Amend HB 2914 (senate committee printing) by:
(1) adding the following section to the bill, numbered
appropriately; and
(2) renumbering the sections of the bill accordingly:
SECTION _____. (a) RETROFITTING OF RECIPROCATING INTERNAL
COMBUSTION ENGINES ASSOCIATED WITH PIPELINES:
Subchapter C, Chapter 382, Health and Safety Code, is amended
by adding Section 382.051865 to read as follows:
Sec. 382.051865. REIMBURSEMENT PROGRAM FOR CERTAIN EMISSIONS
REDUCTIONS FROM RECIPROCATING INTERNAL COMBUSTION ENGINES
ASSOCIATED WITH PIPELINES. (a) The commission by rule may develop
a program for the reduction of emissions of nitrogen oxides from
reciprocating internal combustion engines associated with pipelines
that are required by this subchapter to reduce hourly emissions of
nitrogen oxides by at least 50 percent. In developing a program
under this section the commission must cooperate with:
(1) local governments;
(2) agencies, departments, and political subdivisions
of the state; and
(3) the United States and its agencies.
(b) The commission may authorize the executive director to
enter into contracts with a public agency, private person, or other
entity for the purpose of implementing the emissions reduction
program developed under this section.
(c) The emissions reduction program may include incentives
as developed by the commission for nitrogen oxides emissions
reduction projects for reciprocating internal combustion engines
described by Subsection (a), including a partial reimbursement for
the capital cost of installing technology to reduce the emissions.
The incentives may be applied only to expenses of projects to
achieve those reductions of a reciprocating internal combustion
engine's hourly emission's of nitrogen oxides only to the extent
the reductions exceed 30 percent and do not exceed 50 percent of
the engine's emissions before modification.
(d) Rules adopted under this section must include criteria
for the determining eligibility for an emissions reduction project
incentive under the program. To be eligible under the criteria, a
facility must:
(1) be subject to the requirement under this
subchapter that it reduce emissions by 50 percent;
(2) be reducing its hourly emissions of nitrogen
oxides by at least 50 percent; and
(3) be located in the East Texas region established by
this subchapter for purposes of compliance with permit requirements
for facilities affected by Section 382.0518(g).
(c) The commission may not provide incentives that:
(1) exceed 50 percent of the capital cost, excluding
interest, of the emissions reduction project for which incentives
are sought;
(2) exceed $100,000 for each emissions reduction
project;
(3) exceed $250,000 for any person;
(4) will be applied to an emissions reduction project
where a portion of the reductions generated are used to offset the
emissions reductions required to be made at another facility;
(5) pay any part of the expenses of reducing hourly
nitrogen oxides emissions from a reciprocating internal combustion
engine by 30% or less; or
(6) will be used for a project under which the
reductions to be made are required by a federal or state law,
regulation, permit, or order other than the requirement provided by
this subchapter to reduce hourly nitrogen oxides emissions by 50
percent.
(e) This section does not affect the responsibility or
liability of an owner or operator of a reciprocating internal
combustion engine to reduce emissions under this chapter or a rule,
permit or order adopted under this chapter by the commission.
(f) In addition to other requirements imposed by the
commission, to be eligible for an incentive under the program
established under this section, an emissions reduction project must
be:
(1) initiated on or before September 1, 2006; and
(2) completed before March 1, 2007.
(g) The commission may not pay or otherwise provide a
financial incentive for an emissions reduction project before the
project is complete. The commission may require verification of
the reductions associated with the project before the commission
pays an incentive. The commission may not pay or otherwise provide
a financial incentive on or after March 1, 2007.
(h) Notwithstanding any other law, gifts or contributions by
an electric utility or an affiliated power generating company to a
program implemented under this section shall be:
(1) considered tangible or intangible capital costs to
improve air quality;
(2) deemed to be incurred before January 1, 2002;
(3) included in the electric utility's
generation-related invested capital; and
(4) deemed to be a cost to offset the emission of
airborne contaminants from electric generating facilities that is:
(A) an essential component in achieving
compliance with a national ambient air quality standard;
(B) deemed to be the most cost effective after
consideration of alternative measures; and
(C) consistent with the air quality goals and
policies of the commission.
(i) This section expires March 1, 2007.
(b) EMISSIONS REDUCTIONS INCENTIVES ACCOUNT:
(1) The comptroller of public accounts shall establish
an account within the clean air account no. 151 to be known as the
emissions reductions incentives account.
(2) The emissions reductions incentives account
consists of money from:
(A) gifts, grants, or donations to the account
for a designated or general use; and
(B) money from any other source the legislature
designates.
(3) The commission may use the money in the emissions
reductions incentives account to pay for emissions reduction
project incentives under a program developed under Section
382.051865, Health and Safety Code, and administrative expenses
associated with providing the incentives or the incentive program
established under that section.
(4) The emissions reductions incentives account is
exempt from the application of Section 403.095, Government Code.
(c) APPROPRIATIONS:
(1) The following amounts are appropriated to Texas
Natural Resource Conservation Commission to provide incentives for
the reduction of air emissions from reciprocating internal
combustion engines associated with pipelines:
(A) up to $16,200,000 for the fiscal year
beginning on September 1, 2001 from the emissions reductions
incentives account within the clean air account no. 151;
(B) all interest earned on money in the
emissions reductions incentives account within the clean air
account no. 151 during the fiscal year beginning on September 1,
2001, for that fiscal year;
(C) any balance in the emissions reductions
incentives account within the clean air account no. 151 from the
appropriation made by Subsections (a)(1) and (2) unexpended as of
August 31, 2002, for the fiscal year beginning on September 1,
2002; and
(D) all interest earned on the emissions
reductions incentives account during the fiscal year beginning on
September 1, 2002, for that fiscal year.
(d) This section takes effect only if legislation of the
77th Legislature, Regular Session, 2001, authorizing the Texas
Natural Resource Conservation Commission to require hourly
emissions reductions of nitrogen oxides of at least 50 percent from
reciprocating internal combustion engines associated with pipelines
is enacted and becomes law.