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 ************************************************************************** * No significant fiscal implication to the State is anticipated. * ************************************************************************** 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