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