TO: | Honorable Rick Hardcastle, Chair, House Committee on Energy Resources |
FROM: | John S. O'Brien, Director, Legislative Budget Board |
IN RE: | HB1920 by Keffer, Jim (Relating to a limitation on the amount of natural gas that a gatherer or transporter of gas may lose or be unable to account for.), As Introduced |
Fiscal Year | Probable Net Positive/(Negative) Impact to General Revenue Related Funds |
---|---|
2008 | ($482,744) |
2009 | ($466,884) |
2010 | ($466,894) |
2011 | ($466,884) |
2012 | ($466,844) |
Fiscal Year | Probable Revenue Gain/(Loss) from New Higher Ed Fund outside Treasury |
Probable Savings/(Cost) from GENERAL REVENUE FUND 1 |
---|---|---|
2008 | $1,900,000 | ($482,744) |
2009 | $1,900,000 | ($466,884) |
2010 | $1,900,000 | ($466,894) |
2011 | $1,900,000 | ($466,884) |
2012 | $1,900,000 | ($466,844) |
Fiscal Year | Change in Number of State Employees from FY 2007 |
---|---|
2008 | 6.0 |
2009 | 6.0 |
2010 | 6.0 |
2011 | 6.0 |
2012 | 6.0 |
The Railroad Commission estimates that passage of the bill would result in the agency having to respond to 60 technical contract review cases and 60 informal complaint review cases per fiscal year. The agency bases this estimate on the assumption that 10 percent of the total permitted pipeline systems may exceed the 5 percent loss limitation established by the bill. The Railroad Commission expects that it would require 6 FTEs and related costs totaling $482,744 in the first year and $466,884 in each fiscal year thereafter to handle these new cases.
The University of Texas (UT) System Administration expects that the bill would result in a revenue gain to the Permanent University Fund. The UT System Administration assumes that 15 percent of the total gas royalty produced on University Lands currently is affected by losses addressed by the bill. This estimate assumes those royalties would no longer be lost, resulting in a revenue gain of $1.9 million per fiscal year as shown in the table above.
The General Land Office expects that the bill would result in a revenue gain to the Permanent School Fund because there would be a reduction in lost gas royalties. This estimate, however, assumes that the associated revenue gain would not be significant.
Source Agencies: | 304 Comptroller of Public Accounts, 455 Railroad Commission, 720 The University of Texas System Administration
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LBB Staff: | JOB, WK, ZS, JMI, TL
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