LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 77th Regular Session
March 27, 2001
TO: Honorable David Counts, Chair, House Committee on Natural
Resources
FROM: John Keel, Director, Legislative Budget Board
IN RE: HB2687 by Junell (Relating to the program for the
regulation and remediation of underground and aboveground
storage tanks.), As Introduced
**************************************************************************
* Estimated Two-year Net Impact to General Revenue Related Funds for *
* HB2687, 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. *
**************************************************************************
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 Probable Probable Probable Change in *
* Year Revenue Savings/ Revenue Savings/ Number of *
* Gain/(Loss) (Cost) from Gain/(Loss) (Cost) from State *
* from Petroleum from General Employees *
* Petroleum Storage General Revenue from FY 2001 *
* Storage Tank Revenue Fund *
* Tank Remediation Fund 0001 *
* Remediation Account/ 0001 *
* Account/ GR- *
* GR- Dedicated *
* Dedicated 0655 *
* 0655 *
* 2002 $37,822,000 $772,000 $(772,000) 27.0 *
* $(37,822, *
* 000) *
* 2003 42,664,000 871,000 (871,000) 30.0 *
* (42,664,000) *
* 2004 44,193,000 902,000 (902,000) 31.0 *
* (44,193,000) *
* 2005 45,796,000 935,000 (935,000) 32.0 *
* (45,796,000) *
* 2006 3,960,000 (3,960,000) 81,000 (81,000) 3.0 *
***********************************************************************
Technology Impact
The bill would provide funding to continue 30 of 92 existing positions
that would otherwise be eliminated. As a result, no additional
technology resources are required.
Fiscal Analysis
The bill extends the fee for the petroleum product delivery from March 1,
2002 to September 1, 2005, and continues the reimbursement program for
clean up and remediation of petroleum storage tanks from September 1,
2003 to September 1, 2005.
The bill requires that collection of the petroleum product delivery fee
be suspended when the amount deposited to the Petroleum Storage Tank
Remediation (PSTR) Account No. 0655 exceeds $96.0 million for two
consecutive years.
The bill reduces the amount of fees that can be spent on administrative
costs of the Texas Natural Resource Conservation Commission (TNRCC) from
6.7 to 6.0 percent of revenue collections.
The Water Code, Section 26.3574 provides for an administrative fee equal
to 2 percent of the amount of the petroleum products delivery fee
collected to be deposited to the General Revenue Fund as a charge of
service fee.
Methodology
Based on projections provided by the Comptroller's Office, the fee would
generate an average of $42.6 million per year. Based on this revenue
estimate, an average of $2.6 million per year would be available to the
TNRCC for administrative costs.
Assuming an average cost per clean up of $60,800 per site, it is
estimated that 2,697 sites, or an average of 539 clean ups per year,
could be reimbursed between fiscal years 2002 and 2006. According to the
agency, there are currently 6,167 sites eligible for reimbursement for
cleanup costs.
Since no further revenues are expected to be deposited to the PSTR
Account No. 655 under current law, the bill also would result in
additional receipts to the General Revenue Fund to reimburse the
Comptroller for administrative costs. Based on the 2 percent charge of
service fee provided in the Water Code, the Comptroller would receive an
average of approximately $850,000 per year.
Local Government Impact
No fiscal implication to units of local government is anticipated.
Source Agencies: 304 Comptroller of Public Accounts, 582 Texas
Natural Resource Conservation Commission
LBB Staff: JK, CL, TL, MF, ZS