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