LEGISLATIVE BUDGET BOARD
Austin, Texas
 
FISCAL NOTE, 82ND LEGISLATIVE REGULAR SESSION
 
March 30, 2011

TO:
Honorable Jim Keffer, Chair, House Committee on Energy Resources
 
FROM:
John S O'Brien, Director, Legislative Budget Board
 
IN RE:
HB3310 by Rodriguez, Eddie (Relating to incentives for the purchase or lease of an electric-powered light-duty motor vehicle.), As Introduced



Estimated Two-year Net Impact to General Revenue Related Funds for HB3310, As Introduced: an impact of $0 through the biennium ending August 31, 2013.

The bill would make no appropriation but could provide the legal basis for an appropriation of funds to implement the provisions of the bill.



Fiscal Year Probable Net Positive/(Negative) Impact to General Revenue Related Funds
2012 $0
2013 $0
2014 $0
2015 $0
2016 $0




Fiscal Year Probable Savings/(Cost) from
Texas Emissions Reduction Plan
5071
2012 ($2,500,000)
2013 ($2,500,000)
2014 ($2,500,000)
2015 ($2,500,000)
2016 ($2,500,000)

Fiscal Analysis

The bill would amend the provisions of the Light-Duty Motor Vehicle Purchase or Lease Incentive Program (LDMVI) within the Texas Emission Reduction Plan (TERP) program to apply rebate provisions to new gasoline-powered light-duty vehicles and to establish a new provision for incentives for light-duty motor vehicles powered in part by an electric motor. Such vehicles would be eligible to up to a $2,500 incentive and incentives would be limited to 2,000 vehicles for the 2012-13 biennium. 


Methodology

Although the program has existed in statute since 2003, the LDMVI program has not been appropriated any funding since the 2004-05 Biennium, and no incentive grant payments were ever made for the program. Moreover, Health and Safety Code, Section 386.252, which allocates 100 percent of TERP Account No. 5071 funding to various programs, does not provide for an allocation for the LDMVI program. Nonetheless, this estimate assumes that passage of the legislation would result in an additional appropriation out of the General Revenue-Dedicated Texas TERP Account No. 5071 in an amount sufficient to provide the $2,500 incentive to 2,000 vehicles for the 2012-13 biennium, or $2.5 million per fiscal year, as shown in the table above. This estimate also assumes that a similar funding level for the program would continue in future fiscal years.

 

The bill's passage is not expected to result in significant administrative costs to the Texas Commission on Environmental Quality or the Comptroller of Public Accounts.


Local Government Impact

The bill is not expected to have a significant fiscal impact on local governments; however, some local governments could be recipients of incentive payments upon passage of the bill. The number of incentive payments would depend on the number of local governments receiving incentive payment awards through the program.


Source Agencies:
304 Comptroller of Public Accounts, 582 Commission on Environmental Quality
LBB Staff:
JOB, SZ, ZS, TL