By: Gooden H.B. No. 3450

A BILL TO BE ENTITLED

AN ACT

relating to a program to support the installation of certain emmissions-free generation systems that do not use water in the production of electricity and are located on publicly owned land or government buildings and parking structures.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Section 386.051(b), Health and Safety Code, is amended to read as follows:

(b) Under the plan, the commission and the comptroller shall provide grants or other funding for:

(1) the diesel emissions reduction incentive program established under Subchapter C, including for infrastructure projects established under that subchapter;

(2) the motor vehicle purchase or lease incentive program established under Subchapter D;

(3) the air quality research support program established under Chapter 387;

(4) the clean school bus program established under Chapter 390;

(5) the new technology implementation grant program established under Chapter 391;

(6) the regional air monitoring program established under Section 386.252(a)(5);

(7) a health effects study as provided by Section 386.252(a) [386.252(a)(7)];

(8) air quality planning activities as provided by Section 386.252(a) [386.252(a)(8)]; [and]

(9) a contract with the Energy Systems Laboratory at the Texas Engineering Experiment Station for computation of creditable statewide emissions reductions as provided by Section 386.252(a); and

(10) the emissions-free generation grant program established under Subchapter G [386.252(a)(9)].

SECTION 2. Section 386.252(a), Health and Safety Code, as amended by Chapters 589 (S.B. 20) and 892 (S.B. 385), Acts of the 82nd Legislature, Regular Session, 2011, is reenacted and amended to read as follows:

(a) Money in the fund may be used only to implement and administer programs established under the plan and shall be allocated as follows:

(1) for the diesel emissions reduction incentive program, 87.5 percent of the money in the fund, of which:

(A) not more than four percent may be used for the clean school bus program;

(B) not more than five 10 percent may be used for on-road diesel purchase or lease incentives;

(C) five percent [a specified amount] may be used for the new technology implementation grant program, from which a defined amount may be set aside for electricity storage projects related to renewable energy;

(D) five percent shall be used for the clean fleet program;

(E) two percent may be used for the Texas alternative fueling facilities program;

(F) not more [less] than 20 [16] percent shall be used for the natural gas vehicle grant program; [and]

(G) not more than four percent may be used to provide grants for natural gas fueling stations under Section 394.010; and

(H) 20 percent shall be used for the emmissions-free generation grant program established under Subchapter G;

(2) for the new technology research and development program, nine percent of the money in the fund, of which:

(A) up to $200,000 is allocated for a health effects study;

(B) $500,000 is to be deposited in the state treasury to the credit of the clean air account created under Section 382.0622 to supplement funding for air quality planning activities in affected counties;

(C) not less than 20 percent is to be allocated each year to support research related to air quality as provided by Section 387.002 [387.010]; and

(D) the balance is allocated each year to the commission to be used to:

(i) implement and administer the new technology research and development program for the purpose of identifying, testing, and evaluating new emissions-reducing technologies with potential for commercialization in this state and to facilitate their certification or verification; and

(ii) contract with the Energy Systems Laboratory at the Texas Engineering Experiment Station for $216,000 annually for the development and annual computation of creditable statewide emissions reductions obtained through certain [wind and other] renewable energy resources for the state implementation plan; and

(3) two percent is allocated to the commission and 1.5 percent is allocated to the laboratory for administrative costs incurred by the commission and the laboratory.

SECTION 3. Chapter 386, Health and Safety Code, is amended by adding Subchapter G to read as follows:

SUBCHAPTER G. EMISSIONS-FREE GENERATION GRANT PROGRAM

Sec. 386.301. FINDINGS. The legislature finds that the programs previously developed as part of the Texas Emissions Reduction Plan are being effectively implemented and the continued reduction of emissions in this state is necessary and requires the development of additional programs. The legislature further finds that the development of electric generation that has no emissions, requires no water for the production of electricity, and can provide energy production during periods of peak electric consumption, is in the best interest of the state at this time.

Sec. 386.302. DEFINITION. In this subchapter, "emissions-free generation" means electric generation with a capacity of not more than 30 megawatts provided by an electric generation technology that has no measurable air emissions.

Sec. 386.303. GRANT PROGRAM. (a) The commission shall establish and administer an emissions-free generation grant program using money allocated under Section 386.252 to promote projects for the acquisition and installation of emissions-free generation systems on publicly owned land, a building or parking structure.

(b) A grant received under this section may be used to fund not more than 30 percent of the total cost of acquiring and installing the emissions-free generation system exclusive of any federal incentives.

(c) An application for a grant must be submitted by the entity that owns the land, building or parking structure and, if applicable, by a co-applicant who may own the emissions-free generation system. If the land, building or parking structure owner's application relies on a co-applicant, the application must include a copy of an agreement signed by the owner and the co-applicant that specifies the ownership of the installed emissions-free generation system.

(d) The commission by rule shall establish criteria for projects eligible to receive a grant under this section and procedures for grant applicants that prioritize qualified projects based on;

(1) the lowest possible air emissions during the production of electricity;

(2) the lowest amount of water used during the production of electricity; and

(3) the capability to provide energy production to the electric market during times of peak electric consumption.

(e) The commission shall establish as the initial grant amounts:

(1) 60 cents per rated watt for installed emissions-free generation with a capacity of up to 5 megawatts; and

(2) 30 cents per rated watt for installed emissions-free generation with a capacity of more than 5 megawatts.

Sec. 386.304. ELIGIBILITY. A person is eligible to receive a grant under a program established under this subchapter only for a project to acquire and install an emissions-free generation system on publicly owned land, or a building or parking structure that is:

(1) owned by or is located on property that is owned by this state or a political subdivision of this state; and

(2) located in a nonattainment area or affected county, as defined by Section 386.001.

SECTION 4. This Act takes effect immediately if it receives two thirds of all members elected to each house, as provided by Section 39, Article III of the Texas Constitution. If this does not receive the vote necessary for immediate effect, this Act takes effect September 1, 2013.