| TO: | Honorable Dennis Bonnen, Chair, House Committee on Environmental Regulation |
| FROM: | John S. O'Brien, Deputy Director, Legislative Budget Board |
| IN RE: | HB1611 by Chisum (Relating to the use of money for the low-income vehicle repair assistance, retrofit, and accelerated vehicle retirement program. ), Committee Report 1st House, Substituted |
| Fiscal Year | Appropriation out of CLEAN AIR ACCOUNT 151 |
|---|---|
| 2006 | $1,000,000 |
| 2007 | $0 |
| Fiscal Year | Probable Savings/(Cost) from CLEAN AIR ACCOUNT 151 |
Change in Number of State Employees from FY 2005 |
|---|---|---|
| 2005 | ($9,944,000) | 0.0 |
| 2006 | ($20,121,713) | 2.0 |
| 2007 | ($20,108,713) | 2.0 |
| 2008 | ($20,108,713) | 2.0 |
| 2009 | ($20,108,713) | 2.0 |
| Fiscal Year | Probable Revenue Gain/(Loss) from CLEAN AIR ACCOUNT 151 |
Change in Number of State Employees from FY 2005 |
|---|---|---|
| 2006 | ($20,121,713) | 2.0 |
| 2007 | ($20,108,713) | 2.0 |
| 2008 | ($20,108,713) | 2.0 |
| 2009 | ($20,108,713) | 2.0 |
| 2010 | ($20,108,713) | 2.0 |
The bill would provide that an amount not to exceed $20 million per fiscal year out of fees collected for the Low-Income Vehicle Repair, Replacement and Retrofit Program (LIRAP) be transferred to a newly created subaccount of the Clean Air Account No. 151. The bill would also stipulate that 70 percent of funds in the subaccount be used by counties participating in the vehicle inspection and maintenance (I/M) program be used for various uses as provided in the bill. The remaining 30 percent would be used by the Texas Commission on Environmental Quality (TCEQ) to provide grants to Texas Emissions Reduction Plan (TERP)-eligible projects in counties participating in the I/M program.
The bill would delete a limitation of 5 percent on the amount of LIRAP funds that can be used by a county for administration of the program, and would expand the definition of administrative expenses. The bill also would allow regional councils of government (COGs) and metropolitan planning organizations (MPOs) to administer the LIRAP program, and allow for the sharing of LIRAP funds between counties.
The bill would appropriate $1 million out of the newly created subaccount in the Clean Air Account No. 151 for the development and implementation of a pilot I/M program in the Dallas-Fort Worth area.
The bill would become effective immediately if it receives two-thirds vote in both houses of the legislature. Otherwise, it would take effect on September 1, 2005.
Because the LIRAP program currently is only to be appropriated $3.1 million (based on amounts contained in House Committee Substitute for Senate Bill 1, 79th Legislature, Regular Session), and the LIRAP revenue stream is expected to range from $26.5 million in fiscal year 2006 and $35.5 million in fiscal year 2010, this estimate assumes that the entire $20.0 million each fiscal year would be transferred from the subaccount created in the Clean Air Account No. 151. Of this amount, $14.0 million per year would be used by counties for purposes identified in the bill, and $6.0 million would be used by the TCEQ to provide grants to TERP-eligible projects. This estimate assumes that the $1.0 million appropriated by the bill would represent a portion of the $14.0 million for use by counties in fiscal year 2006.
Because the TCEQ would be required to monitor a number of new contracts for purposes such as outreach, expansion of AirCheck Texas Repair and Assistance Program, the smoking vehicle program, and other programs authorized in the bill to receive funding at the county, MPO or COG level, the TCEQ would require 2 additional FTEs and related costs in the LIRAP program. Related costs are expected to be $121,713 in fiscal year 2006 and $108,713 in future years.
For the purposes of this fiscal note, all costs are shown out of the Clean Air Account No. 151, rather than the subaccount created by the bill.
| Source Agencies: | 582 Commission on Environmental Quality
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| LBB Staff: | JOB, WK, ZS, TL
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