TCEQ outlines legislative workload, new hires and $964 million budget in briefing to commissioners

Steven Char, deputy executive director at the Texas Commission on Environmental Quality, told the commission during a work session that agency staff “tracked 1,053 bills during the legislative session. A 156 of those bills passed.” He said agency analysts reviewed more than 700 bills while continuing regular duties and that staff currently estimate about 26 bills will require rulemaking during the interim.

The presentation laid out the fiscal picture for the agency from the recent legislative session and a supplemental bill (HB 500). “It totals 964,000,000,” Char said, describing the combined budget figure shown in the slides and noting most agency funding comes from fee revenue held in the GRD account.

Why it matters: The funding and requests the agency presented touch permitting capacity, staff retention and information technology. Commissioners pressed staff on how the new resources will be allocated, how many positions will be filled, and what follow-up reporting the commission will receive as the agency implements new duties moved to TCEQ by statute.

Key items and staffing commitments

Char and Elizabeth Cifuentes Koch, chief budget and efficiency officer for the agency, summarized seven “exceptional items” the agency requested and said the legislature granted nearly 90% of the requested amounts. Char said the agency plans to add a large number of new positions across divisions: the Office of Waste (11 FTEs), Office of Water (17 FTEs), Office of Air (52 FTEs), Compliance and Enforcement (11 FTEs), Legal Services (9 FTEs), toxicology (2 FTEs) and additional support for the chief clerk’s office and interpretation services. Char said the agency is hiring and has added an FTE to human resources to handle onboarding.

On salary and retention, Char said the agency requested $39.5 million and received $32.5 million in retention funding. He described a sustained vacancy problem — a period when the agency’s vacancy rate rose to about 18% between fiscal 2021 and fiscal 2023 — and said roughly 50% of TCEQ staff have five years of experience or less and nearly 30% are eligible for retirement.

Produced water and permitting

Produced-water permitting, moved to TCEQ by a legislative transfer, featured prominently. Char said the agency received $3,400,000 and 19 FTEs to stand up permitting for land application and other beneficial uses of treated produced water but had originally requested 39 FTEs to fully staff the program. “We requested 39 FTEs,” Char said, “and … we only have a few permits in house.” He said the agency will monitor permit volumes and expect to return to the legislature if additional resources are needed.

Contingency and rider funding

The presentation listed contingency riders tied to passed bills. Char said Senate Bill 7 provides $1,800,000 and 9 FTEs to support staffing for review of permit applications for water supply projects that receive assistance from the Texas Water Fund; Senate Bill 1145 (presented as 11 45 in the briefing) transfers permanent authority for certain produced-water land application permits from the Railroad Commission to TCEQ and provides $1,200,000 and 6 FTEs. Char acknowledged the agency’s estimates were “best guesstimates” given unknown future application volumes and said staff will monitor workload and request additional positions if necessary.

Cybersecurity and IT modernization

Char said supplemental appropriations (HB 500) included funding for cybersecurity ($7,800,000 and 14 FTEs), IT modernization ($9,900,000 and 2 FTEs) and data center services. He described legacy systems used by the agency as decades old and said updates are intended to reduce single-person knowledge risks and restore interoperability. “We can’t just have one employee at TCEQ that knows how to do the one legacy system program,” a presenter said; commissioners asked for periodic updates on the modernization work.

Riders and emergency response

Char described several new riders adopted by the legislature. One rider authorizes the agency to pay staff for being on call or working overtime during emergency responses; a second rider allows the agency to cover meals when responding to emergencies starting Sept. 1, provided funds are available. “We cannot pay for their food…until Sept. 1,” he said, adding the agency will identify available funds in practice.

Reporting, federal rule uncertainty and next steps

Char emphasized that some positions and dollars are contingent on federal rules remaining in effect. He said a rider directs the agency to notify the Legislative Budget Board and meet with state leadership if certain federal rules are invalidated and to return funds if they are no longer needed. He also told commissioners the agency will return to present the operating budget for fiscal 2026 on the August agenda and will provide updates on hiring, legacy-system lists, and produced-water implementation as those efforts proceed.

Votes and formal actions

No formal votes or motions were recorded during the presentation portion of the work session.

Ending

Char closed the presentation noting staff would follow up with the commission and deliver more detailed materials on FTE allocations, legacy systems targeted for modernization and the agency’s approach to tracking fiscal impacts from passed bills. Commissioners signaled interest in regular updates on hiring, cybersecurity, produced-water permitting and whether the agency becomes a bottleneck for water-related projects funded through the Texas Water Fund.