LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 83RD LEGISLATIVE REGULAR SESSION April 12, 2013 TO: Honorable Allan Ritter, Chair, House Committee on Natural Resources FROM: Ursula Parks, Director, Legislative Budget Board IN RE:HB3233 by Ritter (Relating to interbasin transfers of state water.), Committee Report 1st House, Substituted No significant fiscal implication to the State is anticipated. The bill would affect the permitting process for inter-basin transfers of surface water rights. The bill would remove the requirement that an application for an inter-basin transfer must include the projected effect on user rates and fees for each class of rate payers. The bill would change notification requirements, and it would substitute the term service area of a retail water utility for municipality's retail service area. The bill would provide that the Texas Commission on Environmental Quality (TCEQ) would determine whether detriments to a basin of origin are less than the benefits to the receiving basin. The changes proposed by the bill could shorten the permitting process for an inter-basin transfer. The bill also could increase the number of utilities that would be exempt from requirements for an inter-basin transfer application because the term service area of retail water utility encompasses more utility service areas than the existing language of municipality's retail service area. Passage of the bill is not expected to result in a significant impact on the TCEQ's workload. Local Government Impact Units of local government that apply for inter-basin transfers of water may experience lower permitting costs, but the amount of any savings would vary widely and depend on the unique operating environment of the local government. Source Agencies:582 Commission on Environmental Quality LBB Staff: UP, SZ, TL LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 83RD LEGISLATIVE REGULAR SESSION April 12, 2013 TO: Honorable Allan Ritter, Chair, House Committee on Natural Resources FROM: Ursula Parks, Director, Legislative Budget Board IN RE:HB3233 by Ritter (Relating to interbasin transfers of state water.), Committee Report 1st House, Substituted TO: Honorable Allan Ritter, Chair, House Committee on Natural Resources FROM: Ursula Parks, Director, Legislative Budget Board IN RE: HB3233 by Ritter (Relating to interbasin transfers of state water.), Committee Report 1st House, Substituted Honorable Allan Ritter, Chair, House Committee on Natural Resources Honorable Allan Ritter, Chair, House Committee on Natural Resources Ursula Parks, Director, Legislative Budget Board Ursula Parks, Director, Legislative Budget Board HB3233 by Ritter (Relating to interbasin transfers of state water.), Committee Report 1st House, Substituted HB3233 by Ritter (Relating to interbasin transfers of state water.), 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 affect the permitting process for inter-basin transfers of surface water rights. The bill would remove the requirement that an application for an inter-basin transfer must include the projected effect on user rates and fees for each class of rate payers. The bill would change notification requirements, and it would substitute the term service area of a retail water utility for municipality's retail service area. The bill would provide that the Texas Commission on Environmental Quality (TCEQ) would determine whether detriments to a basin of origin are less than the benefits to the receiving basin. The changes proposed by the bill could shorten the permitting process for an inter-basin transfer. The bill also could increase the number of utilities that would be exempt from requirements for an inter-basin transfer application because the term service area of retail water utility encompasses more utility service areas than the existing language of municipality's retail service area. Passage of the bill is not expected to result in a significant impact on the TCEQ's workload. The bill would affect the permitting process for inter-basin transfers of surface water rights. The bill would remove the requirement that an application for an inter-basin transfer must include the projected effect on user rates and fees for each class of rate payers. The bill would change notification requirements, and it would substitute the term service area of a retail water utility for municipality's retail service area. The bill would provide that the Texas Commission on Environmental Quality (TCEQ) would determine whether detriments to a basin of origin are less than the benefits to the receiving basin. The changes proposed by the bill could shorten the permitting process for an inter-basin transfer. The bill also could increase the number of utilities that would be exempt from requirements for an inter-basin transfer application because the term service area of retail water utility encompasses more utility service areas than the existing language of municipality's retail service area. Passage of the bill is not expected to result in a significant impact on the TCEQ's workload. Local Government Impact Units of local government that apply for inter-basin transfers of water may experience lower permitting costs, but the amount of any savings would vary widely and depend on the unique operating environment of the local government. Source Agencies: 582 Commission on Environmental Quality 582 Commission on Environmental Quality LBB Staff: UP, SZ, TL UP, SZ, TL