TO: | Honorable Mike Jackson, Chair, Senate Committee on S/C on Agriculture & Coastal Resources |
FROM: | John S. O'Brien, Deputy Director, Legislative Budget Board |
IN RE: | SB1102 by Jackson, Mike (Relating to the establishment of a program by the Department of Agriculture to make grants to farmers and diverters who privide agricultural biomass to facilities that convert biomass to electrical energy. ), Committee Report 1st House, Substituted |
Fiscal Year | Probable Net Positive/(Negative) Impact to General Revenue Related Funds |
---|---|
2006 | ($30,026,364) |
2007 | ($30,094,222) |
2008 | ($30,094,222) |
2009 | ($30,094,222) |
2010 | ($30,094,222) |
Fiscal Year | Probable Savings/(Cost) from GENERAL REVENUE FUND 1 |
Probable Revenue Gain/(Loss) from New GR-Dedicated Landfill Diversion and Agricultural Biomass Incentive Program Account |
Probable Savings/(Cost) from New GR-Dedicated Landfill Diversion and Agricultural Biomass Incentive Program Account |
---|---|---|---|
2006 | ($30,026,364) | $30,026,364 | ($30,026,364) |
2007 | ($30,094,222) | $30,094,222 | ($30,094,222) |
2008 | ($30,094,222) | $30,094,222 | ($30,094,222) |
2009 | ($30,094,222) | $30,094,222 | ($30,094,222) |
2010 | ($30,094,222) | $30,094,222 | ($30,094,222) |
The bill requires that the Texas Department of Agriculture (TDA) with the assistance of the Texas Commission on Environmental Quality (TCEQ) and the Public Utility Commission (PUC), establish an Agricultural Biomass Incentive Program to provide grants to farmers including foresters and diverters who provide agricultural biomass to facilities that convert biomass to energy.
This bill would entitle each farmer to $30 per ton of agricultural biomass and each diverter to $10 per ton of agricultural biomass suitable for biomass conversion. This bill would authorize TDA to grant no more than $30 million each fiscal year.
Assuming an average load of 40 tons (the maximum load limit for non-permitted commercial transporters) and 12,500 loads (primarily urban and forest wood waste) being transported by farmers a year, the Department of Agriculture estimates that $15 million would be granted to farmers, per fiscal year.
Assuming an average load of 40 tons (the maximum load limit for non-permitted commercial transporters) and 37,500 loads being transported by diverters per fiscal year, the Department of Agriculture estimates that $15 million would be granted to diverters per fiscal year.
In order to implement the provisions of this bill TDA anticipates needing 0.5 FTEs in fiscal year 2006 for a total cost of $26,364 and 2.0 FTEs in subsequent fiscal years for a total cost of $94,222 per fiscal year.
Source Agencies: | 473 Public Utility Commission of Texas, 551 Department of Agriculture, 582 Commission on Environmental Quality
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LBB Staff: | JOB, WK, ZS, JF, TL
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