TO: | Honorable Jim Keffer, Chair, House Committee on Ways & Means |
FROM: | John S. O'Brien, Director, Legislative Budget Board |
IN RE: | HB2972 by Chisum (Relating to a loan program for businesses that expand the use of or manufacture, store, distribute, or sell carbon-free hydrogen energy; providing for the issuance of bonds.), As Introduced |
Fiscal Year | Probable Net Positive/(Negative) Impact to General Revenue Related Funds |
---|---|
2008 | ($196,588) |
2009 | ($126,453) |
2010 | ($126,453) |
2011 | ($126,453) |
2012 | ($126,453) |
Fiscal Year | Probable (Cost) from GENERAL REVENUE FUND 1 |
---|---|
2008 | ($196,588) |
2009 | ($126,453) |
2010 | ($126,453) |
2011 | ($126,453) |
2012 | ($126,453) |
Fiscal Year | Change in Number of State Employees from FY 2007 |
---|---|
2008 | 0.0 |
2009 | 2.0 |
2010 | 2.0 |
2011 | 2.0 |
2012 | 2.0 |
It is assumed that debt service for bond proceeds will be repaid through loans from business entities. The proceeds of bond loans to business entities would be taxable bonds under federal tax regulations at a 7.5 percent interest rate and a 20-year level debt service structure. Based on the analysis by the Texas Public Finance Authority, the bill does not limit the amount or timing of the bond issue, except that no bonds could be issued before the constitutional amendment is passed on November 6, 2007. The total debt service assumed for the 2008-09 biennium is $24.6 million and includes principal and interest.
The above estimate includes salary for two additional full-time-equivalent positions for the State Energy Conservation Office (SECO) to administer the hydrogen energy loan program and technology costs in 2008. It is assumed that any additional programming costs associated with implementation of the bill could be absorbed within the agency’s existing resources.
Source Agencies: | 347 Public Finance Authority, 304 Comptroller of Public Accounts
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LBB Staff: | JOB, CT, JW
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