85R13166 JXC-D     By: Larson H.B. No. 3987       A BILL TO BE ENTITLED   AN ACT   relating to the authority of the Texas Water Development Board to   use the state participation account of the water development fund   to provide financial assistance for the development of certain   facilities.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Subchapter E, Chapter 16, Water Code, is amended   by adding Section 16.145 to read as follows:          Sec. 16.145.  SEAWATER DESALINATION OR AQUIFER STORAGE AND   RECOVERY FACILITY. (a)  In addition to using the account for the   purposes described by Section 16.131, the board may use the state   participation account of the development fund to provide financial   assistance for the development of a seawater desalination or   aquifer storage and recovery facility, including associated intake   or distribution facilities, to meet existing or projected future   water needs.           (b)  Section 16.135 does not apply to the use of the state   participation account to acquire a facility or an interest in a   facility described by Subsection (a).           (c)  Before the board may acquire a facility or an interest   in a facility described by Subsection (a), the board must find   affirmatively that:                (1)  it is reasonable to expect that the state will   recover its investment in the facility; and                (2)  the public interest will be served by the   acquisition of the facility.           (d)  The board may not provide financial assistance under   this section for a facility unless the facility is included in the   state water plan.          (e)  The board shall establish a point system for   prioritizing facilities for which financial assistance is sought   from the board under this section. The system must include a   standard for the board to apply in determining whether a facility   qualifies for financial assistance at the time the application for   financial assistance is filed with the board.          (f)  The board may not issue more than $200 million in water   financial assistance bonds designated by the board as issued to   provide financial assistance for facilities under this section.          (g)  If the board does not provide financial assistance for a   facility under this section before September 1, 2022, the board may   not provide financial assistance for any facility under this   section after that date.          SECTION 2.  Section 16.182, Water Code, is amended to read as   follows:          Sec. 16.182.  PERMIT REQUIRED. (a) Before the board grants   the application to buy, receive, or lease the facilities, the   applicant shall first secure a permit for water use from the   commission. If the facilities are to be leased, the permit may be   for a term of years.          (b)  The board may assist the applicant with securing a   permit for a facility described by Section 16.145.          SECTION 3.  Sections 17.957(b) and (c), Water Code, are   amended to read as follows:          (b)  The state participation account is composed of:                (1)  money and assets attributable to water financial   assistance bonds designated by the board as issued for projects   described in Sections [Section] 16.131 and 16.145;                (2)  money from the sale, transfer, or lease of a   project described in Subdivision (1) that was acquired,   constructed, reconstructed, developed, or enlarged with money from   the state participation account;                (3)  payments received under a bond enhancement   agreement with respect to water financial assistance bonds   designated by the board as issued for projects described in   Sections [Section] 16.131 and 16.145;                (4)  investment income earned on money on deposit in   the state participation account;                (5)  money disbursed to the fund from the state water   implementation fund for Texas as authorized by Section 15.434; and                (6)  any other funds, regardless of their source, that   the board directs be deposited to the credit of the state   participation account.          (c)  Money on deposit in the state participation account may   be used by the board for projects described in Sections [Section]   16.131 and 16.145 in the manner that the board determines necessary   for the administration of the fund.          SECTION 4.  This Act takes effect September 1, 2017.