ÿWPC& B‡ÉŸÎ]Ôg1ò’ŸÃÿ>"±¶ñµÜ onrÉ FhèÝ=zŽÿõÈ­\yV(g›ã¬ƒ!_Ê>e¸€8¹uø¸‚ÏV¸¹ÖáŽ5AÍ3<ÿ!°ÈòÍ÷EnžPŠf#í¦8•ž_â¢@ó' ¯("¸|µË6V>Ýñzá5{h¼Ç'ÇÕkš›ç‚*ïîæ2Gœ©äó¯CJØŠÒÂj»‡ÿ ¡Ò=¯ú) Ì&bÌ~žØ"èõ’˜ˆj5.ˆ¼“Sâu€F7I‘sï[)ù "3ëâêº  ‡oSÆÛMå¤"§°ƒPóëŠ4¶Þ·:fÒ+<Âj_âÛÄΞšAš®Û†ˆ˜¤ð'ˆí›ÖƒÖ-QÌÐ{Ay)°8¨ÈMø[ýRU«[ÚMm¡ äKv” !ÁÛÝ1ÏÌÁ ¾Þ »¯ìíoÙ‚~*\R`mHïŠ;—©ÎÏæ’DAùU“*Œ³]yã#Æ”ff—ÁYÒqKã«í¤ bg³êl_ü)nwÛÆ±Ýºƒ’qÉJ÷·qWÁëQfð®búM²ôƒÝ©'ioÅ]<ô 9­ b?³M.ÿ%V~,¥NúKA9Z ˆÁáT„%½·û/ü¹í½ ]UN %d 04jNžn« #ÁK „ Ê àZ ^ : wF 4J ^ m` w F† bÌ 0 Dæ 0 g*í‘‘‘â~~~ 0—` 0D÷÷÷÷÷÷ 0P;‹_“““ 0 cò 1uU 72Ê 0wü 0Šs 0 ý 0´ 0ÇQ 0Û 0ïó 0Dâ 1‰& 72¯¯¯¯¯¯¯ñáááádÒ"Ò"Ò"Ò"Ã6$6$6$6$6$6$6$6$6$6$6$6$6$6$6$6$6$6$6$6$6$6$6$6$6$6$6$ Bù%xÖÃ9 Z‹6Times New Roman RegularX( ¤U$¡¡Ó  Ó«<þ6X9`(CourierXôxþ6X@ɹ`7ûX@˜AkitaÈÈÈÈÈÈÈÈ0˜C:\DOCUME~2\Doug\APPLIC~1\Corel\PERFEC~1\9\CUSTOM~1\letter.wptC:\Documents and Settings\Doug\Application Data\Corel\PerfectExpert\9\Custom WP Templates\letter.wpt ÖÝ ƒS%ÝÓ  ÓÚ  Ú1Ú  Ú.Ý  ÝÔ_Ô€ûÿÿdûòòÔ‡ôØòXXÔüÿÿdüSee€generallyóó€Act€of€June€2,€1997,€75th€Leg.,€R.S.,€ch.€1010,€1997€Tex.€Gen.€Laws€3610€(codified€in€scatteredÐ ä4 Ðsections€of€the€Texas€Water€Code,€the€Texas€Government€Code,€the€Texas€Agriculture€Code,€the€Texas€Tax€Code,€andÐ Ð  Ðthe€Texas€Health€&€Safety€Code).ûÿÿdûÔ#†X/EXòôØX#Ôüÿÿdü»…á2â ш0g 5ÿU‹ÿÀÀÀ3|x <Ý ƒS%ÝÓ  ÓÚ  Ú3Ú  Ú.Ý  ÝÔ_Ô€Ô‡ôØòXXÔIn€rejecting€the€Cityððs€and€the€Commissionððs€intent€argument,€the€court€relied€on€the€principle,€implicit€in€another€ofÐ Ô$ Ðits€recent€cases,€that€ð ððð[Ô_Ôi]ntentÔ_Ô€does€not€trump€physical€reality€in€water€law.ðððð€€òòCity€of€San€Marcosóó,€Ô#†X/EXòôØO#ÔÔ‡ôØòXX/EÔ2004€WL€35541Ô#†X/EXòôؼ#ÔÔ‡ôØòXX/EÔš,€atÐ À Ð*€9€(citing€òòÔ_ÔDomelÔ_Ô€v.€City€of€Georgetownóó,€6€S.W.3d€349,€353„54,€360€(Tex.€App.ð!ðAustin€1999,€pet.€denied)).Ô#†X/EXòôØ #ÔÔ‡ôØòXX/EÔ€Ô#†X/EXòôØù#ÔPage ù of &ù($Ó$‘‘òòÚ  Ú0Ú  Úóó((3S$¥¥Ý ƒ¤U!ÝÓ  ÓÝ  ÝÚ  Ú0Ú  Ú. ãÝ ƒS%ÝÓ  ÓÚ  Ú5Ú  Ú.Ý  ÝÔ_Ô€Ô‡ôØòXXÔAs€the€appellate€court€recognized€in€òòCity€of€San€Marcosóó,€the€City€could€pursue€its€reuse€project€ð ðwithin€the€frameworkÐ ˆ$Ø Ðof€Senate€Bill€1,ðð€but€its€pre„S.B.1€common„law€rights€over€its€captured€groundwater€ð ðcannot€be€expanded€to€permit€theÐ t%Ä  ÐCity€to€discharge€its€effluent€into€the€San€Marcos€River€and€then€divert€water€downstream€without€having€obtained€anÐ 8&ˆ! Ðappropriative€right€over€that€state€water.ðð€€òòCity€of€San€Marcosóó,€2004€WL€35541Ô#†X/EXòôØO#ÔÔ‡ôØòXX/EÔš,€at€*€12.Ô#†X/EXòôØ–#Ô ØÝ ƒS%ÝÓ  ÓÚ  Ú2Ú  Ú.Ý  ÝÔ_Ô€Ô‡ôØòXXÔMemorandum€from€Mark€Jordan€to€Reuse€Committee€of€2/3/97,€at€1,€2,€4„5.Ô#†X/EXòôØO#Ô(G(2¿$¤¤Ý ƒ¤U!ÝÓ  ÓÝ  ÝÔ€ôÍÉòXXÔà  àòòÚ  Ú0Ú  Úóó(#Ã$òòÚ  Ú0Ú  Úóó((3ž¸$§§Ý ƒ¤U!ÝÓ  ÓÝ  Ý  UÝ ƒS%ÝÓ  ÓÚ  Ú4Ú  Ú.Ý  ÝÔ_Ô€Ô‡ôØòXXÔSignificantly,€this€provision€did€not€require€ð ðbed€and€banksðð€permits,€but€affirmatively€granted€the€authorization€toÐ "` Ðuse€state€watercourses€for€delivery€of€stored€water.Ô#†X/EXòôØO#Ô(;3£$´´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 çÝ ƒS%ÝÓ  ÓÚ  Ú6Ú  Ú.Ý  ÝÔ_Ô€Ô‡ôØòXXÔNote,€however,€that€ðð€11.046(c)€cannot€be€applied€to€a€reuse€application€by€a€party€other€than€the€owner€of€the€baseÐ ˆ(Ø# Ðwater€right.€€To€the€extent€staff€is€considering€authorization€of€reuse€by€the€owners€of€regional€wastewater€treatmentÐ t)Ä$ Ðfacilities,€who€do€not€own€the€base€water€right,€ðð€11.046(c)€is€not€available€as€a€vehicle€for€such€authorization.€€Rather,Ð 8*ˆ% Ða€new€appropriation€under€30€TAC€ðð€297.42(g)€would€be€required.€€Significantly,€this€rule€grants€no€preferential€rightÐ ü*L& Ðto€the€owner€of€the€discharge.Ô#†X/EXòôØO#Ô ZÐ L-œ(  ÐÝ ƒS%ÝÓ  ÓÚ  Ú7Ú  Ú.Ý  ÝÔ_Ô€Ô‡ôØòXXÔÔ_ÔTRWDÔ_Ô€Interoffice€Memorandum€from€Ô_ÔRoganÔ_Ô€to€Schwartz€of€2/10/84,€ð ðSecondary€Use€Permit€Requirements,ðð€at€15.Ô#†X/EXòôØh#Ô ¹Ý ƒS%ÝÓ  ÓÚ  Ú8Ú  Ú.Ý  ÝÔ_Ô€Ô‡ôØòXXÔAdmittedly,€a€water€availability€analysis€would€need€to€be€performed,€but€100%€reliability€would€not€be€required€forÐ dd Ðmunicipal€use€in€those€cases€in€which€an€alternate€supply€is€available.€€òòSeeóó€30€òòTex.€Admin.€Codeóó€ðððð297.42(c),Ð PP Ð297.42(d).Ô#†X/EXòôØO#Ô dÝ ƒ¤U!ÝÓ  ÓÝ  ÝÔ_ÔÑ  ÑÑ€ÑÑ8€/EXXdìdÈ8ÑÑ  ÑÓ  Óò òÔ‡¼`»XXÔIndirect€Reuse€of€Municipal€Effluent:€Ð ° ÐSenior€Ô_ÔAppropriatorÔ_Ôððs€PerspectiveÔ#†X/EX»¼`¦#ÔÐ Ä ÐÌDouglas€G.€Ô_ÔCaroomÔ_ÔÐ Ä ÐÔ_ÔBickerstaffÔ_Ô,€Heath,€Smiley,€Ð ° ÐÔ_ÔPollanÔ_Ô,€Ô_ÔKeverÔ_Ô€&€Ô_ÔMcDanielÔ_Ô,€Ô_ÔL.L.P.Ô_ԀРœ ì ÐÌòòTexas€Bar€Journal€óóÐ t Ä ÐMarch€2004ó óÐ \ ¬ ÐÌÓ—Óà  àAs€water€demands€grow€to€equal€or€exceed€available€supplies,€one€source€of€water€being€eyedÐ 4„  Ðby€thirsty€municipalities€is€the€ð ðindirect€reuseðð€of€treated€municipal€wastewater€effluent.€€DirectÐ  p  Ðreuse€of€municipal€effluent,€òòe.g.óó,€piping€the€effluent€to€a€park€or€golf€course€for€irrigation,€has€longÐ  \  Ðbeen€recognized€in€Texas.€€Proponents€of€ð ðindirect€reuseðð€would€discharge€the€wastewater€effluentÐ øH  Ðinto€a€state€watercourse€and€withdraw€an€equivalent€amount€of€water€at€a€downstream€location€forÐ ä4  Ðsubsequent€use.€€This€presents€a€clear€conflict€between€the€owners€of€the€municipal€effluent€and€theÐ Ð  Ðexisting€downstream€water€right€holders€who€would€otherwise€be€able€to€divert€and€use€this€supplyÐ ¼  Ðunder€their€existing€rights.€€Under€existing€law,€in€the€authorððs€opinion,€the€new€indirect€use€can€onlyÐ ¨ø Ðbe€authorized€as€a€new€appropriation,€junior€to€all€existing€downstream€water€rights.Ð ”ä ÐÌòòóóà  àThe€Texas€Commission€on€Environmental€Quality€(Ô_ÔTCEQÔ_Ô€or€Commission)€has€had€pendingÐ l¼ Ðbefore€it€for€the€last€several€years€numerous€competing€applications€for€bed€and€banks€permits€thatÐ X¨ Ðwould€authorize€ð ðindirect€reuseðð€of€state€water.€€In€May€2003,€Ô_ÔTCEQÔ_Ô€staff€proposed€a€draft€permitÐ D” Ðfor€the€first€of€these€major€applications,€that€of€Tarrant€Regional€Water€District€(Ô_ÔTRWDÔ_Ô).€€The€draftÐ 0€ Ðpermit,€while€making€the€indirect€reuse€subject€to€all€existing€water€rights,€does€not€consider€theÐ l Ðnewly€authorized€use€to€be€a€new€appropriation;€rather,€it€apparently€authorizes€the€new€use€as€partÐ X Ðof€Ô_ÔTRWDÔ_Ôððs€original€appropriation€of€water.€€This€position,€that€the€newly€authorized€use€is€not€a€newÐ ôD Ðappropriation,€is€legally€incorrect,€practically€unnecessary,€and€poor€public€policy,€for€the€reasonsÐ à0 Ðdiscussed€below.€Ð Ì ÐÌò òòòLegally€Incorrectóóó óÐ ¤ ô ÐÌà  àPrior€to€the€adoption€of€Senate€Bill€1€amendments,× ƒ ×Ý ƒ$ÓÝòòÚ  Ú1Ú  ÚóóÝ  Ý×  ×€it€was€clearly€the€position€of€the€courtsÐ |"Ì  Ðand€of€the€Commission€that€a€new€appropriation€was€required€to€authorize€use€of€wastewater€orÐ h#¸! Ðsurplus€water€discharged€into€a€state€watercourse€following€initial€use.€€The€rule€was€aptlyÐ T$¤" Ðsummarized€by€Wells€Hutchins:Ð @% # ÐÌÔ& ˆ Ôà8  àAn€Ô_ÔappropriatorÔ_Ô€of€water€has€a€Ô_ÔusufructuaryÔ_Ô€right€therein,€not€an€ownership€in€theÐ 'h"% Ðòòcorpus€óóof€the€water.€€If€after€using€the€water,€he€does€nothing€to€recapture€the€excessÐ (T#& Ðbefore€it€leaves€his€land€or€project€ð!ð€and€particularly€before€it€drains€into€a€naturalÐ ð(@$' Ðwatercourse€ð!ð€he€has€no€jurisdiction€over€the€escaped€water.ÐÜ),%(Ð Ð  ÐÌòòThe€Texas€Law€of€Water€Rights€óó551€(1961).€€Ô'ˆ'ý ÔIn€1997,€immediately€prior€to€the€legislative€sessionÐ ´+'* Ðâ âthat€produced€S.B.€1,€the€Commission€held€a€work€session,€considering€the€views€of€parties€who€hadÐ  ,ð'+ ÐÔ_Ôparticipated€in€a€year„long€working€group€on€this€issue,€as€well€as€staff€recommendations,€on€theÐ ° Ðissue€of€reuse.€€The€Commission€adopted€the€following€policies:Ð œì Ðâ âÌÓ€ 1&)*+,-./0(ð–y3'ÓÝ"‚&3£"ÝÝ  Ýà8  àÝ‚&3£uÝÔ2ð–ÔððÔ3  Ôà0` Ð Ð àÝ  ÝòòDirect€Reuse€of€Surface€Water€Authorizedóó:€Except€as€specifically€providedÐ tÄ Ðotherwise€in€the€water€right,€state€water€appropriated€under€a€surface€waterÐ `° Ðright€can€be€beneficially€used€and€reused€by€the€water€right€holder€for€theÐ L œ Ðauthorized€purposes,€locations,€etc.,€under€the€water€right€òòprioróó€to€its€releaseÐ 8 ˆ Ðinto€a€stream.݃&3£u®ÝŒÐ$ t` Ð ` Ð  ÐŒÝ  ÝÌÝ"‚&3£"ÝÝ  Ýà8  àÝ‚&3£ÞÝÔ2ð–ÔððÔ3  Ôà0` Ð Ð àÝ  ÝòòIndirect€Reuse€Generally€Requires€a€New€Water€Rightóó:€Generally,€onceÐ ü L  Ðsurface€water€diverted€under€a€water€right€returns€to€a€stream,€the€water€rightÐ è 8  Ðholder€loses€the€right€to€the€continued€use€of€the€water€under€the€waterÐ Ô$  Ðright....€€There€would€be€exceptions€where€the€water€right€specificallyÐ À  Ðprovides€for€the€reuse€of€return€flows€and/or€a€downstream€water€rightÐ ¬ü  Ðexplicitly€provides€that€it€is€subordinate€to€the€upstream€reuse€of€return€flowsÐ ˜è  Ðby€the€discharger.݃&3£ÞÝŒÐ„Ô ` Ð ` Ð  ÐŒÝ  ÝÌÝ"‚&3£"ÝÝ  Ýà8  àÝ‚&3£úÝÔ2ð–ÔððÔ3  Ôà0` Ð Ð àÝ  ÝòòConveyance€of€ð ðDevelopedðð€Water€in€Stream€May€be€Authorized€UnderÐ \¬ Ðð ðBed€and€Banksðð€Permit€Prior€to€Dischargeóó:€€òòPrioróó€to€the€discharge€ofÐ H˜ Ðð ðdevelopedðð€water,€the€developer€may€obtain€a€ð ðbed€and€banksðð€permit€fromÐ 4„ Ðthe€Commission€for€the€conveyance€of€this€water€in€a€watercourse€forÐ  p Ðsubsequent€diversion€(less€carriage€losses€such€as€evaporation,€transpiration,Ð  \ Ðseepage,€etc.)€and€use€by€the€developer....€€Generally,€a€person€may€not,Ð øH Ðhowever,€obtain€a€bed€and€banks€permit€after€the€fact€to€divert€surface€orÐ ä4 Ðground€water€historically€discharged€by€that€person,€including€water€that€mayÐ Ð  Ðhave€been€considered€developed€water€prior€to€its€discharge.× ƒ ×Ý ƒ$ÓÝòòÚ  Ú2Ú  ÚóóÝ  Ý×  ×òòóó݃&3£ú3݌м ` Ð ` Ð  ÐŒÝ  ÝÌIt€is,€therefore,€clear€that€prior€to€the€S.B.€1€amendments€Texas€law€required€a€new€appropriation€toÐ ”ä Ðauthorize€downstream€reuse€of€discharged€wastewater€effluent.€€This€is€because€the€reuse€occurs€atÐ €Ð Ða€new€location€with€a€new€diversion€point,€and€possibly€a€new€use.Ð l¼ ÐÌà  àThe€Third€Court€of€Appealsðð€recent€opinion,€substituted€on€motion€for€rehearing,€regardingÐ D!” Ðthe€bed€and€banks€permit€application€of€the€City€of€San€Marcos€also€supports€the€requirement€of€aÐ 0"€  Ðnew€appropriation€for€indirect€reuse€of€discharged€wastewater€effluent.€€òòCity€of€San€Marcos€v.Ð #l! ÐTCEQóó,€No.€03„02„00724„CV,€2004€WL€35541€(Tex.€App.ð!ðAustin€Jan.€8,€2004,€n.p.h.).š€€In€that€case,Ð $X" Ðbased€on€its€analysis€of€pre„S.B.€1€law,€the€court€held€that€there€is€no€common„law€right€by€whichÐ ô$D # Ðthe€City€can€retain€ownership€over€its€groundwater„derived€wastewater€effluent€after€discharging€itÐ à%0!$ Ðinto€a€state€watercourse.€€òòIdóó.€at€*€1,€12.€€Narrowly€construing€the€Cityððs€ownership€interest€under€theÐ Ì&"% Ðrule€of€capture,€the€court€concluded€that€the€City€can€not€convey€groundwater„derived€effluent€downÐ ¸'#& Ða€state€watercourse€ð ðand€then€subsequently€divert€the€water€without€obtaining€an€appropriationÐ ¤(ô#' Ðpermit.ðð€€òòIdóó.€at€*€8.€€The€Cityððs€reuse€project€would€not€fall€within€these€parameters€because€the€CityÐ )à$( Ðwould€not€be€directly€transporting€its€captured€groundwater€to€the€place€of€beneficial€use.€€òòIdóó.š€€TheÐ |*Ì%) ÐCityððs€reuse€project€ð ðdepends€on€mixing€its€effluent€with€the€spring„fed€waters€of€the€San€Ô_ÔMarcosÐ h+¸&* ÐRiver,ðð€and€the€effluent€is€not€fungible€with€the€Stateððs€water€in€the€river.€€òòIdóó.€at€*€9„10.€€Thus,Ð ° Ðnotwithstanding€the€Cityððs€declared€intention€to€reuse€its€effluent,€the€court€concluded€that€itsÐ œì Ðdischarge€of€effluent€into€a€state€watercourse€ð ðconstitutes€abandonment€as€a€matter€of€law.ðð€òòIdóó.€atÐ ˆØ Ð*€10.× ƒ ×Ý ƒ$ÓÝòòÚ  Ú3Ú  ÚóóÝ  Ý×  ×€€ššòòóóThe€appellate€court€reversed€the€district€court€and€rendered€judgment€that€the€CommissionððsÐ tÄ Ðorder€granting€the€Cityððs€permit€be€vacated€and€the€Cityððs€application€be€denied.€€òòIdóó.€at€*€12.Ð `° ÐÌà  àAdvocates€of€indirect€reuse€suggest€that€S.B.€1€amendments€changed€the€law.€€Analysis€ofÐ 8 ˆ Ðthose€amendments,€however,€indicates€that€this€interpretation€is€incorrect.€€Two€relevant€provisionsÐ $ t Ðwere€amended€by€S.B.€1:€Texas€Water€Code€ðð11.042€and€ðð11.046.€€Prior€to€these€amendments,Ð  ` Ðsection€11.042€simply€authorized€the€use€of€the€bed€and€banks€of€natural€streams€to€deliver€storedÐ ü L  Ðor€conserved€water.€€That€provision€remains,€only€slightly€modified,€as€current€section€11.042(a).× ƒ# ×Ý ƒ$ÓÝòòÚ  Ú4Ú  ÚóóÝ  Ý×  ׀Рè 8  ÐSection€11.042(b),€added€by€S.B.€1,€specifically€authorizes€the€indirect€reuse€of€òògroundwater„basedÐ Ô$  Ðreturn€flowsóó.€€As€inò òó ó€the€Commissionððs€treatment€of€the€San€Marcos€case,€section€11.042(b)€allowsÐ À  Ðthe€imposition€of€conditions€on€the€reuse€of€existing€discharges€to€protect€existing€water€rights,Ð ¬ü  ÐÔ_ÔinstreamÔ_Ô€flows,€and€bay€and€estuary€requirements.€Clearly,€however,€section€11.042(b)ððsÐ ˜è  Ðauthorization€of€indirect€reuse€is€limited€to€groundwater‚-based€discharges.× ƒ ×Ý ƒ$ÓÝòòÚ  Ú5Ú  ÚóóÝ  Ý×  ׀Р„Ô  ÐÌà  àSection€11.042(c),€also€added€by€S.B.1,€is€the€provision€primarily€relied€upon€by€advocatesÐ \¬ Ðof€indirect€reuse€of€surface€water.€€It€states€in€relevant€part:Ð H˜ ÐÌà8  àà ` à(c)€Except€as€otherwise€provided€in€Subsection€(a)€of€this€section,€òòa€personÐ  p Ðwho€wishes€to€convey€and€subsequently€divert€water€in€a€watercourse€or€stream€mustÐ  \ Ðobtain€the€prior€approval€of€the€commission€through€a€bed€and€banks€authorization.€óóÐ øH ÐThe€authorization€shall€allow€to€be€diverted€only€the€amount€of€water€put€into€aÐ ä4 Ðwatercourse€or€stream,€less€carriage€losses€and€subject€to€any€special€conditions€thatÐ Ð  Ðmay€address€the€impact€of€the€discharge,€conveyance,€and€diversion€on€existingÐ ¼  Ðpermits,€certified€filings,€or€certificates€of€adjudication,€Ô_ÔinstreamÔ_Ô€uses,€and€freshwaterÐ ¨ø Ðinflows€to€bays€and€estuaries.€Ð”äÐ 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.€€UnlikeÐ X ¨ Ðsection€11.042(b),€however,€subsection€(c)€does€not€address€reuse.€€Section€11.042(b)€is€an€expressÐ D!” Ðrecognition€of€the€reuse€right€of€the€owner€of€groundwater-based€effluent.€€òòSection€11.042(c)Ð 0"€  Ðcontains€no€such€recognition.óó€€Rather,€section€11.042(c)€implicitly€requires€an€independent€sourceÐ #l! Ðof€legal€authority€for€the€ownership€rights€of€the€person€requesting€bed€and€banks€authority.€€UnderÐ $X" Ðthe€òòCity€of€San€Marcosóó€case€it€is€clear€that€without€express€legislative€authorization€such€anÐ ô$D # Ðownership€interest€will€normally€require€a€new€appropriation.€Given€this€limitation,€section€11.042(c)Ð à%0!$ Ðis€appropriately€utilized€to€authorize€transmission€of€two€types€of€water:€(1)€developed€water,€suchÐ Ì&"% Ðas€water€imported€from€another€basin€that€has€not€previously€been€available€to€appropriators€in€theÐ ¸'#& 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 |*Ì%) ÐÐ h+¸&* ÐÔ_Ôà  àIndirect€reuse€advocates€also€suggest€that€such€authority€may€be€found€in€S.B.€1€amendmentsÐ ° Ðto€section€11.046(c).€€This€suggestion€is€also€incorrect.€€Section€11.046(c),€instead,€has€precisely€theÐ œì Ðopposite€effect.€€It€provides:Ð ˆØ ÐÌà8  àà ` à(c)€Except€as€specifically€provided€otherwise€in€the€water€right,€waterÐ `° Ðappropriated€under€a€permit,€certified€filing,€or€certificate€of€adjudication€may,€priorÐ L œ Ðto€its€release€into€a€watercourse€or€stream,€be€beneficially€used€and€reused€by€theÐ 8 ˆ Ðholder€of€€[that€water€right]€for€the€purposes€and€locations€of€use€provided€in€theÐ $ t Ð[water€right].€€Once€water€has€been€diverted€under€a€permit,€certified€filing,€orÐ  ` Ðcertificate€of€adjudication€and€then€returned€to€a€watercourse€or€stream,€however,€itÐ ü L  Ðis€considered€surplus€water€and€therefore€subject€to€reservation€for€instream€uses€orÐ è 8  Ðbeneficial€inflows€or€to€appropriation€by€others€unless€expressly€provided€otherwiseÐ Ô$  Ðin€the€[water€right].ÐÀ Ð Ð  ÐÌòòTex.€Water€Code€Ann.€óóðð11.046(c)€(Vernon€2000).€€The€statute,€essentially,€formalizes€the€ð ðfourÐ ˜è  Ðcornersðð€doctrine€as€it€has€been€previously€construed€by€the€Commission€and€formalizes€the€commonÐ „Ô  Ðlaw€rule€that€upon€discharge€an€appropriator€loses€all€interest€in€his€return€flows,€also€a€ruleÐ pÀ Ðpreviously,€and€consistently,€followed€by€the€Commission.€€The€statuteððs€final€clause,€recognizingÐ \¬ Ðthat€the€Commission€might€make€contrary€provisions€in€an€appropriatorððs€water€right,€does€notÐ H˜ Ðchange€pre„existing€law€and€is€certainly€not€a€recognition€or€authorization€of€a€previouslyÐ 4„ Ðunrecognized€right€of€reuse.€€Ð  p ÐÌà  à€While€the€provision€does€not,€itself,€authorize€reuse,€TCEQ€staff€apparently€consider€sectionÐ øH Ð11.046(c)ððs€final€clause€to€be€a€vehicle€by€which€reuse€can€be€authorized€through€amendment€of€theÐ ä4 Ðbase€water€right.€€This€is€correct.€€The€Commission€may€amend€a€water€right€to€authorize€reuse,€asÐ Ð  Ðit€likely€could€prior€to€S.B.€1.× ƒ9 ×Ý ƒ$ÓÝòòÚ  Ú6Ú  ÚóóÝ  Ý×  ×€€However,€section€11.046(c)€gives€no€indication€that€such€anÐ ¼  Ðamendment€to€the€base€water€right€to€authorize€reuse€should€not€be€considered€a€new€appropriationÐ ¨ø Ðwith€a€new€priority€date.€€Instead,€a€permit€amendment€to€authorize€diversion€and€reuse€at€a€pointÐ ”ä Ðdownstream€of€the€existing€discharge€must€comply€with€all€appropriate€requirements€for€amendmentÐ €Ð Ðof€a€permit.€€òòSeeóó€30€òòTex.€Admin.€Codeóó€ðð295.158(b)€(West€2003).€€Like€other€amendmentsÐ l¼ Ðpotentially€affecting€other€water€right€holders,€the€newly€authorized€use€should€be€junior€to€existingÐ X ¨ Ðuses€in€order€to€prevent€possible€impairment€of€existing€rights.Ð D!” ÐÌà  àThe€foregoing€discussion€of€sections€11.042(c)€and€11.046(c)€is€consistent€withÐ #l! Ðwell-established€rules€governing€statutory€construction.€€The€legislature€is€presumed€to€have€enactedÐ $X" Ða€statute€with€complete€knowledge€of€the€existing€law€and€with€reference€to€it.€òò€GlasscockÐ ô$D # ÐUnderground€Water€Conservation€Dist.€v.€Pruittóó,€915€S.W.2d€577,€581€(Tex.€Civ.€App.€ð!ð€El€PasoÐ à%0!$ Ð1966,€no€writ).€€Prior€to€the€S.B.€1€amendments,€existing€law€provided€that€upon€dischargeÐ Ì&"% Ðwastewater€effluent€and€other€return€flows€were€considered€state€water€available€for€furtherÐ ¸'#& Ðappropriation.€€The€legislature€clearly€made€an€exception€to€this€rule€in€the€case€of€groundwater„Ð ¤(ô#' Ðbased€effluent,€to€the€extent€that€existing€rights€and€environmental€needs€did€not€require€aÐ )à$( Ðcontinuation€of€the€discharge.€€No€such€clear€exception€was€made€in€section€11.042(c)€regardingÐ |*Ì%) Ðsurface€water„based€effluent€and€return€flows.€€Therefore,€one€must€conclude€that€the€Ô_ÔlegislatureÐ h+¸&* Ðintended€to€continue€the€existing€rule€of€law€that€requires€a€new€appropriation€for€a€new€downstreamÐ ° Ðuse.€€Thus,€while€existing€law€allows€the€Commission€to€authorize€ð ðindirect€reuse,ðð€it€provides€noÐ œì Ðsupport€for€the€proposition€that€such€reuse€does€not€amount€to€a€new€appropriation.Ð ˆØ ÐÌò òòòPractically€Unnecessaryóóó óÐ `° ÐÌà  àIronically,€it€appears€that€no€useful€purpose€would€be€served€by€the€Ô_ÔTCEQÔ_Ô€staffððs€currentÐ 8 ˆ Ðposition€that€indirect€reuse€does€not€amount€to€a€new€appropriation.€€If€the€Ô_ÔTRWDÔ_Ô€amendment€isÐ $ t Ðrepresentative,€future€indirect€reuse€authorizations€will€be€made€subject€to€all€existing€water€rights.€Ð  ` ÐIf€this€is€the€case,€particularly€in€drought€times,€the€holder€of€the€indirect€reuse€right€gains€no€benefitÐ ü L  Ðfrom€the€staffððs€conclusion€that€a€new€appropriation€is€not€involved.€€During€times€of€shortage,€theÐ è 8  Ðreuse€right€will€be€subject€to€the€same€limitations€that€would€govern€a€new€appropriation.Ð Ô$  ÐÌà  àMoreover,€it€appears€that€the€same€restrictions€applied€by€the€staff€to€Trinity€River€indirectÐ ¬ü  Ðreuse€would€also€be€applicable€to€other€state€rivers.€€A€1984€Commission€staff€memorandum€statedÐ ˜è  Ðthat€municipal€return€flows€were€routinely€considered€in€water€availability€models€used€to€determineÐ „Ô  Ðthe€availability€of€unappropriated€water.Ô_Ô× ƒ= ×Ý ƒ$ÓÝòòÚ  Ú7Ú  ÚóóÝ  Ý×  ×Ô_Ô€€Because€of€this€consideration,€comparable€restrictions€willÐ pÀ Ðbe€needed€in€all€river€basins€to€protect€existing€rights€issued€in€reliance€on€those€return€flows.€€If€suchÐ \¬ Ða€ð ðjunior,€subject€to€callðð€provision€is€included€in€future€indirect€reuse€permits,€the€obvious€questionÐ H˜ Ðarises:€What€purpose€is€served€by€not€considering€the€new€indirect€reuse€to€be€a€new€appropriation?Ð 4„ ÐÌà  àThe€answer€appears€to€be€ð ðnone.ðð€€The€same€permits€could€be€authorized€under€CommissionÐ  \ ÐRule€297.42,€and€the€confusion€created€by€authorization€of€an€additional€use€and€diversion€pointÐ øH Ðoutside€the€appropriative€system€could€be€avoided.× ƒA ×Ý ƒ$ÓÝòòÚ  Ú8Ú  ÚóóÝ  Ý×  ×€€Ð ä4 ÐÌò òòòPoor€Public€Policyóóó óÐ ¼  ÐÌà  àFinally,€authorization€of€indirect€reuse€essentially€outside€the€prior€appropriation€system,€asÐ ”ä Ðcurrently€proposed€in€the€draft€Ô_ÔTRWDÔ_Ô€permit€amendment,€is€poor€public€policy.€€It€unnecessarilyÐ €Ð Ðcomplicates€administration€of€water€rights€ð!ð€an€area€in€need€of€further€simplification,€not€furtherÐ l¼ Ðcomplication.€€Examples€of€such€potential€confusion,€and€questions€left€unresolved,€include:€1)Ð X ¨ Ðdefining€a€ð ðtime€of€shortageðð€during€which€the€indirect€reuse€water€is€subject€to€call€by€existingÐ D!” Ðrights;€2)€determining€whether€the€operator€of€an€on„channel€storage€reservoir€is€required€to€passÐ 0"€  Ðthrough€water€subject€to€the€indirect€reuse€permit€and,€if€so,€the€amount€of€water€to€pass€through,€andÐ #l! Ðon€what€schedule;€3)€clarifying€for€other€diverters€the€quantity€of€indirect€reuse€water€that€is€goingÐ $X" Ðpast€their€diversion€points,€but€not€subject€to€their€use€except€during€times€of€shortage;€and€4)Ð ô$D # Ðestablishing€some€mechanism,€such€as€the€use€of€Ô_ÔwatermastersÔ_Ô,€to€enforce€this€regime€for€riverÐ à%0!$ Ðsegments€in€which€the€Commission€authorizes€indirect€reuse.€€Ð Ì&"% ÐÌà  àThese€areas€of€confusion€could€all€be€avoided€by€simply€considering€the€newly€authorizedÐ ¤(ô#' Ðuse€a€new€appropriation.€€Rules€are€clear€regarding€rights€to€water€within€the€appropriative€systemÐ )à$( Ð(such€clarity€and€predictability€being€the€essential€purpose€for€adopting€the€prior€appropriationÐ |*Ì%) Ðsystem),€and€maintaining€a€second€ð ðset€of€booksðð€to€keep€track€of€indirect€reuse€water€is€notÐ h+¸&* ÐÔ_Ônecessary.€€Further,€considering€indirect€reuse€to€be€a€new€appropriation€yields€other€benefits€to€theÐ ° ÐStateððs€future€water€management:€1)€Return€flows€will€be€included€in€TCEQððs€water€availabilityÐ œì Ðanalysis,€giving€a€more€realistic€picture€of€actual€water€availability€during€drought€conditions;€2)Ð ˆØ ÐThis€improved€analysis€will€enhance€the€reliability€of€most€existing€rights€in€each€basin€and€provideÐ tÄ Ða€more€realistic€basis€for€marketing€of€surface€water€rights;€3)€Use€of€return€flows€will€not€beÐ `° Ðprevented.€€Much€like€the€proposed€TRWD€permit€amendment,€return€flows€will€be€available€forÐ L œ Ðð ðindirect€reuseðð€during€times€of€non-shortage,€and€the€user€will€have€an€idea€of€what€sort€of€supplyÐ 8 ˆ Ðhe€can€anticipate€under€drought€conditions;€and€4)€The€need€for€environmental€flows€will€be€fullyÐ $ t Ðconsidered€in€authorization€of€a€new€appropriation.Ð  ` ÐÌà  àFailure€to€consider€new€indirect€use€as€a€new€appropriation€creates€a€superficial€and€relativelyÐ è 8  Ðmeaningless€distinction€between€those€municipalities€that€obtain€their€water€supply€under€their€ownÐ Ô$  Ðrights€and€those€that€purchase€their€supply€from€another.€€It€also€creates€potential€confusion€andÐ À  Ðcompetition€among€entities€engaged€in€regional€water€supply€and€those€engaged€in€regionalÐ ¬ü  Ðwastewater€treatment,€when€the€same€entity€does€not€perform€both€functions.€€Finally,€it€must€beÐ ˜è  Ðrecognized€that€this€issue€will€increase€in€importance€in€the€future€as€municipal€return€flows€increaseÐ „Ô  Ðdue€to€increased€municipal€consumption.€€The€public€interest€requires€clear€and€predictable€rules€forÐ pÀ Ðaddressing€future€use€of€this€water,€such€as€those€already€existing€under€the€prior€appropriationÐ \¬ Ðdoctrine,€rather€than€new€òòad€hocóó€rules€developed€through€a€series€of€contested€indirect€reuseÐ H˜ Ðapplications.Ð 4„ ÐÌÓ  Óò òNOTESó óÐ  \ ÐÓï`ÓÌ