Honorable Dan Patrick, Lieutenant Governor, Senate
FROM:
Jerry McGinty, Director, Legislative Budget Board
IN RE:
SB863 by Perry (Relating to water withdrawn from the Edwards Aquifer.), As Passed 2nd House
Estimated Two-year Net Impact to General Revenue Related Funds for SB863, As Passed 2nd House: an impact of $0 through the biennium ending August 31, 2027.
However, there is an estimated two year net impact of ($1,153,162) to the General Revenue-Dedicated Water Resource Management Account No. 153 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
$0
2027
$0
2028
$0
2029
$0
2030
$0
All Funds, Five-Year Impact:
Fiscal Year
Probable Savings/(Cost) from Water Resource Management 153
Change in Number of State Employees from FY 2025
2026
($593,581)
4.0
2027
($559,581)
4.0
2028
($559,581)
4.0
2029
($559,581)
4.0
2030
($559,581)
4.0
Fiscal Analysis
The bill would amend Water Code to require that water withdrawn from the Edwards Aquifer may not be transported outside the boundaries of the authority, by any means and for any purpose, and requires withdrawn water to be used within areas meeting certain certification criteria. The bill would also allow the Texas Commission on Environmental Quality (TCEQ) to adopt rules and authorize the issuance of permits for the injection of treated reclaimed water, that is treated in accordance with the standards adopted by TCEQ, into Class V aquifer storage and recovery (ASR) wells.
The bill would take effect on September 1, 2025.
Methodology
Based on information provided by TCEQ, an estimated 4.0 Full-Time Equivalent (FTE) positions and associated costs, paid from the General Revenue-Dedicated Water Resource Management Account No. 153 and totaling $593,581 in fiscal year 2026 and $559,581 in fiscal year 2027, would provide staffing and administrative resources to review the anticipated increase in ASR permitting applications and to update application and guidance forms. TCEQ did not include an estimated total amount or increase in the number of applications that the anticipated increase is based on in its analysis. FTEs would include: one Geoscientist III, one Geoscientist IV, one Engineer III, and one Engineer V.
This analysis based on information provided by TCEQ assumes salary and wage costs for the 4.0 FTEs would total $410,228 per fiscal year from 2026 to 2030. Benefit costs would total $116,587 per fiscal year from 2026 to 2030. Other administrative and staff costs would total $66,766 in fiscal year 2026 and $32,766 per fiscal year from 2027 to 2030. This estimate would include initial capital costs for licenses, furniture, and equipment in fiscal year 2026.
Local Government Impact
The fiscal implications of the bill cannot be determined at this time. Local and other governmental entities long-term water supply planning efforts may benefit from having an additional mechanism for the storage and use of reclaimed water.