By: Blanco H.B. No. 4599
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to the establishment and implementation by the Texas
  Commission on Environmental Quality of a program to reduce the
  emissions of greenhouse gases in this state; authorizing a fee.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Subtitle C, Title 5, Health and Safety Code, is
  amended by adding Chapter 396 to read as follows:
  CHAPTER 396. GREENHOUSE GAS EMISSIONS REDUCTION PROGRAM
         Sec. 396.0101.  DEFINITIONS. In this chapter:
               (1)  "Carbon dioxide equivalent emissions" means the
  number of metric tons of emissions of carbon dioxide that has the
  same global warming potential as one metric ton of a compared
  greenhouse gas.
               (2)  "Commission" means the Texas Commission on
  Environmental Quality.
               (3)  "Covered entity" means:
                     (A)  an entity permitted under Section 382.05102
  in a manner consistent with Section 382.051; and
                     (B)  an entity or class of entities that, as
  determined by the commission, is transporting, selling, or
  otherwise using a covered fuel in a manner that emits a greenhouse
  gas into the atmosphere.
               (4)  "Covered fuel" means crude oil, natural gas, coal,
  or another product derived from crude oil, natural gas, biofuel or
  coal that is used in a manner that emits greenhouse gases into the
  atmosphere.
               (5)  "Greenhouse gas" includes carbon dioxide,
  methane, nitrous oxide, sulfur hexafluoride, hydrofluorocarbons,
  and perfluorocarbons.
         Sec. 396.0102.  GREENHOUSE GAS EMISSIONS REDUCTION PROGRAM;
  FEE.  The commission by rule shall establish a program that:
               (1)  reduces emissions of greenhouse gases in this
  state;
               (2)  imposes a fee on emissions resulting from the use
  or transfer of a covered fuel by a covered entity; and
               (3)  issues payments for facilities that capture and
  sequester carbon dioxide.
         Sec. 396.0103.  FEE AMOUNT AND RATE. (a) The commission
  shall impose a fee on the emission of a greenhouse gas in this state
  for each metric ton of carbon dioxide equivalent emissions of the
  greenhouse gas multiplied by the fee rate.
         (b)  The commission by rule shall establish a fee rate of not
  less than $5.
         Sec. 396.0104.  DISPOSITION OF FEE.  The commission shall
  deposit to the credit of the emissions fee account the fees
  collected under this chapter.
         Sec. 396.0105.  EMISSIONS FEE ACCOUNT. (a) The emissions
  fee account is an account in the general revenue fund.
         (b)  The account is administered by the commission for the
  benefit of the program established under this chapter. Interest
  earned on the account is credited to the account.
         (c)  The account consists of fees deposited to the credit of
  the account under Section 396.0104 and any other money appropriated
  or transferred to the account.
         (d)  Money in the account may be used only for:
               (1)  payments made under Section 396.0107;
               (2)  administration of the program established under
  this chapter; or
               (3)  other programs to reduce the emissions of
  greenhouse gases in this state.
         Sec. 396.0106.  FEE EXEMPTIONS. The commission:
               (1)  shall exempt agricultural uses of covered fuel
  from payment of the fee imposed under Section 396.0103; and
               (2)  may establish other appropriate exemptions under
  the program.
         Sec. 396.0107.  SEQUESTRATION PAYMENTS. (a) The commission
  shall pay to a facility that captures and sequesters carbon dioxide
  an amount equal to the metric tons of carbon dioxide captured and
  sequestered multiplied by the rate established under Section
  396.0103(b).
         Sec. 396.0108.  EMISSIONS REDUCTION SCHEDULE.  The
  commission shall establish a schedule for annual reductions of
  emissions of greenhouse gases.
         Sec. 396.0109.  TERMINATION OF FEE. The commission may not
  collect a fee under Section 396.0103 or make a payment under Section
  396.0107 if the executive director of the commission determines
  that the actual emissions of greenhouse gases from covered fuels is
  not more than 10 percent of the emissions of greenhouse gases from
  covered fuels during the year 2016.
         SECTION 2.  This Act takes effect September 1, 2019.