SB 0750 - Fiscal Note

Fiscal Note - SB 0750 - Certain DNR rules may be no stricter than federal regulations

COMMITTEE ON LEGISLATIVE RESEARCH

OVERSIGHT DIVISION

FISCAL NOTE

L.R. NO. 2977-01

BILL NO. SB 750

SUBJECT: DNR Rules

TYPE: Original

DATE: February 9, 1998

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FISCAL SUMMARY

ESTIMATED NET EFFECT ON STATE FUNDS
FUND AFFECTED	FY 1999	FY 2000	FY 2001
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 1999	FY 2000	FY 2001
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 1999	FY 2000	FY 2001
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 1999	FY 2000	FY 2001
	(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 1999	FY 2000	FY 2001
	(10 Mo.)
Costs - Solid Waste Management Districts	(Unknown)	(Unknown)	(Unknown)
FISCAL IMPACT - Small Business

This proposal could affect small businesses which are subject to DNR rules.

DESCRIPTION

This act provides that certain rules of the Department of Natural Resources and the regulatory commissions within the Department shall not be stricter than applicable federal regulations unless such rules are adopted pursuant to a process established in this act. 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.

The act will affect rulemaking on: solid waste, hazardous waste, underground storage tanks, metallic mineral waste, air pollution and water pollution.

DESCRIPTION (continued)

Rulemaking authority of the Air Conservation Commission is currently subject to a limitation to be no stricter than applicable federal guidelines and standards except for rules pertaining to a State Implementation Plan for attainment of air quality standards under the federal Clean Air Act.

The general rulemaking language in each program is modified to require rules to be promulgated pursuant to chapter 536, RSMo, rather than only section 536.024, RSMo.

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 9, 1998