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.