LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 76th Regular Session March 22, 1999 TO: Honorable Ron Lewis, Chair, House Committee on Energy Resources FROM: John Keel, Director, Legislative Budget Board IN RE: HB480 by Seaman (Relating to notice and hearing for an application for a permit for a land treatment or other disposal facility.), As Introduced ************************************************************************** * Estimated Two-year Net Impact to General Revenue Related Funds for * * HB480, As Introduced: negative impact of $(641,946) through the * * biennium ending August 31, 2001. * * * * The bill would make no appropriation but could provide the legal * * basis for an appropriation of funds to implement the provisions of * * the bill. * ************************************************************************** General Revenue-Related Funds, Five-Year Net Impact: **************************************************** * Fiscal Year Probable Net Positive/(Negative) * * Impact to General Revenue Related * * Funds * * 2000 $(320,973) * * 2001 (320,973) * * 2002 (320,973) * * 2003 (320,973) * * 2004 (320,973) * **************************************************** All Funds, Five-Year Impact: *************************************************************************** *Fiscal Probable Savings/(Cost) from Change in Number of State * * Year General Revenue Fund Employees from FY 1999 * * 0001 * * 2000 $(320,973) 5.0 * * 2001 (320,973) 5.0 * * 2002 (320,973) 5.0 * * 2003 (320,973) 5.0 * * 2004 (320,973) 5.0 * *************************************************************************** Fiscal Analysis The bill would require that applicants for a permit to land treat or land spread oil and gas waste publish notice of the application in a newspaper of general circulation in the county where the proposed treatment would take place. The Railroad Commission (RRC) would be required to hold a public hearing in the county where the proposed treatment would take place if requested prior to the RRC's determination on the application. Methodology The RRC assumes that the bill pertains to both commercial and non-commercial permit applicants, estimated to total 750 annually, of which 728 would be non-commercial. The RRC currently does not regulate non-commercial applicants. It is projected that one-fourth of the permits would require a public hearing. The RRC anticipates that funding for additional FTEs and travel would be needed to conduct the requested hearings. No additional costs were assumed for changes to rules, anticipated increases in the number of phone calls related to hearings, or copying additional transcripts for contested case hearings. Local Government Impact No fiscal implication to units of local government is anticipated. Source Agencies: LBB Staff: JK, DE, MF