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