LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 77th Regular Session
Revision 1
March 27, 2001
TO: Honorable Warren Chisum, Chair, House Committee on
Environmental Regulation
FROM: John Keel, Director, Legislative Budget Board
IN RE: HB3534 by Puente (Relating to operating permit fees for
air pollutant emissions.), As Introduced
**************************************************************************
* Estimated Two-year Net Impact to General Revenue Related Funds for *
* HB3534, 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 Revenue Gain/(Loss) from *
* Clean Air Account/ GR-Dedicated *
* 0151 *
* 2002 $0 *
* 2003 7,700,000 *
* 2004 6,000,000 *
* 2005 0 *
* 2006 0 *
*****************************************************
Fiscal Analysis
The bill would remove the current 4,000 ton per pollutant cap for air
emissions fee and set a maximum fee rate for the air emissions fee of
$20 per ton for fiscal years 2003 and 2004 only.
Methodology
Although the bill would reduce the Texas Natural Resource Conservation
Commission's (TNRCC) current per ton emissions fee rate from $26 to $20
per ton, the TNRCC estimates that there would be a net gain in fee
revenue of $7.7 million in fiscal year 2003 and $6.0 million in fiscal
year 2004, due to the removal of the 4,000 ton per pollutant cap.
Several state institutions of higher education owning permitted
facilities would be expected to experience some cost savings as a result
of the lower fee per ton of pollutant. However, these savings are not
expected to be significant.
Local Government Impact
It is estimated that two publicly-owned facilities would experience
increased costs in fiscal year 2003 and fiscal year 2004 as a result of
the bill's passage, since those facilities currently exceed the 4,000 per
pollutant cap for at least one pollutant. The City of San Antonio is
expected to experience cost increases for fees at the
Deely/Spruce/Sommers Power Plant of approximately $700,000 per year. The
cities of Bryan, Garland, Greenville and Denton collectively would
experience a net annual cost increase of $138,000 for fees for a facility
owned by the Texas Municipal Power Agency.
Other local governments owning permitted facilities would be expected to
experience cost savings as a result of the lower fee per ton of
pollutant. These savings are not expected to be significant.
Source Agencies: 582 Texas Natural Resource Conservation Commission,
304 Comptroller of Public Accounts
LBB Staff: JK, SD, CL, TL