By Eckels H.B. No. 2211
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to regional organizations to promote the coexistence of
1-3 air quality improvement and economic development in nonattainment
1-4 areas of the state.
1-5 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-6 SECTION 1. Subtitle C, Title 5, Health and Safety Code, is
1-7 amended by adding Chapter 384 to read as follows:
1-8 CHAPTER 384. AREA EMISSION REDUCTION CREDIT ORGANIZATIONS
1-9 Sec. 384.001. DEFINITIONS. In this chapter:
1-10 (1) "Board" means the Texas Air Control Board or its
1-11 successor agency.
1-12 (2) "Emission reduction credit" means a credit
1-13 recognized by the Texas Air Control Board and the United States
1-14 Environmental Protection Agency for reductions in emissions of air
1-15 pollutants.
1-16 (3) "Nonattainment area" means an area so designated
1-17 within the meaning of Section 7407(d) of the federal Clean Air Act
1-18 (42 U.S.C. Section 7407).
1-19 (4) "Organization" means an area emission reduction
1-20 credit organization.
1-21 (5) "Regional council of governments" means a regional
1-22 planning commission established under Chapter 391, Local Government
1-23 Code.
2-1 Sec. 384.002. PURPOSE. The purpose of an area emission
2-2 reduction credit organization shall be to promote the coexistence
2-3 of the improvement of air quality and economic development within
2-4 the region through the acquisition and distribution of emission
2-5 reduction credits. Its activities may include the use of emission
2-6 reduction credits to help meet federal reasonable further progress
2-7 requirements as well as using emission reduction credits to
2-8 facilitate the issuance of permits.
2-9 Sec. 384.003. ESTABLISHMENT OF ORGANIZATION. A regional
2-10 council of governments whose area of jurisdiction contains a
2-11 nonattainment area may establish an organization on approval by the
2-12 board of its creation petition as provided by Section 384.015.
2-13 Sec. 384.004. FUNCTIONS; ORGANIZATION. An organization
2-14 created under this chapter shall:
2-15 (1) represent all counties within a nonattainment
2-16 area;
2-17 (2) have a board of directors appointed in accordance
2-18 with the provisions of this chapter;
2-19 (3) have the power, authority, and limitations
2-20 provided by this chapter; and
2-21 (4) have bylaws setting forth its organization and
2-22 procedures, including provisions for conflicts of interest.
2-23 Sec. 384.005. OFFSET REQUIREMENTS. All transactions of an
2-24 organization involving emission reduction credits shall be subject
2-25 to the offset requirements of the federal Clean Air Act (42 U.S.C.
3-1 Section 7401 et seq.).
3-2 Sec. 384.006. LOCATION RESTRICTION. There shall not be more
3-3 than one organization within a metropolitan statistical area or
3-4 consolidated metropolitan statistical area.
3-5 Sec. 384.007. STAFF. The regional council of governments
3-6 may provide staff to an organization created under this chapter.
3-7 Sec. 384.008. BOARD OF DIRECTORS. (a) The board of
3-8 directors of an organization shall consist of not less than six and
3-9 not more than 21 appointed members, provided, however, that the
3-10 number of appointed members is divisible by three. The appointed
3-11 members are appointed by and may be removed for cause by the
3-12 governing body of the regional council of governments. The
3-13 appointed members serve three-year terms, with one-third of the
3-14 members' terms expiring each year. In order to stagger the terms,
3-15 the initial appointees of a board of directors shall draw lots to
3-16 determine which one-third serves for one year, which one-third
3-17 serves for two years, and which one-third serves for three years.
3-18 In addition, the board of directors shall have one ex officio
3-19 nonvoting member from the board, designated by the executive
3-20 director of the board to act as a liaison between the board and the
3-21 area emission reduction credit organization.
3-22 (b) The appointed members of the board of directors shall
3-23 represent the general public, large industrial sources of
3-24 emissions, small regulated businesses, and environmental and
3-25 economic development interests. Each county in the nonattainment
4-1 area shall be represented on the board of directors, and other
4-2 areas in the region shall be represented in a manner that reflects
4-3 the relative contributions of each area to total emissions or
4-4 potential emission reductions.
4-5 Sec. 384.009. REMOVAL FOR CAUSE. The regional council of
4-6 governments appointing a member of the board of directors of an
4-7 organization may remove such member for cause if the member:
4-8 (1) cannot discharge the member's duties for a
4-9 substantial portion of the term for which the member is appointed
4-10 because of illness or disability; or
4-11 (2) is absent from more than half of the regularly
4-12 scheduled meetings that the member is eligible to attend during a
4-13 calendar year unless the absence is excused by a majority vote of
4-14 the board of directors.
4-15 Sec. 384.010. CONFLICT OF INTEREST. A member of a board of
4-16 directors may not vote on a matter in which the member or the
4-17 member's employer has a direct financial interest.
4-18 Sec. 384.011. AUTHORITY. The board of directors of an
4-19 organization shall have independent decision-making authority and
4-20 shall not be required to have its decisions reviewed by the
4-21 governing body of the regional council of governments. A regional
4-22 council of governments shall not have any liability under any
4-23 contracts entered into by an organization.
4-24 Sec. 384.012. POWERS AND DUTIES. An organization shall have
4-25 the authority to:
5-1 (1) receive and use funds;
5-2 (2) have an account at the Texas Air Control Board Air
5-3 Emission Reduction Credit Bank;
5-4 (3) acquire emission reduction credits through
5-5 purchase, donation, or other means;
5-6 (4) transfer emission reduction credits by sale or
5-7 other means;
5-8 (5) identify, evaluate, promote, initiate, and
5-9 facilitate potential projects and strategies to generate emission
5-10 reduction credits;
5-11 (6) provide financial assistance for projects to
5-12 generate emission reduction credits;
5-13 (7) employ staff;
5-14 (8) enter into contracts; and
5-15 (9) consider sustainability of projects.
5-16 Sec. 384.013. PROHIBITIONS. An organization created under
5-17 this chapter shall have no regulatory or taxing authority.
5-18 Sec. 384.014. ANNUAL REPORT. By March 1 of each year each
5-19 area organization shall file with the board and the regional
5-20 council of governments an annual report for the preceding calendar
5-21 year. The annual report shall contain a financial accounting, an
5-22 accounting of emission reduction credits, and a listing of all
5-23 emission reduction credit transactions entered into by the
5-24 organization.
5-25 Sec. 384.015. PROCEDURE FOR FILING AND APPROVAL OF PETITION.
6-1 (a) A regional council of governments may authorize by resolution
6-2 the submission of a petition to the board requesting the creation
6-3 of an organization under this chapter.
6-4 (b) The petition shall contain sufficient information to
6-5 permit a determination of compliance with the provisions of this
6-6 chapter and shall include a copy of the proposed bylaws and a plan
6-7 for ensuring compliance with the requirements of this chapter.
6-8 (c) The board shall review the petition for compliance with
6-9 this chapter and hold a hearing in the region to obtain public
6-10 comment on the petition.
6-11 (d) The board shall approve the petition and creation of the
6-12 organization if, after hearing, it finds that the requirements of
6-13 this chapter are met and that such creation would be in the public
6-14 interest.
6-15 Sec. 384.016. AUDIT. The board shall have the authority to
6-16 audit any organization created under this chapter.
6-17 Sec. 384.017. WITHDRAWAL OF APPROVAL. The board shall have
6-18 the authority to withdraw its approval of an organization created
6-19 under this chapter and to dissolve such organization if it finds,
6-20 after notice and hearing, that the organization has failed to
6-21 comply with the provisions of this chapter.
6-22 Sec. 384.018. DISSOLUTION. An organization created under
6-23 this chapter shall be dissolved by the board 12 years after its
6-24 creation unless the board approves a petition, submitted and
6-25 approved in accordance with Section 384.015, for an additional
7-1 12-year term. The board may continue to approve successive 12-year
7-2 terms for the organization as long as the need for the organization
7-3 exists.
7-4 SECTION 2. The importance of this legislation and the
7-5 crowded condition of the calendars in both houses create an
7-6 emergency and an imperative public necessity that the
7-7 constitutional rule requiring bills to be read on three several
7-8 days in each house be suspended, and this rule is hereby suspended,
7-9 and that this Act take effect and be in force from and after its
7-10 passage, and it is so enacted.