LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 77th Regular Session
March 22, 2001
TO: Honorable Warren Chisum, Chair, House Committee on
Environmental Regulation
FROM: John Keel, Director, Legislative Budget Board
IN RE: HB3420 by Chisum (Relating to the permanent management
of low-level radioactive waste.), As Introduced
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* Estimated Two-year Net Impact to General Revenue Related Funds for *
* HB3420, 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. *
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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:
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*Fiscal Probable Revenue Probable Change in Number of *
* Year Gain/(Loss) from Low Savings/(Cost) from State Employees from *
* Level Waste Account/ Low Level Waste FY 2001 *
* GR-Dedicated Account/ *
* 0088 GR-Dedicated *
* 0088 *
* 2002 $939,869 $(939,869) 7.0 *
* 2003 883,869 (883,869) 7.0 *
* 2004 883,869 (883,869) 7.0 *
* 2005 883,869 (883,869) 7.0 *
* 2006 883,869 (883,869) 7.0 *
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Technology Impact
The cost of acquiring personal computers and related equipment for seven
new positions ($21,000).
Fiscal Analysis
The bill gives Texas Natural Resource Conservation Commission (TNRCC) the
authority to license a permanent management site for low-level
radioactive waste. Permanent management would include disposal or
assured isolation with later conversion of the assured facility for
on-site disposal of waste. It is estimated that TNRCC would require
additional expenses of $939,869 in fiscal year 2002 and $883,869 each
fiscal year thereafter and seven additional positions to implement the
provisions of the bill. All funding would be provided by fees deposited
to GR Account No. 0088, Low-Level Radioactive Waste.
Some of the major provisions of the bill that have fiscal implications
are described below.
The bill requires the permanent management licensee to pay an annual
amount, to be determined by the TNRCC, for perpetual maintenance and care
of the facility after activities under the license has been terminated.
The licensee is eligible for a refund of these payments and the interest
earned on these payments that is in excess of the amount required for
perpetual care and maintenance.
A waste disposal fee would be charged for any radioactive waste delivered
to the site. These fees must be sufficient to allow TNRCC and the
permanent management license holder to recover operating and maintenance
and financial assurance costs, in addition to a reasonable return on
investment. In addition, the rates charged for disposal must be
sufficient to meet future decommissioning, and perpetual care of the
permanent management facility and if applicable the costs of converting
an assured isolation facility to a disposal facility. These fees would
be deposited to General Revenue Account No. 0088 - Low-Level Radioactive
Waste.
A new General Revenue Account - Permanent Management Facility
Decommissioning would be created to receive that portion of waste
disposal fees required for the decommissioning of the facility. TNRCC
would be required to review the account balance each biennium, and if a
balance is reached that would generate sufficient interest income to
decommission the facility within the time frame projected, the
Comptroller will no longer direct waste disposal fees into the new
account. A new General Revenue Account - Assured Isolation Conversion
Account is created to finance the conversion of such a facility to a
disposal facility in the event an assured isolation receives the
permanent license. Like the GR Account - Permanent Management Facility
Decommissioning, TNRCC would be required to review the balance in the
Assured Isolation Account each biennium to determine if the balance would
generate sufficient interest income to decommission the facility within
the time frame projected, and to discontinue directing waste disposal
fees into the new account.
Finally, the bill would authorizes TNRCC to issue bonds to finance the
operation of the permanent management facility in the event that the
TNRCC must operate the facility, as well as bonds to reimburse the
permanent licensee for the costs of constructing the permanent
management facility.
Methodology
The only cost estimates provided are for TNRCC administrative costs.
Because decommissioning and perpetual care costs depend on the type of
facility licensed and the annual amounts of waste disposed, no estimate
of these costs is included in the fiscal note. Similarly, no costs have
been estimated for converting an Assured Isolation facility to a
disposal facility, because it would depend on the conversion design
submitted in the license application for an assured isolation facility.
Local Government Impact
The county in which the facility selected for assured isolation or
disposal is located would be eligible to receive 10 percent of waste
disposal fees for public projects.
Source Agencies: 592 State Soil & Water Conservation Board, 580
Texas Water Development Board, 302 Office of the
Attorney General, 582 Texas Natural Resource
Conservation Commission, 304 Comptroller of Public
Accounts
LBB Staff: JK, CL, ZS