the state in the mid-1990s that motivated state government leaders to reexamine the way in which state waterplanning had been done since the 1960s.

Panhandle

LlanoEstacado

Brazos G

Region B

Region H

Region F

FarWestTexas

Plateau

South CentralTexas

CoastalBend

RioGrande

Lavaca

Region C NorthEast

Texas

EastTexas

LowerColorado

16

SB 1 created what has been termed a "bottom up" water planning process in which planning begins at the regional level andresults in regional water plans that are submitted to state government officials and incorporated into a state water plan. Underthe provisions of SB 1, the Texas Water Development Board (TWDB) divided the state into 16 regions. Individuals representing11 interest groups were initially chosen by TWDB to serve as members of a RWPG in each of the 16 regions. The RWPGs insome instances added other individuals to membership on their respective groups.

RWPGs prepare regional water plans for their respective areas. These plans estimate water demands from various water usegroups in the region over the next 50 years and propose water management strategies to meet those demands. The originalregional water plans prepared by the RWPGs had to be submitted to TWDB by January 5, 2001 and folded into the latestversion of the state water plan by January 5, 2002. The regional and state water plans will be updated every five years. As ofthis writing, the RWPGs are in the process of updating the first round of regional plans with the second round of plans due forcompletion by January 2006.

The plans themselves do not compel any water decision-makers to take specific actions to implement the water managementstrategies recommended in the plans. SB 1, however, did set two new requirements in state water law tied to the regional plans.First, TWDB financial assistance for water supply projects may be provided only to projects that meet identified needs in amanner that is consistent with the approved regional water plans. In addition, the Texas Commission on Environmental Qualitymay not issue a water right permit for municipal water use unless it is consistent with an approved regional water plan.

SB 1 requires that the Regional Water Planning Groups and TWDB provide for public participation opportunities in thedevelopment and updating of the regional water plans, including open meetings of the RWPGs and public hearings at theappropriate time in the planning process. To determine which water planning region of the state you reside in and how to beinformed about and participate in the regional water planning process in your area, check the website for the Texas WaterDevelopment Board at www.twdb.state.tx.us.

16 Regional Level Water Plans

Comprehensive State Water Plan

Municipal Water Suppliers service a large percentage of the state’s population and like other local water entities can haveprofound impact on you and your family with the water decisions they make. They may set rates, determine the amount ofwater to which you have access, and even the extent and location of development projects in your area. These local entitiesprovide our final piece of the water supply pie. As similar to other sections within this publication, we have also provideddiscussions on how you can participate in this process and influence the outcome of the decisions. You can make adifference.

17

SECTION THREE

Local Entities

Texas Commissionon Environmental

Q u a l i t y

Texas State Soil &Water Conservation

B o a r d

Texas Wa t e rD e v e l o p m e n t

B o a r d

Texas Parks andW i l d l i f e

D e p a r t m e n t

G r o u n d w a t e rC o n s e r v a t i o n

D i s t r i c t s

R i v e rA u t h o r i t i e s

E d w a r d sA q u i f e r

A u t h o r i t y

Regional Water Planning

G r o u p s

H a r r i s - G a l v e s t o nCoastal Subsidence

D i s t r i c t

M u n i c i p a lWa t e r

S u p p l i e r s

M u n i c i p a lU t i l i t y

D i s t r i c t s

Wa t e rS u p p l y

C o r p o r a t i o n s

P r i v a t eWa t e r

S u p p l i e r s

Wa t e rControl and

I m p r o v e m e n tD i s t r i c t s

S p e c i a lU t i l i t y

D i s t r i c t s

F r e s h w a t e rS u p p l y

D i s t r i c t s

Reader Note:Throughout this publication, readers will encounter two symbols and appearing in the margins to help guide you tomaterial that is particularly important and to alert you to opportunities to participate in the water decision-making process.

LOCAL ENTITIES

REGIONAL ENTITIES

S TATE ENTITIES

18

Municipal water suppliers (operated or established by “city” government) provide water to cityresidents and often to suburban communities surrounding cities. These suppliers set the water ratesfor their customers.

Municipal water suppliers provide more water than any other entity. Therefore, manyopportunities exist to conserve water by refining the means and methods of waterdistribution by a municipal water utility. Urbanization has brought the majority ofTexas’ residents to the city, which is where municipal water utilities provide theirservices. Sometimes, however, municipal water suppliers may deliver water outsidecity boundaries. In other instances, they subcontract with other water companies tohelp meet water demands inside city boundaries.

Inside city limits, the TCEQ has no authority to set municipal water rates. Since citycouncils oversee municipal water systems, elected officials are responsible for acting inthe best interest of their constituents, including the setting of appropriate water rates.The public may affect such decisions by voting in city elections for mayor and citycouncil members and by communicating their views to elected and appointed city officials.

Outside city limits, the TCEQ has the ability to intervene with rate changes. If 10% of municipal customers that receive waterservices in an adjacent area submit an objection to a rate change, the TCEQ will hold a preliminary and secondary (if necessary)hearing to determine if the rate change is reasonable.

A municipal water supplier may change its rates for a variety of reasons, which include, but are not limited to the following:◆ Drought conditions◆ Conservation incentives◆ Legislative directives◆ Changes in the size of its customer base

If you receive water from a municipal watersupplier, you may express your opinion onwater rates and/or voice your stance onwater service issues by (1) communicatingwith your city council member(s) and yourcity manager and/or (2) attending citycouncil meetings at which water matters arediscussed and speaking at those meetingsduring the public comment period.

Did you know?Municipal watersuppliers provide morewater than any otherentity.

Municipal Water Suppliers

Visi t t he following TCEQ’s websi t es

- 2 0 0 2 survey of municipal wa t er suppliers:h t t p://www. tceq.s t a t e. t x.us/permi t t ing/wa t erperm/wrpa/resul t s.pdf

- Wa t er conserva t ion plans for municipal uses:h t t p://www. tceq.s t a t e. t x.us/oprd/rules/pdflib/2 8 8 a.pdf

Tips for municipal wa t er conserva t ion:www.s t a t e.ma.us/dep/brp/wt rm/wt rmpubs.h t m

Many people who live in suburban areas outside the boundaries of a municipality live in areas served by Municipal UtilityDistricts (MUDs). There are close to 600 MUDs in Texas. MUDs are able, under legislative authority, to affect the amountresidents of a district pay for taxes for a number of basic services. If you live within a MUD, you may influence the impact MUDshave on your finances, community, and water supply by participating in public hearings.

A MUD is a non-profit political subdivision of the state of Texas created for the purposes of providing water, wastewater, and otherservices. They are usually created for areas undergoing residential and commercial development where no local retail watersupplier is providing service to the area. MUDs are formed either by a special act of the legislature, or by the TCEQ. The TCEQmay receive petitions to form MUDs from (1) owners of large plots of land that desire development or (2) a majority of a district’sproperty owners. After the TCEQ receives the petition, it assesses the proposal, conducts a public hearing, and grants or denies therequest. If approved, five members are temporarily appointed to the board of directors until an election can be held. The boardoversees and manages the district’s operations, which range from issuing tax-exempt revenue bonds and general obligation bondsto deciding where to build a park within its jurisdiction.

The primary duties of MUDs include the following:◆ Controlling, storing, preserving, and distributing water resources for irrigation, power

and all other useful functions for municipal, commercial, and domestic uses◆ Managing any shortage or excess of water◆ Protecting, preserving, and restoring the purity and sanitary condition of Texas water◆ Overseeing the conservation and development of natural resources◆ Providing parks and recreational facilities for inhabitants within the district◆ Collecting, transporting, processing, and disposing of waste.

WHETHER OR NOT YOU RECEIVE SERVICES FROM A MUD, YOU MAY BE AFFECTED BY THEIR ACTIONS. If youreceive services from a MUD, you are entitled to participate in the process by which the MUD makes decisions about theprovision of services, the construction of projects or purchase of equipment to provide those services, and the financing of itsactivities.

If you do not receive services from a MUD but live in an adjacent municipality, your municipality may choose to annex the areaserved by a MUD, which will require the municipality to take over the debt of the MUD. Assuming the debt of the MUD couldaffect your tax payments to your municipality. In this situation, you should share your opinions on such annexations with yourcity council member(s).

MUDs are excluded from TCEQ’s rate rules. Therefore, it is critical ifyou receive services from a MUD that you participate in meetings ofthe directors of the MUD to express your views on water rates andother matters. If you live in a municipality that is likely to beannexing areas with MUDs, and you are concerned about thepotential impacts on your tax bill, make your views known to yourcity officials.

Municipal Utility Districts

For any ques t ions:

Cont ac t your local MUDCall t he TCEQ’s Wa t er Supply Divisiona t 512/23 9-4 6 91 for informa t ion

Refer t o Ch. 5 4 of t he Texas Wa t erCode

19

The following section should (1) provide members of existing Water Supply Corporations with usefulinformation about their water service provider and (2) inform those considering a Water SupplyCorporation as their water provider about the benefits of doing so and the process involved.

Water Supply Corporations (WSCs) are non-profit entities that supply potable water and/orsewer service to their members (who own and control the corporation) in areas not servedby a municipality or other governmental water supplier. WSCs have certain advantagesover private water suppliers, such as the ability (1) to receive significant tax advantagesby applying for certain exemptions, (2) to access government grants, and (3) to obtaingovernment loans at low interest rates.

There are various conditions under which WSCs form including:◆ The transfer of an existing water facility from a co-op, homeowners group, or

privately owned system to a community-owned system◆ A decision by an existing community to switch from wells to a more viable water

supply◆ A determination that the quality of current water supplies is inadequate and in need of

treatment◆ A newly established community that needs water and takes the following actions:

1) files Articles of Incorporation with the Secretary of State2) creates bylaws3) recruits members4) applies for funding.

In order to receive services from a WSC, you must live within the area for which a WSC has received a Certificate of Convenienceand Necessity (CCN) to serve, and you must become a member of the WSC. To become a member you will need to (1) complete amembership application form, (2) appear before the board and formally request a membership (if asked to), and (3) pay amembership fee between $50-$250. Other charges may apply if installations, such as pipelines, are not already in place. Afterattaining membership, the corporation is obligated to provide you with water service. Members are entitled to receive the utility'sservices and to vote on an array of issues.

The board of directors sets the rates members pay to receive utility services. However, there are two ways members can affect theamount they pay for utilities. First, if a rate is increased and 10% of the members disagree with the increase and petition theTCEQ within 90 days, the board’s decision to change the rate will be reviewed. Second, you can voice your financial concerns atthe open public meetings that your WSC is required to hold.

Water Supply Corporations are the primary suppliers of water services to residents in the rural areas of Texas who do not obtaintheir water from their own private well.

Water Supply Corporations

Did you know?WSCs are the primarysuppliers to rural areaswhere residents do notalready get water from theirown private well.

20

Wa t er Su p p l yCo r po ra t i o n s

Cont ac t t he Texas Rural Wa t er Associa t ion for general informa t ion on WSCs aswell as specific informa t ion on how t o crea t e a WSC (ask for a copy of Rober tS t ewar t ’s ar t icle Wa t er Supply Corpora t ions -Crea t ion, Opera t ion, Regula t ion):

Texas Rural Wa t er Associa t ion1616 Rio Grande S t ree tAus t in, Texas 78701-8 5 91512/472-8 5 91

The TCEQ moni t ors WSCs and is also a source for addi t ional informa t ion:Texas Commission on Environment al Quali t yWa t er U t ili t ies Division, MC 15 3Consumer A ssis t ance TeamP.O. Box 13 0 87Aus t in, Texas 78711512/23 9-610 0

For informa t ion on filing Ar t icles of Incorpora t ion, cont ac t :Secre t ary of S t a t eS t a t ut ory Filings DivisionCorpora t ions Sec t ionP.O. Box 13 6 97Aus t in, TX 78711-3 6 97Tel. 512/4 6 3-5 5 5 5

21

Privately owned water suppliers operate for a profit. The following information explains (1) how toprotest a rate change or surcharge and (2) who to contact regarding other issues you may have withyour private water supplier if your water comes from such a source.

Private water suppliers, which include investor owned utilities (IOUs) and private watercompanies, tend to rely upon different and potentially more costly funding mechanismsand may be less influenced by public comments, compared to non-profit water suppliers.

If a private water supplier invests in capital improvements, the funding mechanism itchooses for the project most likely will affect the water rates levied by the supplier.While daily operations of private water suppliers are funded through their establishedrates, capital improvements are funded through (1) cash flow over and above thatrequired for operations, (2) loans, (3) investments from owner(s), and/or (4) customersrate hikes and surcharges. In the event the first three of these options are not viable,customers generally pay for capital improvements through rate hikes and surcharges.

A private water supplier has no legislative obligation to review with the public whetherits rates or surcharges are justified, unless 10% or more of the utility’s customer baserequests a protest hearing. Even with protest hearings, an amendment of the rate change or surcharge may not occur.

Please note - If you are served by a private water supplier and plan to protest a rate change or surcharge, you should (1) observethe deadline to file such a request (thedeadline should be found on your utilitystatement), (2) familiarize yourself with thespecifics of your utility statement beforeattending the hearing, (3) prepare a statementto be submitted, (4) actively participate in thehearing process. If you have submitted acomplaint against a rate change or surcharge,but the 10% rule has not taken effect, youmay notify the TCEQ or a city that contractswith your private water supplier, because theyhave the authority to determine that a ratechange or surcharge is justifiable or non-justifiable.

Nothing obligates private water suppliers toadhere to public comment, because they arenot required to comply with the Texas PublicInformation Act. The recommended method of submitting comments and/or complaints is to contact the TCEQ or agenciescontracting with your private water supplier (for provision of water, for example).

Comments and/or complaints also may be submitted to the state legislature and city or county authorities that contract with aprivate water system. To find out what authorities contract with a private water supplier, call TCEQ at 512/239-4691. Visit theTexas Water Code website at http://www.capitol.state.tx.us/statutes/watoc.html

Private Water Suppliers

Did you know?Nothing obligates privatewater suppliers to adhere topublic comment because theyare not required to complywith the Texas PublicInformation Act.

22

For more informa t ion on t he ra t e change hearingprocess, visi t t he TCEQ websi t e a twww. t nrcc.s t a t e. t x.us/admin/ t opdoc/gi/2 6 6 .pdf orcall TCEQ Publica t ions a t 512/23 9-0 0 2 8 andreques t U t ili t y Funding and Ra t e Design: A Guide t oCus t omers of Priva t e or Inves t or-Owned U t ili t ies.

Regula t ions of priva t e wa t er suppliers are found inCh. 291of t he TAC:h t t p://info.sos.s t a t e. t x.us/pub/plsql/read t ac$ext .ViewTAC? t ac_view=3&t i=31&p t =10

The Texas Legislature created Water Control and Improvement Districts (WCIDs) in the 1920s under Article XVI, Section 59 ofthe Texas Constitution. WCIDs are general law districts and can be created by petition of landowners or the countycommissioner’s court. General Law districts must comply with the Texas Water Code. A district may include all or part of one ormore counties. They have an elected board of five members that oversee the district’s activities. WCIDs are subject to the TexasPublic Information Act. Districts that encompass at least 30,000 people and have an estimated real estate value of at least 50million dollars may become municipal utility districts (MUDs). (Also see p. 19 for more discussion on MUDs.)

WCIDs have many broad powers and duties, including the ability to:◆ Supply treated and untreated water◆ Provide wastewater service◆ Manage drainage and flood control◆ Oversee irrigation and navigation◆ Exercise eminent domain◆ Generate hydroelectric power ◆ Utilize taxing and bond authority

WCID customers should contact district board or staff members with questions or concerns about their water supply. You can callTNRCC at 512/239-6170 to find out how to contact your water supplier and its board members. WCIDs are covered extensivelyin Chapter 51 of the Texas Water Code. You can view the water code online athttp://www.capitol.state.tx.us/statutes/wa/wa0005100toc.html

The remaining local water entities, Water Control and Improvement Districts,Special Utility Districts, and Freshwater Supply Districts tend to have smalleroperations and provide water to limited areas compared to the types of watersuppliers already discussed in this publication.

23

Water Control and Improvement Districts

Special Utility DistrictsWSCs have been known to convert to Special Utility Districts (SUDs) for tax purposes. However, the conversion must provebeneficial for the area residing inside the district. Once converted, SUDs receive (1) exemption from sales and property taxes, (2)qualification for preferred loans and grants, and (3) reduction in interest rates. However, SUDs must pay for annual audits andsubmit to higher levels of regulation. Whether one type of water entity is more preferable is debatable. SUDs provide the samewater service as WSCs.

SUDs must be created from a non-profit water supply or sewer service corporation. The board of directors of the corporation mustpass a resolution requesting conversion to a SUD. The directors of the water supply or sewer service corporation will serve astemporary directors of the newly approved SUD until a new board is elected.

For information on the formation and operation of SUDs, see Chapter 65 of the Texas Water Code athttp://www.capitol.state.tx.us/statutes/wa/wa0006500toc.html

24

Freshwater Supply DistrictsA Freshwater Supply District (FWSD) is created for the purpose of providing and distributing water for domestic and commercialuse.

FWSDs are created via petition, hearing, and election. After receiving a petition signed by a least 50 people in the proposeddistrict, the county commissioner’s court will hold a public hearing for creation of the FWSD. If the petition is in order and thecommissioner’s court determines that a FWSD would be a benefit to the land inside the district, an election is held to determinewhether the proposed district shall be created.

An elected board of five supervisors, along with tax assessor(s) and collector(s), direct the affairs of the district. FWSDs havetaxing and bond authority. The board (1) fixes rates paid by water users, (2) decides the terms on which water can be provided, and(3) makes rules regarding water use and distribution. The revenue earned is used for operation and maintenance expenses, or tohelp pay debt or interest on bonds.

FWSDs must comply with the Open Meeting and Open Records Act. If you have any concerns about your water supply, youshould attend one of these meetings and notify the supervisors of the district.

For information on the formation and operation of FWSD, see Chapter 53 of the Texas Water Code athttp://www.capitol.state.tx.us/statutes/wa/wa0005300toc.html. For more information on FWSDs, contact the TCEQ at 512/239-4691.

25

GlossaryCommonly Used Abbreviations

CCN - Certificates of Convenience and Necessity

Co-ops - Cooperative water systems

GCD - Groundwater Conservation District

FWSD - Fresh Water Supply District

IOU - Investor Owned Utility

MUD - Municipal Utility District

SUD - Special Utility District

TAC - Texas Administrative Code

TCEQ - Texas Commission on Environmental Quality

TWDB - Texas Water Development Board

WCID - Water Control Improvement District

WSC - Water Supply Corporation

26

TermsAquifer – a body of permeable rock (sand or unconsolidated gravel) that is capable of storing quantities of water, which isunderlain by impermeable material and through which groundwater moves

Certificate of Convenience and Necessity (CCN) – the right and obligation of a water provider to service water needs within apre-defined area (CCNs are issued by the Texas Commission on Environmental Quality)

Corporation – in the context of water, a limited liability entity organized to develop, process, and distribute water services

Board of Directors – individuals who oversee the operations of a water district or water corporation

District – a type of local or regional government that provides water and/or wastewater services or performs other water functionsas defined by general or special laws

Eminent Domain – the ability of a governmental entity or other authorized entity to confiscate land for certain purposes, such asthe provision of a water supply

Estuary – a coastal area where fresh water from rivers and streams meets with salt water from the ocean

Groundwater – water obtained from underground sources

Municipality – a city government that provides its residents with necessary services (such as water and wastewater)

Municipally owned utility – any utility owned, operated, and controlled by a municipality or a nonprofit corporation whosedirectors are appointed by one or more municipalities

Rate – the charge for a product or service by any retail public utility such as a charge for water and/or wastewater services by awater utility

Rate hikes – long-term increases in the amount charged for services

Retail water service – potable water service provided by a public utility to the ultimate consumer for compensation

Political subdivisions – state, county, and municipal governmental entities

Surcharges – short-term rate increases for services created under limited circumstances

Surface water – water above ground; includes rivers, lakes and reservoirs

Texas Water Code – the statutes governing the management and protection of water resources in Texas

Utility – in the context of water supply, a water provider purchasing water from wholesale suppliers and distributing it to the finalconsumer

Wholesale water service – potable water service that is provided to an entity that is not the ultimate consumer

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Appendix AWater Utility Customer RelationsTexas Administrative CodeTITLE 30, PART 1, CHAPTER 291, SUBCHAPTER E, RULE 291.81

(A) Information to customers.

(1) Upon receipt of a request for service or service transfer, the utility shall fully inform the service applicant or customer of thecost of initiating or transferring service. The utility shall clearly inform the service applicant which service initiation costs will beborne by the utility and which costs are to be paid by the service applicant. The utility shall inform the service applicant if any costinformation is estimated. Also see §291.85 of this title (relating to Response to Requests for Service by a Retail Public UtilityWithin Its Certificated Area).

(2) The utility shall notify each service applicant or customer who is required to have a customer service inspection performed.This notification must be in writing and include the applicant's or customer's right to get a second customer service inspectionperformed by a qualified inspector at their expense and their right to use the least expensive backflow prevention assemblyacceptable under §290.44(h) of this title (relating to Water Distribution) if such is required. The utility will ensure that thecustomer or service applicant receives a copy of the completed and signed customer service inspection form and informationrelated to thermal expansion problems which may be created if a backflow prevention assembly or device is installed.

(3) Upon request, the utility shall provide the customer or service applicant with a free copy of the applicable rate schedule from itsapproved tariff. A complete copy of the utility's approved tariff shall be available at its local office for review by a customer orservice applicant upon request.

(4) Each utility shall maintain a current set of maps showing the physical locations of its facilities. All facilities (production,transmission, distribution or collection lines, treatment plants, etc.) shall be labeled to indicate the size, design capacity, and anypertinent information which will accurately describe the utility's facilities. These maps, and such other maps as may be required bythe commission, shall be kept by the utility in a central location and will be available for commission inspection during normalworking hours.

(5) Each utility shall maintain a current copy of the commission's substantive rules, Chapter 291 of this title (relating to UtilityRegulations) at each office location and make them available for customer inspection during normal working hours.

(6) Each water utility shall maintain a current copy of §§290.38 - 290.47 of this title (relating to Rules and Regulations for PublicWater Systems), at each office location and make them available for customer inspection during normal working hours.

(B) Customer complaints. Customer complaints are also addressed in §291.82 of this title (relating to Resolution of Disputes).

(1) Upon receipt of a complaint from a customer or service applicant, either in person, by letter or by telephone, the utility shallpromptly conduct an investigation and report its finding(s) to the complainant.

(2) In the event the complainant is dissatisfied with the utility's report, the utility must advise the complainant of recourse throughthe Texas Commission on Environmental Quality Texas complaint process, and that such process can be initiated by contacting theConsumer Assistance Coordinator, Water Supply Division, Texas Commission on Environmental Quality, P.O. Box 13087, Austin,Texas 78711-3087. The commission encourages all complaints to be made in writing to assist the commission in maintainingrecords on the quality of service of each utility.

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(3) Each utility shall make an initial response to the executive director within 15 days of receipt of a complaint from thecommission on behalf of a customer or service applicant. The commission or the executive director may require a utility to providea written response to the complainant, to the commission, or both. Pending resolution of a complaint, the commission or theexecutive director may require continuation or restoration of service.

(4) The utility shall keep a record of all complaints for a period of two years following the final settlement of each complaint. Therecord of complaint shall include the name and address of the complainant, the date the complaint was received by the utility, adescription of the nature of the complaint, and the adjustment or disposition of the complaint.

(C) Telephone number. For each of the systems it operates, the utility must maintain and note on the customer's monthly billeither a local or toll free telephone number (or numbers) to which a customer can direct questions about their utility service.

(D) Local Office. Unless authorized by the executive director pursuant to a written request, each utility shall have an office in thecounty or immediate area (within 20 miles) of a portion of its utility service area in which it keeps all books, records, tariffs, andmemoranda required by the commission and at which it will accept customer payments or applications for service. Unlessauthorized by the executive director pursuant to a written request, each utility shall make available and notify customers of alocation within 20 miles of each of its utility service facilities where payments can be made to restore service after disconnectionfor nonpayment, nonuse, or other reasons specified in §291.88 of this title (relating to Discontinuance of Service).

___________________________________________________________________________________________Source Note: The provisions of this §291.81 adopted to be effective October 9, 1990, 15 TexReg 4019; amended to be effective January 10, 1996, 21 TexReg114; amended to be effective September 20, 1996, 21 TexReg 8728; amended to be effective October 19, 2000, 25 TexReg 10367; amended to be effectiveAugust 29, 2002, 27 TexReg 7924

Appendix B"Who Provides Water or Sewer Service to My Property?"

If you are considering buying a particular piece of property and need to know who provides water and/or sewer service, thefollowing options are available.

1. If you are purchasing an existing home, this information is available in the seller’sdisclosure document. If you have not received this information, please contact therealtor. If no realtor is involved, then please contact the seller.

2. If you are building a new home, contact the builder or developer.3. If you are leasing, contact the property manager.4. Ask someone living in an area how they receive water and/or wastewater service.

For other situations including determining who provides service to undeveloped or rural property, contact your county clerk’s officeto determine if a utility is recorded as providing service to the area of interest.

If the above options have failed, please provide the following information either by mail or by fax.

1. Name ___________________________________________________________________

Phone _____________________________________________________________________

Fax _____________________________________________________________________

E-mail _____________________________________________________________________

Type of service (water or sewer or both) ______________________________________________

Physical address of property ______________________________________________________

__________________________________________________________________________

___________________________________________________________________________

County or counties ___________________________________________________________

Nearest main intersection ________________________________________________________

2. Please indicate on a county map a major intersection and identify the location of the property in relation to the intersection.

Please send to:Suzanne Jaster, CartographerUtilities and Districts SectionFax: 512-239-6972Phone: 512-239-4691Mailing address: Texas Commission on Environmental Quality (TCEQ)

Utilities & Districts Section, MC-153P.O. Box 13087Austin, TX 78711-3087

A response may take up to 10 days from the date the request is received.

TCEQ – 10427 (11/02)

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Appendix COpen Meetings

A notice of an open meeting filed with the Secretary of State by a state governmental body or the governing body of a waterdistrict or other district or political subdivision that extends into four or more counties is posted at the main office of the Secretaryof State in the lobby of the James Earl Rudder Building, 1019 Brazos, Austin, Texas.

Notices are published in the electronic Texas Register and available on-line at http://www.sos.state.tx.us/texreg

To request a copy of a meeting notice by mail, please call 512/463-5561 if calling in Austin. For out-of-town callers our toll-freenumber is 1-800-226-7199. Or fax your request to 512/463-5569.

Information about the Texas open meetings law is available from the Office of the Attorney General. The website ishttp://www.oag.state.tx.us. Or phone the Attorney General’s Open Government hotline, 512/478-6736.

For on-line links to information about the Texas Legislature, county governments, city governments, and other governmentinformation not available here, please refer to the on-line site, http://www.state.tx.us/government

30

31

������ T h e T e x a s C o m m i s s i o n o n E n v i r o n m e n t a l Q u a l i t y • P O B o x 1 3 0 8 7 • A u s t i n , T e x a s • 7 8 7 1 1 - 3 0 8 7The TCEQ is an equal opportunity/affirmative action employer. The agency does not allow discrimination on the basis of race, color, religion, national origin, sex, disability, age, sexual orientation or veteranstatus. In compliance with the Americans with Disabilities Act, this document may be requested in alternate formats by contacting the TCEQ at 512/239-0028, Fax 239-4488, or 1-800-RELAY-TX (TDD),or by writing PO Box 13087, Austin, Texas 78711-3087. Authorization for use or reproduction of any original material contained in this publication, i.e., not obtained from other sources, is freely granted. TheCommission would appreciate acknowledgment.

TCEQ REGULATORY GUIDANCEWater Supply 512/239-4691RG-245 FAX 512/239-6972(Rev. Nov. 2002)

SUBJECT: TCEQ Jurisdiction Over Utility Ratesand Service Policies

This guidance document discusses the TCEQ’s jurisdiction over the rates, service areas, and customer service policies ofdifferent types of utility service providers: cities, counties, districts, private or investor-owned utilities, and water supply orsewer service corporations.

When Do Utilities Come Under TCEQ Rate Jurisdiction?

Utility ServiceProvider

Retail Wholesale

Original AppellateNotice to

CustomersRequired?

Appellate

Affected County (within50 miles of US-Mexico

border)No Yes

10% customer protestYes* Yes

City - Inside city limits No No No Yes

City - Outside city limits No Yes10% customer protest Yes* Yes

County (other than an“affected county”) No No No Yes

District - Inside district NoYes

10% customer protest No Yes

District - Outsidedistrict No

Yes10% customer protest Yes* Yes

Exempt IOU Yes N/A Yes YesExempt WSC No

Yes10% customer protest

No Yes

IOU - Inside city

NoUnless citysurrenders

jurisdiction to

Yes10% customer protest or on

appeal from party to ratecase before city

Yes Yes

IOU - Outside city

Yes

Yes Yes

WSC NoYes

10% customer protest No Yes

* Notice must tell new rates, effective date and where to get additional information. The TCEQ recommends that the customer be told of the right to appeal.

No

TCEQ

TCEQ Rate Jurisdiction

Appendix D

32

Angelina & Neches River Authority Red River Authority of TexasKenith Reneau Telephone 936.632.7795 Ronald J. Glenn Telephone 940.723.8697General Manager Fax 936.632.2564 General Manager Fax 940.723.8531210 East Lufkin Ave. E-mail: info@anra.org 900 Eighth Street, Suite 5 E-mail: info@rra.dst.tx.usLufkin, TX 75901 http://www.anra.org Wichita Falls, TX 76301-6894 http://www.rra.dst.tx.us/

Brazos River Authority Sabine River AuthorityPhillip Ford Telephone 254.761.3100 Jerry Clark Telephone 409.746.2192General Manager Fax 254.761.3207 General Manager Fax 409.746.37804600 Cobbs Drive E-mail: info@brazos.org P.O. Box 579 E-mail: jclark@sra.dst.tx.usWaco, TX 76714 http://www.brazos.org Orange, TX 77630 http://www.sra.dst.tx.us/

Canadian River Municipal Water Authority San Antonio River AuthorityKent Satterwhite Telephone 806.865.3325 Gregory E. Rothe Telephone 210.227.1373General Manager Fax 806.865.3314 General Manager Fax 210.302.3694P.O. Box 9 E-mail: k s a t t e r w h i t e @ c r m w a . c o m P.O. Box 839980 E-mail: grothe@fara-tx.orgSanford, TX 79078 http://www.crmwa.com San Antonio, TX 78283-3980 http://www.sara-tx.org/

Colorado River Municipal Water District San Jacinto River AuthorityJohn W. Grant Telephone 915.267.6341 James R. Adams Telephone 936.447.5260General Manager Fax 915.267.3121 General Manager Fax 936.588.3043P.O. Box 869 E-mail: info@crmwd.org P.O. Box 329 E-mail: jim@sjra.netBig Spring, TX 79721-0869 http://www.crmwd.org Conroe, TX 77305 www.sjra.net

Central Colorado River Authority Sulphur River Basin AuthorityLaneal Maedgen Telephone 915.625.4398 Mike Burke Telephone 903.223.7887General Manager Administrator Fax 903.223.7988P.O. Box 964 P.O. Box 916 E-mail: mburkesrba@cableone.netColeman, TX 76834 Texarkana, TX 75504-0916 www.sulphurr.org

Guadalupe-Blanco River Authority Tarrant Regional Water DistrictBill West Telephone 830.379.5822 James Oliver Telephone 817.335.2491General Manager Fax 830.379.9718 General Manager Fax 817.877.5137933 East Court Street E-mail: bwest@gbra.org PO. Box 4508 E-mail: joliver@trwd.comSeguin, TX 78155 http://www.gbra.org Fort Worth, TX 76164

Lavaca Navidad River Authority Trinity River AuthorityJack Nelson Telephone 361.782.5229 Danny F. Vance Telephone 817.467.4343General Manager Fax 361.782.5310 General Manager Fax 817.465.0970P.O. Box 429 E-mail: LNRA@ykc.com P.O. Box 60 E-mail: vanced@trinityra.orgEdna, TX 77957 http://www.lnra.org/ Arlington, TX 76004 http://www.trinityra.org/

Lower Colorado River Authority Upper Colorado River AuthorityJoe Beal Telephone 512.473.3200 Melinda Bertelson Telephone 915.655.0565General Manager 800.776.5272 Public Relations Fax 915.655.1371P.O. Box 220 Fax 512.473.4066 108 N. Farr E-mail: ucra4@centex.netAustin, TX 78767-0220 E-mail: waterco@lcra.org San Angelo, TX 76903 http://www.ucra-tx.org/

http://www.lcra.org

Appendix ERiver Authority Contact Information Sheet

Continued on next page

Lower Neches Valley AuthorityRobert Stroder Telephone 409.892.4011General Manager Fax 409.898.2468P.O. Box 5117 E-mail: roberts@pernet.netBeaumont, TX 77726-5117 http://www.lnva.dst.tx.us

North Texas Municipal Water District Jim Parks Telephone 972.442.5405Executive Director Fax 972.442.5405P.O. Box 2408 E-mail: jparks@ntmwdWhilie, TX 75098

Northeast Texas Municipal Water District Walt Sears, Jr. Telephone 903.639.7538General Manager Fax 903.639.2208P.O. Box 955 E-mail: netmwd@aol.comHughes Springs, TX 75656-0955 www.netmwd.com

Nueces River AuthorityCon Mims Telephone 830.278.6810Executive Director Fax 830.278.2025P.O. Box 349 E-mail: cmimsnra@hillcoet.comUvalde, TX 78802 http://nueces-ra.tamucc.edu/

Upper Guadalupe River AuthorityJim Brown Telephone 830.896.5445General Manager Fax 830.257.2621125 Lehmann Drive, Suite 100 E-mail: ugraadmn@ugra.orgKerrville, TX 78028-5908 http://www.ugra.org/

Upper Neches River Municipal Water AuthorityTommy G. Mallory Telephone 903.876.2237General Manager Fax 903.876.5200P.O. Box 1965 E-mail: unrmwa@gower.nePalestine, TX 75802

West Central Texas Municipal Water DistrictDavid E. Bell Telephone 915.673.8254General Manager Fax 915.673.8272P.O. Box 2362 E-mail: belld@wctmwd.orgAbilene, Tx 79604 www.wctmwd.org

33

River Authority Contact Information Sheet, continued

Agricultural Operations, 1, 5Clean Water Act, 2Edwards Aquifer Authority, 8, 9, 13, 17Environmental Protection Agency (EPA), 1Fish, 1, 4Freshwater Supply Districts, 17, 23- 25Groundwater Availability Models (GAMs), 6Groundwater Conservation Districts (GCDs), 8-9, 10, 17, 25Harris-Galveston Coastal Subsidence District, 8-9, 14, 17Hearings, 3-4Municipal Utility Districts (MUDs), 17, 19, 23, 25Municipal Water Suppliers, 2, 17, 18Permits, 2, 4Pollution, 1, 5, 13Private Water Suppliers, 17, 22Rates, 3, 18, 22, 31Regional Water Planning Groups (RWPGs), 4, 8, 15-17River Authorities, 8, 11-12, 17, 32-33Rule of Capture, 9Senate Bill 1, 7, 9, 15-16Senate Bill 2, 7Silvicultural Operations, 1, 5Special Utility Districts, 17, 23, 25State Brush Control Program, 5State Water Plan, 6, 16Surface Water, 1, 2Texas Commission on Environmental Quality, 1- 4, 8-9, 11-12, 16- 19, 21-22, 24-27, 29, 31Texas Legislature, 1, 4, 7, 9, 11, 13-14, 23, 30Texas Natural Resources Information System (TNRIS), 6Texas Parks & Wildlife Commission, 4Texas Parks & Wildlife Department, 1, 4, 8, 17Texas Public Information Act, 22-23Texas Rural Water Association, 21Texas Soil Conservation Law, 5Texas State Soil & Water Conservation Board, 1, 5, 8, 17Texas Water Bank, 6Texas Water Code, 7, 9, 14, 19, 22- 24, 26Texas Water Development Board, 1, 6, 8, 10, 16, 17, 25Texas Water Trust, 6Water Availability Models (WAMs), 2Water Control and Improvement Districts, 17, 23, 25Water Finance, 6Water Suppliers, 2, 3, 11Water Supply Corporations, 17, 20-21, 25Water Quality, 1, 2, 4-6, 8, 11, 12Water Quality Management Plan Program, 5Water Quantity, 1, 2, 4, 8, 12Water Rights, 2, 4Water Utilities, 2, 3Wildlife, 1, 4

Index

34

Additional copies of this book may be obtained from theLone Star Chapter Sierra Club by calling 512-477-1729,or by emailing at lonestar.chapter@sierraclub.org

R