LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 76th Regular Session
March 23, 1999
TO: Honorable David Counts, Chair, House Committee on Natural
Resources
FROM: John Keel, Director, Legislative Budget Board
IN RE: HB2816 by Junell (Relating to the fee on delivery of
certain petroleum products and the termination of the
petroleum storage tank program.), As Introduced
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* Estimated Two-year Net Impact to General Revenue Related Funds for *
* HB2816, 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. *
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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 Probable Probable Change in *
* Year Revenue Savings/(Cost) Savings/(Cost) Number of State *
* Gain/(Loss) from Hazardous from Petroleum Employees from *
* from Petroleum and Solid Waste Storage Tank FY 1999 *
* Storage Tank Fees Account/ Remediation *
* Remediation GR-Dedicated Account/ *
* Account/ 0549 GR-Dedicated *
* GR-Dedicated 0655 *
* 0655 *
* 2000 $(73,090,987) $3,236,380 $0 (50.0) *
* 2001 (73,090,987) 3,236,380 0 (50.0) *
* 2002 0 3,236,380 (73,090,987) (50.0) *
* 2003 0 3,236,380 (73,090,987) (50.0) *
* 2004 0 0 0 0.0 *
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Technology Impact
The Texas Natural Resource Conservation Commission (TNRCC) would no
longer need the personal computers associated with the reduction of 50
FTEs.
Fiscal Analysis
The bill would reduce by half the fees assessed and collected on bulk
delivery of petroleum products, effective September 1, 1999.
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 September 1, 2001.
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 fifty percent reduction in revenue
collections due to the fifty percent reduction in fees assessed and
collected, it is estimated that annual revenues would be reduced by $73
million.
The bill would prohibit fee collections as of September 1, 2001, allowing
no additional revenues to be deposited to the PSTR Account. The
extension of the expiration date of the PSTR program to August 31, 2003,
however, is estimated to result in annual reimbursements out of the PSTR
Account of $73 million in fiscal years 2002 and 2003.
Funding for the administration of the PST program is based on a
percentage of the petroleum product delivery fee revenue collected.
These amounts are transferred to the Hazardous and Solid Waste Fees
Account-0549. TNRCC estimates current annual administration costs to be
$6.47 million. A fifty percent reduction in fee revenue is estimated to
result in a reduction of $3.24 million and 50 FTEs for the
administration of the PST program.
Local Government Impact
No significant fiscal implication to units of local government is
anticipated.
Source Agencies:
LBB Staff: JK, DE, NS