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