Honorable Dennis Bonnen, Chair, House Committee on Environmental Regulation
John S. O'Brien, Director, Legislative Budget Board
HB1072 by Giddings (Relating to the low income vehicle repair assistance, retrofit, and accelerated vehicle retirement program.), As Introduced
|Fiscal Year||Probable Net Positive/(Negative) Impact to General Revenue Related Funds|
|Fiscal Year||Probable Savings/(Cost) from
CLEAN AIR ACCOUNT
The Texas Commission on Environmental Quality (TCEQ) reports that LIRAP assistance was made on approximately 8,000 repairs in the 16 participating county governments in fiscal year 2006. The average cost of such repairs was approximately 80 percent of the maximum allowable compensation limit, or $494 per repair. The TCEQ reports that LIRAP assistance was used to replace approximately 240 vehicles in fiscal year 2006 at an average cost of approximately $1,000 per vehicle, or 100 percent of the maximum allowable compensation.
Assuming that demand for LIRAP assistance will remain constant, this estimate assumes that average repair costs will increase to 80 percent of the maximum allowable compensation proposed by the new bill or about $720 per repair. This would result in an increase in LIRAP repair costs of approximately $1.8 million per fiscal year. This estimate assumes that replacement costs would increase to 100 percent of the proposed maximum allowable compensation, or $1,500 per vehicle. Based on 240 replacements per year, this estimate assumes that the bill would result in an increase in vehicle replacement costs of $120,000 per fiscal year. This estimate assumes that all costs would be paid out of the General Revenue-Dedicated Clean Air Account No. 151.
This estimate assumes that other costs associated with passage of the bill related to agency rulemaking and printing costs could be absorbed using existing agency resources.
582 Commission on Environmental Quality
JOB, WK, ZS, TL