LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 76th Regular Session
May 13, 1999
TO: Honorable J.E. "Buster" Brown, Chair, Senate 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 programs for corrective
actions in response to releases from petroleum storage
tanks), Committee Report 2nd House, as amended
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* Estimated Two-year Net Impact to General Revenue Related Funds for *
* HB2816, Committee Report 2nd House, as amended: 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 not to exceed
6.7 percent of the gross receipts of the Petroleum Storage Tank
Remediation Account- 0655 (PSTR Account). 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 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 Texas Natural Resource Conservation Commission's (TNRCC) 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 in fiscal years 2000-01
is estimated to be at current annual administration program costs of
$7.3 million from the Hazardous and Solid Waste Fees Account-0549. The
bill would extend the expiration date of the PST program by two years
until the end of fiscal year 2003. Administrative program costs 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: 304 Comptroller of Public Accounts, 582 Natural
Resource Conservation Commission
LBB Staff: JK, DE, NS