LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 89TH LEGISLATIVE REGULAR SESSION March 25, 2025 TO: Honorable Brian Birdwell, Chair, Senate Committee on Natural Resources FROM: Jerry McGinty, Director, Legislative Budget Board IN RE: SB1758 by Birdwell (Relating to the operation of a cement kiln and the production of aggregates near a semiconductor wafer manufacturing facility.), As Introduced Estimated Two-year Net Impact to General Revenue Related Funds for SB1758, As Introduced: a negative impact of ($1,222,500) through the biennium ending August 31, 2027. The bill would make no appropriation but could provide the legal basis for an appropriation of funds to implement the provisions of the bill. General Revenue-Related Funds, Five- Year Impact: Fiscal Year Probable Net Positive/(Negative) Impact toGeneral Revenue Related Funds2026($1,222,500)2027$02028$02029$02030$0All Funds, Five-Year Impact: Fiscal Year Probable Savings/(Cost) fromGeneral Revenue Fund1 Change in Number of State Employees from FY 20252026($1,222,500)4.02027$00.02028$00.02029$00.02030$00.0 Fiscal AnalysisThe bill would require the Bureau of Economic Geology at The University of Texas at Austin to conduct a study that would analyze the vibrational impact of aggregate operations on semiconductor manufacturing in Grayson County. Not later than March 31, 2026, the Bureau of Economic Geology would be required to prepare and submit to the governor, the lieutenant governor, the speaker of the house of representatives, and each standing legislative committee with primary jurisdiction over the environment or natural resources a report on the results of the study and any recommendations for legislative or other action.The bill would prohibit the Texas Commission on Environmental Quality from issuing, renewing, or amending permits for cement production facilities within 10 miles of a semiconductor wafer manufacturing facility in Grayson County until September 1, 2031.
LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 89TH LEGISLATIVE REGULAR SESSION
March 25, 2025
TO: Honorable Brian Birdwell, Chair, Senate Committee on Natural Resources FROM: Jerry McGinty, Director, Legislative Budget Board IN RE: SB1758 by Birdwell (Relating to the operation of a cement kiln and the production of aggregates near a semiconductor wafer manufacturing facility.), As Introduced
TO: Honorable Brian Birdwell, Chair, Senate Committee on Natural Resources
FROM: Jerry McGinty, Director, Legislative Budget Board
IN RE: SB1758 by Birdwell (Relating to the operation of a cement kiln and the production of aggregates near a semiconductor wafer manufacturing facility.), As Introduced
Honorable Brian Birdwell, Chair, Senate Committee on Natural Resources
Honorable Brian Birdwell, Chair, Senate Committee on Natural Resources
Jerry McGinty, Director, Legislative Budget Board
Jerry McGinty, Director, Legislative Budget Board
SB1758 by Birdwell (Relating to the operation of a cement kiln and the production of aggregates near a semiconductor wafer manufacturing facility.), As Introduced
SB1758 by Birdwell (Relating to the operation of a cement kiln and the production of aggregates near a semiconductor wafer manufacturing facility.), As Introduced
Estimated Two-year Net Impact to General Revenue Related Funds for SB1758, As Introduced: a negative impact of ($1,222,500) through the biennium ending August 31, 2027. The bill would make no appropriation but could provide the legal basis for an appropriation of funds to implement the provisions of the bill.
Estimated Two-year Net Impact to General Revenue Related Funds for SB1758, As Introduced: a negative impact of ($1,222,500) through the biennium ending August 31, 2027. 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.
General Revenue-Related Funds, Five- Year Impact:
2026 ($1,222,500)
2027 $0
2028 $0
2029 $0
2030 $0
All Funds, Five-Year Impact:
2026 ($1,222,500) 4.0
2027 $0 0.0
2028 $0 0.0
2029 $0 0.0
2030 $0 0.0
Fiscal Analysis
The bill would require the Bureau of Economic Geology at The University of Texas at Austin to conduct a study that would analyze the vibrational impact of aggregate operations on semiconductor manufacturing in Grayson County. Not later than March 31, 2026, the Bureau of Economic Geology would be required to prepare and submit to the governor, the lieutenant governor, the speaker of the house of representatives, and each standing legislative committee with primary jurisdiction over the environment or natural resources a report on the results of the study and any recommendations for legislative or other action.The bill would prohibit the Texas Commission on Environmental Quality from issuing, renewing, or amending permits for cement production facilities within 10 miles of a semiconductor wafer manufacturing facility in Grayson County until September 1, 2031.
The bill would prohibit the Texas Commission on Environmental Quality from issuing, renewing, or amending permits for cement production facilities within 10 miles of a semiconductor wafer manufacturing facility in Grayson County until September 1, 2031.
Methodology
The Bureau of Economic Geology indicates that the study required by the bill would require the hiring of 4.0 FTEs and the purchase of equipment at a total cost of $1.2 million in fiscal year 2026. According to the Comptroller of Public Accounts, the limitation on issuing, renewing, or amending permits for portland cement kiln operations in Grayson County may have revenue implications, but that amount cannot be determined.
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, 720 The University of Texas System Administration
304 Comptroller of Public Accounts, 582 Commission on Environmental Quality, 720 The University of Texas System Administration
LBB Staff: b > td > JMc, TUf, LBO, GO
JMc, TUf, LBO, GO