LEGISLATIVE BUDGET BOARD
                                   Austin, Texas
         
                                   FISCAL NOTE
                               75th Regular Session
         
                                  April 1, 1997
         
         
      TO: Honorable J.E. "Buster" Brown, Chair            IN RE:  Senate Bill No. 925
          Committee on Natural Resources                              By: Ogden
          Senate
          Austin, Texas
         
         
         
         
         FROM:  John Keel, Director    
         
In response to your request for a Fiscal Note on SB925 ( 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 SB925-As Introduced
         

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 available for consumer rebate programs.  

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