TITLE 31. NATURAL RESOURCES AND CONSERVATION

PART 4. SCHOOL LAND BOARD

CHAPTER 155. LAND RESOURCES

SUBCHAPTER A. COASTAL PUBLIC LANDS

31 TAC §155.15

The School Land Board (Board) is adopting amendments to §155.15 relating to rent and fees for residential, commercial, and industrial activities on coastal public lands. The amendments include changes to the text of §155.15 and to the related graphics in section 155.15(b)(1)(C)(i), 155.15(b)(1)(C)(ii), 155.15(b)(1)(C)(iii), and 155.15(b)(1)(C)(iv). The amendments were published in the June 14, 2024, edition of the Texas Register (49 TexReg 4418). No comments were received, and the text is being adopted as previously published, without changes.

BACKGROUND AND JUSTIFICATION

Under Texas Natural Resources Code (TNRC) Chapter 33, the Board has the authority to grant certain interests in coastal public land, including leases for public purposes, easements connected with littoral ownership, cabin permits, and other interests for any purpose that the Board determines is in the best interest of the State. The Board may also prescribe fees and adopt rules for granting leases, easements, permits, and other interests in or rights to use coastal public land. Leases and easements may authorize structures such as breakwaters, jetties, and piers, as well as for open encumbrances, dredging, and fill placement.

Currently, the rent and fees for many coastal easements and leases issued by the Board are tied to the appraised market value of the adjacent littoral property. Recently, market values have increased at an unprecedented rate, resulting in rate increases that are unreasonable and often inconsistent with market conditions. The Board is adopting these amendments due to the rapid increase in real estate appraised values during the past five years. The amendments will ensure that rent and fees on the Texas coast are reasonable and more accurately reflect market value. In addition, some residential rent and fee rates are being revised in consideration of the environmental benefits of certain structures.

Rent and fees for residential coastal easements and leases are set based on the specifications in the graphics attached to §155.15 in subsections §155.15(b)(1)(C)(i), §155.15(b)(1)(C)(ii), and §155.15(b)(1)(C)(iii). The Board is adopting a decrease in the annual rent for breakwaters, jetties, and groins from 20 cents per square foot to 3 cents per square foot. The rent decrease is being adopted in consideration of the benefit these structures provide in the coastal environment, including the creation of habitat for small fish, crabs, and other animals. They also provide a hard substrate for oysters, barnacles, mussels, and other sessile animals. In addition, when breakwaters are a component of a living shoreline, which is an alternative to traditional shoreline armoring that incorporates nature-based features, no rent is assessed. Reducing the rents for all breakwaters is appropriate since they serve similar environmentally beneficial functions even if they are not part of a living shoreline. In addition, reducing rent may encourage more of these structures, adding environmental protection and coastal resiliency, eventually increasing revenue to the PSF.

The Board is also adopting an amendment that adjusts the fees for fill for residential use to address the recent unreasonably high rates caused by the rising assessed value of adjacent littoral property. This amendment will result in residential fill fees of either $0.10 per square foot, or an amount based on the fill formula, whichever is greater, as the baseline for annual rent, not to exceed $1.00 per square foot. Annual rent below $1.00 per square foot will escalate in accordance with the terms currently in the rule, not to exceed $1.00 per square foot. This rate also aligns with the new rate for commercial fill, which will start at a $1.00 per square foot and increase based on the Consumer Price Index for All Urban Consumers (CPI-U). In addition, the phrase "no minimum rent" is being changed to "no rent" for clarity in all of the graphics.

The Board is also adopting changes to the Commercial and Industrial Activity rent and fees graphic that include the elimination of the basin formula, which ties rental fees to the assessed value of the adjacent littoral property. In its place, the Board adopts a component formula, which charges a separate rental fee to each component of the leased premises, standardizing the fees for most commercial leases and mitigating the impact of rising property values.

In addition, the Board is adopting an amendment that would require an update to the published fee schedule every five years. The fee schedule update would be based on the Consumer Price Index for All Urban Consumers (CPI-U). Rent and fees for Commercial and Industrial Activity will be based on the updated fee schedule in effect at the time of the execution of a new agreement or a renewal. The adopted changes will result in reduced revenue for the Permanent School Fund (PSF) initially; however, updating the fee schedule based on the CPI-U every five years ensures fees will adjust to inflation over time, stabilizing and potentially increasing long-term revenue. Standardizing fee calculations and aligning them with market conditions also attracts consistent lessees, enhancing occupancy rates and lease income. The lower initial rent benefits the public by making coastal commercial leases more affordable, promoting economic activity and job creation, and supporting local economies. Eliminating the basin formula and standardizing fee structures makes the rent and fees for commercial industries more predictable and transparent.

Other adopted adjustments aim to ensure consistent rates across all coastal commercial leases. These include the removal of the Submerged Land Discount, which is linked to the Basin Formula, setting a uniform fill rate at $1.00 per square foot, and decreasing the fee for Clear Lake Marina from $4.00 to $3.00 per linear foot of boatslip to align with the rates charged in other coastal counties. The adopted amendment standardizes fee structures across different uses of submerged lands and aligns them with market conditions and regulatory standards, thereby ensuring consistent, predictable, and transparent pricing for coastal commercial leases.

The graphic attached to §155.15(b)(1)(C)(iv) lists the fees for commercial and industrial activity. The adopted amended graphic has been edited with the above changes and also to reflect a previously implemented rate increase from $0.20 per square foot to $0.32 per square foot of proposed fill. This increase was approved in 2022 but was inadvertently omitted from the graphic due to a scrivener's error. Footnote 3 is also being updated to remove language about whether existing fill was placed under the authority of a permit since it is no longer applicable. The phrase "no minimum rent" is being changed to "no rent" for clarity in all of the attached graphics. The rule is also being revised to make the text consistent with the amendments to the rent and fees graphics and to make minor administrative, non-substantive edits to the text of the rule.

COMMENTS BY THE PUBLIC

The GLO did not receive any comments on the amendments.

STATUTORY AUTHORITY

The amendments to §155.15 are adopted under TNRC §33.063 relating to the Board's authority to charge fees for leases, easements, permits, and other interests in or rights to use coastal public land, and §33.064 providing that the Board may adopt rules necessary to carry out the provisions of TNRC Chapter 33. TNRC §§33.101-33.136 are affected by the amendments. The adopted amendments affect no other code, article, or statute. The Board certifies that the amendments have been reviewed by legal counsel and found to be within the Board's authority to adopt.

The agency certifies that legal counsel has reviewed the adoption and found it to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on November 6, 2024.

TRD-202405353

Jennifer Jones

Chief Clerk, Deputy Land Commissioner

School Land Board

Effective date: November 26, 2024

Proposal publication date: June 14, 2024

For further information, please call: (512) 475-1859


PART 10. TEXAS WATER DEVELOPMENT BOARD

CHAPTER 363. FINANCIAL ASSISTANCE PROGRAMS

The Texas Water Development Board (TWDB) adopts 31 Texas Administrative Code §§363.2, 363.12, 363.13, 363.14, 363.17, 363.19, 363.33, and 363.41.

Sections 363.2, 363.12, 363.13, 363.14, 363.17, 363.19, 363.33, and 363.41 are adopted without changes as published in the August 30, 2024, issue of the Texas Register (49 TexReg 6709) and will not be republished. A correction of error for Section 363.33(a)(3) was published in the In Addition section of the September 27, 2024, issue of the Texas Register (49 TexReg 7995).

BACKGROUND AND SUMMARY OF THE FACTUAL BASIS FOR THE ADOPTED AMENDMENT.

The adopted amendments to 31 TAC Chapter 363, containing the agency's rules related to the Financial Assistance Programs, implements legislative changes from Senate Bill (SB) 28, SB 30, and SJR 75 by modernizing the language, providing consistency with TWDB's general financial assistance programs' rules, and clarifying requirements for borrowers for the water loan assistance program.

The adopted amendments implement legislation and clarify the method in which interest rates will be set for loans when the source of funding is other than bond proceeds.

In addition, the 88th Texas Legislature enacted House Bill 1565, amending Tex. Water Code §17.276(d), Action on Application, to add new subsections relating to TWDB's review and approval or disapproval plans and specifications for all wastewater projects funded by the TWDB. The new legislation allows the Board to adopt, by rule, an alternative standard of review and approval of design criteria for plans and specifications for sewage collection, treatment, and disposal systems.

This rulemaking includes substantive and non-substantive changes and updates to make this chapter more consistent with TWDB rules and to clarify requirements for TWDB borrowers.

SECTION BY SECTION DISCUSSION OF ADOPTED AMENDMENTS.

Section 363.2. Definitions of Terms.

The adopted amendment adds the definition of community water system consistent with 30 TAC Chapter 290, Subchapter D.

The adopted amendment adds the definition of rural political subdivision to reflect the amendment of §365.2(6) and includes as a rural political subdivision those municipalities with a population of 10,000 or less.

The adopted amendment adds the definition of risk-based review to implement HB 1565. The adopted amendment allows the use of different standards of review and approval of design criteria for plans and specifications for sewage collection, treatment, and disposal systems.

The adopted amendment adds the definition WIF for the water infrastructure fund for Texas.

The adopted amendment adds the definition WLAF for the water loan assistance fund for Texas.

The remaining sections in §363.2 are renumbered to accommodate the addition of §363.32(9).

Section 363.12. General, Legal, and Fiscal Information.

The adopted amendment updates the financial requirements for applicants receiving funding to make the requirements consistent with other TWDB rules.

Section 363.13. Preliminary Engineering Feasibility Report.

The adopted amendment adds authority for the board to waive or modify the requirements of the preliminary engineering feasibility report for programs or categories of applications for the agency's financial assistance programs.

Section 363.14. Environmental Assessment.

The adopted amendment adds authority for the board to waive or modify the requirements of the environmental assessment for programs or categories of applications for the agency's financial assistance programs.

Section 363.17. Grants from Water Loan Assistance Fund.

The adopted amendment adds water conservation projects as eligible projects to receive grant funds from the water loan assistance fund and adds the definition of conservation for those projects.

The adopted amendment updates outdated references to other titles and sections of the TAC and modernizes the rule language.

Section 363.19. Priority of Projects.

The adopted amendment clarifies that this section only applies to water infrastructure fund projects.

Section 363.33. Interest Rates for Loans and Purchase of Board's Interest in State Participation and Board Participation Projects.

The adopted amendments update the title of the rule, reflecting that the rule is for setting interest rates for certain of the Board's state financial assistance programs, modernize the rule language, and update how the Board sets interest rates for financial assistance to better align with the process used for other programs offered by the Board.

Section 363.41. Engineering Design Approvals.

The adopted amendment seeks to authorize the risk-based review method of review of plans, specifications, and related documents for certain sewage collection, treatment, and disposal system projects that are compliant with existing state statutes and good public health engineering practices pursuant to §17.276(d).

REGULATORY IMPACT ANALYSIS DETERMINATION (Texas Government Code §2001.0225)

The TWDB reviewed the rulemaking in light of the regulatory analysis requirements of Texas Government Code §2001.0225 and determined that the rulemaking is not subject to Texas Government Code §2001.0225, because it does not meet the definition of a "major environmental rule" as defined in the Administrative Procedure Act. A "major environmental rule" is defined as a rule with the specific intent to protect the environment or reduce risks to human health from environmental exposure, a rule that may adversely affect in a material way the economy or a sector of the economy, productivity, competition, jobs, the environment, or the public health and safety of the state or a sector of the state. The intent of the rulemaking is to clarify eligibility, requirements, and methodology for TWDB borrowers. Texas Government Code §2001.0225 still would not apply to this rulemaking because Texas Government Code §2001.0225 only applies to a major environmental rule, the result of which is to: (1) exceed a standard set by federal law, unless the rule is specifically required by state law; (2) exceed an express requirement of state law, unless the rule is specifically required by federal law; (3) exceed a requirement of a delegation agreement or contract between the state and an agency or representative of the federal government to implement a state and federal program; or (4) adopt a rule solely under the general powers of the agency instead of under a specific state law. This rulemaking does not meet any of these four applicability criteria because it: (1) does not exceed any federal law; (2) does not exceed an express requirement of state law; (3) does not exceed a requirement of a delegation agreement or contract between the state and an agency or representative of the federal government to implement a state and federal program; and (4) is not adopted solely under the general powers of the agency, but rather Texas Water Code §§6.101 and 16.053. Therefore, this rule does not fall under any of the applicability criteria in Texas Government Code §2001.0225.

TAKINGS IMPACT ASSESSMENT (Texas Government Code §2007.043)

The TWDB evaluated this rule and performed an analysis of whether it constitutes a taking under Texas Government Code, Chapter 2007. The specific purpose of this rule is to require additional information related to large water supply projects in the regional water plans. The rule will substantially advance this stated purpose by requiring the regional water planning groups to include new information related to the implementation status of large water management strategies that are listed in the regional water plan.

The TWDB's analysis indicates that Texas Government Code, Chapter 2007 does not apply to this rule because this is an action that is reasonably taken to fulfill an obligation as required by state law, which is exempt under Texas Government Code §2007.003(b)(4). The TWDB is the agency that collects, analyzes, and disseminates water-related data and provides other services necessary to aid in planning and managing the state's water resources.

Nevertheless, the TWDB further evaluated this rule and performed an assessment of whether it constitutes a taking under Texas Government Code Chapter 2007. Promulgation and enforcement of this rule would be neither a statutory nor a constitutional taking of private real property. Specifically, the subject regulation does not affect a landowner's rights in private real property because this rulemaking does not burden, restrict, or limit the owner's right to property and reduce its value by 25% or more beyond that which would otherwise exist in the absence of the regulation. Therefore, the rule does not constitute a taking under Texas Government Code, Chapter 2007.

PUBLIC COMMENTS (Texas Government Code §2001.033(a)(1))

The following comments were received from the Lago Vista, Texas community.

Regarding

§363.12. General, Legal, and Fiscal Information.

Comment

The Lago Vista, Texas community commented that small communities could be burdened by the lack of resources and costs of preparing a full audit by a CPA for application submissions for TWDB funding. The Lago Vista, Texas community requested an alternative approval method or flexibility in audit submission requirements for small communities to reduce potential burdens for small communities.

Response

TWDB appreciates this comment. The amendment updates the financial requirement for applicants to make the requirements consistent with other TWDB rules. The TWDB notes that in many cases an audit is already required by Chapter 103, Local Government Code, and 31 TAC §363.12(x) provides for an executive administrator approved alternative method of establishing a reliable accounting of the financial records of the applicant that could address this concern for some applicants. No changes were made in response to this comment.

Comment

The Lago Vista, Texas community commented that TWDB's rules propose a complicated application process that disproportionately affects small communities.

Response

TWDB appreciates this comment. The amendment updates the financial requirements for applicants receiving funding to make the requirements consistent with other TWDB rules. No changes were made in response to this comment.

Regarding

§363.13. Preliminary Engineering Feasibility Report.

Comment

The Lago Vista, Texas community commented that the application process disproportionately affects small communities with complex requirements such as detailed engineering reports can be a significant hurdle for small municipalities with limited staff and resources. The Lago Vista, Texas community commented that creating a specific section within these rules that streamlines support for such communities would enhance participation in these vital programs.

Response

TWDB appreciates this comment. No changes were made in response to this comment.

Comment

The Lago Vista, Texas community commented that the TWDB's rules allow the TWDB Board to waive or modify requirements without clear criteria for when waivers or modifications might be granted causing uncertainty and inconsistency in decision-making. The Lago Vista, Texas community commented that the TWDB should provide clear criteria for when and under what conditions the Board will waive or modify requirements to ensure fairness and transparency.

Response

TWDB appreciates this comment. The amendment provides authority for the Board to waive or modify the requirements of the preliminary engineering feasibility report for the agency's financial assistance programs to assist programs or categories of applications in the application process. Because the board can only grant a waiver of its rules in an open meeting transparency is not an issue and members of the public would have the opportunity to comment on the waiver in the public meeting. No changes were made in response to this comment.

Regarding

§363.14. Environmental Assessment.

Comment

The Lago Vista, Texas community commented that the TWDB's rules allow the TWDB Board to waive or modify requirements without clear criteria for when waivers or modifications might be granted causing uncertainty and providing an argument for some of an unfair process if a waiver or modification leads to one applicant receiving assistance over another.

Response

TWDB appreciates this comment. The amendment provides authority for the Board to waive or modify the requirements of the environmental assessment for the agency's financial assistance programs to assist programs or categories of applications in the application process. Because the board can only grant a waiver of its rules in an open meeting transparency is not an issue and members of the public would have the opportunity to comment on the waiver in the public meeting. No changes were made in response to this comment.

Comment

The Lago Vista, Texas community commented that the application process disproportionately affects small communities with complex requirements such as environmental assessments can be a significant hurdle for small municipalities with limited staff and resources.

Response

TWDB appreciates this comment. No changes were made in response to this comment.

Regarding

§363.41. Engineering Design Approvals.

Comment

The Lago Vista, Texas community commented that the TWDB's rules allow the TWDB Board to waive or modify requirements without clear criteria for when waivers or modifications might be granted causing uncertainty and providing an argument for some of an unfair process if a waiver or modification leads to one applicant receiving assistance over another.

Response

TWDB appreciates this comment. Because the board can only grant a waiver of its rules in an open meeting transparency is not an issue and members of the public would have the opportunity to comment on the waiver in the public meeting. No changes were made in response to this comment.

Comment

The Lago Vista, Texas community commented that the risk-based review process requires clarification on the definition of risk, precisely how risk will be assessed, and whether smaller, lower-risk projects in communities will benefit from streamlined approvals.

Response

The amendment provides authority for the Executive Administrator to use the risk-based review method of review of plans, specifications, and related documents for certain sewage collection, treatment, and disposal system projects that are compliant with existing state statutes and good public health engineering practices pursuant to §17.276(d). The amendment outlines when the Executive Administrator may perform a risk-based review and the requirements for designs that qualify for a risk-based review. Guidance can be found in the staff issued memo titled "Alternate Standards for Review and Approval of P&S for WW Projects" dated December 8, 2023. No changes were made in response to this comment.

SUBCHAPTER A. GENERAL PROVISIONS

DIVISION 1. INTRODUCTORY PROVISIONS

31 TAC §363.2

STATUTORY AUTHORITY (Texas Government Code §2001.033(a)(2))

The amendment is adopted under the authority of Texas Water Code §§6.101, 15.439, 16.342, and 16.4021. Additionally, this rulemaking is adopted under the authority of Texas Water Code Chapters 15, 16, and 17.

This rulemaking affects Water Code, Chapters 15, 16, and 17.

The agency certifies that legal counsel has reviewed the adoption and found it to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on November 6, 2024.

TRD-202405360

Ashley Harden

General Counsel

Texas Water Development Board

Effective date: November 26, 2024

Proposal publication date: August 30, 2024

For further information, please call: (512) 475-1673


DIVISION 2. GENERAL APPLICATION PROCEDURES

31 TAC §§363.12 - 363.14, 363.17, 363.19

STATUTORY AUTHORITY (Texas Government Code §2001.033(a)(2))

The amendments are adopted under the authority of Texas Water Code §§6.101, 15.439, 16.342, and 16.4021. Additionally, this rulemaking is adopted under the authority of Texas Water Code Chapters 15, 16, and 17.

This rulemaking affects Water Code, Chapters 15, 16, and 17.

The agency certifies that legal counsel has reviewed the adoption and found it to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on November 6, 2024.

TRD-202405361

Ashley Harden

General Counsel

Texas Water Development Board

Effective date: November 26, 2024

Proposal publication date: August 30, 2024

For further information, please call: (512) 475-1673


DIVISION 3. FORMAL ACTION BY THE BOARD

31 TAC §363.33

STATUTORY AUTHORITY (Texas Government Code §2001.033(a)(2))

The amendments are adopted under the authority of Texas Water Code §§6.101, 15.439, 16.342, and 16.4021. Additionally, this rulemaking is adopted under the authority of Texas Water Code Chapters 15, 16, and 17.

This rulemaking affects Water Code, Chapters 15, 16, and 17.

The agency certifies that legal counsel has reviewed the adoption and found it to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on November 6, 2024.

TRD-202405362

Ashley Harden

General Counsel

Texas Water Development Board

Effective date: November 26, 2024

Proposal publication date: August 30, 2024

For further information, please call: (512) 475-1673


DIVISION 4. PREREQUISITES TO RELEASE OF STATE FUNDS

31 TAC §363.41

STATUTORY AUTHORITY (Texas Government Code §2001.033(a)(2))

The amendments are adopted under the authority of Texas Water Code §§6.101, 15.439, 16.342, and 16.4021. Additionally, this rulemaking is adopted under the authority of Texas Water Code Chapters 15, 16, and 17.

This rulemaking affects Water Code, Chapters 15, 16, and 17.

The agency certifies that legal counsel has reviewed the adoption and found it to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on November 6, 2024.

TRD-202405363

Ashley Harden

General Counsel

Texas Water Development Board

Effective date: November 26, 2024

Proposal publication date: August 30, 2024

For further information, please call: (512) 475-1673


CHAPTER 375. CLEAN WATER STATE REVOLVING FUND

SUBCHAPTER F. ENGINEERING REVIEW AND APPROVAL

31 TAC §375.82

The Texas Water Development Board (TWDB) adopts 31 Texas Administrative Code (TAC) §375.82. The proposal is adopted without changes as published in the August 30, 2024, issue of the Texas Register (49 TexReg 6718). The rule will not be republished.

BACKGROUND AND SUMMARY OF THE FACTUAL BASIS FOR THE ADOPTED AMENDMENT.

The 88th Texas Legislature enacted House Bill 1565, amending Tex. Water Code §17.276(d), Action on Application, to add new subsections relating to TWDB's review and approval or disapproval of plans and specifications for all wastewater projects funded by the TWDB. The new legislation allows the Board to adopt, by rule, an alternative standard of review and approval of design criteria for plans and specifications for sewage collection, treatment, and disposal systems.

SECTION BY SECTION DISCUSSION OF ADOPTED AMENDMENTS.

§375.82. Contract Documents: Review and Approval.

The amendment authorizes the risk-based review method of review of plans, specifications, and related documents for certain sewage collection, treatment, and disposal system projects that are compliant with existing state statutes and good public health engineering practices pursuant to §17.276(d).

Remaining subsections are renumbered to accommodate the new provision.

REGULATORY IMPACT ANALYSIS DETERMINATION (Texas Government Code §2001.0225)

The TWDB reviewed the adopted rulemaking in light of the regulatory analysis requirements of Texas Government Code §2001.0225 and determined that the rulemaking is not subject to Texas Government Code §2001.0225, because it does not meet the definition of a "major environmental rule" as defined in the Administrative Procedure Act. A "major environmental rule" is defined as a rule with the specific intent to protect the environment or reduce risks to human health from environmental exposure, a rule that may adversely affect in a material way the economy or a sector of the economy, productivity, competition, jobs, the environment, or the public health and safety of the state or a sector of the state. The intent of the rulemaking is to clarify eligibility, requirements, and methodology for TWDB borrowers.

Even if the adopted rule were a major environmental rule, Texas Government Code §2001.0225 still would not apply to this rulemaking because Texas Government Code §2001.0225 only applies to a major environmental rule, the result of which is to: (1) exceed a standard set by federal law, unless the rule is specifically required by state law; (2) exceed an express requirement of state law, unless the rule is specifically required by federal law; (3) exceed a requirement of a delegation agreement or contract between the state and an agency or representative of the federal government to implement a state and federal program; or (4) adopt a rule solely under the general powers of the agency instead of under a specific state law. This rulemaking does not meet any of these four applicability criteria because it: (1) does not exceed any federal law; (2) does not exceed an express requirement of state law; (3) does not exceed a requirement of a delegation agreement or contract between the state and an agency or representative of the federal government to implement a state and federal program; and (4) is not adopted solely under the general powers of the agency, but rather Texas Water Code §17.956. Therefore, this adopted rule does not fall under any of the applicability criteria in Texas Government Code §2001.0225.

TAKINGS IMPACT ASSESSMENT (Texas Government Code §2007.043)

The TWDB evaluated this adopted rule and performed an analysis of whether it constitutes a taking under Texas Government Code, Chapter 2007. The specific purpose of this rule is to clarify eligibility, requirements, and methodology for TWDB borrowers. The adopted rules would substantially advance this stated purpose by aligning the rule's definitions and permissible use of funds with Water Code, Chapter 17, clarifying how the risk-based review analysis will be used for TWDB borrowers, and providing greater consistency between TWDB program rules.

The TWDB's analysis indicates that Texas Government Code, Chapter 2007 does not apply to this adopted rule because this is an action that is reasonably taken to fulfill an obligation mandated by state law, which is exempt under Texas Government Code §2007.003(b)(4). The TWDB is the agency that implements the applicable financial assistance programs, including the risk-based review.

Nevertheless, the TWDB further evaluated this adopted rule and performed an assessment of whether it constitutes a taking under Texas Government Code Chapter 2007. Promulgation and enforcement of this adopted rule would be neither a statutory nor a constitutional taking of private real property. Specifically, the subject adopted regulation does not affect a landowner's rights in private real property because this rulemaking does not burden, restrict, or limit the owner's right to property and reduce its value by 25% or more beyond that which would otherwise exist in the absence of the regulation. In other words, this rule is merely an amendment to conform with statutory changes and clarify program methodology. It does not require regulatory compliance by any persons or political subdivisions. Therefore, the adopted rule does not constitute a taking under Texas Government Code, Chapter 2007.

PUBLIC COMMENTS (Texas Government Code §2001.033(a)(1))

The public comment period ended September 30, 2024. No comments were received, and no changes were made.

STATUTORY AUTHORITY (Texas Government Code §2001.024(a)(3))

The amendment is adopted under the authority of Texas Water Code §6.101, which provides the TWDB with the authority to adopt rules necessary to carry out the powers and duties in the Water Code and other laws of the State, and also under the authority of Texas Water Code §17.276.

This rulemaking affects Water Code, Chapter 17.

The agency certifies that legal counsel has reviewed the adoption and found it to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on November 6, 2024.

TRD-202405359

Ashley Harden

General Counsel

Texas Water Development Board

Effective date: November 26, 2024

Proposal publication date: August 30, 2024

For further information, please call: (512) 475-1673