Austin, Texas
                                   FISCAL NOTE
                               75th Regular Session
                                  April 22, 1997
      TO: Honorable Warren Chisum, Chair            IN RE:  House Bill No. 2560
          Committee on Environmental Regulation                              By: Gallego
          Austin, Texas
         FROM:  John Keel, Director    
In response to your request for a Fiscal Note on HB2560 ( Relating 
to the disposal of low-level radioactive waste at a disposal 
site selected by the Texas Low-Level Radioactive Waste Disposal 
Authority.) this office has detemined the following:
         Biennial Net Impact to General Revenue Funds by HB2560-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
The bill would prohibit a disposal site selected by the Low 
Level Radioactive Waste Disposal Authority from  accepting low 
level waste until an interstate compact has taken effect that 
meets the requirements of Section 402.219, Health and Safety 
The Authority estimates that if the facility is constructed 
without a compact agreement, the result would be a loss of $8.9 
to $15.6 million in waste disposal fees each year, based on 
the amount of planned waste disposal capacity.  In addition, 
according to the Authority, there would be costs of approximately 
$2 million per year from the General Revenue Fund to maintain 
the facility with a skeleton crew until it is operational.  

 This estimate assumes that:  
* a license would be issued 
to the Low Level Radioactive Waste Disposal Authority;
* the 
Legislature would appropriate funds to construct the site; 
the site would be completed and operational by fiscal year 2000; 

* the compact agreement would not be ratified, therefore Texas 
would not receive $50 million for construction and operation 
costs from Maine and Vermont; and,
* the agency would not be 
able to issue revenue bonds to fund construction costs; 
construction costs would be funded through planning and implementation 
fees assessed to waste generators.    Currently, the Authority 
is funded through these fees which are deposited into the Low 
Level Waste Account (General Revenue-Dedicated 088).  

fiscal note estimate assumes that the agency would use planning 
and implementation fees and fund balances in the Low Level Waste 
Account (estimated in the Comptroller's Biennial Revenue Estimate 
for 1998-99 to be $7.5 million) until the site is operational. 
 The estimate further assumes a loss of $8.9 million in revenue 
each year in waste disposal fees.    
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           Probable Revenue   
            Savings/(Cost)     Gain/(Loss) from                                                           
            from Waste         Waste Account/                                                             
            Account/           GR-Dedicated                                                               
            0088               0088                                                                        
       1998      ($6,318,109)        $6,318,109                                                      
       1998      (56,735,297)        56,735,297                                                      
       2000       (2,041,000)       (8,900,000)                                                      
       2001       (2,041,000)       (8,900,000)                                                      
       2002       (2,041,000)       (8,900,000)                                                      

         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
               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.
Hudspeth County currently receives impact assistance payments 
from the Authority based on a rate of 10% of the fees collected 
by the Authority on an annual basis.  If disposal fees are not 
collected, Hudspeth County would see a reduction in revenue. 
   Source:            Agencies:   526   Low-Level Radioactive Waste Disposal Authority
                      LBB Staff:   BB ,JH