Texas 2009 - 81st Regular

Texas House Bill HB1796 Compare Versions

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1	1	H.B. No. 1796
2	2
3	3
4	4	AN ACT
5	5	relating to the development of carbon dioxide capture and
6	6	sequestration in this state.
7	7	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
8	8	SECTION 1. Chapter 382, Health and Safety Code, is amended
9	9	by adding Subchapter K to read as follows:
10	10	SUBCHAPTER K. OFFSHORE GEOLOGIC STORAGE OF CARBON DIOXIDE
11	11	Sec. 382.501. DEFINITIONS. In this subchapter:
12	12	(1) "Board" means the School Land Board.
13	13	(2) "Bureau" means the Bureau of Economic Geology at
14	14	The University of Texas at Austin.
15	15	(3) "Carbon dioxide repository" means an offshore deep
16	16	subsurface geologic repository for the storage of anthropogenic
17	17	carbon dioxide.
18	18	(4) "Land commissioner" means the commissioner of the
19	19	General Land Office.
20	20	Sec. 382.502. RULES. (a) The commission by rule may adopt
21	21	standards for the location, construction, maintenance, monitoring,
22	22	and operation of a carbon dioxide repository.
23	23	(b) If the United States Environmental Protection Agency
24	24	issues requirements regarding carbon dioxide sequestration, the
25	25	commission shall ensure that the construction, maintenance,
26	26	monitoring, and operation of the carbon dioxide repository under
27	27	this subchapter comply with those requirements.
28	28	Sec. 382.503. STUDY; SELECTION OF LOCATION. (a) The land
29	29	commissioner shall contract with the bureau to conduct a study of
30	30	state-owned offshore submerged land to identify potential
31	31	locations for a carbon dioxide repository.
32	32	(b) The land commissioner shall recommend suitable sites
33	33	for carbon dioxide storage to the board based on the findings of the
34	34	study.
35	35	(c) The board shall make the final determination of suitable
36	36	locations for carbon dioxide storage.
37	37	Sec. 382.504. CONTRACT FOR NECESSARY INFRASTRUCTURE AND
38	38	OPERATION. (a) Once the location has been established for the
39	39	carbon dioxide repository, the board may issue requests for
40	40	proposals for the lease of permanent school fund land for the
41	41	construction of any necessary infrastructure for the
42	42	transportation and storage of carbon dioxide to be stored in the
43	43	carbon dioxide repository.
44	44	(b) The board may contract for construction or operational
45	45	services for the repository.
46	46	Sec. 382.505. ACCEPTANCE OF CARBON DIOXIDE FOR STORAGE;
47	47	FEES AND CARBON CREDITS. (a) Once the carbon dioxide repository is
48	48	established, the board may accept carbon dioxide for storage.
49	49	(b) The board by rule may establish a fee for the storage of
50	50	carbon dioxide in the carbon dioxide repository. If this state
51	51	participates in a program that facilitates the trading of carbon
52	52	credits, a fee under this subsection may be established as a
53	53	percentage of the carbon credits associated with the storage.
54	54	Sec. 382.506. MEASURING, MONITORING, AND VERIFICATION;
55	55	ROLE OF BUREAU. (a) The commission by rule may establish standards
56	56	for the measurement, monitoring, and verification of the permanent
57	57	storage status of the carbon dioxide in the carbon dioxide
58	58	repository.
59	59	(b) The bureau shall perform the measurement, monitoring,
60	60	and verification of the permanent storage status of carbon dioxide
61	61	in the carbon dioxide repository.
62	62	(c) The bureau shall serve as a scientific advisor for the
63	63	measuring, monitoring, and permanent storage status verification
64	64	of the carbon dioxide repository.
65	65	(d) The bureau shall provide to the board data relating to
66	66	the measurement, monitoring, and verification of the permanent
67	67	storage status of the carbon dioxide in the carbon dioxide
68	68	repository, as determined by the board.
69	69	Sec. 382.507. OWNERSHIP OF CARBON DIOXIDE. (a) The board
70	70	shall acquire title to carbon dioxide stored in the carbon dioxide
71	71	repository on a determination by the board that permanent storage
72	72	has been verified and that the storage location has met all
73	73	applicable state and federal requirements for closure of carbon
74	74	dioxide storage sites.
75	75	(b) The right, title, and interest in carbon dioxide
76	76	acquired under this section are the property of the permanent
77	77	school fund and shall be administered and controlled by the board.
78	78	Sec. 382.508. LIABILITY. (a) The transfer of title to the
79	79	state under Section 382.507 does not relieve a producer of carbon
80	80	dioxide of liability for any act or omission regarding the
81	81	generation of stored carbon dioxide performed before the carbon
82	82	dioxide was stored.
83	83	(b) On the date the permanent school fund, under Section
84	84	382.507, acquires the right, title, and interest in carbon dioxide,
85	85	the producer of the carbon dioxide is relieved of liability for any
86	86	act or omission regarding the carbon dioxide in the carbon dioxide
87	87	repository.
88	88	(c) This section does not relieve a person who contracts
89	89	with the board under Section 382.504(b) of liability for any act or
90	90	omission regarding the construction or operation, as applicable, of
91	91	the carbon dioxide repository.
92	92	Sec. 382.509. RATES FOR TRANSPORTATION. Neither the
93	93	commission nor the board may establish or regulate the rates
94	94	charged for the transportation of carbon dioxide to the carbon
95	95	dioxide repository.
96	96	Sec. 382.510. ANNUAL REPORT. The land commissioner shall
97	97	issue annually a report regarding the carbon dioxide repository.
98	98	The report may be submitted electronically by posting on the
99	99	General Land Office's Internet website. The report must include
100	100	information regarding:
101	101	(1) the total volume of carbon dioxide stored;
102	102	(2) the total volume of carbon dioxide received for
103	103	storage during the year; and
104	104	(3) the volume of carbon dioxide received from each
105	105	producer of carbon dioxide.
106	106	SECTION 2. This Act does not make an appropriation. A
107	107	provision in this Act that creates a new governmental program,
108	108	creates a new entitlement, or imposes a new duty on a governmental
109	109	entity is not mandatory unless a specific appropriation has been
110	110	made to implement the provision or it is determined by the agency
111	111	that the provisions imposed by this Act may be absorbed within
112	112	agency resources during the fiscal period without additional state
113	113	funding.
114	114	SECTION 3. Section 382.003(1-a), Health and Safety Code, is
115	115	amended to read as follows:
116	116	(1-a) "Advanced clean energy project" means a project
117	117	for which an application for a permit or for an authorization to use
118	118	a standard permit under this chapter is received by the commission
119	119	on or after January 1, 2008, and before January 1, 2020, and that:
120	120	(A) involves the use of coal, biomass, petroleum
121	121	coke, solid waste, or fuel cells using hydrogen derived from such
122	122	fuels, in the generation of electricity, or the creation of liquid
123	123	fuels outside of the existing fuel production infrastructure while
124	124	co-generating electricity, whether the project is implemented in
125	125	connection with the construction of a new facility or in connection
126	126	with the modification of an existing facility and whether the
127	127	project involves the entire emissions stream from the facility or
128	128	only a portion of the emissions stream from the facility;
129	129	(B) with regard to the portion of the emissions
130	130	stream from the facility that is associated with the project, is
131	131	capable of achieving:
132	132	(i) on an annual basis a 99 percent or
133	133	greater reduction of sulfur dioxide emissions or, if the project is
134	134	designed for the use of feedstock substantially all of which is
135	135	subbituminous coal, an emission rate of 0.04 pounds or less of
136	136	sulfur dioxide per million British thermal units as determined by a
137	137	30-day average;
138	138	(ii) on an annual basis[,] a 95 percent or
139	139	greater reduction of mercury emissions;
140	140	(iii) [, and] an annual average emission
141	141	rate for nitrogen oxides of:
142	142	(a) 0.05 pounds or less per million
143	143	British thermal units; or
144	144	(b) if the project uses gasification
145	145	technology, 0.034 pounds or less per million British thermal units;
146	146	and
147	147	(iv) an annual average emission rate for
148	148	filterable particulate matter of 0.015 pounds or less per million
149	149	British thermal units; and
150	150	(C) captures not less than 50 percent of the
151	151	[renders] carbon dioxide in the portion of the emissions stream
152	152	from the facility that is associated with the project and
153	153	sequesters that captured carbon dioxide by geologic storage or
154	154	other means [capable of capture, sequestration, or abatement if any
155	155	carbon dioxide is produced by the project].
156	156	SECTION 4. Section 382.0567(b), Health and Safety Code, is
157	157	amended to read as follows:
158	158	(b) The commission may not consider any technology or level
159	159	of emission reduction to be achievable for purposes of a best
160	160	available control technology analysis or lowest achievable
161	161	emission rate analysis conducted by the commission under another
162	162	provision of this chapter solely because the technology is used or
163	163	the emission reduction is achieved by a facility receiving an
164	164	incentive as an advanced clean energy project or new technology
165	165	project, as described by Section 391.002.
166	166	SECTION 5. Section 386.051(b), Health and Safety Code, is
167	167	amended to read as follows:
168	168	(b) Under the plan, the commission and the comptroller shall
169	169	provide grants or other funding for:
170	170	(1) the diesel emissions reduction incentive program
171	171	established under Subchapter C, including for infrastructure
172	172	projects established under that subchapter;
173	173	(2) the motor vehicle purchase or lease incentive
174	174	program established under Subchapter D;
175	175	(3) the new technology research and development
176	176	program established under Chapter 387; [and]
177	177	(4) the clean school bus program established under
178	178	Chapter 390; and
179	179	(5) the new technology implementation grant program
180	180	established under Chapter 391.
181	181	SECTION 6. Section 386.052(b), Health and Safety Code, is
182	182	amended to read as follows:
183	183	(b) Appropriate commission objectives include:
184	184	(1) achieving maximum reductions in oxides of nitrogen
185	185	to demonstrate compliance with the state implementation plan;
186	186	(2) preventing areas of the state from being in
187	187	violation of national ambient air quality standards;
188	188	(3) achieving cost-saving and multiple benefits by
189	189	reducing emissions of other pollutants; [and]
190	190	(4) achieving reductions of emissions of diesel
191	191	exhaust from school buses; and
192	192	(5) advancing new technologies that reduce oxides of
193	193	nitrogen and other emissions from facilities and other stationary
194	194	sources.
195	195	SECTION 7. Section 386.057(b), Health and Safety Code, is
196	196	amended to read as follows:
197	197	(b) Not later than December 1, 2002, and not later than
198	198	December 1 of each subsequent second year, the commission, in
199	199	consultation with the advisory board, shall publish and submit to
200	200	the legislature a biennial plan report. The report must include:
201	201	(1) the information included in the annual reviews
202	202	conducted under Subsection (a);
203	203	(2) specific information for individual projects as
204	204	required by Subsection (c);
205	205	(3) information contained in reports received under
206	206	Sections 386.205, 388.003(e), [and] 388.006, and 391.104; and
207	207	(4) a summary of the commission's activities under
208	208	Section 386.052.
209	209	SECTION 8. Section 386.251(c), Health and Safety Code, is
210	210	amended to read as follows:
211	211	(c) The fund consists of:
212	212	(1) the amount of money deposited to the credit of the
213	213	fund under:
214	214	(A) Section 386.056;
215	215	(B) Sections 151.0515 and 152.0215, Tax Code; and
216	216	(C) Sections 501.138, 502.1675, and 548.5055,
217	217	Transportation Code; and
218	218	(2) grant money recaptured under Section 386.111(d)
219	219	and Chapter 391.
220	220	SECTION 9. Subtitle C, Title 5, Health and Safety Code, is
221	221	amended by adding Chapter 391 to read as follows:
222	222	CHAPTER 391. NEW TECHNOLOGY IMPLEMENTATION FOR FACILITIES AND
223	223	STATIONARY SOURCES
224	224	SUBCHAPTER A. GENERAL PROVISIONS
225	225	Sec. 391.001. DEFINITIONS. In this chapter:
226	226	(1) "Best available control technology" has the
227	227	meaning assigned by Section 169 of the federal Clean Air Act (42
228	228	U.S.C. Section 7479(3)).
229	229	(2) "Commission" means the Texas Commission on
230	230	Environmental Quality.
231	231	(3) "Facility" has the meaning assigned by Section
232	232	382.003.
233	233	(4) "Incremental cost" has the meaning assigned by
234	234	Section 386.001.
235	235	(5) "New technology" means emissions control
236	236	technology that results in emissions reductions that exceed state
237	237	or federal requirements in effect at the time of submission of a new
238	238	technology implementation grant application.
239	239	(6) "Stationary source" has the meaning assigned by
240	240	Section 302 of the federal Clean Air Act (42 U.S.C. Section
241	241	7602(z)).
242	242	Sec. 391.002. GRANT PROGRAM. (a) The commission shall
243	243	establish and administer a new technology implementation grant
244	244	program to assist the implementation of new technologies to reduce
245	245	emissions from facilities and other stationary sources in this
246	246	state. Under the program, the commission shall provide grants or
247	247	other financial incentives for eligible projects to offset the
248	248	incremental cost of emissions reductions.
249	249	(b) Projects that may be considered for a grant under the
250	250	program include:
251	251	(1) advanced clean energy projects, as defined by
252	252	Section 382.003;
253	253	(2) new technology projects that reduce emissions of
254	254	regulated pollutants from point sources and involve capital
255	255	expenditures that exceed $500 million; and
256	256	(3) electricity storage projects related to renewable
257	257	energy.
258	258	Sec. 391.003. GUIDELINES AND CRITERIA. (a) The commission
259	259	shall adopt grant guidelines and criteria consistent with the
260	260	requirements of this chapter.
261	261	(b) The guidelines must include:
262	262	(1) protocols to compute projected emissions
263	263	reductions and project cost-effectiveness; and
264	264	(2) safeguards to ensure that the projects funded
265	265	result in emissions reductions not otherwise required by state or
266	266	federal law.
267	267	(c) The commission may propose revisions to the guidelines
268	268	and criteria adopted under this section as necessary to improve the
269	269	ability of the program to achieve the program goals.
270	270	(d) The commission may adopt emergency rules under Section
271	271	2001.034, Government Code, with abbreviated notice, to carry out
272	272	any rulemaking necessary to implement this chapter.
273	273	(e) Except as provided by Subsection (d), the rulemaking
274	274	requirements of Chapter 2001, Government Code, do not apply to the
275	275	adoption or revision of guidelines and criteria under this section.
276	276	Sec. 391.004. AVAILABILITY OF EMISSIONS REDUCTION CREDITS
277	277	IN CERTAIN NONATTAINMENT AREAS. A project funded under this
278	278	chapter must comply with Sections 386.055 and 386.056, as
279	279	applicable.
280	280	[Sections 391.005-391.100 reserved for expansion]
281	281	SUBCHAPTER B. GRANT APPLICATIONS AND REVIEW
282	282	Sec. 391.101. APPLICATION FOR GRANT. (a) The owner of a
283	283	facility located in this state may apply for a grant under the
284	284	program established under Section 391.002. To improve the ability
285	285	of the program to achieve the program goals, the commission may
286	286	adopt guidelines to allow a person other than the owner to apply for
287	287	and receive a grant.
288	288	(b) An application for a grant under this chapter must be
289	289	made on a form provided by the commission and must contain
290	290	information required by the commission, including:
291	291	(1) a detailed description of the proposed project;
292	292	(2) information necessary for the commission to
293	293	determine whether the project meets the commission's eligibility
294	294	requirements, including a statement of the amounts of any other
295	295	public financial assistance the project will receive; and
296	296	(3) other information the commission may require.
297	297	(c) An application for a grant under this chapter must
298	298	contain a plan for implementation of a program that will provide
299	299	project information and education to the public in the areas
300	300	subject to public notice under federal and state permitting
301	301	requirements for the proposed project until completion of the
302	302	permitting process. The plan must provide for a publicly
303	303	accessible informational Internet website.
304	304	Sec. 391.102. GRANT APPLICATION REVIEW PROCEDURES.
305	305	(a) The commission shall review an application for a grant for a
306	306	project authorized under this chapter according to dates specified
307	307	in a request for grant applications. If the commission determines
308	308	that an application is incomplete, the commission shall notify the
309	309	applicant and provide an explanation of the information missing
310	310	from the application. The commission shall evaluate the completed
311	311	application according to the guidelines and criteria adopted under
312	312	Section 391.003.
313	313	(b) To the extent possible, the commission shall coordinate
314	314	project review and approval with any timing constraints related to
315	315	project purchases or installations to be made by an applicant.
316	316	(c) The commission may deny a grant application for a
317	317	project that does not meet the applicable criteria or that the
318	318	commission determines is not made in good faith, is not credible, or
319	319	is not in compliance with this chapter or the goals of this chapter.
320	320	(d) Subject to the availability of funding, the commission
321	321	shall award a grant under this chapter in conjunction with the
322	322	execution of a contract that obligates the commission to make the
323	323	grant and the recipient to perform the actions described by the
324	324	recipient's grant application. Subject to Section 391.204, the
325	325	contract must incorporate provisions for recapturing grant money
326	326	for noncompliance with grant requirements. Grant money recaptured
327	327	under the contract provisions shall be deposited in the Texas
328	328	emissions reduction plan fund and reallocated for other projects
329	329	under this subchapter.
330	330	(e) An applicant may seek reimbursement for qualifying
331	331	equipment installed after the effective date of this program.
332	332	(f) In coordinating interagency application review
333	333	procedures, the commission shall:
334	334	(1) solicit review and comments from:
335	335	(A) the comptroller to assess:
336	336	(i) the financial stability of the
337	337	applicant;
338	338	(ii) the economic benefits and job creation
339	339	potential associated with the project; and
340	340	(iii) any other information related to the
341	341	duties of that office;
342	342	(B) the Public Utility Commission of Texas to
343	343	assess:
344	344	(i) the reliability of the proposed
345	345	technology;
346	346	(ii) the feasibility and
347	347	cost-effectiveness of electric transmission associated with the
348	348	project; and
349	349	(iii) any other information related to the
350	350	duties of that agency; and
351	351	(C) the Railroad Commission of Texas to assess:
352	352	(i) the availability and cost of the fuel
353	353	involved with the project; and
354	354	(ii) any other information related to the
355	355	duties of that agency;
356	356	(2) consider the comments received under Subdivision
357	357	(1) in the commission's grant award decision process; and
358	358	(3) as part of the report required by Section 391.104,
359	359	justify awards made to projects that have been negatively reviewed
360	360	by agencies under Subdivision (1).
361	361	(g) The commission may solicit review and comments from
362	362	other state agencies or other entities with subject matter
363	363	expertise applicable to the review of a grant application.
364	364	Sec. 391.103. EVIDENCE OF EMISSIONS REDUCTION POTENTIAL
365	365	REQUIRED. (a) An application for a new technology implementation
366	366	grant under this chapter must show reasonable evidence that the
367	367	proposed technology is capable of providing a significant reduction
368	368	in emissions.
369	369	(b) The commission shall consider specifically, for each
370	370	proposed new technology implementation grant application:
371	371	(1) the projected potential for reduced emissions and
372	372	the cost-effectiveness of the new technology;
373	373	(2) the potential for the new technology to contribute
374	374	significantly to air quality goals; and
375	375	(3) the strength of the implementation plan.
376	376	Sec. 391.104. REPORTING REQUIREMENTS. The commission
377	377	annually shall prepare a report that summarizes the applications
378	378	received and grants awarded in the preceding year. Preparation of
379	379	the report must include the participation of the state agencies
380	380	involved in the review of applications under Section 391.102.
381	381	[Sections 391.105-391.200 reserved for expansion]
382	382	SUBCHAPTER C. PROJECT REQUIREMENTS
383	383	Sec. 391.201. ELIGIBILITY OF PROJECTS FOR GRANTS. (a) The
384	384	commission shall establish criteria for prioritizing projects
385	385	eligible to receive grants under this chapter. The commission
386	386	shall review and may modify the criteria and priorities as
387	387	appropriate.
388	388	(b) A proposed project must meet the requirements of this
389	389	section to be eligible for a grant under the program established
390	390	under Section 391.002.
391	391	(c) Each proposed project must meet the cost-effectiveness
392	392	requirements established by the commission.
393	393	(d) A new technology implementation project must document,
394	394	in a manner acceptable to the commission, an achieved reduction
395	395	from the baseline emissions adopted by the commission for the
396	396	relevant facility or stationary source. After studying available
397	397	emissions reduction technologies, the commission may impose a
398	398	required minimum percentage reduction of emissions to improve the
399	399	ability of the program to achieve the program goals.
400	400	(e) If a baseline emissions standard does not exist for a
401	401	facility, the commission, for purposes of this subchapter, shall
402	402	adopt an appropriate baseline emissions level for comparison
403	403	purposes.
404	404	(f) Planned water usage for proposed projects must be
405	405	consistent with the state water plan.
406	406	Sec. 391.202. EVALUATING COST-EFFECTIVENESS. The
407	407	commission shall establish reasonable methodologies for evaluating
408	408	project cost-effectiveness, consistent with accepted methods.
409	409	Sec. 391.203. DETERMINATION OF GRANT AMOUNT. (a) The
410	410	commission may not award a grant that, net of taxes, provides an
411	411	amount that exceeds the incremental cost of the proposed project.
412	412	(b) In determining the amount of a grant under this
413	413	subchapter, the commission shall reduce the incremental cost of a
414	414	proposed project by the value of any existing financial incentive
415	415	that directly reduces the cost of the proposed project, including
416	416	tax credits or deductions, other grants, or any other public
417	417	financial assistance.
418	418	Sec. 391.204. COST SHARING; RECAPTURING GRANT. (a) The
419	419	commission shall require an applicant to bear at least 50 percent of
420	420	the costs of implementing a project funded under this chapter.
421	421	(b) The commission may not require repayment of grant money,
422	422	except that the commission must require provisions for recapturing
423	423	grant money for noncompliance with grant requirements.
424	424	Sec. 391.205. PREFERENCES. (a) Except as provided by
425	425	Subsection (c), in awarding grants under this chapter the
426	426	commission shall give preference to projects that:
427	427	(1) use natural resources originating or produced in
428	428	this state;
429	429	(2) contain an energy efficiency component; or
430	430	(3) include the use of solar, wind, or other renewable
431	431	energy sources.
432	432	(b) Projects that include more than one of the criteria
433	433	described by Subsection (a) shall be given a greater preference in
434	434	the award of grants under this chapter.
435	435	(c) The commission may give preference under Subsection (a)
436	436	only if the cost-effectiveness and emission performance of the
437	437	project are comparable to those of a project not claiming a
438	438	preference described by that subsection.
439	439	[Sections 391.206-391.300 reserved for expansion]
440	440	SUBCHAPTER D. FUNDING; EXPIRATION
441	441	Sec. 391.301. RESTRICTION ON USE OF GRANT. A recipient of a
442	442	grant under this chapter must use the grant to pay the incremental
443	443	costs of the purchase and installation of the project for which the
444	444	grant is made, which may include reasonable and necessary expenses
445	445	for the labor needed to install emissions-reducing equipment. The
446	446	recipient may not use the grant for the costs of operating and
447	447	maintaining the emissions-reducing equipment.
448	448	Sec. 391.302. COMPTROLLER REVIEW OF USE OF GRANT FUNDS. (a)
449	449	The comptroller annually shall conduct a review of each recipient
450	450	of a new technology implementation grant under this chapter to
451	451	ensure that the recipient's use of the grant complies with state law
452	452	and the terms of the award.
453	453	(b) To assist with a review under this section, the
454	454	commission shall provide the comptroller with all monitoring
455	455	reports received from grant recipients and any other documentation
456	456	requested by the comptroller.
457	457	(c) On a finding of any misuse of grant money or other
458	458	noncompliance with grant requirements, the comptroller shall
459	459	provide a report to the commission with recommendations for
460	460	subsequent action, including the recapture of money misused.
461	461	(d) A finding of any misuse of grant money by a recipient of
462	462	a grant under this chapter results in a debt owed to the state, and
463	463	the comptroller may withhold warrants and electronic funds
464	464	transfers to the recipient in accordance with Section 403.055,
465	465	Government Code.
466	466	(e) The comptroller may contract with another state agency,
467	467	an institution of higher education, or a private entity to conduct a
468	468	review under this section or to assist the comptroller in
469	469	conducting any part of the review.
470	470	(f) The comptroller may adopt rules to implement this
471	471	section.
472	472	Sec. 391.303. TIME OF USE OF GRANT FUNDING. Money
473	473	appropriated for grants to be made by the commission under this
474	474	chapter for a fiscal year may be distributed in subsequent fiscal
475	475	years if the grant has been awarded and treated as a binding
476	476	encumbrance by the commission before the end of the appropriation
477	477	year of the money appropriated for grant purposes. Distribution of
478	478	the grant money is subject to Section 403.071, Government Code.
479	479	Sec. 391.304. EXPIRATION. This chapter expires August 31,
480	480	2019.
481	481	SECTION 10. Section 403.071(b), Government Code, is amended
482	482	to read as follows:
483	483	(b) A claim may not be paid from an appropriation unless the
484	484	claim is presented to the comptroller for payment not later than two
485	485	years after the end of the fiscal year for which the appropriation
486	486	was made. However, a claim may be presented not later than four
487	487	years after the end of the fiscal year for which the appropriation
488	488	from which the claim is to be paid was made if the appropriation
489	489	relates to new construction contracts, to grants awarded under
490	490	Chapter 391, Health and Safety Code, or to repair and remodeling
491	491	projects that exceed the amount of $20,000, including furniture and
492	492	other equipment, architects' and engineering fees, and other costs
493	493	related to the contracts or projects.
494	494	SECTION 11. Section 382.0622(a), Health and Safety Code, is
495	495	amended to read as follows:
496	496	(a) Clean Air Act fees consist of:
497	497	(1) fees collected by the commission under Sections
498	498	382.062, 382.0621, 382.202, and 382.302 and as otherwise provided
499	499	by law; [and]
500	500	(2) $2 of each advance payment collected by the
501	501	Department of Public Safety for inspection certificates for
502	502	vehicles other than mopeds under Section 548.501, Transportation
503	503	Code; and
504	504	(3) fees collected that are required under Section 185
505	505	of the federal Clean Air Act (42 U.S.C. Section 7511d).
506	506	SECTION 12. Section 382.210(d), Health and Safety Code, is
507	507	amended to read as follows:
508	508	(d) A participating county shall provide an electronic
509	509	means for distributing vehicle repair or replacement funds once all
510	510	program criteria have been met with regard to the repair or
511	511	replacement. The county shall ensure that funds are transferred to
512	512	a participating dealer under this section not later than the 10th
513	513	[five] business day [days] after the date the county receives proof
514	514	of the sale and any required administrative documents from the
515	515	participating dealer.
516	516	SECTION 13. Sections 382.220(c) and (d), Health and Safety
517	517	Code, are amended to read as follows:
518	518	(c) Money that is made available for the implementation of a
519	519	program under Subsection (b) may not be expended for local
520	520	government fleet or vehicle acquisition or replacement, call center
521	521	management, application oversight, invoice analysis, education,
522	522	outreach, or advertising purposes.
523	523	(d) Fees collected under Sections 382.202 and 382.302 may be
524	524	used, in an amount not to exceed $5 million per fiscal year, for
525	525	projects described by Subsection (b). The fees shall be made
526	526	available only to counties participating in the low-income vehicle
527	527	repair assistance, retrofit, and accelerated vehicle retirement
528	528	programs created under Section 382.209 and only on a matching
529	529	basis, whereby the commission provides money to a county in the same
530	530	amount that the county dedicates to a project authorized by
531	531	Subsection (b). The commission may reduce the match requirement
532	532	for a county that proposes to develop and implement independent
533	533	test facility fraud detection programs, including the use of remote
534	534	sensing technology for coordinating with law enforcement officials
535	535	to detect, prevent, and prosecute the use of counterfeit state
536	536	inspection stickers.
537	537	SECTION 14. Section 386.001, Health and Safety Code, is
538	538	amended by adding Subdivision (10-a) to read as follows:
539	539	(10-a) "Stationary engine" means a machine used in a
540	540	nonmobile application that converts fuel into mechanical motion,
541	541	including turbines and other internal combustion devices.
542	542	SECTION 15. Section 386.002, Health and Safety Code, is
543	543	amended to read as follows:
544	544	Sec. 386.002. EXPIRATION. This chapter expires August 31,
545	545	2019 [2013].
546	546	SECTION 16. Section 386.104(c), Health and Safety Code, is
547	547	amended to read as follows:
548	548	(c) For a proposed project as described by Section
549	549	386.102(b), other than a project involving a marine vessel or
550	550	engine, not less than 75 percent of vehicle miles traveled or hours
551	551	of operation projected for the five years immediately following the
552	552	award of a grant must be projected to take place in a nonattainment
553	553	area or affected county of this state. The commission may also
554	554	allow vehicle travel on highways and roadways, or portions of a
555	555	highway or roadway, designated by the commission and located
556	556	outside a nonattainment area or affected county to count towards
557	557	the percentage of use requirement in this subsection. For a
558	558	proposed project involving a marine vessel or engine, the vessel or
559	559	engine must be operated in the intercoastal waterways or bays
560	560	adjacent to a nonattainment area or affected county of this state
561	561	for a sufficient amount of time over the lifetime of the project, as
562	562	determined by the commission, to meet the cost-effectiveness
563	563	requirements of Section 386.105. For a proposed project involving
564	564	non-road equipment used for natural gas recovery purposes, the
565	565	equipment must be operated in a nonattainment area or affected
566	566	county for a sufficient amount of use over the lifetime of the
567	567	project, as determined by the commission, to meet the
568	568	cost-effectiveness requirements of Section 386.105.
569	569	SECTION 17. Section 390.006, Health and Safety Code, is
570	570	amended to read as follows:
571	571	Sec. 390.006. EXPIRATION. This chapter expires August 31,
572	572	2019 [2013].
573	573	SECTION 18. Section 151.0515(d), Tax Code, is amended to
574	574	read as follows:
575	575	(d) This section expires August 31, 2019 [2013].
576	576	SECTION 19. Section 152.0215(c), Tax Code, is amended to
577	577	read as follows:
578	578	(c) This section expires August 31, 2019 [2013].
579	579	SECTION 20. Section 501.138(b-3), Transportation Code, is
580	580	amended to read as follows:
581	581	(b-3) This subsection and Subsection (b-2) expire August
582	582	31, 2019 [September 1, 2015].
583	583	SECTION 21. Section 502.1675(c), Transportation Code, is
584	584	amended to read as follows:
585	585	(c) This section expires August 31, 2019 [2013].
586	586	SECTION 22. Section 548.5055(c), Transportation Code, is
587	587	amended to read as follows:
588	588	(c) This section expires August 31, 2019 [2013].
589	589	SECTION 23. Sections 386.252(a) and (b), Health and Safety
590	590	Code, are amended to read as follows:
591	591	(a) Money in the fund may be used only to implement and
592	592	administer programs established under the plan and shall be
593	593	allocated as follows:
594	594	(1) for the diesel emissions reduction incentive
595	595	program, 87.5 percent of the money in the fund, of which:
596	596	(A) not more than four percent may be used for the
597	597	clean school bus program;
598	598	(B) [and] not more than 10 percent may be used for
599	599	on-road diesel purchase or lease incentives; and
600	600	(C) a specified amount may be used for the new
601	601	technology implementation grant program, from which a defined
602	602	amount may be set aside for electricity storage projects related to
603	603	renewable energy;
604	604	(2) for the new technology research and development
605	605	program, nine [9.5] percent of the money in the fund, of which:
606	606	(A) up to [$250,000 is allocated for
607	607	administration, up to] $200,000 is allocated for a health effects
608	608	study;
609	609	(B) [,] $500,000 is to be deposited in the state
610	610	treasury to the credit of the clean air account created under
611	611	Section 382.0622 to supplement funding for air quality planning
612	612	activities in affected counties;
613	613	(C) [,] not less than 20 percent is to be
614	614	allocated each year to support research related to air quality as
615	615	provided by Section 387.010; [for the Houston-Galveston-Brazoria
616	616	and Dallas-Fort Worth nonattainment areas by a nonprofit
617	617	organization based in Houston of which $216,000 each year shall be
618	618	contracted to the Energy Systems Laboratory at the Texas
619	619	Engineering Experiment Station for the development and annual
620	620	calculation of creditable statewide emissions reductions obtained
621	621	through wind and other renewable energy resources for the State
622	622	Implementation Plan,] and
623	623	(D) the balance is [to be] allocated each year to
624	624	the commission [a nonprofit organization or an institution of
625	625	higher education based in Houston] to be used to:
626	626	(i) implement and administer the new
627	627	technology research and development program [under a contract with
628	628	the commission] for the purpose of identifying, testing, and
629	629	evaluating new emissions-reducing technologies with potential for
630	630	commercialization in this state and to facilitate their
631	631	certification or verification; and
632	632	(ii) contract with the Energy Systems
633	633	Laboratory at the Texas Engineering Experiment Station for $216,000
634	634	annually for the development and annual computation of creditable
635	635	statewide emissions reductions obtained through wind and other
636	636	renewable energy resources for the state implementation plan; and
637	637	(3) two percent is allocated to the commission and 1.5
638	638	percent is allocated to the laboratory for administrative costs
639	639	incurred by the commission and the laboratory[, three percent of
640	640	the money in the fund].
641	641	(b) The [Up to 25 percent of the] money allocated under
642	642	Subsection (a) to a particular program [and not expended under that
643	643	program by January 1 of the second fiscal year of a fiscal biennium]
644	644	may be used for another program under the plan as determined by the
645	645	commission [in consultation with the advisory board].
646	646	SECTION 24. Section 387.003, Health and Safety Code, is
647	647	amended to read as follows:
648	648	Sec. 387.003. NEW TECHNOLOGY RESEARCH AND DEVELOPMENT
649	649	PROGRAM. (a) The commission [A nonprofit organization or
650	650	institution of higher education described by Section
651	651	386.252(a)(2), under a contract with the commission as described by
652	652	that section,] shall establish and administer a new technology
653	653	research and development program as provided by this chapter. The
654	654	commission may contract with one or more well-qualified nonprofit
655	655	organizations or institutions of higher education for
656	656	administration of this program [than one entity and may limit the
657	657	amount of each grant contract accordingly].
658	658	(b) Under the program, the commission shall provide grants
659	659	[to be used] to support development of emissions-reducing
660	660	technologies that may be used for projects eligible for awards
661	661	under Chapters [Chapter] 386 and 391 and other new technologies
662	662	that show promise for commercialization. The primary objective of
663	663	this chapter is to promote the development of commercialization
664	664	technologies to reduce emissions of oxides of nitrogen in
665	665	nonattainment areas designated in this state [that will support
666	666	projects that may be funded under Chapter 386 and this chapter,
667	667	including advanced technologies such as fuel cells, catalysts, and
668	668	fuel additives].
669	669	(c) If the commission contracts with one or more [The board
670	670	of directors of a] nonprofit organizations to [organization under
671	671	contract with the commission to establish and] administer a new
672	672	technology research and development program under [as provided by]
673	673	this chapter, the board of directors of each organization may not
674	674	have more than 11 members, must include two persons of relevant
675	675	scientific expertise to be nominated by the commission, and may not
676	676	include more than four county judges [selected from counties in the
677	677	Houston-Galveston-Brazoria and Dallas-Fort Worth nonattainment
678	678	areas]. The two persons of relevant scientific expertise to be
679	679	nominated by the commission may be employees or officers of the
680	680	commission, provided that they do not participate in funding
681	681	decisions affecting the granting of funds by the commission to a
682	682	nonprofit organization on whose board they serve.
683	683	(d) [The commission may enter into a grant contract with an
684	684	institution of higher education described by Section 386.252(a)(2)
685	685	for the institution to operate a testing facility which would be
686	686	available for demonstration of eligible projects receiving grants
687	687	under this chapter.
688	688	[(e)] The commission shall provide oversight as appropriate
689	689	for grants provided to a nonprofit organization or an institution
690	690	of higher education under this program.
691	691	(e) [(f)] A nonprofit organization or an institution of
692	692	higher education shall submit to the commission for approval a
693	693	budget for the disposition of funds granted under this program.
694	694	(f) [(g)] The commission shall limit the use of grants for
695	695	administrative costs incurred by a nonprofit organization or an
696	696	institution of higher education to an amount not to exceed 10
697	697	percent of the total program funding [provided to the nonprofit
698	698	organization under this program].
699	699	(g) [(h)] A nonprofit organization that receives grants
700	700	from the commission under this program is subject to Chapters 551
701	701	and 552, Government Code.
702	702	SECTION 25. Section 387.004, Health and Safety Code, is
703	703	amended to read as follows:
704	704	Sec. 387.004. SOLICITATION OF NEW TECHNOLOGY PROPOSALS.
705	705	The commission from time to time shall issue or contract with a
706	706	nonprofit organization or an institution of higher education
707	707	described by Section 387.003(a) [386.252(a)(2)] to issue specific
708	708	requests for proposals (RFPs) or program opportunity notices (PONs)
709	709	for technology projects to be funded under the program.
710	710	SECTION 26. Sections 387.005(a), (b), and (f), Health and
711	711	Safety Code, are amended to read as follows:
712	712	(a) Grants awarded under this chapter shall be directed
713	713	toward a balanced mix of:
714	714	(1) retrofit and add-on technologies and other
715	715	advanced technologies that reduce emissions from the existing stock
716	716	of engines and vehicles targeted by the Texas emissions reduction
717	717	plan, provided that the technologies do not significantly reduce
718	718	the fuel economy of those engines and vehicles;
719	719	(2) [the establishment of a testing facility to
720	720	evaluate retrofits, add-ons, advanced technologies, and fuels, or
721	721	combinations of retrofits, add-ons, advanced technologies, and
722	722	fuels, to determine their effectiveness in producing emissions
723	723	reductions, with emphasis on the reduction of oxides of nitrogen;
724	724	and
725	725	[(3)] advanced technologies for new engines and
726	726	vehicles that produce very-low or zero emissions of oxides of
727	727	nitrogen, including stationary and mobile fuel cells;
728	728	(3) advanced technologies for reducing oxides of
729	729	nitrogen and other emissions from stationary sources; and
730	730	(4) field validation of innovative technologies that:
731	731	(A) reduce emissions of oxides of nitrogen and
732	732	other emissions; and
733	733	(B) require demonstration of viability for full
734	734	commercial acceptance.
735	735	(b) The commission, directly or through a nonprofit
736	736	organization or an institution of higher education described by
737	737	Section 387.003(a) [386.252(a)(2)], shall identify and evaluate
738	738	and may consider making grants for technology projects that would
739	739	allow qualifying fuels to be produced from energy resources in this
740	740	state. In considering projects under this subsection, the
741	741	commission shall give preference to projects involving otherwise
742	742	unusable energy resources in this state and producing qualifying
743	743	fuels at prices lower than otherwise available and low enough to
744	744	make the projects to be funded under the program economically
745	745	attractive to local businesses in the area for which the project is
746	746	proposed.
747	747	(f) Selection of grant recipients by a nonprofit
748	748	organization or an institution of higher education described by
749	749	Section 387.003(a) [386.252(a)(2)] under contract with the
750	750	commission for the purpose of establishing and administering a new
751	751	technology research and development program as provided by this
752	752	chapter is subject to the commission's review and to the other
753	753	requirements of this chapter. A grant contract under this chapter
754	754	using funds described by Section 386.252 may not be made by a
755	755	nonprofit organization or an institution of higher education if the
756	756	commission or executive director of the commission does not consent
757	757	to the grant or contract.
758	758	SECTION 27. Section 387.006, Health and Safety Code, is
759	759	amended to read as follows:
760	760	Sec. 387.006. EVIDENCE OF COMMERCIALIZATION POTENTIAL
761	761	REQUIRED. (a) An application for a technology grant under this
762	762	chapter must show reasonable [clear and compelling] evidence that:
763	763	(1) the proposed technology project has a substantial
764	764	[strong] commercialization plan and organization; and
765	765	(2) the technology proposed for funding[:
766	766	[(A)] is likely to be offered for commercial sale
767	767	in this state as soon as practicable [but no later than five years]
768	768	after the date of the application for funding[; and
769	769	[(B) once commercialized, will offer
770	770	opportunities for projects eligible for funding under Chapter 386].
771	771	(b) The commission shall consider specifically, for each
772	772	proposed technology project application:
773	773	(1) the projected potential for reduced emissions of
774	774	oxides of nitrogen and the cost-effectiveness of the technology
775	775	once it has been commercialized, including the impact on fuel
776	776	consumption and maintenance costs for retrofits and rebuilds;
777	777	(2) the potential for the technology to contribute
778	778	significantly to air quality goals; and
779	779	(3) the strength of the commercialization plan.
780	780	SECTION 28. Chapter 387, Health and Safety Code, is amended
781	781	by adding Section 387.010 to read as follows:
782	782	Sec. 387.010. AIR QUALITY RESEARCH. (a) The commission
783	783	shall contract with a nonprofit organization or institution of
784	784	higher education to establish and administer a program to support
785	785	research related to air quality.
786	786	(b) The board of directors of a nonprofit organization
787	787	establishing and administering the research program related to air
788	788	quality under this section may not have more than 11 members, must
789	789	include two persons with relevant scientific expertise to be
790	790	nominated by the commission, and may not include more than four
791	791	county judges selected from counties in the
792	792	Houston-Galveston-Brazoria and Dallas-Fort Worth nonattainment
793	793	areas. The two persons with relevant scientific expertise to be
794	794	nominated by the commission may be employees or officers of the
795	795	commission, provided that they do not participate in funding
796	796	decisions affecting the granting of funds by the commission to a
797	797	nonprofit organization on whose board they serve.
798	798	(c) The commission shall provide oversight as appropriate
799	799	for grants provided under the program established under this
800	800	section.
801	801	(d) A nonprofit organization or institution of higher
802	802	education shall submit to the commission for approval a budget for
803	803	the disposition of funds granted under the program established
804	804	under this section.
805	805	(e) A nonprofit organization or institution of higher
806	806	education shall be reimbursed for costs incurred in establishing
807	807	and administering the research program related to air quality under
808	808	this section. Reimbursable administrative costs of a nonprofit
809	809	organization or institution of higher education may not exceed 10
810	810	percent of the program budget.
811	811	(f) A nonprofit organization that receives grants from the
812	812	commission under this section is subject to Chapters 551 and 552,
813	813	Government Code.
814	814	SECTION 29. Chapter 382, Health and Safety Code, is amended
815	815	by adding Subchapter J to read as follows:
816	816	SUBCHAPTER J. FEDERAL GREENHOUSE GAS REPORTING RULE
817	817	Sec. 382.501. DEVELOPMENT OF FEDERAL GREENHOUSE GAS
818	818	REPORTING RULE. (a) The commission and the Railroad Commission of
819	819	Texas, the Department of Agriculture, and the Public Utility
820	820	Commission of Texas shall jointly participate in the federal
821	821	government process for developing federal greenhouse gas reporting
822	822	requirements and the federal greenhouse gas registry requirements.
823	823	(b) The commission shall adopt rules as necessary to comply
824	824	with any federal greenhouse gas reporting requirements adopted by
825	825	the federal government for private and public facilities eligible
826	826	to participate in the federal greenhouse gas registry. In adopting
827	827	the rules, the commission shall adopt and incorporate by reference
828	828	rules implementing the federal reporting requirements and the
829	829	federal registry.
830	830	Sec. 382.502. VOLUNTARY ACTIONS INVENTORY. The commission
831	831	shall:
832	832	(1) establish an inventory of voluntary actions taken
833	833	by businesses in this state or by state agencies since September 1,
834	834	2001, to reduce carbon dioxide emissions; and
835	835	(2) work with the United States Environmental
836	836	Protection Agency to give credit for early action under any federal
837	837	rules that may be adopted for federal greenhouse gas regulation.
838	838	SECTION 30. The purpose of the changes in law made by this
839	839	Act is to encourage the development of onshore and offshore
840	840	geologic storage of carbon dioxide including by encouraging the
841	841	development of advanced clean energy projects that capture carbon
842	842	dioxide and sequester not less than 50 percent of the captured
843	843	carbon dioxide in onshore or offshore geologic repositories.
844	844	Securing the necessary capacity for geologic sequestration is
845	845	essential to the success of carbon capture strategies, such as the
846	846	advanced clean energy projects facilitated by the changes in law
847	847	made by this Act. The success of the offshore repositories
848	848	facilitated by this Act depends on an adequate supply of
849	849	anthropogenic carbon dioxide, which is not currently being captured
850	850	at industrial facilities in this state. The advanced clean energy
851	851	grants established in this Act are intended to create the supply of
852	852	anthropogenic carbon dioxide necessary to the success of the
853	853	offshore repositories facilitated by this Act.
854	854	SECTION 31. This Act takes effect September 1, 2009.
855	855	______________________________ ______________________________
856	856	President of the Senate Speaker of the House
857	857	I certify that H.B. No. 1796 was passed by the House on May 7,
858	858	2009, by the following vote: Yeas 144, Nays 0, 1 present, not
859	859	voting; that the House refused to concur in Senate amendments to
860	860	H.B. No. 1796 on May 29, 2009, and requested the appointment of a
861	861	conference committee to consider the differences between the two
862	862	houses; and that the House adopted the conference committee report
863	863	on H.B. No. 1796 on May 31, 2009, by the following vote: Yeas 143,
864	864	Nays 0, 1 present, not voting.
865	865	______________________________
866	866	Chief Clerk of the House
867	867	I certify that H.B. No. 1796 was passed by the Senate, with
868	868	amendments, on May 27, 2009, by the following vote: Yeas 31, Nays
869	869	0; at the request of the House, the Senate appointed a conference
870	870	committee to consider the differences between the two houses; and
871	871	that the Senate adopted the conference committee report on H.B. No.
872	872	1796 on June 1, 2009, by the following vote: Yeas 31, Nays 0.
873	873	______________________________
874	874	Secretary of the Senate
875	875	APPROVED: __________________
876	876	Date
877	877	__________________
878	878	Governor