LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE
75th Regular Session
February 27, 1997
TO: Honorable J.E. "Buster" Brown, Chair IN RE: Senate Bill No. 635, Committee Report 1st House
Committee on Natural Resources By: Brown
Senate
Austin, Texas
FROM: John Keel, Director
In response to your request for a Fiscal Note on SB635 ( Relating
to the use of money in the oil-field cleanup fund to conduct
a site investigation or environmental assessment and to the
recovery of costs incurred for that purpose.) this office has
detemined the following:
Biennial Net Impact to General Revenue Funds by SB635-Committee Report 1st House
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 amend provision in the Natural Resources Code
relating to the use of funds in the Oil-field Cleanup Fund (Fund
145) by the Railroad Commission. The bill would provide specific
authority to conduct site investigations or environmental assessments
to evaluate the extent of contamination caused by oil and gas
wastes or other substances. The bill would also allow the Railroad
Commission to recoup expenditures for such investigations and
assessments from the responsible party.
Methodolgy
The Railroad Commission already conducts site investigations
and environmental assessments as part of the oil-field cleanup
program (funded with the Oil-field Cleanup Fund 145). This
bill would provide the agency with statutory authority to be
reimbursed for these costs from responsible parties. Annual
expenditures for site investigations and environmental assessments
were determined; the percent of investigations and assessments
where costs could be recovered was estimated and is shown as
revenue to the Oil-field Cleanup Fund. The costs of implementing
provisions in the bill could be absorbed by existing staff.
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 Revenue Change in Number
Gain/(Loss) from of State
Oil-Field Employees from
Cleanup Account/ FY 1997
GR-Dedicated
0145
1998 $75,000 0.0
1998 75,000 0.0
2000 75,000 0.0
2001 75,000 0.0
2002 75,000 0.0
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.
Source: Agencies:
LBB Staff: JK ,BB