78R12442 MI-F
By: Chisum H.B. No. 638
A BILL TO BE ENTITLED
AN ACT
relating to emissions reductions incentives and the emissions
reductions incentives account.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Sections 382.051865(a), (c), and (d), Health and
Safety Code, are amended to read as follows:
(a) The commission by rule shall [may] develop a program for
the reduction of emissions of nitrogen oxides from reciprocating
internal combustion engines associated with pipelines that are
required by this subchapter to reduce the hourly emissions rate of
nitrogen oxides, expressed in terms of grams per brake
horsepower-hour, by at least 50 percent. In developing a program
under this section the commission must cooperate with:
(1) local governments;
(2) agencies, departments, and political subdivisions
of the state; and
(3) the United States and its agencies.
(c) The emissions reduction program shall [may] include
incentives as developed by the commission for nitrogen oxides
emissions reduction projects for reciprocating internal combustion
engines described by Subsection (a), including a partial
reimbursement for the capital cost of installing technology to
reduce the emissions. The incentives may be applied only to
expenses of projects to achieve those reductions of a reciprocating
internal combustion engine's hourly emissions rate of nitrogen
oxides, expressed in terms of grams per brake horsepower-hour, only
to the extent the reductions exceed 30 percent and do not exceed 50
percent of the engine's emissions rate before modification.
(d) Rules adopted under this section may not require more
stringent emissions reduction [must include] criteria than those
specified in this subsection for [the] determining eligibility for
an emissions reduction project incentive under the program. To be
eligible under the criteria, a facility must:
(1) be subject to the requirement under this
subchapter that it reduce its hourly emissions rate of nitrogen
oxides, expressed in terms of grams per brake horsepower-hour, by
50 percent;
(2) be reducing its hourly emissions rate of nitrogen
oxides, expressed in terms of grams per brake horsepower-hour, by
at least 50 percent; and
(3) be located in the East Texas region established by
this subchapter for purposes of compliance with permit requirements
for facilities affected by Section 382.0518(g).
SECTION 2. Section 78(b), Chapter 1158, Acts of the 77th
Legislature, Regular Session, 2001, is transferred to Subchapter C,
Chapter 382, Health and Safety Code, redesignated as Section
382.051866 of that subchapter, and amended to read as follows:
Sec. 382.051866. [(b)] EMISSIONS REDUCTIONS INCENTIVES
ACCOUNT. (a) In this section, "affiliate" means a person that
directly or indirectly controls, is controlled by, or is under
common control with another person.
(b) [(1)] The comptroller of public accounts shall
establish an account within the clean air account [no. 151] to be
known as the emissions reductions incentives account.
(c) [(2)] The emissions reductions incentives account
consists of money from:
(1) [(A)] gifts, grants, or donations to the account
for a designated or general use; [and]
(2) [(B)] money from any other source the legislature
designates; and
(3) the interest earned on money in the emissions
reductions incentives account.
(d) Money [(3) The commission may use the money] in the
emissions reductions incentives account may be appropriated only to
pay for emissions reduction project incentives under a program
developed under Section 382.051865[, Health and Safety Code,] and
administrative expenses associated with providing the incentives
or the incentive program established under that section.
(e) A person or an affiliate of a person who pays or
contributes money to the emissions reductions incentives account is
ineligible to receive money from the account under a program
developed under Section 382.051865.
(f) [(4)] The emissions reductions incentives account is
exempt from the application of Section 403.095, Government Code.
SECTION 3. Section 382.05186, Health and Safety Code, is
amended by adding Subsection (j) to read as follows:
(j) A reciprocating internal combustion engine that is
subject to this section and to a mass emissions cap as established
by commission rule is considered permitted under this section with
respect to all air contaminants if the facility is:
(1) located in an area designated nonattainment for an
ozone national ambient air quality standard; and
(2) achieving compliance with all state and federal
requirements designated for that area.
SECTION 4. This Act takes effect immediately if it receives
a vote of two-thirds of all the members elected to each house, as
provided by Section 39, Article III, Texas Constitution. If this
Act does not receive the vote necessary for immediate effect, this
Act takes effect September 1, 2003.