LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE 74th Regular Session May 4, 1995 TO: Honorable Bill Sims, Chair IN RE: Senate BillNo. 1683 Committee on Natural Resources By: Nixon Senate Austin, Texas 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.) 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 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; eliminate certain limitation of liability provisions of the used oil program; reduce the fee on the sale of automotive oil from two cents per quart to one cent; establish the fee on the sale of used oil as of January 1, 2000; and limit Texas Natural Resource Conservation Commission (TNRCC) administrative costs from the Used Oil Recycling Fund to six percent of the fund. 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. 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 bill would provide for the Department of Commerce to process used oil recycling grants for various entities awarded by an advisory committee appointed by the TNRCC during calendar year 1995. The administrative costs to the Department of Commerce to process grants cannot be determined. 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 Loss to Used Oil Loss to Hazardous of Used Oil Recycling Fund 146 and Solid Waste Recycling Fund 146 Remediation Fund 550 1996 $2,064,000 $1,972,000 $86,400 1997 4,206,000 1,992,000 128,216 1998 4,206,000 1,992,000 88,715 1999 4,206,000 1,992,000 88,715 2000 6,087,000 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, Department of Commerce, Natural Resource Conservation Commission LBB Staff: JK, JB, DF