COMMITTEE ON LEGISLATIVE RESEARCH

OVERSIGHT DIVISION



FISCAL NOTE



L.R. NO.: 4477-01

BILL NO.: SB 995

SUBJECT: Motor Vehicle Emissions Inspection Program

TYPE: Original

DATE: February 28, 2000




FISCAL SUMMARY



ESTIMATED NET EFFECT ON STATE FUNDS
FUND AFFECTED FY 2001 FY 2002 FY 2003
None $0 $0 $0
Total Estimated

Net Effect on All

State Funds

$0 $0 $0



ESTIMATED NET EFFECT ON FEDERAL FUNDS
FUND AFFECTED FY 2001 FY 2002 FY 2003
None $0 $0 $0
Total Estimated

Net Effect on All

Federal Funds

$0 $0 $0



ESTIMATED NET EFFECT ON LOCAL FUNDS
FUND AFFECTED FY 2001 FY 2002 FY 2003
Local Government $0 $0 $0

Numbers within parentheses: ( ) indicate costs or losses.

This fiscal note contains 4 pages.

FISCAL ANALYSIS



ASSUMPTION



Officials from the Department of Economic Development - Division of Motor Carrier and Railroad Safety, the Department of Health, the Office of State Courts Administrator, the Missouri State Highway Patrol and the Office of the Attorney General assume their agencies would not be fiscally impacted by this proposed legislation.



Officials from the Office of Administration - Division of Budget and Planning assume their agency would not be fiscally impacted by this proposed legislation. However, they noted that this proposal may impact total state revenue.



Officials from the Department of Revenue assume that under the proposed legislation the Motor Vehicle Bureau will incur expenses for form, postage and procedure changes to the Central Office and Field Offices; however, this impact is anticipated to be minimal and can be handled with existing resources.



Officials from the Department of Natural Resources assume the proposed legislation gives the Missouri Air Conservation Commission the authority to temporarily suspend motor vehicle emission inspections if substantial problems exist that would inconvenience motor vehicles. Since this is just authorizing legislation and not requiring the commission to act, the Department will not be impacted by this legislation.



Officials from the Department of Transportation (MoDOT) assume the enhanced vehicle emissions inspection program is required in the St. Louis non-attainment area. The program is part of the State Implementation Plan (SIP) agreed upon by Missouri and the EPA. Suspension of this program, a main staple of the Clean Air Act compliance in St. Louis, may result in Federal Highway Administration (FHWA) and EPA declaring the area to be non-conforming. This means that federal funds could be withheld in the area until conformance either through reinstatement of the program or through alternative measures of equal or better emissions reduction value being instituted in the region.



If the FHWA and EPA declare the St. Louis area as non-compliant, the amounts that could be withheld are $181,800,000 in FY01, $174,000,000 in FY02, and unknown in FY03 since the federal appropriations have not been established for FY03. These amounts equal total federal money lost to the state, not just MoDOT's loss in the St. Louis area. However, MoDOT officials do not know what the exact penalty for non-compliance would be; the FHWA and EPA could make a ruling to withhold all of the related funding or they could be lenient and give the state extra time to modify the system or some other. Therefore, a range is listed as the impact; $0 to ASSUMPTION (continued)



$181,800,000 in FY01, $0 to $174,000,000 in FY02 and $0 to unknown in FY03.



Officials from MoDOT noted that the Clean Air Act mandates reductions in VOC emissions and the state's inspection and maintenance (I/M) program is critical to the state achieving these reductions. This legislation could possibly negatively impact such reductions if EPA disapproves the I/M program because of the provisions relating to the "suspension of the program if there is a motorist inconvenience".





FISCAL IMPACT - State Government FY 2001

(10 Mo.)

FY 2002 FY 2003
$0 $0 $0





FISCAL IMPACT - Local Government FY 2001

(10 Mo.)

FY 2002 FY 2003
$0 $0 $0



FISCAL IMPACT - Small Business



No direct fiscal impact to small businesses would be expected as a result of this proposal.



DESCRIPTION



This proposal allows the Missouri Air Conservation Commission to temporarily suspend the motor vehicle emissions inspection program established under Chapter 643, RSMo upon determining that operational failures or problems exist which would cause substantial inconvenience to motor vehicle owners if the program were to continue operation without revisions to one or more elements of the program. Such suspension shall become effective no

later than thirty days following such determination. During the suspension, no motor vehicle

registration of a vehicle required to be inspected and approved pursuant to sections 643.300 to 643.360 shall be denied on the basis of failure to have the vehicle inspected and approved pursuant to the aforementioned sections.



This proposal contains an emergency clause.



DESCRIPTION (continued)



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 Economic Development

Division of Motor Carrier and Railroad Safety

Department of Health

Department of Natural Resources

Department of Revenue

Department of Transportation

Missouri State Highway Patrol

Office of Administration

Division of Budget and Planning

Office of the Attorney General

Office of State Courts Administrator



NOT RESPONDING: City of St. Louis, St. Louis County - Director of Administration; St. Charles County Executive; County Commissioner of Jefferson County











Jeanne Jarrett, CPA

Director

February 28, 2000