SRC- MWN C.S.S.B. 5 77(R)    BILL ANALYSIS


Senate Research CenterC.S.S.B. 5
By: Brown, J. E. "Buster"
Natural Resources
4/9/2001
Committee Report (Substituted)


DIGEST AND PURPOSE 

The federal Clean Air Act authorizes the United States Environmental
Protection Agency (EPA) to establish the maximum allowable concentrations
of pollutants that can endanger human health, harm the environment, and
cause property damage. A significant portion of Texas currently does not
meet these standards and is facing severe sanctions if attainment is not
reached by 2007. While the Texas Natural Resource Conservation Commission
(commission) has submitted a proposed State Implementation Plan (SIP)
requiring emissions reductions of sources under their control, there are
significant areas of potential emission reductions the commission cannot
regulate but which may be realized through incentive programs. C.S.S.B. 5
establishes programs to encourage emissions reductions. 

RULEMAKING AUTHORITY

Rulemaking authority is expressly granted to the Texas Natural Resource
Conservation Commission and the comptroller in SECTION 1 (Sections 386.053,
386.152, Health and Safety Code) and SECTION 15, the Texas Natural Resource
Conservation Commission in SECTION 1 (Section 386.112, Health and Safety
Code) and SECTION 14, and to the comptroller in SECTION 1 (Section 386.160,
Health and Safety Code), SECTION 13 (Article 9036, Revised Statutes) and
SECTION 14 of this bill.    

SECTION BY SECTION ANALYSIS

SECTION 1. (a) Sets forth legislative intent.

(b) Amends Title 5C, Health and Safety Code, by adding Chapters 386, 387,
and 388, as follows: 

CHAPTER 386. TEXAS EMISSIONS REDUCTION PLAN

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 386.001. DEFINITIONS. Defines "advisory board," "affected county,"
"commission," "council," "fund," "incremental cost," "motor vehicle," "new
vehicle," "nonattainment area," "plan," and "site." 

 Sec. 386.002. EXPIRATION. Provides that this chapter expires August 31,
2008. 
 
[Sections 386.003-386.050 reserved for expansion]

SUBCHAPTER B. TEXAS EMISSIONS REDUCTION PLAN

Sec. 386.051. TEXAS EMISSIONS REDUCTION PLAN. Requires the Texas Natural
Resource Conservation Commission (commission), the comptroller, and the
council to establish and administer the Texas emissions reduction plan in
accordance with this chapter. Requires the commission, the comptroller, and
the council, under the plan, to provide grants or other funding  for
certain purposes. Provides that equipment purchased before September 1,
2001, is not eligible for a grant or other funding under the plan. 

Sec. 386.052. COMMISSION DUTIES. Requires the commission, in administering
the plan established under this chapter and in accordance with the
requirements of this chapter, to perform certain procedures. Provides that
appropriate commission objectives include certain items. 

Sec. 386.053. GUIDELINES AND CRITERIA. Requires the commission to adopt
grant guidelines and criteria consistent with the requirements of this
chapter. Requires the commission to consider examples of similar programs
in other states during the development of guidelines and criteria. Requires
the guidelines to include protocols to calculate projected emissions
reductions, project cost-effectiveness, and safeguards to ensure that
funded projects generate emissions reductions not otherwise required by
state or federal law. Requires the commission to make draft guidelines and
criteria available to the public and the United States Environmental
Protection Agency before the 45th day preceding the date of final adoption
and hold at least one public meeting to consider public comments on the
draft guidelines and criteria before final adoption. Authorizes the
commission to propose revisions to the guidelines and criteria adopted
under this section as necessary to improve the ability of the plan to
achieve its goals. Authorizes the revisions to include among other changes,
adding additional pollutants or adjusting eligible program categories, as
appropriate, to ensure that incentives established under this chapter
achieve the maximum possible emissions reductions. Requires the commission
to make a proposed revision available to the public before the 45th day
preceding the date of final adoption of the revision and to hold at least
one public meeting to consider public comments on the proposed revision
before the final adoption. Authorizes the commission and the comptroller,
because the legislature finds that the current state of air quality in the
state creates an imminent peril to the public health, safety, and welfare
and jeopardizes the state's ability to meet federal air quality
requirements, to adopt emergency rules under Section 2001.034 (Emergency
Rulemaking), Government Code, with abbreviated notice, to carry out any
rulemaking necessary to implement this chapter. Provides that except as
provided by Subsection (e), the rulemaking requirements of Chapter 2001
(Administrative Procedure), Government Code, do not apply to the adoption
or revision of guidelines and criteria under this section. 

Sec. 386.054. MONITORING PROCEDURES. Requires the commission to develop
procedures for monitoring whether the emissions reductions projected for
projects awarded grants under this chapter are actually achieved.
Authorizes monitoring procedures to include project reviews and contract
requirements that the grant recipient provide information annually about
the project. Requires the report, if the commission requires an annual
report, to contain a minimum amount of information required from a
recipient and the report format to be simple and convenient. Requires
monitoring and reviewing procedures to be sufficient to enable emissions
reductions generated by funded projects to be fully credited to air quality
plans. Authorizes the commission to revise monitoring and reviewing
procedures from time to time as necessary or appropriate to enhance the
effectiveness of the plan. 

Sec. 386.055. AVAILABILITY OF EMISSIONS REDUCTION CREDITS GENERALLY.
Prohibits a project funded under a program established under this chapter
from being used for credit under any state or federal emissions reduction
credit averaging, banking, or trading program. Prohibits an emissions
reduction generated by a program established under this chapter from being
used as a marketable emissions reduction credit or to offset any emissions
reduction obligation. Provides that a project involving a new emissions
reduction measure that would otherwise generate marketable credits under
state or federal emissions reduction credit averaging, banking, or trading
programs is not eligible unless the project includes the transfer of the
marketable credits to the end user and the retirement of the credits. 

Sec. 386.056. AVAILABILITY OF EMISSIONS REDUCTION CREDITS IN CERTAIN
NONATTAINMENT AREAS. Authorizes an owner or operator of a site located in
the Houston-Galveston or Dallas-Fort Worth nonattainment areas to use
emissions reductions generated by a program established under this chapter
to offset the requirements of commission rules relating to control of air
pollution from oxides of nitrogen if certain conditions are met. Requires
funds collected under this section  to be used to generate emissions
reductions needed to meet the commission's attainment demonstrations.
Requires the commission to verify that emissions reductions generated from
funds collected under this section occur in the same nonattainment area in
which the site that purchased the emissions credit is located. Requires the
commission, to the extent practicable, to assure that emissions reductions
funded under programs authorized by this chapter used to offset commission
requirements under this section benefit the community in which the site
using the emissions reductions is located. Authorizes the commission, if
there are no eligible emission reduction projects within the community, to
authorize projects in an adjacent community. Provides that in this
subsection, "community," means a justice of the peace precinct. 

Sec. 386.057. REVIEW AND REPORTING REQUIREMENTS. Requires the commission,
in consultation with the advisory board, to annually review programs
established under the plan, including each project funded under the plan,
the amount granted for the project, the emissions reductions attributable
to the project, and the cost-effectiveness of the project. Requires the
commission, in consultation with the advisory board, to biennially publish
and submit to the legislature a plan report. Requires the report to include
the information included in the annual reports and specific information for
individual projects as required by this section. Requires the report, for
projects funded as part of the infrastructure demonstration program under
Subchapter C, to meet certain criteria. Requires the report to supply
certain information. Requires the commission to request public comment and
hold a public meeting on each draft biennial report and, in producing a
final biennial report, to consider and respond to all significant comments
received. 

Sec. 386.058. TEXAS EMISSIONS REDUCTION PLAN ADVISORY BOARD. Provides that
the Texas Emissions Plan Advisory Board consists of certain persons.
Requires appointments to the advisory board to include representatives from
certain industries or entities. Provides that appointed members of the
advisory board serve staggered two-year terms. Provides that the terms of
six appointed members expire February 1 of each even-numbered year.
Provides that the terms of seven appointed members expire February 1 of
each oddnumbered year. Authorizes an appointed member to be reappointed to
a subsequent term. Provides that ex officio members of the advisory board
include certain persons. Requires the advisory board to annually elect a
presiding officer. Requires the advisory board to review the program and to
recommend to the commission changes to revenue sources or financial
incentives or any legislative, regulatory, or budgetary changes needed.
Requires the commission to provide necessary staff support to the advisory
council. 

[Sections 386.059-386.100 reserved for expansion]

SUBCHAPTER C. DIESEL EMISSIONS REDUCTION INCENTIVE PROGRAM

Sec. 386.101. DEFINITIONS. Defines "cost-effectiveness," "covered engine,"
"covered  source," "covered vehicle," "fuel cell," "heavy-duty vehicle,"
"offroad engine," "offroad equipment," "offroad vehicle," "program,"
"qualifying fuel," "repower," "retrofit," and "verylow-emissions vehicle." 

Sec. 386.102. PROGRAM. Requires the commission to establish and administer
a diesel emissions reduction incentive program. Requires the commission,
under the program, to provide grants for eligible projects to offset the
incremental cost of projects that reduce emissions of oxides of nitrogen
from high-emitting diesel sources in nonattainment and affected counties of
the state. Requires the commission to determine the eligibility of
projects. Authorizes  projects that are to be considered for a grant under
the program to include certain factors. Provides that a new purchase,
lease, retrofit, repower, or add-on equipment project is not eligible for a
grant under this subchapter if the new purchase, lease, retrofit, repower,
or add-on equipment is required by any state or federal law, rule or
regulation, memorandum of agreement, or other legally binding document.
Provides that this subsection does not apply to certain projects and
purchases. 

Sec. 386.103. APPLICATION FOR GRANT. Authorizes any person as defined by
Section 382.003 that owns one or more covered vehicles that operate
primarily within a nonattainment area or affected county near of this state
or that otherwise contributes to the state inventory of emissions of oxides
of nitrogen to apply for a grant under the program. Requires an application
for a grant under this subchapter to be made on an application provided by
the commission and to contain information required by the commission,
including certain other factors. 

Sec. 386.104. ELIGIBILITY REQUIREMENTS. Requires the commission to
establish criteria for setting priorities for projects eligible to receive
grants under this chapter. Requires the commission to review and is
authorizes the commission to modify the criteria and priorities as
appropriate. Requires a proposed project as described in Section 386.102 to
meet the requirements of this section to be eligible for a grant under the
program. Requires, for a proposed project as described by Section
386.102(b), other than a project involving a marine vessel or engine, not
less than 75 percent of vehicle miles traveled or hours of operation
projected for the five years immediately following the award of a grant to
be projected to take place in a nonattainment area or affected county of
this state. Requires the vessel or engine, for a proposed project involving
a marine vessel or engine, to be operated in the intercoastal waterways or
bays adjacent to a nonattainment area or affected county of this state for
a sufficient amount of time over the lifetime of the project to meet the
cost-effectiveness requirements of Section 386.105. Requires each proposed
project to meet the costeffectiveness requirements of Sections 386.105 and
386.106. Requires a proposed repower project to exceed commission
requirements relating to baseline emissions levels of the engines being
replaced under the project. Requires a proposed retrofit, repower, or
add-on equipment project to document, in a manner acceptable to the
commission, a reduction in emissions of oxides of nitrogen of at least 30
percent compared with the baseline emissions adopted by the commission for
the relevant engine year and application. Authorizes the commission, after
study of available emissions reduction technologies, public notice and
comment, and consultation with the advisory board, to revise the minimum
percentage reduction in emissions of oxides of nitrogen required by this
subsection to improve the ability of the program to achieve its goals.
Requires the commission, for purposes of this chapter, if a baseline
emissions standard does not exist for new offroad equipment in a particular
category, to establish an appropriate baseline emissions level for
comparison purposes. Authorizes the commission to approve payments to
offset the incremental cost, over the expected lifetime of the covered
vehicle, of qualifying fuel used in a covered vehicle if the proposed
project as a whole, including incremental fuel cost, meets the requirements
of this subchapter. Requires the commission to develop an appropriate
method for converting incremental fuel costs over the covered vehicle's
lifetime into an initial cost for purposes of determining
cost-effectiveness as required by Section 386.105. Provides that the owner
or operator of a facility as defined by Section 382.003 is not eligible to
receive a grant under this subchapter unless the owner or operator holds a
permit for the facility under Sections 382.0518, 382.0519, 382.05194,
382.05195, or 382.05196. 
 
Sec. 386.105. CALCULATION OF COST-EFFECTIVENESS. Requires one-time grants
of money at the beginning of a project, in calculating cost-effectiveness,
to be annualized using a time value of public funds or discount rate
determined for each project by the commission, taking into account the
interest rate on bonds, interest earned by state funds, and other factors
the commission considers appropriate. Requires the commission to establish
reasonable methodologies in consultation with all affected stakeholders,
for evaluating project costeffectiveness consistent with this section and
with accepted methods. Requires the commission  to develop protocols for
calculating oxides of nitrogen emissions reductions not otherwise required
by state or federal law in nonattainment and affected counties of this
state from representative project types over the life of the projects.
Authorizes the commission to include in cost-effectiveness determinations
only reductions in oxides of nitrogen emissions that are achieved in
nonattainment areas and affected counties of this state. 

Sec. 386.106. COST-EFFECTIVENESS CRITERIA; DETERMINATION OF GRANT AMOUNT.
Prohibits the commission, except as provided by Section 386.107,  from
awarding a grant for a proposed project the cost-effectiveness of which,
calculated in accordance with Section 386.105 and rules adopted under that
section, exceeds $13,000 per ton of oxides of nitrogen emissions reduced in
the nonattainment or affected county for which the project is proposed.
Provides that this subsection does not restrict commission authority under
other law to require emissions reductions with a cost-effectiveness that
exceeds $13,000 per ton. Prohibits the commission from awarding a grant
that, net of taxes, provides an amount that exceeds the incremental cost of
the proposed project. Requires the commission to adopt guidelines for
capitalizing incremental lease costs so those costs may be offset by a
grant under this subchapter. Requires the commission, in determining the
amount of a grant under this subchapter, to reduce the incremental cost of
a proposed new purchase, lease, retrofit, repower, or add-on equipment
project by the value of any existing financial incentive that directly
reduces the cost of the proposed project, including tax credits or
deductions, other grants, or any other public financial assistance.
Authorizes the commission to establish maximum grant awards per vehicle or
engine replaced for projects that propose to repower offroad equipment. 

Sec. 386.107. ADJUSTMENT TO MAXIMUM COST-EFFECTIVENESS AMOUNT AND AWARD
AMOUNT. Authorizes the commission, in consultation with the advisory board,
after study of available emissions reduction technologies and costs and
after public notice and comment, to change the values of the maximum grant
award criteria established in Section 386.106  and any per-project maximum
set by the commission under Section 386.106(e) to account for inflation or
to improve the ability of the program to achieve its goals. 

Sec. 386.108. INFRASTRUCTURE DEMONSTRATION PROJECTS. Requires the
commission to provide funding under Section 386.252(a)(1) for
infrastructure demonstration projects to provide initial support for
low-emissions vehicle projects at the start of the program. Requires the
commission to perform certain procedures to implement the requirements of
this section. 

Sec. 386.109. ELIGIBLE INFRASTRUCTURE DEMONSTRATION PROJECTS. Authorizes
the commission to consider for funding under Section 386.108 certain
equipment or projects. 

Sec. 386.110. APPLICATION PACKAGE FOR INFRASTRUCTURE DEMONSTRATION
PROJECTS. Requires the commission to develop a simple, standardized
application package for infrastructure demonstration project grants under
this subchapter. Requires the package to include certain information.
Requires the application form to require as much information as the
commission determines is necessary to properly evaluate each project but to
otherwise minimize the information required. Prohibits the commission from
requiring an applicant, as part of the application process, to calculate
tons of emissions reduced or cost-effectiveness. 

Sec. 386.111. APPLICATION REVIEW PROCEDURES. Requires the commission to
review an application for a grant for a project authorized under this
subchapter, including an application for a grant for an infrastructure
demonstration project, immediately on receipt of the application. Requires
the commission, if the commission determines that an application is
incomplete, to notify the applicant, not later than the 15th working day
after the date on which  the commission received the application, with an
explanation of what is missing from the application. Requires the
commission to record the date and time of receipt of each application the
commission determines to be complete and evaluate the completed application
according to the appropriate project criteria. Requires the commission,
subject to available funding, to make a final determination on an
application as soon as possible and not later than the 60th working day
after the date the application is determined to be complete. Requires the
commission to make every effort to expedite the application review process
and to award grants to qualified projects in a timely manner. Requires the
commission, to the extent possible, to coordinate project review and
approval with any timing constraints related to project purchases or
instalments to be made by an applicant. Authorizes the commission to deny
an application for a project that does not meet the applicable project
criteria or that the commission determines is not made in good faith, is
not credible, or is not in compliance with this chapter and the goals of
this chapter. Requires the commission, subject to available funds, to award
a grant under this subchapter in conjunction with the execution of a
contract that obligates the commission to make the grant and the recipient
to perform the actions described in the recipient's grant application.
Requires the contract to incorporate provisions for recapturing grant money
in proportion to any loss of emissions reductions or underachievement in
dispensing qualifying fuel compared with the volume of emissions reductions
or amount of fuel dispensed that was projected in awarding the grant.
Requires grant money recaptured under the contract provision to be
deposited in the fund and reallocated for other projects under this
subchapter. Authorizes an applicant to seek reimbursement for qualifying
equipment installed after the date of this program. 

Sec. 386.112. HEAVY-DUTY MOTOR VEHICLE PURCHASE OR LEASE INCENTIVE.
Requires the commission to develop a purchase or lease incentive program
for heavy-duty motor vehicles and to adopt rules necessary to implement the
program and to reimburse a purchaser or lessee of a heavy-duty motor
vehicle that is eligible for reimbursement of incremental costs under this
subchapter. Requires the program to authorize statewide incentives for the
reimbursement of incremental costs for the purchase or lease, according to
the schedule provide by Section 386.113, of heavy-duty motor vehicles that
are certified by the United States Environmental Protection Agency to an
emissions standard provided by Section 386.113 if the purchaser or lessee
of the vehicle agrees to register the vehicle in this state and to operate
the vehicle in this state and to operate the vehicle in this state for not
less than 75 percent of the vehicle's annual mileage. Provides that only
one incentive will be provided for each motor vehicle. Requires the
incentive to be provided to the lessee and not to the purchaser if the
motor vehicle is purchased for the purpose of leasing the vehicle to
another person. Requires a lease incentive for a motor vehicle to be
prorated based on an eight-year lease term. 

Sec. 386.113. HEAVY-DUTY MOTOR VEHICLE PURCHASE OR LEASE INCENTIVE
SCHEDULE. Provides that a heavy-duty motor vehicle is eligible for
reimbursement of incremental costs according to a certain schedule. 

[Sections 386.114-386.150 reserved for expansion]

SUBCHAPTER D. MOTOR VEHICLE PURCHASE  OR LEASE INCENTIVE PROGRAM

Sec. 386.151. DEFINITIONS. Defines "bin" or "emissions bin," "ILEV," and
"light-duty motor vehicle." 

Sec. 386.152. LIGHT-DUTY MOTOR VEHICLE PURCHASE OR LEASE INCENTIVE.
Requires the comptroller and the commission to develop a purchase or lease
incentive program for light-duty motor vehicles and to adopt rules
necessary to implement the program. Requires the program to authorize
statewide incentives for the purchase or lease, according to the schedule
provided by Section 386.153, to be implemented at the point of sale or
lease, of lightduty motor vehicles that are certified by the United States
Environmental Protection Agency to  an emissions standard provided by
Section 386.153 for a purchaser or lessee who agrees to register the
vehicle in this state and to operate the vehicle n this state for not less
than 75 percent of the vehicle's annual mileage. Provides that only one
incentive will be provided for each motor vehicle. Requires the incentive
to be provided to the lessee and not to the purchaser if the motor vehicle
is purchased for that purpose of leasing the vehicle to another person. 
 
Sec. 386.153. LIGHT-DUTY MOTOR VEHICLE PURCHASE OR LEASE INCENTIVE
SCHEDULE. Provides that a light-duty motor vehicle is eligible for an
incentive according to certain schedules.     

Sec. 386.154. MODIFICATION OF INCENTIVE EMISSIONS STANDARDS. Authorizes the
commission, in consultation with the advisory board, after evaluating new
technologies and after public notice and comment, to change the incentive
emissions standards established by Section 386.153 to improve the ability
of the program to achieve its goals. 

Sec. 386.155. MANUFACTURER'S REPORT. Requires a manufacturer of motor
vehicles, at the beginning of but not later than July 1 of each year
preceding the vehicle model year, to provide to the commission certain
information. 

Sec. 386.156. LIST OF ELIGIBLE MOTOR VEHICLES. Provides that on August 1
each year the commission is required to publish and provide to the
comptroller a list of the new model motor vehicles as listed for the
commission under Section 386.155. Requires the comptroller to distribute
the list of eligible motor vehicles to new vehicle dealers and leasing
agents in this state. 

Sec. 386.157. VEHICLE EMISSIONS INFORMATION LABEL. Requires a motor vehicle
distributor to affix on each new light-duty motor vehicle for sale or lease
in this state display a clearly legible label that shows the vehicle's
class rating under the United States Environmental Protection Agency's
5-star green vehicle class rating system to enable consumers to make
informed purchase decisions based on the relative amounts of emissions
produced by motor vehicles within each vehicle class. Requires the
commission to design the label and have it available on the commission
website. Requires the label to also contain certain information. 

Sec. 386.158. POINT-OF-SALE OR POINT-OF-LEASE INCENTIVE; REPORT TO
COMPTROLLER; PENALTY. Provides that a person who purchases or leases during
the model year in which it is first offered for sale or lease a new motor
vehicle that has been listed under Section 386.155 is eligible for an
incentive under this subchapter. Requires a new motor vehicle dealer or
leasing agent to credit a purchaser or lessee with the appropriate
incentive as part of the sales or lease transaction after the assessment of
all applicable taxes. Requires the dealer or agent to report to the
comptroller, at the beginning of each calender month and in the manner
prescribed by the comptroller, the amount of incentives credited by the
dealer or agent during the preceding calender month. Prohibits a new motor
vehicle dealer or leasing agent from increasing the price of a motor
vehicle that qualified for an incentive under this subchapter by an amount
that exceeds the incremental cost to the dealer or leasing agent. Provides
that a violation of this subsection is punishable as a violation of the
Deceptive Trade PracticesConsumer Protection Act (Chapter 17E, Business &
Commerce Code). Requires a lease incentive for a motor vehicle to be
prorated based on a four-year lease term. 

Sec. 386.159. PUBLIC INFORMATION. Requires the commission in cooperation
with the comptroller to develop and implement a program to inform the
public and new motor vehicle dealers and leasing agents about the motor
vehicle purchase or lease incentive program. Requires the Texas Department
of Public Safety to insert a notice describing the motor vehicle purchase
or lease incentive program with each annual vehicle registration renewal
notice. 

Sec. 386.160. COMPTROLLER TO ACCOUNT FOR MOTOR VEHICLE PURCHASE  OR LEASE
INCENTIVES. Requires the comptroller by rule to develop a method to
administer and account for the motor vehicle purchase or lease incentives
authorized by this subchapter, and to administer the fund to reimburse new
motor vehicle dealers or leasing agents within 20 days after the invoice
date for incentive amounts credited by the dealer. Authorizes the
comptroller to develop forms and instructions for new motor vehicle dealers
and leasing agents to use in accounting for and reporting motor vehicle
purchase and lease incentives and requires the comptroller to provide new
motor vehicle dealers and leasing agents with information to assist them in
accounting for and reporting the incentives. Requires the comptroller to
add two percent of the total dollar amount due to a new motor vehicle
dealer or leasing agent each month to the amount due that dealer or agent. 

Sec. 386.161. REPORT TO COMMISSION; SUSPENSION OF PURCHASE OR LEASE
INCENTIVES. Requires the comptroller to report to the commission annually
regarding motor vehicle purchase or lease incentives. Requires the
comptroller to inform the commission and all new motor vehicle dealers and
leasing agents if at any time during a fiscal year the balance available in
the money allocated in the fund for motor vehicle purchase or lease
incentives falls below 15 percent of the total amount allocated for the
incentives during that fiscal year. Requires the comptroller by order, if
the balance available for motor vehicle purchase or lease incentives falls
below that amount, to suspend the incentives until the comptroller can
certify that the balance available in the fund for incentives is an amount
adequate to resume the incentives, but not later than the beginning of the
next fiscal year. Requires the comptroller, if the comptroller suspends the
incentives, to immediately notify the commission and all new motor vehicle
dealers and leasing agents that the incentives have been suspended.
Requires new motor vehicle dealers and leasing agents to suspend incentives
on the 15th day after the date of the comptroller's notification of
suspension of incentives. 

[Sections 386.162-386.200 reserved for expansion]

SUBCHAPTER E. LOCAL GOVERNMENT GRANT PROGRAM

Sec. 386. 201. GRANT PROGRAM. Requires the commission to develop a
competitive grant program to encourage certain environmentally-conscious
actions. Authorizes the grant program developed under this section to be
administered by municipalities or counties. 

Sec. 386.202. COST-EFFECTIVENESS REQUIREMENT. Requires the amount of an
award of a competitive grant under this subchapter to be based on the
cost-effectiveness of reductions in emissions of oxides of nitrogen to be
provided by the proposed project. 

Sec. 386.203. GRANT PROJECTS. Authorizes grant projects under this
subchapter to include targeted rebates and revolving loan programs for the
purposes listed in Section 386.201(a). Requires each award to include a
low-income component that provides for weatherization of residences and
retirement  and replacement of inefficient cooling equipment and other
household appliances for low-income households. 

Sec. 386.204. USE OF GRANT MONEY. Authorizes grant money to be used in
conjunction with other energy efficiency programs but not to be used to
replace other funds from other agencies. Authorizes grants, for the first
two years of the program, to be awarded only in counties in nonattainment
areas. Authorizes grants, in years three and four of the program, to also
be awarded in affected counties. Authorizes grants, in subsequent years, to
be awarded in all counties of the state. 

Sec. 386.205. DISPOSAL OF RETIRED EQUIPMENT. Requires a grant recipient to
assure that any appliance, residential cooling equipment, or lawn or garden
equipment retired and replaced under this subchapter is recycled or
disposed of in accordance with all applicable local, state, or federal
requirements. 
 
Sec. 386.206. PRICE INCREASE PROHIBITED; PENALTY. Prohibits the seller of
an appliance, residential cooling equipment, or lawn or garden equipment or
a provider of weatherization services from increasing the price of an
appliance, residential cooling equipment, lawn or garden equipment, or
weatherization services that is sold under a grant program authorized and
developed under this subchapter by an amount that exceeds the incremental
cost to the seller or provider. Provides that a violation of this section
is punishable as a violation of the Deceptive Trade Practices-Consumer
Protection Act (Chapter 17E, Business & Commerce Code). 

 
[Sections 386.207-386.250 reserved for expansion]

SUBCHAPTER F. TEXAS EMISSIONS REDUCTION PLAN FUND

Sec. 386.251. FUND. Provides that the Texas emissions reduction plan fund
is an account in the state treasury. Provides that the fund is administered
by the comptroller for the benefit of the Texas emissions reduction plan
established under this chapter. Provides that the fund consists of certain
fees, surcharges, and payments. 

Sec. 386.252. USE OF FUND. Authorizes money in the fund to be used only to
implement and administer programs established under the Texas emissions
reduction plan and requires it to be allocated for certain purposes.
Authorizes up to 15 percent of the money allocated under this section to a
particular program and not expended under that program by March 1 of the
second fiscal year of a fiscal biennium to be used for another program
under the Texas emissions reduction plan as determined by the commission in
consultation with the advisory board. 

CHAPTER 387. NEW TECHNOLOGY RESEARCH

 Sec. 387.001. DEFINITION. Defines "program."

Sec. 387.002. TEXAS COUNCIL ON ENVIRONMENTAL TECHNOLOGY. Provides that the
Texas Council on Environmental Technology (council) consists of certain
members. Requires the governor to designate from the council members a
presiding officer of the council. Sets forth provisions regarding terms of
the council. Requires the council to work to enhance the entrepreneurial
and inventive sprit of Texans to take certain actions to assist in
developing solutions to. Requires council offices and projects to be housed
at the Center for Energy and Environmental Resources at the University of
Texas at Austin. 

Sec. 387.003. NEW TECHNOLOGY RESEARCH AND DEVELOPMENT PROGRAM. Requires the
council to establish and administer a new technology research and
development program as provided by this chapter. Requires the council,
under the program, to provide grants to be used to support development of
emissions-reducing technologies that may be used for projects eligible for
awards under Chapter 386 and other new technologies that show promise for
commercialization. Provides that the primary objective of this chapter is
to promote the development of commercialization technologies that will
support projects that may be funded under Chapter 386 and this chapter. 

Sec. 387.004. SOLICITATION OF NEW TECHNOLOGY PROPOSALS. Requires the
council to issue specific requests for proposals or program opportunity
notices for technology projects to be funded under the new technology
research and development programs. 

Sec. 387.005. ELIGIBLE PROJECTS; PRIORITIES. Requires grants awarded under
this chapter to be directed toward a balanced mix of certain technologies.
Requires the council to identify and evaluate and authorizes it to consider
making grants for technology projects that  would allow qualifying fuels to
be produced from energy resources in this state. Requires the council, in
considering projects under this subsection, to give preference to projects
involving otherwise unusable energy resources in this state and producing
qualifying fuels at prices lower than otherwise available and low enough to
make the projects to be funded under the program economically attractive to
local businesses in the area for which the project is proposed. Requires
the council, in soliciting proposals under Section 387.004 and determining
how to allocate grant money available for projects under this chapter, to
give special consideration to advanced technologies and retrofit or add-on
projects that provide multiple benefits by reducing emissions or
particulates and other air pollutants. Provides that a project that
involves a technology that allows an onroad covered vehicle to replace with
electric power, while the vehicle is parked, the power normally supplied by
the vehicle's internal combustion engine is eligible for funding under this
chapter if the project meets all applicable criteria. Provides that a
project that involves publically or privately owned vehicles or vessels is
eligible for funding under this chapter if the project meets all applicable
criteria. 

Sec. 387.006. EVIDENCE OF COMMERCIALIZATION POTENTIAL REQUIRED. Requires an
application for a technology grant under this chapter to show clear and
compelling evidence that certain criteria exists. Requires the council to
consider specifically, for each proposed technology project application,
certain criteria. 

Sec. 387.007. COST-SHARING. Authorizes the council to require cost-sharing
for technology projects funded under this chapter but prohibits it from
requiring repayment of grant money. 
 
Sec. 387.008. ENVIRONMENTAL RESEARCH FUND. Provides that the environmental
research fund is an account in the general revenue fund, consisting of
certain funds. 

Sec. 387.009. ADVISORY COMMITTEES. Authorizes the council to appoint
advisory committees as necessary or desirable to assist the council in
performing its duties. Authorizes an advisory committee to include certain
persons or entities. 

Sec. 387.010. REPORTS. Sets forth provisions regarding reports submitted by
the council to the legislature. 


CHAPTER 388. TEXAS BUILDING ENERGY PERFORMANCE STANDARDS

 Sec. 388.001. LEGISLATIVE FINDINGS. Sets forth legislative findings.

Sec. 388.002. DEFINITIONS. Defines "accredited energy program," "advisory
committee," "affected county," "building," "code administrator,"
"code-certified inspector," "commission," "international building code,"
"international residential code," " international energy conservation
code," "laboratory," "local jurisdiction," "municipality," "single-family
residential," and "structure." 
 
Sec. 388.003. ADOPTION OF BUILDING ENERGY PERFORMANCE STANDARDS. Provides
that to achieve energy conservation in single-family residential
construction, the energy chapter in the International Residential Code, as
it existed on May 1, 2001, is adopted as the energy code in this state for
single-family residential construction. Provides that to achieve energy
conservation in all other residential, commercial, and industrial
construction, the International Energy Conservation Code as it existed on
May 1, 2001, is adopted as the energy code for use in this state.
Authorizes a municipality to establish certain procedures. Prohibits local
amendments from resulting in less stringent energy efficiency requirements
than the International Residential Code or International Energy
Conservation Code. Requires the laboratory to determine, at the request of
a municipality, the relative impact of proposed local  amendments to an
energy code, including whether proposed amendments are substantially equal
to, less stringent than the unamended code, and requires the laboratory to
report certain information. Requires a municipality to periodically review
and consider amendments made by the International Code Council to the
International Energy Conservation Code and the International Residential
Code energy chapter adopted after May 1, 2001. 

Sec. 388.004. ENFORCEMENT OF ENERGY STANDARDS OUTSIDE OF MUNICIPALITY. Sets
forth construction standards for a building outside of the local
jurisdiction of a municipality. 

Sec. 388.005. ADDITIONAL ENERGY CONSERVATION PROGRAMS IN NONATTAINMENT AREA
AND AFFECTED COUNTY. Requires each municipality in an affected county and
the affected counties to develop energy efficiency or weatherization
programs for existing buildings that would result in energy savings equal
to or greater than 10 percent of the projected energy savings that would
result from the adoption of energy codes for new construction. Requires the
laboratory by September 1, 2001, the to develop and implement energy
savings estimates and set targets for each municipality and affected
county. Requires each municipality and affected county to develop and
implement energy savings and weatherization programs to meet these targets.
Authorizes the municipality and affected counties to use projected savings
approved by the Public Utility Commission of Texas for certain energy
efficiency measures to estimate the impact of such measures in local
programs. Authorizes each municipality and affected county in calculating
the effect of its program toward the additional savings established in this
section, to count measures funded by the Texas Emission Reduction Program
grant program in Subchapter E of this chapter, but prohibits it from
counting energy efficient measures funded by other state or federal
agencies required by Section 39.905 (Goal for Energy Efficiency), Utilities
Code. Authorizes a municipality or county to adopt non-code energy
performance standards for the sale and installation of certain equipment.
Requires the laboratory, on request of a municipality, county or a regional
government representation, to determine the additional energy savings
potential from non-code energy performance programs being considered, and
advise the requesting entity of its determination within 60 days.
Authorizes the laboratory to review the specifications adopted the
Environmental Protection Agency's Energy Star program or comparable
nationally developed specifications, in consultation with the advisory
committee, to determine whether modifications should be incorporated into
the non-code energy performance standards available to jurisdictions under
this section, and to modify the Energy Star, or comparable nationally
developed, specifications as needed to assure certain conditions. Requires
a municipality or affected county to submit an annual report to the
laboratory on its progress under this section and requires the laboratory
to submit the report to the commission for inclusion into the annual report
as required by Section 386.057. 
 
Sec. 388.006. GREEN BUILDING PERFORMANCE STANDARDS. Requires the laboratory
to develop a series of green building guidelines that meet certain
criteria. 

Sec. 388.007. TEXAS BUILDING ENERGY PERFORMANCES STANDARDS ADVISORY
COMMITTEE. Provides that the Texas Building Energy Performance Standards
Advisory Board is composed of certain persons. 

Sec. 388.008. APPLICATION OF STANDARDS. Provides that except as otherwise
provided by this chapter, the International Energy Conservation Code and
the energy chapter of the International Residential Code apply to any
building or structure in this state for which a building permit application
is received by a local jurisdiction on or after September 1, 2002. 

Sec. 388.009. DISTRIBUTION OF INFORMATION AND TECHNICAL ASSISTANCE.
Requires the laboratory to make available to certain persons code
implementation materials that explain the requirements of the International
Energy Conservation Code and the energy chapter  of the International
Residential Code and describe methods of compliance acceptable to code
enforcement officials. Requires the materials to include software tools,
simplified prescriptive options, and other materials as appropriate.
Requires the simplified materials to be designed for projects in which a
design professional is not involved. Requires the laboratory to provide
local jurisdictions with technical assistance concerning implementation and
enforcement of the International Energy Conservation Code and the energy
chapter of the International Residential Code. 

Sec. 388.010. DEVELOPMENT OF ACCREDITATION PROGRAM FOR HOME ENERGY RATING
SERVICES.  Requires the laboratory, in consultation with the advisory
committee, mortgage companies, and contractors who provide home energy
rating services, to develop an accreditation program for energy rating
services. Requires the laboratory, in establishing standards for the
accreditation program, to consider available national home energy rating
system guidelines and to base the ratings on the International Energy
Conservation Code and the International Residential Code energy chapter.
Requires the laboratory to develop procedures for determining whether a
provider of home energy rating services meets accreditation standards
developed under this section. Requires the laboratory to develop a
standardized report format to be used by providers of home energy rating
services. Requires the form to be designed to give potential buyers or
enters information on a structure's building energy performance, including
certain criteria. Requires the laboratory to establish a public information
program to inform certain persons regarding the accreditation requirements
for home energy rating services. Requires the laboratory to submit its home
energy rating accreditation program to the advisory committee by September
1, 2002. Requires the home energy rating accreditation program to be
implemented by September 1, 2003 

SECTION 2. Amends Chapter 151C, Tax Code, by adding Section 151.0515, as
follows: 

Sec. 151.0515. TEXAS EMISSIONS REDUCTION PLAN SURCHARGE. Defines
"equipment." Provides that in each county in this state, a surcharge is
imposed on the retail, sale, lease, or rental of new or used equipment in
an amount equal to 0.25 percent of the sale price or the lease or rental
amount, not to exceed a total amount of $750 for each surcharge. Requires
the surcharge to be collected at the same time and in the same manner and
to be administered and enforced in the same manner as the tax imposed under
this subchapter. Requires the comptroller to adopt any additional
procedures needed for the collection, administration, and enforcement of
the surcharge authorized by this section and to deposit all remitted
surcharges to the credit of the Texas emissions reduction plan fund.
Provides that this section expires September 30, 2008. 

SECTION 3. Amends Chapter 152B, Tax Code, by adding Section 152.0215, as
follows: 

Sec. 152.0215. TEXAS EMISSIONS REDUCTION PLAN SURCHARGE. Provides that a
surcharge is imposed on every retail sale or lease of every onroad diesel
motor vehicle over 14,000 pounds sold or leased in this state. Provides
that the amount of the surcharge is one percent of the total consideration.
Requires the surcharge to be collected at the same time and in the same
manner and be administered and enforced in the same manner as the tax
imposed under this subchapter. Requires the comptroller to adopt any
additional procedures needed for the collection, administration, and
enforcement of the surcharge authorized by this section and deposit all
remitted surcharges to the credit of the Texas emissions reduction plan
fund. Provides that this section expires September 30, 2008. 

SECTION 4. Amends Section 153.203, Tax Code, by adding Subsection (b), to
provide that the tax imposed by this subchapter des not apply to the volume
of water that is blended together with taxable diesel fuel when the
finished product sold or used is clearly identified on the retail pump,
storage tank, and sales invoice as a combination of diesel fuel and water.
Provides that this subsection expires August 31, 2008. 
 
SECTION 5. Amends Chapter 156B, Tax Code, by adding Section 156.054, as
follows: 

Sec. 156.054. TEXAS EMISSIONS REDUCTION PLAN SURCHARGE. Provides that in
this section, "nonattainment area" and "affected county" have the meanings
assigned by Section 386.001, Health and Safety Code. Requires a person
owning, operating, managing, or controlling a hotel located in a
nonattainment area or affected county to collect a surcharge imposed by
this section. Provides that a $1 surcharge is imposed on a person for each
day that the person has the right to use or possess a room in a hotel that
is ordinarily used for sleeping. Provides that Sections 156.101, 156.102,
and 156.103 do not apply to the surcharge authorized by this section.
Requires the surcharge to be collected at the same time and in the same
manner and to be administered and enforced in the same manner as the tax
imposed under this subchapter. Requires the comptroller to adopt any
additional procedures needed for the collection, administration, and
enforcement of the surcharge authorized by this section and to deposit all
remitted surcharges to the credit of the Texas emissions reduction plan
fund. Provides that this section expires September 30, 2008.  

SECTION 6. Amends Section 224.153, Transportation Code, by adding
Subsection (c), to provide that a motor vehicle displaying the "clean
vehicle" insignia authorized by Section 502.186 is entitled to travel in a
preferential car pool or high occupancy vehicle lane designated under this
section regardless of the number of occupants in the vehicle. Provides that
this subsection expires August 31, 2008. 

SECTION 7. Amends Section 431.073, Transportation Code, by adding
Subsection (d), to provide that a motor vehicle displaying the "clean
vehicle" insignia authorized by Section 502.186 is entitled to travel in a
high occupancy vehicle  lane designated under this section regardless of
the number of occupants in the vehicle. Provides that this subsection
expires August 31, 2008. 

SECTION 8. Amends Chapter 502D, Transportation Code, by adding Section
502.1675, as follows: 

Sec. 502.1675. TEXAS EMISSIONS REDUCTION PLAN SURCHARGE. Provides that in
addition to the registration fees charged under Section 502.167, a
surcharge is imposed on the registration of a truck-tractor or commercial
motor vehicle under that section in an amount to 10 percent of the total
fees due for the registration of the truck-tractor or commercial motor
vehicle under that section. Requires the county tax assessor-collector to
remit the surcharge collected under this section to the comptroller at the
time and in the manner prescribed by the comptroller for deposit in the
Texas emissions reduction plan fund. Provides that this section expires
August 31, 2008. 
 
SECTION 9. Amends Chapter 502D, Transportation Code, by adding Section
502.186, as follows: 

Sec. 502.186. "CLEAN VEHICLE" INSIGNIA FOR CERTAIN MOTOR VEHICLES. Requires
the department, at the time of registration or reregistration of the motor
vehicle, to issue a specially designed "clean vehicle" insignia for a
vehicle that is eligible for a motor vehicle purchase or lease incentive
under Chapter 386D, Health and Safety Code. Requires the insignia issued
under this section to include certain words. Requires the department to
issue a "clean vehicle" insignia under this section without the payment of
any additional fee to a person who meets certain conditions. Provides that
this section expires August 31, 2008. 

SECTION 10. Amends Chapter 548H, Transportation Code, by adding Section
548.5055, as follows: 

Sec. 548.5055. TEXAS EMISSIONS REDUCTION PLAN FEE. Requires the department,
in addition to other fees required by this subchapter, to fund the Texas
emissions reduction plan established under Chapter 386, Health and Safety
Code, to collect, for every motor vehicle required to be inspected under
this chapter, certain fees. Requires the fees to be deposited in the Texas
emissions reduction plan fund. Provides that this section expires August
31, 2008.  Makes conforming changes. 

SECTION 11. Amends Section 681.009, Transportation Code, by adding
Subsection (f), to require a political subdivision or a person who
designates five or more parking spaces or a parking area for the exclusive
use of vehicles transporting persons with disabilities, in a nonattainment
area or an affected county in this state, to designate the same number of
parking spaces or a parking area for the exclusive use of motor vehicles
displaying "clean vehicle" insignia authorized by Section 502.186. Requires
parking spaces or a parking area designated under this section to be as
close to the building or area for which the spaces are provided as the
parking spaces or parking area provided for vehicles transporting persons
with disabilities. Provides that in this subsection, "nonattainment area"
and "affected county" have the meanings assigned by Section 386.001, Health
and Safety Code. Provides that this subsection expires August 31, 2008. 

SECTION 12. Amends Chapter 31B, Parks and Wildlife Code, by adding Section
31.0265, to require each application for an original or renewal certificate
of number for a motorboat that will be operated primarily in a
nonattainment or affected county of this state, to be accompanied by a $3
Texas emissions reduction plan surcharge in addition to any other fee
required to  be paid to the department. Provides that this section expires
August 31, 2008. Makes conforming changes. 

SECTION 13. Amends Chapter 20, Title 132, Revised Statutes, by adding
Articles 9035 and 9036, as follows: 

 Art. 9035. TEXAS EMISSIONS REDUCTION PLAN SURCHARGE ON TAXI FARES

Sec. 1. DEFINITIONS. Defines "fare," "nonattainment area," "affected
county," "taxi," "subsidized fare for disabled passengers," and
"very-low-emissions vehicle." 

 Sec. 2. APPLICATION. Provides that this article applies only in a
nonattainment area or an affected county in this state. 

Sec. 3. IMPOSITION AND COLLECTION OF SURCHARGE. Provides that a surcharge
of 50 cents is imposed on each fare collected by the taxi driver for
transportation by a taxi. Requires a taxi driver who is employed by or
under contract with a taxi company to remit to the company at the end of
each month the total amount of surcharges collected by the driver during
that month, less five percent of the total to be retained by the driver.
Requires the taxi company to remit to the comptroller at the end of each
month the total amount of surcharges collected by drivers employed by the
company, less five percent of the total to be retained by the company.
Requires an independent taxi driver to submit to the comptroller at the end
of each month the total amount of surcharges collected by the driver during
that month, less five percent of the total to be retained by the driver.
Requires the person required to remit the surcharge to maintain records of
the surcharge in the manner prescribed by the comptroller and to remit the
surcharge, less five percent, to the comptroller each month in the manner
prescribed by the comptroller for deposit to the credit of the Texas
emissions reduction plan fund. 

Sec. 4. EXEMPTION FROM SURCHARGE. Provides that the surcharge imposed by
this article does not apply if the taxi providing the transportation for
which the fare is charged meets certain requirements. 

Sec. 5. INTEREST AND PENALTIES. Provides that a person is liable for
penalties and interest on surcharges that are not remitted when due in the
same manner and at the same rate as provided for delinquent taxes by
Section 111.060 (Interest on Delinquent Tax) and 111.061 (Penalty on
Delinquent Tax or Tax Reports), Tax Code. 

Sec. 6. CRIMINAL PENALTY. Provides that a person who violates this article
or a rule adopted by the comptroller under this article commits an offense.
Provides that an offense  under this section is a Class C misdemeanor. 

 Sec. 7. EXPIRATION. Provides that this article expires August 31, 2008.

Art. 9036. TEXAS EMISSIONS REDUCTION PLAN SURCHARGE ON THE SALE OF BUNKER
FUEL 

Sec. 1. DEFINITIONS. Defines "bunker fuel," "petroleum refining facility,"
and "importer." 

Sec. 2. IMPOSITION OF SURCHARGE. Provides that a surcharge of 25 cents per
gallon is imposed on the sale of bunker fuel by a petroleum refining
facility in this state. Requires a person who imports bunker fuel into this
state for sale or use to pay to the comptroller a surcharge of 25 cents per
gallon of bunker fuel imported into this state.  

Sec. 3. EXEMPTIONS. Provides that the surcharge imposed by this section
does not apply to bunker fuel sold by a petroleum refining facility or an
importer for certain purposes. 

Sec. 4. ADMINISTRATION, PAYMENT, COLLECTION, AND ENFORCEMENT. Provides that
Chapters 101 and 111-113, Tax Code, apply to the administration, payment,
collection, and enforcement of the surcharge imposed by this article in the
same manner that those chapters apply to the administration, payment,
collection, and enforcement of taxes under Title 2, Tax Code. Requires the
comptroller to adopt any necessary rules for the administration, payment,
collection, and enforcement of the surcharge and to deposit all surcharges
remitted under this article to the Texas emissions reduction plan fund. 

 Sec. 5. EXPIRATION. Provides that this article expires August 31, 2008.

SECTION 14. Requires the commission, not later than the 45th day after the
effective date of this Act, to adopt all necessary rules, guidelines, or
criteria required to implement programs established under this Act.
Requires the comptroller, not later than the 45th day after the effective
date of this Act, to adopt all rules necessary to enable the comptroller to
carry out the comptroller's duties under this Act. Requires the commission,
pending final adoption of rules by the commission and the comptroller to
implement programs established by this Act, to begin implementation of the
programs using guidelines developed by a similar program currently
operating in another state, modified as necessary for application in this
state. 

SECTION 15. Requires the commission and the comptroller, under certain
conditions, to adopt rules necessary to implement the diesel emissions
reduction incentive and the motor vehicle purchase or lease incentive
programs. Requires by the commission, not later than September 1, 2001, to
adopt criteria for setting priorities for projects eligible for grants
under Chapter 386C, Health and Safety Code. Requires the commission to
publish the first annual list of vehicles eligible for motor vehicle
purchase or lease incentives, as required by Section 386.156, Health and
Safety Code, as added by this Act, not later than the 30th day after the
effective date of this Act. 

SECTION 16. Provides that the vehicle purchase or lease incentives apply
only to the sale or lease of a vehicle that occurs on or after January 1,
2002. 

SECTION 17. Requires the Texas Department of Transportation, not later than
the 45th day after the effective date of this Act, to make available to the
county tax assessor-collector of each county in the state the "clean
vehicle" insignia authorized by Section 502.186, Transportation Code, as
added by this Act. Requires the county tax assessor-collector of each
county in the state to begin issuing the "clean vehicle" insignia to
persons who qualify for the insignia not later than the 10th working day
after the date the insignia are available. 

SECTION 18. Requires the appointing authorities, in making the initial
appointments to the Texas  Emissions Reduction Plan Advisory Board, as
created by Section 386.058, Health and Safety Code, as added by this Act,
to designate their appointees so that six members' terms expire February 1,
2002, and seven members' terms expire February 1, 2003. Requires
appointments to the advisory board to be made not later than July 1, 2001,
or the effective date of this Act, whichever is later. 

SECTION 19. Requires the governor to appoint members to the Texas Council
on Environmental Technology (TCET) as soon as practicable after the Act's
effective date. Requires the governor to designate the expiration of the
appointees' terms. 

SECTION 20. Requires the TCET to issue requests for proposals for projects
to be funded under the new technology research and development program, not
later than the 30th day after the adoption of rules governing the program. 

SECTION 21. Requires the commission, on the effective date of this Act, to
submit to the United States Environmental Protection Agency a revision to
the state implementation plan that deletes the requirements of the
construction shift and early purchase of Tier 2 and Tier 3 equipment and
adds the provisions of this Act. 

SECTION 22. Provides that the Texas emissions reduction plan fund and the
environmental research fund are accounts in the general revenue fund and
the accounts and money deposited to the accounts are exempt from any Act of
the 77th Legislature, Regular Session, 2001. Requires the deposit of money
that would be deposited to the credit of a special account or fund to be
deposited to the credit of a special account or fund deposited to the
credit of the unobligated portion of the general revenue fund unless the
fund, account, or dedication is exempted under that Act. Provides that this
section prevails over any Act of the 77th Legislature, Regular Session,
2001. 

SECTION 23. Requires the commission to submit the final biennial plan
report to the legislature not later than December 1, 2008. 

SECTION 24. Sets forth that expiration of Sections 151.0515, 152.0215, and
156.054, Tax Code, and Articles 9035 and 9036, Revised Statutes, as added
by this Act, does not affect an obligation that was incurred, a violation
that occurred, or an offense that was committed under those sections or
articles before the expiration date of those sections or articles. Provides
that violation occurs or an offense is committed before the expiration of
those sections or articles if any element of the violation or offense
occurs before that date. 

SECTION 25. Effective date: upon passage or September 1, 2001. 



SUMMARY OF COMMITTEE CHANGES

SECTION 1. Amends As Filed S.B. 5, as follows:

 _Amends language in previously proposed Chapter 386 regarding TEXAS
EMISSIONS REDUCTION PLAN. 

 _Adds new proposed Chapter 387. NEW TECHNOLOGY RESEARCH AND DEVELOPMENT
PROGRAM 

 _Adds new proposed Chapter 388. TEXAS BUILDING ENERGY PERFORMANCE STANDARDS

SECTION 2. Amends Chapter 151C, Tax Code, Section 151.0515, to define
"equipment," add an expiration date for the section, and make conforming
and nonsubstantive changes. 
 
SECTION 3. Deletes the proposed amendments to Chapter 151H, Tax Code, and
redesignates SECTION 4 of the original as SECTION 3. Amends proposed
Section 152.0215, Chapter 152B, Tax Code, to add an expiration date for the
section and make a clarifying change. 

SECTION 4. Amends Section 153.203, Tax Code which was not amended in the
original. Deletes original SECTION 5, which amended Section 153.001(5), Tax
Code, to redefine "diesel fuel." 

SECTION 5. Redesignates SECTION 6 of the original as SECTION 5. The
substitute clarifies and expands the text of proposed Section 156.054, Tax
Code, and adds an expiration date to the proposed section. 

SECTION 6. Redesignates SECTION 8 of the original as SECTION 6 and adds an
expiration date to the proposed new Section 224.153(c), Transportation
Code. 

Deletes SECTION 7 of the original, which proposed amending Chapter 171 of
the Tax Code by adding SUBCHAPTER S. TAX CREDIT FOR USE OF LIQUIFIED GAS TO
FUEL MOTOR VEHICLES. 

Deletes SECTION 9 (which amended Section 224.155, Transportation Code),
SECTION 10 (which amended Section 361.179, Transportation Code), and
SECTION 11 (which amended Section 366.173, Transportation Code) of the
original bill. 

SECTION 7. Redesignates SECTION 12 of the original as SECTION 7 and amends
proposed Section 471.073(d), Transportation Code. 

SECTION 8. Redesignates SECTION 13 of the original as SECTION 8 and amends
proposed Section 502.1675, Transportation Code, by adding an expiration
date to the section. 

SECTION 9. Amends Chapter 502D, Transportation Code, by adding Section
502.186. 

Deletes SECTION 14 (proposed Section 502.1715, Transportation Code),
SECTION 15 (proposed Section 502.2665, Transportation Code), and SECTION 16
(proposed Section 521.421(c), Transportation Code) of the original bill. 

SECTION 10. Redesignates SECTION 17 of the original as SECTION 10. Amends
proposed Section 548.5055, Transportation Code, by adding an expiration
date to the section and making conforming changes. 

Deletes SECTION 18 (which amended Section 643.053, Transportation Code) of
the original bill. 

SECTION 11. Redesignates SECTION 19 of the original as SECTION 11. Amends
proposed Section 681.009(f), Transportation Code, by adding an expiration
date to the subsection and making conforming changes. 

SECTION 12. Redesignates SECTION 20 of the original as SECTION 12 and
amends proposed Section 31.0265 by adding an expiration date to the Section
and by making conforming changes. 

SECTION 13. Redesignates SECTION 21 of the original as SECTION 13 and
amends proposed Articles 9035 and 9036, Revised Statutes. 

Deletes SECTION 22, regarding compliance of energy-efficient standards for
new construction, and SECTION 23, regarding an emissions reduction plan
surcharge as fuel for marine vessels, of the original bill. 

SECTION 14. Redesignates from SECTION 24 of the original.
 
SECTIONS 15-25. Contains both new and amended SECTIONS relating to the
implementation of this Act. 

Deletes SECTIONS 27-29, and 31 of the original bill.