Honorable Drew Darby, Chair, House Committee on Energy Resources
FROM:
Jerry McGinty, Director, Legislative Budget Board
IN RE:
HB4891 by Morales, Eddie (Relating to the regulation by the Railroad Commission of Texas of certain commercial facilities that dispose of oil and gas waste; imposing a fee.), As Introduced
Estimated Two-year Net Impact to General Revenue Related Funds for HB4891, As Introduced: an impact of $0 through the biennium ending August 31, 2027.
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
2026
$400,000
2027
$400,000
2028
$400,000
2029
$400,000
2030
$400,000
All Funds, Five-Year Impact:
Fiscal Year
Probable Revenue Gain from General Revenue Fund 1
2026
$400,000
2027
$400,000
2028
$400,000
2029
$400,000
2030
$400,000
Fiscal Analysis
The bill would amend the Natural Resources Code to define a commercial disposal facility and to require an operator applying for or acting under a permit to operate a commercial disposal facility to maintain a performance bond or other form of financial security. The bill would require an applicant applying for a commercial disposal facility permit to provide certain relevant information to demonstrate the need for an additional commercial disposal facility within 30-mile radius of its location, and to pay a non-refundable permit application fee of $100,000, excepting commercial disposal facility permit holders seeking the renewal or modification of a permit in effect before September 1, 2025.
Methodology
The Railroad Commission (RRC) reports having received four or five applications for this type of permit each fiscal year.
Based on information provided by the Comptroller of Public Accounts and the RRC, it is assumed that $400,000 in General Revenue would be generated each fiscal year from the application fees.
Based on information provided by the RRC, it is assumed that any costs could be absorbed using existing resources.
Local Government Impact
No fiscal implication to units of local government is anticipated.
Source Agencies:
304 Comptroller of Public Accounts, 455 Railroad Commission