COMMITTEE ON LEGISLATIVE RESEARCH

OVERSIGHT DIVISION

FISCAL NOTE

L.R. No.:         4466-01

Bill No.:          HB 1862

Subject:           Energy: Housing; Public Service Commission; Natural Resources Department; Utilities

Type:              Original

Date:               April 21, 2008

Bill Summary:           Establishes the Missouri Alternative Energy Loan Authority to provide low-interest loans to public and private entities for financing renewable energy products and services

FISCAL SUMMARY

Numbers within parentheses: ( ) indicate costs or losses. This fiscal note contains 6 pages.

☐ Estimated Total Net Effect on All funds expected to exceed $100,000 savings or (cost).

☒ Estimated Net Effect on General Revenue Fund expected to exceed $100,000 (cost).

FISCAL ANALYSIS

ASSUMPTION

Officials from the Missouri Senate that this proposal either has no fiscal impact as it relates to their agency or minimal costs which can be absorbed by present appropriations.

Officials from the Office of the Governor state this proposal will result in no added cost to the Governor's Office.

Officials from the Office of Secretary of State (SOS) assume many bills considered by the General Assembly include provisions allowing or requiring agencies to submit rules and regulations to implement the act. The SOS is provided with core funding to handle a certain amount of normal activity resulting from each year’s legislative session. The fiscal impact to the SOS office for Administrative Rules for this proposal is less than $2,500. The SOS recognizes this is a small amount and does not expect additional funding would be required to meet these costs. However, SOS also recognizes that many such bills may be passed in a given year and that collectively the costs may be in excess of what the SOS can sustain with their core budget. Any additional required funding would be handled through the budget process.

Officials from the Office of State Treasurer state that the proposal, as written, has no direct fiscal impact on their agency.

Officials from the Department of Economic Development - Public Service Commission (PSC) and Office of Public Counsel state this proposal does not affect the PSC other than including the Public Service Commission in the definition section of the proposal.

Officials from the Department of Natural Resources (DNR) assume the department's Energy Center would require resources to carry out the duties that would result from this proposal with regard to rule making, financial administration including loan application review, technical review and loan closing; general and specific inquires regarding loans available through the Authority and record retention.

DNR assumes they would request one (1) Energy Specialist II, one (1) Energy Engineer II and 0.5 Office Support Assistant to implement this proposal.

Oversight assumes that it is not known if all of the initial appropriation of $15,000,000 to the Missouri Alternative Energy Loan Authority Fund will be distributed the first year to eligible entities or if there will be carryover to future years. Oversight further assumes that income in the ASSUMPTION (continued)

form of loan repayments, fees, and charges may begin to be credited to the fund beginning in FY 2009.

FISCAL IMPACT - Small Business

The bill would stimulate the availability, sale and installation of energy efficiency and renewable energy products throughout the state.

FISCAL DESCRIPTION

This proposed legislation establishes the Missouri Alternative Energy Loan Authority, within the Department of Natural Resources, to provide low-interest loans to public and private entities for the purpose of financing various energy-saving projects and services. The authority will consist of seven members appointed by the Governor with the advice and consent of the Senate. The authority must file an annual financial statement with the department director.

An initial appropriation of $15 million to the newly created Missouri Alternative Energy Loan Authority Fund will be made; and the fund may receive annual appropriations from the General

Assembly as well as from any gifts, contributions, grants, or bequests.

This legislation is not federally mandated, would not duplicate any other program and would not require additional capital improvements or rental space.

SOURCES OF INFORMATION

Department of Economic Development

            Public Service Commission

            Office of Public Counsel

Department of Natural Resources

Office of the Governor

Missouri Senate

Office of State Treasurer

Office of Secretary of State

            Administrative Rules Division

                                                                                                Mickey Wilson, CPA

                                                                                                Director

                                                                                                April 21, 2008