LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 89TH LEGISLATIVE REGULAR SESSION March 18, 2025 TO: Honorable Cody Harris, Chair, House Committee on Natural Resources FROM: Jerry McGinty, Director, Legislative Budget Board IN RE: HB1400 by Harris (Relating to creation of the groundwater science, research, and innovation fund to be administered by the Texas Water Development Board.), As Introduced The fiscal implication of the bill cannot be determined because the amounts and timing of any appropriations; transfers; depository interest; gifts, grants, and donations; or other revenue sources to the Groundwater Science, Research, and Innovation Fund are unknown at this time. 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 create the Groundwater Science, Research, and Innovation Fund (the fund) as a special fund inside the state treasury, to be administered by the Texas Water Development Board (TWDB). The fund would consist of appropriations from the Legislature, transfers, depository interest and other investment returns, gifts, grants, donations, and any other fees or sources of revenue dedicated by the Legislature to the fund.The fund may only be used to provide grants to groundwater conservation districts (districts) to finance programs and projects that further groundwater science, research, and innovation in the state, including local research, data, modeling, and innovations designed to achieve the following purposes: improve understanding of local groundwater conditions; develop or improve groundwater models relied on for planning and decision-making; improve groundwater use efficiency and increase water conservation efforts; increase groundwater recharge; or protect groundwater quality. TWDB by rule may require a district using grant money from the fund to provide 25.0 percent matching funds, which may include direct expenditures or in-kind services, to the amount of the grant. TWDB would be required to adopt rules governing application for, distribution of, and administration of, financial assistance from the fund. When evaluating an application for a program or project, TWDB would be required to consider the following: the expected benefit in informing the management, planning, or decision making of the district; whether it meets any science, data, and modeling objectives of TWDB; the extent to which the outcome may benefit the state and regional water planning processes; and the district's need for financial assistance based on the district's available revenue or other available sources of financial assistance. TWDB by resolution may approve an application once relevant factors are considered, TWDB finds that the public interest is served by state assistance, and any matching requirements are met by a district. TWDB would be required to ensure that districts receiving financial assistance provide information on data, science, and other research findings gathered to TWDB. TWDB would be required to ensure that at least 35.0 percent of the money transferred from the fund addresses programs or projects by districts with populations of 100,000 or less and annual revenues of $250,000 or less, as determined at the close of the previous fiscal year. Based on information provided by the Comptroller of Public Accounts, the fiscal impact cannot be determined because the amounts and timing of any appropriations; transfers; depository interest; gifts, grants, and donations; or other revenue sources to the fund are unknown at this time. Based on information provided by TWDB, it is assumed that TWDB would establish a new program specific to financial assistance administered from the fund and that additional staff and resources would be needed if money was deposited to, and appropriated from, the fund. Based on information provided by the Texas Commission on Environmental Quality (TCEQ), the number of authorization requests processed by the agency related to underground injection control, aquifer recharge, and aquifer storage and recovery could increase if money was deposited to, and appropriated from, the fund. TCEQ has indicated that additional staff and resources would be needed to maintain processing times if the number of authorization requests increases. This legislation would do one or more of the following: create or recreate a dedicated account in the General Revenue Fund, create or recreate a special or trust fund either with or outside of the Treasury, or create a dedicated revenue source. The fund, account, or revenue dedication included in this bill would be subject to funds consolidation review by the current Legislature. Local Government ImpactThe fiscal impact to units of local government cannot be determined because the amount of matching funds that would be required by districts receiving grant funding awarded by TWDB from the fund, or the amount of in-kind services related to the program or project, equivalent to 25.0 percent of the grant amount is unknown. Source Agencies: b > td > 304 Comptroller of Public Accounts, 580 Water Development Board, 582 Commission on Environmental Quality LBB Staff: b > td > JMc, TUf, MW, AJL
LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 89TH LEGISLATIVE REGULAR SESSION
March 18, 2025
TO: Honorable Cody Harris, Chair, House Committee on Natural Resources FROM: Jerry McGinty, Director, Legislative Budget Board IN RE: HB1400 by Harris (Relating to creation of the groundwater science, research, and innovation fund to be administered by the Texas Water Development Board.), As Introduced
TO: Honorable Cody Harris, Chair, House Committee on Natural Resources
FROM: Jerry McGinty, Director, Legislative Budget Board
IN RE: HB1400 by Harris (Relating to creation of the groundwater science, research, and innovation fund to be administered by the Texas Water Development Board.), As Introduced
Honorable Cody Harris, Chair, House Committee on Natural Resources
Honorable Cody Harris, Chair, House Committee on Natural Resources
Jerry McGinty, Director, Legislative Budget Board
Jerry McGinty, Director, Legislative Budget Board
HB1400 by Harris (Relating to creation of the groundwater science, research, and innovation fund to be administered by the Texas Water Development Board.), As Introduced
HB1400 by Harris (Relating to creation of the groundwater science, research, and innovation fund to be administered by the Texas Water Development Board.), As Introduced
The fiscal implication of the bill cannot be determined because the amounts and timing of any appropriations; transfers; depository interest; gifts, grants, and donations; or other revenue sources to the Groundwater Science, Research, and Innovation Fund are unknown at this time. 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 implication of the bill cannot be determined because the amounts and timing of any appropriations; transfers; depository interest; gifts, grants, and donations; or other revenue sources to the Groundwater Science, Research, and Innovation Fund are unknown at this time. 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 create the Groundwater Science, Research, and Innovation Fund (the fund) as a special fund inside the state treasury, to be administered by the Texas Water Development Board (TWDB). The fund would consist of appropriations from the Legislature, transfers, depository interest and other investment returns, gifts, grants, donations, and any other fees or sources of revenue dedicated by the Legislature to the fund.The fund may only be used to provide grants to groundwater conservation districts (districts) to finance programs and projects that further groundwater science, research, and innovation in the state, including local research, data, modeling, and innovations designed to achieve the following purposes: improve understanding of local groundwater conditions; develop or improve groundwater models relied on for planning and decision-making; improve groundwater use efficiency and increase water conservation efforts; increase groundwater recharge; or protect groundwater quality. TWDB by rule may require a district using grant money from the fund to provide 25.0 percent matching funds, which may include direct expenditures or in-kind services, to the amount of the grant. TWDB would be required to adopt rules governing application for, distribution of, and administration of, financial assistance from the fund. When evaluating an application for a program or project, TWDB would be required to consider the following: the expected benefit in informing the management, planning, or decision making of the district; whether it meets any science, data, and modeling objectives of TWDB; the extent to which the outcome may benefit the state and regional water planning processes; and the district's need for financial assistance based on the district's available revenue or other available sources of financial assistance. TWDB by resolution may approve an application once relevant factors are considered, TWDB finds that the public interest is served by state assistance, and any matching requirements are met by a district. TWDB would be required to ensure that districts receiving financial assistance provide information on data, science, and other research findings gathered to TWDB. TWDB would be required to ensure that at least 35.0 percent of the money transferred from the fund addresses programs or projects by districts with populations of 100,000 or less and annual revenues of $250,000 or less, as determined at the close of the previous fiscal year. Based on information provided by the Comptroller of Public Accounts, the fiscal impact cannot be determined because the amounts and timing of any appropriations; transfers; depository interest; gifts, grants, and donations; or other revenue sources to the fund are unknown at this time. Based on information provided by TWDB, it is assumed that TWDB would establish a new program specific to financial assistance administered from the fund and that additional staff and resources would be needed if money was deposited to, and appropriated from, the fund. Based on information provided by the Texas Commission on Environmental Quality (TCEQ), the number of authorization requests processed by the agency related to underground injection control, aquifer recharge, and aquifer storage and recovery could increase if money was deposited to, and appropriated from, the fund. TCEQ has indicated that additional staff and resources would be needed to maintain processing times if the number of authorization requests increases. This legislation would do one or more of the following: create or recreate a dedicated account in the General Revenue Fund, create or recreate a special or trust fund either with or outside of the Treasury, or create a dedicated revenue source. The fund, account, or revenue dedication included in this bill would be subject to funds consolidation review by the current Legislature.
Based on information provided by the Comptroller of Public Accounts, the fiscal impact cannot be determined because the amounts and timing of any appropriations; transfers; depository interest; gifts, grants, and donations; or other revenue sources to the fund are unknown at this time.
Based on information provided by TWDB, it is assumed that TWDB would establish a new program specific to financial assistance administered from the fund and that additional staff and resources would be needed if money was deposited to, and appropriated from, the fund.
Based on information provided by the Texas Commission on Environmental Quality (TCEQ), the number of authorization requests processed by the agency related to underground injection control, aquifer recharge, and aquifer storage and recovery could increase if money was deposited to, and appropriated from, the fund. TCEQ has indicated that additional staff and resources would be needed to maintain processing times if the number of authorization requests increases.
This legislation would do one or more of the following: create or recreate a dedicated account in the General Revenue Fund, create or recreate a special or trust fund either with or outside of the Treasury, or create a dedicated revenue source. The fund, account, or revenue dedication included in this bill would be subject to funds consolidation review by the current Legislature.
Local Government Impact
The fiscal impact to units of local government cannot be determined because the amount of matching funds that would be required by districts receiving grant funding awarded by TWDB from the fund, or the amount of in-kind services related to the program or project, equivalent to 25.0 percent of the grant amount is unknown.
Source Agencies: b > td > 304 Comptroller of Public Accounts, 580 Water Development Board, 582 Commission on Environmental Quality
304 Comptroller of Public Accounts, 580 Water Development Board, 582 Commission on Environmental Quality
LBB Staff: b > td > JMc, TUf, MW, AJL
JMc, TUf, MW, AJL