LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 87TH LEGISLATIVE REGULAR SESSION April 11, 2021 TO: Honorable Brooks Landgraf, Chair, House Committee on Environmental Regulation FROM: Jerry McGinty, Director, Legislative Budget Board IN RE: HB2140 by Thompson, Ed (Relating to the administration of and funding for the Texas emissions reduction plan.), As Introduced No significant fiscal implication to the State is anticipated. A negative fiscal impact is anticipated to the Texas Emissions Reduction Plan Trust Fund outside the Treasury of $23,225,000 in fiscal year 2022 and $23,922,000 each subsequent fiscal year due to a reduced surcharges. The bill would amend the Health and Safety Code to increase the percentage of Texas Emission Reduction Plan (TERP) funding that can be used for the new technology implementation grant program and the clean fleet program. In addition, the bill would reduce the surcharge imposed on the retail sale, lease, or rental of certain new or used equipment from 1.5 to 1.0 percent of the sale price or the lease of the rental amount. Under current law, revenues from this surcharge would be deposited to the credit of the Texas Emission Reduction Plan Trust Fund (TERP Trust Fund), which is outside of the state treasury, beginning September 1, 2021, due to the enactment of House Bill 3745, Eighty-sixth Legislature, Regular Session, 2019; therefore, this bill's provisions would not have a significant fiscal impact to the state. Based on information provided by the Comptroller of Public Accounts, the Comptroller does not have projections for the fiscal impact that the reduction of the surcharge imposed under Section 151.0515 of the Tax Code would have on TERP revenues because those revenues would be deposited to the TERP Trust Fund held outside the Treasury beginning September 1, 2021.TCEQ would administer the TERP Trust Fund beginning September 1, 2021. Based on the analysis of TCEQ, the surcharge reduction would result in an estimated revenue decrease of $23,225,000 in fiscal year 2022 and $23,922,000 in each subsequent fiscal year to the TERP Trust Fund. Local Government ImpactAccording to TCEQ, the loss in revenue from the TERP surcharge could result in fewer TERP grants available for local and other governmental entities than would otherwise have been available in the fiscal biennium. Source Agencies: b > td > 304 Comptroller of Public Accounts, 582 Commission on Environmental Quality LBB Staff: b > td > JMc, AJL, MW, GDZ
LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 87TH LEGISLATIVE REGULAR SESSION
April 11, 2021
TO: Honorable Brooks Landgraf, Chair, House Committee on Environmental Regulation FROM: Jerry McGinty, Director, Legislative Budget Board IN RE: HB2140 by Thompson, Ed (Relating to the administration of and funding for the Texas emissions reduction plan.), As Introduced
TO: Honorable Brooks Landgraf, Chair, House Committee on Environmental Regulation
FROM: Jerry McGinty, Director, Legislative Budget Board
IN RE: HB2140 by Thompson, Ed (Relating to the administration of and funding for the Texas emissions reduction plan.), As Introduced
Honorable Brooks Landgraf, Chair, House Committee on Environmental Regulation
Honorable Brooks Landgraf, Chair, House Committee on Environmental Regulation
Jerry McGinty, Director, Legislative Budget Board
Jerry McGinty, Director, Legislative Budget Board
HB2140 by Thompson, Ed (Relating to the administration of and funding for the Texas emissions reduction plan.), As Introduced
HB2140 by Thompson, Ed (Relating to the administration of and funding for the Texas emissions reduction plan.), As Introduced
No significant fiscal implication to the State is anticipated. A negative fiscal impact is anticipated to the Texas Emissions Reduction Plan Trust Fund outside the Treasury of $23,225,000 in fiscal year 2022 and $23,922,000 each subsequent fiscal year due to a reduced surcharges.
No significant fiscal implication to the State is anticipated. A negative fiscal impact is anticipated to the Texas Emissions Reduction Plan Trust Fund outside the Treasury of $23,225,000 in fiscal year 2022 and $23,922,000 each subsequent fiscal year due to a reduced surcharges.
A negative fiscal impact is anticipated to the Texas Emissions Reduction Plan Trust Fund outside the Treasury of $23,225,000 in fiscal year 2022 and $23,922,000 each subsequent fiscal year due to a reduced surcharges.
The bill would amend the Health and Safety Code to increase the percentage of Texas Emission Reduction Plan (TERP) funding that can be used for the new technology implementation grant program and the clean fleet program. In addition, the bill would reduce the surcharge imposed on the retail sale, lease, or rental of certain new or used equipment from 1.5 to 1.0 percent of the sale price or the lease of the rental amount. Under current law, revenues from this surcharge would be deposited to the credit of the Texas Emission Reduction Plan Trust Fund (TERP Trust Fund), which is outside of the state treasury, beginning September 1, 2021, due to the enactment of House Bill 3745, Eighty-sixth Legislature, Regular Session, 2019; therefore, this bill's provisions would not have a significant fiscal impact to the state. Based on information provided by the Comptroller of Public Accounts, the Comptroller does not have projections for the fiscal impact that the reduction of the surcharge imposed under Section 151.0515 of the Tax Code would have on TERP revenues because those revenues would be deposited to the TERP Trust Fund held outside the Treasury beginning September 1, 2021.TCEQ would administer the TERP Trust Fund beginning September 1, 2021. Based on the analysis of TCEQ, the surcharge reduction would result in an estimated revenue decrease of $23,225,000 in fiscal year 2022 and $23,922,000 in each subsequent fiscal year to the TERP Trust Fund.
Based on information provided by the Comptroller of Public Accounts, the Comptroller does not have projections for the fiscal impact that the reduction of the surcharge imposed under Section 151.0515 of the Tax Code would have on TERP revenues because those revenues would be deposited to the TERP Trust Fund held outside the Treasury beginning September 1, 2021.TCEQ would administer the TERP Trust Fund beginning September 1, 2021. Based on the analysis of TCEQ, the surcharge reduction would result in an estimated revenue decrease of $23,225,000 in fiscal year 2022 and $23,922,000 in each subsequent fiscal year to the TERP Trust Fund.
Local Government Impact
According to TCEQ, the loss in revenue from the TERP surcharge could result in fewer TERP grants available for local and other governmental entities than would otherwise have been available in the fiscal biennium.
Source Agencies: b > td > 304 Comptroller of Public Accounts, 582 Commission on Environmental Quality
304 Comptroller of Public Accounts, 582 Commission on Environmental Quality
LBB Staff: b > td > JMc, AJL, MW, GDZ
JMc, AJL, MW, GDZ