79R6752 JTS-D

By:  Pickett                                                      H.B. No. 3007



A BILL TO BE ENTITLED

AN ACT

relating to the eligibility of certain counties for Texas emissions 
reduction plan grants.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Section 386.001, Health and Safety Code, is 
amended by adding Subdivision (12) to read as follows:
		(12) "Former nonattainment area" means an area that was 
formerly designated as a nonattainment area but is no longer 
designated as a nonattainment area.
	SECTION 2.  Section 386.102(a), Health and Safety Code, is 
amended to read as follows:
	(a)  The commission shall establish and administer a diesel 
emissions reduction incentive program.  Under the program, the 
commission shall provide grants for eligible projects to offset the 
incremental cost of projects that reduce emissions of oxides of 
nitrogen from high-emitting diesel sources in nonattainment areas,
[and] affected counties, and former nonattainment areas of the 
state.  The commission shall determine the eligibility of projects.
	SECTION 3.  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, an [or] affected county, or a former 
nonattainment area 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 4.  Section 386.104(c), Health and Safety Code, is 
amended to read as follows:
	(c)  For a proposed project as described by Section 
386.102(b), other than a project involving a marine vessel or 
engine, not less than 75 percent of vehicle miles traveled or hours 
of operation projected for the five years immediately following the 
award of a grant must be projected to take place in a nonattainment 
area, an [or] affected county, or a former nonattainment area of 
this state.  For a proposed project involving a marine vessel or 
engine, the vessel or engine must be operated in the intercoastal 
waterways or bays adjacent to a nonattainment area, an [or] 
affected county, or a former nonattainment area of this state for a 
sufficient amount of time over the lifetime of the project, as 
determined by the commission, to meet the cost-effectiveness 
requirements of Section 386.105.
	SECTION 5.  Sections 386.105(c) and (d), Health and Safety 
Code, are amended to read as follows:
	(c)  The commission shall develop protocols for calculating 
oxides of nitrogen emissions reductions not otherwise required by 
state or federal law in nonattainment areas, [and] affected 
counties, and former nonattainment areas of this state from 
representative project types over the life of the projects.
	(d)  The commission may include in cost-effectiveness 
determinations only reductions in oxides of nitrogen emissions that 
are achieved in nonattainment areas, [and] affected counties, and 
former nonattainment areas of this state.
	SECTION 6.  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, or former nonattainment 
area 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 7.  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, 2005.