LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 77th Regular Session
March 20, 2001
TO: Honorable Warren Chisum, Chair, House Committee on
Environmental Regulation
FROM: John Keel, Director, Legislative Budget Board
IN RE: HB3297 by Dukes (Relating to the use of compliance
history information by the Texas Natural Resource
Conservation Commission.), As Introduced
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* Estimated Two-year Net Impact to General Revenue Related Funds for *
* HB3297, As Introduced: negative impact of $(796,624,874) 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 $(436,087,437) *
* 2003 (360,537,437) *
* 2004 (360,537,437) *
* 2005 (360,537,437) *
* 2006 (360,537,437) *
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All Funds, Five-Year Impact:
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*Fiscal Probable Savings/(Cost) from Change in Number of State *
* Year General Revenue Fund Employees from FY 2001 *
* 0001 *
* 2002 $(436,087,437) 6,044.0 *
* 2003 (360,537,437) 6,044.0 *
* 2004 (360,537,437) 6,044.0 *
* 2005 (360,537,437) 6,044.0 *
* 2006 (360,537,437) 6,044.0 *
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Technology Impact
The cost of acquiring personal computers and related equipment for 6,044
additional positions ($18,132,000).
Fiscal Analysis
The bill would require TNRCC to conduct annual compliance inspections of
all permitted facilities; to collect and submit data on violations
committed by repeat offenders; and to produce comparative performance
analysis of data evaluating the performance of the TNRCC and regulated
facilities. In addition, the bill requires TNRCC to develop a method of
performance assessment that differentiates regulated entities based on
compliance history, and creates guidelines for use of compliance history
in permit, compliance and enforcement matters.
Methodology
The cost of performing annual compliance inspections for all permitted
facilities is approximately $436.1 million in the first year and $360.5
million in each fiscal year thereafter. Currently, the TNRCC performs
only 20,000 inspections per year. TNRCC estimates the total number of
permit holders in the state exceeds 220,000. The requirement to conduct
annual compliance inspections of all permit holders statewide would
require the addition of 6,044 positions.
The TNRCC estimates that there would be approximately 38,000 additional
air sites, 69,653 additional waste sites that would need to be inspected
annually in addition to the 20,000 currently inspected.
Finally, due to the size of the increases in dedicated fees required to
fund an annual inspection program for all permitted facilities, it is
assumed that all costs associated with implementing the provisions of
the bill are funded out of the General Revenue Fund.
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, MF