LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 77th Regular Session
April 10, 2001
TO: Honorable Warren Chisum, Chair, House Committee on
Environmental Regulation
FROM: John Keel, Director, Legislative Budget Board
IN RE: HB3117 by Edwards (Relating to reducing air pollution
caused by particulates from aggregate stockpiles and rock
crushing machines.), As Introduced
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* Estimated Two-year Net Impact to General Revenue Related Funds for *
* HB3117, 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 Year Probable Savings/(Cost) from State *
* Highway Fund *
* 0006 *
* 2002 $(24,230,950) *
* 2003 (24,230,950) *
* 2004 (24,230,950) *
* 2005 (24,230,950) *
* 2006 (24,230,950) *
*****************************************************
Fiscal Analysis
The bill would amend the Health and Safety Code by requiring the Texas
Natural Resource Conservation Commission (TNRCC) to adopt rules,
guidelines, and procedures consistent with guidelines and procedures
adopted by the United States Environmental Protection Agency to require
persons who stockpile aggregates to saturate the aggregates with water to
reduce the amount of particulate matter released from the stockpiled
aggregates.
The bill would also require TNRCC to adopt rules requiring that portable
rock crushers be located at least one mile away from any recreational
area, residence or other structure occupied by a person other than the
owner of the rock crusher. In addition, aggregate, rock and gravel piles
maintained near a rock crusher cannot exceed 15 feet in height.
The bill would take effect immediately upon receiving a two-thirds
majority vote in both houses; otherwise, the bill would take effect
September 1, 2001.
Methodology
The Texas Department of Transportation (TxDOT) estimates that
approximately 14.6 million tons of flexible base, 10.4 million tons of
hot mix, 4.5 million cubic yards of concrete, and 3.1 million tons of
seal coat would be affected by the watering requirements each year.
TxDOT estimates approximately half of the aggregate stockpiles would
require additional watering and that costs would increase by 50 cents per
unit of material totaling approximately $8.2 million per year. In
addition, TxDOT estimates that Hot Mix costs would increase by $1.50 per
ton totaling approximately $7.8 million per year.
TxDOT also estimates that the bill would require rock crushers, in some
instances, to be located at greater distances from construction project
sites and that this would increase costs associated with highway
improvement projects. The increased costs to TxDOT would be reflected in
higher prices in contractor bids for projects that require the operation
and use of portable rock crushing machines.
Assuming the bill would require only portable temporary crushing
operations to be located a minimum of 1 mile from specified areas, TxDOT
estimates that this would affect approximately five percent of the volume
of aggregate that is produced for TxDOT. The cost increase would be
realized due to an increase in travel distance between the project and
the rock crushing equipment. It is estimated that the bill would add a
cost of approximately $5 to five percent of the following items: cubic
yard of concrete mix, ton of hot mix, and ton of flex base. Based on the
usage of such items in fiscal year 2000, TxDOT estimates that the bill
would increase costs to the agency by a total of approximately $8.2
million per year.
The bill is not estimated to result in any significant fiscal
implications to the TNRCC.
Local Government Impact
It is estimated that local units of government engaged in road
construction would experience similar cost increases of $5.00 per cubic
yard of concrete mix, ton of hot mix, and ton of flex base for an
estimated 5 percent of the volume of aggregate used; of 50 cents per
unit of material for watering costs; and of $1.50 per ton for hot mix
costs.
Source Agencies: 582 Texas Natural Resource Conservation Commission,
601 Texas Department of Transportation
LBB Staff: JK, CL, RT, MW, DW, DB, TL