BILL ANALYSIS


                                                     C.S.S.B. 178
                                                     By: Whitmire
                                          Emissions and Clean Air
                                                          4-12-95
                                   Committee Report (Substituted)
BACKGROUND

On January 31, 1995, Governor Bush signed S.B. 19 into law,
implementing a 91-day moratorium on automobile emissions testing in
the four federally designated clean air nonattainment areas of
Texas - Houston/Galveston, Dallas/Fort Worth, El Paso, and
Beaumont/Port Arthur. The moratorium, which ends on May 1, 1995,
allowed legislators to work with the U.S. Environmental Protection
Agency to review the federally mandated inspection and maintenance
program and to propose changes to the program. Due to the
inconvenience of the centralized automobile emissions testing plan
that was implemented on January 1, 1995, a decentralized test-and-repair plan was requested by tens of thousands of residents of the
affected nonattainment areas.

PURPOSE

As proposed, C.S.S.B. 178 reimplements automobile emissions testing
in the Houston/Galveston, Dallas/Fort Worth, and El Paso federal
clean air nonattainment areas; ties emissions testing to the
passage of the state automobile safety inspection; and allows for
one-stop shopping in order to pass the emissions and safety tests.

RULEMAKING AUTHORITY

It is the committee's opinion that rulemaking authority is granted
to the comptroller of public accounts under SECTION 3 (Sec.
382.037(o), Health and Safety Code), and to the Texas Natural
Resources Conservation Commission under SECTION 2 (Sec.
382.0371(g), Health and Safety Code), SECTION 3 (Sec. 382.037(e),
Health and Safety Code), SECTION 4 (Sec. 134(f)(6), Article 6701d,
V.T.C.S.), and SECTION 12(b) of this bill.

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Section 382.037, Health and Safety Code, by
adding Subsection (a-1), as follows:

     (a-1) Requires the Texas Natural Resources Conservation
     Commission (TNRCC) to establish and implement an interim
     vehicle emissions inspection and maintenance program (program)
     to begin June 1, 1995, as established under Section 382.0371.
     Provides that the interim program is effective, until the
     governor determines, after appropriate negotiation with the
     U.S. Environmental Protection Agency (EPA), the type of
     program necessary to meet the requirements of the 1990
     amendments to the federal Clean Air Act and to receive federal
     approval of the Texas state implementation plan. Requires the
     governor, by executive order, on making that determination, to
     direct TNRCC to develop and implement the program determined
     by the governor to be necessary to meet federal requirements
     and receive federal approval, and all or part of the interim
     program established under Section 382.0371 is suspended at
     that time. Authorizes the governor to direct the adoption of
     a particular testing technology or system, a particular
     combination of technologies, systems, or technologies and
     systems, or a particular program including a registration-based program if required and adjust appropriate fees as
     necessary. Authorizes the governor to direct the exemption of
     a county from or the inclusion of a county in a program if
     required.
     
     SECTION 2.     Amends Chapter 382B, Health and Safety Code, by adding
Sections 382.0371 and 382.0372, as follows:

     Sec. 382.0371. INTERIM VEHICLE EMISSIONS INSPECTION AND
     MAINTENANCE PROGRAM. (a) Requires TNRCC, in cooperation with
     the Department of Public Safety of the State of Texas
     (department), to establish an interim program in accordance
     with this section and rules adopted under this section.
     
     (b) Sets forth areas to which a program established under
       this section applies.
       
       (c) Sets forth requirements for a vehicle subject to this
       section, after the date of the fourth anniversary of the
       vehicle's first sale.
       
       (d) Authorizes a fleet vehicle or exempt licensed vehicle to
       be tested only at a centralized test-only facility
       authorized and licensed by TNRCC to perform vehicle
       emissions inspections required by this section.
       
       (e) Authorizes a fleet vehicle with a gross vehicle weight
       greater than 10,000 pounds  to be tested at an on-site fleet
       maintenance facility by technicians employed by the fleet
       owner or operator if the facility is authorized and licensed
       by TNRCC to perform vehicle emissions inspections required
       by this section. Authorizes TNRCC to collect a $12 fee for
       each fleet vehicle tested at a fleet maintenance facility.
       
       (f) Authorizes a vehicle that is not subject to Subsection
       (d) or (e) to be tested at a centralized test-only facility,
       a decentralized test-only facility, or a decentralized test-and-repair facility at the option of the vehicle owner.
       
       (g) Requires TNRCC, by rule, to prescribe the types of
       vehicle emissions tests to be used at each type of testing
       facility. Authorizes TNRCC to prescribe different types of
       tests to be used at different types of facilities or in
       different nonattainment areas. Prohibits TNRCC from
       requiring in any nonattainment area an emissions testing
       technology or procedure that is more stringent than a
       technology or procedure used in programs in this state
       before January 1, 1995, unless the use of a more stringent
       technology or procedure is necessary to establish new
       emissions testing facilities in an area in which a program
       did not exist before January 1, 1995.
       
       (h) Requires a dual-fueled vehicle to be tested as required
       by this section if one of the fuels used in gasoline.
       
       (i) Authorizes a vehicle emissions test required by this
       section to be performed by the same facility that performs
       the safety inspection if that facility is authorized and
       licensed by TNRCC to perform the vehicle emissions test and
       certified by the department to perform the safety
       inspection.
       
       (j) Requires TNRCC to develop and implement a program to
       certify, inspect and audit vehicle emissions testing
       facilities. Authorizes TNRCC to set and collect a
       certification fee sufficient to recover the costs of
       implementing the certification, inspection, and audit
       program established under this subsection. Authorizes TNRCC,
       in addition to other penalties authorized by this chapter,
       to after an opportunity for a hearing to revoke the
       certification of a facility that violates this chapter or a
       rule adopted under this chapter. Provides that fees and
       penalties collected under this subsection are Clean Air Act
       fees defined by Section 382.0622.
       
       (k) Requires TNRCC to implement an automobile emissions
       control equipment parameter check in Harris County during
       the period June 1, 1995, to December 31, 1995. Requires this
       program to be similar to that parameters program in use on
       December 31, 1994.
       
       (l) Sets forth provisions to which this section applies to
       the issuance of safety inspection certificates issued under
       Section 140 or 141, Article 6701d, V.T.C.S. (Uniform Act
       Regulating Traffic on Highways) and corresponding dates.
       
       (m) Defines "exempt licensed vehicle," "first sale," "fleet
       vehicle," "safety inspection," and "safety inspection
       certificate."
       
       Sec. 382.0372. AIR QUALITY FUND. (a) Provides that the air
     quality fund (fund) consists of federal air quality fees.
     
     (b) Sets forth purposes for which money in the fund may be
       used.
       
       (c) Provides that Sections 403.094 and 403.095, Government
       Code, do not apply to the fund.
       
       SECTION 3.   Amends Section 382.037, Health and Safety Code, by
amending Subsections (e), (h), (n), (o), and (p), and by adding
Subsection (q), as follows:

     (e) Requires TNRCC, rather than the board, by rule, to
     establish a uniform fee of $12 for all vehicle emission-related inspections performed as test-only or test-and-repair
     inspection facilities authorized and licensed by TNRCC.
     Requires the first retest following a failed inspection to be
     provided free of charge within 15 days of the initial
     inspection at the facility that performed the initial
     inspection. Deletes the authorization of a portion of the fee
     to be retained by the station owner or operator to provide a
     reasonable margin of profit. Makes conforming changes.
     
     (h) Changes the time period for the submission to the
     department of a valid vehicle emissions inspection certificate
     to a period not to exceed one calendar year, rather than 90
     days, preceding the date on which the person applies for the
     registration.
     
     (n) Authorizes TNRCC to conduct or require third-party quality
     assurance, remote observation systems, central data
     management, or other oversight activities necessary to ensure
     the effectiveness of any program. Makes conforming changes.
     
     (o) Requires the owner of a vehicle, before an initial safety
     inspection certificate may be issued for a vehicle, to pay a
     $20 federal air quality fee. Requires the official inspection
     station performing the initial safety inspection on the
     vehicle to collect the fee imposed under this subsection and
     to remit all fees collected to the comptroller in the manner
     provided under Chapter 151, Tax Code. Authorizes the
     comptroller, by rule, to modify the manner of remitting the
     fees if necessary for the more efficient and convenient
     administration of this subsection. Requires the comptroller to
     deposit the fees in the state treasury to the credit of the
     air quality fund. Deletes existing Subsection (o).
     
     (p) Authorizes TNRCC to establish a program to provide
     financial assistance to low-income vehicle owners for repairs
     up to maximum of the federal waiver criteria as determined by
     the EPA. Authorizes TNRCC to use money in the air quality fund
     to pay the costs of a financial assistance program established
     under his subsection. Deletes existing Subsection (p).
     
     (q) Requires TNRCC to establish a program using appropriate
     remote sensing technology to target, detect, and require
     vehicle emissions inspections for high-emitting vehicles in
     any county subject to a program under this section or Section
     382.0371. Requires TNRCC to ensure that a number of vehicles
     equal to 20 percent of the vehicles registered in a county in
     which the remote sensing technology is used are exposed to
     that technology.
     
     SECTION 4.     Amends Section 134, Article 6701d, V.T.C.S., by adding
Subsections (e) and (f), as follows:

     (e) Sets forth provisions under which a person commits an
     offense.
     
     (f)(1) Requires the court to advise a person charged with an
     offense under Subsection (e) of this section of the person's
     right to present written evidence to the court that subsequent
     to the date of the offense the vehicle being operated by the
     defendant at the time of the offense has:
     
     (A) been inspected at a centralized test-only vehicle
         emissions inspection facility certified by TNRCC and
         successfully completed a vehicle emissions test conducted
         by the facility; or 
         
         (B) if there is no certified centralized test-only vehicle
         emissions inspection facility in the county in which the
         person resides, had appropriate repairs, corrections, or
         adjustments made to the vehicle to remedy the defect.
         
         (2) Sets forth provisions under which the court shall defer
       proceedings and allow the person 14 days to present the
       evidence to the court.
       
       (3) Sets forth requirements for the court, if a person
       requesting a vehicle emissions test or to have the vehicle
       repaired does not furnish evidence of the successful
       completion of the emissions test or that necessary repairs,
       corrections, or adjustments to the vehicle have been made.
       
       (4) Provides that a person who does not appear at the time
       and place stated in the notice commits an offense.
       
       (5) Requires the court, when a person presents evidence
       satisfactory to the court that the vehicle has successfully
       passed the appropriate vehicle emissions test or that
       necessary repairs, adjustments, and corrections to the
       vehicle have been made, to remove the judgment and dismiss
       the charge.
       
       (6) Requires TNRCC to adopt rules and necessary forms to
       implement and administer this subsection.
       
       SECTION 5.   Amends Section 141, Article 6701d, V.T.C.S., by amending
Subsection (a-1) and adding Subsection (a-2), as follows:

     (a-1) Requires the department to provide inspection
     certificates for distribution and issuance at centralized or
     decentralized inspection stations, rather than reinspection
     stations. Makes conforming changes.
     
     (a-2) Authorizes the department to issue a certificate of
     appointment under this section authorizing the performance of
     compulsory inspections required under this section and Section
     140 of this Act to a centralized or decentralized facility
     authorized and licensed by TNRCC to perform vehicle emissions
     inspection if the facility meets the department's requirements
     and the requirements of this section for certification.
     Prohibits the department from issuing a certificate of
     appointment under this section to an on-site fleet maintenance
     facility described in Section 382.0371, Health and Safety
     Code, or an entity providing fleet inspections as provided by
     Section 382.038(g), Health and Safety Code.
     
     SECTION 6.     Amends Section 142, Article 6701d, V.T.C.S., by amending
Subsections (d) and (d-1), by adding Subsection (e-1), and by
amending Subsections (f) and (h), as follows:

     (d) Requires the Public Safety Commission to establish a
     program for vehicles covered by the Texas air quality state
     implementation plan, authorized under Section 382.0371, Health
     and Safety Code, or otherwise specified by TNRCC has adopted
     a resolution requesting the department to institute such a
     program and which satisfies one of a number of conditions.
     Includes the subjection of a county to Section 382.0371,
     Health and Safety Code to the conditions under which the
     Public Safety Commission shall establish a program in a
     county.
     
     (d-1) Authorizes the Public Safety Commission to establish a
     program for vehicles specified by TNRCC at the direction of
     the governor or for enforcement by inspection against moving
     vehicles in certain counties. Prohibits a program initiated
     under this subsection from including registration-based
     enforcement unless the Texas Department of Transportation,
     rather that the State Department of Highways and Public
     Transportation, elects to include the program in its
     registration enforcement system. 
     
     (e-1) Requires the Public Safety Commission to develop and
     implement requirements necessary to ensure that a safety
     inspection certificate is not issued under Section 140 or 141
     of this Act to a vehicle that is subject to a vehicle
     emissions program established under Subsection (d) or (d-1) of
     this section unless the vehicle has passed a vehicle emissions
     inspection at a facility authorized an licensed by TNRCC.
     
     (f) Requires the department to authorize a vehicle emissions
     inspection facility authorized and licensed by TNRCC to issue
     this unique inspection certificate for a vehicle on
     appropriate proof that both emissions and safety inspection
     requirements have been met.
     
     (h) Authorizes TNRCC at the direction of the governor, if for
     any reason the program administered by TNRCC is suspended or
     discontinued, to reestablish a program in accordance with
     Subsection (d) or (d-1) of this section or otherwise as
     directed by the governor.
     
     SECTION 7.     Amends Section 2(a), Article 6675a-2, V.T.C.S., to
delete the requirement of the Texas Department of Transportation
through the County Tax Collector to require an applicant for
registration of a vehicle in a county that is not covered by a
vehicle emissions inspection program to provide evidence that the
applicant is a resident of that county. Makes conforming changes.

SECTION 8. Amends Section 2(j)(2), Article 6675a-2, V.T.C.S., to
delete the requirement of each county tax collector covered by
Subsection (i) of this section to submit an annual report to TNRCC
and the Texas Department of Transportation that shows the number of
registrations denied because of the applicant's failure to provide
proof of residency in the county. Makes conforming changes.

SECTION 9. Effective May 2, 1995 Repealer:

     (1) Section 2, S.B. 19, Acts of the 74th Legislature, Regular
     Session, 1995 (relating to the suspension of the operation of
     certain programs begun prior to the effective date of S.B.
     19).
     
     (2) Section 4.202(a-2), Article 6702-1, V.T.C.S., (relating to
     the requirement of a county tax assessor-collector, to collect
     a fee of 25 cents from an applicant for registration).
SECTION 10.    Provides that an amount equal to the total amount of
federal clean air compliance fees collected during the fiscal
biennium ending August 31, 1997, under Section 382.037(o), Health
and Safety Code, as added by this Act, is appropriated for the
fiscal biennium ending August 31, 1997, to TNRCC for the purposes
stated in Section 382.0372, Health and Safety Code, as added by
this Act.

SECTION 11.    Requires TNRCC to work with the EPA to develop
alternatives to the vehicle emissions inspection and maintenance
program that include fuel and oil additives, geothermal heat pumps
for which a retail public utility provides water service,
automobile muffler and radiator catalysts, and an automotive fuel
purge and pressure test. Authorizes TNRCC to adopt an approved
alternative technology of the sort listed without the direction of
the governor under Section 382.037(a-1), Health and Safety Code, as
added by this Act.

SECTION 12.    (a) Authorizes TNRCC, the Texas Department of
Transportation, and the Public Safety Commission, to commence
operation and implementation of the interim program authorized
under Section 382.037, Health and Safety Code, and in the form
established by Section 382.0371, Health and Safety Code, as added
by this Act.

     (b) Requires TNRCC, immediately after the effective date of
     this Act, to adopt emergency rules to implement the interim
     program in the form established by Sections 382.037(a-1) and
     382.0371, Health and Safety Code, as added by this Act.
     Requires TNRCC to adopt final rules as soon as practicable
     after the adoption of emergency rules.
     
     SECTION 13.    Emergency clause.
           Effective date: upon passage.