Honorable Robert Puente, Chair, House Committee on Natural Resources
FROM:
John S. O'Brien, Director, Legislative Budget Board
IN RE:
HB147 by Phillips (Relating to the use of an administrative penalty imposed by the Texas Commission on Environmental Quality against a municipally owned utility to ameliorate the violation for which the penalty was imposed.), As Introduced
No significant fiscal implication to the State is anticipated.
The bill would authorize the Texas Commission on Environmental Quality (TCEQ) to allow a municipally-owned utility that is under enforcement for a deficiency in the utility’s facilities to use any portion of an administrative penalty to correct the violation or to improve the facilities in lieu of ordering payment of the penalty.
The bill could result in a decrease in penalty payments to the General Revnenue Fund; however, any loss is not expected to be significant. In addition, any administrative costs to the the TCEQ in implementing the bill are expected to be minimal.
Local Government Impact
Municipalities owning their utilities could experience a positive fiscal impact upon passage of the bill because they would be allowed to use funds that would otherwise be paid as administrative penalties to correct deficiencies in their own facilities.