LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 81ST LEGISLATIVE REGULAR SESSION April 7, 2009 TO: Honorable Rene Oliveira, Chair, House Committee on Ways & Means FROM: John S. O'Brien, Director, Legislative Budget Board IN RE:HB3765 by Paxton (Relating to the use of hazardous and solid waste remediation fee funds for lead-acid battery recycling activities.), As Introduced Estimated Two-year Net Impact to General Revenue Related Funds for HB3765, As Introduced: an impact of $0 through the biennium ending August 31, 2011. The bill would make no appropriation but could provide the legal basis for an appropriation of funds to implement the provisions of the bill.
LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 81ST LEGISLATIVE REGULAR SESSION
April 7, 2009
TO: Honorable Rene Oliveira, Chair, House Committee on Ways & Means FROM: John S. O'Brien, Director, Legislative Budget Board IN RE:HB3765 by Paxton (Relating to the use of hazardous and solid waste remediation fee funds for lead-acid battery recycling activities.), As Introduced
TO: Honorable Rene Oliveira, Chair, House Committee on Ways & Means
FROM: John S. O'Brien, Director, Legislative Budget Board
IN RE: HB3765 by Paxton (Relating to the use of hazardous and solid waste remediation fee funds for lead-acid battery recycling activities.), As Introduced
Honorable Rene Oliveira, Chair, House Committee on Ways & Means
Honorable Rene Oliveira, Chair, House Committee on Ways & Means
John S. O'Brien, Director, Legislative Budget Board
John S. O'Brien, Director, Legislative Budget Board
HB3765 by Paxton (Relating to the use of hazardous and solid waste remediation fee funds for lead-acid battery recycling activities.), As Introduced
HB3765 by Paxton (Relating to the use of hazardous and solid waste remediation fee funds for lead-acid battery recycling activities.), As Introduced
Estimated Two-year Net Impact to General Revenue Related Funds for HB3765, As Introduced: an impact of $0 through the biennium ending August 31, 2011. The bill would make no appropriation but could provide the legal basis for an appropriation of funds to implement the provisions of the bill.
Estimated Two-year Net Impact to General Revenue Related Funds for HB3765, As Introduced: an impact of $0 through the biennium ending August 31, 2011.
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 2010 $0 2011 $0 2012 $0 2013 $0 2014 $0
2010 $0
2011 $0
2012 $0
2013 $0
2014 $0
All Funds, Five-Year Impact: Fiscal Year Probable Savings/(Cost) fromHazardous/Waste Remed Acc550 Probable Revenue Gain fromAll Local Units of Government 2010 ($1,430,000) $715,000 2011 ($1,430,000) $715,000 2012 ($1,430,000) $715,000 2013 ($1,430,000) $715,000 2014 ($1,430,000) $715,000
Fiscal Year Probable Savings/(Cost) fromHazardous/Waste Remed Acc550 Probable Revenue Gain fromAll Local Units of Government 2010 ($1,430,000) $715,000 2011 ($1,430,000) $715,000 2012 ($1,430,000) $715,000 2013 ($1,430,000) $715,000 2014 ($1,430,000) $715,000
2010 ($1,430,000) $715,000
2011 ($1,430,000) $715,000
2012 ($1,430,000) $715,000
2013 ($1,430,000) $715,000
2014 ($1,430,000) $715,000
Fiscal Analysis
The bill would require the Texas Commission on Environmental Quality (TCEQ) to use at least 10 percent of the fees collected on batteries under Health and Safety Code, Section 361.138, for lead-acid battery-related programs. The bill would expand the allowable use of funding for the battery fee revenues to include remediation, promoting recycling, mitigating costs and impacts on local governments, and encouraging innovative technology in lead-acid battery recycling. The bill would limit expenditures on the newly covered types of expenses to 20 percent of fees collected on the sale of batteries. The bill would be effective September 1, 2009.
Methodology
According to the Comptroller's Biennial Revenue Estimate for 2010-11, the Battery Sales Fee, which is deposited to the credit of the General Revenue-Dedicated Hazardous and Solid Waste Remediation Fee Account No. 550, is projected to generate $14,300,000 in each fiscal year 2010 and 2011. Although the bill would not increase revenues generated through the fee, it would allocate 10 to 20 percent of the revenues ($1.4 million to $2.9 million per fiscal year) for lead-acid battery-related programs. TCEQ reports that it does not spend a significant amount of funding on lead-acid battery-related programs. To implement the provisions of the bill, the TCEQ would either need to cut funding for other programs funded out of the Hazardous and Solid Waste Remediation Account No. 550, which is mainly the Superfund hazardous waste cleanup program, or receive increased appropriations to comply with the provisions of the bill. This estimate assumes the TCEQ would receive additional appropriations to implement the program at a level equal to 10 percent of the annual revenue stream of the Battery Sales Fee, or $1.4 million per fiscal year, to implement the provisions of the bill. This estimate assumes that the TCEQ would use existing staff to administer the program and that 50 percent of the funds would be used on contracts to remediate contamination from batteries and promote recycling and innovative technology, with the remaining 50 percent passed through to local governments.
According to the Comptroller's Biennial Revenue Estimate for 2010-11, the Battery Sales Fee, which is deposited to the credit of the General Revenue-Dedicated Hazardous and Solid Waste Remediation Fee Account No. 550, is projected to generate $14,300,000 in each fiscal year 2010 and 2011. Although the bill would not increase revenues generated through the fee, it would allocate 10 to 20 percent of the revenues ($1.4 million to $2.9 million per fiscal year) for lead-acid battery-related programs.
TCEQ reports that it does not spend a significant amount of funding on lead-acid battery-related programs. To implement the provisions of the bill, the TCEQ would either need to cut funding for other programs funded out of the Hazardous and Solid Waste Remediation Account No. 550, which is mainly the Superfund hazardous waste cleanup program, or receive increased appropriations to comply with the provisions of the bill.
This estimate assumes the TCEQ would receive additional appropriations to implement the program at a level equal to 10 percent of the annual revenue stream of the Battery Sales Fee, or $1.4 million per fiscal year, to implement the provisions of the bill. This estimate assumes that the TCEQ would use existing staff to administer the program and that 50 percent of the funds would be used on contracts to remediate contamination from batteries and promote recycling and innovative technology, with the remaining 50 percent passed through to local governments.
Local Government Impact
This estimate assumes that local governments would be the recipients of 50 percent of the funds provided for lead-acid battery-related programs, or $715,000 per fiscal year as shown in the table above.
Source Agencies: 582 Commission on Environmental Quality
582 Commission on Environmental Quality
LBB Staff: JOB, MN, ZS, TL
JOB, MN, ZS, TL