LEGISLATIVE BUDGET BOARD
                              Austin, Texas
                                     
                    FISCAL NOTE, 77th Regular Session
  
                              March 26, 2001
  
  
          TO:  Honorable Warren Chisum, Chair, House Committee on
               Environmental Regulation
  
        FROM:  John Keel, Director, Legislative Budget Board
  
       IN RE:  HB2819  by Swinford (Relating to a prohibition on the
               sale of gasoline containing methyl tertiary butyl ether
               and a requirement for the substitution of gasoline
               containing ethanol for use in certain nonattainment
               areas.), As Introduced
  
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*  No significant fiscal implication to the State is anticipated.        *
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The bill would prohibit the sale of gasoline containing MTBE after
September 1, 2005, and in addition, requires that ethanol be used as the
oxygenate in reformulated gasoline in nonattainment areas after
September 1, 2005. This would result in an estimated increase in fuel
costs for the state's fleet of more than $1.5 million per year.
However, it is anticipated that state agencies can absorb any increases
in fuel costs resulting from the bill within existing resources.
  
Local Government Impact
  
Some increases in fuel costs for local governments could result from
removing MTBE from the market place and requiring ethanol to be used in
reformulated gasoline in nonattainment areas.  However, no significant
fiscal implication to units of local government is anticipated.
  
  
Source Agencies:   582   Texas Natural Resource Conservation Commission,
                   601   Texas Department of Transportation, 303
                   General Services Commission, 304   Comptroller of
                   Public Accounts
LBB Staff:         JK, CL, ZS, TL