ÿWPC»# 4“øÛN: D£J–ú là²}y5—׫Œ‘_t ï-IæÔW53p’oa’¬¹ÃÝöùc}ˆâÐ V!„å?Þ¯¤'³(ƒã¸ƒ™šïÖþâÿªkz´^ùþ»Áö±eyS¿!«-뾘ÈíBk½Íú§dùûx4Çœ•…ÔÄœp-×ñÉ’–©Nçï"ƒq°:+Mmø žvu® ˆ‰vëPÜûÎZÊ'R¯pöàÇ€æÂ5ÊGã}!ù ûª1^6Ìvû«ã‹è`c‡±«Ùî|¿Ýþ™Jº÷•[Þìl$xž‡w5VŸ©1-ÖÚõ• “Wbü\oäj`á‘9º˜}¦:Ò- ù?ª‘ÚŠCW\×ÅèHf¨X¶7ßêÿâ¼Äê©tuKF¤R|½‰ö#ÇY[S–E"”êPQ“+C† $]¾‡Aè%c-¤—ÛZ;úÔ»åi_¤âe²Oh¬‰"ÌÜÕ Û«\‘»wsZÚ‚Fk¾êñC$:­|Âb¹°:¿×{®·m@,qf&|Jo³‰ãØÝ[]© ›ÓÄL¢·l&2ÒžÙ.[; ¹Ñ„±Ip4ÍJsOŒú-£ÄWsJNtõÙÎÓ÷¿ýìŒßÝsÀj¨‰]U N %d 04jNžn« #ÁK „ Ê 1Z ^ ‹w—4›¯ m±ÈÈb××××××××× 0—ñ 0DˆNÌàúú² 0Pº   0%c¯ 1u 72‡ 0w¹ 0Š0 0 º 0´Z 0Ç 0ÛÕ 0ï° 0DŸ! 1‰ã" 72l#l#l#l#l#l#l#l#l#l#l#l#l#l#l#l#l#l#l#l#l#l#l#l#l#l#l#l#l#l#l#l#l#l#l#l#l#l#l#l#l#l# Bž#xÖÃ9 Z‹6Times New Roman RegularX( ¤U$¡¡Ó  Ó«<þ6X9`(CourierXôxþ6X@ɹ`7ûX@˜Akita.bhspkmÈÈÈÈÈÈÈÈ0˜C:\DOCUME~2\Doug\APPLIC~1\Corel\PERFEC~1\9\CUSTOM~1\letter.wptC:\Documents and Settings\Doug\Application Data\Corel\PerfectExpert\9\Custom WP Templates\letter.wpt 'Ý ƒ½Ô$ÝÓ  ÓÔ€ôÇAòXXÔà  àòòÚ  Ú1Ú  ÚóóÝ  ÝÔ_Ô€€In€rejecting€the€Cityððs€and€the€Commissionððs€intent€argument,€the€court€relied€on€the€principle,€implicit€inÐ ° Ðanother€of€its€recent€cases,€that€ð ððð[Ô_Ôi]ntentÔ_Ô€does€not€trump€physical€reality€in€water€law.ðððð€€òòCity€of€San€Marcosóó,€2003€WLÐ tÄ Ð22024663š,€at€*€9.€€The€court€described€its€predicate€reasoning€in€that€case€as€follows:Ð 8ˆ ÐÌà8  àWe€premised€our€holding€on€the€assumption€that€the€municipalityððs€discharged€effluent,€partly€derivedÐ À Ðfrom€captured€groundwater,€became€state€water€upon€entering€the€watercourse.€€In€concluding€that€theÐ „Ô ÐStateððs€right€to€use€a€watercourse€is€the€same€whether€the€flow€of€water€is€ð ðnaturalðð€or€ð ðman„madeððÐ H ˜ Ðeffluent,€we€noted€that€ð ð[Ô_Ôo]nceÔ_Ô€return€flows€are€given€back€to€a€watercourse,€they€become€part€of€theÐ  \ Ðnormal€flow.ððÐ#Ð Ð Ð  ° #ЇòòIdóó.€(citing€òòÔ_ÔDomelÔ_Ô€v.€City€of€Georgetownóó,€6€S.W.3d€349,€353„54,€360€(Tex.€App.ð!ðAustin€1999,€pet.€denied)).'˜(/â ¢“ƒ.g 5ÿU‹ÿÀÀÀ3|xPage ù of &ù(G(2½Ô$¤¤Ý ƒ¤U!ÝÓ  ÓÝ  ÝÔ€ôÒµòXXÔà  àòòÚ  Ú0Ú  Úóó(#Ã$òòÚ  Ú0Ú  Úóó DÝ ƒ½Ô$ÝÓ  ÓÔ€ôÇAòXXÔà  àòòÚ  Ú2Ú  ÚóóÝ  ÝÔ_Ô€€Significantly,€this€provision€did€not€require€ð ðbed€and€banksðð€permits,€but€affirmatively€granted€theÐ ° Ðauthorization€to€use€state€watercourses€for€delivery€of€stored€water. ÖÝ ƒ½Ô$ÝÓ  ÓÔ€ôÇAòXXÔà  àòòÚ  Ú4Ú  ÚóóÝ  ÝÔ_Ô€€Note,€however,€that€ðð€11.046(c)€cannot€be€applied€to€a€reuse€application€by€a€party€other€than€the€owner€ofÐ ° Ðthe€base€water€right.€€To€the€extent€staff€is€considering€authorization€of€reuse€by€the€owners€of€regional€wastewaterÐ tÄ Ðtreatment€facilities,€who€do€not€own€the€base€water€right,€ðð€11.046(c)€is€not€available€as€a€vehicle€for€such€authorization.€Ð 8ˆ ÐRather,€a€new€appropriation€under€30€TAC€ðð€297.42(g)€would€be€required.€€Significantly,€this€rule€grants€no€preferentialÐ üL Ðright€to€the€owner€of€the€discharge. Ý ƒ½Ô$ÝÓ  ÓÔ€ôÇAòXXÔà  àòòÚ  Ú5Ú  ÚóóÝ  ÝÔ_Ô€€TRWD€Interoffice€Memorandum€from€Rogan€to€Schwartz€of€2/10/84,€ð ðSecondary€Use€Permit€Requirements,ððÐ ° Ðat€15. ¨Ý ƒ½Ô$ÝÓ  ÓÔ€ôÇAòXXÔà  àòòÚ  Ú6Ú  ÚóóÝ  ÝÔ_Ô€€Admittedly,€a€water€availability€analysis€would€need€to€be€performed,€but€100%€reliability€would€not€beÐ ° Ðrequired€for€municipal€use€in€those€cases€in€which€an€alternate€supply€is€available.€€òòSeeóó€30€òòTex.€Admin.€CodeóóÐ tÄ Ððððð297.42(c),€297.42(d).((3ž¸$§§Ý ƒ¤U!ÝÓ  ÓÝ  Ý  “Ý ƒ½Ô$ÝÓ  ÓÔ€ôÇAòXXÔà  àòòÚ  Ú3Ú  ÚóóÝ  ÝÔ_Ô€€As€the€appellate€court€recognized€in€òòCity€of€San€Marcosóó,€the€City€could€pursue€its€reuse€project€ð ðwithin€theÐ ° Ðframework€of€Senate€Bill€1,ðð€but€its€pre„S.B.1€common„law€rights€over€its€captured€groundwater€ð ðcannot€be€expandedÐ tÄ Ðto€permit€the€City€to€discharge€its€effluent€into€the€San€Marcos€River€and€then€divert€water€downstream€without€havingÐ 8ˆ Ðobtained€an€appropriative€right€over€that€state€water.ðð€€òòCity€of€San€Marcosóó,€2003€WL€22024663š,€at€*€13.(;3£$´´Ô2#ÔÚ  Ú0Ú  Ú.Ô3  Ôà0  à3#37=CIQYag­­1.a.i.(1)(a)(i)1)a)'i)(Oé;$µµà0  àÔ2#ÔÚ  ÚaÚ  Ú.Ô3  Ôà0` (#(#à(b·¤$¶¶à0  àà0` (#(#àÔ2#ÔÚ  ÚÚ  Ú.Ô3  Ôà0¸ ` (#` (#à(xir$··à0  àà0` (#(#àà0¸ ` (#` (#àÔ2#Ô(Ú  Ú0Ú  Ú)Ô3  Ôà0¸ (#¸ (#à(ŒÜ$¸¸à0  àà0` (#(#àà0¸ ` (#` (#àà0¸ (#¸ (#àÔ2#Ô(Ú  ÚaÚ  Ú)Ô3  Ôà0h(#(#à(ŸF$¹¹à0  àà0` (#(#àà0¸ ` (#` (#àà0¸ (#¸ (#àà0h(#(#àÔ2#Ô(Ú  ÚÚ  Ú)Ô3  Ôà0Àh(#h(#à(³Àô$ººà0  àà0` (#(#àà0¸ ` (#` (#àà0¸ (#¸ (#àà0h(#(#àà0Àh(#h(#àÔ2#ÔÚ  Ú0Ú  Ú)Ô3  Ôà0À(#À(#à(ǵ{$»»à0  àà0` (#(#àà0¸ ` (#` (#àà0¸ (#¸ (#àà0h(#(#àà0Àh(#h(#àà0À(#À(#àÔ2#ÔÚ  ÚaÚ  Ú)Ô3  Ôà0p(#(#à(F$ïïà0  àà0` (#(#àà0¸ ` (#` (#àà0¸ (#¸ (#àà0h(#(#àà0Àh(#h(#àà0À(#À(#àà0p(#(#àÔ2#ÔÙ ÙÚ  ÚÚ  ÚÙ Ù)Ô3  Ôà0Èp(#p(#àÙ Ù&)*+,-./xð–Gaeimquy}Bullet ListBullets List10 dÝ ƒ¤U!ÝÓ  ÓÝ  ÝÔ_ÔÑ  ÑÑ€ÑÑ8€(XXdìdÈ8ÑÑ  ÑÌÌÌÌÌÌÓ  Óò òÔ‡°÷U°XXÔIndirect€Reuse€of€Municipal€Effluent:€Ð 8 ˆ ÐSenior€Appropriatorððs€PerspectiveÔ#†X(X°°÷U¬#ÔÐ  \ ÐÌÌÌÌÌÌÌÌÌÔ‡ ‚0XX(ÔDouglas€G.€CaroomÐ ,| ÐBickerstaff,€Heath,€Smiley,€Ð f¶ ÐPollan,€Kever€&€McDaniel,€L.L.P.€Ð  ð ÐÌÌÌÌÌTexas€Water€Law€SeminarÐ üL ÐSeptember€12,€2003Ô#†X(X ‚0k#Ôó óÐ  6!† ÐÓÓòòóóà  àThe€Texas€Commission€on€Environmental€Quality€(TCEQ)€has€had€pending€before€it€for€theÐ ° Ðlast€several€years€numerous€competing€applications€for€bed€and€banks€permits€that€would€authorizeÐ œì Ðð ðindirect€reuseðð€of€state€water.€€In€May€2003,€TCEQ€staff€proposed€a€draft€permit€for€the€first€ofÐ ˆØ Ðthese€major€applications,€that€of€Tarrant€Regional€Water€District€(TRWD).€€The€draft€permit,€whileÐ tÄ Ðmaking€the€indirect€reuse€subject€to€all€existing€water€rights,€does€not€consider€the€newly€authorizedÐ `° Ðuse€to€be€a€new€appropriation.€€Rather,€it€apparently€authorizes€the€new€use€as€part€of€TRWDððsÐ L œ Ðoriginal€appropriation€of€water.€€The€staffððs€approach€is,€essentially,€to€recommend€that€the€right€beÐ 8 ˆ Ðð ðjunior,€but€not€a€new€appropriation.ððÐ $ t ÐÌà  àThis€position,€that€the€newly€authorized€use€is€not€a€new€appropriation,€is€legally€incorrect,Ð ü L  Ðpractically€unnecessary,€and€poor€public€policy,€for€the€reasons€discussed€below.€Ð è 8  ÐÌò òòòLegally€Incorrectóóó óÐ À  ÐÌà  àPrior€to€the€adoption€of€S.B.€1€amendments,€it€was€clearly€the€position€of€the€courts€and€ofÐ ˜è  Ðthe€Commission€that€a€new€appropriation€was€required€to€authorize€use€of€wastewater€or€surplusÐ „Ô  Ðwater€discharged€into€a€state€watercourse€following€initial€use.€€The€rule€was€aptly€summarized€byÐ pÀ ÐWells€Hutchins:Ð \¬ ÐÌÔ& t Ôà8  àAn€appropriator€of€water€has€a€usufructuary€right€therein,€not€an€ownership€in€theÐ 4„ Ðòòcorpus€óóof€the€water.€€If€after€using€the€water,€he€does€nothing€to€recapture€the€excessÐ  p Ðbefore€it€leaves€his€land€or€project€ð!ð€and€particularly€before€it€drains€into€a€naturalÐ  \ Ðwatercourse€ð!ð€he€has€no€jurisdiction€over€the€escaped€water.ÐøHÐ Ð  ÐÌòòThe€Texas€Law€of€Water€Rights€óó551€(1961).Ð Ð  ÐÔ't4çÔÌIn€1997,€immediately€prior€to€the€legislative€session€that€produced€S.B.€1,€the€Commission€held€aÐ ¨ø Ðwork€session€to€consider€the€issue€of€reuse.€€At€that€work€session€the€Commission€considered€theÐ ”ä Ðviews€of€parties€who€had€participated€in€a€year„long€working€group€on€this€issue,€as€well€as€theÐ €Ð Ðrecommendations€of€staff.€€The€Commission€adopted€the€following€policies:Ð l¼ ÐÌÓ€ 1&)*+,-./0(ð–y3'ÓÝ"‚&3£"ÝÝ  Ýà8  àÝ‚&3£> ÝÔ2ð–ÔððÔ3  Ôà0` Ð Ð àÝ  ÝòòDirect€Reuse€of€Surface€Water€Authorizedóó:€Except€as€specifically€providedÐ D!” Ðotherwise€in€the€water€right,€state€water€appropriated€under€a€surface€waterÐ 0"€  Ðright€can€be€beneficially€used€and€reused€by€the€water€right€holder€for€theÐ #l! Ðauthorized€purposes,€locations,€etc.,€under€the€water€right€òòprioróó€to€its€releaseÐ $X" Ðinto€a€stream.݃&3£> w ÝŒÐô$D #` Ð ` Ð  ÐŒÝ  ÝÌÝ"‚&3£"ÝÝ  Ýà8  àÝ‚&3£§ÝÔ2ð–ÔððÔ3  Ôà0` Ð Ð àÝ  ÝòòIndirect€Reuse€Generally€Requires€a€New€Water€Rightóó:€Generally,€onceÐ Ì&"% Ðsurface€water€diverted€under€a€water€right€returns€to€a€stream,€the€water€rightÐ ¸'#& Ðholder€loses€the€right€to€the€continued€use€of€the€water€under€the€waterÐ ¤(ô#' Ðright....€€Exceptions€to€this€would€be€if€the€water€right€specifically€providesÐ )à$( Ðâ âfor€the€reuse€of€return€flows€and/or€there€is€an€explicit€provision€in€aÐ |*Ì%) Ðdownstream€water€right€that€expressly€subordinates€that€downstream€waterÐ ° Ðright€to€the€upstream€reuse€of€return€flows€by€the€discharger.݃&3£§à݌Мì` Ð ` Ð  Ðâ âŒÝ  ÝÌÝ"‚&3£"ÝÝ  Ýà8  àÝ‚&3£ÝÔ2ð–ÔððÔ3  Ôà0` Ð Ð àÝ  ÝòòConveyance€of€ð ðDevelopedðð€Water€in€Stream€May€be€Authorized€UnderÐ tÄ Ðð ðBed€and€Banksðð€Permit€Prior€to€Dischargeóó:€€òòPrioróó€to€the€discharge€ofÐ `° Ðð ðdevelopedðð€water,€the€developer€may€obtain€a€ð ðbed€and€banksðð€permit€fromÐ L œ Ðthe€Commission€for€the€conveyance€of€this€water€in€a€watercourse€forÐ 8 ˆ Ðsubsequent€diversion€(less€carriage€losses€such€as€evaporation,€transpiration,Ð $ t Ðseepage,€etc.)€and€use€by€the€developer....€€Generally,€a€person€may€not,Ð  ` Ðhowever,€obtain€a€bed€and€banks€permit€after€the€fact€to€divert€surface€orÐ ü L  Ðground€water€historically€discharged€by€that€person,€including€water€that€mayÐ è 8  Ðhave€been€considered€developed€water€prior€to€its€discharge.òòóó݃&3£>ÝŒÐÔ$ ` Ð ` Ð  ÐŒÝ  ÝÌMemorandum€from€Mark€Jordan€to€Reuse€Committee€of€2/3/97,€at€1,€2,€4„5€(copy€attached).€€It€is,Ð ¬ü  Ðtherefore,€clear€that€prior€to€the€adoption€of€S.B.€1€amendments€Texas€law€required€a€newÐ ˜è  Ðappropriation€to€authorize€downstream€reuse€of€discharged€wastewater€effluent.€€This€is€because€theÐ „Ô  Ðreuse€occurs€at€a€new€location€with€a€new€diversion€point,€and€possibly€a€new€use.Ð pÀ ÐÌà  àThe€Third€Court€of€Appealsðð€recent€opinion€regarding€the€bed€and€banks€permit€applicationÐ H˜ Ðof€the€City€of€San€Marcos€also€supports€the€requirement€of€a€new€appropriation€for€indirect€reuse€ofÐ 4„ Ðdischarged€wastewater€effluent.€€òòCity€of€San€Marcos€v.€TCEQóó,€2003€WL€22024663€(Tex.Ð  p ÐApp.ð!ðAustin€Aug.€29,€2003,€n.p.h.).€[òòA€copy€of€the€case€is€included€with€Todd€ChenowethððsÐ  \ Ðmaterials€in€this€notebook.óó]š€€In€that€case,€based€on€its€analysis€of€pre„S.B.€1€law,€the€court€held€thatÐ øH Ðthere€is€no€common„law€right€by€which€the€City€can€retain€ownership€over€its€groundwater„derivedÐ ä4 Ðwastewater€effluent€after€discharging€it€into€a€state€watercourse.€€òòIdóó.€at€*€1,€13.€€Narrowly€construingÐ Ð  Ðthe€Cityððs€ownership€interest€under€the€rule€of€capture,€the€court€concluded€that€the€City€can€notÐ ¼  Ðconvey€groundwater„derived€effluent€down€a€state€watercourse€ð ðand€then€subsequently€divert€theÐ ¨ø Ðwater€without€obtaining€an€appropriation€permit.ðð€€òòIdóó.€at€*€8.€€The€Cityððs€reuse€project€does€not€fallÐ ”ä Ðwithin€these€parameters€because€the€City€is€not€directly€transporting€its€captured€groundwater€ð ðððtoÐ €Ð Ðthe€place€of€use.ðððð€€òòIdóó.š€€The€Cityððs€reuse€project€ð ðdepends€on€mixing€its€effluent€with€the€spring„fedÐ l¼ Ðwaters€of€the€San€Marcos€River,ðð€and€the€effluent€is€not€fungible€with€the€Stateððs€water€in€the€river.€Ð X ¨ ÐòòIdóó.€at€*€9„10.€€Thus,€notwithstanding€the€Cityððs€declared€intention€to€reuse€its€effluent,€the€courtÐ D!” Ðconcluded€that€its€discharge€of€effluent€into€a€state€watercourse€ð ðconstitutes€abandonment€as€a€matterÐ 0"€  Ðof€law.ðð€òòIdóó.€at€*€11.׃ ×Ý ƒ#ÃÝòòÚ  Ú1Ú  ÚóóÝ  Ý×  ×€€ššòòóóThe€appellate€court€reversed€the€district€court€and€rendered€judgment€that€theÐ #l! ÐCommissionððs€order€granting€the€Cityððs€permit€be€vacated€and€the€Cityððs€application€be€denied.€€òòIdóó.Ð ° Ðat€*€13.Ð œì ÐÌà  àAdvocates€of€indirect€reuse€suggest€that€S.B.€1€amendments€changed€the€law.€€Analysis€ofÐ tÄ Ðthose€amendments,€however,€indicates€that€this€interpretation€is€incorrect.€€Two€relevant€provisionsÐ `° Ðwere€amended€by€S.B.€1:€Texas€Water€Code€ðð11.042€and€ðð11.046.€€Prior€to€these€amendments,Ð L œ Ðsection€11.042€simply€authorized€the€use€of€the€bed€and€banks€of€natural€streams€to€deliver€storedÐ 8 ˆ Ðor€conserved€water.€€This€provision€remains,€only€slightly€modified,€as€current€section€11.042(a).׃T×Ý ƒ#ÃÝòòÚ  Ú2Ú  ÚóóÝ  Ý×  ׀Р$ t ÐSection€11.042(b),€added€by€S.B.€1,€specifically€authorizes€the€indirect€reuse€of€òògroundwater„basedÐ  ` Ðreturn€flowsóó.€€As€inò òó ó€the€Commissionððs€decision€in€the€San€Marcos€case,€section€11.042(b)€allows€theÐ ü L  Ðimposition€of€conditions€on€the€reuse€of€existing€discharges€to€protect€existing€water€rights,€instreamÐ è 8  Ðflows,€and€bay€and€estuary€requirements.€Clearly,€however,€section€11.042(b)ððs€authorization€ofÐ Ô$  Ðindirect€reuse€is€limited€to€groundwater‚-based€discharges.׃$¤×Ý ƒ#ÃÝòòÚ  Ú3Ú  ÚóóÝ  Ý×  ׀РÀ  ÐÌà  àSection€11.042(c),€also€added€by€S.B.1,€is€the€provision€primarily€relied€upon€by€advocatesÐ ˜è  Ðof€indirect€reuse€of€surface€water.€€It€states:Ð „Ô  ÐÌà8  àà ` à(c)€Except€as€otherwise€provided€in€Subsection€(a)€of€this€section,€òòa€personÐ \¬ Ðwho€wishes€to€convey€and€subsequently€divert€water€in€a€watercourse€or€stream€mustÐ H˜ Ðobtain€the€prior€approval€of€the€commission€through€a€bed€and€banks€authorization.€óóÐ 4„ ÐThe€authorization€shall€allow€to€be€diverted€only€the€amount€of€water€put€into€aÐ  p Ðwatercourse€or€stream,€less€carriage€losses€and€subject€to€any€special€conditions€thatÐ  \ Ðmay€address€the€impact€of€the€discharge,€conveyance,€and€diversion€on€existingÐ øH Ðpermits,€certified€filings,€or€certificates€of€adjudication,€instream€uses,€and€freshwaterÐ ä4 Ðinflows€to€bays€and€estuaries.€€Water€discharged€into€a€watercourse€or€stream€underÐ Ð  Ðthis€chapter€shall€not€cause€a€degradation€of€water€quality€to€the€extent€that€the€streamÐ ¼  Ðsegmentððs€classification€would€be€lowered.€€Authorizations€under€this€section€andÐ ¨ø Ðwater€quality€authorizations€may€be€approved€in€a€consolidated€permit€proceeding.ДäÐ Ð  ÐÌòòTex.€Water€Code€Ann.€óóðð11.042(c)€(Vernon€2000)€(emphasis€added).€€This€provision€plainlyÐ l¼ Ðallows€the€Commission€to€authorize€the€use€of€bed€and€banks€to€convey€some€sort€of€water.€€TheÐ X ¨ Ðquestion€is:€What€sort€of€water€is€addressed€by€section€11.042(c)?€€Section€11.042(a)€addressesÐ D!” Ðâ âconserved€or€stored€water€and€section€11.042(b)€addresses€òòreuseóó€of€groundwater-based€return€flows.€Ð 0"€  ÐBased€on€statutory€Ô_ÔlanguageÔ_ÔÔ_ÔÔ_ÔÔ_ÔÔ_ÔÔ_Ô,Ô_Ô€the€answer€for€section€11.042(c)€is:€Water€already€owned€orÐ ° Ðappropriated€by€the€person€requesting€the€bed€and€banks€authorization,€that€is,€developed€water.€€Ð œì Ðâ âÌà  àUnlike€section€11.042(b),€subsection€(c)€does€not€address€reuse.€€Section€11.042(b)€is€anÐ tÄ Ðexpress€recognition€of€the€reuse€right€of€the€owner€of€groundwater-based€effluent.€€òòSection€11.042(c)Ð `° Ðcontains€no€such€recognition.óó€€Rather,€section€11.042(c)€implicitly€requires€an€independent€sourceÐ L œ Ðof€legal€authority€for€the€ownership€rights€of€the€person€requesting€bed€and€banks€authority.€€UnderÐ 8 ˆ Ðthe€òòCity€of€San€Marcosóó€case€it€is€clear€that€without€express€legislative€authorization€such€anÐ $ t Ðownership€interest€will€normally€require€a€new€appropriation.€Given€this€limitation,€section€11.042(c)Ð  ` Ðis€appropriately€utilized€to€authorize€transmission€of€two€types€of€water:€(1)€developed€water,€suchÐ ü L  Ðas€water€imported€from€another€basin€that€has€not€previously€been€available€to€appropriators€in€theÐ è 8  Ðbasin;€and€(2)€groundwater€that€is€discharged€directly€into€the€watercourse€without€prior€reuseÐ Ô$  Ð(section11.042(b)€only€addresses€ð ðreuseðð).€€Section€11.042(c)€is€not,€itself,€a€source€of€authority€forÐ À  Ðòòreuseóó€of€surface€water„based€effluent.Ð ¬ü  ÐÌà  àIndirect€reuse€advocates€also€suggest€that€such€authority€may€be€found€in€S.B.€1€amendmentsÐ „Ô  Ðto€section€11.046(c).€€This€suggestion€is€also€incorrect.€€Section€11.046(c),€instead,€has€precisely€theÐ pÀ Ðopposite€effect.€€It€provides:Ð \¬ ÐÌà8  àà ` à(c)€Except€as€specifically€provided€otherwise€in€the€water€right,€waterÐ 4„ Ðappropriated€under€a€permit,€certified€filing,€or€certificate€of€adjudication€may,€priorÐ  p Ðto€its€release€into€a€watercourse€or€stream,€be€beneficially€used€and€reused€by€theÐ  \ Ðholder€of€a€permit,€certified€filing,€or€certificate€of€adjudication€for€the€purposes€andÐ øH Ðlocations€of€use€provided€in€the€permit,€certified€filing,€or€certificate€of€adjudication.€Ð ä4 ÐOnce€water€has€been€diverted€under€a€permit,€certified€filing,€or€certificate€ofÐ Ð  Ðadjudication€and€then€returned€to€a€watercourse€or€stream,€however,€it€is€consideredÐ ¼  Ðsurplus€water€and€therefore€subject€to€reservation€for€instream€uses€or€beneficialÐ ¨ø Ðinflows€or€to€appropriation€by€others€unless€expressly€provided€otherwise€in€theÐ ”ä Ðpermit,€certified€filing,€or€certificate€of€adjudication.ЀÐÐ Ð  ÐÌòòTex.€Water€Code€Ann.€óóðð11.046(c)€(Vernon€2000).€€The€statute,€essentially,€formalizes€the€ð ðfourÐ X ¨ Ðcornersðð€doctrine€as€it€has€been€previously€construed€by€the€Commission€and€formalizes€the€commonÐ D!” Ðlaw€rule€that€upon€discharge€an€appropriator€loses€all€interest€in€his€return€flows€ð!ð€also€a€ruleÐ 0"€  Ðpreviously,€and€consistently,€followed€by€the€Commission.€€The€statuteððs€final€clause,€recognizingÐ #l! Ðthat€the€Commission€might€make€contrary€provisions€in€an€appropriatorððs€water€right,€does€notÐ $X" Ðchange€pre„existing€law€and€is€certainly€not€a€recognition€or€authorization€of€a€previouslyÐ ô$D # Ðunrecognized€right€of€reuse.€€Ð à%0!$ ÐÌà  à€While€the€provision€does€not,€itself,€authorize€reuse,€TCEQ€staff€apparently€consider€sectionÐ ¸'#& Ð11.046(c)ððs€final€clause€to€be€a€vehicle€by€which€reuse€can€be€authorized€through€amendment€of€theÐ ¤(ô#' Ðâ âbase€water€right.€€This€is€correct.€€The€Commission€may€amend€a€water€right€to€authorize€reuse,€asÐ )à$( Ðit€likely€could€prior€to€S.B.€1.׃×Ý ƒ#ÃÝòòÚ  Ú4Ú  ÚóóÝ  Ý×  ×€€However,€section€11.046(c)€gives€no€indication€that€such€anÐ ° Ðâ âamendment€to€the€base€water€right€to€authorize€reuse€should€not€be€considered€a€new€appropriationÐ œì Ðwith€a€new€priority€date.€€Ð ˆØ ÐÌà  àInstead,€a€permit€amendment€to€authorize€diversion€and€reuse€at€a€point€downstream€of€theÐ `° Ðexisting€discharge€must€comply€with€all€appropriate€requirements€for€amendment€of€a€permit.€€òòSeeóóÐ L œ Ð30€òòTex.€Admin.€Codeóó€ðð295.158(b)€(West€2003).€€Like€other€amendments€potentially€affecting€otherÐ 8 ˆ Ðwater€right€holders,€the€newly€authorized€use€should€be€junior€to€existing€uses€in€order€to€preventÐ $ t Ðpossible€impairment€of€existing€rights.Ð  ` ÐÌà  àThe€foregoing€discussion€of€sections€11.042(c)€and€11.046(c)€is€consistent€withÐ è 8  Ðwell-established€rules€governing€statutory€construction.€€The€legislature€is€presumed€to€have€enactedÐ Ô$  Ða€statute€with€complete€knowledge€of€the€existing€law€and€with€reference€to€it.€òò€GlasscockÐ À  ÐUnderground€Water€Conservation€Dist.€v.€Pruittóó,€915€S.W.2d€577,€581€(Tex.€Civ.€App.€ð!ð€El€PasoÐ ¬ü  Ð1966,€no€writ).€€Prior€to€the€S.B.€1€amendments,€existing€law€provided€that€upon€dischargeÐ ˜è  Ðwastewater€effluent€and€other€return€flows€were€considered€state€water€available€for€furtherÐ „Ô  Ðappropriation.€€The€legislature€clearly€made€an€exception€to€this€rule€in€the€case€of€groundwater„Ð pÀ Ðbased€effluent,€to€the€extent€that€existing€rights€and€environmental€needs€did€not€require€aÐ \¬ Ðcontinuation€of€the€discharge.€€No€such€clear€exception€was€made€in€section€11.042(c)€regardingÐ H˜ Ðsurface€water„based€effluent€and€return€flows.€€Therefore,€one€must€conclude€that€the€legislatureÐ 4„ Ðintended€to€continue€the€existing€rule€of€law€that€requires€a€new€appropriation€for€a€new€downstreamÐ  p Ðuse.Ð  \ ÐÌà  àThus,€while€existing€law€allows€the€Commission€to€authorize€ð ðindirect€reuse,ðð€it€providesÐ ä4 Ðno€support€for€the€proposition€that€such€reuse€does€not€amount€to€a€new€appropriation.Ð Ð  ÐÌà  àThe€TRWD€draft€reuse€amendment€òòalmostóó€recognizes€this€by€stating€that€the€right€is€subjectÐ ¨ø Ðto€the€call€of€all€existing€water€rights€during€times€of€shortage.€€Thus,€in€many€respects€TRWDððsÐ ”ä Ðproposed€reuse€right€is€treated€as€if€it€were€a€new€appropriation.€€The€draft€amendment,€however,Ð €Ð Ðcarefully€avoids€designating€the€new€use€and€diversion€as€a€new€appropriation€with€a€new€priorityÐ l¼ Ðdate.€€Ð X ¨ ÐÌò òòòPractically€Unnecessaryóóó óÐ 0"€  ÐÌà  àIronically,€it€appears€that€no€useful€purpose€is€served€by€the€TCEQ€staffððs€current€positionÐ $X" Ðthat€indirect€reuse€does€not€amount€to€a€new€appropriation.€€If€the€TRWD€amendment€isÐ ô$D # Ðrepresentative,€future€indirect€reuse€authorizations€will€be€made€subject€to€all€existing€water€rights.€Ð à%0!$ ÐIf€this€is€the€case,€particularly€in€drought€times,€the€holder€of€the€indirect€reuse€right€gains€no€benefitÐ Ì&"% Ðfrom€the€staffððs€conclusion€that€a€new€appropriation€is€not€involved.€€During€times€of€shortage,€theÐ ° Ðreuse€right€will€be€subject€to€the€same€limitations€that€would€govern€a€new€appropriation.Ð œì ÐÌà  àIt€appears€that€the€same€restrictions€applied€by€the€staff€to€Trinity€River€indirect€reuse€wouldÐ tÄ Ðalso€be€applicable€to€other€state€rivers.€€A€1984€memorandum€by€former€staff€attorney€Mike€RoganÐ `° Ðstated€that€municipal€return€flows€were€routinely€considered€in€water€availability€models€used€toÐ L œ Ðdetermine€the€availability€of€unappropriated€water.׃×Ý ƒ#ÃÝòòÚ  Ú5Ú  ÚóóÝ  Ý×  ×€Because€municipal€return€flows€were€generallyÐ 8 ˆ Ðconsidered€in€determining€water€availability,€a€comparable€provision€will€be€needed€in€all€riverÐ $ t Ðbasins€to€protect€those€existing€rights€issued€in€reliance€on€those€return€flows.€€If€such€a€ð ðjunior,Ð  ` Ðsubject€to€callðð€provision€is€included€in€future€indirect€reuse€permits,€the€obvious€question€arises:Ð ü L  ÐWhat€purpose€is€served€by€not€considering€the€new€indirect€reuse€to€be€a€new€appropriation?Ð è 8  ÐÌà  àThe€answer€appears€to€be€ð ðnone.ðð€€The€same€permits€could€be€authorized€under€CommissionÐ À  ÐRule€297.42,€and€the€confusion€created€by€authorization€of€an€additional€use€and€diversion€pointÐ ¬ü  Ðoutside€the€appropriative€system€could€be€avoided.׃ ×Ý ƒ#ÃÝòòÚ  Ú6Ú  ÚóóÝ  Ý×  ×€€Ð ˜è  ÐÌò òòòPoor€Public€Policyóóó óÐ pÀ ÐÌà  àAuthorization€of€indirect€reuse,€essentially€outside€the€prior€appropriation€system,€asÐ H˜ Ðcurrently€proposed€in€the€draft€TRWD€amendment€is€poor€public€policy.€€It€unnecessarilyÐ 4„ Ðcomplicates€administration€of€water€rights€ð!ð€an€area€in€need€of€further€simplification,€not€furtherÐ  p Ðcomplication.€€Examples€of€such€potential€confusion€include:Ð  \ ÐÌÓ€ 1&)*+,-./0(ð–yy1&)*+,-./0ÓÝ"‚&3£"ÝÝ  Ýà  àÝ‚&3£BUÝÔ2ð–ÔððÔ3  Ôà0 ` àÝ  ÝWhat€is€a€ð ðtime€of€shortageðð€during€which€the€indirect€reuse€water€is€subject€to€callÐ ä4 Ðby€existing€rights?݃&3£BU{UÝŒÐÐ ` (#` (# ÐŒÝ  ÝÌÝ"‚&3£"ÝÝ  Ýà  àÝ‚&3£ˆVÝÔ2ð–ÔððÔ3  Ôà0 ` àÝ  ÝIs€the€operator€of€an€on„channel€storage€reservoir€required€to€pass€through€waterÐ ¨ø Ðsubject€to€the€indirect€reuse€permit?€€If€so,€how€does€he€know€the€amount€of€waterÐ ”ä Ðto€pass€through,€and€on€what€schedule?݃&3£ˆVÁV݌ЀÐ` (#` (# ÐŒÝ  ÝÌÝ"‚&3£"ÝÝ  Ýà  àÝ‚&3£>XÝÔ2ð–ÔððÔ3  Ôà0 ` àÝ  ÝHow€will€other€diverters€know€the€quantity€of€indirect€reuse€water€that€is€going€pastÐ X ¨ Ðtheir€diversion€points,€but€not€subject€to€their€use€except€during€times€of€shortage?݃&3£>XwXÝŒÐD!”` (#` (# ÐŒÝ  ÝÌÝ"‚&3£"ÝÝ  Ýà  àÝ‚&3£ÀYÝÔ2ð–ÔððÔ3  Ôà0 ` àÝ  ÝHow€can€any€of€this€possibly€be€enforced€without€a€watermaster?€€Does€TCEQ€intendÐ #l! Ðto€establish€watermasters€for€river€segments€in€which€it€authorizes€indirect€reuse?݃&3£ÀYùYÝŒÐ$X"` (#` (# Ðâ âŒÝ  ÝÐ ô$D # ÐThese€areas€of€confusion€could€all€be€avoided€by€simply€considering€the€newly€authorized€use€a€newÐ ° Ðâ âappropriation.€€Rules€are€clear€regarding€rights€to€water€within€the€appropriative€system€(such€clarityÐ œì Ðand€predictability€being€the€purpose€for€adopting€the€prior€appropriation€system),€and€maintainingÐ ˆØ Ða€second€ð ðset€of€booksðð€to€keep€track€of€indirect€reuse€water€is€not€necessary.Ð tÄ ÐÌà  àFurther,€if€indirect€reuse€is€considered€a€new€appropriation€several€benefits€result:Ð L œ ÐÌÝ"‚&3£"ÝÝ  Ýà  àÝ‚&3£°]ÝÔ2ð–ÔððÔ3  Ôà0 ` àÝ  ÝReturn€flows€will€be€included€in€TCEQððs€water€availability€analysis,€giving€a€moreÐ $ t Ðrealistic€picture€of€actual€water€availability€during€drought€conditions€than€Run€3€ofÐ  ` Ðthe€WAM€(which€excludes€return€flows€that€will€actually€be€occurring€under€futureÐ ü L  Ðdrought€conditions).݃&3£°]é]ÝŒÐè 8 ` (#` (# ÐŒÝ  ÝÌÝ"‚&3£"ÝÝ  Ýà  àÝ‚&3£Â_ÝÔ2ð–ÔððÔ3  Ôà0 ` àÝ  ÝThis€will€enhance€the€reliability€of€most€existing€rights€in€each€basin€ð!ð€moreÐ À  Ðaccurately€reflecting€the€water€supply€that€should€be€available€during€droughtÐ ¬ü  Ðconditions€ð!ð€and€provide€a€more€realistic€basis€for€marketing€of€surface€water€rights.݃&3£Â_û_݌Иè ` (#` (# ÐŒÝ  ÝÌÝ"‚&3£"ÝÝ  Ýà  àÝ‚&3£§aÝÔ2ð–ÔððÔ3  Ôà0 ` àÝ  ÝUse€of€return€flows€will€not€be€prevented.€€Much€like€the€proposed€TRWD€permitÐ pÀ Ðamendment,€return€flows€will€be€available€for€ð ðindirect€reuseðð€during€times€ofÐ \¬ Ðnon-shortage,€and€the€user€will€have€an€idea€of€what€sort€of€supply€he€can€anticipateÐ H˜ Ðunder€drought€conditions€(rather€than€leaving€it€to€the€vagaries€of€a€future€ð ðcallððÐ 4„ Ðduring€times€of€shortage).݃&3£§aàa݌Рp` (#` (# ÐŒÝ  ÝÌÝ"‚&3£"ÝÝ  Ýà  àÝ‚&3£(dÝÔ2ð–ÔððÔ3  Ôà0 ` àÝ  ÝThe€need€for€environmental€flows€will€be€fully€considered€in€authorization€of€a€newÐ øH Ðappropriation.݃&3£(dadÝŒÐä4` (#` (# ÐŒÝ  ÝÌIf€the€ð ðindirect€reuseðð€is€considered€a€new€appropriation,€not€only€is€the€confusion€of€uses€occurringÐ ¼  Ðoutside€the€appropriative€system€avoided,€but€substantial€benefits€are€gained€in€terms€of€the€StateððsÐ ¨ø Ðfuture€water€management.Ð ”ä ÐÌà  àFailure€to€consider€the€new€indirect€use€a€new€appropriation€creates€a€superficial€andÐ l¼ Ðrelatively€meaningless€distinction€between€those€municipalities€that€obtain€their€water€supply€underÐ X ¨ Ðtheir€own€rights€and€those€that€purchase€their€supply€from€another.€€It€creates€potential€confusion€andÐ D!” Ðcompetition€among€entities€engaged€in€regional€water€supply€and€those€engaged€in€regionalÐ 0"€  Ðwastewater€treatment,€when€the€same€entity€does€not€perform€both€functions.Ð #l! ÐÌà  àFinally,€it€must€be€recognized€that€this€issue€will€increase€in€importance€in€the€future€asÐ ô$D # Ðmunicipal€return€flows€increase€due€to€increased€municipal€consumption.€€The€public€interestÐ à%0!$ Ðrequires€clear€and€predictable€rules€for€addressing€future€use€of€this€water,€such€as€those€alreadyÐ Ì&"% Ðexisting€under€the€prior€appropriation€doctrine,€rather€than€new€òòad€hocóó€rules€developed€through€aÐ ¸'#& Ðseries€of€contested€indirect€reuse€Ô_Ôapplications.Ô_ÔÔ_ÔÔ_ÔÔ_ÔÔ_ÔÔ_ÔÔ_ÔÔ_ÔÔ_ÔÔ_ÔÔ_ÔÔ_ÔÔ_ÔÔ_ÔÔ_ÔÔ_ÔÔ_ÔÔ_ÔÔ_ÔÔ_ÔÔ_ÔÔ_ÔÔ_ÔÔ_ÔÔ_Ô