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 ************************************************************************** * 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. * ************************************************************************** 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) * **************************************************** All Funds, Five-Year Impact: *************************************************************************** *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 * *************************************************************************** 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