LEGISLATIVE BUDGET BOARD
                          Austin, Texas

                           FISCAL NOTE
                       74th Regular Session

                           May 17, 1995



 TO:     Honorable Warren Chisum, Chair         IN RE: Committee Substitute
         Committee on Environmental Regulation               forSenate Bill
         House of Representatives               No. 1683
         Austin, Texas                                  By: Nixon









FROM: John Keel, Director

In response to your request for a Fiscal Note on Senate Bill No.
1683 (Relating to the collection, management, and recycling of
used oil and used oil filters; providing penalties.) this office
has determined the following:

The bill would amend sections of Chapter 371 of he Health and
Safety Code concerning used oil collection, management and
recycling.

The bill would provide for necessary changes to ensure that the
state's used oil recycling program is consistent with the federal
program for used oil and oil filter management. These changes
would authorize grants to both public and private entities to
encourage recycling of used oil; provide new management standards
and disposal options for used oil filters; exempt certain
registered do-it yourselfers and used oil collection facilities
from the used oil fee; require registration of used oil
distributors by the State Comptroller; create an advisory
committee for the used oil grant program; and reduce the fee on
the sale of automotive oil from two cents per quart to one cent
as of September 1, 1997.

The reduction in the Used Oil Recycling fee rate as provided for
by the bill would reduce revenues to the dedicated Used Oil
Recycling Fund Account in the General Revenue Fund  by up to 50
percent annually beginning in fiscal year 1998. The Used Oil
Recycling Fund would, however, receive a revenue gain from the 25    




percent of sales fees that are currently transferred to the
dedicated Hazardous and Solid Waste Remediation Fee Fund Account 
in the General Revenue Fund. These fees would be set aside for
environmental restoration.

The fiscal impact of exempting certain facilities from paying the
Used Oil Recycling fee cannot be determined.

The bill would require the State Comptroller to assume new
administrative and enforcement responsibilities.  Increased
administrative costs to the State Comptroller are estimated to
range between $86,000 and $128,000 annually and would include
three new full-time-equivalent positions.   

The reduction in the Used Oil Recycling fee rate as provided for
by the bill would reduce the amount of money available to local
units of governments for the construction and operation of used
oil collection centers.

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    Probable Cost Out 
             Year    Gain/(Loss) Loss   Loss to Hazardous       of Used Oil    
                       to Used Oil       and Solid Waste    Recycling Fund 146 
                    Recycling Fund 146  Remediation  Fund                      
                                               550                             
                                                                               
          1996              $1,960,000          $1,972,000              $86,400
          1997               1,977,000           1,992,000              128,216
                                                                               
          1998             (1,389,000)           1,992,000               88,715
                                                                               
          1999             (2,223,000)           1,992,000               88,715
          2000             (2,223,000)           1,992,000               89,243
                                                                               
                                                                               
                                                                               
            Fiscal     Change in    
             Year   Number of State 
                     Employees from 
                        FY 1995     
                                    
                                    
          1996                   3.0
          1997                   3.0
                                    
          1998                   3.0
                                    
          1999                   3.0
          2000                   3.0
                                    
                                    
                                    
       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