LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 82ND LEGISLATIVE REGULAR SESSION April 16, 2011 TO: Honorable Troy Fraser, Chair, Senate Committee on Natural Resources FROM: John S O'Brien, Director, Legislative Budget Board IN RE:SB573 by Nichols (Relating to certificates of public convenience and necessity for water or sewer services.), Committee Report 1st House, Substituted No significant fiscal implication to the State is anticipated. The bill would create a new expedited Certificate of Convenience and Necessity (CNN) release process for landowners in counties with a population of 1 million-including adjacent counties, as well as counties with a population of between 200,000 and 220,000. The bill would reduce the acreage requirement for an expedited release from a CCN from 50 acres to 25 acres. The bill also would delete the current petition requirements for an expedited release, other than the requirement that the petitioner not be in a platted subdivision. The bill also would shorten the Texas Commission on Environmental Quality (TCEQ)s review period from 90 to 60 days and require the TCEQ to approve all petitions. The bill also would a limitation that the TCEQ may not deny a petition based on the fact that a CCN holder is a borrower under a federal loan program. The bill's passage is not expected to have a significant fiscal impact on the TCEQ. Local Government Impact A local government which holds a CCN could be negatively impacted if landowners would bereleased from such a CCN without cause, especially if: multiple areas would be removed from a CCN;the local government would have already made expenditures to provide services to the area beingreleased; and if the local government was anticipating to recoup such costs through revenues fromproviding service. Although some of the costs of losing areas from a CNN could be recouped, becausethe Water Code specifies that compensation may be awarded to a CCN holder if an area is removedfrom a CCN, this compensation would likely be limited and uncertain, because the award ofcompensation would not occur until another retail public utility would propose to serve the area. The cost to a local government resulting from passage of the bill would depend on the number of areasbeing removed from a CNN service area, the amount of expenditures the local government wouldhave made to provide service to these areas, the amount of revenue the local government anticipated tocollect to recoup such costs, and whether another CCN would propose to serve the areas beingremoved. Source Agencies:582 Commission on Environmental Quality LBB Staff: JOB, SZ, TL
LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 82ND LEGISLATIVE REGULAR SESSION
April 16, 2011
TO: Honorable Troy Fraser, Chair, Senate Committee on Natural Resources FROM: John S O'Brien, Director, Legislative Budget Board IN RE:SB573 by Nichols (Relating to certificates of public convenience and necessity for water or sewer services.), Committee Report 1st House, Substituted
TO: Honorable Troy Fraser, Chair, Senate Committee on Natural Resources
FROM: John S O'Brien, Director, Legislative Budget Board
IN RE: SB573 by Nichols (Relating to certificates of public convenience and necessity for water or sewer services.), Committee Report 1st House, Substituted
Honorable Troy Fraser, Chair, Senate Committee on Natural Resources
Honorable Troy Fraser, Chair, Senate Committee on Natural Resources
John S O'Brien, Director, Legislative Budget Board
John S O'Brien, Director, Legislative Budget Board
SB573 by Nichols (Relating to certificates of public convenience and necessity for water or sewer services.), Committee Report 1st House, Substituted
SB573 by Nichols (Relating to certificates of public convenience and necessity for water or sewer services.), Committee Report 1st House, Substituted
No significant fiscal implication to the State is anticipated.
No significant fiscal implication to the State is anticipated.
The bill would create a new expedited Certificate of Convenience and Necessity (CNN) release process for landowners in counties with a population of 1 million-including adjacent counties, as well as counties with a population of between 200,000 and 220,000. The bill would reduce the acreage requirement for an expedited release from a CCN from 50 acres to 25 acres. The bill also would delete the current petition requirements for an expedited release, other than the requirement that the petitioner not be in a platted subdivision. The bill also would shorten the Texas Commission on Environmental Quality (TCEQ)s review period from 90 to 60 days and require the TCEQ to approve all petitions. The bill also would a limitation that the TCEQ may not deny a petition based on the fact that a CCN holder is a borrower under a federal loan program. The bill's passage is not expected to have a significant fiscal impact on the TCEQ.
The bill would create a new expedited Certificate of Convenience and Necessity (CNN) release process for landowners in counties with a population of 1 million-including adjacent counties, as well as counties with a population of between 200,000 and 220,000. The bill would reduce the acreage requirement for an expedited release from a CCN from 50 acres to 25 acres. The bill also would delete the current petition requirements for an expedited release, other than the requirement that the petitioner not be in a platted subdivision. The bill also would shorten the Texas Commission on Environmental Quality (TCEQ)s review period from 90 to 60 days and require the TCEQ to approve all petitions. The bill also would a limitation that the TCEQ may not deny a petition based on the fact that a CCN holder is a borrower under a federal loan program.
The bill's passage is not expected to have a significant fiscal impact on the TCEQ.
Local Government Impact
A local government which holds a CCN could be negatively impacted if landowners would bereleased from such a CCN without cause, especially if: multiple areas would be removed from a CCN;the local government would have already made expenditures to provide services to the area beingreleased; and if the local government was anticipating to recoup such costs through revenues fromproviding service. Although some of the costs of losing areas from a CNN could be recouped, becausethe Water Code specifies that compensation may be awarded to a CCN holder if an area is removedfrom a CCN, this compensation would likely be limited and uncertain, because the award ofcompensation would not occur until another retail public utility would propose to serve the area. The cost to a local government resulting from passage of the bill would depend on the number of areasbeing removed from a CNN service area, the amount of expenditures the local government wouldhave made to provide service to these areas, the amount of revenue the local government anticipated tocollect to recoup such costs, and whether another CCN would propose to serve the areas beingremoved.
A local government which holds a CCN could be negatively impacted if landowners would bereleased from such a CCN without cause, especially if: multiple areas would be removed from a CCN;the local government would have already made expenditures to provide services to the area beingreleased; and if the local government was anticipating to recoup such costs through revenues fromproviding service. Although some of the costs of losing areas from a CNN could be recouped, becausethe Water Code specifies that compensation may be awarded to a CCN holder if an area is removedfrom a CCN, this compensation would likely be limited and uncertain, because the award ofcompensation would not occur until another retail public utility would propose to serve the area.
The cost to a local government resulting from passage of the bill would depend on the number of areasbeing removed from a CNN service area, the amount of expenditures the local government wouldhave made to provide service to these areas, the amount of revenue the local government anticipated tocollect to recoup such costs, and whether another CCN would propose to serve the areas beingremoved.
Source Agencies: 582 Commission on Environmental Quality
582 Commission on Environmental Quality
LBB Staff: JOB, SZ, TL
JOB, SZ, TL