LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 89TH LEGISLATIVE REGULAR SESSION March 27, 2025 TO: Honorable Brooks Landgraf, Chair, House Committee on Environmental Regulation FROM: Jerry McGinty, Director, Legislative Budget Board IN RE: HB1361 by Hernandez (Relating to the distribution of funds designated for the low-income vehicle repair assistance, retrofit, and accelerated vehicle retirement program.), As Introduced Estimated Two-year Net Impact to General Revenue Related Funds for HB1361, As Introduced: an impact of $0 through the biennium ending August 31, 2027. However, there would be a fiscal impact of ($176,300,000) to the Clean Air Account No. 151 in the 2026-27 biennium. 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 Funds2026$02027$02028$02029$02030$0All Funds, Five-Year Impact: Fiscal Year Probable (Cost) fromClean Air Account1512026($176,300,000)2027$02028$02029$02030$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, 2025, by January 1, 2026, in an amount proportional to the amount collected in the counties or regions in which the counties are located.The bill would expire September 1, 2029.
LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 89TH LEGISLATIVE REGULAR SESSION
March 27, 2025
TO: Honorable Brooks Landgraf, Chair, House Committee on Environmental Regulation FROM: Jerry McGinty, Director, Legislative Budget Board IN RE: HB1361 by Hernandez (Relating to the distribution of funds designated for the low-income vehicle repair assistance, retrofit, and accelerated vehicle retirement program.), As Introduced
TO: Honorable Brooks Landgraf, Chair, House Committee on Environmental Regulation
FROM: Jerry McGinty, Director, Legislative Budget Board
IN RE: HB1361 by Hernandez (Relating to the distribution of funds designated for the low-income vehicle repair assistance, retrofit, and accelerated vehicle retirement 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
HB1361 by Hernandez (Relating to the distribution of funds designated for the low-income vehicle repair assistance, retrofit, and accelerated vehicle retirement program.), As Introduced
HB1361 by Hernandez (Relating to the distribution of funds designated for the low-income vehicle repair assistance, retrofit, and accelerated vehicle retirement program.), As Introduced
Estimated Two-year Net Impact to General Revenue Related Funds for HB1361, As Introduced: an impact of $0 through the biennium ending August 31, 2027. However, there would be a fiscal impact of ($176,300,000) to the Clean Air Account No. 151 in the 2026-27 biennium. 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 HB1361, As Introduced: an impact of $0 through the biennium ending August 31, 2027. However, there would be a fiscal impact of ($176,300,000) to the Clean Air Account No. 151 in the 2026-27 biennium. 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 ($176,300,000) to the Clean Air Account No. 151 in the 2026-27 biennium. 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 ($176,300,000) to the Clean Air Account No. 151 in the 2026-27 biennium.
General Revenue-Related Funds, Five- Year Impact:
2026 $0
2027 $0
2028 $0
2029 $0
2030 $0
All Funds, Five-Year Impact:
2026 ($176,300,000)
2027 $0
2028 $0
2029 $0
2030 $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, 2025, by January 1, 2026, in an amount proportional to the amount collected in the counties or regions in which the counties are located.The bill would expire September 1, 2029.
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, 2025, by January 1, 2026, in an amount proportional to the amount collected in the counties or regions in which the counties are located.
The bill would expire September 1, 2029.
Methodology
Based on information provided from TCEQ and the Comptroller of Public Accounts, $176,300,000 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 2026 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-ninth 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, FV, MW, AJL
JMc, FV, MW, AJL