According to the Legislative Budget Board (LBB), SB 18 is not expected to have any significant fiscal implications for the State of Texas. The bill exempts certain small dams and reservoirs maintained by qualified local sponsors from the requirement to obtain a water permit from the Texas Commission on Environmental Quality (TCEQ). While this change may marginally reduce TCEQ’s permitting workload, the fiscal note assumes that any administrative costs or associated revenue impacts will be negligible and can be absorbed within existing agency resources.

Similarly, the bill is not anticipated to create any significant fiscal impact on units of local government. The exemption may marginally reduce the administrative burden or costs for local conservation districts or authorities engaging in eligible dam or reservoir projects, but these effects are considered minor and not fiscally significant. The bill’s narrowly tailored scope and limited eligibility criteria help ensure its fiscal neutrality at both the state and local levels.

SB 18 creates a targeted permit exemption within the Texas Water Code for “qualified local sponsors”—local districts or authorities partnered with the USDA’s Natural Resources Conservation Service (NRCS), to construct, maintain, or rehabilitate small dams and reservoirs (up to 200 acre-feet) for erosion, floodwater, and sediment control, without first obtaining a permit from the Texas Commission on Environmental Quality (TCEQ). The bill also authorizes these sponsors to divert water from such structures when needed for repair and maintenance, and it preserves the exemption even if the federal agreement ends, provided the property remains under the sponsor’s control and continues serving the same public safety purposes.

The measure does not grow the size or scope of government, increase the burden on taxpayers, or raise the regulatory burden on individuals or businesses. On the contrary, it reduces state regulatory reach in a defined and low-risk area by streamlining permitting for entities already operating under federal program oversight. The Legislative Budget Board’s fiscal note confirms that no significant costs to state or local governments are expected, eliminating concerns about added taxpayer expense.

By removing an administrative step that can delay essential infrastructure work, the bill supports efficient local control and timely maintenance of flood-prevention infrastructure, especially in historically rural areas. It promotes resilience, protects property, and ensures the continued operational integrity of natural watershed infrastructure. Given its limited scope, lack of fiscal impact, and clear reduction in regulatory overhead, SB 18 aligns with the principles of limited government, regulatory efficiency, and subsidiarity. For these reasons, Texas Policy Research recommends that lawmakers vote YES on SB 18.

• Senate Committee on Finance: 14Y/0N (1 Absent)
• House Select Committee on Disaster Preparedness & Flooding: 9Y/0N