LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE
75th Regular Session
May 30, 1997
TO: Honorable Bob Bullock Honorable James E. "Pete" Laney
Lieutenant Governor Speaker of the House
Senate
Austin, Texas
FROM: John Keel, Director
In response to your request for a Fiscal Note on SB1 ( relating
to the development and management of the water resources of
the state; providing penalties.) this office has detemined the
following:
Biennial Net Impact to General Revenue Funds by SB1-Conference Committee Report
Implementing the provisions of the bill would result in a
net negative impact of ($35,922,295) 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. Contingent upon final passage of
this bill, a total of $34,043,295 in General Revenue funding
would be appropriated by H.B. 1 to provide agencies with the
resources to implement the provisions of this bill.
Fiscal Analysis
The bill would provide a framework for the management of water
resources, including drought planning, water rights regulation,
financial and technical assistance and data collection.
The
bill would require the Texas Water Development Board (TWDB)
to adopt a State Water Plan, incorporating regional water plans
and including drought response planning. TWDB would be required
to designate water planning regions by September 1, 1998. It
would create a Drought Response and Monitoring Committee, with
the Governor's Division of Emergency Management as chair, the
Texas Natural Resource Conservation Commission (TNRCC), TWDB,
the Texas Parks and Wildlife Department (TPWD), Texas Department
of Agriculture (TDA), Texas Agricultural Extension Service (TAEX)
and the Soil and Water Conservation Board (SWCB).
The bill
would amend statutory provisions relating to TNRCC's responsibilities
in water rights permitting and would provide a regulatory process
and requirements for considering interbasin water transfers.
It would specify conditions for granting emergency authorizations
for the use of water.
The bill would provide a process and
procedures for TNRCC to identify priority groundwater management
areas and would establish procedures for TNRCC to create new
groundwater districts. TNRCC, TWDB and TAEX would administer
an education program to inform district residents of water issues
relevant to the area. The bill would require TNRCC to provide
technical assistance to districts to develop comprehensive management
plans that are consistent with approved regional water plans,
while TWDB would be required to review and certify the comprehensive
plans. TWDB, TNRCC, TPWD and TAEX would be allowed to allocate
funds to districts for groundwater management planning. The
bill would create the Texas Groundwater Management Council to
determine whether districts are operational. The bill also
would provide a tax exemption for capital equipment used for
water conservation or water/wastewater recycling in the manufacturing
process.
The Texas Water Development Fund (Fund II), a special
fund in the state treasury, would be established contingent
on the passage of a constitutional amendment (SJR 17). Fund
II would be created by consolidating existing bond authorizations
for water supply, water quality and flood control into a single
financial assistance account within the fund; Fund II also would
include a state participation account and an economically distressed
areas program account. Also, contingent upon voter approval
of a constitutional amendment (SJR 45), up to $10 million of
the amount deposited in the Linked Deposit Program could be
used to finance water conservation projects.
The bill addresses
TNRCC's regulation of water and wastewater services, rates,
service areas and implementation of certain provisions of the
federal Safe Drinking Water Act Amendments of 1996. The bill
would require entities that merge or purchase water utilities
to demonstrate financial, managerial and technical capabilities
to ensure a continuous and safe drinking water supply. The
bill also would allow TWDB to provide loans through the Safe
Drinking Water Act State Revolving Fund (SDWA SRF) to investor-owned
utilities. The bill would authorize loan subsidies to disadvantaged
communities through the SDWA SRF.
The bill would merge the
Texas Natural Resources Information System and the existing
Texas Geographic Information Systems Planning Council to form
a new Texas Geographic Information Council. The council would
provide oversight and direction for data collection statewide
and serve as the centralized clearinghouse for natural resources
data. The bill also would require the Executive Administrator
of TWDB to coordinate, conduct, and facilitate the development
and use of statewide digital base maps. TNRCC would be required
to update water availability models by December 1999.
Methodolgy
Estimates of the bill s cost are based on historical data and
past experience for similar programs or requirements. The estimated
fiscal impact to the General Revenue Fund and total FTEs (All
Funds) required for each agency are shown for the 1998-99 biennium.
TEXAS
WATER DEVELOPMENT BOARD: Financial and technical assistance
for regional water planning and ground water management plans;
coordinate and manage data collection and dissemination, including
developing digital base maps.
ESTIMATED COST to General Revenue,
1998-99 biennium: $(27,578,542).
ESTIMATED FTEs (All Funds),
FY1998: 11.5; FY1999: 14.5.
TEXAS NATURAL RESOURCE CONSERVATION
COMMISSION: Enforcement; water rights management; water service
regulation; interbasin water transfers; data collection.
ESTIMATED
NET COST to General Revenue, 1998-99 biennium: $(5,386,753).
ESTIMATED
FTEs (All Funds) 1998-99 biennium: 22.
TEXAS PARKS AND
WILDLIFE DEPARTMENT: Assess impact of plans on fish and wildlife;
technical assistance; data collection.
ESTIMATED NET COST to
General Revenue, 1998-99 biennium: $(478,000).
ESTIMATED FTEs
(All Funds) 1998-99 biennium: 3.
COMPTROLLER: Tax exemption
for water conservation and wastewater recycling equipment.
ESTIMATED
NET LOSS to General Revenue, 1998-99 biennium: $(1,479,000)
TEXAS
AGRICULTURAL EXTENSION SERVICE: Administer education program
to inform district residents of water issues.
ESTIMATED NET
COST to General Revenue, 1998-99 biennium: $(600,000)
OTHER
AGENCIES:
TDA estimates that the bill's provisions for the
linked deposit program would result in a loss of interest earnings
of $200,000 per year.
The State Auditor's Office estimated
no fiscal impact for the biennium since the agency's audit responsibilities
would not begin until fiscal year 2000.
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 Probable Revenue Probable Revenue Probable Revenue Change in Number
Savings/(Cost) Gain/(Loss) from Gain/(Loss) from Gain/(Loss) from of State
from General General Revenue Federal Funds Federal Funds Employees from
Revenue Fund Fund FY 1997
0001 0001 0555 0555
1998 ($23,072,000) ($693,000) $5,777,096 ($5,777,096) 36.5
1998 (10,971,295) (1,186,000) 5,763,748 (5,763,748) 39.5
2000 (16,255,441) (1,678,000) 5,834,234 (5,834,234) 39.5
2001 (16,215,440) (1,723,000) 5,834,234 (5,834,234) 39.5
2002 (12,681,785) (1,763,000) 92,012 (92,012) 39.5
Net Impact on General Revenue Related Funds: