LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 87TH LEGISLATIVE REGULAR SESSION May 2, 2021 TO: Honorable Brooks Landgraf, Chair, House Committee on Environmental Regulation FROM: Jerry McGinty, Director, Legislative Budget Board IN RE: HB2539 by Turner, John (Relating to the distribution of funds designated for the low-income vehicle repair assistance, retrofit, and accelerated vehicle retirement program.), Committee Report 1st House, Substituted Estimated Two-year Net Impact to General Revenue Related Funds for HB2539, Committee Report 1st House, Substituted : an impact of $0 through the biennium ending August 31, 2023.However, there would be a fiscal impact of ($176,200,000) to Clean Air Account 151 in the 2022-23 biennium.The Texas Commission on Environmental Quality is required to implement a provision of this Act only if the legislature appropriates money specifically for that purpose. If the legislature does not appropriate money specifically for that purpose, the Texas Commission on Environmental Quality may, but is not required to, implement a provision of this Act using other appropriations available for that purpose. 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 toGeneral Revenue Related Funds2022$02023$02024$02025$02026$0All Funds, Five-Year Impact: Fiscal Year Probable Savings/(Cost) fromClean Air Account1512022($176,200,000)2023$02024$02025$02026$0 Fiscal AnalysisThe bill would amend the Health and Safety Code to require the Texas Commission on Environmental Quality (TCEQ) to distribute fees collected for the low-income vehicle repair assistance, retrofit, and accelerated vehicle retirement program (LIRAP) to certain counties for use in the Local Initiative Projects (LIP) program. The bill would apply only to counties that are or were participating in LIRAP and have remitted LIRAP fees to the state. TCEQ would be required to distribute available LIRAP fees collected before September 1, 2021 by January 1, 2022 in an amount proportional to the amount collected in the counties or regions in which the counties are located. The bill would take effect September 1, 2021. LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 87TH LEGISLATIVE REGULAR SESSION May 2, 2021 TO: Honorable Brooks Landgraf, Chair, House Committee on Environmental Regulation FROM: Jerry McGinty, Director, Legislative Budget Board IN RE: HB2539 by Turner, John (Relating to the distribution of funds designated for the low-income vehicle repair assistance, retrofit, and accelerated vehicle retirement program.), Committee Report 1st House, Substituted TO: Honorable Brooks Landgraf, Chair, House Committee on Environmental Regulation FROM: Jerry McGinty, Director, Legislative Budget Board IN RE: HB2539 by Turner, John (Relating to the distribution of funds designated for the low-income vehicle repair assistance, retrofit, and accelerated vehicle retirement program.), Committee Report 1st House, Substituted 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 HB2539 by Turner, John (Relating to the distribution of funds designated for the low-income vehicle repair assistance, retrofit, and accelerated vehicle retirement program.), Committee Report 1st House, Substituted HB2539 by Turner, John (Relating to the distribution of funds designated for the low-income vehicle repair assistance, retrofit, and accelerated vehicle retirement program.), Committee Report 1st House, Substituted Estimated Two-year Net Impact to General Revenue Related Funds for HB2539, Committee Report 1st House, Substituted : an impact of $0 through the biennium ending August 31, 2023.However, there would be a fiscal impact of ($176,200,000) to Clean Air Account 151 in the 2022-23 biennium.The Texas Commission on Environmental Quality is required to implement a provision of this Act only if the legislature appropriates money specifically for that purpose. If the legislature does not appropriate money specifically for that purpose, the Texas Commission on Environmental Quality may, but is not required to, implement a provision of this Act using other appropriations available for that purpose. 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 HB2539, Committee Report 1st House, Substituted : an impact of $0 through the biennium ending August 31, 2023.However, there would be a fiscal impact of ($176,200,000) to Clean Air Account 151 in the 2022-23 biennium.The Texas Commission on Environmental Quality is required to implement a provision of this Act only if the legislature appropriates money specifically for that purpose. If the legislature does not appropriate money specifically for that purpose, the Texas Commission on Environmental Quality may, but is not required to, implement a provision of this Act using other appropriations available for that purpose. The bill would make no appropriation but could provide the legal basis for an appropriation of funds to implement the provisions of the bill. However, there would be a fiscal impact of ($176,200,000) to Clean Air Account 151 in the 2022-23 biennium. The Texas Commission on Environmental Quality is required to implement a provision of this Act only if the legislature appropriates money specifically for that purpose. If the legislature does not appropriate money specifically for that purpose, the Texas Commission on Environmental Quality may, but is not required to, implement a provision of this Act using other appropriations available for that purpose. 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: 2022 $0 2023 $0 2024 $0 2025 $0 2026 $0 All Funds, Five-Year Impact: 2022 ($176,200,000) 2023 $0 2024 $0 2025 $0 2026 $0 Fiscal Analysis The bill would amend the Health and Safety Code to require the Texas Commission on Environmental Quality (TCEQ) to distribute fees collected for the low-income vehicle repair assistance, retrofit, and accelerated vehicle retirement program (LIRAP) to certain counties for use in the Local Initiative Projects (LIP) program. The bill would apply only to counties that are or were participating in LIRAP and have remitted LIRAP fees to the state. TCEQ would be required to distribute available LIRAP fees collected before September 1, 2021 by January 1, 2022 in an amount proportional to the amount collected in the counties or regions in which the counties are located. The bill would take effect September 1, 2021. The bill would amend the Health and Safety Code to require the Texas Commission on Environmental Quality (TCEQ) to distribute fees collected for the low-income vehicle repair assistance, retrofit, and accelerated vehicle retirement program (LIRAP) to certain counties for use in the Local Initiative Projects (LIP) program. The bill would apply only to counties that are or were participating in LIRAP and have remitted LIRAP fees to the state. TCEQ would be required to distribute available LIRAP fees collected before September 1, 2021 by January 1, 2022 in an amount proportional to the amount collected in the counties or regions in which the counties are located. The bill would take effect September 1, 2021. Methodology Based on information provided from TCEQ and the Comptroller of Public Accounts, $176,200,000 in LIRAP fees currently exist in the fund balances of the General Revenue-Dedicated Clean Air Account No. 151. For the purposes of this analysis, it is assumed that TCEQ would distribute these funds to eligible counties in fiscal year 2022 for use in the Local Initiative Projects (LIP) program. Local Government Impact The bill would provide funding for formerly participating counties in LIRAP to implement LIP programs contingent on appropriation of funding for this purpose by the Eighty-seventh Legislature. 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, SD JMc, AJL, MW, GDZ, SD