LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE
75th Regular Session
April 15, 1997
TO: Honorable Steve Holzheauser, Chair IN RE: House Bill No. 1958, Committee Report 1st House, Substituted
Committee on Energy Resources By: Hawley
House
Austin, Texas
FROM: John Keel, Director
In response to your request for a Fiscal Note on HB1958 ( relating
to the imposition, collection, and administration of LPG delivery
fees.) this office has detemined the following:
Biennial Net Impact to General Revenue Funds by HB1958-Committee Report 1st House, Substituted
No significant fiscal implication to the State is anticipated.
The bill would amend Chapter 113, Natural Resources Code, relating
to liquefied petroleum gas (LPG). The bill would dedicate fees
and all other funds in the Alternative Fuels Research and Education
Account #0101 (AFRED) to be used for specific purposes by the
Railroad Commission (RRC). Funds collected under agreements
with other states and assessments, rebates on assessments, and
other funds collected under the federal Propane Education and
Research Act of 1996 (PERA) would also be dedicated to AFRED.
The bill would increase from 25% to 50% the percentage of AFRED
funds to be used for consumer rebate programs. Twenty-five
percent of the remainder of the delivery fees collected may
be expended for the AFRED administrative costs, with the remaining
25 percent available for be spent at the discretion of the RRC.
Owners of LPG gas at the time of odorization or at the
time of import into Texas would pay a fee based on the amount
of odorized LPG sold and placed into commerce. Owners exporting
LPG gas to other states would be assessed a fee if that state
has a PERA agreement with the RRC; the fee would be paid to
the responsible agency or organization in that state. The bill
would allow for agreements with agencies or organizations of
other states to be made regarding the administration, collection,
reporting, and payment of fees, as well as other provisions.
The
bill would take effect September 1, 1997, except for two provisions
which would take effect the later of September 1, 1997 or upon
receipt of a written report from an independent auditing firm
that the industry referendum required under the federal PERA
have taken place and have been approved by the necessary level
of propane producers and retail marketers.
If Texas were
to enter into reciprocal cooperation agreements with other states,
the RRC would expect to see an increase in revenues deposited
into the AFRED account. According to the RRC, LPG exports from
Texas are 46 percent to Mexico and 54 percent to other states.
The RRC also estimates that this would produce in increase
in fee collections of over $500,000 each year credited to the
AFRED account. However at this time it is not known how many
states would enter into cooperative agreements, when they would
take effect, and if the industry referendum required by the
PERA would be approved.
No fiscal implication to units of local government is anticipated.
Source: Agencies: 455 Railroad Commission
LBB Staff: JK ,BB