LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE 75th Regular Session April 16, 1997 TO: Honorable J.E. "Buster" Brown, Chair IN RE: House Bill No. 1190, Committee Report 2nd House, as amended Committee on Natural Resources By: Counts Senate Austin, Texas FROM: John Keel, Director In response to your request for a Fiscal Note on HB1190 ( Relating to monitoring of water quality in watersheds and river basins.) this office has detemined the following: Biennial Net Impact to General Revenue Funds by HB1190-Committee Report 2nd House, as amended Implementing the provisions of the bill would result in a net impact of $0 to General Revenue Related Funds through the biennium ending August 31, 1999. The bill would make no appropriation but could provide the legal basis for an appropriation of funds to implement the provisions of the bill. Fiscal Analysis The bill would re-authorize funding for the Clean Rivers program, currently set to expire August 31, 1998, and amend provisions in Chapter 26, Water Code, relating to water quality monitoring and assessments for the program. The Texas Natural Resource and Conservation Commission (TNRCC) would be required to adopt rules concerning program participation requirements. The bill would provide that river authorities receive adequate funding to complete assessments. Water quality monitoring and reporting duties would apply only to those river authorities entering into agreements with TNRCC to perform those duties. Equitable apportionment of program funds among river basins would also be required. Use of funds to implement of the Clean Rivers program would be limited, and the 10 percent maximum allocation to allow TNRCC to recover administrative costs would be continued. The TNRCC would be required to use data generated under the Clean Rivers program to conduct water quality management activities. Also, the TNRCC could consolidate fees assessed against wastewater permit holders with assessments of wastewater inspection fees in order to recover the costs of water quality management programs. Existing requirements for cities over 5,000 in population to establish water pollution control and abatement plans would become voluntary. The bill would, however, allow the TNRCC to require cities with population of 10,000 or more which have certain water pollution problems to establish water pollution control and abatement programs (WPCA programs). Cities could contract with river authorities or other political subdivisions to conduct WPCA programs. Cities and political subdivisions with which a city contracted could obtain TNRCC assistance to conduct their WPCA programs. This bill would take effect September 1, 1997. Methodolgy The bill would make no overall change to current funding. Funding authority for the Clean Rivers program would continue at the current annual level of $5 million, allowing TNRCC to retain up to 10 percent for administrative costs to implement the program. The remainder, $4.5 million, would be used to reimburse river authorities and other regional and local entities for the costs of conducting regional water quality assessments. The bill would continue to require participation from the Soil and Water Conservation Board (the Board) in river basin steering committees. The Board anticipates it will be able to fulfill program requirements without additional cost. The probable fiscal implications of implementing the provisions of the bill during each of the first five years following passage is estimated as follows Five Year Impact: Fiscal Year Probable Revenue Probable Change in Number Gain/(Loss) from Savings/(Cost) of State Water Quality from Water Employees from Account/ Quality Account/ FY 1997 GR-Dedicated GR-Dedicated 0153 0153 1998 0.0 1998 5,000,000 (5,000,000) 0.0 2000 5,000,000 (5,000,000) 0.0 2001 5,000,000 (5,000,000) 0.0 2002 5,000,000 (5,000,000) 0.0 Net Impact on General Revenue Related Funds: Fiscal Year Probable Net Postive/(Negative) General Revenue Related Funds Funds 1998 $0 1999 0 2000 0 2001 0 2002 0 The bill would continue the assessment and collection of fees from users of water, as well as wastewater permit holders. Based on current fee collections, local governments pay approximately 50 percent, or $2.5 million, of the annual revenue of $5 million. The bill would continue annual reimbursements of approximately $4.5 million to local governments for the cost of conducting regional water quality assessments. Source: Agencies: 580 Water Development Board 582 Natural Resources Conservation Commission 592 Soil and Water Conservation Board LBB Staff: JK ,BB ,NT ,DM