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A BILL TO BE ENTITLED
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AN ACT
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relating to biodiesel and cellulosic ethanol content requirements |
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for certain fuels. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Title 2, Agriculture Code, is amended by adding |
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Chapter 16A to read as follows: |
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CHAPTER 16A. BIODIESEL AND CELLULOSIC ETHANOL CONTENT REQUIREMENTS |
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FOR FUELS |
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SUBCHAPTER A. GENERAL PROVISIONS |
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Sec. 16A.001. DEFINITIONS. In this subchapter: |
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(1) "ASTM" means the American Society for Testing and |
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Materials. |
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(2) "Biodiesel" means a monoalkyl ester that: |
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(A) is derived from vegetable oils, rendered |
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animal fats, algae, or renewable lipids or a combination of those |
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ingredients; and |
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(B) meets the established ASTM specification for |
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biodiesel. |
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(3) "Cellulosic ethanol" means ethanol: |
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(A) derived from any lingocellulosic or |
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hemicellulosic matter that is available on a renewable or recurring |
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basis including: |
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(i) dedicated energy crops and trees; |
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(ii) wood and wood residues; |
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(iii) plants; |
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(iv) grasses; |
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(v) agricultural residues; |
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(vi) fibers; |
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(vii) animal wastes and other waste |
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materials; and |
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(viii) municipal solid waste; or |
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(B) produced in facilities where animal wastes or |
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other waste materials are digested or otherwise used to displace |
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not less than 90 percent of the fossil fuel normally used in the |
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production of ethanol. |
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(4) "Renewable diesel" means a nonester diesel fuel or |
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fuel blending component derived from nonpetroleum resources that: |
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(A) is used to replace or reduce the quantity of |
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fossil fuels present in fuels sold to consumers; |
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(B) is registered under 40 C.F.R. Part 79 for |
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motor vehicle fuels or fuel additives; |
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(C) meets an established ASTM specification; |
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(D) is compatible for use in engines and |
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equipment designed to run on conventional petroleum diesel fuels; |
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and |
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(E) is derived from renewable content at the |
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percentages required by this chapter. |
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[Sections 16A.002-16A.050 reserved for expansion] |
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SUBCHAPTER B. FUEL CONTENT REQUIREMENTS |
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Sec. 16A.051. BIODIESEL CONTENT IN DIESEL FUEL SOLD FOR |
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ON-ROAD USE. (a) Subject to Subsections (b) and (c) and Section |
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16A.053, diesel fuel sold or offered for sale to ultimate consumers |
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in this state for use in on-road compression ignition engines must |
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contain not less than: |
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(1) two percent biodiesel by volume, beginning on the |
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first anniversary of the date, as determined by the department, |
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that in-state production of biodiesel, on an annualized basis, |
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reaches 80 million gallons and is sustained for three consecutive |
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months; |
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(2) five percent biodiesel by volume, beginning on the |
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first anniversary of the date, as determined by the department, |
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that in-state production of biodiesel, on an annualized basis, |
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reaches 200 million gallons and is sustained for three consecutive |
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months; |
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(3) 10 percent biodiesel by volume, beginning on the |
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first anniversary of the date, as determined by the department, |
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that in-state production of biodiesel, on an annualized basis, |
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reaches 400 million gallons and is sustained for three consecutive |
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months; and |
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(4) 20 percent biodiesel by volume, beginning on the |
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first anniversary of the date, as determined by the department, |
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that in-state production of biodiesel, on an annualized basis, |
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reaches 800 million gallons and is sustained for three consecutive |
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months. |
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(b) The biodiesel volume requirements provided by |
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Subsection (a) take effect only if the department, in cooperation |
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with the Texas Department of Transportation and the Texas |
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Commission on Environmental Quality, makes a determination that |
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manufacturers of diesel-fueled motor vehicles sold in this state |
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have publicly stated that they will not void or withdraw vehicle |
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engine warranties due to the use of the biodiesel blends as |
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specified by Subsection (a). The determination must be published |
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in the Texas Register and transmitted to the governor, the |
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lieutenant governor, the speaker of the house of representatives, |
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and each member of the standing committees of the house of |
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representatives and the senate with primary jurisdiction over |
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environmental matters. |
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(c) Renewable diesel produced in this state may be used in |
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place of biodiesel to meet not more than 25 percent of the biodiesel |
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volume requirements provided by Subsection (a). |
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(d) This section does not apply to aviation fuel, home |
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heating fuel, or to the extent this section conflicts with other |
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law. |
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Sec. 16A.052. CELLULOSIC ETHANOL CONTENT IN GASOLINE. |
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(a) Subject to Subsections (b) and (c) and Section 16A.053, |
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gasoline sold or offered for sale to ultimate consumers in this |
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state must contain not less than: |
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(1) two percent cellulosic ethanol by volume, |
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beginning on the first anniversary of the date, as determined by the |
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department, that in-state production of cellulosic ethanol, on an |
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annualized basis, reaches 240 million gallons and is sustained for |
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three consecutive months; |
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(2) five percent cellulosic ethanol by volume, |
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beginning on the first anniversary of the date, as determined by the |
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department, that in-state production of cellulosic ethanol, on an |
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annualized basis, reaches 600 million gallons and is sustained for |
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three consecutive months; and |
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(3) 10 percent cellulosic ethanol by volume, beginning |
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on the first anniversary of the date, as determined by the |
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department, that in-state production of cellulosic ethanol, on an |
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annualized basis, reaches 1.2 billion gallons and is sustained for |
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three consecutive months; |
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(b) A renewable fuel other than cellulosic ethanol may be |
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used to meet the cellulosic ethanol volume requirements provided by |
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Subsection (a) if the renewable fuel: |
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(1) meets the requirements of 40 C.F.R. Part 79; |
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(2) has an emissions profile comparable to cellulosic |
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ethanol; |
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(3) is suitable for use in motor vehicle engines; |
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(4) is derived from renewable resources or feedstock; |
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(5) is not derived from corn-based ethanol unless it |
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is from cellulosic materials; and |
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(6) is approved by the department. |
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(c) This section does not apply to gasoline sold in regions |
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of this state where the use of cellulosic ethanol would violate, |
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conflict with, or otherwise interfere with compliance with a |
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national ambient air quality standards attainment program. |
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Sec. 16A.053. MODIFICATION OF VOLUME REQUIREMENTS. |
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(a) The department, in consultation with the Texas Department of |
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Transportation and the Texas Commission on Environmental Quality, |
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may delay or reduce the volume requirements provided by Section |
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16A.051(a) or 16A.052(a) if the department determines that to do so |
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is warranted by factors including: |
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(1) substantially increased costs to consumers; or |
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(2) insufficient quantity or distribution of |
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biodiesel or cellulosic ethanol. |
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(b) If under Section 16A.054(a) the department determines |
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that there is insufficient infrastructure in place to meet a volume |
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requirement of Section 16A.051(a) or 16A.052(a), the department |
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shall delay the implementation of the requirement until the |
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department determines that there is sufficient infrastructure in |
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place. |
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Sec. 16A.054. STUDIES AND REPORTS. (a) Not less than six |
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months before the implementation of a volume requirement provided |
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by Section 16A.051(a) or 16A.052(a), including a volume requirement |
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reduced under Section 16A.053(a), the department, in conjunction |
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with the Texas Department of Transportation, shall determine |
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whether there is sufficient transportation, distribution, and |
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other infrastructure necessary to implement the requirements. |
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(b) Not later than September 1 of each year, the department |
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shall compile: |
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(1) the name and location of each facility producing |
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biodiesel or cellulosic ethanol; |
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(2) the amount of biodiesel or cellulosic ethanol |
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produced by each facility in the preceding year; and |
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(3) the amount and type of any financial assistance |
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made available to a biodiesel or cellulosic ethanol production |
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facility by the state in the preceding year. |
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(c) Not later than December 31, 2010, the Texas Commission |
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on Environmental Quality shall complete a study of the effects on |
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this state's ability to achieve and maintain national ambient air |
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quality standards of the biodiesel and cellulosic ethanol volume |
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requirements of this chapter. The Texas Commission on |
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Environmental Quality may contract with a qualified independent |
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third party to conduct the study. |
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(d) Not later than September 1 of each year, the Texas |
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Forest Service shall submit to the department a report documenting |
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the effect, if any, on forest health, condition, and productivity |
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of in-state production of cellulosic ethanol from woody biomass. |
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Sec. 16A.055. RULES. The department, in consultation with |
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the Texas Department of Transportation and the Texas Commission on |
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Environmental Quality, shall adopt rules to implement and enforce |
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this chapter. |
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SECTION 2. This Act takes effect September 1, 2009. |