Honorable J. M. Lozano, Chair, House Committee on Environmental Regulation
FROM:
John McGeady, Assistant Director Sarah Keyton, Assistant Director Legislative Budget Board
IN RE:
HB4486 by Thompson, Ed (Relating to the regulation of solid waste facilities; imposing a fee.), As Introduced
Estimated Two-year Net Impact to General Revenue Related Funds for HB4486, As Introduced: a positive impact of $44,000 through the biennium ending August 31, 2021. In addition, there would also be a negative impact of $1,975,912 to General Revenue-Dedicated Water Resource Management Account No. 153 through the biennium.
The bill would make no appropriation but could provide the legal basis for an appropriation of funds to implement the provisions of the bill.
Fiscal Year
Probable Net Positive/(Negative) Impact to General Revenue Related Funds
2020
$22,000
2021
$22,000
2022
$22,000
2023
$22,000
2024
$22,000
Fiscal Year
Probable Revenue Gain/(Loss) from General Revenue Fund 1
Probable Savings/(Cost) from Waste Management Acct 549
Probable Savings/(Cost) from Interagency Contracts 777
Probable Revenue Gain/(Loss) from Interagency Contracts 777
2020
$22,000
($1,003,136)
($472,500)
$472,500
2021
$22,000
($972,776)
($472,500)
$472,500
2022
$22,000
($973,976)
($472,500)
$472,500
2023
$22,000
($975,206)
($472,500)
$472,500
2024
$22,000
($976,466)
($472,500)
$472,500
Fiscal Year
Change in Number of State Employees from FY 2019
2020
6.0
2021
6.0
2022
6.0
2023
6.0
2024
6.0
Fiscal Analysis
The bill would amend the Health and Safety, Water, and Government Codes to make changes and establishes new requirements to the process of applying for and administering a municipal solid waste (MSW) facility permit from the Texas Commission on Environmental Quality (TCEQ).
The bill would authorize TCEQ to assess a new $2,000 fee for an MSW permit. The bill would require TCEQ to ensure an applicant satisfies all statutory requirements and TCEQ rules, including authorizations from local governments and requirements relating to siting in a floodplain prior to approving or allowing special conditions on a MSW permit or permit amendment application. The bill would require TCEQ to confirm information included in an application by performing an inspection of the site or facility before the agency issues or amends a MSW permit.
The bill would require that upon request by a legislative member, a public informational meeting regarding the status of the enforcement action be held in the county in which the facility under enforcement is located. Additionally, the commission is required to post notice of the meeting on the commission's website and publish the notice once a week for two consecutive weeks before the meeting in one or more newspapers having general circulation in the county in which the meeting will be held. The commission is to be reimbursed for the cost of publishing the notice by the owner of the facility under enforcement.
The bill would require TCEQ to review each MSW facility permit application promptly and to issue a notice of deficiency for applications where necessary information is omitted from an application or contains incorrect information. If this information is not provided to TCEQ on or before the 60th day following issuance of the notice then the agency shall dismiss the application.
The bill would establish a new eligibility requirement for administrative law judges (ALJ) at the State Office of Administrative Hearings (SOAH) who preside over cases involving applications for municipal solid waste facilities that they have experience with solid waste engineering or management. The bill would also require these judges to present findings and conclusions of law at an open meeting of TCEQ in cases related to municipal solid waste facility permitting.
Methodology
According to TCEQ, the agency estimates a need for six positions to meet the provisions of this bill that includes 1 Program Specialist III FTE ($42,244 with $14,122 in benefits) and one Program Specialist IV FTE ($45,158 with $15,096 in benefits) to coordinate, schedule, and facilities public meetings and two Program Specialist IV FTEs ($45,158 with $15,096 in benefits) and two Natural Resource Specialist III FTEs ($42,244 with $14,122 in benefits) to prepare for and conduct an estimated 788 meetings each year and to investigate new and conduct current investigations and enforcement activities. This estimate assumes the agency would require an additional vehicle to meet travel obligations for a one-time cost of $27,500 and that half of the 788 meetings would result in a hearing requiring annual travel costs of $97,712 each year. This analysis assumes that $59,451 in fiscal year 2020, $56,591 in fiscal year 2021, $57,791 in fiscal year 2022, $59,021 in fiscal year 2023, and $60,281 in fiscal year 2024 would be necessary for other operating and office related expenses.
The bill would require TCEQ to publish two notices per meeting in each county that has a facility with an unresolved enforcement action in which a state representative or state senator has requested the public informational meeting with the agency being reimbursed for this cost; therefore no significant impact is anticipated from this provision of the bill.
According to TCEQ and the Comptroller of Public Accounts and based on historical permit application submissions, this estimate assumes TCEQ would receive 11 MSW permits each year resulting in an increase of $22,000 deposited to the credit of the General Revenue Fund from the new $2,000 application fee.
This estimate assumes that TCEQ would refer contested MSW permit cases to SOAH. According to SOAH, the agency does not currently employ ALJs with experience in solid waste engineering or management and would need to contract with temporary judges for the purpose of hearing municipal solid waste facility permit cases at an estimated rate of $525 per hour. Based on an analysis of available case data by SOAH, municipal solid waste permit cases require the assignment of two ALJs and 900 billable hours of work per case.
This estimate assumes that SOAH will hear at least one MSW permit case each year with total estimated costs of $472,500 each fiscal year. These costs would be met through General Revenue-Dedicated Waste Management Account funding that would be appropriated to TCEQ and Interagency Contracts that would be appropriated to SOAH. TCEQ would then pay SOAH out of its General Revenue-Dedicated appropriation.
Local Government Impact
According to TCEQ, local and other governmental entities would see an increased cost when submitting applications for a municipal solid waste permit. Local and other governmental entities that have enforcement actions, including violations of Texas Health and Safety Code Chapter 361, would expect to attend quarterly public information meetings and reimburse TCEQ the costs of newspaper publication.
Entities that have violations for public nuisance could expect to have an increase in penalties.
Source Agencies:
360 State Office of Administrative Hearings, 304 Comptroller of Public Accounts, 582 Commission on Environmental Quality