SB1746

Regular Session

Relating to the relocation or removal of dredged spoils or materials by a navigation district.

ModeratePlan for compliance

High Cost

Effective:2025-09-01

Enforcing Agencies

Texas Navigation Districts (Civil enforcement between districts) • United States Army Corps of Engineers (Compliance standard reference)

Compliance Analysis

Key implementation requirements and action items for compliance with this legislation

Implementation Timeline

Effective Date: September 1, 2025 (Standard).
Compliance Deadline: September 1, 2025. *Note: If this Act received a two-thirds vote in both houses, it is effective immediately. Legal counsel must verify the final vote count to determine if immediate compliance is required.*
Agency Rulemaking: No state-level rulemaking is mandated. However, districts must immediately align internal engineering standards with United States Army Corps of Engineers (USACE) compliance requirements to satisfy the statutory text.

Immediate Action Plan

1. Audit Active Projects: Identify any current or planned projects that involve moving spoils from a site owned by another Navigation District.
2. Freeze Eminent Domain Actions: Pause any legal filings regarding DMPA condemnation until a "Sole Expense" and "Capacity Replacement" budget is approved.
3. Model Transport Costs: Direct engineering teams to calculate the worst-case scenario for transport cost differentials if you are forced to provide a distant replacement site.
4. Update Master Service Agreements: Revise standard contracts to ensure contractors provide data necessary for "net salvage value" calculations.

Operational Changes Required

Contracts

Inter-local Agreements (ILAs): Existing MOUs regarding shared spoil sites are likely obsolete. You must renegotiate terms to explicitly define how "lost capacity" is measured and compensated.
Dredging Service Agreements: Vendor contracts must now delineate ownership of spoils to accurately calculate "net salvage value."
Real Estate Acquisition: Purchase agreements for new DMPAs must ensure rights are transferrable to third-party districts to satisfy the "replacement capacity" mandate.

Hiring/Training

Valuation Experts: You must retain qualified appraisers to determine the "net salvage value" of dredged materials (e.g., for construction aggregate) to substantiate cost deductions.
Engineering Audits: Project managers require training on calculating volumetric capacity differentials to ensure replacement sites meet the "equivalent capacity" statutory requirement.

Reporting & Record-Keeping

Capacity Certifications: You must generate engineering reports documenting the baseline capacity of the target DMPA and the post-removal capacity.
Transport Cost Analysis: Maintain a perpetual audit trail of transport costs. If the replacement site is further away, you are liable for the cost differential for the life of the project.

Fees & Costs

"Sole Expense" Liability: Budgeting for eminent domain actions involving DMPAs must now include 100% of removal costs.
Perpetual Opex: The law mandates payment for "increased costs" to transport material to the new site. This is a long-tail operational liability, not a one-time capital expense.

Strategic Ambiguities & Considerations

"Net Salvage Value" Methodology: The statute does not define the valuation method for dredged spoils. Disputes will arise over whether to use "market rate" or "actual realized sale price." Establish a defensible valuation standard immediately.
Definition of "Rights": The bill requires providing "rights" to replacement capacity. It is unclear if this demands fee simple ownership or if a long-term lease is sufficient.
Proximity of Replacement: The law does not define "reasonable distance" for the alternative site. If the only available replacement site is significantly further away, the transport cost indemnity could render your project financially unviable.

Need Help Understanding Implementation?

Our government affairs experts can walk you through this bill's specific impact on your operations.

Schedule Consultation

Information presented is for general knowledge only and is provided without warranty, express or implied. Consult qualified government affairs professionals and legal counsel before making compliance decisions.

Legislative Timeline

This bill's path through the Texas Legislature

TopicsSpecial Districts & Authorities Special Districts & Authorities--navigation & Ports

Official Analysis

View HRO Analysis View All Bill Documents

BILL ANALYSIS

Senate Research Center	S.B. 1746
89R8873 SCR-F	By: Creighton
	Transportation
	3/20/2025
	As Filed

AUTHOR'S / SPONSOR'S STATEMENT OF INTENT

S.B. 1746 will expand the authority of Texas navigation districts and port authorities by allowing them to relocate or dispose of dredged materials from established disposal sites. The districts can exercise eminent domain or police power for this purpose, provided they cover all costs and account for any net salvage value. This change is intended to facilitate the beneficial use of dredged materials during projects that require dredging through existing disposal sites.

Overall, this bill provides navigation districts with the tools necessary to manage dredged materials, ensuring they can maintain operational efficiency while promoting environmentally sound practices through beneficial reuse.

As proposed, S.B. 1746 amends current law relating to the relocation or removal of dredged spoils or materials by a navigation district.

RULEMAKING AUTHORITY

This bill does not expressly grant any additional rulemaking authority to a state officer, institution, or agency.

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Subchapter E, Chapter 60, Water Code, as follows:

Sec. 60.1021. RELOCATION OR REMOVAL OF DREDGED SPOILS OR MATERIALS. (a) Requires a navigation district, if the district requires the relocation or removal of dredged spoils or materials in an exercise of the district's powers under Subchapter E (Powers of Districts for Improvement of Port Facilities), the district's power of eminent domain, or the district's police power, to pay at the district's sole expense the cost of relocating or removing dredged spoils or materials or relocate or remove the dredged spoils or materials.

(b) Defines "sole expense."

SECTION 2. Effective date: upon passage or September 1, 2025.

Senate Authors

Sen. Charles CreightonRepublican · Primary Author

Coauthors (1)

Brent Hagenbuch (R)

House Sponsors

Rep. William MetcalfRepublican · Primary Sponsor

Joint Sponsors

Terri Leo-Wilson (R)

Bill Text(with markup)

S.B. No. 1746

View bill text in multiple formats on Texas Legislature website

Fiscal NoteView Original

	AN ACT
	relating to the relocation or removal of dredged spoils or
	materials by a navigation district.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
	SECTION 1. Subchapter E, Chapter 60, Water Code, is amended
	by adding Section 60.1021 to read as follows:
	Sec. 60.1021. RELOCATION OR REMOVAL OF DREDGED SPOILS OR
	MATERIALS. (a) In this section:
	(1) "Dredged material placement area" means a
	federally authorized disposal site for dredged spoils or materials.
	(2) "Sole expense" means the actual cost of or an
	in-kind contribution for the relocation or removal after deducting
	the net salvage value derived from the dredged spoils or materials.
	(b) If, in an exercise of the district's powers under this
	subchapter, the district's power of eminent domain, or the
	district's police power, a district requires the relocation or
	removal of dredged spoils or materials from a dredged material
	placement area owned, operated, managed, or established by another
	district, the district that requires the relocation or removal
	shall:
	(1) comply with all requirements imposed by the United
	States Army Corps of Engineers related to the dredged material
	placement area; and
	(2) either:
	(A) pay at the district's sole expense the cost
	of relocating or removing dredged spoils or materials; or
	(B) relocate or remove the dredged spoils or
	materials.
	(c) If the relocation or removal of dredged spoils or
	materials under Subsection (b) results in the reduction of another
	district's rights to capacity in the dredged material placement
	area, the district that required the relocation or removal shall be
	obligated to:
	(1) replace the affected district's lost capacity and
	provide rights to the replaced lost capacity in an alternative
	dredged material placement area; and
	(2) pay the affected district's increased costs, if
	any, to transport the dredged spoils or materials associated with
	the lost capacity to the alternative dredged material placement
	area described by Subdivision (1).
	SECTION 2. This Act takes effect immediately if it receives
	a vote of two-thirds of all the members elected to each house, as
	provided by Section 39, Article III, Texas Constitution. If this
	Act does not receive the vote necessary for immediate effect, this
	Act takes effect September 1, 2025.

LEGISLATIVE BUDGET BOARD
Austin, Texas

FISCAL NOTE, 89TH LEGISLATIVE REGULAR SESSION


March 20, 2025

TO:	Honorable Robert Nichols, Chair, Senate Committee on Transportation

FROM:	Jerry McGinty, Director, Legislative Budget Board

IN RE:	SB1746 by Creighton (Relating to the relocation or removal of dredged spoils or materials by a navigation district.), As Introduced

No fiscal implication to the State is anticipated.

Local Government Impact

There could be an impact to navigation districts required to pay for the cost of relocating or removing dredged spoils or materials.

Source Agencies:

LBB Staff:

JMc, AAL, BC, CWi, CMA

Related Legislation

Explore more bills from this author and on related topics

Frequently Asked Questions

Common questions about SB1746

What does Texas SB1746 do?

SB1746 imposes a strict "breaker pays" liability model on Navigation Districts exercising eminent domain or police powers over another district’s dredged material placement areas (DMPAs). The encroaching district must now bear the "sole expense" of removal, deduct net salvage value, and—crucially—provide replacement capacity and cover increased transport costs for the affected district. This effectively ends cost-sharing for inter-district spoil relocation and creates significant financial barriers to altering existing placement sites.

Who authored SB1746?

SB1746 was authored by Texas Senator Charles Creighton during the Regular Session.

When was SB1746 signed into law?

SB1746 was signed into law by Governor Greg Abbott on May 19, 2025.

Which agencies enforce SB1746?

SB1746 is enforced by Texas Navigation Districts (Civil enforcement between districts) and United States Army Corps of Engineers (Compliance standard reference).

How urgent is compliance with SB1746?

The compliance urgency for SB1746 is rated as "moderate". Businesses and organizations should review the requirements and timeline to ensure timely compliance.

What is the cost impact of SB1746?

The cost impact of SB1746 is estimated as "high". This may vary based on industry and implementation requirements.

What topics does SB1746 address?

SB1746 addresses topics including special districts & authorities and special districts & authorities--navigation & ports.

Legislative data provided by LegiScanLast updated: November 25, 2025

Need Strategic Guidance on This Bill?

Need help with Government Relations, Lobbying, or compliance? JD Key Consulting has the expertise you're looking for.