TO:	Honorable Trent Ashby, Chair, House Committee on Culture, Recreation & Tourism

FROM:	Jerry McGinty, Director, Legislative Budget Board

IN RE:	HB4018 by Ashby (Relating to Texas Parks and Wildlife Department management of state-owned lands under their jurisdiction in developing and securing carbon credits and dedication of generated funds for the conservation of those lands.), As Introduced

The fiscal implications of the bill cannot be determined due to the timing, number of agreements that would be entered into, and the amount of revenue generated from carbon sequestration using nature-based solutions on lands under the Texas Parks and Wildlife Department's jurisdiction is unknown.

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

This bill would amend the Natural Resources Code, relating to the Red River Boundary Compact, and the Parks and Wildlife Code, relating to the Texas Parks and Wildlife Department (TPWD). The bill would add agreements with private entities for the purposes of carbon sequestration using nature-based solutions on lands under the department's jurisdiction to the identified multiple uses of land under TPWD's jurisdiction. Revenue generated under these agreements would be used solely for conservation of the lands generating carbon credits.

Language in the bill is unclear as to whether revenue generated from carbon sequestration would be added as a source to be deposited to the credit of General Revenue-Dedicated Game, Fish, and Water Safety Account No. 9 or if a new fund would be created. Based on the analysis of the Comptroller of Public Accounts (CPA), it is assumed that the bill would establish a new account for the deposit of associated revenues.

Based upon information provided by TPWD and the CPA, it is assumed that the fiscal implications of the bill cannot be determined because the number of agreements that TPWD will enter into as well as the potential value of revenue generated from carbon sequestration on lands under TPWD jurisdiction is unknown.

This legislation would do one or more of the following: create or recreate a dedicated account in the General Revenue Fund, create or recreate a special or trust fund either with or outside of the Treasury, or create a dedicated revenue source. The fund, account, or revenue dedication included in this bill would be subject to funds consolidation review by the current Legislature.

LEGISLATIVE BUDGET BOARD
Austin, Texas

FISCAL NOTE, 88TH LEGISLATIVE REGULAR SESSION


March 29, 2023