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 ************************************************************************** * 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. * ************************************************************************** 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 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 * ************************************************************************** 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