By: Brown, Jackson S.B. No. 5
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the Texas emissions reduction plan; providing a
1-3 penalty.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. (a) It is the intent of the legislature to give
1-6 the Texas Natural Resource Conservation Commission additional tools
1-7 to:
1-8 (1) assure that the air in this state is safe to
1-9 breathe and meets minimum federal standards established under the
1-10 federal Clean Air Act (42 U.S.C. Section 7407);
1-11 (2) develop multipollutant approaches to solving the
1-12 state's environmental problems; and
1-13 (3) adequately fund research and development that will
1-14 make the state a leader in new technologies that can solve the
1-15 state's environmental problems while creating new business and
1-16 industry in the state.
1-17 (b) Subtitle C, Title 5, Health and Safety Code, is amended
1-18 by adding Chapters 386, 387, and 388 to read as follows:
1-19 CHAPTER 386. TEXAS EMISSIONS REDUCTION PLAN
1-20 SUBCHAPTER A. GENERAL PROVISIONS
1-21 Sec. 386.001. DEFINITIONS. In this chapter:
1-22 (1) "Advisory board" means the Texas Emissions
1-23 Reduction Plan Advisory Board.
1-24 (2) "Affected county" includes:
1-25 (A) Bastrop County;
2-1 (B) Bexar County;
2-2 (C) Caldwell County;
2-3 (D) Comal County;
2-4 (E) Ellis County;
2-5 (F) Gregg County;
2-6 (G) Guadalupe County;
2-7 (H) Harrison County;
2-8 (I) Hays County;
2-9 (J) Johnson County;
2-10 (K) Kaufman County;
2-11 (L) Nueces County;
2-12 (M) Parker County;
2-13 (N) Rockwall County;
2-14 (O) Rusk County;
2-15 (P) San Patricio County;
2-16 (Q) Smith County;
2-17 (R) Travis County;
2-18 (S) Upshur County;
2-19 (T) Victoria County;
2-20 (U) Williamson County; and
2-21 (V) Wilson County.
2-22 (3) "Commission" means the Texas Natural Resource
2-23 Conservation Commission.
2-24 (4) "Council" means the Texas Council on Environmental
2-25 Technology.
2-26 (5) "Fund" means the Texas emissions reduction plan
3-1 fund.
3-2 (6) "Incremental cost" means the cost of an
3-3 applicant's project less a baseline cost that would otherwise be
3-4 incurred by an applicant in the normal course of business.
3-5 Incremental costs may include added lease or fuel costs as well as
3-6 additional capital costs.
3-7 (7) "Laboratory" means the Energy Systems Laboratory
3-8 at the Texas Engineering Experiment Station of The Texas A&M
3-9 University System.
3-10 (8) "Motor vehicle" means a self-propelled device
3-11 designed for transporting persons or property on a public highway
3-12 that is required to be registered under Chapter 502, Transportation
3-13 Code.
3-14 (9) "New vehicle" means a motor vehicle that has not
3-15 been the subject of a first sale.
3-16 (10) "Nonattainment area" means an area so designated
3-17 under Section 107(d) of the federal Clean Air Act (42 U.S.C.
3-18 Section 7407).
3-19 (11) "Plan" means the Texas emissions reduction plan.
3-20 (12) "Site" means the total of all stationary sources
3-21 located on one or more contiguous or adjacent properties, which are
3-22 under common control of the same person or persons under common
3-23 control.
3-24 Sec. 386.002. EXPIRATION. This chapter expires August 31,
3-25 2008.
3-26 (Sections 386.003-386.050 reserved for expansion
4-1 SUBCHAPTER B. TEXAS EMISSIONS REDUCTION PLAN
4-2 Sec. 386.051. TEXAS EMISSIONS REDUCTION PLAN. (a) The
4-3 commission, the comptroller, and the council shall establish and
4-4 administer the Texas emissions reduction plan in accordance with
4-5 this chapter.
4-6 (b) Under the plan, the commission, the comptroller, and the
4-7 council shall provide grants or other funding for:
4-8 (1) the diesel emissions reduction incentive program,
4-9 including the infrastructure demonstration projects, established
4-10 under Subchapter C;
4-11 (2) the motor vehicle purchase or lease incentive
4-12 program established under Subchapter D;
4-13 (3) the local government grant program established
4-14 under Subchapter E; and
4-15 (4) the new technology research and development
4-16 program established under Chapter 387.
4-17 (c) Equipment purchased before September 1, 2001, is not
4-18 eligible for a grant or other funding under the plan.
4-19 Sec. 386.052. COMMISSION DUTIES. (a) In administering the
4-20 plan established under this chapter and in accordance with the
4-21 requirements of this chapter, the commission shall:
4-22 (1) manage plan funds and oversee the plan;
4-23 (2) produce guidelines, protocols, and criteria for
4-24 eligible projects;
4-25 (3) develop methodologies for evaluating project
4-26 cost-effectiveness;
5-1 (4) prepare reports regarding the progress and
5-2 effectiveness of the plan; and
5-3 (5) take all appropriate and necessary action so that
5-4 emissions reductions achieved through the plan are credited by the
5-5 United States Environmental Protection Agency to the appropriate
5-6 emissions reduction objectives in the state implementation plan.
5-7 (b) Appropriate commission objectives include:
5-8 (1) achieving maximum reductions in oxides of nitrogen
5-9 to demonstrate compliance with the state implementation plan;
5-10 (2) preventing areas of the state from being in
5-11 violation of national ambient air quality standards; and
5-12 (3) achieving cost-saving and multiple benefits by
5-13 reducing emissions of other pollutants, such as particulates,
5-14 together with reductions in emissions of oxides of nitrogen.
5-15 Sec. 386.053. GUIDELINES AND CRITERIA. (a) The commission
5-16 shall adopt grant guidelines and criteria consistent with the
5-17 requirements of this chapter. The commission shall consider
5-18 examples of similar programs in other states during the development
5-19 of guidelines and criteria.
5-20 (b) Guidelines must include protocols to calculate projected
5-21 emissions reductions, project cost-effectiveness, and safeguards to
5-22 ensure that funded projects generate emissions reductions not
5-23 otherwise required by state or federal law.
5-24 (c) The commission shall make draft guidelines and criteria
5-25 available to the public and the United States Environmental
5-26 Protection Agency before the 45th day preceding the date of final
6-1 adoption and shall hold at least one public meeting to consider
6-2 public comments on the draft guidelines and criteria before final
6-3 adoption.
6-4 (d) The commission may propose revisions to the guidelines
6-5 and criteria adopted under this section as necessary to improve the
6-6 ability of the plan to achieve its goals. Revisions may include,
6-7 among other changes, adding additional pollutants or adjusting
6-8 eligible program categories, as appropriate, to ensure that
6-9 incentives established under this chapter achieve the maximum
6-10 possible emissions reductions. The commission shall make a
6-11 proposed revision available to the public before the 45th day
6-12 preceding the date of final adoption of the revision and shall hold
6-13 at least one public meeting to consider public comments on the
6-14 proposed revision before final adoption.
6-15 (e) Because the legislature finds that the current state of
6-16 air quality in the state creates an imminent peril to the public
6-17 health, safety, and welfare and jeopardizes the state's ability to
6-18 meet federal air quality requirements, the commission and the
6-19 comptroller may adopt emergency rules under Section 2001.034,
6-20 Government Code, with abbreviated notice, to carry out any
6-21 rulemaking necessary to implement this chapter.
6-22 (f) Except as provided by Subsection (e), the rulemaking
6-23 requirements of Chapter 2001, Government Code, do not apply to the
6-24 adoption or revision of guidelines and criteria under this section.
6-25 Sec. 386.054. MONITORING PROCEDURES. (a) The commission
6-26 shall develop procedures for monitoring whether the emissions
7-1 reductions projected for projects awarded grants under this chapter
7-2 are actually achieved. Monitoring procedures may include project
7-3 reviews and contract requirements that the grant recipient provide
7-4 information annually about the project. If the commission requires
7-5 an annual report, the report shall contain a minimum amount of
7-6 information required from a recipient and the report format shall
7-7 be simple and convenient.
7-8 (b) Monitoring and reviewing procedures must be sufficient
7-9 to enable emissions reductions generated by funded projects to be
7-10 fully credited to air quality plans.
7-11 (c) The commission may revise monitoring and review
7-12 procedures from time to time as necessary or appropriate to enhance
7-13 the effectiveness of the plan.
7-14 Sec. 386.055. AVAILABILITY OF EMISSIONS REDUCTION CREDITS
7-15 GENERALLY. (a) A project funded under a program established under
7-16 this chapter may not be used for credit under any state or federal
7-17 emissions reduction credit averaging, banking, or trading program.
7-18 (b) An emissions reduction generated by a program
7-19 established under this chapter may not be used as a marketable
7-20 emissions reduction credit or to offset any emissions reduction
7-21 obligation.
7-22 (c) A project involving a new emissions reduction measure
7-23 that would otherwise generate marketable credits under state or
7-24 federal emissions reduction credit averaging, banking, or trading
7-25 programs is not eligible for funding under a program established
7-26 under this chapter unless the project includes the transfer of the
8-1 marketable credits to the end user and the retirement of the
8-2 credits.
8-3 Sec. 386.056. AVAILABILITY OF EMISSIONS REDUCTION CREDITS IN
8-4 CERTAIN NONATTAINMENT AREAS. (a) An owner or operator of a site
8-5 located in the Houston-Galveston or Dallas-Fort Worth nonattainment
8-6 area may use emissions reductions generated by a program
8-7 established under this chapter to offset the requirements of
8-8 commission rules relating to control of air pollution from oxides
8-9 of nitrogen if:
8-10 (1) the owner or operator of the site contributes to
8-11 the fund $75,000 for each ton of emissions that is used, not to
8-12 exceed 10 tons annually;
8-13 (2) the owner or operator of the site demonstrates to
8-14 the commission's satisfaction that the site will be in full
8-15 compliance with the commission's emissions reduction rules not
8-16 later than the fifth anniversary of the date on which the emissions
8-17 reductions would otherwise be required;
8-18 (3) emissions from the site are reduced by at least 80
8-19 percent from the established baseline; and
8-20 (4) the commission approves a petition by the owner or
8-21 operator that demonstrates that it is technically infeasible to
8-22 comply with the commission's emissions reduction requirements above
8-23 80 percent.
8-24 (b) Funds collected under this section shall be used to
8-25 generate emissions reductions needed to meet the commission's
8-26 attainment demonstration.
9-1 (c) The commission shall verify that emissions reductions
9-2 generated from funds collected under this section occur in the same
9-3 nonattainment area in which the site that purchased the emissions
9-4 credit is located.
9-5 (d) The commission shall assure that the emissions
9-6 reductions funded under the programs authorized by this subchapter
9-7 used to offset commission requirements under this section benefit
9-8 the community in which the site using the emissions reductions is
9-9 located. If there are no eligible emissions reduction projects
9-10 within the community, the commission may authorize projects in an
9-11 adjacent community. In this subsection, "community" means a
9-12 justice of the peace precinct.
9-13 Sec. 386.057. REVIEW AND REPORTING REQUIREMENTS. (a) The
9-14 commission, in consultation with the advisory board, annually shall
9-15 review programs established under the plan, including each project
9-16 funded under the plan, the amount granted for the project, the
9-17 emissions reductions attributable to the project, and the
9-18 cost-effectiveness of the project.
9-19 (b) Not later than December 1, 2002, and not later than
9-20 December 1 of each subsequent second year, the commission, in
9-21 consultation with the advisory board, shall publish and submit to
9-22 the legislature a biennial plan report. The report must include
9-23 the information included in the annual reports prepared under
9-24 Subsection (a) and specific information for individual projects as
9-25 required by Subsection (c).
9-26 (c) For projects funded as part of the infrastructure
10-1 demonstration program under Subchapter C, the report must:
10-2 (1) describe and evaluate:
10-3 (A) the infrastructure facilities funded under
10-4 that subchapter;
10-5 (B) the degree to which the funded facilities
10-6 are supporting covered vehicle projects;
10-7 (C) the amount of fuel or electricity dispensed
10-8 for each facility; and
10-9 (D) associated emissions reductions and
10-10 cost-effectiveness; and
10-11 (2) make a finding regarding the need for additional
10-12 appropriations from the fund to improve the ability of the program
10-13 to achieve its goals.
10-14 (d) The report must:
10-15 (1) account for money received, money disbursed as
10-16 grants, money reserved for grants based on project approvals, and
10-17 any recommended transfer of money between allocations and must
10-18 estimate future demand for grant funds under the plan;
10-19 (2) describe the overall effectiveness of the plan in
10-20 delivering the emissions reductions required by air quality plans,
10-21 including rate-of-progress plans and milestone and conformity
10-22 tests;
10-23 (3) evaluate the effectiveness of the plan in
10-24 soliciting and evaluating project applications, providing awards in
10-25 a timely manner, and monitoring project implementation;
10-26 (4) describe adjustments made to project selection
11-1 criteria and recommend any further needed changes or adjustments to
11-2 the grant programs, including changes in grant award criteria,
11-3 administrative procedures, or statutory provisions that would
11-4 enhance the plan's effectiveness and efficiency;
11-5 (5) describe adjustments made to the maximum
11-6 cost-effectiveness amount and award amount;
11-7 (6) evaluate the benefits of addressing additional
11-8 pollutants as part of the plan; and
11-9 (7) include legislative recommendations necessary to
11-10 improve the effectiveness of this chapter.
11-11 (e) The commission shall request public comment and hold a
11-12 public meeting on each draft biennial report and, in producing a
11-13 final biennial report, shall consider and respond to all
11-14 significant comments received.
11-15 Sec. 386.058. TEXAS EMISSIONS REDUCTION PLAN ADVISORY BOARD.
11-16 (a) The Texas Emissions Reduction Plan Advisory Board consists of
11-17 13 appointed members, five of whom shall be appointed by the
11-18 governor, four by the lieutenant governor, and four by the speaker
11-19 of the house of representatives, and seven ex officio members as
11-20 provided by Subsection (d).
11-21 (b) Appointments to the advisory board must include
11-22 representatives from:
11-23 (1) the fuel industry;
11-24 (2) the engine manufacturing industry;
11-25 (3) the agriculture industry;
11-26 (4) the trucking industry;
12-1 (5) the automobile industry;
12-2 (6) the construction industry;
12-3 (7) the environmental community;
12-4 (8) the marine or port industry;
12-5 (9) regional transportation;
12-6 (10) the fuel cell industry;
12-7 (11) the energy-efficient construction industry;
12-8 (12) the Texas Council on Environmental Technology;
12-9 and
12-10 (13) consumer groups.
12-11 (c) Appointed members of the advisory board serve staggered
12-12 two-year terms. The terms of six appointed members expire February
12-13 1 of each even-numbered year. The terms of seven appointed members
12-14 expire February 1 of each odd-numbered year. An appointed member
12-15 may be reappointed to a subsequent term.
12-16 (d) Ex officio members of the advisory board include:
12-17 (1) the presiding officer of the senate standing
12-18 committee having primary jurisdiction over matters related to
12-19 natural resources;
12-20 (2) the presiding officer of the house standing
12-21 committee having primary jurisdiction over matters related to
12-22 environmental regulation;
12-23 (3) a representative of the commission, designated by
12-24 the executive director;
12-25 (4) a representative of the General Land Office,
12-26 designated by the Commissioner of the General Land Office;
13-1 (5) a representative of the comptroller's office,
13-2 designated by the comptroller;
13-3 (6) a representative of the Railroad Commission of
13-4 Texas, designated by the presiding officer of the agency; and
13-5 (7) a representative of the United States
13-6 Environmental Protection Agency's Region 6 office, designated by
13-7 the United States Environmental Protection Agency Region 6
13-8 administrator.
13-9 (e) The advisory board annually shall elect a presiding
13-10 officer.
13-11 (f) The advisory board shall review the program and shall
13-12 recommend to the commission changes to revenue sources or financial
13-13 incentives or any legislative, regulatory, or budgetary changes
13-14 needed.
13-15 (g) The commission shall provide necessary staff support to
13-16 the advisory board.
13-17 (Sections 386.059-386.100 reserved for expansion
13-18 SUBCHAPTER C. DIESEL EMISSIONS REDUCTION INCENTIVE PROGRAM
13-19 Sec. 386.101. DEFINITIONS. In this subchapter:
13-20 (1) "Cost-effectiveness" means the ratio of the total
13-21 dollar amount expended to the total number of tons of oxides of
13-22 nitrogen emissions reduction attributable to that expenditure.
13-23 Cost-effectiveness for the program as a whole and for particular
13-24 projects under the program is calculated as provided by Sections
13-25 386.105 and 386.106.
13-26 (2) "Covered engine" includes any internal combustion
14-1 engine or any electric motor and drive powering a covered source.
14-2 (3) "Covered source" includes the following
14-3 diesel-powered vehicles or engines:
14-4 (A) motor vehicles of 10,000 pounds gross
14-5 vehicle weight rating or more;
14-6 (B) off-road nonrecreational equipment and
14-7 vehicles;
14-8 (C) construction equipment;
14-9 (D) locomotives;
14-10 (E) diesel marine vessels;
14-11 (F) stationary agricultural engines; and
14-12 (G) other high-emitting diesel engine categories
14-13 established by the commission.
14-14 (4) "Covered vehicle" includes any motor vehicle,
14-15 off-road vehicle, or off-road equipment powered by a covered
14-16 engine.
14-17 (5) "Fuel cell" means equipment using an
14-18 electrochemical process to generate electricity and heat.
14-19 (6) "Heavy-duty vehicle" means an on-road motor
14-20 vehicle that has a gross vehicle weight rating of 10,000 pounds or
14-21 more.
14-22 (7) "Off-road engine" means an internal combustion
14-23 engine that is:
14-24 (A) in or on a piece of equipment that is
14-25 self-propelled or that propels itself and performs another
14-26 function, excluding a vehicle that is used solely for competition;
15-1 (B) in or on a piece of equipment that is
15-2 intended to be propelled while performing its function; or
15-3 (C) designed to be and capable of being carried
15-4 or moved from one location to another.
15-5 (8) "Off-road equipment" means equipment that is
15-6 powered by an off-road engine.
15-7 (9) "Off-road vehicle" means a vehicle that is powered
15-8 by an off-road engine. The term does not include a motor vehicle
15-9 or a vehicle used solely for competition.
15-10 (10) "Program" means the diesel emissions reduction
15-11 incentive program established under this subchapter.
15-12 (11) "Qualifying fuel" includes any liquid or gaseous
15-13 fuel or additives registered or verified by the United States
15-14 Environmental Protection Agency, other than standard gasoline or
15-15 diesel, that is ultimately dispensed into a covered vehicle that
15-16 provides reductions of emissions of oxides of nitrogen.
15-17 (12) "Repower" means to replace an old engine powering
15-18 a covered source with:
15-19 (A) a newer engine certified by the United
15-20 States Environmental Protection Agency to more stringent emissions
15-21 standards; or
15-22 (B) electric motors, drives, or fuel cells.
15-23 (13) "Retrofit" means to equip an engine and fuel
15-24 system with new emissions-reducing parts or technology verified by
15-25 the United States Environmental Protection Agency after manufacture
15-26 of the original engine and fuel system.
16-1 (14) "Very-low-emissions vehicle" means a vehicle that
16-2 is equipped with:
16-3 (A) a new engine that emits not more than 70
16-4 percent of the oxides of nitrogen emissions standard required by
16-5 federal regulation for the current model year for that engine;
16-6 (B) an engine 12 years old or less that emits
16-7 not more than 70 percent of the oxides of nitrogen emissions
16-8 standard emitted by a new engine certified to the baseline oxides
16-9 of nitrogen emissions standard for that engine; or
16-10 (C) an engine older than 12 years that emits not
16-11 more than 50 percent of the oxides of nitrogen emissions standard
16-12 emitted by a new engine certified to the baseline oxides of
16-13 nitrogen emissions standard for that engine.
16-14 Sec. 386.102. PROGRAM. (a) The commission shall establish
16-15 and administer a diesel emissions reduction incentive program.
16-16 Under the program, the commission shall provide grants for eligible
16-17 projects to offset the incremental cost of projects that reduce
16-18 emissions of oxides of nitrogen from high-emitting diesel sources
16-19 in nonattainment areas and affected counties of the state. The
16-20 commission shall determine the eligibility of projects.
16-21 (b) Projects that may be considered for a grant under the
16-22 program include:
16-23 (1) purchase or lease of new very-low-emissions
16-24 covered off-road vehicles or covered engines for off-road
16-25 equipment;
16-26 (2) emissions-reducing retrofit of covered engines;
17-1 (3) repower projects;
17-2 (4) purchase and use of emissions-reducing add-on
17-3 equipment for covered vehicles;
17-4 (5) development and demonstration of practical,
17-5 low-emissions retrofit technologies, repower options, and advanced
17-6 technologies for covered engines and vehicles with lower emissions
17-7 of oxides of nitrogen;
17-8 (6) use of qualifying fuel; and
17-9 (7) implementation of infrastructure demonstration
17-10 projects.
17-11 (c) A new purchase, lease, retrofit, repower, or add-on
17-12 equipment project is not eligible for a grant under this subchapter
17-13 if the new purchase, lease, retrofit, repower, or add-on equipment
17-14 is required by any state or federal law, rule or regulation,
17-15 memorandum of agreement, or other legally binding document. This
17-16 subsection does not apply to:
17-17 (1) an otherwise qualified project, regardless of the
17-18 fact that the state implementation plan assumes that the change in
17-19 equipment, vehicles, or operations will occur, if on the date the
17-20 grant is awarded the change is not required by any state or federal
17-21 law, rule or regulation, memorandum of agreement, or other legally
17-22 binding document; or
17-23 (2) the purchase of a low-emissions vehicle or
17-24 equipment required only by local law or regulation or by corporate
17-25 or controlling board policy of a public or private entity.
17-26 Sec. 386.103. APPLICATION FOR GRANT. (a) Any person as
18-1 defined by Section 382.003 that owns one or more covered vehicles
18-2 that operate primarily within a nonattainment area or affected
18-3 county of this state or that otherwise contributes to the state
18-4 inventory of emissions of oxides of nitrogen may apply for a grant
18-5 under the program.
18-6 (b) An application for a grant under this subchapter must be
18-7 made on an application provided by the commission and must contain
18-8 information required by the commission, including:
18-9 (1) a detailed description of the proposed project;
18-10 (2) information necessary for the commission to
18-11 determine whether the project meets eligibility requirements for
18-12 the type of project proposed, including a statement of the amounts
18-13 of any other public financial assistance the project will receive;
18-14 and
18-15 (3) other information the commission may require.
18-16 Sec. 386.104. ELIGIBILITY REQUIREMENTS. (a) The commission
18-17 shall establish criteria for setting priorities for projects
18-18 eligible to receive grants under this chapter. The commission
18-19 shall review and may modify the criteria and priorities as
18-20 appropriate.
18-21 (b) A proposed project as described in Section 386.102 must
18-22 meet the requirements of this section to be eligible for a grant
18-23 under the program.
18-24 (c) For a proposed project as described by Section
18-25 386.102(b), other than a project involving a marine vessel or
18-26 engine, not less than 75 percent of vehicle miles traveled or hours
19-1 of operation projected for the five years immediately following the
19-2 award of a grant must be projected to take place in a nonattainment
19-3 area or affected county of this state. For a proposed project
19-4 involving a marine vessel or engine, the vessel or engine must be
19-5 operated in the intercoastal waterways or bays adjacent to a
19-6 nonattainment area or affected county of this state for a
19-7 sufficient amount of time over the lifetime of the project to meet
19-8 the cost-effectiveness requirements of Section 386.105.
19-9 (d) Each proposed project must meet the cost-effectiveness
19-10 requirements of Sections 386.105 and 386.106.
19-11 (e) A proposed repower project must exceed commission
19-12 requirements relating to baseline emissions levels of the engines
19-13 being replaced under the project.
19-14 (f) A proposed retrofit, repower, or add-on equipment
19-15 project must document, in a manner acceptable to the commission, a
19-16 reduction in emissions of oxides of nitrogen of at least 30 percent
19-17 compared with the baseline emissions adopted by the commission for
19-18 the relevant engine year and application. After study of available
19-19 emissions reduction technologies, after public notice and comment,
19-20 and after consultation with the advisory board, the commission may
19-21 revise the minimum percentage reduction in emissions of oxides of
19-22 nitrogen required by this subsection to improve the ability of the
19-23 program to achieve its goals.
19-24 (g) If a baseline emissions standard does not exist for new
19-25 off-road equipment in a particular category, the commission, for
19-26 purposes of this chapter, shall establish an appropriate baseline
20-1 emissions level for comparison purposes.
20-2 (h) The commission may approve payments to offset the
20-3 incremental cost, over the expected lifetime of the covered
20-4 vehicle, of qualifying fuel used in a covered vehicle if the
20-5 proposed project as a whole, including the incremental fuel cost,
20-6 meets the requirements of this subchapter. The commission shall
20-7 develop an appropriate method for converting incremental fuel costs
20-8 over the covered vehicle's lifetime into an initial cost for
20-9 purposes of determining cost-effectiveness as required by Section
20-10 386.105.
20-11 (i) The owner or operator of a facility as defined by
20-12 Section 382.003 is not eligible to receive a grant under this
20-13 subchapter unless the owner or operator holds a permit for the
20-14 facility under Section 382.0518, 382.0519, 382.05194, 382.05195, or
20-15 382.05196.
20-16 Sec. 386.105. CALCULATION OF COST-EFFECTIVENESS. (a) In
20-17 calculating cost-effectiveness, one-time grants of money at the
20-18 beginning of a project shall be annualized using a time value of
20-19 public funds or discount rate determined for each project by the
20-20 commission, taking into account the interest rate on bonds,
20-21 interest earned by state funds, and other factors the commission
20-22 considers appropriate.
20-23 (b) The commission shall establish reasonable methodologies,
20-24 in consultation with all affected stakeholders, for evaluating
20-25 project cost-effectiveness consistent with Subsection (a) and with
20-26 accepted methods.
21-1 (c) The commission shall develop protocols for calculating
21-2 oxides of nitrogen emissions reductions not otherwise required by
21-3 state or federal law in nonattainment areas and affected counties
21-4 of this state from representative project types over the life of
21-5 the projects.
21-6 (d) The commission may include in cost-effectiveness
21-7 determinations only reductions in oxides of nitrogen emissions that
21-8 are achieved in nonattainment areas and affected counties of this
21-9 state.
21-10 Sec. 386.106. COST-EFFECTIVENESS CRITERIA; DETERMINATION OF
21-11 GRANT AMOUNT. (a) Except as provided by Section 386.107, the
21-12 commission may not award a grant for a proposed project the
21-13 cost-effectiveness of which, calculated in accordance with Section
21-14 386.105 and rules adopted under that section, exceeds $13,000 per
21-15 ton of oxides of nitrogen emissions reduced in the nonattainment
21-16 area or affected county for which the project is proposed. This
21-17 subsection does not restrict commission authority under other law
21-18 to require emissions reductions with a cost-effectiveness that
21-19 exceeds $13,000 per ton.
21-20 (b) The commission may not award a grant that, net of taxes,
21-21 provides an amount that exceeds the incremental cost of the
21-22 proposed project.
21-23 (c) The commission shall adopt guidelines for capitalizing
21-24 incremental lease costs so those costs may be offset by a grant
21-25 under this subchapter.
21-26 (d) In determining the amount of a grant under this
22-1 subchapter, the commission shall reduce the incremental cost of a
22-2 proposed new purchase, lease, retrofit, repower, or add-on
22-3 equipment project by the value of any existing financial incentive
22-4 that directly reduces the cost of the proposed project, including
22-5 tax credits or deductions, other grants, or any other public
22-6 financial assistance.
22-7 (e) The commission may establish maximum grant awards per
22-8 vehicle or engine replaced for projects that propose to repower
22-9 off-road equipment.
22-10 Sec. 386.107. ADJUSTMENT TO MAXIMUM COST-EFFECTIVENESS
22-11 AMOUNT AND AWARD AMOUNT. After study of available emissions
22-12 reduction technologies and costs and after public notice and
22-13 comment, the commission, in consultation with the advisory board,
22-14 may change the values of the maximum grant award criteria
22-15 established in Section 386.106 and any per-project maximum set by
22-16 the commission under Section 386.106(e) to account for inflation or
22-17 to improve the ability of the program to achieve its goals.
22-18 Sec. 386.108. INFRASTRUCTURE DEMONSTRATION PROJECTS.
22-19 (a) The commission shall provide funding under Section
22-20 386.252(a)(1) for infrastructure demonstration projects to provide
22-21 initial support for low-emissions vehicle projects at the start of
22-22 the program.
22-23 (b) To implement the requirement of Subsection (a), the
22-24 commission shall:
22-25 (1) solicit applications for a balanced mix of
22-26 demonstration projects involving fueling and electrification
23-1 infrastructure that is linked to covered vehicle projects and
23-2 consistent with program goals;
23-3 (2) coordinate infrastructure projects with covered
23-4 vehicle projects representing a broad range of fuels, technologies,
23-5 and applications as appropriate and consistent with the goals of
23-6 this chapter;
23-7 (3) adopt guidelines and criteria for infrastructure
23-8 projects to be funded under the program; and
23-9 (4) oversee, monitor, and evaluate the use of grants
23-10 awarded under this program and report on the effectiveness of this
23-11 grant program in relation to the purposes and goals of this
23-12 chapter.
23-13 Sec. 386.109. ELIGIBLE INFRASTRUCTURE DEMONSTRATION
23-14 PROJECTS. The commission may consider for funding under Section
23-15 386.108:
23-16 (1) the purchase and installation at a site of
23-17 equipment that is designed primarily to dispense qualifying fuel or
23-18 the purchase of on-site mobile fueling equipment; and
23-19 (2) infrastructure projects, including auxiliary power
23-20 units, designed to dispense electricity to covered projects.
23-21 Sec. 386.110. APPLICATION PACKAGE FOR INFRASTRUCTURE
23-22 DEMONSTRATION PROJECTS. (a) The commission shall develop a
23-23 simple, standardized application package for infrastructure
23-24 demonstration project grants under this subchapter. The package
23-25 must include:
23-26 (1) an application form;
24-1 (2) a brief description of:
24-2 (A) the program;
24-3 (B) the projects that are eligible for available
24-4 funding;
24-5 (C) the selection criteria and evaluation
24-6 process; and
24-7 (D) the required documentation;
24-8 (3) the name of a person or office to contact for more
24-9 information;
24-10 (4) an example of the contract that an applicant will
24-11 be required to execute before receiving a grant; and
24-12 (5) any other information the commission considers
24-13 useful to inform the applicant and expedite the application
24-14 process.
24-15 (b) The application form shall require as much information
24-16 as the commission determines is necessary to properly evaluate each
24-17 project but shall otherwise minimize the information required.
24-18 (c) The commission may not require an applicant, as part of
24-19 the application process, to calculate tons of emissions reduced or
24-20 cost-effectiveness.
24-21 Sec. 386.111. APPLICATION REVIEW PROCEDURES. (a) The
24-22 commission shall review an application for a grant for a project
24-23 authorized under this subchapter, including an application for a
24-24 grant for an infrastructure demonstration project, immediately on
24-25 receipt of the application. If the commission determines that an
24-26 application is incomplete, the commission shall notify the
25-1 applicant, not later than the 15th working day after the date on
25-2 which the commission received the application, with an explanation
25-3 of what is missing from the application. The commission shall
25-4 record the date and time of receipt of each application the
25-5 commission determines to be complete and shall evaluate the
25-6 completed application according to the appropriate project
25-7 criteria. Subject to available funding, the commission shall make
25-8 a final determination on an application as soon as possible and not
25-9 later than the 60th working day after the date the application is
25-10 determined to be complete.
25-11 (b) The commission shall make every effort to expedite the
25-12 application review process and to award grants to qualified
25-13 projects in a timely manner. To the extent possible, the
25-14 commission shall coordinate project review and approval with any
25-15 timing constraints related to project purchases or installations to
25-16 be made by an applicant.
25-17 (c) The commission may deny an application for a project
25-18 that does not meet the applicable project criteria or that the
25-19 commission determines is not made in good faith, is not credible,
25-20 or is not in compliance with this chapter and the goals of this
25-21 chapter.
25-22 (d) Subject to availability of funds, the commission shall
25-23 award a grant under this subchapter in conjunction with the
25-24 execution of a contract that obligates the commission to make the
25-25 grant and the recipient to perform the actions described in the
25-26 recipient's grant application. The contract must incorporate
26-1 provisions for recapturing grant money in proportion to any loss of
26-2 emissions reductions or underachievement in dispensing qualifying
26-3 fuel compared with the volume of emissions reductions or amount of
26-4 fuel dispensed that was projected in awarding the grant. Grant
26-5 money recaptured under the contract provision shall be deposited in
26-6 the fund and reallocated for other projects under this subchapter.
26-7 (e) An applicant may seek reimbursement for qualifying
26-8 equipment installed after the effective date of this program.
26-9 Sec. 386.112. HEAVY-DUTY MOTOR VEHICLE PURCHASE OR LEASE
26-10 INCENTIVE. (a) The commission shall develop a purchase or lease
26-11 incentive program for heavy-duty motor vehicles and shall adopt
26-12 rules necessary to implement the program and to reimburse a
26-13 purchaser or lessee of a heavy-duty motor vehicle that is eligible
26-14 for reimbursement of incremental costs under this subchapter.
26-15 (b) The program shall authorize statewide incentives for the
26-16 reimbursement of incremental costs for the purchase or lease,
26-17 according to the schedule provided by Section 386.113, of
26-18 heavy-duty motor vehicles that are certified by the United States
26-19 Environmental Protection Agency to an emissions standard provided
26-20 by Section 386.113 if the purchaser or lessee of the vehicle agrees
26-21 to register the vehicle in this state and to operate the vehicle in
26-22 this state for not less than 75 percent of the vehicle's annual
26-23 mileage.
26-24 (c) Only one incentive will be provided for each motor
26-25 vehicle. The incentive shall be provided to the lessee and not to
26-26 the purchaser if the motor vehicle is purchased for the purpose of
27-1 leasing the vehicle to another person. A lease incentive for a
27-2 motor vehicle shall be prorated based on an eight-year lease term.
27-3 Sec. 386.113. HEAVY-DUTY MOTOR VEHICLE PURCHASE OR LEASE
27-4 INCENTIVE SCHEDULE. A heavy-duty motor vehicle is eligible for
27-5 reimbursement of incremental costs according to the following
27-6 schedule:
27-7 Incentive emissions standard Reimbursement amount
27-8 (oxides of nitrogen)
27-9 Date of manufacture Date of manufacture
27-10 (2001) (10/01/02-9/30/06)
27-11 2.5 g/bhp-hr NOx 1.2 g/bhp-hr NOx up to $15,000
27-12 1.5 g/bhp-hr NOx 0.5 g/bhp-hr NOx up to $25,000
27-13 0.0 g/bhp-hr NOx 0.0 g/bhp-hr NOx up to $25,000
27-14 (Sections 386.114-386.150 reserved for expansion
27-15 SUBCHAPTER D. MOTOR VEHICLE PURCHASE OR LEASE INCENTIVE PROGRAM
27-16 Sec. 386.151. DEFINITIONS. In this subchapter:
27-17 (1) "Bin" or "emissions bin" means a set of emissions
27-18 standards applicable to exhaust pollutants measured on the Federal
27-19 Test Procedure (FTP) according to 40 C.F.R. Section 86.1811-04.
27-20 (2) "ILEV" means an inherently low-emission vehicle as
27-21 defined by 40 C.F.R. Section 88.302-93, as that section existed on
27-22 September 1, 2001.
27-23 (3) "Light-duty motor vehicle" means a motor vehicle
27-24 with a gross vehicle weight rating of less than 10,000 pounds.
27-25 Sec. 386.152. LIGHT-DUTY MOTOR VEHICLE PURCHASE OR LEASE
27-26 INCENTIVE. (a) The comptroller and the commission shall develop a
28-1 purchase or lease incentive program for light-duty motor vehicles
28-2 and shall adopt rules necessary to implement the program.
28-3 (b) The program shall authorize statewide incentives for the
28-4 purchase or lease, according to the schedule provided by Section
28-5 386.153, of light-duty motor vehicles that are certified by the
28-6 United States Environmental Protection Agency to an emissions
28-7 standard provided by Section 386.153 for a purchaser or lessee who
28-8 agrees to register the vehicle in this state and to operate the
28-9 vehicle in this state for not less than 75 percent of the vehicle's
28-10 annual mileage.
28-11 (c) Only one incentive will be provided for each motor
28-12 vehicle. The incentive shall be provided to the lessee and not to
28-13 the purchaser if the motor vehicle is purchased for the purpose of
28-14 leasing the vehicle to another person.
28-15 Sec. 386.153. LIGHT-DUTY MOTOR VEHICLE PURCHASE OR LEASE
28-16 INCENTIVE SCHEDULE. A light-duty motor vehicle is eligible for an
28-17 incentive according to the following schedule:
28-18 Incentive emissions standard and incentive amount
28-19 Model year 2002-2003 Model year 2004-2007
28-20 0.04 g/mi NOx $1,250
28-21 0.03 g/mi NOx $2,225 Bin 4 $1,250
28-22 ILEV $4,000 Bin 3 $2,225
28-23 0.02 g/mi NOx $3,750 Bin 2 $3,750
28-24 0.00 g/mi NOx $5,000 Bin 1 $5,000
28-25 Sec. 386.154. MODIFICATION OF INCENTIVE EMISSIONS STANDARDS.
28-26 After evaluating new technologies and after public notice and
29-1 comment, the commission, in consultation with the advisory board,
29-2 may change the incentive emissions standards established by Section
29-3 386.153 to improve the ability of the program to achieve its goals.
29-4 Sec. 386.155. MANUFACTURER'S REPORT. At the beginning of
29-5 but not later than July 1 of each year preceding the vehicle model
29-6 year, a manufacturer of motor vehicles shall provide to the
29-7 commission a list of:
29-8 (1) the new vehicle models that the manufacturer
29-9 intends to sell in this state during that model year that meet the
29-10 incentive emissions standards established by the schedules set out
29-11 under Section 386.153; and
29-12 (2) the amount of the incremental cost of the
29-13 vehicles.
29-14 Sec. 386.156. LIST OF ELIGIBLE MOTOR VEHICLES. (a) On
29-15 August 1 each year the commission shall publish and provide to the
29-16 comptroller a list of the new model motor vehicles as listed for
29-17 the commission under Section 386.155.
29-18 (b) The comptroller shall distribute the list of eligible
29-19 motor vehicles to all new motor vehicle dealers and leasing agents
29-20 in this state.
29-21 Sec. 386.157. VEHICLE EMISSIONS INFORMATION LABEL. (a) To
29-22 enable consumers to make informed purchase decisions based on the
29-23 relative amounts of emissions produced by motor vehicles within
29-24 each vehicle class, the motor vehicle manufacturer or distributor
29-25 shall affix on each new light-duty motor vehicle for sale or lease
29-26 in this state a clearly legible label that shows the vehicle's
30-1 class rating under the United States Environmental Protection
30-2 Agency's 5-star Green Vehicle Class Rating System.
30-3 (b) A new motor vehicle dealer or leasing agent shall make
30-4 available to the dealer's or leasing agent's prospective purchasers
30-5 or lessees a copy of the list prepared and published by the
30-6 commission under Section 386.156.
30-7 Sec. 386.158. LOW-EMISSIONS VEHICLE PURCHASE OR LEASE
30-8 INCENTIVE. (a) A person who purchases or leases during the model
30-9 year in which it is first offered for sale or lease a new motor
30-10 vehicle that has been listed under Section 386.155 is eligible for
30-11 an incentive under this subchapter.
30-12 (b) A lease incentive for a motor vehicle shall be prorated
30-13 based on a four-year lease term.
30-14 (c) To receive money under an incentive program provided by
30-15 this subchapter, the purchaser or lessee of a motor vehicle
30-16 eligible for an incentive under this subchapter shall apply for the
30-17 incentive in the manner provided by law or by rule of the
30-18 comptroller.
30-19 Sec. 386.159. PUBLIC INFORMATION. (a) The commission in
30-20 cooperation with the comptroller shall develop and implement a
30-21 program to inform the public and new motor vehicle dealers and
30-22 leasing agents about the motor vehicle purchase or lease incentive
30-23 program.
30-24 (b) The Texas Department of Transportation shall insert a
30-25 notice describing the motor vehicle purchase or lease incentive
30-26 program with each annual vehicle registration renewal notice.
31-1 Sec. 386.160. COMPTROLLER TO ACCOUNT FOR MOTOR VEHICLE
31-2 PURCHASE OR LEASE INCENTIVES. (a) The comptroller by rule shall
31-3 develop a method to administer and account for the motor vehicle
31-4 purchase or lease incentives authorized by this subchapter and to
31-5 pay incentive money to the purchaser or lessee of a new motor
31-6 vehicle, on application of the purchaser or lessee as provided by
31-7 this subchapter.
31-8 (b) The comptroller shall develop and publish forms and
31-9 instructions for the purchaser or lessee of a new motor vehicle to
31-10 use in applying to the comptroller for an incentive payment under
31-11 this subchapter. The comptroller shall make the forms available to
31-12 new motor vehicle dealers and leasing agents. Dealers and leasing
31-13 agents shall make the forms available to their prospective
31-14 purchasers or lessees.
31-15 (c) In addition to other forms developed and published under
31-16 this section, the comptroller shall develop and publish a
31-17 verification form by which, with information provided by the dealer
31-18 or leasing agent, the comptroller can verify the sale of a vehicle
31-19 covered by this subchapter. The verification form shall include at
31-20 least the name of the purchaser, the vehicle identification number
31-21 of the vehicle involved, the date of the purchase, and the name of
31-22 the new motor dealer or leasing agent involved in the transaction.
31-23 At the time of sale or lease of a vehicle eligible for an incentive
31-24 under this subchapter, the dealer or leasing agent shall complete
31-25 the verification form supplied to the dealer by the comptroller.
31-26 The purchaser or lessee shall include the completed verification
32-1 form as part of the purchaser's application for an incentive. The
32-2 dealer shall maintain a copy of the completed verification form for
32-3 at least two years from the date of the transaction.
32-4 Sec. 386.161. REPORT TO COMMISSION; SUSPENSION OF PURCHASE
32-5 OR LEASE INCENTIVES. (a) The comptroller shall report to the
32-6 commission annually regarding motor vehicle purchase or lease
32-7 incentives.
32-8 (b) The comptroller shall inform the commission and all new
32-9 motor vehicle dealers and leasing agents if at any time during a
32-10 fiscal year the balance available in the money allocated in the
32-11 fund for motor vehicle purchase or lease incentives falls below 15
32-12 percent of the total amount allocated for the incentives during
32-13 that fiscal year.
32-14 (c) If the balance available for motor vehicle purchase or
32-15 lease incentives falls below the amount described in Subsection
32-16 (b), the comptroller by order shall suspend the incentives until
32-17 the comptroller can certify that the balance available in the fund
32-18 for incentives is an amount adequate to resume the incentives, but
32-19 not later than the beginning of the next fiscal year. If the
32-20 comptroller suspends the incentives, the comptroller shall
32-21 immediately notify the commission and all new motor vehicle dealers
32-22 and leasing agents that the incentives have been suspended.
32-23 (d) Reliance by a dealer or leasing agent on information
32-24 provided by the comptroller or commission is a complete defense to
32-25 an action involving or based on eligibility of a vehicle for an
32-26 incentive or availability of vehicles eligible for an incentive.
33-1 (Sections 386.162-386.200 reserved for expansion
33-2 SUBCHAPTER E. LOCAL GOVERNMENT GRANT PROGRAM
33-3 Sec. 386.201. GRANT PROGRAM. (a) The commission shall
33-4 develop a competitive grant program to encourage:
33-5 (1) retirement and replacement of inefficient
33-6 residential cooling equipment and other household appliances;
33-7 (2) weatherization of residences; and
33-8 (3) retirement and replacement of high-emitting
33-9 noncommercial lawn and garden equipment.
33-10 (b) The grant program developed under this section may be
33-11 administered by municipalities or counties.
33-12 Sec. 386.202. COST-EFFECTIVENESS REQUIREMENT. The amount of
33-13 an award of a competitive grant under this subchapter must be based
33-14 on the cost-effectiveness of reductions in emissions of oxides of
33-15 nitrogen to be provided by the proposed project.
33-16 Sec. 386.203. GRANT PROJECTS. (a) Grant projects under
33-17 this subchapter may include targeted rebates and revolving loan
33-18 programs for the purposes listed in Section 386.201(a).
33-19 (b) Each award must include a low-income component that
33-20 provides for weatherization of residences and retirement and
33-21 replacement of inefficient cooling equipment and other household
33-22 appliances for low-income households.
33-23 Sec. 386.204. USE OF GRANT MONEY. (a) Grant money may be
33-24 used in conjunction with other energy efficiency programs but may
33-25 not be used to replace other funds from other agencies.
33-26 (b) For the first two years of the program, grants may be
34-1 awarded only in counties in nonattainment areas. In years three
34-2 and four of the program, grants may also be awarded in affected
34-3 counties. In subsequent years, grants may be awarded in all
34-4 counties of the state.
34-5 Sec. 386.205. DISPOSAL OF RETIRED EQUIPMENT. A grant
34-6 recipient must assure that any appliance, residential cooling
34-7 equipment, or lawn or garden equipment retired and replaced under
34-8 this subchapter is recycled or disposed of in accordance with all
34-9 applicable local, state, or federal requirements.
34-10 (Sections 386.206-386.250 reserved for expansion
34-11 SUBCHAPTER F. TEXAS EMISSIONS REDUCTION PLAN FUND
34-12 Sec. 386.251. FUND. (a) The Texas emissions reduction plan
34-13 fund is an account in the state treasury.
34-14 (b) The fund is administered by the comptroller for the
34-15 benefit of the Texas emissions reduction plan established under
34-16 this chapter.
34-17 (c) The fund consists of money from:
34-18 (1) fees and other amounts charged and collected under
34-19 Sections 502.1675 and 548.5055, Transportation Code;
34-20 (2) the surcharge on the sale, lease, or rental of new
34-21 or used construction equipment under Section 151.0515, Tax Code;
34-22 (3) surcharges collected under Sections 152.0215 and
34-23 156.054, Tax Code;
34-24 (4) the surcharge collected under Section 31.0265,
34-25 Parks and Wildlife Code;
34-26 (5) the surcharge collected under Article 9035,
35-1 Revised Statutes; and
35-2 (6) payments made by an owner or operator under
35-3 Section 386.056.
35-4 Sec. 386.252. USE OF FUND. (a) Money in the fund may be
35-5 used only to implement and administer programs established under
35-6 the plan and shall be allocated as follows:
35-7 (1) for the diesel emissions reduction incentive
35-8 program, 66 percent of the money in the fund, of which not more
35-9 than three percent may be used for infrastructure demonstration
35-10 projects and not more than 15 percent may be used for heavy-duty
35-11 motor vehicle purchase or lease incentives;
35-12 (2) for the motor vehicle purchase or lease incentive
35-13 program, 15 percent of the money in the fund;
35-14 (3) for the local government grant program, 7.5
35-15 percent of the money in the fund;
35-16 (4) for the new technology research and development
35-17 program, 7.5 percent of the money in the fund, of which $250,000 is
35-18 allocated for administration, $200,000 is allocated for a health
35-19 effects study, and $200,000 is to be deposited in the state
35-20 treasury to the credit of the clean air account created under
35-21 Section 382.0622 to supplement funding for air quality planning
35-22 activities in affected counties; and
35-23 (5) for administrative costs incurred by the
35-24 commission, the comptroller, and the laboratory, four percent.
35-25 (b) Up to 15 percent of the money allocated under Subsection
35-26 (a) to a particular program and not expended under that program by
36-1 March 1 of the second fiscal year of a fiscal biennium may be used
36-2 for another program under the plan as determined by the commission
36-3 in consultation with the advisory board.
36-4 CHAPTER 387. NEW TECHNOLOGY RESEARCH
36-5 AND DEVELOPMENT PROGRAM
36-6 Sec. 387.001. DEFINITION. In this chapter, "program" means
36-7 the new technology research and development program.
36-8 Sec. 387.002. TEXAS COUNCIL ON ENVIRONMENTAL TECHNOLOGY.
36-9 (a) The Texas Council on Environmental Technology consists of 11
36-10 members appointed by the governor to represent the academic and
36-11 nonprofit communities. The governor shall designate from the
36-12 council members a presiding officer of the council. Members of the
36-13 council serve six-year staggered terms, with the terms of three or
36-14 four members expiring February 1 of each odd-numbered year.
36-15 (b) The Texas Council on Environmental Technology shall work
36-16 to enhance the entrepreneurial and inventive spirit of Texans to
36-17 assist in developing solutions to problems by:
36-18 (1) identifying and evaluating new technologies and
36-19 seeking the approval of the United States Environmental Protection
36-20 Agency for and facilitating the deployment of those technologies;
36-21 and
36-22 (2) assisting the commission and the United States
36-23 Environmental Protection Agency in the process of ensuring
36-24 credit for new, innovative, and creative technological
36-25 advancements.
36-26 (c) Council offices and projects shall be housed at the
37-1 Center for Energy and Environmental Resources at The University of
37-2 Texas at Austin.
37-3 Sec. 387.003. NEW TECHNOLOGY RESEARCH AND DEVELOPMENT
37-4 PROGRAM. (a) The Texas Council on Environmental Technology shall
37-5 establish and administer a new technology research and development
37-6 program as provided by this chapter.
37-7 (b) Under the program, the Texas Council on Environmental
37-8 Technology shall provide grants to be used to support development
37-9 of emissions-reducing technologies that may be used for projects
37-10 eligible for awards under Chapter 386 and other new technologies
37-11 that show promise for commercialization. The primary objective of
37-12 this chapter is to promote the development of commercialization
37-13 technologies that will support projects that may be funded under
37-14 Chapter 386 and this chapter.
37-15 Sec. 387.004. SOLICITATION OF NEW TECHNOLOGY PROPOSALS. The
37-16 Texas Council on Environmental Technology from time to time shall
37-17 issue specific requests for proposals (RFPs) or program opportunity
37-18 notices (PONs) for technology projects to be funded under the new
37-19 technology research and development program.
37-20 Sec. 387.005. ELIGIBLE PROJECTS; PRIORITIES. (a) Grants
37-21 awarded under this chapter shall be directed toward a balanced mix
37-22 of:
37-23 (1) retrofit and add-on technologies to reduce
37-24 emissions from the existing stock of vehicles targeted by the Texas
37-25 emissions reduction plan;
37-26 (2) advanced technologies for new engines and vehicles
38-1 that produce very-low or zero emissions of oxides of nitrogen,
38-2 including stationary and mobile fuel cells;
38-3 (3) studies to improve air quality assessment and
38-4 modeling;
38-5 (4) advanced technologies that promote increased
38-6 building and appliance energy performance; and
38-7 (5) advanced technologies that reduce emissions from
38-8 other significant sources.
38-9 (b) The Texas Council on Environmental Technology shall
38-10 identify and evaluate and may consider making grants for technology
38-11 projects that would allow qualifying fuels to be produced from
38-12 energy resources in this state. In considering projects under this
38-13 subsection, the council shall give preference to projects involving
38-14 otherwise unusable energy resources in this state and producing
38-15 qualifying fuels at prices lower than otherwise available and low
38-16 enough to make the projects to be funded under the program
38-17 economically attractive to local businesses in the area for which
38-18 the project is proposed.
38-19 (c) In soliciting proposals under Section 387.004 and
38-20 determining how to allocate grant money available for projects
38-21 under this chapter, the Texas Council on Environmental Technology
38-22 shall give special consideration to advanced technologies and
38-23 retrofit or add-on projects that provide multiple benefits by
38-24 reducing emissions of particulates and other air pollutants.
38-25 (d) A project that involves a technology that allows an
38-26 on-road covered vehicle to replace with electric power, while the
39-1 vehicle is parked, the power normally supplied by the vehicle's
39-2 internal combustion engine is eligible for funding under this
39-3 chapter if the project meets all applicable criteria.
39-4 (e) A project that involves publicly or privately owned
39-5 vehicles or vessels is eligible for funding under this chapter if
39-6 the project meets all applicable criteria.
39-7 (f) Studies authorized under Subsection (a)(3) shall be
39-8 consistent with air quality research priorities identified by the
39-9 commission.
39-10 Sec. 387.006. EVIDENCE OF COMMERCIALIZATION POTENTIAL
39-11 REQUIRED. (a) An application for a technology grant under this
39-12 chapter must show clear and compelling evidence that:
39-13 (1) the proposed technology project has a strong
39-14 commercialization plan and organization; and
39-15 (2) the technology proposed for funding:
39-16 (A) is likely to be offered for commercial sale
39-17 in this state within five years after the date of the application
39-18 for funding; and
39-19 (B) once commercialized, will offer
39-20 opportunities for projects eligible for funding under Chapter 386.
39-21 (b) The Texas Council on Environmental Technology shall
39-22 consider specifically, for each proposed technology project
39-23 application:
39-24 (1) the projected potential for reduced emissions of
39-25 oxides of nitrogen and the cost-effectiveness of the technology
39-26 once it has been commercialized;
40-1 (2) the potential for the technology to contribute
40-2 significantly to air quality goals; and
40-3 (3) the strength of the commercialization plan.
40-4 Sec. 387.007. COST-SHARING. The Texas Council on
40-5 Environmental Technology may require cost-sharing for technology
40-6 projects funded under this chapter but may not require repayment of
40-7 grant money.
40-8 Sec. 387.008. ENVIRONMENTAL RESEARCH FUND. (a) The
40-9 environmental research fund is an account in the general revenue
40-10 fund. The fund consists of money from gifts, grants, or donations
40-11 to the fund for designated or general use and from any other source
40-12 designated by the legislature.
40-13 (b) Money in the environmental research fund may be used
40-14 only for the operation and projects of the Texas Council on
40-15 Environmental Technology.
40-16 Sec. 387.009. ADVISORY COMMITTEES. The Texas Council on
40-17 Environmental Technology may appoint advisory committees as
40-18 necessary or desirable to assist the council in performing its
40-19 duties. An advisory committee may include representatives of
40-20 industry, environmental groups, consumer groups, local governments,
40-21 agriculture, the commission, the General Land Office, and the
40-22 Railroad Commission of Texas. Any senator or representative
40-23 desiring to do so may participate on any advisory committee
40-24 appointed under this section.
40-25 Sec. 387.010. REPORTS. Not later than December 1, 2002, and
40-26 not later than December 1 of each subsequent second year, the Texas
41-1 Council on Environmental Technology shall report to the legislature
41-2 on projects funded under the new technology research and
41-3 development program, describing the technical objectives and
41-4 accomplishments of the project and the progress of the project
41-5 technology toward commercialization.
41-6 CHAPTER 388. TEXAS BUILDING ENERGY PERFORMANCE STANDARDS
41-7 Sec. 388.001. LEGISLATIVE FINDINGS. (a) The legislature
41-8 finds that an effective building energy code is essential to:
41-9 (1) reducing the air pollutant emissions that are
41-10 affecting the health of residents of this state;
41-11 (2) moderating future peak electric power demand;
41-12 (3) assuring the reliability of the electrical grid;
41-13 and
41-14 (4) controlling energy costs for residents and
41-15 businesses in this state.
41-16 (b) The legislature further finds that this state has a
41-17 number of unique climate types, all of which require more energy
41-18 for cooling than for heating, and that there are many
41-19 cost-effective measures that can reduce peak energy use and reduce
41-20 cooling and other energy costs in buildings.
41-21 (c) The legislature further finds that the health and
41-22 air-quality concerns within nonattainment areas and affected
41-23 counties constitute an emergency and may warrant local measures
41-24 that establish higher standards for building energy efficiency.
41-25 Sec. 388.002. DEFINITIONS. In this chapter:
41-26 (1) "Accredited energy efficiency program" means a
42-1 voluntary set of standards and procedures administered by a
42-2 third-party organization and determined by the laboratory to be
42-3 capable of ensuring that a building meets or exceeds by a relative
42-4 measure the minimum standards for energy-efficient construction
42-5 established in this chapter.
42-6 (2) "Advisory committee" means the Texas building
42-7 energy performance standards advisory committee.
42-8 (3) "Affected county" has the meaning assigned by
42-9 Section 386.001.
42-10 (4) "Building" has the meaning assigned by the
42-11 International Building Code.
42-12 (5) "Code official" means an individual employed by a
42-13 local jurisdiction to review construction plans and other
42-14 documents, inspect construction, or administer and enforce building
42-15 standards under this chapter.
42-16 (6) "Code-certified inspector" means an inspector who
42-17 is certified by the laboratory, the International Code Council, the
42-18 Building Officials and Code Administrators International, Inc., the
42-19 International Conference of Building Officials, or the Southern
42-20 Building Code Congress International to have met minimum standards
42-21 for interpretation and enforcement of requirements of the
42-22 International Energy Conservation Code and the energy efficiency
42-23 chapter of the International Residential Code.
42-24 (7) "Commission" means the Texas Natural Resource
42-25 Conservation Commission.
42-26 (8) "International Building Code" means the
43-1 International Building Code as adopted by the International Code
43-2 Council.
43-3 (9) "International Residential Code" means the
43-4 International Residential Code for One-and Two-Family Dwellings as
43-5 adopted by the International Code Council.
43-6 (10) "International Energy Conservation Code" means
43-7 the International Energy Conservation Code as adopted by the
43-8 International Code Council.
43-9 (11) "Laboratory" means the Energy Systems Laboratory
43-10 at the Texas Engineering Experiment Station of The Texas A&M
43-11 University.
43-12 (12) "Local jurisdiction" means the authority
43-13 responsible for implementation and enforcement of local building
43-14 codes.
43-15 (13) "Municipality" has the meaning assigned by
43-16 Section 1.005, Local Government Code.
43-17 (14) "Single-family residential" means having the
43-18 character of a detached one-or-two-family dwelling or a multiple
43-19 single-family dwelling not more than three stories high with
43-20 separate means of egress, including the accessory structures of the
43-21 dwelling.
43-22 (15) "Structure" has the meaning assigned by the
43-23 International Building Code.
43-24 Sec. 388.003. ADOPTION OF BUILDING ENERGY EFFICIENCY
43-25 PERFORMANCE STANDARDS. (a) To achieve energy conservation in
43-26 single-family residential construction, the energy efficiency
44-1 chapter of the International Residential Code, as it existed on May
44-2 1, 2001, is adopted as the energy code in this state for
44-3 single-family residential construction.
44-4 (b) To achieve energy conservation in all other residential,
44-5 commercial, and industrial construction, the International Energy
44-6 Conservation Code as it existed on May 1, 2001, is adopted as the
44-7 energy code for use in this state.
44-8 (c) A municipality may establish procedures:
44-9 (1) to adopt local amendments to the International
44-10 Energy Conservation Code and the energy efficiency chapter of the
44-11 International Residential Code;
44-12 (2) for the administration and enforcement of the
44-13 codes; and
44-14 (3) to ensure that code-certified inspectors shall
44-15 perform inspections and enforce the code in the inspectors'
44-16 jurisdictions.
44-17 (d) Local amendments may not result in less stringent energy
44-18 efficiency requirements than the energy efficiency chapter of the
44-19 International Residential Code or International Energy Conservation
44-20 Code. The laboratory shall determine, at the request of a
44-21 municipality, the relative impact of proposed local amendments to
44-22 an energy code, including whether proposed amendments are
44-23 substantially equal to or less stringent than the unamended code.
44-24 The laboratory shall:
44-25 (1) report its findings to the municipality, including
44-26 an estimate of any savings potential above the base code from local
45-1 amendments; and
45-2 (2) submit a summary of its findings biennially to the
45-3 commission.
45-4 (e) A municipality shall periodically review and consider
45-5 revisions made by the International Code Council to the
45-6 International Energy Conservation Code and the energy efficiency
45-7 chapter of the International Residential Code adopted after May 1,
45-8 2001.
45-9 (f) The laboratory shall have the authority to set and
45-10 collect fees to perform certain tasks in support of the
45-11 requirements in Sections 388.005, 388.009, and 388.010.
45-12 Sec. 388.004. ENFORCEMENT OF ENERGY STANDARDS OUTSIDE OF
45-13 MUNICIPALITY. For construction outside of the local jurisdiction
45-14 of a municipality:
45-15 (1) a building certified by a national, state, or
45-16 local accredited energy efficiency program shall be considered in
45-17 compliance;
45-18 (2) a building with inspections from private
45-19 code-certified inspectors using the energy efficiency chapter of
45-20 the International Residential Code or International Energy
45-21 Conservation Code shall be considered in compliance;
45-22 (3) a builder who does not have access to either of
45-23 the above methods for a building shall certify compliance using a
45-24 form provided by the laboratory, enumerating the code-compliance
45-25 features of the building;
45-26 (4) a new electric meter may not be installed by the
46-1 utility provider without a certificate of compliance issued by a
46-2 private code-certified inspector or through an accredited energy
46-3 efficiency program unless the utility has made its own
46-4 determination of energy code compliance; and
46-5 (5) the laboratory shall establish training and a
46-6 checklist for utility providers to use in determining energy code
46-7 compliance where no certificate of compliance is available.
46-8 Sec. 388.005. ADDITIONAL ENERGY CONSERVATION PROGRAMS IN
46-9 NONATTAINMENT AREA AND AFFECTED COUNTY. (a) Each municipality in
46-10 a nonattainment area and an affected county and the nonattainment
46-11 area and the affected counties shall develop an energy efficiency
46-12 and weatherization program for existing buildings that would result
46-13 in energy savings equal to or greater than 10 percent of the
46-14 projected energy savings that would result from the adoption of
46-15 energy codes for new construction. By September 1, 2001, the
46-16 laboratory shall develop the energy savings estimates and set
46-17 targets for each municipality and affected county. Each
46-18 municipality and affected county shall develop and implement an
46-19 energy savings and weatherization program to meet the targets
46-20 required by this subsection. The municipality and affected
46-21 counties may use projected savings approved by the Public Utility
46-22 Commission of Texas for certain energy efficiency measures to
46-23 estimate the impact of those measures in local programs. In
46-24 calculating the effect of a program required by this subsection
46-25 toward the additional savings established in this section, a
46-26 municipality or affected county may count measures funded by the
47-1 grant program under Subchapter E, Chapter 386, but may not count
47-2 energy efficient measures funded by other state or federal agencies
47-3 required by Section 39.905, Utilities Code.
47-4 (b) A municipality or county may adopt noncode energy
47-5 performance standards for the sale and installation of replacement
47-6 residential, commercial, and industrial lighting, ballasts, exit
47-7 signs, motors, transformers, roof products, windows, dehumidifiers,
47-8 air conditioning package and split systems, heat pump systems,
47-9 boilers, and thermostats.
47-10 (c) The laboratory shall, on request of a municipality,
47-11 county, or regional government representation, determine the
47-12 additional energy savings potential from noncode energy performance
47-13 programs being considered and advise the requesting entity of its
47-14 determination within 60 days.
47-15 (d) The laboratory may review the specifications adopted by
47-16 the United States Environmental Protection Agency's Energy Star
47-17 program or comparable nationally developed specifications, in
47-18 consultation with the advisory committee, to determine whether
47-19 modifications should be incorporated into the noncode energy
47-20 performance standards available to jurisdictions under this section
47-21 and may modify the Energy Star or comparable nationally developed
47-22 specifications as needed to assure:
47-23 (1) the greatest energy savings to consumers and
47-24 businesses in the state; and
47-25 (2) the effectiveness of the noncode building energy
47-26 performance standards adopted under this section in the various
48-1 regions of the state.
48-2 (e) A municipality or affected county shall submit an annual
48-3 report to the laboratory on the municipality's or county's progress
48-4 under this section. The laboratory shall submit reports received
48-5 under this subsection to the commission for inclusion in the report
48-6 required by Section 386.057.
48-7 Sec. 388.006. GREEN BUILDING PERFORMANCE STANDARDS. As part
48-8 of the green building performance standards developed under this
48-9 chapter, the laboratory shall develop a series of green building
48-10 guidelines that:
48-11 (1) conserve energy and water;
48-12 (2) reduce waste and the use of toxic substances; and
48-13 (3) improve indoor air quality.
48-14 Sec. 388.007. TEXAS BUILDING ENERGY PERFORMANCE STANDARDS
48-15 ADVISORY COMMITTEE. The Texas building energy performance
48-16 standards advisory committee is comprised of the following:
48-17 (1) a registered professional engineer;
48-18 (2) a licensed professional architect;
48-19 (3) an individual representing building owners or
48-20 building managers;
48-21 (4) an individual representing the Texas Department of
48-22 Housing and Community Affairs;
48-23 (5) an individual representing consumers;
48-24 (6) an individual representing environmental issues;
48-25 (7) an individual representing building academia;
48-26 (8) an individual representing business;
49-1 (9) an individual representing the Texas Association
49-2 of Business and Chambers of Commerce;
49-3 (10) an individual representing local building
49-4 officials;
49-5 (11) an individual representing electric utilities;
49-6 (12) an individual representing gas utilities;
49-7 (13) an individual representing HVAC contractors;
49-8 (14) an individual representing window manufacturers;
49-9 (15) an individual representing the commission
49-10 appointed by the commission;
49-11 (16) an individual representing the Public Utilities
49-12 Commission of Texas appointed by that agency;
49-13 (17) an individual representing insulation
49-14 manufacturers;
49-15 (18) an individual representing the Texas Building
49-16 Energy Institute;
49-17 (19) an individual representing the State Energy
49-18 Conservation Office;
49-19 (20) an individual representing the Texas Association
49-20 of Builders;
49-21 (21) an individual representing the Finance Commission
49-22 of Texas; and
49-23 (22) an individual representing the Texas Real Estate
49-24 Commission.
49-25 Sec. 388.008. APPLICATION OF STANDARDS. Except as otherwise
49-26 provided by this chapter, the International Energy Conservation
50-1 Code and the energy efficiency chapter of the International
50-2 Residential Code apply to any building or structure in this state
50-3 for which a building permit application is received by a local
50-4 jurisdiction on or after September 1, 2002.
50-5 Sec. 388.009. DISTRIBUTION OF INFORMATION AND TECHNICAL
50-6 ASSISTANCE. (a) The laboratory shall make available to builders,
50-7 designers, engineers, and architects code implementation materials
50-8 that explain the requirements of the International Energy
50-9 Conservation Code and the energy efficiency chapter of the
50-10 International Residential Code and that describe methods of
50-11 compliance acceptable to code administrators.
50-12 (b) The materials shall include software tools, simplified
50-13 prescriptive options, and other materials as appropriate. The
50-14 simplified materials shall be designed for projects in which a
50-15 design professional is not involved.
50-16 (c) The laboratory shall provide local jurisdictions with
50-17 technical assistance concerning implementation and enforcement of
50-18 the International Energy Conservation Code and the energy
50-19 efficiency chapter of the International Residential Code.
50-20 Sec. 388.010. DEVELOPMENT OF ACCREDITATION PROGRAM FOR HOME
50-21 ENERGY RATING SERVICES. (a) The laboratory, in consultation with
50-22 the advisory committee, mortgage companies, and contractors that
50-23 provide home energy rating services, shall develop an accreditation
50-24 program for energy rating services.
50-25 (b) In establishing standards for the accreditation program,
50-26 the laboratory shall consider available national home energy rating
51-1 system guidelines and shall base the ratings on the International
51-2 Energy Conservation Code and the energy efficiency chapter of the
51-3 International Residential Code.
51-4 (c) The laboratory shall develop procedures for determining
51-5 whether a provider of home energy rating services meets
51-6 accreditation standards developed under this section.
51-7 (d) The laboratory shall develop a standardized report
51-8 format to be used by providers of home energy rating services. The
51-9 form shall be designed to give potential buyers or renters
51-10 information on a structure's energy performance, including:
51-11 (1) insulation;
51-12 (2) types of windows;
51-13 (3) heating and cooling equipment;
51-14 (4) water heating equipment;
51-15 (5) additional energy conserving features, if any;
51-16 (6) results of performance measurements of building
51-17 tightness and forced air distribution; and
51-18 (7) an overall rating of probable energy efficiency
51-19 relative to the minimum requirements of the International Energy
51-20 Conservation Code or the energy efficiency chapter of the
51-21 International Residential Code, as appropriate.
51-22 (e) The laboratory shall establish a public information
51-23 program to inform homeowners, renters, sellers, buyers, and others
51-24 regarding the accreditation requirements for home energy rating
51-25 services.
51-26 (f) The laboratory shall submit its home energy rating
52-1 accreditation program to the advisory committee by September 1,
52-2 2002.
52-3 (g) The home energy rating accreditation program shall be
52-4 implemented by September 1, 2003.
52-5 SECTION 2. Subchapter C, Chapter 151, Tax Code, is amended
52-6 by adding Section 151.0515 to read as follows:
52-7 Sec. 151.0515. TEXAS EMISSIONS REDUCTION PLAN SURCHARGE.
52-8 (a) In this section, "equipment" includes all off-road, heavy-duty
52-9 diesel equipment classified as construction equipment, including:
52-10 (1) pavers;
52-11 (2) tampers/rammers;
52-12 (3) plate compactors;
52-13 (4) concrete pavers;
52-14 (5) rollers;
52-15 (6) scrapers;
52-16 (7) paving equipment;
52-17 (8) surface equipment;
52-18 (9) signal boards/light plants;
52-19 (10) trenchers;
52-20 (11) bore/drill rigs;
52-21 (12) excavators;
52-22 (13) concrete/industrial saws;
52-23 (14) cement and mortar mixers;
52-24 (15) cranes;
52-25 (16) graders;
52-26 (17) off-highway trucks;
53-1 (18) crushing/processing equipment;
53-2 (19) rough terrain forklifts;
53-3 (20) rubber tire loaders;
53-4 (21) rubber tire tractors/dozers;
53-5 (22) tractors/loaders/backhoes;
53-6 (23) crawler tractors/dozers;
53-7 (24) skid steer loaders;
53-8 (25) off-highway tractors; and
53-9 (26) dumpsters/tenders.
53-10 (b) In each county in this state, a surcharge is imposed on
53-11 the retail sale, lease, or rental of new or used equipment in an
53-12 amount equal to 0.25 percent of the sale price or the lease or
53-13 rental amount.
53-14 (c) The surcharge shall be collected at the same time and in
53-15 the same manner and shall be administered and enforced in the same
53-16 manner as the tax imposed under this subchapter. The comptroller
53-17 shall adopt any additional procedures needed for the collection,
53-18 administration, and enforcement of the surcharge authorized by this
53-19 section and shall deposit all remitted surcharges to the credit of
53-20 the Texas emissions reduction plan fund.
53-21 (d) This section expires September 30, 2008.
53-22 SECTION 3. Subchapter B, Chapter 152, Tax Code, is amended
53-23 by adding Section 152.0215 to read as follows:
53-24 Sec. 152.0215. TEXAS EMISSIONS REDUCTION PLAN SURCHARGE.
53-25 (a) A surcharge is imposed on every retail sale or lease of every
53-26 on-road diesel motor vehicle over 14,000 pounds sold or leased in
54-1 this state. The amount of the surcharge is one percent of the
54-2 total consideration.
54-3 (b) The surcharge shall be collected at the same time and in
54-4 the same manner and shall be administered and enforced in the same
54-5 manner as the tax imposed under this subchapter. The comptroller
54-6 by rule shall adopt any additional procedures needed for the
54-7 collection, administration, and enforcement of the surcharge
54-8 authorized by this section and shall deposit all remitted
54-9 surcharges to the credit of the Texas emissions reduction plan
54-10 fund.
54-11 (c) This section expires September 30, 2008.
54-12 SECTION 4. Section 153.203, Tax Code, is amended to read as
54-13 follows:
54-14 Sec. 153.203. EXCEPTIONS. (a) The tax imposed by this
54-15 subchapter does not apply to:
54-16 (1) diesel fuel delivered by a permitted supplier to a
54-17 common or contract carrier, oceangoing vessel (including ship,
54-18 tanker, or boat), or barge for export from this state, if the
54-19 diesel fuel is moved forthwith outside this state;
54-20 (2) diesel fuel sold by a permitted supplier to the
54-21 federal government for its exclusive use;
54-22 (3) diesel fuel sold or delivered by a permitted
54-23 supplier to another permitted supplier or to the bulk storage
54-24 facility of an agricultural bonded user, or dyed diesel fuel sold
54-25 or delivered by a permitted supplier to the bulk storage facility
54-26 of a dyed diesel fuel bonded user, to the bulk storage facility of
55-1 a diesel tax prepaid user, or to a purchaser who provides a signed
55-2 statement as provided by Section 153.205 of this code, but not
55-3 including a delivery of tax-free diesel fuel into the fuel supply
55-4 tanks of a motor vehicle, except for a motor vehicle owned by the
55-5 federal government;
55-6 (4) diesel fuel sold or delivered by a permitted
55-7 supplier into the storage facility of a permitted aviation fuel
55-8 dealer, from which diesel fuel will be sold or delivered solely
55-9 into the fuel supply tanks of aircraft or aircraft servicing
55-10 equipment;
55-11 (5) diesel fuel sold or delivered by a permitted
55-12 supplier into fuel supply tanks of railway engines, motorboats, or
55-13 refrigeration units or other stationary equipment powered by a
55-14 separate motor from a separate fuel supply tank;
55-15 (6) kerosene when delivered by a permitted supplier
55-16 into a storage facility at a retail business from which all
55-17 deliveries are exclusively for heating, cooking, lighting, or
55-18 similar nonhighway use;
55-19 (7) diesel fuel sold or delivered by one aviation fuel
55-20 dealer to another aviation fuel dealer who will deliver the diesel
55-21 fuel exclusively into the supply tanks of aircraft or aircraft
55-22 servicing equipment;
55-23 (8) diesel fuel sold by a permitted supplier to a
55-24 public school district in this state for its exclusive use;
55-25 (9) diesel fuel sold by a permitted supplier to a
55-26 commercial transportation company that provides public school
56-1 transportation services to a school district under Section 34.008,
56-2 Education Code, and used by the company exclusively to provide
56-3 those services; or
56-4 (10) diesel fuel sold by a permitted supplier to a
56-5 person, other than a political subdivision, who owns, controls,
56-6 operates, or manages a commercial motor vehicle as defined by
56-7 Section 548.001, Transportation Code, if the fuel:
56-8 (A) is delivered exclusively into the fuel
56-9 supply tank of the commercial motor vehicle; and
56-10 (B) is used exclusively to transport passengers
56-11 for compensation or hire between points in this state on a fixed
56-12 route or schedule.
56-13 (b) The tax imposed by this subchapter does not apply to the
56-14 volume of water that is blended together with taxable diesel fuel
56-15 when the finished product sold or used is clearly identified on the
56-16 retail pump, storage tank, and sales invoice as a combination of
56-17 diesel fuel and water. This subsection expires August 31, 2008.
56-18 SECTION 5. Subchapter B, Chapter 156, Tax Code, is amended
56-19 by adding Section 156.054 to read as follows:
56-20 Sec. 156.054. TEXAS EMISSIONS REDUCTION PLAN SURCHARGE.
56-21 (a) In this section, "nonattainment area" and "affected county"
56-22 have the meanings assigned by Section 386.001, Health and Safety
56-23 Code.
56-24 (b) A person owning, operating, managing, or controlling a
56-25 hotel located in a nonattainment area or an affected county shall
56-26 collect a surcharge imposed by this section.
57-1 (c) A $1 surcharge is imposed on a person for each day that
57-2 the person has the right to use or possess a room in a hotel that
57-3 is ordinarily used for sleeping.
57-4 (d) Sections 156.101, 156.102, and 156.103 do not apply to
57-5 the surcharge authorized by this section.
57-6 (e) The surcharge shall be collected at the same time and in
57-7 the same manner and shall be administered and enforced in the same
57-8 manner as the tax imposed under this subchapter. The comptroller
57-9 shall adopt any additional procedures needed for the collection,
57-10 administration, and enforcement of the surcharge authorized by this
57-11 section and shall deposit all remitted surcharges to the credit of
57-12 the Texas emissions reduction plan fund.
57-13 (f) This section expires September 30, 2008.
57-14 SECTION 6. Section 224.153, Transportation Code, is amended
57-15 by adding Subsection (c) to read as follows:
57-16 (c) A motor vehicle displaying the "clean vehicle" insignia
57-17 authorized by Section 502.186 is entitled to travel in a
57-18 preferential car pool or high occupancy vehicle lane designated
57-19 under this section regardless of the number of occupants in the
57-20 vehicle. This subsection expires August 31, 2008.
57-21 SECTION 7. Section 431.073, Transportation Code, is amended
57-22 by adding Subsection (d) to read as follows:
57-23 (d) A motor vehicle displaying the "clean vehicle" insignia
57-24 authorized by Section 502.186 is entitled to travel in a high
57-25 occupancy vehicle lane designated under this section regardless of
57-26 the number of occupants in the vehicle. This subsection expires
58-1 August 31, 2008.
58-2 SECTION 8. Subchapter D, Chapter 502, Transportation Code,
58-3 is amended by adding Section 502.1675 to read as follows:
58-4 Sec. 502.1675. TEXAS EMISSIONS REDUCTION PLAN SURCHARGE.
58-5 (a) In addition to the registration fees charged under Section
58-6 502.167, a surcharge is imposed on the registration of a
58-7 truck-tractor or commercial motor vehicle under that section in an
58-8 amount equal to 10 percent of the total fees due for the
58-9 registration of the truck-tractor or commercial motor vehicle under
58-10 that section.
58-11 (b) The county tax assessor-collector shall remit the
58-12 surcharge collected under this section to the comptroller at the
58-13 time and in the manner prescribed by the comptroller for deposit in
58-14 the Texas emissions reduction plan fund.
58-15 (c) This section expires August 31, 2008.
58-16 SECTION 9. Subchapter D, Chapter 502, Transportation Code,
58-17 is amended by adding Section 502.186 to read as follows:
58-18 Sec. 502.186. "CLEAN VEHICLE" INSIGNIA FOR CERTAIN MOTOR
58-19 VEHICLES. (a) At the time of registration or reregistration of
58-20 the motor vehicle, the department shall issue a specially designed
58-21 "clean vehicle" insignia for a motor vehicle that is eligible for a
58-22 motor vehicle purchase or lease incentive under Subchapter D,
58-23 Chapter 386, Health and Safety Code.
58-24 (b) The insignia issued under this section must include the
58-25 words: "CLEAN VEHICLE".
58-26 (c) The department shall issue a "clean vehicle" insignia
59-1 under this section without the payment of any additional fee to a
59-2 person who:
59-3 (1) applies to the department on a form provided by
59-4 the department; and
59-5 (2) submits proof that the motor vehicle being
59-6 registered is a vehicle described by Subsection (a).
59-7 (d) This section expires August 31, 2008.
59-8 SECTION 10. Subchapter H, Chapter 548, Transportation Code,
59-9 is amended by adding Section 548.5055 to read as follows:
59-10 Sec. 548.5055. TEXAS EMISSIONS REDUCTION PLAN FEE. (a) In
59-11 this section, "nonattainment area" and "affected county" have the
59-12 meanings assigned by Section 386.001, Health and Safety Code.
59-13 (b) In addition to other fees required by this subchapter,
59-14 to fund the Texas emissions reduction plan established under
59-15 Chapter 386, Health and Safety Code, the department shall collect,
59-16 for every motor vehicle required to be inspected under this
59-17 chapter, a fee of:
59-18 (1) $1, if the vehicle being inspected is not
59-19 registered in a nonattainment area or an affected county in this
59-20 state; or
59-21 (2) $5, if the vehicle being inspected is registered
59-22 in a nonattainment area or an affected county in this state.
59-23 (c) The department shall remit fees collected under this
59-24 section to the comptroller at the time and in the manner prescribed
59-25 by the comptroller for deposit in the Texas emissions reduction
59-26 plan fund.
60-1 (d) This section expires August 31, 2008.
60-2 SECTION 11. Section 681.009, Transportation Code, is amended
60-3 by adding Subsection (f) to read as follows:
60-4 (f) In a nonattainment area or an affected county in this
60-5 state, a political subdivision or a person who designates five or
60-6 more parking spaces or a parking area for the exclusive use of
60-7 vehicles transporting persons with disabilities shall designate the
60-8 same number of parking spaces or a parking area for the exclusive
60-9 use of motor vehicles displaying the "clean vehicle" insignia
60-10 authorized by Section 502.186. Parking spaces or a parking area
60-11 designated under this section must be as close to the building or
60-12 area for which the spaces are provided as the parking spaces or
60-13 parking area provided for vehicles transporting persons with
60-14 disabilities. In this subsection, "nonattainment area" and
60-15 "affected county" have the meanings assigned by Section 386.001,
60-16 Health and Safety Code. This subsection expires August 31, 2008.
60-17 SECTION 12. Subchapter B, Chapter 31, Parks and Wildlife
60-18 Code, is amended by adding Section 31.0265 to read as follows:
60-19 Sec. 31.0265. TEXAS EMISSIONS REDUCTION PLAN SURCHARGE.
60-20 (a) In this section, "nonattainment area" and "affected county"
60-21 have the meanings assigned by Section 386.001, Health and Safety
60-22 Code.
60-23 (b) Each application for an original or renewal certificate
60-24 of number for a motorboat that will be operated primarily in a
60-25 nonattainment area or an affected county in this state shall be
60-26 accompanied by a $3 Texas emissions reduction plan surcharge in
61-1 addition to any other fee required to be paid to the department.
61-2 (c) The department shall collect and remit the surcharge to
61-3 the comptroller at the time and in the manner prescribed by the
61-4 comptroller for deposit in the Texas emissions reduction plan fund.
61-5 (d) This section expires August 31, 2008.
61-6 SECTION 13. Chapter 20, Title 132, Revised Statutes, is
61-7 amended by adding Articles 9035 and 9036 to read as follows:
61-8 Art. 9035. TEXAS EMISSIONS REDUCTION PLAN SURCHARGE ON TAXI
61-9 FARES
61-10 Sec. 1. DEFINITIONS. In this article:
61-11 (1) "Fare" means the compensation paid by a passenger
61-12 in a taxi for transportation by the taxi.
61-13 (2) "Nonattainment area" and "affected county" have
61-14 the meanings assigned by Section 386.001, Health and Safety Code.
61-15 (3) "Subsidized fare for disabled passengers" means a
61-16 fare that is subsidized by any governmental entity for persons with
61-17 disabilities.
61-18 (4) "Taxi" means a fuel-powered passenger vehicle that
61-19 transports passengers for compensation. The term includes a
61-20 limousine, van, or other vehicle that transports passengers for
61-21 compensation.
61-22 (5) "Very-low-emissions vehicle" has the meaning
61-23 assigned by Section 386.101, Health and Safety Code.
61-24 Sec. 2. APPLICATION. This article applies only in a
61-25 nonattainment area or an affected county in this state.
61-26 Sec. 3. IMPOSITION AND COLLECTION OF SURCHARGE. (a) A
62-1 surcharge of $1 is imposed on each fare collected by a taxi driver
62-2 for transportation by a taxi to and from an airport in a
62-3 nonattainment area or affected county.
62-4 (b) The comptroller shall adopt any necessary rules for the
62-5 administration, payment, collection and enforcement of this
62-6 surcharge and shall deposit all surcharges remitted under this
62-7 section to the Texas emissions reduction plan fund.
62-8 Sec. 4. EXEMPTION FROM SURCHARGE. The surcharge imposed by
62-9 this article does not apply if the taxi providing the
62-10 transportation for which the fare is charged:
62-11 (1) is eligible for a motor vehicle purchase or lease
62-12 incentive under Subchapter D, Chapter 386, Health and Safety Code;
62-13 or
62-14 (2) is transporting a passenger who is eligible for a
62-15 subsidized fare for disabled passengers.
62-16 Sec. 5. INTEREST AND PENALTIES. A person is liable for
62-17 penalties and interest on surcharges that are not remitted when due
62-18 in the same manner and at the same rate as provided for delinquent
62-19 taxes by Sections 111.060 and 111.061, Tax Code.
62-20 Sec. 6. CRIMINAL PENALTY. (a) A person who violates this
62-21 article or a rule adopted by the comptroller under this article
62-22 commits an offense.
62-23 (b) An offense under this section is a Class C misdemeanor.
62-24 Sec. 7. EXPIRATION. This article expires August 31, 2008.
62-25 Art. 9036. TEXAS EMISSIONS REDUCTION PLAN SURCHARGE ON THE
62-26 SALE OF BUNKER FUEL
63-1 Sec. 1. DEFINITIONS. In this article:
63-2 (1) "Bunker fuel" means marine bunker fuel sold for
63-3 use in the operation of an ocean-going vessel, ship, tanker, or
63-4 boat.
63-5 (2) "Petroleum refining facility" means an
63-6 establishment primarily engaged in producing gasoline, kerosene,
63-7 distillate fuel oils, residual fuel oils, and lubricants through
63-8 fractionation, straight distillation of crude oil, redistillation
63-9 of unfinished petroleum derivatives, cracking, or other processes.
63-10 (3) "Importer" means a person who imports bunker fuel,
63-11 or causes bunker fuel to be imported, into this state for sale,
63-12 use, or consumption.
63-13 Sec. 2. IMPOSITION OF SURCHARGE. (a) A surcharge of 25
63-14 cents per gallon is imposed on the sale of bunker fuel by a
63-15 petroleum refining facility in this state.
63-16 (b) A person who imports bunker fuel into this state for
63-17 sale or use shall pay to the comptroller a surcharge of 25 cents
63-18 per gallon of bunker fuel imported into this state.
63-19 Sec. 3. EXEMPTIONS. The surcharge imposed by this section
63-20 does not apply to bunker fuel sold by a petroleum refining facility
63-21 or an importer:
63-22 (1) directly to the United States government;
63-23 (2) into the fuel supply tank of a vessel engaged
63-24 exclusively in foreign and interstate commerce; or
63-25 (3) for immediate export from this state.
63-26 Sec. 4. ADMINISTRATION, PAYMENT, COLLECTION, AND
64-1 ENFORCEMENT. Except as provided by this article, Chapters 101 and
64-2 111-113, Tax Code, apply to the administration, payment,
64-3 collection, and enforcement of the surcharge imposed by this
64-4 article in the same manner that those chapters apply to the
64-5 administration, payment, collection, and enforcement of taxes under
64-6 Title 2, Tax Code. The comptroller shall adopt any necessary rules
64-7 for the administration, payment, collection, and enforcement of the
64-8 surcharge and shall deposit all surcharges remitted under this
64-9 article to the Texas emissions reduction plan fund.
64-10 Sec. 5. EXPIRATION. This article expires August 31, 2008.
64-11 SECTION 14. (a) Not later than the 45th day after the
64-12 effective date of this Act, the Texas Natural Resource Conservation
64-13 Commission shall adopt all necessary rules, guidelines, or criteria
64-14 required to implement programs established under this Act.
64-15 (b) Not later than the 45th day after the effective date of
64-16 this Act, the comptroller of public accounts shall adopt all rules
64-17 necessary to enable the comptroller to carry out the comptroller's
64-18 duties under this Act.
64-19 (c) Pending final adoption of rules by the Texas Natural
64-20 Resource Conservation Commission and the comptroller of public
64-21 accounts to implement programs established by this Act, the
64-22 commission shall begin implementation of the programs using
64-23 guidelines developed by a similar program currently operating in
64-24 another state, modified as necessary for application in this state.
64-25 SECTION 15. (a) Except as provided by Subsection (b) of
64-26 this section, not later than August 1, 2001, if this Act takes
65-1 immediate effect, or the effective date of this Act, if this Act
65-2 does not take immediate effect, the Texas Natural Resource
65-3 Conservation Commission and the comptroller of public accounts
65-4 shall adopt rules necessary to implement the diesel emissions
65-5 reduction incentive and the motor vehicle purchase or lease
65-6 incentive programs established under Subchapters C and D, Chapter
65-7 386, Health and Safety Code, as added by this Act.
65-8 (b) Not later than September 1, 2001, the Texas Natural
65-9 Resource Conservation Commission, as required by Section 386.103,
65-10 Health and Safety Code, as added by this Act, shall adopt criteria
65-11 for setting priorities for projects eligible for grants under
65-12 Subchapter C, Chapter 386, Health and Safety Code, as added by this
65-13 Act.
65-14 (c) Not later than the 30th day after the effective date of
65-15 this Act, the Texas Natural Resource Conservation Commission shall
65-16 publish the first annual list of vehicles eligible for motor
65-17 vehicle purchase or lease incentives, as required by Section
65-18 386.156, Health and Safety Code, as added by this Act.
65-19 SECTION 16. The vehicle purchase or lease incentives
65-20 authorized by Sections 386.113 and 386.153, Health and Safety Code,
65-21 as added by this Act, apply only to the sale or lease of a vehicle
65-22 that occurs on or after January 1, 2002.
65-23 SECTION 17. Not later than the 45th day after the effective
65-24 date of this Act, the Texas Department of Transportation shall make
65-25 available to the county tax assessor-collector of each county in
65-26 the state the "clean vehicle" insignia authorized by Section
66-1 502.186, Transportation Code, as added by this Act. The county tax
66-2 assessor-collector of each county in the state shall begin issuing
66-3 the "clean vehicle" insignia to persons who qualify for the
66-4 insignia not later than the 10th working day after the date the
66-5 insignia are available.
66-6 SECTION 18. In making the initial appointments to the Texas
66-7 Emissions Reduction Plan Advisory Board as created by Section
66-8 386.058, Health and Safety Code, as added by this Act, the
66-9 appointing authorities shall designate their appointees so that six
66-10 members' terms expire February 1, 2002, and seven members' terms
66-11 expire February 1, 2003. Appointments to the advisory board shall
66-12 be made not later than July 1, 2001, if this Act takes immediate
66-13 effect, or the effective date of this Act, if this Act does not
66-14 take immediate effect.
66-15 SECTION 19. As soon as practicable after the effective date
66-16 of this Act, the governor shall appoint members to the Texas
66-17 Council on Environmental Technology, as created by Section 387.002,
66-18 Health and Safety Code, as added by this Act. In making the
66-19 initial appointments, the governor shall designate the appointees
66-20 so that three members' terms expire February 1, 2003, four members'
66-21 terms expire February 1, 2005, and four members' terms expire
66-22 February 1, 2007.
66-23 SECTION 20. Not later than the 30th day after the adoption
66-24 of rules governing the new technology research and development
66-25 program established under Chapter 387, Health and Safety Code, as
66-26 added by this Act, the Texas Council on Environmental Technology
67-1 shall issue requests for proposals for projects to be funded under
67-2 the new technology research and development program.
67-3 SECTION 21. On the effective date of this Act, the Texas
67-4 Natural Resource Conservation Commission shall submit to the United
67-5 States Environmental Protection Agency a revision to the state
67-6 implementation plan that deletes the requirements of the
67-7 construction shift and the early purchase of Tier 2 and Tier 3
67-8 equipment and adds the provisions of this Act.
67-9 SECTION 22. (a) Notwithstanding any Act of the 77th
67-10 Legislature, Regular Session, 2001, that purports to abolish all
67-11 funds and accounts created or re-created in the state treasury by
67-12 another Act of the 77th Legislature, Regular Session, 2001, the
67-13 Texas emissions reduction plan fund created by Subchapter F,
67-14 Chapter 386, Health and Safety Code, as added by this Act, and the
67-15 environmental research fund created by Section 387.008, Health and
67-16 Safety Code, as added by this Act, are accounts in the general
67-17 revenue fund and the accounts and money deposited to the accounts
67-18 are exempt from any Act of the 77th Legislature, Regular Session,
67-19 2001, that purports to abolish all funds and accounts created or
67-20 re-created by another Act of the 77th Legislature, Regular Session,
67-21 2001, and to require the deposit of money that would be deposited
67-22 to the credit of a special account or fund be deposited to the
67-23 credit of the unobligated portion of the general revenue fund
67-24 unless the fund, account, or dedication is exempted under that Act.
67-25 (b) This section prevails over any other Act of the 77th
67-26 Legislature, Regular Session, 2001, regardless of the relative
68-1 dates of enactment, that purports to abolish all funds and accounts
68-2 created or re-created in the state treasury by another Act of the
68-3 77th Legislature, Regular Session, 2001, and to require the deposit
68-4 of money that would be deposited to the credit of a special account
68-5 or fund be deposited to the credit of the unobligated portion of
68-6 the general revenue fund unless the fund, account, or dedication is
68-7 exempted under that Act.
68-8 SECTION 23. Section 386.002, Health and Safety Code, as
68-9 added by this Act notwithstanding, the Texas Natural Resource
68-10 Conservation Commission shall submit the final biennial plan report
68-11 required by Section 386.057, Health and Safety Code, as added by
68-12 this Act, to the legislature not later than December 1, 2008.
68-13 SECTION 24. The expiration of Sections 151.0515, 152.0215,
68-14 and 156.054, Tax Code, as added by this Act, and Articles 9035 and
68-15 9036, Revised Statutes, as added by this Act, does not affect an
68-16 obligation that was incurred, a violation that occurred, or an
68-17 offense that was committed under those sections or articles before
68-18 the expiration date of those sections or articles. An obligation
68-19 incurred, a violation that occurred, or an offense committed before
68-20 the expiration date of those sections or articles is governed by
68-21 the law in effect at the time the obligation was incurred, the
68-22 violation occurred, or the offense was committed, and the former
68-23 law is continued in effect after the expiration date for that
68-24 purpose. For purposes of this section, a violation occurs or an
68-25 offense is committed before the expiration date of those sections
68-26 or articles if any element of the violation or offense occurs
69-1 before that date.
69-2 SECTION 25. This Act takes effect immediately if it receives
69-3 a vote of two-thirds of all the members elected to each house, as
69-4 provided by Section 39, Article III, Texas Constitution. If this
69-5 Act does not receive the vote necessary for immediate effect, this
69-6 Act takes effect September 1, 2001.