SB 0195 - Fiscal Note

Fiscal Note - SB 0195 - Certain DNR rules may be no stricter than federal regulations with exceptions

COMMITTEE ON LEGISLATIVE RESEARCH

OVERSIGHT DIVISION

FISCAL NOTE

L.R. NO.: 0861-01

BILL NO.: SB 195

SUBJECT: DNR Rules

TYPE: Original

DATE: February 22, 1999

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FISCAL SUMMARY

ESTIMATED NET EFFECT ON STATE FUNDS
FUND AFFECTED	FY 2000	FY 2001	FY 2002
General Revenue	(Unknown)	(Unknown)	(Unknown)
DNR Dedicated Funds	(Unknown)	(Unknown)	(Unknown)
Total Estimated Net Effect on All State Funds	(Unknown)	(Unknown)	(Unknown)

ESTIMATED NET EFFECT ON FEDERAL FUNDS
FUND AFFECTED	FY 2000	FY 2001	FY 2002
EPA Federal Funds	(Unknown)	(Unknown)	(Unknown)
Total Estimated Net Effect on All Federal Funds	(Unknown)	(Unknown)	(Unknown)

ESTIMATED NET EFFECT ON LOCAL FUNDS
FUND AFFECTED	FY 2000	FY 2001	FY 2002
Local Government	(Unknown)	(Unknown)	(Unknown)

Numbers within parentheses: ( ) indicate costs or losses

This fiscal note contains 4 pages.

FISCAL ANALYSIS

ASSUMPTION

The Department of Natural Resources assumes when promulgating rules not addressed by federal law, the DNR would be required to prove a significant adverse impact to the public health, welfare, or the environment. DNR rules would have to be based upon reasonably available scientific data, and must, at a minimum include consideration of health, welfare, economics, pollution prevention, and the effectiveness and cost of available control methods. DNR assumes because the interpretation of significant adverse impact and reasonably available scientific data may be broad, the DNR is unable to estimate the fiscal impact of this legislation.

DNR assumes, at a minimum, extensive staff time and resources would be required to document and substantiate (to the level in this legislation) existing rules which are stricter than the federal rule. Depending upon the interpretation of "stricter than" or "comparable to" the department may have up to 160 rules considered "stricter than" federal law. Depending upon the interpretation of the definition of "significant adverse impact" and "reasonably available scientific data" the department estimates it would take between 120 hours and 450 hours per rule to review, document, substantiate, and possibly promulgate revised state rules. DNR assumes it would take approximately 10 FTE (assuming 120 hours per rule) or approximately 40 FTE (assuming 450 hours per rule) to implement this legislation.

In addition, the DNR assumes additional staff time and resources would be required when promulgating new rules. The DNR is unable to determine the number of rules which would be promulgated in later years which would be considered stricter than the federal law.

Also, the DNR is unable to determine the legal costs associated with challenges to existing rules from the passage of this legislation.

Oversight assumes the DNR will be required to conduct some level of review of the estimated 160 rules that may be stricter than federal rules. Oversight assumes after such a review, any necessary rule changes, or deletions could result in unknown savings, costs, or losses of revenue.

Oversight also assumes there could be unknown costs to the Solid Waste Management Districts due to this proposal as the DNR's current rules relating to Solid Waste are could be considered stricter than federal rules.

FISCAL IMPACT - State Government	FY 2000	FY 2001	FY 2002
	(10 Mo.)
GENERAL REVENUE FUND
Costs - DNR
Personal Services	(Unknown)	(Unknown)	(Unknown)
DNR DEDICATED FUNDS
Costs - DNR
Personal Services	(Unknown)	(Unknown)	(Unknown)
FISCAL IMPACT - Local Government	FY 2000	FY 2001	FY 2002
	(10 Mo.)
Solid Waste Management Districts
Costs -	(Unknown)	(Unknown)	(Unknown)
FISCAL IMPACT - Small Business
This proposal could impact small businesses subject to DNR rules.

DESCRIPTION

This act revises rule making authority for the Department of Natural Resources on: solid waste, hazardous waste, underground storage tanks, metallic mineral waste, air pollution and water pollution. The act provides that rules of the Department and the regulatory commissions within the Department shall not be stricter than applicable federal regulations. In an area where federal standards do not exist or are found insufficient to protect public health, welfare or the environment, the Department or Commission may establish rules, based upon substantial evidence on the record after public hearing and a finding that the subject of regulation constitutes a significant adverse impact to public health, welfare or the environment. The Department shall establish procedures and criteria for such rules which consider reasonably available data and consideration of health, welfare, economics, pollution prevention and available control methods.

This legislation is not federally mandated, would not duplicate any other program and would not require additional capital improvements or rental space.

SOURCES OF INFORMATION

Department of Natural Resources

Jeanne Jarrett, CPA

Director

February 22, 1999