ADOPTED RULES An agency may take final action on a section 30 days after a proposal has been published in the Texas Register. The section becomes effective 20 days after the agency files the correct document with the Texas Register, unless a later date is specified or unless a federal statute or regulation requires implementation of the action on shorter notice. If an agency adopts the section without any changes to the proposed text, only the preamble of the notice and statement of legal authority will be published. If an agency adopts the section with changes to the proposed text, the proposal will be republished with the changes. TITLE 1. ADMINISTRATION PART V. General Services Commission CHAPTER 111.Executive Administration Division Historically Underutilized Business Certification Program 1 TAC sec.111.23 The General Services Commission adopts an amendment to sec.111.23 concerning Graduation Procedures. The amendments are adopted without changes to the proposed text as published in the December 13, 1996, issue of the Texas Register (21 TexReg 11903) The amendments to sec.111.23 are being adopted to update Historically Underutilized Business (HUB) graduation procedures because of a change in the Small Business Administration (SBA) industry size standards (13 Code of Federal Regulations, sec.121.201). The amendments delete the requirement that a HUB graduates upon maintaining total gross receipts or total employment levels during four consecutive years which exceed 75% of the U.S. Small Business Administration's size standards. The amendments also remove specific dollar amounts from industry/category descriptions in sec.111.23; require review of SBA size standards each Fiscal Year; and if required, make administrative changes to the HUB size standards effective 1 September of each Fiscal Year. One comment was received in which the commenter expresses concern that the HUB Graduation rule is not authorized by statute, is not consistent with the policy goals for the HUB program, and lacks clear procedures for administration. Eligibility Services Inc. commented against the rule. The commission disagrees with the assertion that its HUB graduation standards are not authorized by statute. The statutory definition of "HUB" requires that prospective HUBs be "socially disadvantaged" persons. The determination of whether a person is "socially disadvantaged" is based on two criteria. First, the person must be a member of an ethnic group that has been socially disadvantaged. Second, the person must have suffered the effects of discriminatory practices or other insidious circumstances. In determining the second element, the commission finds that persons who have reached the graduation thresholds for four consecutive years are not suffering the effects of discriminatory practices or other insidious circumstances. The commission disagrees with the assertion that its use of SBA size standards for graduation is not consistent with the policy and intent of HUB legislation. The commission finds that the SBA standard size criteria are a valid measure of a HUB's entry into commerce. Therefore, the commission uses this standard to serve as a basis for determining whether the HUB in question suffers the effects of discriminatory practices or other insidious circumstances. The commission disagrees with the assertion that it lacks clear procedures for administration of its graduation rule. Further, the commission finds that, even if it presently lacked such procedures, this would not prohibit the adoption of the amendment in question since procedures may be developed to administer the rule after its adoption. The amendment is adopted in accordance with Government Code, Title 10. Subtitle D, Chapter 2161, which authorizes the commission to administer the HUB program. This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority. Issued in Austin, Texas, on January 28, 1997. TRD-9701282 Judy Ponder General Counsel General Services Commission Effective date: February 18, 1997 Proposal publication date: December 13, 1996 For further information, please call: (512) 463-3960 TITLE 19. EDUCATION PART I. Texas Higher Education Coordinating Board CHAPTER 9.Public Junior Colleges SUBCHAPTER J.Approval of Continuing Education Courses for State Appropriations to Public Community Colleges and Texas State Technical College 19 TAC sec.sec.9.211 - 9.216 The Texas Higher Education Coordinating Board adopts amendments to sec.9.211- sec.9.216 concerning Approval of Continuing Education Courses for State Appropriations to Public Community Colleges and Texas State Technical College. Section 9.212 and sec.9.214 are adopted with changes to the proposed text as published in the November 26, 1996, issue of the Texas Register (21 TexReg 11431). Sections 9.211, 9.213, 9.215 and 9.216 are adopted without changes and will not be republished. The changes will replace language that is no longer current terminology relative to continuing education courses. The references in the Board rules include the outdated terminology "postsecondary technical and vocational adult" courses. In general, higher education has come to know these kinds of courses as continuing education courses and the amendments will update these references. The amendments are non-substantive in that the only functional change is in language usage and not content. No comments were received regarding adoption of the amendments. The amendments are adopted under Texas Education Code, sec.61.061, sec.130.003(b), and sec.135.04 which provides the Texas Higher Education Coordinating Board with the authority to adopt rules concerning Approval of Continuing Education Courses for State Appropriations to Public Community Colleges and Texas State Technical College. sec.9.212.Authority. The Texas Education Code, Sections 61.061, 130.003(b), and 135.04 provides the authority for the approval of continuing education courses for state appropriations. sec.9.214.Approval. (a) Professional practices routinely acceptable in the development of any course of instruction must be followed for continuing education courses. As a minimum, continuing education course requests must: (1)-(4) (No change.) (b) (No change.) (c) Continuing education course revisions must be submitted to the Coordinating Board, Community and Technical Colleges Division, for approval. (d) The governing board of the postsecondary institution will establish tuition and fees for state-funded, continuing education courses. Tuition and fees for state-funded courses will be uniformly and consistently assessed. (e) Continuing education courses will be approved for five years from the beginning of the quarter following the approval date. The termination date for each course will be reflected on the approved course list. Approved revisions or updates to the course list will renew that five year approval, and any course not offered within a five year period will be deleted from the approved course list. (f) Any continuing education course request meeting or exceeding 360 contact hours must be dealt with as a new postsecondary technical and vocational program request and will be subject to all the requirements for postsecondary technical and vocational programs for state appropriations as outlined in Subchapter G of this chapter (relating to Approval of Postsecondary Technical and Vocational Programs for State Appropriations to Community and Junior Colleges and Texas State Technical College). (g) (No change.) This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority. Issued in Austin, Texas, on January 27, 1997. TRD-9701337 James McWhorter Assistant Commissioner for Administration Texas Higher Education Coordinating Board Effective date: February 19, 1997 Proposal publication date: November 26, 1996 For further information, please call: CHAPTER 11.Texas State Technical College SUBCHAPTER C.Operational Provisions 19 TAC sec.11.51, sec.11.55 The Texas Higher Education Coordinating Board adopts amendments to sec.11.51 and sec.11.55, concerning Operational Provisions without changes to the proposed text as published in the November 26, 1996, issue of the Texas Register (21 TexReg 11432). The changes will replace language that is no longer current terminology relative to continuing education courses. The references in the Board rules include the outdated terminology "postsecondary technical and vocational adult" courses. In general, higher education has come to know these kinds of courses as continuing education courses and the amendments will update these references. The amendments are non-substantive in that the only functional change is in language usage and not content. No comments were received regarding adoption of the amendments. The amendments are adopted under Texas Education Code, sec.135.04 which provides the Texas Higher Education Coordinating Board with the authority to adopt rules concerning Operational Provisions. This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority. Issued in Austin, Texas, on January 27, 1997. TRD-9701338 James McWhorter Assistant Commissioner for Administration Texas Higher Education Coordinating Board Effective date: February 19, 1997 Proposal publication date: November 26, 1996 For further information, please call: (512) 483-6160 TITLE 31. NATURAL RESOURCES AND CONSERVATION PART XX. Edwards Aquifer Authority CHAPTER 701. Filing and Processing of Permit Applications The Edwards Aquifer Authority (Authority) adopts new subchapters C, D, E, F, G and H of Chapter 701, sec.sec.701.31-701.35,701.52-701.59, 701.71-701.77, 701.91-701.102, 701.121-701.131, 701.141-701.147, concerning filing and notices, administrative and technical review, initial regular permit amounts and terms, hearings, final decisions and post hearing processes on applications for initial regular permits governing withdrawals of water from the Edwards Aquifer. Proposed sec.sec.701.31, 701.53, 701.55, 701.58, 701.59, 701.72, 701.73, 701.74, 701.75, 701.76, 701.77, 701.92, 701.94, 701.101, 701.121, 701.122, 701.124, 701.125, 701.126 and 701.130 are adopted with changes to the proposed text as published in the November 12, 1996, Texas Register (21 TexReg 11071). Proposed sec.701.51 is withdrawn and not adopted. Sections 701.32-701.35, 701.52, 701.54, 705.56, 701.57, 701.71, 701.91, 701.93, 701.95-701.100, 701.102, 701.123, 701.127-701.129, 701.131, 701.141-701.147 are adopted without change. The Authority adopts these rules pursuant to the Conservation Amendment of the Texas Constitution, Article 16, sec.59, the Edwards Aquifer Authority Act, chapter 626, 73rd Legislature, Regular Session (1993), as amended (the "Act"), the Authority's powers and duties under the Act to promulgate rules and to implement and enforce a permit system for withdrawals of water from the Edwards Aquifer, and the Texas Water Code, Chapter 36. These rules implement sec.sec.1.08, 1.11 and 1.14-1.17 of the Edwards Aquifer Authority Act. The Legislature created the Authority pursuant to the Conservation Amendment, which makes the protection and conservation of underground water and all other natural resources of the State of Texas both public rights and public duties. Section 1.08(a) of the Act grants the Authority all the powers, rights and privileges necessary to manage, conserve, preserve, and protect the Edwards Aquifer and to increase the recharge of, and prevent the waste and pollution of water in, the aquifer. Section 1.08(a) also confers upon the Authority all the rights, powers, privileges, authority, functions and duties provided by the Conservation Amendment and the general law of the State, including Chapter 36 of the Texas Water Code. The Act creates a permitting system for withdrawals of underground water from the Edwards Aquifer. These rules, together with previously adopted subchapters A and B of chapter 701 (See 21 TexReg 11377, November 22, 1996), implement and carry out a permitting scheme for initial regular permits required by sec.1.16 of the Act. The Act requires the Authority to accept timely filed historical claims to underground water called "declarations of historical use" and, to the extent water is available for permitting, to issue "initial regular" permits to those persons who establish by convincing evidence that an amount of underground water was withdrawn from the aquifer and beneficially used without waste during the 21-year historical period of June 1, 1972, to May 31, 1993. The "declaration of historical use" constitutes an application for an initial regular permit. The Act requires the Authority to make a final determination on all historical claims for initial regular permits before considering any other claim for water that is not based on proven beneficial use during the historical period. The Act does provide for permits to be issued on an emergency basis to prevent the loss of life or to prevent severe, imminent threats to public health or safety. According to the express terms of the Act, declarations of historical use were to be filed with the Authority by March 1, 1994. The Act was intended by the 73rd Legislature to become effective on September 1, 1993, with the required filing date following the effective date by six months. However, the effectiveness of the Act was unexpectedly delayed by objections under the federal Voting Rights Act - objections that were resolved by the 1995 amendment to the Act that provided for the election, rather than the appointment of the board of directors. The Act was then challenged in state court on constitutional grounds, resulting in an injunction barring implementation of the Act. The injunction was dissolved by the Texas Supreme Court, and the Act thereby become effective, on June 28, 1996. Barshop v. Medina County Underground Water Conservation District, 925 S.W. 2d 618 (Tex. 1996). In its opinion upholding the Act, the Supreme Court recognized that the Legislature intended to require the filing of declarations of historical use six months following the effective date of the Act and rejected the argument that the stale March 1, 1994, filing date was an immovable, fatal flaw in the legislation. In general, under sec.1.15(b) of the Act, persons within the jurisdictional boundaries of the Authority may not withdraw underground water from the Edwards Aquifer or begin construction of a well or other works designed for the withdrawal of water from the aquifer unless they obtain a permit from the Authority. This prohibition does not apply to a well that produces 25,000 gallons of underground water from the Edwards Aquifer per day or less that is used exclusively for domestic use or watering of livestock (Act, sec.1.16(c)). Such wells must be registered with the Authority (or with a local groundwater conservation district), but need not be metered and may continue to use underground water from the Edwards Aquifer exclusively for domestic and livestock uses (Act, 1.33). Domestic and livestock uses are defined by the Act to include use of water for drinking, washing, and culinary purposes, irrigation of a family garden or orchard the produce of which is for household consumption only, and watering of animals (Act, sec.1.03(9)). However, the exemption for small domestic and livestock wells does not extend to a well serving a subdivision requiring platting (Act, sec.1.33(c)). Under the Act, initial regular permits are subject to proportional reduction to reflect the total amount of water available for withdrawals through non-exempt wells. The total amount of water available is 450,000 acre feet per calendar year, unless the board of the Authority determines in consultation with appropriate state and federal agencies, that additional water supplies are available through the implementation of various water management strategies and studies (sec.1.14(d)). However, the Act provides two safe harbors against proportional reduction to reflect the total amount of water available for permitting. An existing user that qualifies for the "irrigation withdrawal floor" is assured two acre-feet of underground water for every acre of land the user actually irrigated during any one calendar year of the historical period. The "historical average withdrawal floor" is available to a historical user that withdrew and beneficially used water from the aquifer for at least three years of the historical period. Such a user is assured its annual average beneficial water use during the years of the historical period in which it withdrew water from the aquifer. Although the Act prohibits withdrawals from non-exempt wells without a permit, it provides "interim authorization" to persons who produced water from a well on the effective date of Act to continue withdrawing water until the filing date for declarations of historical use. For an existing user with interim authorization that timely filed a declaration of historical use, the Act extends the authorization until a final and appealable decision is rendered on the user's application for permit. On September 3, 1996, the Authority published in the Texas Register, volume 21, page 8401, a first set of proposed filing rules contained in subchapter A and B of chapter 701. Among other things, these rules, which were adopted by the Authority on October 29, 1996, and published in the November 22, 1996, Texas Register (21 TexReg 11377) established December 30, 1996, as the filing deadline for declarations of historical use. Under 701.19 of this first set of rules, applications for initial regular permits must be filed with the Authority no later than December 30, 1996. An application is considered timely filed with the Authority if the application and the $25 application fee are 1) actually received in the Authority offices by 5:00 p.m. on December 30, 1996 or 2) deposited in the United State mail enclosed in a postpaid envelope properly addressed to the Authority which bears an official postmark date of no later than December 30, 1996. Applications must be made on printed forms prescribed by and available from the Authority. Subchapters C-H, the subject of this rulemaking, should be read in conjunction with adopted Subchapters A and B. The terms and provisions of subchapters C-H, which are summarized below, provide the procedures by which the staff of the Authority will review applications for initial regular permits, make initial determinations on those applications, and provide notice to the applicants. The rules also provide a procedure by which an applicant may supplement his application and protest his or another's initial determination permit and seek a contested case hearing on the underlying application. Finally, the rules set out a procedure by which the Authority will hold a contested case hearing and make a final decision on such hearings. The rules also provide for judicial review of those decisions. These rules, in short, provide the process, based on the boundaries established by the Act and the Administrative Procedures Act, to review and issue water withdrawal permits to historical users of the Edwards Aquifer. The new rules in subchapters C-H, as adopted, differ in some respects from the proposed published rules based on comments received from the public and further review by staff. Adopted rules are referred to by their numbers as proposed. Proposed sec.701.51, relating to De Minimis Users, is withdrawn in its entirety, therefore, sec.701.51 will be reserved for future use. Specific changes and reasoned justification for the changes and agency responses to comments are addressed in the Summary of Comments. Subchapter C, relating to Filing and Notices, contains sec.sec.701.31-701.35. This subchapter contains general provisions governing the filing of applications and sending of notices under this chapter. Section 701.31 contains additional definitions applicable to Chapter 701 and should we read together with the definitions set forth in previously adopted subchapter A, sec.701.1. Sections 701.32 and 701.33 establish a docket clerk and docket system that the Authority will use in accepting and filing applications for initial regular permits and supporting documentation. Section 701.34 sets forth a standard rule for mailing notices and other communications to the applicant or another person by the Authority or to the Authority by an applicant. Section 701.35 governs the numbers of copies an applicant must file with the Authority. It provides that the applicant shall file with the Authority an original and one copy of the application and supporting documentation. Subchapter D, relating to Administrative Review of Declarations of Historical Use, contains sec.sec.701.52-701.59. This subchapter contains provisions governing the consequences of filing a declaration of historical use and the administrative review of those declarations. Section 701.52 states that the failure to timely file a declaration for historical use extinguishes and bars any claim to an initial regular permit under sec.1.16 of the Act, but does not affect any right to withdraw water from an exempt well. Section 701.53 provides interim authorization to an existing user who timely files a declaration for historical use if the well is in compliance with all statutes and rules relating to well construction, approval, location, spacing and operation. Interim authorization allows the existing user to withdraw water from the aquifer up to the user's annual historical maximum beneficial use of water without waste. Section 701.53 also provides that interim authorization is subject to the rules or plans of the Authority, is modified by issuance of an initial determination permit and ends on entry of a final and appealable order by the Authority on an application. Section 701.54 provides that an applicant must file a separate declaration for every separate farm, industrial activity, municipality or other user unit, but an application may pertain to more than one well or use if the wells are located or the use occurs within the same user unit. Section 701.55 governs the procedures the Authority will follow in receiving applications for filing and requires the Authority to issue a statement of interim authorization to each applicant as soon as practicable. Section 701.56 governs the procedures the Authority will follow in the event that an application is not accompanied by an appropriate application fee. Section 701.57 requires the general manager to review the application to determine whether it is complete. Sections 701.58 and 701.59 provide that the general manager will declare the application complete or incomplete by March 1, 1997, and send a notice to the applicant of that determination. If the application is determined to be incomplete, the applicant will have 30 days to supplement his application. In any event, the application will be submitted for technical review on the basis of the information filed with the Authority on the 31st day after the notice of incomplete application is sent to the applicant. Subchapter E, relating to Technical Review and Initial Determination of Declaration of Historical Use, contains sec.sec.701.71-701.77. As stated in sec.701.71, this subchapter governs the technical review and initial determinations of all declarations of historic use. Section 701.72 provides that an applicant may supplement his application by filing additional information up to 30 days after the notice of administrative completeness. The general manager may extend this time for good cause to a date no later than April 1, 1997. Section 701.73 provides that the general manager may request additional information during technical review. Upon notice of the request for additional information, the applicant has 30 days to file that information. Section 701.74 establishes the general procedures for technical review. The general manager will generally complete technical review within 90 days of the date the application is complete or 90 days after the 31st day after the date of notice of incomplete application. Generally, the purpose of technical review is to determine whether and to what extent the applicant has established withdrawals and beneficial use of Edwards Aquifer water without waste during the historical period. The general manager has the right of access to property to verify the information submitted in support of an application. After technical review, the general manager will prepare an application summary stating his preliminary findings relating to the amount of water used during the historic period, the use of the water, the applicable permit withdrawal floor, if any, and other determinative factors bearing on the water right determination. The general manager will mail the application summary along with a statement to each applicant. The statement will, among other things, notify the applicant that the right may be adjusted due to the need to proportionately reduce each water right, to reflect the waters available for permitting and set forth the applicant's right to file a protest and request a hearing. Section 701.75 provides that within 15 days after technical review of all applications is complete, the general manager will prepare a summary of all initial determination permits, after performing any necessary calculation to proportionately reduce the aggregate withdraws. In no event will the permitted withdrawal floors be reduced below their respective floor. Section 701.76 provides that the general manager will send to each applicant a copy of his initial determination permit and will publish notice of the summary of initial determination permits in the Texas Register and in newspapers of general circulation throughout the Authority. Section 701.77 provides that after the last day for filing protests on an initial determination permit, the general manager will submit to the Board for review and approval all uncontested initial determination permits. In the event of an uncontested initial determination permit seeking a water withdrawal right based on the irrigation withdrawal floor, the Board will issue to that applicant a final and appealable permit. In the event of an uncontested initial determination permit seeking a water withdrawal right on any other basis, the Board will issue a final permit with a special condition stating that the withdrawal right may be subject to adjustment following a final decision in all contested case hearings and shall state the formula for calculating that adjustment. Subchapter F, relating to Initial Regular Permit Amounts and Terms, contains sec.sec.701.91-701.102. As stated in sec.701.91, this subchapter governs the determination of amounts of withdrawals authorized by initial regular permits and the terms of those permits. Section 701.92 directs the Board to determine the amount of water available for permitting in accordance with sec.1.14 of the Act before the staff completes technical review of all timely filed declarations. Section 701.93 provides that the Authority shall issue an initial regular permit for an amount of water equal to that user's annual maximum beneficial use of water without waste if the existing user establishes that amount by convincing evidence and to the extent water is available for permitting. Section 701.94 sets forth various presumptions of wasteful or nonwasteful uses of water. Section 701.95 establishes a definition for convincing evidence. Section 701.96 sets out how the Authority will determine a water withdrawal right based on use for a part of a year. Section 701.97 establishes a credit for irrigated acreage or other usage participating in a federal program. Section 701.98 sets out the two permit withdrawal floors recognized in the rules and the Act relating to two acre feet of water a year for each acre of land actually irrigated in any one calendar year during the historic period and the average historic use of water for an existing user who operated a well for three years or more during the historic period. Section 701.99 describes how an irrigator may establish his right to claim a water withdrawal permit based on the irrigation floor. Section 701.100 describes how an existing user may establish his right to claim a water withdrawal permit based on the historical average floor. Section 701.101 sets out the basis for the calculation and the formula to perform the proportionate reduction calculation in establishing each applicant's initial determination permit. Section 701.102 contains the general and special terms and conditions for each initial regular permit ultimately issued by the Authority under this chapter. Subchapter G, relating to Hearings Process, contains sec.sec.701.121-701.131. This subchapter generally describes who is entitled to file a protest on an initial determination permit and the contested case hearings process. Section 701.121 states that any applicant who has timely filed an application for an initial regular permit may file a protest disputing his or any other applicant's initial determination permit within 45 days following the date of publication of the initial determination permit in the Texas Register. That section goes on to describe the basis for the protest, that the protest must be verified, and that a separate protest must be filed on each initial determination permit. Section 701.122 provides that the Board will review each protest to determine whether it complies with the Board's rules. If the Board decides that the protest complies, the Board will refer the matter to a contested case hearing. If the Board determines that the protest does not comply, the Board will deny the protest and issue a final permit. The protestant may then appeal the decision to deny the protest under the Administrative Procedures Act. Section 701.123 provides that the general manager will contract within the State Office of Administrative Hearings to conduct contested case hearings for the Authority and sets out the authority of such administrative law judges in conducting those hearings. Section 701.124 describes the type of evidence that may be offered at a contested case hearing on an application for an initial regular permit. Section 701.125 provides that notice for such proceedings shall be prepared by the Authority stating the time and place for each hearing. The notice shall be given to each applicant and to each protestant and it shall also be published in the Texas Register and in newspapers of general circulation throughout the Authority and the area represented by the South Central Texas Water Advisory Committee 30 days before each hearing is scheduled. Section 701.126 establishes a procedure for the administrative law judge to hold a preliminary hearing to determine the parties and facts in dispute. Section 701.127 establishes a procedure to be followed at a contested case hearing. Section 701.128 requires all persons who attend a contested case hearing to conduct themselves in a manner respectful of the conduct of public business and authorizes the administrative law judge to take actions as necessary to enforce this standard. Section 701.129 prohibits any member of the Board of the Authority from engaging in ex parte communications. Section 701.130 establishes the parties' burdens of proof at a contested case hearing. Section 701.131 provides that the general manager will contract with a certified court reporter service to make the official verbatim record and transcript of the hearing. The administrative law judge is authorized to allocate the costs for this service among the parties. Subchapter H, relating to Post Hearing Process, contains sec.sec.701.141- 701.147. Section 701.141 provides that the administrative law judge will file his proposal for decision, containing findings of facts and conclusions of law separately stated with the Authority's docket clerk 30 working days after the close of the hearing and will send a copy by certified mail to each party. If the parties have informally resolved the dispute, the administrative law judge need not prepare a formal proposal for decision. Section 701.142 provides that any party affected by the proposal for decision may file exceptions 20 days after the issuance of the proposal for decision with any replies due 10 days later. Section 701.143 provides that the general manager will schedule the proposal for decision and any exceptions or replies for the Board's consideration at an open meeting. The Board will have discretion to accept or reject the proposal, but if it rejects a proposal for decision it must state in writing the reasons for its decision. Section 701.144 governs the filing of a motion for rehearing and provides that it must be filed 20 days after the party or his attorney of record is notified of the decision. A reply to the motion for rehearing is due 10 days later. Section 701.145 provides that the Board will consider the motion for rehearing during a Board open meeting or if the motion is not scheduled for action it will be overruled by operation of law 45 days after the party or his attorney of record is notified of the decision. In some circumstances this period of time can be extended up to 90 days after the Board's decision. Section 701.146 provides that the Board's decision is final and appealable on the expiration of the period for filing a motion for rehearing, on the date of the Board's order overruling a motion for rehearing or on the date the motion is overruled by operation of law. Section 701.147 provides that a person affected by a final decision or order of the Board on an application for an initial regular permit may appeal such decision by filing a petition for judicial review within 30 days after the decision or order is final and appealable. The procedure for appealing an order of the Board is governed by the Administrative Procedures Act and is pursuant to the substantial evidence rule. This section also describes the content of the record in a contested case hearing. Summary of Comments and Agency Responses. Three public hearings were held on the proposed rules - the first was held in San Marcos, Texas on November 25, 1996, the second was held in Uvalde, Texas on December 3, 1996, and the third was held in San Antonio on December 5, 1996. Oral comments were received at these hearings. Some of those commenters followed-up by also submitting written comments. Most of the written and oral comments were submitted by individuals or lawfirms on behalf of individuals. Additional commenters include Bexar Metropolitan Water District, the San Antonio Water System, the Southwest Research Institute, and Living Waters Artesian Springs, Ltd. While the commenters focused on grammatical and conceptual errors that they believed needed changing, overall, they generally supported the adoption of the proposed rules. The staff of the Authority has summarized each of the comments below and has explained why each suggested change was rejected or accepted. In addition, the staff of the Authority has made changes to the text of the rules to clarify the meaning of the rules, to correct grammatical or typographical errors, or to delete redundancies. Each of these changes is noted below. General. Declarations of Historical Use. One user commented that all declarations of historical use filed by existing users with the TNRCC, the Texas Water Development Board or the predecessor to the Edwards Aquifer Authority on or before the original March 1, 1994, submission date should be accounted for by the EAA, and in the order received and assigned numbers to reflect submission before any that are filed after that date, including filings made in accordance with the proposed Rules. Agency Response: The act specifically requires that a declaration of historical use is to be filed on a form prescribed by the board. The existing users who provided a declaration of historical use before March 1, 1994, did not file on a form prescribed by the Authority. Therefore all users must apply on a form prescribed by the Authority by December 30, 1996. Further, the Act does not contemplate any preference based on priority date or date of filing other than December 30, 1996. Therefore, any record of any other date would not be significant or material in this permitting scheme. General. One commenter urged the Authority to delay any action on the proposed rules because the rules and the Act infringes on Federal Constitutional 5th amendment rights. Agency Response: The Texas Supreme Court has already ruled in Barshop v. Medina Underground Water Conservation District that the Act does not on its face unconstitutional infringe or impair vested property rights. The court reserved for future consideration a determination of whether the Act unconstitutionally infringes upon or impairs vested property rights as applied. The Authority believes that these rules when applied are a reasonable and valid exercise of its powers. Further, the Authority is required to carry out these permitting activities by its enabling legislation. Accordingly, the Authority will not delay the implementation of these rules. General. One commenter indicated that there are some circumstances in which irrigators' property rights are not protected and the sentence in the proposal preamble which states: "These rules will not deny any real property owner of all economically viable use of land or eviscerate any vested property rights..." is at least unnecessary and probably incorrect. Agency Response: The Authority believes that these rules in and of themselves do not eviscerate any vested property rights. The Texas Supreme Court in Barshop v. Medina Underground Water Conversation District recognized that Texas Courts have not previously considered the point at which water regulation unconstitutionally invades the property rights of landowners. The Authority believes that these procedural regulations do not unconstitutionally invade the property rights of landowners who have historically withdrawn water from the Edwards Aquifer. These rules merely provide the process, the procedural due process, for the regulation of the use of that property in the future. For these reasons, the staff of the Authority believes that no modification of the above-described wording is needed. General. One commenter indicated that many irrigators have expressed opinions related to the complexity of these rules making self-representation almost impossible. The Authority may have intended for the rules to be designed for the protection of individuals' legal rights but many persons feel intimidated by the complicated procedures incorporated within these rules to the point that they feel compelled to hire a lawyer just to protect their existing property rights. Agency Response: The Authority has made every effort to insure that the rules are reasonable, equitable and provide sufficient due process. The staff has held numerous workshops throughout the region to assist filers in filling out the necessary forms. The staff will continue to hold these workshops and make themselves available to the public. General. One commenter stated that the rules do not have any provision for compensation as a result of a taking of water rights. Agency Response: The proposed rules are promulgated for the purposes of providing the public and the agency with a procedure for the filing, processing and review of permit applications for initial regular permits as well as to provide an opportunity for a hearing and a final appealable decision on such applications. Any potential taking and related measure of compensation as a result of implementation of the act by these rules would be decided by a court and brought in the form of individual actions. Therefore, a provision for compensation is not needed in these rules. General. One commenter stated that a separate permit should be issued for each well co-owner, if desired, otherwise a sale, lease or other transaction to transfer the water withdrawal permit may be impeded unless all co-owners agree to the transfer. Agency Response. The Authority has already adopted a rule in subchapter B of Chapter 701, sec.701.17 (relating to Joint Application) which addresses this issue. The Authority has already determined that in the event of multi-party ownership in a well that the co-owners should submit a joint application and one permit will be issued to the joint applicant. Should a dispute between the co- owners arise, the parties to that dispute must resolve the issue informally or resort to district court. Section 701.31. One commenter said that the Authority should add to the definition of the term "Beneficial use without waste" the following "...as the term waste is defined by sec.1.03(21) of the Act." Agency Response: The staff believes that the term waste is generally governed by the definition set forth in sec.1.03(21) of the Act and that a separate statement in this section to that effect is not necessary. After further study, the staff recommends the insertion of the term "additional" definitions to the title of this section to make clear that these definitions are in addition to the definitions adopted in sec.701.1 and both sets of definitions apply equally throughout the chapter. Section 701.51. De Minimis Users. The Authority proposed this rule to expand the statutory small well exemption to apply to any well regardless of the particular use of the water. Section 1.33 of the Act provides that "A well that produces 25,000 gallons of water a day or less for domestic or livestock use is exempt from metering requirements." For the purposes of permitting, the Act specifies that only wells for domestic and livestock use are exempt. Agency Response: On advice from legal counsel, the Board will not adopt sec.701.51 because only an owner of a well that produces 25,000 gallons of water per day or less and the water produced is used for domestic and livestock purposes is exempt from filing a declaration for historic use according to sec.1.15 of the Act. Therefore, the staff recommends the withdrawal of this rule in its entirety. Section 701.53. Interim Authorization. The staff recommends that the term "withdraws" in sec.701.53(a) be changed to "withdrew" to correct the tense of that word. Staff also recommends the addition of sec.701.53(b)(3) to clarify that the amount of water withdrawal right authorized by the interim authorization may be modified by the issuance of an initial determination permit. With the addition of sec.701.53(b)(3) the following Subsection was renumbered, so that sec.701.53(b)(3), as proposed, is renumbered to sec.701.53(b)(4) as adopted. Section 701.55. Receipt and Filing of Application. The staff recommends the addition of sec.701.55(c) that provides for the issuance of a statement to each applicant setting forth his interim authorization in order to clearly notify the applicant of his authority to use that amount of water. Sections 701.58 and 701.59. Application Complete and Application Incomplete. One commenter indicated that these sections relate to the duty of the Edwards Aquifer Authority to preliminarily review each application for administrative completeness but fail to place a timeline for when this review will take place or when notice of such review is to be given to the applicant. Agency Response: The staff agrees with the comment that a timeline is needed which provides when the preliminary review will be complete or when notice of such review is to be given to the applicant. The staff is not yet clear about the number or complexity of the claims that will be filed by December 30, 1996. It is the staff's intention and to the Authority's benefit to process the declarations of historical use as soon as possible after December 30, 1996. The Staff recognizes the need for such a deadline and recommends that a deadline for determining application completeness should be March 1, 1997. The staff has also corrected a reference to a rule by changing "sec.701.19" to "sec.701.21" (relating to Information Required in Application) in sec.701.58. Section 701.72. Supplementation of Application. A commenter pointed out that a reference to "sec.701.33" and a reference to "sec.701.64" are misstated. Agency Response: The staff agrees that the reference to "sec.701.33" should be changed to "sec.701.73" (relating to Request of Additional Information) and the reference to "sec.701.64" should be changed to "sec.701.124" (relating to Evidence at Contested Case Hearing). Section 701.73. Request for Additional Information. One commenter suggested the inclusion of the following language at the end of subsection (a) "...unless the applicant can show good cause for the failure to submit the requested information. If good cause is shown the general manager shall extend the deadline for a reasonable period of time." In addition, the reference to "sec.701.34" is misstated. Agency Response: The staff agrees that the reference to "sec.701.34" should be changed to "sec.701.74" (relating to Technical Review). Section 701.72 already provides that the general manager may allow additional time for applicants to provide any additional information concerning their application until April 1, 1997, upon a showing of good cause. The staff believes that this is enough time to provide any additional information that is needed to complete the technical review process. In addition, staff has corrected the grammar of sec.701.73(a) by changing "the" chapter to "this" chapter. Section 701.74. Technical Review. Several commenters pointed out that the references to "sec.701.35", "sec.701.36", "sec.701.42" and "sec.701.61" are misstated. One commenter indicated that the general manager does not have the authority under the Act to reduce the amount of the withdrawal floors under sec.701.74(d)(2)(C). Agency Response: The staff agrees that the references to "sec.701.35", "sec.701.36", "sec.701.42" and "sec.701.61" should be changed to "sec.701.75" (relating to Initial Determination), "sec.701.76" (relating to Notice of Initial Determination), "sec.701.92" (relating to Determination of Amount of Water Available for Permitting) and "sec.701.121" (relating to Filing Protests), respectively. The purpose of sec.701.74(d)(2)(C) is to allow the authority to adjust permit withdrawal amounts upon issuance of a final decision by the Authority after all contested case hearings are concluded. By statute, the Authority may permit on an annual basis up to 450,000 acre feet of water withdrawals from the Edwards Aquifer by the initial regulatory permit process. If the water withdrawal right of one applicant increases or decreases as the result of a contested case, the withdrawal rights of other applicants will correspondingly increase or decrease provided no permit withdrawal floor applies. Therefore, the Authority must have the discretion to reallocate water withdrawal rights at the time a final decision is rendered on all contested cases. In addition, the staff recommends that a provision be added at the end of sec.701.74(b) that provides access to the site by the general manager to verify information submitted in support of an application. Staff also recommends after further study that the term "permit" be added to the phrase "initial determination" throughout these rules. The purpose of this change is to substitute the term "initial determination permit" for the term "proposed permit". The initial determination under the rules encompasses all the elements of a proposed permit. Staff recommends this change as it is in substance the proposed permit. The first place this term appears is in sec.701.74(d)(2)(D). This is a global change that will appear throughout this section and other sections of these rules. Staff recommends that the words "and rate" be deleted from sec.701.74(d)(1)(C) as the users' historical rate of withdrawal is relevant to, and therefore implied by, a determination of beneficial use without waste. The rate of withdrawal will be separately stated in the initial determination permit and final permit. A typo is corrected in sec.701.74(d)(2)(F) changing 30 to 45 days indicating the appropriate length of time to file a protest. Finally, staff has made a grammatical correction in sec.701.74(b) by changing "application" to "applicant". Section 701.75. Summary of Initial Determination Permits. One commenter indicated that in sec.701.75(b)(1) the wording "rate of withdrawal" be deleted because it is not applicable in the application process. Agency Response: Staff disagrees that the wording in sec.701.75(b)(1) concerning "rate of withdrawal" be removed. Section 1.15 of the Act requires the Authority to issue a permit in terms of amount of authorized withdrawal and maximum rate of withdrawal. Indeed, staff recommends changing "and rate of withdrawal claimed" to the "maximum rate of withdrawal" to more accurately reflect the statutory language. Other changes to sec.701.75 include correction of a reference to rule section, "sec.701.51" to "sec.701.101" (relating to calculation of Initial Determination Permit Withdrawal Amounts), addition of the term "permit" to initial determination, addition of the term "summary of" to initial determination permits to distinguish between a reference to each individual initial determination and the document which represents the collection or summary of all initial determinations, grammatical corrections, corrections to the title of sections referenced, and substitution of "initial determination permit" for "proposed permit". Finally, the staff recommends that sec.701.75(b)(4) be deleted as it is redundant of other provisions in the rules. Section 701.76. Notice of Initial Determination Permits. Several commenters suggested that sec.701.76(b)(3) should be changed as only applicants should be allowed to contest the initial determination. Agency Response. Staff agrees with the comment that only applicants should be allowed to contest their application or another application and, therefore, the rules have been modified to provide that an applicant who has timely filed an application may protest an initial determination on his application or the application of another. After further review, staff has made other changes to 701.76 to correct a reference to "sec.701.61" to "sec.701.121" (relating to Filing Protests), add the term "permit" to initial determination and "summary of" initial determination, where applicable, make grammatical corrections where needed, and deleted surplus or unnecessary language. Section 701.77. Uncontested Applications Submitted to Board. One commenter suggested that the language in sec.701.77(b) which states: "The board may refer an uncontested application to a contested case hearing by written order stating the specific issues the board wishes to submit to the hearing" is unclear as to the purpose of this rule and is too far-reaching and ambiguous. Other commenters suggest that final permits for applicants for an irrigation floor could be issued early as they will not be reduced by any later proportionate reduction calculation. Agency Response: The staff agreed with these comments and recommends striking sec.701.77(b) and adding language that provides for early issuance of a final permit for those applicants claiming the irrigation floor and issuance of a final permit with a special condition stating that the water withdrawal right may be subject to later adjustment for all other applicants. Section 701.92. Determination of Amount of Water Available for Permitting. Staff recommends the correction of a typo by changing the word "discharge" to "recharge." Section 701.94. Criteria for Technical Review. One commenter suggested that the language in sec.701.94(a) which states: "Withdrawal of water which is substantially in excess of the volume or rate reasonable required for a particular use will be presumed to constitute waste" should be deleted because it is not supported by the definition of waste in the Act. Another commenter indicated that sec.701.94(d) should be deleted because there is no connection to the capacity of the well and its beneficial use without waste. Agency Response: Staff believes that sec.701.94(a) is supported under sec.1.03(4) of the Act which states: "beneficial use means the use of the amount of water that is economically necessary for a purpose authorized by law, when reasonable intelligence and reasonable diligence are used in applying the water to that purpose" and sec.1.03(21)(A) of the Act which defines waste as, "the flowing or producing of wells from the aquifer if the water produced is not used for a beneficial purpose". Because the withdrawal of water which is substantially in excess of the volume or rate reasonably required for a particular use is not defined as beneficial, it is therefore waste. Staff agrees with the comment concerning sec.701.94(d) for the reason stated by the commenter. Staff recommends deleting sec.701.94(d) from the rules. Section 701.98. Permit Withdrawal Floor. One commenter objected to the floors language provided in this section, and further stated that there should be further language to protect those users that do not qualify under the irrigation withdrawal floor or the historical average withdrawal floor. The commenter stated that all timely filed applications for historical use should receive protection against proportional reduction. Agency Response: Staff believes that the language set forth in the rules is consistent with sec.1.16 of the Act. However, staff does see a need to further investigate alternatives that the Authority may have in adjusting the permit cap of 450,000 acre-feet per year in order to meet obligations of the Authority to honor permit withdrawal floors. A proposed new rule to address the potential requirement of the board to issue more than 450,000 acre-feet for permitting will need to be placed before the public to receive comment before the Authority can adopt such a rule. Section 701.101. Calculation of Initial Determination of Permit Withdrawal Amounts. One commenter indicated that the language in sec.701.101(a) which states: "The general manager will determine proposed permit withdrawal amounts by proportionately reducing each applicant's maximum historical use to reflect the amount of water available for permitting," assumes that the proposed permit withdrawal amounts will exceed the amount of water available for permitting. In sec.701.101(d), the commenter also suggested deletion of the last sentence which provides: "If because of permit withdrawal flow, W still exceeds P, the general manager will continue to apply this reduction approach to individual permit withdrawal amounts until W equals P." Agency Response: Staff believes the wording should be changed in sec.701.101(a) to read: "In the event that the total of all declaration of historical use amounts exceed the amount of water available for permitting as defined in sec.701.94 of this chapter, the general manager will reduce each applicant's proposed permit withdrawal amount in accordance with the reduction formula described in the section." The staff disagrees with the comment on sec.701.101(d) but suggests that wording in the last sentence in sec.701.101(d) be modified to read, "The general manager will continue to apply the reduction to those applications that have not reached their permit floors until W equals P or until no further reductions can be accomplished to meet the amount of water available for permitting." This new language recognizes that the permit withdrawal floors will be protected. A reference to "sec.701.42" is corrected to "sec.701.92" (relating to Determination of Amount of Water Available for Permitting). After review the staff recommends that the first sentence of sec.701.101(d) and sec.701.101(e) be rewritten to clarify the meaning of those sentences and subsections. Section 701.102. General and Special Permit Terms. In sec.701.102(a)(6), one commenter suggested that pumping information of industrial users required to be provided to the EAA be treated as confidential under the Texas Open Records Act, as proprietary in nature. One commenter suggested that the language in sec.701.102(a)(10) which states: "The permit will remain in effect until it is abandoned, canceled, or retired" should be deleted because the wording is not consistent with the Act. Agency Response: sec.701.102(a)(6) applies to all users and is required under the Act. The question about whether the authority must or may treat this information as proprietary under the Texas Public Information Act is not within the scope of this set of rules. The Authority will treat each request to handle such information separately as provided under the Texas Public Information Act as the request is made. The staff also believes that the wording in sec.701.102(a)(10) which states: "The permit will remain in effect until it is abandoned, canceled, or retired" is consistent with sec.1.23(g) of the Act which states: "The authority shall issue an initial regular permit without a term, and an initial regular permit remains in effect until the permit is abandoned, canceled, or retired." Therefore, the staff does not recommend a change based on these comments. Section 701.121. Filing Protests. One commenter expressed concern that the Authority should set out in its rules who are "affected persons" entitled to participate in permit protest hearings. That commenter felt that the undefined term could result in no limits on potential protestants and intervenors and that defining the requisite interest for participation would go far in properly focusing the issues in any contested case. Leaving the scope of protests undefined may allow an administrative law judge to conclude the rules allow global protests and challenges to become part of an individual permit case. The commenter also recommended that each protest of an individual initial determination must be filed separately. Two commenters supported the limitation of standing to any applicant or affected person within the geographic boundaries of the Authority, while another commenter believed that only the applicant should be able to protest the applicant's initial determination. Agency Response: The staff agrees that only the applicant or a competing applicant who has timely filed an application for initial regular permit should be able to file a protest or an initial determination permit and, therefore, recommends a change to sec.701.121(a) to that effect. The staff agrees that each protest of an individual initial determination should be filed separately, therefore, the following language is recommended to be added to sec.701.121(f): "A separate protest must be filed on each contested individual initial determination permit." Other changes to this section include the correction of a typo from "30th" to "45th" day, the insertion of the terms initial determination "permits" and "summary of" initial determination permits, and the correction of the numbering of two subsections as subsection (d). Section 701.122. Board Review of Protests. One commenter pointed out that the reference to "sec.701.61" is misstated. Agency Response: Staff agrees that "sec.701.61" should be changed to "sec.701.121" (relating to Filing of Protests). Section 701.124. Evidence at Contested Case Hearing. After review the staff recommends that the term "initial determination" as used in sec.701.124(b) be changed to "application" as the applicant may not agree with the initial determination in all cases. Section 701.125. Notice of Hearing. After review, the staff recommends that the language "to the initial determination" which appears in the first sentence of this section be struck as it is surplusage. Section 701.126. Preliminary Hearing. After review, the staff recommends the following clean-up changes to this section: insert the term initial determination "permit", where applicable, delete the clause "has a justifiable interest" in sec.701.126(b) and insert "is an applicant who has timely filed an application for an initial regular permit" in order to reflect changes made in sec.701.121 (relating to Filing Protests), substitute "General Manager" for the "Authority", and correct the grammar of sec.701.126(d) to clarify the automatic parties in a contested case hearing. Section 701.127. Procedure at Protest Hearing. One commenter indicated that only applicants are proper parties in contested case hearings. Agency Response: Staff disagrees with the comment and instead believes that the applicant, the protestant who is a timely filed applicant for an initial regular permit, other competing applicants, and the General Manager of the Edwards Aquifer Authority are proper parties in contested case hearings. Section 701.130. Burden of Proof. One commenter indicated the burden of proof should remain with the protestant at all times. Agency Response: Staff believes that the burden of proof is properly stated. Once a protestant demonstrates a dispute exists on a stated fact or a fact necessarily implied by the initial determination permit, the applicant has the burden to prove that fact by a preponderance of the evidence. It is the applicant's application and his responsibility to prove it. Staff also recommends some cleanup changes to this section to insert the term initial determination "permit" where appropriate. SUBCHAPTER C. Filing and Notices 31 TAC sec.sec.701.31-701.35 The Authority adopts these rules under the Edwards Aquifer Authority Act, chapter 626, 73rd Legislature, Regular Session (1993), as amended (the "Act"), the Authority's powers and duties under the Act to promulgate rules and to implement and enforce the Act's permitting requirements (Act sec.sec.1.08, 1.11, 1.14 - 1.17), Chapter 36 of the Texas Water Code, and the Conservation Amendment of the Texas Constitution, Article 16, sec.59. The adopted sections implement the Edwards Aquifer Authority Act, chapter 626, 73rd Legislature, Regular Session (1993), sec.sec.1.08, 1.10, 1.14 - 1.17. sec.701.31. Additional Definitions. The following words and terms when used in this chapter shall have the following meanings, unless the context clearly indicates otherwise. APA - The Administrative Procedures Act, Texas Government Code, chapter 2001. Application - A permit application along with any information, documents, and attachments timely submitted in support of the application by the applicant. The term "application" includes a timely filed declaration of historical use. Beneficial use without waste - Use of the amount of water economically necessary for a lawful purpose, when reasonable intelligence and reasonable diligence are used in applying the water to that purpose, and the use does not constitute waste. Contested case hearing - An evidentiary hearing governed by these rules and the APA . Historical period - The 21-year period from June 1, 1972, through May 31, 1993. Permit withdrawal floor - The amount of underground water an initial regular permit holder is assured against any required proportional reduction to meet the amount available for permitted withdrawals, because such holder either irrigated during any year of the historical period and is entitled to the "irrigation withdrawal floor" or operated a well for three or more years during the historical period and is entitled to the "historical average withdrawal floor," in accordance with sec.1.16(e) of the Act. This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority. Issued in Austin, Texas, on January 28, 1997. TRD-9701320 Rick Illgner General Manager Edwards Aquifer Authority Effective date: February 18, 1997 Proposal publication date: November 12, 1996 For further information, please call: (210) 222-2204 SUBCHAPTER D. Administrative Review of Declarations of Historical Use 31 TAC 701.52-701.59 The Authority adopts these rules under the Edwards Aquifer Authority Act, chapter 626, 73rd Legislature, Regular Session (1993), as amended (the "Act"), the Authority's powers and duties under the Act to promulgate rules and to implement and enforce the Act's permitting requirements (Act sec.sec.1.08, 1.11, 1.14 - 1.17), Chapter 36 of the Texas Water Code, and the Conservation Amendment of the Texas Constitution, Article 16, sec.59. The adopted sections implement the Edwards Aquifer Authority Act, chapter 626, 73rd Legislature, Regular Session (1993), sec.sec.1.08, 1.10, 1.14 - 1.17. sec.701.53. Interim Authorization. (a) A person who owned a producing nonexempt well that withdrew water from the aquifer on June 28, 1996 may, pursuant to sec.1.17 of the Act, continue to withdraw and beneficially use water from the well until final action on permits by the Authority, if: (1) the well is in compliance with all statutes and rules relating to well construction, approval, location, spacing and operation; and (2) the person timely files an application in compliance with this chapter. (b) Use under interim authorization (1) may not exceed on an annual basis the historical maximum beneficial use of water without waste during any one calendar year of the historical period as evidenced by the declaration submitted as part of the application; (2) is subject to the comprehensive management plan and other plans or rules adopted by the Authority; (3) is modified by issuance of an initial determination permit; and (4) ends on entry of a final and appealable order by the authority acting on the application, or on December 30, 1996, if the person has not filed a declaration of historical use. sec.701.55. Receipt and Filing of Application. (a) Applications and any other papers submitted by an applicant in connection with an application will be date stamped "RECEIVED" by the docket clerk at the time that they are received by the Authority. (b) Subject to the timely payment of a required fee, if any, and subject to sec.701.18 of this title (relating to filing of declarations of historical use), any application papers submitted in support of an application, including but not limited to any request, motion, response to request for additional information, or protest, will be considered filed on the day deposited in the mail or, in the case of personal delivery, the date actually received by the Authority. (c) As soon as practicable after receipt, the Authority shall issue a statement to each applicant setting forth the interim authorization for each timely filed application. The statement shall provide that the applicant may continue to withdraw water during the period of processing the application provided that the amount of water withdrawn does not exceed the amount of that applicant's historical maximum withdrawal and beneficial use of water without waste, and that the use under interim authorization is subject to the rules of the Authority. sec.701.58. Application Complete. Upon receipt of an application that appears to contain the information required by sec.701.21 of this title (relating to Information Required in Application), including any required attachments and supporting documentation, the general manager will declare the application administratively complete, and notify the applicant by March 1, 1997, that the application is administratively complete and will be submitted for technical review. sec.701.59. Application Incomplete. (a) Upon receipt of an application that appears not to contain the required information or is otherwise incomplete, the general manager will mail to the applicant a notice that the application is incomplete by March 1, 1997. (b) A notice that an application is incomplete will state what information or other action is required to make the application complete, state that the applicant must file the information or take the action within 30 days of the date of the notice, and state that the application will be submitted to technical review on the 31st day after the date of the notice based on information timely submitted in support of the application by that day. (c) On the 31st day after the notice of incomplete application, the incomplete application along with any other timely filed supporting papers will be submitted to technical review. This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority. Issued in Austin, Texas, on January 28, 1997. TRD-9701319 Rick Illgner General Manager Edwards Aquifer Authority Effective date: February 18, 1997 Proposal publication date: November 12, 1996 For further information, please call: (210) 222-2204 SUBCHAPTER E. Technical Review and Initial Determination of Declarations of Historical Use 31 TAC sec.sec.701.71-701.77 The Authority adopts these rules under the Edwards Aquifer Authority Act, chapter 626, 73rd Legislature, Regular Session (1993), as amended (the "Act"), the Authority's powers and duties under the Act to promulgate rules and to implement and enforce the Act's permitting requirements (Act sec.sec.1.08, 1.11, 1.14 - 1.17), Chapter 35 of the Texas Water Code, and the Conservation Amendment of the Texas Constitution, Article 16, sec.59. The adopted sections implement the Edwards Aquifer Authority Act, chapter 626, 73rd Legislature, Regular Session (1993), sec.sec.1.08, 1.10, 1.14 - 1.17. sec.701.72. Supplementation of Application. (a) The applicant may submit further information in support of the application not later than 30 days following the date of the notice of administrative completeness, but may not submit such information after that time except as allowed or requested by the general manager pursuant to subsection (b) of this section or sec.701.73 of this title (relating to Request of Additional Information) or as provided in sec.701.124 of this title (relating to Evidence at Contested Case Hearing). (b) The general manager may upon good cause allow the applicant to submit additional information upon good cause shown no later than April 1, 1997. sec.701.73. Request for Additional Information. (a) If at any time prior to the completion of technical review on all timely filed applications in accordance with sec.701.74 of this title (relating to Technical Review) the general manager believes that additional information is necessary or helpful to complete review of an application, the general manager will request the applicant to provide such information within 30 days of the date of the request. (b) A request for additional information under this section extends the deadline for completion of technical review by 30 days. (c) If the applicant fails to timely provide requested additional information, the technical review of the application will be concluded based on information previously provided by the applicant. sec.701.74. Technical Review. (a) When an application has been declared administratively complete (or the 31st day after the date of notice of incomplete application), it will be submitted to the staff for technical review. (b) The purpose of technical review is to determine if and to what extent the applicant convincingly establishes the applicant's claimed amount of withdrawals and beneficial use without waste of underground water from the Edwards Aquifer during the historical period entitling the applicant to an initial regular permit in accordance with the Act and this chapter. The general manager or his designee is entitled to enter any public or private property at any reasonable time upon reasonable notice for the purpose of inspecting, investigating, or verifying conditions or information submitted in support of an application for a permit filed pursuant to this chapter. (c) Technical review of the application will be completed within 90 days of the date the application is declared administratively complete (or within 90 days after the 31st day after the date of notice of incomplete application), unless that time is extended by a request for additional information by the general manager in accordance with sec.701.73 of this title (relating to Request for Additional Information). (d) Promptly following the completion of technical review, the general manager will notify the applicant that technical review of the application has been completed. The notice will contain: (1) An application summary that states the following preliminary findings, if applicable: (A) the total maximum amount of annual historical usage claimed by the applicant; (B) the type or types of water use upon which the claim is based; (C) the total maximum volume of water withdrawn and beneficially used without waste during any one calendar year of the historical period determined to be established by convincing evidence; (D) the type and amount of permit withdrawal floor or floors for which the applicant seeks to qualify; (E) the type and amount of permit withdrawal floor determined to be established by convincing evidence; (F) any equitable adjustment made because the applicant's historic water use was affected by a requirement of or participation in a federal program; and (G) any other determinative factors bearing on the preliminary findings. (2) A statement that: (A) The general manager may modify the preliminary findings and seek additional information from the applicant in the course of conducting technical review of other applications. (B) The general manager may proportionately reduce the total amount of annual historical usage established by convincing evidence in the application, subject to any application permit withdrawal floor, to reflect the amount of water available for permitting in accordance with sec.701.92 of this title (relating to Determination of Amount of Water Available for Permitting), and that this proportional reduction cannot be made until technical review of all timely filed applications has been completed. (C) The general manager may further adjust the permit withdrawal amount after a final decision is rendered on all timely filed applications, to the extent the permit withdrawal amount exceeds any applicable permit withdrawal floor. (D) The general manager will issue an initial determination permit on all timely-filed applications when technical review is complete on all such applications, in accordance with sec.701.75 of this title (relating to Initial Determination Permit). (E) The general manager will notify the applicant of the initial determination permit and publish notice of same in the Texas Register in accordance with sec.701.76 of this title (relating to Notice of Initial Determination Permits); and (F) The applicant may file a protest and request for contested case hearing on or before the 45th day following the publication of notice in the Texas Register in accordance with sec.701.121 of this title (relating to Filing Protests), and that protests filed prior to such publication of notice will not be acted upon until after such publication. sec.701.75. Summary of Initial Determination Permits. (a) Within 15 days after technical review on all applications has been completed, the general manager will determine recommended permit withdrawal amounts in accordance with sec.701.101 of this title (relating to Calculation of Initial Determination Permit Withdrawal Amounts), and prepare a summary of initial determination permits for all timely filed applications. (b) The summary of initial determination permits will consist of the following: (1) a matrix of all claims presented in such applications that shows at least the following information: application identification number, principal type of use (agricultural, municipal, industrial, or other), amount of maximum historical beneficial use without waste, the maximum rate of withdrawal, the proposed permit withdrawal amounts, the type and amount of permit withdrawal floor claimed and recommended, and, if denial of the application is recommended, the reason for the denial; (2) the final application summaries prepared by the general manager after the conclusion of the technical review period with respect to each application represented in the matrix; (3) an initial determination permit for each application setting forth permit withdrawal amounts, terms, and conditions. sec.701.76. Notice of Initial Determination Permits. (a) The general manager will send a copy of the application summary and initial determination permit to the applicant, and will publish notice of the summary of initial determination permits in the Texas Register and in newspapers of general circulation throughout the Authority. (b) The published notice of the summary of the initial determination permits shall state: (1) the initial determination permits on all timely filed applications have been issued by the Authority, and that a copy of each initial determination permit is available for inspection by the public; (2) the initial determination permit will become final with respect to any application, subject to any pro rata adjustments, unless the initial determination permit is timely contested in accordance with this section; (3) any applicant who has timely filed for an initial regular permit may contest an initial determination permit by filing with the Authority, on or before the 45th day following the publication of notice of the summary of initial determination permits in the Texas Register, a written and verified protest of an initial determination permit in accordance with sec.701.121 of this title (relating to Filing Protests); and (4) until the Authority enters a final and appealable order on the application, the applicant's interim authorization to withdraw water is modified by the amount equal to that applicant's initial determination permit. sec.701.77. Uncontested Applications Submitted to Board. (a) Promptly after the last day for filing protests of initial determination permits, the general manager shall submit to the board for review and approval all uncontested initial determination permits. (b) The Board shall issue to all holders of an uncontested initial determination permit that seek a water withdrawal right based on the two acre foot per acre irrigation withdrawal floor a final permit. (c) With respect to a holder of an uncontested initial determination permit that seeks a water withdrawal right on any basis other than as stated in subsection (b) of this section, the board shall issue a final permit with a condition stating that the water withdrawal right is subject to adjustment as a result of a final decision has been rendered in all contested case hearings and shall state the formula for calculating that adjustment. This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority. Issued in Austin, Texas, on January 28, 1997. TRD-9701318 Rick Illgner General Manager Edwards Aquifer Authority Effective date: February 18, 1997 Proposal publication date: November 12, 1996 For further information, please call: (210) 222-2204 SUBCHAPTER F. Initial Regular Permit Amounts and Terms 31 TAC sec.sec.701.91-701.102 The Authority adopts these rules under the Edwards Aquifer Authority Act, chapter 626, 73rd Legislature, Regular Session (1993), as amended (the "Act"), the Authority's powers and duties under the Act to promulgate rules and to implement and enforce the Act's permitting requirements (Act sec.sec.1.08, 1.11, 1.14 - 1.17), Chapter 36 of the Texas Water Code, and the Conservation Amendment of the Texas Constitution, Article 16, sec.59. The adopted sections implement the Edwards Aquifer Authority Act, chapter 626, 73rd Legislature, Regular Session (1993), sec.sec.1.08, 1.10, 1.14 - 1.17. 701.91. Applicability. This subchapter governs the determination of amounts of withdrawals authorized by initial regular permits and the terms of those permits. sec.701.92. Determination of Amount of Water Available for Permitting. (a) If the board determines from time to time that there are additional supplies available from the aquifer through studies and implementation of water management strategies, including conservation, springflow augmentation, diversions downstream of the springs, reuse, supplemental recharge, conjunctive management of surface and subsurface water, and critical period management plans, the board may increase the maximum amount of permitted withdrawals and set a different maximum amount of withdrawals in accordance with sec.1.14 of the Act. (b) Not later than the date the staff completes technical review of all timely filed declarations, the board will consider whether it should increase the maximum amount of permitted withdrawals and set a higher maximum amount of withdrawals in accordance with sec.1.14(d) of the Act. sec.701.94. Criteria for Technical Review. (a) Withdrawal of water which is substantially in excess of the volume or rate reasonably required for a particular use will be presumed to constitute waste. (b) Irrigation use of two acre feet of water per irrigated acre will be presumed not to constitute waste. (c) Use of water for irrigation of multiple or successive crops is a beneficial use to the extent it does not constitute waste. (d) Any presumption stated in this section may be rebutted by convincing evidence. sec.701.101. Calculation of Initial Determination Permit Withdrawal Amounts. (a) In the event that the total of all declarations of historical use amounts exceed the amount of water available for permitting as defined in sec.701.94 of this title (relating to Maximum Historical Use), the general manager will reduce each applicant's proposed permit withdrawal amount in accordance with the reduction formula described in this section. (b) The amount of water available for permitting is 450,000 acre feet per calendar year unless the board establishes a higher amount in accordance with sec.701.92 of this title (relating to Determination of Amount of Water Available for Permitting). (c) An applicant's proposed permit withdrawal amount will not be set below that applicant's permit withdrawal floor. (d) In the event that the total maximum historical use exceeds the amount of water available for permitting, the General Manager will proportionately reduce the maximum historical use by calculating each initial determination permit amount (p) by using the following formula: multiply the applicant's maximum historical use (h) by the quotient of the total amount of water available for permitting (P) divided by the aggregate amount of approved historical use claims (C): h x P/C = p. Each applicant's permit withdrawal amount will then be reduced to p, or the applicable permit withdrawal floor, whichever is higher. The general manager will then calculate the resulting aggregate amount of permit withdrawal amounts (W). The general manager will continue to apply the reduction formula to each application that has not been reduced to its respective permit withdrawal floor until W equals P or until no further reductions can be accomplished to meet the amount of water available for permitting. (e) After a final decision in all contested case hearings have been rendered, a final calculation to proportionately reduce each applicant's permitted withdrawal amount will be performed in accordance with their permit condition. Any final calculations cannot be contested in any contested case hearing. This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority. Issued in Austin, Texas, on January 28, 1997. TRD-9701317 Rick Illgner General Manager Edwards Aquifer Authority Effective date: February 18, 1997 Proposal publication date: November 12, 1996 For further information, please call: (210) 222-2204 SUBCHAPTER G. Hearings Process 31 TAC sec.sec.701.121-701.131 The Authority adopts these rules under the Edwards Aquifer Authority Act, chapter 626, 73rd Legislature, Regular Session (1993), as amended (the "Act"), the Authority's powers and duties under the Act to promulgate rules and to implement and enforce the Act's permitting requirements (Act sec.sec.1.08, 1.11, 1.14 - 1.17), Chapter 36 of the Texas Water Code, and the Conservation Amendment of the Texas Constitution, Article 16, sec.59. The adopted sections implement the Edwards Aquifer Authority Act, chapter 626, 73rd Legislature, Regular Session (1993), sec.sec.1.08, 1.10, 1.14 - 1.17. sec.701.121. Filing Protests. (a) Any applicant who has timely filed an application for an initial regular permit who disputes the initial determination permit on that person's or another person's application may, following the publication of notice of initial determination permits in the Texas Register , but no later than the 45th day following such publication of notice, file a written protest with the Authority, stating with reasonable specificity the grounds of the protest and a request for a contested case hearing. (b) A protestant may object only to the fact or facts which serve as the foundation for, or are necessarily implied by, an initial determination permit. (c) The statement filed to protest an initial determination permit must be verified by an affidavit of the protestant or his agent. (d) The protest must set forth facts showing on a prima facie basis that the person is affected by an initial determination permit and that the person is reasonably entitled to a hearing on a fact or facts described in subsection (b) of this section. (e) If the protest is directed against an initial determination permit of an applicant other than the protestant, a copy shall be served on each such applicant or applicant's attorney by certified mail, and proof of service shall be filed with the docket clerk of the Authority. (f) No protest will be acted upon by the Authority prior to the date notice of the summary of initial determination permits is published in the Texas Register. (g) A separate protest must be filed on each contested individual initial determination permit. sec.701.122. Board Review of Protests. (a) The board shall review a timely filed protest to determine whether it complies with sec.701.121 of this title (relating to Filing of Protests). (b) After review of all timely filed protests, the board shall refer to a contested case hearing before an administrative law judge of the State Office of Hearings Examiners those protests which comply with sec.701.121 of this title (relating to Filing of Protests) and deny those protests which the board finds do not so comply. (c) The board's order to deny a protest shall be in writing and shall state the basis for the denial and is a final appealable order pursuant to the APA. If the board finds that a protest of an application is groundless or filed in bad faith, it shall so state in its order and shall assess the costs of reviewing the protest against the person who filed it. (d) The board's decision to refer a protest does not constitute approval of or support for the merits of the protest. The board's decision to refer a protest merely indicates that the protestant has properly stated with reasonable specificity grounds for a contested case hearing and has satisfied the other requirements of sec.701.121 of this title (relating to Filing of Protests). (e) The board's order referring a protest shall include an order remanding to the State Office of Administrative Hearings a contested case hearing on the matters raised in each protest. sec.701.124. Evidence At Contested Case Hearing. (a) A copy of the application certified by the docket clerk will be admitted in a contested case hearing. (b) The applicant may offer the following evidence at the contested case hearing in support of the application: (1) A certified copy of the application and all papers timely filed with the Authority in support of the application; (2) rebuttal and impeachment evidence; (3) evidence bearing on procedural and jurisdictional issues; (4) evidence which is newly discovered; and (5) any other relevant and material evidence that must be admitted under the Texas or United States Constitution. (c) Evidence is newly discovered and may be admitted as such under subsection (b) of this section if the evidence was discovered after technical review of the application was completed, the evidence is relevant material, and would probably affect the outcome of the hearing, and the applicant did not know or have reason to know about the evidence until it was discovered. sec.701.125. Notice of Hearing. The Authority shall prepare a notice that lists the protests that the board has referred to a contested case hearing, and states the time and place of the contested case hearings on the protests. Notice of the time and place of the hearings shall be published in the Texas Register and in newspapers of general circulation throughout the Authority and the area represented by the South Central Texas Water Advisory Committee at least thirty days before each hearing is scheduled to commence. Notice shall also be given to each person whose protest was referred to a contested case hearing or whose application is the subject of a referred protest not less than thirty days before the contested case hearing is scheduled to commence. sec.701.126. Preliminary Hearing. (a) The administrative law judge(s) shall hold a preliminary hearing to determine party status, determine the factual issues in dispute, and develop a schedule for the proceeding. (b) All persons seeking party status in a contested case hearing shall appear at the preliminary hearing and seek to be admitted as a party. A person seeking party status shall be prepared to demonstrate that the person is affected by the initial determination permit and is an applicant who has timely filed an application for an initial regular permit, as defined under applicable law. (c) An organization seeking to be admitted as a party must submit evidence in support of its interest. The administrative law judge will determine its party status based on the law of organizational standing. (d) The applicant and the General Manager are parties in a contested case hearing involving that applicant's initial determination permit. sec.701.130. Burden of Proof. (a) The protestant challenging an initial determination permit must introduce some evidence that raises a genuine issue of disputed fact with respect to a factual finding stated or necessarily implied in an initial determination permit, in which case the proponent of the finding has the burden to support the finding by a preponderance of the evidence. If the protestant fails to introduce some evidence that raises a genuine issue of disputed fact with respect to a factual finding stated or necessarily implied in an initial determination permit, the finding shall be binding upon the parties. (b) The administrative law judge will limit the evidentiary portion of the hearing to the factual findings upon which the protestant has raised a genuine issue of disputed fact. This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority. Issued in Austin, Texas, on January 28, 1997. TRD-9701316 Rick Illgner General Manager Edwards Aquifer Authority Effective date: February 18, 1997 Proposal publication date: November 12, 1996 For further information, please call: (210) 222-2204 SUBCHAPTER H. Post Hearing Process 31 TAC sec.sec.701.141-701.147 The Authority adopts these rules under the Edwards Aquifer Authority Act, chapter 626, 73rd Legislature, Regular Session (1993), as amended (the "Act"), the Authority's powers and duties under the Act to promulgate rules and to implement and enforce the Act's permitting requirements (Act sec.sec.1.08, 1.11, 1.14 - 1.17), Chapter 36 of the Texas Water Code, and the Conservation Amendment of the Texas Constitution, Article 16, sec.59. The adopted sections implement the Edwards Aquifer Authority Act, chapter 626, 73rd Legislature, Regular Session (1993), sec.sec.1.08, 1.10, 1.14 - 1.17. This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority. Issued in Austin, Texas, on January 28, 1997. TRD-9701506 Rick Illgner General Manager Edwards Aquifer Authority Effective date: February 18, 1997 Proposal publication date: November 12, 1996 For further information, please call: (210) 222-2204