LEGISLATIVE BUDGET BOARD

Austin, Texas

FISCAL NOTE, 81ST LEGISLATIVE REGULAR SESSION

April 8, 2009

TO:	Honorable Byron Cook, Chair, House Committee on Environmental Regulation
FROM:	John S. O'Brien, Director, Legislative Budget Board
IN RE:	HB2587 by Burnam (Relating to permits issued by the commission.), As Introduced

No significant fiscal implication to the State is anticipated.

The bill would provide that the Texas Commission on Environmental Quality (TCEQ) be prohibited from issuing any permit that does not conform with federal requirements and obligations under the Federal Clean Air Act.

The TCEQ reports that the bill's passage could result in certain air permit authorization mechanisms the agency has added to provide flexibility, such as permits by rule, no longer being available. The agency reports that this could result in as many as 100 facilities being required to obtain new permits at a cost of up to $75,000 each. However, this estimate assumes that any flexible permits issued by the TCEQ would be interpreted as being in compliance with the intent of the Federal Clean Air Act. Therefore, no significant fiscal impact is expected.  

Local Government Impact

If the bill's passage would cause entities with flexible permits, such as permits by rule, to require new facility permits, the cost to local governments could be as high as $75,000 per facility. However, this estimate does not assume that the bill's passage would require applicants complying with current law to need additional permits. Thus, no significant fiscal implication to units of local government is anticipated.

Source Agencies:

582 Commission on Environmental Quality

LBB Staff:

JOB, TL, SD