LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 77th Regular Session March 19, 2001 TO: Honorable Warren Chisum, Chair, House Committee on Environmental Regulation FROM: John Keel, Director, Legislative Budget Board IN RE: HB3002 by Kitchen (Relating to coal combustion waste.), As Introduced ************************************************************************** * Estimated Two-year Net Impact to General Revenue Related Funds for * * HB3002, 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 Revenue Probable Change in Number of * * Year Gain/(Loss) from Savings/(Cost) from State Employees from * * Waste Management Waste Management FY 2001 * * Account/ Account/ * * GR-Dedicated GR-Dedicated * * 0549 0549 * * 2002 $340,000 $(340,000) 4.0 * * 2003 340,000 (340,000) 4.0 * * 2004 0 0 0.0 * * 2005 0 0 0.0 * * 2006 0 0 0.0 * ************************************************************************** Technology Impact The cost of acquiring personal computers ($12,000) for the four positions required to implement the provisions of the bill. Fiscal Analysis The bill adds coal combustion waste to the definition of hazardous waste. As a result of this legislation, Texas Natural Resource Conservation Commission (TNRCC) may be required to develop and issue hazardous waste permits for the estimated thirty-four coal burning facilities in Texas. Methodology An estimated 4 FTE's, including a geologist and three (3) engineers, and related operating costs are needed to implement the provisions of the bill. These positions would review and process permit applications and modifications, and analyze reports provided by the permitted facilities. It is assumed that the permitting process would be completed in two years, and that once all thirty-four facilities are permitted, the 4 additional FTE's and related operating costs would no longer be needed. Therefore, no costs for this proposed legislation are shown after fiscal year 2003. Limiting the estimated cost of the bill to permitting these facilities is consistent with the proposed bill, which includes no requirements for investigations or inspections of coal burning facilities. The bill does not specifically authorize the collection of waste generation fees. However, it is assumed that the thirty-four permitted facilities would be required to remit a one-time permit application fee of $20,000. These one-time application fees would in turn be used to fund the additional cost associated with permitting the thirty-four coal burning facilities. 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, ZS