LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE 74th Regular Session April 13, 1995 TO: Honorable Warren Chisum, Chair IN RE: Committee Substitute Committee on Environmental Regulation for House House of Representatives Bill No. 3036 Austin, Texas FROM: John Keel, Director In response to your request for a Fiscal Note on House Bill No. 3036 (relating to the vehicle emmissions inspection and maintenance program) this office has determined the following: The bill would provide for a redesigned state-administered vehicle emissions inspection and maintenance program. Vehicles that are less than four years old in the state's four nonattainment areas would only be required to go to test and repair facilities that use lower technology equipment. Vehicles that are older than four years would be required to go to test- only facilities but could be retested (if they fail) at test and repair facilities. The bill would allow owners of vehicles that are less than six years old to pay a $10 mitigation fee and waive the test. Mitigation fees would be dedicated to a vehicle scrappage bill authorized by the bill. The bill would require the Texas Natural Resource Conservation Commission (TNRCC) to operate a modified, partially decentralized vehicle emissions inspection and maintenance program. Because the number of facilities that would be authorized to perform testing will significantly increase in a decentralized program, there will be the need for additional staff and associated support expenses for licensing, inspection and oversight, and certification of repair technicians. The costs to the Clean Air Fund to implement the provisions of the bill are assumed to be offset by vehicle emissions fees authorized by the bill. The costs of the vehicle scrappage program authorized by the bill are not included in this analysis but are assumed to be equivalent and offsetting. County tax assessors will be required to collect vehicle emission certificates or other verifications of compliance, waivers, and mitigation fees and submit to the Comptroller. Tax assessors may retain 50 cents from each instrument collected. Tax assessors in affected counties must report annually regarding their activities under the bill. 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 Clean Air Fund 151 Number of State Employees from FY 1995 1996 $3,066,511 $3,066,511 36.0 1997 2,823,511 2,823,511 36.0 1998 2,823,511 2,823,511 36.0 1999 2,823,511 2,823,511 36.0 2000 2,823,511 2,823,511 36.0 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: Natural Resource Conservation Commission LBB Staff: JK, JB, DF