LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 85TH LEGISLATIVE REGULAR SESSION April 9, 2017 TO: Honorable Drew Darby, Chair, House Committee on Energy Resources FROM: Ursula Parks, Director, Legislative Budget Board IN RE:HB2715 by Darby (Relating to the composition and use of money in the oil and gas regulation and cleanup fund.), As Introduced Estimated Two-year Net Impact to General Revenue Related Funds for HB2715, As Introduced: a negative impact of ($65,567,000) through the biennium ending August 31, 2019. In addition, a positive impact of $65,567,000 to General Revenue Dedicated Account 5155 would be realized through the biennium ending August 31, 2019. 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, 85TH LEGISLATIVE REGULAR SESSION
April 9, 2017
TO: Honorable Drew Darby, Chair, House Committee on Energy Resources FROM: Ursula Parks, Director, Legislative Budget Board IN RE:HB2715 by Darby (Relating to the composition and use of money in the oil and gas regulation and cleanup fund.), As Introduced
TO: Honorable Drew Darby, Chair, House Committee on Energy Resources
FROM: Ursula Parks, Director, Legislative Budget Board
IN RE: HB2715 by Darby (Relating to the composition and use of money in the oil and gas regulation and cleanup fund.), As Introduced
Honorable Drew Darby, Chair, House Committee on Energy Resources
Honorable Drew Darby, Chair, House Committee on Energy Resources
Ursula Parks, Director, Legislative Budget Board
Ursula Parks, Director, Legislative Budget Board
HB2715 by Darby (Relating to the composition and use of money in the oil and gas regulation and cleanup fund.), As Introduced
HB2715 by Darby (Relating to the composition and use of money in the oil and gas regulation and cleanup fund.), As Introduced
Estimated Two-year Net Impact to General Revenue Related Funds for HB2715, As Introduced: a negative impact of ($65,567,000) through the biennium ending August 31, 2019. In addition, a positive impact of $65,567,000 to General Revenue Dedicated Account 5155 would be realized through the biennium ending August 31, 2019. 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 HB2715, As Introduced: a negative impact of ($65,567,000) through the biennium ending August 31, 2019. In addition, a positive impact of $65,567,000 to General Revenue Dedicated Account 5155 would be realized through the biennium ending August 31, 2019.
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 2018 ($32,485,000) 2019 ($33,082,000) 2020 ($33,684,000) 2021 ($34,290,000) 2022 ($34,900,000)
2018 ($32,485,000)
2019 ($33,082,000)
2020 ($33,684,000)
2021 ($34,290,000)
2022 ($34,900,000)
All Funds, Five-Year Impact: Fiscal Year Probable Savings/(Cost) fromGeneral Revenue Fund1 Probable Savings/(Cost) fromOil & Gas Regulation5155 2018 ($32,485,000) $32,485,000 2019 ($33,082,000) $33,082,000 2020 ($33,684,000) $33,684,000 2021 ($34,290,000) $34,290,000 2022 ($34,900,000) $34,900,000
Fiscal Year Probable Savings/(Cost) fromGeneral Revenue Fund1 Probable Savings/(Cost) fromOil & Gas Regulation5155 2018 ($32,485,000) $32,485,000 2019 ($33,082,000) $33,082,000 2020 ($33,684,000) $33,684,000 2021 ($34,290,000) $34,290,000 2022 ($34,900,000) $34,900,000
2018 ($32,485,000) $32,485,000
2019 ($33,082,000) $33,082,000
2020 ($33,684,000) $33,684,000
2021 ($34,290,000) $34,290,000
2022 ($34,900,000) $34,900,000
Fiscal Analysis
This bill would amend the Natural Resources Code and the Utilities Code to redirect certain revenues collected by the Railroad Commission (RRC) from General Revenue to General Revenue-Dedicated Oil and Gas Regulation and Cleanup Account No. 5155 (Fund 5155). The bill would expand the authority of RRC to use funds in Fund 5155 for regulatory programs related to liquefied petroleum gas, compressed natural gas, liquefied natural gas safety, the regulation of the rates and services of gas utilities, and the administration of surface mining. The bill would take effect September 01, 2017. 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.
Methodology
The fiscal impact analysis is based on the Comptroller's 2018-19 Biennial Revenue Estimate. Annual revenue losses in General Revenue would be offset by gains in Fund 5155 under the provisions of the bill.
Local Government Impact
No significant fiscal implication to units of local government is anticipated.
Source Agencies: 304 Comptroller of Public Accounts, 455 Railroad Commission
304 Comptroller of Public Accounts, 455 Railroad Commission
LBB Staff: UP, SZ, MW, PBO
UP, SZ, MW, PBO