LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE
74th Regular Session
April 13, 1995
TO: Honorable Robert Junell, Chair IN RE: House Bill No. 843,
Committee on Appropriations as amended
House of Representatives By: Alexander
Austin, Texas
FROM: John Keel, Director
In response to your request for a Fiscal Note on House Bill No.
843 (relating to the regulation of petroleum storage tanks) this
office has determined the following:
The bill would require that claims for reimbursement from the
Petroleum Storage Tank Remediation (PSTR) Fund for cleanup of
leaking storage tanks be paid in the order that they were
received.
The bill would authorize the transfer of up to $120 million from
General Revenue to the PSTR Fund to pay reimbursement claims
against the PSTR Fund that are filed before August 31, 1995. The
transfer would be required to be made on September 1, 1995, or as
soon as practicable thereafter.
The bill would double the current revenue to the PSTR Fund by
increasing, to approximately $0.12 per gallon from $.006 per
gallon, the wholesale distributor fee on bulk delivery of
petroleum products until $120 million of fee revenue has been
deposited to the General Revenue Fund and the unobligated balance
in the PSTR Fund equals or exceeds $50 million. At such time the
fee would not be collected. The bill would require that $80
million in fee revenue be deposited to the General Revenue Fund
prior to the end of fiscal year 1996 and $40 million prior to the
end of fiscal year 1997. Excess fees would be deposited to the
credit of the General Revenue Fund. When the fund balance falls
below $25 million, the fee would be collected at the current
rate, or one-half the increased rate authorized by the bill.
The bulk delivery fee increased authorized by the bill may
result in increased costs of petroleum fuels for all consumers,
including local units of government. However, local units of
government will benefit from the bill to the same extent as all
tank owners due to the availability of additional funds to pay
reimbursement claims.
The bill provides that the reimbursement program expire September
1, 2001.
The probable fiscal implication of implementing the provisions of
the bill during each of the first five years following passage
is estimated as follows:
Fiscal Probable Revenue Probable Revenue Change in
Year Gain/(Loss) from Gain/(Loss) to Number of State
General Revenue Petroleum Storage Employees from
Fund 001 Tank Remediation FY 1995
Account 655
1996 ($38,620,000) $98,426,000 .0
1997 41,380,000 27,716,000 .0
1998 1,380,000 67,716,000 .0
1999 1,380,000 67,716,000 .0
2000 1,380,000 67,716,000 .0
Similar annual fiscal implications would continue as long as the
provisions of the bill are in effect.
The fiscal implication to units of local government cannot be
determined.
Source: Comptroller of Public Accounts, Natural Resource
Conservation Commission
LBB Staff: JK, JB, DF