LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 89TH LEGISLATIVE REGULAR SESSION April 13, 2025 TO: Honorable Drew Darby, Chair, House Committee on Energy Resources FROM: Jerry McGinty, Director, Legislative Budget Board IN RE: HB5224 by Guillen (Relating to the critical designation of certain natural gas facilities.), As Introduced Estimated Two-year Net Impact to General Revenue Related Funds for HB5224, As Introduced: a negative impact of ($3,077,500) through the biennium ending August 31, 2027. 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($3,077,500)2027$02028$02029$02030$0All Funds, Five-Year Impact: Fiscal Year Probable (Cost) fromGeneral Revenue Fund12026($3,077,500)2027$02028$02029$02030$0 Fiscal AnalysisThe bill would amend the Natural Resources Code to require the Railroad Commission (RRC) to collaborate with the Public Utility Commission of Texas (PUCT) in creating rules to establish criteria for a facility designated as a critical facility to be designated as critical on a seasonal basis. The bill would require the RRC to determine which seasons each facility is designated as being critical and the beginning and ending of each season. The bill would require the RRC to grant any person who owns or operates a facility which has been designated as critical the right to apply to RRC to be designated as critical on a seasonal basis. The bill would establish the application process for seasonal critical facility designation and would require the RRC to provide a list of facilities designated as seasonal critical facilities to the PUCT.The bill would require the RRC and the PUCT to adopt rules by February 1, 2026. The RRC would be required to provide a list of facilities designates as being critical on a seasonal basis to the PUCT by March 31, 2026.
LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 89TH LEGISLATIVE REGULAR SESSION
April 13, 2025
TO: Honorable Drew Darby, Chair, House Committee on Energy Resources FROM: Jerry McGinty, Director, Legislative Budget Board IN RE: HB5224 by Guillen (Relating to the critical designation of certain natural gas facilities.), As Introduced
TO: Honorable Drew Darby, Chair, House Committee on Energy Resources
FROM: Jerry McGinty, Director, Legislative Budget Board
IN RE: HB5224 by Guillen (Relating to the critical designation of certain natural gas facilities.), As Introduced
Honorable Drew Darby, Chair, House Committee on Energy Resources
Honorable Drew Darby, Chair, House Committee on Energy Resources
Jerry McGinty, Director, Legislative Budget Board
Jerry McGinty, Director, Legislative Budget Board
HB5224 by Guillen (Relating to the critical designation of certain natural gas facilities.), As Introduced
HB5224 by Guillen (Relating to the critical designation of certain natural gas facilities.), As Introduced
Estimated Two-year Net Impact to General Revenue Related Funds for HB5224, As Introduced: a negative impact of ($3,077,500) through the biennium ending August 31, 2027. 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 HB5224, As Introduced: a negative impact of ($3,077,500) through the biennium ending August 31, 2027. 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:
2026 ($3,077,500)
2027 $0
2028 $0
2029 $0
2030 $0
All Funds, Five-Year Impact:
2026 ($3,077,500)
2027 $0
2028 $0
2029 $0
2030 $0
Fiscal Analysis
The bill would amend the Natural Resources Code to require the Railroad Commission (RRC) to collaborate with the Public Utility Commission of Texas (PUCT) in creating rules to establish criteria for a facility designated as a critical facility to be designated as critical on a seasonal basis. The bill would require the RRC to determine which seasons each facility is designated as being critical and the beginning and ending of each season. The bill would require the RRC to grant any person who owns or operates a facility which has been designated as critical the right to apply to RRC to be designated as critical on a seasonal basis. The bill would establish the application process for seasonal critical facility designation and would require the RRC to provide a list of facilities designated as seasonal critical facilities to the PUCT.The bill would require the RRC and the PUCT to adopt rules by February 1, 2026. The RRC would be required to provide a list of facilities designates as being critical on a seasonal basis to the PUCT by March 31, 2026.
The bill would require the RRC and the PUCT to adopt rules by February 1, 2026. The RRC would be required to provide a list of facilities designates as being critical on a seasonal basis to the PUCT by March 31, 2026.
Methodology
Based on information provided by the RRC, this analysis assumes $3,077,500 in General Revenue Funds in fiscal year 2026 would be required for technology costs to change multiple systems that support the Critical Infrastructure Division and the Texas Electricity Supply Chain Map to implement the provisions of the bill. According to the RRC, professional service fees would be needed to pay for 12,310 software development project hours. RRC estimates most of the programming to be accomplished through venders at an hourly rate of $250 per hour. According to the RRC, the Critical Infrastructure Designation (CID) and Critical Infrastructure Exemption (CIX) systems would require updates to allow for additional filing sessions, changes to queries to accommodate the new filing sessions, and modifications to notifications and automated letters. The Critical Infrastructure Inspections System (CIIS) would need modifications to collect new data and updated workflows to accommodate the new filing sessions. Modifications to the database structure and workflow of RRC MAP would also be needed. The bill would also require the development of new reports. The Texas Electricity Supply Chain Map would need changes to add new data elements collected in the critical infrastructure systems.
Based on information provided by the RRC, this analysis assumes $3,077,500 in General Revenue Funds in fiscal year 2026 would be required for technology costs to change multiple systems that support the Critical Infrastructure Division and the Texas Electricity Supply Chain Map to implement the provisions of the bill. According to the RRC, professional service fees would be needed to pay for 12,310 software development project hours. RRC estimates most of the programming to be accomplished through venders at an hourly rate of $250 per hour.
According to the RRC, the Critical Infrastructure Designation (CID) and Critical Infrastructure Exemption (CIX) systems would require updates to allow for additional filing sessions, changes to queries to accommodate the new filing sessions, and modifications to notifications and automated letters. The Critical Infrastructure Inspections System (CIIS) would need modifications to collect new data and updated workflows to accommodate the new filing sessions. Modifications to the database structure and workflow of RRC MAP would also be needed. The bill would also require the development of new reports. The Texas Electricity Supply Chain Map would need changes to add new data elements collected in the critical infrastructure systems.
Technology
It is assumed that the bill would require $3,077,500 in technology costs from the General Revenue Fund in fiscal year 2026 to provide for for 12,310 software development project hours for the CID, CIX, CIIS, and Texas Electricity Supply Chain Map systems.
Local Government Impact
No fiscal implication to units of local government is anticipated.
Source Agencies: b > td > 455 Railroad Commission, 473 Public Utility Commission of Texas
455 Railroad Commission, 473 Public Utility Commission of Texas
LBB Staff: b > td > JMc, RStu, MW, JOc
JMc, RStu, MW, JOc