HomeMy WebLinkAbout12062001 BSC Agenda Item 8 • .
BILL ANALYSIS
Senate Research Center S.B.5
By:Brown,J.E. "Buster"
Natural Resources
6/25/2001
Enrolled
DIGEST AND PURPOSE
The federal Clean Air Act authorizes the United States Environmental Protection Agency(EPA)
to establish the maximum allowable concentrations of pollutants that can endanger human health,
harm the environment,and cause property damage.A significant portion of Texas currently does
not meet these standards and is facing severe sanctions if attainment is not reached by 2007.
While the Texas Natural Resource Conservation Commission(commission)has submitted a
proposed State Implementation Plan(SIP)requiring emissions reductions of sources under their
control,there are significant areas of potential emission reductions the commission cannot
regulate but which may be realized through incentive programs.S.B.5 establishes programs to
encourage emissions reductions.
RULEMAKING AUTHORITY
Rulemaking authority is expressly granted to the Texas Natural Resource Conservation
Commission in SECTIONS 1 (Sections 386.106,386.112,and 386.157,Health and Safety Code)
and 11,to the comptroller in SECTIONS 3(Section 152.0215,Tax Code)and 11,and to the
commission and the comptroller in SECTIONS 1 (Section 386.053,Health and Safety Code)and
12 of this bill.
SECTION BY SECTION ANALYSIS
SECTION 1.(a)Sets forth legislative intent.
(b)Amends Title 5C,Health and Safety Code,by adding Chapters 386,387,388,
and 389, as follows:
CHAPTER 386.TEXAS EMISSIONS REDUCTION PLAN
SUBCHAPTER A.GENERAL PROVISIONS
Sec.386.001.DEFINITIONS.Defines"advisory board,""affected county,"
"commission,""council,""fund,""incremental cost,""laboratory,""nonattainment area,"
"plan,""site,"and"utility commission."
Sec.386.002.EXPIRATION.Provides that this chapter expires August 31,2008.
[Sections 386.003-386.050 reserved for expansion]
SUBCHAPTER B.TEXAS EMISSIONS REDUCTION PLAN
Sec.386.051. TEXAS EMISSIONS REDUCTION PLAN. (a) Requires the Public
Utility Commission(PUC),the Texas Natural Resource Conservation Commission
(commission),the comptroller,and the Texas Council on Environmental Technology
(council)to establish and administer the Texas emissions reduction plan in accordance
with this chapter.
(b) Provides that under the plan,the commission,the comptroller,and the council
are required to provide grants or other funding for certain conditions.
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(c) Requires the utility commission,under the plan,to provide grants or other
funding for the energy efficiency grant program established under Subchapter E.
(d) Provides that equipment purchased before September 1,2001,is not eligible
for a grant or other funding under the plan.
Sec.386.052. COMMISSION DUTIES. (a) Requires the commission,in administering
the plan established under this chapter and in accordance with the requirements of this
chapter,to perform certain procedures.
(b) Provides that appropriate commission objectives include certain
criteria.
Sec.386.053. GUIDELINES AND CRITERIA. (a) Requires the commission to adopt
grant guidelines and criteria consistent with the requirements of this chapter.
(b) Requires guidelines to include protocols to calculate projected emissions
reductions,project cost-effectiveness,and safeguards to ensure that funded
projects generate emissions reductions not otherwise required by state or federal
law.
(c) Requires the commission to make draft guidelines and criteria available to the
public and the United States Environmental Protection Agency(EPA)before the
45th day preceding the date of final adoption and shall hold at least one public
meeting to consider public comments on the draft guidelines and criteria before
final adoption. Requires the public meeting to be held in the affected state
implementation plan area,and if the guidelines affect more than one state
implementation plan area,a public meeting to be held in each affected state
implementation plan area affected by the guidelines.
(d) Authorizes the commission to propose revisions to the guidelines and criteria
adopted under this section as necessary to improve the ability of the plan to
achieve its goals. Authorizes revisions to include,among other changes,adding
additional pollutants or adjusting eligible program categories,as appropriate,to
ensure that incentives established under this chapter achieve the,maximum
possible emissions reductions. Requires the commission to make a proposed
revision available to the public before the 45th day preceding the date of final
adoption of the revision and to hold at least one public meeting to consider public
comments on the proposed revision before final adoption.
(e) Authorizes the commission and the comptroller,because the legislature finds
that the current state of air quality in the state jeopardizes the state's ability to meet
federal air quality requirements,to adopt emergency rules under Section
2001.034,Government Code,with abbreviated notice,to carry out any rulemaking
necessary to implement this chapter.
(f) Provides that except as provided by Subsection(e),the rulemaking
requirements of Chapter 2001,Government Code,do not apply to the adoption or
revision of guidelines and criteria under this section.
Sec. 386.054. MONITORING PROCEDURES. (a) Requires the commission to develop
procedures for monitoring whether the emissions reductions projected for projects
awarded grants under this chapter are actually achieved. Authorizes monitoring
procedures to include project reviews and contract requirements that the grant recipient
provide information semiannually about the project. Requires the report,if the
commission requires an annual report,to contain a minimum amount of information
required from a recipient and the report format shall be simple and convenient.
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(b) Requires monitoring and reviewing procedures to be sufficient to enable
emissions reductions generated by funded projects to be fully credited to air
quality plans.
(c) Authorizes the commission to revise monitoring and review procedures from
time to time as necessary or appropriate to enhance the effectiveness of the plan.
Sec.386.055. AVAILABILITY OF EMISSIONS REDUCTION CREDITS
GENERALLY. (a) Prohibits a project funded under a program established under this
chapter from being used for credit under any state or federal emissions reduction credit
averaging,banking,or trading program.
(b) Provides that an emissions reduction generated by a program established
under this chapter to meet certain criteria.
(c) Provides that a project involving a new emissions reduction measure that
would otherwise generate marketable credits under state or federal emissions
reduction credit averaging,banking,or trading programs is not eligible for
funding under a program established under this chapter unless certain conditions
are met.
Sec.386.056. AVAILABILITY OF EMISSIONS REDUCTIONS IN CERTAIN
NONATTAINMENT AREAS. (a) Authorizes an owner or operator of a site located in
the Houston-Galveston or Dallas-Fort Worth nonattainment area to use emissions
reductions generated by a program established under this chapter to offset the
requirements of commission rules relating to control of air pollution from oxides of
nitrogen if certain conditions are.
(b) Requires funds collected under this section to be used to generate emissions
reductions needed to meet the commission's attainment demonstration.
(c) Requires the commission to verify that emissions reductions generated from
funds collected under this section occur in the same nonattainment area in which
the site that purchased the emissions reductions is located.
(d) Requires the commission to assure that the emissions reductions funded under
the programs authorized by this subchapter used to offset commission
requirements under this section benefit the community in which the site using the
emissions reductions is located. Authorizes the commission,if there are no
eligible emissions reduction projects within the community,to authorize projects
in an adjacent community. Defines"community."
Sec.386.057. REVIEW AND REPORTING REQUIREMENTS. (a) Requires the
commission,in consultation with the advisory board,annually to review programs
established under the plan,including each project funded under the plan,the amount
granted for the project,the emissions reductions attributable to the project,and the
cost-effectiveness of the project.
(b) Provides that not later than December 1,2002,and not later than December 1
of each subsequent second year,the commission,in consultation with the advisory
board,is required to publish and submit to the legislature a biennial plan report.
Requires the report to include certain information.
(c) Requires the report,for projects funded as part of the infrastructure program
under Subchapter C,to meet certain criteria.
(d) Requires the report to meet certain criteria.
(e) Requires the commission to request public comment and hold a public
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meeting on each draft biennial report and,in producing a final biennial report,to
consider and respond to all significant comments received.
Sec.386.058. TEXAS EMISSIONS REDUCTION PLAN ADVISORY BOARD.
(a) The Texas Emissions Reduction Plan Advisory Board(advisory board)consists of
certain members.
(b) Requires the governor to appoint to the advisory board certain persons.
(c) Requires the lieutenant governor to appoint to the advisory board certain
persons.
(d) Requires the speaker of the house of representatives to appoint to the advisory
board certain persons.
(e) Provides that appointed members of the advisory board serve staggered
two-year terms. Provides that the terms of seven appointed members expire
February 1 of each even-numbered year. Provides that the terms of eight
appointed members expire February 1 of each odd-numbered year. Authorizes an
appointed member to be reappointed to a subsequent term.
(f) Provides that ex officio members of the advisory board are consists of certain
persons.
(h) Requires the advisory board to review the plan and to recommend to the
commission changes to revenue sources or financial incentives or any
legislative,regulatory,or budgetary changes needed.
(i) Requires the commission to provide necessary staff support to the advisory
board.
[Sections 386.059-386.100 reserved for expansion]
SUBCHAPTER C. DIESEL EMISSIONS REDUCTION INCENTIVE PROGRAM
Sec.386.101. DEFINITIONS. Defines"cost-effectiveness,""fuel cell,""motor vehicle,"
"non-road diesel,""non-road engine,""on-road diesel,""program,""qualifying fuel,"
"repower,"and"retrofit."
Sec.386.102. PROGRAM. (a) Requires the commission to establish and administer a
diesel emissions reduction incentive program. Requires the commission,under the
program,to provide grants for eligible projects to offset the incrementalcost of projects
that reduce emissions of oxides of nitrogen from high-emitting diesel sources in
nonattainment areas and affected counties of the state. Requires the commission to
determine the eligibility of projects.
(b) Provides that projects that may be considered for a grant under the program
include certain projects or equipment.
(c) Provides that a project listed in Subsection(b)is not eligible if it is required
by any state or federal law,rule or regulation,memorandum of agreement,or
other legally binding document. Provides that this subsection does not apply to
certain projects or equipment.
Sec.386.103. APPLICATION FOR GRANT. (a) Provides that any person as defined
by Section 382.003 that owns one or more on-road or non-road diesels that operate
primarily within a nonattainment area or affected county of this state or that otherwise
contributes to the state inventory of emissions of oxides of nitrogen may apply for a grant
under the program.
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(b) Requires an application for a grant under this subchapter to be made on an
application provided by the commission and to contain information required by
the commission,including certain information.
Sec.386.104. ELIGIBILITY REQUIREMENTS. (a) Requires the commission to
establish criteria for setting priorities for projects eligible to receive grants under this
subchapter. Requires the commission to review and may modify the criteria and priorities
as appropriate.
(b) Requires a proposed project as described in Section 386.102 to meet the
requirements of this section to be eligible for a grant under the program.
(c) Provides that 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 is required to be projected to take
place in a nonattainment area or affected county of this state. Provides that for a
proposed project involving a marine vessel or engine,the vessel or engine are
required to 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.
(d) Requires each proposed project to meet the cost-effectiveness requirements of
Sections 386.105 and 386.106.
(e) Requires a proposed repower project must exceed commission requirements
relating to baseline emissions levels of the engines being replaced under the
project.
(f) Requires a proposed retrofit,repower,or add-on equipment project to
document,in a manner acceptable to the commission,a reductiot in emissions of
oxides of nitrogen of at least 30 percent compared with the baseline emissions
adopted by the commission for the relevant engine year and application.
Authorizes the commission,after study of available emissions reduction
technologies,after public notice and comment,and after consultation with the
advisory board,to revise the minimum percentage reduction in emissions of
oxides of nitrogen required by this subsection to improve the ability of the
program to achieve its goals.
(g) Provides that if a baseline emissions standard does not exist for on-road or
non-road diesels in a particular category,the commission,for purposes of this
subchapter,is required to establish an appropriate baseline emissions level for
comparison purposes.
(h) Authorizes the commission to approve payments to offset the incremental
cost,over the expected lifetime of the motor vehicle or on-road or non-road
diesel,of the use of qualifying fuel in a motor vehicle or on-road or non-road
diesel if the proposed project as a whole,including the incremental fuel cost,
meets the requirements of this subchapter. Requires the commission to develop
an appropriate method for converting incremental fuel costs over the lifetime of
the motor vehicle or on-road or non-road diesel into an initial cost for purposes of
determining cost-effectiveness as required by Section 386.105.
Sec. 386.105. CALCULATION OF COST-EFFECTIVENESS. (a) Provides that in
calculating cost-effectiveness,one-time grants of money at the beginning of a project are
to be annualized using a time value of public funds or discount rate determined for each
project by the commission,taking into account the interest rate on bonds,interest earned
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by state funds,and other factors the commission considers appropriate.
(b) Requires the commission to establish reasonable methodologies for evaluating
project cost-effectiveness consistent with Subsection(a)and with accepted
methods.
(c) Requires the commission to develop protocols for calculating oxides of
nitrogen emissions reductions not otherwise required by state or federal law in
nonattainment areas and affected counties of this state from representative project
types over the life of the projects.
(d) Authorizes the commission to include in cost-effectiveness determinations
only reductions in oxides of nitrogen emissions that are achieved in nonattainment
areas and affected counties of this state.
Sec.386.106. COST-EFFECTIVENESS CRITERIA;DETERMINATION OF GRANT
AMOUNT. (a) Prohibits the commission,except as provided by Section 386.107,from
awarding 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
$13,000 per ton of oxides of nitrogen emissions reduced in the nonattainment area or
affected county for which the project is proposed. Provides that this subsection does not
restrict commission authority under other law to require emissions reductions with a
cost-effectiveness that exceeds$13,000 per ton.
(b) Prohibits the commission from awarding a grant that,net of taxes,provides an
amount that exceeds the incremental cost of the proposed project.
(c) Requires the commission to adopt guidelines for capitalizing incremental
lease costs so those costs may be offset by a grant under this subchapter.
(d) Requires the commission,in determining the amount of a grant under this
subchapter,to reduce the incremental cost of a proposed new purchase,lease,
retrofit,repower,or add-on equipment project by the value of any existing
financial incentive that directly reduces the cost of the proposed project,including
tax credits or deductions,other grants,or any other public financial assistance.
Sec.386.107. ADJUSTMENT TO MAXIMUM COST-EFFECTIVENESS AMOUNT
AND AWARD AMOUNT. Provides that after study of available emissions reduction
technologies and costs and after public notice and comment,the commission,in
consultation with the advisory board,is authorized to change the values of the maximum
grant award criteria established in Section 386.106 to account for inflation or to improve
the ability of the program to achieve its goals.
Sec.386.108. INFRASTRUCTURE PROJECTS. (a) Requires the commission to
provide funding under Section 386.252(a)(1)for infrastructure projects.
(b) Requires the commission,to implement the requirement of Subsection(a),to
perform certain procedures.
Sec.386.109. ELIGIBLE INFRASTRUCTURE PROJECTS. Authorizes the
commission to consider for funding under Section 386.108 certain criteria.
Sec.386.110. APPLICATION PACKAGE FOR INFRASTRUCTURE PROJECTS.
(a) Requires the commission to develop a simple,standardized application package for
infrastructure project grants under this subchapter. Requires the package to include
certain information.
(b) Requires the application form to require as much information as the
commission determines is necessary to properly evaluate each project but shall
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otherwise minimize the information required.
(c) Prohibits the commission from requiring an applicant,as part of the
application process,to calculate tons of emissions reduced or cost-effectiveness.
Sec.386.111. APPLICATION REVIEW PROCEDURES. (a) Requires the commission
to review an application for a grant for a project authorized under this subchapter,
including an application for a grant for an infrastructure project,immediately on receipt
of the application. Requires the commission,if the commission determines that an
application is incomplete,to notify the applicant,not later than the 15th working day after
the date on which the commission received the application,with an explanation of what is
missing from the application. Requires the commission to record the date and time of
receipt of each application the commission determines to be complete and to evaluate the
completed application according to the appropriate project criteria. Requires the
commission,subject to available funding,to make a final determination on an application
as soon as possible and not later than the 60th working day after the date the application
is determined to be complete.
(b) Requires the commission to make every effort to expedite the application
review process and to award grants to qualified projects in a timely manner.
Requires the commission,to the extent possible,to coordinate project review and
approval with any timing constraints related to project purchases or installations
to be made by an applicant.
(c) Authorizes the commission to deny an application for a project that does not
meet the applicable project criteria or that the commission determines is not made
in good faith,is not credible,or is not in compliance with this chapter and the
goals of this chapter.
(d) Requires the commission,subject to availability of funds,tq award a grant
under this subchapter in.conjunction with the execution of a contract that
obligates the commission to make the grant and the recipient to?erform the
actions described in the recipient's grant application. Requires tie contract to
incorporate provisions for recapturing grant money in proportion to any loss of
emissions reductions or underachievement in dispensing qualifying fuel compared
with the volume of emissions reductions or amount of fuel dispensed that was
projected in awarding the grant. Requires grant money recaptured under the
contract provision to be deposited in the fund and reallocated for other projects
under this subchapter.
(e) Authorizes an applicant to seek reimbursement for qualifying equipment
installed after the effective date of this program.
Sec.386.112. ON-ROAD DIESEL PURCHASE OR LEASE INCENTIVE.
(a) Requires the commission to develop a purchase or lease incentive program for new
on-road diesels and to adopt rules necessary to implement the program and to reimburse a
purchaser or lessee of a new on-road diesel that is eligible for reimbursement of
incremental costs under this subchapter.
(b) Requires the program to authorize statewide incentives for the reimbursement
of incremental costs for the purchase or lease,according to the schedule provided
by Section 386.113,of new on-road diesels that are certified by the EPA to an
emissions standard provided by Section 386.113 if the purchaser or lessee of the
on-road diesel agrees to register the vehicle in this state and to operate the on-road
diesel in this state for not less than 75 percent of the on-road diesel's annual
mileage.
(c) Provides that only one incentive will be provided for each new on-road diesel.
Requires the incentive to be provided to the purchaser if the on-road diesel is not
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purchased for the purpose of leasing the on-road diesel to another person,or to the
lessee and not to the purchaser if the on-road diesel is purchased for the purpose
of leasing the on-road diesel to another person. Requires a lease incentive for a
new on-road diesel to be prorated based on an eight-year lease term.
Sec.386.113. ON-ROAD DIESEL PURCHASE OR LEASE INCENTIVE SCHEDULE.
Provides that a new on-road diesel is eligible for reimbursement of incremental costs
according to a certain schedule.
Sec.386.114. MODIFICATION OF INCENTIVE EMISSIONS STANDARDS.
Provides that after evaluating new technologies and after public notice and comment,the
commission,in consultation with the advisory board,is authorized to change the
incentive emissions standards established by Section 386.113 to improve the ability of the
program to achieve its goals.
[Sections 386.115-386.150 reserved for expansion]
SUBCHAPTER D. MOTOR VEHICLE PURCHASE OR LEASE INCENTIVE PROGRAM
Sec.386.151. DEFINITIONS. Defines"bin"or"emissions plan,""light duty motor
vehicle,"and"motor vehicle."
Sec.386.152. COMPTROLLER AND COMMISSION DUTIES REGARDING
LIGHT-DUTY MOTOR VEHICLE PURCHASE OR LEASE INCENTIVE PROGRAM.
(a) Requires the comptroller and the commission to develop a purchase or lease
incentive program for new light-duty motor vehicles and to adopt rules necessary to
implement the program.
(b) Requires the program to authorize statewide incentives for th' purchase or
lease,according to the schedule provided by Section 386.153,of view light-duty
motor vehicles that are certified by the EPA to meet an emissions standard that is
at least as stringent as those provided by Section 386.153 for a purchaser or lessee
who agrees to register the vehicle in this state and to operate the vehicle in this
state for not less than 75 percent of the vehicle's annual mileage.
(c) Provides that only one incentive will be provided for each neW light-duty
motor vehicle. Requires the incentive to be provided to the lessee and not to the
purchaser if the motor vehicle is purchased for the purpose of leasing the vehicle
to another person.
Sec.386.153. LIGHT-DUTY MOTOR VEHICLE PURCHASE OR LEASE
INCENTIVE SCHEDULE. Provides that a new light-duty motor vehicle is eligible for
an incentive according to a certain schedule.
Sec.386.154. MODIFICATION OF INCENTIVE EMISSIONS STANDARDS.
Provides that after evaluating new technologies and after public notice and comment,the
commission,in consultation with the advisory board,is authorized to change the
incentive emissions standards established by Section 386.153 to improve the ability of the
program to achieve its goals.
Sec.386.155. MANUFACTURER'S REPORT. Requires a manufacturer of motor
vehicles,at the beginning of but not later than July 1 of each year preceding the vehicle
model year,to provide to the commission a list of the new vehicle models that the
manufacturer intends to sell in this state during that model year that meet the incentive
emissions standards established by the schedules set out under Section 3$6.153.
Authorizes the manufacturer to supplement the list provided to the commission under this
section as necessary to include additional new vehicle models the manufacturer intends
to sell in this state during the model year.
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Sec.386.156. LIST OF ELIGIBLE MOTOR VEHICLES. (a) Provides that on August 1
each year the commission is required to publish and provide to the comptroller a list of
the new model motor vehicles as listed for the commission under Section 386.155.
Requires the commission to publish and provide to the comptroller supplements to that
list as necessary to include additional new vehicle models listed in a supplement to the
original list provided by a manufacturer under Section 386.155.
(b) Requires the comptroller to distribute the list of eligible motor vehicles to all
new motor vehicle dealers and leasing agents in this state.
Sec.386.157. VEHICLE EMISSIONS INFORMATION BROCHURE. (a) Provides
that to enable consumers to make informed purchase decisions based on the relative
amounts of emissions produced by motor vehicles within each vehicle class,the motor
vehicle manufacturer is required to publish and make available to its dealers,for
distribution to the dealers'customers,a brochure that includes the list of eligible motor
vehicles prepared under Section 386.156 and the emissions and air pollution ratings,not
including fuel efficiency,for each eligible motor vehicle based on data from the EPA's
Green Vehicle Guide. Requires the brochure to also clearly present information on the
emissions and air pollution ratings,not including fuel efficiency,for each motor vehicle
on the list of eligible motor vehicles prepared by the manufacturer under Section 386.155,
based on the motor vehicle's Bin certification number. Requires the broghure to indicate
where the Bin certification information is located on each motor vehicle and to clearly
explain how to interpret that information. Requires the brochure to also tell the consumer
how to obtain further information from the EPA's Green Vehicle Guide. Requires the
commission by rule to establish standards for compliance with this subsection.
(b) Requires a new motor vehicle dealer or leasing agent to make available to the
dealer's or leasing agent's prospective purchasers or lessees a copy of the list
prepared and published by the commission under Section 386.1$.
Sec.386.158. LIGHT-DUTY MOTOR VEHICLE PURCHASE OR LEASE
INCENTIVE. (a) Provides that a person who purchases or leases a newjlight-duty motor
vehicle that has been listed under Section 386.155 is eligible for an incentive under this
subchapter.
(b) Requires a lease incentive for a new light-duty motor vehicle to be prorated
based on a four-year lease term.
(c) Provides that to receive money under an incentive program provided by this
subchapter,the purchaser or lessee of a new light-duty motor vehicle eligible for
an incentive under this subchapter to apply for the incentive in the manner
provided by law or by rule of the comptroller.
Sec.386.159. PUBLIC INFORMATION. (a) Requires the commission in cooperation
with the comptroller to develop and implement a program to inform the public and new
motor vehicle dealers and leasing agents about the motor vehicle purcha a or lease
incentive program.
(b) Requires he Texas Department of Transportation(department)to insert a
notice describing the light-duty motor vehicle purchase or lease incentive program
with each annual vehicle registration renewal notice. Requires the notice,to help
a consumer to make informed new vehicle purchase decisions,to also include a
statement that information on eligible motor vehicles and on the emissions and air
pollution ratings,not including fuel efficiency,for eligible motor vehicles may be
obtained from the commission or from new motor vehicle dealers and leasing
agents. Requires the notice to state where the Bin certification information is
located on each eligible motor vehicle,to clearly explain how to interpret that
information,and to tell the consumer how to obtain further information from the
EPA's Green Vehicle Guide.
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Sec.386.160. COMPTROLLER TO ACCOUNT FOR MOTOR VEHICLE PURCHASE
OR LEASE INCENTIVES. (a) Requires the comptroller by rule to develop a method to
administer and account for the motor vehicle purchase or lease incentives authorized by
this subchapter and to pay incentive money to the purchaser or lessee of a new motor
vehicle,on application of the purchaser or lessee as provided by this subchapter.
(b) Requires the comptroller to develop and publish forms and instructions for the
purchaser or lessee of a new motor vehicle to use in applying to the comptroller
for an incentive payment under this subchapter. Requires the comptroller to make
the forms available to new motor vehicle dealers and leasing agents. Requires
dealers and leasing agents to make the forms available to their prospective
purchasers or lessees.
(c) Requires the comptroller,in addition to other forms developed and published
under this section,to develop and publish a verification form by which,with
information provided by the dealer or leasing agent,the comptroller can verify the
sale of a vehicle covered by this subchapter. Requires the verification form to
include certain information. Provides that at the time of sale or lease of a vehicle
eligible for an incentive under this subchapter,the dealer or leasing agent are
required to complete the verification form supplied to the dealer lay the
comptroller. Requires the purchaser or lessee to include the completed
verification form as part of the purchaser's application for an incentive. Requires
the dealer to maintain a copy of the completed verification form for at least two
years from the date of the transaction.
Sec.386.161. REPORT TO COMMISSION;SUSPENSION OF PURCHASE OR
LEASE INCENTIVES. (a) Requires the comptroller to report to the commission
annually regarding motor vehicle purchase or lease incentives.
(b) Requires the comptroller by order,if the balance available for motor vehicle
purchase or lease incentives falls below 15 percent of the total allocated for the
incentives during that fiscal year,to suspend the incentives until the date the
comptroller can certify that the balance available in the fund for incentives is an
amount adequate to resume the incentives or the beginning of the next fiscal year,
whichever is earlier. Requires the comptroller,if the comptroller suspends the
incentives,to immediately notify the commission and all new motor vehicle
dealers and leasing agents that the incentives have been suspended.
(c) Requires the comptroller to establish a toll-free telephone number available to
motor vehicle dealers and leasing agents for the dealers and agents to call to verify
that incentives are available. Authorizes the comptroller to prov/de for issuing
verification numbers over the telephone line.
(d) Provides that reliance by a dealer or leasing agent on information provided by
the comptroller or commission is a complete defense to an action involving or
based on eligibility of a vehicle for an incentive or availability of vehicles eligible
for an incentive.
[Sections 386.162-386.200 reserved for expansion]
SUBCHAPTER E. ENERGY EFFICIENCY GRANT PROGRAM
Sec.386.201. DEFINITIONS. Defines"electric cooperative,""electric utility,"and
"municipally owned utility."
Sec.386.202. GRANT PROGRAM. (a) Requires the PUC to develop an energy
efficiency grant program using program templates that are consistent with rules of the
utility commission adopted under Section 39.905,Utilities Code.
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(b) Requires programs approved under this subchapter to include the retirement
of materials and appliances that contribute to peak energy demand to ensure the
reduction of energy demand,peak loads,and associated emissions of air
contaminants.
Sec.386.203. ADMINISTRATION OF GRANTS. Requires money allocated by the
utility commission under the grant program developed under this subchapter to be
administered by electric utilities,electric cooperatives,and municipally owned utilities.
Requires a participating electric utility,electric cooperative,or municipally owned utility
to be reimbursed from the fund for costs incurred by the utility in administering the
energy efficiency grant program established under this subchapter. Prohibits
reimbursable administrative costs of a participating entity from exceeding 10 percent of
the entity's total program budget before January 1,2003,and from exceeding five percent
of the entity's total program budget on or after that date.
Sec.386.204. LIMITATION ON DUTY OF PARTICIPATING UTILITY. (a) Provides
that this subchapter obligates an electric utility,electric cooperative,or municipally
owned utility only to administer the funding allocated to the entity by the utility
commission in accordance with this subchapter.
(b) Provides that the obligation of an electric utility under this subchapter is
separate and apart from,and does not affect an obligation of the electric utility
under,Section 39.905,Utilities Code,or a rule adopted under that section.
(c) Prohibits emissions reductions achieved by a program implemented under this
subchapter from being used by an electric utility,electric cooperative,or
municipally owned utility to satisfy an obligation to reduce air contaminant
emissions under state or federal law or a state or federal regulatory program.
Sec.386.205. EVALUATION OF STATE ENERGY EFFICIENCY PROGRAMS.
Requires the PUC,in cooperation with the laboratory,to provide an annual report to the
commission that,by county,quantifies the reductions of energy demand,;peak loads,and
associated emissions of air contaminants achieved from the programs implemented under
this subchapter and from those implemented under Section 39.905,Utilities Code.
[Sections 386.206-386.250 reserved for expansion]
SUBCHAPTER F. TEXAS EMISSIONS REDUCTION PLAN FUND
Sec.386.251. FUND. (a) Provides that the Texas emissions reduction plan fund is an
account in the state treasury.
(b) Provides that the fund is administered by the comptroller for the benefit of the
plan established under this chapter. Provides that the fund is exempt from the
application of Section 403.095,Government Code.Requires interest earned on the
fund to be credited to the fund.
(c) Provides that the fund consists of certain funds.
Sec.386.252. USE OF FUND. (a) Authorizes money in the fund to be used only to
implement and administer programs established under the plan and is required to be
allocated for certain purposes.
(b) Authorizes up to 15 percent of the money allocated under Subsection(a)to a
particular program and not expended under that program by March 1 of the
second fiscal year of a fiscal biennium to be used for another program under the
plan as determined by the commission in consultation with the advisory board.
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CHAPTER 387. NEW TECHNOLOGY RESEARCH
AND DEVELOPMENT PROGRAM
Sec.387.001. DEFINITION. Defines"program."
Sec.387.002. TEXAS COUNCIL ON ENVIRONMENTAL TECHNOLOGY.
(a) Provides that the Texas Council on Environmental Technology(council)
consists of 11 members appointed by the governor to represent the academic and
nonprofit communities. Requires the governor to designate from the council members a
presiding officer of the council. Provides that members of the council serve six-year
staggered terms,with the terms of three or four members expiring February 1 of each
odd-numbered year.
(b) Requires the council to work to enhance the entrepreneurial and inventive
spirit of Texans to assist in developing solutions to air,water,and waste problems
by certain procedures.
(c) Requires council offices and projects to be housed at the Center for Energy
and Environmental Resources at The University of Texas at Austin.
Sec. 387.003. NEW TECHNOLOGY RESEARCH AND DEVELOPMENT
PROGRAM. (a) Requires the council establish and administer a new technology
research and development program as provided by this chapter.
(b) Requires the council,under the program,to provide grants to be used to
support development of emissions-reducing technologies that may be used for
projects eligible for awards under Chapter 386 and other new technologies that
show promise for commercialization. Provides that the primary objective of this
chapter is to promote the development of commercialization technologies that will
support projects that may be funded under Chapter 386 and this chapter.
Sec.387.004. SOLICITATION OF NEW TECHNOLOGY PROPOSALS.Requires the
council from time to time to issue specific requests for proposals(RFPs))or program
opportunity notices(PONS)for technology projects to be funded under the program.
Sec.387.005. ELIGIBLE PROJECTS;PRIORITIES. (a) Requires grants awarded under
this chapter to be directed toward a balanced mix of certain technologies.
(b) Requires the council to 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. Requires the council,in considering projects under
this subsection,to 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 fir which the
project is proposed.
(c) Provides that in soliciting proposals under Section 387.004 and determining
how to allocate grant money available for projects under this chapter,the council
is required to 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) Provides that 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) Requires studies authorized under Subsection(a)(3)to be consistent with air
quality research priorities identified by the commission and conducted in an
SRC-MWN S.B.5 77(R) Page 12 of 19
• S
independent and objective manner.
Sec.387.006. EVIDENCE OF COMMERCIALIZATION POTENTIAL REQUIRED.
(a) Requires an application for a technology grant under this chapter to show clear and
compelling evidence that certain conditions are met.
(b) Requires the council to consider specifically,for each proposed technology
project application certain criteria.
Sec.387.007. COST-SHARING. Authorizes the council to require cost-sharing for
technology projects funded under this chapter but is prohibited from requiring repayment
of grant money,except that the council will require provisions for recapturing grant
money for noncompliance with grant requirements. Requires grant money recaptured
under the contract provision to be deposited in the environmental research fund and
reallocated for other projects under this chapter.
Sec.387.008. ENVIRONMENTAL RESEARCH FUND. (a) Provides that the
environmental research fund is an account in the general revenue fund. Provides that the
fund consists of money from gifts,grants,or donations to the fund for designated or
general use and from any other source designated by the legislature.
(b) Authorizes money in the environmental research fund to be used only for the
operation and projects of the council.
Sec.387.009. ADVISORY COMMITTEES. Sets forth provisions regarding advisory
committees.
Sec.387.010. REPORTS. Sets forth provisions regarding reports.
CHAPTER 388. TEXAS BUILDING ENERGY PERFORMANCE STANDARDS
Sec.388.001. LEGISLATIVE FINDINGS. Sets forth legislative intent.
Sec.388.002. DEFINITIONS. Defines"affected county,""building,""code official,"
"code-certified inspector,""commission,""international residential code,""international
energy conservation code,""laboratory,""local jurisdiction,""municipality,"
"nonattainment area,"and"single-family residential."
Sec.388.003. ADOPTION OF BUILDING ENERGY EFFICIENCY PERFORMANCE
STANDARDS. (a) Provides that to achieve energy conservation in single-family
residential construction,the energy efficiency chapter of the International Residential
Code,as it existed on May 1,2001,is adopted as the energy code in this state for
single-family residential construction.
(b) Provides that to achieve energy conservation in all other residential,
commercial,and industrial construction,the International Energy Conservation
Code as it existed on May 1,2001,is adopted as the energy code for use in this
state for all other residential,commercial,and industrial construction.
(c) Requires a municipality to establish certain procedures.
(d) Authorizes a municipality or county to establish procedures to adopt local
amendments to the International Energy Conservation Code and the energy
efficiency chapter of the International Residential Code.
(e) Prohibits local amendments from resulting in less stringent energy efficiency
requirements in nonattainment areas and in affected counties than the energy
efficiency chapter of the International Residential Code or International Energy
Conservation Code. Requires local amendments to comply with the National
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Appliance Energy Conservation Act of 1987(42 U.S.C.Sections 6291-6309),as
amended. Requires the laboratory,at the request of a municipality or county,to
determine the relative impact of proposed local amendments to an energy code,
including whether proposed amendments are substantially equal to or less
stringent than the unamended code. Provides that for the purpose of establishing
uniform requirements throughout a region,and on request of a council of
governments,a county,or a municipality,the laboratory is authorized to
recommend a climatically appropriate modification or a climate zone designation
for a county or group of counties that is different from the climate zone
designation in the unamended code. Requires the laboratory to perform certain
procedures.
(f) Requires each municipality,and each county that has established procedures
under Subsection(d),to periodically review and consider revisions made by the
International Code Council to the International Energy Conservation Code and the
energy efficiency chapter of the International Residential Code adopted after May
1,2001.
(g) Requires the laboratory to have the authority to set and collect fees to perform
certain tasks in support of the requirements in Sections 388.004,388.007,and
388.008.
(h) Provides that within the boundaries of an airport operated by a joint board
created under Subchapter D,Chapter 22,Transportation Code,the constituent
agencies of which are populous home-rule municipalities,the powers of a
municipality under this section are exclusively the powers of the joint board.
Sec.388.004. ENFORCEMENT OF ENERGY STANDARDS OUTSIDE OF
MUNICIPALITY. Provides that for construction outside of the local jurisdiction of a •
municipality certain criteria be met.
Sec.388.005. ENERGY EFFICIENCY PROGRAMS IN CERTAIN PQLITICAL
SUBDIVISIONS. (a) Defines"political subdivision."
(b) Requires each political subdivision to 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 political
subdivision.
(c) Requires each political subdivision to establish a goal to reduce the electric
consumption by the political subdivision by five percent each year for five years,
beginning January 1,2002.
(d) Requires a political subdivision that does not attain the goals under
Subsection(c)to include in the report required by Subsection(e)justification that
the political subdivision has already implemented all available measures.
(e) Requires a political subdivision annually to report to the State Energy
Conservation Office,on forms provided by that office,regarding,the political
subdivision's efforts and progress under this section. Requires the State Energy
Conservation Office to provide assistance and information to political
subdivisions to help the political subdivisions meet the goals set under this
section.
Sec.388.006. STATE ENERGY CONSERVATION OFFICE EVALUATION. Requires
the State Energy Conservation Office annually to provide the commission with an
evaluation of the effectiveness of state and political subdivision energy efficiency
programs,including programs under this chapter.
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Sec.388.007. DISTRIBUTION OF INFORMATION AND TECHNICAL
ASSISTANCE. (a) Requires the laboratory to make available to builders,designers,
engineers,and architects code implementation materials that explain the:requirements of
the International Energy Conservation Code and the energy efficiency chapter of the
International Residential Code and that describe methods of compliance acceptable to
code officials.
(b) Authorizes the materials to include software tools,simplified prescriptive
options,and other materials as appropriate. Authorizes the simplified materials to
be designed for projects in which a design professional is not involved.
(c) Authorizes the laboratory to provide local jurisdictions with technical
assistance concerning implementation and enforcement of the International
Energy Conservation Code and the energy efficiency chapter of the International
Residential Code.
Sec.388.008. DEVELOPMENT OF HOME ENERGY RATINGS. (a) Requires the
laboratory to develop a standardized report format to be used by providers of home
energy ratings. Requires the form to be designed to give potential buyers information on
a structure's energy performance,including certain equipment.
(b) Requires the laboratory to establish a public information program to inform
homeowners,sellers,buyers,and others regarding home energy ratings.
(c) Requires the home energy ratings program to be implemented by September
1,2002.
CHAPTER 389. EMISSIONS REDUCTION RECOGNITION EFFpRTS
Sec. 389.001. DEFINITION. Defines"commission."
Sec.389.002. USE OF CERTAIN INFORMATION FOR FEDERAL RECOGNITION
OF EMISSIONS REDUCTIONS. Requires the commission,using information derived
from the reports to the commission under Sections 386.205,388.003(e),,and 388.006,to
take all appropriate and necessary actions so that emissions reductions achieved by means
of activities under Chapters 386 and 388 are credited by the EPA to the appropriate
emissions reduction objectives in the state implementation plan.
SECTION 2. Amends Chapter 151C,Tax Code,by adding Section 151.0515,to read as follows:•
Sec. 151.0515. TEXAS EMISSIONS REDUCTION PLAN SURCHARGE. Defines
"equipment."
(b) Provides that in each county in this state,a surcharge is imposed on the retail
sale,lease,or rental of new or used equipment in an amount equal to one percent
of the sale price or the lease or rental amount.
(c) Requires the surcharge to be collected at the same time and in the same
manner and to be administered and enforced in the same manner as the tax
imposed under this subchapter. Requires the comptroller to adopt any additional
procedures needed for the collection,administration,and enforcement of the
surcharge authorized by this section and shall deposit all remitted surcharges to
the credit of the Texas emissions reduction plan fund.
(d) Provides that this section expires September 30,2008.
SECTION 3. Amends Chapter 152B,Tax Code,by adding Section 152.0215,to read as follows:
SRC-MWN S.B.5 77(R) Page 15 of 19
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Sec. 152.0215. TEXAS EMISSIONS REDUCTION PLAN SURCHARGE.
(a) Provides that a surcharge is imposed on every retail sale or lease of every on-road
diesel motor vehicle that is over 14,000 pounds and is of a model year 1996 or earlier and
that is sold or leased in this state. Provides that the amount of the surcharge is 2.5 percent
of the total consideration.
(b) Requires the surcharge to be collected at the same time and in the same
manner and to be administered and enforced in the same manner as the tax
imposed under this chapter. Requires the comptroller by rule to adopt any
additional procedures needed for the collection,administration,and enforcement
of the surcharge authorized by this section and to deposit all remitted surcharges
to the credit of the Texas emissions reduction plan fund.
(c) Provides that this section expires September 30,2008.
SECTION 4. Amends Section 153.203,Tax Code,to read as follows:
Sec. 153.203. EXCEPTIONS. (a)Provides that the tax imposed by this subchapter does
not apply to certain criteria.
(b) Provides that the tax imposed by this subchapter does not apply to the volume
of water,fuel ethanol,biodiesel,or mixtures thereof that are blended together with
taxable diesel fuel when the finished product sold or used is clearly identified on
the retail pump,storage tank,and sales invoice as a combination,of diesel fuel and
water,fuel ethanol,biodiesel,or mixtures thereof.
SECTION 5. Amends Section 224.153,Transportation Code,by adding Subsection(c),to
provides that a motor vehicle displaying the"low-emissions vehicle"insignia authorized by
Section 502.186 in an easily readable location on the back of the vehicle is entitled to travel in a
preferential car pool or high occupancy vehicle lane designated under this section regardless of
the number of occupants in the vehicle. Provides that this subsection expires August 31,2008.
SECTION 6. Amends Section 431.073,Transportation Code,by adding Subsection(d),to make
a conforming change.
SECTION 7. Amends Chapter 502D,Transportation Code,by adding Section 502.1675,to read
as follows:
Sec.502.1675. TEXAS EMISSIONS REDUCTION PLAN SURCHARGE.
(a) Provides that in addition to the registration fees charged under Secti n 502.167,a
surcharge is imposed on the registration of a truck-tractor or commercial motor vehicle
under that section in an amount equal to 10 percent of the total fees due for the
registration of the truck-tractor or commercial motor vehicle under that section.
(b) Requires the county tax assessor-collector to remit the surcharge collected
under this section to the comptroller at the time and in the manner prescribed by
the comptroller for deposit in the Texas emissions reduction plan.fund.
(c) Provides that this section expires August 31,2008.
SECTION 8. Amends Chapter 502D,Transportation Code,by adding Section 502.186,to read
as follows:
Sec.502.186. "LOW-EMISSIONS VEHICLE"INSIGNIA FOR CERTAIN MOTOR
VEHICLES. (a) Requires the department,at the time of registration or reregistration of
the motor vehicle,to issue a specially designed"low-emissions vehicle"insignia for a
motor vehicle that meets qualifications for the light-duty motor vehicle purchase or lease
incentives under Subchapter D,Chapter 386,Health and Safety Code.
SRC-MWN S.B.5 77(R) Page 16 of 19
• •
(b) Requires the department to issue a"low-emissions vehicle"insignia under this
section without the payment of any additional fee to a person who meets certain
criteria.
(c) Provides that this section expires August 31,2008.
SECTION 9. Amends Section 548.256,Transportation Code,by adding Subsections(c)and(d)
to read as follows:
(c) Requires the inspection station to collect a fee of$225 for each inspection performed
under this section and shall remit the fee to the department. Authorizes the inspection
station,of each fee collected,to retain$5 to cover administrative costs. Requires the
department to remit all fees collected under this subsection to the comptroller for deposit
in the Texas emissions reduction plan fund. Provides that the fee imposed by this
subsection does not apply to an inspection performed on a vehicle owned by active duty
military personnel and their dependents. Provides that this subsection expires August 31,
2008.
(d) Provides that certain persons are exempted from the requirements of
Subsection(c).
SECTION 10. Amends Chapter 548H,Transportation Code,by adding Section 548.5055,to
read as follows:
Sec.548.5055. TEXAS EMISSION REDUCTION PLAN FEE. (a) Requires the
department,in addition to other fees required by this subchapter,to fund the Texas
emissions reduction plan established under Chapter 386,Health and Safety Code,to
collect for every commercial motor vehicle required to be inspected under Subchapter D,
a fee of$10.
(b) Requires the department to remit fees collected under this section to the
comptroller at the time and in the manner prescribed by the comptroller for
deposit in the Texas emission reduction plan fund.
(c) Provides that this section expires August 31,2008.
SECTION 11. (a) Requires the commission,not later than the 45th day after the effective date
of this Act,to adopt all necessary rules required to implement programs established under this
Act.
(b) Requires the comptroller,not later than the 45th day after the effective date of this
Act,to adopt all rules necessary to enable the comptroller to carry out the comptroller's
duties under this Act.
(c) Requires the PUC,not later than the 45th day after the effective date,of this Act,to
adopt all rules necessary to carry out its duties under this Act.
(d) Requires a municipality required to establish procedures under Subsection(c),
Section 388.003,Health and Safety Code,as added by this Act,to establish the
procedures not later than September 1,2002.
SECTION 12. (a) Provides that except as provided by Subsection(b)of this section,not later
than August 1,2001,if this Act takes immediate effect,or the effective date of this Act if this
Act does not take immediate effect,the commission and the comptroller of public are required to
adopt rules necessary to implement the diesel emissions reduction incentive program established
under Subchapter C,Chapter 386,Health and Safety Code,as added by this Act,
(b) Requires the commission,not later than September 1,2001,as required by Section
386.104,Health and Safety Code,as added by this Act,to adopt criteria for setting
SRC-MWN S.B.5 77(R)
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priorities for projects eligible for grants under Subchapter C,Chapter 386,Health and
Safety Code,as added by this Act.
(c) Provides that not later than August 1,2002,the commission and the comptroller to
adopt rules necessary to implement the motor vehicle purchase or lease incentive program
established under Subchapter D,Chapter 386,Health and Safety Code,as added by this
Act.
(d) Requires the commission,not later than August 1,2002,to publish the first annual
list of vehicles eligible for light-duty motor vehicle purchase or lease incentives,as
required by Section 386.156,Health and Safety Code,as added by this Act.
SECTION 13. Provides that the vehicle purchase or lease incentives authorized by Sections
386.113 and 386.153,Health and Safety Code,as added by this Act,apply only to the sale or
lease of a vehicle that occurs on or after August 1,2002.
SECTION 14. (a) Requires the commission to develop and sponsor a contest in the state's
public schools to select the best student design for the"low-emissions vehicle"insignia
authorized by Section 502.186,Transportation Code,as added by this Act. Requires the
commission,not later than January 1,2002,to provide to each public school in the state a contest
packet containing rules and procedures for participating in the contest,an explanation of the
criteria the commission will use in selecting the best design,and a deadline for the submission of
student designs. Requires the commission to select and announce the winner of the contest not
later than the 30th day after the contest submission deadline. Authorizes the commission to
publicize and otherwise promote the contest and the winning design.
(b) Requires the commission to make the"low-emissions vehicle"insignia available to
the county tax assessor-collector of each county in the state not later than the 45th day
after the date on which the winning design is selected and announced. Requires the
county tax assessor-collector of each county in the state to begin issuing the
"low-emissions vehicle"insignia to persons who qualify for the insignia not later than the
10th working day after the date the insignia are available
SECTION 15. (a) Provides that in making the initial appointments to the Texas Emissions
Reduction Plan Advisory Board as created by Section 386.058,Health and Safety Code,as added
by this Act,the appointing authorities,by mutual agreement,are required to designate their
appointees so that seven members'terms expire February 1,2002,and eight members'terms
expire February 1,2003.
(b) Requires appointments to the Texas Emissions Reduction Plan Advisory Board to be
made not later than July 1,2001,if this Act takes immediate effect,or not later than the
effective date of this Act,if this Act does not take immediate effect.
SECTION 16. Requires the governor,as soon as practicable after the effective date of this Act,
to appoint members to the council,as created by Section 387.002,Health and Safety Code,as
added by this Act. Requires the governor,in making the initial appointments,to designate the
appointees so that three members'terms expire February 1,2003,four members'terms expire
February 1,2005,and four members'terms expire February 1,2007. •
SECTION 17. Requires the council,not later than the 30th day after the adoption of rules
governing the new technology research and development program established under Chapter 387,
Health and Safety Code,as added by this Act,to issue requests for proposals for projects to be
funded under the new technology research and development program.
SECTION 18. Requires the commission,not later than October 1,2001,to submit to the EPA a
revision to the state implementation plan that deletes the requirements of the construction shift
and the early purchase of Tier 2 and Tier 3 equipment and adds the provisions of this Act.
Requires the commission to include with the revision a report on the effectiveness of the Texas
emissions reduction plan in delivering emissions reductions to the degree sufficient to replace the
SRC-MINN S.B.5 77(R)
•
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requirements of the construction shift and the early purchase of Tier 2 and Tier 3 equipment.
SECTION 19. (a) Provides that notwithstanding any Act of the 77th Legislature,Regular
Session,2001,that purports to abolish all funds and accounts created or re-created in the state
treasury by another Act of the 77th Legislature,Regular Session,2001,the Texas emissions
reduction plan fund created by Subchapter F,Chapter 386,Health and Safety Code,as added by
this Act,and the environmental research fund created by Section 387.008,Health and Safety
Code,as added by this Act,are accounts in the general revenue fund and the accounts and money
deposited to the accounts are exempt from any Act of the 77th Legislature,Regular Session,
2001,that purports to abolish all funds and accounts created or re-created by another Act of the
77th Legislature,Regular Session,2001,and to require the deposit of money that would be
deposited to the credit of a special account or fund be deposited to the credit of the unobligated
portion of the general revenue fund unless the fund,account,or dedication is exempted under
that Act.
(b) Provides that this section prevails over any other Act of the 77th Legislature,Regular
Session,2001,regardless of the relative dates of enactment,that purport to abolish all
funds and accounts created or re-created in the state treasury by another Act of the 77th
Legislature,Regular Session,2001,and to require the deposit of money that would be
deposited to the credit of a special account or fund be deposited to the credit of the
unobligated portion of the general revenue fund unless the fund,account;or dedication is
exempted under that Act.
SECTION 20. Requires the commission to submit the final biennial plan report required by
Section 386.057,Health and Safety Code,as added by this Act,to the legislature not later than
December 1,2008.
SECTION 21. Provides that the expiration of Sections 151.0515 and 152.0215,'Tax Code,as
added by this Act,does not affect an obligation that was incurred,a violation thut occurred,or an
offense that was committed under those sections before the expiration date of these sections.
Provides that an obligation incurred,a violation that occurred,or an offense committed before
the expiration date of those sections is governed by the law in effect at the time the obligation
was incurred,the violation occurred,or the offense was committed,and the forger law is
continued in effect after the expiration date for that purpose. Provides that for purposes of this
section,a violation occurs or an offense is committed before the expiration date of those sections
if any element of the violation or offense occurs before that date.
SECTION 22. Effective date:upon passage or September 1,2001.
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77(R) SB 5 Enrolled version-*Text • Page 1 of 26
1-1 AN ACT
1-2 relating to the Texas emissions reduction plan.
1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-4 SECTION 1. (a) It is the intent of the legislature to give
1-5 the Texas Natural Resource Conservation Commission additional tools
1-6 to:
1-7 (1) assure that the air in this state is safe to
1-8 breathe and meets minimum federal standards established under the
1-9 federal Clean Air Act (42 U.S.C. Section 7407) ;
1-10 (2) develop multipollutant approaches to solving the
1-11 state's environmental problems; and
1-12 (3) adequately fund research and development that will
1-13 make the state a leader in new technologies that can solve the
1-14 state's environmental problems while creating new business and
1-15 industry in the state.
1-16 (b) Subtitle C, Title 5, Health and Safety Code, is amended
1-17 by adding Chapters 386, 387, 388, and 389 to read as follows:
1-18 CHAPTER 386. TEXAS EMISSIONS REDUCTION PLAN
1-19 SUBCHAPTER A. GENERAL PROVISIONS
1-20 Sec. 386.001. DEFINITIONS. In this chapter:
1-21 (1) "Advisory board" means the Texas Emissions
1-22 Reduction Plan Advisory Board.
1-23 (2) "Affected county" includes:
1-24 (A) Bastrop County;
1-25 (B) Bexar County;
2-1 (C) Caldwell County;
2-2 (D) Comal County;
2-3 (E) Ellis County;
2-4 (F) Gregg County;
2-5 (G) Guadalupe County;
2-6 (H) Harrison County;
2-7 (I) Hays County;
2-8 (J) Johnson County;
2-9 (K) Kaufman County;
2-10 (L) Nueces County;
2-11 (M) Parker County;
2-12 (N) Rockwall County;
2-13 (0) Rusk County;
2-14 (P) San Patricio County;
2-15 (Q) Smith County;
2-16 (R) Travis County;
2-17 (S) Upshur County;
2-18 (T) Victoria County;
2-19 (U) Williamson County; and
2-20 (V) Wilson County.
2-21 (3) "Commission" means the Texas Natural Resource
2-22 Conservation Commission.
2-23 (4) "Council" means the Texas Council on Environmental
2-24 Technology.
2-25 (5) "Fund" means the Texas emissions reduction plan
2-26 fund.
3-1 (6) "Incremental cost" means the cost of an
3-2 applicant's project less a baseline cost that would otherwise be
3-3 incurred by an applicant in the normal course of business.
3-4 Incremental costs may include added lease or fuel costs as well as
3-5 additional capital costs.
3-6 (7) "Laboratory" means the Energy Systems Laboratory
3-7 at the Texas Engineering Experiment Station of The Texas A&M
3-8 University System.
3-9 (8) "Nonattainment area means an area so designated
3-10 under Section 107 (d) of the federal Clean Air Act (42 U.S.C.
3-11 Section 7407) , as amended.
3-12 (9) "Plan" means the Texas emissions reduction plan.
3-13 (10) "Site" means the total of all stationary sources
3-14 located on one or more contiguous or adjacent properties, which are
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3-15 under common control of the same person or persons under common
3-16 control.
3-17 (11) "Utility commission" means the Public Utility
3-18 Commission of Texas.
3-19 Sec. 386.002. EXPIRATION. This chapter expires August 31,
3-20 2008.
3-21 (Sections 386.003-386.050. reserved for expansion
3-22 SUBCHAPTER B. TEXAS EMISSIONS REDUCTION PLAN
3-23 Sec. 386.051. TEXAS EMISSIONS REDUCTION PLAN. (a) The
3-24 utility commission, the commission, the comptroller, and the
3-25 council shall establish and administer the Texas emissions
3-26 reduction plan in accordance with this chapter.
4-1 (b) Under the plan, the commission, the comptroller, and the
4-2 council shall provide grants or other funding for:
4-3 (1) the diesel emissions reduction incentive program
4-4 established under Subchapter C, including for infrastructure
4-5 projects established under that subchapter;
4-6 (2) the motor vehicle purchase or lease incentive
4-7 program established under Subchapter D; and
4-8 (3) the new technology research and development
4-9 program established under Chapter 387.
4-10 (c) Under the plan, the utility commission shall provide
4-11 grants or other funding for the energy efficiency grant program
4-12 established under Subchapter E.
4-13 (d) Equipment purchased before September 1, 2001, is not
4-14 eligible for a grant or other funding under the plan.
4-15 Sec. 386.052. COMMISSION DUTIES. (a) In administering the
4-16 plan established under this chapter and in accordance with the
4-17 requirements of this chapter, the commission shall:
4-18 (1) manage plan funds and oversee the plan;
4-19 (2) produce guidelines, protocols, and criteria for
4-20 eligible projects;
4-21 (3) develop methodologies for evaluating project
4-22 cost-effectiveness;
4-23 (4) prepare reports regarding the progress and
4-24 effectiveness of the plan; and
4-25 (5) take all appropriate and necessary actions so that
4-26 emissions reductions achieved through the plan are credited by the
5-1 United States Environmental Protection Agency to the appropriate
5-2 emissions reduction objectives in the state implementation plan.
5-3 (b) Appropriate commission objectives include:
5-4 (1) achieving maximum reductions in oxides of nitrogen
5-5 to demonstrate compliance with the state implementation plan;
5-6 (2) preventing areas of the state from being in
5-7 violation of national ambient air quality standards; and
5-8 (3) achieving cost-saving and multiple benefits by
5-9 reducing emissions of other pollutants.
5-10 Sec. 386.053. GUIDELINES AND CRITERIA. (a) The commission
5-11 shall adopt grant guidelines and criteria consistent with the
5-12 requirements of this chapter.
5-13 (b) Guidelines must include protocols to calculate projected
5-14 emissions reductions, project cost-effectiveness, and safeguards to
5-15 ensure that funded projects generate emissions reductions not
5-16 otherwise required by state or federal law.
5-17 (c) The commission shall make draft guidelines and criteria
5-18 available to the public and the United States Environmental
5-19 Protection Agency before the 45th day preceding the date of final
5-20 adoption and shall hold at least one public meeting to consider
5-21 public comments on the draft guidelines and criteria before final
5-22 adoption. The public meeting shall be held in the affected state
5-23 implementation plan area, and if the guidelines affect more than
5-24 one state implementation plan area, a public meeting shall be held
5-25 in each affected state implementation plan area affected by the
5-26 guidelines.
6-1 (d) The commission may propose revisions to the guidelines
6-2 and criteria adopted under this section as necessary to improve the
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6-3 ability of the plan to achieve its goals. Revisions may include,
6-4 among other changes, adding additional pollutants or adjusting
6-5 eligible program categories, as appropriate, to ensure that
6-6 incentives established under this chapter achieve the maximum
6-7 possible emissions reductions. The commission shall make a
6-8 proposed revision available to the public before the 45th day
6-9 preceding the date of final adoption of the revision and shall hold
6-10 at least one public meeting to consider public comments on the
6-11 proposed revision before final adoption.
6-12 (e) Because the legislature finds that the current state of
6-13 air quality in the state jeopardizes the state's ability to meet
6-14 federal air quality requirements, the commission and the
6-15 comptroller may adopt emergency rules under Section 2001.034,
6-16 Government Code, with abbreviated notice, to carry out any
6-17 rulemaking necessary to implement this chapter.
6-18 (f) Except as provided by Subsection (e) , the rulemaking
6-19 requirements of Chapter 2001, Government Code, do not apply to the
6-20 adoption or revision of guidelines and criteria under this section.
6-21 Sec. 386.054. MONITORING PROCEDURES. (a) The commission
6-22 shall develop procedures for monitoring whether the emissions
6-23 reductions projected for projects awarded grants under this chapter
6-24 are actually achieved. Monitoring procedures may include project
6-25 reviews and contract requirements that the grant recipient provide
6-26 information semiannually about the project. If the commission
7-1 requires an annual report, the report shall contain a minimum
7-2 amount of information required from a recipient and the report
7-3 format shall be simple and convenient.
7-4 (b) Monitoring and reviewing procedures must be sufficient
7-5 to enable emissions reductions generated by funded projects to be
7-6 fully credited to air quality plans.
7-7 (c) The commission may revise monitoring and review
7-8 procedures from time to time as necessary or appropriate to enhance
7-9 the effectiveness of the plan.
7-10 Sec. 386.055. AVAILABILITY OF EMISSIONS REDUCTION CREDITS
7-11 GENERALLY. (a) A project funded under a program established under
7-12 this chapter may not be used for credit under any state or federal
7-13 emissions reduction credit averaging, banking, or trading program.
7-14 (b) An emissions reduction generated by a program
7-15 established under this chapter:
7-16 (1) may not be used as a marketable emissions
7-17 reduction credit or, except as provided by Section 386.056, to
7-18 offset any emissions reduction obligation; and
7-19 (2) may be used to demonstrate conformity with the
7-20 state implementation plan.
7-21 (c) A project involving a new emissions reduction measure
7-22 that would otherwise generate marketable credits under state or
7-23 federal emissions reduction credit averaging, banking, or trading
7-24 programs is not eligible for funding under a program established
7-25 under this chapter unless:
7-26 (1) the project includes the transfer of the
8-1 reductions that would otherwise be marketable credits to the state
8-2 implementation plan or the owner or operator as provided by Section
8-3 386.056; and
8-4 (2) the reductions are permanently retired.
8-5 Sec. 386.056. AVAILABILITY OF EMISSIONS REDUCTIONS IN
8-6 CERTAIN NONATTAINMENT AREAS. (a) An owner or operator of a site
8-7 located in the Houston-Galveston or Dallas-Fort Worth nonattainment
8-8 area may use emissions reductions generated by a program
8-9 established under this chapter to offset the requirements of
8-10 commission rules relating to control of air pollution from oxides
8-11 of nitrogen if:
8-12 (1) the owner or operator of the site contributes to
8-13 the fund $75, 000 for each ton of emissions that is used, not to
8-14 exceed 25 tons annually and not to exceed one-half ton per day;
8-15 (2) the owner or operator of the site demonstrates to
8-16 the commission's satisfaction that the site will be in full
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8-17 compliance with the commission's emissions reduction rules not
8-18 later than the fifth anniversary of the date on which the emissions
8-19 reductions would otherwise be required;
8-20 (3) emissions from the site are reduced by at least 80
8-21 percent from the established baseline; and
8-22 (4) the commission approves a petition by the owner or
8-23 operator that demonstrates that it is technically infeasible to
8-24 comply with the commission's emissions reduction requirements above
8-25 80 percent.
8-26 (b) Funds collected under this section shall be used to
9-1 generate emissions reductions needed to meet the commission's
9-2 attainment demonstration.
9-3 (c) The commission shall verify that emissions reductions
9-4 generated from funds collected under this section occur in the same
9-5 nonattainment area in which the site that purchased the emissions
9-6 reductions is located.
9-7 (d) The commission shall assure that the emissions
9-8 reductions funded under the programs authorized by this subchapter
9-9 used to offset commission requirements under this section benefit
9-10 the community in which the site using the emissions reductions is
9-11 located. If there are no eligible emissions reduction proiects
9-12 within the community, the commission may authorize proiects in an
9-13 adiacent community. In this subsection, "community" means a
9-14 lustice of the peace precinct.
9-15 Sec. 386.057. REVIEW AND REPORTING REQUIREMENTS. (a) The
9-16 commission, in consultation with the advisory board, annually shall
9-17 review programs established under the plan, including each prolect
9-18 funded under the plan, the amount granted for the prolect, the
9-19 emissions reductions attributable to the project, and the
9-20 cost-effectiveness of the project.
9-21 (b) Not later than December 1, 2002, and not later than
9-22 December 1 of each subsequent second year, the commission, in
9-23 consultation with the advisory board, shall publish and submit to
9-24 the legislature a biennial plan report. The report must include:
9-25 (1) the information included in the annual reviews
9-26 conducted under Subsection (a) ;
10-1 (2) specific information for individual proiects as
10-2 required by Subsection (c) ;
10-3 (3) information contained in reports received under
10-4 Sections 386.205, 388.003 (e) , and 388.006; and
10-5 (4) a summary of the commission's activities under
10-6 Section 386.052.
10-7 (c) For proiects funded as part of the infrastructure
10-8 program under Subchapter C, the report must:
10-9 (1) describe and evaluate:
10-10 (A) the infrastructure facilities funded under
10-11 that subchapter;
10-12 (B) the degree to which the funded facilities
10-13 are supporting on-road or non-road diesel proiects;
10-14 (C) the amount of fuel or electricity dispensed
10-15 for each facility; and
10-16 (D) associated emissions reductions and
10-17 cost-effectiveness; and
10-18 (2) make a finding regarding the need for additional
10-19 appropriations from the fund to improve the ability of the program
10-20 to achieve its goals.
10-21 (d) The report must:
10-22 (1) account for money received, money disbursed as
10-23 grants, money reserved for grants based on project approvals, and
10-24 any recommended transfer of money between allocations and must
10-25 estimate future demand for grant funds under the plan;
10-26 (2) describe the overall effectiveness of the plan in
11-1 delivering the emissions reductions that may be credited to air
11-2 quality plans;
11-3 (3) evaluate the effectiveness of the plan in
11-4 soliciting and evaluating project applications, providing awards in
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11-5 a timely manner, and monitoring project implementation;
11-6 (4) describe adjustments made to project selection
11-7 criteria and recommend any further needed changes or adjustments to
11-8 the grant programs, including changes in grant award criteria,
11-9 administrative procedures, or statutory provisions that would
11-10 enhance the plan's effectiveness and efficiency;
11-11 (5) describe adjustments made to the maximum
11-12 cost-effectiveness amount and award amount;
11-13 (6) evaluate the benefits of addressing additional
11-14 pollutants as part of the plan; and
11-15 (7) include legislative recommendations necessary to
11-16 improve the effectiveness of the plan.
11-17 (e) The commission shall request public comment and hold a
11-18 public meeting on each draft biennial report and, in producing a
11-19 final biennial report, shall consider and respond to all
11-20 significant comments received.
11-21 Sec. 386.058. TEXAS EMISSIONS REDUCTION PLAN ADVISORY BOARD.
11-22 (a) The Texas Emissions Reduction Plan Advisory Board consists of
11-23 15 members appointed as provided by this section and seven ex
11-24 officio members as provided by this section.
11-25 (b) The governor shall appoint to the advisory board:
11-26 (1) a representative of the trucking industry;
12-1 (2) a representative of the air conditioning
12-2 manufacturing industry;
12-3 (3) a representative of the electric utility industry;
12-4 (4) a representative of regional transportation; and
12-5 (5) a representative of the Texas Council on
12-6 Environmental Technology.
12-7 (c) The lieutenant governor shall appoint to the advisory
12-8 board:
12-9 (1) a representative of the engine manufacturing
12-10 industry;
12-11 (2) a representative of the air transportation
12-12 industry;
12-13 (3) a representative of the environmental community;
12-14 (4) a representative of the fuel cell industry; and
12-15 (5) a representative of the energy-efficient
12-16 construction industry.
12-17 (d) The speaker of the house of representatives shall
12-18 appoint to the advisory board:
12-19 (1) a representative of consumer groups;
12-20 (2) a representative of the construction industry;
12-21 (3) a representative of the automobile industry;
12-22 (4) a representative of the agriculture industry; and
12-23 (5) a representative of the fuel industry.
12-24 (e) Appointed members of the advisory board serve staggered
12-25 two-year terms. The terms of seven appointed members expire
12-26 February 1 of each even-numbered year. The terms of eight
13-1 appointed members expire February 1 of each odd-numbered year. An
13-2 appointed member may be reappointed to a subsequent term.
13-3 (f) Ex officio members of the advisory board are:
13-4 (1) the presiding officer of the senate standing
13-5 committee having primary jurisdiction over matters related to
13-6 natural resources;
13-7 (2) the presiding officer of the house standing
13-8 committee having primary jurisdiction over matters related to
13-9 environmental regulation;
13-10 (3) a representative of the commission, designated by
13-11 the executive director;
13-12 (4) a representative of the General Land Office,
13-13 designated by the Commissioner of the General Land Office;
13-14 (5) a representative of the comptroller's office,
13-15 designated by the comptroller;
13-16 (6) a representative of the Railroad Commission of
13-17 Texas, designated by the presiding officer of the agency; and
13-18 (7) a representative of the United States
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13-19 Environmental Protection Agency's Region 6 office, designated by
13-20 the United States Environmental Protection Agency Region 6
13-21 administrator.
13-22 (g) The advisory board annually shall elect a presiding
13-23 officer.
13-24 (h) The advisory board shall review the plan and shall
13-25 recommend to the commission changes to revenue sources or financial
13-26 incentives or any legislative, regulatory, or budgetary changes
14-1 needed.
14-2 (i) The commission shall provide necessary staff support to
14-3 the advisory board.
14-4 (Sections 386.059-386.100 reserved for expansion
14-5 SUBCHAPTER C. DIESEL EMISSIONS REDUCTION INCENTIVE PROGRAM
14-6 Sec. 386.101. DEFINITIONS. In this subchapter:
14-7 (1) "Cost-effectiveness" means the total dollar amount
14-8 expended divided by the total number of tons of oxides of nitrogen
14-9 emissions reduction attributable to that expenditure.
14-10 Cost-effectiveness for the program as a whole and for particular
14-11 pro-iects under the program is calculated as provided by Sections
14-12 386.105 and 386.106.
14-13 (2) "Fuel cell" means an electrochemical device that
14-14 uses fuel and oxidant to continuously generate electricity.
14-15 (3) "Motor vehicle" means a self-propelled device
14-16 designed for transporting persons or property on a public highway
14-17 that is required to be registered under Chapter 502, Transportation
14-18 Code.
14-19 (4) "Non-road diesel" means a vehicle or piece of
14-20 equipment, excluding a motor vehicle or on-road diesel, that is
14-21 powered by a non-road engine, including:
14-22 (A) non-road nonrecreational equipment and
14-23 vehicles;
14-24 (B) construction equipment;
14-25 (C) locomotives;
14-26 (D) marine vessels; and
15-1 (E) other high-emitting diesel engine categories
15-2 established by the commission.
15-3 (5) "Non-road engine" means an internal combustion
15-4 engine that is:
15-5 (A) in or on a piece of equipment that is
15-6 self-propelled or that propels itself and performs another
15-7 function, excluding a vehicle that is used solely for competition;
15-8 (B) in or on a piece of equipment that is
15-9 intended to be propelled while performing its function; or
15-10 (C) designed to be and capable of being carried
15-11 or moved from one location to another.
15-12 (6) "On-road diesel" means an on-road diesel-powered
15-13 motor vehicle that has a gross vehicle weight rating of 10,000
15-14 pounds or more.
15-15 (7) "Program" means the diesel emissions reduction
15-16 incentive program established under this subchapter.
15-17 (8) "Qualifying fuel" includes any liquid or gaseous
15-18 fuel or additives registered or verified by the United States
15-19 Environmental Protection Agency that is ultimately dispensed into a
15-20 motor vehicle or on-road or non-road diesel that provides
15-21 reductions of emissions of oxides of nitrogen beyond reductions
15-22 required by state or federal law.
15-23 (9) "Repower" means to replace an old engine powering
15-24 an on-road or non-road diesel with:
15-25 (A) a new engine that emits at least 30 percent
15-26 less than the oxides of nitrogen emissions standard required by
16-1 federal regulation for the current model year for that engine;
16-2 (B) an engine manufactured later than 1987 that
16-3 emits at least 30 percent less than the oxides of nitrogen
16-4 emissions standard emitted by a new engine certified to the
16-5 baseline oxides of nitrogen emissions standard for that engine;
16-6 (C) an engine manufactured before 1988 that
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16-7 emits not more than 50 percent of the oxides of nitrogen emissions
16-8 standard emitted by a new engine certified to the baseline oxides
16-9 of nitrogen emissions standard for that engine; or
16-10 (D) electric motors, drives, or fuel cells.
16-11 (10) "Retrofit" means to equip an engine and fuel
16-12 system with new emissions-reducing parts or technology verified by
16-13 the United States Environmental Protection Agency after manufacture
16-14 of the original engine and fuel system.
16-15 Sec. 386.102. PROGRAM. (a) The commission shall establish
16-16 and administer a diesel emissions reduction incentive program.
16-17 Under the program, the commission shall provide grants for eligible
16-18 projects to offset the incremental cost of projects that reduce
16-19 emissions of oxides of nitrogen from high-emitting diesel sources
16-20 in nonattainment areas and affected counties of the state. The
16-21 commission shall determine the eligibility of projects.
16-22 (b) Projects that may be considered for a grant under the
16-23 program include:
16-24 (1) purchase or lease of non-road diesels;
16-25 (2) emissions-reducing retrofit projects for on-road
16-26 or non-road diesels;
17-1 (3) emissions-reducing repower projects for on-road or
17-2 non-road diesels;
17-3 (4) purchase and use of emissions-reducing add-on
17-4 equipment for on-road or non-road diesels;
17-5 (5) development and demonstration of practical,
17-6 low-emissions retrofit technologies, repower options, and advanced
17-7 technologies for on-road or non-road diesels with lower emissions
17-8 of oxides of nitrogen;
17-9 (6) use of qualifying fuel; and
17-10 (7) implementation of infrastructure projects.
17-11 (c) A project listed in Subsection (b) is not eligible if it
17-12 is required by any state or federal law, rule or regulation,
17-13 memorandum of agreement, or other legally binding document. This
17-14 subsection does not apply to:
17-15 (1) an otherwise qualified project, regardless of the
17-16 fact that the state implementation plan assumes that the change in
17-17 equipment, vehicles, or operations will occur, if on the date the
17-18 grant is awarded the change is not required by any state or federal
17-19 law, rule or regulation, memorandum of agreement, or other legally
17-20 binding document; or
17-21 (2) the purchase of an on-road diesel or equipment
17-22 required only by local law or regulation or by corporate or
17-23 controlling board policy of a public or private entity.
17-24 Sec. 386.103. APPLICATION FOR GRANT. (a) Any person as
17-25 defined by Section 382.003 that owns one or more on-road or
17-26 non-road diesels that operate primarily within a nonattainment area
18-1 or affected county of this state or that otherwise contributes to
18-2 the state inventory of emissions of oxides of nitrogen may apply
18-3 for a grant under the program.
18-4 (b) An application for a grant under this subchapter must be
18-5 made on an application provided by the commission and must contain
18-6 information required by the commission, including:
18-7 (1) a detailed description of the proposed project;
18-8 (2) information necessary for the commission to
18-9 determine whether the project meets eligibility requirements for
18-1Q the type of project proposed, including a statement of the amounts
18-11 of any other public financial assistance the project will receive;
18-12 and
18-13 (3) other information the commission may require.
18-14 Sec. 386.104. ELIGIBILITY REQUIREMENTS. (a) The commission
18-15 shall establish criteria for setting priorities for projects
18-16 eligible to receive grants under this subchapter. The commission
18-17 shall review and may modify the criteria and priorities as
18-18 appropriate.
18-19 (b) A proposed project as described in Section 386.102 must
18-20 meet the requirements of this section to be eligible for a grant
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18-21 under the program.
18-22 (c) For a proposed project as described by Section
18-23 386.102 (b) , other than a project involving a marine vessel or
18-24 engine, not less than 75 percent of vehicle miles traveled or hours
18-25 of operation projected for the five years immediately following the
18-26 award of a grant must be projected to take place in a nonattainment
19-1 area or affected county of this state. For a proposed project
19-2 involving a marine vessel or engine, the vessel or engine must be
19-3 operated in the intercoastal waterways or bays adjacent to a
19-4 nonattainment area or affected county of this state for a
19-5 sufficient amount of time over the lifetime of the project, as
19-6 determined by the commission, to meet the cost-effectiveness
19-7 requirements of Section 386.105.
19-8 (d) Each proposed project must meet the cost-effectiveness
19-9 requirements of Sections 386.105 and 386.106.
19-10 (e) A proposed repower project must exceed commission
19-11 requirements relating to baseline emissions levels of the engines
19-12 being replaced under the project.
19-13 (f) A proposed retrofit, repower, or add-on equipment
19-14 project must document, in a manner acceptable to the commission, a
19-15 reduction in emissions of oxides of nitrogen of at least 30 percent
19-16 compared with the baseline emissions adopted by the commission for
19-17 the relevant engine year and application. After study of available
19-18 emissions reduction technologies, after public notice and comment,
19-19 and after consultation with the advisory board, the commission may
19-20 revise the minimum percentage reduction in emissions of oxides of
19-21 nitrogen required by this subsection to improve the ability of the
19-22 program to achieve its goals.
19-23 (g) If a baseline emissions standard does not exist for
19-24 on-road or non-road diesels in a particular category, the
19-25 commission, for purposes of this subchapter, shall establish an
19-26 appropriate baseline emissions level for comparison purposes.
20-1 (h) The commission may approve payments to offset the
20-2 incremental cost, over the expected lifetime of the motor vehicle
20-3 or on-road or non-road diesel, of the use of qualifying fuel in a
20-4 motor vehicle or on-road or non-road diesel if the proposed project
20-5 as a whole, including the incremental fuel cost, meets the
20-6 requirements of this subchapter. The commission shall develop an
20-7 appropriate method for converting incremental fuel costs over the
20-8 lifetime of the motor vehicle or on-road or non-road diesel into an
20-9 initial cost for purposes of determining cost-effectiveness as
20-10 required by Section 386.105.
20-11 Sec. 386.105. CALCULATION OF COST-EFFECTIVENESS. (a) In
20-12 calculating cost-effectiveness, one-time grants of money at the
20-13 beginning of a project shall be annualized using a time value of
20-14 public funds or discount rate determined for each project by the
20-15 commission, taking into account the interest rate on bonds,
20-16 interest earned by state funds, and other factors the commission
20-17 considers appropriate.
20-18 (b) The commission shall establish reasonable methodologies
20-19 for evaluating project cost-effectiveness consistent with
20-20 Subsection (a) and with accepted methods.
20-21 (c) The commission shall develop protocols for calculating
20-22 oxides of nitrogen emissions reductions not otherwise required by
20-23 state or federal law in nonattainment areas and affected counties
20-24 of this state from representative project types over the life of
20-25 the projects.
20-26 (d) The commission may include in cost-effectiveness
21-1 determinations only reductions in oxides of nitrogen emissions that
21-2 are achieved in nonattainment areas and affected counties of this
21-3 state.
21-4 Sec. 386.106. COST-EFFECTIVENESS CRITERIA; DETERMINATION OF
21-5 GRANT AMOUNT. (a) Except as provided by Section 386.107, the
21-6 commission may not award a grant for a proposed project the
21-7 cost-effectiveness of which, calculated in accordance with Section
21-8 386.105 and criteria developed under that section, exceeds $13, 000
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21-9 per ton of oxides of nitrogen emissions reduced in the
21-10 nonattainment area or affected county for which the project is
21-11 proposed. This subsection does not restrict commission authority
21-12 under other law to require emissions reductions with a
21-13 cost-effectiveness that exceeds $13,000 per ton.
21-14 (b) The commission may not award a grant that, net of taxes,
21-15 provides an amount that exceeds the incremental cost of the
21-16 proposed project.
21-17 (c) The commission shall adopt guidelines for capitalizing
21-18 incremental lease costs so those costs may be offset by a grant
21-19 under this subchapter.
21-20 (d) In determining the amount of a grant under this
21-21 subchapter, the commission shall reduce the incremental cost of a
21-22 proposed new purchase, lease, retrofit, repower, or add-on
21-23 equipment project by the value of any existing financial incentive
21-24 that directly reduces the cost of the proposed project, including
21-25 tax credits or deductions, other grants, or any other public
21-26 financial assistance.
22-1 Sec. 386.107. ADJUSTMENT TO MAXIMUM COST-EFFECTIVENESS
22-2 AMOUNT AND AWARD AMOUNT. After study of available emissions
22-3 reduction technologies and costs and after public notice and
22-4 comment, the commission, in consultation with the advisory board,
22-5 may change the values of the maximum grant award criteria
22-6 established in Section 386.106 to account for inflation or to
22-7 improve the ability of the program to achieve its goals.
22-8 Sec. 386.108. INFRASTRUCTURE PROJECTS. (a) The commission
22-9 shall provide funding under Section 386.252(a) (1) for
22-10 infrastructure projects.
22-11 (b) To implement the requirement of Subsection (a) , the
22-12 commission shall:
22-13 (1) solicit applications for a balanced mix of
22-14 projects involving fueling and electrification infrastructure that
22-15 is linked to motor vehicle and on-road and non-road diesel projects
22-16 and consistent with program goals;
22-17 (2) coordinate infrastructure projects with motor
22-18 vehicle and on-road and non-road diesel projects representing a
22-19 broad range of fuels, technologies, and applications as appropriate
22-20 and consistent with the goals of this chapter;
22-21 (3) adopt guidelines and criteria for infrastructure
22-22 projects to be funded under the program; and
22-23 (4) oversee, monitor, and evaluate the use of grants
22-24 awarded under this program and report on the effectiveness of this
22-25 grant program in relation to the purposes and goals of this
22-26 chapter.
23-1 Sec. 386.109. ELIGIBLE INFRASTRUCTURE PROJECTS. The
23-2 commission may consider for funding under Section 386.108:
23-3 (1) the purchase and installation at a site of
23-4 equipment that is designed primarily to dispense qualifying fuel,
23-5 other than standard gasoline or diesel, or the purchase of on-site
23-6 mobile fueling equipment;
23-7 (2) infrastructure projects, including auxiliary power
23-8 units, designed to dispense electricity to motor vehicles and
23-9 on-road and non-road diesels; and
23-10 (3) a project that involves a technology that allows a
23-11 vehicle to replace with electric power, while the vehicle is
23-12 parked, the power normally supplied by the vehicle's internal
23-13 combustion engine.
23-14 Sec. 386.110. APPLICATION PACKAGE FOR INFRASTRUCTURE
23-15 PROJECTS. (a) The commission shall develop a simple, standardized
23-16 application package for infrastructure project grants under this
23-17 subchapter. The package must include:
23-18 (1) an application form;
23-19 (2) a brief description of:
23-20 (A) the program;
23-21 (B) the projects that are eligible for available
23-22 funding;
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23-23 (C) the selection criteria and evaluation
_ 23-24 process; and
23-25 (D) the required documentation;
23-26 (3) the name of a person or office to contact for more
24-1 information;
24-2 (4) an example of the contract that an applicant will
24-3 be required to execute before receiving a grant; and
24-4 (5) any other information the commission considers
24-5 useful to inform the applicant and expedite the application
24-6 process.
24-7 (b) The application form shall require as much information
24-8 as the commission determines is necessary to properly evaluate each
24-9 project but shall otherwise minimize the information required.
24-10 (c) The commission may not require an applicant, as part of
24-11 the application process, to calculate tons of emissions reduced or
24-12 cost-effectiveness.
24-13 Sec. 386.111. APPLICATION REVIEW PROCEDURES. (a) The
24-14 commission shall review an application for a grant for a project
24-15 authorized under this subchapter, including an application for a
24-16 grant for an infrastructure project, immediately on receipt of the
24-17 application. If the commission determines that an application is
24-18 incomplete, the commission shall notify the applicant, not later
24-19 than the 15th working day after the date on which the commission
24-20 received the application, with an explanation of what is missing
24-21 from the application. The commission shall record the date and
24-22 time of receipt of each application the commission determines to be
24-23 complete and shall evaluate the completed application according to
24-24 the appropriate project criteria. Subject to available funding,
24-25 the commission shall make a final determination on an application
24-26 as soon as possible and not later than the 60th working day after
25-1 the date the application is determined to be complete.
25-2 (b) The commission shall make every effort to expedite the
25-3 application review process and to award grants to qualified
25-4 projects in a timely manner. To the extent possible, the
25-5 commission shall coordinate project review and approval with any
25-6 timing constraints related to project purchases or installations to
25-7 be made by an applicant.
25-8 (c) The commission may deny an application for a project
25-9 that does not meet the applicable project criteria or that the
25-10 commission determines is not made in good faith, is not credible,
25-11 or is not in compliance with this chapter and the goals of this
25-12 chapter.
25-13 (d) Subject to availability of funds, the commission shall
25-14 award a grant under this subchapter in conjunction with the
25-15 execution of a contract that obligates the commission to make the
25-16 grant and the recipient to perform the actions described in the
25-17 recipient's grant application. The contract must incorporate
25-18 provisions for recapturing grant money in proportion to any loss of
25-19 emissions reductions or underachievement in dispensing qualifying
25-20 fuel compared with the volume of emissions reductions or amount of
25-21 fuel dispensed that was projected in awarding the grant. Grant
25-22 money recaptured under the contract provision shall be deposited in
25-23 the fund and reallocated for other projects under this subchapter.
25-24 (e) An applicant may seek reimbursement for qualifying
25-25 equipment installed after the effective date of this program.
25-26 Sec. 386.112. ON-ROAD DIESEL PURCHASE OR LEASE INCENTIVE.
26-1 (a) The commission shall develop a purchase or lease incentive
26-2 program for new on-road diesels and shall adopt rules necessary to
26-3 implement the program and to reimburse a purchaser or lessee of a
26-4 new on-road diesel that is eligible for reimbursement of
26-5 incremental costs under this subchapter.
26-6 (b) The program shall authorize statewide incentives for the
26-7 reimbursement of incremental costs for the purchase or lease,
26-8 according to the schedule provided by Section 386.113, of new
26-9 on-road diesels that are certified by the United States
26-10 Environmental Protection Agency to an emissions standard provided
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26-11 by Section 386.113 if the purchaser or lessee of the on-road diesel
26-12 agrees to register the vehicle in this state and to operate the
26-13 on-road diesel in this state for not less than 75 percent of the
26-14 on-road diesel's annual mileage.
26-15 (c) Only one incentive will be provided for each new on-road
26-16 diesel. The incentive shall be provided to the purchaser if the
26-17 on-road diesel is not purchased for the purpose of leasing the
26-18 on-road diesel to another person, or to the lessee and not to the
26-19 purchaser if the on-road diesel is purchased for the purpose of
26-20 leasing the on-road diesel to another person. A lease incentive
26-21 for a new on-road diesel shall be prorated based on an eight-year
26-22 lease term.
26-23 Sec. 386.113. ON-ROAD DIESEL PURCHASE OR LEASE INCENTIVE
26-24 SCHEDULE. A new on-road diesel is eligible for reimbursement of
26-25 incremental costs according to the following schedule:
27-1 Incentive emissions standard Reimbursement amount
27-2 (oxides of nitrogen)
27-3 Date of manufacture Date of manufacture
27-4 (2001) (10/01/02-9/30/06)
27-5 2.5 q/bhp-hr NOx 1.2 q/bhp-hr NOx up to $15, 000
27-6 1.5 g/bhp-hr NOx 0.5 q/bhp-hr NOx up to $25,000
27-7 0.0 q/bhp-hr NOx 0.0 g/bhp-hr NOx up to $25,000
27-8 Sec. 386.114. MODIFICATION OF INCENTIVE EMISSIONS STANDARDS.
27-9 After evaluating new technologies and after public notice and
27-10 comment, the commission, in consultation with the advisory board,
27-11 may change the incentive emissions standards established by Section
27-12 386.113 to improve the ability of the program to achieve its goals.
27-13 (Sections 386.115-386.150 reserved for expansion
27-14 SUBCHAPTER D. MOTOR VEHICLE PURCHASE OR LEASE INCENTIVE PROGRAM
27-15 Sec. 386.151. DEFINITIONS. In this subchapter:
27-16 (1) "Bin" or "emissions bin" means a set of emissions
27-17 standards applicable to exhaust pollutants measured on the Federal
27-18 Test Procedure (FTP) according to 40 C.F.R. Section 86.1811-04.
27-19 (2) "Light-duty motor vehicle" means a motor vehicle
27-20 with a gross vehicle weight rating of less than 10,000 pounds.
27-21 (3) "Motor vehicle" means a self-propelled device
27-22 designed for transporting persons or property on a public highway
27-23 that is required to be registered under Chapter 502, Transportation
27-24 Code.
27-25 Sec. 386.152. COMPTROLLER AND COMMISSION DUTIES REGARDING
27-26 LIGHT-DUTY MOTOR VEHICLE PURCHASE OR LEASE INCENTIVE PROGRAM.
28-1 (a) The comptroller and the commission shall develop a purchase or
28-2 lease incentive program for new light-duty motor vehicles and shall
28-3 adopt rules necessary to implement the program.
28-4 (b) The program shall authorize statewide incentives for the
28-5 purchase or lease, according to the schedule provided by Section
28-6 386.153, of new light-duty motor vehicles that are certified by the
28-7 United States Environmental Protection Agency to meet an emissions
28-8 standard that is at least as stringent as those provided by Section
28-9 386.153 for a purchaser or lessee who agrees to register the
28-10 vehicle in this state and to operate the vehicle in this state for
28-11 not less than 75 percent of the vehicle's annual mileage.
28-12 (c) Only one incentive will be provided for each new
28-13 light-duty motor vehicle. The incentive shall be provided to the
28-14 lessee and not to the purchaser if the motor vehicle is purchased
28-15 for the purpose of leasing the vehicle to another person.
28-16 Sec. 386.153. LIGHT-DUTY MOTOR VEHICLE PURCHASE OR LEASE
28-17 INCENTIVE SCHEDULE. A new light-duty motor vehicle is eligible for
28-18 an incentive according to the following schedule:
28-19 Incentive emissions standard and incentive amount
28-20 Model year 2003-2007
28-21 Bin 4 $1,250
28-22 Bin 3 $2,225
28-23 Bin 2 $3,750
28-24 Bin 1 $5,000
28-25 Sec. 386.154. MODIFICATION OF INCENTIVE EMISSIONS STANDARDS.
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28-26 After evaluating new technologies and after public notice and
29-1 comment, the commission, in consultation with the advisory board,
29-2 may change the incentive emissions standards established by Section
29-3 386.153 to improve the ability of the program to achieve its goals.
29-4 Sec. 386.155. MANUFACTURER'S REPORT. At the beginning of
29-5 but not later than July 1 of each year preceding the vehicle model
29-6 year, a manufacturer of motor vehicles shall provide to the
29-7 commission a list of the new vehicle models that the manufacturer
29-8 intends to sell in this state during that model year that meet the
29-9 incentive emissions standards established by the schedules set out
29-10 under Section 386.153. The manufacturer may supplement the list
29-11 provided to the commission under this section as necessary to
29-12 include additional new vehicle models the manufacturer intends to
29-13 sell in this state during the model year.
29-14 Sec. 386.156. LIST OF ELIGIBLE MOTOR VEHICLES. (a) On
29-15 August 1 each year the commission shall publish and provide to the
29-16 comptroller a list of the new model motor vehicles as listed for
29-17 the commission under Section 386.155. The commission shall publish
29-18 and provide to the comptroller supplements to that list as
29-19 necessary to include additional new vehicle models listed in a
29-20 supplement to the original list provided by a manufacturer under
29-21 Section 386.155.
29-22 (b) The comptroller shall distribute the list of eligible
29-23 motor vehicles to all new motor vehicle dealers and leasing agents
29-24 in this state.
29-25 Sec. 386.157. VEHICLE EMISSIONS INFORMATION BROCHURE.
29-26 (a) To enable consumers to make informed purchase decisions based
30-1 on the relative amounts of emissions produced by motor vehicles
30-2 within each vehicle class, the motor vehicle manufacturer shall
30-3 publish and make available to its dealers, for distribution to the
30-4 dealers' customers, a brochure that includes the list of eligible
30-5 motor vehicles prepared under Section 386.156 and the emissions and
30-6 air pollution ratings, not including fuel efficiency, for each
30-7 eligible motor vehicle based on data from the United States
30-8 Environmental Protection Agency's Green Vehicle Guide. The
30-9 brochure must also clearly present information on the emissions and
30-10 air pollution ratings, not including fuel efficiency, for each
30-11 motor vehicle on the list of eligible motor vehicles prepared by
30-12 the manufacturer under Section 386.155, based on the motor
30-13 vehicle's Bin certification number. The brochure must indicate
30-14 where the Bin certification information is located on each motor
30-15 • vehicle and must clearly explain how to interpret that information.
30-16 The brochure must also tell the consumer how to obtain further
30-17 information from the United States Environmental Protection
30-18 Agency's Green Vehicle Guide. The commission by rule shall
30-19 establish standards for compliance with this subsection.
30-20 (b) A new motor vehicle dealer or leasing agent shall make
30-21 available to the dealer's or leasing agent's prospective purchasers
30-22 or lessees a copy of the list prepared and published by the
30-23 commission under Section 386.156.
30-24 Sec. 386.158. LIGHT-DUTY MOTOR VEHICLE PURCHASE OR LEASE
30-25 INCENTIVE. (a) A person who purchases or leases a new light-duty
30-26 motor vehicle that has been listed under Section 386.155 is
31-1 eligible for an incentive under this subchapter.
31-2 (b) A lease incentive for a new light-duty motor vehicle
31-3 shall be prorated based on a four-year lease term.
31-4 (c) To receive money under an incentive program provided by
31-5 this subchapter, the purchaser or lessee of a new light-duty motor
31-6 vehicle eligible for an incentive under this subchapter shall apply
31-7 for the incentive in the manner provided by law or by rule of the
31-8 comptroller.
31-9 Sec. 386.159. PUBLIC INFORMATION. (a) The commission in
31-10 cooperation with the comptroller shall develop and implement a
31-11 program to inform the public and new motor vehicle dealers and
31-12 leasing agents about the motor vehicle purchase or lease incentive
31-13 program.
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31-14 (b) The Texas Department of Transportation shall insert a
31-15 notice describing the light-duty motor vehicle purchase or lease
31-16 incentive program with each annual vehicle registration renewal
31-17 notice. To help a consumer to make informed new vehicle purchase
31-18 decisions, the notice must also include a statement that
31-19 information on eligible motor vehicles and on the emissions and air
31-20 pollution ratings, not including fuel efficiency, for eligible
31-21 motor vehicles may be obtained from the commission or from new
31-22 motor vehicle dealers and leasing agents. The notice must state
31-23 where the Bin certification information is located on each eligible
31-24 motor vehicle, must clearly explain how to interpret that
31-25 information, and must tell the consumer how to obtain further
31-26 information from the United States Environmental Protection
32-1 Agency's Green Vehicle Guide.
32-2 Sec. 386.160. COMPTROLLER TO ACCOUNT FOR MOTOR VEHICLE
32-3 PURCHASE OR LEASE INCENTIVES. (a) The comptroller by rule shall
32-4 develop a method to administer and account for the motor vehicle
32-5 purchase or lease incentives authorized by this subchapter and to
32-6 pay incentive money to the purchaser or lessee of a new motor
32-7 vehicle, on application of the purchaser or lessee as provided by
32-8 this subchapter.
32-9 (b) The comptroller shall develop and publish forms and
32-10 instructions for the purchaser or lessee of a new motor vehicle to
32-11 use in applying to the comptroller for an incentive payment under
32-12 this subchapter. The comptroller shall make the forms available to
32-13 new motor vehicle dealers and leasing agents. Dealers and leasing
32-14 agents shall make the forms available to their prospective
32-15 purchasers or lessees.
32-16 (c) In addition to other forms developed and published under
32-17 this section, the comptroller shall develop and publish a
32-18 verification form by which, with information provided by the dealer
32-19 or leasing agent, the comptroller can verify the sale of a vehicle
32-20 covered by this subchapter. The verification form shall include at
32-21 least the name of the purchaser, the vehicle identification number
32-22 of the vehicle involved, the date of the purchase, and the name of
32-23 the new motor dealer or leasing agent involved in the transaction.
32-24 At the time of sale or lease of a vehicle eligible for an incentive
32-25 under this subchapter, the dealer or leasing agent shall complete
32-26 the verification form supplied to the dealer by the comptroller.
33-1 The purchaser or lessee shall include the completed verification
33-2 form as part of the purchaser's application for an incentive. The
33-3 dealer shall maintain a copy of the completed verification form for
33-4 at least two years from the date of the transaction.
33-5 Sec. 386.161. REPORT TO COMMISSION; SUSPENSION OF PURCHASE
33-6 OR LEASE INCENTIVES. (a) The comptroller shall report to the
33-7 commission annually regarding motor vehicle purchase or lease
33-8 incentives.
33-9 (b) If the balance available for motor vehicle purchase or
33-10 lease incentives falls below 15 percent of the total allocated for
33-11 the incentives during that fiscal year, the comptroller by order
33-12 shall suspend the incentives until the date the comptroller can
33-13 certify that the balance available in the fund for incentives is an
33-14 amount adequate to resume the incentives or the beginning of the
33-15 next fiscal year, whichever is earlier. If the comptroller
33-16 suspends the incentives, the comptroller shall immediately notify
33-17 the commission and all new motor vehicle dealers and leasing agents
33-18 that the incentives have been suspended.
33-19 (c) The comptroller shall establish a toll-free telephone
33-20 number available to motor vehicle dealers and leasing agents for
33-21 the dealers and agents to call to verify that incentives are
33-22 available. The comptroller may provide for issuing verification
33-23 numbers over the telephone line.
33-24 (d) Reliance by a dealer or leasing agent on information
33-25 provided by the comptroller or commission is a complete defense to
33-26 an action involving or based on eligibility of a vehicle for an
34-1 incentive or availability of vehicles eligible for an incentive.
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34-2 (Sections 386.162-386.200 reserved for expansion
34-3 SUBCHAPTER E. ENERGY EFFICIENCY GRANT PROGRAM
34-4 Sec. 386.201. DEFINITIONS. In this subchapter:
34-5 (1) "Electric cooperative" has the meaning assigned by
34-6 Section 11.003, Utilities Code.
34-7 (2) "Electric utility" has the meaning assigned by
34-8 Section 31.002, Utilities Code.
34-9 (3) "Municipally owned utility" has the meaning
34-10 assigned by Section 11.003, Utilities Code.
34-11 Sec. 386.202. GRANT PROGRAM. (a) The utility commission
34-12 shall develop an energy efficiency grant program using program
34-13 templates that are consistent with rules of the utility commission
34-14 adopted under Section 39.905, Utilities Code.
34-15 (b) Programs approved under this subchapter must include the
34-16 retirement of materials and appliances that contribute to peak
34-17 energy demand to ensure the reduction of energy demand, peak loads,
34-18 and associated emissions of air contaminants.
34-19 Sec. 386.203. ADMINISTRATION OF GRANTS. Money allocated by
34-20 the utility commission under the grant program developed under this
34-21 subchapter shall be administered by electric utilities, electric
34-22 cooperatives, and municipally owned utilities. A participating
34-23 electric utility, electric cooperative, or municipally owned
34-24 utility shall be reimbursed from the fund for costs incurred by the
34-25 utility in administering the energy efficiency grant program
34-26 established under this subchapter. Reimbursable administrative
35-1 costs of a participating entity may not exceed 10 percent of the
35-2 entity's total program budget before January 1, 2003, and may not
35-3 exceed five percent of the entity's total program budget on or
35-4 after that date.
35-5 Sec. 386.204. LIMITATION ON DUTY OF PARTICIPATING UTILITY.
35-6 (a) This subchapter obligates an electric utility, electric
35-7 cooperative, or municipally owned utility only to administer the
35-8 funding allocated to the entity by the utility commission in
35-9 accordance with this subchapter.
35-10 (b) The obligation of an electric utility under this
35-11 subchapter is separate and apart from, and does not affect an
35-12 obligation of the electric utility under, Section 39.905, Utilities
35-13 Code, or a rule adopted under that section.
35-14 (c) Emissions reductions achieved by a program implemented
35-15 under this subchapter may not be used by an electric utility,
35-16 electric cooperative, or municipally owned utility to satisfy an
35-17 obligation to reduce air contaminant emissions under state or
35-18 federal law or a state or federal regulatory program.
35-19 Sec. 386.205. EVALUATION OF STATE ENERGY EFFICIENCY
35-20 PROGRAMS. In cooperation with the laboratory, the utility
35-21 commission shall provide an annual report to the commission that,
35-22 by county, quantifies the reductions of energy demand, peak loads,
35-23 and associated emissions of air contaminants achieved from the
35-24 programs implemented under this subchapter and from those
35-25 implemented under Section 39.905, Utilities Code.
36-1 (Sections 386.206-386.250 reserved for expansion
36-2 SUBCHAPTER F. TEXAS EMISSIONS REDUCTION PLAN FUND
36-3 Sec. 386.251. FUND. (a) The Texas emissions reduction plan
36-4 fund is an account in the state treasury.
36-5 (b) The fund is administered by the comptroller for the
36-6 benefit of the plan established under this chapter. The fund is
36-7 exempt from the application of Section 403.095, Government Code.
36-8 Interest earned on the fund shall be credited to the fund.
36-9 (c) The fund consists of:
36-10 (1) the contributions, fees, and surcharges under:
36-11 (A) Section 386.056;
36-12 (B) Sections 151.0515 and 152.0215, Tax Code;
36-13 and
36-14 (C) Sections 502.1675 and 548.256(c) ,
36-15 Transportation Code; and
36-16 (2) grant money recaptured under Section 386.111(d) .
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36-17 Sec. 386.252. USE OF FUND. (a) Money in the fund may be
36-18 used only to implement and administer programs established under
36-19 the plan and shall be allocated as follows:
36-20 (1) for the diesel emissions reduction incentive
36-21 program, 72 percent of the money in the fund, of which not more
36-22 than three percent may be used for infrastructure projects and not
36-23 more than 15 percent may be used for on-road diesel purchase or
36-24 lease incentives;
36-25 (2) for the motor vehicle purchase or lease incentive
36-26 program, 10 percent of the money in the fund;
37-1 (3) for the energy efficiency grant program, 7.5
37-2 percent of the money in the fund;
37-3 (4) for the new technology research and development
37-4 program, 7.5 percent of the money in the fund, of which up to
37-5 $250,000 is allocated for administration, up to $200,000 is
37-6 allocated for a health effects study, and $500, 000 is to be
37-7 deposited in the state treasury to the credit of the clean air
37-8 account created under Section 382.0622 to supplement funding for
37-9 air quality planning activities in affected counties; and
37-10 (5) for administrative costs incurred by the utility
37-11 commission, the commission, the comptroller, and the laboratory,
37-12 three percent.
37-13 (b) Up to 15 percent of the money allocated under Subsection
37-14 (a) to a particular program and not expended under that program by
37-15 March 1 of the second fiscal year of a fiscal biennium may be used
37-16 for another program under the plan as determined by the commission
37-17 in consultation with the advisory board.
37-18 CHAPTER 387. NEW TECHNOLOGY RESEARCH
37-19 AND DEVELOPMENT PROGRAM
37-20 Sec. 387.001. DEFINITION. In this chapter, "program" means
37-21 the new technology research and development program.
37-22 Sec. 387.002. TEXAS COUNCIL ON ENVIRONMENTAL TECHNOLOGY.
37-23 (a) The Texas Council on Environmental Technology consists of 11
37-24 members appointed by the governor to represent the academic and
37-25 nonprofit communities. The governor shall designate from the
37-26 council members a presiding officer of the council. Members of the
38-1 council serve six-year staggered terms, with the terms of three or
38-2 four members expiring February 1 of each odd-numbered year.
38-3 (b) The Texas Council on Environmental Technology shall work
38-4 to enhance the entrepreneurial and inventive spirit of Texans to
38-5 assist in developing solutions to air, water, and waste problems
38-6 bv:
38-7 (1) identifying and evaluating new technologies and
38-8 seeking the approval of the United States Environmental Protection
38-9 Agency for and facilitating the deployment of those technologies;
38-10 and
38-11 (2) assisting the commission and the United States
38-12 Environmental Protection Agency in the process of ensuring
38-13 credit for new, innovative, and creative technological
38-14 advancements.
38-15 (c) Council offices and projects shall be housed at the
38-16 Center for Energy and Environmental Resources at The University of
38-17 Texas at Austin.
38-18 Sec. 387.003. NEW TECHNOLOGY RESEARCH AND DEVELOPMENT
38-19 PROGRAM. (a) The Texas Council on Environmental Technology shall
38-20 establish and administer a new technology research and development
38-21 program as provided by this chapter.
38-22 (b) Under the program, the Texas Council on Environmental
38-23 Technology shall provide grants to be used to support development
38-24 of emissions-reducing technologies that may be used for projects
38-25 eligible for awards under Chapter 386 and other new technologies
38-26 that show promise for commercialization. The primary objective of
39-1 this chapter is to promote the development of commercialization
39-2 technologies that will support projects that may be funded under
39-3 Chapter 386 and this chapter.
39-4 Sec. 387.004. SOLICITATION OF NEW TECHNOLOGY PROPOSALS. The
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39-5 Texas Council on Environmental Technology from time to time shall
39-6 issue specific requests for proposals (RFPs) or program opportunity
39-7 notices (PONS) for technology projects to be funded under the
39-8 program.
39-9 Sec. 387.005. ELIGIBLE PROJECTS; PRIORITIES. (a) Grants
39-10 awarded under this chapter shall be directed toward a balanced mix
39-11 of:
39-12 (1) retrofit and add-on technologies to reduce
39-13 emissions from the existing stock of vehicles targeted by the Texas
39-14 emissions reduction plan;
39-15 (2) advanced technologies for new engines and vehicles
39-16 that produce very-low or zero emissions of oxides of nitrogen,
39-17 including stationary and mobile fuel cells;
39-18 (3) studies to improve air quality assessment and
39-19 modeling;
39-20 (4) advanced technologies that promote increased
39-21 building and appliance energy performance; and
39-22 (5) advanced technologies that reduce emissions from
39-23 other significant sources.
39-24 (b) The Texas Council on Environmental Technology shall
39-25 identify and evaluate and may consider making grants for technology
39-26 projects that would allow qualifying fuels to be produced from
40-1 energy resources in this state. In considering projects under this
40-2 subsection, the council shall give preference to projects involving
40-3 otherwise unusable energy resources in this state and producing
40-4 qualifying fuels at prices lower than otherwise available and low
40-5 enough to make the projects to be funded under the program
40-6 economically attractive to local businesses in the area for which
40-7 the project is proposed.
40-8 (c) In soliciting proposals under Section 387.004 and
40-9 determining how to allocate grant money available for projects
40-10 under this chapter, the Texas Council on Environmental Technology
40-11 shall give special consideration to advanced technologies and
40-12 retrofit or add-on projects that provide multiple benefits by
40-13 reducing emissions of particulates and other air pollutants.
40-14 (d) A project that involves publicly or privately owned
40-15 vehicles or vessels is eligible for funding under this chapter if
40-16 the project meets all applicable criteria.
40-17 (e) Studies authorized under Subsection (a) (3) shall be
40-18 consistent with air quality research priorities identified by the
40-19 commission and conducted in an independent and objective manner.
40-20 Sec. 387.006. EVIDENCE OF COMMERCIALIZATION POTENTIAL
40-21 REQUIRED. (a) An application for a technology grant under this
40-22 chapter must show clear and compelling evidence that:
40-23 (1) the proposed technology project has a strong
40-24 commercialization plan and organization; and
40-25 (2) the technology proposed for funding:
40-26 (A) is likely to be offered for commercial sale
41-1 in this state within five years after the date of the application
41-2 for funding; and
41-3 (B) once commercialized, will offer
41-4 opportunities for projects eligible for funding under Chapter 386.
41-5 (b) The Texas Council on Environmental Technology shall
41-6 consider specifically, for each proposed technology project
41-7 application:
41-8 (1) the projected potential for reduced emissions of
41-9 oxides of nitrogen and the cost-effectiveness of the technology
41-10 once it has been commercialized;
41-11 (2) the potential for the technology to contribute
41-12 significantly to air quality goals; and
41-13 (3) the strength of the commercialization plan. •
41-14 Sec. 387.007. COST-SHARING. The Texas Council on
41-15 Environmental Technology may require cost-sharing for technology
41-16 projects funded under this chapter but may not require repayment of
41-17 grant money, except that the council shall require provisions for
41-18 recapturing grant money for noncompliance with grant requirements.
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41-19 Grant money recaptured under the contract provision shall be
41-20 deposited in the environmental research fund and reallocated for
41-21 other projects under this chapter.
41-22 Sec. 387.008. ENVIRONMENTAL RESEARCH FUND. (a) The
41-23 environmental research fund is an account in the general revenue
41-24 fund. The fund consists of money from gifts, grants, or donations
41-25 to the fund for designated or general use and from any other source
41-26 designated by the legislature.
42-1 (b) Money in the environmental research fund may be used
42-2 only for the operation and projects of the Texas Council on
42-3 Environmental Technology.
42-4 Sec. 387.009. ADVISORY COMMITTEES. The Texas Council on
42-5 Environmental Technology may appoint advisory committees as
42-6 necessary or desirable to assist the council in performing its
42-7 duties. An advisory committee may include representatives of
42-8 industry, environmental groups, consumer groups, local governments,
42-9 agriculture, the commission, the General Land Office, and the
42-10 Railroad Commission of Texas. Any senator or representative
42-11 desiring to do so may participate on any advisory committee
42-12 appointed under this section. Members of an advisory committee are
42-13 not entitled to compensation.
42-14 Sec. 387.010. REPORTS. Not later than December 1, 2002, and
42-15 not later than December 1 of each subsequent second year, the Texas
42-16 Council on Environmental Technology shall report to the legislature
42-17 on projects funded under the new technology research and
42-18 development program, describing the technical objectives and
42-19 accomplishments of the project and the progress of the project
42-20 technology toward commercialization. Using sound science, the
42-21 report shall detail the costs and actual realized benefits of the
42-22 program and of each project funded under the program.
42-23 CHAPTER 388. TEXAS BUILDING ENERGY PERFORMANCE STANDARDS
42-24 Sec. 388.001. LEGISLATIVE FINDINGS. (a) The legislature
42-25 finds that an effective building energy code is essential to:
42-26 (1) reducing the air pollutant emissions that are
43-1 affecting the health of residents of this state;
43-2 (2) moderating future peak electric power demand;
43-3 (3) assuring the reliability of the electrical grid;
43-4 and
43-5 (4) controlling energy costs for residents and
43-6 businesses in this state.
43-7 (b) The legislature further finds that this state has a
43-8 number of unique climate types, all of which require more energy
43-9 for cooling than for heating, and that there are many
43-10 cost-effective measures that can reduce peak energy use and reduce
43-11 cooling and other energy costs in buildings.
43-12 Sec. 388.002. DEFINITIONS. In this chapter:
43-13 (1) "Affected county" has the meaning assigned by
43-14 Section 386.001.
43-15 (2) "Building" has the meaning assigned by the
43-16 International Building Code.
43-17 (3) "Code official" means an individual employed by a
43-18 local jurisdiction to review construction plans and other
43-19 documents, inspect construction, or administer and enforce building
43-20 standards under this chapter.
43-21 (4) "Code-certified inspector" means an inspector who
43-22 is certified by the International Code Council, the Building
43-23 Officials and Code Administrators International, Inc. , the
43-24 International Conference of Building Officials, or the Southern
43-25 Building Code Congress International to have met minimum standards
43-26 for interpretation and enforcement of requirements of the
44-1 International Energy Conservation Code and the energy efficiency
44-2 chapter of the International Residential Code.
44-3 (5) "Commission" means the Texas Natural Resource
44-4 Conservation Commission.
44-5 (6) "International Residential Code" means the
44-6 International Residential Code for One- and Two-Family Dwellings as
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44-7 adopted by the International Code Council.
44-8 (7) "International Energy Conservation Code" means the
44-9 International Energy Conservation Code as adopted by the
44-10 International Code Council.
44-11 (8) "Laboratory" means the Energy Systems Laboratory
44-12 at the Texas Engineering Experiment Station of The Texas A&M
44-13 University System.
44-14 (9) "Local -jurisdiction" means the authority
44-15 responsible for implementation and enforcement of local building
44-16 codes.
44-17 (10) "Municipality" has the meaning assigned by
44-18 Section 1.005, Local Government Code.
44-19 (11) "Nonattainment area" has the meaning assigned by
44-20 Section 386.001.
44-21 (12) "Single-family residential" means having the
44-22 character of a detached one- or two-family dwelling or a multiple
44-23 single-family dwelling not more than three stories high with
44-24 separate means of egress, including the accessory structures of the
44-25 dwelling.
44-26 Sec. 388.003. ADOPTION OF BUILDING ENERGY EFFICIENCY
45-1 PERFORMANCE STANDARDS. (a) To achieve energy conservation in
45-2 single-family residential construction, the energy efficiency
45-3 chapter of the International Residential Code, as it existed on May
45-4 1, 2001, is adopted as the energy code in this state for
45-5 single-family residential construction.
45-6 (b) To achieve energy conservation in all other residential,
45-7 commercial, and industrial construction, the International Energy
45-8 Conservation Code as it existed on May 1, 2001, is adopted as the
45-9 energy code for use in this state for all other residential,
45-10 commercial, and industrial construction.
45-11 (c) A municipality shall establish procedures:
45-12 (1) for the administration and enforcement of the
45-13 codes; and
45-14 (2) to ensure that code-certified inspectors shall
45-15 perform inspections and enforce the code in the inspectors'
45-16 jurisdictions.
45-17 (d) A municipality or county may establish procedures to
45-18 adopt local amendments to the International Energy Conservation
45-19 Code and the energy efficiency chapter of the International
45-20 Residential Code.
45-21 (e) Local amendments may not result in less stringent energy
45-22 efficiency requirements in nonattainment areas and in affected
45-23 counties than the energy efficiency chapter of the International
45-24 Residential Code or International Energy Conservation Code. Local
45-25 amendments must comply with the National Appliance Energy
45-26 Conservation Act of 1987 (42 U.S.C. Sections 6291-6309) , as
46-1 amended. The laboratory, at the request of a municipality or
46-2 county, shall determine the relative impact of proposed local
46-3 amendments to an energy code, including whether proposed amendments
46-4 are substantially equal to or less stringent than the unamended
46-5 code. For the purpose of establishing uniform requirements
46-6 throughout a region, and on request of a council of governments, a
46-7 county, or a municipality, the laboratory may recommend a
46-8 climatically appropriate modification or a climate zone designation
46-9 for a county or group of counties that is different from the
46-10 climate zone designation in the unamended code. The laboratory
46-11 shall:
46-12 (1) report its findings to the council, county, or
46-13 municipality, including an estimate of any energy savings potential
46-14 above the base code from local amendments; and
46-15 (2) annually submit a report to the commission:
46-16 (A) identifying the municipalities and counties
46-17 whose codes are more stringent than the unamended code, and whose
46-18 codes are equally stringent or less stringent than the unamended
46-19 code; and
46-20 (B) quantifying energy savings from this
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46-21 program.
46-22 (f) Each municipality, and each county that has established
46-23 procedures under Subsection (d) , shall periodically review and
46-24 consider revisions made by the International Code Council to the
46-25 International Energy Conservation Code and the energy efficiency
46-26 chapter of the International Residential Code adopted after May 1,
47-1 2001.
47-2 (g) The laboratory shall have the authority to set and
47-3 collect fees to perform certain tasks in support of the
47-4 requirements in Sections 388.004, 388.007, and 388.008.
47-5 (h) Within the boundaries of an airport operated by a joint
47-6 board created under Subchapter D, Chapter 22, Transportation Code,
47-7 the constituent agencies of which are populous home-rule
47-8 municipalities, the powers of a municipality under this section are
47-9 exclusively the powers of the joint board.
47-10 Sec. 388.004. ENFORCEMENT OF ENERGY STANDARDS OUTSIDE OF
47-11 MUNICIPALITY. For construction outside of the local jurisdiction
47-12 of a municipality:
47-13 (1) a building certified by a national, state, or
47-14 local accredited energy efficiency program shall be considered in
47-15 compliance;
47-16 (2) a building with inspections from private
47-17 code-certified inspectors using the energy efficiency chapter of
47-18 the International Residential Code or International Energy
47-19 Conservation Code shall be considered in compliance; and
47-20 (3) a builder who does not have access to either of
47-21 the above methods for a building shall certify compliance using a
47-22 form provided by the laboratory, enumerating the code-compliance
47-23 features of the building.
47-24 Sec. 388.005. ENERGY EFFICIENCY PROGRAMS IN CERTAIN
47-25 POLITICAL SUBDIVISIONS. (a) In this section, "political
47-26 subdivision" means:
48-1 (1) an affected county; or
48-2 (2) any political subdivision other than a school
48-3 district in a nonattainment area or in an affected county.
48-4 (b) Each political subdivision shall implement all energy
48-5 efficiency measures that meet the standards established for a
48-6 contract for energy conservation measures under Section 302.004(b) ,
48-7 Local Government Code, in order to reduce electricity consumption
48-8 by the existing facilities of the political subdivision.
48-9 (c) Each political subdivision shall establish a goal to
48-10 reduce the electric consumption by the political subdivision by
48-11 five percent each year for five years, beginning January 1, 2002.
48-12 (d) A political subdivision that does not attain the goals
48-13 under Subsection (c) must include in the report required by
48-14 Subsection (e) justification that the political subdivision has
48-15 already implemented all available measures.
48-16 (e) A political subdivision annually shall report to the
48-17 State Energy Conservation Office, on forms provided by that office,
48-18 regarding the political subdivision's efforts and progress under
48-19 this section. The State Energy Conservation Office shall provide
48-20 assistance and information to political subdivisions to help the
48-21 political subdivisions meet the goals set under this section.
48-22 Sec. 388.006. STATE ENERGY CONSERVATION OFFICE EVALUATION.
48-23 The State Energy Conservation Office annually shall provide the
48-24 commission with an evaluation of the effectiveness of state and
48-25 political subdivision energy efficiency programs, including
48-26 programs under this chapter.
49-1 Sec. 388.007. DISTRIBUTION OF INFORMATION AND TECHNICAL
49-2 ASSISTANCE. (a) The laboratory shall make available to builders,
49-3 designers, engineers, and architects code implementation materials
49-4 that explain the requirements of the International Energy
49-5 Conservation Code and the energy efficiency chapter of the
49-6 International Residential Code and that describe methods of
49-7 compliance acceptable to code officials.
49-8 (b) The materials may include software tools, simplified
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49-9 prescriptive options, and other materials as appropriate. The
49-10 simplified materials may be designed for projects in which a design
49-11 professional is not involved.
49-12 (c) The laboratory may provide local jurisdictions with
49-13 technical assistance concerning implementation and enforcement of
49-14 the International Energy Conservation Code and the energy
49-15 efficiency chapter of the International Residential Code.
49-16 Sec. 388.008. DEVELOPMENT OF HOME ENERGY RATINGS. (a) The
49-17 laboratory shall develop a standardized report format to be used by
49-18 providers of home energy ratings. The form must be designed to
49-19 give potential buyers information on a structure's energy
49-20 performance, including:
49-21 (1) insulation;
49-22 (2) types of windows;
49-23 (3) heating and cooling equipment;
49-24 (4) water heating equipment;
49-25 (5) additional energy conserving features, if any;
49-26 (6) results of performance measurements of building
50-1 tightness and forced air distribution; and
50-2 (7) an overall rating of probable energy efficiency
50-3 relative to the minimum requirements of the International Energy
50-4 Conservation Code or the energy efficiency chapter of the
50-5 International Residential Code, as appropriate.
50-6 (b) The laboratory shall establish a public information
50-7 program to inform homeowners, sellers, buyers, and others regarding
50-8 home energy ratings.
50-9 (c) The home energy ratings program shall be implemented by
50-10 September 1, 2002.
50-11 CHAPTER 389. EMISSIONS REDUCTION RECOGNITION EFFORTS
50-12 Sec. 389.001. DEFINITION. In this chapter, "commission"
50-13 means the Texas Natural Resource Conservation Commission.
50-14 Sec. 389.002. USE OF CERTAIN INFORMATION FOR FEDERAL
50-15 RECOGNITION OF EMISSIONS REDUCTIONS. The commission, using
50-16 information derived from the reports to the commission under
50-17 Sections 386.205, 388.003 (e) , and 388.006, shall take all
50-18 appropriate and necessary actions so that emissions reductions
50-19 achieved by means of activities under Chapters 386 and 388 are
50-20 credited by the United States Environmental Protection Agency to
50-21 the appropriate emissions reduction objectives in the state
50-22 implementation plan.
50-23 SECTION 2. Subchapter C, Chapter 151, Tax Code, is amended
50-24 by adding Section 151.0515 to read as follows:
50-25 Sec. 151.0515. TEXAS' EMISSIONS REDUCTION PLAN SURCHARGE.
50-26 (a) In this section, "equipment" includes all off-road, heavy-duty
51-1 diesel equipment classified as construction equipment, other than
51-2 implements of husbandry used solely for agricultural purposes,
51-3 including:
51-4 (1) pavers;
51-5 (2) tampers/rammers;
51-6 (3) plate compactors;
51-7 (4) concrete pavers;
51-8 (5) rollers;
51-9 (6) scrapers;
51-10 (7) paving equipment;
51-11 (8) surface equipment;
51-12 (9) signal boards/light plants;
51-13 (10) trenchers;
51-14 (11) bore/drill rigs;
51-15 (12) excavators;
51-16 (13) concrete/industrial saws;
51-17 (14) cement and mortar mixers;
51-18 (15) cranes;
51-19 (16) graders;
51-20 (17) off-highway trucks;
51-21 (18) crushing/processing equipment;
51-22 (19) rough terrain forklifts;
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51-23 (20) rubber tire loaders;
51-24 (21) rubber tire tractors/dozers;
51-25 (22) tractors/loaders/backhoes;
51-26 (23) crawler tractors/dozers;
52-1 (24) skid steer loaders;
52-2 (25) off-highway tractors; and
52-3 (26) Dumpsters/tenders.
52-4 (b) In each county in this state, a surcharge is imposed on
52-5 the retail sale, lease, or rental of new or used equipment in an
52-6 amount equal to one percent of the sale price or the lease or
52-7 rental amount.
52-8 (c) The surcharge shall be collected at the same time and in
52-9 the same manner and shall be administered and enforced in the same
52-10 manner as the tax imposed under this subchapter. The comptroller
52-11 shall adopt any additional procedures needed for the collection,
52-12 administration, and enforcement of the surcharge authorized by this
52-13 section and shall deposit all remitted surcharges to the credit of
52-14 the Texas emissions reduction plan fund.
52-15 (d) This section expires September 30, 2008.
52-16 SECTION 3. Subchapter B, Chapter 152, Tax Code, is amended
52-17 by adding Section 152.0215 to read as follows:
52-18 Sec. 152.0215. TEXAS EMISSIONS REDUCTION PLAN SURCHARGE.
52-19 (a) A surcharge is imposed on every retail sale or lease of every
52-20 on-road diesel motor vehicle that is over 14, 000 pounds and is of a
52-21 model year 1996 or earlier and that is sold or leased in this
52-22 state. The amount of the surcharge is 2.5 percent of the total
52-23 consideration.
52-24 (b) The surcharge shall be collected at the same time and in
52-25 the same manner and shall be administered and enforced in the same
52-26 manner as the tax imposed under this chapter. The comptroller by
53-1 rule shall adopt any additional procedures needed for the
53-2 collection, administration, and enforcement of the surcharge
53-3 authorized by this section and shall deposit all remitted
53-4 surcharges to the credit of the Texas emissions reduction plan
53-5 fund.
53-6 (c) This section expires September 30, 2008.
53-7 SECTION 4. Section 153.203, Tax Code, is amended to read as
53-8 follows:
53-9 Sec. 153 .203 . EXCEPTIONS. (a) The tax imposed by this
53-10 subchapter does not apply to:
53-11 (1) diesel fuel delivered by a permitted supplier to a
53-12 common or contract carrier, oceangoing vessel (including ship,
53-13 tanker, or boat) , or barge for export from this state, if the
53-14 diesel fuel is moved forthwith outside this state;
53-15 (2) diesel fuel sold by a permitted supplier to the
53-16 federal government for its exclusive use;
53-17 (3) diesel fuel sold or delivered by a permitted
53-18 supplier to another permitted supplier or to the bulk storage
53-19 facility of an agricultural bonded user, or dyed diesel fuel sold
53-20 or delivered by a permitted supplier to the bulk storage facility
53-21 of a dyed diesel fuel bonded user, to the bulk storage facility of
53-22 a diesel tax prepaid user, or to a purchaser who provides a signed
53-23 statement as provided by Section 153.205 of this code, but not
53-24 including a delivery of tax-free diesel fuel into the fuel supply
53-25 tanks of a motor vehicle, except for a motor vehicle owned by the
53-26 federal government;
54-1 (4) diesel fuel sold or delivered by a permitted
54-2 supplier into the storage facility of a permitted aviation fuel
54-3 dealer, from which diesel fuel will be sold or delivered solely
54-4 into the fuel supply tanks of aircraft or aircraft servicing
54-5 equipment;
54-6 (5) diesel fuel sold or delivered by a permitted
54-7 supplier into fuel supply tanks of railway engines, motorboats, or
54-8 refrigeration units or other stationary equipment powered by a
54-9 separate motor from a separate fuel supply tank;
54-10 (6) kerosene when delivered by a permitted supplier
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54-11 into a storage facility at a retail business from which all
54-12 deliveries are exclusively for heating, cooking, lighting, or
54-13 similar nonhighway use;
54-14 (7) diesel fuel sold or delivered by one aviation fuel
54-15 dealer to another aviation fuel dealer who will deliver the diesel
54-16 fuel exclusively into the supply tanks of aircraft or aircraft
54-17 servicing equipment;
54-18 (8) diesel fuel sold by a permitted supplier to a
54-19 public school district in this state for its exclusive use;
54-20 (9) diesel fuel sold by a permitted supplier to a
54-21 commercial transportation company that provides public school
54-22 transportation services to a school district under Section 34.008,
54-23 Education Code, and used by the company exclusively to provide
54-24 those services; or
54-25 (10) diesel fuel sold by a permitted supplier to a
54-26 person, other than a political subdivision, who owns, controls,
55-1 operates, or manages a commercial motor vehicle as defined by
55-2 Section 548.001, Transportation Code, if the fuel:
55-3 (A) is delivered exclusively into the fuel
55-4 supply tank of the commercial motor vehicle; and
55-5 (B) is used exclusively to transport passengers
55-6 for compensation or hire between points in this state on a fixed
55-7 route or schedule.
55-8 (b) The tax imposed by this subchapter does not apply to the
55-9 volume of water, fuel ethanol, biodiesel, or mixtures thereof that
55-10 are blended together with taxable diesel fuel when the finished
55-11 product sold or used is clearly identified on the retail pump,
55-12 storage tank, and sales invoice as a combination of diesel fuel and
55-13 water, fuel ethanol, biodiesel, or mixtures thereof.
55-14 SECTION 5. Section 224.153, Transportation Code, is amended
55-15 by adding Subsection (c) to read as follows:
55-16 (c) A motor vehicle displaying the "low-emissions vehicle"
55-17 insignia authorized by Section 502.186 in an easily readable
55-18 location on the back of the vehicle is entitled to travel in a
55-19 preferential car pool or high occupancy vehicle lane designated
55-20 under this section regardless of the number of occupants in the
55-21 vehicle. This subsection expires August 31, 2008.
55-22 SECTION 6. Section 431.073, Transportation Code, is amended
55-23 by adding Subsection (d) to read as follows:
55-24 (d) A motor vehicle displaying the "low-emissions vehicle"
55-25 insignia authorized by Section 502.186 in an easily readable
55-26 location on the back of the vehicle is entitled to travel in a high
56-1 occupancy vehicle lane designated under this section regardless of
56-2 the number of occupants in the vehicle. This subsection expires
56-3 August 31, 2008.
56-4 SECTION 7. Subchapter D, Chapter 502, Transportation Code,
56-5 is amended by adding Section 502.1675 to read as follows:
56-6 Sec. 502.1675. TEXAS EMISSIONS REDUCTION PLAN SURCHARGE.
56-7 (a) In addition to the registration fees charged under Section
56-8 502.167, a surcharge is imposed on the registration of a
56-9 truck-tractor or commercial motor vehicle under that section in an
56-10 amount equal to 10 percent of the total fees due for the
56-11 registration of the truck-tractor or commercial motor vehicle under
56-12 that section.
56-13 (b) The county tax assessor-collector shall remit the
56-14 surcharge collected under this section to the comptroller at the
56-15 time and in the manner prescribed by the comptroller for deposit in
56-16 the Texas emissions reduction plan fund.
56-17 (c) This section expires August 31, 2008.
56-18 SECTION 8. Subchapter D, Chapter 502, Transportation Code,
56-19 is amended by adding Section 502.186 to read as follows:
56-20 Sec. 502.186. "LOW-EMISSIONS VEHICLE" INSIGNIA FOR CERTAIN
56-21 MOTOR VEHICLES. (a) At the time of registration or reregistration
56-22 of the motor vehicle, the department shall issue a specially
56-23 designed "low-emissions vehicle" insignia for a motor vehicle that
56-24 meets qualifications for the light-duty motor vehicle purchase or
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56-25 lease incentives under Subchapter D, Chapter 386, Health and Safety
56-26 Code.
57-1 (b) The department shall issue a "low-emissions vehicle"
57-2 insignia under this section without the payment of any additional
57-3 fee to a person who:
57-4 (1) applies to the department on a form provided by
57-5 the department; and
57-6 (2) submits proof that the motor vehicle being
57-7 registered is a vehicle described by Subsection (a) .
57-8 (c) This section expires August 31, 2008.
57-9 SECTION 9. Section 548.256, Transportation Code, is amended
57-10 by adding Subsections (c) and (d) to read as follows:
57-11 (c) The inspection station shall collect a fee of $225 for
57-12 each inspection performed under this section and shall remit the
57-13 fee to the department. Of each fee collected, the inspection
57-14 station may retain $5 to cover administrative costs. The
57-15 department shall remit all fees collected under this subsection to
57-16 the comptroller for deposit in the Texas emissions reduction plan
57-17 fund. The fee imposed by this subsection does not apply to an
57-18 inspection performed on a vehicle owned by active duty military
57-19 personnel and their dependents. This subsection expires August 31,
57-20 2008.
57-21 (d) A person who is an officer, enlisted person, selectee,
57-22 or draftee of the Army, Army Reserve, Army National Guard, Air
57-23 National Guard, Air Force, Air Force Reserve, Navy, Navy Reserve,
57-24 Marine Corps, Marine Corps Reserve, Coast Guard, or Coast Guard
57-25 Reserve of the United States, and the spouse and children of such
57-26 an officer, enlisted person, selectee, or draftee is exempted from
58-1 the requirements of Subsection (c) .
58-2 SECTION 10. Subchapter H, Chapter 548, Transportation Code,
58-3 is amended by adding Section 548.5055 to read as follows:
58-4 Sec. 548.5055. TEXAS EMISSION REDUCTION PLAN FEE. (a) In
58-5 addition to other fees required by this subchapter, to fund the
58-6 Texas emissions reduction plan established under Chapter 386,
58-7 Health and Safety Code, the department shall collect for every
58-8 commercial motor vehicle required to be inspected under Subchapter
58-9 D, a fee of $10.
58-10 (b) The department shall remit fees collected under this
58-11 section to the comptroller at the time and in the manner prescribed
58-12 by the comptroller for deposit in the Texas emission reduction plan
58-13 fund.
58-14 (c) This section expires August 31, 2008.
58-15 SECTION 11. (a) Not later than the 45th day after the
58-16 effective date of this Act, the Texas Natural Resource Conservation
58-17 Commission shall adopt all necessary rules required to implement
58-18 programs established under this Act.
58-19 (b) Not later than the 45th day after the effective date of
58-20 this Act, the comptroller of public accounts shall adopt all rules
58-21 necessary to enable the comptroller to carry out the comptroller's
58-22 duties under this Act.
58-23 (c) Not later than the 45th day after the effective date of
58-24 this Act, the Public Utility Commission of Texas shall adopt all
58-25 rules necessary to carry out its duties under this Act.
58-26 (d) A municipality required to establish procedures under
59-1 Subsection (c) , Section 388.003, Health and Safety Code, as added
59-2 by this Act, shall establish the procedures not later than
59-3 September 1, 2002.
59-4 SECTION 12. (a) Except as provided by Subsection (b) of
59-5 this section, not later than August 1, 2001, if this Act takes
59-6 immediate effect, or the effective date of this Act if this Act
59-7 does not take immediate effect, the Texas Natural Resource
59-8 Conservation Commission and the comptroller of public accounts
59-9 shall adopt rules necessary to implement the diesel emissions
59-10 reduction incentive program established under Subchapter C, Chapter
59-11 386, Health and Safety Code, as added by this Act.
59-12 (b) Not later than September 1, 2001, the Texas Natural
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59-13 Resource Conservation Commission, as required by Section 386.104,
59-14 Health and Safety Code, as added by this Act, shall adopt criteria
59-15 for setting priorities for projects eligible for grants under
59-16 Subchapter C, Chapter 386, Health and Safety Code, as added by this
59-17 Act.
59-18 (c) Not later than August 1, 2002, the Texas Natural
59-19 Resource Conservation Commission and the comptroller of public
59-20 accounts shall adopt rules necessary to implement the motor vehicle
59-21 purchase or lease incentive program established under Subchapter D,
59-22 Chapter 386, Health and Safety Code, as added by this Act.
59-23 (d) Not later than August 1, 2002, the Texas Natural
59-24 Resource Conservation Commission shall publish the first annual
59-25 list of vehicles eligible for light-duty motor vehicle purchase or
59-26 lease incentives, as required by Section 386.156, Health and Safety
60-1 Code, as added by this Act.
60-2 SECTION 13 . The vehicle purchase or lease incentives
60-3 authorized by Sections 386.113 and 386.153, Health and Safety Code,
60-4 as added by this Act, apply only to the sale or lease of a vehicle
60-5 that occurs on or after August 1, 2002.
60-6 SECTION 14. (a) The Texas Natural Resource Conservation
60-7 Commission shall develop and sponsor a contest in the state's
60-8 public schools to select the best student design for the
60-9 "low-emissions vehicle" insignia authorized by Section 502.186,
60-10 Transportation Code, as added by this Act. Not later than January
60-11 1, 2002, the commission shall provide to each public school in the
60-12 state a contest packet containing rules and procedures for
60-13 participating in the contest, an explanation of the criteria the
60-14 commission will use in selecting the best design, and a deadline
60-15 for the submission of student designs. The commission shall select
60-16 and announce the winner of the contest not later than the 30th day
60-17 after the contest submission deadline. The commission may
60-18 publicize and otherwise promote the contest and the winning design.
60-19 (b) The Texas Natural Resource Conservation Commission shall
60-20 make the "low-emissions vehicle" insignia available to the county
60-21 tax assessor-collector of each county in the state not later than
60-22 the 45th day after the date on which the winning design is selected
60-23 and announced. The county tax assessor-collector of each county in
60-24 the state shall begin issuing the "low-emissions vehicle" insignia
60-25 to persons who qualify for the insignia not later than the 10th
60-26 working day after the date the insignia are available.
61-1 SECTION 15. (a) In making the initial appointments to the
61-2 Texas Emissions Reduction Plan Advisory Board as created by Section
61-3 386.058, Health and Safety Code, as added by this Act, the
61-4 appointing authorities, by mutual agreement, shall designate their
61-5 appointees so that seven members' terms expire February 1, 2002,
61-6 and eight members' terms expire February 1, 2003.
61-7 (b) Appointments to the Texas Emissions Reduction Plan
61-8 Advisory Board shall be made not later than July 1, 2001, if this
61-9 Act takes immediate effect, or not later than the effective date of
61-10 this Act, if this Act does not take immediate effect.
61-11 SECTION 16. As soon as practicable after the effective date
61-12 of this Act, the governor shall appoint members to the Texas
61-13 Council on Environmental Technology, as created by Section 387.002,
61-14 Health and Safety Code, as added by this Act. In making the
61-15 initial appointments, the governor shall designate the appointees
61-16 so that three members' terms expire February 1, 2003, four members'
61-17 terms expire February 1, 2005, and four members' terms expire
61-18 February 1, 2007.
61-19 SECTION 17. Not later than the 30th day after the adoption
61-20 of rules governing the new technology research and development
61-21 program established under Chapter 387, Health and Safety Code, as
61-22 added by this Act, the Texas Council on Environmental Technology
61-23 shall issue requests for proposals for projects to be funded under
61-24 the new technology research and development program.
61-25 SECTION 18. Not later than October 1, 2001, the Texas
61-26 Natural Resource Conservation Commission shall submit to the United
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77(R) SB 5 Enrolled version - ext 110 Page 25 of 26
62-1 States Environmental Protection Agency a revision to the state
62-2 implementation plan that deletes the requirements of the
62-3 construction shift and the early purchase of Tier 2 and Tier 3
62-4 equipment and adds the provisions of this Act. The commission
62-5 shall include with the revision a report on the effectiveness of
62-6 the Texas emissions reduction plan in delivering emissions
62-7 reductions to the degree sufficient to replace the requirements of
62-8 the construction shift and the early purchase of Tier 2 and Tier 3
62-9 equipment.
62-10 SECTION 19. (a) Notwithstanding any Act of the 77th
62-11 Legislature, Regular Session, 2001, that purports to abolish all
62-12 funds and accounts created or re-created in the state treasury by
62-13 another Act of the 77th Legislature, Regular Session, 2001, the
62-14 Texas emissions reduction plan fund created by Subchapter F,
62-15 Chapter 386, Health and Safety Code, as added by this Act, and the
62-16 environmental research fund created by Section 387.008, Health and
62-17 Safety Code, as added by this Act, are accounts in the general
62-18 revenue fund and the accounts and money deposited to the accounts
62-19 are exempt from any Act of the 77th Legislature, Regular Session,
62-20 2001, that purports to abolish all funds and accounts created or
62-21 re-created by another Act of the 77th Legislature, Regular Session,
62-22 2001, and to require the deposit of money that would be deposited
62-23 to the credit of a special account or fund be deposited to the
62-24 credit of the unobligated portion of the general revenue fund
62-25 unless the fund, account, or dedication is exempted under that Act.
62-26 (b) This section prevails over any other Act of the 77th
63-1 Legislature, Regular Session, 2001, regardless of the relative
63-2 dates of enactment, that purports to abolish all funds and accounts
63-3 created or re-created in the state treasury by another Act of the
63-4 77th Legislature, Regular Session, 2001, and to require the deposit
63-5 of money that would be deposited to the credit of a special account
63-6 or fund be deposited to the credit of the unobligated portion of
63-7 the general revenue fund unless the fund, account, or dedication is
63-8 exempted under that Act.
63-9 SECTION 20. Section 386.002, Health and Safety Code, as
63-10 added by this Act notwithstanding, the Texas Natural Resource
63-11 Conservation Commission shall submit the final biennial plan report
63-12 required by Section 386.057, Health and Safety Code, as added by
63-13 this Act, to the legislature not later than December 1, 2008.
63-14 SECTION 21. The expiration of Sections 151.0515 and
63-15 152.0215, Tax Code, as added by this Act, does not affect an
63-16 obligation that was incurred, a violation that occurred, or an
63-17 offense that was committed under those sections before the
63-18 expiration date of those sections. An obligation incurred, a
63-19 violation that occurred, or an offense committed before the
63-20 expiration date of those sections is governed by the law in effect
63-21 at the time the obligation was incurred, the violation occurred, or
63-22 the offense was committed, and the former law is continued in
63-23 effect after the expiration date for that purpose. For purposes of
63-24 this section, a violation occurs or an offense is committed before
63-25 the expiration date of those sections if any element of the
63-26 violation or offense occurs before that date.
64-1 SECTION 22. This Act takes effect immediately if it receives
64-2 a vote of two-thirds of all the members elected to each house, as
64-3 provided by Section 39, Article III, Texas Constitution. If this
64-4 Act does not receive the vote necessary for immediate effect, this
64-5 Act takes effect September 1, 2001.
President of the Senate Speaker of the House
I hereby certify that S.B. No. 5 passed the Senate on
April 17, 2001, by the following vote: Yeas 28, Nays 1, two
present not voting; and that the Senate concurred in House
amendments on May 24, 2001, by the following vote: Yeas 30,
Nays 0, one present not voting.
Secretary of the Senate
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77(R) SB 5 Enrolled version - Text • Page 26 of 26
I hereby certify that S.B. No. 5 passed the House, with
amendments, on May 22, 2001, by a non-record vote.
Chief Clerk of the House
Approved:
Date
Governor
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