LEGISLATIVE BUDGET BOARD

Austin, Texas

FISCAL NOTE, 82ND LEGISLATIVE REGULAR SESSION

April 4, 2011

TO:	Honorable John Carona, Chair, Senate Committee on Business & Commerce
FROM:	John S O'Brien, Director, Legislative Budget Board
IN RE:	SB1434 by Carona (Relating to certain low-income weatherization programs.), As Introduced

Estimated Two-year Net Impact to General Revenue Related Funds for SB1434, As Introduced: a negative impact of ($100,000) 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.

General Revenue-Related Funds, Five-Year Impact:

Fiscal Year	Probable Net Positive/(Negative) Impact to General Revenue Related Funds
2012	($50,000)
2013	($50,000)
2014	($50,000)
2015	($50,000)
2016	($50,000)

All Funds, Five-Year Impact:

Fiscal Year	Probable Savings/(Cost) from General Revenue Fund 1
2012	($50,000)
2013	($50,000)
2014	($50,000)
2015	($50,000)
2016	($50,000)

Fiscal Analysis

The bill would amend the utilities code to require the Public Utility Commission (PUC) to ensure that annual expenditures for the targeted low-income energy efficiency programs of each unbundled transmission and distribution utility are not less than 15 percent of the transmission and distribution utility’s energy efficiency budget for the year. The bill would require the PUC to issue and publish on the PUC’s website a yearly report including certain data concerning utilities energy efficiency programs.

The bill would take effect immediately if it receives a vote of two-thirds of all the members elected to each house, as provided by Section 39, Article III of the Texas Constitution. If the bill does not receive the vote necessary for immediate effect, this act would take effect on September 1, 2011.

Methodology

According to the analysis submitted by the PUC, conducting the study required under the provisions of the bill would necessitate that the PUC hire a consultant to assist with the analysis. The PUC estimates that hiring a consultant for this purpose would require $50,000 in Professional Fees and Services beginning in fiscal year 2012 and continuing each year thereafter. This estimate is based on the cost of past reports and the comparative complexity of the report required by this bill. Also, based on the analysis of the PUC, it is assumed that the other requirements of this bill could be accomplished utilizing existing resources.

Local Government Impact

No significant fiscal implication to units of local government is anticipated.

Source Agencies:

473 Public Utility Commission of Texas

LBB Staff:

JOB, AG, MW, RAN