By: Averitt, Ellis  S.B. No. 12
         (In the Senate - Filed February 15, 2007; February 21, 2007,
  read first time and referred to Committee on Natural Resources;
  March 19, 2007, reported adversely, with favorable Committee
  Substitute by the following vote:  Yeas 10, Nays 0; March 19, 2007,
  sent to printer.)
 
  COMMITTEE SUBSTITUTE FOR S.B. No. 12 By:  Averitt
 
 
A BILL TO BE ENTITLED
 
AN ACT
 
  relating to programs for the enhancement of air quality, including
  energy efficiency standards in state purchasing; 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
  382.210(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 (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.  The county shall ensure that funds are transferred to
  a participating dealer under this section not later than one
  business day after the date the sale of a replacement vehicle is
  completed.
         (e)  In rules adopted under this section, the commission
  shall require a mandatory procedure that:
               (1)  produces a document confirming that a person is
  eligible to purchase a new vehicle in the manner provided by this
  chapter, and the amount of money available to the participating
  purchaser;
               (2)  provides that a person who seeks to purchase a new
  vehicle in the manner provided by this chapter is required to have
  the document required by Subdivision (1) before the person enters
  into negotiation for a new vehicle in the manner provided by this
  chapter; and
               (3)  provides that a participating dealer who relies on
  a document issued as required by Subdivision (1) has no duty to
  otherwise confirm the eligibility of a person to purchase a new
  vehicle in the manner provided by this chapter.
         (f)  In this section, "total cost" means the total amount of
  money paid or to be paid for the purchase of a motor vehicle as set
  forth as "sales price" in the form entitled "Application for Texas
  Certificate of Title" promulgated by the Texas Department of
  Transportation.  In a transaction that does not involve the use of
  that form, the term means an amount of money that is equivalent, or
  substantially equivalent, to the amount that would appear as "sales
  price" on the Application for Texas Certificate of Title if that
  form were involved.
         SECTION 1.04.  Section 382.213, Health and Safety Code, is
  amended by amending Subsection (a) and adding Subsections (d)
  through (i) 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. Subject to the
  provisions of Subsection (i), 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."
         (i)  Notwithstanding any other provision of this section,
  and except as provided by this subsection, a dealer is in compliance
  with this section and incurs no civil or criminal liability as a
  result of the disposal of a replaced vehicle if the dealer produces
  proof of transfer of the replaced vehicle by the dealer to a
  dismantler.  The defense provided by this subsection is not
  available to a dealer who knowingly and intentionally conspires
  with another person to violate this section.
         SECTION 1.05.  Subchapter G, Chapter 382, Health and Safety
  Code, is amended by adding Section 382.219 to read as follows:
         Sec. 382.219.  PURCHASE OF REPLACEMENT VEHICLE; AUTOMOBILE
  DEALERSHIPS. (a)  An amount described by Section 382.210(a)(2) may
  be used as a down payment toward the purchase of a replacement
  vehicle.
         (b)  An automobile dealer that participates in the
  procedures and programs offered by this chapter must be located in
  the state.  No dealer is required to participate in the procedures
  and programs provided by this chapter.
         SECTION 1.06.  Subchapter G, Chapter 382, Health and Safety
  Code, is amended by adding Section 382.220 to read as follows:
         Sec. 382.220.  USE OF FUNDING FOR LOCAL INITIATIVE PROJECTS.  
  (a)  Money that is made available to affected or participating
  counties under Sections 382.202(g) and 382.302 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 Sections 382.202 and 382.302 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 1.07.  Subsection (b), Section 152.002, Tax Code, is
  amended to read as follows:
         (b)  "Total consideration" does not include:
               (1)  a cash discount;
               (2)  a full cash or credit refund to a customer of the
  sales price of a motor vehicle returned to the seller;
               (3)  the amount charged for labor or service rendered
  in installing, applying, remodeling, or repairing the motor vehicle
  sold;
               (4)  a financing, carrying, or service charge or
  interest on credit extended on a motor vehicle sold under a
  conditional sale or other deferred payment contract;
               (5)  the value of a motor vehicle taken by a seller as
  all or a part of the consideration for sale of another motor
  vehicle, including any cash payment to the buyer under Section
  348.404, Finance Code;
               (6)  a charge for transportation of the motor vehicle
  after a sale; [or]
               (7)  motor vehicle inventory tax; or
               (8)  an amount made available to the customer under
  Subchapter G, Chapter 382, Health and Safety Code.
         SECTION 1.08.  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 1.09.  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 1.10.  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 1.11.  (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 1.12.  (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.  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 2.02.  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 2.03.  Subsection (c), Section 386.104, 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 or affected county of this state. The commission may also
  allow vehicle travel on highways and roadways, or portions of a
  highway or roadway, designated by the commission and located
  outside of a nonattainment area or affected county to count towards
  the percentage of use requirement in this subsection. 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 or affected county 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 2.04.  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 2.05.  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 lease, purchase, or 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 leasing, 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.
         (c)  The commission shall encourage the use of 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 at the state's ports and border
  crossings in affected areas.
         SECTION 2.06.  Section 386.117, Health and Safety Code, is
  amended by adding Subsection (e) to read as follows:
         (e)  The commission or its designee shall notify potential
  applicants of any changes to the rebate grant process by its email
  list service and posting those changes on its Internet website at
  least 30 days before the changes become effective.
         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 Subsections (b-1) and (b-2) to read as follows:
         (b-1)  If the State Energy Conservation Office determines,
  based on a written recommendation from the laboratory, that more
  recent versions of the energy efficiency standards of the
  International Residential Code or the International Energy
  Conservation Code exist that improve residential or commercial
  energy efficiency and air quality substantially more than the
  versions adopted under Subsection (a) or (b), the office shall by
  rule adopt the more stringent versions and substitute them for the
  standards described by Subsection (a) or (b). The rule shall
  establish an effective date for the new standards but not earlier
  than one year after the date of adoption. The laboratory shall make
  its recommendations not later than six months after the date of
  publication of the most recent full edition of the International
  Residential Code and International Energy Conservation Code.
         (b-2)  The State Energy Conservation Office shall by rule
  establish a procedure for persons who have an interest in the
  adoption of energy efficiency standards under Subsection (b-1),
  including commercial and residential builders, local government
  authorities, and environmental groups, to have an opportunity to
  comment on the standards under consideration and to have the
  commentary considered by the laboratory in developing its
  recommendations.
         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.  Subsection (d), Section 2155.068, Government
  Code, is amended to read as follows:
         (d)  As part of the standards and specifications program, the
  commission shall review contracts for opportunities to recycle
  waste produced at state buildings, shall develop and update a list
  of equipment and appliances that meet the energy efficiency
  standards of Section 2158.301, and shall assist state agencies in
  selecting products under that section as appropriate.
         SECTION 3.04.  Chapter 2158, Government Code, is amended by
  adding Subchapter F to read as follows:
  SUBCHAPTER F. ENERGY AND EFFICIENCY STANDARDS
  FOR EQUIPMENT AND APPLIANCES
         Sec. 2158.301.  ENERGY CONSERVATION. If available and cost
  effective, the commission or another state agency shall purchase
  equipment and appliances for state use that meet or exceed:
               (1)  the federal energy conservation standards under
  the Energy Policy and Conservation Act (42 U.S.C. Section 6295) or
  any federal regulations adopted under the federal act; or
               (2)  the federal Energy Star standards designated by
  the United States Environmental Protection Agency and the United
  States Department of Energy.
         SECTION 3.05.  The State Energy Conservation Office shall
  adopt rules implementing a procedure for stakeholder participation
  as required under Subsection (b-2), Section 388.003, Health and
  Safety Code, as added by this article, as soon as practicable after
  the effective date of this Act.
         SECTION 3.06.  The energy conservation standards for
  equipment and appliances under Section 2158.301, Government Code,
  as added by this article, apply to a purchase by a state agency on or
  after the effective date of this Act.
         (b)  The Texas Building and Procurement Commission shall
  develop a list of equipment and appliances under Section 2155.068,
  Government Code, as amended by this article, as soon as practicable
  after the effective date of this Act.
  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.
 
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