LEGISLATIVE BUDGET BOARD
                              Austin, Texas
                                     
                    FISCAL NOTE, 76th Regular Session
  
                              March 21, 1999
  
  
          TO:  Honorable Warren Chisum, Chair, House Committee on
               Environmental Regulation
  
        FROM:  John Keel, Director, Legislative Budget Board
  
       IN RE:  HB2134 by Solomons (Relating to the location of concrete
               batch plants.), As Introduced
  
**************************************************************************
*  Estimated Two-year Net Impact to General Revenue Related Funds for    *
*  HB2134, As Introduced:  positive impact of $0 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                                   $0  *
          *       2001                                    0  *
          *       2002                                    0  *
          *       2003                                    0  *
          *       2004                                    0  *
          ****************************************************
  
All Funds, Five-Year Impact:
  
         *****************************************************
         * Fiscal Year   Probable Savings/(Cost) from State   *
         *                          Highway Fund              *
         *                              0006                  *
         *      2000                            $(13,461,347) *
         *      2001                             (13,461,347) *
         *      2002                             (13,461,347) *
         *      2003                             (13,461,347) *
         *      2004                             (13,461,347) *
         *****************************************************
  
Fiscal Analysis
  
The bill would prohibit locating new concrete batch plants within two
miles of an inhabited residential area or a school which could prevent
siting of new batch plants in urban areas.  This could require concrete
used for construction in urban areas to be transported from outlying
areas.

The bill would impact large concrete paving projects (over 80,000 square
yards) by the Texas Department of Transportation (TXDOT) where
contractors assemble concrete batch plants on-site.
  
  
Methodology
  
Large concrete paving projects undertaken by TXDOT would experience an
increase in construction costs due to increased travel costs associated
with transporting cement between a concrete paving project site and the
batch plant.  Based on 1998 actual data when TXDOT had large paving
projects totaling over 4 million cubic yards, it is estimated that the
increase in annual costs to TXDOT could be $13.5 million.

There could be future fiscal implications to certain state agencies
related to higher construction costs as new concrete batch plants would
have to be located away from urban areas.  The increased costs would
depend on the amount of concrete used and the distance traveled from the
concrete batch plants to the construction sites.
  
  
Local Government Impact
  
Local governments could see gradual increases in cement costs in areas of
the state where population density prevents the siting of future plants
to meet demand, thus requiring cement to be obtained from sources
located at greater distances from the purchaser and consequently result
in higher transportation costs.
  
  
Source Agencies:   
LBB Staff:         JK, DE, NS