LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 88TH LEGISLATIVE REGULAR SESSION April 17, 2023 TO: Honorable Tracy O. King, Chair, House Committee on Natural Resources FROM: Jerry McGinty, Director, Legislative Budget Board IN RE: HB4856 by Darby (Relating to the use of recycled fluid oil and gas waste.), As Introduced The fiscal implications of the bill cannot be determined because the amount of produced water that would be treated, the standard that the produced water would be treated to, and the increase in the number of permit applications for injection wells are unknown. The bill would make no appropriation but could provide the legal basis for an appropriation of funds to implement the provisions of the bill. The bill would amend the Water Code to provide the Texas Commission on Environmental Quality (TCEQ) exclusive authority to regulate and permit entities that inject produced water from recycled fluid oil and gas waste that has been treated to a standard determined by TCEQ into recharge injection wells.This analysis assumes that costs associated with implementing the provisions of the bill would need to be funded out of General Revenue-Dedicated Waste Management Account No. 549. Based on information provided by TCEQ, it is assumed that the agency would be unable to absorb additional work associated with implementing the provisions of the bill in existing resources and would require additional staff. However, the fiscal implications of the bill cannot be determined because the amount of produced water that would be treated, the standard that the water would be treated to, and the number of injection wells that may apply for permits under the bill are unknown at this time.TCEQ indicates that it does not have the authority under current federal regulations to regulate the activity as required in the bill. Local Government ImpactNo significant fiscal implication to units of local government is anticipated. Source Agencies: b > td > 304 Comptroller of Public Accounts, 582 Commission on Environmental Quality LBB Staff: b > td > JMc, KDw, MW, DKN
LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 88TH LEGISLATIVE REGULAR SESSION
April 17, 2023
TO: Honorable Tracy O. King, Chair, House Committee on Natural Resources FROM: Jerry McGinty, Director, Legislative Budget Board IN RE: HB4856 by Darby (Relating to the use of recycled fluid oil and gas waste.), As Introduced
TO: Honorable Tracy O. King, Chair, House Committee on Natural Resources
FROM: Jerry McGinty, Director, Legislative Budget Board
IN RE: HB4856 by Darby (Relating to the use of recycled fluid oil and gas waste.), As Introduced
Honorable Tracy O. King, Chair, House Committee on Natural Resources
Honorable Tracy O. King, Chair, House Committee on Natural Resources
Jerry McGinty, Director, Legislative Budget Board
Jerry McGinty, Director, Legislative Budget Board
HB4856 by Darby (Relating to the use of recycled fluid oil and gas waste.), As Introduced
HB4856 by Darby (Relating to the use of recycled fluid oil and gas waste.), As Introduced
The fiscal implications of the bill cannot be determined because the amount of produced water that would be treated, the standard that the produced water would be treated to, and the increase in the number of permit applications for injection wells are unknown. The bill would make no appropriation but could provide the legal basis for an appropriation of funds to implement the provisions of the bill.
The fiscal implications of the bill cannot be determined because the amount of produced water that would be treated, the standard that the produced water would be treated to, and the increase in the number of permit applications for injection wells are unknown. The bill would make no appropriation but could provide the legal basis for an appropriation of funds to implement the provisions of the bill.
The bill would make no appropriation but could provide the legal basis for an appropriation of funds to implement the provisions of the bill.
The bill would make no appropriation but could provide the legal basis for an appropriation of funds to implement the provisions of the bill.
The bill would amend the Water Code to provide the Texas Commission on Environmental Quality (TCEQ) exclusive authority to regulate and permit entities that inject produced water from recycled fluid oil and gas waste that has been treated to a standard determined by TCEQ into recharge injection wells.This analysis assumes that costs associated with implementing the provisions of the bill would need to be funded out of General Revenue-Dedicated Waste Management Account No. 549. Based on information provided by TCEQ, it is assumed that the agency would be unable to absorb additional work associated with implementing the provisions of the bill in existing resources and would require additional staff. However, the fiscal implications of the bill cannot be determined because the amount of produced water that would be treated, the standard that the water would be treated to, and the number of injection wells that may apply for permits under the bill are unknown at this time.TCEQ indicates that it does not have the authority under current federal regulations to regulate the activity as required in the bill.
TCEQ indicates that it does not have the authority under current federal regulations to regulate the activity as required in the bill.
Local Government Impact
No significant fiscal implication to units of local government is anticipated.
Source Agencies: b > td > 304 Comptroller of Public Accounts, 582 Commission on Environmental Quality
304 Comptroller of Public Accounts, 582 Commission on Environmental Quality
LBB Staff: b > td > JMc, KDw, MW, DKN
JMc, KDw, MW, DKN