LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 87TH LEGISLATIVE REGULAR SESSION April 16, 2021 TO: Honorable Brooks Landgraf, Chair, House Committee on Environmental Regulation FROM: Jerry McGinty, Director, Legislative Budget Board IN RE: HB897 by Reynolds (Relating to the analysis of inspection and maintenance requirements for air quality permits issued by the Texas Commission on Environmental Quality for certain oil and gas facilities.), As Introduced No significant fiscal implication to the State is anticipated. The bill would amend Texas Health and Safety Code to require the Texas Commission on Environmental Quality (TCEQ) to examine rules and requirements concerning certain permits for oil and gas facilities and to prepare a report that addresses issues raised from this examination and suggests options for improving safety, preventing air emissions from oil and gas equipment, and reducing emissions from certain facilities. TCEQ would be required to issue and make available for public comment a preliminary report not later than January 1, 2022, and would be allowed to hold meetings to consider public comment. When preparing the suggested options in the report, TCEQ may consider both regulatory and incentive approaches, and may cooperate with the Railroad Commission in developing the report and obtaining public comment. After considering public comment, if any, but not later than June 1, 2022, TCEQ would be required to post online the final report. The bill would not prevent TCEQ from adopting rules on the issues contained in the study. Local Government ImpactNo significant fiscal implication to units of local government is anticipated. Source Agencies: b > td > 455 Railroad Commission, 582 Commission on Environmental Quality LBB Staff: b > td > JMc, AJL, GDZ LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 87TH LEGISLATIVE REGULAR SESSION April 16, 2021 TO: Honorable Brooks Landgraf, Chair, House Committee on Environmental Regulation FROM: Jerry McGinty, Director, Legislative Budget Board IN RE: HB897 by Reynolds (Relating to the analysis of inspection and maintenance requirements for air quality permits issued by the Texas Commission on Environmental Quality for certain oil and gas facilities.), As Introduced TO: Honorable Brooks Landgraf, Chair, House Committee on Environmental Regulation FROM: Jerry McGinty, Director, Legislative Budget Board IN RE: HB897 by Reynolds (Relating to the analysis of inspection and maintenance requirements for air quality permits issued by the Texas Commission on Environmental Quality for certain oil and gas facilities.), As Introduced Honorable Brooks Landgraf, Chair, House Committee on Environmental Regulation Honorable Brooks Landgraf, Chair, House Committee on Environmental Regulation Jerry McGinty, Director, Legislative Budget Board Jerry McGinty, Director, Legislative Budget Board HB897 by Reynolds (Relating to the analysis of inspection and maintenance requirements for air quality permits issued by the Texas Commission on Environmental Quality for certain oil and gas facilities.), As Introduced HB897 by Reynolds (Relating to the analysis of inspection and maintenance requirements for air quality permits issued by the Texas Commission on Environmental Quality for certain oil and gas facilities.), As Introduced No significant fiscal implication to the State is anticipated. No significant fiscal implication to the State is anticipated. The bill would amend Texas Health and Safety Code to require the Texas Commission on Environmental Quality (TCEQ) to examine rules and requirements concerning certain permits for oil and gas facilities and to prepare a report that addresses issues raised from this examination and suggests options for improving safety, preventing air emissions from oil and gas equipment, and reducing emissions from certain facilities. TCEQ would be required to issue and make available for public comment a preliminary report not later than January 1, 2022, and would be allowed to hold meetings to consider public comment. When preparing the suggested options in the report, TCEQ may consider both regulatory and incentive approaches, and may cooperate with the Railroad Commission in developing the report and obtaining public comment. After considering public comment, if any, but not later than June 1, 2022, TCEQ would be required to post online the final report. The bill would not prevent TCEQ from adopting rules on the issues contained in the study. Local Government Impact No significant fiscal implication to units of local government is anticipated. Source Agencies: b > td > 455 Railroad Commission, 582 Commission on Environmental Quality 455 Railroad Commission, 582 Commission on Environmental Quality LBB Staff: b > td > JMc, AJL, GDZ JMc, AJL, GDZ