The bill would require Texas Commission on Environmental Quality (TCEQ) to establish a process for landowners to report wells on their property that were originally drilled or operated as an oil or gas well and now serve as water wells or wells that were not properly plugged or pose a threat to ground or surface water. The bill also would require TCEQ to establish a program to provide grants to landowners or governmental entities to plug the reported wells. The bill would require TCEQ to adopt rules governing grants as required by the bill and requiring that well plugging be performed either by a well plugger approved by the Railroad Commission (RRC) or by RRC.
General Revenue-Dedicated Water Resource Management Account No. 153
General Revenue-Dedicated Water Resource Management Account No. 153 is not eligible to be used for this purpose.
Based on information provided by TCEQ, this analysis assumes program costs for TCEQ apart from grant funding would be paid from General Revenue-Dedicated Water Resource Management Account No. 153. In fiscal year 2024, $210,000 would be required to procure a contract to build a new module in the Internal Data Application to support grant tracking and administration. Beginning in fiscal year 2025, 1.0 Geoscientist III (B24) and 1.0 Grant Specialist III (B21) would be necessary to implement the provisions of the bill with a cost of $224,399 in fiscal year 2025 and $214,399 in subsequent fiscal years. Costs that would be realized each fiscal year beginning in fiscal year 2025 would include salary costs of $156,531; agency payroll costs of $2,348; associated benefit costs of $47,476; and general operating costs of $10,392. Initial costs in fiscal year 2025 for the new staff computers, furniture, and equipment would total $10,000.
Based on information provided by the RRC, this analysis assumes the agency could absorb costs associated with assisting TCEQ to implement the provisions of the bill if grant funding would be provided at an amount less than $5,000,000 each fiscal year. If the grant program would be funded with more than $5,000,000 each fiscal year, it is assumed that RRC would need 1.0 License and Permit Specialist III (B16) at a total cost of $82,265 each fiscal year 2024 through 2028 from General Revenue. These costs would include a salary of $51,024; agency payroll costs of $765; associated benefit costs of $15,476; and operating costs of $15,000 each fiscal year. In addition, this analysis does not assume that RRC would not be reviewing and approving well plugging plans. If RRC were to review and approve plans, it is assumed that additional staff and FTEs would be necessary in amounts dependent on the number of plans that would be reviewed.
This analysis assumes the cost to the General Revenue Fund for water well plugging grants cannot be determined because the funding that would be provided is unknown. Additionally, the number of water wells that would be plugged in a fiscal year cannot be determined because the amount of funding that would be available for this purpose is unknown and the the number of eligible water wells, their location, depth, and complexity is also unknown.