Estimated Two-year Net Impact to General Revenue Related Funds for SB1728, Committee Report 2nd House, Substituted : a positive impact of $1,902,000 through the biennium ending August 31, 2023.

The bill would add Subchapter M to Chapter 502 of the Transportation Code to establish additional fees for certain vehicles not powered by gasoline or diesel fuel to be paid at the time of registration or renewal of registration. The additional fees would be deposited to the State Highway Fund (SHF). An alternatively fueled vehicle (AFV), as defined by the bill, weighing 6,000 pounds or less would be subject to an additional $190, with similar plug-in hybrid electric vehicles (HEV) subject to an additional fee of $30. AFVs and plug-in HEVs weighing 6,001 pounds or more would be subject to an additional fee of $240 and $40, respectively. In lieu of paying the flat fees described above, the bill would allow a person to pay a fee based on mileage driven in a one-year period. The annual mileage fees for an AFV weighing 6,000 pounds or less would be between $30 and $190 depending on the number of miles driven. The annual mileage fees for plug-in HEVs weighing less than 6,000 pounds would be between $5 and $30. The fee for AFVs and plug-in HEVs weighing 6,001 pounds or more would range between $40 and $240, and $10 and $40, respectively. Beginning in fiscal year 2031, the bill would require the Texas Department of Motor Vehicles (TxDMV), on January 1 of each year, to increase the fees to adjust for inflation as determined by the National Highway Construction Cost Index or decrease the fees if the federal government collects a tax on an AFV.

The bill would impose an additional surcharge of $10 at the time of registration or registration renewal of an electric vehicle. The bill would require each surcharge collected to be deposited to the General Revenue Fund to be used only for the operations of the council established by the bill. This requirement would expire on September 1, 2030, and the surcharge would be deposited to the SHF beginning in fiscal year 2031.

The fees and surcharge imposed by the bill would not apply to hybrid electric vehicles that are not plug-in hybrid electric vehicles, natural gas vehicles, or vehicles used exclusively for public transportation.

The bill would take effect on January 1, 2022.

Based on information provided by TxDMV, it is assumed the agency would incur one­time costs in fiscal year 2022 to the Texas Department of Motor Vehicles Fund of $501,500 for programming changes to the agency's automated systems to accommodate the new AFV fees and electric vehicle surcharge and a cost of $95,000 for a special mailing to affected customers to provide notification of the vehicle registration requirements of the new legislation.

The bill would specify that the Texas Transportation Electrification Council is to be funded using TxDOT's existing funds. TxDOT estimates the costs of the administrative functions and reporting requirements of the bill to be approximately $1.0 million per year (not included in the table above). Based on the analysis provided by the Texas A&M Transportation Institute (TTI), it is assumed TTI would require $180,000 for each fiscal year in which it helps with the assessment (2022, 2024, 2026). TTI also anticipates a cost of $150,000 for supplies and equipment in 2022 and $140,000 in supplies and equipment in 2024 and each biennium afterwards. Costs from the General Revenue Fund for TTI are reflected in the table above.

Note: This legislation would do one or more of the following: create or recreate a dedicated account in the General Revenue Fund, create or recreate a special or trust fund either with or outside of the Treasury, or create a dedicated revenue source. The fund, account, or revenue dedication included in this bill would be subject to funds consolidation review by the current Legislature.