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: HB2820 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 ethyl tertiary butyl ether or 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, 2003 and in addition, requires that ethanol be used as the
oxygenate in reformulated gasoline in nonattainment areas after
September 1, 2003. The bill could result in additional fuel costs for
state agencies with fleets of 20 vehicles or more in nonattainment
areas. However, it is anticipated that impacted agencies will be able
to absorb any increases in fuel costs resulting from this legislation
within existing resources.
Local Government Impact
Removing MTBE from the market place and requiring ethanol to be used in
reformulated gasoline in nonattainment areas could result in fuel price
increases for local governments 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