LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 81ST LEGISLATIVE REGULAR SESSION April 5, 2009 TO: Honorable Burt R. Solomons, Chair, House Committee on State Affairs FROM: John S. O'Brien, Director, Legislative Budget Board IN RE:HB3125 by Turner, Sylvester (Relating to the change in fuel mandates for the percent of megawatts of generating capacity installed.), As Introduced No significant fiscal implication to the State is anticipated. The bill would repeal sections 39.9044 and 39.9048 of the Utilities Code. Section 39.9044 establishes a requirement that a minimum of 50 percent of the new generating capacity in Texas, other than renewable energy technologies, be fired by natural gas. This section also requires the Public Utility Commission (PUC) to establish a natural gas energy credits trading program. Section 39.9048 expressed that it is the intent of the legislature that the cost of generating electricity remain as low as possible and that the state establish and publicize a program to keep the costs of fuel, such as natural gas, used for generating electricity low. The bill would require the PUC to amend current rules to conform to the provisions of the bill. Based on the analysis of the PUC, duties and responsibilities associated with implementing the provisions of the bill could be accomplished by 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, KJG, ES LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 81ST LEGISLATIVE REGULAR SESSION April 5, 2009 TO: Honorable Burt R. Solomons, Chair, House Committee on State Affairs FROM: John S. O'Brien, Director, Legislative Budget Board IN RE:HB3125 by Turner, Sylvester (Relating to the change in fuel mandates for the percent of megawatts of generating capacity installed.), As Introduced TO: Honorable Burt R. Solomons, Chair, House Committee on State Affairs FROM: John S. O'Brien, Director, Legislative Budget Board IN RE: HB3125 by Turner, Sylvester (Relating to the change in fuel mandates for the percent of megawatts of generating capacity installed.), As Introduced Honorable Burt R. Solomons, Chair, House Committee on State Affairs Honorable Burt R. Solomons, Chair, House Committee on State Affairs John S. O'Brien, Director, Legislative Budget Board John S. O'Brien, Director, Legislative Budget Board HB3125 by Turner, Sylvester (Relating to the change in fuel mandates for the percent of megawatts of generating capacity installed.), As Introduced HB3125 by Turner, Sylvester (Relating to the change in fuel mandates for the percent of megawatts of generating capacity installed.), As Introduced No significant fiscal implication to the State is anticipated. No significant fiscal implication to the State is anticipated. The bill would repeal sections 39.9044 and 39.9048 of the Utilities Code. Section 39.9044 establishes a requirement that a minimum of 50 percent of the new generating capacity in Texas, other than renewable energy technologies, be fired by natural gas. This section also requires the Public Utility Commission (PUC) to establish a natural gas energy credits trading program. Section 39.9048 expressed that it is the intent of the legislature that the cost of generating electricity remain as low as possible and that the state establish and publicize a program to keep the costs of fuel, such as natural gas, used for generating electricity low. The bill would require the PUC to amend current rules to conform to the provisions of the bill. Based on the analysis of the PUC, duties and responsibilities associated with implementing the provisions of the bill could be accomplished by utilizing existing resources. The bill would repeal sections 39.9044 and 39.9048 of the Utilities Code. Section 39.9044 establishes a requirement that a minimum of 50 percent of the new generating capacity in Texas, other than renewable energy technologies, be fired by natural gas. This section also requires the Public Utility Commission (PUC) to establish a natural gas energy credits trading program. Section 39.9048 expressed that it is the intent of the legislature that the cost of generating electricity remain as low as possible and that the state establish and publicize a program to keep the costs of fuel, such as natural gas, used for generating electricity low. The bill would require the PUC to amend current rules to conform to the provisions of the bill. Based on the analysis of the PUC, duties and responsibilities associated with implementing the provisions of the bill could be accomplished by 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 473 Public Utility Commission of Texas LBB Staff: JOB, KJG, ES JOB, KJG, ES