The bill would amend the Health and Safety Code to require the Texas Commission on Environmental Quality (TCEQ) to estimate the amount of foreign emissions at federal air quality monitoring sites in Texas nonattainment areas and create a recommendation to the Commission on whether to revise the state implementation plan (SIP) to account for those foreign emissions. The bill would define “foreign emissions” as emissions of air contaminants emanating from outside the United States.
The bill would require TCEQ to estimate the amount of foreign emissions at each federal air quality monitoring site located in each nonattainment area. The bill authorizes TCEQ to contract with a third party to produce the required estimates. The bill would require TCEQ to update the state implementation plan (SIP) to account for foreign emissions as permissible under federal law.
TCEQ is authorized to expend up to $2,500,000 per fiscal year out of the Texas Emissions Reduction Plan (TERP) Trust Fund (TERP Trust Fund) to produce research and demonstrations to the United States Environmental Protection Agency showing the impact of foreign emissions or an exceptional event. Based on information provided by TCEQ, the agency estimates that it would require $1,000,000 in fiscal year 2026 and $500,000 in fiscal year 2027 from the TERP Trust Fund to procure a contract with a third-party entity to obtain the estimate of foreign emissions in nonattainment areas. The bill would have no fiscal implication to the state due to the TERP Trust Fund being located outside the Treasury.
According to the Commission on Environmental Quality, the agency would require additional FTEs to implement the provisions of the bill. This analysis assumes that any additional administrative costs related to implementing the program would be funded out of the TERP Trust Fund. The agency has indicated that all available funding under the TERP program's statutory cap ($16,000,000) on administrative functions funded through the TERP Trust Fund have been allocated to operate the program. This analysis assumes that the agency would make allocation adjustments as necessary under the statutory program administrative cap to implement the provisions of the bill.
No significant fiscal implication to units of local government is anticipated.