By:  Bonnen (Senate Sponsor - Armbrister)                         H.B. No. 2129
	(In the Senate - Received from the House April 14, 2005; 
April 18, 2005, read first time and referred to Committee on 
Natural Resources; May 17, 2005, reported favorably, as amended, 
by the following vote:  Yeas 10, Nays 0; May 17, 2005, sent to 
printer.)


COMMITTEE AMENDMENT NO. 1                                                By:  Armbrister

	Amend H.B. 2129 by adding the following appropriately 
numbered SECTION and renumbering the subsequent SECTIONS of the 
bill accordingly:
	SECTION ____.  Section 386.252(a), Health and Safety Code, 
is amended to read as follows:
	(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, 87.5 percent of the money in the fund, of which not more 
than 10 percent may be used for on-road diesel purchase or lease 
incentives;
		(2)  for the new technology research and development 
program, 9.5 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, $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 not less than 20 
percent is to be allocated each year to support research related to 
air quality for the Houston-Galveston-Brazoria and Dallas-Fort 
Worth nonattainment areas by a nonprofit organization based in 
Houston of which $296,000 each year shall be contracted to the 
Energy Systems Laboratory at the Texas Engineering Experiment 
Station for the development and annual calculation of creditable 
statewide emissions reductions obtained through wind and other 
renewable energy resources for the State Implementation Plan;
		(3)  for administrative costs incurred by the 
commission and the laboratory, three percent.


COMMITTEE AMENDMENT NO. 2                                                By:  Armbrister

	Amend H.B. 2129 by adding the following appropriately 
numbered SECTION and renumbering the subsequent SECTIONS of the 
bill accordingly:
	SECTION ____.  Amend Section 386.056, Health and Safety 
Code, by adding a new subsection (e) to read as follows:
	(e)  The commission shall assure that emission reduction 
credits may be received in the Houston-Galveston nonattainment area 
for energy efficiency and urban heat island programs in connection 
with the State Implementation Plan for the eight-hour ozone 
standard.


COMMITTEE AMENDMENT NO. 3                                                By:  Armbrister


Amend HB 2129 as follows:                                                   
	(1)  on page 3, after line 47, add a new sub item (10) to the 
list of Section 31.005.  CUSTOMER-OPTION PROGRAMS, section (a):
	"(10)  a program to encourage the use of appropriate trees or 
other landscaping for energy efficiency."


COMMITTEE AMENDMENT NO. 5                                                By:  Armbrister


Amend CSHB ___ as follows:                                                  
	SECTION ___.  Section 39.904, Utilities Code is amended by 
adding subsection (g) to read as follows:
	"(g)  For installation by 2015 and in lieu of transmission 
upgrades, the Commission shall establish a renewable energy credit 
program of 100 megawatts of distributed generation technology in 
each area that ERCOT has deemed congested and in each 
non-attainment area in the state."


COMMITTEE AMENDMENT NO. 6                                                By:  Barrientos

	Amend H.B. No. 2129 by adding the following appropriately 
numbered SECTION and renumbering the subsequent SECTIONS of the 
bill accordingly:
	SECTION ___.  Subchapter B, Chapter 382, Health and Safety 
Code, is amended by adding Section 382.0173 to read as follows:
	Sec. 382.0173.  AREAS SUBJECT TO EARLY ACTION COMPACTS.  
(a)  In this section:
		(1)  "Early action compact" has the meaning assigned by 
Section 382.301.
		(2)  "Nonattainment area" means an area so designated 
under Section 107(d) of the federal Clean Air Act (42 U.S.C. Section 
7407).
		(3)  "Participating county" has the meaning assigned by 
Section 382.301.
	(b)  The commission shall:                                              
		(1)  consider the implementation of each air quality 
control measure proposed in an early action plan submitted to the 
commission pursuant to an early action compact;
		(2)  authorize or implement each submitted air quality 
control measure that the commission determines is reasonably 
necessary to ensure attainment of the eight-hour ozone national 
ambient air quality standard and prevent a nonattainment 
designation in a participating county, including any measure that 
could be authorized or implemented in a nonattainment area; and
		(3)  in authorizing or implementing a submitted air 
quality control measure, consider reasonable margins included in a 
submitted early action plan that allow for population and 
industrial growth, weather events, and scientifically accepted 
margins of error in data and modeling.
	(c)  The commission shall authorize or implement any 
subsequent revision to an air quality control measure proposed 
under Subsection (b) that directly affects or requires action of a 
significant portion of the general population of a participating 
county only if the governing bodies of both the participating 
county and the most populous municipality that has a majority of the 
municipality's residents residing in the participating county 
request or consent to the measure as part of an early action plan.


COMMITTEE AMENDMENT NO. 7                                                By:  Staples

	Amend Committee Amendment No. 6 for H.B. 2129 by adding the 
following to Section 382.0173(b) in the appropriately numbered 
Section:
	"(4)  This section only applies to early action compacts with 
a population of 1 million, and any measure shall only apply to those 
counties."

A BILL TO BE ENTITLED
AN ACT
relating to energy-saving measures that reduce the emission of air contaminants. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Chapter 388, Health and Safety Code, is amended by adding Section 388.012 to read as follows: Sec. 388.012. DEVELOPMENT OF ALTERNATIVE ENERGY-SAVING METHODS. The laboratory shall develop at least three alternative methods for achieving a 15 percent greater potential energy savings in residential, commercial, and industrial construction than the potential energy savings of construction that is in minimum compliance with Section 388.003. The alternative methods: (1) may include both prescriptive and performance-based approaches, such as the approach of the United States Environmental Protection Agency's Energy Star qualified new home labeling program; and (2) must include an estimate of: (A) the implementation costs and energy savings to consumers; and (B) the related emissions reductions. SECTION 2. Chapter 447, Government Code, is amended by adding Section 447.012 to read as follows: Sec. 447.012. APPLIANCE STANDARDS. The state energy conservation office shall determine the feasibility and cost-benefit to consumers of setting appliance standards for appliances that are not currently regulated for energy efficiency in this state, if the office determines that the new standards would reduce the emission of air contaminants. The office may not consider the feasibility and cost-benefit to consumers of setting appliance standards for air conditioning systems under this section. SECTION 3. Chapter 31, Utilities Code, is amended by adding Section 31.005 to read as follows: Sec. 31.005. CUSTOMER-OPTION PROGRAMS. (a) This section applies to: (1) a municipally owned electric utility; (2) an electric cooperative; (3) an electric utility; (4) a power marketer; (5) a retail electric provider; and (6) a transmission and distribution utility. (b) An entity to which this section applies shall consider establishing customer-option programs that encourage the reduction of air contaminant emissions, such as: (1) an appliance retirement and recycling program; (2) a solar water heating market transformation program; (3) an air conditioning tune-up program; (4) a program that allows the use of on-site energy storage as an eligible efficiency measure in existing programs; (5) a program that encourages the deployment of advanced electricity meters; (6) a program that encourages the installation of cool roofing materials; (7) a program that establishes lighting limits; (8) a distributed energy generation technology program; and (9) a program that encourages the use of high-efficiency building distribution transformers and variable air volume fan controls. SECTION 4. This Act takes effect September 1, 2005.
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