TO: | Honorable Rick Hardcastle, Chair, House Committee on Agriculture & Livestock |
FROM: | John Keel, Director, Legislative Budget Board |
IN RE: | HB777 by Swinford (Relating to value-added processing of agricultural goods into fuel ethanol and biodiesel and the fuel ethanol and biodiesel incentive program.), Committee Report 1st House, As Amended |
Fiscal Year | Probable Net Positive/(Negative) Impact to General Revenue Related Funds |
---|---|
2004 | $0 |
2005 | $0 |
2006 | ($252,000) |
2007 | ($252,000) |
2008 | ($252,000) |
Fiscal Year | Probable Savings/(Cost) fromGeneral Revenue Fund 1 |
Probable Revenue Gain/(Loss) fromFuel Ethanol and Biodiesel Production | Probable Savings/(Cost) fromFuel Ethanol and Biodiesel Production |
---|---|---|---|
2004 | $0 | $48,000 | ($48,000) |
2005 | $0 | $48,000 | ($48,000) |
2006 | ($252,000) | $300,000 | ($300,000) |
2007 | ($252,000) | $300,000 | ($300,000) |
2008 | ($252,000) | $300,000 | ($300,000) |
Assuming that 1.5 million gallons of biofuels were produced by plants annually, the fees collected would be $48,000 and the General Revenue match would be $252,000 for a total of $300,000.
The Department of Agriculture would then pay ethanol or biodiesel plant operators an incentive from the Account of up to $0.20 per gallon of ethanol or biodiesel produced during the first 10 years the plants were in operation.
It is assumed that oversight of the program by the Department of Agriculture, including plant registration, fee collection, and grant administration will be absorbed by the agency within existing resources.
Source Agencies: | 304 Comptroller of Public Accounts, 455 Railroad Commission, 551 Department of Agriculture
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LBB Staff: | JK, SD, CL, MS, JF
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