LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE 75th Regular Session April 1, 1997 TO: Honorable Warren Chisum, Chair IN RE: House Bill No. 2705 Committee on Environmental Regulation By: Chisum House Austin, Texas FROM: John Keel, Director In response to your request for a Fiscal Note on HB2705 ( Relating to the voluntary cleanup program for solid and hazardous wastes.) this office has detemined the following: Biennial Net Impact to General Revenue Funds by HB2705-As Introduced Implementing the provisions of the bill would result in a net negative 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 amend the voluntary cleanup program to extend eligibility for participation to responsible parties, provide a release of further liability upon issuance of a certificate of completion, and free all parties of future liability for a release if an increase in risk to human health and safety occurs at a site after issuance of a certificate of completion. The bill would allow sites subject to a Texas Natural Resource Conservation Commission (TNRCC) permit or order to enter the voluntary cleanup program by way of dismissal of a permit or order. The bill would provide for a release of liability for future owners and lenders from the date of a voluntary cleanup agreement. Methodolgy Implementation of the provisions of the bill could result in a cost to the state for further cleanup of remediated sites by TNRCC subject to more stringent requirements by the Environmental Protection Agency (EPA). Also, according to the TNRCC, certain provisions of the bill relating to dismissal of permits and qualifications for the voluntary cleanup program are inconsistent with existing federal requirements, which could result in the loss of delegated federal authority over industrial waste permitting and a loss of federal grant funding, if the bill is implemented. The agency did not provide costs associated with any federal actions or sanctions. 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 Savings/(Cost) from Hazardous and Solid Waste Remediation Fees Account/ GR-Dedicated 0550 1998 $0 1998 (250,000) 2000 (500,000) 2001 (750,000) 2002 (1,000,000) 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. No significant fiscal implication to units of local government is anticipated. Source: Agencies: 582 Natural Resources Conservation Commission LBB Staff: JK ,BB ,MS