79R5710 SMH-D

By:  Jackson, Mike                                                S.B. No. 1102



A BILL TO BE ENTITLED

AN ACT

relating to the establishment of a program by the Department of 
Agriculture to make grants to farmers who provide agricultural 
biomass to facilities that convert biomass to energy.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Title 2, Agriculture Code, is amended by adding 
Chapter 22 to read as follows:

CHAPTER 22.  AGRICULTURAL BIOMASS INCENTIVE PROGRAM
	Sec. 22.001.  DEFINITION.  In this chapter, "qualified 
agricultural biomass" means agricultural residues that are of a 
type that historically have been burned in open fields in the area 
from which they are derived.  The term:
		(1)  includes:                                                         
			(A)  field and seed crop residues, including 
straws from rice and wheat; and
			(B)  fruit and nut crop residues, including 
orchard and vineyard pruning and removals; and
		(2)  does not include urban and forest wood products.                  
	Sec. 22.002.  AGRICULTURAL BIOMASS GRANTS.  (a)  The 
department shall establish a program to make grants to farmers who 
provide agricultural biomass to facilities that convert biomass to 
energy to provide an incentive for the construction of facilities 
for that purpose to:
		(1)  promote economic development;                                     
		(2)  encourage the use of renewable sources in the 
production of energy; and
		(3)  reduce air pollution caused by the burning of 
agricultural biomass in open fields.
	(b)  A farmer is entitled to receive a grant in the amount of 
$10 for each green ton of qualified agricultural biomass provided 
by the farmer to a facility that:
		(1)  is located in this state;                                         
		(2)  was constructed on or after June 30, 2005;                        
		(3)  converts qualified agricultural biomass to 
energy;              
		(4)  uses the best available emissions control 
technology, considering the technical practicability and economic 
reasonableness of reducing or eliminating the air contaminant 
emissions resulting from the facility;
		(5)  maintains its emissions control equipment in good 
working order; and
		(6)  is in compliance with its operating permit issued 
by the Texas Commission on Environmental Quality under Chapter 382, 
Health and Safety Code.
	(c)  Notwithstanding Subsection (b), the commissioner by 
rule may authorize the making of a grant for providing a green ton 
of a type or source of qualified agricultural biomass in an amount 
that is greater than the amount provided by that subsection if the 
commissioner determines that a grant in a greater amount is 
necessary to provide an adequate incentive to convert that type or 
source of qualified agricultural biomass to energy.
	(d)  The Public Utility Commission of Texas and the Texas 
Commission on Environmental Quality shall assist the department as 
necessary to enable the department to determine whether a facility 
meets the requirements of this section for purposes of eligibility 
of farmers for grants under this chapter.
	(e)  To receive a grant under this chapter, a farmer must 
file an application with the department on a form prescribed by the 
department.  The form must require the farmer to provide the 
information necessary to determine whether the farmer is entitled 
to receive a grant and the amount of the grant to which the farmer is 
entitled.
	(f)  The department shall provide for the distribution of 
grant money under this chapter to eligible farmers.  Grant money 
must be distributed to eligible farmers in the order in which 
applications for the grants are received.  The department shall 
make grants not less often than quarterly, subject to 
appropriations.
	Sec. 22.003.  RULES.  The commissioner, in consultation with 
the Public Utility Commission of Texas and the Texas Commission on 
Environmental Quality, shall adopt rules to implement this chapter.
	SECTION 2.  (a) Not later than December 1, 2005, the 
commissioner of agriculture, in consultation with the Public 
Utility Commission of Texas and the Texas Commission on 
Environmental Quality, shall adopt rules to implement Chapter 22, 
Agriculture Code, as added by this Act.
	(b)  Beginning not later than January 1, 2006, the Department 
of Agriculture shall be prepared to make grants under Chapter 22, 
Agriculture Code, as added by this Act, to farmers who provide 
qualified agricultural biomass to facilities that convert biomass 
to energy.
	SECTION 3.  This Act takes effect September 1, 2005.