LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 76th Regular Session
April 5, 1999
TO: Honorable David Counts, Chair, House Committee on Natural
Resources
FROM: John Keel, Director, Legislative Budget Board
IN RE: HB 2816 by Junell (relating to the fee on delivery of
certain petroleum products and the termination of the
petroleum storage tank program), Committee Report 1st
House, Substituted
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* Estimated Two-year Net Impact to General Revenue Related Funds for *
* HB2816, Committee Report 1st House, Substituted: 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. *
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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:
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*Fiscal Probable Revenue Probable Probable *
* Year Gain/(Loss) from Savings/(Cost) from Savings/(Cost) from *
* Petroleum Storage Petroleum Storage Hazardous and Solid *
* Tank Remediation Tank Remediation Waste Fees Account/ *
* Account/ Account/ GR-Dedicated *
* GR-Dedicated GR-Dedicated 0549 *
* 0655 0655 *
* 2000 $(36,545,494) $0 $0 *
* 2001 (36,545,494) 0 0 *
* 2002 55,914,606 (62,481,101) (7,309,099) *
* 2003 0 (62,481,101) (7,309,099) *
* 2004 0 0 0 *
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Fiscal Analysis
The bill would reduce by 25 percent the fees assessed and collected on
bulk delivery of petroleum products, effective September 1, 1999. The
bill would restrict administrative expenses to an amount specifically
appropriated by the Legislature. The bill would reduce the amount of
unobligated fund balance at which fee collection would cease to $100
million from $125 million.
The bill would extend the expiration date of the Petroleum Storage Tank
program (PST program) from September 1, 2001 to September 1, 2003,
allowing the continuation of reimbursements from the Petroleum Storage
Tank Remediation Account-0655 (PSTR Account) to August 31, 2003. The
bill would, however, prohibit fee collections as of March 1, 2002.
Methodology
The fees collected on bulk delivery of petroleum products are deposited
in the TNRCC's PSTR Account. Annual revenue from these fees is estimated
to be $146 million. Assuming a twenty-five percent reduction in revenue
collections due to the twenty-five percent reduction in fees assessed
and collected, it is estimated that annual revenues would be reduced by
$36.5 million. The bill would prohibit fee collections as of March 1,
2002 allowing six months of collections in the amount of $55.9 million in
fiscal year 2002.
The extension of the expiration date of the PSTR program to August 31,
2003, is estimated to result in annual reimbursements out of the PSTR
Account of $62.5 million in fiscal years 2002 and 2003.
Funding for the administration of the PST program would be based on
legislative appropriations. The TNRCC estimates receiving
appropriations in fiscal years 2000-01 at current annual administration
program costs of $7.3 million from the Hazardous and Solid Waste Fees
Account-0549. This bill would extend the expiration date of the PST
program by two years until the end of fiscal year 2003. Administrative
program costs, to be appropriated by the Legislature, are assumed to
continue at the same levels in fiscal years 2002-03 until the program
expires.
Local Government Impact
No significant fiscal implication to units of local government is
anticipated.
Source Agencies:
LBB Staff: JK, DE, NS