LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE
75th Regular Session
April 16, 1997
TO: Honorable David Counts, Chair IN RE: House Bill No. 2333, Committee Report 1st House, Substituted
Committee on Natural Resources By: Lewis, Ron
House
Austin, Texas
FROM: John Keel, Director
In response to your request for a Fiscal Note on HB2333 ( Relating
to certain fees related to water quality.) this office has detemined
the following:
Biennial Net Impact to General Revenue Funds by HB2333-Committee Report 1st House, Substituted
Implementing the provisions of the bill would result in a
net impact of $0 to General Revenue Related Funds through the
biennium ending August 31, 1999.
The bill would make no appropriation but could provide the legal
basis for an appropriation of funds to implement the provisions
of the bill.
Fiscal Analysis
This bill would change the cap on waste treatment inspection
fees and provide two rate schedules, effective before and
after federal delegation of the National Pollutant Discharge
Elimination System (NPDES) permit authority to the state.
Before
NPDES delegation, the waste treatment inspection fee cap would
be raised from $11,000 to $25,000 per discharge permit. After
NPDES delegation, the bill would raise the fee cap from $25,000
to $40,000 per discharge permit. The bill would extend the
prohibition on fee increases until August 31, 2001 and limit
any increase in the fee for payment of additional expenses for
obtaining or administering the NPDES program.
The bill would
allow consolidation of the waste treatment inspection fee with
any fees assessed against wastewater permit holders, if the
75th Legislature enacts legislation extending the Clean Rivers
program (currently scheduled to expire January 1, 1999).
The
bill would broaden the use of the safe drinking water fee charged
to persons who own, operate, or maintain public drinking water
supply systems to include: oversight of, and technical assistance
to, water and wastewater utilities; water resource management
and the regulation of water rights; and oversight of, and technical
assistance to, conservation and reclamation districts.
The
effective date of this bill would be upon passage and enactment.
Methodolgy
The TNRCC states that the broader fee authority allowed by the
bill will yield additional annual waste treatment inspection
fees (deposited to the Water Quality Account) of about $3.8
million annually; the additional revenue would fund 45 FTEs
to conduct water quality program enhancements.
The TNRCC
also anticipates exercising its authority under current law
to increase fees related to safe drinking water programs in
order to carry out the additional responsibilities which would
be imposed by this bill. The commission estimates that about
$4.3 million in additional fees would be collected each year
from public drinking water supply systems and deposited in the
Public Health Service Account. This additional revenue would
fund the following functions: $2.7 million and 9 FTEs for water
quantity and water rights related programs; $ .34 million and
3 FTEs for water utilities oversight; and $1.7 million for public
drinking water programs.
The probable fiscal implications of implementing the provisions
of the bill during each of the first five years following passage
is estimated as follows:
Five Year Impact:
Fiscal Year Probable Revenue Probable Probable Revenue Probable Change in Number
Gain/(Loss) from Savings/(Cost) Gain/(Loss) from Savings/(Cost) of State
Water Quality from Water Department of from Department Employees from
Account/ Quality Account/ Health Public of Health Public FY 1997
GR-Dedicated GR-Dedicated Health Service Health Service
Fee Account/ Fee Account/
GR-Dedicated GR-Dedicated
0153 0153 0524 0524
1998 $3,830,000 ($3,830,000) $4,310,000 ($4,310,000) 57.0
1998 3,830,000 (3,830,000) 3,950,000 (3,950,000) 57.0
2000 3,830,000 (3,830,000) 3,950,000 (3,950,000) 57.0
2001 3,830,000 (3,830,000) 3,950,000 (3,950,000) 57.0
2002 3,830,000 (3,830,000) 3,950,000 (3,950,000) 57.0
Net Impact on General Revenue Related Funds:
The probable fiscal implication to General Revenue related funds
during each of the first five years is estimated as follows:
Fiscal Year Probable Net Postive/(Negative)
General Revenue Related Funds
Funds
1998 $0
1999 0
2000 0
2001 0
2002 0
Similar annual fiscal implications would continue as long as
the provisions of the bill are in effect.
The TNRCC estimates that if the commission exercises its authority
to raise fees, local governments currently required to pay fees
under safe drinking water programs would experience increased
costs of up to $5 million per year.
Source: Agencies:
LBB Staff: JK ,BB ,NT