LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE 74th Regular Session May 17, 1995 TO: Honorable Robert Junell, Chair IN RE: Committee Substitute Committee on Appropriations for Senate House of Representatives Bill No. 726 Austin, Texas By: Junell FROM: John Keel, Director In response to your request for a Fiscal Note on Senate Bill No. 726 (relating to energy conservation measures by institutions of higher education) this office has determined the following: The bill would amend Texas Education Code regarding energy conservation contracts. It would direct the Legislature to base utility appropriations to institutions of higher education on each institution's estimated energy cost for each year of the biennium and, if an energy conservation contract is in effect, on the institutions estimated net savings from the contract during the contract term divided by the number of years in the contract. In addition, the bill would require an institution considering an energy conservation contract to submit a contract proposal to the energy management center for review and comment prior to awarding the contract. The energy management center could provide a cost-benefit analysis of proposals and an analysis of the projected savings. The energy management center would be allowed to charge a fee for the analysis of proposals. The Higher Education Coordinating Board, in consultation with the energy management center, would establish guidelines and an approval process for energy conservation measures. It is assumed the Higher Education Coordinating Board and the energy management center would engage in the activities required by the bill as part of their normal operations and would not require additional funding. In addition, it is assumed that any institutional costs associated with energy contract analysis would be paid from institutional funds and would present no additional cost to the State. While the provisions of the bill may provide for cost savings to the State, savings would depend upon the number of institutions participating in energy conservation contracts and the amount of subsequent savings realized after the contracts expire. Therefore, the fiscal implications of the bill cannot be determined. The fiscal implication to the State or units of local government cannot be determined. Source: Legislative Budget Board LBB Staff: JK, MK, DF