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.