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OMB COST ESTIMATE
FOR PAY-AS-YOU-GO CALCULATIONS

Report No: 569
Date: 01/25/2002

  1. LAW NUMBER: P.L.107-118 (H.R. 2869)

  2. BILL TITLE: Small Business Liability Relief & Brownfields Revitalization Act

  3. BILL PURPOSE: Amends the Comprehensive Environmental Response, Compensation and Liability Act of 1980 to: (1) provide liability relief to small businesses; and (2) promote the cleanup and reuse of abandoned industrial sites known as "brownfields".

    4.  

  4. OMB ESTIMATE: P.L. 107-118 would limit the liability for clean-up costs of small businesses and businesses that have disposed of small amounts of hazardous materials at a Superfund site. OMB estimates that this would reduce offsetting receipts by negligible amounts.
    5. (Fiscal years; in millions of dollars)
    2001 2002 2003 2004 2005 2006
    Receipts...................................... 0 0 0 0 0 0
    Outlays........................................ * * * * * *

  5. CBO ESTIMATE: CBO estimates that provisions affecting the liability for clean-up costs would reduce offsetting receipts by $2 million annually. In addition, CBO estimates that, as a result of a provision that would authorize State and local governments to use grants to capitalize revolving funds for brownfields remediation, additional tax-exempt bonds would be issued, which would reduce Federal tax receipts.

    6.  

    (Fiscal years; in millions of dollars)
    2001 2002 2003 2004 2005 2006
    Receipts...................................... 0 0 -1 -5 -10 -15
    Outlays........................................ 0 2 2 2 2 2

     

  6. EXPLANATION OF DIFFERENCES BETWEEN OMB AND CBO ESTIMATES: In contrast to CBO, OMB treats the potential change in the issuance of tax-exempt bonds as an indirect effect and does not score it for PAYGO purposes. The difference in outlays is the result of different assumptions about the number of and amount of payments that would otherwise be made by businesses for brownsfield remediation.

  7. CUMULATIVE EFFECT OF DIRECT SPENDING AND REVENUE LEGISLATION ENACTED TO DATE:
    8. (Fiscal years; in millions of dollars)
    2001 2002 2003 2004 2005 2006
    Outlay effect.............. 5,503 18,465 23,825 23,533 22,822 8,218
    Receipt effect............ -69,768 -34,950 -84,840 -104,135 -105,311 -123,752
    Net costs.................... 75,271 53,415 108,665 127,668 128,133 131,970

    * Less than $500,000