LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 88TH LEGISLATIVE REGULAR SESSION April 12, 2023 TO: Honorable Brooks Landgraf, Chair, House Committee on Environmental Regulation FROM: Jerry McGinty, Director, Legislative Budget Board IN RE: HB2502 by Reynolds (Relating to the creation of an energy efficiency loan guarantee program.), As Introduced Estimated Two-year Net Impact to General Revenue Related Funds for HB2502, As Introduced : a negative impact of ($1,374,000) through the biennium ending August 31, 2025 for administrative costs incurred by the State Energy Conservation Office within the office of the Comptroller of Public Accounts. There would be an additional indeterminate cost to issue loans or provide grants for purposes specified in the bill. The cost would be dependent on the appropriations, federal grants, and or private capital available for this 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 Funds2024($687,000)2025($687,000)2026($787,000)2027($787,000)2028($787,000)All Funds, Five-Year Impact: Fiscal Year Probable (Cost) fromGeneral Revenue Fund1 Change in Number of State Employees from FY 20232024($687,000)1.02025($687,000)1.02026($787,000)1.02027($787,000)1.02028($787,000)1.0 Fiscal AnalysisThe bill would amend Chapter 338, Health and Safety Code, creating the Energy Efficiency Loan Guarantee Program administered by the Comptroller to issue or guarantee loans for energy audits, upgrades, or retrofits to increase the energy efficiency of commercial buildings and residences that are not newly constructed.The bill would authorize the State Energy Conservation Office (SECO) to use a portion of the money from federal grants, leveraged private capital, or state resources to fund grants, technical assistance, or administrative expenses.The bill would require SECO to submit an annual report to the Texas Commission on Environmental Quality (TCEQ) and the Texas A&M Engineering Experiment Station that evaluates the effectiveness of the program and quantifies energy savings and emissions reductions as a result of the program.
LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 88TH LEGISLATIVE REGULAR SESSION
April 12, 2023
TO: Honorable Brooks Landgraf, Chair, House Committee on Environmental Regulation FROM: Jerry McGinty, Director, Legislative Budget Board IN RE: HB2502 by Reynolds (Relating to the creation of an energy efficiency loan guarantee program.), As Introduced
TO: Honorable Brooks Landgraf, Chair, House Committee on Environmental Regulation
FROM: Jerry McGinty, Director, Legislative Budget Board
IN RE: HB2502 by Reynolds (Relating to the creation of an energy efficiency loan guarantee program.), 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
HB2502 by Reynolds (Relating to the creation of an energy efficiency loan guarantee program.), As Introduced
HB2502 by Reynolds (Relating to the creation of an energy efficiency loan guarantee program.), As Introduced
Estimated Two-year Net Impact to General Revenue Related Funds for HB2502, As Introduced : a negative impact of ($1,374,000) through the biennium ending August 31, 2025 for administrative costs incurred by the State Energy Conservation Office within the office of the Comptroller of Public Accounts. There would be an additional indeterminate cost to issue loans or provide grants for purposes specified in the bill. The cost would be dependent on the appropriations, federal grants, and or private capital available for this 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 HB2502, As Introduced : a negative impact of ($1,374,000) through the biennium ending August 31, 2025 for administrative costs incurred by the State Energy Conservation Office within the office of the Comptroller of Public Accounts. There would be an additional indeterminate cost to issue loans or provide grants for purposes specified in the bill. The cost would be dependent on the appropriations, federal grants, and or private capital available for this 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.
The bill would make no appropriation but could provide the legal basis for an appropriation of funds to implement the provisions of the bill.
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:
2024 ($687,000)
2025 ($687,000)
2026 ($787,000)
2027 ($787,000)
2028 ($787,000)
All Funds, Five-Year Impact:
2024 ($687,000) 1.0
2025 ($687,000) 1.0
2026 ($787,000) 1.0
2027 ($787,000) 1.0
2028 ($787,000) 1.0
Fiscal Analysis
The bill would amend Chapter 338, Health and Safety Code, creating the Energy Efficiency Loan Guarantee Program administered by the Comptroller to issue or guarantee loans for energy audits, upgrades, or retrofits to increase the energy efficiency of commercial buildings and residences that are not newly constructed.The bill would authorize the State Energy Conservation Office (SECO) to use a portion of the money from federal grants, leveraged private capital, or state resources to fund grants, technical assistance, or administrative expenses.The bill would require SECO to submit an annual report to the Texas Commission on Environmental Quality (TCEQ) and the Texas A&M Engineering Experiment Station that evaluates the effectiveness of the program and quantifies energy savings and emissions reductions as a result of the program.
The bill would authorize the State Energy Conservation Office (SECO) to use a portion of the money from federal grants, leveraged private capital, or state resources to fund grants, technical assistance, or administrative expenses.
The bill would require SECO to submit an annual report to the Texas Commission on Environmental Quality (TCEQ) and the Texas A&M Engineering Experiment Station that evaluates the effectiveness of the program and quantifies energy savings and emissions reductions as a result of the program.
Methodology
The Comptroller would need to contract with a lending institution in order to guarantee loans outlined in the bill. The Comptroller's office estimates the cost to contract with a lending institution to be $600,000 in each fiscal year of the 2024-25 biennium, increasing to $700,000 per year in future biennia. It is assumed that the Comptroller would require additional staff to implement the provisions of the bill. According to the Comptroller's Office, one Program Specialist V would be needed to hold a Certified Texas Contract Manager (CTCM) certification to handle the anticipated administrative workload, loan defaults, and customer service requirements that the Comptroller would expect upon implementation of the bill. Personnel related costs, including salaries, travel, and overhead are estimated to be $87,000 per fiscal year.In addition, the amount of any federal grants, other funds, or appropriations that would be received by the Comptroller's office is unknown. Disbursements for program grants and other authorized spending is likewise unknown. Therefore, there would be additional indeterminate costs for the bill's implementation.
Local Government Impact
No fiscal implication to units of local government is anticipated.
Source Agencies: b > td > 304 Comptroller of Public Accounts
304 Comptroller of Public Accounts
LBB Staff: b > td > JMc, KDw, LCO, CSmi, NV, CMA
JMc, KDw, LCO, CSmi, NV, CMA