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
  
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*  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