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A BILL TO BE ENTITLED
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AN ACT
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relating to nitrogen oxide allowance allocation adjustments and the |
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incorporation of modifications to federal rules under the state |
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implementation plan. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Sections 382.0173(b), (c), and (e), Health and |
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Safety Code, are amended to read as follows: |
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(b) The commission may require emissions reductions in |
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conjunction with implementation of the rules adopted under |
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Subsection (a) only for electric generating units. The commission |
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shall make permanent allocations that are reflective of the |
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allocation requirements of 40 C.F.R. Subparts AA through HH and |
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Subparts AAA through HHH of Part 96 and 40 C.F.R. Subpart HHHH of |
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Part 60, as applicable, at no cost to units as defined in 40 C.F.R. |
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Sections [Section] 51.123 and 60.4102 using the United States |
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Environmental Protection Agency's allocation method as specified |
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by 40 C.F.R. Section 60.4142(a)(1)(i)[, as issued by that agency on
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May 12, 2005,] or 40 C.F.R. Section 96.142(a)(1)(i)[, as issued by
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that agency on May 18, 2005], as applicable, with the exception of |
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nitrogen oxides which shall be allocated according to the |
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additional requirements of Subsection (c). The commission shall |
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maintain a special reserve of allocations for new units commencing |
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operation on or after January 1, 2001, as defined by 40 C.F.R. |
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Subparts AA through HH and Subparts AAA through HHH of Part 96 and |
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40 C.F.R. Subpart HHHH of Part 60, as applicable, with the exception |
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of nitrogen oxides which shall be allocated according to the |
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additional requirements of Subsection (c). |
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(c) Additional requirements regarding NOx allocations: |
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(1) The commission shall maintain a special reserve of |
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allocations for nitrogen oxide of 9.5 percent for new units. |
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Beginning with the 2015 control period, units shall be considered |
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new for each control period in which they do not have five years of |
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operating data reported to the commission prior to the date of |
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allocation for a given control period. Prior to the 2015 control |
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period, units that commenced operation on or after January 1, 2001, |
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will receive NOx allocations from the special reserve only. |
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(2) Nitrogen oxide allowances shall be established for |
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the 2009-2014 control periods for units commencing operation before |
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January 1, 2001, using the average of the three highest amounts of |
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the unit's adjusted control period heat input for 2000 through |
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2004, with the adjusted control period heat input for each year |
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calculated as follows: |
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(A) if the unit is coal-fired during the year, |
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the unit's control period heat input for such year is multiplied by |
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90 percent; |
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(B) if the unit is natural gas-fired during the |
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year, the unit's control period heat input for such year is |
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multiplied by 50 percent; and |
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(C) if the fossil fuel fired unit is not subject |
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to Paragraph [Subparagraph] (A) or (B) of this subdivision |
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[paragraph], the unit's control period heat input for such year is |
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multiplied by 30 percent. |
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(3) Before the allocation date specified by EPA for |
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the control period beginning January 1, 2018 [2016], and every five |
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years thereafter, the commission shall adjust the baseline for all |
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affected units using the average of the three highest amounts of the |
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unit's adjusted control period heat input for periods one through |
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five of the preceding nine [seven] control periods, with the |
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adjusted control period heat input for each year calculated as |
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follows: |
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(A) for units commencing operation before |
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January 1, 2001: |
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(i) if the unit is coal-fired during the |
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year, the unit's control period heat input for such year is |
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multiplied by 90 percent; |
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(ii) if the unit is natural gas-fired |
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during the year, the unit's control period heat input for such year |
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is multiplied by 50 percent; and |
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(iii) if the fossil fuel fired unit is not |
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subject to Subparagraph (i) or (ii) [Subdivision (3)(A)(i) or
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(3)(A)(ii)] of this paragraph [subparagraph], the unit's control |
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period heat input for such year is multiplied by 30 percent; and[.] |
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(B) for units commencing operation on or after |
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January 1, 2001, in accordance with the formulas set forth by USEPA |
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in 40 C.F.R. 96.142 with any corrections to this section that may be |
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issued by USEPA prior to the allocation date. |
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(e) In adopting rules under Subsection (a), the commission |
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shall incorporate any modifications to the federal rules cited in |
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this section that result from: |
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(1) a request for rehearing regarding those rules that |
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is filed with the United States Environmental Protection Agency; |
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(2) [or from] a petition for review of those rules that |
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is filed with a court; or |
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(3) a final rulemaking action of the United States |
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Environmental Protection Agency. |
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SECTION 2. This Act takes effect immediately if it receives |
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a vote of two-thirds of all the members elected to each house, as |
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provided by Section 39, Article III, Texas Constitution. If this |
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Act does not receive the vote necessary for immediate effect, this |
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Act takes effect September 1, 2007. |