LEGISLATIVE BUDGET BOARD

Austin, Texas

FISCAL NOTE, 78TH LEGISLATIVE REGULAR SESSION

May 31, 2003

TO:	Honorable David Dewhurst , Lieutenant Governor, Senate Honorable Tom Craddick, Speaker of the House, House of Representatives
FROM:	John Keel, Director, Legislative Budget Board
IN RE:	HB638 by Chisum (Relating to emissions reductions incentives and the emissions reductions incentives account. ), Conference Committee Report

No significant fiscal implication to the State is anticipated.

The bill would require the Commission on Environmental Quality (TCEQ) to develop a program for the reduction of emissions of nitrogen oxides from reciprocating internal combustion engines associated with pipelines. This program would provide incentives for facilities in the East Texas region which would include partial reimbursement for the capital cost of installing technology to reduce emissions.  The facilities would be required to reduce the hourly emissions rate of nitrogen oxides expressed in terms of grams per brake horse-power hour, by at least 50 percent. Administrative costs to the TCEQ resulting from these changes are not anticipated to be significant.

The bill would provide that interest earned from funds in the Emissions Reductions Incentive Account would remain in the account. Assuming the TCEQ would spend the majority of funds credited to the account each year, interest earnings are not expected to be significant.

Local Government Impact

No fiscal implication to units of local government is anticipated.

Source Agencies:

582 Commission on Environmental Quality, 304 Comptroller of Public Accounts

LBB Staff:

JK, CL, TL, KG