1-1 AN ACT
1-2 relating to the Texas emissions reduction plan.
1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-4 SECTION 1. (a) It is the intent of the legislature to give
1-5 the Texas Natural Resource Conservation Commission additional tools
1-6 to:
1-7 (1) assure that the air in this state is safe to
1-8 breathe and meets minimum federal standards established under the
1-9 federal Clean Air Act (42 U.S.C. Section 7407);
1-10 (2) develop multipollutant approaches to solving the
1-11 state's environmental problems; and
1-12 (3) adequately fund research and development that will
1-13 make the state a leader in new technologies that can solve the
1-14 state's environmental problems while creating new business and
1-15 industry in the state.
1-16 (b) Subtitle C, Title 5, Health and Safety Code, is amended
1-17 by adding Chapters 386, 387, 388, and 389 to read as follows:
1-18 CHAPTER 386. TEXAS EMISSIONS REDUCTION PLAN
1-19 SUBCHAPTER A. GENERAL PROVISIONS
1-20 Sec. 386.001. DEFINITIONS. In this chapter:
1-21 (1) "Advisory board" means the Texas Emissions
1-22 Reduction Plan Advisory Board.
1-23 (2) "Affected county" includes:
1-24 (A) Bastrop County;
1-25 (B) Bexar County;
2-1 (C) Caldwell County;
2-2 (D) Comal County;
2-3 (E) Ellis County;
2-4 (F) Gregg County;
2-5 (G) Guadalupe County;
2-6 (H) Harrison County;
2-7 (I) Hays County;
2-8 (J) Johnson County;
2-9 (K) Kaufman County;
2-10 (L) Nueces County;
2-11 (M) Parker County;
2-12 (N) Rockwall County;
2-13 (O) Rusk County;
2-14 (P) San Patricio County;
2-15 (Q) Smith County;
2-16 (R) Travis County;
2-17 (S) Upshur County;
2-18 (T) Victoria County;
2-19 (U) Williamson County; and
2-20 (V) Wilson County.
2-21 (3) "Commission" means the Texas Natural Resource
2-22 Conservation Commission.
2-23 (4) "Council" means the Texas Council on Environmental
2-24 Technology.
2-25 (5) "Fund" means the Texas emissions reduction plan
2-26 fund.
3-1 (6) "Incremental cost" means the cost of an
3-2 applicant's project less a baseline cost that would otherwise be
3-3 incurred by an applicant in the normal course of business.
3-4 Incremental costs may include added lease or fuel costs as well as
3-5 additional capital costs.
3-6 (7) "Laboratory" means the Energy Systems Laboratory
3-7 at the Texas Engineering Experiment Station of The Texas A&M
3-8 University System.
3-9 (8) "Nonattainment area" means an area so designated
3-10 under Section 107(d) of the federal Clean Air Act (42 U.S.C.
3-11 Section 7407), as amended.
3-12 (9) "Plan" means the Texas emissions reduction plan.
3-13 (10) "Site" means the total of all stationary sources
3-14 located on one or more contiguous or adjacent properties, which are
3-15 under common control of the same person or persons under common
3-16 control.
3-17 (11) "Utility commission" means the Public Utility
3-18 Commission of Texas.
3-19 Sec. 386.002. EXPIRATION. This chapter expires August 31,
3-20 2008.
3-21 (Sections 386.003-386.050 reserved for expansion
3-22 SUBCHAPTER B. TEXAS EMISSIONS REDUCTION PLAN
3-23 Sec. 386.051. TEXAS EMISSIONS REDUCTION PLAN. (a) The
3-24 utility commission, the commission, the comptroller, and the
3-25 council shall establish and administer the Texas emissions
3-26 reduction plan in accordance with this chapter.
4-1 (b) Under the plan, the commission, the comptroller, and the
4-2 council shall provide grants or other funding for:
4-3 (1) the diesel emissions reduction incentive program
4-4 established under Subchapter C, including for infrastructure
4-5 projects established under that subchapter;
4-6 (2) the motor vehicle purchase or lease incentive
4-7 program established under Subchapter D; and
4-8 (3) the new technology research and development
4-9 program established under Chapter 387.
4-10 (c) Under the plan, the utility commission shall provide
4-11 grants or other funding for the energy efficiency grant program
4-12 established under Subchapter E.
4-13 (d) Equipment purchased before September 1, 2001, is not
4-14 eligible for a grant or other funding under the plan.
4-15 Sec. 386.052. COMMISSION DUTIES. (a) In administering the
4-16 plan established under this chapter and in accordance with the
4-17 requirements of this chapter, the commission shall:
4-18 (1) manage plan funds and oversee the plan;
4-19 (2) produce guidelines, protocols, and criteria for
4-20 eligible projects;
4-21 (3) develop methodologies for evaluating project
4-22 cost-effectiveness;
4-23 (4) prepare reports regarding the progress and
4-24 effectiveness of the plan; and
4-25 (5) take all appropriate and necessary actions so that
4-26 emissions reductions achieved through the plan are credited by the
5-1 United States Environmental Protection Agency to the appropriate
5-2 emissions reduction objectives in the state implementation plan.
5-3 (b) Appropriate commission objectives include:
5-4 (1) achieving maximum reductions in oxides of nitrogen
5-5 to demonstrate compliance with the state implementation plan;
5-6 (2) preventing areas of the state from being in
5-7 violation of national ambient air quality standards; and
5-8 (3) achieving cost-saving and multiple benefits by
5-9 reducing emissions of other pollutants.
5-10 Sec. 386.053. GUIDELINES AND CRITERIA. (a) The commission
5-11 shall adopt grant guidelines and criteria consistent with the
5-12 requirements of this chapter.
5-13 (b) Guidelines must include protocols to calculate projected
5-14 emissions reductions, project cost-effectiveness, and safeguards to
5-15 ensure that funded projects generate emissions reductions not
5-16 otherwise required by state or federal law.
5-17 (c) The commission shall make draft guidelines and criteria
5-18 available to the public and the United States Environmental
5-19 Protection Agency before the 45th day preceding the date of final
5-20 adoption and shall hold at least one public meeting to consider
5-21 public comments on the draft guidelines and criteria before final
5-22 adoption. The public meeting shall be held in the affected state
5-23 implementation plan area, and if the guidelines affect more than
5-24 one state implementation plan area, a public meeting shall be held
5-25 in each affected state implementation plan area affected by the
5-26 guidelines.
6-1 (d) The commission may propose revisions to the guidelines
6-2 and criteria adopted under this section as necessary to improve the
6-3 ability of the plan to achieve its goals. Revisions may include,
6-4 among other changes, adding additional pollutants or adjusting
6-5 eligible program categories, as appropriate, to ensure that
6-6 incentives established under this chapter achieve the maximum
6-7 possible emissions reductions. The commission shall make a
6-8 proposed revision available to the public before the 45th day
6-9 preceding the date of final adoption of the revision and shall hold
6-10 at least one public meeting to consider public comments on the
6-11 proposed revision before final adoption.
6-12 (e) Because the legislature finds that the current state of
6-13 air quality in the state jeopardizes the state's ability to meet
6-14 federal air quality requirements, the commission and the
6-15 comptroller may adopt emergency rules under Section 2001.034,
6-16 Government Code, with abbreviated notice, to carry out any
6-17 rulemaking necessary to implement this chapter.
6-18 (f) Except as provided by Subsection (e), the rulemaking
6-19 requirements of Chapter 2001, Government Code, do not apply to the
6-20 adoption or revision of guidelines and criteria under this section.
6-21 Sec. 386.054. MONITORING PROCEDURES. (a) The commission
6-22 shall develop procedures for monitoring whether the emissions
6-23 reductions projected for projects awarded grants under this chapter
6-24 are actually achieved. Monitoring procedures may include project
6-25 reviews and contract requirements that the grant recipient provide
6-26 information semiannually about the project. If the commission
7-1 requires an annual report, the report shall contain a minimum
7-2 amount of information required from a recipient and the report
7-3 format shall be simple and convenient.
7-4 (b) Monitoring and reviewing procedures must be sufficient
7-5 to enable emissions reductions generated by funded projects to be
7-6 fully credited to air quality plans.
7-7 (c) The commission may revise monitoring and review
7-8 procedures from time to time as necessary or appropriate to enhance
7-9 the effectiveness of the plan.
7-10 Sec. 386.055. AVAILABILITY OF EMISSIONS REDUCTION CREDITS
7-11 GENERALLY. (a) A project funded under a program established under
7-12 this chapter may not be used for credit under any state or federal
7-13 emissions reduction credit averaging, banking, or trading program.
7-14 (b) An emissions reduction generated by a program
7-15 established under this chapter:
7-16 (1) may not be used as a marketable emissions
7-17 reduction credit or, except as provided by Section 386.056, to
7-18 offset any emissions reduction obligation; and
7-19 (2) may be used to demonstrate conformity with the
7-20 state implementation plan.
7-21 (c) A project involving a new emissions reduction measure
7-22 that would otherwise generate marketable credits under state or
7-23 federal emissions reduction credit averaging, banking, or trading
7-24 programs is not eligible for funding under a program established
7-25 under this chapter unless:
7-26 (1) the project includes the transfer of the
8-1 reductions that would otherwise be marketable credits to the state
8-2 implementation plan or the owner or operator as provided by Section
8-3 386.056; and
8-4 (2) the reductions are permanently retired.
8-5 Sec. 386.056. AVAILABILITY OF EMISSIONS REDUCTIONS IN
8-6 CERTAIN NONATTAINMENT AREAS. (a) An owner or operator of a site
8-7 located in the Houston-Galveston or Dallas-Fort Worth nonattainment
8-8 area may use emissions reductions generated by a program
8-9 established under this chapter to offset the requirements of
8-10 commission rules relating to control of air pollution from oxides
8-11 of nitrogen if:
8-12 (1) the owner or operator of the site contributes to
8-13 the fund $75,000 for each ton of emissions that is used, not to
8-14 exceed 25 tons annually and not to exceed one-half ton per day;
8-15 (2) the owner or operator of the site demonstrates to
8-16 the commission's satisfaction that the site will be in full
8-17 compliance with the commission's emissions reduction rules not
8-18 later than the fifth anniversary of the date on which the emissions
8-19 reductions would otherwise be required;
8-20 (3) emissions from the site are reduced by at least 80
8-21 percent from the established baseline; and
8-22 (4) the commission approves a petition by the owner or
8-23 operator that demonstrates that it is technically infeasible to
8-24 comply with the commission's emissions reduction requirements above
8-25 80 percent.
8-26 (b) Funds collected under this section shall be used to
9-1 generate emissions reductions needed to meet the commission's
9-2 attainment demonstration.
9-3 (c) The commission shall verify that emissions reductions
9-4 generated from funds collected under this section occur in the same
9-5 nonattainment area in which the site that purchased the emissions
9-6 reductions is located.
9-7 (d) The commission shall assure that the emissions
9-8 reductions funded under the programs authorized by this subchapter
9-9 used to offset commission requirements under this section benefit
9-10 the community in which the site using the emissions reductions is
9-11 located. If there are no eligible emissions reduction projects
9-12 within the community, the commission may authorize projects in an
9-13 adjacent community. In this subsection, "community" means a
9-14 justice of the peace precinct.
9-15 Sec. 386.057. REVIEW AND REPORTING REQUIREMENTS. (a) The
9-16 commission, in consultation with the advisory board, annually shall
9-17 review programs established under the plan, including each project
9-18 funded under the plan, the amount granted for the project, the
9-19 emissions reductions attributable to the project, and the
9-20 cost-effectiveness of the project.
9-21 (b) Not later than December 1, 2002, and not later than
9-22 December 1 of each subsequent second year, the commission, in
9-23 consultation with the advisory board, shall publish and submit to
9-24 the legislature a biennial plan report. The report must include:
9-25 (1) the information included in the annual reviews
9-26 conducted under Subsection (a);
10-1 (2) specific information for individual projects as
10-2 required by Subsection (c);
10-3 (3) information contained in reports received under
10-4 Sections 386.205, 388.003(e), and 388.006; and
10-5 (4) a summary of the commission's activities under
10-6 Section 386.052.
10-7 (c) For projects funded as part of the infrastructure
10-8 program under Subchapter C, the report must:
10-9 (1) describe and evaluate:
10-10 (A) the infrastructure facilities funded under
10-11 that subchapter;
10-12 (B) the degree to which the funded facilities
10-13 are supporting on-road or non-road diesel projects;
10-14 (C) the amount of fuel or electricity dispensed
10-15 for each facility; and
10-16 (D) associated emissions reductions and
10-17 cost-effectiveness; and
10-18 (2) make a finding regarding the need for additional
10-19 appropriations from the fund to improve the ability of the program
10-20 to achieve its goals.
10-21 (d) The report must:
10-22 (1) account for money received, money disbursed as
10-23 grants, money reserved for grants based on project approvals, and
10-24 any recommended transfer of money between allocations and must
10-25 estimate future demand for grant funds under the plan;
10-26 (2) describe the overall effectiveness of the plan in
11-1 delivering the emissions reductions that may be credited to air
11-2 quality plans;
11-3 (3) evaluate the effectiveness of the plan in
11-4 soliciting and evaluating project applications, providing awards in
11-5 a timely manner, and monitoring project implementation;
11-6 (4) describe adjustments made to project selection
11-7 criteria and recommend any further needed changes or adjustments to
11-8 the grant programs, including changes in grant award criteria,
11-9 administrative procedures, or statutory provisions that would
11-10 enhance the plan's effectiveness and efficiency;
11-11 (5) describe adjustments made to the maximum
11-12 cost-effectiveness amount and award amount;
11-13 (6) evaluate the benefits of addressing additional
11-14 pollutants as part of the plan; and
11-15 (7) include legislative recommendations necessary to
11-16 improve the effectiveness of the plan.
11-17 (e) The commission shall request public comment and hold a
11-18 public meeting on each draft biennial report and, in producing a
11-19 final biennial report, shall consider and respond to all
11-20 significant comments received.
11-21 Sec. 386.058. TEXAS EMISSIONS REDUCTION PLAN ADVISORY BOARD.
11-22 (a) The Texas Emissions Reduction Plan Advisory Board consists of
11-23 15 members appointed as provided by this section and seven ex
11-24 officio members as provided by this section.
11-25 (b) The governor shall appoint to the advisory board:
11-26 (1) a representative of the trucking industry;
12-1 (2) a representative of the air conditioning
12-2 manufacturing industry;
12-3 (3) a representative of the electric utility industry;
12-4 (4) a representative of regional transportation; and
12-5 (5) a representative of the Texas Council on
12-6 Environmental Technology.
12-7 (c) The lieutenant governor shall appoint to the advisory
12-8 board:
12-9 (1) a representative of the engine manufacturing
12-10 industry;
12-11 (2) a representative of the air transportation
12-12 industry;
12-13 (3) a representative of the environmental community;
12-14 (4) a representative of the fuel cell industry; and
12-15 (5) a representative of the energy-efficient
12-16 construction industry.
12-17 (d) The speaker of the house of representatives shall
12-18 appoint to the advisory board:
12-19 (1) a representative of consumer groups;
12-20 (2) a representative of the construction industry;
12-21 (3) a representative of the automobile industry;
12-22 (4) a representative of the agriculture industry; and
12-23 (5) a representative of the fuel industry.
12-24 (e) Appointed members of the advisory board serve staggered
12-25 two-year terms. The terms of seven appointed members expire
12-26 February 1 of each even-numbered year. The terms of eight
13-1 appointed members expire February 1 of each odd-numbered year. An
13-2 appointed member may be reappointed to a subsequent term.
13-3 (f) Ex officio members of the advisory board are:
13-4 (1) the presiding officer of the senate standing
13-5 committee having primary jurisdiction over matters related to
13-6 natural resources;
13-7 (2) the presiding officer of the house standing
13-8 committee having primary jurisdiction over matters related to
13-9 environmental regulation;
13-10 (3) a representative of the commission, designated by
13-11 the executive director;
13-12 (4) a representative of the General Land Office,
13-13 designated by the Commissioner of the General Land Office;
13-14 (5) a representative of the comptroller's office,
13-15 designated by the comptroller;
13-16 (6) a representative of the Railroad Commission of
13-17 Texas, designated by the presiding officer of the agency; and
13-18 (7) a representative of the United States
13-19 Environmental Protection Agency's Region 6 office, designated by
13-20 the United States Environmental Protection Agency Region 6
13-21 administrator.
13-22 (g) The advisory board annually shall elect a presiding
13-23 officer.
13-24 (h) The advisory board shall review the plan and shall
13-25 recommend to the commission changes to revenue sources or financial
13-26 incentives or any legislative, regulatory, or budgetary changes
14-1 needed.
14-2 (i) The commission shall provide necessary staff support to
14-3 the advisory board.
14-4 (Sections 386.059-386.100 reserved for expansion
14-5 SUBCHAPTER C. DIESEL EMISSIONS REDUCTION INCENTIVE PROGRAM
14-6 Sec. 386.101. DEFINITIONS. In this subchapter:
14-7 (1) "Cost-effectiveness" means the total dollar amount
14-8 expended divided by the total number of tons of oxides of nitrogen
14-9 emissions reduction attributable to that expenditure.
14-10 Cost-effectiveness for the program as a whole and for particular
14-11 projects under the program is calculated as provided by Sections
14-12 386.105 and 386.106.
14-13 (2) "Fuel cell" means an electrochemical device that
14-14 uses fuel and oxidant to continuously generate electricity.
14-15 (3) "Motor vehicle" means a self-propelled device
14-16 designed for transporting persons or property on a public highway
14-17 that is required to be registered under Chapter 502, Transportation
14-18 Code.
14-19 (4) "Non-road diesel" means a vehicle or piece of
14-20 equipment, excluding a motor vehicle or on-road diesel, that is
14-21 powered by a non-road engine, including:
14-22 (A) non-road nonrecreational equipment and
14-23 vehicles;
14-24 (B) construction equipment;
14-25 (C) locomotives;
14-26 (D) marine vessels; and
15-1 (E) other high-emitting diesel engine categories
15-2 established by the commission.
15-3 (5) "Non-road engine" means an internal combustion
15-4 engine that is:
15-5 (A) in or on a piece of equipment that is
15-6 self-propelled or that propels itself and performs another
15-7 function, excluding a vehicle that is used solely for competition;
15-8 (B) in or on a piece of equipment that is
15-9 intended to be propelled while performing its function; or
15-10 (C) designed to be and capable of being carried
15-11 or moved from one location to another.
15-12 (6) "On-road diesel" means an on-road diesel-powered
15-13 motor vehicle that has a gross vehicle weight rating of 10,000
15-14 pounds or more.
15-15 (7) "Program" means the diesel emissions reduction
15-16 incentive program established under this subchapter.
15-17 (8) "Qualifying fuel" includes any liquid or gaseous
15-18 fuel or additives registered or verified by the United States
15-19 Environmental Protection Agency that is ultimately dispensed into a
15-20 motor vehicle or on-road or non-road diesel that provides
15-21 reductions of emissions of oxides of nitrogen beyond reductions
15-22 required by state or federal law.
15-23 (9) "Repower" means to replace an old engine powering
15-24 an on-road or non-road diesel with:
15-25 (A) a new engine that emits at least 30 percent
15-26 less than the oxides of nitrogen emissions standard required by
16-1 federal regulation for the current model year for that engine;
16-2 (B) an engine manufactured later than 1987 that
16-3 emits at least 30 percent less than the oxides of nitrogen
16-4 emissions standard emitted by a new engine certified to the
16-5 baseline oxides of nitrogen emissions standard for that engine;
16-6 (C) an engine manufactured before 1988 that
16-7 emits not more than 50 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 (D) electric motors, drives, or fuel cells.
16-11 (10) "Retrofit" means to equip an engine and fuel
16-12 system with new emissions-reducing parts or technology verified by
16-13 the United States Environmental Protection Agency after manufacture
16-14 of the original engine and fuel system.
16-15 Sec. 386.102. PROGRAM. (a) The commission shall establish
16-16 and administer a diesel emissions reduction incentive program.
16-17 Under the program, the commission shall provide grants for eligible
16-18 projects to offset the incremental cost of projects that reduce
16-19 emissions of oxides of nitrogen from high-emitting diesel sources
16-20 in nonattainment areas and affected counties of the state. The
16-21 commission shall determine the eligibility of projects.
16-22 (b) Projects that may be considered for a grant under the
16-23 program include:
16-24 (1) purchase or lease of non-road diesels;
16-25 (2) emissions-reducing retrofit projects for on-road
16-26 or non-road diesels;
17-1 (3) emissions-reducing repower projects for on-road or
17-2 non-road diesels;
17-3 (4) purchase and use of emissions-reducing add-on
17-4 equipment for on-road or non-road diesels;
17-5 (5) development and demonstration of practical,
17-6 low-emissions retrofit technologies, repower options, and advanced
17-7 technologies for on-road or non-road diesels with lower emissions
17-8 of oxides of nitrogen;
17-9 (6) use of qualifying fuel; and
17-10 (7) implementation of infrastructure projects.
17-11 (c) A project listed in Subsection (b) is not eligible if it
17-12 is required by any state or federal law, rule or regulation,
17-13 memorandum of agreement, or other legally binding document. This
17-14 subsection does not apply to:
17-15 (1) an otherwise qualified project, regardless of the
17-16 fact that the state implementation plan assumes that the change in
17-17 equipment, vehicles, or operations will occur, if on the date the
17-18 grant is awarded the change is not required by any state or federal
17-19 law, rule or regulation, memorandum of agreement, or other legally
17-20 binding document; or
17-21 (2) the purchase of an on-road diesel or equipment
17-22 required only by local law or regulation or by corporate or
17-23 controlling board policy of a public or private entity.
17-24 Sec. 386.103. APPLICATION FOR GRANT. (a) Any person as
17-25 defined by Section 382.003 that owns one or more on-road or
17-26 non-road diesels that operate primarily within a nonattainment area
18-1 or affected county of this state or that otherwise contributes to
18-2 the state inventory of emissions of oxides of nitrogen may apply
18-3 for a grant under the program.
18-4 (b) An application for a grant under this subchapter must be
18-5 made on an application provided by the commission and must contain
18-6 information required by the commission, including:
18-7 (1) a detailed description of the proposed project;
18-8 (2) information necessary for the commission to
18-9 determine whether the project meets eligibility requirements for
18-10 the type of project proposed, including a statement of the amounts
18-11 of any other public financial assistance the project will receive;
18-12 and
18-13 (3) other information the commission may require.
18-14 Sec. 386.104. ELIGIBILITY REQUIREMENTS. (a) The commission
18-15 shall establish criteria for setting priorities for projects
18-16 eligible to receive grants under this subchapter. The commission
18-17 shall review and may modify the criteria and priorities as
18-18 appropriate.
18-19 (b) A proposed project as described in Section 386.102 must
18-20 meet the requirements of this section to be eligible for a grant
18-21 under the program.
18-22 (c) For a proposed project as described by Section
18-23 386.102(b), other than a project involving a marine vessel or
18-24 engine, not less than 75 percent of vehicle miles traveled or hours
18-25 of operation projected for the five years immediately following the
18-26 award of a grant must be projected to take place in a nonattainment
19-1 area or affected county of this state. For a proposed project
19-2 involving a marine vessel or engine, the vessel or engine must be
19-3 operated in the intercoastal waterways or bays adjacent to a
19-4 nonattainment area or affected county of this state for a
19-5 sufficient amount of time over the lifetime of the project, as
19-6 determined by the commission, to meet the cost-effectiveness
19-7 requirements of Section 386.105.
19-8 (d) Each proposed project must meet the cost-effectiveness
19-9 requirements of Sections 386.105 and 386.106.
19-10 (e) A proposed repower project must exceed commission
19-11 requirements relating to baseline emissions levels of the engines
19-12 being replaced under the project.
19-13 (f) A proposed retrofit, repower, or add-on equipment
19-14 project must document, in a manner acceptable to the commission, a
19-15 reduction in emissions of oxides of nitrogen of at least 30 percent
19-16 compared with the baseline emissions adopted by the commission for
19-17 the relevant engine year and application. After study of available
19-18 emissions reduction technologies, after public notice and comment,
19-19 and after consultation with the advisory board, the commission may
19-20 revise the minimum percentage reduction in emissions of oxides of
19-21 nitrogen required by this subsection to improve the ability of the
19-22 program to achieve its goals.
19-23 (g) If a baseline emissions standard does not exist for
19-24 on-road or non-road diesels in a particular category, the
19-25 commission, for purposes of this subchapter, shall establish an
19-26 appropriate baseline emissions level for comparison purposes.
20-1 (h) The commission may approve payments to offset the
20-2 incremental cost, over the expected lifetime of the motor vehicle
20-3 or on-road or non-road diesel, of the use of qualifying fuel in a
20-4 motor vehicle or on-road or non-road diesel if the proposed project
20-5 as a whole, including the incremental fuel cost, meets the
20-6 requirements of this subchapter. The commission shall develop an
20-7 appropriate method for converting incremental fuel costs over the
20-8 lifetime of the motor vehicle or on-road or non-road diesel into an
20-9 initial cost for purposes of determining cost-effectiveness as
20-10 required by Section 386.105.
20-11 Sec. 386.105. CALCULATION OF COST-EFFECTIVENESS. (a) In
20-12 calculating cost-effectiveness, one-time grants of money at the
20-13 beginning of a project shall be annualized using a time value of
20-14 public funds or discount rate determined for each project by the
20-15 commission, taking into account the interest rate on bonds,
20-16 interest earned by state funds, and other factors the commission
20-17 considers appropriate.
20-18 (b) The commission shall establish reasonable methodologies
20-19 for evaluating project cost-effectiveness consistent with
20-20 Subsection (a) and with accepted methods.
20-21 (c) The commission shall develop protocols for calculating
20-22 oxides of nitrogen emissions reductions not otherwise required by
20-23 state or federal law in nonattainment areas and affected counties
20-24 of this state from representative project types over the life of
20-25 the projects.
20-26 (d) The commission may include in cost-effectiveness
21-1 determinations only reductions in oxides of nitrogen emissions that
21-2 are achieved in nonattainment areas and affected counties of this
21-3 state.
21-4 Sec. 386.106. COST-EFFECTIVENESS CRITERIA; DETERMINATION OF
21-5 GRANT AMOUNT. (a) Except as provided by Section 386.107, the
21-6 commission may not award a grant for a proposed project the
21-7 cost-effectiveness of which, calculated in accordance with Section
21-8 386.105 and criteria developed under that section, exceeds $13,000
21-9 per ton of oxides of nitrogen emissions reduced in the
21-10 nonattainment area or affected county for which the project is
21-11 proposed. This subsection does not restrict commission authority
21-12 under other law to require emissions reductions with a
21-13 cost-effectiveness that exceeds $13,000 per ton.
21-14 (b) The commission may not award a grant that, net of taxes,
21-15 provides an amount that exceeds the incremental cost of the
21-16 proposed project.
21-17 (c) The commission shall adopt guidelines for capitalizing
21-18 incremental lease costs so those costs may be offset by a grant
21-19 under this subchapter.
21-20 (d) In determining the amount of a grant under this
21-21 subchapter, the commission shall reduce the incremental cost of a
21-22 proposed new purchase, lease, retrofit, repower, or add-on
21-23 equipment project by the value of any existing financial incentive
21-24 that directly reduces the cost of the proposed project, including
21-25 tax credits or deductions, other grants, or any other public
21-26 financial assistance.
22-1 Sec. 386.107. ADJUSTMENT TO MAXIMUM COST-EFFECTIVENESS
22-2 AMOUNT AND AWARD AMOUNT. After study of available emissions
22-3 reduction technologies and costs and after public notice and
22-4 comment, the commission, in consultation with the advisory board,
22-5 may change the values of the maximum grant award criteria
22-6 established in Section 386.106 to account for inflation or to
22-7 improve the ability of the program to achieve its goals.
22-8 Sec. 386.108. INFRASTRUCTURE PROJECTS. (a) The commission
22-9 shall provide funding under Section 386.252(a)(1) for
22-10 infrastructure projects.
22-11 (b) To implement the requirement of Subsection (a), the
22-12 commission shall:
22-13 (1) solicit applications for a balanced mix of
22-14 projects involving fueling and electrification infrastructure that
22-15 is linked to motor vehicle and on-road and non-road diesel projects
22-16 and consistent with program goals;
22-17 (2) coordinate infrastructure projects with motor
22-18 vehicle and on-road and non-road diesel projects representing a
22-19 broad range of fuels, technologies, and applications as appropriate
22-20 and consistent with the goals of this chapter;
22-21 (3) adopt guidelines and criteria for infrastructure
22-22 projects to be funded under the program; and
22-23 (4) oversee, monitor, and evaluate the use of grants
22-24 awarded under this program and report on the effectiveness of this
22-25 grant program in relation to the purposes and goals of this
22-26 chapter.
23-1 Sec. 386.109. ELIGIBLE INFRASTRUCTURE PROJECTS. The
23-2 commission may consider for funding under Section 386.108:
23-3 (1) the purchase and installation at a site of
23-4 equipment that is designed primarily to dispense qualifying fuel,
23-5 other than standard gasoline or diesel, or the purchase of on-site
23-6 mobile fueling equipment;
23-7 (2) infrastructure projects, including auxiliary power
23-8 units, designed to dispense electricity to motor vehicles and
23-9 on-road and non-road diesels; and
23-10 (3) a project that involves a technology that allows a
23-11 vehicle to replace with electric power, while the vehicle is
23-12 parked, the power normally supplied by the vehicle's internal
23-13 combustion engine.
23-14 Sec. 386.110. APPLICATION PACKAGE FOR INFRASTRUCTURE
23-15 PROJECTS. (a) The commission shall develop a simple, standardized
23-16 application package for infrastructure project grants under this
23-17 subchapter. The package must include:
23-18 (1) an application form;
23-19 (2) a brief description of:
23-20 (A) the program;
23-21 (B) the projects that are eligible for available
23-22 funding;
23-23 (C) the selection criteria and evaluation
23-24 process; and
23-25 (D) the required documentation;
23-26 (3) the name of a person or office to contact for more
24-1 information;
24-2 (4) an example of the contract that an applicant will
24-3 be required to execute before receiving a grant; and
24-4 (5) any other information the commission considers
24-5 useful to inform the applicant and expedite the application
24-6 process.
24-7 (b) The application form shall require as much information
24-8 as the commission determines is necessary to properly evaluate each
24-9 project but shall otherwise minimize the information required.
24-10 (c) The commission may not require an applicant, as part of
24-11 the application process, to calculate tons of emissions reduced or
24-12 cost-effectiveness.
24-13 Sec. 386.111. APPLICATION REVIEW PROCEDURES. (a) The
24-14 commission shall review an application for a grant for a project
24-15 authorized under this subchapter, including an application for a
24-16 grant for an infrastructure project, immediately on receipt of the
24-17 application. If the commission determines that an application is
24-18 incomplete, the commission shall notify the applicant, not later
24-19 than the 15th working day after the date on which the commission
24-20 received the application, with an explanation of what is missing
24-21 from the application. The commission shall record the date and
24-22 time of receipt of each application the commission determines to be
24-23 complete and shall evaluate the completed application according to
24-24 the appropriate project criteria. Subject to available funding,
24-25 the commission shall make a final determination on an application
24-26 as soon as possible and not later than the 60th working day after
25-1 the date the application is determined to be complete.
25-2 (b) The commission shall make every effort to expedite the
25-3 application review process and to award grants to qualified
25-4 projects in a timely manner. To the extent possible, the
25-5 commission shall coordinate project review and approval with any
25-6 timing constraints related to project purchases or installations to
25-7 be made by an applicant.
25-8 (c) The commission may deny an application for a project
25-9 that does not meet the applicable project criteria or that the
25-10 commission determines is not made in good faith, is not credible,
25-11 or is not in compliance with this chapter and the goals of this
25-12 chapter.
25-13 (d) Subject to availability of funds, the commission shall
25-14 award a grant under this subchapter in conjunction with the
25-15 execution of a contract that obligates the commission to make the
25-16 grant and the recipient to perform the actions described in the
25-17 recipient's grant application. The contract must incorporate
25-18 provisions for recapturing grant money in proportion to any loss of
25-19 emissions reductions or underachievement in dispensing qualifying
25-20 fuel compared with the volume of emissions reductions or amount of
25-21 fuel dispensed that was projected in awarding the grant. Grant
25-22 money recaptured under the contract provision shall be deposited in
25-23 the fund and reallocated for other projects under this subchapter.
25-24 (e) An applicant may seek reimbursement for qualifying
25-25 equipment installed after the effective date of this program.
25-26 Sec. 386.112. ON-ROAD DIESEL PURCHASE OR LEASE INCENTIVE.
26-1 (a) The commission shall develop a purchase or lease incentive
26-2 program for new on-road diesels and shall adopt rules necessary to
26-3 implement the program and to reimburse a purchaser or lessee of a
26-4 new on-road diesel that is eligible for reimbursement of
26-5 incremental costs under this subchapter.
26-6 (b) The program shall authorize statewide incentives for the
26-7 reimbursement of incremental costs for the purchase or lease,
26-8 according to the schedule provided by Section 386.113, of new
26-9 on-road diesels that are certified by the United States
26-10 Environmental Protection Agency to an emissions standard provided
26-11 by Section 386.113 if the purchaser or lessee of the on-road diesel
26-12 agrees to register the vehicle in this state and to operate the
26-13 on-road diesel in this state for not less than 75 percent of the
26-14 on-road diesel's annual mileage.
26-15 (c) Only one incentive will be provided for each new on-road
26-16 diesel. The incentive shall be provided to the purchaser if the
26-17 on-road diesel is not purchased for the purpose of leasing the
26-18 on-road diesel to another person, or to the lessee and not to the
26-19 purchaser if the on-road diesel is purchased for the purpose of
26-20 leasing the on-road diesel to another person. A lease incentive
26-21 for a new on-road diesel shall be prorated based on an eight-year
26-22 lease term.
26-23 Sec. 386.113. ON-ROAD DIESEL PURCHASE OR LEASE INCENTIVE
26-24 SCHEDULE. A new on-road diesel is eligible for reimbursement of
26-25 incremental costs according to the following schedule:
27-1 Incentive emissions standard Reimbursement amount
27-2 (oxides of nitrogen)
27-3 Date of manufacture Date of manufacture
27-4 (2001) (10/01/02-9/30/06)
27-5 2.5 g/bhp-hr NOx 1.2 g/bhp-hr NOx up to $15,000
27-6 1.5 g/bhp-hr NOx 0.5 g/bhp-hr NOx up to $25,000
27-7 0.0 g/bhp-hr NOx 0.0 g/bhp-hr NOx up to $25,000
27-8 Sec. 386.114. MODIFICATION OF INCENTIVE EMISSIONS STANDARDS.
27-9 After evaluating new technologies and after public notice and
27-10 comment, the commission, in consultation with the advisory board,
27-11 may change the incentive emissions standards established by Section
27-12 386.113 to improve the ability of the program to achieve its goals.
27-13 (Sections 386.115-386.150 reserved for expansion
27-14 SUBCHAPTER D. MOTOR VEHICLE PURCHASE OR LEASE INCENTIVE PROGRAM
27-15 Sec. 386.151. DEFINITIONS. In this subchapter:
27-16 (1) "Bin" or "emissions bin" means a set of emissions
27-17 standards applicable to exhaust pollutants measured on the Federal
27-18 Test Procedure (FTP) according to 40 C.F.R. Section 86.1811-04.
27-19 (2) "Light-duty motor vehicle" means a motor vehicle
27-20 with a gross vehicle weight rating of less than 10,000 pounds.
27-21 (3) "Motor vehicle" means a self-propelled device
27-22 designed for transporting persons or property on a public highway
27-23 that is required to be registered under Chapter 502, Transportation
27-24 Code.
27-25 Sec. 386.152. COMPTROLLER AND COMMISSION DUTIES REGARDING
27-26 LIGHT-DUTY MOTOR VEHICLE PURCHASE OR LEASE INCENTIVE PROGRAM.
28-1 (a) The comptroller and the commission shall develop a purchase or
28-2 lease incentive program for new light-duty motor vehicles and shall
28-3 adopt rules necessary to implement the program.
28-4 (b) The program shall authorize statewide incentives for the
28-5 purchase or lease, according to the schedule provided by Section
28-6 386.153, of new light-duty motor vehicles that are certified by the
28-7 United States Environmental Protection Agency to meet an emissions
28-8 standard that is at least as stringent as those provided by Section
28-9 386.153 for a purchaser or lessee who agrees to register the
28-10 vehicle in this state and to operate the vehicle in this state for
28-11 not less than 75 percent of the vehicle's annual mileage.
28-12 (c) Only one incentive will be provided for each new
28-13 light-duty motor vehicle. The incentive shall be provided to the
28-14 lessee and not to the purchaser if the motor vehicle is purchased
28-15 for the purpose of leasing the vehicle to another person.
28-16 Sec. 386.153. LIGHT-DUTY MOTOR VEHICLE PURCHASE OR LEASE
28-17 INCENTIVE SCHEDULE. A new light-duty motor vehicle is eligible for
28-18 an incentive according to the following schedule:
28-19 Incentive emissions standard and incentive amount
28-20 Model year 2003-2007
28-21 Bin 4 $1,250
28-22 Bin 3 $2,225
28-23 Bin 2 $3,750
28-24 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 the new vehicle models that the manufacturer
29-8 intends to sell in this state during that model year that meet the
29-9 incentive emissions standards established by the schedules set out
29-10 under Section 386.153. The manufacturer may supplement the list
29-11 provided to the commission under this section as necessary to
29-12 include additional new vehicle models the manufacturer intends to
29-13 sell in this state during the model year.
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. The commission shall publish
29-18 and provide to the comptroller supplements to that list as
29-19 necessary to include additional new vehicle models listed in a
29-20 supplement to the original list provided by a manufacturer under
29-21 Section 386.155.
29-22 (b) The comptroller shall distribute the list of eligible
29-23 motor vehicles to all new motor vehicle dealers and leasing agents
29-24 in this state.
29-25 Sec. 386.157. VEHICLE EMISSIONS INFORMATION BROCHURE.
29-26 (a) To enable consumers to make informed purchase decisions based
30-1 on the relative amounts of emissions produced by motor vehicles
30-2 within each vehicle class, the motor vehicle manufacturer shall
30-3 publish and make available to its dealers, for distribution to the
30-4 dealers' customers, a brochure that includes the list of eligible
30-5 motor vehicles prepared under Section 386.156 and the emissions and
30-6 air pollution ratings, not including fuel efficiency, for each
30-7 eligible motor vehicle based on data from the United States
30-8 Environmental Protection Agency's Green Vehicle Guide. The
30-9 brochure must also clearly present information on the emissions and
30-10 air pollution ratings, not including fuel efficiency, for each
30-11 motor vehicle on the list of eligible motor vehicles prepared by
30-12 the manufacturer under Section 386.155, based on the motor
30-13 vehicle's Bin certification number. The brochure must indicate
30-14 where the Bin certification information is located on each motor
30-15 vehicle and must clearly explain how to interpret that information.
30-16 The brochure must also tell the consumer how to obtain further
30-17 information from the United States Environmental Protection
30-18 Agency's Green Vehicle Guide. The commission by rule shall
30-19 establish standards for compliance with this subsection.
30-20 (b) A new motor vehicle dealer or leasing agent shall make
30-21 available to the dealer's or leasing agent's prospective purchasers
30-22 or lessees a copy of the list prepared and published by the
30-23 commission under Section 386.156.
30-24 Sec. 386.158. LIGHT-DUTY MOTOR VEHICLE PURCHASE OR LEASE
30-25 INCENTIVE. (a) A person who purchases or leases a new light-duty
30-26 motor vehicle that has been listed under Section 386.155 is
31-1 eligible for an incentive under this subchapter.
31-2 (b) A lease incentive for a new light-duty motor vehicle
31-3 shall be prorated based on a four-year lease term.
31-4 (c) To receive money under an incentive program provided by
31-5 this subchapter, the purchaser or lessee of a new light-duty motor
31-6 vehicle eligible for an incentive under this subchapter shall apply
31-7 for the incentive in the manner provided by law or by rule of the
31-8 comptroller.
31-9 Sec. 386.159. PUBLIC INFORMATION. (a) The commission in
31-10 cooperation with the comptroller shall develop and implement a
31-11 program to inform the public and new motor vehicle dealers and
31-12 leasing agents about the motor vehicle purchase or lease incentive
31-13 program.
31-14 (b) The Texas Department of Transportation shall insert a
31-15 notice describing the light-duty motor vehicle purchase or lease
31-16 incentive program with each annual vehicle registration renewal
31-17 notice. To help a consumer to make informed new vehicle purchase
31-18 decisions, the notice must also include a statement that
31-19 information on eligible motor vehicles and on the emissions and air
31-20 pollution ratings, not including fuel efficiency, for eligible
31-21 motor vehicles may be obtained from the commission or from new
31-22 motor vehicle dealers and leasing agents. The notice must state
31-23 where the Bin certification information is located on each eligible
31-24 motor vehicle, must clearly explain how to interpret that
31-25 information, and must tell the consumer how to obtain further
31-26 information from the United States Environmental Protection
32-1 Agency's Green Vehicle Guide.
32-2 Sec. 386.160. COMPTROLLER TO ACCOUNT FOR MOTOR VEHICLE
32-3 PURCHASE OR LEASE INCENTIVES. (a) The comptroller by rule shall
32-4 develop a method to administer and account for the motor vehicle
32-5 purchase or lease incentives authorized by this subchapter and to
32-6 pay incentive money to the purchaser or lessee of a new motor
32-7 vehicle, on application of the purchaser or lessee as provided by
32-8 this subchapter.
32-9 (b) The comptroller shall develop and publish forms and
32-10 instructions for the purchaser or lessee of a new motor vehicle to
32-11 use in applying to the comptroller for an incentive payment under
32-12 this subchapter. The comptroller shall make the forms available to
32-13 new motor vehicle dealers and leasing agents. Dealers and leasing
32-14 agents shall make the forms available to their prospective
32-15 purchasers or lessees.
32-16 (c) In addition to other forms developed and published under
32-17 this section, the comptroller shall develop and publish a
32-18 verification form by which, with information provided by the dealer
32-19 or leasing agent, the comptroller can verify the sale of a vehicle
32-20 covered by this subchapter. The verification form shall include at
32-21 least the name of the purchaser, the vehicle identification number
32-22 of the vehicle involved, the date of the purchase, and the name of
32-23 the new motor dealer or leasing agent involved in the transaction.
32-24 At the time of sale or lease of a vehicle eligible for an incentive
32-25 under this subchapter, the dealer or leasing agent shall complete
32-26 the verification form supplied to the dealer by the comptroller.
33-1 The purchaser or lessee shall include the completed verification
33-2 form as part of the purchaser's application for an incentive. The
33-3 dealer shall maintain a copy of the completed verification form for
33-4 at least two years from the date of the transaction.
33-5 Sec. 386.161. REPORT TO COMMISSION; SUSPENSION OF PURCHASE
33-6 OR LEASE INCENTIVES. (a) The comptroller shall report to the
33-7 commission annually regarding motor vehicle purchase or lease
33-8 incentives.
33-9 (b) If the balance available for motor vehicle purchase or
33-10 lease incentives falls below 15 percent of the total allocated for
33-11 the incentives during that fiscal year, the comptroller by order
33-12 shall suspend the incentives until the date the comptroller can
33-13 certify that the balance available in the fund for incentives is an
33-14 amount adequate to resume the incentives or the beginning of the
33-15 next fiscal year, whichever is earlier. If the comptroller
33-16 suspends the incentives, the comptroller shall immediately notify
33-17 the commission and all new motor vehicle dealers and leasing agents
33-18 that the incentives have been suspended.
33-19 (c) The comptroller shall establish a toll-free telephone
33-20 number available to motor vehicle dealers and leasing agents for
33-21 the dealers and agents to call to verify that incentives are
33-22 available. The comptroller may provide for issuing verification
33-23 numbers over the telephone line.
33-24 (d) Reliance by a dealer or leasing agent on information
33-25 provided by the comptroller or commission is a complete defense to
33-26 an action involving or based on eligibility of a vehicle for an
34-1 incentive or availability of vehicles eligible for an incentive.
34-2 (Sections 386.162-386.200 reserved for expansion
34-3 SUBCHAPTER E. ENERGY EFFICIENCY GRANT PROGRAM
34-4 Sec. 386.201. DEFINITIONS. In this subchapter:
34-5 (1) "Electric cooperative" has the meaning assigned by
34-6 Section 11.003, Utilities Code.
34-7 (2) "Electric utility" has the meaning assigned by
34-8 Section 31.002, Utilities Code.
34-9 (3) "Municipally owned utility" has the meaning
34-10 assigned by Section 11.003, Utilities Code.
34-11 Sec. 386.202. GRANT PROGRAM. (a) The utility commission
34-12 shall develop an energy efficiency grant program using program
34-13 templates that are consistent with rules of the utility commission
34-14 adopted under Section 39.905, Utilities Code.
34-15 (b) Programs approved under this subchapter must include the
34-16 retirement of materials and appliances that contribute to peak
34-17 energy demand to ensure the reduction of energy demand, peak loads,
34-18 and associated emissions of air contaminants.
34-19 Sec. 386.203. ADMINISTRATION OF GRANTS. Money allocated by
34-20 the utility commission under the grant program developed under this
34-21 subchapter shall be administered by electric utilities, electric
34-22 cooperatives, and municipally owned utilities. A participating
34-23 electric utility, electric cooperative, or municipally owned
34-24 utility shall be reimbursed from the fund for costs incurred by the
34-25 utility in administering the energy efficiency grant program
34-26 established under this subchapter. Reimbursable administrative
35-1 costs of a participating entity may not exceed 10 percent of the
35-2 entity's total program budget before January 1, 2003, and may not
35-3 exceed five percent of the entity's total program budget on or
35-4 after that date.
35-5 Sec. 386.204. LIMITATION ON DUTY OF PARTICIPATING UTILITY.
35-6 (a) This subchapter obligates an electric utility, electric
35-7 cooperative, or municipally owned utility only to administer the
35-8 funding allocated to the entity by the utility commission in
35-9 accordance with this subchapter.
35-10 (b) The obligation of an electric utility under this
35-11 subchapter is separate and apart from, and does not affect an
35-12 obligation of the electric utility under, Section 39.905, Utilities
35-13 Code, or a rule adopted under that section.
35-14 (c) Emissions reductions achieved by a program implemented
35-15 under this subchapter may not be used by an electric utility,
35-16 electric cooperative, or municipally owned utility to satisfy an
35-17 obligation to reduce air contaminant emissions under state or
35-18 federal law or a state or federal regulatory program.
35-19 Sec. 386.205. EVALUATION OF STATE ENERGY EFFICIENCY
35-20 PROGRAMS. In cooperation with the laboratory, the utility
35-21 commission shall provide an annual report to the commission that,
35-22 by county, quantifies the reductions of energy demand, peak loads,
35-23 and associated emissions of air contaminants achieved from the
35-24 programs implemented under this subchapter and from those
35-25 implemented under Section 39.905, Utilities Code.
36-1 (Sections 386.206-386.250 reserved for expansion
36-2 SUBCHAPTER F. TEXAS EMISSIONS REDUCTION PLAN FUND
36-3 Sec. 386.251. FUND. (a) The Texas emissions reduction plan
36-4 fund is an account in the state treasury.
36-5 (b) The fund is administered by the comptroller for the
36-6 benefit of the plan established under this chapter. The fund is
36-7 exempt from the application of Section 403.095, Government Code.
36-8 Interest earned on the fund shall be credited to the fund.
36-9 (c) The fund consists of:
36-10 (1) the contributions, fees, and surcharges under:
36-11 (A) Section 386.056;
36-12 (B) Sections 151.0515 and 152.0215, Tax Code;
36-13 and
36-14 (C) Sections 502.1675 and 548.256(c),
36-15 Transportation Code; and
36-16 (2) grant money recaptured under Section 386.111(d).
36-17 Sec. 386.252. USE OF FUND. (a) Money in the fund may be
36-18 used only to implement and administer programs established under
36-19 the plan and shall be allocated as follows:
36-20 (1) for the diesel emissions reduction incentive
36-21 program, 72 percent of the money in the fund, of which not more
36-22 than three percent may be used for infrastructure projects and not
36-23 more than 15 percent may be used for on-road diesel purchase or
36-24 lease incentives;
36-25 (2) for the motor vehicle purchase or lease incentive
36-26 program, 10 percent of the money in the fund;
37-1 (3) for the energy efficiency grant program, 7.5
37-2 percent of the money in the fund;
37-3 (4) for the new technology research and development
37-4 program, 7.5 percent of the money in the fund, of which up to
37-5 $250,000 is allocated for administration, up to $200,000 is
37-6 allocated for a health effects study, and $500,000 is to be
37-7 deposited in the state treasury to the credit of the clean air
37-8 account created under Section 382.0622 to supplement funding for
37-9 air quality planning activities in affected counties; and
37-10 (5) for administrative costs incurred by the utility
37-11 commission, the commission, the comptroller, and the laboratory,
37-12 three percent.
37-13 (b) Up to 15 percent of the money allocated under Subsection
37-14 (a) to a particular program and not expended under that program by
37-15 March 1 of the second fiscal year of a fiscal biennium may be used
37-16 for another program under the plan as determined by the commission
37-17 in consultation with the advisory board.
37-18 CHAPTER 387. NEW TECHNOLOGY RESEARCH
37-19 AND DEVELOPMENT PROGRAM
37-20 Sec. 387.001. DEFINITION. In this chapter, "program" means
37-21 the new technology research and development program.
37-22 Sec. 387.002. TEXAS COUNCIL ON ENVIRONMENTAL TECHNOLOGY.
37-23 (a) The Texas Council on Environmental Technology consists of 11
37-24 members appointed by the governor to represent the academic and
37-25 nonprofit communities. The governor shall designate from the
37-26 council members a presiding officer of the council. Members of the
38-1 council serve six-year staggered terms, with the terms of three or
38-2 four members expiring February 1 of each odd-numbered year.
38-3 (b) The Texas Council on Environmental Technology shall work
38-4 to enhance the entrepreneurial and inventive spirit of Texans to
38-5 assist in developing solutions to air, water, and waste problems
38-6 by:
38-7 (1) identifying and evaluating new technologies and
38-8 seeking the approval of the United States Environmental Protection
38-9 Agency for and facilitating the deployment of those technologies;
38-10 and
38-11 (2) assisting the commission and the United States
38-12 Environmental Protection Agency in the process of ensuring
38-13 credit for new, innovative, and creative technological
38-14 advancements.
38-15 (c) Council offices and projects shall be housed at the
38-16 Center for Energy and Environmental Resources at The University of
38-17 Texas at Austin.
38-18 Sec. 387.003. NEW TECHNOLOGY RESEARCH AND DEVELOPMENT
38-19 PROGRAM. (a) The Texas Council on Environmental Technology shall
38-20 establish and administer a new technology research and development
38-21 program as provided by this chapter.
38-22 (b) Under the program, the Texas Council on Environmental
38-23 Technology shall provide grants to be used to support development
38-24 of emissions-reducing technologies that may be used for projects
38-25 eligible for awards under Chapter 386 and other new technologies
38-26 that show promise for commercialization. The primary objective of
39-1 this chapter is to promote the development of commercialization
39-2 technologies that will support projects that may be funded under
39-3 Chapter 386 and this chapter.
39-4 Sec. 387.004. SOLICITATION OF NEW TECHNOLOGY PROPOSALS. The
39-5 Texas Council on Environmental Technology from time to time shall
39-6 issue specific requests for proposals (RFPs) or program opportunity
39-7 notices (PONs) for technology projects to be funded under the
39-8 program.
39-9 Sec. 387.005. ELIGIBLE PROJECTS; PRIORITIES. (a) Grants
39-10 awarded under this chapter shall be directed toward a balanced mix
39-11 of:
39-12 (1) retrofit and add-on technologies to reduce
39-13 emissions from the existing stock of vehicles targeted by the Texas
39-14 emissions reduction plan;
39-15 (2) advanced technologies for new engines and vehicles
39-16 that produce very-low or zero emissions of oxides of nitrogen,
39-17 including stationary and mobile fuel cells;
39-18 (3) studies to improve air quality assessment and
39-19 modeling;
39-20 (4) advanced technologies that promote increased
39-21 building and appliance energy performance; and
39-22 (5) advanced technologies that reduce emissions from
39-23 other significant sources.
39-24 (b) The Texas Council on Environmental Technology shall
39-25 identify and evaluate and may consider making grants for technology
39-26 projects that would allow qualifying fuels to be produced from
40-1 energy resources in this state. In considering projects under this
40-2 subsection, the council shall give preference to projects involving
40-3 otherwise unusable energy resources in this state and producing
40-4 qualifying fuels at prices lower than otherwise available and low
40-5 enough to make the projects to be funded under the program
40-6 economically attractive to local businesses in the area for which
40-7 the project is proposed.
40-8 (c) In soliciting proposals under Section 387.004 and
40-9 determining how to allocate grant money available for projects
40-10 under this chapter, the Texas Council on Environmental Technology
40-11 shall give special consideration to advanced technologies and
40-12 retrofit or add-on projects that provide multiple benefits by
40-13 reducing emissions of particulates and other air pollutants.
40-14 (d) A project that involves publicly or privately owned
40-15 vehicles or vessels is eligible for funding under this chapter if
40-16 the project meets all applicable criteria.
40-17 (e) Studies authorized under Subsection (a)(3) shall be
40-18 consistent with air quality research priorities identified by the
40-19 commission and conducted in an independent and objective manner.
40-20 Sec. 387.006. EVIDENCE OF COMMERCIALIZATION POTENTIAL
40-21 REQUIRED. (a) An application for a technology grant under this
40-22 chapter must show clear and compelling evidence that:
40-23 (1) the proposed technology project has a strong
40-24 commercialization plan and organization; and
40-25 (2) the technology proposed for funding:
40-26 (A) is likely to be offered for commercial sale
41-1 in this state within five years after the date of the application
41-2 for funding; and
41-3 (B) once commercialized, will offer
41-4 opportunities for projects eligible for funding under Chapter 386.
41-5 (b) The Texas Council on Environmental Technology shall
41-6 consider specifically, for each proposed technology project
41-7 application:
41-8 (1) the projected potential for reduced emissions of
41-9 oxides of nitrogen and the cost-effectiveness of the technology
41-10 once it has been commercialized;
41-11 (2) the potential for the technology to contribute
41-12 significantly to air quality goals; and
41-13 (3) the strength of the commercialization plan.
41-14 Sec. 387.007. COST-SHARING. The Texas Council on
41-15 Environmental Technology may require cost-sharing for technology
41-16 projects funded under this chapter but may not require repayment of
41-17 grant money, except that the council shall require provisions for
41-18 recapturing grant money for noncompliance with grant requirements.
41-19 Grant money recaptured under the contract provision shall be
41-20 deposited in the environmental research fund and reallocated for
41-21 other projects under this chapter.
41-22 Sec. 387.008. ENVIRONMENTAL RESEARCH FUND. (a) The
41-23 environmental research fund is an account in the general revenue
41-24 fund. The fund consists of money from gifts, grants, or donations
41-25 to the fund for designated or general use and from any other source
41-26 designated by the legislature.
42-1 (b) Money in the environmental research fund may be used
42-2 only for the operation and projects of the Texas Council on
42-3 Environmental Technology.
42-4 Sec. 387.009. ADVISORY COMMITTEES. The Texas Council on
42-5 Environmental Technology may appoint advisory committees as
42-6 necessary or desirable to assist the council in performing its
42-7 duties. An advisory committee may include representatives of
42-8 industry, environmental groups, consumer groups, local governments,
42-9 agriculture, the commission, the General Land Office, and the
42-10 Railroad Commission of Texas. Any senator or representative
42-11 desiring to do so may participate on any advisory committee
42-12 appointed under this section. Members of an advisory committee are
42-13 not entitled to compensation.
42-14 Sec. 387.010. REPORTS. Not later than December 1, 2002, and
42-15 not later than December 1 of each subsequent second year, the Texas
42-16 Council on Environmental Technology shall report to the legislature
42-17 on projects funded under the new technology research and
42-18 development program, describing the technical objectives and
42-19 accomplishments of the project and the progress of the project
42-20 technology toward commercialization. Using sound science, the
42-21 report shall detail the costs and actual realized benefits of the
42-22 program and of each project funded under the program.
42-23 CHAPTER 388. TEXAS BUILDING ENERGY PERFORMANCE STANDARDS
42-24 Sec. 388.001. LEGISLATIVE FINDINGS. (a) The legislature
42-25 finds that an effective building energy code is essential to:
42-26 (1) reducing the air pollutant emissions that are
43-1 affecting the health of residents of this state;
43-2 (2) moderating future peak electric power demand;
43-3 (3) assuring the reliability of the electrical grid;
43-4 and
43-5 (4) controlling energy costs for residents and
43-6 businesses in this state.
43-7 (b) The legislature further finds that this state has a
43-8 number of unique climate types, all of which require more energy
43-9 for cooling than for heating, and that there are many
43-10 cost-effective measures that can reduce peak energy use and reduce
43-11 cooling and other energy costs in buildings.
43-12 Sec. 388.002. DEFINITIONS. In this chapter:
43-13 (1) "Affected county" has the meaning assigned by
43-14 Section 386.001.
43-15 (2) "Building" has the meaning assigned by the
43-16 International Building Code.
43-17 (3) "Code official" means an individual employed by a
43-18 local jurisdiction to review construction plans and other
43-19 documents, inspect construction, or administer and enforce building
43-20 standards under this chapter.
43-21 (4) "Code-certified inspector" means an inspector who
43-22 is certified by the International Code Council, the Building
43-23 Officials and Code Administrators International, Inc., the
43-24 International Conference of Building Officials, or the Southern
43-25 Building Code Congress International to have met minimum standards
43-26 for interpretation and enforcement of requirements of the
44-1 International Energy Conservation Code and the energy efficiency
44-2 chapter of the International Residential Code.
44-3 (5) "Commission" means the Texas Natural Resource
44-4 Conservation Commission.
44-5 (6) "International Residential Code" means the
44-6 International Residential Code for One- and Two-Family Dwellings as
44-7 adopted by the International Code Council.
44-8 (7) "International Energy Conservation Code" means the
44-9 International Energy Conservation Code as adopted by the
44-10 International Code Council.
44-11 (8) "Laboratory" means the Energy Systems Laboratory
44-12 at the Texas Engineering Experiment Station of The Texas A&M
44-13 University System.
44-14 (9) "Local jurisdiction" means the authority
44-15 responsible for implementation and enforcement of local building
44-16 codes.
44-17 (10) "Municipality" has the meaning assigned by
44-18 Section 1.005, Local Government Code.
44-19 (11) "Nonattainment area" has the meaning assigned by
44-20 Section 386.001.
44-21 (12) "Single-family residential" means having the
44-22 character of a detached one- or two-family dwelling or a multiple
44-23 single-family dwelling not more than three stories high with
44-24 separate means of egress, including the accessory structures of the
44-25 dwelling.
44-26 Sec. 388.003. ADOPTION OF BUILDING ENERGY EFFICIENCY
45-1 PERFORMANCE STANDARDS. (a) To achieve energy conservation in
45-2 single-family residential construction, the energy efficiency
45-3 chapter of the International Residential Code, as it existed on May
45-4 1, 2001, is adopted as the energy code in this state for
45-5 single-family residential construction.
45-6 (b) To achieve energy conservation in all other residential,
45-7 commercial, and industrial construction, the International Energy
45-8 Conservation Code as it existed on May 1, 2001, is adopted as the
45-9 energy code for use in this state for all other residential,
45-10 commercial, and industrial construction.
45-11 (c) A municipality shall establish procedures:
45-12 (1) for the administration and enforcement of the
45-13 codes; and
45-14 (2) to ensure that code-certified inspectors shall
45-15 perform inspections and enforce the code in the inspectors'
45-16 jurisdictions.
45-17 (d) A municipality or county may establish procedures to
45-18 adopt local amendments to the International Energy Conservation
45-19 Code and the energy efficiency chapter of the International
45-20 Residential Code.
45-21 (e) Local amendments may not result in less stringent energy
45-22 efficiency requirements in nonattainment areas and in affected
45-23 counties than the energy efficiency chapter of the International
45-24 Residential Code or International Energy Conservation Code. Local
45-25 amendments must comply with the National Appliance Energy
45-26 Conservation Act of 1987 (42 U.S.C. Sections 6291-6309), as
46-1 amended. The laboratory, at the request of a municipality or
46-2 county, shall determine the relative impact of proposed local
46-3 amendments to an energy code, including whether proposed amendments
46-4 are substantially equal to or less stringent than the unamended
46-5 code. For the purpose of establishing uniform requirements
46-6 throughout a region, and on request of a council of governments, a
46-7 county, or a municipality, the laboratory may recommend a
46-8 climatically appropriate modification or a climate zone designation
46-9 for a county or group of counties that is different from the
46-10 climate zone designation in the unamended code. The laboratory
46-11 shall:
46-12 (1) report its findings to the council, county, or
46-13 municipality, including an estimate of any energy savings potential
46-14 above the base code from local amendments; and
46-15 (2) annually submit a report to the commission:
46-16 (A) identifying the municipalities and counties
46-17 whose codes are more stringent than the unamended code, and whose
46-18 codes are equally stringent or less stringent than the unamended
46-19 code; and
46-20 (B) quantifying energy savings from this
46-21 program.
46-22 (f) Each municipality, and each county that has established
46-23 procedures under Subsection (d), shall periodically review and
46-24 consider revisions made by the International Code Council to the
46-25 International Energy Conservation Code and the energy efficiency
46-26 chapter of the International Residential Code adopted after May 1,
47-1 2001.
47-2 (g) The laboratory shall have the authority to set and
47-3 collect fees to perform certain tasks in support of the
47-4 requirements in Sections 388.004, 388.007, and 388.008.
47-5 (h) Within the boundaries of an airport operated by a joint
47-6 board created under Subchapter D, Chapter 22, Transportation Code,
47-7 the constituent agencies of which are populous home-rule
47-8 municipalities, the powers of a municipality under this section are
47-9 exclusively the powers of the joint board.
47-10 Sec. 388.004. ENFORCEMENT OF ENERGY STANDARDS OUTSIDE OF
47-11 MUNICIPALITY. For construction outside of the local jurisdiction
47-12 of a municipality:
47-13 (1) a building certified by a national, state, or
47-14 local accredited energy efficiency program shall be considered in
47-15 compliance;
47-16 (2) a building with inspections from private
47-17 code-certified inspectors using the energy efficiency chapter of
47-18 the International Residential Code or International Energy
47-19 Conservation Code shall be considered in compliance; and
47-20 (3) a builder who does not have access to either of
47-21 the above methods for a building shall certify compliance using a
47-22 form provided by the laboratory, enumerating the code-compliance
47-23 features of the building.
47-24 Sec. 388.005. ENERGY EFFICIENCY PROGRAMS IN CERTAIN
47-25 POLITICAL SUBDIVISIONS. (a) In this section, "political
47-26 subdivision" means:
48-1 (1) an affected county; or
48-2 (2) any political subdivision other than a school
48-3 district in a nonattainment area or in an affected county.
48-4 (b) Each political subdivision shall implement all energy
48-5 efficiency measures that meet the standards established for a
48-6 contract for energy conservation measures under Section 302.004(b),
48-7 Local Government Code, in order to reduce electricity consumption
48-8 by the existing facilities of the political subdivision.
48-9 (c) Each political subdivision shall establish a goal to
48-10 reduce the electric consumption by the political subdivision by
48-11 five percent each year for five years, beginning January 1, 2002.
48-12 (d) A political subdivision that does not attain the goals
48-13 under Subsection (c) must include in the report required by
48-14 Subsection (e) justification that the political subdivision has
48-15 already implemented all available measures.
48-16 (e) A political subdivision annually shall report to the
48-17 State Energy Conservation Office, on forms provided by that office,
48-18 regarding the political subdivision's efforts and progress under
48-19 this section. The State Energy Conservation Office shall provide
48-20 assistance and information to political subdivisions to help the
48-21 political subdivisions meet the goals set under this section.
48-22 Sec. 388.006. STATE ENERGY CONSERVATION OFFICE EVALUATION.
48-23 The State Energy Conservation Office annually shall provide the
48-24 commission with an evaluation of the effectiveness of state and
48-25 political subdivision energy efficiency programs, including
48-26 programs under this chapter.
49-1 Sec. 388.007. DISTRIBUTION OF INFORMATION AND TECHNICAL
49-2 ASSISTANCE. (a) The laboratory shall make available to builders,
49-3 designers, engineers, and architects code implementation materials
49-4 that explain the requirements of the International Energy
49-5 Conservation Code and the energy efficiency chapter of the
49-6 International Residential Code and that describe methods of
49-7 compliance acceptable to code officials.
49-8 (b) The materials may include software tools, simplified
49-9 prescriptive options, and other materials as appropriate. The
49-10 simplified materials may be designed for projects in which a design
49-11 professional is not involved.
49-12 (c) The laboratory may provide local jurisdictions with
49-13 technical assistance concerning implementation and enforcement of
49-14 the International Energy Conservation Code and the energy
49-15 efficiency chapter of the International Residential Code.
49-16 Sec. 388.008. DEVELOPMENT OF HOME ENERGY RATINGS. (a) The
49-17 laboratory shall develop a standardized report format to be used by
49-18 providers of home energy ratings. The form must be designed to
49-19 give potential buyers information on a structure's energy
49-20 performance, including:
49-21 (1) insulation;
49-22 (2) types of windows;
49-23 (3) heating and cooling equipment;
49-24 (4) water heating equipment;
49-25 (5) additional energy conserving features, if any;
49-26 (6) results of performance measurements of building
50-1 tightness and forced air distribution; and
50-2 (7) an overall rating of probable energy efficiency
50-3 relative to the minimum requirements of the International Energy
50-4 Conservation Code or the energy efficiency chapter of the
50-5 International Residential Code, as appropriate.
50-6 (b) The laboratory shall establish a public information
50-7 program to inform homeowners, sellers, buyers, and others regarding
50-8 home energy ratings.
50-9 (c) The home energy ratings program shall be implemented by
50-10 September 1, 2002.
50-11 CHAPTER 389. EMISSIONS REDUCTION RECOGNITION EFFORTS
50-12 Sec. 389.001. DEFINITION. In this chapter, "commission"
50-13 means the Texas Natural Resource Conservation Commission.
50-14 Sec. 389.002. USE OF CERTAIN INFORMATION FOR FEDERAL
50-15 RECOGNITION OF EMISSIONS REDUCTIONS. The commission, using
50-16 information derived from the reports to the commission under
50-17 Sections 386.205, 388.003(e), and 388.006, shall take all
50-18 appropriate and necessary actions so that emissions reductions
50-19 achieved by means of activities under Chapters 386 and 388 are
50-20 credited by the United States Environmental Protection Agency to
50-21 the appropriate emissions reduction objectives in the state
50-22 implementation plan.
50-23 SECTION 2. Subchapter C, Chapter 151, Tax Code, is amended
50-24 by adding Section 151.0515 to read as follows:
50-25 Sec. 151.0515. TEXAS EMISSIONS REDUCTION PLAN SURCHARGE.
50-26 (a) In this section, "equipment" includes all off-road, heavy-duty
51-1 diesel equipment classified as construction equipment, other than
51-2 implements of husbandry used solely for agricultural purposes,
51-3 including:
51-4 (1) pavers;
51-5 (2) tampers/rammers;
51-6 (3) plate compactors;
51-7 (4) concrete pavers;
51-8 (5) rollers;
51-9 (6) scrapers;
51-10 (7) paving equipment;
51-11 (8) surface equipment;
51-12 (9) signal boards/light plants;
51-13 (10) trenchers;
51-14 (11) bore/drill rigs;
51-15 (12) excavators;
51-16 (13) concrete/industrial saws;
51-17 (14) cement and mortar mixers;
51-18 (15) cranes;
51-19 (16) graders;
51-20 (17) off-highway trucks;
51-21 (18) crushing/processing equipment;
51-22 (19) rough terrain forklifts;
51-23 (20) rubber tire loaders;
51-24 (21) rubber tire tractors/dozers;
51-25 (22) tractors/loaders/backhoes;
51-26 (23) crawler tractors/dozers;
52-1 (24) skid steer loaders;
52-2 (25) off-highway tractors; and
52-3 (26) Dumpsters/tenders.
52-4 (b) In each county in this state, a surcharge is imposed on
52-5 the retail sale, lease, or rental of new or used equipment in an
52-6 amount equal to one percent of the sale price or the lease or
52-7 rental amount.
52-8 (c) The surcharge shall be collected at the same time and in
52-9 the same manner and shall be administered and enforced in the same
52-10 manner as the tax imposed under this subchapter. The comptroller
52-11 shall adopt any additional procedures needed for the collection,
52-12 administration, and enforcement of the surcharge authorized by this
52-13 section and shall deposit all remitted surcharges to the credit of
52-14 the Texas emissions reduction plan fund.
52-15 (d) This section expires September 30, 2008.
52-16 SECTION 3. Subchapter B, Chapter 152, Tax Code, is amended
52-17 by adding Section 152.0215 to read as follows:
52-18 Sec. 152.0215. TEXAS EMISSIONS REDUCTION PLAN SURCHARGE.
52-19 (a) A surcharge is imposed on every retail sale or lease of every
52-20 on-road diesel motor vehicle that is over 14,000 pounds and is of a
52-21 model year 1996 or earlier and that is sold or leased in this
52-22 state. The amount of the surcharge is 2.5 percent of the total
52-23 consideration.
52-24 (b) The surcharge shall be collected at the same time and in
52-25 the same manner and shall be administered and enforced in the same
52-26 manner as the tax imposed under this chapter. The comptroller by
53-1 rule shall adopt any additional procedures needed for the
53-2 collection, administration, and enforcement of the surcharge
53-3 authorized by this section and shall deposit all remitted
53-4 surcharges to the credit of the Texas emissions reduction plan
53-5 fund.
53-6 (c) This section expires September 30, 2008.
53-7 SECTION 4. Section 153.203, Tax Code, is amended to read as
53-8 follows:
53-9 Sec. 153.203. EXCEPTIONS. (a) The tax imposed by this
53-10 subchapter does not apply to:
53-11 (1) diesel fuel delivered by a permitted supplier to a
53-12 common or contract carrier, oceangoing vessel (including ship,
53-13 tanker, or boat), or barge for export from this state, if the
53-14 diesel fuel is moved forthwith outside this state;
53-15 (2) diesel fuel sold by a permitted supplier to the
53-16 federal government for its exclusive use;
53-17 (3) diesel fuel sold or delivered by a permitted
53-18 supplier to another permitted supplier or to the bulk storage
53-19 facility of an agricultural bonded user, or dyed diesel fuel sold
53-20 or delivered by a permitted supplier to the bulk storage facility
53-21 of a dyed diesel fuel bonded user, to the bulk storage facility of
53-22 a diesel tax prepaid user, or to a purchaser who provides a signed
53-23 statement as provided by Section 153.205 of this code, but not
53-24 including a delivery of tax-free diesel fuel into the fuel supply
53-25 tanks of a motor vehicle, except for a motor vehicle owned by the
53-26 federal government;
54-1 (4) diesel fuel sold or delivered by a permitted
54-2 supplier into the storage facility of a permitted aviation fuel
54-3 dealer, from which diesel fuel will be sold or delivered solely
54-4 into the fuel supply tanks of aircraft or aircraft servicing
54-5 equipment;
54-6 (5) diesel fuel sold or delivered by a permitted
54-7 supplier into fuel supply tanks of railway engines, motorboats, or
54-8 refrigeration units or other stationary equipment powered by a
54-9 separate motor from a separate fuel supply tank;
54-10 (6) kerosene when delivered by a permitted supplier
54-11 into a storage facility at a retail business from which all
54-12 deliveries are exclusively for heating, cooking, lighting, or
54-13 similar nonhighway use;
54-14 (7) diesel fuel sold or delivered by one aviation fuel
54-15 dealer to another aviation fuel dealer who will deliver the diesel
54-16 fuel exclusively into the supply tanks of aircraft or aircraft
54-17 servicing equipment;
54-18 (8) diesel fuel sold by a permitted supplier to a
54-19 public school district in this state for its exclusive use;
54-20 (9) diesel fuel sold by a permitted supplier to a
54-21 commercial transportation company that provides public school
54-22 transportation services to a school district under Section 34.008,
54-23 Education Code, and used by the company exclusively to provide
54-24 those services; or
54-25 (10) diesel fuel sold by a permitted supplier to a
54-26 person, other than a political subdivision, who owns, controls,
55-1 operates, or manages a commercial motor vehicle as defined by
55-2 Section 548.001, Transportation Code, if the fuel:
55-3 (A) is delivered exclusively into the fuel
55-4 supply tank of the commercial motor vehicle; and
55-5 (B) is used exclusively to transport passengers
55-6 for compensation or hire between points in this state on a fixed
55-7 route or schedule.
55-8 (b) The tax imposed by this subchapter does not apply to the
55-9 volume of water, fuel ethanol, biodiesel, or mixtures thereof that
55-10 are blended together with taxable diesel fuel when the finished
55-11 product sold or used is clearly identified on the retail pump,
55-12 storage tank, and sales invoice as a combination of diesel fuel and
55-13 water, fuel ethanol, biodiesel, or mixtures thereof.
55-14 SECTION 5. Section 224.153, Transportation Code, is amended
55-15 by adding Subsection (c) to read as follows:
55-16 (c) A motor vehicle displaying the "low-emissions vehicle"
55-17 insignia authorized by Section 502.186 in an easily readable
55-18 location on the back of the vehicle is entitled to travel in a
55-19 preferential car pool or high occupancy vehicle lane designated
55-20 under this section regardless of the number of occupants in the
55-21 vehicle. This subsection expires August 31, 2008.
55-22 SECTION 6. Section 431.073, Transportation Code, is amended
55-23 by adding Subsection (d) to read as follows:
55-24 (d) A motor vehicle displaying the "low-emissions vehicle"
55-25 insignia authorized by Section 502.186 in an easily readable
55-26 location on the back of the vehicle is entitled to travel in a high
56-1 occupancy vehicle lane designated under this section regardless of
56-2 the number of occupants in the vehicle. This subsection expires
56-3 August 31, 2008.
56-4 SECTION 7. Subchapter D, Chapter 502, Transportation Code,
56-5 is amended by adding Section 502.1675 to read as follows:
56-6 Sec. 502.1675. TEXAS EMISSIONS REDUCTION PLAN SURCHARGE.
56-7 (a) In addition to the registration fees charged under Section
56-8 502.167, a surcharge is imposed on the registration of a
56-9 truck-tractor or commercial motor vehicle under that section in an
56-10 amount equal to 10 percent of the total fees due for the
56-11 registration of the truck-tractor or commercial motor vehicle under
56-12 that section.
56-13 (b) The county tax assessor-collector shall remit the
56-14 surcharge collected under this section to the comptroller at the
56-15 time and in the manner prescribed by the comptroller for deposit in
56-16 the Texas emissions reduction plan fund.
56-17 (c) This section expires August 31, 2008.
56-18 SECTION 8. Subchapter D, Chapter 502, Transportation Code,
56-19 is amended by adding Section 502.186 to read as follows:
56-20 Sec. 502.186. "LOW-EMISSIONS VEHICLE" INSIGNIA FOR CERTAIN
56-21 MOTOR VEHICLES. (a) At the time of registration or reregistration
56-22 of the motor vehicle, the department shall issue a specially
56-23 designed "low-emissions vehicle" insignia for a motor vehicle that
56-24 meets qualifications for the light-duty motor vehicle purchase or
56-25 lease incentives under Subchapter D, Chapter 386, Health and Safety
56-26 Code.
57-1 (b) The department shall issue a "low-emissions vehicle"
57-2 insignia under this section without the payment of any additional
57-3 fee to a person who:
57-4 (1) applies to the department on a form provided by
57-5 the department; and
57-6 (2) submits proof that the motor vehicle being
57-7 registered is a vehicle described by Subsection (a).
57-8 (c) This section expires August 31, 2008.
57-9 SECTION 9. Section 548.256, Transportation Code, is amended
57-10 by adding Subsections (c) and (d) to read as follows:
57-11 (c) The inspection station shall collect a fee of $225 for
57-12 each inspection performed under this section and shall remit the
57-13 fee to the department. Of each fee collected, the inspection
57-14 station may retain $5 to cover administrative costs. The
57-15 department shall remit all fees collected under this subsection to
57-16 the comptroller for deposit in the Texas emissions reduction plan
57-17 fund. The fee imposed by this subsection does not apply to an
57-18 inspection performed on a vehicle owned by active duty military
57-19 personnel and their dependents. This subsection expires August 31,
57-20 2008.
57-21 (d) A person who is an officer, enlisted person, selectee,
57-22 or draftee of the Army, Army Reserve, Army National Guard, Air
57-23 National Guard, Air Force, Air Force Reserve, Navy, Navy Reserve,
57-24 Marine Corps, Marine Corps Reserve, Coast Guard, or Coast Guard
57-25 Reserve of the United States, and the spouse and children of such
57-26 an officer, enlisted person, selectee, or draftee is exempted from
58-1 the requirements of Subsection (c).
58-2 SECTION 10. Subchapter H, Chapter 548, Transportation Code,
58-3 is amended by adding Section 548.5055 to read as follows:
58-4 Sec. 548.5055. TEXAS EMISSION REDUCTION PLAN FEE. (a) In
58-5 addition to other fees required by this subchapter, to fund the
58-6 Texas emissions reduction plan established under Chapter 386,
58-7 Health and Safety Code, the department shall collect for every
58-8 commercial motor vehicle required to be inspected under Subchapter
58-9 D, a fee of $10.
58-10 (b) The department shall remit fees collected under this
58-11 section to the comptroller at the time and in the manner prescribed
58-12 by the comptroller for deposit in the Texas emission reduction plan
58-13 fund.
58-14 (c) This section expires August 31, 2008.
58-15 SECTION 11. (a) Not later than the 45th day after the
58-16 effective date of this Act, the Texas Natural Resource Conservation
58-17 Commission shall adopt all necessary rules required to implement
58-18 programs established under this Act.
58-19 (b) Not later than the 45th day after the effective date of
58-20 this Act, the comptroller of public accounts shall adopt all rules
58-21 necessary to enable the comptroller to carry out the comptroller's
58-22 duties under this Act.
58-23 (c) Not later than the 45th day after the effective date of
58-24 this Act, the Public Utility Commission of Texas shall adopt all
58-25 rules necessary to carry out its duties under this Act.
58-26 (d) A municipality required to establish procedures under
59-1 Subsection (c), Section 388.003, Health and Safety Code, as added
59-2 by this Act, shall establish the procedures not later than
59-3 September 1, 2002.
59-4 SECTION 12. (a) Except as provided by Subsection (b) of
59-5 this section, not later than August 1, 2001, if this Act takes
59-6 immediate effect, or the effective date of this Act if this Act
59-7 does not take immediate effect, the Texas Natural Resource
59-8 Conservation Commission and the comptroller of public accounts
59-9 shall adopt rules necessary to implement the diesel emissions
59-10 reduction incentive program established under Subchapter C, Chapter
59-11 386, Health and Safety Code, as added by this Act.
59-12 (b) Not later than September 1, 2001, the Texas Natural
59-13 Resource Conservation Commission, as required by Section 386.104,
59-14 Health and Safety Code, as added by this Act, shall adopt criteria
59-15 for setting priorities for projects eligible for grants under
59-16 Subchapter C, Chapter 386, Health and Safety Code, as added by this
59-17 Act.
59-18 (c) Not later than August 1, 2002, the Texas Natural
59-19 Resource Conservation Commission and the comptroller of public
59-20 accounts shall adopt rules necessary to implement the motor vehicle
59-21 purchase or lease incentive program established under Subchapter D,
59-22 Chapter 386, Health and Safety Code, as added by this Act.
59-23 (d) Not later than August 1, 2002, the Texas Natural
59-24 Resource Conservation Commission shall publish the first annual
59-25 list of vehicles eligible for light-duty motor vehicle purchase or
59-26 lease incentives, as required by Section 386.156, Health and Safety
60-1 Code, as added by this Act.
60-2 SECTION 13. The vehicle purchase or lease incentives
60-3 authorized by Sections 386.113 and 386.153, Health and Safety Code,
60-4 as added by this Act, apply only to the sale or lease of a vehicle
60-5 that occurs on or after August 1, 2002.
60-6 SECTION 14. (a) The Texas Natural Resource Conservation
60-7 Commission shall develop and sponsor a contest in the state's
60-8 public schools to select the best student design for the
60-9 "low-emissions vehicle" insignia authorized by Section 502.186,
60-10 Transportation Code, as added by this Act. Not later than January
60-11 1, 2002, the commission shall provide to each public school in the
60-12 state a contest packet containing rules and procedures for
60-13 participating in the contest, an explanation of the criteria the
60-14 commission will use in selecting the best design, and a deadline
60-15 for the submission of student designs. The commission shall select
60-16 and announce the winner of the contest not later than the 30th day
60-17 after the contest submission deadline. The commission may
60-18 publicize and otherwise promote the contest and the winning design.
60-19 (b) The Texas Natural Resource Conservation Commission shall
60-20 make the "low-emissions vehicle" insignia available to the county
60-21 tax assessor-collector of each county in the state not later than
60-22 the 45th day after the date on which the winning design is selected
60-23 and announced. The county tax assessor-collector of each county in
60-24 the state shall begin issuing the "low-emissions vehicle" insignia
60-25 to persons who qualify for the insignia not later than the 10th
60-26 working day after the date the insignia are available.
61-1 SECTION 15. (a) In making the initial appointments to the
61-2 Texas Emissions Reduction Plan Advisory Board as created by Section
61-3 386.058, Health and Safety Code, as added by this Act, the
61-4 appointing authorities, by mutual agreement, shall designate their
61-5 appointees so that seven members' terms expire February 1, 2002,
61-6 and eight members' terms expire February 1, 2003.
61-7 (b) Appointments to the Texas Emissions Reduction Plan
61-8 Advisory Board shall be made not later than July 1, 2001, if this
61-9 Act takes immediate effect, or not later than the effective date of
61-10 this Act, if this Act does not take immediate effect.
61-11 SECTION 16. As soon as practicable after the effective date
61-12 of this Act, the governor shall appoint members to the Texas
61-13 Council on Environmental Technology, as created by Section 387.002,
61-14 Health and Safety Code, as added by this Act. In making the
61-15 initial appointments, the governor shall designate the appointees
61-16 so that three members' terms expire February 1, 2003, four members'
61-17 terms expire February 1, 2005, and four members' terms expire
61-18 February 1, 2007.
61-19 SECTION 17. Not later than the 30th day after the adoption
61-20 of rules governing the new technology research and development
61-21 program established under Chapter 387, Health and Safety Code, as
61-22 added by this Act, the Texas Council on Environmental Technology
61-23 shall issue requests for proposals for projects to be funded under
61-24 the new technology research and development program.
61-25 SECTION 18. Not later than October 1, 2001, the Texas
61-26 Natural Resource Conservation Commission shall submit to the United
62-1 States Environmental Protection Agency a revision to the state
62-2 implementation plan that deletes the requirements of the
62-3 construction shift and the early purchase of Tier 2 and Tier 3
62-4 equipment and adds the provisions of this Act. The commission
62-5 shall include with the revision a report on the effectiveness of
62-6 the Texas emissions reduction plan in delivering emissions
62-7 reductions to the degree sufficient to replace the requirements of
62-8 the construction shift and the early purchase of Tier 2 and Tier 3
62-9 equipment.
62-10 SECTION 19. (a) Notwithstanding any Act of the 77th
62-11 Legislature, Regular Session, 2001, that purports to abolish all
62-12 funds and accounts created or re-created in the state treasury by
62-13 another Act of the 77th Legislature, Regular Session, 2001, the
62-14 Texas emissions reduction plan fund created by Subchapter F,
62-15 Chapter 386, Health and Safety Code, as added by this Act, and the
62-16 environmental research fund created by Section 387.008, Health and
62-17 Safety Code, as added by this Act, are accounts in the general
62-18 revenue fund and the accounts and money deposited to the accounts
62-19 are exempt from any Act of the 77th Legislature, Regular Session,
62-20 2001, that purports to abolish all funds and accounts created or
62-21 re-created by another Act of the 77th Legislature, Regular Session,
62-22 2001, and to require the deposit of money that would be deposited
62-23 to the credit of a special account or fund be deposited to the
62-24 credit of the unobligated portion of the general revenue fund
62-25 unless the fund, account, or dedication is exempted under that Act.
62-26 (b) This section prevails over any other Act of the 77th
63-1 Legislature, Regular Session, 2001, regardless of the relative
63-2 dates of enactment, that purports to abolish all funds and accounts
63-3 created or re-created in the state treasury by another Act of the
63-4 77th Legislature, Regular Session, 2001, and to require the deposit
63-5 of money that would be deposited to the credit of a special account
63-6 or fund be deposited to the credit of the unobligated portion of
63-7 the general revenue fund unless the fund, account, or dedication is
63-8 exempted under that Act.
63-9 SECTION 20. Section 386.002, Health and Safety Code, as
63-10 added by this Act notwithstanding, the Texas Natural Resource
63-11 Conservation Commission shall submit the final biennial plan report
63-12 required by Section 386.057, Health and Safety Code, as added by
63-13 this Act, to the legislature not later than December 1, 2008.
63-14 SECTION 21. The expiration of Sections 151.0515 and
63-15 152.0215, Tax Code, as added by this Act, does not affect an
63-16 obligation that was incurred, a violation that occurred, or an
63-17 offense that was committed under those sections before the
63-18 expiration date of those sections. An obligation incurred, a
63-19 violation that occurred, or an offense committed before the
63-20 expiration date of those sections is governed by the law in effect
63-21 at the time the obligation was incurred, the violation occurred, or
63-22 the offense was committed, and the former law is continued in
63-23 effect after the expiration date for that purpose. For purposes of
63-24 this section, a violation occurs or an offense is committed before
63-25 the expiration date of those sections if any element of the
63-26 violation or offense occurs before that date.
64-1 SECTION 22. This Act takes effect immediately if it receives
64-2 a vote of two-thirds of all the members elected to each house, as
64-3 provided by Section 39, Article III, Texas Constitution. If this
64-4 Act does not receive the vote necessary for immediate effect, this
64-5 Act takes effect September 1, 2001.
_______________________________ _______________________________
President of the Senate Speaker of the House
I hereby certify that S.B. No. 5 passed the Senate on
April 17, 2001, by the following vote: Yeas 28, Nays 1, two
present not voting; and that the Senate concurred in House
amendments on May 24, 2001, by the following vote: Yeas 30,
Nays 0, one present not voting.
_______________________________
Secretary of the Senate
I hereby certify that S.B. No. 5 passed the House, with
amendments, on May 22, 2001, by a non-record vote.
_______________________________
Chief Clerk of the House
Approved:
_______________________________
Date
_______________________________
Governor