80(R) HB 3231 - Introduced version

LEGISLATIVE BUDGET BOARD
Austin, Texas

FISCAL NOTE, 80TH LEGISLATIVE REGULAR SESSION


April 21, 2007

TO:	Honorable Dennis Bonnen, Chair, House Committee on Environmental Regulation

FROM:	John S. O'Brien, Director, Legislative Budget Board

IN RE:	HB3231 by Olivo (Relating to the term of a municipal solid waste permit issued by the Texas Commission on Environmental Quality.), As Introduced

Estimated Two-year Net Impact to General Revenue Related Funds for HB3231, As Introduced: an impact of $0 through the biennium ending August 31, 2009.

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
2008	$0
2009	$0
2010	$0
2011	$0
2012	$0

All Funds, Five-Year Impact:

Fiscal Year	Probable Savings/(Cost) from HAZARDOUS/WASTE FEE ACCT 549	Change in Number of State Employees from FY 2007
2008	($718,712)	9.0
2009	($660,212)	9.0
2010	($660,212)	9.0
2011	($660,212)	9.0
2012	($660,212)	9.0

The bill would provide that municipal solid waste permits and renewals issued by the Texas Commission on Environmental Quality (TCEQ) could not be in effect for more than 10 years. The bill would require the TCEQ to adopt procedures and a schedule as soon as practicable for the renewal of municipal solid waste permits issued before the effective date of this bill. The bill would allow the TCEQ to implement the schedule over any period of time necessary for purposes of administrative feasibility and effectiveness.

According to the TCEQ, there currently are no term limits for municipal solid waste permits. The only time a permit is revisited is when a major amendment is submitted. A ten-year renewal cycle would not change TCEQ responsibilities, but it is expected to substantially increase the agency's workload with respect to municipal solid waste permit application reviews. Although the bill would allow the commission to implement its requirements over any period of time considered necessary for administrative feasibility and effectiveness, this estimate assumes that all municipal solid waste permits would be treated the same to consistently apply the requirements of the bill to all permitees. In addition to application review, the TCEQ would be required to conduct additional public meetings, provide notice of such meetings, and respond to questions and comments.

The TCEQ expects that 80 percent of applications for municipal solid waste permits would require a public meeting and 60 percent would require a contested case hearing. The TCEQ predicts that municipal solid waste permit application reviews would more than triple from an approximate 12 application reviews per year to approximately 43 application reviews, assuming 31 additional permit renewal reviews per year on a 10-year cycle from an overall universe of approximately 315 issued permits.

It is estimated that 9 additional FTEs would be required at the TCEQ to implement the provisions of the bill at a cost of $718,712 in fiscal year 2008, which includes equipment, furniture, and computer acquisition, and $660,212 in future years. This estimate assumes that costs would be paid out of the General Revenue-Dedicated Waste Management Account No. 549.

Additional permit application reviews would also result in additional application review fees being charged to applicants. Given the current fee rate of $150 per application and 43 additional applicants, the bill's passage is expected to result in $6,450 per fiscal year in additional revenue to the Waste Management Account No. 549. This estimate assumes that such a revenue increase would not be a significant gain to the account.

Local Government Impact

Local governments with solid waste disposal permits would incur additional costs in preparing and submitting permit renewal applications and participating in the public hearing process once every 10 years. According to the TCEQ, costs associated with the permit application could range from $250,000 to $1,000,000 for each permit.