2007S0342-2 02/14/07
 
  By: Averitt S.B. No. 12
 
 
A BILL TO BE ENTITLED
AN ACT
relating to programs for the enhancement of air quality, including
energy efficiency initiatives; providing penalties.
       BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
ARTICLE 1. LOW-INCOME VEHICLE REPAIR ASSISTANCE, RETROFIT, AND
ACCELERATED VEHICLE RETIREMENT PROGRAM
       SECTION 1.01.  Section 382.003, Health and Safety Code, is
amended by adding Subdivisions (7-a), (9-a), (9-b), (10-a), and
(10-b) to read as follows:
             (7-a)  "Hybrid motor vehicle" means a motor vehicle
that draws propulsion energy from both gasoline or conventional
diesel fuel and a rechargeable energy storage system.
             (9-a)  "Motor vehicle" means a fully self-propelled
vehicle having four wheels that has as its primary purpose the
transport of a person or persons, or property, on a public highway.
             (9-b)  "New motor vehicle" means a motor vehicle that
has not been the subject of a retail sale regardless of the mileage
of the vehicle.
             (10-a)  "Qualifying new motor vehicle" means a new
motor vehicle that:
                   (A)  has a model year no earlier than the calendar
year immediately preceding the current calendar year; and
                   (B)  meets the requirements of Section
382.201(b).
             (10-b)  "Retail sale" means any sale of a motor vehicle
other than a sale in which the purchaser acquires a vehicle for
resale.
       SECTION 1.02.  Section 382.209, Health and Safety Code, is
amended by amending Subsections (b), (e), and (g) and adding
Subsections (i) and (j) to read as follows:
       (b)  The commission shall provide funding for local
low-income vehicle repair assistance, retrofit, and accelerated
vehicle retirement programs with available funds collected under
Section 382.202, 382.302, or other designated and available funds.
The programs shall be administered in accordance with Chapter 783,
Government Code. Program [Programmatic] costs may include call
center management, application oversight, invoice analysis,
education, outreach, and advertising.  Not more than 10 percent of
the money provided to a local low-income vehicle repair assistance,
retrofit, and accelerated vehicle retirement program under this
section may be used for the administration of the programs,
including program costs.
       (e)  A vehicle is not eligible to participate in a low-income
vehicle repair assistance, retrofit, and accelerated vehicle
retirement program established under this section unless:
             (1)  the vehicle is capable of being operated;
             (2)  the registration of the vehicle:
                   (A)  is current; and
                   (B)  reflects that the vehicle has been registered
in the county implementing the program for the 12 months preceding
the application for participation in the program;
             (3)  the commissioners court of the county
administering the program determines that the vehicle meets the
eligibility criteria adopted by the commission, the Texas
Department of Transportation, and the Public Safety Commission;
[and]
             (4)  if the vehicle is to be repaired, the repair is
done by a repair facility recognized by the Department of Public
Safety, which may be an independent or private entity licensed by
the state; and
             (5)  if the vehicle is to be retired under this
subsection and Section 382.213, the replacement vehicle is a
qualifying new motor vehicle.
       (g)  A participating county may contract with any
appropriate entity, including the regional council of governments
or the metropolitan planning organization in the appropriate
region, or with another county for services necessary to implement
the participating county's low-income vehicle repair assistance,
retrofit, and accelerated vehicle retirement program. The
participating counties in a nonattainment region or counties
participating in an early action compact under Subchapter H may
agree to have the money collected in any one county be used in any
other participating county in the same region. [The participating
counties may also agree to contract with any appropriate entity,
including the regional metropolitan planning organization or
council of governments, to implement a program under Section
382.217.]
       (i)  Notwithstanding the vehicle replacement requirements
provided by Subsection (d)(2), the commission by rule may provide
monetary or other compensatory assistance under the low-income
vehicle repair assistance, retrofit, and accelerated vehicle
retirement program, subject to the availability of funds, for the
replacement of a vehicle that meets the following criteria:
             (1)  the vehicle is gasoline-powered and is at least 10
years old;
             (2)  the vehicle owner meets applicable financial
eligibility criteria;
             (3)  the vehicle meets the requirements provided by
Subsections (e)(1) and (e)(2); and
             (4)  the vehicle has passed a Department of Public
Safety motor vehicle safety inspection or safety and emissions
inspection within the 15-month period before the application is
submitted.
       (j)  The commission may provide monetary or other
compensatory assistance under the low-income vehicle repair
assistance, retrofit, and accelerated vehicle retirement program
for a replacement vehicle or replacement assistance for a pre-1996
model year vehicle that passes the required United States
Environmental Protection Agency Start-Up Acceleration Simulation
Mode Standards emissions test but that would have failed the United
States Environmental Protection Agency Final Acceleration
Simulation Mode Standards emissions test or some other criterion
determined by the commission; provided, however, that a replacement
vehicle under this subsection must be a qualifying new motor
vehicle.
       SECTION 1.03.  Section 382.210, Health and Safety Code, is
amended to read as follows:
       Sec. 382.210.  IMPLEMENTATION GUIDELINES AND REQUIREMENTS.  
(a)  The commission by rule shall adopt guidelines to assist a
participating county in implementing a low-income vehicle repair
assistance, retrofit, and accelerated vehicle retirement program
authorized under Section 382.209. The guidelines at a minimum
shall recommend:
             (1)  a minimum and maximum amount for repair
assistance;
             (2)  a minimum and maximum amount toward the purchase
price of a replacement vehicle qualified for the accelerated
retirement program, with the maximum amount not to exceed $2,500
or, if the replacement vehicle is a hybrid motor vehicle, $3,500;
             (3)  criteria for determining eligibility, taking into
account:
                   (A)  the vehicle owner's income, which may not
exceed 300 percent of the federal poverty level;
                   (B)  the fair market value of the vehicle; and
                   (C)  any other relevant considerations;
             (4)  safeguards for preventing fraud in the repair,
purchase, or sale of a vehicle in the program; and
             (5)  procedures for determining the degree and amount
of repair assistance a vehicle is allowed, based on:
                   (A)  the amount of money the vehicle owner has
spent on repairs;
                   (B)  the vehicle owner's income; and
                   (C)  any other relevant factors.
       (b)  A replacement vehicle described by Subsection (a)(2)
must:
             (1)  except as provided by Subsection (c), be a vehicle
in a class or category of vehicles that has been certified to meet
federal Tier 2, Bin 5 or a cleaner Bin certification under 40 C.F.R.
Section 86.1811-04, as published in the February 10, 2000, Federal
Register;
             (2)  have a gross vehicle weight rating of less than
10,000 pounds; and
             (3)  be a vehicle the total cost of which does not
exceed $25,000.
       (c)  The commission may adopt any revisions made by the
federal government to the emissions standards described by
Subsection (b)(1).
       (d)  A participating county shall provide an electronic
means for distributing vehicle repair or replacement funds once all
program criteria have been met with regard to the repair or
replacement.
       SECTION 1.04.  Section 382.213, Health and Safety Code, is
amended by amending Subsection (a) and adding Subsections (d)
through (h) to read as follows:
       (a)  Except as provided by Subsection (c) and Subdivision (5)
of this subsection, a vehicle retired under an accelerated vehicle
retirement program authorized by Section 382.209 may not be resold
or reused in its entirety in this or another state. The automobile
dealer who takes possession of the vehicle must submit to the
program administrator proof, in a manner adopted by the commission,
that the vehicle has been retired. The vehicle must be:
             (1)  destroyed;
             (2)  recycled;
             (3)  dismantled and its parts sold as used parts or used
in the program;
             (4)  placed in a storage facility of a program
established under Section 382.209 and subsequently destroyed,
recycled, or dismantled and its parts sold or used in the program;
or
             (5)  repaired, brought into compliance, and used as a
replacement vehicle under Section 382.209(d)(2).
       (d)  Notwithstanding Subsection (a)(3), the dismantler of a
vehicle shall scrap the emissions control equipment and engine.  
The dismantler shall certify that the equipment and engine have
been scrapped and not resold into the marketplace. A person who
causes, suffers, allows, or permits a violation of this subsection
or of a rule adopted under this section is subject to a civil
penalty under Subchapter D, Chapter 7, Water Code, for each
violation. For purposes of this subsection, a separate violation
occurs with each fraudulent certification or prohibited resale.
       (e)  Notwithstanding Subsection (d), vehicle parts not
related to emissions control equipment or the engine may be resold
in any state.
       (f)  Any dismantling of vehicles or salvaging of steel under
this section must be performed at a facility located in this state.
       (g)  In dismantling a vehicle under this section, the
dismantler shall remove any mercury switches in accordance with
state and federal law.
       (h)  For purposes of this section, the commission shall adopt
rules defining "emissions control equipment" and "engine."
       SECTION 1.05.  Subchapter G, Chapter 382, Health and Safety
Code, is amended by adding Sections 382.219, 382.220, and 382.221
to read as follows:
       Sec. 382.219.  PARTICIPATING AUTOMOBILE DEALERSHIPS.
(a)  A participating automobile dealer must accept the amount
described by Section 382.210(2) solely as a replacement incentive
under the program established by Section 382.209 and may not offset
that amount against any other rebate being offered by the dealer.
The amount may be used as a down payment toward the purchase of a
replacement vehicle.
       (b)  For purposes of this section, a participating
automobile dealer must be a dealer located in the state.
       SECTION 1.06.  Section 7.102, Water Code, is amended to read
as follows:
       Sec. 7.102.  MAXIMUM PENALTY.  A person who causes, suffers,
allows, or permits a violation of a statute, rule, order, or permit
relating to Chapter 37 of this code, Chapter 366, 371, or 372,
Health and Safety Code, Subchapter G, Chapter 382, Health and
Safety Code, or Chapter 1903, Occupations Code, shall be assessed
for each violation a civil penalty not less than $50 nor greater
than $5,000 for each day of each violation as the court or jury
considers proper. A person who causes, suffers, allows, or permits
a violation of a statute, rule, order, or permit relating to any
other matter within the commission's jurisdiction to enforce, other
than violations of Chapter 11, 12, 13, 16, or 36 of this code, or
Chapter 341, Health and Safety Code, shall be assessed for each
violation a civil penalty not less than $50 nor greater than $25,000
for each day of each violation as the court or jury considers
proper. Each day of a continuing violation is a separate violation.
       SECTION 1.07.  The following provisions of the Health and
Safety Code are repealed:
             (1)  Subsection (e), Section 382.0622;
             (2)  Subsections (q) and (r), Section 382.202; and
             (3)  Section 382.217.
       SECTION 1.08.  The Texas Commission on Environmental Quality
shall review its current cutpoint levels for nitrogen oxide
emissions and determine whether a lower cutpoint standard would
best serve the interest of the public health and welfare. The
determination shall be made by rule not later than January 1, 2008.
If the commission adopts a lower cutpoint standard, the commission
shall make the low-income vehicle repair assistance, retrofit, and
accelerated vehicle retirement program under Section 382.209,
Health and Safety Code, as amended by this article, available to
owners of vehicles that did not meet the prior, more stringent
standard.
       SECTION 1.09.  (a)  The Texas Commission on Environmental
Quality shall seek to work in partnership with automobile
manufacturers and dealers in the state to increase public awareness
of and participation in the low-income vehicle repair assistance,
retrofit, and accelerated vehicle retirement program under Section
382.209, Health and Safety Code, as amended by this article.
       (b)  Funding for the partnership described by Subsection (a)
of this section shall be used exclusively for the purpose of
publicizing the program.
       SECTION 1.10.  (a)  The Texas Commission on Environmental
Quality shall seek to work in partnership with the steel industry
and automobile dismantlers to ensure that vehicles being replaced
are scrapped and that proof of scrapping is provided to the
commission.
       (b)  Not later than January 1, 2008, the Texas Commission on
Environmental Quality shall adopt procedures for certifying that
emissions control equipment and vehicle engines have been scrapped
and not resold into the marketplace and shall by rule define
"emissions control equipment" and "engine," as required by Section
382.213, Health and Safety Code, as amended by this article.
ARTICLE 2.  TEXAS EMISSIONS REDUCTION PLAN
       SECTION 2.01.  Subdivision (2), Section 386.001, Health and
Safety Code, is amended to read as follows:
             (2)  "Affected county" includes:
                   (A)  Bastrop County;
                   (B)  Bexar County;
                   (C)  Caldwell County;
                   (D)  Comal County;
                   (E)  Ellis County;
                   (F)  Gregg County;
                   (G)  Guadalupe County;
                   (H)  Harrison County;
                   (I)  Hays County;
                   (J)  Henderson County;
                   (K)  Hood County;
                   (L)  Hunt County;
                   (M)  Johnson County;
                   (N)  Kaufman County;
                   (O)  Nueces County;
                   (P)  Parker County;
                   (Q)  Rockwall County;
                   (R)  Rusk County;
                   (S)  San Patricio County;
                   (T)  Smith County;
                   (U)  Travis County;
                   (V)  Upshur County;
                   (W)  Victoria County;
                   (X)  Williamson County;
                   (Y)  Wilson County; [and]
                   (Z)  any other county designated as an affected
county by commission rule because of deteriorating air quality; and
                   (AA)  any other county in Texas designated as an
affected county by commission rule because the county contains all
or a portion of a major highway transportation corridor.
       SECTION 2.02.  Section 386.002, Health and Safety Code, is
amended to read as follows:
       Sec. 386.002.  EXPIRATION. This chapter expires August 31,
2013 [2010].
       SECTION 2.03.  Subchapter B, Chapter 386, Health and Safety
Code, is amended by adding Section 386.0511 to read as follows:
       Sec. 386.0511.  USE OF FUNDING FOR LOCAL INITIATIVE
PROJECTS.  (a)  Money that is made available to affected or
participating counties under Section 382.202(g) may be
appropriated only for programs administered in accordance with
Chapter 783, Government Code, to improve air quality.
       (b)  A program under this section must be implemented in
consultation with the commission and may include a program to:
             (1)  expand and enhance the AirCheck Texas Repair and
Replacement Assistance Program;
             (2)  develop and implement programs or systems that
remotely determine vehicle emissions and notify the vehicle's
operator;
             (3)  develop and implement projects to implement the
commission's smoking vehicle program;
             (4)  develop and implement projects for coordinating
with local law enforcement officials to reduce the use of
counterfeit state inspection stickers by providing local law
enforcement officials with funds to identify vehicles with
counterfeit state inspection stickers and to carry out appropriate
actions;
             (5)  develop and implement programs to enhance
transportation system improvements; or
             (6)  develop and implement new air control strategies
designed to assist local areas in complying with state and federal
air quality rules and regulations.
       (c)  Money that is made available for the implementation of a
program under Subsection (b) may not be expended for call center
management, application oversight, invoice analysis, education,
outreach, or advertising purposes.
       (d)  Fees collected under Section 386.251 may be used, in an
amount not to exceed $5 million per fiscal year, for projects
described by Subsection (b). The fees shall be made available only
to counties participating in the low-income vehicle repair
assistance, retrofit, and accelerated vehicle retirement programs
created under Section 382.209 and only on a matching basis, whereby
the commission provides money to a county in the same amount that
the county dedicates to a project authorized by Subsection (b).
       SECTION 2.04.  Subsection (d), Section 386.053, Health and
Safety Code, is amended to read as follows:
       (d)  The commission may propose revisions to the guidelines
and criteria adopted under this section as necessary to improve the
ability of the plan to achieve its goals. Revisions may include,
among other changes, adding additional pollutants, adding
stationary engines or engines used in stationary applications,
adding vehicles and equipment that use fuels other than diesel, or
adjusting eligible program categories, as appropriate, to ensure
that incentives established under this chapter achieve the maximum
possible emissions reductions. The commission shall make a
proposed revision available to the public before the 30th [45th]
day preceding the date of final adoption of the revision and shall
hold at least one public meeting to consider public comments on the
proposed revision before final adoption.
       SECTION 2.05.  Subsection (a), Section 386.106, 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
$15,000 [$13,000] per ton of oxides of nitrogen emissions reduced
in the nonattainment area or affected county 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 $15,000 [$13,000] per ton.
       SECTION 2.06.  Section 386.109, Health and Safety Code, is
amended to read as follows:
       Sec. 386.109.  ELIGIBLE INFRASTRUCTURE PROJECTS.  (a)  The
commission may consider for funding under Section 386.108:
             (1)  the purchase and installation at a site of
equipment that is designed primarily to dispense qualifying fuel,
other than standard gasoline or diesel, or the purchase of on-site
mobile fueling equipment;
             (2)  infrastructure projects, including auxiliary
power units, designed to dispense electricity to motor vehicles and
on-road and non-road diesels; and
             (3)  a project that involves a technology that allows a
vehicle to replace with electric power, while the vehicle is
parked, the power normally supplied by the vehicle's internal
combustion engine.
       (b)  The commission may provide funding to other state
agencies to implement projects under Subsection (a)(3), including
funding for the purchase and installation of idle reduction
technologies and facilities at rest areas and other public
facilities on major highway transportation routes located in areas
eligible for funding.  Funding under this subsection may include
reasonable operational costs determined by the commission to be
needed for the initial start-up and proper operation of the idle
reduction technologies. The state agency owning or operating the
idle reduction facility constructed with funds provided under this
subsection may, but is not required to, charge reasonable fees for
the provision of idle reduction services provided that those fees
are used to directly offset the cost of providing the services.
       SECTION 2.07.  Subsection (b), Section 386.251, Health and
Safety Code, is amended to read as follows:
       (b)  The fund is administered by the commission
[comptroller] for the benefit of the plan established under this
chapter. The fund is exempt from the application of Section
403.095, Government Code. Interest earned on the fund shall be
credited to the fund.
       SECTION 2.08.  Section 387.003, Health and Safety Code, is
amended by adding Subsections (c) through (f) to read as follows:
       (c)  The commission shall provide oversight as appropriate
for grants provided to the nonprofit organization under this
program.
       (d)  The nonprofit organization shall submit to the
commission for approval a budget for the disposition of funds
granted under this program.
       (e)  The commission shall limit the use of grants for
administrative costs incurred by the nonprofit organization to an
amount not to exceed 10 percent of funding provided to the nonprofit
organization under this program.
       (f)  The nonprofit organization that receives grants from
the commission under this program is subject to Chapters 551 and
552, Government Code.
       SECTION 2.09.  Section 387.005, Health and Safety Code, is
amended to read as follows:
       Sec. 387.005.  ELIGIBLE PROJECTS; PRIORITIES.  (a)  Grants
awarded under this chapter shall be directed toward a balanced mix
of:
             (1)  retrofit and add-on technologies and other
advanced technologies that [to] reduce emissions from the existing
stock of engines and vehicles targeted by the Texas emissions
reduction plan; and
             (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 reduce emissions from
other significant sources].
       (b)  The commission shall identify and evaluate and may
consider making grants for technology projects that would allow
qualifying fuels to be produced from energy resources in this
state. In considering projects under this subsection, the
commission shall give preference to projects involving otherwise
unusable energy resources in this state and producing qualifying
fuels at prices lower than otherwise available and low enough to
make the projects to be funded under the program economically
attractive to local businesses in the area for which the project is
proposed.
       (c)  In soliciting proposals under Section 387.004 and
determining how to allocate grant money available for projects
under this chapter, the commission shall give special consideration
to advanced technologies and retrofit or add-on projects that
provide multiple benefits by reducing emissions of particulates and
other air pollutants.
       (d)  A project that involves publicly or privately owned
vehicles or vessels is eligible for funding under this chapter if
the project meets all applicable criteria.
       (e)  [Studies authorized under Subsection (a)(3) shall be
consistent with air quality research priorities identified by the
commission and conducted in an independent and objective manner.
       [(f)]  If a commissioner is an employee or owner of an entity
that applies for a grant under this chapter, the commissioner,
before a vote on the grant, shall disclose the fact of the
commissioner's employment or ownership. The disclosure must be
entered into the minutes of the meeting. The commissioner may not
vote on or otherwise participate in the awarding of the grant. If
the commissioner does not comply with this subsection, the entity
is not eligible for the grant.
       SECTION 2.10.  Subsection (d), Section 151.0515, Tax Code,
is amended to read as follows:
       (d)  This section expires August 31, 2013 [September 30,
2010].
       SECTION 2.11.  Subsection (c), Section 152.0215, Tax Code,
is amended to read as follows:
       (c)  This section expires August 31, 2013 [September 30,
2010].
       SECTION 2.12.  Subsections (a), (b), and (b-1), Section
501.138, Transportation Code, are amended 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, 2010, $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
                   [(C)  on or after September 1, 2010, $15
regardless of the county in which the applicant resides].
       (b-1)  Fees collected under Subsection (b) to be sent to the
comptroller shall be deposited as follows:
             (1)  before September 1, 2008, to the credit of the
Texas emissions reduction plan fund; [and]
             (2)  on or after September 1, 2008, and before
September 1, 2010, to the credit of the Texas Mobility Fund, except
that $5 of each fee imposed under Subsection (a)(1) and deposited on
or after September 1, 2008, and before September 1, 2010, shall be
deposited to the credit of the Texas emissions reduction plan fund;
and
             (3)  on or after September 1, 2010, to the credit of the
Texas emissions reduction plan fund.
       SECTION 2.13.  Subsection (c), Section 502.1675,
Transportation Code, is amended to read as follows:
       (c)  This section expires August 31, 2013 [2010].
       SECTION 2.14.  Subsection (c), Section 548.5055,
Transportation Code, is amended to read as follows:
       (c)  This section expires August 31, 2013 [2010].
       SECTION 2.15.  Section 12, Chapter 1125, Acts of the 79th
Legislature, Regular Session, 2005, amending Subsection (a),
Section 386.252, Health and Safety Code, is repealed.
ARTICLE 3. ENERGY EFFICIENCY
       SECTION 3.01.  Section 388.003, Health and Safety Code, is
amended by adding Subsection (b-1) to read as follows:
       (b-1)  If the State Energy Conservation Office determines,
based on a recommendation from the laboratory, that other, more
stringent energy efficiency standards of the International
Residential Code or the International Energy Conservation Code
exist than the ones adopted under Subsection (a) or (b), the office
shall adopt the more stringent standards and substitute them for
the standards described by Subsection (a) or (b).
       SECTION 3.02.  Section 388.005, Health and Safety Code, is
amended to read as follows:
       Sec. 388.005.  ENERGY EFFICIENCY PROGRAMS IN CERTAIN
POLITICAL SUBDIVISIONS. (a)  In this section:
             (1)  "Institution of higher education" includes an
institution of higher education defined by Section 61.003,
Education Code, and a private institution of higher education that
receives funding from the state.
             (2)  "Political[, "political] subdivision" means:
                   (A) [(1)]  an affected county; [or]
                   (B)  a school district; or
                   (C) [(2)]  any political subdivision in a
nonattainment area or in an affected county other than[:
                   [(A)a school district; or
                   [(B)]  a district as defined by Section 36.001 or
49.001, Water Code, that had a total annual electricity expense of
less than $200,000 in the previous fiscal year of the district.
             (3)  "State agency" means a department, commission,
board, office, council, or other agency in the executive branch of
government that is created by the constitution or a statute of this
state and has authority not limited to a geographical portion of the
state.
       (b)  Each political subdivision, institution of higher
education, or state agency shall implement all energy efficiency
measures that meet the standards established for a contract for
energy conservation measures under Section 302.004(b), Local
Government Code, in order to reduce electricity consumption by the
existing facilities of the entity [the political subdivision].
       (c)  Each political subdivision, institution of higher
education, or state agency shall establish a goal to reduce the
electric consumption by the entity [political subdivision] by five
percent each year for six [five] years, beginning September 1, 2007
[January 1, 2002].
       (d)  A political subdivision, institution of higher
education, or state agency that does not attain the goals under
Subsection (c) must include in the report required by Subsection
(e) justification that the entity [political subdivision] has
already implemented all available measures.
       (e)  A political subdivision, institution of higher
education, or state agency annually shall report to the State
Energy Conservation Office, on forms provided by that office,
regarding the entity's [political subdivision's] efforts and
progress under this section. The State Energy Conservation Office
shall provide assistance and information to the entity [political
subdivisions] to help it [the political subdivisions] meet the
goals set under this section.
       SECTION 3.03.  Subtitle C, Title 5, Health and Safety Code,
is amended by adding Chapter 392 to read as follows:
CHAPTER 392.  APPLIANCE EFFICIENCY STANDARDS
SUBCHAPTER A.  GENERAL PROVISIONS
       Sec. 392.001.  DEFINITIONS. In this chapter:
             (1)  "Ballast" means a device used with an electric
discharge lamp to obtain necessary circuit conditions involving
voltage, current, and waveform, for starting and operating the
lamp.
             (2)  "Bottle-type water dispenser" means a water
dispenser that uses a bottle or reservoir as the source of potable
water.
             (3)  "Commercial hot food holding cabinet" means a
heated, fully enclosed compartment with one or more solid or glass
doors that is designed to maintain the temperature of hot food that
has been cooked in a separate appliance.
             (4)  "Compact audio product," also known as a mini,
mid, micro, or shelf audio system, means an integrated audio system
encased in a single housing that includes an amplifier and radio
tuner with attached or separable speakers that can reproduce audio
from magnetic tape, compact disc, DVD, or flash memory.
             (5)  "Digital versatile disc" or "DVD" means a
laser-encoded plastic medium capable of storing a large amount of
digital audio, video, or computer data.
             (6)  "DVD player" means a digital versatile disc player
that:
                   (A)  is a commercially available electronic
product encased in a single housing that includes an integral power
supply; and
                   (B)  is designed to decode digitized video signals
on a DVD.
             (7)  "DVD recorder" means a digital versatile disc
recorder that:
                   (A)  is a commercially available electronic
product encased in a single housing that includes an integral power
supply; and
                   (B)  is designed for the production or recording
of digitized video signals on a DVD.
             (8)  "Energy Star Program" means the United States
Environmental Protection Agency's Energy Star Program.
             (9)  "High-intensity discharge lamp" means a lamp in
which:
                   (A)  light is produced by the passage of an
electric current through a vapor or gas;
                   (B)  the light-producing arc is stabilized by bulb
wall temperature; and
                   (C)  the arc tube has a bulb wall loading of
greater than three watts per square centimeter.
             (10)  "Metal halide lamp" means a high-intensity
discharge lamp in which the major portion of the light is produced
by radiation of metal halides and their products of dissociation.
             (11)  "Metal halide lamp fixture" means a fixture
designed to be operated with a metal halide lamp and a ballast for a
metal halide lamp.
             (12)  "Portable electric spa" means a factory-built
electric spa or hot tub, supplied with equipment for heating and
circulating water.
             (13)  "Residential pool pump" means a pump used to
circulate and filter residential swimming pool water to maintain
the water's clarity and sanitation.
             (14)  "Single-voltage external AC to DC power supply"
means a device that:
                   (A)  is designed to convert line voltage
alternating current input into lower voltage direct current output;
                   (B)  is able to convert to only one direct current
output voltage at a time;
                   (C)  is intended to be used with a separate
end-use product that constitutes the primary power load;
                   (D)  is contained in a physical enclosure separate
from the end-use product;
                   (E)  is designed to be connected to the end-use
product by a removable or hard-wired electrical connection, cable,
cord, or other wiring;
                   (F)  has a nameplate output power less than or
equal to 250 watts;
                   (G)  does not have a fixed or removable battery or
battery pack that physically attaches directly to the power supply
converter unit; and
                   (H)  does not have:
                         (i)  a battery chemistry or type selector
switch and indicator light; or
                         (ii)  a battery chemistry or type selector
switch and a state of charge meter.
             (15)  "State-regulated incandescent reflector lamp"
means a lamp that:
                   (A)  is not colored or designed for rough or
vibration service applications;
                   (B)  has an inner reflective coating on the outer
bulb to direct the light;
                   (C)  has a standard E26 (Edison 26 millimeter)
medium screw base;
                   (D)  has a rated voltage or voltage range at least
partially within the range of 115 to 130 volts; and
                   (E)  is one of the following types:
                         (i)  a blown parabolic aluminized reflector
(BPAR) lamp, bulged reflector (BR) lamp, elliptical reflector (ER)
lamp, or a lamp with a similar bulb shape with a diameter equal to or
greater than 2.25 inches; or
                         (ii)  a reflector (R) lamp, a parabolic
aluminized reflector (PAR) lamp, or a lamp with a similar bulb shape
with a diameter of 2.25 to 2.75 inches.
             (16)  "Walk-in freezer" means a refrigerated space a
person can walk into that:
                   (A)  has a total frozen storage area of less than
3,000 square feet;
                   (B)  operates at a temperature at or below 32
degrees Fahrenheit; and
                   (C)  is connected to a self-contained or remote
condensing unit.
             (17)  "Walk-in refrigerator" means a refrigerated
space a person can walk into that:
                   (A)  has a total chilled storage area of less than
3,000 square feet;
                   (B)  operates at a chilled temperature above 32
degrees Fahrenheit; and
                   (C)  is connected to a self-contained or remote
condensing unit.
             (18)  "Water dispenser" means a factory-made assembly
that mechanically cools and heats potable water and that dispenses
the cooled or heated water by integral or remote means.
       Sec. 392.002.  APPLICABILITY; EXEMPTIONS.  (a)  This
chapter applies to the following new products sold, offered for
sale, or installed in this state:
             (1)  bottle-type water dispensers;
             (2)  commercial hot food holding cabinets;
             (3)  compact audio products;
             (4)  DVD players and recorders;
             (5)  metal halide lamp fixtures;
             (6)  portable electric spas;
             (7)  residential pool pumps;
             (8)  single-voltage external AC to DC power supplies;
             (9)  state-regulated incandescent reflector lamps;
             (10)  walk-in refrigerators and freezers; and
             (11)  any other products that are designated by the
comptroller in accordance with Section 392.102.
       (b)  This chapter does not apply to:
             (1)  a new product manufactured in this state and sold
outside the state;
             (2)  a new product manufactured outside this state and
sold at wholesale inside the state for final retail sale and
installation outside the state;
             (3)  a product installed in a mobile manufactured home
at the time of the home's construction;
             (4)  a product designed expressly for installation and
use in a recreational vehicle;
             (5)  a commercial heated glass merchandizing cabinet,
drawer warmer, or cook-and-hold appliance for hot food;
             (6)  a compact audio product that:
                   (A)  can be independently powered by internal
batteries;
                   (B)  has a powered external satellite antenna; or
                   (C)  can provide a video output signal;
             (7)  a DVD recorder that has an electronic programming
guide function that provides an interactive, onscreen menu of
television listings and downloads program information from the
vertical blanking interval of a regular television signal;
             (8)  a refrigerated warehouse;
             (9)  a chilled-space product designed and marketed
exclusively for medical, scientific, or research purposes;
             (10)  a single-voltage external AC to DC power supply
that requires United States Food and Drug Administration listing
and approval as a medical device; or
             (11)  an incandescent reflector lamp that is rated at:
                   (A)  50 watts or less with a diameter of 30/8 or
40/8 inches and is one of the following types: BR30, ER30, BR40, and
ER40;
                   (B)  65 watts with a diameter of 30/8 or 40/8
inches and is one of the following types: BR30, BR40, and ER40; or
                   (C)  45 watts or less with a diameter of 20/8
inches (R20 lamps).
[Sections 392.003-392.050 reserved for expansion]
SUBCHAPTER B.  EFFICIENCY STANDARDS
       Sec. 392.051.  MINIMUM EFFICIENCY STANDARDS FOR CERTAIN
APPLIANCES.  Not later than September 1, 2008, the comptroller, in
consultation with the State Energy Conservation Office, shall adopt
rules establishing minimum efficiency standards for each type of
new product described by Section 392.002(a).
       Sec. 392.052.  NEW OR INCREASED EFFICIENCY STANDARDS.  
(a)  The comptroller may adopt rules to establish increased
efficiency standards for a product listed in Section 392.002(a) or
to establish standards for a product not listed in that subsection.
       (b)  In considering new or increased standards, the
comptroller, in consultation with the State Energy Conservation
Office, shall prescribe new or increased efficiency standards if
the comptroller determines that the standards would:
             (1)  serve to promote energy conservation in this
state; and
             (2)  be cost-effective for consumers who purchase and
use the new product.
       Sec. 392.053.  EFFECTIVE DATE OF STANDARDS.  A standard
established under this subchapter takes effect on the first
anniversary of the date the rule establishing the standard is
adopted.
       Sec. 392.054.  BOTTLE-TYPE WATER DISPENSERS.  A bottle-type
water dispenser designed for dispensing both hot and cold water may
not have standby energy consumption greater than 1.2 kilowatt-hours
per day, as measured in accordance with the test criteria contained
in version 1 of the "Energy Star Program Requirements for Bottled
Water Coolers," except that Section D, "Timer Usage," of those test
criteria may not be used to test units with an integral, automatic
timer.
       Sec. 392.055.  COMMERCIAL HOT FOOD HOLDING CABINETS. (a)  A
commercial hot food holding cabinet must have a maximum idle energy
rate of not greater than 40 watts per cubic foot of interior volume,
as determined by the "idle energy rate-dry test" in ASTM F2140-01,
"Standard Test Method for Performance of Hot Food Holding
Cabinets," copyright 2007 ASTM International.
       (b)  Interior volume must be measured in accordance with the
method shown in the "Energy Star Program Requirements for
Commercial Hot Food Holding Cabinets" as in effect on August 15,
2003.
       Sec. 392.056.  COMPACT AUDIO PRODUCTS. A compact audio
product may not use more than two watts in standby-passive mode for
a product without a permanently illuminated clock display and four
watts in standby-passive mode for a product with a permanently
illuminated clock display, as measured in accordance with
International Electrotechnical Commission (IEC) test method
62087:2002-2003(E), "Methods of measurement for the power
consumption of audio, video, and related equipment."
       Sec. 392.057.  DVD PLAYERS OR RECORDERS. A DVD player or
recorder may not use more than three watts in standby-passive mode,
as measured in accordance with International Electrotechnical
Commission (IEC) test method 62087:2002-2003(E), "Methods of
measurement for the power consumption of audio, video, and related
equipment."
       Sec. 392.058.  METAL HALIDE LAMP FIXTURES. A metal halide
lamp fixture designed to be operated with a lamp that has a wattage
rating of 150 to 500 watts may not contain a ballast to operate the
lamp known as a "probe-start metal halide ballast" that:
             (1)  does not contain an igniter; and
             (2)  starts the lamp by using a third starting
electrode probe in the arc tube.
       Sec. 392.059.  PORTABLE ELECTRIC SPAS. A portable electric
spa may not have a standby power greater than 5(V2/3) watts where V
equals the total volume in gallons. Standby power must be measured
in accordance with the test method for portable electric spas
contained in Section 1604, Title 20, California Code of
Regulations, as of December 2006.
       Sec. 392.060.  RESIDENTIAL POOL PUMP MOTORS.  (a)  A
residential pool pump motor may not be a split-phase or capacitor
start-induction run type motor.
       (b)  A residential pool pump motor with a capacity of one
horsepower or more must have the capability of operating at more
than one speed with a low speed having a rotation rate that is not
more than one-half of the motor's maximum rotation rate.
       (c)  Pool pump motor controls must have the capability of
operating the pool pump at more than one speed. The pump's default
circulation speed must be the lowest speed, and the pump's high
speed override capability must be governed by a control device that
allows the higher circulation speed to operate only for a temporary
period not to exceed one normal cycle.
       Sec. 392.061.  SINGLE-VOLTAGE EXTERNAL AC TO DC POWER
SUPPLIES. (a)  A single-voltage external AC to DC power supply
must meet the minimum energy efficiency and maximum energy
consumption requirements provided by the following table:
Nameplate Output Power        Minimum Energy
  Efficiency in Active Mode
0 to < 1 watt      0.49 * Nameplate Output
=1 watt and =49 watts      0.09*Ln(Nameplate Output Power) + 0.49
> 49 watts      0.84
       Maximum Energy
  Consumption in No-Load Mode
0 to < 10 watts      0.5 watts
= 10 watts and =250 watts      0.75 watts
       Where Ln (Nameplate Output) = Natural Logarithm of the
nameplate output expressed in watts
       (b)  These standards apply to single-voltage external AC to
DC power supplies that are sold individually and to those that are
sold as a component of or in conjunction with another product.
       (c)  For purposes of this section, the efficiency of a
single-voltage external AC to DC power supply must be measured in
accordance with the test methodology specified by the Energy Star
Program "Test Method for Calculating the Energy Efficiency of
Single-Voltage External AC-DC and AC-AC Power Supplies (August 11,
2004)," except that tests shall be conducted at 115 volts only.
       Sec. 392.062.  STATE-REGULATED INCANDESCENT REFLECTOR
LAMPS.  A state-regulated incandescent reflector lamp must meet the
minimum average lamp efficacy requirements for federally regulated
incandescent reflector lamps contained in 42 U.S.C. Section
6295(i)(1)(A), as in effect on January 1, 2007.
       Sec. 392.063.  WALK-IN REFRIGERATORS AND FREEZERS. (a)  A
walk-in refrigerator or freezer must have:
             (1)  automatic door closers that firmly close all
reach-in doors and that firmly close walk-in doors not wider than 3
feet 9 inches and not higher than 6 feet 11 inches that have been
closed to within one inch of full closure;
             (2)  wall, ceiling, and door insulation resistance
values of at least R-28 for refrigerators and R-32 for freezers,
except for glazed portions of doors and structural members;
             (3)  a floor insulation resistance value of at least
R-28 for freezers;
             (4)  for a single-phase evaporator fan motor rated at
less than one horsepower and at less than 460 volts, an
electronically commutated motor;
             (5)  for a condenser fan motor rated at less than one
horsepower:
                   (A)  an electronically commutated motor;
                   (B)  a permanent split capacitor-type motor; or
                   (C)  a polyphase motor of one-half horsepower or
more; and
             (6)  except as provided by Subsection (d), for all
interior lights, light sources with an efficacy of 40 lumens per
watt or more, including ballast losses.
       (b)  In addition to the requirements under Subsection (a), a
walk-in refrigerator or freezer with transparent reach-in doors
must have the following:
             (1)  transparent reach-in doors or windows in walk-in
doors for a walk-in freezer of triple-pane glass with
heat-reflective treated glass or gas fill;
             (2)  transparent reach-in doors or windows in walk-in
doors for a walk-in refrigerator of double-pane or triple-pane
glass with heat-reflective treated glass and gas fill;
             (3)  for an appliance that has an anti-sweat heater
without anti-sweat heat controls, a total door rail, glass, and
frame heater power draw of not more than 7.1 watts per square foot
of door opening for a freezer and 3.0 watts per square foot of door
opening for a refrigerator; and
             (4)  for an appliance that has an anti-sweat heater
with anti-sweat heat controls and the total door rail, glass, and
frame heater power draw is more than 7.1 watts per square foot of
door opening for a freezer or 3.0 watts per square foot of door
opening for a refrigerator, anti-sweat heat controls that reduce
the energy use of the anti-sweat heater in an amount corresponding
to the relative humidity in the air outside the door or to the
condensation on the inner glass pane.
       (c)  The comptroller may delay implementation of Subsection
(a)(4) on a determination that the specified motors are available
only from one manufacturer or in quantities insufficient to serve
the needs of the walk-in industry for evaporator-fan applications.
       (d)  A walk-in refrigerator or freezer may have interior
light sources with an efficacy of less than 40 lumens per watt,
including ballast losses, if the lights are used in conjunction
with a timer or device that turns the lights off whenever the
refrigerator or freezer is unoccupied for a period not to exceed 15
minutes.
[Sections 392.064-392.100 reserved for expansion]
SUBCHAPTER C.  IMPLEMENTATION AND MODIFICATION OF EFFICIENCY
STANDARDS
       Sec. 392.101.  PRODUCT COMPLIANCE.  (a)  A new product
described by Section 392.002(a) may not be sold or offered for sale
in this state unless the efficiency of the new product meets or
exceeds the applicable efficiency standards prescribed by the rules
adopted under Subchapter B.
       (b)  On or after the first anniversary of the date the sale or
offering for sale of a new product becomes subject to an efficiency
standard adopted under this chapter, that product may not be
installed for compensation in this state unless the efficiency of
the product meets or exceeds the applicable efficiency standards
prescribed by the rules adopted under Subchapter B.
       Sec. 392.102.  APPLICATION FOR WAIVER. For purposes of this
chapter, the comptroller may apply for a waiver of federal
preemption in accordance with federal procedures under 42 U.S.C.
Section 6297(d) to authorize state efficiency standards for a
product regulated by the federal government.
[Sections 392.103-392.150 reserved for expansion]
SUBCHAPTER D. TESTING, CERTIFICATION, LABELING, AND ENFORCEMENT
       Sec. 392.151.  PRODUCT TESTING.  (a)  The manufacturer of a
new product subject to an efficiency standard adopted under this
chapter shall test samples of the product in accordance with the
test procedures adopted under this chapter.
       (b)  The comptroller, in consultation with the State Energy
Conservation Office, by rule shall adopt test procedures for
determining a product's energy efficiency if Subchapter B does not
provide for the procedures. The comptroller shall adopt test
methods approved by the United States Department of Energy or, in
the absence of those test methods, other appropriate nationally
recognized test methods.
       (c)  The comptroller may adopt revised test procedures when
new versions of test procedures become available.
       Sec. 392.152.  PRODUCT CERTIFICATION. (a)  Except as
provided by Subsection (c), the manufacturer of a new product
subject to an efficiency standard adopted under this chapter shall
certify to the comptroller that the product is in compliance with
that standard according to test results.
       (b)  The comptroller shall adopt rules governing the
certification of products under this section and shall coordinate
certification by this state with the certification programs of
other states and federal agencies with similar standards.
       (c)  Subsection (a) does not apply to a manufacturer of
single-voltage external AC to DC power supplies, walk-in
refrigerators, or walk-in freezers.
       Sec. 392.153.  PRODUCT LABELING.  (a)  The manufacturer of a
new product subject to an efficiency standard adopted under this
chapter shall identify each product offered for sale or
installation in this state as being in compliance with this chapter
by means of a mark, label, or tag on the product and packaging at the
time of sale or installation.
       (b)  The comptroller shall adopt rules governing the
identification of products and packaging under this section. The
rules must to the greatest practical extent be coordinated with the
labeling programs of other states and federal agencies with
equivalent efficiency standards.  The comptroller shall allow the
use of existing marks, labels, or tags that connote compliance with
the efficiency requirements of this chapter.
       Sec. 392.154.  COMPTROLLER TESTING FOR EFFICIENCY STANDARDS
COMPLIANCE. The comptroller may test products subject to an
efficiency standard adopted under this chapter for compliance with
the applicable efficiency standards. If a product tested is found
not to be in compliance with the standards, the comptroller shall:
             (1)  impose against the manufacturer of the product an
assessment in an amount sufficient to recover the costs of
purchasing and testing the product; and
             (2)  make information available to the public on any
product found to be not in compliance with the standards.
       Sec. 392.155.  INSPECTIONS.  The comptroller may have
periodic inspections conducted of a distributor or retailer of new
products covered by Section 392.002 subject to an efficiency
standard adopted under this chapter to determine compliance with
this chapter.  The inspections must be conducted at reasonable and
convenient hours.  Notice must be given before an inspection may be
conducted.
       Sec. 392.156.  COMPLAINTS.  The comptroller shall
investigate a complaint received concerning a violation of this
chapter and shall report the results of the investigation to the
attorney general.
       Sec. 392.157.  ATTORNEY GENERAL ENFORCEMENT. The attorney
general may institute proceedings to enforce this chapter.
       Sec. 392.158.  VIOLATIONS AND PENALTIES.  (a)  The
comptroller shall issue a warning to a person for the person's first
violation of this chapter.
       (b)  A person's second and subsequent violations are subject
to a civil penalty of not more than $250.
       (c)  Each violation constitutes a separate violation, and
each day that a violation continues constitutes a separate
violation.
       (d)  A penalty assessed under this section is in addition to
costs assessed under Section 392.154.
       Sec. 392.159.  RULES FOR IMPLEMENTATION AND ENFORCEMENT.
The comptroller may adopt additional rules necessary to ensure the
proper implementation and enforcement of this chapter.
       SECTION 3.04.  (a)  The efficiency standards prescribed by
rules adopted under Subchapter B, Chapter 392, Health and Safety
Code, as added by this Act, apply only to the sale or offer of sale
of a new product to which that chapter applies that occurs on or
after January 1, 2009.
       (b)  Notwithstanding Subsection (a) of this section:
             (1)  a new residential pool pump that does not meet the
efficiency standards contained in Subsections (b) and (c), Section
392.060, Health and Safety Code, as added by this Act, may be sold
in this state through December 31, 2009; and
             (2)  a new single-voltage external AC to DC power
supply made available by a manufacturer directly to a consumer or to
a service or repair facility after and separate from the original
sale of a product requiring the power supply as a service part or
spare part is not required to meet the standards of Section 392.061,
Health and Safety Code, as added by this Act, until January 1, 2013.
ARTICLE 4. EFFECTIVE DATE
       SECTION 4.01.  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, 2007.