LEGE UPDATE - Budget Gimmicks, House Passes Weak Railroad Commission Reform Bill

Texas Capitol

Things are moving much quicker now that April is approaching.

The Budget

First, the Senate passed their version of the budget (SB 1) 31-0 for the next two years. The $218 billion budget bill shifts about $1.5 billion in public education onto local taxpayers. It’s a mixed bag on the environment. More funding for the Railroad Commission, including most of their exceptional items request such as a new IT system for tracking enforcement cases. However, the bill slashed funding for the Texas Emissions Reduction Plan, which helps Dallas, Houston, San Antonio, and El Paso meet clean air standards by $65 million, and shorts local park grants by $9 million.

SB 1 was immediately blasted by House leaders who said it relied on a “gimmick,” a delay in moving money over to the State Highway Fund as is required by the Constitution. Just a day after passing their budget, the House Committee on Appropriations met and passed their version of the budget, which is slightly kinder to TERP and local parks, and also funds the Texas Water Development Board at a healthier amount by making funding available for the Economically Distressed Areas Program, which helps communities lacking water and wastewater infrastructure have access to state grants. The House budget also more fully funds water quality and drinking water programs.

But the House budget contains its own method of financing -- it relies on the so-called “Rainy Day Fund” for $2.5 billion, a move that is certain to raise objections in the Senate, which has vowed to not spend “Rainy Day” money.

The budget bill will be on the House floor next Thursday, April 6, for final passage and then the Senate and House will start the real debate in conference committee. Sierra Club will be there to advocate for TERP, drinking water, and local parks funding.

Railroad Commission Reform

The other major issues in the House was passage of an extremely modest reform of the Railroad Commission of Texas through, HB 1818 -- the Sunset bill. The bill does contain some good items -- better tracking of enforcement, pipeline safety improvements, and regulations -- but all of the good reforms suggested by Sierra Club and by the Sunset staff -- were rejected by the House during the floor debate.

Rejected RRC Reform Amendments

Require putting data online in a searchable way?

Rejected 94-48.

Raising penalties to levels that would actual deter rule-breakers?

Rejected 102-39.

Limit political contributions from the oil and gas companies to the Commissioners?

Opposed by leadership and pulled before a vote.

How about the very first recommendation by the Sunset staff report: Change the name?

Rejected 105-38.

Fortunately, because of Sierra Club’s advocacy and a few House members who care, these issues are now getting hearings through separate legislation. Rep. Anchia’s HB 464 (limiting political contributions) got a hearing on Thursday, March 30. Good timing with Texans for Public Justice recently released a report, “Conflicted”, about how political contributions from oil and gas influence decision-making.

Next week, other bills by Rep. Anchia (D-Dallas) on changing the name of the Railroad Commission (HB 237) and putting enforcement data online (HB 247) get a hearing as well. Please let the House Committee on Energy Resources know that you support these bills.

The sunset bill itself moves onto the Senate where we will try and improve it.

One bill stopped... for now

Thanks to you and the good work of our friends in the wind industry, SB 277, which would disallow tax incentives for wind projects located near military bases, has not come up yet for a vote on the Senate floor. Let’s keep it that way since there is no need for such a bill and it would undermine wind development!

Some bad bills also move forward

SB 1045 by Sen. Estes (R-Wichita Falls) had a hearing and was passed out of committee on a 7-2 vote this week. The bill would eliminate one of the required notice periods for air pollution permit applicants. Unfortunately, only Sens. Sylvia Garcia (D-Houston) and Jose Rodriguez (D-El Paso) voted against the bill. The bill now goes to the Senate floor.

Meanwhile, SB 225, by Sen. Van Taylor (R-Plano), which would undermine the public’s right to contest water rights by putting limits on the issues that can be raised and the timing of the hearings, is up for discussion next week. Stopping this bill is one of the Sierra Club’s highest priorities.