Honorable Brian Birdwell, Chair, Senate Committee on Natural Resources & Economic Development
FROM:
John McGeady, Assistant Director Sarah Keyton, Assistant Director Legislative Budget Board
IN RE:
SB531 by Birdwell (Relating to sources of funding for the Texas emissions reduction plan.), As Introduced
Estimated Two-year Net Impact to General Revenue Related Funds for SB531, As Introduced: an impact of $0 through the biennium ending August 31, 2021.
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
2020
$0
2021
$0
2022
$0
2023
$0
2024
$0
Fiscal Year
Probable Revenue Gain/(Loss) from State Highway Fund 6
Probable Revenue Gain/(Loss) from Texas Emissions Reduction Plan 5071
2020
($150,826,000)
$265,295,000
2021
($152,334,000)
$272,526,000
2022
($153,858,000)
$277,656,000
2023
($155,396,000)
$282,908,000
2024
($156,950,000)
$288,287,000
Fiscal Analysis
The bill would extend the sources of funding for the Texas Emissions Reduction Plan (TERP), which are set to expire on August 31, 2019 under current law. The bill would amend the Tax Code to extend fee and surcharge revenues deposited to the credit of General Revenue-Dedicated Texas Emissions Reduction Plan Account No. 5071 (TERP Fund) for each active or revoked ozone National Ambient Air Quality Standard (NAAQS) until all areas in Texas have been designated by the Environmental Protection Agency as either in attainment or unclassifiable or the EPA has approved a redesignation substitute making a finding of attainment. The would prohibit TERP programs from expiring until there is no pending judicial review of those EPA actions, and the final notice of such action is published in the Texas Register.
The bill would amend the Transportation Code to continue the deposit to the credit of the TERP Fund from the State Highway Fund each fiscal year in an amount equal to the amount deposited to the credit of the Texas Mobility Fund from Vehicle Title Fees.
The bill would take effect August 30, 2019.
Methodology
Amounts reflected in the table above are based on revenue estimates provided by the Comptroller of Public Accounts for TERP Fund fees and surcharges and on Vehicle Title Fee revenue amounts deposited to the credit of the Texas Mobility Fund as reported in the Comptroller of Public Accounts Biennial Revenue Estimate.
Local Government Impact
No significant fiscal implication to units of local government is anticipated. The bill would require local and other governmental entities to continue paying the TERP fees relating to heavy-duty motor vehicle sales and use fees when purchasing or leasing heavy-duty vehicles and equipment.
Source Agencies:
304 Comptroller of Public Accounts, 582 Commission on Environmental Quality, 601 Department of Transportation