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Senate Finance met on March 1 to discuss Article VI – Natural Resources of SB 1, the Senate’s base budget bill. The committee heard LBB and agency presentations from the GLO, RRC, Department of Agriculture, Texas Animal Commission, TWDB, Parks and Wildlife, Soil and Water Conservation Board, TCEQ, and the Low-Level Radioactive Waste Disposal Compact Commission. The committee heard received public testimony. A video of the hearing can be found here and LBB presentational materials can be found here.

This report is intended to give you an overview and highlight of the discussions on the various topics taken up. It is not a verbatim transcript of the discussions but is based upon what was audible or understandable to the observer and the desire to get details out as quickly as possible with few errors or omissions.

General Land Office and Veterans’ Land Board

LBB

  • Walks through LBB document
  • West – Who determines the repositories state money is kept in; what banks? Can you look into that for me?
    • Might me a question for the agency, may be a treasurer decision; yes

George Bush, GLO Commissioner

  • Agency has been working with other agencies to ensure
  • $3.4 billion, a majority of which is federally funded; thanks the legislature for the increased in $300,000 in data center services allows employees to work remotely
  • Will not ask to reinstate the 5% or to reinstate capitol authority
  • Have been working to ensure mitigation of COVID-19 inside 9 veterans state homes; have secured federal funding for the management of these homes
  • $1 billion in expended funds for Hurricane Harvey; have sent out $81 million for the winter storm
  • Alamo capital project aims to increase foot traffic; construction completion expected at summer of 2022
  • Nelson – How has coronavirus impacted the Alamo? Elaborate on the changes made to the plans?
    • Visitation stopped to a halt, why built space in the 51, 52 account to h
    • David Repp, CFO – $500,000 per month pre-pandemic, then $50,000-$75,000 during the pandemic; last month, was about $250,000
    • David Repp, CFO – Using the accounts to not ask for more funds
    • Cannon restoration projects, will restore dozen abandoned cannons from the Alamo
  • West – Who determines the repositories state money is kept in; what banks?
    • Located at the Treasury Safekeeping Trust; liquid fund from last session is for about $4 billion
    • On the Federal side, we have a different answer
    • David Repp, CFO – All funds are held in Treasury, which the Comptroller determines which bank
    • West – The same with federal funds?
    • David Rep, CFO – Yes
  • West – HUD numbers, $122 million for women, but need to ensure funding for minorities; what you promised me is not happening
    • A lot is being deployed to homeowners/contractors; would love to work with you to continue to increase those numbers
  • Perry – 2-year credit issues have been followed up on, housing count has been increased, flood packages from last year asked you to coordinate with the TWDB/regional plans
  • Perry – Had federal monies received from previous hurricanes that local jurisdictions were sitting on, have you resolved that issue?
    • Still outstanding obligations relating to Hurricane Ike; need use it or lose it provisions because the money could be helping elsewhere
    • Perry – Is about $85 million out there, but is significantly down
  • Perry – SBOE trust, allotment for school books been impacted? LAR does not reflect issues
    • Oil & Gas portfolio FY 2019 was about north of $1 billion which goes directly to the PSF
    • FY 2020 $890 million and now looking at $800 million
  • Lucio – Those that visit the Alamo, numbers reflect those going more than once a year?
    • Will have to follow up, have that data
    • Working on second time visitors, want more local San Antonio visitors
  • Lucio – Veterans homes, what is the population in terms of those who need nursing homes?
    • 1,100 are in those homes, and we have a waiting list; large among
  • Lucio – Would like your staff to look at the veterans clusters around the state and get a short plan that would address their needs; some travel hundreds of miles to visit families
  • Lucio – Rebuilding homes, Federal Funds, what are we doing to rebuild them since Hurricane Harvey, are they mostly veterans?
    • For individuals who did not have flood insurance or did not receive Federal funds
  • Lucio – Are they just rebuilt the same, or are they built better?
    • Builds to a $2,000 IRC standard; have taken a look after the storm, but Federal standards are high so we had few pipe bursts
  • Lucio – Is anyone
    • Yes, is a priority; working with TDEM and other agencies to let constituents know what assistance is out there
  • Lucio – Pending veterans who need housing/veteran home housing? HUD issue, small businesses are taking a big hit because of the pandemic, asks you/other agencies step up to the plate
    • Work with prime contractors to award subcontracts to HUD businesses
  • Taylor – Worked with you to improve communication with SBOE; had issues in Houston with housing?
    • 26 built in Houston, 123 approved; Houston $1.2 billion and GLO had $5 billion for other counties
    • Approached Houston for them to deploy funds, were then sued by Houston; reached a settlement they will administer with an excess of $800 million and we will deploy the HAP which deals exclusively Harvey rebuilds
  • Taylor – Is only for those who have not received Federal funds?
    • Is a duplicative benefit, are certain circumstances in which you can have insurance and receive funds
    • Taylor – Flood insurance requirement for a home that has been given to you, need to ensure people are not getting another house/federal fund
    • Is a three-year Hazard insurance requirement
  • Taylor – Costal Barrier, what is the status?
    • Project has broken ground; will be in Galveston in an area that contains petrochemical facilities and many residents; requirement the state has a 35% local match, $1.4 billion
    • Taylor – If Ike had made it up the ship channel would have caused billions in additional damage; was $30 billion was because it veered
    • Taylor – Is an expensive project, but will pay for itself; is also the nation’s busiest port that will be protected
  • Nichols – Last session, made a commitment to that $1.4 billion; Core has started, but what do we need to do this session or in SB 1?
    • Not in SB 1, need $200 million and need separate entity for condemnation authority preferably at the local level; need special purpose entity
    • Will $1.4 billion is not right away, is a 30-year process
  • Nichols – Taylor’s bill aims at a collective plan; core is asking for $300 million, but if we put in $200 million, they will be okay?
    • Yes, at minimum
  • Nichols – What about the 3.14% interest? Would take a statewide vote?
    • Have not looked at it internally, and yes it probably would
    • Nelson – The $200 million last session was in the supplemental
  • Bettencourt – Glad for the agreement with Houston; what is the available inventory left for the rebuild?
    • At 2650 and 1600 in the construction pipeline; inventory is about 6,000 homes
    • Out of the $4.3 billion in the HAP mitigation program, will get an additional number of homes; is a workforce shortage in welders and may need a similar order to the Governor’s on plumbers
  • Bettencourt – Provides an anecdote about the Galveston Storm in 1900; lessons learned then are that we need more physical protection
  • Campbell – Proactive measures to mitigate
    • First elderly care facilities to provide testing of the workers on campuses; currently testing residents and medical workers twice a week
    • Set up a triage wing, some had
    • Campbell – So if they had COVID, you would cluster them together?
    • Dedicated them to a wing, but first protocol was to get them to a hospital
  • Campbell – How many veterans have died from COVID-19?
    • 118, total population is 1,100 and 430 recoveries
  • Campbell – Visitation restored?
    • Were criticized for halting visitation, and opened it for the holidays, but caused a spike; now do not have any cases and about 90% have at least one vaccine shot
  • Campbell – Is two at a time now? Are quarantined when they come back?
    • Yes, and not sure
  • Campbell – The cenotaph? Has to be restored, but not moved? Does not want it moved
    • The city has budgeted north of $30 million to purse the master plan, does need to be restored; will reach out to them, but remember is it on city lands
  • Nelson – Where is the master plan?
    • Cenotaph is the only change; want to ensure the Church in Long Branch
  • Kolkhorst – Frustration with the mitigation funds, $4.3 billion in Federal allocations, is there hope there will be more flexibilities?
    • First $1.2 billion LMI is at 20%; expect second round $2.2 will have no LMI requirements
    • Have other solutions that are in place to help, but those announcements will be made shortly
  • Kolkhorst – 20% LMIs are based on Census Tracts, notes there is a treatment plant in Columbus that needs aid, need to examine which areas are considered “rich”
    • Will do

Railroad Commission

LBB

  • Walks through LBB document
  • Nichols – How much did we include in SB 1 for well plugging?
    • Can get back to you
  • West – Rider 13, how much is in the fund?
    • BRE projections state in FY 2023 the fund will be short $8.5 million; would trigger this rider

Christi Craddick, Chairman RRC

  • Capital authority for mainframe IT projects, have been allocated $25 million on time and on track; will be ongoing for five years
    • Asking for $21.5 million to continue systems upgrades
  • Implemented docket enforcement system and on track to release new pipeline track system
  • Challenges regulatory cleanup fund is on a decline of 30% since permitting is down 70%; anticipate this trend will continue, will make it through this biennium with dollars we have saved
  • Drilling permits are off by about a third and do not see that changing
  • Are based on volume, and increases in oil prices have not helped
  • BRE projects the OGRC will be depleted by a shortfall of $9.3 million at the end of FY 2023
  • Cash flow contingency rider is priority one; would allow to transfer up to $25 million per year if the ORG is insufficient
  • Second priority is unexpended balance authority for IT riders
  • Two exceptional items, did take the 5% cut; have exceptional items for trucks and one other item
  • Aggregate number of facilities in the regulatory system continue to grow
  • Perry – Deadline on IT conversion?
    • Anticipate 2024/2025
  • Perry – Have heard wells were being capped when oil prices hit a certain number; do you get another permit when they have to uncap them?
    • No
  • Perry – Sensing is that there will be new production, but will not have a ramp up of production, is that built in to your budgetary system? Will revenue for permitting eventually be stagnant?
    • Why asking for this rider; short term fix is the rider, but aim to find a larger solution
  • Perry – Aim for you to find a solution because permitting is going to be flat or decreasing even after COVID
  • West – 4155 Oil and Gas Cleanup fund; how many need to be cleaned out?
    • 6,000 on the books; plugged 1,400 in 2020 and are set up to plug that amount this year
  • West – Those who own those abandoned well, is there any way to get revenue to offset the decrease in revenue?
    • Yes, have a bonding program that is put up
  • West – Is the bond sufficient to cover the cost? The agency is asking to put up additional money for these wells, is the bond sufficient?
    • Yes, for the ones we have has been sufficient, would be glad to work with you on that
    • Issues are for the ones before the bond was put in place
  • West – Is the AG going after those who has left those wells in disarray
    • Is a process in place to get those with a bond; do turn over the information over to the AG, go back against them if we can find those operators
    • West – Can we get information on how successful that is?
    • Yes
  • West – Shareholder or board member with an abandoned well, can they get a permit?
    • Owners cannot, but more difficult to prevent for shareholders/board members
    • West – Would like more information on success rate
  • West – Bond size is determined upon what?
    • Number of wells; more wells, the bond is larger
  • Nichols – 5% reduction, used on equipment and cleanup;
    • Cleanup is site remediation, not well plugging; is the same pot of money
  • Nichols – How much is for well plugging? Reduced from previous budgets
    • Gave us the same amount is about $56 million and $57 million
  • Bettencourt – Legacy systems update issues?
    • On track, on time, and under budget
  • Bettencourt – Getting users out of the office has been helpful?
    • Were more efficient in inspections, has been a positive for the RRC
  • Bettencourt – Optimistic about oil prices; focus is on permitting, number of permitting for initial wells will be down substantially?
    • Correct; down a third since 2019
    • Bettencourt – Is difficult to get money on abandoned wells
  • Lucio – Anyone operating a well who abandoned a well and still has not cleaned up?
    • We have a decent system, but are looking to improve; do not believe so
    • If we have asked someone to clean a well, have to clean it up before another license is granted
  • Nelson – Cybersecurity updates, what safeguards prevent unauthorized dissemination of data? How will funding help?
    • Can get you specifics on that, is a priority for us
  • Nelson – One of our priorities is to reignite the economy, remind us of the important role that Texas energy plays in the state, national, a
    • Produces a third of the nation’s oil and a fourth of the nation’s natural gas, produce under 4 million barrels a day; last year put $13.9 billion in the state’s coffers
  • West – Did not realize we produced a fourth of the natural gas, is there any way in cases of emergency the state can ensure sufficient gas?
    • Do not have jurisdiction between pipelines between states; did prioritize residential areas, gas power plants, etc. and emergency order went in on February 12
    • Storage was being utilized to move natural gas into our system
  • West – Is there anything else you need us to do as it relates to natural gas?
    • Working on prioritizing electricity grid to keep natural gas infrastructure on
    • Gas utility companies did their job; had 67% of electricity coming from gas in that two week period where as it is usually around 40%
  • Taylor – Heard from last week’s hearings about natural gas freezing in the pipelines, but was it? If so, why did people have natural gas in their houses still?
    • Transmission big pipelines did not freeze; compressors are electric and did not have power
  • Hancock – RRC will work to ensure compressors are registered with ERCOT as critical infrastructure?
    • Yes, that is the goal within the next week or two

Department of Agriculture

LBB

  • Walks through LBB document
  • Nelson – Food banks received significant federal funding streams? Go through this?
    • Direct federal funding 20 226 million in federal funds, trade mitigation funds, $72 TFAP entitlements
    • FY 2021 does not have the funding for trade mitigation
  • Nelson – Will have more discussion on this later; restored the 5% reduction… surprised they reduced
  • Perry – Boo Weevil Eradication Funds, issue is that there are still those in the South Valley that can reignite the population
  • Perry – Is a multistate compact why we do this; they are the frontline because Mexico does not have an eradication program
  • Perry – Since there are turbines in that area, so now it is more intensive to eliminate them
  • Nichols – Surplus foodbank, amazed they would cut that in the budget and the meals on wheels program

Sid Miller, Agriculture Commissioner

Dan Hunter, Assistant Commissioner

  • Has been a tough year for agriculture, went through the Sunset process and had minor recommendations and only have a few to complete which will be done by the legislative session
  • Completed a satisfaction survey in 2020; 94% satisfaction
  • Hunter – Exceptional item requests, have a porous border and have no permanent inspection stations, have asked for this and is the fourth session we have asked for IT infrastructure upgrades
  • Hunter – Equipment needs were highlighted by COVID and were moving complete desktops to people’s homes; asking for the purchasing of additional equipment
  • Agency has to make cuts in GR, and those cuts were done so because those are the ones
  • Cut 35% of pesticide funds, asks that is reconsidered
  • Asked the Governor to send the $2 billion in Federal funds he was sitting on, that did not happen, but that money was rolled forward
  • Would like to have unexpended balance authority back
  • Funds in the Texas Agriculture Fund and need some authority to service those bonds
  • Rider 26 appropriation restriction on feral hog abatement
  • Nelson – The foodbank issue is distressing, food banks are receiving significant Federal funds, but was surprised foodbanks, nutrition programs, and rural health was cut
  • Nelson – Are not going to cut Meals on Wheels; did you look at alternatives?
    • We did
    • Rural hospitals pulled down a significant amount of federal funds; foodbanks pulled down $300 million
  • Nelson – Feral hogs are a real problem of Texas, is there a coordination between agencies?
    • They cause around $800 million in damage that is not just agricultural; work with Parks and Wildlife on bait research, only one that works is Warfarin
  • Perry – Warfarin issues have been resolved, and removal of that rider will allow for the widespread distribution of it
  • Perry – Can you give the committee an estimate of how many seasons for another explosion? Reserve is what?
    • Is not just a Texas thing, spent $24 million in 10 counties to handle them; reserve is like the Rainy Day Fund
    • Perry – Program is producer paid and the Feds and the state matches that; lose the Federal match
  • Perry – IT system, does this money get you off the legacies?
    • It will, but will take to 2023/2024; system is vulnerable to be compromised
  • Perry – Certain citrus diseases are currently coming from Florida which could be a threat to citrus crops here; what does it look like?
    • Have three stations from stuff coming in from Florida, but do not have any checks for things coming in from California
    • Check about 1% of the trucks coming in; weakest areas in this agency is biosecurity
  • Lucio – Removing funding from the Bool Weevil Program would be irresponsible; spending on this program would do a lot in long term savings
  • Lucio – Inspection stations need to be looked at, and need to address that issue
    • Just about a week ago Laredo became one of the largest ports in the United States
  • Lucio – NCSL members are dead set to work to address hunger issues; Meals on Wheels is an incredible program that needs to get stronger
  • Lucio – Need to re-look at Rider 26
  • Kolkhorst – Need to stay on top of the Boo Weevil Program; what were some of the impacts of the winter storm?
    • Sent a letter to the Governor to request agriculture processors be listed as essential, but never heard back from that
    • Ran out of feed, and did not get natural gas back until about a week ago
  • Kolkhorst – What about crop damage?
    • Getting that information together; have a $3 billion horticulture industry, and lost about 85% of that crop and they do not have insurance
  • West – Rural community and economic development strata?
    • Most is federal funds, community development funds for water/sewer, draw down federal funds for rural hospitals
  • West – Partnerships are with what? Economic distress area grants?
    • A city or county, and it is a match
    • Hunter – Are food desert areas; work with foodbanks, and worked with local food establishments;
    • West – How effective?
    • Hunter – Could be more effective, but Sunset wants us to continue this program
  • West – How much is set aside for this? Would like to see the grants for North/Central Texas
    • Can get that for you; would like to see economic development in the
    • Would like to get authority
  • West – What is CDAP, some funding outside the colonias?
    • Lucio explains it deals with infrastructure
    • Hunter – Yes, it is and will make sure to have someone to brief you about it
    • Hunter – Notes they like to look at funding and make sure they do not fund duplicative services
  • Lucio – Those funds are statewide, not for colonias only?
  • Kolkhorst – On CBDG monies, what if we gave it to them directly
    • Miller – it’s a federal program that we administer, communities apply and through application we rank them according to need; agrees other 191 counties that don’t get it direct
  • Miller – To conclude requesting UB and transfer authority be extended, cannot believe did not even get a hemp question
  • Perry – now that you brought up hemp, may want a rider to allocate differently so Department of Ag has funding for inspection
  • Perry – agrees on impact for request for UB and transfer authority

Texas Animal Health Commission, LBB

Dr. Andy Schwartz, Animal Health Commission Executive Director

  • Provides an overview of services they provided over the last year
  • Reviews exceptional item requests
  • $1.37 million budget reduction restored would restore FTEs which would help with compliance efforts
  • Next request is for office and central office lease increases
  • Request $1.4 million in additional capital budget authority for vehicle acquisition
  • Request animal health tracking system, TexCore
  • Executive director salary adjustment which is a challenge for recruitment and retention
  • Perry – asked about Sunset recommendations were concerned about lack of compliance, how will 5% impact?
    • If 5% were restored it feels like we could adequately address those compliance issues
  • Perry – asked about risk exposure if individuals are using their own vehicles in state business, but need to make sure we are covered
    • Will ask legal about this
  • Perry – Ask about data base request of funds – is it a band aid or fix?
    • This would be for license and service of maintenance
  • Perry – How long have you been working with the state? If we remove the cap what is the exempt level?
    • 30 years, ceiling around $190k
    • Perry – ask for strong consideration of making these adjustments to salary
  • Nelson – Inquired about federal funding on brucellosis, and cattle fever tick eradication program
    • How they actually started as an agency on fever tick program, appreciate support of agencies ongoing battle
  • Kolkhorst – Chronic-wasting disease, where are we?
    • Maintain the 3 primary aspects
    • Discussed latest and how they are addressing

Texas Water Development Board

 LBB

Peter Lake, Chair of the Texas Water Development Board

  • Process of building first ever state flood plan is underway
  • Reviewed exceptional items
  • Restore State Revolving Fund Match and Provide funding for vehicles
  • Mitigate information technology risks
  • Improve Critical data analysis capabilities for State Water Plan
  • Provide Funding for Economically Distressed Areas Program (EDAP)
  • Fund Increased Costs for Shared Technology Services (DCS
  • Provide Staff Support to Interregional Planning Council (IPC
  • CAPPS Implementation
  • Rider Modification, Rider 4, Authorized Transfers and Appropriations: Water Assistance
  • Fund
  • New Rider, Unexpended Balances: Strategic Mapping Account
  • Perry – Follows up on implementing SB 6,7,8; exceeding every deadline and they had a tall order
  • Perry – On IT is it a fix or patch?
    • It is a fix; given an abundance of caution
  • Nichols – DIR item, was it an increase from DIR?
    • Not in fees but in needed business services
  • Nichols – 5 FTEs on CAPP, will you need them once it is up and running? Would they come back off
    • Given scope and complexities of financials do not want to promise a short timeline
  • West – Sunset said you had been unable to meet benchmarks on diversity? Have heard this before and it sounds like agency is trying to kick it down the road, what will you do?
    • Will continue to increase outreach to HUB vendors, personally going out to attending fairs for meeting session
    • West – Feels like this was done last session, as Chair of TWDB wants a definitive plan with results
  • West – Asked more about flood infrastructure fund and how do you access?
    • Fund already allocated and over $200 million in next election cycle in the fall
    • Access if through the application process very similar to SWIFT
  • West – Who decides on which banks are used, certain funds where are they housed
    • A vast majority are the Comptroller

Texas Parks and Wildlife Department

LBB

  • Walks through LBB document
  • Nichols – Wanted to point out no funds requested on Battleship Texas; discusses the amount of damage that has been addressed due to good decision of legislature

Carter Smith, TPWD (Reggie Pegues, CFO)

  • Outdoors have medical benefits to all of us and a $50 billion year contributor to state economy
  • Walks through overall request
  • Perry – appreciates activate involvement of TPWD, how were fish impacted?
    • Appreciated game wardens and patrols who were able to do welfare checks during the cold weather and help out
    • Concern on freeze related environment was primarily on fish and turtles (there were other secondary concerns)
    • Largest recovery of green sea turtles that were ever recovered due to freeze
    • Concerned on certain fish mortalities, hope to have estimates very soon but it will take a couple of months to get sense of impact on trout and red fish
  • Nichols – We asked you last session what you wanted, and you said plane, now back for the helicopter?
    • Did not get any, right now need another helicopter
  • Nichols – Do you work with DPS
    • Yes, we do work together and very proud of the relationship
  • Current helicopter is based in Austin
  • Lucio – What was killed by freeze will be hard to replace, heard large company knew what they were doing when they went in there and not happy with those needless deaths of fish…supports exceptional item
  • West – In terms of scouting, relationship with the boy scouts and girl scouts; those organizations that are very important
    • Yes, work with them in the parks, shooting, fishing, etc.; if you think there are any groups we missed, please let us know
  • Kolkhorst – You spouted off statistics on increased utilization and patronage?
    • Parks have been open almost an entirety throughout the pandemic; were only closed for about nine days; in May and June when we opened all the way back up, calls in the call center doubled compared to the same period in 2019
    • Paid visitation for current fiscal year to now, is up 32-33%; have visitor capacity limits in all parks
    • Timing on the Sporting Goods Act was perfect timing, need to figure out how much we want to invest in new facilities, land acquisition, minor repairs, hire more rangers/police officers/administration, etc.
    • Boat titling up 52%, boating registration up 30%, hunting and fishing licenses are up as well
  • Kolkhorst – Have discussed the mental health issues of children, hoping to expand parks and make them accessible to urban centers
  • Kolkhorst – Did not buy the fixed wing?
    • Did not get authority to get that; have only asked for the helicopter this session in order to be thoughtful to budgetary situations
  • Nelson – Battleship decision and Sporting Goods Act from last session have been good decisions; looking at data sales at TxDOT, they are a buyer of their data, where does it show up in the budget?
    • Not aware of recent purchasing, we trade lists of subscribers between the two agency’s magazines; may have been some small compensations in the past
    • Nelson – Has been 6 transactions of $15,000 since 2018; trying to understand where this shows up in the budget
    • Will come up in our communications strategy for our magazine; it is solely based upon growing both parties’ subscriber bases
  • Nichols – Do you sell that magazine list?
    • Do not sell, but rent it out; is a circulation broker that wants names and addresses from our lists; Ducks Unlimited, Foodbanks, Yellowstone Forever, and related entities pay an entity $100 for 1,000 names
  • Nichols – If we prohibited that, it would not impact you?
    • Would be a revenue impact to our magazine
    • Nichols – Have a bill that is working on this issue, and want to capture that
    • Will follow your direction with that; whatever revenue issues we have, will deal with
  • Lucio – Could you speak on Fishing Future?
    • They seek out kids from disadvantaged backgrounds and introduces them to conservation,
  • Whitmire – Would be an impact?
    • Was around $20,000 was revenue for one year
    • Whitmire – No amount would justify putting names on the streets to vendors; who do you share it with?
    • Is carefully curated Susan G. Coleman Foundation, MD Anderson, Ducks Unlimited; decision goes up to communications level
    • Whitmire – These are not all the same kind of entity, is uncomfortable these decisions are not going to the top; has issues because these entities go and sell these lists
    • Nichols – Staff reached out, but did not hear back
    • Was told we provided that, will get it taken care of
  • Kolkhorst – Asks about a die out on future fish populations? This is for recreational?
    • Cannot say, fish are very hungry and susceptible to being caught; need to look at thermal fish enclosures
    • Yes only have limitations on recreational, put no stipulations put on commercial fishing
    • Kolkhorst – Concerned about this, is critical to protect this resource for the future
    • Will need a couple months to determine what the benchmarks are, then the department could curtail certain behaviors
  • Lucio – Conservation, would suggest we do not do through legislation, but you do through rule; like limiting Red Fish size in fishing tournaments
  • Huffman – Asks to report on the state of the bluebonnets after the freeze
  • Lucio – Hopes we could get to the point where we can

Texas Soil and Water Conservation Board

Rex Isom, Executive Director Soil and Water Conservation Board

  • Base budget request includes the 5% cost savings request
  • Base request is $72 million; $41.5 million in GR and $30.5 million in anticipated Federal Funds
  • Exceptional item totals $2 million in GR and serves to restore staff positions, replace technology, and restore travel expenses
  • Rider provision included to Carrizo cane
  • $150 million out of the ESF will be fully obligated this Spring, good start to the $2 billion backlog to replace aging dams across the state
  • Perry – Gave $150 million out of the ESF because over 500 dams were high hazard; initiative is high importance
    • $39 million is obligated, by June 1 will have the $150 million obligated
    • 6 Federal rehab dams underway, 16 state upgrades underway, working on 50 repairs; 533 dams still need rehab
  • Nichols – Who owns these dams?
    • They are on private land and the sponsors of the dams, are usually local soil and water conservation districts, are owners through easements
  • Whitmire – What makes dams turn high risk? Do the residents know?
    • Our dams are 280-acre feet or less; when people move in below turns them in high risk
  • Creighton – Updates on Carrizo Cane Eradication Program?
    • Have treated 317 miles of a 1,200 mile boarder and spent around $3 million to reduce the stand of Cariso Cain
  • Bettencourt – Are any of these CCC dams?
    • Does not believe so
    • Steve Bettenart – They do not go that far back, first one was built in 1948

Texas Commission on Environmental Quality

LBB

  • Walks through LBB document
  • Nelson – Removing 31 FTEs, but there were several that will be held by TERP?
    • Correct, not losing any
  • Nichols – Has issues with TERP, 4 of its revenue streams go directly to the account, and one goes to the Texas Mobility Fund in order for TxDOT to build some roads
  • Nichols – Are using constitutionally dedicated monies for environmental purposes, and new revenue stream will go outside the treasury and bypass the appropriations process
    • Correct
  • Nichols – Need to fix it this session and stop the reimbursement by the highway fund to the TERP account and not take revenue streams outside the Treasury and the body should appropriate it; filed SB 868 for these purposes
  • West – $2 billion in that fund just sitting there?
    • For certification purposes, and you have appropriated $1.4 billion
    • Used for emissions reduction
  • West – Modifications to rider 27, have we granted any other agency litigation funds like this? Asks to submit a report not an approval request?
    • Not sure, and yes
    • Nelson – Agency is asking for this, but is not included in SB 1

Emily Lindley, TCEQ Commissioner

  • GRD 75%, 6% from GR; requesting monies for core functions number one is to increase the base salary for certain positions
  • Agency is looking to see what can be done for potential solutions to keep water
  • In light of recent weather events, asking for 5 additional FTEs at a cost of $1 million for the Texas Optimization Program to respond
  • Agency does not sell personal data

Toby Baker, TCEQ Executive Director

  • Targeted salary increases for field investigators, just added more technical experts
  • Exceptional items are to fill emergency support gaps
  • Exceptional items include to move to a Java platform for IT system
  • Exceptional items for gas emissions cameras, replacement vehicles, relocation of a regional office, and installation of CAPS funding
  • Nelson – During the storm exercise discretion for low emission diesel, are they still in place?
    • Yes, because those facilities are still responding to the storm; petrochemical side 16 facilities are operational, 66 are partially shutdown, 2 are shutdown indefinitely and around 40 are in start-up
  • Nelson – Same with boil water notices?
    • Over 300,000 Texans are still on a boil water notice; 3,000 Texans’ water systems are not operational
  • Perry – Noted those in San Angelo had a gas leak before the storm; have been in a battle with New Mexico over water forever, but has taken a turn? When will we see an end?
    • Hearing in front of the Supreme Court is supposed to be this year
  • Perry – Conversations from last week, we have a lot of private labs, need more labs; what is your opinion?
    • Figured out we do have lab space, and private labs stepped up and stayed up all weekend
    • Perry – So we are good during a weather event, but in other cases we may not have the facilities; may need something like mobile units
  • Perry – Have a water treaty with Mexico that squares up every five years, and are usually behind; TCEQ helped put some provisions to where they will not be too far behind
  • Lucio – Treaty is of great concern; are you monitoring the dumping on both sides of the river?
    • Have a point source pollution study that I can get to you
  • West – Discusses “Shingle Mountain” and there is a lot of emission in that area; would expect TCEQ to put monitors out there, they would have a permit?
    • Is a grey area; classified as recycling, and can be an authorization rather than a permit
  • West – TCEQ is in charge of shutting down the operation, did that happen?
    • Not sure
    • West – If someone is doing illegal dumping, are there any criminal statutes that person would encounter? Shouldn’t they be criminally charged?
    • Cannot think of any; would be outside the bounds of TCEQ’s traditional authority, but if we had more “teeth” would be helpful
    • West – Would like to work with you to figure out what “teeth” you need
    • Would love to work with you on that
  • Taylor – Boil water notices, was not just the lab time, but it takes a while for the plant to come back online; important this is communicated to the community
  • Taylor – New Mexico litigation, taking out the LBB preview, can you explain?
    • Rio Grande Compact Commission on its own is separate and apart from the agency; this biennium New Mexico spent a lot of money, so the costs of the cast went up exponentially
    • The compact looks at our bill pattern to fill that hole; gave several millions of the agency’s cushion to make up for those gaps
    • Asking to just keep the legislature informed
  • Taylor – Is concerning to turn over litigation without our eyes on it; who is on the Commission?
    • Texas, New Mexico and Colorado
  • Taylor – Trial is going to start before the mediation?
    • Lindley – Mediation is from last September, and they do not see mediation working; hoping will be in the Supreme Court in August
  • Taylor – What is the total budget in New Mexico? Why are we spending $500 million on this?
    • Not sure, but they have spent millions in this past year; not sure how they are able to afford it
    • Taylor notes that they should be weary how much they are spending
  • Bettencourt – What was the organic compound in San Angelo? Have 300,000 on a boil notice now, what was the peak during the storm?
    • Most concerning was Benzene
    • 360,000 without water and 16 million households on a boil water notice
  • Whitmire – Reliability of water, budget request asks for four more enforcement officers; what could you do to backup the system?
    • Exceptional item request asks for 5 FTEs for technical experts to help any public water system with issues; have experts that travel on sight to help
    • Whitmire – What about backup generators?
    • Are required across the state, but they are for hurricanes; some have backup with another energy provider, which can be an issue
    • Were meeting requirements in statute, but those requirements failed; are starting a process to figure out what regulations are missing/statutory requirements needed
  • Whitmire – Hopes your commission will be aggressive in adopting water supply solutions
  • Kolkhorst – With the New Mexico litigation, have they adapted to the water flows that we have determined should be delivered to the state?
    • No, they have not
  • Hancock – Noted chlorine supply/delivery was also an issue
    • Supply chain issues were real, and is important for waste water systems; usually TDEM gets trucks to us, but could not because of the freeze

Low-Level Radioactive Waste Disposal Compact Commission

LBB

Stephen Raines, Executive Director

  • Operate as a compact between Texas and Vermont, are not an agency; exempt from interstate commerce clause exemption
  • Exceptional item is the restoration of the 5% cuts
  • Nelson – District has concerns about waste traveling through Andrews County, update?
    • Issue is regarding the fuel rods stored at the Andrews County site travelling by rail; is probably the safest way
    • There could be increased amounts, but it depends on imports
  • Nelson – Disposal fee in comparison to other states?
    • Fees charged are set by TCEQ, but gross receipts taxes are higher than other states
  • Perry – Was explained it was low level medical waste, but now has nuclear waste? Has it always been that way?
    • Has always been able to contain low level, B and C level waste; fuel rods are greater than C class, but TCEQ would have to approve that
    • Discussion regarding the fuel rods storage is temporary, hoping to have a more permanent site
    • Perry – Temporary could be a long time, it was not built for those rods?
    • Was not built for that, correct; would need to discuss this further with TCEQ
    • Perry noted things have been miscategorized as “low level” waste; the facility in Andrews County should be protected
  • Huffman – Knows constituents are concerned with the storage; where are fuel rods being stored?
    • Currently stored on site, there was a request to have them stored in Andrews County; request has been withdrawn, but is not completely finished
  • Hancock – Nuclear was by far the easiest to winterize and most reliable during the storm
  • Nelson – The rail cars that are transporting this stuff? From where?
    • It is nuclear waste that is shipped in a container, can come from hospitals, powerplants, or 15 other sources; personally has to sign off on what is in those containers then the commission will grant a permit
  • Nelson – Could be coming from other states? How many rail cars? Is a major concern for constituents
    • Will come in one at a time, grant 30 or 40 permits a year; is usually one permit per rail car
  • Perry – Is better having it in one place rather than every basement around the country, but the Andrews County facility was made for low level waste; need to continue to pursue nuclear

Public Testimony

Cyrus Reed, Lone Star Chapter of the Sierra Club

  • Recommend for TWDB calling for debt services for EDEP
  • Not asking for more TERP monies; should be a reporting requirement
  • TCEQ air quality monitoring is also important in West Texas
  • Water availability modeling needed in the North
  • RRC needs continued monies for IT and inspectors
  • Gave $72 million a year for well clean ups and down to $57 million; need to increase permit fees cannot rely on revenue
  • TPWD park acquisition and development funding needs to be given

Jason Modglin, Texas Alliance Energy Producers

  • Strongly in support of RRC’s recommendations in SB 1

Hilda Porter, Society of Saint Vincent De Paul

  • Supports the Agricultural Department’s rider 10 to fund the Surplus Agricultural grant program
  • Schwertner – Thanks for their testimony

Micky Edwards, Texas Farm Bureau

  • Only two tools to control feral hogs, hunting and trapping; are a safety hazard and are costly
  • There were concerns that it would hurt other species and humanitarian issues
  • Other species are not sensitive to Warfarin and is ultimately not harmful for humans
  • Need to have Warfarin as a tool back
  • Lucio – Did you hear Texas Agriculture’s Testimony? Invite you to do so
  • Lucio – Has been approved under federal scrutiny
    • Did not, and yes EPA has certified it as safe
  • Kolkhorst – On both sides of this; some ranchers are concerned the Warfarin will kill the hogs in mass quantity, so how do you move the bodies?
    • Not sure, do know if one gets run over, it is thousands in costs
    • Kolkhorst – Hopes Texas A&M is listening and that sterilization efforts could be effective
  • Nelson – This issue is not getting as much attention as it deserves, not just a rural issue; position is controversial

Greg Pittman, Meals on Wheels of Texoma

  • Program has provided 17.8 million meals to the elderly; appreciates the Chair and Vice-Chair’s support of this program
  • The proposed cut of 14% will be a complete walk back from last session and will take us back to pre-2011 levels; urges the committee to restore the 14% cut
  • Nelson – Nichols also said this is not just meals being served, it is checking on people

Jim Hough, County Judge Live Oak

  • Radiological waste on certain sites; uranium mines on the properties need site remediation
  • Issue is money, appropriated $20 million this funding cycle, and additional work is needed to allow the property will be able to be used by the landowners
  • Asking for additional funds; as of now only $3 million, need more money in FY 2022-2023

Dan LaFever, GTI

  • Last session invested $4 million in a San Antonio STEP project using Carbon Dioxide rather than fossil fuels
  • Still needs $12 million to finish the project; partner with the University of Houston
  • Schwertner – Why get state/federal funding for this project?
    • Department of Energy has made investments in other projects
    • This would be a testing facility, not looking for angel investors; facility will help those who will deploy the energy
  • Schwertner – How much is your budget?
    • $32 million from industry, $100 million from the DOE, $4 million from the state, and need another $12 million

Kenneth Hodges, Texas Corn Producers

  • Please remove restriction against Warfarin; up until the hogs die, they are spreading diseases and waste
  • Asks for removal of the rider