77R16337 JJT-D
By Brown, et al. S.B. No. 5
Substitute the following for S.B. No. 5:
By Geren C.S.S.B. No. 5
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the Texas emissions reduction plan; providing a
1-3 penalty.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. (a) It is the intent of the legislature to give
1-6 the Texas Natural Resource Conservation Commission additional tools
1-7 to:
1-8 (1) assure that the air in this state is safe to
1-9 breathe and meets minimum federal standards established under the
1-10 federal Clean Air Act (42 U.S.C. Section 7407);
1-11 (2) develop multipollutant approaches to solving the
1-12 state's environmental problems; and
1-13 (3) adequately fund research and development that will
1-14 make the state a leader in new technologies that can solve the
1-15 state's environmental problems while creating new business and
1-16 industry in the state.
1-17 (b) Subtitle C, Title 5, Health and Safety Code, is amended
1-18 by adding Chapters 386, 387, 388, and 389 to read as follows:
1-19 CHAPTER 386. TEXAS EMISSIONS REDUCTION PLAN
1-20 SUBCHAPTER A. GENERAL PROVISIONS
1-21 Sec. 386.001. DEFINITIONS. In this chapter:
1-22 (1) "Advisory board" means the Texas Emissions
1-23 Reduction Plan Advisory Board.
1-24 (2) "Affected county" includes:
2-1 (A) Bastrop County;
2-2 (B) Bexar County;
2-3 (C) Caldwell County;
2-4 (D) Comal County;
2-5 (E) Ellis County;
2-6 (F) Gregg County;
2-7 (G) Guadalupe County;
2-8 (H) Harrison County;
2-9 (I) Hays County;
2-10 (J) Johnson County;
2-11 (K) Kaufman County;
2-12 (L) Nueces County;
2-13 (M) Parker County;
2-14 (N) Rockwall County;
2-15 (O) Rusk County;
2-16 (P) San Patricio County;
2-17 (Q) Smith County;
2-18 (R) Travis County;
2-19 (S) Upshur County;
2-20 (T) Victoria County;
2-21 (U) Williamson County; and
2-22 (V) Wilson County.
2-23 (3) "Commission" means the Texas Natural Resource
2-24 Conservation Commission.
2-25 (4) "Council" means the Texas Council on Environmental
2-26 Technology.
2-27 (5) "Fund" means the Texas emissions reduction plan
3-1 fund.
3-2 (6) "Incremental cost" means the cost of an
3-3 applicant's project less a baseline cost that would otherwise be
3-4 incurred by an applicant in the normal course of business.
3-5 Incremental costs may include added lease or fuel costs as well as
3-6 additional capital costs.
3-7 (7) "Laboratory" means the Energy Systems Laboratory
3-8 at the Texas Engineering Experiment Station of The Texas A&M
3-9 University System.
3-10 (8) "Nonattainment area" means an area so designated
3-11 under Section 107(d) of the federal Clean Air Act (42 U.S.C.
3-12 Section 7407), as amended.
3-13 (9) "Plan" means the Texas emissions reduction plan.
3-14 (10) "Site" means the total of all stationary sources
3-15 located on one or more contiguous or adjacent properties, which are
3-16 under common control of the same person or persons under common
3-17 control.
3-18 (11) "Utility commission" means the Public Utility
3-19 Commission of Texas.
3-20 Sec. 386.002. EXPIRATION. This chapter expires August 31,
3-21 2008.
3-22 (Sections 386.003-386.050 reserved for expansion
3-23 SUBCHAPTER B. TEXAS EMISSIONS REDUCTION PLAN
3-24 Sec. 386.051. TEXAS EMISSIONS REDUCTION PLAN. (a) The
3-25 utility commission, the commission, the comptroller, and the
3-26 council shall establish and administer the Texas emissions
3-27 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
4-27 United States Environmental Protection Agency to the appropriate
5-1 emissions reduction objectives in the state implementation plan.
5-2 (b) Appropriate commission objectives include:
5-3 (1) achieving maximum reductions in oxides of nitrogen
5-4 to demonstrate compliance with the state implementation plan;
5-5 (2) preventing areas of the state from being in
5-6 violation of national ambient air quality standards; and
5-7 (3) achieving cost-saving and multiple benefits by
5-8 reducing emissions of other pollutants.
5-9 Sec. 386.053. GUIDELINES AND CRITERIA. (a) The commission
5-10 shall adopt grant guidelines and criteria consistent with the
5-11 requirements of this chapter.
5-12 (b) Guidelines must include protocols to calculate projected
5-13 emissions reductions, project cost-effectiveness, and safeguards to
5-14 ensure that funded projects generate emissions reductions not
5-15 otherwise required by state or federal law.
5-16 (c) The commission shall make draft guidelines and criteria
5-17 available to the public and the United States Environmental
5-18 Protection Agency before the 45th day preceding the date of final
5-19 adoption and shall hold at least one public meeting to consider
5-20 public comments on the draft guidelines and criteria before final
5-21 adoption.
5-22 (d) The commission may propose revisions to the guidelines
5-23 and criteria adopted under this section as necessary to improve the
5-24 ability of the plan to achieve its goals. Revisions may include,
5-25 among other changes, adding additional pollutants or adjusting
5-26 eligible program categories, as appropriate, to ensure that
5-27 incentives established under this chapter achieve the maximum
6-1 possible emissions reductions. The commission shall make a
6-2 proposed revision available to the public before the 45th day
6-3 preceding the date of final adoption of the revision and shall hold
6-4 at least one public meeting to consider public comments on the
6-5 proposed revision before final adoption.
6-6 (e) Because the legislature finds that the current state of
6-7 air quality in the state jeopardizes the state's ability to meet
6-8 federal air quality requirements, the commission and the
6-9 comptroller may adopt emergency rules under Section 2001.034,
6-10 Government Code, with abbreviated notice, to carry out any
6-11 rulemaking necessary to implement this chapter.
6-12 (f) Except as provided by Subsection (e), the rulemaking
6-13 requirements of Chapter 2001, Government Code, do not apply to the
6-14 adoption or revision of guidelines and criteria under this section.
6-15 Sec. 386.054. MONITORING PROCEDURES. (a) The commission
6-16 shall develop procedures for monitoring whether the emissions
6-17 reductions projected for projects awarded grants under this chapter
6-18 are actually achieved. Monitoring procedures may include project
6-19 reviews and contract requirements that the grant recipient provide
6-20 information annually about the project. If the commission requires
6-21 an annual report, the report shall contain a minimum amount of
6-22 information required from a recipient and the report format shall
6-23 be simple and convenient.
6-24 (b) Monitoring and reviewing procedures must be sufficient
6-25 to enable emissions reductions generated by funded projects to be
6-26 fully credited to air quality plans.
6-27 (c) The commission may revise monitoring and review
7-1 procedures from time to time as necessary or appropriate to enhance
7-2 the effectiveness of the plan.
7-3 Sec. 386.055. AVAILABILITY OF EMISSIONS REDUCTION CREDITS
7-4 GENERALLY. (a) A project funded under a program established under
7-5 this chapter may not be used for credit under any state or federal
7-6 emissions reduction credit averaging, banking, or trading program.
7-7 (b) An emissions reduction generated by a program
7-8 established under this chapter:
7-9 (1) may not be used as a marketable emissions
7-10 reduction credit or, except as provided by Section 386.056, to
7-11 offset any emissions reduction obligation; and
7-12 (2) may be used to demonstrate conformity with the
7-13 state implementation plan.
7-14 (c) A project involving a new emissions reduction measure
7-15 that would otherwise generate marketable credits under state or
7-16 federal emissions reduction credit averaging, banking, or trading
7-17 programs is not eligible for funding under a program established
7-18 under this chapter unless:
7-19 (1) the project includes the transfer of the
7-20 reductions that would otherwise be marketable credits to the state
7-21 implementation plan or the owner or operator as provided by Section
7-22 386.056; and
7-23 (2) the reductions are permanently retired.
7-24 Sec. 386.056. AVAILABILITY OF EMISSIONS REDUCTIONS IN
7-25 CERTAIN NONATTAINMENT AREAS. (a) An owner or operator of a site
7-26 located in the Houston-Galveston or Dallas-Fort Worth nonattainment
7-27 area may use emissions reductions generated by a program
8-1 established under this chapter to offset the requirements of
8-2 commission rules relating to control of air pollution from oxides
8-3 of nitrogen if:
8-4 (1) the owner or operator of the site contributes to
8-5 the fund $75,000 for each ton of emissions that is used, not to
8-6 exceed 25 tons annually and not to exceed one-half ton per day;
8-7 (2) the owner or operator of the site demonstrates to
8-8 the commission's satisfaction that the site will be in full
8-9 compliance with the commission's emissions reduction rules not
8-10 later than the fifth anniversary of the date on which the emissions
8-11 reductions would otherwise be required;
8-12 (3) emissions from the site are reduced by at least 80
8-13 percent from the established baseline; and
8-14 (4) the commission approves a petition by the owner or
8-15 operator that demonstrates that it is technically infeasible to
8-16 comply with the commission's emissions reduction requirements above
8-17 80 percent.
8-18 (b) Funds collected under this section shall be used to
8-19 generate emissions reductions needed to meet the commission's
8-20 attainment demonstration.
8-21 (c) The commission shall verify that emissions reductions
8-22 generated from funds collected under this section occur in the same
8-23 nonattainment area in which the site that purchased the emissions
8-24 reductions is located.
8-25 (d) The commission shall assure that the emissions
8-26 reductions funded under the programs authorized by this subchapter
8-27 used to offset commission requirements under this section benefit
9-1 the community in which the site using the emissions reductions is
9-2 located. If there are no eligible emissions reduction projects
9-3 within the community, the commission may authorize projects in an
9-4 adjacent community. In this subsection, "community" means a
9-5 justice of the peace precinct.
9-6 Sec. 386.057. REVIEW AND REPORTING REQUIREMENTS. (a) The
9-7 commission, in consultation with the advisory board, annually shall
9-8 review programs established under the plan, including each project
9-9 funded under the plan, the amount granted for the project, the
9-10 emissions reductions attributable to the project, and the
9-11 cost-effectiveness of the project.
9-12 (b) Not later than December 1, 2002, and not later than
9-13 December 1 of each subsequent second year, the commission, in
9-14 consultation with the advisory board, shall publish and submit to
9-15 the legislature a biennial plan report. The report must include:
9-16 (1) the information included in the annual reviews
9-17 conducted under Subsection (a);
9-18 (2) specific information for individual projects as
9-19 required by Subsection (c);
9-20 (3) information contained in reports received under
9-21 Sections 386.205, 388.003(e), and 388.006; and
9-22 (4) a summary of the commission's activities under
9-23 Section 386.052.
9-24 (c) For projects funded as part of the infrastructure
9-25 program under Subchapter C, the report must:
9-26 (1) describe and evaluate:
9-27 (A) the infrastructure facilities funded under
10-1 that subchapter;
10-2 (B) the degree to which the funded facilities
10-3 are supporting on-road or non-road diesel projects;
10-4 (C) the amount of fuel or electricity dispensed
10-5 for each facility; and
10-6 (D) associated emissions reductions and
10-7 cost-effectiveness; and
10-8 (2) make a finding regarding the need for additional
10-9 appropriations from the fund to improve the ability of the program
10-10 to achieve its goals.
10-11 (d) The report must:
10-12 (1) account for money received, money disbursed as
10-13 grants, money reserved for grants based on project approvals, and
10-14 any recommended transfer of money between allocations and must
10-15 estimate future demand for grant funds under the plan;
10-16 (2) describe the overall effectiveness of the plan in
10-17 delivering the emissions reductions that may be credited to air
10-18 quality plans;
10-19 (3) evaluate the effectiveness of the plan in
10-20 soliciting and evaluating project applications, providing awards in
10-21 a timely manner, and monitoring project implementation;
10-22 (4) describe adjustments made to project selection
10-23 criteria and recommend any further needed changes or adjustments to
10-24 the grant programs, including changes in grant award criteria,
10-25 administrative procedures, or statutory provisions that would
10-26 enhance the plan's effectiveness and efficiency;
10-27 (5) describe adjustments made to the maximum
11-1 cost-effectiveness amount and award amount;
11-2 (6) evaluate the benefits of addressing additional
11-3 pollutants as part of the plan; and
11-4 (7) include legislative recommendations necessary to
11-5 improve the effectiveness of the plan.
11-6 (e) The commission shall request public comment and hold a
11-7 public meeting on each draft biennial report and, in producing a
11-8 final biennial report, shall consider and respond to all
11-9 significant comments received.
11-10 Sec. 386.058. TEXAS EMISSIONS REDUCTION PLAN ADVISORY BOARD.
11-11 (a) The Texas Emissions Reduction Plan Advisory Board consists of
11-12 15 members appointed as provided by this section and seven ex
11-13 officio members as provided by this section.
11-14 (b) The governor shall appoint to the advisory board:
11-15 (1) a representative of the trucking industry;
11-16 (2) a representative of the air conditioning
11-17 manufacturing industry;
11-18 (3) a representative of the electric utility industry;
11-19 (4) a representative of regional transportation; and
11-20 (5) a representative of the Texas Council on
11-21 Environmental Technology.
11-22 (c) The lieutenant governor shall appoint to the advisory
11-23 board:
11-24 (1) a representative of the engine manufacturing
11-25 industry;
11-26 (2) a representative of the air transportation
11-27 industry;
12-1 (3) a representative of the environmental community;
12-2 (4) a representative of the fuel cell industry; and
12-3 (5) a representative of the energy-efficient
12-4 construction industry.
12-5 (d) The speaker of the house of representatives shall
12-6 appoint to the advisory board:
12-7 (1) a representative of consumer groups;
12-8 (2) a representative of the construction industry;
12-9 (3) a representative of the automobile industry;
12-10 (4) a representative of the agriculture industry; and
12-11 (5) a representative of the fuel industry.
12-12 (e) Appointed members of the advisory board serve staggered
12-13 two-year terms. The terms of seven appointed members expire
12-14 February 1 of each even-numbered year. The terms of eight
12-15 appointed members expire February 1 of each odd-numbered year. An
12-16 appointed member may be reappointed to a subsequent term.
12-17 (f) Ex officio members of the advisory board are:
12-18 (1) the presiding officer of the senate standing
12-19 committee having primary jurisdiction over matters related to
12-20 natural resources;
12-21 (2) the presiding officer of the house standing
12-22 committee having primary jurisdiction over matters related to
12-23 environmental regulation;
12-24 (3) a representative of the commission, designated by
12-25 the executive director;
12-26 (4) a representative of the General Land Office,
12-27 designated by the Commissioner of the General Land Office;
13-1 (5) a representative of the comptroller's office,
13-2 designated by the comptroller;
13-3 (6) a representative of the Railroad Commission of
13-4 Texas, designated by the presiding officer of the agency; and
13-5 (7) a representative of the United States
13-6 Environmental Protection Agency's Region 6 office, designated by
13-7 the United States Environmental Protection Agency Region 6
13-8 administrator.
13-9 (g) The advisory board annually shall elect a presiding
13-10 officer.
13-11 (h) The advisory board shall review the plan and shall
13-12 recommend to the commission changes to revenue sources or financial
13-13 incentives or any legislative, regulatory, or budgetary changes
13-14 needed.
13-15 (i) The commission shall provide necessary staff support to
13-16 the advisory board.
13-17 (Sections 386.059-386.100 reserved for expansion
13-18 SUBCHAPTER C. DIESEL EMISSIONS REDUCTION INCENTIVE PROGRAM
13-19 Sec. 386.101. DEFINITIONS. In this subchapter:
13-20 (1) "Cost-effectiveness" means the total dollar amount
13-21 expended divided by the total number of tons of oxides of nitrogen
13-22 emissions reduction attributable to that expenditure.
13-23 Cost-effectiveness for the program as a whole and for particular
13-24 projects under the program is calculated as provided by Sections
13-25 386.105 and 386.106.
13-26 (2) "Fuel cell" means an electrochemical device that
13-27 uses fuel and oxidant to continuously generate electricity.
14-1 (3) "Motor vehicle" means a self-propelled device
14-2 designed for transporting persons or property on a public highway
14-3 that is required to be registered under Chapter 502, Transportation
14-4 Code.
14-5 (4) "Non-road diesel" means a vehicle or piece of
14-6 equipment, excluding a motor vehicle or on-road diesel or an
14-7 implement of husbandry that is used exclusively for agricultural
14-8 purposes, that is powered by a non-road engine, including:
14-9 (A) non-road nonrecreational equipment and
14-10 vehicles;
14-11 (B) construction equipment;
14-12 (C) locomotives;
14-13 (D) marine vessels; and
14-14 (E) other high-emitting diesel engine categories
14-15 established by the commission.
14-16 (5) "Non-road engine" means an internal combustion
14-17 engine that is:
14-18 (A) in or on a piece of equipment that is
14-19 self-propelled or that propels itself and performs another
14-20 function, excluding a vehicle that is used solely for competition;
14-21 (B) in or on a piece of equipment that is
14-22 intended to be propelled while performing its function; or
14-23 (C) designed to be and capable of being carried
14-24 or moved from one location to another.
14-25 (6) "On-road diesel" means an on-road diesel-powered
14-26 motor vehicle that has a gross vehicle weight rating of 10,000
14-27 pounds or more.
15-1 (7) "Program" means the diesel emissions reduction
15-2 incentive program established under this subchapter.
15-3 (8) "Qualifying fuel" includes any liquid or gaseous
15-4 fuel or additives registered or verified by the United States
15-5 Environmental Protection Agency that is ultimately dispensed into a
15-6 motor vehicle or on-road or non-road diesel that provides
15-7 reductions of emissions of oxides of nitrogen beyond reductions
15-8 required by state or federal law.
15-9 (9) "Repower" means to replace an old engine powering
15-10 an on-road or non-road diesel with:
15-11 (A) a new engine that emits at least 30 percent
15-12 less than the oxides of nitrogen emissions standard required by
15-13 federal regulation for the current model year for that engine;
15-14 (B) an engine manufactured later than 1987 that
15-15 emits at least 30 percent less than the oxides of nitrogen
15-16 emissions standard emitted by a new engine certified to the
15-17 baseline oxides of nitrogen emissions standard for that engine;
15-18 (C) an engine manufactured before 1988 that
15-19 emits not more than 50 percent of the oxides of nitrogen emissions
15-20 standard emitted by a new engine certified to the baseline oxides
15-21 of nitrogen emissions standard for that engine; or
15-22 (D) electric motors, drives, or fuel cells.
15-23 (10) "Retrofit" means to equip an engine and fuel
15-24 system with new emissions-reducing parts or technology verified by
15-25 the United States Environmental Protection Agency after manufacture
15-26 of the original engine and fuel system.
15-27 Sec. 386.102. PROGRAM. (a) The commission shall establish
16-1 and administer a diesel emissions reduction incentive program.
16-2 Under the program, the commission shall provide grants for eligible
16-3 projects to offset the incremental cost of projects that reduce
16-4 emissions of oxides of nitrogen from high-emitting diesel sources
16-5 in nonattainment areas and affected counties of the state. The
16-6 commission shall determine the eligibility of projects.
16-7 (b) Projects that may be considered for a grant under the
16-8 program include:
16-9 (1) purchase or lease of non-road diesels;
16-10 (2) emissions-reducing retrofit projects for on-road
16-11 or non-road diesels;
16-12 (3) emissions-reducing repower projects for on-road or
16-13 non-road diesels;
16-14 (4) purchase and use of emissions-reducing add-on
16-15 equipment for on-road or non-road diesels;
16-16 (5) development and demonstration of practical,
16-17 low-emissions retrofit technologies, repower options, and advanced
16-18 technologies for on-road or non-road diesels with lower emissions
16-19 of oxides of nitrogen;
16-20 (6) use of qualifying fuel; and
16-21 (7) implementation of infrastructure projects.
16-22 (c) A project listed in Subsection (b) is not eligible if it
16-23 is required by any state or federal law, rule or regulation,
16-24 memorandum of agreement, or other legally binding document. This
16-25 subsection does not apply to:
16-26 (1) an otherwise qualified project, regardless of the
16-27 fact that the state implementation plan assumes that the change in
17-1 equipment, vehicles, or operations will occur, if on the date the
17-2 grant is awarded the change is not required by any state or federal
17-3 law, rule or regulation, memorandum of agreement, or other legally
17-4 binding document; or
17-5 (2) the purchase of an on-road diesel or equipment
17-6 required only by local law or regulation or by corporate or
17-7 controlling board policy of a public or private entity.
17-8 Sec. 386.103. APPLICATION FOR GRANT. (a) Any person as
17-9 defined by Section 382.003 that owns one or more on-road or
17-10 non-road diesels that operate primarily within a nonattainment area
17-11 or affected county of this state or that otherwise contributes to
17-12 the state inventory of emissions of oxides of nitrogen may apply
17-13 for a grant under the program.
17-14 (b) An application for a grant under this subchapter must be
17-15 made on an application provided by the commission and must contain
17-16 information required by the commission, including:
17-17 (1) a detailed description of the proposed project;
17-18 (2) information necessary for the commission to
17-19 determine whether the project meets eligibility requirements for
17-20 the type of project proposed, including a statement of the amounts
17-21 of any other public financial assistance the project will receive;
17-22 and
17-23 (3) other information the commission may require.
17-24 Sec. 386.104. ELIGIBILITY REQUIREMENTS. (a) The commission
17-25 shall establish criteria for setting priorities for projects
17-26 eligible to receive grants under this subchapter. The commission
17-27 shall review and may modify the criteria and priorities as
18-1 appropriate.
18-2 (b) A proposed project as described in Section 386.102 must
18-3 meet the requirements of this section to be eligible for a grant
18-4 under the program.
18-5 (c) For a proposed project as described by Section
18-6 386.102(b), other than a project involving a marine vessel or
18-7 engine, not less than 75 percent of vehicle miles traveled or hours
18-8 of operation projected for the five years immediately following the
18-9 award of a grant must be projected to take place in a nonattainment
18-10 area or affected county of this state. For a proposed project
18-11 involving a marine vessel or engine, the vessel or engine must be
18-12 operated in the intercoastal waterways or bays adjacent to a
18-13 nonattainment area or affected county of this state for a
18-14 sufficient amount of time over the lifetime of the project, as
18-15 determined by the commission, to meet the cost-effectiveness
18-16 requirements of Section 386.105.
18-17 (d) Each proposed project must meet the cost-effectiveness
18-18 requirements of Sections 386.105 and 386.106.
18-19 (e) A proposed repower project must exceed commission
18-20 requirements relating to baseline emissions levels of the engines
18-21 being replaced under the project.
18-22 (f) A proposed retrofit, repower, or add-on equipment
18-23 project must document, in a manner acceptable to the commission, a
18-24 reduction in emissions of oxides of nitrogen of at least 30 percent
18-25 compared with the baseline emissions adopted by the commission for
18-26 the relevant engine year and application. After study of available
18-27 emissions reduction technologies, after public notice and comment,
19-1 and after consultation with the advisory board, the commission may
19-2 revise the minimum percentage reduction in emissions of oxides of
19-3 nitrogen required by this subsection to improve the ability of the
19-4 program to achieve its goals.
19-5 (g) If a baseline emissions standard does not exist for
19-6 on-road or non-road diesels in a particular category, the
19-7 commission, for purposes of this subchapter, shall establish an
19-8 appropriate baseline emissions level for comparison purposes.
19-9 (h) The commission may approve payments to offset the
19-10 incremental cost, over the expected lifetime of the motor vehicle
19-11 or on-road or non-road diesel, of the use of qualifying fuel in a
19-12 motor vehicle or on-road or non-road diesel if the proposed project
19-13 as a whole, including the incremental fuel cost, meets the
19-14 requirements of this subchapter. The commission shall develop an
19-15 appropriate method for converting incremental fuel costs over the
19-16 lifetime of the motor vehicle or on-road or non-road diesel into an
19-17 initial cost for purposes of determining cost-effectiveness as
19-18 required by Section 386.105.
19-19 Sec. 386.105. CALCULATION OF COST-EFFECTIVENESS. (a) In
19-20 calculating cost-effectiveness, one-time grants of money at the
19-21 beginning of a project shall be annualized using a time value of
19-22 public funds or discount rate determined for each project by the
19-23 commission, taking into account the interest rate on bonds,
19-24 interest earned by state funds, and other factors the commission
19-25 considers appropriate.
19-26 (b) The commission shall establish reasonable methodologies
19-27 for evaluating project cost-effectiveness consistent with
20-1 Subsection (a) and with accepted methods.
20-2 (c) The commission shall develop protocols for calculating
20-3 oxides of nitrogen emissions reductions not otherwise required by
20-4 state or federal law in nonattainment areas and affected counties
20-5 of this state from representative project types over the life of
20-6 the projects.
20-7 (d) The commission may include in cost-effectiveness
20-8 determinations only reductions in oxides of nitrogen emissions that
20-9 are achieved in nonattainment areas and affected counties of this
20-10 state.
20-11 Sec. 386.106. COST-EFFECTIVENESS CRITERIA; DETERMINATION OF
20-12 GRANT AMOUNT. (a) Except as provided by Section 386.107, the
20-13 commission may not award a grant for a proposed project the
20-14 cost-effectiveness of which, calculated in accordance with Section
20-15 386.105 and criteria developed under that section, exceeds $13,000
20-16 per ton of oxides of nitrogen emissions reduced in the
20-17 nonattainment area or affected county for which the project is
20-18 proposed. This subsection does not restrict commission authority
20-19 under other law to require emissions reductions with a
20-20 cost-effectiveness that exceeds $13,000 per ton.
20-21 (b) The commission may not award a grant that, net of taxes,
20-22 provides an amount that exceeds the incremental cost of the
20-23 proposed project.
20-24 (c) The commission shall adopt guidelines for capitalizing
20-25 incremental lease costs so those costs may be offset by a grant
20-26 under this subchapter.
20-27 (d) In determining the amount of a grant under this
21-1 subchapter, the commission shall reduce the incremental cost of a
21-2 proposed new purchase, lease, retrofit, repower, or add-on
21-3 equipment project by the value of any existing financial incentive
21-4 that directly reduces the cost of the proposed project, including
21-5 tax credits or deductions, other grants, or any other public
21-6 financial assistance.
21-7 Sec. 386.107. ADJUSTMENT TO MAXIMUM COST-EFFECTIVENESS
21-8 AMOUNT AND AWARD AMOUNT. After study of available emissions
21-9 reduction technologies and costs and after public notice and
21-10 comment, the commission, in consultation with the advisory board,
21-11 may change the values of the maximum grant award criteria
21-12 established in Section 386.106 to account for inflation or to
21-13 improve the ability of the program to achieve its goals.
21-14 Sec. 386.108. INFRASTRUCTURE PROJECTS. (a) The commission
21-15 shall provide funding under Section 386.252(a)(1) for
21-16 infrastructure projects.
21-17 (b) To implement the requirement of Subsection (a), the
21-18 commission shall:
21-19 (1) solicit applications for a balanced mix of
21-20 projects involving fueling and electrification infrastructure that
21-21 is linked to motor vehicle and on-road and non-road diesel projects
21-22 and consistent with program goals;
21-23 (2) coordinate infrastructure projects with motor
21-24 vehicle and on-road and non-road diesel projects representing a
21-25 broad range of fuels, technologies, and applications as appropriate
21-26 and consistent with the goals of this chapter;
21-27 (3) adopt guidelines and criteria for infrastructure
22-1 projects to be funded under the program; and
22-2 (4) oversee, monitor, and evaluate the use of grants
22-3 awarded under this program and report on the effectiveness of this
22-4 grant program in relation to the purposes and goals of this
22-5 chapter.
22-6 Sec. 386.109. ELIGIBLE INFRASTRUCTURE PROJECTS. The
22-7 commission may consider for funding under Section 386.108:
22-8 (1) the purchase and installation at a site of
22-9 equipment that is designed primarily to dispense qualifying fuel,
22-10 other than standard gasoline or diesel, or the purchase of on-site
22-11 mobile fueling equipment;
22-12 (2) infrastructure projects, including auxiliary power
22-13 units, designed to dispense electricity to motor vehicles and
22-14 on-road and non-road diesels; and
22-15 (3) a project that involves a technology that allows a
22-16 vehicle to replace with electric power, while the vehicle is
22-17 parked, the power normally supplied by the vehicle's internal
22-18 combustion engine.
22-19 Sec. 386.110. APPLICATION PACKAGE FOR INFRASTRUCTURE
22-20 PROJECTS. (a) The commission shall develop a simple, standardized
22-21 application package for infrastructure project grants under this
22-22 subchapter. The package must include:
22-23 (1) an application form;
22-24 (2) a brief description of:
22-25 (A) the program;
22-26 (B) the projects that are eligible for available
22-27 funding;
23-1 (C) the selection criteria and evaluation
23-2 process; and
23-3 (D) the required documentation;
23-4 (3) the name of a person or office to contact for more
23-5 information;
23-6 (4) an example of the contract that an applicant will
23-7 be required to execute before receiving a grant; and
23-8 (5) any other information the commission considers
23-9 useful to inform the applicant and expedite the application
23-10 process.
23-11 (b) The application form shall require as much information
23-12 as the commission determines is necessary to properly evaluate each
23-13 project but shall otherwise minimize the information required.
23-14 (c) The commission may not require an applicant, as part of
23-15 the application process, to calculate tons of emissions reduced or
23-16 cost-effectiveness.
23-17 Sec. 386.111. APPLICATION REVIEW PROCEDURES. (a) The
23-18 commission shall review an application for a grant for a project
23-19 authorized under this subchapter, including an application for a
23-20 grant for an infrastructure project, immediately on receipt of the
23-21 application. If the commission determines that an application is
23-22 incomplete, the commission shall notify the applicant, not later
23-23 than the 15th working day after the date on which the commission
23-24 received the application, with an explanation of what is missing
23-25 from the application. The commission shall record the date and
23-26 time of receipt of each application the commission determines to be
23-27 complete and shall evaluate the completed application according to
24-1 the appropriate project criteria. Subject to available funding,
24-2 the commission shall make a final determination on an application
24-3 as soon as possible and not later than the 60th working day after
24-4 the date the application is determined to be complete.
24-5 (b) The commission shall make every effort to expedite the
24-6 application review process and to award grants to qualified
24-7 projects in a timely manner. To the extent possible, the
24-8 commission shall coordinate project review and approval with any
24-9 timing constraints related to project purchases or installations to
24-10 be made by an applicant.
24-11 (c) The commission may deny an application for a project
24-12 that does not meet the applicable project criteria or that the
24-13 commission determines is not made in good faith, is not credible,
24-14 or is not in compliance with this chapter and the goals of this
24-15 chapter.
24-16 (d) Subject to availability of funds, the commission shall
24-17 award a grant under this subchapter in conjunction with the
24-18 execution of a contract that obligates the commission to make the
24-19 grant and the recipient to perform the actions described in the
24-20 recipient's grant application. The contract must incorporate
24-21 provisions for recapturing grant money in proportion to any loss of
24-22 emissions reductions or underachievement in dispensing qualifying
24-23 fuel compared with the volume of emissions reductions or amount of
24-24 fuel dispensed that was projected in awarding the grant. Grant
24-25 money recaptured under the contract provision shall be deposited in
24-26 the fund and reallocated for other projects under this subchapter.
24-27 (e) An applicant may seek reimbursement for qualifying
25-1 equipment installed after the effective date of this program.
25-2 Sec. 386.112. ON-ROAD DIESEL PURCHASE OR LEASE INCENTIVE.
25-3 (a) The commission shall develop a purchase or lease incentive
25-4 program for new on-road diesels and shall adopt rules necessary to
25-5 implement the program and to reimburse a purchaser or lessee of a
25-6 new on-road diesel that is eligible for reimbursement of
25-7 incremental costs under this subchapter.
25-8 (b) The program shall authorize statewide incentives for the
25-9 reimbursement of incremental costs for the purchase or lease,
25-10 according to the schedule provided by Section 386.113, of new
25-11 on-road diesels that are certified by the United States
25-12 Environmental Protection Agency to an emissions standard provided
25-13 by Section 386.113 if the purchaser or lessee of the on-road diesel
25-14 agrees to register the vehicle in this state and to operate the
25-15 on-road diesel in this state for not less than 75 percent of the
25-16 on-road diesel's annual mileage.
25-17 (c) Only one incentive will be provided for each new on-road
25-18 diesel. The incentive shall be provided to the purchaser if the
25-19 on-road diesel is not purchased for the purpose of leasing the
25-20 on-road diesel to another person, or to the lessee and not to the
25-21 purchaser if the on-road diesel is purchased for the purpose of
25-22 leasing the on-road diesel to another person. A lease incentive
25-23 for a new on-road diesel shall be prorated based on an eight-year
25-24 lease term.
25-25 Sec. 386.113. ON-ROAD DIESEL PURCHASE OR LEASE INCENTIVE
25-26 SCHEDULE. A new on-road diesel is eligible for reimbursement of
25-27 incremental costs according to the following schedule:
26-1 Incentive emissions standard Reimbursement amount
26-2 (oxides of nitrogen)
26-3 Date of manufacture Date of manufacture
26-4 (2001) (10/01/02-9/30/06)
26-5 2.5 g/bhp-hr NOx 1.2 g/bhp-hr NOx up to $15,000
26-6 1.5 g/bhp-hr NOx 0.5 g/bhp-hr NOx up to $25,000
26-7 0.0 g/bhp-hr NOx 0.0 g/bhp-hr NOx up to $25,000
26-8 Sec. 386.114. MODIFICATION OF INCENTIVE EMISSIONS STANDARDS.
26-9 After evaluating new technologies and after public notice and
26-10 comment, the commission, in consultation with the advisory board,
26-11 may change the incentive emissions standards established by Section
26-12 386.113 to improve the ability of the program to achieve its goals.
26-13 (Sections 386.115-386.150 reserved for expansion
26-14 SUBCHAPTER D. MOTOR VEHICLE PURCHASE OR LEASE INCENTIVE PROGRAM
26-15 Sec. 386.151. DEFINITIONS. In this subchapter:
26-16 (1) "Bin" or "emissions bin" means a set of emissions
26-17 standards applicable to exhaust pollutants measured on the Federal
26-18 Test Procedure (FTP) according to 40 C.F.R. Section 86.1811-04.
26-19 (2) "Light-duty motor vehicle" means a motor vehicle
26-20 with a gross vehicle weight rating of less than 10,000 pounds.
26-21 (3) "Motor vehicle" means a self-propelled device
26-22 designed for transporting persons or property on a public highway
26-23 that is required to be registered under Chapter 502, Transportation
26-24 Code.
26-25 Sec. 386.152. COMPTROLLER AND COMMISSION DUTIES REGARDING
26-26 LIGHT-DUTY MOTOR VEHICLE PURCHASE OR LEASE INCENTIVE PROGRAM. (a)
26-27 The comptroller and the commission shall develop a purchase or
27-1 lease incentive program for new light-duty motor vehicles and shall
27-2 adopt rules necessary to implement the program.
27-3 (b) The program shall authorize statewide incentives for the
27-4 purchase or lease, according to the schedule provided by Section
27-5 386.153, of new light-duty motor vehicles that are certified by the
27-6 United States Environmental Protection Agency to meet an emissions
27-7 standard that is at least as stringent as those provided by Section
27-8 386.153 for a purchaser or lessee who agrees to register the
27-9 vehicle in this state and to operate the vehicle in this state for
27-10 not less than 75 percent of the vehicle's annual mileage.
27-11 (c) Only one incentive will be provided for each new
27-12 light-duty motor vehicle. The incentive shall be provided to the
27-13 lessee and not to the purchaser if the motor vehicle is purchased
27-14 for the purpose of leasing the vehicle to another person.
27-15 Sec. 386.153. LIGHT-DUTY MOTOR VEHICLE PURCHASE OR LEASE
27-16 INCENTIVE SCHEDULE. A new light-duty motor vehicle is eligible for
27-17 an incentive according to the following schedule:
27-18 Incentive emissions standard and incentive amount
27-19 Model year 2003-2007
27-20 Bin 4 $1,250
27-21 Bin 3 $2,225
27-22 Bin 2 $3,750
27-23 Bin 1 $5,000
27-24 Sec. 386.154. MODIFICATION OF INCENTIVE EMISSIONS STANDARDS.
27-25 After evaluating new technologies and after public notice and
27-26 comment, the commission, in consultation with the advisory board,
27-27 may change the incentive emissions standards established by Section
28-1 386.153 to improve the ability of the program to achieve its goals.
28-2 Sec. 386.155. MANUFACTURER'S REPORT. At the beginning of
28-3 but not later than July 1 of each year preceding the vehicle model
28-4 year, a manufacturer of motor vehicles shall provide to the
28-5 commission a list of the new vehicle models that the manufacturer
28-6 intends to sell in this state during that model year that meet the
28-7 incentive emissions standards established by the schedules set out
28-8 under Section 386.153.
28-9 Sec. 386.156. LIST OF ELIGIBLE MOTOR VEHICLES. (a) On
28-10 August 1 each year the commission shall publish and provide to the
28-11 comptroller a list of the new model motor vehicles as listed for
28-12 the commission under Section 386.155.
28-13 (b) The comptroller shall distribute the list of eligible
28-14 motor vehicles to all new motor vehicle dealers and leasing agents
28-15 in this state.
28-16 Sec. 386.157. VEHICLE EMISSIONS INFORMATION LABEL. (a) To
28-17 enable consumers to make informed purchase decisions based on the
28-18 relative amounts of emissions produced by motor vehicles within
28-19 each vehicle class, the motor vehicle manufacturer or distributor
28-20 shall affix on each new light-duty motor vehicle for sale or lease
28-21 in this state a clearly legible label that shows the vehicle's
28-22 class rating under the United States Environmental Protection
28-23 Agency's vehicle class rating system. If the United States
28-24 Environmental Protection Agency develops another vehicle emissions
28-25 rating system that gives consumers similar emissions information by
28-26 vehicle class, the commission by rule may designate that vehicle
28-27 rating system.
29-1 (b) A new motor vehicle dealer or leasing agent shall make
29-2 available to the dealer's or leasing agent's prospective purchasers
29-3 or lessees a copy of the list prepared and published by the
29-4 commission under Section 386.156.
29-5 Sec. 386.158. LIGHT-DUTY MOTOR VEHICLE PURCHASE OR LEASE
29-6 INCENTIVE. (a) A person who purchases or leases a new light-duty
29-7 motor vehicle that has been listed under Section 386.155 is
29-8 eligible for an incentive under this subchapter.
29-9 (b) A lease incentive for a new light-duty motor vehicle
29-10 shall be prorated based on a four-year lease term.
29-11 (c) To receive money under an incentive program provided by
29-12 this subchapter, the purchaser or lessee of a new light-duty motor
29-13 vehicle eligible for an incentive under this subchapter shall apply
29-14 for the incentive in the manner provided by law or by rule of the
29-15 comptroller.
29-16 Sec. 386.159. PUBLIC INFORMATION. (a) The commission in
29-17 cooperation with the comptroller shall develop and implement a
29-18 program to inform the public and new motor vehicle dealers and
29-19 leasing agents about the motor vehicle purchase or lease incentive
29-20 program.
29-21 (b) The Texas Department of Transportation shall insert a
29-22 notice describing the light-duty motor vehicle purchase or lease
29-23 incentive program with each annual vehicle registration renewal
29-24 notice.
29-25 Sec. 386.160. COMPTROLLER TO ACCOUNT FOR MOTOR VEHICLE
29-26 PURCHASE OR LEASE INCENTIVES. (a) The comptroller by rule shall
29-27 develop a method to administer and account for the motor vehicle
30-1 purchase or lease incentives authorized by this subchapter and to
30-2 pay incentive money to the purchaser or lessee of a new motor
30-3 vehicle, on application of the purchaser or lessee as provided by
30-4 this subchapter.
30-5 (b) The comptroller shall develop and publish forms and
30-6 instructions for the purchaser or lessee of a new motor vehicle to
30-7 use in applying to the comptroller for an incentive payment under
30-8 this subchapter. The comptroller shall make the forms available to
30-9 new motor vehicle dealers and leasing agents. Dealers and leasing
30-10 agents shall make the forms available to their prospective
30-11 purchasers or lessees.
30-12 (c) In addition to other forms developed and published under
30-13 this section, the comptroller shall develop and publish a
30-14 verification form by which, with information provided by the dealer
30-15 or leasing agent, the comptroller can verify the sale of a vehicle
30-16 covered by this subchapter. The verification form shall include at
30-17 least the name of the purchaser, the vehicle identification number
30-18 of the vehicle involved, the date of the purchase, and the name of
30-19 the new motor dealer or leasing agent involved in the transaction.
30-20 At the time of sale or lease of a vehicle eligible for an incentive
30-21 under this subchapter, the dealer or leasing agent shall complete
30-22 the verification form supplied to the dealer by the comptroller.
30-23 The purchaser or lessee shall include the completed verification
30-24 form as part of the purchaser's application for an incentive. The
30-25 dealer shall maintain a copy of the completed verification form for
30-26 at least two years from the date of the transaction.
30-27 Sec. 386.161. REPORT TO COMMISSION; SUSPENSION OF PURCHASE
31-1 OR LEASE INCENTIVES. (a) The comptroller shall report to the
31-2 commission annually regarding motor vehicle purchase or lease
31-3 incentives.
31-4 (b) If the balance available for motor vehicle purchase or
31-5 lease incentives falls below 15 percent of the total allocated for
31-6 the incentives during that fiscal year, the comptroller by order
31-7 shall suspend the incentives until the date the comptroller can
31-8 certify that the balance available in the fund for incentives is an
31-9 amount adequate to resume the incentives or the beginning of the
31-10 next fiscal year, whichever is earlier. If the comptroller
31-11 suspends the incentives, the comptroller shall immediately notify
31-12 the commission and all new motor vehicle dealers and leasing agents
31-13 that the incentives have been suspended.
31-14 (c) The comptroller shall establish a toll-free telephone
31-15 number available to motor vehicle dealers and leasing agents for
31-16 the dealers and agents to call to verify that incentives are
31-17 available. The comptroller may provide for issuing verification
31-18 numbers over the telephone line.
31-19 (d) Reliance by a dealer or leasing agent on information
31-20 provided by the comptroller or commission is a complete defense to
31-21 an action involving or based on eligibility of a vehicle for an
31-22 incentive or availability of vehicles eligible for an incentive.
31-23 (Sections 386.162-386.200 reserved for expansion
31-24 SUBCHAPTER E. ENERGY EFFICIENCY GRANT PROGRAM
31-25 Sec. 386.201. DEFINITIONS. In this subchapter:
31-26 (1) "Electric cooperative" has the meaning assigned by
31-27 Section 11.003, Utilities Code.
32-1 (2) "Electric utility" has the meaning assigned by
32-2 Section 31.002, Utilities Code.
32-3 (3) "Municipally owned utility" has the meaning
32-4 assigned by Section 11.003, Utilities Code.
32-5 Sec. 386.202. GRANT PROGRAM. (a) The utility commission
32-6 shall develop an energy efficiency grant program using program
32-7 templates that are consistent with rules of the utility commission
32-8 adopted under Section 39.905, Utilities Code.
32-9 (b) Programs approved under this subchapter must include the
32-10 retirement, replacement, and recycling of materials and appliances
32-11 that contribute to peak energy demand to ensure the reduction of
32-12 energy demand, peak loads, and associated emissions of air
32-13 contaminants.
32-14 Sec. 386.203. ADMINISTRATION OF GRANTS. Money allocated by
32-15 the utility commission under the grant program developed under this
32-16 subchapter shall be administered by electric utilities, electric
32-17 cooperatives, and municipally owned utilities. A participating
32-18 electric utility, electric cooperative, or municipally owned
32-19 utility shall be reimbursed from the fund for costs incurred by the
32-20 utility in administering the energy efficiency grant program
32-21 established under this subchapter. Reimbursable administrative
32-22 costs of a participating entity may not exceed 10 percent of the
32-23 entity's total program budget before January 1, 2003, and may not
32-24 exceed five percent of the entity's total program budget on or
32-25 after that date.
32-26 Sec. 386.204. LIMITATION ON DUTY OF PARTICIPATING UTILITY.
32-27 (a) This subchapter obligates an electric utility, electric
33-1 cooperative, or municipally owned utility only to administer the
33-2 funding allocated to the entity by the utility commission in
33-3 accordance with this subchapter.
33-4 (b) The obligation of an electric utility under this
33-5 subchapter is separate and apart from, and does not affect an
33-6 obligation of the electric utility under, Section 39.905, Utilities
33-7 Code, or a rule adopted under that section.
33-8 (c) Emissions reductions achieved by a program implemented
33-9 under this subchapter may not be used by an electric utility,
33-10 electric cooperative, or municipally owned utility to satisfy an
33-11 obligation to reduce air contaminant emissions under state or
33-12 federal law or a state or federal regulatory program.
33-13 Sec. 386.205. EVALUATION OF STATE ENERGY EFFICIENCY
33-14 PROGRAMS. In cooperation with the laboratory, the utility
33-15 commission shall provide an annual report to the commission that,
33-16 by county, quantifies the reductions of energy demand, peak loads,
33-17 and associated emissions of air contaminants achieved from the
33-18 programs implemented under this subchapter and from those
33-19 implemented under Section 39.905, Utilities Code.
33-20 (Sections 386.206-386.250 reserved for expansion
33-21 SUBCHAPTER F. TEXAS EMISSIONS REDUCTION PLAN FUND
33-22 Sec. 386.251. FUND. (a) The Texas emissions reduction plan
33-23 fund is an account in the state treasury.
33-24 (b) The fund is administered by the comptroller for the
33-25 benefit of the Texas emissions reduction plan established under
33-26 this chapter.
33-27 (c) The fund consists of money from:
34-1 (1) fees and other amounts charged and collected under
34-2 Sections 502.1675 and 548.5055, Transportation Code;
34-3 (2) the surcharge on the sale, lease, or rental of new
34-4 or used construction equipment under Section 151.0515, Tax Code;
34-5 and
34-6 (3) surcharges collected under Sections 152.0215 and
34-7 156.054, Tax Code.
34-8 Sec. 386.252. USE OF FUND. (a) Money in the fund may be
34-9 used only to implement and administer programs established under
34-10 the plan and shall be allocated as follows:
34-11 (1) for the diesel emissions reduction incentive
34-12 program, 67 percent of the money in the fund, of which not more
34-13 than three percent may be used for infrastructure projects and not
34-14 more than 15 percent may be used for on-road diesel purchase or
34-15 lease incentives;
34-16 (2) for the motor vehicle purchase or lease incentive
34-17 program, 15 percent of the money in the fund;
34-18 (3) for the energy efficiency grant program, 7.5
34-19 percent of the money in the fund;
34-20 (4) for the new technology research and development
34-21 program, 7.5 percent of the money in the fund, of which up to
34-22 $250,000 is allocated for administration, up to $200,000 is
34-23 allocated for a health effects study, and $500,000 is to be
34-24 deposited in the state treasury to the credit of the clean air
34-25 account created under Section 382.0622 to supplement funding for
34-26 air quality planning activities in affected counties; and
34-27 (5) for administrative costs incurred by the utility
35-1 commission, the commission, the comptroller, and the laboratory,
35-2 three percent.
35-3 (b) Up to 15 percent of the money allocated under Subsection
35-4 (a) to a particular program and not expended under that program by
35-5 March 1 of the second fiscal year of a fiscal biennium may be used
35-6 for another program under the plan as determined by the commission
35-7 in consultation with the advisory board.
35-8 CHAPTER 387. NEW TECHNOLOGY RESEARCH
35-9 AND DEVELOPMENT PROGRAM
35-10 Sec. 387.001. DEFINITION. In this chapter, "program" means
35-11 the new technology research and development program.
35-12 Sec. 387.002. TEXAS COUNCIL ON ENVIRONMENTAL TECHNOLOGY.
35-13 (a) The Texas Council on Environmental Technology consists of 11
35-14 members appointed by the governor to represent the academic and
35-15 nonprofit communities. The governor shall designate from the
35-16 council members a presiding officer of the council. Members of the
35-17 council serve six-year staggered terms, with the terms of three or
35-18 four members expiring February 1 of each odd-numbered year.
35-19 (b) The Texas Council on Environmental Technology shall work
35-20 to enhance the entrepreneurial and inventive spirit of Texans to
35-21 assist in developing solutions to air, water, and waste problems
35-22 by:
35-23 (1) identifying and evaluating new technologies and
35-24 seeking the approval of the United States Environmental Protection
35-25 Agency for and facilitating the deployment of those technologies;
35-26 and
35-27 (2) assisting the commission and the United States
36-1 Environmental Protection Agency in the process of ensuring
36-2 credit for new, innovative, and creative technological
36-3 advancements.
36-4 (c) Council offices and projects shall be housed at the
36-5 Center for Energy and Environmental Resources at The University of
36-6 Texas at Austin.
36-7 Sec. 387.003. NEW TECHNOLOGY RESEARCH AND DEVELOPMENT
36-8 PROGRAM. (a) The Texas Council on Environmental Technology shall
36-9 establish and administer a new technology research and development
36-10 program as provided by this chapter.
36-11 (b) Under the program, the Texas Council on Environmental
36-12 Technology shall provide grants to be used to support development
36-13 of emissions-reducing technologies that may be used for projects
36-14 eligible for awards under Chapter 386 and other new technologies
36-15 that show promise for commercialization. The primary objective of
36-16 this chapter is to promote the development of commercialization
36-17 technologies that will support projects that may be funded under
36-18 Chapter 386 and this chapter.
36-19 Sec. 387.004. SOLICITATION OF NEW TECHNOLOGY PROPOSALS. The
36-20 Texas Council on Environmental Technology from time to time shall
36-21 issue specific requests for proposals (RFPs) or program opportunity
36-22 notices (PONs) for technology projects to be funded under the
36-23 program.
36-24 Sec. 387.005. ELIGIBLE PROJECTS; PRIORITIES. (a) Grants
36-25 awarded under this chapter shall be directed toward a balanced mix
36-26 of:
36-27 (1) retrofit and add-on technologies to reduce
37-1 emissions from the existing stock of vehicles targeted by the Texas
37-2 emissions reduction plan;
37-3 (2) advanced technologies for new engines and vehicles
37-4 that produce very-low or zero emissions of oxides of nitrogen,
37-5 including stationary and mobile fuel cells;
37-6 (3) studies to improve air quality assessment and
37-7 modeling;
37-8 (4) advanced technologies that promote increased
37-9 building and appliance energy performance; and
37-10 (5) advanced technologies that reduce emissions from
37-11 other significant sources.
37-12 (b) The Texas Council on Environmental Technology shall
37-13 identify and evaluate and may consider making grants for technology
37-14 projects that would allow qualifying fuels to be produced from
37-15 energy resources in this state. In considering projects under this
37-16 subsection, the council shall give preference to projects involving
37-17 otherwise unusable energy resources in this state and producing
37-18 qualifying fuels at prices lower than otherwise available and low
37-19 enough to make the projects to be funded under the program
37-20 economically attractive to local businesses in the area for which
37-21 the project is proposed.
37-22 (c) In soliciting proposals under Section 387.004 and
37-23 determining how to allocate grant money available for projects
37-24 under this chapter, the Texas Council on Environmental Technology
37-25 shall give special consideration to advanced technologies and
37-26 retrofit or add-on projects that provide multiple benefits by
37-27 reducing emissions of particulates and other air pollutants.
38-1 (d) A project that involves publicly or privately owned
38-2 vehicles or vessels is eligible for funding under this chapter if
38-3 the project meets all applicable criteria.
38-4 (e) Studies authorized under Subsection (a)(3) shall be
38-5 consistent with air quality research priorities identified by the
38-6 commission.
38-7 Sec. 387.006. EVIDENCE OF COMMERCIALIZATION POTENTIAL
38-8 REQUIRED. (a) An application for a technology grant under this
38-9 chapter must show clear and compelling evidence that:
38-10 (1) the proposed technology project has a strong
38-11 commercialization plan and organization; and
38-12 (2) the technology proposed for funding:
38-13 (A) is likely to be offered for commercial sale
38-14 in this state within five years after the date of the application
38-15 for funding; and
38-16 (B) once commercialized, will offer
38-17 opportunities for projects eligible for funding under Chapter 386.
38-18 (b) The Texas Council on Environmental Technology shall
38-19 consider specifically, for each proposed technology project
38-20 application:
38-21 (1) the projected potential for reduced emissions of
38-22 oxides of nitrogen and the cost-effectiveness of the technology
38-23 once it has been commercialized;
38-24 (2) the potential for the technology to contribute
38-25 significantly to air quality goals; and
38-26 (3) the strength of the commercialization plan.
38-27 Sec. 387.007. COST-SHARING. The Texas Council on
39-1 Environmental Technology may require cost-sharing for technology
39-2 projects funded under this chapter but may not require repayment of
39-3 grant money.
39-4 Sec. 387.008. ENVIRONMENTAL RESEARCH FUND. (a) The
39-5 environmental research fund is an account in the general revenue
39-6 fund. The fund consists of money from gifts, grants, or donations
39-7 to the fund for designated or general use and from any other source
39-8 designated by the legislature.
39-9 (b) Money in the environmental research fund may be used
39-10 only for the operation and projects of the Texas Council on
39-11 Environmental Technology.
39-12 Sec. 387.009. ADVISORY COMMITTEES. The Texas Council on
39-13 Environmental Technology may appoint advisory committees as
39-14 necessary or desirable to assist the council in performing its
39-15 duties. An advisory committee may include representatives of
39-16 industry, environmental groups, consumer groups, local governments,
39-17 agriculture, the commission, the General Land Office, and the
39-18 Railroad Commission of Texas. Any senator or representative
39-19 desiring to do so may participate on any advisory committee
39-20 appointed under this section. Members of an advisory committee are
39-21 not entitled to compensation.
39-22 Sec. 387.010. REPORTS. Not later than December 1, 2002, and
39-23 not later than December 1 of each subsequent second year, the Texas
39-24 Council on Environmental Technology shall report to the legislature
39-25 on projects funded under the new technology research and
39-26 development program, describing the technical objectives and
39-27 accomplishments of the project and the progress of the project
40-1 technology toward commercialization.
40-2 CHAPTER 388. TEXAS BUILDING ENERGY PERFORMANCE STANDARDS
40-3 Sec. 388.001. LEGISLATIVE FINDINGS. (a) The legislature
40-4 finds that an effective building energy code is essential to:
40-5 (1) reducing the air pollutant emissions that are
40-6 affecting the health of residents of this state;
40-7 (2) moderating future peak electric power demand;
40-8 (3) assuring the reliability of the electrical grid;
40-9 and
40-10 (4) controlling energy costs for residents and
40-11 businesses in this state.
40-12 (b) The legislature further finds that this state has a
40-13 number of unique climate types, all of which require more energy
40-14 for cooling than for heating, and that there are many
40-15 cost-effective measures that can reduce peak energy use and reduce
40-16 cooling and other energy costs in buildings.
40-17 Sec. 388.002. DEFINITIONS. In this chapter:
40-18 (1) "Affected county" has the meaning assigned by
40-19 Section 386.001.
40-20 (2) "Building" has the meaning assigned by the
40-21 International Building Code.
40-22 (3) "Code official" means an individual employed by a
40-23 local jurisdiction to review construction plans and other
40-24 documents, inspect construction, or administer and enforce building
40-25 standards under this chapter.
40-26 (4) "Code-certified inspector" means an inspector who
40-27 is certified by the International Code Council, the Building
41-1 Officials and Code Administrators International, Inc., the
41-2 International Conference of Building Officials, or the Southern
41-3 Building Code Congress International to have met minimum standards
41-4 for interpretation and enforcement of requirements of the
41-5 International Energy Conservation Code and the energy efficiency
41-6 chapter of the International Residential Code.
41-7 (5) "Commission" means the Texas Natural Resource
41-8 Conservation Commission.
41-9 (6) "International Residential Code" means the
41-10 International Residential Code for One- and Two-Family Dwellings as
41-11 adopted by the International Code Council.
41-12 (7) "International Energy Conservation Code" means the
41-13 International Energy Conservation Code as adopted by the
41-14 International Code Council.
41-15 (8) "Laboratory" means the Energy Systems Laboratory
41-16 at the Texas Engineering Experiment Station of The Texas A&M
41-17 University System.
41-18 (9) "Local jurisdiction" means the authority
41-19 responsible for implementation and enforcement of local building
41-20 codes.
41-21 (10) "Municipality" has the meaning assigned by
41-22 Section 1.005, Local Government Code.
41-23 (11) "Nonattainment area" has the meaning assigned by
41-24 Section 386.001.
41-25 (12) "Single-family residential" means having the
41-26 character of a detached one- or two-family dwelling or a multiple
41-27 single-family dwelling not more than three stories high with
42-1 separate means of egress, including the accessory structures of the
42-2 dwelling.
42-3 Sec. 388.003. ADOPTION OF BUILDING ENERGY EFFICIENCY
42-4 PERFORMANCE STANDARDS. (a) To achieve energy conservation in
42-5 single-family residential construction, the energy efficiency
42-6 chapter of the International Residential Code, as it existed on May
42-7 1, 2001, is adopted as the energy code in this state for
42-8 single-family residential construction.
42-9 (b) To achieve energy conservation in all other residential,
42-10 commercial, and industrial construction, the International Energy
42-11 Conservation Code as it existed on May 1, 2001, is adopted as the
42-12 energy code for use in this state for all other residential,
42-13 commercial, and industrial construction.
42-14 (c) A municipality or county shall establish procedures:
42-15 (1) for the administration and enforcement of the
42-16 codes; and
42-17 (2) to ensure that code-certified inspectors shall
42-18 perform inspections and enforce the code in the inspectors'
42-19 jurisdictions.
42-20 (d) A municipality or county may establish procedures to
42-21 adopt local amendments to the International Energy Conservation
42-22 Code and the energy efficiency chapter of the International
42-23 Residential Code.
42-24 (e) Local amendments may not result in less stringent energy
42-25 efficiency requirements in nonattainment areas and in affected
42-26 counties than the energy efficiency chapter of the International
42-27 Residential Code or International Energy Conservation Code. Local
43-1 amendments must comply with the National Appliance Energy
43-2 Conservation Act of 1987 (42 U.S.C. Sections 6291-6309), as
43-3 amended. The laboratory, at the request of a municipality or
43-4 county, shall determine the relative impact of proposed local
43-5 amendments to an energy code, including whether proposed amendments
43-6 are substantially equal to or less stringent than the unamended
43-7 code. For the purpose of establishing uniform requirements
43-8 throughout a region, and on request of a council of governments, a
43-9 county, or a municipality, the laboratory may recommend a
43-10 climatically appropriate modification or a climate zone designation
43-11 for a county or group of counties that is different from the
43-12 climate zone designation in the unamended code. The laboratory
43-13 shall:
43-14 (1) report its findings to the council, county, or
43-15 municipality, including an estimate of any energy savings potential
43-16 above the base code from local amendments; and
43-17 (2) annually submit a report to the commission:
43-18 (A) identifying the municipalities and counties
43-19 whose codes are more stringent than the unamended code, and whose
43-20 codes are equally stringent or less stringent than the unamended
43-21 code; and
43-22 (B) quantifying energy savings from this
43-23 program.
43-24 (f) Each municipality and county shall periodically review
43-25 and consider revisions made by the International Code Council to
43-26 the International Energy Conservation Code and the energy
43-27 efficiency chapter of the International Residential Code adopted
44-1 after May 1, 2001.
44-2 (g) The laboratory shall have the authority to set and
44-3 collect fees to perform certain tasks in support of the
44-4 requirements in Sections 388.004, 388.007, and 388.008.
44-5 (h) Within the boundaries of an airport operated by a joint
44-6 board created under Subchapter D, Chapter 22, Transportation Code,
44-7 the constituent agencies of which are populous home-rule
44-8 municipalities, the powers of a municipality under this section are
44-9 exclusively the powers of the joint board.
44-10 Sec. 388.004. ENFORCEMENT OF ENERGY STANDARDS OUTSIDE OF
44-11 MUNICIPALITY. For construction outside of the local jurisdiction
44-12 of a municipality:
44-13 (1) a building certified by a national, state, or
44-14 local accredited energy efficiency program shall be considered in
44-15 compliance;
44-16 (2) a building with inspections from private
44-17 code-certified inspectors using the energy efficiency chapter of
44-18 the International Residential Code or International Energy
44-19 Conservation Code shall be considered in compliance; and
44-20 (3) a builder who does not have access to either of
44-21 the above methods for a building shall certify compliance using a
44-22 form provided by the laboratory, enumerating the code-compliance
44-23 features of the building.
44-24 Sec. 388.005. ENERGY EFFICIENCY PROGRAMS IN CERTAIN
44-25 POLITICAL SUBDIVISIONS. (a) In this section, "political
44-26 subdivision" means:
44-27 (1) an affected county; or
45-1 (2) any political subdivision other than a school
45-2 district in a nonattainment area or in an affected county.
45-3 (b) Each political subdivision shall implement all energy
45-4 efficiency measures that meet the standards established for a
45-5 contract for energy conservation measures under Section 302.004(b),
45-6 Local Government Code, in order to reduce electricity consumption
45-7 by the existing facilities of the political subdivision.
45-8 (c) Each political subdivision shall establish a goal to
45-9 reduce the electric consumption by the political subdivision by
45-10 five percent each year for five years, beginning January 1, 2002.
45-11 (d) A political subdivision that does not attain the goals
45-12 under Subsection (c) must include in the report required by
45-13 Subsection (e) justification that the political subdivision has
45-14 already implemented all available measures.
45-15 (e) A political subdivision annually shall report to the
45-16 State Energy Conservation Office, on forms provided by that office,
45-17 regarding the political subdivision's efforts and progress under
45-18 this section. The State Energy Conservation Office shall provide
45-19 assistance and information to political subdivisions to help the
45-20 political subdivisions meet the goals set under this section.
45-21 Sec. 388.006. STATE ENERGY CONSERVATION OFFICE EVALUATION.
45-22 The State Energy Conservation Office annually shall provide the
45-23 commission with an evaluation of the effectiveness of state and
45-24 political subdivision energy efficiency programs, including
45-25 programs under this chapter.
45-26 Sec. 388.007. DISTRIBUTION OF INFORMATION AND TECHNICAL
45-27 ASSISTANCE. (a) The laboratory shall make available to builders,
46-1 designers, engineers, and architects code implementation materials
46-2 that explain the requirements of the International Energy
46-3 Conservation Code and the energy efficiency chapter of the
46-4 International Residential Code and that describe methods of
46-5 compliance acceptable to code officials.
46-6 (b) The materials may include software tools, simplified
46-7 prescriptive options, and other materials as appropriate. The
46-8 simplified materials may be designed for projects in which a design
46-9 professional is not involved.
46-10 (c) The laboratory may provide local jurisdictions with
46-11 technical assistance concerning implementation and enforcement of
46-12 the International Energy Conservation Code and the energy
46-13 efficiency chapter of the International Residential Code.
46-14 Sec. 388.008. DEVELOPMENT OF HOME ENERGY RATINGS. (a) The
46-15 laboratory shall develop a standardized report format to be used by
46-16 providers of home energy ratings. The form must be designed to
46-17 give potential buyers information on a structure's energy
46-18 performance, including:
46-19 (1) insulation;
46-20 (2) types of windows;
46-21 (3) heating and cooling equipment;
46-22 (4) water heating equipment;
46-23 (5) additional energy conserving features, if any;
46-24 (6) results of performance measurements of building
46-25 tightness and forced air distribution; and
46-26 (7) an overall rating of probable energy efficiency
46-27 relative to the minimum requirements of the International Energy
47-1 Conservation Code or the energy efficiency chapter of the
47-2 International Residential Code, as appropriate.
47-3 (b) The laboratory shall establish a public information
47-4 program to inform homeowners, sellers, buyers, and others regarding
47-5 home energy ratings.
47-6 (c) The home energy ratings program shall be implemented by
47-7 September 1, 2002.
47-8 CHAPTER 389. EMISSIONS REDUCTION RECOGNITION EFFORTS
47-9 Sec. 389.001. DEFINITION. In this chapter, "commission"
47-10 means the Texas Natural Resource Conservation Commission.
47-11 Sec. 389.002. USE OF CERTAIN INFORMATION FOR FEDERAL
47-12 RECOGNITION OF EMISSIONS REDUCTIONS. The commission, using
47-13 information derived from the reports to the commission under
47-14 Sections 386.205, 388.003(e), and 388.006, shall take all
47-15 appropriate and necessary actions so that emissions reductions
47-16 achieved by means of activities under Chapters 386 and 388 are
47-17 credited by the United States Environmental Protection Agency to
47-18 the appropriate emissions reduction objectives in the state
47-19 implementation plan.
47-20 SECTION 2. Subchapter C, Chapter 151, Tax Code, is amended
47-21 by adding Section 151.0515 to read as follows:
47-22 Sec. 151.0515. TEXAS EMISSIONS REDUCTION PLAN SURCHARGE.
47-23 (a) In this section, "equipment" includes all off-road, heavy-duty
47-24 diesel equipment classified as construction equipment, other than
47-25 implements of husbandry used solely for agricultural purposes,
47-26 including:
47-27 (1) pavers;
48-1 (2) tampers/rammers;
48-2 (3) plate compactors;
48-3 (4) concrete pavers;
48-4 (5) rollers;
48-5 (6) scrapers;
48-6 (7) paving equipment;
48-7 (8) surface equipment;
48-8 (9) signal boards/light plants;
48-9 (10) trenchers;
48-10 (11) bore/drill rigs;
48-11 (12) excavators;
48-12 (13) concrete/industrial saws;
48-13 (14) cement and mortar mixers;
48-14 (15) cranes;
48-15 (16) graders;
48-16 (17) off-highway trucks;
48-17 (18) crushing/processing equipment;
48-18 (19) rough terrain forklifts;
48-19 (20) rubber tire loaders;
48-20 (21) rubber tire tractors/dozers;
48-21 (22) tractors/loaders/backhoes;
48-22 (23) crawler tractors/dozers;
48-23 (24) skid steer loaders;
48-24 (25) off-highway tractors; and
48-25 (26) Dumpsters/tenders.
48-26 (b) In each county in this state, a surcharge is imposed on
48-27 the retail sale, lease, or rental of new or used equipment in an
49-1 amount equal to 0.5 percent of the sale price or the lease or
49-2 rental amount.
49-3 (c) The surcharge shall be collected at the same time and in
49-4 the same manner and shall be administered and enforced in the same
49-5 manner as the tax imposed under this subchapter. The comptroller
49-6 shall adopt any additional procedures needed for the collection,
49-7 administration, and enforcement of the surcharge authorized by this
49-8 section and shall deposit all remitted surcharges to the credit of
49-9 the Texas emissions reduction plan fund.
49-10 (d) This section expires September 30, 2008.
49-11 SECTION 3. Subchapter B, Chapter 152, Tax Code, is amended
49-12 by adding Section 152.0215 to read as follows:
49-13 Sec. 152.0215. TEXAS EMISSIONS REDUCTION PLAN SURCHARGE.
49-14 (a) A surcharge is imposed on every retail sale or lease of every
49-15 on-road diesel motor vehicle that is over 14,000 pounds and is of a
49-16 model year 1996 or earlier and that is sold or leased in this
49-17 state. The amount of the surcharge is five percent of the total
49-18 consideration.
49-19 (b) The surcharge shall be collected at the same time and in
49-20 the same manner and shall be administered and enforced in the same
49-21 manner as the tax imposed under this chapter. The comptroller by
49-22 rule shall adopt any additional procedures needed for the
49-23 collection, administration, and enforcement of the surcharge
49-24 authorized by this section and shall deposit all remitted
49-25 surcharges to the credit of the Texas emissions reduction plan
49-26 fund.
49-27 (c) This section expires September 30, 2008.
50-1 SECTION 4. Section 153.203, Tax Code, is amended to read as
50-2 follows:
50-3 Sec. 153.203. EXCEPTIONS. (a) The tax imposed by this
50-4 subchapter does not apply to:
50-5 (1) diesel fuel delivered by a permitted supplier to a
50-6 common or contract carrier, oceangoing vessel (including ship,
50-7 tanker, or boat), or barge for export from this state, if the
50-8 diesel fuel is moved forthwith outside this state;
50-9 (2) diesel fuel sold by a permitted supplier to the
50-10 federal government for its exclusive use;
50-11 (3) diesel fuel sold or delivered by a permitted
50-12 supplier to another permitted supplier or to the bulk storage
50-13 facility of an agricultural bonded user, or dyed diesel fuel sold
50-14 or delivered by a permitted supplier to the bulk storage facility
50-15 of a dyed diesel fuel bonded user, to the bulk storage facility of
50-16 a diesel tax prepaid user, or to a purchaser who provides a signed
50-17 statement as provided by Section 153.205 of this code, but not
50-18 including a delivery of tax-free diesel fuel into the fuel supply
50-19 tanks of a motor vehicle, except for a motor vehicle owned by the
50-20 federal government;
50-21 (4) diesel fuel sold or delivered by a permitted
50-22 supplier into the storage facility of a permitted aviation fuel
50-23 dealer, from which diesel fuel will be sold or delivered solely
50-24 into the fuel supply tanks of aircraft or aircraft servicing
50-25 equipment;
50-26 (5) diesel fuel sold or delivered by a permitted
50-27 supplier into fuel supply tanks of railway engines, motorboats, or
51-1 refrigeration units or other stationary equipment powered by a
51-2 separate motor from a separate fuel supply tank;
51-3 (6) kerosene when delivered by a permitted supplier
51-4 into a storage facility at a retail business from which all
51-5 deliveries are exclusively for heating, cooking, lighting, or
51-6 similar nonhighway use;
51-7 (7) diesel fuel sold or delivered by one aviation fuel
51-8 dealer to another aviation fuel dealer who will deliver the diesel
51-9 fuel exclusively into the supply tanks of aircraft or aircraft
51-10 servicing equipment;
51-11 (8) diesel fuel sold by a permitted supplier to a
51-12 public school district in this state for its exclusive use;
51-13 (9) diesel fuel sold by a permitted supplier to a
51-14 commercial transportation company that provides public school
51-15 transportation services to a school district under Section 34.008,
51-16 Education Code, and used by the company exclusively to provide
51-17 those services; or
51-18 (10) diesel fuel sold by a permitted supplier to a
51-19 person, other than a political subdivision, who owns, controls,
51-20 operates, or manages a commercial motor vehicle as defined by
51-21 Section 548.001, Transportation Code, if the fuel:
51-22 (A) is delivered exclusively into the fuel
51-23 supply tank of the commercial motor vehicle; and
51-24 (B) is used exclusively to transport passengers
51-25 for compensation or hire between points in this state on a fixed
51-26 route or schedule.
51-27 (b) The tax imposed by this subchapter does not apply to the
52-1 volume of water that is blended together with taxable diesel fuel
52-2 when the finished product sold or used is clearly identified on the
52-3 retail pump, storage tank, and sales invoice as a combination of
52-4 diesel fuel and water.
52-5 SECTION 5. Subchapter B, Chapter 156, Tax Code, is amended
52-6 by adding Section 156.054 to read as follows:
52-7 Sec. 156.054. TEXAS EMISSIONS REDUCTION PLAN SURCHARGE.
52-8 (a) In this section, "nonattainment area" and "affected county"
52-9 have the meanings assigned by Section 386.001, Health and Safety
52-10 Code.
52-11 (b) A person owning, operating, managing, or controlling a
52-12 hotel located in a nonattainment area or an affected county shall
52-13 collect a surcharge imposed by this section.
52-14 (c) A $1 surcharge is imposed on a person for each day that
52-15 the person has the right to use or possess a room in a hotel that
52-16 is ordinarily used for sleeping.
52-17 (d) Sections 156.101, 156.102, and 156.103 do not apply to
52-18 the surcharge authorized by this section.
52-19 (e) The surcharge shall be collected at the same time and in
52-20 the same manner and shall be administered and enforced in the same
52-21 manner as the tax imposed under this subchapter. The comptroller
52-22 shall adopt any additional procedures needed for the collection,
52-23 administration, and enforcement of the surcharge authorized by this
52-24 section and shall deposit all remitted surcharges to the credit of
52-25 the Texas emissions reduction plan fund.
52-26 (f) This section expires September 30, 2008.
52-27 SECTION 6. Section 224.153, Transportation Code, is amended
53-1 by adding Subsection (c) to read as follows:
53-2 (c) A motor vehicle displaying the "low-emissions vehicle"
53-3 insignia authorized by Section 502.186 in an easily readable
53-4 location on the back of the vehicle is entitled to travel in a
53-5 preferential car pool or high occupancy vehicle lane designated
53-6 under this section regardless of the number of occupants in the
53-7 vehicle. This subsection expires August 31, 2008.
53-8 SECTION 7. Section 431.073, Transportation Code, is amended
53-9 by adding Subsection (d) to read as follows:
53-10 (d) A motor vehicle displaying the "low-emissions vehicle"
53-11 insignia authorized by Section 502.186 in an easily readable
53-12 location on the back of the vehicle is entitled to travel in a high
53-13 occupancy vehicle lane designated under this section regardless of
53-14 the number of occupants in the vehicle. This subsection expires
53-15 August 31, 2008.
53-16 SECTION 8. Subchapter D, Chapter 502, Transportation Code,
53-17 is amended by adding Section 502.1675 to read as follows:
53-18 Sec. 502.1675. TEXAS EMISSIONS REDUCTION PLAN SURCHARGE.
53-19 (a) In addition to the registration fees charged under Section
53-20 502.167, a surcharge is imposed on the registration of a
53-21 truck-tractor or commercial motor vehicle under that section in an
53-22 amount equal to 10 percent of the total fees due for the
53-23 registration of the truck-tractor or commercial motor vehicle under
53-24 that section.
53-25 (b) The county tax assessor-collector shall remit the
53-26 surcharge collected under this section to the comptroller at the
53-27 time and in the manner prescribed by the comptroller for deposit in
54-1 the Texas emissions reduction plan fund.
54-2 (c) This section expires August 31, 2008.
54-3 SECTION 9. Subchapter D, Chapter 502, Transportation Code,
54-4 is amended by adding Section 502.186 to read as follows:
54-5 Sec. 502.186. "LOW-EMISSIONS VEHICLE" INSIGNIA FOR CERTAIN
54-6 MOTOR VEHICLES. (a) At the time of registration or reregistration
54-7 of the motor vehicle, the department shall issue a specially
54-8 designed "low-emissions vehicle" insignia for a motor vehicle that
54-9 meets qualifications for the light-duty motor vehicle purchase or
54-10 lease incentives under Subchapter D, Chapter 386, Health and Safety
54-11 Code.
54-12 (b) The department shall issue a "low-emissions vehicle"
54-13 insignia under this section without the payment of any additional
54-14 fee to a person who:
54-15 (1) applies to the department on a form provided by
54-16 the department; and
54-17 (2) submits proof that the motor vehicle being
54-18 registered is a vehicle described by Subsection (a).
54-19 (c) This section expires August 31, 2008.
54-20 SECTION 10. Section 548.256, Transportation Code, is amended
54-21 by adding Subsection (c) to read as follows:
54-22 (c) The inspection station shall collect a fee of $60 for
54-23 each inspection performed under this section and remit the fee to
54-24 the department. The department shall remit all fees collected
54-25 under this subsection to the comptroller for deposit in the Texas
54-26 emissions reduction plan fund.
54-27 SECTION 11. Subchapter H, Chapter 548, Transportation Code,
55-1 is amended by adding Section 548.5055 to read as follows:
55-2 Sec. 548.5055. TEXAS EMISSIONS REDUCTION PLAN FEE. (a) In
55-3 this section, "nonattainment area" and "affected county" have the
55-4 meanings assigned by Section 386.001, Health and Safety Code.
55-5 (b) In addition to other fees required by this subchapter,
55-6 to fund the Texas emissions reduction plan established under
55-7 Chapter 386, Health and Safety Code, the department shall collect,
55-8 for every motor vehicle required to be inspected under this
55-9 chapter, a fee of:
55-10 (1) $1, if the vehicle being inspected is not
55-11 registered in a nonattainment area or an affected county in this
55-12 state; or
55-13 (2) $5, if the vehicle being inspected is registered
55-14 in a nonattainment area or an affected county in this state.
55-15 (c) The department shall remit fees collected under this
55-16 section to the comptroller at the time and in the manner prescribed
55-17 by the comptroller for deposit in the Texas emissions reduction
55-18 plan fund.
55-19 (d) This section expires August 31, 2008.
55-20 SECTION 12. (a) Not later than the 45th day after the
55-21 effective date of this Act, the Texas Natural Resource Conservation
55-22 Commission shall adopt all necessary rules required to implement
55-23 programs established under this Act.
55-24 (b) Not later than the 45th day after the effective date of
55-25 this Act, the comptroller of public accounts shall adopt all rules
55-26 necessary to enable the comptroller to carry out the comptroller's
55-27 duties under this Act.
56-1 (c) Not later than the 45th day after the effective date of
56-2 this Act, the Public Utility Commission of Texas shall adopt all
56-3 rules necessary to carry out its duties under this Act.
56-4 (d) A municipality or county required to establish
56-5 procedures under Section 388.003(c), Health and Safety Code, as
56-6 added by this Act, shall establish the procedures not later than
56-7 September 1, 2002.
56-8 SECTION 13. (a) Except as provided by Subsection (b) of
56-9 this section, not later than August 1, 2001, if this Act takes
56-10 immediate effect, or the effective date of this Act if this Act
56-11 does not take immediate effect, the Texas Natural Resource
56-12 Conservation Commission and the comptroller of public accounts
56-13 shall adopt rules necessary to implement the diesel emissions
56-14 reduction incentive program established under Subchapter C, Chapter
56-15 386, Health and Safety Code, as added by this Act.
56-16 (b) Not later than September 1, 2001, the Texas Natural
56-17 Resource Conservation Commission, as required by Section 386.103,
56-18 Health and Safety Code, as added by this Act, shall adopt criteria
56-19 for setting priorities for projects eligible for grants under
56-20 Subchapter C, Chapter 386, Health and Safety Code, as added by this
56-21 Act.
56-22 (c) Not later than August 1, 2002, the Texas Natural
56-23 Resource Conservation Commission and the comptroller of public
56-24 accounts shall adopt rules necessary to implement the motor vehicle
56-25 purchase or lease incentive program established under Subchapter D,
56-26 Chapter 386, Health and Safety Code, as added by this Act.
56-27 (d) Not later than August 1, 2002, the Texas Natural
57-1 Resource Conservation Commission shall publish the first annual
57-2 list of vehicles eligible for light-duty motor vehicle purchase or
57-3 lease incentives, as required by Section 386.156, Health and Safety
57-4 Code, as added by this Act.
57-5 SECTION 14. The vehicle purchase or lease incentives
57-6 authorized by Sections 386.113 and 386.153, Health and Safety Code,
57-7 as added by this Act, apply only to the sale or lease of a vehicle
57-8 that occurs on or after January 1, 2002.
57-9 SECTION 15. (a) The Texas Natural Resource Conservation
57-10 Commission shall develop and sponsor a contest in the state's
57-11 public schools to select the best student design for the
57-12 "low-emissions vehicle" insignia authorized by Section 502.186,
57-13 Transportation Code, as added by this Act. Not later than January
57-14 1, 2002, the commission shall provide to each public school in the
57-15 state a contest packet containing rules and procedures for
57-16 participating in the contest, an explanation of the criteria the
57-17 commission will use in selecting the best design, and a deadline
57-18 for the submission of student designs. The commission shall select
57-19 and announce the winner of the contest not later than the 30th day
57-20 after the contest submission deadline. The commission may
57-21 publicize and otherwise promote the contest and the winning design.
57-22 (b) The Texas Natural Resource Conservation Commission shall
57-23 make the "low-emissions vehicle" insignia available to the county
57-24 tax assessor-collector of each county in the state not later than
57-25 the 45th day after the date on which the winning design is selected
57-26 and announced. The county tax assessor-collector of each county in
57-27 the state shall begin issuing the "low-emissions vehicle" insignia
58-1 to persons who qualify for the insignia not later than the 10th
58-2 working day after the date the insignia are available.
58-3 SECTION 16. (a) In making the initial appointments to the
58-4 Texas Emissions Reduction Plan Advisory Board as created by Section
58-5 386.058, Health and Safety Code, as added by this Act, the
58-6 appointing authorities, by mutual agreement, shall designate their
58-7 appointees so that seven members' terms expire February 1, 2002,
58-8 and eight members' terms expire February 1, 2003.
58-9 (b) Appointments to the advisory board shall be made not
58-10 later than July 1, 2001, if this Act takes immediate effect, or not
58-11 later than the effective date of this Act, if this Act does not
58-12 take immediate effect.
58-13 SECTION 17. As soon as practicable after the effective date
58-14 of this Act, the governor shall appoint members to the Texas
58-15 Council on Environmental Technology, as created by Section 387.002,
58-16 Health and Safety Code, as added by this Act. In making the
58-17 initial appointments, the governor shall designate the appointees
58-18 so that three members' terms expire February 1, 2003, four members'
58-19 terms expire February 1, 2005, and four members' terms expire
58-20 February 1, 2007.
58-21 SECTION 18. Not later than the 30th day after the adoption
58-22 of rules governing the new technology research and development
58-23 program established under Chapter 387, Health and Safety Code, as
58-24 added by this Act, the Texas Council on Environmental Technology
58-25 shall issue requests for proposals for projects to be funded under
58-26 the new technology research and development program.
58-27 SECTION 19. On the effective date of this Act, the Texas
59-1 Natural Resource Conservation Commission shall submit to the United
59-2 States Environmental Protection Agency a revision to the state
59-3 implementation plan that deletes the requirements of the
59-4 construction shift and the early purchase of Tier 2 and Tier 3
59-5 equipment and adds the provisions of this Act.
59-6 SECTION 20. (a) Notwithstanding any Act of the 77th
59-7 Legislature, Regular Session, 2001, that purports to abolish all
59-8 funds and accounts created or re-created in the state treasury by
59-9 another Act of the 77th Legislature, Regular Session, 2001, the
59-10 Texas emissions reduction plan fund created by Subchapter F,
59-11 Chapter 386, Health and Safety Code, as added by this Act, and the
59-12 environmental research fund created by Section 387.008, Health and
59-13 Safety Code, as added by this Act, are accounts in the general
59-14 revenue fund and the accounts and money deposited to the accounts
59-15 are exempt from any Act of the 77th Legislature, Regular Session,
59-16 2001, that purports to abolish all funds and accounts created or
59-17 re-created by another Act of the 77th Legislature, Regular Session,
59-18 2001, and to require the deposit of money that would be deposited
59-19 to the credit of a special account or fund be deposited to the
59-20 credit of the unobligated portion of the general revenue fund
59-21 unless the fund, account, or dedication is exempted under that Act.
59-22 (b) This section prevails over any other Act of the 77th
59-23 Legislature, Regular Session, 2001, regardless of the relative
59-24 dates of enactment, that purports to abolish all funds and accounts
59-25 created or re-created in the state treasury by another Act of the
59-26 77th Legislature, Regular Session, 2001, and to require the deposit
59-27 of money that would be deposited to the credit of a special account
60-1 or fund be deposited to the credit of the unobligated portion of
60-2 the general revenue fund unless the fund, account, or dedication is
60-3 exempted under that Act.
60-4 SECTION 21. Section 386.002, Health and Safety Code, as
60-5 added by this Act notwithstanding, the Texas Natural Resource
60-6 Conservation Commission shall submit the final biennial plan report
60-7 required by Section 386.057, Health and Safety Code, as added by
60-8 this Act, to the legislature not later than December 1, 2008.
60-9 SECTION 22. The expiration of Sections 151.0515, 152.0215,
60-10 and 156.054, Tax Code, as added by this Act, does not affect an
60-11 obligation that was incurred, a violation that occurred, or an
60-12 offense that was committed under those sections before the
60-13 expiration date of those sections. An obligation incurred, a
60-14 violation that occurred, or an offense committed before the
60-15 expiration date of those sections is governed by the law in effect
60-16 at the time the obligation was incurred, the violation occurred, or
60-17 the offense was committed, and the former law is continued in
60-18 effect after the expiration date for that purpose. For purposes of
60-19 this section, a violation occurs or an offense is committed before
60-20 the expiration date of those sections if any element of the
60-21 violation or offense occurs before that date.
60-22 SECTION 23. This Act takes effect immediately if it receives
60-23 a vote of two-thirds of all the members elected to each house, as
60-24 provided by Section 39, Article III, Texas Constitution. If this
60-25 Act does not receive the vote necessary for immediate effect, this
60-26 Act takes effect September 1, 2001.