1-1 By: Ellis, Parker S.B. No. 513
1-2 (In the Senate - Filed March 1, 1993; March 1, 1993, read
1-3 first time and referred to Committee on Natural Resources;
1-4 March 3, 1993, rereferred to Committee on Economic Development;
1-5 March 30, 1993, reported favorably by the following vote: Yeas 11,
1-6 Nays 0; March 30, 1993, sent to printer.)
1-7 COMMITTEE VOTE
1-8 Yea Nay PNV Absent
1-9 Parker x
1-10 Lucio x
1-11 Ellis x
1-12 Haley x
1-13 Harris of Dallas x
1-14 Harris of Tarrant x
1-15 Leedom x
1-16 Madla x
1-17 Rosson x
1-18 Shapiro x
1-19 Wentworth x
1-20 A BILL TO BE ENTITLED
1-21 AN ACT
1-22 relating to regional organizations to promote the coexistence of
1-23 air quality improvement and economic development in nonattainment
1-24 areas of the state.
1-25 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-26 SECTION 1. Subtitle C, Title 5, Health and Safety Code, is
1-27 amended by adding Chapter 384 to read as follows:
1-28 CHAPTER 384. AREA EMISSION REDUCTION CREDIT ORGANIZATIONS
1-29 Sec. 384.001. DEFINITIONS. In this chapter:
1-30 (1) "Board" means the Texas Air Control Board or its
1-31 successor agency.
1-32 (2) "Emission reduction credit" means a credit
1-33 recognized by the Texas Air Control Board and the United States
1-34 Environmental Protection Agency for reductions in emissions of air
1-35 pollutants.
1-36 (3) "Nonattainment area" means an area so designated
1-37 within the meaning of Section 107(d) of the federal Clean Air Act
1-38 (42 U.S.C. Section 7407).
1-39 (4) "Organization" means an area emission reduction
1-40 credit organization.
1-41 (5) "Regional council of governments" means a regional
1-42 planning commission established under Chapter 391, Local Government
1-43 Code.
1-44 Sec. 384.002. PURPOSE. The purpose of an area emission
1-45 reduction credit organization shall be to promote the coexistence
1-46 of the improvement of air quality and economic development within
1-47 the region through the acquisition and distribution of emission
1-48 reduction credits. Its activities may include the use of emission
1-49 reduction credits to help meet federal reasonable further progress
1-50 requirements as well as using emission reduction credits to
1-51 facilitate the issuance of permits.
1-52 Sec. 384.003. ESTABLISHMENT OF ORGANIZATION. A regional
1-53 council of governments whose area of jurisdiction contains a
1-54 nonattainment area may establish an organization on approval by the
1-55 board of its creation petition as provided by Section 384.015.
1-56 Sec. 384.004. FUNCTIONS; ORGANIZATION. An organization
1-57 created under this chapter shall:
1-58 (1) represent all counties within a nonattainment
1-59 area;
1-60 (2) have a board of directors appointed in accordance
1-61 with the provisions of this chapter;
1-62 (3) have the power, authority, and limitations
1-63 provided by this chapter; and
1-64 (4) have bylaws setting forth its organization and
1-65 procedures, including provisions for conflicts of interest.
1-66 Sec. 384.005. OFFSET REQUIREMENTS. All transactions of an
1-67 organization involving emission reduction credits shall be subject
1-68 to the offset requirements of the federal Clean Air Act (42 U.S.C.
2-1 Section 7401 et seq.).
2-2 Sec. 384.006. LOCATION RESTRICTION. There shall not be more
2-3 than one organization within a metropolitan statistical area or
2-4 consolidated metropolitan statistical area.
2-5 Sec. 384.007. STAFF. The regional council of governments
2-6 may provide staff to an organization created under this chapter.
2-7 Sec. 384.008. BOARD OF DIRECTORS. (a) The board of
2-8 directors of an organization shall consist of not less than six and
2-9 not more than 21 appointed members, provided, however, that the
2-10 number of appointed members is divisible by three. The appointed
2-11 members are appointed by and may be removed for cause by the
2-12 governing body of the regional council of governments. The
2-13 appointed members serve three-year terms, with one-third of the
2-14 members' terms expiring each year. In order to stagger the terms,
2-15 the initial appointees of a board of directors shall draw lots to
2-16 determine which one-third serves for one year, which one-third
2-17 serves for two years, and which one-third serves for three years.
2-18 In addition, the board of directors shall have one ex officio
2-19 nonvoting member from the board, designated by the executive
2-20 director of the board to act as a liaison between the board and the
2-21 area emission reduction credit organization.
2-22 (b) The appointed members of the board of directors shall
2-23 represent the general public, large industrial sources of
2-24 emissions, small regulated businesses, and environmental and
2-25 economic development interests. Each county in the nonattainment
2-26 area shall be represented on the board of directors, and other
2-27 areas in the region shall be represented in a manner that reflects
2-28 the relative contributions of each area to total emissions or
2-29 potential emission reductions.
2-30 Sec. 384.009. REMOVAL FOR CAUSE. The regional council of
2-31 governments appointing a member of the board of directors of an
2-32 organization may remove such member for cause if the member:
2-33 (1) cannot discharge the member's duties for a
2-34 substantial portion of the term for which the member is appointed
2-35 because of illness or disability; or
2-36 (2) is absent from more than half of the regularly
2-37 scheduled meetings that the member is eligible to attend during a
2-38 calendar year unless the absence is excused by a majority vote of
2-39 the board of directors.
2-40 Sec. 384.010. CONFLICT OF INTEREST. A member of a board of
2-41 directors may not vote on a matter in which the member or the
2-42 member's employer has a direct financial interest.
2-43 Sec. 384.011. AUTHORITY. The board of directors of an
2-44 organization shall have independent decision-making authority and
2-45 shall not be required to have its decisions reviewed by the
2-46 governing body of the regional council of governments. A regional
2-47 council of governments shall not have any liability under any
2-48 contracts entered into by an organization.
2-49 Sec. 384.012. POWERS AND DUTIES. An organization shall have
2-50 the authority to:
2-51 (1) receive and use funds;
2-52 (2) have an account at the Texas Air Control Board Air
2-53 Emission Reduction Credit Bank;
2-54 (3) acquire emission reduction credits through
2-55 purchase, donation, or other means;
2-56 (4) transfer emission reduction credits by sale or
2-57 other means;
2-58 (5) identify, evaluate, promote, initiate, and
2-59 facilitate potential projects and strategies to generate emission
2-60 reduction credits;
2-61 (6) provide financial assistance for projects to
2-62 generate emission reduction credits;
2-63 (7) employ staff;
2-64 (8) enter into contracts; and
2-65 (9) consider sustainability of projects.
2-66 Sec. 384.013. PROHIBITIONS. An organization created under
2-67 this chapter shall have no regulatory or taxing authority.
2-68 Sec. 384.014. ANNUAL REPORT. By March 1 of each year each
2-69 area organization shall file with the board and the regional
2-70 council of governments an annual report for the preceding calendar
3-1 year. The annual report shall contain a financial accounting, an
3-2 accounting of emission reduction credits, and a listing of all
3-3 emission reduction credit transactions entered into by the
3-4 organization.
3-5 Sec. 384.015. PROCEDURE FOR FILING AND APPROVAL OF PETITION.
3-6 (a) A regional council of governments may authorize by resolution
3-7 the submission of a petition to the board requesting the creation
3-8 of an organization under this chapter.
3-9 (b) The petition shall contain sufficient information to
3-10 permit a determination of compliance with the provisions of this
3-11 chapter and shall include a copy of the proposed bylaws and a plan
3-12 for ensuring compliance with the requirements of this chapter.
3-13 (c) The board shall review the petition for compliance with
3-14 this chapter and hold a hearing in the region to obtain public
3-15 comment on the petition.
3-16 (d) The board shall approve the petition and creation of the
3-17 organization if, after hearing, it finds that the requirements of
3-18 this chapter are met and that such creation would be in the public
3-19 interest.
3-20 Sec. 384.016. AUDIT. The board shall have the authority to
3-21 audit any organization created under this chapter.
3-22 Sec. 384.017. WITHDRAWAL OF APPROVAL. The board shall have
3-23 the authority to withdraw its approval of an organization created
3-24 under this chapter and to dissolve such organization if it finds,
3-25 after notice and hearing, that the organization has failed to
3-26 comply with the provisions of this chapter.
3-27 Sec. 384.018. DISSOLUTION. An organization created under
3-28 this chapter shall be dissolved by the board 12 years after its
3-29 creation unless the board approves a petition, submitted and
3-30 approved in accordance with Section 384.015, for an additional
3-31 12-year term. The board may continue to approve successive 12-year
3-32 terms for the organization as long as the need for the organization
3-33 exists.
3-34 SECTION 2. The importance of this legislation and the
3-35 crowded condition of the calendars in both houses create an
3-36 emergency and an imperative public necessity that the
3-37 constitutional rule requiring bills to be read on three several
3-38 days in each house be suspended, and this rule is hereby suspended,
3-39 and that this Act take effect and be in force from and after its
3-40 passage, and it is so enacted.
3-41 * * * * *
3-42 Austin,
3-43 Texas
3-44 March 30, 1993
3-45 Hon. Bob Bullock
3-46 President of the Senate
3-47 Sir:
3-48 We, your Committee on Economic Development to which was referred
3-49 S.B. No. 513, have had the same under consideration, and I am
3-50 instructed to report it back to the Senate with the recommendation
3-51 that it do pass and be printed.
3-52 Parker,
3-53 Chairman
3-54 * * * * *
3-55 WITNESSES
3-56 FOR AGAINST ON
3-57 ___________________________________________________________________
3-58 Name: Kirk Watson x
3-59 Representing: Texas Air Control Board
3-60 City: Austin
3-61 -------------------------------------------------------------------
3-62 Name: Larry Feldcamp x
3-63 Representing: Greater Houston Partnership
3-64 City: Houston
3-65 -------------------------------------------------------------------
3-66 FOR AGAINST ON
3-67 ___________________________________________________________________
3-68 Name: Sheila Jennings x
3-69 Representing: Tx Assoc. of Regional Council
3-70 City: Austin
4-1 -------------------------------------------------------------------
4-2 Name: Wade Thomason x
4-3 Representing: American Lung Assn. of Tx
4-4 City: Austin
4-5 -------------------------------------------------------------------
4-6 Name: James E. Dodds x
4-7 Representing: Texas Air Control Board
4-8 City: Austin
4-9 -------------------------------------------------------------------