LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE
74th Regular Session
April 20, 1995
TO: Honorable Warren Chisum, Chair IN RE: Committee Substitute
Committee on Environmental Regulation for Senate
House of Representatives Bill No. 178
Austin, Texas
FROM: John Keel, Director
In response to your request for a Fiscal Note on Senate Bill No.
178 (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 six years old in the state's four
nonattainment areas would only be required to go to test and
repair facilities that use approved technology equipment.
Vehicles that are older than six 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 repair assistance
and scrappage program authorized by the bill and operated by
county governments.
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 bill does not authorize a specific mechanism to recover TNRCC
costs of operations. The costs of implementing the bill are
shown as a cost to the Clean Air Fund.
Actual revenue generated by county governments will depend on the
number of vehicles electing the mitigation fee option and cannot
be determined. The TNRCC would be authorized to establish by
rule the amounts of eligible expenses to be paid by counties for
repair assistance and minimum and maximum payments for vehicle
scrappage. Expenses would be dependent on TNRCC rules and cannot
be determined.
Redesign of the I/M program could result in claims against the
state for damages and other compensation by I/M program
contractors. The potential cost liability to the state cannot be
determined.
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 Out Change in
Year of Clean Air Number of State
Account 151 Employees from
FY 1995
1996 $4,590,833 30.0
1997 4,230,833 30.0
1998 4,230,833 30.0
1999 4,230,833 30.0
2000 4,230,833 30.0
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 Resources Conservation Commission
LBB Staff: JK, JB, DF