BILL ANALYSIS C.S.H.B. 3072 By: Gallego 4-4-95 Committee Report (Substituted) BACKGROUND The Municipal Solid Waste Fee, or "tipping fee," is collected at the municipal and private landfills and deposited in the state treasury to an account for the Texas Natural Resource Conservation Commission. The full amount of revenue from the fee totals approximately $22-24 million per year, and is decreasing due to less waste being landfilled - a result attributable to the recycling and composting programs funded by the fee. The balance of revenues not used by the commission is eligible for a number of solid waste management activities, many of which are performed in partnership with local government either through direct grants, technical assistance, or indirectly with community participation. The portion dedicated to these local activities continues to decrease as state level agency uses increase. As payers into the tipping fee, local officials have understood that the revenue was to come back to them in substantial proportions through grants. Percentage of the tipping fee revenues for grants has gone from 45% in FY 93 to 27% in FY 95 (chart below). Activity Funded from Tipping Fee FY 93 Amount % of Total FY 94 Amount % of Total FY 95 Amount % of Total Grants to Regional and Local Activities $12,845,948 45.7 $9,767,200 40.7 $6,000,000 27.9 Waste Management $6,858,668 24.4 5,659,599 23.6 $3,881,055 18.0 Legal Compliance $3,626,099 12.9 3,444,644 14.4 $960,728 4.5 Water Resource Mgmt $787,060 2.8 278,800 1.2 $418,059 1.9 Agency Administration $3,232,569 11.5 $2,643,827 11.0 $2,833,898 13.2 Executive Office * $365,420 1.3 $2,201,549 9.2 $1,923,637 8.9 Commissioners Office $393,530 1.4 n/a n/a n/a n/a Pollution Prevention n/a n/a n/a n/a $5,506,906 25.6 TOTAL Tipping Fee Revenues $28,109,294 100 $23,995,619 100 $21,524,283 100 Includes Pollution Prevention for FY 94 only. Source: TNRCC Staff PURPOSE The purpose of the bill is to ensure that: (1) one-half of solid waste fee revenues is used for state level activities related to solid waste management, particularly permitting and enforcement requirements at the Texas Natural Resource Conservation Commission, and (2) one-half of solid waste fee revenues is available to carry out local and regional projects specific to their area needs and in accordance with approved regional solid waste management plans. RULEMAKING AUTHORITY It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency or institution. SECTION BY SECTION ANALYSIS SECTION 1. Amends, Chapter 361, Health & Safety Code, as follows: Section 361.014 (a) limits the amount of revenue dedicated to the commission's programs to one-half of the solid waste fee revenue. Section 361.014 (b) dedicates one-half of the solid waste fee revenue to local and regional solid waste projects consistent with regional plans approved by the commission. The revenues will be allocated based on an established formula. SECTION 2. Emergency clause. COMPARISON OF ORIGINAL TO SUBSTITUTE The Committee substitute of HB 3072 is a Legislative Council Draft of the original bill with no substantial changes in content or intent. SUMMARY OF COMMITTEE ACTION HB 3072 was considered by the House Committee on Environmental Regulation in a public hearing on April 4, 1995. Rep. Gallego testified for the bill. The committee considered a complete substitute for the bill. The following persons testified in favor of the bill: Sandra Pickett, City Council of Liberty, representing herself. John Thompson, County Judge of Polk County, representing himself and the County Judges and Commissioners Association - Texas Association of Regional Councils of Governments. Thomas J. Blazek, City Manager of Panhandle, representing himself and the City of Panhandle. Al J. Notzon III, representing the Alamo Area Council of Governments. Don Kelley, Local Public Administration, Executive Director of South East Texas Regional Planning Commission, representing himself and the South East Texas Regional Planning Commission. Gary Pitner, Executive Director of the Panhandle Regional Planning Commission, representing himself and the Panhandle Regional Planning Commission. Paul Edwards, representing the Middle Rio Grande Development Council. Justin R. Ormsby, representing himself and the Rio Grande Council of Governments. Jack C. Carmichael, with the Texas Chapter of Solid Waste Association of North America, representing himself. Mark Mendez, representing the Tarrant County Commissioners Court. Chuck Button, representing the Municipal Solid Waste Management Association/National Solid Waste Management Association testified against the bill. The following persons testified neutrally on the bill: Stephen Minnick, representing the Texas Natural Resource Conservation Commission. Patti Everitt, representing the Texas Natural Resource Conservation Commission. The substitute for HB 3072 was adopted without objection. HB 3072 was reported favorably as substituted with the recommendation that it do pass and be printed, by a record vote of six (6) ayes, no (0) nays, no (0) pnv, and three (3) absent.