79R12376 SMH-D


By:  Bonnen                                                       H.B. No. 2481

Substitute the following for H.B. No. 2481:                                   

By:  Bonnen                                                   C.S.H.B. No. 2481


A BILL TO BE ENTITLED
AN ACT
relating to the Texas emissions reduction plan, including the use of money currently dedicated to the Texas emissions reduction plan fund. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Section 386.002, Health and Safety Code, is amended to read as follows: Sec. 386.002. EXPIRATION. This chapter expires August 31, 2013 [2008]. SECTION 2. Section 386.053(c), Health and Safety Code, is amended to read as follows: (c) The commission shall make draft guidelines and criteria available to the public and the United States Environmental Protection Agency before the 30th [45th] day preceding the date of final adoption and shall hold at least one public meeting to consider public comments on the draft guidelines and criteria before final adoption. The public meeting shall be held in the affected state implementation plan area, and if the guidelines affect more than one state implementation plan area, a public meeting shall be held in each affected state implementation plan area affected by the guidelines. SECTION 3. Section 386.056, Health and Safety Code, is amended by amending Subsections (a), (b), and (c) and adding Subsection (a-1) to read as follows: (a) An owner or operator of a site located in the Houston-Galveston or Dallas-Fort Worth nonattainment area may use emissions reductions generated by a program established under this chapter to offset the requirements of commission rules relating to control of air pollution from oxides of nitrogen if: (1) the owner or operator of the site contributes to the Texas Mobility Fund [fund] $75,000 for each ton of emissions that is used, not to exceed 25 tons annually and not to exceed one-half ton per day; (2) the owner or operator of the site demonstrates to the commission's satisfaction that the site will be in full compliance with the commission's emissions reduction rules not later than the fifth anniversary of the date on which the emissions reductions would otherwise be required; (3) emissions from the site are reduced by at least 80 percent from the established baseline; and (4) the commission approves a petition by the owner or operator that demonstrates that it is technically infeasible to comply with the commission's emissions reduction requirements above 80 percent. (a-1) The comptroller shall establish a record of the amount of the contributions deposited to the credit of the Texas Mobility Fund under Subsection (a). The Texas Department of Transportation may not use contributions deposited to the credit of the Texas Mobility Fund under Subsection (a) to construct, maintain, or operate a toll road, toll bridge, or turnpike. On or before the fifth workday of each month, the Texas Department of Transportation shall remit to the comptroller for deposit to the credit of the Texas emissions reduction plan fund an amount of money equal to the amount of the contributions deposited by the comptroller to the credit of the Texas Mobility Fund under Subsection (a) in the preceding month. The Texas Department of Transportation shall use for remittance to the comptroller as required by this subsection money in the state highway fund that is not required to be used for a purpose specified by Section 7-a, Article VIII, Texas Constitution, and may not use for that remittance money received by this state under the congestion mitigation and air quality improvement program established under 23 U.S.C. Section 149. (b) Money deposited to the credit of the Texas emissions reduction plan fund [Funds collected] under Subsection (a-1) [this section] shall be used to generate emissions reductions needed to meet the commission's attainment demonstration. (c) The commission shall verify that emissions reductions generated from the use of money deposited to the credit of the Texas emissions reduction plan fund [funds collected] under Subsection (a-1) [this section] occur in the same nonattainment area in which the site that purchased the emissions reductions is located. SECTION 4. Sections 386.058(b) and (e), Health and Safety Code, are amended to read as follows: (b) The governor shall appoint to the advisory board: (1) a representative of the trucking industry; (2) a representative of the air conditioning manufacturing industry; (3) a representative of the electric utility industry; (4) a representative of regional transportation; and (5) a representative of the nonprofit organization described by Section 386.252(a)(2) [the Texas Council on Environmental Technology]. (e) Appointed members of the advisory board serve staggered four-year [two-year] terms, with the [. The] terms of seven or eight appointed members expiring [expire] February 1 of each [even-numbered year. The terms of eight appointed members expire February 1 of each] odd-numbered year. An appointed member may be reappointed to a subsequent term. SECTION 5. Section 386.101(6), Health and Safety Code, is 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 pounds or more]. SECTION 6. Section 386.111(a), Health and Safety Code, is amended to read as follows: (a) The commission shall review an application for a grant for a project authorized under this subchapter, including an application for a grant for an infrastructure project, immediately on receipt of the application. If the commission determines that an application is incomplete, the commission shall notify the applicant[, not later than the 15th working day after the date on which the commission received the application,] with an explanation of what is missing from the application. The commission shall [record the date and time of receipt of each application the commission determines to be complete and shall] evaluate the completed application according to the appropriate project criteria. Subject to available funding, the commission shall make a final determination on an application as soon as possible [and not later than the 60th working day after the date the application is determined to be complete]. SECTION 7. Section 386.115, Health and Safety Code, is amended 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 8. Section 386.116(d), Health and Safety Code, is amended to read as follows: (d) The [On or before December 1 of each even-numbered year, the] commission shall include in the biennial plan report required by Section 386.057(b) a report of commission actions and results under this section [to the governor, lieutenant governor, and speaker of the house of representatives]. SECTION 9. Subchapter C, Chapter 386, Health and Safety Code, is amended by adding Section 386.117 to read as follows: Sec. 386.117. REBATE GRANTS. (a) The commission shall adopt a process for awarding grants under this subchapter in the form of rebates to streamline the grant application, contracting, reimbursement, and reporting processes for certain projects. The process adopted under this section must: (1) designate certain types of projects, such as repowers, replacements, and retrofits, as eligible for rebates; (2) project standardized oxides of nitrogen emissions reductions for each designated project type; (3) assign a standardized rebate amount for each designated project type; (4) allow for processing rebates on an ongoing first-come, first-served basis; and (5) consolidate, simplify, and reduce the administrative work for applicants and the commission associated with grant application, contracting, reimbursement, and reporting processes for designated project types. (b) The commission may limit or expand the designated project types as necessary to further the goals of the program. (c) The commission may award rebate grants as a pilot project for a specific region or may award the grants statewide. (d) The commission may administer the rebate grants or may designate another entity to administer the grants. SECTION 10. Section 386.251(c), Health and Safety Code, is amended to read as follows: (c) The fund consists of: (1) the amount of money deposited to the credit of the fund [contributions, fees, and surcharges] under: (A) Section 386.056; (B) Sections 151.0515 and 152.0215, Tax Code; and (C) Sections 501.138, 502.1675, and 548.5055 [and 548.256(c)], Transportation Code; and (2) grant money recaptured under Section 386.111(d). SECTION 11. 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 $350,000 [$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, and the balance is to be allocated each year to that nonprofit organization based in Houston to be used to implement and administer the new technology research and development program under a contract with the commission for the purpose of identifying, testing, and evaluating new emissions-reducing technologies with potential for commercialization in this state and to facilitate their certification or verification; and (3) for administrative costs incurred by the commission and the laboratory, three percent of the money in the fund. SECTION 12. Effective September 1, 2008, 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, 64 [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, 33 [9.5] percent of the money in the fund, of which up to $350,000 [$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 10 [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, not less than 25.5 percent is to be allocated each year to that nonprofit organization based in Houston to be used to implement and administer the new technology research and development program under a contract with the commission for the purpose of identifying, testing, and evaluating new emissions-reducing technologies with potential for commercialization in this state and to facilitate their certification or verification, and the balance is to be allocated each year to the commission to fund promising new technologies as identified through the new technology research and development program and recommended by that nonprofit organization based in Houston in order to permit obtaining the maximum credits for emissions reductions under the state's air quality state implementation plans; and (3) for administrative costs incurred by the commission and the laboratory, three percent of the money in the fund. SECTION 13. Section 387.003(a), Health and Safety Code, is amended to read as follows: (a) The nonprofit organization described by Section 386.252(a)(2), under a contract with the commission as described by that section[, in consultation with the Texas Council on Environmental Technology], shall establish and administer a new technology research and development program as provided by this chapter. SECTION 14. Section 387.005(a), Health and Safety Code, is amended to read as follows: (a) Grants awarded under this chapter shall be directed toward a balanced mix of: (1) retrofit and add-on technologies to reduce emissions from the existing stock of vehicles targeted by the Texas emissions reduction plan; (2) advanced technologies for new engines and vehicles that produce very-low or zero emissions of oxides of nitrogen, including stationary and mobile fuel cells; (3) studies to improve air quality assessment and modeling; and (4) [advanced technologies that promote increased building and appliance energy performance; and [(5)] advanced technologies that reduce emissions from other significant sources. SECTION 15. Section 388.003(e), Health and Safety Code, is amended to read as follows: (e) Local amendments may not result in less stringent energy efficiency requirements in nonattainment areas and in affected counties than the energy efficiency chapter of the International Residential Code or International Energy Conservation Code. Local amendments must comply with the National Appliance Energy Conservation Act of 1987 (42 U.S.C. Sections 6291-6309), as amended. The laboratory, at the request of a municipality or county, shall determine the relative impact of proposed local amendments to an energy code, including whether proposed amendments are substantially equal to or less stringent than the unamended code. For the purpose of establishing uniform requirements throughout a region, and on request of a council of governments, a county, or a municipality, the laboratory may recommend a climatically appropriate modification or a climate zone designation for a county or group of counties that is different from the climate zone designation in the unamended code. The laboratory shall: (1) report its findings to the council, county, or municipality, including an estimate of any energy savings potential above the base code from local amendments; and (2) annually submit a report to the commission: (A) identifying the municipalities and counties whose codes are more stringent than the unamended code, and whose codes are equally stringent or less stringent than the unamended code; and (B) quantifying energy savings and emissions reductions from this program. SECTION 16. Section 389.003, Health and Safety Code, is amended to read as follows: Sec. 389.003. COMPUTING ENERGY EFFICIENCY EMISSIONS REDUCTIONS AND ASSOCIATED CREDITS. (a) The commission shall develop a method to use in computing emissions reductions obtained through energy efficiency initiatives, including renewable energy initiatives, and the credits associated with those reductions. (b) The laboratory shall assist the commission and affected political subdivisions in quantifying, as part of the state implementation plan, credits for emissions reductions attributable to energy efficiency programs, including renewable energy programs. SECTION 17. Section 151.0515, Tax Code, is amended by amending Subsections (c) and (d) and adding Subsection (c-1) to read as follows: (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. 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 Mobility Fund [emissions reduction plan fund]. (c-1) The comptroller shall establish a record of the amount of the surcharges deposited to the credit of the Texas Mobility Fund under Subsection (c). The Texas Department of Transportation may not use surcharges deposited to the credit of the Texas Mobility Fund under Subsection (c) to construct, maintain, or operate a toll road, toll bridge, or turnpike. On or before the fifth workday of each month, the Texas Department of Transportation shall remit to the comptroller for deposit to the credit of the Texas emissions reduction plan fund an amount of money equal to the amount of the surcharges deposited by the comptroller to the credit of the Texas Mobility Fund under Subsection (c) in the preceding month. The Texas Department of Transportation shall use for remittance to the comptroller as required by this subsection money in the state highway fund that is not required to be used for a purpose specified by Section 7-a, Article VIII, Texas Constitution, and may not use for that remittance money received by this state under the congestion mitigation and air quality improvement program established under 23 U.S.C. Section 149. (d) This section expires September 30, 2013 [2008]. SECTION 18. Section 152.0215, Tax Code, is amended by amending Subsections (b) and (c) and adding Subsection (b-1) to read as follows: (b) 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. The comptroller by rule 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 Mobility Fund [emissions reduction plan fund]. (b-1) The comptroller shall establish a record of the amount of the surcharges deposited to the credit of the Texas Mobility Fund under Subsection (b). The Texas Department of Transportation may not use surcharges deposited to the credit of the Texas Mobility Fund under Subsection (b) to construct, maintain, or operate a toll road, toll bridge, or turnpike. On or before the fifth workday of each month, the Texas Department of Transportation shall remit to the comptroller for deposit to the credit of the Texas emissions reduction plan fund an amount of money equal to the amount of the surcharges deposited by the comptroller to the credit of the Texas Mobility Fund under Subsection (b) in the preceding month. The Texas Department of Transportation shall use for remittance to the comptroller as required by this subsection money in the state highway fund that is not required to be used for a purpose specified by Section 7-a, Article VIII, Texas Constitution, and may not use for that remittance money received by this state under the congestion mitigation and air quality improvement program established under 23 U.S.C. Section 149. (c) This section expires September 30, 2013 [2008]. SECTION 19. Section 501.138, Transportation Code, is amended by amending Subsections (a) and (b) and adding Subsections (b-1), (b-2), and (b-3) 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: (1) $33 if the applicant's residence is a county located within a nonattainment area as defined under Section 107(d) of the federal Clean Air Act (42 U.S.C. Section 7407), as amended, or is an affected county, as defined by Section 386.001, Health and Safety Code; or (2) $28 if the applicant's residence is any other county[; or [(3) on or after September 1, 2008, $28 regardless of the county in which the applicant resides]. (b) The county assessor-collector shall send: (1) $5 of the fee to the county treasurer for deposit in the officers' salary fund; (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) the following amount to the comptroller at the time and in the manner prescribed by the comptroller: (A) $20 of the fee if the applicant's residence is a county located within a nonattainment area as defined under Section 107(d) of the federal Clean Air Act (42 U.S.C. Section 7407), as amended, or is an affected county, as defined by Section 386.001, Health and Safety Code; or (B) $15 of the fee if the applicant's residence is any other county. [; or] (b-1) [(C)] Fees collected under Subsection (b) [this subsection] to be sent to the comptroller shall be deposited [as follows: [(i) before September 1, 2008, to the credit of the Texas emissions reduction fund; and [(ii) after September 1, 2008,] to the credit of the Texas Mobility Fund. (b-2) The comptroller shall establish a record of the amount of the fees deposited to the credit of the Texas Mobility Fund under Subsection (b-1). On or before the fifth workday of each month, the department shall remit to the comptroller for deposit to the credit of the Texas emissions reduction plan fund an amount of money equal to the amount of the fees deposited by the comptroller to the credit of the Texas Mobility Fund under Subsection (b-1) in the preceding month. The department shall use for remittance to the comptroller as required by this subsection money in the state highway fund that is not required to be used for a purpose specified by Section 7-a, Article VIII, Texas Constitution, and may not use for that remittance money received by this state under the congestion mitigation and air quality improvement program established under 23 U.S.C. Section 149. (b-3) This subsection and Subsection (b-2) expire September 1, 2010. SECTION 20. Section 502.1675, Transportation Code, is amended by amending Subsections (b) and (c) and adding Subsection (b-1) to read as follows: (b) The county tax assessor-collector shall remit the surcharge collected under this section to the comptroller at the time and in the manner prescribed by the comptroller for deposit in the Texas Mobility Fund [emissions reduction plan fund]. (b-1) The comptroller shall establish a record of the amount of the surcharges deposited to the credit of the Texas Mobility Fund under Subsection (b). The department may not use surcharges deposited to the credit of the Texas Mobility Fund under Subsection (b) to construct, maintain, or operate a toll road, toll bridge, or turnpike. On or before the fifth workday of each month, the department shall remit to the comptroller for deposit to the credit of the Texas emissions reduction plan fund an amount of money equal to the amount of the surcharges deposited by the comptroller to the credit of the Texas Mobility Fund under Subsection (b) in the preceding month. The department shall use for remittance to the comptroller as required by this subsection money in the state highway fund that is not required to be used for a purpose specified by Section 7-a, Article VIII, Texas Constitution, and may not use for that remittance money received by this state under the congestion mitigation and air quality improvement program established under 23 U.S.C. Section 149. (c) This section expires August 31, 2013 [2008]. SECTION 21. Section 548.5055, Transportation Code, is amended by amending Subsections (b) and (c) and adding Subsection (b-1) to read as follows: (b) The department shall remit fees collected under this section to the comptroller at the time and in the manner prescribed by the comptroller for deposit in the Texas Mobility Fund [emission reduction plan fund]. (b-1) The comptroller shall establish a record of the amount of the fees deposited to the credit of the Texas Mobility Fund under Subsection (b). The Texas Department of Transportation may not use fees deposited to the credit of the Texas Mobility Fund under Subsection (b) to construct, maintain, or operate a toll road, toll bridge, or turnpike. On or before the fifth workday of each month, the Texas Department of Transportation shall remit to the comptroller for deposit to the credit of the Texas emissions reduction plan fund an amount of money equal to the amount of the fees deposited by the comptroller to the credit of the Texas Mobility Fund under Subsection (b) in the preceding month. The Texas Department of Transportation shall use for remittance to the comptroller as required by this subsection money in the state highway fund that is not required to be used for a purpose specified by Section 7-a, Article VIII, Texas Constitution, and may not use for that remittance money received by this state under the congestion mitigation and air quality improvement program established under 23 U.S.C. Section 149. (c) This section expires August 31, 2013 [2008]. SECTION 22. Sections 386.001(4), 386.057(e), 387.002, and 387.010, Health and Safety Code, and Sections 548.256(c) and (d), Transportation Code, are repealed. SECTION 23. The Texas Commission on Environmental Quality shall prepare guidance documents for the rebate grants required by Section 386.117, Health and Safety Code, as added by this Act, not later than January 1, 2006. SECTION 24. (a) As soon as practicable on or after the effective date of this Act, the governor shall appoint to the Texas Emissions Reduction Plan Advisory Board a representative of the nonprofit organization described by Section 386.252(a)(2), Health and Safety Code, as required by Section 386.058(b), Health and Safety Code, as amended by this Act, to replace the representative of the Texas Council on Environmental Technology serving on that board on the effective date of this Act. (b) As soon as practicable on or after the effective date of this Act, the governor, lieutenant governor, and speaker of the house of representatives, by mutual agreement, shall designate the terms of the appointed members of the Texas Emissions Reduction Plan Advisory Board so that the terms of seven appointed members expire on February 1, 2007, and the terms of eight appointed members expire on February 1, 2009, as provided by Section 386.058(e), Health and Safety Code, as amended by this Act. SECTION 25. Except as otherwise provided by this Act, this Act takes effect September 1, 2005.