LEGISLATIVE BUDGET BOARD

Austin, Texas

FISCAL NOTE, 81ST LEGISLATIVE REGULAR SESSION

April 8, 2009

TO:	Honorable Kip Averitt, Chair, Senate Committee on Natural Resources
FROM:	John S. O'Brien, Director, Legislative Budget Board
IN RE:	SB2315 by Averitt (Relating to water audits by retail public utilities.), As Introduced

No significant fiscal implication to the State is anticipated.

The bill would amend the Water Code to require a retail public utility to perform a water loss audit annually and file it with the Water Development Board (TWDB) if the utility is receiving any financial assistance from TWDB.

TWDB indicates that any costs associated with the bill could be absorbed within the agency’s existing resources.

The bill would take effect immediately if it receives a vote of two-thirds of all members elected to each house; otherwise it would take effect September 1, 2009. 

Local Government Impact

The bill would amends the Water Code to require each retail public utility providing potable water to perform a system water loss audit every five years, except during the term of any loan or grant agreement with TWBD, the utility must perform the audit annually. According to TWDB, the costs to a retail public utility for staff time to complete an annual water loss audit range from less than $1,000 to $20,000 depending on the size of the utility and their records system.

Source Agencies:

580 Water Development Board, 582 Commission on Environmental Quality

LBB Staff:

JOB, AH, SD, TP