TO:	Honorable Tracy O. King, Chair, House Committee on Natural Resources

FROM:	Jerry McGinty, Director, Legislative Budget Board

IN RE:	HB4856 by Darby (Relating to the use of recycled fluid oil and gas waste.), As Introduced

The fiscal implications of the bill cannot be determined because the amount of produced water that would be treated, the standard that the produced water would be treated to, and the increase in the number of permit applications for injection wells are unknown.

The bill would make no appropriation but could provide the legal basis for an appropriation of funds to implement the provisions of the bill.

The bill would amend the Water Code to provide the Texas Commission on Environmental Quality (TCEQ) exclusive authority to regulate and permit entities that inject produced water from recycled fluid oil and gas waste that has been treated to a standard determined by TCEQ into recharge injection wells.

This analysis assumes that costs associated with implementing the provisions of the bill would need to be funded out of General Revenue-Dedicated Waste Management Account No. 549. Based on information provided by TCEQ, it is assumed that the agency would be unable to absorb additional work associated with implementing the provisions of the bill in existing resources and would require additional staff. However, the fiscal implications of the bill cannot be determined because the amount of produced water that would be treated, the standard that the water would be treated to, and the number of injection wells that may apply for permits under the bill are unknown at this time.

TCEQ indicates that it does not have the authority under current federal regulations to regulate the activity as required in the bill.

LEGISLATIVE BUDGET BOARD
Austin, Texas

FISCAL NOTE, 88TH LEGISLATIVE REGULAR SESSION


April 17, 2023