LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 84TH LEGISLATIVE REGULAR SESSION May 15, 2015 TO: Honorable Charles Perry, Chair, Senate Committee on Agriculture, Water & Rural Affairs FROM: Ursula Parks, Director, Legislative Budget Board IN RE:HB4097 by Hunter (Relating to seawater desalination projects.), As Engrossed No significant fiscal implication to the State is anticipated. The bill would require the Public Utilities Commission (PUC) to conduct studies with the Electric Reliability Council of Texas (ERCOT) related to seawater desalination projects. If PUC determines that statutory changes are needed to ensure that adequate infrastructure is developed for such projects, the PUC is required to include recommendations in a report required in Utilities Code, Section 31.003. PUC and the ERCOT independent system operator would also be required to study the potential opportunities and barriers for customer loads, including seawater desalination projects to participate in existing demand response opportunities in the ERCOT market. The bill would authorize the Texas Commission on Environmental Quality (TCEQ) to issue a permit to discharge waste from a desalination facility into the Gulf of Mexico evaluate compliance with developed environmental flow standards. The bill would also authorize TCEQ to evaluate compliance with water quality standards, requirements of the Texas Pollutant Discharge Elimination System (TPDES) program, and applicable federal law in issuing such a permit; indicate permits may be individual permits complying with Texas Water Code Subchapter M, Chapter 5 (Environmental Permitting Procedures) or general permits in accordance with Water Code Section 26.040 (General Permits). The bill would authorize TCEQ to issue an individual Class I injection well permit or general permit authorizing the disposal of brine produced by the desalination of seawater.The bill would take effect immediately if it receives a vote of two-thirds of all members elected to each house. Otherwise, it would take effect September 1, 2015.Any costs incurred by the TCEQ and PUC in implementing the provisions of the bill are expected to be absorbed using existing resources. Local Government Impact No significant fiscal implication to units of local government is anticipated. Source Agencies:473 Public Utility Commission of Texas, 582 Commission on Environmental Quality LBB Staff: UP, SZ, TL LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 84TH LEGISLATIVE REGULAR SESSION May 15, 2015 TO: Honorable Charles Perry, Chair, Senate Committee on Agriculture, Water & Rural Affairs FROM: Ursula Parks, Director, Legislative Budget Board IN RE:HB4097 by Hunter (Relating to seawater desalination projects.), As Engrossed TO: Honorable Charles Perry, Chair, Senate Committee on Agriculture, Water & Rural Affairs FROM: Ursula Parks, Director, Legislative Budget Board IN RE: HB4097 by Hunter (Relating to seawater desalination projects.), As Engrossed Honorable Charles Perry, Chair, Senate Committee on Agriculture, Water & Rural Affairs Honorable Charles Perry, Chair, Senate Committee on Agriculture, Water & Rural Affairs Ursula Parks, Director, Legislative Budget Board Ursula Parks, Director, Legislative Budget Board HB4097 by Hunter (Relating to seawater desalination projects.), As Engrossed HB4097 by Hunter (Relating to seawater desalination projects.), As Engrossed No significant fiscal implication to the State is anticipated. No significant fiscal implication to the State is anticipated. The bill would require the Public Utilities Commission (PUC) to conduct studies with the Electric Reliability Council of Texas (ERCOT) related to seawater desalination projects. If PUC determines that statutory changes are needed to ensure that adequate infrastructure is developed for such projects, the PUC is required to include recommendations in a report required in Utilities Code, Section 31.003. PUC and the ERCOT independent system operator would also be required to study the potential opportunities and barriers for customer loads, including seawater desalination projects to participate in existing demand response opportunities in the ERCOT market. The bill would authorize the Texas Commission on Environmental Quality (TCEQ) to issue a permit to discharge waste from a desalination facility into the Gulf of Mexico evaluate compliance with developed environmental flow standards. The bill would also authorize TCEQ to evaluate compliance with water quality standards, requirements of the Texas Pollutant Discharge Elimination System (TPDES) program, and applicable federal law in issuing such a permit; indicate permits may be individual permits complying with Texas Water Code Subchapter M, Chapter 5 (Environmental Permitting Procedures) or general permits in accordance with Water Code Section 26.040 (General Permits). The bill would authorize TCEQ to issue an individual Class I injection well permit or general permit authorizing the disposal of brine produced by the desalination of seawater.The bill would take effect immediately if it receives a vote of two-thirds of all members elected to each house. Otherwise, it would take effect September 1, 2015.Any costs incurred by the TCEQ and PUC in implementing the provisions of the bill are expected to be absorbed using existing resources. Local Government Impact No significant fiscal implication to units of local government is anticipated. Source Agencies: 473 Public Utility Commission of Texas, 582 Commission on Environmental Quality 473 Public Utility Commission of Texas, 582 Commission on Environmental Quality LBB Staff: UP, SZ, TL UP, SZ, TL