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
          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.

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.
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           
            from Hazardous                                                                                
            and Solid Waste                                                                               
            Remediation Fees                                                                              
       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
               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