According to the Legislative Budget Board (LBB), HB 1618 is not expected to have a significant fiscal impact on the state government. The bill primarily grants the Texas Commission on Environmental Quality (TCEQ) the authority to permit aquifer storage and recovery (ASR) projects that transect the Edwards Aquifer in Williamson County. Any costs associated with implementing the bill, such as drafting new regulations or overseeing ASR projects, are anticipated to be absorbed within existing agency resources, meaning no additional funding or staffing allocations are required.

For local governments, no significant fiscal impact is anticipated. This suggests that municipalities, counties, and local water management districts will not face major cost burdens due to the implementation of the bill. However, indirect costs or benefits may emerge depending on the scale of ASR projects developed under this new regulatory framework. If ASR projects enhance water availability, they could lead to long-term cost savings for local water utilities and consumers. Conversely, some local administrative costs may increase if additional environmental oversight is required.

Overall, HB 1618 is fiscally neutral and does not impose significant financial obligations on the state or local governments. However, the long-term economic and infrastructure benefits of improved water storage capacity could be substantial, especially for areas experiencing water scarcity challenges.

HB 1618 proposes an amendment to the Texas Water Code to authorize aquifer storage and recovery (ASR) projects that transect the Edwards Aquifer in Williamson County. The bill aims to improve groundwater management and water conservation by allowing controlled injection of water into a geologic formation beneath the aquifer. Supporters argue that ASR projects provide a critical tool for managing Texas' water resources, particularly in areas prone to drought. Opponents, however, may raise concerns about potential impacts on private property rights, regulatory oversight, and environmental risks.

From a neutral perspective, the bill presents both potential benefits and risks. Proponents highlight that ASR technology could enhance water availability, benefit agricultural and municipal users, and improve drought resilience without the need for large surface reservoirs. Critics may worry about unintended consequences, such as changes to groundwater flow, risks of contamination, or increased government oversight that could affect private well owners. Additionally, while the Texas Commission on Environmental Quality (TCEQ) is directed to establish rules by 2026, the bill does not specify detailed safeguards or notification requirements for affected landowners.

Given these balanced considerations, Texas Policy Research remains NEUTRAL on HB 1618.

• Individual Liberty: The bill does not explicitly infringe upon individuals' freedoms, but by authorizing injection wells in the Edwards Aquifer—a vital water source—there could be unintended consequences on access to clean water. If these wells impact water quality or availability and individuals lack avenues to object or seek remedy, it may indirectly compromise their autonomy and health protections. However, no direct impositions are placed on personal choices or behaviors.
• Personal Responsibility: The bill encourages forward-looking water management, allowing communities or private actors to take responsibility for securing future water needs. It reflects a proactive approach to infrastructure development and drought preparedness. Still, it lacks strong mandates for accountability, such as monitoring, which would better align with the principle of responsible resource use.
• Free Enterprise: By opening the door for aquifer storage and recovery (ASR) projects, the bill supports market-based solutions for water supply and resilience. This enables businesses, utilities, and local governments to innovate. However, the regulatory requirements and the technical complexity of ASR projects may create barriers to entry for smaller players, favoring well-resourced entities and raising concerns about equitable access to opportunity.
• Private Property Rights: The bill allows ASR wells to transect the Edwards Aquifer beneath private lands without robust protections for landowners. This raises flags about uncompensated impacts to subsurface property rights or water access, particularly if injection activities influence surrounding wells or property values. Without requirements for notice, consent, or compensation, the bill risks undermining this fundamental principle.
• Limited Government: The bill expands TCEQ’s authority by allowing it to authorize projects in a previously restricted aquifer zone. While this can be viewed as targeted deregulation to address a local need, it also broadens regulatory power without introducing offsetting constraints, such as public oversight or legislative review. Thus, the bill walks a fine line between facilitating local solutions and expanding state regulatory reach.

• SB 616 (Same As)