LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE
75th Regular Session
April 2, 1997
TO: Honorable David Counts, Chair IN RE: House Bill No. 2333
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-As Introduced
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 increase the cap on the waste treatment inspection
fee and provide two rate schedules for before and after the
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 and effective
September 1, 1998, it would be raised to $65,000.
After
NPDES delegation, the bill would raise the fee cap from $25,000
to $40,000 per discharge permit, and to $80,000, effective September
1, 1998. The bill would extend the prohibition on increasing
the fee 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 broaden the authority
for use of the waste treatment inspection fee to include water
quality control programs, including regional watershed assessments
and the implementation of regional water quality management
functions, otherwise known as the Clean Rivers program. This
bill would extend funding for the Clean Rivers program, currently
set to expire August 31, 1998.
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
Under the increased fee authority provided by this bill, beginning
in fiscal year 1998 the TNRCC anticipates collecting additional
annual waste treatment inspection fees (Water Quality Account)
in the amount of $4 million to fund 45 FTEs to conduct water
quality program enhancements.
To implement the additional
drinking water program requirements of this bill, the TNRCC
anticipates collecting additional annual amount of approximately
$4 million in the Public Health Service Fee Account from fees
collected from public drinking water supply systems, as provided
in existing law. This additional funding is for the following
additional functions: $2.7 million and 9 FTEs for water quantity
and water rights related programs; $0.34 million and 3 FTEs
for water utilities oversight; and $1.7 million for public drinking
water programs.
In addition, beginning fiscal year 1999,
the TNRCC estimates collecting $5,000,000 each year (17.5 FTEs)
from increased waste treatment inspection fees to fund regional
water quality assessments and implement regional water quality
management functions, currently funded under the Clean Rivers
program.
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 8,830,000 (8,830,000) 3,950,000 (3,950,000) 74.5
2000 8,830,000 (8,830,000) 3,950,000 (3,950,000) 74.5
2001 8,830,000 (8,830,000) 3,950,000 (3,950,000) 74.5
2002 8,830,000 (8,830,000) 3,950,000 (3,950,000) 74.5
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 total costs to local governments in increased
fees of up to $5 million per year should the TNRCC use the authority
provided by this bill to increase the annual water treatment
inspection fee and the safe drinking water fees. These increased
fees would be paid by those units of local government currently
required to pay the existing fees.
Source: Agencies: 580 Water Development Board
304 Comptroller of Public Accounts
LBB Staff: JK ,BB ,NT ,TL