LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE
74th Regular Session
May 12, 1995
TO: Honorable Bill Sims, Chair IN RE: Committee Substitute
Committee on Natural Resources forHouse Bill
Senate No. 2587
Austin, Texas By: Sims, et al.
FROM: John Keel, Director
In response to your request for a Fiscal Note on House Bill No.
2587 (Relating to the regulation of certain aboveground and
underground storage tanks and the regulation of underground
storage tank installers; providing penalties.) this office has
determined the following:
The bill would eliminate eligibility for reimbursement from the
Petroleum Storage Tank Reimbursement (PSTR) Fund for any releases
reported after December 22, 1998.
The bill would require that claims for reimbursement from the
PSTR Fund for clean-up of leaking storage tanks be paid in the
order that they were received.
The bill would require the use of risk-based technology in the
evaluation of corrective action plans for storage tank
remediation.
The bill would require the maintenance of financial assurance for
storage tank owners and provide penalties for failure to comply.
The bill would double the current revenue to the PSTR Fund by
increasing the fee on bulk delivery of petroleum products and
authorize the temporary transfer of up to $120 million from the
General Revenue Fund to the PSTR Fund to pay reimbursement
claims. Of the $120 million that is authorized to be transferred
from the General Revenue Fund to the PSTR Fund, $80 million must
be repaid by August 31, 1996 and the balance of $40 million by
May 31, 1997.
The bill would authorize the privatization any part of the PSTR
program and require the expiration of the program as of September
1, 2001.
The bulk delivery fee increase 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 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
Year Gain/(Loss) from Gain to Petroleum
General Revenue Storage Tank
Fund 001 Remediation
Account 655
1996 ($38,620,000) $98,426,000
1997 41,380,000 27,716,000
1998 1,380,000 67,716,000
1999 1,380,000 67,716,000
2000 1,380,000 67,716,000
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