interim charges and 2013 legislative outlook, brian sledge

©Lloyd Gosselink Rochelle & Townsend, P.C.

Presented by: Brian L. Sledge

[email protected]

(512) 322-5839

816 Congress Avenue Suite 1900

Austin, Texas 78701 (512) 322-5800

(512) 472-0532 Fax www.lglawfirm.com

Interim Charges and

2013 Legislative Outlook

Texas Groundwater Summit

August 30, 2012


COVERED TOPICS

I. 82nd Session Statistics

II. Elections/Composition of Legislature

III. Big Ticket Items for 83rd

IV. Committees/ Interim Charges

V. Water-related Legislation for the 83rd Legislature


82nd Legislature Statistics

Bill Type Filed Passed

House Bills 3865 797

Senate Bills 1931 582

House Joint Resolutions 154 3

Senate Joint Resolutions 53 8

House Concurrent Resolutions 173 101

Senate Concurrent Resolutions 60 41

Totals 6236 1532


Current Composition of Legislature

Senate

19 Republicans

12 Democrats

2 Freshmen Members

House

101 Republicans

49 Democrats

35 Freshmen Members


2012 General Election: House Districts

Democrat Republican

23 70% Plus 34

13 60% - 70% 44

12 55% - 60% 16

48 Total 94

6 Swing (50-55%) 2


2012 General Election: Senate Districts

Democrat Republican

2 70% Plus 4 4 60% - 70% 15 4 55% - 60% 1**

10 Total 20

1 Swing (50 – 55%) 0

** Held by D


41 House Members Not Returning • Member Reason Member Reason

• Jose Aliseda Not running Jim Jackson Not running

• Rodney Anderson Not running Jim Landtroop Defeated in Primary Runoff

• Marva Beck Defeated in Primary Ken Legler Deceased

• Leo Berman Defeated in Primary Lanham Lyne Not running

• Fred Brown Resigned Jerry Madden Not running

• Erwin Cain Not running Barbara Mallory Caraway Running for Congress

• Joaquin Castro Running for Congress Sid Miller Defeated in Primary Runoff

• Warren Chisum Running for RCT Barbara Nash Defeated in Primary

• Wayne Christian Defeated in Primary Ken Paxton Running for Texas Senate

• Joe Driver Not running Aaron Pena Not running

• Rob Eissler Defeated in Primary Chente Quintanilla Not running

• Pete Gallego Running for Congress Charles Schwertner Running for Texas Senate

• Veronica Gonzales Not running Mark Shelton Running for Texas Senate

• Mike Hamilton Defeated in Primary Todd Smith Running for Texas Senate

• Kelly Hancock Running for Texas Senate Burt Solomons Not running

• Rick Hardcastle Not running Larry Taylor Running for Texas Senate

• Will Hartnett Not running Raul Torres Running for Texas Senate

• Scott Hochberg Not running Vicki Truitt Defeated in Primary

• Chuck Hopson Defeated in Primary Runoff Marc Veasey Running for Congress

• Charlie Howard Not running Randy Weber Running for Congress

Beverly Woolley Not running


11 House Chairmanship Losses

Hardcastle – Ag and Livestock

V. Gonzales - Border &

Intergovernmental Affairs

Madden - Corrections

Gallego - Criminal Jurisprudence

L. Taylor - Elections

Hopson – General Investigating

S. Miller – Homeland Security &

Public Safety

Jackson – Judiciary & Civil

Jurisprudence

Hamilton – Licensing & Admin.

Procedures

Eissler – Public Education

Pena - Technology


Will Half the House be Frosh and Sophs?

• 37 new House members in 2011

• At least 41 new House members in 2013

• 37 + 41 = 78

• 78 + x (where x = 5 seats in play in Nov.)= y (where y =

# of fresh. and sophomores in 2013)

• Aggie math? Yes, because 9 of the 37 are not returning,

and 3 of the 5 seats in play are also part of the 37.

• Also, 2 new senators in 2011; 5 or 6 new senators in

2013


83rd Legislature Big Ticket Items

• Budget

• Health Care/Medicaid

• Public Education/

School Funding

• Water Funding


House Environmental Regulation Committee

Chairman: Wayne Smith - Baytown

Vice Chair: Jessica Farrar - Houston

Membership: Jose Aliseda - Beeville

Lon Burnam - Forth Worth

Warren Chisum - Pampa

Kelly Hancock - Forth Worth

Ken Legler - Pasadena

Lanham Lyne - Wichita Falls

Ron Reynolds – Missouri City


HEReg 2011 Interim Charges

• Examine the impact on dam safety of provisions

passed in HB 2694 (82R) and develop

recommendations, if any, regarding risk to

downstream property and life.


House Energy Resources Committee

Chairman: Jim Keffer - Eastland

Vice Chair: Myra Crownover - Lake Dallas

Membership: Stefani Carter - Dallas

Tom Craddick - Midland

John Davis - Houston

Charlie Howard - Sugar Land

J.M. Lozano - Harlingen

Ralph Sheffield - Temple

Mark Strama - Austin


HERC 2011 Interim Charges • Examine state regulations governing oil and gas well construction

and integrity and pipeline safety and construction and determine

what changes should be made, if any, to ensure that the regulations

are adequate to protect the people of Texas and its natural

resources.

• Study and make recommendations on the current process for the

submission of well logs to the state by oil and gas operators.

Specifically, identify changes that could be made in statute or

agency administrative rules that would result in increased production

through a more efficient system of collecting well logs.


House Natural Resources Committee

Chairman: Allan Ritter - Nederland

Vice Chair: Tracy O. King - Eagle Pass

Membership: Marva Beck - Centerville

Brandon Creighton - Conroe

Chuck Hopson - Jacksonville

Jim Keffer - Granbury

Lyle Larson - San Antonio

Eddie Lucio III - San Benito

Trey Martinez Fischer - San Antonio

Doug Miller - New Braunfels

Walter "Four" Price - Amarillo


HNRC 2011 Interim Charges • Monitor the drought and the performance of state, regional, and local entities in

addressing it. Examine impact of the drought on the SWP, including an evaluation of

how well existing water resources can meet demand, need for additional funding

sources to implement SWP, and effectiveness of current drought planning and

management policies.

• Examine interplay of water and energy resources and needs in TX. Study impacts of

water use in energy production and exploration. Determine current and future water

needs of power generation and energy production, and evaluate options to develop

new or alternative supplies. Include an evaluation of current issues involving water

use for oil and gas production and related water quality issues.

• Evaluate the status of desalination projects in Texas. Include an evaluation of the

regulation of brackish groundwater and whether opportunities exist to facilitate better

utilization of this groundwater to meet future needs.

• Study ways to enhance incentives for water conservation in agricultural irrigation.


Senate Natural Resources Committee

Chairman: Troy Fraser – Horseshoe Bay

Vice Chair: Craig Estes – Wichita Falls

Membership: Bob Deuell - Greenville

Robert Duncan - Lubbock

Kevin Eltife - Tyler

Glenn Hegar, Jr. - Katy

Juan “Chuy” Hinojosa - Mission

Mike Jackson – La Porte

Robert Nichols – Jacksonville

Kel Seliger - Amarillo

Carlos Uresti – San Antonio


SNRC 2011 Interim Charges

• Review water resources and conservation measures

included in the State Water Plan to ensure that the

appropriate entities are implementing the plans and that

state and local authorities are enforcing requirements of

the plans. In addition, the committee should evaluate

methods to effectively enhance existing water resources

and promote water conservation measures across the

state at all times, not just in case of severe drought

conditions.



• Study impediments to implementation of SWP;

make recommendations to ensure sufficient

water for future generations. Specifically,

consider the following:

• Review opportunities to fully fund the SWP by

encouraging local project selection and

financing;



• Review TWDB loan application process and

prioritize the projects to ensure that the new

bonding authority is targeted to the most

pressing problems and those projects of highest

value identified in the State Water Plan;

• Consider the impact and complexity of the

water/energy/electricity connection;

• Review the progress made toward the

designation of unique reservoir sites;



• Review current and proposed federal initiatives

related to water resources;

• Review conservation measures across all

sectors of the economy, including education

about the benefits of conserved water and the

enforcement of those measures;

• Review all state and federal statutory barriers,

including the ability to move water around the

state and pipeline prohibitions;



• Consider groundwater regulation and determine

whether there is a need for modification of our

current regulatory structure; and

• Evaluate the progress of the state's goal of

promoting desalination projects across the state

(brackish and seawater), including their future

expansion to assist in meeting the state's water

needs.



• Evaluate alternatives to using SW or GW in generation

of electricity and extraction of fuels, including hydraulic

fracturing, dry-cooling, and the potential for desal and

other technologies for the reuse of brackish water.

Examine cost of alternatives in comparison to the

continued use of GW and SW including energy costs as

well as the cost of water transport and treatment.

Examine risks of continued future drought to the integrity

of Texas' electricity generation and fossil fuel extraction.



• Study and make recommendations on the

management of groundwater resources.

Specifically, consider the following:

• Consolidation of GCDs along major aquifer lines

in an effort to increase efficiency and enhance

responsible groundwater management;

• Effectiveness of single county and non-

contiguous groundwater conservation districts;



• Efficiency and effectiveness of varying

groundwater regulations and permitting

processes throughout the state, including the

adequate planning for withdrawals and the

development of DFCs, as compared to the

regulation provided to surface water resources;

• The relationship of local groundwater regulations

to the SWP and the regional planning process.



• Review and study the bundling of small water

and sewer systems by a single IOU and

consider the causes and regulatory issues

associated with rapidly escalating water and

sewer rates for Texans who live in

unincorporated and rural areas of the state.

Specifically, consider the following: (too many to

list, but transfer to PUC)



• Evaluate and monitor the production and the

development of science and best management

practices in the Barnett Shale and Eagle Ford

shale plays. Specifically, consider the following

(too many to list, but):

• The potential of new technologies to reduce

emissions and decrease water use.


2013 Legislative Issues • TWDB’s Recommendations:

– Develop long-term, sustainable method to fund SWP

– Provide mechanism to acquire reservoir sites

– Eliminate unreasonable restrictions on voluntary IBTs

– Remove TWDB from the DFC appeals process, except for

technical review and comment

– Require all retail public utilities to conduct water loss audits

annually, rather than every 5 years

– Designate additional unique sites for reservoir construction or

ecological value

– Funding for TWDB staff for science and finance programs


2013 Legislative Issues • Funding for the State Water Plan / Infrastructure

– Why should GCDs care?

– What are we talking about? Didn’t Prop 2 fix this?

• Deferrals

• Rate Buy-Down

• State Participation

– What are the options?


2013 Legislative Issues • Water and wastewater utilities rates and services

responsibilities transferred from TCEQ to PUC

• Related IOU reforms / CCN tweaks

• Streamlining of surface water rights permitting

requirements

• Funding EARIP


2013 Legislative Issues • Protection of brackish groundwater resources

• SAO review of GCDs

• Interstate efforts

• Emergency water plan

• Aquifer Storage and Recovery (ASR)


2013 Legislative Issues • Reuse of fraccing water

• Conservation (WCAC)

• Standardization of drought restrictions


QUESTIONS

Thank You For Coming

Brian L. Sledge

[email protected]

(512) 322-5839

interim charges and 2013 legislative outlook, brian sledge

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