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Enrolled Bill Summary

Enrolled Bill Summary

Legislative Session: 79(R)

House Bill 2481

House Author:  Bonnen et al.

Effective:  9-1-05

Senate Sponsor:  Harris


            House Bill 2481 amends the Health and Safety Code, Tax Code, and Transportation Code to  extend the Texas Emissions Reduction Program (TERP)  for two years until 2010.  The bill changes the allocation of TERP funding, beginning September 1, 2008, to increase from 9.5 percent to 33 percent the portion of TERP funds used for the research and development of new emissions-reducing technologies and to reduce the portion used for the diesel emissions reduction program from 87.5 percent to 64 percent.  The bill further specifies uses of the funds in certain non-attainment areas.  It also provides for rebate grants in order to streamline the Texas Commission on Environmental Quality's (TCEQ) emissions reduction incentive program. 

            House Bill 2481 abolishes the Texas Council on Environmental Technology and replaces its representive on the TERP advisory board with a representative of a certain Houston-based nonprofit organization conducting air quality research.  The bill requires the Energy Systems Laboratory at Texas A&M to quantify emissions reductions in its annual report to TCEQ and to assist TCEQ and affected political subdivisions in quantifying credits for emissions reductions attributable to energy efficiency programs, including renewable energy programs.

            Current law provides that funds obtained through automobile title transfer fees go to the TERP fund until FY08, when they are to be deposited in the Texas Mobility Fund.  House Bill 2481 provides that, during fiscal years 2008-2010, $5 of each fee goes to the TERP fund and the rest to the Texas Mobility Fund to increase the Texas Department of Transportation's (TxDOT) bonding capacity.   TxDOT will  repay the TERP fund the entire amount of funds it receives from title transfer fees during this two-year period.  Beginning in 2010, all money from the fees flows directly to TxDOT and is not to be repaid to TERP.  To repay the TERP fund, TxDOT cannot use money from the federal congestion mitigation and air quality improvement funds or money from the  state highway fund that is required to be used for constitutionally dedicated purposes.  The bill also prohibits TxDOT from using any funds obtained from any TERP funding sources to finance toll projects. 

            Finally, House Bill 2481 requires TCEQ to adopt by reference the interstate rule and the clean air mercury rule of the federal Clean Air Act and to adopt a state implementation plan in accordance with those rules.  It also requires TCEQ to conduct a study on the availability of mercury control technology, the timeline for implementing reductions under federal rules, and the fiscal impact to the state of higher mercury emissions and to report its findings by September 1, 2006.