LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 76th Regular Session March 13, 1999 TO: Honorable Gary Walker, Chair, House Committee on Land & Resource Management FROM: John Keel, Director, Legislative Budget Board IN RE: HB1287 by Hilderbran (Relating to the approval of certain permit applications by state and local governments.), As Introduced ************************************************************************** * Estimated Two-year Net Impact to General Revenue Related Funds for * * HB1287, As Introduced: negative impact of $(10,242,136) 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 Impact: **************************************************** * Fiscal Year Probable Net Positive/(Negative) * * Impact to General Revenue Related * * Funds * * 2000 $(5,822,635) * * 2001 (4,419,501) * * 2002 (4,419,501) * * 2003 (4,419,501) * * 2004 (4,419,501) * **************************************************** 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 $(5,822,635) 88.5 * * 2001 (4,419,501) 74.5 * * 2002 (4,419,501) 74.5 * * 2003 (4,419,501) 74.5 * * 2004 (4,419,501) 74.5 * *************************************************************************** Technology Impact The Railroad Commission (RRC) projects that $1,066,326 would be necessary for programming and personnel costs for fiscal year 2000 and $55,793 each fiscal year thereafter. Fiscal Analysis The bill would require regulatory agencies to consider the approval, disapproval, or conditional approval of an application for a permit solely on the basis of any orders, regulations, ordinances, rules, expiration dates, or other properly adopted requirements that were in effect at the time the original application for the permit was filed. If a series of permits is required for a project, the requirements in effect at the time the original permit application was filed must be the sole consideration for all subsequent permits required for the project. All permits required for a project would be considered a single series of permits. The bill would apply to projects in progress on or commenced after September 1, 1987. The provisions of the bill provide for several exemptions. Methodology Several regulatory agencies responded that no significant fiscal impact would be incurred in carrying out the provisions of the bill. The RRC estimates that the bill would have the greatest impact on wells permitting since it could apply to permits which were issued as long as 60 years ago. Other areas affected would include oil and gas waste haulers. The Railroad Commission has not identified additional revenue because most actions/requests do not require payment of a fee and there is no authority to charge additional amounts. Local Government Impact Locals could incur some additional administrative costs, however these costs are not anticipated to be significant. Source Agencies: LBB Staff: JK, DE, MF, SG