LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 77th Regular Session April 12, 2001 TO: Honorable Warren Chisum, Chair, House Committee on Environmental Regulation FROM: John Keel, Director, Legislative Budget Board IN RE: HB1227 by Hamric (Relating to the establishment of a pilot project by the Texas Natural Resource Conservation Commission to examine benefits of offering incentives to regulated entities to install air pollution monitoring devices linked to the commission's data system.), Committee Report 1st House, Substituted ************************************************************************** * Estimated Two-year Net Impact to General Revenue Related Funds for * * HB1227, Committee Report 1st House, Substituted: positive impact * * of $0 through the biennium ending August 31, 2003. * * * * 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 * * 2002 $0 * * 2003 0 * * 2004 0 * * 2005 0 * * 2006 0 * **************************************************** All Funds, Five-Year Impact: *************************************************************************** *Fiscal Probable Savings/(Cost) from Change in Number of State * * Year Clean Air Account/ GR-Dedicated Employees from FY 2001 * * 0151 * * 2002 $(303,163) 3.0 * * 2003 (264,163) 3.0 * * 2004 (264,163) 3.0 * * 2005 (264,163) 3.0 * * 2006 (264,163) 3.0 * *************************************************************************** Technology Impact All costs in this estimate relate to technology acquisition and support. Fiscal Analysis The bill would require the Texas Natural Resource Conservation Commission (TNRCC) to offer incentives to regulated entities that install fenceline and smokestack air pollution monitoring devices to link the devices to the TNRCC's data system. The incentives could include on-site technical assistance, expedited permitting, reduced reporting and record keeping requirements and reduced inspections. Methodology To link regulated entities' live data monitors to the TNRCC's data system, MeteoStar, the system would require upgrading, including additional hub computers and related equipment. It is estimated that such equipment would cost $30,000 in fiscal year 2002, with recurring costs of $15,000 in 2003-2006. It is estimated that an additional 3 FTEs would be required to: provide on-site technical assistance to regulated entities linking to the TNRCC's data system; review and approve quality assurance project plans, procure and deploy equipment and service necessary to upgrade the MeteoStar infrastructure; and handle anticipated increases in data workload. Local Government Impact No significant fiscal implication to units of local government is anticipated. Source Agencies: 582 Texas Natural Resource Conservation Commission LBB Staff: JK, CL, TL