LEGISLATIVE BUDGET BOARD
                              Austin, Texas
                                     
                    FISCAL NOTE, 77th Regular Session
  
                              March 26, 2001
  
  
          TO:  Honorable Warren Chisum, Chair, House Committee on
               Environmental Regulation
  
        FROM:  John Keel, Director, Legislative Budget Board
  
       IN RE:  HB3545  by Chisum (Relating to the requirement of
               obtaining a permit for the emission of air contaminants
               for certain facilities and the fees for which such
               facilities are liable.), As Introduced
  
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*  No significant fiscal implication to the State is anticipated.        *
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The bill would require all previously grandfathered facilities in
nonattainment areas to submit a permit application prior to September 1,
2001 or provide notice to shutdown by September 1, 2003.  Previously
grandfathered facilities in attainment areas would be required to submit
a permit application prior to September 1, 2003 or provide notice to
shutdown by September 1, 2005.

The bill would also remove the 4,000 ton per pollutant cap on the
calculation of emission fees beginning September 1, 2001 for all
grandfathered facilities that do not have a permit or a permit pending
with the Texas Natural Resource Conservation Commission (TNRCC). The bill
would double the annual emission fee for emissions less than 4,000 tons
and triple the fee for emissions greater than 4,000 tons.  Certain fees
would not apply to electric generating plants.

Although the changes resulting from the bill's passage would increase the
workload of the TNRCC, it is anticipated that such costs would be
recovered through the assessment of permit fees on newly permitted
facilities and that these costs would not be significant.

Removing the 4,000 ton cap on emissions and doubling and tripling the
emission fees for  grandfathered facilities should not have significant
fiscal implications to the TNRCC.  It is anticipated these facilities
will apply for the appropriate permit before the fees would increase.
  
Local Government Impact
  
No significant fiscal implication to units of local government is
anticipated.
  
  
Source Agencies:   582   Texas Natural Resource Conservation Commission,
                   304   Comptroller of Public Accounts
LBB Staff:         JK, CL, TL