LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 77th Regular Session
March 26, 2001
TO: Honorable Warren Chisum, Chair, House Committee on
Environmental Regulation
FROM: John Keel, Director, Legislative Budget Board
IN RE: HB2134 by Chisum (Relating to the regulation of motor
vehicle emissions; providing penalties.), As Introduced
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* Estimated Two-year Net Impact to General Revenue Related Funds for *
* HB2134, As Introduced: 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. *
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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:
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*Fiscal Probable Revenue Probable Change in Number of *
* Year Gain/(Loss) from Savings/(Cost) from State Employees from *
* Clean Air Account/ Clean Air Account/ FY 2001 *
* GR-Dedicated GR-Dedicated *
* 0151 0151 *
* 2002 $6,238,176 $(6,238,176) 3.0 *
* 2003 16,404,176 (16,404,176) 3.0 *
* 2004 17,304,176 (17,304,176) 3.0 *
* 2005 16,414,176 (16,414,176) 3.0 *
* 2006 15,814,176 (15,814,176) 3.0 *
**************************************************************************
Technology Impact
The Texas Natural Resource Conservation Commission (TNRCC) would require
computers for additional FTEs required by the bill at a total cost of
$9,000 in fiscal year 2002.
Fiscal Analysis
The bill would create a Low-Income Vehicle Repair Assistance and
Accelerated Vehicle Retirement Program within the Texas Natural Resource
Conservation Commission's (TNRCC's) inspection and maintenance (I/M)
program.
A county would be authorized to participate in the program, but
participation would not be mandatory. The program would be funded with
fees collected from vehicle emissions-related inspections. The TNRCC
would have the flexibility to set fee rates by vehicle type or by county.
Revenue collected from the fee would be distributed back to the
counties by the TNRCC in reasonable proportion to the collections by
county or regions in which those counties are located. Counties would
use the funds to assist low-income individuals with repairs relating to
bringing vehicles into compliance with emissions requirements and
replacing vehicles for which repair would not be cost-effective.
The TNRCC, the Texas Department of Transportation (TxDOT), and the Public
Safety Commission would establish incentives for those counties likely
to exceed federal clean air standards to implement Motor Vehicle
Emissions Inspection and Maintenance Program and Low-Income Vehicle
Repair and Accelerated Vehicle Retirement Program. A qualified county
would be designated as a "Clean Air County" and would be given preference
in any federal or state clean air grant program.
The bill would create an account in the General Revenue Fund for the
deposit of administrative penalties received by persons violating laws
relating to emissions testing and excessive motor vehicle emissions for
use by the Department of Public Safety.
Methodology
It is expected that all counties currently subject to emissions testing
requirements (Collin, Dallas, Denton, Harris and Tarrant) would
participate in the programs beginning in May 2002. It is expected that
the following other counties in areas in nonattainment for the federal
ozone standard would begin participating in May 2003: Brazoria, Ellis,
Fort Bend, Galveston, Johnson, Kaufman, Montgomery, Parker and Rockwall.
The TNRCC estimates that approximately 15,200 vehicles would be eligible
for repair assistance in the first full fiscal year of the program at an
average cost of $600 per vehicle, for an annual cost of $9.1 million. The
TNRCC estimates that approximately 7,200 vehicles would be eligible for
accelerated vehicle retirement annually at an average cost of $1,000 per
vehicle, for a total annual cost of $7.2 million. Total vehicles eligible
for repair or retirement would increase as additional counties would
join the program, but costs are expected to decrease starting in 2005
because fewer vehicles needing repairs would remain.
It is estimated that the TNRCC would require three additional FTEs to
implement the requirements of the bill. These FTEs would be required to
establish and update program eligibility requirements and repair and
replacement cost limits; manage contracts and grants to counties; and
conducting program accounting and auditing. Administrative costs to the
TNRCC, , including employee benefits costs, are estimated at $218,176 in
fiscal year 2002 and $194,176 in fiscal years 2003-2006.
The costs to TNRCC associated with implementing the bill would be covered
by new revenues generated by an increase to the vehicle emissions
inspections fee. Although the fee could vary by county, this estimate
assumes that all automobiles registered in each of the participating
counties would pay an additional $8.50 per year in fiscal years 2002
through 2004. The fee would be gradually reduced beginning in 2005 as the
demand for program assistance would decrease.
No significant fiscal implications are anticipated for the Texas
Department of Transportation or the Department of Public Safety to
implement the provisions of the bill.
Some state agencies owning or leasing motor vehicles in participating
counties could experience increased costs due to expected increases in
the vehicle emissions inspections fee, but these costs are not expected
to be significant.
The amount of revenue expected to be deposited into the new general
revenue account created by the bill for administrative penalties
associated with vehicle emissions is not expected to be significant.
Local Government Impact
Counties participating in the program would receive proceeds of the
program funding in proportion to the amount of fees collected in each
county, with up to 10 percent of the amount each county receiving being
available to be used for administration of the programs. Participating
counties are expected to receive grants totaling $6.0 million in 2002,
increasing to $17.1 million by 2004 and decreasing to $15.6 million in
2006. It is expected that 90 percent of these amounts would be used to
provide assistance to individuals, with the remaining 10 percent used to
cover counties' administrative costs. The amount each participating
county would receive would depend on the vehicle emissions inspection fee
being charged in that county and the number of vehicles inspected.
Local governments owning or leasing motor vehicles in participating
counties could experience increased costs due to expected increases in
the vehicle emissions inspections fee, but these costs are not expected
to be significant.
Source Agencies: 405 Texas Department of Public Safety, 501 Texas
Department of Health, 601 Texas Department of
Transportation, 582 Texas Natural Resource
Conservation Commission, 304 Comptroller of Public
Accounts
LBB Staff: JK, CL, TL