Fiscal Year	Probable Net Positive/(Negative) Impact to General Revenue Related Funds
2022	$0
2023	$0
2024	$0
2025	$0
2026	$0

Fiscal Year	Probable Savings/(Cost) from General Revenue Dedicated Aboveground Storage Tank Safety Program Account	Probable Revenue Gain/(Loss) from General Revenue Dedicated Aboveground Storage Tank Safety Program Account	Change in Number of State Employees from FY 2021
2022	($1,203,502)	$1,203,502	14.0
2023	($1,085,002)	$1,085,002	14.0
2024	($1,085,002)	$1,085,002	14.0
2025	($1,085,002)	$1,085,002	14.0
2026	($1,085,002)	$1,085,002	14.0

The bill would amend the Water Code to establish the Bulk Storage Vessel (BSV) Performance Standards Program within the Texas Commission on Environmental Quality (TCEQ), identifies the safety elements that TCEQ must include in these standards, and identifies the entities regulated under this new program. The bill would require TCEQ to establish a BSV Safety Program to provide for the protection of groundwater and surface water resources in the event of an accident or natural disaster.

Under the bill's provisions, an owner or operator of a BSV must register with the commission, assess, and report to TCEQ on its compliance status with the BSV Performance Standards Program no later than September 1, 2027 with any BSVs constructed or brought into service after that date required to register and certify compliance no later than 30 days following start of their operations. The bill would require owners and operators of BSVs to comply with the standards program upon completion of the next regularly scheduled out-of-service maintenance that occurs after September 1, 2027 with all facilities required to certify compliance status no later than September 1, 2037.

The bill would require TCEQ to conduct on-site inspections of the registered and certified facilities at least once every five years to determine compliance. The bill permits TCEQ to approve exemptions from specific BSV regulations if the owner or operator of the BSV demonstrates that the vessel presents a sufficiently low risk of hazards such that it does not warrant regulation under the program. The bill authorizes TCEQ to conduct rulemaking to establish the effective date of standards used in implementing the program under conditions identified in the bill.

The bill would create the new General Revenue–Dedicated Aboveground Bulk Storage Vessel Performance Standards Program Account and would require TCEQ to establish certification fees in amounts sufficient to cover program costs for deposit to the account.

This bill would take effect September 1, 2021.

Based on the analysis of the TCEQ, this estimate assumes that establishing a BSV Performance Standards Program within the TCEQ with a five-year onsite inspection frequency and a ten-year certification record review for an estimated 8,200 BSVs would require two additional Program Specialist IVs ($59,473 per year with estimated benefits of $19,341) for support and management of aboveground storage tank registration within the Office of Waste. An additional nine Natural Resource Specialist IIIs ($55,602 per year with estimated benefits of $18,082) would be needed for compliance and investigation and an additional three Natural Resource Specialist IIs ($47,688 per year with estimated benefits of $15,508) would be needed for enforcement, development of guidance documents on the new requirements, and for the coordination of workshops throughout the state. These new positions would reside within the Office of Compliance and Enforcement. This estimate also assumes that TCEQ would need three additional vehicles for the Natural Resource Specialist IIIs for a one-time cost of $82,500 to support required travel and annual operating expenses of $137,632 in fiscal year 2022 and $74,632 each subsequent fiscal year.

This analysis assumes that TCEQ would establish fees as necessary to cover all costs associated with implementing the provisions of the bill.

This legislation would do one or more of the following: create or recreate a dedicated account in the General Revenue Fund, create or recreate a special or trust fund either with or outside of the Treasury, or create a dedicated revenue source. The fund, account, or revenue dedication included in this bill would be subject to funds consolidation review by the current Legislature.

LEGISLATIVE BUDGET BOARD
Austin, Texas

FISCAL NOTE, 87TH LEGISLATIVE REGULAR SESSION


April 20, 2021

TO:	Honorable Brian Birdwell, Chair, Senate Committee on Natural Resources & Economic Development

FROM:	Jerry McGinty, Director, Legislative Budget Board

IN RE:	SB900 by Alvarado (Relating to the safety of bulk storage vessels.), Committee Report 1st House, Substituted