LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 89TH LEGISLATIVE REGULAR SESSION April 14, 2025 TO: Honorable Charles Perry, Chair, Senate Committee on Water, Agriculture and Rural Affairs FROM: Jerry McGinty, Director, Legislative Budget Board IN RE: SB1976 by Hughes (Relating to certain testing requirements at certain wastewater treatment facilities.), As Introduced Estimated Two-year Net Impact to General Revenue Related Funds for SB1976, As Introduced: a negative impact of ($48,845,802) 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($25,088,101)2027($23,757,701)2028($23,757,701)2029($23,757,701)2030($23,757,701)All Funds, Five-Year Impact: Fiscal Year Probable Savings/(Cost) fromGeneral Revenue Fund1 Change in Number of State Employees from FY 20252026($25,088,101)20.02027($23,757,701)20.02028($23,757,701)20.02029($23,757,701)20.02030($23,757,701)20.0 Fiscal AnalysisThe bill would amend Water Code relating to urinary metabolite testing for certain wastewater treatment facilities. The bill would require Texas Commission on Environmental Quality (TCEQ) to conduct quarterly testing for specific urinary metabolites identified in the bill, for all intakes and outflows of specific wastewater treatment facilities specified in the bill. The bill outlines the testing required based on the population of a municipality. The testing requirements include testing each wastewater treatment facility located within ten miles of municipalities with a population of 250,000 or more, and at least ten wastewater treatment facilities located within ten miles of municipalities for each of the following municipality population ranges: (1) 100,000 - 250,000, (2) 25,000 - 100,000, and (3) less than 25,000. In selecting wastewater treatment facilities for testing, TCEQ would be required to prioritize facilities that reasonably represent typical wastewater systems of municipalities in specific population categories.The bill would require conducted tests to be performed by an accredited or certified environmental testing laboratory. The bill would require TCEQ to maintain and publish online records detailing all testing conducted.
LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 89TH LEGISLATIVE REGULAR SESSION
April 14, 2025
TO: Honorable Charles Perry, Chair, Senate Committee on Water, Agriculture and Rural Affairs FROM: Jerry McGinty, Director, Legislative Budget Board IN RE: SB1976 by Hughes (Relating to certain testing requirements at certain wastewater treatment facilities.), As Introduced
TO: Honorable Charles Perry, Chair, Senate Committee on Water, Agriculture and Rural Affairs
FROM: Jerry McGinty, Director, Legislative Budget Board
IN RE: SB1976 by Hughes (Relating to certain testing requirements at certain wastewater treatment facilities.), As Introduced
Honorable Charles Perry, Chair, Senate Committee on Water, Agriculture and Rural Affairs
Honorable Charles Perry, Chair, Senate Committee on Water, Agriculture and Rural Affairs
Jerry McGinty, Director, Legislative Budget Board
Jerry McGinty, Director, Legislative Budget Board
SB1976 by Hughes (Relating to certain testing requirements at certain wastewater treatment facilities.), As Introduced
SB1976 by Hughes (Relating to certain testing requirements at certain wastewater treatment facilities.), As Introduced
Estimated Two-year Net Impact to General Revenue Related Funds for SB1976, As Introduced: a negative impact of ($48,845,802) 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 SB1976, As Introduced: a negative impact of ($48,845,802) 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 ($25,088,101)
2027 ($23,757,701)
2028 ($23,757,701)
2029 ($23,757,701)
2030 ($23,757,701)
All Funds, Five-Year Impact:
2026 ($25,088,101) 20.0
2027 ($23,757,701) 20.0
2028 ($23,757,701) 20.0
2029 ($23,757,701) 20.0
2030 ($23,757,701) 20.0
Fiscal Analysis
The bill would amend Water Code relating to urinary metabolite testing for certain wastewater treatment facilities. The bill would require Texas Commission on Environmental Quality (TCEQ) to conduct quarterly testing for specific urinary metabolites identified in the bill, for all intakes and outflows of specific wastewater treatment facilities specified in the bill. The bill outlines the testing required based on the population of a municipality. The testing requirements include testing each wastewater treatment facility located within ten miles of municipalities with a population of 250,000 or more, and at least ten wastewater treatment facilities located within ten miles of municipalities for each of the following municipality population ranges: (1) 100,000 - 250,000, (2) 25,000 - 100,000, and (3) less than 25,000. In selecting wastewater treatment facilities for testing, TCEQ would be required to prioritize facilities that reasonably represent typical wastewater systems of municipalities in specific population categories.The bill would require conducted tests to be performed by an accredited or certified environmental testing laboratory. The bill would require TCEQ to maintain and publish online records detailing all testing conducted.
The bill outlines the testing required based on the population of a municipality. The testing requirements include testing each wastewater treatment facility located within ten miles of municipalities with a population of 250,000 or more, and at least ten wastewater treatment facilities located within ten miles of municipalities for each of the following municipality population ranges: (1) 100,000 - 250,000, (2) 25,000 - 100,000, and (3) less than 25,000. In selecting wastewater treatment facilities for testing, TCEQ would be required to prioritize facilities that reasonably represent typical wastewater systems of municipalities in specific population categories.The bill would require conducted tests to be performed by an accredited or certified environmental testing laboratory. The bill would require TCEQ to maintain and publish online records detailing all testing conducted.
The bill would require conducted tests to be performed by an accredited or certified environmental testing laboratory. The bill would require TCEQ to maintain and publish online records detailing all testing conducted.
Methodology
Based on information provided by TCEQ, this analysis assumes that TCEQ would need additional funding and staff to conduct quarterly sampling, conduct laboratory analyses, and to maintain and publish records of the testing. Staff would conduct sampling at various locations across the state and TCEQ would provide funding through contracts with accredited or certified environmental laboratories to complete required analyses. Additionally, TCEQ estimates updates to information technology (IT) tools would be necessary to track, maintain, and publish the records of testing conducted.Based on information provided in the Comptroller of Public Accounts (CPA) 2026-27 Biennial Revenue Estimate (BRE), this analysis assumes costs reflected in the table above would be funded from the General Revenue Fund instead of the General Revenue-Dedicated Water Resource Management Account No. 153 (Account No. 153) due to estimated revenues and existing fund balances in the fund. Although the BRE anticipates an Account No. 153 balance totaling $65,274,000 at the end of fiscal year 2025, the CPA's estimated remaining fund balances after considering appropriations for the fund included in the introduced version of Senate Bill 1 total $14,560,353.Based on information provided by TCEQ, the volume of sample collections and analyses conducted is based on the following estimates: (1) there are 1,305 facilities in municipalities of 250,000 or more that would require sampling; (2) there are a minimum of 30 facilities in municipalities of less than 250,000 that would require sampling; (3) of the estimated total of 1,335 facilities requiring testing, 70.0 percent contain one intake and one outfall; (4) the remaining 30.0 percent contain one intake and two or more outfalls; (5) the total intake and outfall testing for facilities equates to 3,071 sampling locations, and (6) quarterly sampling equates to 12,284 samples collected each year.Based on information provided by TCEQ, laboratory analysis costs are estimated at $1,800 per sample. This covers four of the metabolites specified in the bill with an approved Environmental Protection Agency (EPA) method, while the others currently have no approved EPA method. An estimated $1,800 per sample for 12,284 samples equates to a total laboratory analysis cost of $22,111,200 per fiscal year from 2026 to 2030. According to TCEQ, laboratory analysis costs could increase if additional analyses are necessary for quality assurance purposes.Based on information provided by TCEQ, $770,000 would be required for information technology costs in fiscal year 2026. Based on estimated billing from existing third-party contractors, TCEQ would contract to develop a new Internal Data Application (IDA) module to track and store data for samples collected at specific locations for analysis and publication, and a module to collect data from laboratories in the State of Texas Environmental Electronic Reporting System (STEERS).Based on information provided by TCEQ, an estimated 20.0 Full-Time Equivalent (FTE) positions and associated costs totaling $2,206,901 in fiscal year 2026 and $1,646,501 in fiscal year 2027 would be needed to implement the provisions of the bill. The 20.0 FTEs would all be Environmental Investigator II positions whose responsibilities would include preparing sampling kits, traveling between sampling locations, collecting and shipping samples, and evaluating and documenting results. Salary and wage costs for the 20.0 FTEs totals $1,165,760 per fiscal year from 2026 to 2030. Benefit costs total $331,309 per fiscal year from 2026 to 2030. Other administrative and staff costs total $709,832 in fiscal year 2026 and $149,432 per fiscal year from 2027 to 2030. This includes initial capital costs for licenses, furniture, equipment, and $390,400 to purchase eight vehicles in fiscal year 2026.
Based on information provided in the Comptroller of Public Accounts (CPA) 2026-27 Biennial Revenue Estimate (BRE), this analysis assumes costs reflected in the table above would be funded from the General Revenue Fund instead of the General Revenue-Dedicated Water Resource Management Account No. 153 (Account No. 153) due to estimated revenues and existing fund balances in the fund. Although the BRE anticipates an Account No. 153 balance totaling $65,274,000 at the end of fiscal year 2025, the CPA's estimated remaining fund balances after considering appropriations for the fund included in the introduced version of Senate Bill 1 total $14,560,353.
Based on information provided by TCEQ, the volume of sample collections and analyses conducted is based on the following estimates: (1) there are 1,305 facilities in municipalities of 250,000 or more that would require sampling; (2) there are a minimum of 30 facilities in municipalities of less than 250,000 that would require sampling; (3) of the estimated total of 1,335 facilities requiring testing, 70.0 percent contain one intake and one outfall; (4) the remaining 30.0 percent contain one intake and two or more outfalls; (5) the total intake and outfall testing for facilities equates to 3,071 sampling locations, and (6) quarterly sampling equates to 12,284 samples collected each year.
Based on information provided by TCEQ, laboratory analysis costs are estimated at $1,800 per sample. This covers four of the metabolites specified in the bill with an approved Environmental Protection Agency (EPA) method, while the others currently have no approved EPA method. An estimated $1,800 per sample for 12,284 samples equates to a total laboratory analysis cost of $22,111,200 per fiscal year from 2026 to 2030. According to TCEQ, laboratory analysis costs could increase if additional analyses are necessary for quality assurance purposes.
Based on information provided by TCEQ, $770,000 would be required for information technology costs in fiscal year 2026. Based on estimated billing from existing third-party contractors, TCEQ would contract to develop a new Internal Data Application (IDA) module to track and store data for samples collected at specific locations for analysis and publication, and a module to collect data from laboratories in the State of Texas Environmental Electronic Reporting System (STEERS).
Based on information provided by TCEQ, an estimated 20.0 Full-Time Equivalent (FTE) positions and associated costs totaling $2,206,901 in fiscal year 2026 and $1,646,501 in fiscal year 2027 would be needed to implement the provisions of the bill. The 20.0 FTEs would all be Environmental Investigator II positions whose responsibilities would include preparing sampling kits, traveling between sampling locations, collecting and shipping samples, and evaluating and documenting results.
Salary and wage costs for the 20.0 FTEs totals $1,165,760 per fiscal year from 2026 to 2030. Benefit costs total $331,309 per fiscal year from 2026 to 2030. Other administrative and staff costs total $709,832 in fiscal year 2026 and $149,432 per fiscal year from 2027 to 2030. This includes initial capital costs for licenses, furniture, equipment, and $390,400 to purchase eight vehicles in fiscal year 2026.
Technology
Based on information provided by TCEQ, $770,000 would be required in fiscal year 2026 for third-party programming contract costs to develop a new IDA module to track and store data for samples and a module to collect data from laboratories in STEERS.
Local Government Impact
No significant fiscal implication to units of local government is anticipated.
Source Agencies: b > td > 582 Commission on Environmental Quality
582 Commission on Environmental Quality
LBB Staff: b > td > JMc, FV, MW, AJL
JMc, FV, MW, AJL