LEGISLATIVE BUDGET BOARD
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
House
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
Code.
Methodolgy
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).
This
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
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
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