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By: Bonnen, et al. (Senate Sponsor - Harris) H.B. No. 1365
(In the Senate - Received from the House April 9, 2003;
April 10, 2003, read first time and referred to Committee on
Natural Resources; April 22, 2003, reported adversely, with
favorable Committee Substitute by the following vote: Yeas 9, Nays
0; April 22, 2003, sent to printer.)
COMMITTEE SUBSTITUTE FOR H.B. No. 1365 By: Jackson
A BILL TO BE ENTITLED
AN ACT
relating to the Texas emissions reduction plan.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 386.001(2), Health and Safety Code, is
amended to read as follows:
(2) "Affected county" includes:
(A) Bastrop County;
(B) Bexar County;
(C) Caldwell County;
(D) Comal County;
(E) Ellis County;
(F) Gregg County;
(G) Guadalupe County;
(H) Harrison County;
(I) Hays County;
(J) Henderson County;
(K) Hood County;
(L) Hunt County;
(M) Johnson County;
(N) [(K)] Kaufman County;
(O) [(L)] Nueces County;
(P) [(M)] Parker County;
(Q) [(N)] Rockwall County;
(R) [(O)] Rusk County;
(S) [(P)] San Patricio County;
(T) [(Q)] Smith County;
(U) [(R)] Travis County;
(V) [(S)] Upshur County;
(W) [(T)] Victoria County;
(X) [(U)] Williamson County; [and]
(Y) [(V)] Wilson County; and
(Z) any other county designated as an affected
county by commission rule because of deteriorating air quality.
SECTION 2. Section 386.053(d), Health and Safety Code, is
amended to read as follows:
(d) The commission may propose revisions to the guidelines
and criteria adopted under this section as necessary to improve the
ability of the plan to achieve its goals. Revisions may include,
among other changes, adding additional pollutants, adding
stationary engines or engines used in stationary applications,
adding vehicles and equipment that use fuels other than diesel, or
adjusting eligible program categories, as appropriate, to ensure
that incentives established under this chapter achieve the maximum
possible emissions reductions. The commission shall make a
proposed revision available to the public before the 45th day
preceding the date of final adoption of the revision and shall hold
at least one public meeting to consider public comments on the
proposed revision before final adoption.
SECTION 3. Section 386.058(d), Health and Safety Code, is
amended to read as follows:
(d) The governor, after consultation with the speaker of the
house of representatives, shall appoint to the advisory board:
(1) a representative of consumer groups;
(2) a representative of the construction industry;
(3) a representative of the automobile industry;
(4) a representative of the agriculture industry; and
(5) a representative of the fuel industry.
SECTION 4. Sections 386.101(6) and (9), Health and Safety
Code, are amended to read as follows:
(6) "On-road diesel" means an on-road diesel-powered
motor vehicle that has a gross vehicle weight rating of 8,500
[10,000] pounds or more.
(9) "Repower" means to replace an old engine powering
an on-road or non-road diesel with a new engine, a used engine, a
remanufactured engine, or electric motors, drives, or fuel cells[:
[(A) a new engine that emits at least 30 percent
less than the oxides of nitrogen emissions standard required by
federal regulation for the current model year for that engine;
[(B) an engine manufactured later than 1987 that
emits at least 30 percent less than the oxides of nitrogen emissions
standard emitted by a new engine certified to the baseline oxides of
nitrogen emissions standard for that engine;
[(C) an engine manufactured before 1988 that
emits not more than 50 percent of the oxides of nitrogen emissions
standard emitted by a new engine certified to the baseline oxides of
nitrogen emissions standard for that engine; or
[(D) electric motors, drives, or fuel cells].
SECTION 5. Section 386.102(b), Health and Safety Code, is
amended to read as follows:
(b) Projects that may be considered for a grant under the
program include:
(1) purchase or lease of on-road or non-road diesels;
(2) emissions-reducing retrofit projects for on-road
or non-road diesels;
(3) emissions-reducing repower projects for on-road
or non-road diesels;
(4) purchase and use of emissions-reducing add-on
equipment for on-road or non-road diesels;
(5) development and demonstration of practical,
low-emissions retrofit technologies, repower options, and advanced
technologies for on-road or non-road diesels with lower emissions
of oxides of nitrogen;
(6) use of qualifying fuel; [and]
(7) implementation of infrastructure projects; and
(8) replacement of on-road or non-road diesels with
newer on-road or non-road diesels.
SECTION 6. Section 386.103(a), Health and Safety Code, is
amended to read as follows:
(a) Any person as defined by Section 382.003 that owns one
or more on-road or non-road diesels that operate primarily within a
nonattainment area or affected county of this state or that
otherwise contributes to the state inventory of emissions of oxides
of nitrogen may apply for a grant under the program. The commission
may adopt guidelines to allow a person other than the owner to apply
for and receive a grant in order to improve the ability of the
program to achieve its goals.
SECTION 7. Section 386.104(f), Health and Safety Code, is
amended to read as follows:
(f) A proposed retrofit, repower, replacement, or add-on
equipment project must document, in a manner acceptable to the
commission, a reduction in emissions of oxides of nitrogen of at
least 30 percent compared with the baseline emissions adopted by
the commission for the relevant engine year and application. After
study of available emissions reduction technologies, after public
notice and comment, and after consultation with the advisory board,
the commission may revise the minimum percentage reduction in
emissions of oxides of nitrogen required by this subsection to
improve the ability of the program to achieve its goals.
SECTION 8. Section 386.105, Health and Safety Code, is
amended by adding Subsection (e) to read as follows:
(e) The commission may allow for the apportionment of
credits associated with a project between the plan and another
program or entity if the part of the credit assigned to the program
that is part of the plan still meets any applicable
cost-effectiveness criteria.
SECTION 9. Section 386.106(a), Health and Safety Code, is
amended to read as follows:
(a) Except as provided by Section 386.107 and except for
infrastructure projects and infrastructure purchases that are part
of a broader retrofit, repower, replacement, or add-on equipment
project, the commission may not award a grant for a proposed project
the cost-effectiveness of which, calculated in accordance with
Section 386.105 and criteria developed under that section, exceeds
$13,000 per ton of oxides of nitrogen emissions reduced in the
nonattainment area or affected county for which the project is
proposed. This subsection does not restrict commission authority
under other law to require emissions reductions with a
cost-effectiveness that exceeds $13,000 per ton.
SECTION 10. Section 386.112(b), Health and Safety Code, is
amended to read as follows:
(b) The program shall authorize statewide incentives for
the reimbursement of incremental costs for the purchase or lease,
according to the schedule provided by Section 386.113, of new
on-road diesels that are certified by the United States
Environmental Protection Agency or the California Air Resources
Board to an emissions standard provided by Section 386.113 if the
purchaser or lessee of the on-road diesel agrees to register the
vehicle in this state and to operate the on-road diesel in this
state for not less than 75 percent of the on-road diesel's annual
mileage.
SECTION 11. Subchapter C, Chapter 386, Health and Safety
Code, is amended by adding Section 386.115 to read as follows:
Sec. 386.115. MODIFICATION OF VEHICLE ELIGIBILITY. After
evaluating the availability of vehicles meeting the emissions
standards and after public notice and comment, the commission, in
consultation with the advisory board, may expand the program to
include other on-road vehicles, regardless of fuel type used, that
meet the emissions standards, have a gross vehicle weight rating of
greater than 8,500 pounds, and are purchased or leased in lieu of a
new on-road diesel.
SECTION 12. Section 386.252, Health and Safety Code, is
amended to read as follows:
Sec. 386.252. USE OF FUND. (a) Money in the fund may be
used only to implement and administer programs established under
the plan and shall be allocated as follows:
(1) for the diesel emissions reduction incentive
program, 89.5 [72] percent of the money in the fund, of which not
more than [three percent may be used for infrastructure projects
and not more than] 10 percent may be used for on-road diesel
purchase or lease incentives;
(2) [for the motor vehicle purchase or lease incentive
program, 15 percent of the money in the fund;
[(3) for the energy efficiency grant program, 7.5
percent of the money in the fund;
[(4)] for the new technology research and development
program, 7.5 percent of the money in the fund, of which up to
$250,000 is allocated for administration, up to $200,000 is
allocated for a health effects study, and $500,000 is to be
deposited in the state treasury to the credit of the clean air
account created under Section 382.0622 to supplement funding for
air quality planning activities in affected counties; and
(3) [(5)] for administrative costs incurred by [the
utility commission,] the commission[, the comptroller,] and the
laboratory, three percent.
(b) Up to 25 [15] percent of the money allocated under
Subsection (a) to a particular program and not expended under that
program by January [March] 1 of the second fiscal year of a fiscal
biennium may be used for another program under the plan as
determined by the commission in consultation with the advisory
board.
SECTION 13. Section 151.0515, Tax Code, is amended by
amending Subsections (a), (b), and (c) and adding Subsection (b-1)
to read as follows:
(a) In this section, "equipment" includes all off-road,
heavy-duty diesel equipment [classified as construction
equipment], other than implements of husbandry used solely for
agricultural purposes, including:
(1) pavers;
(2) tampers/rammers;
(3) plate compactors;
(4) concrete pavers;
(5) rollers;
(6) scrapers;
(7) paving equipment;
(8) surface equipment;
(9) signal boards/light plants;
(10) trenchers;
(11) bore/drill rigs;
(12) excavators;
(13) concrete/industrial saws;
(14) cement and mortar mixers;
(15) cranes;
(16) graders;
(17) off-highway trucks;
(18) crushing/processing equipment;
(19) rough terrain forklifts;
(20) rubber tire loaders;
(21) rubber tire tractors/dozers;
(22) tractors/loaders/backhoes;
(23) crawler tractors/dozers;
(24) skid steer loaders;
(25) off-highway tractors; [and]
(26) Dumpsters/tenders;
(27) mining equipment; and
(28) drilling equipment used in drilling an oil, gas,
or water well.
(b) In each county in this state, a surcharge is imposed on
the retail sale, lease, or rental of new or used equipment in an
amount equal to two [one] percent of the sale price or the lease or
rental amount.
(b-1) In each county in this state, a surcharge is imposed
on the storage, use, or other consumption in this state of new or
used equipment. The surcharge is at the same percentage rate as is
provided by Subsection (b) on the sales price or the lease or rental
amount of the equipment.
(c) The surcharge shall be collected at the same time and in
the same manner and shall be administered and enforced in the same
manner as the tax imposed under this chapter [subchapter]. The
comptroller shall adopt any additional procedures needed for the
collection, administration, and enforcement of the surcharge
authorized by this section and shall deposit all remitted
surcharges to the credit of the Texas emissions reduction plan
fund.
SECTION 14. Section 152.0215(a), Tax Code, is amended to
read as follows:
(a) A surcharge is imposed on every retail sale, [or] lease,
or use of every on-road diesel motor vehicle that is over 14,000
pounds [and is of a model year 1996 or earlier] and that is sold,
[or] leased, or used in this state. The amount of the surcharge is
two [2.5] percent of the total consideration.
SECTION 15. Section 224.153, Transportation Code, is
amended by adding Subsection (d) to read as follows:
(d) The department may not authorize vehicles addressed in
Subsection (c) to use a high occupancy vehicle lane if such use
would violate federal transit or highway funding restrictions.
SECTION 16. Sections 501.138(a) and (b), Transportation
Code, are amended to read as follows:
(a) An applicant for a certificate of title, other than the
state or a political subdivision of the state, must pay the county
assessor-collector a fee of $28 [$13].
(b) The county assessor-collector shall send:
(1) $5 of the fee to the county treasurer for deposit
in the officers' salary fund; [and]
(2) $8 of the fee to the department:
(A) together with the application within the time
prescribed by Section 501.023; or
(B) if the fee is deposited in an
interest-bearing account or certificate in the county depository or
invested in an investment authorized by Subchapter A, Chapter 2256,
Government Code, not later than the 35th day after the date on which
the fee is received; and
(3) $15 of the fee to the comptroller to be deposited
as follows:
(A) before September 1, 2008, to the credit of
the Texas emissions reduction fund; and
(B) beginning September 1, 2008, to the credit of
the Texas mobility fund.
SECTION 17. Section 387.006(a), Health and Safety Code, is
amended to read as follows:
(a) An application for a technology grant under this chapter
must show clear and compelling evidence that:
(1) the proposed technology project has a strong
commercialization plan and organization; and
(2) the technology proposed for funding:
(A) is likely to be offered for commercial sale
in this state as soon as practicable but no later than [within] five
years after the date of the application for funding; and
(B) once commercialized, will offer
opportunities for projects eligible for funding under Chapter 386.
SECTION 18. (a) Except as provided by Subsection (b) of
this section, 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.
(b) Sections 13 and 14 of this Act take effect on the first
day of the first month beginning on or after the earliest date on
which this Act may take effect 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 effect before September 1, 2003, Sections 13 and
14 of this Act take effect September 1, 2003. The comptroller of
public accounts may adopt emergency rules for the implementation of
Sections 13 and 14 of this Act.
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