First Petition

Staff Report & Agenda Item Details

I. First Petition B. Proposed New Rule (requiring District to award funds from a dedicated mitigation fund on specific applied-for requests) Summary of Proposed Rule § 36.207 (Use of Fees) (amended by HB 3059) Summary of Current MPGCD Rules and Policy mandates export fees be deposited into a Mitigation Fund, and that the fund be used for limited, listed purposes… requires that Mitigation Fund be supplemented and maximized by “resources already available to it [MPGCD]” contemplates using [≤3% increase] for broader purposes than listed in § 36.207(b) mandates that MPGCD disburse funds from Mitigation Fund to qualified applicants (permit holders) who demonstrate a significant effect from export export fees may be used for broad purposes under § 36.207(a) no statutory requirement though § 36.207(a) would authorize earmarking or creating a fund for mitigation § 36.207(b) requires that GCDs earmark “amount that an export fee is increased under Section 36.122(e-1)” [≤3% increase] for purposes listed in statute silent – nothing express in the statute; excludes exempt users export fees are used to fund budget for broad purposes authorized by statute MPGCD has authority to use its tax and export-fee revenues for mitigation and related research whether or not it has a fund—each year anticipated expenses could be budgeted mandates earmarking [≤3% increase] for purposes listed in statute MPGCD has authority to use its tax and export-fee revenues for mitigation; it is recommended that any landowner-specific disbursement be developed to equitably consider impacts and equitably disburse funds It’s a mixed science-policy question whether effects will be unreasonable and, if so, whether to start setting aside $$ for future mitigation. Other districts and stakeholders are estimating potential effects (e.g., Gonzales County UWCD, Guadalupe County GCD, Brazos Valley GCD, Post Oak Savannah GCD) 3 of 7 PREPARED BY LLOYD GOSSELINK, P.C. Tex. Water Code § 36.207 (amendments by HB 3059 shown in underlined text): “(a) A district may use funds obtained from administrative, production, or export fees collected under a special law governing the district or this chapter for any purpose consistent with the district’s approved management plan, including, without limitation, making grants, loans, or contractual payments to achieve, facilitate, or expedite reductions in groundwater pumping or the development or distribution of alternative water supplies or to maintain the operability of wells significantly affected by groundwater development to allow for the highest practicable level of groundwater production while achieving the desired future conditions established under Section 36.108. (b) A district may use funds obtained from the amount that an export fee is increased under Section 36.122(e-1) on or after January 1, 2024, only for costs related to assessing and addressing impacts associated with groundwater development, including: (1) maintaining operability of wells significantly affected by groundwater development; (2) developing or distributing alternative water supplies; and (3) conducting aquifer monitoring, data collection, and aquifer science.” 4 of 7 PREPARED BY LLOYD GOSSELINK, P.C.