TITLE 31.NATURAL RESOURCES AND CONSERVATION

Part 1. GENERAL LAND OFFICE

Chapter 15. COASTAL AREA PLANNING

Subchapter B. COASTAL EROSION PLANNING AND RESPONSE

The Texas General Land Office (Land Office) proposes new §15.41, relating to Evaluation Process for Coastal Erosion Studies and Projects, §15.42, relating to Funding Projects from the Coastal Erosion Response Account, §15.43, relating to Coastal Boundary Surveys and Landowner Consent, and §15.44, relating to Beneficial Use of Dredged Material. New §§15.41 - 15.43 replace repealed sections dealing with the same subject matter. New §15.44, relating to Beneficial Use of Dredged Material adds new text to conform to legislative changes.

The Land Office simultaneously proposes the repeal of §15.21, relating to Evaluation Process for Coastal Erosion Studies and Projects, §15.22, relating to Funding Projects from the Coastal Erosion Response Account, and §15.23, relating to Coastal Boundary Surveys. The repealed sections will be replaced by the new sections dealing with the same subject matter.

The new sections are proposed pursuant to the Joe Faggard Coastal Erosion Planning and Response Act, 76th Legislature, Regular Session Senate Bill 1690 (CEPRA), as amended by House Bill 2793 and House Bill 2794, 77th Legislature, Regular Session, Texas Natural Resources Code, Chapter 33, Subchapter H. The CEPRA requires the Land Office to implement a program of coastal erosion avoidance, remediation, and planning. House Bill 2793 changed the cost-share requirement for qualified project partners from 25% to 15%. House Bill 2794 requires the Land Office to adopt rules providing for the placement of material dredged in constructing and maintaining navigation inlets and channels of the state on eroding beaches or for restoration of eroding wetlands wherever practicable. The proposed rules outline the process by which the Land Office will evaluate and assist in the funding of coastal erosion studies and projects in cooperation with qualified project partners. The CEPRA, §33.601(11), defines "qualified project partner" as "a local government, state or federal agency, institution of higher education, homeowners' association, or other public or private entity that enters into an agreement with the land office to finance, study, design, install, or maintain an erosion response project." The Land Office may expend funds from the coastal erosion response account, which was established by the CEPRA, to support a study or project undertaken independently by the Land Office, or in conjunction with a qualified project partner. The CEPRA, as amended by House Bill 2793, requires qualified project partners to pay at least 15% of shared project costs that are identified in a project cooperation agreement.

Proposed new §15.41 outlines the application process for entities that would like to become qualified project partners with the Land Office including an initial evaluation of project goal summaries followed by a further evaluation of preferred alternatives. Section 15.41(1) specifies the initial evaluation process the Land Office will use to evaluate project goal summaries submitted by potential project partners. These summaries must be submitted no later than December 1 of the first year of the state fiscal biennium in which funding is sought (except to address an emergency situation) and must contain the information identified in §15.41(1)(A). The Land Office will evaluate and rank project goal summaries based on the criteria in §15.41(1)(C) and (D), with priority given to the considerations in §15.41(1)(D). Based on the initial evaluation, the Land Office will designate proposed projects as either priority projects or alternate projects. The Land Office will invite the potential project partner for a project designated as a priority project to become a qualified project partner and work cooperatively to evaluate alternatives for addressing the erosion problem(s) identified in the project goal summaries.

Proposed new §15.41(2) describes the alternatives evaluation process. The Land Office and a potential project partner for a project designated as a priority project enter into a project cooperation agreement that will specify how the alternatives-evaluation process will be conducted cooperatively. By entering into a project cooperation agreement, the potential project partner becomes a qualified project partner. The Land Office and qualified project partner will then cooperatively evaluate alternatives. The alternatives evaluation process will include an evaluation of feasibility and cost effectiveness of preferred alternatives, as well as whether a qualified project partner has already made or received a binding commitment to fund all or a portion of the proposed project.

Proposed new §15.42 concerns the details of project funding. If the Land Office decides to authorize project funding from the coastal erosion response account, the Land Office and qualified project partner will amend the project cooperation agreement to define explicitly the terms under which the Land Office will assist in funding the project. Standards for the qualified project partner's statutory requirement to pay at least 15% of shared project costs are described in §15.42(b).

Proposed new §15.43 addresses the coastal boundary survey requirement contained in Texas Natural Resources Code, §33.136. If a coastal boundary survey has previously been conducted in the area where an erosion response project may be funded from the coastal erosion response account, §15.43(a)(1) allows the Land Office to determine that current conditions are accurately reflected in the existing survey. Based upon that determination, the Land Office has the discretion to determine that a new survey is not required before project construction. Section 15.43(a)(2) requires surveys to locate the boundary based on the date the original land grant was made. The boundary is determined in a different manner depending on whether the upland property was originally granted under the civil or common law. In addition, proposed new §15.43 addresses the requirement of consent for projects located on permanent school fund land and on private property in accordance with Texas Natural Resources Code, §33.609.

Proposed new §15.44 provides for evaluation by the Land Office of the practicality and suitability of a proposed beneficial use of dredged material, considering sediment composition, relative cost of dredged material, and adverse environmental impacts. The rules reference guidance documents from the U.S. Army Corps of Engineers (Corps) which the Land Office may consider in determining suitability and practicality of using dredged material. In addition, comments and recommendations by various state and federal natural resource agencies may be considered in evaluating potential adverse environmental impacts of beneficial use projects.

Applicable federal law allows the state to contract with the Corps for placement of material dredged in the construction and maintenance of navigation inlets and channels of the state with federal funds on designated beaches and eroding wetlands. Under a memorandum of agreement, dated July 27, 2001, between the Land Office and the Corps covering 33 federally maintained navigational channels, the state may choose to participate in Corps dredging projects and is obligated to pay the difference between the estimated cost of traditional disposal of material dredged from a federally maintained channel and the actual cost of dredging and placement of that material onto a designated beach or coastal area. Costs of dredging and placement include transportation, material, fuel, engineering, design, and construction management. This cost differential can result in a substantial savings to the state and qualified project partners as compared to upland sources for material for beach nourishment or wetland restoration, depending on the proximity of the source of dredged material to the placement area. For example, upland sources of beach-quality sand including transportation costs can be as much as $10.00 per cubic yard. Projects undertaken with the Corps providing for beach placement of dredged material have resulted in costs to the state of approximately $1.00 to $5.00 per cubic yard, depending on the scope of the project and the pumping distance of the dredged material.

Bill Peacock, Deputy Commissioner for the Coastal Resources Program Area, has determined that for the first five-year period that the proposed rulemaking is in effect there will be no fiscal implications for state government. There will be fiscal implications for the local governments as a result of reducing the percentage for the qualified project partner's cost-sharing requirement. It is estimated that local governments that elect to participate in CEPRA projects will experience a 40% reduction in costs for a project of the same scope and size for each year of the first five-year period that the proposed new rules are in effect. For example, for a project with a total cost of $1,000,000.00, the project partner's cost-sharing requirement would be reduced from $250,000.00 to $150,000.00 resulting in a cost savings to the local government of $100,000.00 or 40%. In an area where erosion response projects are constructed, local governments may benefit from increased tax revenues from enhanced property values.

Mr. Peacock also has determined that for each year of the first five-year period the proposed rulemaking is in effect, the public benefit will be that public beaches, public and private coastal property, and coastal natural resources will be preserved, enhanced, or restored, or that losses sustained by these public and private resources will be reduced. In addition, the new section pertaining to guidelines for beneficial use of dredged material will enable the state and qualified project partners to obtain material to nourish beaches or restore wetlands at relatively low cost, while at the same time preserving the quality and character of the beaches or wetlands. Mr. Peacock has determined that there will be no additional cost of compliance for small or large businesses or individuals.

The Land Office has determined that the proposed rulemaking will have no local employment impact that requires an impact statement pursuant to the Government Code, §2001.022.

The proposed rulemaking is not subject to the Texas Coastal Management Program (CMP), 31 TAC §505.11(a)(1), relating to the Actions and Rules Subject to the Coastal Management Program. Individual erosion response projects undertaken in compliance with these rules may be subject to the CMP, and consistency with the CMP will be individually determined at the appropriate stage of project planning.

The Land Office has prepared a takings impact assessment for the proposed rulemaking pursuant to Texas Government Code, §2007.043(b), and §2.18 of the Attorney General's Private Real Property Rights Preservation Act Guidelines. The following is a summary of the analysis. The stated purpose of this rulemaking action is to outline the process by which the Land Office evaluates and assists in the funding of coastal erosion studies and projects in cooperation with qualified project partners and provide for evaluation by the Land Office of the suitability of dredged material, considering sediment composition, relative cost of material, and adverse environmental impacts. The proposed action achieves the stated purpose in accordance with the CEPRA. The proposed rulemaking does not place any additional burdens on private real property. The Land Office has determined that the proposed rulemaking will not result in a taking of private property.

To receive a copy of the takings impact assessment or comment on the proposed rulemaking, please send a written request or comment to Melinda Tracy, Texas Register Liaison, Texas General Land Office, P.O. Box 12873, Austin, Texas 78711-2873, facsimile number (512) 463-6311 or e-mail to melinda.tracy@glo.state.tx.us. Comments must be received no later than 30 days from the date of publication of this proposal.

31 TAC §§15.21 - 15.23

(Editor's note: The text of the following sections proposed for repeal will not be published. The sections may be examined in the offices of the General Land Office or in the Texas Register office, Room 245, James Earl Rudder Building, 1019 Brazos Street, Austin.)

The repeal of §§15.21 - 15.23 is proposed under the authority of Texas Natural Resources Code, §33.602(c), which authorizes the commissioner to adopt rules as necessary to implement a program of coastal erosion avoidance, remediation, and planning.

Texas Natural Resources Code §33.602(c) is affected by these repeals.

§15.21.Evaluation Process For Coastal Erosion Studies And Projects.

§15.22.Funding Projects From the Coastal Erosion Response Account.

§15.23.Coastal Boundary Surveys.

This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

Filed with the Office of the Secretary of State on March 21, 2003.

TRD-200301881

Larry L. Laine

Chief Clerk, Deputy Commissioner

General Land Office

Earliest possible date of adoption: May 4, 2003

For further information, please call: (512) 305-9129


31 TAC §§15.41 - 15.44

The new rules are proposed under the Texas Natural Resources Code, §33.602(c) which provides the commissioner of the General Land Office with the authority to adopt rules to implement Subchapter H, Chapter 33, Texas Natural Resources Code, concerning coastal erosion and the Texas Natural Resources Code, §33.602(d) which provides the commissioner of the General Land Office with the authority to adopt rules concerning the beneficial use of dredged material.

Texas Natural Resources Code, §§33.601 - 33.605 are affected by the proposed new rules.

§15.41.Evaluation Process For Coastal Erosion Studies And Projects.

The General Land Office (Land Office) will evaluate potential projects for funding from the coastal erosion response account based on a two-stage evaluation process as described in this section, including an initial evaluation of project goal summaries followed by a further evaluation of preferred alternatives.

(1) Initial evaluation of project goal summaries submitted to the Land Office by potential project partners.

(A) A potential project partner seeking funds from the coastal erosion response account must submit a project goal summary to the Land Office no later than December 1 of the first year of the state fiscal biennium in which funding is sought; provided that the Land Office in its discretion may accept a project summary that will address an emergency situation after December 1. The project goal summary must include the following:

(i) the name of the entity that will be the potential project partner and the name, mailing address, email address, facsimile number, and telephone number of the person who will represent the potential project partner and be the primary point of contact with the Land Office;

(ii) the location and geographic scope of the erosion problem;

(iii) a description of the erosion problem and the severity of erosion in the area;

(iv) the economic impacts of erosion in the area;

(v) a description of how public infrastructure and resources or private property have been impacted or threatened by erosion in the area;

(vi) the natural resource impacts of erosion in the area;

(vii) the estimated cost to complete the erosion response project;

(viii) whether the project will incorporate the beneficial use of dredged materials;

(ix) potential cosponsors and sources of funding with an estimated percentage of the project to funded with non-state funds;

(x) whether the potential partner can make a binding funding commitment of at least 15% of the total estimated project cost;

(xi) a description of an emergency erosion situation the project is intended to address, if any; and

(xii) the desired outcome or goals of the project for which funding is sought from the coastal erosion response account.

(B) The Land Office will accept project goal summaries by:

(i) mail sent to the General Land Office, Attn: Director, Coastal Resources Program Area, Coastal Stewardship Division, P.O. Box 12873, Austin, TX 78711-2873;

(ii) fax sent to (512) 475-0680; or

(iii) email sent to coastalprojects@glo.state.tx.us.

(C) The Land Office will evaluate and rank project goal summaries received based on the following criteria:

(i) the feasibility and cost-effectiveness of the proposed project;

(ii) the economic impacts of erosion in the area of the proposed project;

(iii) the effect of the proposed project on public infrastructure or resources threatened by erosion;

(iv) the effect of the proposed project on natural resources threatened by erosion;

(v) the effect of the proposed project on private property threatened by erosion;

(vi) if the project is located within the jurisdiction of a local government that administers a beach/dune program, whether the local government is adequately administering its duties under the Open Beaches Act (Texas Natural Resources Code, Chapter 61) and the Dune Protection Act (Texas Natural Resources Code, Chapter 63);

(vii) whether the project will provide for beneficial use of beach-quality sand dredged in constructing and maintaining navigation inlets and channels of the state; and

(viii) whether funding can be leveraged with sources other than the coastal erosion response account; and

(ix) whether the potential project partner has already made or received a binding commitment to fund all or a portion of a given project.

(D) After ranking proposed projects according to the criteria detailed in subparagraph (C) of this paragraph, the Land Office will further evaluate project goal summaries received based on the following priority criteria:

(i) whether funding the proposed project will contribute to balance in the geographic distribution of benefits for coastal erosion response projects in Texas that are proposed or have received funding from the coastal erosion response account;

(ii) whether federal and local financial participation in the project is maximized;

(iii) whether the project achieves efficiencies and economies of scale;

(iv) the relative severity of erosion in each area;

(v) the needs in other critical coastal erosion areas;

(vi) whether the proposed project will address an emergency erosion situation in the area; and

(vii) the cost of the proposed project in relation to the amount of money available in the coastal erosion response account.

(E) The Land Office will conduct the initial evaluation in consultation and coordination with the potential project partner, as deemed necessary by the Land Office. Based on the initial evaluation, the Land Office will designate proposed projects as either priority projects or alternate projects.

(i) If, as a result of the initial evaluation, the Land Office designates a potential project as an alternate project, the potential project partner will be notified in writing. The Land Office will retain the project goal summary and may reevaluate it if future conditions warrant funding the project in the current state fiscal biennium. The project goal summary must be resubmitted by the potential project partner for consideration for funding in a subsequent state fiscal biennium.

(ii) If the Land Office's initial evaluation results in a designation of a proposed project as a priority project, the Land Office will invite the potential project partner to continue to work cooperatively with the Land Office by becoming a qualified project partner.

(2) Evaluation of preferred alternatives with qualified project partners for priority projects.

(A) The Land Office and potential project partner for a priority project must enter into a project cooperation agreement to continue the evaluation process. Upon entering into a project cooperation agreement, the potential project partner will become a qualified project partner. The Land Office and qualified project partner will cooperatively evaluate alternatives for addressing the erosion problem(s) identified in the project goal summary of a priority project.

(B) The project cooperation agreement with the qualified project partner will explicitly define the activities to be undertaken by the Land Office and the qualified project partner in the evaluation of alternatives. Funds expended by a qualified project partner in conformance with the project cooperation agreement can be used to offset the qualified project partner's cost-sharing requirement. The Land Office may, at its sole discretion, fund studies or activities that are part of the alternatives-evaluation process.

(C) During the alternatives-evaluation process, the Land Office will evaluate projects based on the following criteria:

(i) the feasibility and cost-effectiveness of preferred alternative projects in meeting the goals of the project goal summary; and

(ii) whether the qualified project partner has already made or received a binding commitment to fund all or a portion of a given project.

(D) The Land Office will determine whether a qualified project partner should receive funds from the coastal erosion response account based on the final prioritization of preferred alternatives according to the considerations detailed in subparagraph (C) of this paragraph.

§15.42.Funding Projects From the Coastal Erosion Response Account.

(a) If the Land Office determines that a project should receive funds from the coastal erosion response account, the Land Office and the qualified project partner will amend the project cooperation agreement that was entered into earlier in the evaluation process. The Land Office shall explicitly describe in the amended project cooperation agreement the terms and conditions under which the Land Office will fund the project.

(b) Qualified project partners are required to pay at least 15% of the shared project costs in accordance with Texas Natural Resources Code, §33.603(c).

(1) The project cooperation agreement shall specify the terms of the qualified project partner's commitment to pay at least 15% of shared project costs.

(2) No costs incurred by a potential project partner before becoming a qualified project partner by entering into a project cooperation agreement with the Land Office may be used to offset the 15% cost-sharing requirement of the CEPRA.

(3) In-kind goods or services provided by the qualified project partner after entering into a project cooperation agreement with the Land Office may offset the 15% cost-sharing requirement, if the qualified project partner provides the Land Office with a reasonable basis for estimating the monetary value of those goods or services. The decision on whether to allow any in-kind good or service to offset the 15% cost-sharing requirement is in the sole discretion of the Land Office.

(4) Local governments that receive financial assistance from the state to clean and maintain public beaches fronting the Gulf of Mexico under Chapter 25 of this title, relating to Beach Cleaning and Maintenance Assistance Program, will not be allowed to use funds received under that program to meet the 15% cost-sharing requirement.

§15.43.Coastal Boundary Surveys and Landowner Consent.

(a) No person may undertake an action relating to erosion response on or immediately landward of a public beach or submerged land until the person has conducted and filed a coastal boundary survey with the Land Office in accordance with Texas Natural Resources Code, §33.136.

(1) If a coastal boundary survey for the area of an erosion response project that may be funded from the coastal erosion response account has previously been approved and filed with the Records and Archives Division of the Land Office, upon the request of the qualified project partner the Land Office shall determine whether that survey adequately reflects current conditions. If the survey adequately reflects current conditions, the Land Office may determine that a new coastal boundary survey is not required before the project is constructed. The decision of whether a new survey is required before construction of an erosion response project is in the sole discretion of the Land Office.

(2) The boundary depicted on any coastal boundary survey that is required before funding a project from the coastal erosion response account shall be delineated according to the law under which the upland property was originally granted by the sovereign.

(b) A coastal erosion response project on permanent school fund land may not be undertaken without obtaining the written consent of the school land board in accordance with Texas Natural Resources Code, §33.609.

(c) A coastal erosion response project on private property other than that encumbered by the common law rights of the public affirmed by Texas Natural Resources Code, Chapter 61, may not be undertaken without obtaining the consent of the property owner in accordance with Texas Natural Resources Code, §33.609.

§15.44.Beneficial Use of Dredged Material.

(a) Wherever practicable, material dredged in constructing and maintaining navigation inlets and channels of the state shall be placed on eroding beaches or used to restore eroding wetlands. The Land Office shall evaluate the practicality and suitability of proposed beneficial use of dredged material in accordance with this section and shall consider sediment composition, relative cost of the material, and adverse environmental impacts.

(b) A portion of the shoreline which is experiencing an historical erosion rate of greater than two feet per year based on the published data of the University of Texas at Austin Bureau of Economic Geology, is considered an eroding area for the purposes of this subchapter.

(c) For the purposes of this subchapter, beneficial use of dredged material shall not be deemed practicable if the cost to the State and local project partner for placement of the material dredged in constructing and maintaining navigation inlets and channels of the State exceeds the cost of obtaining similar material from an upland source, including transportation costs. In the case of placement for wetland restoration, the cost of soil preparation and treatment may also be considered.

(d) In determining the suitability and practicality of dredged material for beach placement the Land Office may refer to the guidance found in Chapter 9 of U.S. Army Corps of Engineers, Publication No. EM 1110-2-5026 "Engineering & Design, Beneficial Uses of Dredged Material," USACE, June 1987 and U.S. Army Corps of Engineers, Publication No. EM 1110-2-3301, "Design of Beach Fills," USACE, May 1995. Only beach-quality sand shall be considered for beach placement.

(e) In this section "beach-quality sand" means sediment material that:

(1) has effective grain size, mineralogy, and quality that approximates the existing beach material in the placement area;

(2) is low in fine grain, silty, or clayey sediments; and

(3) contains no hazardous substances listed in the Code of Federal Regulations, Volume 40, Part 300, in concentrations which are harmful to human health or the environment as determined by applicable, relevant, and appropriate requirements established by the local, state, and federal governments.

(f) In determining the suitability and practicality of placement of dredged material for wetland restoration, the Land Office may refer to the guidance found in Chapter 5 of U.S. Army Corps of Engineers, Publication No. EM 1110-2-5026 "Engineering & Design, Beneficial Uses of Dredged Material," USACE, June 1987.

(g) In determining whether a proposed beneficial use of dredged material has unacceptable adverse environmental impacts, the Land Office may consider any recommendations or comments by the U.S. Environmental Protection Agency, the U.S. Fish and Wildlife Service, the National Marine Fisheries Service, the Natural Resources Conservation Service, the U.S. Army Corps of Engineers, the Texas Natural Resource Conservation Commission, the Texas Parks and Wildlife Department, and the implementing agency for a national estuary program developed under Section 320 of the Federal Water Pollution Control Act (33 U.S.C. Section 1330) and approved by the governor of Texas and the administrator of the United States Environmental Protection Agency.

This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

Filed with the Office of the Secretary of State on March 21, 2003.

TRD-200301882

Larry L. Laine

Chief Clerk, Deputy Commissioner

General Land Office

Earliest possible date of adoption: May 4, 2003

For further information, please call: (512) 305-9129


Part 10. TEXAS WATER DEVELOPMENT BOARD

Chapter 359. WATER BANKING

31 TAC §359.2, §359.14

The Texas Water Development Board (the board) proposes amendment to 31 TAC §359.2 and §359.14, concerning Water Banking. The amendments are proposed to update a definition and to change the requirement for fee schedule approval. The amendments will provide cleanup and clarification as a result of the four-year rule review requirement of Texas Government Code §2001.039.

The board proposes to amend §359.2, Definitions, to update the definition of "Commission" from the "The Texas Natural Resource Conservation Commission" to "The Texas Commission on Environmental Quality." Amendment to §359.14, Fees, is proposed to change the requirement for approval of the fee schedule from two years, to an as needed basis.

The original intent in adopting the fee schedule revisions every two years was to provide an adjustment to the fees if market prices made the amount unduly burdensome and interfered with the use of the water bank for marketing. However, based on the water bank activities to date, staff considers the current fee structure reasonable and does not, at this time, foresee any significant water market changes or objections to the fee schedule by the public that would warrant a biennial reconsideration of the fee.

Ms. Melanie Callahan, Director of Fiscal Services, has determined that for the first five-year period these sections are in effect there will not be fiscal implications on state and local government as a result of enforcement and administration of the sections.

Ms. Callahan has also determined that for the first five years the sections as proposed are in effect the public benefit anticipated as a result of enforcing the sections will be clearer, more concise board rules governing these areas. Ms. Callahan has determined there will not be economic costs to small businesses or individuals required to comply with the sections as proposed.

Comments on the proposed amendment will be accepted for 30 days following publication and may be submitted to Suzanne Schwartz, General Counsel, Texas Water Development Board, P.O. Box 13231, Austin, Texas, 78711-3231, by e-mail to suzanne.schwartz@twdb.state.tx.us or by fax at (512) 463-5580.

Statutory authority: Water Code, §6.101 and §15.703(b).

Cross reference to statute: Water Code, Chapter 15, Subchapter K and Chapter 11, Subchapter E.

§359.2.Definitions.

The following words and terms when used in this chapter shall have the following meanings, unless the context clearly indicates otherwise:

(1) - (3) (No change.)

(4) Commission--The Texas Commission on Environmental Quality [ Natural Resource Conservation Commission ].

(5) - (13) (No change.)

§359.14.Fees.

(a) - (b) (No change.)

(c) As necessary, [ At least once every two years, ] the executive administrator shall obtain board approval of the fee schedule. The executive administrator shall provide notice in the Texas Register 30 days before board action considering approval of such fee schedule, and shall provide copies of the proposed fee schedule upon request. In approving such fee schedule, the board shall consider the expenses of operating the bank.

This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

Filed with the Office of the Secretary of State on March 19, 2003.

TRD-200301824

Suzanne Schwartz

General Counsel

Texas Water Development Board

Proposed date of adoption: May 21, 2003

For further information, please call: (512) 463-7981