The Newsletter of the Highland Lakes Group

Water Matters

Vol. 7, No. 1
Jan. 2000

Sunset Review of the Water Development Board

Sunset is the process of regularly assessing the continuing need for a state agency to exist. The sunset process sets a date on which an agency will be abolished unless legislation is passed to continue its functions.

Sunset is guided by a 10-member commission appointed by the Lieutenant Governor and the Speaker of the House. A staff assists the Commission by providing an assessment of each agency’s programs, from which conclusions may be drawn about program necessity and workability.

Agencies subject to Sunset are reviewed every 12 years, and in this biennium, 25 agencies will undergo Sunset review. These include each of the natural resource agencies, including Texas Natural Resources Conservation Commission (TNRCC), Texas Parks & Wildlife (TP&W) and Texas Water Development Board (TWDB). 

For decades, TWDB has held the view that there is plenty of water in Texas; it is just in the wrong places. In other words, given enough pipelines and canals, all of Texas’ water problems could be solved by transferring water from those river basins with “surplus” water to those basins needing additional water to fuel their economic growth.

In the 1960’s, the Texas Basins Project proposed an elaborate scheme of water transfers from as far away as the Mississippi River to West Texas and from the Red River to the Texas Gulf Coast. The scheme was defeated at the polls, and at the same time, the legislature placed some curbs on the water planners to avoid another Texas Basins fiasco in the future. 

One of these was section 16.052 of the water code, which prohibited the TWDB from considering inter-basin water transfers in the state water plan. Another was the provision, both in the Texas Constitution and in the Water Code, that state funds could not be used to finance water projects involving inter-basin transfers.TWDB’s two main functions are water planning and water project financing. Although TWDB staff continued to believe that water transfers were the answer to the state’s water problems, these state laws prohibited TWDB from involving themselves in water transfer projects either in the planning or the financing functions of the agency.

In 1991, the Water Development Board staff, presumably with the knowledge and approval of the board members, decided to free themselves of these restrictions. The TWDB wrote legislation in 1991 (SB1059) which surreptitiously repealed sec. 16.052 without the knowledge of more than one or two members of the legislature, without publicity, without testimony in committees and without debate on the floor of either legislative body. Having succeeded in removing the legal restriction on their consideration of inter-basin water transfers (IBT’s) in state water planning, they attempted, unsuccessfully, to remove the other restriction on state funding for IBT’s in the 1997 session of the legislature.

Highland Lakes Group directors voted to send the following letter to the Sunset Commission suggesting that TWDB be phased out and its programs transferred to other state agencies. The reason is that the HLG board believes that TWDB on at least two occasions introduced legislation which was intended to further its own agenda rather than that of the public, and did so through “stealth” legislation, circumventing the process of legislative and public scrutiny intended by the Texas Constitution.

 
Texas Sunset Commission
P.O. Box 13066
Austin, TX 78711
Dear Mr. Longley:
I am writing on behalf of the board of directors of Highland Lakes Group to offer input to the Sunset review of the Texas Water Development Board. The HLG board has voted to ask that the Sunset Commission phase out the TWDB as a separate agency and that the functions of the TWDB be shifted to the TNRCC and to the Comptrollers Office. 
Our reason for this recommendation is that the TWDB has repeatedly circumvented the legislative process in order to change the Texas Water Code and the Texas Constitution in order to further its own agenda at the expense of the interests of the citizens of Texas.
The Water Development Board has earned a reputation for the use of “stealth” legislation. Two examples of this practice, one successful and one unsuccessful, are described below.

Following the defeat of the Texas Basins Project at the polls in the 1960’s, several provisions were placed in the Water Code and the Constitution by the Legislature in order to protect against another such project intended to move water around the state. These were Section 16.052 of the Water Code which prohibited the consideration of inter-basin water transfers in the Texas Water Plan, and another prohibition of the use of state funds for water projects involving IBT’s. The latter provision was echoed in the Texas Constitution (article 49-d). 

In spite of its rejection by the voters and the Legislature, the state water planners continued to hold to the proposition that “there is plenty of water in Texas; it is just in the wrong place.” Demands for new water sources by the growing cities of South and South Central Texas apparently made the TWDB decide that these restrictions on inter-basin transfers had to go.

Apparently fearful of facing the legislature and the voters with any proposal to remove the safeguards for river basins having water available, TWDB resorted to “stealth” legislation. Choosing the most congested time of the 72nd legislative session, Senator Sims held a hearing on SB 1059, which was drafted by the TWDB. SB 1059 appeared on the surface to clean up a number of routine administrative matters at the TWDB. Its ten sections included deletion of obsolete position titles, changes in definitions, and other routine changes to the Water Code. 

In Section 10 of the bill, two sections of the Water Code were repealed. One of these, 6.182, had created several jobs no longer used by TWDB, and its repeal was another routine administrative matter. The other, 16.052, was the provision blocking the TWDB from the consideration of IBT’s in their water planning.

SB 1059 was one of more than a dozen bills heard by the Senate Natural Resources Committee on April 24, 1991 at its 2:00 pm meeting in the Lieutenant Governor’s committee room. The bill’s sponsor, Chairman Sims, relinquished the chair and was recognized to explain the bill. Senator Sims’ said, “The bill clarifies the role of the TWDB in administering its financial assistance programs. That’s basically what it does.”

The Chair then recognized Jack Fickessen, then Operations Manager for the TWDB. Fickessen explained the purpose of SB1059. He said, “This bill tries to bring the Water Code more in line with where the Water Development Board is today.” In other words, the bill was designed to bring state law more in line with agency thinking.

This might come as a surprise to those who thought that the Legislature passed laws which set state water policy, and the water agencies executed those policies. Some might think that Mr. Fickessen’s statement to the contrary, made in front of a legislative committee, could give arrogance a bad name.

Like Senator Sims, Mr. Fickessen neglected to inform the committee that the bill contained the most important change in the Texas Water Code in several decades, that is the repeal of the ban on the consideration of IBT’s in the state water plans.

So, SB1059 passed both houses of the legislature as part of the consent agenda and was signed into law, hidden from the view of the public, of the press and of those legislators whose districts would be damaged by the change, with no public hearings and no floor debate. The Trans-Texas Water Project, that proposed to solve the water supply problems of several of the large cities of South Texas by interbasin water transfers, was kicked off the following year.

There was considerable pride on the part of the TWDB in the repeal of sec. 16.052. One of the senior TWDB staffers who was involved in the scam, said several years later, “We hid it.”

With the surreptitious removal of the statutory ban on IBT’s in state water plans, the TWDB was emboldened to try to remove the other burr under its saddle, the provisions in the water code and Constitution prohibiting the use of state funds for water projects involving IBT’s. It is one thing to make an under-the-table change in the Water Code, and something else entirely to make a secret change in the Constitution, since Constitutional amendments require the approval of not only the Legislature but also the voters. Nevertheless, one senior staffer of TWDB said at a Trans-Texas meeting in San Antonio that section 49-d-3-(b) of the Constitution might “have to go.”

So, when SJR17 appeared on a committee agenda containing changes to that same section of the Constitution, volunteers from Highland Lakes Group gave the bill careful scrutiny. SJR17 offered an apparently reasonable and desirable change to the Texas Constitution. State funds were formerly dispensed for various purposes from individual funds earmarked for water supply, water quality, research, etc. SJR17 proposed to consolidate all of these individual funds into a single fund. 

The problem was that each of the former funds was subject to the constitutional provision (49-d-3-(b)) which prohibited the use of state funds for water projects if an IBT were involved. The proposed new fund was not subject to that provision. So, while section 49-d-3-(b) would remain inthe Constitution, the funds from which TWDB would dispense grants and loans would no longer be subject to it. 

By the time that Highland Lakes Group brought this to light, SJR17 had already passed the Senate and the House Natural Resources Committee and was due for a House floor vote. The Texas Legislative Council agreed that the proposed change would make the new fund exempt from 49-d-3-(b), Representative Terry Keel drafted an amendment which would maintain the status quo by bringing the new fund under section 49-d-3-(b), and the amendment was included in the final version of the bill.

So, the TWDB tried another end run around the Legislature and the voters through another piece of “stealth” legislation, but this time unsuccessfully. 

There is no doubt that, given the longstanding inclination of TWDB toward attempting to change Texas water law through chicanery and subterfuge, that another sub rosa attempt will be made to remove unwanted restrictions on its operations. 

The Legislature brought the latest brain child of the TWDB, Trans-Texas, to a premature end in the 1997 legislative session by passing SB1. SB1 removed the TWDB from direct involvement in the Texas water planning process and replaced it with sixteen regional water planning groups. Senator Kenneth Armbrister, speaking to the Lower Colorado Regional Water Planning Group on August 12, 1999, said, “…the State has provided us with regions under Senate Bill 1, and it was done for a very particular purpose, …and that was to break the hold that a single bureaucracy in Austin had over water issues, water planning.”

HLG directors propose to complete that separation of TWDB and its culture of legislative subterfuge from the water planning and financing process in Texas. The remaining functions of the TWDB could be absorbed as departments of TNRCC, or the water project financing task could be taken over by the state Comptroller’s office.

This letter expresses the opinion of the six directors listed below, but not necessarily of the member organizations of Highland Lakes Group. HLG members will be shown a copy of this letter in the HLG newsletter and asked to contact you directly if they have an opinion one way or the other on this subject.

If we can contribute testimony at a public hearing as part of this review process, please call on us.

Sincerely,
 
Cole Rowland Rusty Allen Jim Barho Bob Benton Leon Seidl Bob Vann
President Director Director Director Director Director

VNA Editor's Note: See VNA's letter in support of this position at: http://www.volente.org/hlg/sunset021500.html

Regional Water Planning Groups to Meet
Senate Bill 1, passed by the legislature in 1997, phased out the Trans-Texas water project. In its place, sixteen regional water planning groups were set up around the state, each responsible for producing a water resources plan for its area by the Fall of 2000. Although each regional group will produce a separate plan for its own area, a regional planning group may have an interest outside its own boundaries. In those cases, the two regions involved are expected to meet and discuss whatever interests one has within the boundaries of the other. If the two regional planning groups can reach some agreement about their inter-regional interests, they are encouraged to do so. Otherwise, the Texas Water Development Board is responsible for resolving any inter-regional conflicts that have not been resolved by the regions themselves.
An example is the interest that the San Antonio water planners have in the Colorado River basin. The South Central Regional Water Planning Group (SCRWPG), based in San Antonio, is considering some 58 alternative sources of water for the additional water supplies it expects to need by the year 2050. Of these, 12 are located in the Colorado River basin. Included among the twelve are pipelines to Lake Travis, as well as to the river at Columbus and Bay City. A reservoir on the Colorado River at Shaw’s Bend, off-channel dams in the lower Colorado basin, and a new well field in Bastrop County are also being considered. 
The two regional planning groups, Lower Colorado River and San Antonio, plan to meet jointly on February 23, 2000, at Aquarena Springs in San Marcos. On the agenda will be a discussion of those water supply alternatives being considered by the San Antonio planning group that are within the Colorado basin.
Lunch will be provided by the Barton Springs - Edwards Aquifer Underground Conservation District. Check the HLG web site (www.hlgrp.org) for possible changes in the time or place of the meeting. 
If you would like to hear what the San Antonio water planners have in store for us, and wish to express your opinion about the subject, plan to be there.


LCRWPG Finds Irrigation Water Deficit
The Lower Colorado Regional Water Planning Group (LCRWPG) is in the process of preparing a water resources plan for the Colorado basin, to be completed late in 2000. The planning procedure involves several steps, including population and water demand projections for political entities and water suppliers, assessment of available water supplies, and a comparison of demand and supply. The supply and demand comparison for the Colorado River lower basin has shown that the only major supply problem in the basin is that of maintaining an adequate supply of water for rice irrigation.
The tasks remaining to be done by the LCRWPG are to evaluate strategies that would relieve this projected irrigation water shortage. Alternatives include off-channel dams in the lower basin designed to catch flood water which would otherwise be spilled into Matagorda Bay, new wells in the Carrizo or Gulf Coast Aquifers, and more rigorous conservation measures in the production of rice. A longer term measure would be the development of new strains of rice which would require less water. 
Senate Bill 1 allows the regional planning groups to designate unique stream segments which would presumably be avoided as sites for future water development projects. Some 150 persons appeared at a public hearing on this subject held in Columbus on November 10, 1999. There was great concern that any new off-channel dams or a new dam at Shaw’s Bend would be detrimental to the agricultural interests in the area. The threat of San Antonio building these structures seemed particularly repugnant to the group. One landowner said, “I don’t want to give up my land so that Shamu can have more water in his tub.”
The LCRWPG voted to take no action on the subject of unique stream segments. However, various state agencies, organizations or individuals may nominate such sites, which would then be considered by the legislature.
The LCRWPG is also authorized by SB1 to make recommendations to the legislature about suggested changes to the Texas Water Code or parts of the Constitution pertaining to water resources. A subcommittee will propose several suggested changes in water law for consideration by the planning group as a whole in early 2000.


Austin Boat Show
For several years, the Austin Boat & Fishing Show has provided complimentary booth space to Highland Lakes Group at its annual show in January. This year, the Austin Boat & Fishing Show will be held January 27 through 30 at the Austin Convention Center. Show hours are as follows:
Thursday, Jan. 27 - 4pm - 10pm
Friday, Jan 28- 12 noon - 10pm
Saturday, Jan. 29- 9am - 10pm
Sunday, Jan. 30- 9am - 6pm
The Highland Lakes Group booth will feature a drawing for free restaurant meals at Iguana Grill and Waterloo Ice House & Backyard Bar-B-Que. Booth visitors will be asked to consider participating in Randalls “Good Neighbor” program by having HLG’s number 708 coded in their Randalls Remarkable Card. 

Randalls contributes 1% of all food and pharmaceutical purchases to the non-profit group whose number is coded in the shopper’s Remarkable Card. There is no cost to the customer. This program has been an important source of funding for Highland Lakes Group, which publishes this newsletter with dues and donations only.

If you, or someone you know, is a Randalls shopper, please encourage them to take their Remarkable Card to any Randalls checker and ask to have it coded with the HLG number, 708. A card can have numbers of as many as five non-profit organizations coded into it. 

See you at the boat show.


New HLG Web Site
Highland Lakes Group has recently launched a new web site, which can be found on the internet at <www.hlgrp.org/> .The new site has several purposes. First, to keep member organizations informed about events that are important to lake residents. Second, it will provide an easy way for prospective new members to become acquainted with HLG, and to fill out an application electronically if they so desire.
Finally, the site will contain one or more articles from the current issue of Water Matters newsletter. 
Log on to our new site and find out:
·What is Highland Lakes Group (frequently asked questions)?
·How do I become a member of Highland Lakes Group?
·Who are the officers and directors of HLG?

·What sort of articles will I find if I subscribe to Water Matters newsletter?

·What are the top ten reasons that Highland Lakes residents should support inter-basin water transfers?

·What was a recent “Water Hustlers” cartoon from the newsletter?

·What is the themesong of Highland Lakes Group?

·What is LakePAC ? 

There are also links to other Highland Lakes web sites. 

The new site is still “under construction,” so bear with us while we try to unravel the mysteries of the Internet.


TWDB Study Says “No Hose”
Interbasin water transfers (IBT’s) are normally considered the answer to all of the state’s water worries at the Texas Water Development Board (TWDB). So, it is newsworthy when anything published by the TWDB questions the desirability of an IBT. A study published by Resource Economics, Inc. of Austin, and titled, “Third Party Compensation for Interbasin Transfers of Water in Texas”, was commissioned by TWDB and published in July, 1999.
Senate Bill 1 provides for compensation of the donor basin in the case of water transfers. The study looks into how that might be done in practice, and what precedents already exist. 
The study starts out with the premise that interbasin water transfers are necessary and desirable. The report says in the first paragraph that the junior water rights provision in SB1, that protects river basins against predatory strikes by distant cities, is out-dated. The report concludes, “The current conditions in Texas suggest that (water) transfers be encouraged, rather than discour>

Transfer interrupted!

ion.”
All of this is politically correct according to TWDB doctrine. However, in mid-report three “prospective” water transfers in Texas are described; East Texas to Houston, Lower Colorado to Corpus Christi, and LCRA to San Antonio. The third of these is known colloquially as the San Antone Hose. 
The report estimates benefits and costs from each example, including the effects on the two local economies and destruction of property values of lake residents and businesses. A “special study” of housing values is quoted which projects the loss of total real estate values on Lake Travis, after the transfer of 100,000 acre-ft. of water each year to San Antonio, at $531,000 in 2010 and $2.1 million in 2050. This may be a mis-print, because anyone living on Lake Travis can probably think of dozens of homes on the lake which would lose those amounts of value for an individual home should San Antonio suck 100,000 acre-ft. of water each year from Lake Travis.

The conclusion of the report is that the San Antone Hose will create “net benefits” for the two regions of a negative $7.1 million annually, with a net present value of $-135.6 million. “The results show that the net regional income will be negative in all years, and therefore the project should not be built.”




Water Matters is published on an irregular schedule for members of the Highland Lakes Group and contributors to LakePAC at:
711 Mariner
Lakeway, Texas 78734-4342

Phone: 512/261-5922
FAX: 512/261-5483
E-mail:
cole_rowland@hotmail.com

Web Site:
http://www.hlgrp.org/

Inquires as to membership in Highland Lakes Group or a subscription to this newsletter should be directed to the above address.

This web version of Water Matters is reproduced with the permission of HLG. It is produced in html format by Lonnie Moore of Volente Neighborhood Association (VNA). VNA is a full member of Highland Lakes Group and recommends all visitors to this site support Highland Lakes Group.



HLG Directors:

Area directors Jim Barho - Burnet Co.; Leon Seidl - Llano Co.; Cole Rowland - Travis Co.

At-large directors -
Rusty Allen
Bob Benton
Bob Vann



Earlier Newsletters:
August 1999 Water Matters  http://www.volente.org/hlg/matters0899.html
October 1999 Water Matters http://www.volente.org/hlg/matters1099.html


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