LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 77th Regular Session
May 6, 2001
TO: Honorable Florence Shapiro, Chair, Senate Committee on
State Affairs
FROM: John Keel, Director, Legislative Budget Board
IN RE: SB1356 by Armbrister (Relating to the authority of the
Texas Transportation Commission to condemn certain
protected property.), As Introduced
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* Estimated Two-year Net Impact to General Revenue Related Funds for *
* SB1356, As Introduced: positive impact of $0 through the biennium *
* ending August 31, 2003. *
* *
* The bill would make no appropriation but could provide the legal *
* basis for an appropriation of funds to implement the provisions of *
* the bill. *
**************************************************************************
General Revenue-Related Funds, Five-Year Impact:
****************************************************
* Fiscal Year Probable Net Positive/(Negative) *
* Impact to General Revenue Related *
* Funds *
* 2002 $0 *
* 2003 0 *
* 2004 0 *
* 2005 0 *
* 2006 0 *
****************************************************
All Funds, Five-Year Impact:
*****************************************************
* Fiscal Year Probable Savings/(Cost) from State *
* Highway Fund *
* 0006 *
* 2002 $(1,950,000) *
* 2003 0 *
* 2004 (64,570,000) *
* 2005 (52,700,000) *
* 2006 (64,570,000) *
*****************************************************
Fiscal Analysis
The bill would amend the Transportation Code to prohibit the
Transportation Commission from condemning any property that is subject to
a habitat conservation plan and that is owned by a participant in the
plan.
The bill would take effect September 1, 2001.
Methodology
The Texas Department of Transportation (TxDOT) estimates that dredging
disposal costs of approximately $1.9 million in fiscal year 2002, $64.5
million in fiscal year 2004, $52.7 million in fiscal year 2005, and $64.5
million in fiscal year 2006 would be realized for required dredging
activities along the 423 mile length of the Gulf Intercoastal Waterway
(GIW) as a result of TxDOT being unable to obtain land for upland
disposal sites in this area. TxDOT estimates that all land owners along
the GIW would enter into a "habitat conservation plan" and that similar
costs would continue in the future. TxDOT also estimates an average
upland disposal site would cost approximately $300,000 per site (based on
$1,500 per acre for a 200 acre site), that obtaining each disposal site
would require a time frame of 6 months to 2 years, and that each disposal
site would be usable for 30 to 50 years. This analysis considers that
TxDOT would not be able to acquire land for upland disposal sites in less
than 2 years along the 423 mile length of the GIW due to the required
acquisition processes regardless of the provisions of the bill, except
for sites near Port Bolivar that are scheduled for acquisition in fiscal
year 2002. This analysis also considers appropriations in the amount of
$1.35 million to TxDOT in the first year of each biennium since fiscal
year 1998 for the purposes of purchasing upland dredge disposal sites.
TxDOT currently uses an open water disposal method for material collected
through dredging at most sites along the 423 mile length of the GIW and
has reported that a federal study is in progress to determine if open
water disposal would be allowed to continue in the GIW after fiscal year
2001. This analysis considers the fiscal impact of TxDOT being
prohibited from using an open water disposal method for material
collected through dredging. For calculation purposes, TxDOT divided the
423 mile length of the GIW into two sections.
Section 1 extends from the Sabine River to Corpus Christi and includes 3
segments: High Island, Port Bolivar, and Freeport. TxDOT estimates
dredge material from each segment in this section would have to be
removed on an alternating schedule by pumping it offshore to the Gulf at
a cost of $10 per cubic yard. TxDOT estimates that approximately 1.2
million cubic yards of dredge material would be removed from the High
Island segment in fiscal year 2005, that approximately 330,000 cubic
yards of dredge material would be removed from the Port Bolivar segment
in fiscal years 2002 and 2005, and that approximately 1.6 million cubic
yards of dredge material would be removed from the Freeport segment in
fiscal years 2004 and 2006.
Section 2 extends from Corpus Christi to Brownsville and includes 6
numbered segments. Segments 1, 2, and 3 comprise the upper region of the
Section and segments 4, 5, and 6 comprise the lower region. TxDOT
estimates dredge material from each segment in this section would have to
be removed on an alternating schedule by disposing of the dredge
material in open bay confined sites. TxDOT estimates that the average
cost per cubic yard to dispose of the dredge material in open bay
confined sites in each of the segments would be $5.74, $3.11, $9.75,
$5.78, $13.23, and $5.95 respectively based on water depth, location, and
dredge material composition of each segment. These cost estimates do
not include any environmental clearances or mitigation costs. TxDOT
estimates that 2 million cubic yards of dredge material would have to be
removed from segments 4, 5, and 6 in the lower region during fiscal years
2004 and 2006 and that 2 million cubic yards would have to be removed
from segments 1, 2, and 3 in the upper region during fiscal year 2005.
If TxDOT is not prohibited from using an open water disposal method, no
significant fiscal impact would be realized in implementing the
provisions of the bill.
Local Government Impact
No fiscal implication to units of local government is anticipated.
Source Agencies: 305 General Land Office, 601 Texas Department of
Transportation
LBB Staff: JK, RB, RT, MW