By Brown S.B. No. 5
77R9252 MI-D
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. Subtitle C, Title 5, Health and Safety Code, is
1-6 amended by adding Chapter 386 to read as follows:
1-7 CHAPTER 386. TEXAS EMISSIONS REDUCTION PLAN
1-8 SUBCHAPTER A. GENERAL PROVISIONS
1-9 Sec. 386.001. DEFINITIONS. In this chapter:
1-10 (1) "Advisory board" means the Texas Emissions
1-11 Reduction Plan Advisory Board.
1-12 (2) "Alternative fuel" includes:
1-13 (A) electricity;
1-14 (B) compressed natural gas;
1-15 (C) liquefied hydrogen;
1-16 (D) methanol;
1-17 (E) biodiesel fuel;
1-18 (F) solar power; and
1-19 (G) ethanol.
1-20 (3) "Alternative fuel vehicle" means a motor vehicle
1-21 powered:
1-22 (A) solely by an alternative fuel; or
1-23 (B) by both gasoline, diesel, or other
1-24 conventional fuel and an alternative fuel, if the owner of the
2-1 vehicle certifies to the commission that the vehicle is powered by
2-2 the alternative fuel for 75 percent of the vehicle miles traveled
2-3 each year.
2-4 (4) "Commission" means the Texas Natural Resource
2-5 Conservation Commission.
2-6 (5) "Fund" means the Texas emissions reduction plan
2-7 fund.
2-8 (6) "Incremental cost" means the cost of an
2-9 applicant's project less a baseline cost that would otherwise be
2-10 incurred by an applicant in the normal course of business.
2-11 Incremental costs may include added lease or fuel costs as well as
2-12 additional capital costs.
2-13 (7) "Near nonattainment area" means an area of the
2-14 state designated by the commission as having reasonable potential
2-15 to become a nonattainment area within a stated time.
2-16 (8) "Nonattainment area" means an area so designated
2-17 under Section 107(d) of the federal Clean Air Act (42 U.S.C.
2-18 Section 7407).
2-19 (9) "Plan" means the Texas emissions reduction plan.
2-20 (Sections 386.002-386.050 reserved for expansion
2-21 SUBCHAPTER B. TEXAS EMISSIONS REDUCTION PLAN
2-22 Sec. 386.051. TEXAS EMISSIONS REDUCTION PLAN. (a) The
2-23 commission shall establish and administer the Texas emissions
2-24 reduction plan in accordance with this chapter.
2-25 (b) Under the plan, the commission shall provide grants or
2-26 other funding for:
2-27 (1) the diesel emissions reduction incentive program
3-1 established under Subchapter C;
3-2 (2) the low-emissions vehicle purchase or lease
3-3 incentive program established under Subchapter D;
3-4 (3) the alternative fuel incentive program;
3-5 (4) the energy efficient appliance program and sales
3-6 tax exemption established under Sections 151.355-151.357, Tax Code;
3-7 and
3-8 (5) the new technology development and research
3-9 program established under Subchapter E.
3-10 (c) A project begun before September 1, 2001, is not
3-11 eligible for a grant or other funding under the plan.
3-12 Sec. 386.052. COMMISSION DUTIES. (a) In administering the
3-13 plan established under this chapter and in accordance with the
3-14 requirements of this chapter, the commission shall:
3-15 (1) manage plan funds and oversee the plan;
3-16 (2) produce guidelines, protocols, and criteria for
3-17 eligible projects;
3-18 (3) develop methodologies for evaluating project
3-19 cost-effectiveness;
3-20 (4) prepare reports regarding the progress and
3-21 effectiveness of the plan; and
3-22 (5) take all appropriate and necessary action to
3-23 ensure that emissions reductions achieved through the plan are
3-24 credited by the United States Environmental Protection Agency to
3-25 the appropriate emissions reduction objectives in the state
3-26 implementation plan.
3-27 (b) Appropriate commission objectives for the
4-1 Houston-Galveston and Dallas-Fort Worth state implementation plans
4-2 shall first ensure that affected entities are able to achieve the
4-3 required emissions reductions to comply with the alternative plan
4-4 requirements to meet the construction shift and the accelerated
4-5 purchase rules of the respective implementation plans.
4-6 Sec. 386.053. GUIDELINES AND CRITERIA. (a) The commission
4-7 shall adopt grant guidelines and criteria consistent with the
4-8 requirements of this chapter. The commission shall consider
4-9 examples of similar programs in other states during the development
4-10 of guidelines and criteria.
4-11 (b) Guidelines must include protocols to calculate project
4-12 cost-effectiveness and safeguards to ensure that funded projects
4-13 generate surplus emissions reductions.
4-14 (c) The commission shall make draft guidelines and criteria
4-15 available to the public before the 45th day preceding the date of
4-16 final adoption and shall hold at least one public meeting to
4-17 consider public comments on the draft guidelines and criteria
4-18 before final adoption.
4-19 (d) The commission may propose revisions to the guidelines
4-20 and criteria adopted under this section as necessary to improve the
4-21 ability of the plan to achieve its goals. Revisions may include
4-22 adding new eligible categories, as appropriate, for the diesel
4-23 emissions reduction incentive program established under Subchapter
4-24 C. The commission shall make a proposed revision available to the
4-25 public before the 45th day preceding the date of final adoption of
4-26 the revision and shall hold at least one public meeting to consider
4-27 public comments on the proposed revision before final adoption.
5-1 (e) The rulemaking requirements of Chapter 2001, Government
5-2 Code, do not apply to the adoption or revision of guidelines and
5-3 criteria under this section.
5-4 Sec. 386.054. MONITORING PROCEDURES. (a) The commission
5-5 shall develop procedures for monitoring whether the emissions
5-6 reductions projected for projects awarded grants under this chapter
5-7 are actually achieved. Monitoring procedures may include project
5-8 audits and contract requirements that the grant recipient provide
5-9 information annually about the project. If the commission requires
5-10 annual reports, it shall keep to a minimum the amount of
5-11 information required from a recipient and shall keep the report
5-12 format simple and convenient.
5-13 (b) Monitoring and auditing procedures must be sufficient to
5-14 enable emissions reductions generated by funded projects to be
5-15 fully credited to air quality plans.
5-16 (c) The commission may revise monitoring and audit
5-17 procedures from time to time as necessary or appropriate to enhance
5-18 the effectiveness of the plan.
5-19 Sec. 386.055. STAFF AND TECHNICAL SUPPORT. The commission
5-20 shall provide staff or technical support as needed within available
5-21 budgetary resources to assist projects awarded grants or other
5-22 funding under this chapter.
5-23 Sec. 386.056. REPORTING REQUIREMENTS. (a) The commission,
5-24 in consultation with the advisory board, annually shall review
5-25 programs established under the plan and shall publish a report that
5-26 describes each project funded under the plan, the amount granted
5-27 for the project, the emissions reductions attributable to the
6-1 project, and the cost-effectiveness of the project.
6-2 (b) Not later than December 1, 2002, and not later than
6-3 December 1 of each subsequent second year through December 1, 2008,
6-4 the commission shall publish and submit to the legislature a
6-5 biennial plan report. The report must include the information
6-6 included in the annual reports prepared under Subsection (a) and
6-7 specific information for individual programs as required by
6-8 Subsections (c) and (d).
6-9 (c) For projects funded as part of the fueling
6-10 infrastructure demonstration program under Subchapter C, the report
6-11 must:
6-12 (1) discuss and evaluate:
6-13 (A) the fueling infrastructure facilities funded
6-14 under that subchapter;
6-15 (B) the degree to which the funded facilities
6-16 are supporting covered vehicle projects;
6-17 (C) the amount of fuel or electricity dispensed
6-18 for each facility; and
6-19 (D) associated emissions reductions and
6-20 cost-effectiveness; and
6-21 (2) make a finding regarding the need for additional
6-22 appropriations from the fund to improve the ability of the program
6-23 to achieve its goals.
6-24 (d) For projects funded under the new technology development
6-25 and research program under Subchapter E, the report must describe
6-26 the technical objectives and accomplishments of the project and the
6-27 progress of the project technology toward commercialization.
7-1 (e) The report must:
7-2 (1) account for money received, money disbursed as
7-3 grants, money reserved for grants based on project approvals, and
7-4 any recommended transfer of money between allocations and must
7-5 estimate future demand for grant funds under the program;
7-6 (2) describe the overall effectiveness of the plan in
7-7 delivering the emissions reductions required by air quality plans,
7-8 including rate-of-progress plans and milestone and conformity
7-9 tests;
7-10 (3) evaluate the effectiveness of the plan in
7-11 soliciting and evaluating project applications, providing awards in
7-12 a timely manner, and monitoring project implementation; and
7-13 (4) describe adjustments made to project selection
7-14 criteria and recommend any further needed changes or adjustments to
7-15 the grant program, including changes in grant award criteria,
7-16 administrative procedures, or statutory provisions that would
7-17 enhance the plan's effectiveness and efficiency.
7-18 (f) The commission shall request public comment and hold
7-19 public meetings on each draft biennial report and, in producing a
7-20 final biennial report, shall consider and respond to all
7-21 significant comments received.
7-22 Sec. 386.057. TEXAS EMISSIONS REDUCTION PLAN ADVISORY BOARD.
7-23 (a) The Texas Emissions Reduction Plan Advisory Board consists of
7-24 13 members, 5 of whom shall be appointed by the governor, 4 by the
7-25 lieutenant governor, and 4 by the speaker of the house of
7-26 representatives.
7-27 (b) Appointments to the advisory board must include
8-1 representatives from:
8-2 (1) the commission;
8-3 (2) the General Land Office;
8-4 (3) the agriculture industry;
8-5 (4) the trucking industry;
8-6 (5) the automobile industry;
8-7 (6) the construction industry;
8-8 (7) the environmental community;
8-9 (8) the marine or port industry;
8-10 (9) regional transportation;
8-11 (10) the senate;
8-12 (11) the house of representatives;
8-13 (12) the Texas Council on Environmental Technology;
8-14 and
8-15 (13) local government.
8-16 (c) Members of the advisory board serve staggered two-year
8-17 terms. The terms of six members expire February 1 of each
8-18 even-numbered year. The terms of seven members expire February 1
8-19 of each odd-numbered year. A member may be reappointed to a
8-20 subsequent term.
8-21 (d) The advisory board annually shall elect a presiding
8-22 officer.
8-23 (e) The advisory board shall review the first biennial
8-24 report prepared by the commission under Section 386.056 on the
8-25 implementation of the plan, hold a public hearing on the need for a
8-26 continuing plan, and prepare and submit a report to the governor
8-27 and the legislature, on or before September 1, 2002, on the
9-1 desirability of a continuing plan, similar to the plan established
9-2 under this chapter, that will significantly contribute toward
9-3 attaining air quality standards in Texas. In the report, the
9-4 advisory board shall recommend changes to revenue sources for
9-5 funding financial incentives and any legislative or budget action
9-6 needed to implement a continuing plan.
9-7 Sec. 386.058. EXPIRATION OF CONSTRUCTION SHIFT. On the date
9-8 the commission certifies the achievement of sufficient emissions
9-9 reductions in nonattainment areas and near nonattainment areas of
9-10 this state, that part of the state implementation plan that
9-11 restricts the hours during which construction equipment may be
9-12 operated in nonattainment or near nonattainment areas expires.
9-13 (Sections 386.059-386.100 reserved for expansion
9-14 SUBCHAPTER C. DIESEL EMISSIONS REDUCTION INCENTIVE PROGRAM
9-15 Sec. 386.101. DEFINITIONS. In this subchapter:
9-16 (1) "Cost-effectiveness" means the ratio of the total
9-17 dollar amount expended to the total number of tons of oxides of
9-18 nitrogen emissions reduction attributable to that expenditure.
9-19 Cost-effectiveness for the program as a whole and for particular
9-20 projects under the program is calculated as provided in Sections
9-21 386.105 and 386.106.
9-22 (2) "Covered engine" includes any internal combustion
9-23 engine or any electric motor and drive powering a covered source.
9-24 (3) "Covered source" includes the following
9-25 diesel-powered vehicles or engines:
9-26 (A) onroad vehicles of 14,000 pounds gross
9-27 vehicle weight rating or greater;
10-1 (B) offroad nonrecreational equipment and
10-2 vehicles;
10-3 (C) locomotives;
10-4 (D) diesel marine vessels;
10-5 (E) stationary agricultural engines; and
10-6 (F) other high-emitting diesel engine categories
10-7 established by the commission.
10-8 (4) "Covered vehicle" includes any vehicle or piece of
10-9 equipment powered by a covered engine.
10-10 (5) "Offroad engine" means an internal combustion
10-11 engine that is:
10-12 (A) in or on a piece of equipment that is
10-13 self-propelled or that propels itself and performs another
10-14 function, excluding a vehicle that is used solely for competition;
10-15 (B) in or on a piece of equipment that is
10-16 intended to be propelled while performing its function; or
10-17 (C) designed to be and capable of being carried
10-18 or moved from one location to another.
10-19 (6) "Offroad equipment" means equipment that is
10-20 powered by an offroad engine.
10-21 (7) "Offroad vehicle" means a vehicle that is powered
10-22 by an offroad engine. The term does not include a motor vehicle or
10-23 a vehicle used solely for competition.
10-24 (8) "Program" means the diesel emissions reduction
10-25 incentive program established under this subchapter.
10-26 (9) "New vehicle" means a motor vehicle that has not
10-27 been the subject of a first sale.
11-1 (10) "Qualifying fuel" includes any liquid or gaseous
11-2 fuel or additives verified by the United States Environmental
11-3 Protection Agency, other than standard gasoline or diesel, that is
11-4 ultimately dispensed into a covered vehicle that provides
11-5 reductions of emissions of oxides of nitrogen.
11-6 (11) "Repower" means to replace an old engine powering
11-7 a covered source with:
11-8 (A) a newer engine certified to more stringent
11-9 emissions standards; or
11-10 (B) electric motors or drives.
11-11 (12) "Retrofit" means to equip an engine and fuel
11-12 system with new emissions-reducing parts or equipment after
11-13 manufacture of the original engine and fuel system.
11-14 (13) "Very-low-emissions vehicle" means a vehicle
11-15 that:
11-16 (A) qualifies as an ultra-low-emissions vehicle
11-17 or a super-ultra-low-emissions vehicle when it is a new vehicle; or
11-18 (B) is modified with the approval and warranty
11-19 of the original equipment manufacturer to qualify as a
11-20 very-low-emissions vehicle within 12 months of delivery to an owner
11-21 for private or commercial use.
11-22 (14) "Super-ultra-low-emissions vehicle" means a
11-23 vehicle certified to super-ultra-low-emissions standards.
11-24 (15) "Ultra-low-emissions vehicle" means a vehicle
11-25 certified to ultra-low-emissions standards.
11-26 (16) "Zero-emissions vehicle" means a vehicle
11-27 certified to zero-emissions standards.
12-1 Sec. 386.102. PROGRAM. (a) The commission shall establish
12-2 and administer a diesel emissions reduction incentive program.
12-3 Under the program, the commission shall provide grants for eligible
12-4 projects to offset the incremental cost of projects that reduce
12-5 emissions of oxides of nitrogen from high-emitting diesel sources
12-6 in nonattainment and near nonattainment areas of the state. The
12-7 commission shall determine the eligibility of projects.
12-8 (b) Projects that may be considered for a grant under the
12-9 program include:
12-10 (1) purchase or lease of new very-low-emissions or
12-11 zero-emissions covered offroad vehicles or covered engines for
12-12 offroad equipment;
12-13 (2) emissions-reducing retrofit of covered engines;
12-14 (3) repower projects;
12-15 (4) purchase and use of emissions-reducing add-on
12-16 equipment for covered vehicles;
12-17 (5) development and demonstration of practical,
12-18 low-emissions retrofit technologies, repower options, and advanced
12-19 technologies for covered engines and vehicles with very low
12-20 emissions of oxides of nitrogen;
12-21 (6) use of alternative fuel; and
12-22 (7) installation of fueling or electrification
12-23 infrastructure.
12-24 (c) A new purchase, lease, retrofit, repower, or add-on
12-25 equipment project is not eligible for a grant under this subchapter
12-26 if the new purchase, lease, retrofit, repower, or add-on equipment
12-27 is required by any local, state, or federal law, rule or
13-1 regulation, memorandum of agreement, or other legally binding
13-2 document. This subsection does not apply to:
13-3 (1) an otherwise qualified project, regardless of the
13-4 fact that the state implementation plan assumes that the change in
13-5 equipment, vehicles, or operations will occur, if on the date the
13-6 grant is awarded the change is not required by any local, state, or
13-7 federal law, rule or regulation, memorandum of agreement, or other
13-8 legally binding document; or
13-9 (2) the purchase of a low-emissions vehicle or
13-10 equipment required only by corporate or controlling board policy.
13-11 Sec. 386.103. APPLICATION FOR GRANT. (a) Any individual,
13-12 corporate entity, or public agency that owns one or more covered
13-13 vehicles that operate primarily within a nonattainment area or near
13-14 nonattainment area of this state or that otherwise contribute
13-15 substantially to the state inventory of emissions of oxides of
13-16 nitrogen may apply for a grant under the program.
13-17 (b) An application for a grant under this subchapter must be
13-18 made on an application provided by the commission and must contain
13-19 information required by the commission, including:
13-20 (1) a detailed description of the proposed project;
13-21 (2) information necessary for the commission to
13-22 determine whether the project meets eligibility requirements for
13-23 the type of project proposed, including a statement of the amounts
13-24 of any other public financial assistance the project will receive;
13-25 and
13-26 (3) other information the commission may require.
13-27 Sec. 386.104. ELIGIBILITY REQUIREMENTS. (a) A proposed
14-1 project must meet the requirements of this section to be eligible
14-2 for a grant under the program.
14-3 (b) For a proposed project, other than a project involving a
14-4 marine vessel or engine, not less than 75 percent of vehicle miles
14-5 traveled or hours of operation projected for the five years
14-6 immediately following the award of a grant must be projected to
14-7 take place in a nonattainment area or near nonattainment area of
14-8 this state. For a proposed project involving a marine vessel or
14-9 engine, the vessel or engine must be operated in the intercoastal
14-10 waterways or bays of a nonattainment area or near nonattainment
14-11 area of this state for a sufficient amount of time over the
14-12 lifetime of the project to meet the cost-effectiveness requirements
14-13 of Section 386.105.
14-14 (c) Each proposed project must meet the cost-effectiveness
14-15 requirements of Sections 386.105 and 386.106.
14-16 (d) A proposed repower project must meet commission
14-17 requirements relating to baseline emissions levels of the engines
14-18 being replaced under the project.
14-19 (e) A proposed retrofit, repower, or add-on equipment
14-20 project must document, in a manner acceptable to the commission, a
14-21 reduction in emissions of oxides of nitrogen of at least 30 percent
14-22 compared with the baseline emissions adopted by the commission for
14-23 the relevant engine year and application. After study of available
14-24 emissions reduction technologies, after public notice and comment,
14-25 and after consultation with the advisory board, the commission may
14-26 revise the minimum percentage reduction in emissions of oxides of
14-27 nitrogen required by this subsection to improve the ability of the
15-1 program to achieve its goals.
15-2 (f) For a proposed project involving the purchase of new
15-3 very-low-emissions or zero-emissions offroad equipment, the engines
15-4 must be certified to an optional low oxides of nitrogen emissions
15-5 standard established by the commission, except as otherwise
15-6 provided by this subsection. For a proposed project involving the
15-7 purchase of new very-low-emissions or zero-emissions offroad
15-8 equipment for which the described standard is not available, the
15-9 project proponent must document, to the commission's satisfaction,
15-10 that the very-low-emissions or zero-emissions engine emits not more
15-11 than 70 percent of the oxides of nitrogen emitted by a new engine
15-12 certified to the baseline oxides of nitrogen emissions standard for
15-13 that engine. If a baseline emissions standard does not exist for
15-14 new offroad equipment in a particular category, the commission by
15-15 rule shall establish an appropriate baseline emissions level for
15-16 comparison purposes.
15-17 (g) The commission may approve payments to offset the
15-18 incremental cost, over the expected lifetime of the vehicle, of
15-19 alternative fuel used in a vehicle if the proposed project as a
15-20 whole, including the incremental fuel cost, meets the requirements
15-21 of this subchapter. The commission shall develop an appropriate
15-22 method for converting incremental fuel costs over the vehicle
15-23 lifetime into an initial cost for purposes of determining
15-24 cost-effectiveness as required by Section 386.105.
15-25 Sec. 386.105. CALCULATION OF COST-EFFECTIVENESS. (a) In
15-26 calculating cost-effectiveness, one-time grants of money at the
15-27 beginning of a project shall be annualized using a time value of
16-1 public funds or discount rate determined for each project by the
16-2 commission, taking into account the interest rate on bonds,
16-3 interest earned by state funds, and other factors the commission
16-4 considers appropriate. Cost-effectiveness shall be calculated by
16-5 dividing annualized costs by average annual emissions reductions of
16-6 oxides of nitrogen in the affected area.
16-7 (b) The commission shall establish reasonable methodologies
16-8 for evaluating project cost-effectiveness consistent with
16-9 Subsection (a) and with accepted methods.
16-10 (c) The commission shall develop protocols for calculating
16-11 surplus oxides of nitrogen emissions reductions in nonattainment
16-12 and near nonattainment areas of this state from representative
16-13 project types over the life of the projects.
16-14 (d) The commission may include in cost-effectiveness
16-15 determinations only reductions in oxides of nitrogen emissions that
16-16 are achieved in nonattainment and near nonattainment areas of this
16-17 state.
16-18 Sec. 386.106. COST-EFFECTIVENESS CRITERIA; DETERMINATION OF
16-19 GRANT AMOUNT. (a) The commission may not award a grant for a
16-20 proposed project the cost-effectiveness of which, calculated in
16-21 accordance with Section 386.105 and rules adopted under that
16-22 section, exceeds $13,000 per ton of oxides of nitrogen emissions
16-23 reduced in the nonattainment or near nonattainment area for which
16-24 the project is proposed.
16-25 (b) The commission may not award a grant that, net of taxes,
16-26 provides an amount that exceeds the incremental cost of the
16-27 proposed project.
17-1 (c) The commission shall adopt guidelines for capitalizing
17-2 incremental lease costs so those costs may be offset by a grant
17-3 under this subchapter.
17-4 (d) In determining the amount of a grant under this
17-5 subchapter, the commission shall reduce the incremental cost of a
17-6 proposed new purchase, lease, retrofit, repower, or add-on
17-7 equipment project by the value of any existing financial incentive
17-8 that directly reduces the cost of the proposed project, including
17-9 tax credits or deductions, other grants, or any other public
17-10 financial assistance.
17-11 (e) The commission may establish maximum grant awards per
17-12 vehicle or engine replaced for projects that propose to repower
17-13 offroad equipment.
17-14 Sec. 386.107. ADJUSTMENT TO MAXIMUM COST-EFFECTIVENESS
17-15 AMOUNT AND AWARD AMOUNT. (a) After study of available emissions
17-16 reduction technologies and costs and after public notice and
17-17 comment, the commission, in consultation with the advisory board,
17-18 may reduce the values of the maximum grant award criteria
17-19 established in Section 386.106 to improve the ability of the
17-20 program to achieve its goals.
17-21 (b) To account for inflation, the commission, in
17-22 consultation with the advisory board, annually may adjust the
17-23 maximum cost-effectiveness amount established in Section 386.106(a)
17-24 and any per-project maximum set by the commission under Section
17-25 386.106(e).
17-26 Sec. 386.108. AVAILABILITY OF EMISSIONS REDUCTION CREDITS.
17-27 (a) A project funded under this program may not be used for credit
18-1 under any state or federal emissions reduction credit averaging,
18-2 banking, or trading program.
18-3 (b) Except as provided by Section 386.058, an emissions
18-4 reduction generated by the program may not be used as a marketable
18-5 emissions reduction credit or to offset any emissions reduction
18-6 obligation.
18-7 (c) A project involving a new emissions reduction measure
18-8 that would otherwise generate marketable credits under state or
18-9 federal emissions reduction credit averaging, banking, or trading
18-10 programs is not eligible for funding under the program unless the
18-11 project includes the transfer of the marketable credits to the end
18-12 user and the retirement of the credits.
18-13 (d) An industrial point source located in the
18-14 Houston-Galveston nonattainment area may use emissions reductions
18-15 generated by the program to offset the requirements of commission
18-16 rules relating to control of air pollution from nitrogen compounds
18-17 if:
18-18 (1) the industrial point source contributes to the
18-19 fund $75,000 annually for each ton of emissions credit it acquires,
18-20 not to exceed one ton per day;
18-21 (2) the facility demonstrates to the commission's
18-22 satisfaction that the facility will be in full compliance with the
18-23 commission's emissions reduction rules not later than the fifth
18-24 anniversary of the date on which the first credits are purchased;
18-25 and
18-26 (3) the commission approves a petition by the
18-27 applicant that demonstrates that it is technically infeasible for
19-1 the applicant to comply with the commission's emissions reduction
19-2 requirements above 80 percent.
19-3 Sec. 386.109. FUELING INFRASTRUCTURE DEMONSTRATION PROJECTS.
19-4 (a) The commission shall provide limited funding from money
19-5 available for the diesel emissions reduction incentive program for
19-6 fueling infrastructure demonstration projects to:
19-7 (1) provide initial support for low-emissions vehicle
19-8 projects at the start of the program; and
19-9 (2) assess whether funding for infrastructure is an
19-10 appropriate and cost-effective use of public funds.
19-11 (b) To implement the requirement of Subsection (a), the
19-12 commission shall:
19-13 (1) solicit applications for a balanced mix of
19-14 demonstration projects involving fueling and electrification
19-15 infrastructure that is linked to covered vehicle projects and
19-16 consistent with program goals;
19-17 (2) coordinate infrastructure projects with covered
19-18 vehicle projects representing a broad range of fuels, technologies,
19-19 and applications as appropriate and consistent with the goals of
19-20 this chapter;
19-21 (3) adopt guidelines and criteria for fueling
19-22 infrastructure projects to be funded under the program; and
19-23 (4) oversee, monitor, and evaluate the use of grants
19-24 awarded under this program and report on the effectiveness of this
19-25 grant program in relation to the purposes and goals of this
19-26 chapter.
19-27 Sec. 386.110. ELIGIBLE FUELING INFRASTRUCTURE DEMONSTRATION
20-1 PROJECTS. The commission may consider for funding under Section
20-2 386.109:
20-3 (1) the purchase and installation of equipment at a
20-4 site that is designed primarily to dispense qualifying fuel; and
20-5 (2) infrastructure projects designed to dispense
20-6 electricity to covered vehicles.
20-7 Sec. 386.111. APPLICATION PACKAGE FOR FUELING INFRASTRUCTURE
20-8 DEMONSTRATION PROJECTS. (a) The commission shall develop a simple,
20-9 standardized application package for fueling infrastructure
20-10 demonstration project grants under this subchapter. The package
20-11 must include:
20-12 (1) an application form;
20-13 (2) a brief description of:
20-14 (A) the program;
20-15 (B) the projects that are eligible for available
20-16 funding;
20-17 (C) the selection criteria and evaluation
20-18 process; and
20-19 (D) the required documentation;
20-20 (3) the name of a person or office to contact for more
20-21 information;
20-22 (4) an example of the contract that an applicant will
20-23 be required to execute before receiving a grant; and
20-24 (5) any other information the commission considers
20-25 useful to inform the applicant and expedite the application
20-26 process.
20-27 (b) The application form shall require as much information
21-1 as the commission determines is necessary to properly evaluate each
21-2 project but shall otherwise minimize the information required.
21-3 (c) The commission may not require an applicant, as part of
21-4 the application process, to calculate tons of emissions reduced or
21-5 cost-effectiveness.
21-6 Sec. 386.112. APPLICATION REVIEW PROCEDURES. (a) The
21-7 commission shall review an application for a grant for a project
21-8 authorized under this subchapter, including an application for a
21-9 grant for a fueling infrastructure demonstration project,
21-10 immediately on receipt of the application. If the commission
21-11 determines that an application is incomplete, the commission shall
21-12 notify the applicant, not later than the 15th working day after the
21-13 date of the determination, with an explanation of what is missing
21-14 from the application. The commission shall record the date and
21-15 time of receipt of each application the commission determines to be
21-16 complete and shall evaluate the completed application according to
21-17 the appropriate project criteria. The commission shall approve, as
21-18 soon as possible and not later than the 60th working day after the
21-19 date the complete application is received, an application that
21-20 meets the appropriate project criteria.
21-21 (b) The commission shall make every effort to expedite the
21-22 application review process and to award grants to qualified
21-23 projects in a timely manner. To the extent possible, the
21-24 commission shall coordinate project review and approval with any
21-25 timing constraints related to project purchases or installations to
21-26 be made by an applicant.
21-27 (c) The commission may deny an application for a project
22-1 that does not meet the applicable project criteria or that the
22-2 commission determines is not made in good faith, is not credible,
22-3 or is not in compliance with this chapter and the goals of this
22-4 chapter.
22-5 (d) The commission shall award a grant under this subchapter
22-6 in conjunction with the execution of a contract that obligates the
22-7 commission to make the grant and the recipient to perform the
22-8 actions described in the recipient's grant application. The
22-9 contract must incorporate provisions for recapturing grant money in
22-10 proportion to any loss of emissions reductions or underachievement
22-11 in dispensing qualifying fuel compared with the volume of emissions
22-12 reductions or amount of fuel dispensed that was projected in the
22-13 grant application. Grant money recaptured under the contract
22-14 provision shall be deposited in the fund and reallocated for other
22-15 projects under this subchapter.
22-16 Sec. 386.113. STAFF AND TECHNICAL SUPPORT. The commission
22-17 shall provide staff or technical support as needed within available
22-18 budgetary resources to assist infrastructure project proponents in
22-19 addressing issues common to eligible infrastructure projects,
22-20 including permitting and safety requirements.
22-21 Sec. 386.114. TOTAL COST-EFFECTIVENESS CALCULATION. The
22-22 commission shall calculate the total cost-effectiveness of oxides
22-23 of nitrogen emissions reductions resulting from use of vehicles
22-24 that fuel at facilities funded under the fueling infrastructure
22-25 demonstration program. The total cost-effectiveness calculation
22-26 shall include program funding provided to vehicles and funding
22-27 provided under the fueling infrastructure demonstration program.
23-1 (Sections 386.115-386.150 reserved for expansion
23-2 SUBCHAPTER D. LOW-EMISSIONS VEHICLE PURCHASE
23-3 OR LEASE INCENTIVE PROGRAM
23-4 Sec. 386.151. DEFINITIONS. In this subchapter:
23-5 (1) "Heavy light-duty truck" means a light-duty truck
23-6 with a gross vehicle weight rating of more than 6,000 pounds.
23-7 (2) "Heavy-duty engine" means an engine that the
23-8 engine manufacturer could reasonably expect to be used for motive
23-9 power in a heavy-duty vehicle.
23-10 (3) "Heavy-duty vehicle" means a motor vehicle that
23-11 has:
23-12 (A) a gross vehicle weight rating of more than
23-13 8,500 pounds;
23-14 (B) a vehicle curb weight of more than 6,000
23-15 pounds; or
23-16 (C) a basic vehicle frontal area of more than 45
23-17 square feet.
23-18 (4) "Light light-duty truck" means a light-duty truck
23-19 that has a gross vehicle weight rating of 6,000 pounds or less.
23-20 (5) "Light-duty truck" means a motor vehicle:
23-21 (A) that has:
23-22 (i) a gross vehicle weight rating of 8,500
23-23 pounds or less;
23-24 (ii) a vehicle curb weight of 6,000 pounds
23-25 or less; or
23-26 (iii) a basic vehicle frontal area of 45
23-27 square feet or less; and
24-1 (B) that is:
24-2 (i) designed primarily to transport
24-3 property or is derived from a vehicle designed primarily to
24-4 transport property;
24-5 (ii) designed primarily to transport
24-6 persons and has a seating capacity of more than 12 persons; and
24-7 (iii) available with special features
24-8 enabling off-street or off-highway operation and use.
24-9 (6) "Light-duty vehicle" means a passenger car or a
24-10 vehicle derived from a passenger car with a seating capacity of not
24-11 more than 12 persons.
24-12 (7) "Medium-duty passenger vehicle" means a heavy-duty
24-13 vehicle with a gross vehicle weight rating of 10,000 pounds or less
24-14 designed primarily to transport persons. The term does not include
24-15 a vehicle that:
24-16 (A) is an incomplete truck;
24-17 (B) has a seating capacity of more than 12
24-18 persons;
24-19 (C) is designed for more than nine persons in
24-20 seating behind the driver's seat; or
24-21 (D) is equipped with an open cargo area of 72
24-22 inches or more in interior length.
24-23 (8) "Open-cargo area" includes a:
24-24 (A) truck box;
24-25 (B) truck bed; or
24-26 (C) covered box not readily accessible from the
24-27 passenger compartment.
25-1 Sec. 386.152. LOW-EMISSIONS VEHICLE PURCHASE OR LEASE
25-2 INCENTIVE PROGRAM. (a) The commission shall develop a
25-3 low-emissions vehicle purchase or lease incentive program in
25-4 accordance with this subchapter and shall adopt rules necessary to
25-5 implement the program.
25-6 (b) The program shall authorize incentives for the purchase
25-7 or lease of new low-emissions vehicles according to the schedules
25-8 provided by Sections 386.153-386.155 and to Section 386.156, to be
25-9 implemented at the point of sale or lease.
25-10 Sec. 386.153. LOW-EMISSIONS VEHICLE PURCHASE OR LEASE
25-11 INCENTIVE SCHEDULE: LIGHT-DUTY VEHICLES. (a) A light-duty vehicle
25-12 or a light light-duty truck is eligible for a low-emissions vehicle
25-13 purchase or lease incentive according to the following schedule:
25-14 Incentive emissions standard Incentive amount
25-15 (g/mi)
25-16 0.04 $1,000
25-17 0.03 $2,000
25-18 0.02 $3,000
25-19 0.00 $4,000
25-20 (b) A heavy light-duty truck is eligible for a low-emissions
25-21 vehicle purchase or lease incentive according to the following
25-22 schedule:
25-23 Incentive emissions standard Incentive amount
25-24 (g/mi)
25-25 0.04 $2,000
25-26 0.03 $4,000
25-27 0.02 $6,000
26-1 0.00 $8,000
26-2 Sec. 386.154. LOW-EMISSIONS VEHICLE PURCHASE OR LEASE
26-3 INCENTIVE SCHEDULE: MEDIUM-DUTY PASSENGER VEHICLES. A medium-duty
26-4 passenger vehicle is eligible for a low-emissions vehicle purchase
26-5 or lease incentive according to the following schedule:
26-6 Incentive emissions standard Incentive amount
26-7 (g/mi)
26-8 0.04 $2,000
26-9 0.03 $4,000
26-10 0.02 $6,000
26-11 0.00 $8,000
26-12 Sec. 386.155. LOW-EMISSIONS VEHICLE PURCHASE OR LEASE
26-13 INCENTIVE SCHEDULE: HEAVY-DUTY VEHICLES. A heavy-duty vehicle is
26-14 eligible for a low-emissions vehicle purchase or lease incentive
26-15 according to the following schedule:
26-16 Incentive emissions standard Incentive amount
26-17 (g/bhp-hr)
26-18 2002-2003 2004-2005
26-19 2.0 0.15 $8,000
26-20 1.5 0.10 $9,000
26-21 0.2 0.05 $10,000
26-22 0.00 0.00 $12,000
26-23 Sec. 386.156. ALTERNATIVE FUEL VEHICLES. (a) An alternative
26-24 fuel vehicle purchased or leased for use as a fleet vehicle is
26-25 eligible under this subchapter for a low-emissions vehicle purchase
26-26 or lease incentive. An alternative fuel vehicle purchased or
26-27 leased wholly or in part with grant money or another incentive
27-1 awarded under this chapter is not eligible for an incentive under
27-2 this subchapter.
27-3 (b) The owner of a dual fuel vehicle that receives a
27-4 low-emissions vehicle purchase or lease incentive under this
27-5 section must certify to the commission each year for the first five
27-6 years following the purchase or lease of the vehicle that the
27-7 vehicle used an alternative fuel for at least 75 percent of the
27-8 vehicle miles traveled during the preceding year. The owner is
27-9 liable to the commission, for any year in which the certification
27-10 cannot be made, for an amount equal to the amount of the incentive
27-11 prorated for the period of time the vehicle could not be certified.
27-12 Sec. 386.157. MANUFACTURER'S CERTIFICATION OF LOW-EMISSIONS
27-13 VEHICLES. At the beginning of but not later than July 1 of each
27-14 vehicle model year, a manufacturer of motor vehicles that intends
27-15 to sell motor vehicles in this state during that model year shall
27-16 certify to the commission the new vehicle models that the
27-17 manufacturer intends to sell in this state during that model year
27-18 that meet the incentive emissions standards established by the
27-19 schedules set out under Sections 386.153-386.155.
27-20 Sec. 386.158. LIST OF ELIGIBLE VEHICLES. (a) On August 1
27-21 each year the commission shall publish a list of the new model
27-22 low-emissions vehicles that are certified by the manufacturer to
27-23 meet the incentive emissions standards and are qualified for a
27-24 low-emissions vehicle purchase or lease incentive under this
27-25 subchapter on purchases or leases during that model year.
27-26 (b) The comptroller shall distribute the list of certified
27-27 vehicles to new vehicle dealerships.
28-1 Sec. 386.159. VEHICLE EMISSIONS INFORMATION LABEL. (a) To
28-2 enable consumers to make informed purchase decisions based on the
28-3 relative amounts of emissions produced by vehicles within each
28-4 vehicle class, the commission by rule shall require that each new
28-5 passenger car, light-duty truck, and medium-duty passenger vehicle
28-6 for sale or lease in this state display a clearly legible label
28-7 that shows the vehicle's 5-Star Green Vehicle Class Rating under
28-8 the United States Environmental Protection Agency's 5-star green
28-9 vehicle class rating system.
28-10 (b) The label must also contain information regarding:
28-11 (1) the availability of low-emissions vehicle purchase
28-12 or lease incentives on new vehicles sold or leased in this state;
28-13 and
28-14 (2) the eligibility of the particular vehicle for the
28-15 low-emissions vehicle purchase or lease incentive.
28-16 Sec. 386.160. POINT-OF-SALE OR POINT-OF-LEASE INCENTIVE;
28-17 REPORT TO COMPTROLLER. (a) A person who purchases or leases during
28-18 the model year in which it is first offered for sale or lease a new
28-19 low-emissions vehicle that has been certified under Section 386.157
28-20 as eligible for an incentive under this subchapter or an
28-21 alternative fuel vehicle for use as a fleet vehicle is eligible to
28-22 receive the incentive at the time and point of sale or lease
28-23 according to the applicable incentive schedule.
28-24 (b) A new motor vehicle dealer or leasing agent shall credit
28-25 a purchaser or lessee described under Subsection (a) with the
28-26 appropriate incentive as part of the sales or lease transaction.
28-27 The dealer or agent shall report to the comptroller, at the
29-1 beginning of each calendar month and in the manner prescribed by
29-2 the comptroller, the amount of incentives credited by the dealer or
29-3 agent during the preceding calendar month.
29-4 Sec. 386.161. PUBLIC INFORMATION. (a) The commission in
29-5 cooperation with the comptroller shall develop and implement a
29-6 program to inform the public about the low-emissions vehicle
29-7 purchase or lease incentive program.
29-8 (b) County tax assessor-collectors shall insert a notice
29-9 describing the low-emissions vehicle purchase or lease incentive
29-10 program with each annual vehicle registration renewal notice.
29-11 (c) A new motor vehicle dealer or leasing agent may retain
29-12 from the amounts reimbursed by the commission an amount equal to
29-13 two percent of the amount the dealer or agent invoices to the
29-14 commission each month.
29-15 Sec. 386.162. COMPTROLLER TO ACCOUNT FOR LOW-EMISSIONS
29-16 VEHICLE PURCHASE OR LEASE INCENTIVES. (a) The comptroller by rule
29-17 shall develop a method to administer and account for the
29-18 low-emissions vehicle purchase or lease incentives authorized by
29-19 this subchapter, and to administer the fund to timely reimburse new
29-20 motor vehicle dealers or leasing agents for incentive amounts
29-21 credited by the dealer.
29-22 (b) The comptroller may develop forms and instructions for
29-23 new motor vehicle dealers and leasing agents to use in accounting
29-24 for and reporting low-emissions vehicle purchase and lease
29-25 incentives and shall provide new motor vehicle dealers and leasing
29-26 agents with information to assist them in accounting for and
29-27 reporting the incentives.
30-1 Sec. 386.163. REPORT TO COMMISSION; SUSPENSION OF LEASE
30-2 INCENTIVES. (a) The comptroller shall report to the commission
30-3 periodically regarding low-emissions vehicle purchase or lease
30-4 incentives.
30-5 (b) The comptroller shall inform the commission if at any
30-6 time during a fiscal year the balance available in the money
30-7 allocated in the fund for low-emissions vehicle purchase or lease
30-8 incentives falls below 15 percent of the total amount allocated for
30-9 the incentives during that fiscal year.
30-10 (c) If the balance available for low-emissions vehicle
30-11 purchase or lease incentives falls below the amount described in
30-12 Subsection (b), the comptroller by order shall suspend the
30-13 incentives until the comptroller can certify that the balance
30-14 available in the fund for incentives is an amount adequate to
30-15 resume the incentives, but not later than the beginning of the next
30-16 fiscal year. If the comptroller suspends the incentives, the
30-17 comptroller shall immediately notify the commission and all new
30-18 motor vehicle dealers and leasing agents that the incentives have
30-19 been suspended.
30-20 (Sections 386.164-386.200 reserved for expansion
30-21 SUBCHAPTER E. NEW TECHNOLOGY DEVELOPMENT
30-22 AND RESEARCH PROGRAM
30-23 Sec. 386.201. DEFINITIONS. In this subchapter:
30-24 (1) "Council" means the Texas Council on Environmental
30-25 Technology.
30-26 (2) "Program" means the new technology research
30-27 program.
31-1 Sec. 386.202. TEXAS COUNCIL ON ENVIRONMENTAL TECHNOLOGY. (a)
31-2 The Texas Council on Environmental Technology consists of 11
31-3 members appointed by the governor to represent the academic and
31-4 nonprofit communities. The governor shall designate from the
31-5 council members a presiding officer of the council. Members of the
31-6 council serve six-year staggered terms, with the terms of three or
31-7 four members expiring February 1 of each odd-numbered year.
31-8 (b) The council shall work to enhance the entrepreneurial
31-9 and inventive spirit of Texans to assist in developing solutions to
31-10 problems by:
31-11 (1) identifying and evaluating new technologies and
31-12 seeking the approval of the United States Environmental Protection
31-13 Agency for and facilitating the deployment of those technologies;
31-14 and
31-15 (2) streamlining the process by which the commission
31-16 and the United States Environmental Protection Agency recognize and
31-17 give credit for new, innovative, and creative technological
31-18 advancements.
31-19 (c) Council offices and projects shall be housed at The
31-20 University of Texas at Austin.
31-21 Sec. 386.203. NEW TECHNOLOGY RESEARCH PROGRAM. (a) The
31-22 council shall establish and administer a new technology research
31-23 program as provided by this subchapter.
31-24 (b) Under the program, the council shall provide grants to
31-25 be used to support development of emissions-reducing technologies
31-26 that may be used for projects eligible for awards under other
31-27 provisions of this chapter. The primary objective of this
32-1 subchapter is to promote the development of commercialization
32-2 technologies that will support projects that may be funded under
32-3 this chapter.
32-4 Sec. 386.204. SOLICITATION OF NEW TECHNOLOGY PROPOSALS. The
32-5 council from time to time shall issue specific requests for
32-6 proposals (RFPs) or program opportunity notices (PONs) for
32-7 technology projects to be funded under the new technology research
32-8 program.
32-9 Sec. 386.205. ELIGIBLE PROJECTS; PRIORITIES. (a) Grants
32-10 awarded under this subchapter shall be directed toward a balanced
32-11 mix of:
32-12 (1) retrofit and add-on technologies to reduce
32-13 emissions from the existing stock of vehicles targeted by the Texas
32-14 emissions reduction plan;
32-15 (2) advanced technologies for new engines and vehicles
32-16 that produce very low or zero emissions of oxides of nitrogen; and
32-17 (3) air emissions modeling.
32-18 (b) The council shall identify and evaluate and the
32-19 commission may consider making grants for technology projects that
32-20 would allow qualifying fuels to be produced from energy resources
32-21 in this state. In considering projects under this subsection, the
32-22 council shall give preference to projects involving otherwise
32-23 unusable energy resources in this state and producing qualifying
32-24 fuels at prices lower than otherwise available and low enough to
32-25 make the projects to be funded under the program economically
32-26 attractive to local businesses in the area for which the project is
32-27 proposed.
33-1 (c) In soliciting proposals under Section 386.204 and
33-2 determining how to allocate grant money available for projects
33-3 under this subchapter, the council shall give special consideration
33-4 to advanced technologies and retrofit or add-on projects that
33-5 provide multiple benefits by reducing emissions or particulates and
33-6 other air pollutants.
33-7 (d) A project that involves a technology that allows an
33-8 onroad covered vehicle to replace with electric power, while the
33-9 vehicle is parked, the power normally supplied to the vehicle's
33-10 internal combustion engine is eligible for funding under this
33-11 subchapter if the project meets all applicable criteria.
33-12 (e) A project that involves publicly or privately owned
33-13 vehicles or vessels is eligible for funding under this subchapter
33-14 if the project meets all applicable criteria.
33-15 Sec. 386.206. EVIDENCE OF COMMERCIALIZATION POTENTIAL
33-16 REQUIRED. (a) An application for a technology grant under this
33-17 subchapter must show clear and compelling evidence that:
33-18 (1) the proposed technology project has a strong
33-19 commercialization plan and organization; and
33-20 (2) the technology proposed for funding:
33-21 (A) is likely to be offered for commercial sale
33-22 in this state within five years after the date of the application
33-23 for funding; and
33-24 (B) once commercialized, will offer
33-25 opportunities for projects eligible for funding under other
33-26 provisions of this chapter.
33-27 (b) The council shall consider specifically, for each
34-1 proposed technology project application:
34-2 (1) the projected potential for reduced emissions of
34-3 oxides of nitrogen and the cost-effectiveness of the technology
34-4 once it has been commercialized;
34-5 (2) the potential for the technology to contribute
34-6 significantly to air quality goals; and
34-7 (3) the strength of the commercialization plan.
34-8 Sec. 386.207. COST-SHARING. The council may require
34-9 cost-sharing for technology projects funded under this subchapter
34-10 but may not require repayment of grant money.
34-11 Sec. 386.208. ENVIRONMENTAL RESEARCH FUND. (a) The
34-12 environmental research fund is an account in the general revenue
34-13 fund. The fund consists of money from gifts, grants, or donations
34-14 to the fund for designated or general use and from any other source
34-15 designated by the legislature.
34-16 (b) Money in the fund may be used only for the operation and
34-17 projects of the council.
34-18 Sec. 386.209. ADVISORY COMMITTEES. The council may appoint
34-19 advisory committees as necessary or desirable to assist the council
34-20 in performing its duties. An advisory committee may include
34-21 representatives of industry, environmental groups, local
34-22 governments, and agriculture and shall include a representative of
34-23 the commission and a representative of the General Land Office.
34-24 Any senator or representative desiring to do so may participate on
34-25 any advisory committee appointed under this section.
34-26 (Sections 386.210-386.250 reserved for expansion)
34-27 SUBCHAPTER F. TEXAS EMISSIONS REDUCTION PLAN FUND
35-1 Sec. 386.251. FUND. (a) The Texas emissions reduction plan
35-2 fund is an account in the state treasury.
35-3 (b) The fund is administered by the comptroller for the
35-4 benefit of the Texas emissions reduction plan established under
35-5 this chapter.
35-6 (c) The fund consists of money from:
35-7 (1) fees and other amounts charged and collected under
35-8 Sections 502.1675, 502.1715, 521.421(h), 548.5055, and 643.053(b),
35-9 Transportation Code;
35-10 (2) the surcharge on the sale, lease, or rental of new
35-11 or used construction equipment under Section 151.0515, Tax Code;
35-12 (3) surcharges collected under Sections 152.0215 and
35-13 156.054, Tax Code;
35-14 (4) the surcharge collected under Section 31.0265,
35-15 Parks and Wildlife Code;
35-16 (5) the surcharge collected under Article 9035,
35-17 Revised Statutes; and
35-18 (6) payments made by industrial point sources under
35-19 Section 386.108.
35-20 Sec. 386.252. USE OF FUND. (a) Money in the fund may be
35-21 used only to implement and administer programs established under
35-22 the Texas emissions reduction plan and shall be allocated as
35-23 follows:
35-24 (1) for the diesel emissions reduction incentive
35-25 program, 50 percent of the money in the fund, of which:
35-26 (A) 75 percent is targeted for projects in
35-27 nonattainment areas of this state;
36-1 (B) 25 percent is targeted for projects in near
36-2 nonattainment areas of the state; and
36-3 (C) not more than three percent may be used for
36-4 fueling infrastructure demonstration projects;
36-5 (2) for the low-emissions vehicle purchase or lease
36-6 incentive program, 20 percent of the money in the fund, of which:
36-7 (A) 66 percent is targeted toward incentives for
36-8 the purchase or lease of new vehicles larger than 6,000 pounds
36-9 gross vehicle weight rating; and
36-10 (B) 33 percent is targeted toward incentives for
36-11 the purchase or lease of new vehicles of 6,000 pounds gross vehicle
36-12 weight rating or less;
36-13 (3) for the alternative fuel incentive program, 15
36-14 percent of money in the fund;
36-15 (4) for the energy-efficient appliance program, 5
36-16 percent of the money in the fund;
36-17 (5) for the new technology development and research
36-18 program, 7.5 percent of the money in the fund, of which $250,000 is
36-19 allocated for administration; and
36-20 (6) for administrative costs incurred by the
36-21 commission and the comptroller, 2.5 percent.
36-22 (b) Up to 15 percent of the money allocated under Subsection
36-23 (a) to a particular program and not expended under that program by
36-24 March 1 of the second fiscal year of a fiscal biennium may be used
36-25 for another program under the Texas emissions reduction plan as
36-26 determined by the commission in consultation with the advisory
36-27 board.
37-1 SECTION 2. Subchapter C, Chapter 151, Tax Code, is amended by
37-2 adding Section 151.0515 to read as follows:
37-3 Sec. 151.0515. TEXAS EMISSIONS REDUCTION PLAN SURCHARGE. (a)
37-4 In this section, "construction equipment" means (to be supplied).
37-5 (b) In each county in this state, a surcharge is imposed on
37-6 the sale, lease, or rental of new or used construction equipment in
37-7 an amount equal to 0.25 percent of the sale price or the lease or
37-8 rental amount, not to exceed a total amount of $750 for each
37-9 surcharge.
37-10 (c) The surcharge shall be collected at the same time and in
37-11 the same manner and shall be administered and enforced in the same
37-12 manner as the tax imposed under this subchapter. The comptroller
37-13 shall adopt any additional procedures needed for the collection,
37-14 administration, and enforcement of the surcharge authorized by this
37-15 section and shall deposit all remitted surcharges to the credit of
37-16 the Texas emissions reduction plan fund.
37-17 SECTION 3. Subchapter H, Chapter 151, Tax Code, is amended by
37-18 adding Sections 151.355-151.357 to read as follows:
37-19 Sec. 151.355. ENERGY-EFFICIENT APPLIANCES. The sale of a
37-20 refrigerator, clothes washer, clothes dryer, dishwasher, or room
37-21 air conditioner is exempt from the tax imposed by this chapter if
37-22 the refrigerator, clothes washer, clothes dryer, dishwasher, or
37-23 room air conditioner qualifies under federal law for the "Energy
37-24 Star" label.
37-25 Sec. 151.356. CERTAIN HIGH-EFFICIENT HEATING, COOLING, AND
37-26 WATER HEATING EQUIPMENT. The sale of the following heating,
37-27 cooling, and water heating equipment is exempt from the tax imposed
38-1 by this chapter:
38-2 (1) a gas or electric central air conditioning unit,
38-3 if the unit has an efficiency rating of at least 13.5 SEER;
38-4 (2) an electric heat pump, if the heat pump has a:
38-5 (A) heating efficiency rating of at least 7.5
38-6 HSPF; and
38-7 (B) cooling efficiency rating of at least 13.5
38-8 SEER;
38-9 (3) an advanced natural gas hot water heater, if the
38-10 hot water heater has an energy factor of at least 0.65;
38-11 (4) an electric heat pump hot water heater, if the hot
38-12 water heater has an energy factor of at least 1.7; and
38-13 (5) a natural gas heat pump, if the heat pump has a
38-14 coefficient of performance for heating of at least 1.25 and for
38-15 cooling of at least 0.70.
38-16 Sec. 151.357. FUEL-CELL ELECTRIC GENERATING EQUIPMENT. (a)
38-17 In this section "fuel cell" means equipment using an
38-18 electrochemical process to generate electricity and heat.
38-19 (b) The sale of a new fuel cell is exempt from the tax
38-20 imposed by this chapter if the fuel cell has:
38-21 (1) a generating capacity of at least 2 kilowatts; and
38-22 (2) an electricity-only generation efficiency of at
38-23 least 35 percent.
38-24 SECTION 4. Subchapter B, Chapter 152, Tax Code, is amended by
38-25 adding Section 152.0215 to read as follows:
38-26 Sec. 152.0215. TEXAS EMISSIONS REDUCTION PLAN SURCHARGE. (a)
38-27 A surcharge is imposed on every retail sale or lease of every
39-1 onroad diesel motor vehicle sold or leased in this state. The
39-2 amount of the surcharge is one percent of the total consideration.
39-3 (b) The surcharge shall be collected at the same time and in
39-4 the same manner and shall be administered and enforced in the same
39-5 manner as the tax imposed under this subchapter. The comptroller
39-6 shall adopt any additional procedures needed for the collection,
39-7 administration, and enforcement of the surcharge authorized by this
39-8 section and shall deposit all remitted surcharges to the credit of
39-9 the Texas emissions reduction plan fund.
39-10 SECTION 5. Section 153.001(5), Tax Code, is amended to read
39-11 as follows:
39-12 (5) "Diesel fuel" means kerosene or another liquid, or
39-13 a combination of liquids blended together, excluding water, that is
39-14 suitable for or used for the propulsion of diesel-powered motor
39-15 vehicles. The term includes products commonly referred to as
39-16 kerosene, light cycle oil, number two fuel oil, distillate fuel,
39-17 cutter stock, or heating oil, but does not include gasoline or
39-18 liquefied gas.
39-19 SECTION 6. Subchapter B, Chapter 156, Tax Code, is amended by
39-20 adding Section 156.054 to read as follows:
39-21 Sec. 156.054. TEXAS EMISSIONS REDUCTION PLAN SURCHARGE. (a)
39-22 In this section, "nonattainment area" and "near nonattainment area"
39-23 have the meanings assigned by Section 386.001, Health and Safety
39-24 Code.
39-25 (b) In a nonattainment area or a near nonattainment area in
39-26 this state, a $1 surcharge is added to the tax imposed on a person
39-27 under this chapter.
40-1 (c) The comptroller shall adopt procedures for the
40-2 collection, administration, and enforcement of the surcharge
40-3 authorized by this section and shall deposit all surcharges
40-4 remitted under this section to the Texas emissions reduction plan
40-5 fund.
40-6 SECTION 7. Chapter 171, Tax Code, is amended by adding
40-7 Subchapter S to read as follows:
40-8 SUBCHAPTER S. TAX CREDIT FOR USE OF LIQUEFIED
40-9 GAS TO FUEL MOTOR VEHICLES
40-10 Sec. 171.851. DEFINITIONS. In this subchapter:
40-11 (1) "Incremental cost" has the meaning assigned by
40-12 Section 386.001, Health and Safety Code.
40-13 (2) "Liquefied gas" includes propane, compressed
40-14 natural gas (CNG), and liquefied natural gas (LNG).
40-15 Sec. 171.852. ELIGIBILITY. A corporation is eligible for a
40-16 credit against the tax imposed under this chapter in the amount and
40-17 under the conditions and limitation as provided by this subchapter.
40-18 Sec. 171.853. CREDIT FOR INCREMENTAL COST OF USING LIQUEFIED
40-19 GAS TO FUEL MOTOR VEHICLES. A corporation may claim a credit under
40-20 this subchapter only for the incremental cost of using liquefied
40-21 gas to fuel motor vehicles.
40-22 Sec. 171.854. AMOUNTS; LIMITATIONS. (a) The amount of the
40-23 credit is equal to the total incremental cost of using liquefied
40-24 gas to fuel motor vehicles.
40-25 (b) The total credit under this section may not exceed
40-26 (amount to be supplied).
40-27 (c) The total credit claimed under this subchapter for a
41-1 period may not exceed the amount of franchise tax due for the
41-2 report after any other applicable tax credits.
41-3 (d) A corporation may claim a credit under this subchapter
41-4 for an expenditure made during an accounting period only against
41-5 the tax owed for the corresponding reporting period.
41-6 Sec. 171.855. APPLICATION FOR CREDIT. (a) A corporation
41-7 must apply for a credit under this subchapter on or with the tax
41-8 report for the period for which the credit is claimed.
41-9 (b) The comptroller shall adopt a form for the application
41-10 for the credit. A corporation must use this form in applying for
41-11 the credit.
41-12 Sec. 171.856. ASSIGNMENT PROHIBITED. A corporation may not
41-13 convey, assign, or transfer the credit allowed under this
41-14 subchapter to another entity unless all of the assets of the
41-15 corporation are conveyed, assigned, or transferred in the same
41-16 transaction.
41-17 Sec. 171.857. REIMBURSEMENT TO STATE FROM TEXAS EMISSIONS
41-18 REDUCTION PLAN FUND. The comptroller shall reimburse the state for
41-19 revenue lost through tax credits authorized under this subchapter
41-20 in the manner provided by Chapter 386, Health and Safety Code.
41-21 SECTION 8. Section 224.153, Transportation Code, is amended
41-22 by adding Subsection (c) to read as follows:
41-23 (c) A vehicle displaying the license plate authorized by
41-24 Section 502.2665 for low-emissions or alternative fuel vehicles is
41-25 entitled to travel in a preferential car pool or high occupancy
41-26 vehicle lane designated under this section regardless of the
41-27 number of occupants in the vehicle.
42-1 SECTION 9. Section 224.155, Transportation Code, is amended
42-2 to read as follows:
42-3 Sec. 224.155. FAILURE OR REFUSAL TO PAY TOLL CHARGES;
42-4 EXEMPTION FOR LOW-EMISSIONS AND ALTERNATIVE FUEL VEHICLES. (a) Any
42-5 motor vehicle other than a police or emergency vehicle that is
42-6 driven or towed through a toll collection facility shall pay the
42-7 proper toll.
42-8 (b) A vehicle displaying the license plate authorized by
42-9 Section 502.2665 for low-emissions or alternative fuel vehicles is
42-10 not required to pay a toll under this section.
42-11 SECTION 10. Section 361.179, Transportation Code, is amended
42-12 by adding Subsection (h) to read as follows:
42-13 (h) A vehicle displaying the license plate authorized by
42-14 Section 502.2665 for low-emissions or alternative fuel vehicles is
42-15 not required to pay a toll imposed by an authority under this
42-16 section.
42-17 SECTION 11. Section 366.173, Transportation Code, is amended
42-18 by adding Subsection (h) to read as follows:
42-19 (h) A vehicle displaying the license plate authorized by
42-20 Section 502.2665 for low-emissions or alternative fuel vehicles is
42-21 not required to pay a toll imposed by an authority under this
42-22 section.
42-23 SECTION 12. Section 431.073, Transportation Code, is amended
42-24 by adding Subsection (d) to read as follows:
42-25 (d) A vehicle displaying the license plate authorized by
42-26 Section 502.2665 for low-emissions or alternative fuel vehicles is
42-27 entitled to travel in a preferential car pool or high occupancy
43-1 vehicle lane designated under this section regardless of the number
43-2 of occupants in the vehicle and without paying a toll.
43-3 SECTION 13. Subchapter D, Chapter 502, Transportation Code,
43-4 is amended by adding Section 502.1675 to read as follows:
43-5 Sec. 502.1675. TEXAS EMISSIONS REDUCTION PLAN SURCHARGE. (a)
43-6 In addition to the registration fees charged under Section 502.167,
43-7 a surcharge is imposed on the registration of a truck-tractor or
43-8 commercial motor vehicle under that section in an amount equal to
43-9 10 percent of the total fees due for the registration of the
43-10 truck-tractor or commercial motor vehicle under that section.
43-11 (b) The county tax assessor-collector shall remit the
43-12 surcharge collected under this section to the comptroller at the
43-13 time and in the manner prescribed by the comptroller for deposit in
43-14 the Texas emissions reduction plan fund.
43-15 SECTION 14. Subchapter D, Chapter 502, Transportation Code,
43-16 is amended by adding Section 502.1715 to read as follows:
43-17 Sec. 502.1715. ADDITIONAL FEE FOR TEXAS EMISSIONS REDUCTION
43-18 PLAN. In addition to other registration fees for a license plate,
43-19 set of license plates, or other device used as the registration
43-20 insignia, the department shall collect a $1 fee for each motor
43-21 vehicle registered in a nonattainment area or near nonattainment
43-22 area in this state. The county tax assessor-collector shall remit
43-23 fees collected under this section to the comptroller at the time
43-24 and in the manner prescribed by the comptroller for deposit in the
43-25 Texas emissions reduction plan fund. In this subsection,
43-26 "nonattainment area" and "near nonattainment area" have the
43-27 meanings assigned by Section 386.001, Health and Safety Code.
44-1 SECTION 15. Subchapter F, Chapter 502, Transportation Code,
44-2 is amended by adding Section 502.2665 to read as follows:
44-3 Sec. 502.2665. LOW-EMISSIONS AND ALTERNATIVE FUEL VEHICLES.
44-4 (a) The department shall issue a specially designed license plate
44-5 for a motor vehicle that is:
44-6 (1) eligible for a low-emissions vehicle purchase and
44-7 lease incentive under Subchapter D, Chapter 386, Health and Safety
44-8 Code; or
44-9 (2) powered by alternative fuel as defined by Section
44-10 386.101, Health and Safety Code.
44-11 (b) License plates issued under this section must include
44-12 the words: "_____________________________" and must be
44-13 consecutively numbered.
44-14 (c) The department shall issue a license plate under this
44-15 section without the payment of any additional fee to a person who:
44-16 (1) applies to the department on a form provided by
44-17 the department; and
44-18 (2) submits proof that the vehicle being registered is
44-19 a vehicle described by Subsection (a)(1) or (2).
44-20 (d) The comptroller shall reimburse the county treasurer of
44-21 the county in which the applicant resides a reasonable amount from
44-22 the Texas emissions reduction plan fund to pay for the costs to the
44-23 county of administering this section.
44-24 SECTION 16. Section 521.421, Transportation Code, is amended
44-25 by adding Subsection (h) to read as follows:
44-26 (h) The department shall collect an additional fee of $1 in
44-27 an area of the state that is not a nonattainment area or near
45-1 nonattainment area and an additional fee of $3 in a nonattainment
45-2 area or near nonattainment area in this state to fund the Texas
45-3 emissions reduction plan established under Chapter 386, Health and
45-4 Safety Code. The department shall remit fees collected under this
45-5 section to the comptroller at the time and in the manner prescribed
45-6 by the comptroller for deposit in the Texas emissions reduction
45-7 plan fund. In this subsection, "nonattainment area" and "near
45-8 nonattainment area" have the meanings assigned by Section 386.001,
45-9 Health and Safety Code.
45-10 SECTION 17. Subchapter H, Chapter 548, Transportation Code,
45-11 is amended by adding Section 548.5055 to read as follows:
45-12 Sec. 548.5055. TEXAS EMISSIONS REDUCTION PLAN FEE. (a) In
45-13 this section, "nonattainment area" and "near nonattainment area"
45-14 have the meanings assigned by Section 386.001, Health and Safety
45-15 Code.
45-16 (b) In addition to other fees required by this subchapter,
45-17 to fund the Texas emissions reduction plan established under
45-18 Chapter 386, Health and Safety Code, the department shall collect,
45-19 for every motor vehicle required to be inspected under this
45-20 chapter, a fee of:
45-21 (1) $1, if the vehicle being inspected is not
45-22 registered in a nonattainment area or near nonattainment area in
45-23 this state; or
45-24 (2) $3, if the vehicle being inspected is registered
45-25 in a nonattainment area or near nonattainment area in this state.
45-26 (c) The department shall remit fees collected under this
45-27 section to the comptroller at the time and in the manner prescribed
46-1 by the comptroller for deposit in the Texas emissions reduction
46-2 plan fund.
46-3 SECTION 18. Section 643.053, Transportation Code, is amended
46-4 to read as follows:
46-5 Sec. 643.053. FILING OF APPLICATION. (a) An application
46-6 under Section 643.052 must be filed with the department and
46-7 accompanied by:
46-8 (1) an application fee of $100 plus a $10 fee for each
46-9 vehicle requiring registration the motor carrier proposes to
46-10 operate;
46-11 (2) evidence of insurance or financial responsibility
46-12 as required by Section 643.103(a); and
46-13 (3) any insurance filing fee required under Section
46-14 643.103(c).
46-15 (b) In addition to the fees required by Subsection (a), the
46-16 application must be accompanied by a Texas emissions reduction plan
46-17 surcharge in the amount of $2 per vehicle for an annual
46-18 registration and $4 per vehicle for a two-year registration. The
46-19 department shall collect and remit the surcharge to the comptroller
46-20 at the time and in the manner required by the comptroller for
46-21 deposit in the Texas emissions reduction plan fund.
46-22 SECTION 19. Section 681.009, Transportation Code, is amended
46-23 by adding Subsection (f) to read as follows:
46-24 (f) In a nonattainment area or near nonattainment area of
46-25 this state, a political subdivision or a person who designates five
46-26 or more parking spaces or a parking area for the exclusive use of
46-27 vehicles transporting persons with disabilities shall designate the
47-1 same number of parking spaces or a parking area for the exclusive
47-2 use of vehicles displaying the license plate authorized by Section
47-3 502.2665 for low-emissions and alternative fuel vehicles. In this
47-4 subsection, "nonattainment area" and "near nonattainment area" have
47-5 the meanings assigned by Section 386.001, Health and Safety Code.
47-6 SECTION 20. Subchapter B, Chapter 31, Parks and Wildlife
47-7 Code, is amended by adding Section 31.0265 to read as follows:
47-8 Sec. 31.0265. TEXAS EMISSIONS REDUCTION PLAN SURCHARGE. (a)
47-9 In this section, "nonattainment area" and "near nonattainment area"
47-10 have the meanings assigned by Section 386.001, Health and Safety
47-11 Code.
47-12 (b) Each application for an original or renewal certificate
47-13 of number for a motorboat that will be operated primarily in a
47-14 nonattainment or near nonattainment area of this state shall be
47-15 accompanied by a $3 Texas emissions reduction plan surcharge in
47-16 addition to any other fee required to be paid to the department.
47-17 (c) The department shall collect and remit the surcharge to
47-18 the comptroller at the time and in the manner prescribed by the
47-19 comptroller for deposit in the Texas emissions reduction plan fund.
47-20 SECTION 21. Title 132, Revised Statutes, is amended by adding
47-21 Article 9035 to read as follows:
47-22 Art. 9035. TEXAS EMISSIONS REDUCTION PLAN SURCHARGE ON TAXI
47-23 FARES
47-24 Sec. 1. DEFINITIONS. In this article:
47-25 (1) "Alternative fuel" has the meaning assigned by
47-26 Section 386.001, Health and Safety Code.
47-27 (2) "Alternative fuel vehicle" has the meaning
48-1 assigned by Section 386.001, Health and Safety Code.
48-2 (3) "Fare" means the compensation paid by a passenger
48-3 in a taxi for transportation by the taxi.
48-4 (4) "Nonattainment area" and "near nonattainment area"
48-5 have the meanings assigned by Section 386.001, Health and Safety
48-6 Code.
48-7 (5) "Taxi" means a fuel-powered passenger vehicle that
48-8 transports passengers for compensation.
48-9 (6) "Very-low-emissions vehicle" has the meaning
48-10 assigned by Section 386.101, Health and Safety Code.
48-11 Sec. 2. APPLICATION. This article applies only in a county
48-12 that is in a nonattainment area or a near nonattainment area of
48-13 this state.
48-14 Sec. 3. IMPOSITION AND COLLECTION OF SURCHARGE. (a) A
48-15 surcharge of 50 cents is imposed on each fare collected by the taxi
48-16 driver for transportation by a taxi.
48-17 (b) The person who owns the taxi or rents or leases the taxi
48-18 for the purpose of using the taxi to provide transportation
48-19 services to others shall pay the surcharge imposed by this article.
48-20 (c) The person required to pay the surcharge shall maintain
48-21 records of the surcharge in the manner prescribed by the
48-22 comptroller and shall remit the surcharge to the comptroller at the
48-23 time and in the manner prescribed by the comptroller for deposit to
48-24 the credit of the Texas emissions reduction plan fund.
48-25 Sec. 4. EXEMPTION FROM SURCHARGE. The surcharge imposed by
48-26 this article does not apply if the taxi providing the
48-27 transportation for which the fare is charged is a
49-1 very-low-emissions vehicle or an alternative fuel vehicle.
49-2 Sec. 5. INTEREST AND PENALTIES. A person is liable for
49-3 penalties and interest on surcharges that are not remitted when due
49-4 in the same manner and at the same rate as provided for delinquent
49-5 taxes by Sections 111.060 and 111.061, Tax Code.
49-6 Sec. 6. CRIMINAL PENALTY. (a) A person who violates this
49-7 article or a rule adopted by the comptroller under this article
49-8 commits an offense.
49-9 (b) An offense under this section is a Class C misdemeanor.
49-10 SECTION 22. All new residential and commercial construction
49-11 begun on or after the effective date of this Act must comply with
49-12 energy-efficient standards.
49-13 SECTION 23. A Texas emissions reduction plan surcharge is
49-14 imposed on the sale of fuel to marine vessels moored for an
49-15 extended period or permanently in harbor.
49-16 SECTION 24. (a) Not later than the 45th day after the
49-17 effective date of this Act, the Texas Natural Resource Conservation
49-18 Commission shall adopt rules establishing the guidelines and
49-19 criteria required to implement programs established under this Act.
49-20 (b) Not later than the 45th day after the effective date of
49-21 this Act, the comptroller shall adopt all rules necessary to enable
49-22 the comptroller to carry out the comptroller's duties under this
49-23 Act.
49-24 (c) Pending final adoption of rules by the Texas Natural
49-25 Resource Conservation Commission and the comptroller to implement
49-26 programs established by this Act, the commission shall begin
49-27 implementation of the programs using guidelines developed by a
50-1 similar program currently operating in another state, modified as
50-2 necessary for application in this state.
50-3 SECTION 25. (a) Not later than the 45th day after the
50-4 effective date of this Act, the Texas Natural Resource Conservation
50-5 Commission and the comptroller shall adopt rules necessary to
50-6 implement the low-emissions vehicle purchase or lease incentive
50-7 program established under Subchapter D, Chapter 386, Health and
50-8 Safety Code, as added by this Act.
50-9 (b) Not later than the 45th day after the effective date of
50-10 this Act, the Texas Natural Resource Conservation Commission shall
50-11 publish the first annual list of vehicles eligible for
50-12 low-emissions vehicle purchase or lease incentives, as required by
50-13 Section 386.158, Health and Safety Code, as added by this Act.
50-14 SECTION 26. Not later than the 45th day after the effective
50-15 date of this Act, the Texas Department of Public Safety shall make
50-16 available to the county tax assessor-collector of each county in
50-17 the state the special license plates authorized by Section
50-18 502.2665, Transportation Code, as added by this Act. The county
50-19 tax assessor-collector of each county in the state shall begin
50-20 issuing the special license plates to persons who qualify for the
50-21 plates not later than the 10th working day after the date the
50-22 plates are available.
50-23 SECTION 27. Not later than the 30th day after the adoption of
50-24 rules governing the new technology development and research program
50-25 established under Subchapter E, Chapter 386, Health and Safety
50-26 Code, as added by this Act, the Texas Natural Resource Conservation
50-27 Commission shall issue requests for proposals for projects to be
51-1 funded under the new technology development and research program.
51-2 SECTION 28. The change in law made by Subchapter S, Chapter
51-3 171, Tax Code, as added by this Act, takes effect January 1, 2002.
51-4 SECTION 29. The change in law made by Sections
51-5 151.355-151.357, Tax Code, as added by this Act, does not affect
51-6 tax liability accruing before the effective date of this Act. That
51-7 liability continues in effect as if this Act had not been enacted,
51-8 and the former law is continued in effect for the collection of
51-9 taxes due and for civil and criminal enforcement of the liability
51-10 for those taxes.
51-11 SECTION 30. In making the initial appointments to the Texas
51-12 Emissions Reduction Plan Advisory Board, as created by Section
51-13 386.057, Health and Safety Code, as added by this Act, the
51-14 appointing authorities shall designate their appointees so that six
51-15 members' terms expire February 1, 2002, and seven members' terms
51-16 expire February 1, 2003.
51-17 SECTION 31. In making the initial appointments to the Texas
51-18 Council on Environmental Technology, as created by Section 386.202,
51-19 Health and Safety Code, as added by this Act, the governor shall
51-20 designate the appointees so that three members' terms expire
51-21 February 1, 2003, four members' terms expire February 1, 2005, and
51-22 four members' terms expire February 1, 2007.
51-23 SECTION 32. This Act takes effect immediately if it receives
51-24 a vote of two-thirds of all the members elected to each house, as
51-25 provided by Section 39, Article III, Texas Constitution. If this
51-26 Act does not receive the vote necessary for immediate effect, this
51-27 Act takes effect September 1, 2001.