LEGISLATIVE BUDGET BOARD
                          Austin, Texas

                           FISCAL NOTE
                       74th Regular Session

                          April 3, 1995



 TO:     Honorable Warren Chisum, Chair         IN RE:  House Bill No. 2878
         Committee on Environmental Regulation          By: Holzheauser
         House of Representatives
         Austin, Texas







FROM: John Keel, Director

In response to your request for a Fiscal Note on House Bill No.
2878 (Relating to the definition of "modification of existing
facility" under the Texas Clean Air Act.) this office has
determined the following:

The bill would amend the Texas Clean Air Act to modify the
definition of "modification of existing facility" and change the
basis for agency review of modifications and changes to
stationary air emission sources.

The bill would eliminate the need for some of the permit reviews
currently performed by Texas Natural Resource Conservation
Commission (TNRCC) New Source Review program staff. Because
application fees are commensurate with program costs, a reduction
in revenue is equivalent to a reduction in TNRCC expenses.

Local units of government holding permits subject to the bill
would be affected in the same manner as any permit holder.

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 Cost to   Probable Gain to       Change in    
             Year   Clean Air Fund 151  the Clean Air Fund  Number of State 
                                               151           Employees from 
                                                                FY 1995     
                                                                            
          1996              $1,049,982          $1,049,982            (17.0)
          1997               1,049,982           1,049,982            (17.0)
                                                                            
          1998               1,049,982           1,049,982            (17.0)
                                                                            
          1999               1,049,982           1,049,982            (17.0)
          2000               1,049,982           1,049,982            (17.0)
                                                                            
                                                                            
                                                                            
       Similar 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:   Natural Resource Conservation Commission
          LBB Staff: JK, JB, DF