89R11158 KRM-F

By: Turner H.B. No. 3263

A BILL TO BE ENTITLED

AN ACT

relating to a program for monitoring methane emissions using funds from the Texas emissions reduction plan.

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

SECTION 1. Chapter 382, Health and Safety Code, is amended by adding Subchapter J-1 to read as follows:

SUBCHAPTER J-1. METHANE EMISSIONS PROGRAM

Sec. 382.471. DEFINITION. In this subchapter, "emission" includes any emission of gas, including an emission caused by a leak, blow out, or accident.

Sec. 382.472. METHANE EMISSIONS PROGRAM. (a) In accordance with any provision of a state implementation plan adopted to comply with federal rules regarding emissions of methane and associated gases under Section 111 or 112 of the federal Clean Air Act (42 U.S.C. Section 7411 or 7412), the commission by rule shall:

(1) adopt standards for:

(A) methane emissions; and

(B) emissions of gases associated with methane emissions; and

(2) establish a program in the manner provided by this section to identify and monitor areas of concern in this state for high emissions of methane and gases associated with methane.

(b) The commission may require and issue permits for emissions of methane or other gases associated with methane if necessary to implement this section.

(c) The commission shall establish a continuous emissions monitoring program in areas of this state that have substantial infrastructure associated with emissions of methane and associated gases, such as oil and gas facilities, wastewater treatment plants, or pulp and paper facilities. The program must provide for the operation of monitoring devices that:

(1) detect, measure, and continuously monitor methane and associated gas levels in the atmosphere to:

(A) identify background emission levels;

(B) detect locations where emissions exceed expected background levels; and

(C) measure changes in background emission levels over time; and

(2) provide real-time data on methane and other associated gas emissions from facilities that are subject to the standards adopted under Subsection (a) to rapidly detect and quantify leaks without the need for intermittent sampling.

(d) The commission shall:

(1) monitor emissions of methane and other associated gases under Subsection (c) to identify areas of concern;

(2) operate a network of sensors in each area of concern to monitor and identify sources of emissions of methane and other associated gases that are not in compliance with the standards adopted under Subsection (a); and

(3) assist operators of facilities in areas of concern with reducing regulated emissions and complying with federal and state regulations related to those emissions.

(e) The commission may contract with a third party, including an institution of higher education or a nonprofit organization, to operate a sensor under the program.

Sec. 382.473. ENFORCEMENT. (a) If the commission identifies a facility as the source of an emission of methane or other associated gas under Section 382.472 that violates a standard adopted under that section, the commission shall require the operator of the facility to repair or shut off the source of the emission not later than the 30th day after the date the commission identifies the facility. The operator may not resume operations at the facility until the facility is repaired and the commission authorizes the resumption.

(b) The commission shall consider an operator's compliance with Subsection (a) when determining whether to impose a penalty for a violation of a standard adopted under Subsection (a).

SECTION 2. 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);

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

(8) air quality planning activities as provided by Section 386.252(d);

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

(10) the Texas clean fleet program established under Chapter 392;

(11) the Texas alternative fueling facilities program established under Chapter 393;

(12) the Texas natural gas vehicle grant program established under Chapter 394;

(13) other programs the commission may develop that lead to reduced emissions of nitrogen oxides, particulate matter, or volatile organic compounds in a nonattainment area or affected county;

(14) other programs the commission may develop that support congestion mitigation to reduce mobile source ozone precursor emissions;

(15) the seaport and rail yard areas emissions reduction program established under Subchapter D-1;

(16) conducting research and other activities associated with making any necessary demonstrations to the United States Environmental Protection Agency to account for the impact of foreign emissions or an exceptional event;

(17) studies of or pilot programs for incentives for port authorities located in nonattainment areas or affected counties as provided by Section 386.252(a);

(18) the governmental alternative fuel fleet grant program established under Chapter 395;

(19) remittance of funds to the state highway fund for use by the Texas Department of Transportation for congestion mitigation and air quality improvement projects in nonattainment areas and affected counties; [and]

(20) the Texas hydrogen infrastructure, vehicle, and equipment grant program established under Subchapter G; and

(21) the methane emissions program established under Section 382.472.

SECTION 3. Section 386.252(a), Health and Safety Code, is amended to read as follows:

(a) Money in the fund and account may be used only to implement and administer programs established under the plan. Subject to the reallocation of funds by the commission under Subsection (h) and after remittance to the state highway fund under Subsection (a-1), money from the fund and account to be used for the programs under Section 386.051(b) shall initially be allocated as follows:

(1) four percent may be used for the clean school bus program under Chapter 390;

(2) eight percent total may be used between the Texas hydrogen infrastructure, vehicle, and equipment grant program established under Subchapter G and the new technology implementation grant program under Chapter 391, from which at least $1 million will be set aside for electricity storage projects related to renewable energy and not more than $8 million may be used for the Texas hydrogen infrastructure, vehicle, and equipment grant program;

(3) five percent may be used for the Texas clean fleet program under Chapter 392;

(4) not more than $3 million may be used by the commission to fund a regional air monitoring program in commission Regions 3 and 4 to be implemented under the commission's oversight, including direction regarding the type, number, location, and operation of, and data validation practices for, monitors funded by the program through a regional nonprofit entity located in North Texas having representation from counties, municipalities, higher education institutions, and private sector interests across the area;

(5) 7.5 percent may be used for the Texas natural gas vehicle grant program under Chapter 394;

(6) not more than $6 million may be used for the Texas alternative fueling facilities program under Chapter 393, of which a specified amount may be used for fueling stations to provide natural gas fuel, except that money may not be allocated for the Texas alternative fueling facilities program for the state fiscal year ending August 31, 2019;

(7) not more than $750,000 may be used each year to support research related to air quality as provided by Chapter 387;

(8) not more than $200,000 may be used for a health effects study;

(9) at least $6 million but not more than 15 percent may be used by the commission for administrative costs, including all direct and indirect costs for administering the plan, costs for conducting outreach and education activities, and costs attributable to the review or approval of applications for marketable emissions reduction credits;

(10) six percent may be used by the commission for the seaport and rail yard areas emissions reduction program established under Subchapter D-1;

(11) 2.5 percent may be used for the light-duty motor vehicle purchase or lease incentive program established under Subchapter D;

(12) not more than $500,000 may be used by the commission to contract with the Energy Systems Laboratory at the Texas A&M Engineering Experiment Station annually for the development and annual computation of creditable statewide emissions reductions for the state implementation plan that are obtained through:

(A) wind and other renewable energy resources;

(B) energy efficiency programs administered by the Public Utility Commission of Texas or the State Energy Conservation Office; or

(C) the implementation of advanced building energy codes;

(13) not more than $500,000 may be used for studies of or pilot programs for incentives for port authorities located in nonattainment areas or affected counties to encourage cargo movement that reduces emissions of nitrogen oxides and particulate matter; [and]

(14) not more than $2 million may be used by the commission for the methane emissions program under Section 382.472; and

(15) the balance is to be used by the commission for the diesel emissions reduction incentive program under Subchapter C as determined by the commission.

SECTION 4. This Act takes effect September 1, 2025.