LEGISLATIVE BUDGET BOARD
                          Austin, Texas

                           FISCAL NOTE
                       74th Regular Session

                          April 13, 1995



 TO:     Honorable John T. Montford, Chair      IN RE: Committee Substitute
         Committee on Finance                                   for Senate
         Senate                                 Bill No. 726
         Austin, Texas








FROM: John Keel, Director

In response to your request for a Fiscal Note on Senate Bill No.
726 (relating to appropriations to an institution of higher
education for energy costs) this office has determined the
following:

The bill would make no appropriation but could provide the legal
basis for an appropriation of funds to implement the provisions
of the bill.

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 the
institution's estimated energy cost for each year of the biennium
and, if an energy conservation contract is in effect, on the
institution's estimated net savings from the contract during the
contract term divided by the number of years in the contract
term.

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 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:   Higher Education Coordinating Board
          LBB Staff: JK, MK, DF