TO: | Honorable Troy Fraser, Chair, Senate Committee on Natural Resources |
FROM: | Ursula Parks, Director, Legislative Budget Board |
IN RE: | SB212 by Nichols (Relating to the continuation, functions, and name of the Railroad Commission of Texas; providing for the imposition of fees, the repeal of provisions for the suspension of the collection of fees, and the elimination of a fee.), As Introduced |
Fiscal Year | Probable Net Positive/(Negative) Impact to General Revenue Related Funds |
---|---|
2014 | $6,218,779 |
2015 | $1,499,779 |
2016 | $1,499,779 |
2017 | $1,499,779 |
2018 | $1,499,779 |
Fiscal Year | Probable Revenue Gain/(Loss) from General Revenue Fund 1 |
Probable Revenue Gain/(Loss) from Alter Fuels Research Acct 101 |
Probable Savings/(Cost) from Alter Fuels Research Acct 101 |
---|---|---|---|
2014 | $6,218,779 | ($6,764,000) | $1,011,042 |
2015 | $1,499,779 | ($2,045,000) | $1,011,042 |
2016 | $1,499,779 | ($2,045,000) | $1,011,042 |
2017 | $1,499,779 | ($2,045,000) | $1,011,042 |
2018 | $1,499,779 | ($2,045,000) | $1,011,042 |
Fiscal Year | Change in Number of State Employees from FY 2013 |
---|---|
2014 | (4.0) |
2015 | (4.0) |
2016 | (4.0) |
2017 | (4.0) |
2018 | (4.0) |
Changing the agency's name would have no significant fiscal impact as the Commission would phase in these changes over time using existing resources.
Costs related to the bill's provisions requiring the ERC to formally adopt penalty guidelines and a policy that encourages alternative dispute resolution are not expected to be significant and are expected to be absorbed using existing agency resources. Requiring the posting of quarterly reports on the Oil and Gas Regulatory and Cleanup Account No. 5155 on the ERC's website is not expected to result in significant costs.
Authorizing the Commission to establish a Pipeline Safety and Regulatory Fee for permits or registrations of pipelines would result in an estimated increase in annual revenue of $1,499,779 to the General Revenue Fund, as reported by the Sunset Advisory Commission. This new revenue would offset administrative costs for the Pipeline Safety program that are currently being paid out of non-fee-supported General Revenue. The Comptroller reported that the revenue to be generated by the new Pipeline Safety and Regulatory Fee could not be determined.
This estimate does not assume that eliminating the cap on the Oil and Gas Regulation and Cleanup Account No. 5155 would have a significant fiscal impact. It is assumed that the unencumbered balance in the account will not reach $20 million whether or not a fund balance cap exists.
Eliminating the AFRED program and the AFRED Account No. 101 would result in a one-time gain to the General Revenue Fund of $4.7 million to the General Revenue Fund, based on the estimated balance in the account on August 31, 2013 per the Comptroller's Biennial Revenue Estimate. Beginning in fiscal year 2014, the state would realize an annual loss in revenue to the AFRED Account No. 101 of $2.0 million per year, according to the Comptroller. This loss would be partially offset by a savings to the AFRED Account No. 101 of $1.0 million per year, or the annual cost of the program, including appropriations and benefits. Elimination of the AFRED program would also result in a reduction of 4.0 FTEs at the Railroad Commission.
Although the Railroad Commission reports that the elimination of the AFRED program would result in the agency needing additional General Revenue to cover administrative overhead that the AFRED program currently covers, this analysis assumes that the agency would instead reduce its overall administrative overhead budget to reflect the loss of the AFRED program.
Source Agencies: | 116 Sunset Advisory Commission, 304 Comptroller of Public Accounts, 455 Railroad Commission
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LBB Staff: | UP, SZ, ZS, TL
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