LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 81ST LEGISLATIVE REGULAR SESSION April 10, 2009 TO: Honorable Byron Cook, Chair, House Committee on Environmental Regulation FROM: John S. O'Brien, Director, Legislative Budget Board IN RE:HB3942 by Truitt (Relating to a pilot test of an advanced control technology for the reduction of nitrogen oxides emissions.), As Introduced Estimated Two-year Net Impact to General Revenue Related Funds for HB3942, As Introduced: an impact of $0 through the biennium ending August 31, 2011. The bill would make no appropriation but could provide the legal basis for an appropriation of funds to implement the provisions of the bill. LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 81ST LEGISLATIVE REGULAR SESSION April 10, 2009 TO: Honorable Byron Cook, Chair, House Committee on Environmental Regulation FROM: John S. O'Brien, Director, Legislative Budget Board IN RE:HB3942 by Truitt (Relating to a pilot test of an advanced control technology for the reduction of nitrogen oxides emissions.), As Introduced TO: Honorable Byron Cook, Chair, House Committee on Environmental Regulation FROM: John S. O'Brien, Director, Legislative Budget Board IN RE: HB3942 by Truitt (Relating to a pilot test of an advanced control technology for the reduction of nitrogen oxides emissions.), As Introduced Honorable Byron Cook, Chair, House Committee on Environmental Regulation Honorable Byron Cook, Chair, House Committee on Environmental Regulation John S. O'Brien, Director, Legislative Budget Board John S. O'Brien, Director, Legislative Budget Board HB3942 by Truitt (Relating to a pilot test of an advanced control technology for the reduction of nitrogen oxides emissions.), As Introduced HB3942 by Truitt (Relating to a pilot test of an advanced control technology for the reduction of nitrogen oxides emissions.), As Introduced Estimated Two-year Net Impact to General Revenue Related Funds for HB3942, As Introduced: an impact of $0 through the biennium ending August 31, 2011. The bill would make no appropriation but could provide the legal basis for an appropriation of funds to implement the provisions of the bill. Estimated Two-year Net Impact to General Revenue Related Funds for HB3942, As Introduced: an impact of $0 through the biennium ending August 31, 2011. The bill would make no appropriation but could provide the legal basis for an appropriation of funds to implement the provisions of the bill. General Revenue-Related Funds, Five-Year Impact: Fiscal Year Probable Net Positive/(Negative) Impact to General Revenue Related Funds 2010 $0 2011 $0 2012 $0 2013 $0 2014 $0 2010 $0 2011 $0 2012 $0 2013 $0 2014 $0 All Funds, Five-Year Impact: Fiscal Year Probable Savings/(Cost) fromClean Air Account151 2010 ($750,000) 2011 ($250,000) 2012 $0 2013 $0 2014 $0 Fiscal Year Probable Savings/(Cost) fromClean Air Account151 2010 ($750,000) 2011 ($250,000) 2012 $0 2013 $0 2014 $0 2010 ($750,000) 2011 ($250,000) 2012 $0 2013 $0 2014 $0 Fiscal Analysis The bill would require the Texas Commission on Environmental Quality (TCEQ) to conduct a pilot test of an advanced nitrogen oxide (NOx) control technology and selective catalytic reduction (SCR) technology on one cement kiln in a nonattainment or near nonattainment area. Methodology Assuming the TCEQ would use a contractor to conduct the pilot test for NOx control technology and SCR technology and that a cement kiln owner would volunteer to participate in the pilot test, it is estimated that the study costs would total $1.0 million and be spread out over a two-year period-- $750,000 in fiscal year 2010 and $250,000 in fiscal year 2011--and be paid out of the General Revenue-Dedicated Clean Air Account No. 151. The actual cost would depend on the length of data collection and the complexity of the SCR design installation. This estimate assumes that the TCEQ would use existing resources to oversee contract performance and produce a report on the pilot test. Assuming the TCEQ would use a contractor to conduct the pilot test for NOx control technology and SCR technology and that a cement kiln owner would volunteer to participate in the pilot test, it is estimated that the study costs would total $1.0 million and be spread out over a two-year period-- $750,000 in fiscal year 2010 and $250,000 in fiscal year 2011--and be paid out of the General Revenue-Dedicated Clean Air Account No. 151. The actual cost would depend on the length of data collection and the complexity of the SCR design installation. This estimate assumes that the TCEQ would use existing resources to oversee contract performance and produce a report on the pilot test. Local Government Impact No fiscal implication to units of local government is anticipated. Source Agencies: 582 Commission on Environmental Quality 582 Commission on Environmental Quality LBB Staff: JOB, ZS, TL, SD JOB, ZS, TL, SD