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LEGISLATIVE BUDGET BOARD
Austin, Texas
 
FISCAL NOTE, 88TH LEGISLATIVE REGULAR SESSION
 
May 13, 2023

TO:
Honorable Todd Hunter, Chair, House Committee on State Affairs
 
FROM:
Jerry McGinty, Director, Legislative Budget Board
 
IN RE:
SB2112 by Johnson (Relating to resources used to ensure the continuous provision of power.), As Engrossed


Estimated Two-year Net Impact to General Revenue Related Funds for SB2112, As Engrossed : a negative impact of ($4,466,695) through the biennium ending August 31, 2025.

General Revenue-Related Funds, Five- Year Impact:

Fiscal Year Probable Net Positive/(Negative) Impact to
General Revenue Related Funds
2024($2,806,752)
2025($1,659,943)
2026($1,689,418)
2027($1,719,777)
2028($1,751,048)

All Funds, Five-Year Impact:

Fiscal Year Probable Savings/(Cost) from
General Revenue Fund
1
Change in Number of State Employees from FY 2023
2024($2,806,752)9.1
2025($1,659,943)9.1
2026($1,689,418)9.1
2027($1,719,777)9.1
2028($1,751,048)9.1


Fiscal Analysis

The bill would allow TDEM to provide grants and loans, as provided by provisions of the bill, for the operation of a Texas backup power package that met certain criteria. TDEM would be required to convene an advisory committee to recommend criteria to employ in making a grant or loan.

The bill would require TDEM to contract with a research entity with experience in microgrid design to analyze critical facility characteristics and requirements in the state and develop specifications for Texas backup power packages.

The bill would require the Texas Commission on Environmental Quality (TCEQ) and the Public Utility Commission of Texas (PUC) each to adopt a process to expedite the permitting of a Texas backup power package.

The bill would require the PUC to require transmission and distribution utilities to use good faith efforts to ensure that no distribution feeder was subject to load shedding for more than four consecutive hours in a six-hour period.

Methodology

The Texas Division of Emergency Management (TDEM) estimates that, to implement the bill's provisions, it would need to hire additional staff to establish and administer the program to issue loans. Costs for new FTEs would include 1.0 Associate Director of Operations ($115,261 in fiscal 2024 and $124,655 in fiscal 2025), 1.1 Program Specialist IV ($69,978 per fiscal year), 4.0 Grant Administrators IV ($351,271 in fiscal 2024 and $379,900 in fiscal 2025), 1.0 Financial Analyst II ($76,841 in fiscal 2024 and $83,103 in fiscal 2025), and 2.0 Contract Specialists IV ($153,681 in fiscal 2024 and $166,206 in fiscal 2025). TDEM estimates that to contract for services to implement the new program, there would be a cost of $1.4 million in professional fees and services in fiscal 2024 and $300,000 per fiscal year afterwards. Additionally, TDEM indicates that funds would be needed for other personnel costs, fuels and lubricants, consumable supplies, utilities, travel, building rent, machine and other rent, and other operating expenses.

Based on analyses from the PUC and TCEQ, the bill would have no significant fiscal impact on either agency.

Technology

TDEM estimates that there would be a cost of $100,000 for technology development to implement a new grant structure within the agency's current framework. Additionally, there would be some costs related to the additional FTEs for new phones and laptops.

Local Government Impact

The bill could have an impact on local governments, if municipally owned utilities were required to expedite permitting of Texas backup power package. However, the fiscal implications of the bill cannot be determined at this time.


Source Agencies:
304 Comptroller of Public Accounts, 473 Public Utility Commission of Texas, 575 Texas Division of Emergency Management, 582 Commission on Environmental Quality, 710 Texas A&M University System Administrative and General Offices
LBB Staff:
JMc, SMAT, JSM, CFl, NV, SZ