TO: | Honorable Mike Krusee, Chair, House Committee on Transportation |
FROM: | John Keel, Director, Legislative Budget Board |
IN RE: | HB1198 by Krusee (Relating to the establishment, designation, construction, and operation of a system of multimodal facilities to be designated as the Trans Texas Corridor.), As Introduced |
Fiscal Year | Probable Net Positive/(Negative) Impact to General Revenue Related Funds |
---|---|
2004 | $0 |
2005 | $0 |
2006 | $0 |
2007 | $0 |
2008 | $0 |
Fiscal Year | Probable Savings/(Cost) fromSTATE HIGHWAY FUND 6 |
---|---|
2004 | ($10,000,000) |
2005 | ($20,000,000) |
2006 | ($30,000,000) |
2007 | ($40,000,000) |
2008 | ($50,000,000) |
The bill would amend the Transportation Code by adding a new chapter that would provide the Texas Transportation Commission (TTC) and the Texas Department of Transportation (TxDOT) with all powers necessary, or convenient, to construct and operate the Trans Texas Corridor. The bill would provide guidance, restrictions, and requirements and would broaden the authorities and abilities of TxDOT with respect to financing; funding projects; private investments; contributions from governmental entities; loans, grants, and reimbursements from the federal government; issuing and refunding bonds; borrowing funds, including loans from the State Infrastructure Bank; bidding and procurement processes; entering into exclusive development agreements; acquiring real property; leasing real property; accepting donations of interests in real property; establishing, assessing, collecting, depositing, and using fees; granting franchise rights; granting exclusive and non-exclusive access licenses; accepting payments for a lease, franchise right, or license; performing environmental reviews; addressing environmental mitigation; constructing, operating, and joining facilities; designating the uses of facilities; acquiring non-highway facilities, including rolling stock or other personnel property; entering into agreements with a rail operator, public utility, private utility, communications system, common carrier, transportation system, or other entity for the common use of any facility; and participating with governmental and private entities concerning projects for the Trans Texas Corridor. The bill would also establish that bonds issued under the provisions of the bill would not constitute a debt of the state or a pledge of the faith and credit of the state.
The bill would require that the chapter created in the bill would supersede all laws governing the financing, design, construction, or operation of a state highway or turnpike for the Trans Texas Corridor if a conflict would exist between the bill and other statutes. The bill would also require that the chapter created in the bill would supersede all laws governing the acquisition of right of way for a state highway for the Trans Texas Corridor if a conflict would exist between the bill and other statutes. The bill would provide guidance, restrictions, and requirements for the TTC and TxDOT regarding public meetings and conducting, or approving, all required environmental evaluations or studies. The bill would allow the commission to establish speed limits within specifications.
TxDOT indicates estimated costs noted above are conservative because actual Trans Texas Corridor locations and designs are currently undecided. TxDOT estimates the Trans Texas Corridor will require 50 to 75 years to build and anticipates that total costs will exceed $145 billion over that period of time. For the purposes of this analysis, TxDOT has identified four priority segments that are currently being considered for use in the Trans Texas Corridor, which include proposed segments of I-35, I-37 and I-69 from Denison to the Rio Grande Valley; I-69 from Texarkana to Houston to Laredo; I-45 from Dallas-Fort Worth to Houston; and I-10 from El Paso to Orange. TxDOT estimates costs of $10 million during the first fiscal year with costs increasing incrementally by $10 million during each successive year from the State Highway Fund for feasibility studies, environmental studies, right-of-way acquisition, and preliminary engineering efforts would be the only costs realized in the first five years of implementation.
It is assumed that costs to local governmental entities for participating in the building of the Trans Texas Corridor would depend on the size and type of projects constructed and the nature of agreements entered into with TxDOT. According to TxDOT, costs associated with the acquisition, construction and operation of the Trans Texas Corridor would eventually be offset by revenue generated by utility fees, toll receipts, railroad fees and commercial charges. Although TxDOT anticipates that a significant portion of financing will come from private sector involvement, no estimates where made on private sector and state funding portions due to a lack of available information.
Source Agencies: | 304 Comptroller of Public Accounts, 601 Department of Transportation
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LBB Staff: | JK, RR, MW, KG
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