H.B. No. 1796
AN ACT
relating to the development of carbon dioxide capture and
sequestration in this state.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Chapter 382, Health and Safety Code, is amended
by adding Subchapter K to read as follows:
SUBCHAPTER K. OFFSHORE GEOLOGIC STORAGE OF CARBON DIOXIDE
Sec. 382.501. DEFINITIONS. In this subchapter:
(1) "Board" means the School Land Board.
(2) "Bureau" means the Bureau of Economic Geology at
The University of Texas at Austin.
(3) "Carbon dioxide repository" means an offshore deep
subsurface geologic repository for the storage of anthropogenic
carbon dioxide.
(4) "Land commissioner" means the commissioner of the
General Land Office.
Sec. 382.502. RULES. (a) The commission by rule may adopt
standards for the location, construction, maintenance, monitoring,
and operation of a carbon dioxide repository.
(b) If the United States Environmental Protection Agency
issues requirements regarding carbon dioxide sequestration, the
commission shall ensure that the construction, maintenance,
monitoring, and operation of the carbon dioxide repository under
this subchapter comply with those requirements.
Sec. 382.503. STUDY; SELECTION OF LOCATION. (a) The land
commissioner shall contract with the bureau to conduct a study of
state-owned offshore submerged land to identify potential
locations for a carbon dioxide repository.
(b) The land commissioner shall recommend suitable sites
for carbon dioxide storage to the board based on the findings of the
study.
(c) The board shall make the final determination of suitable
locations for carbon dioxide storage.
Sec. 382.504. CONTRACT FOR NECESSARY INFRASTRUCTURE AND
OPERATION. (a) Once the location has been established for the
carbon dioxide repository, the board may issue requests for
proposals for the lease of permanent school fund land for the
construction of any necessary infrastructure for the
transportation and storage of carbon dioxide to be stored in the
carbon dioxide repository.
(b) The board may contract for construction or operational
services for the repository.
Sec. 382.505. ACCEPTANCE OF CARBON DIOXIDE FOR STORAGE;
FEES AND CARBON CREDITS. (a) Once the carbon dioxide repository is
established, the board may accept carbon dioxide for storage.
(b) The board by rule may establish a fee for the storage of
carbon dioxide in the carbon dioxide repository. If this state
participates in a program that facilitates the trading of carbon
credits, a fee under this subsection may be established as a
percentage of the carbon credits associated with the storage.
Sec. 382.506. MEASURING, MONITORING, AND VERIFICATION;
ROLE OF BUREAU. (a) The commission by rule may establish standards
for the measurement, monitoring, and verification of the permanent
storage status of the carbon dioxide in the carbon dioxide
repository.
(b) The bureau shall perform the measurement, monitoring,
and verification of the permanent storage status of carbon dioxide
in the carbon dioxide repository.
(c) The bureau shall serve as a scientific advisor for the
measuring, monitoring, and permanent storage status verification
of the carbon dioxide repository.
(d) The bureau shall provide to the board data relating to
the measurement, monitoring, and verification of the permanent
storage status of the carbon dioxide in the carbon dioxide
repository, as determined by the board.
Sec. 382.507. OWNERSHIP OF CARBON DIOXIDE. (a) The board
shall acquire title to carbon dioxide stored in the carbon dioxide
repository on a determination by the board that permanent storage
has been verified and that the storage location has met all
applicable state and federal requirements for closure of carbon
dioxide storage sites.
(b) The right, title, and interest in carbon dioxide
acquired under this section are the property of the permanent
school fund and shall be administered and controlled by the board.
Sec. 382.508. LIABILITY. (a) The transfer of title to the
state under Section 382.507 does not relieve a producer of carbon
dioxide of liability for any act or omission regarding the
generation of stored carbon dioxide performed before the carbon
dioxide was stored.
(b) On the date the permanent school fund, under Section
382.507, acquires the right, title, and interest in carbon dioxide,
the producer of the carbon dioxide is relieved of liability for any
act or omission regarding the carbon dioxide in the carbon dioxide
repository.
(c) This section does not relieve a person who contracts
with the board under Section 382.504(b) of liability for any act or
omission regarding the construction or operation, as applicable, of
the carbon dioxide repository.
Sec. 382.509. RATES FOR TRANSPORTATION. Neither the
commission nor the board may establish or regulate the rates
charged for the transportation of carbon dioxide to the carbon
dioxide repository.
Sec. 382.510. ANNUAL REPORT. The land commissioner shall
issue annually a report regarding the carbon dioxide repository.
The report may be submitted electronically by posting on the
General Land Office's Internet website. The report must include
information regarding:
(1) the total volume of carbon dioxide stored;
(2) the total volume of carbon dioxide received for
storage during the year; and
(3) the volume of carbon dioxide received from each
producer of carbon dioxide.
SECTION 2. This Act does not make an appropriation. A
provision in this Act that creates a new governmental program,
creates a new entitlement, or imposes a new duty on a governmental
entity is not mandatory unless a specific appropriation has been
made to implement the provision or it is determined by the agency
that the provisions imposed by this Act may be absorbed within
agency resources during the fiscal period without additional state
funding.
SECTION 3. Section 382.003(1-a), Health and Safety Code, is
amended to read as follows:
(1-a) "Advanced clean energy project" means a project
for which an application for a permit or for an authorization to use
a standard permit under this chapter is received by the commission
on or after January 1, 2008, and before January 1, 2020, and that:
(A) involves the use of coal, biomass, petroleum
coke, solid waste, or fuel cells using hydrogen derived from such
fuels, in the generation of electricity, or the creation of liquid
fuels outside of the existing fuel production infrastructure while
co-generating electricity, whether the project is implemented in
connection with the construction of a new facility or in connection
with the modification of an existing facility and whether the
project involves the entire emissions stream from the facility or
only a portion of the emissions stream from the facility;
(B) with regard to the portion of the emissions
stream from the facility that is associated with the project, is
capable of achieving:
(i) on an annual basis a 99 percent or
greater reduction of sulfur dioxide emissions or, if the project is
designed for the use of feedstock substantially all of which is
subbituminous coal, an emission rate of 0.04 pounds or less of
sulfur dioxide per million British thermal units as determined by a
30-day average;
(ii) on an annual basis[,] a 95 percent or
greater reduction of mercury emissions;
(iii) [, and] an annual average emission
rate for nitrogen oxides of:
(a) 0.05 pounds or less per million
British thermal units; or
(b) if the project uses gasification
technology, 0.034 pounds or less per million British thermal units;
and
(iv) an annual average emission rate for
filterable particulate matter of 0.015 pounds or less per million
British thermal units; and
(C) captures not less than 50 percent of the
[renders] carbon dioxide in the portion of the emissions stream
from the facility that is associated with the project and
sequesters that captured carbon dioxide by geologic storage or
other means [capable of capture, sequestration, or abatement if any
carbon dioxide is produced by the project].
SECTION 4. Section 382.0567(b), Health and Safety Code, is
amended to read as follows:
(b) The commission may not consider any technology or level
of emission reduction to be achievable for purposes of a best
available control technology analysis or lowest achievable
emission rate analysis conducted by the commission under another
provision of this chapter solely because the technology is used or
the emission reduction is achieved by a facility receiving an
incentive as an advanced clean energy project or new technology
project, as described by Section 391.002.
SECTION 5. Section 386.051(b), Health and Safety Code, is
amended to read as follows:
(b) Under the plan, the commission and the comptroller shall
provide grants or other funding for:
(1) the diesel emissions reduction incentive program
established under Subchapter C, including for infrastructure
projects established under that subchapter;
(2) the motor vehicle purchase or lease incentive
program established under Subchapter D;
(3) the new technology research and development
program established under Chapter 387; [and]
(4) the clean school bus program established under
Chapter 390; and
(5) the new technology implementation grant program
established under Chapter 391.
SECTION 6. Section 386.052(b), Health and Safety Code, is
amended to read as follows:
(b) Appropriate commission objectives include:
(1) achieving maximum reductions in oxides of nitrogen
to demonstrate compliance with the state implementation plan;
(2) preventing areas of the state from being in
violation of national ambient air quality standards;
(3) achieving cost-saving and multiple benefits by
reducing emissions of other pollutants; [and]
(4) achieving reductions of emissions of diesel
exhaust from school buses; and
(5) advancing new technologies that reduce oxides of
nitrogen and other emissions from facilities and other stationary
sources.
SECTION 7. Section 386.057(b), Health and Safety Code, is
amended to read as follows:
(b) 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, shall publish and submit to
the legislature a biennial plan report. The report must include:
(1) the information included in the annual reviews
conducted under Subsection (a);
(2) specific information for individual projects as
required by Subsection (c);
(3) information contained in reports received under
Sections 386.205, 388.003(e), [and] 388.006, and 391.104; and
(4) a summary of the commission's activities under
Section 386.052.
SECTION 8. Section 386.251(c), Health and Safety Code, is
amended to read as follows:
(c) The fund consists of:
(1) the amount of money deposited to the credit of the
fund under:
(A) Section 386.056;
(B) Sections 151.0515 and 152.0215, Tax Code; and
(C) Sections 501.138, 502.1675, and 548.5055,
Transportation Code; and
(2) grant money recaptured under Section 386.111(d)
and Chapter 391.
SECTION 9. Subtitle C, Title 5, Health and Safety Code, is
amended by adding Chapter 391 to read as follows:
CHAPTER 391. NEW TECHNOLOGY IMPLEMENTATION FOR FACILITIES AND
STATIONARY SOURCES
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 391.001. DEFINITIONS. In this chapter:
(1) "Best available control technology" has the
meaning assigned by Section 169 of the federal Clean Air Act (42
U.S.C. Section 7479(3)).
(2) "Commission" means the Texas Commission on
Environmental Quality.
(3) "Facility" has the meaning assigned by Section
382.003.
(4) "Incremental cost" has the meaning assigned by
Section 386.001.
(5) "New technology" means emissions control
technology that results in emissions reductions that exceed state
or federal requirements in effect at the time of submission of a new
technology implementation grant application.
(6) "Stationary source" has the meaning assigned by
Section 302 of the federal Clean Air Act (42 U.S.C. Section
7602(z)).
Sec. 391.002. GRANT PROGRAM. (a) The commission shall
establish and administer a new technology implementation grant
program to assist the implementation of new technologies to reduce
emissions from facilities and other stationary sources in this
state. Under the program, the commission shall provide grants or
other financial incentives for eligible projects to offset the
incremental cost of emissions reductions.
(b) Projects that may be considered for a grant under the
program include:
(1) advanced clean energy projects, as defined by
Section 382.003;
(2) new technology projects that reduce emissions of
regulated pollutants from point sources and involve capital
expenditures that exceed $500 million; and
(3) electricity storage projects related to renewable
energy.
Sec. 391.003. GUIDELINES AND CRITERIA. (a) The commission
shall adopt grant guidelines and criteria consistent with the
requirements of this chapter.
(b) The guidelines must include:
(1) protocols to compute projected emissions
reductions and project cost-effectiveness; and
(2) safeguards to ensure that the projects funded
result in emissions reductions not otherwise required by state or
federal law.
(c) The commission may propose revisions to the guidelines
and criteria adopted under this section as necessary to improve the
ability of the program to achieve the program goals.
(d) The commission may adopt emergency rules under Section
2001.034, Government Code, with abbreviated notice, to carry out
any rulemaking necessary to implement this chapter.
(e) Except as provided by Subsection (d), the rulemaking
requirements of Chapter 2001, Government Code, do not apply to the
adoption or revision of guidelines and criteria under this section.
Sec. 391.004. AVAILABILITY OF EMISSIONS REDUCTION CREDITS
IN CERTAIN NONATTAINMENT AREAS. A project funded under this
chapter must comply with Sections 386.055 and 386.056, as
applicable.
[Sections 391.005-391.100 reserved for expansion]
SUBCHAPTER B. GRANT APPLICATIONS AND REVIEW
Sec. 391.101. APPLICATION FOR GRANT. (a) The owner of a
facility located in this state may apply for a grant under the
program established under Section 391.002. To improve the ability
of the program to achieve the program goals, the commission may
adopt guidelines to allow a person other than the owner to apply for
and receive a grant.
(b) An application for a grant under this chapter must be
made on a form provided by the commission and must contain
information required by the commission, including:
(1) a detailed description of the proposed project;
(2) information necessary for the commission to
determine whether the project meets the commission's eligibility
requirements, including a statement of the amounts of any other
public financial assistance the project will receive; and
(3) other information the commission may require.
(c) An application for a grant under this chapter must
contain a plan for implementation of a program that will provide
project information and education to the public in the areas
subject to public notice under federal and state permitting
requirements for the proposed project until completion of the
permitting process. The plan must provide for a publicly
accessible informational Internet website.
Sec. 391.102. GRANT APPLICATION REVIEW PROCEDURES.
(a) The commission shall review an application for a grant for a
project authorized under this chapter according to dates specified
in a request for grant applications. If the commission determines
that an application is incomplete, the commission shall notify the
applicant and provide an explanation of the information missing
from the application. The commission shall evaluate the completed
application according to the guidelines and criteria adopted under
Section 391.003.
(b) To the extent possible, the commission shall coordinate
project review and approval with any timing constraints related to
project purchases or installations to be made by an applicant.
(c) The commission may deny a grant application for a
project that does not meet the applicable criteria or that the
commission determines is not made in good faith, is not credible, or
is not in compliance with this chapter or the goals of this chapter.
(d) Subject to the availability of funding, the commission
shall award a grant under this chapter in conjunction with the
execution of a contract that obligates the commission to make the
grant and the recipient to perform the actions described by the
recipient's grant application. Subject to Section 391.204, the
contract must incorporate provisions for recapturing grant money
for noncompliance with grant requirements. Grant money recaptured
under the contract provisions shall be deposited in the Texas
emissions reduction plan fund and reallocated for other projects
under this subchapter.
(e) An applicant may seek reimbursement for qualifying
equipment installed after the effective date of this program.
(f) In coordinating interagency application review
procedures, the commission shall:
(1) solicit review and comments from:
(A) the comptroller to assess:
(i) the financial stability of the
applicant;
(ii) the economic benefits and job creation
potential associated with the project; and
(iii) any other information related to the
duties of that office;
(B) the Public Utility Commission of Texas to
assess:
(i) the reliability of the proposed
technology;
(ii) the feasibility and
cost-effectiveness of electric transmission associated with the
project; and
(iii) any other information related to the
duties of that agency; and
(C) the Railroad Commission of Texas to assess:
(i) the availability and cost of the fuel
involved with the project; and
(ii) any other information related to the
duties of that agency;
(2) consider the comments received under Subdivision
(1) in the commission's grant award decision process; and
(3) as part of the report required by Section 391.104,
justify awards made to projects that have been negatively reviewed
by agencies under Subdivision (1).
(g) The commission may solicit review and comments from
other state agencies or other entities with subject matter
expertise applicable to the review of a grant application.
Sec. 391.103. EVIDENCE OF EMISSIONS REDUCTION POTENTIAL
REQUIRED. (a) An application for a new technology implementation
grant under this chapter must show reasonable evidence that the
proposed technology is capable of providing a significant reduction
in emissions.
(b) The commission shall consider specifically, for each
proposed new technology implementation grant application:
(1) the projected potential for reduced emissions and
the cost-effectiveness of the new technology;
(2) the potential for the new technology to contribute
significantly to air quality goals; and
(3) the strength of the implementation plan.
Sec. 391.104. REPORTING REQUIREMENTS. The commission
annually shall prepare a report that summarizes the applications
received and grants awarded in the preceding year. Preparation of
the report must include the participation of the state agencies
involved in the review of applications under Section 391.102.
[Sections 391.105-391.200 reserved for expansion]
SUBCHAPTER C. PROJECT REQUIREMENTS
Sec. 391.201. ELIGIBILITY OF PROJECTS FOR GRANTS. (a) The
commission shall establish criteria for prioritizing projects
eligible to receive grants under this chapter. The commission
shall review and may modify the criteria and priorities as
appropriate.
(b) A proposed project must meet the requirements of this
section to be eligible for a grant under the program established
under Section 391.002.
(c) Each proposed project must meet the cost-effectiveness
requirements established by the commission.
(d) A new technology implementation project must document,
in a manner acceptable to the commission, an achieved reduction
from the baseline emissions adopted by the commission for the
relevant facility or stationary source. After studying available
emissions reduction technologies, the commission may impose a
required minimum percentage reduction of emissions to improve the
ability of the program to achieve the program goals.
(e) If a baseline emissions standard does not exist for a
facility, the commission, for purposes of this subchapter, shall
adopt an appropriate baseline emissions level for comparison
purposes.
(f) Planned water usage for proposed projects must be
consistent with the state water plan.
Sec. 391.202. EVALUATING COST-EFFECTIVENESS. The
commission shall establish reasonable methodologies for evaluating
project cost-effectiveness, consistent with accepted methods.
Sec. 391.203. DETERMINATION OF GRANT AMOUNT. (a) The
commission may not award a grant that, net of taxes, provides an
amount that exceeds the incremental cost of the proposed project.
(b) In determining the amount of a grant under this
subchapter, the commission shall reduce the incremental cost of a
proposed 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. 391.204. COST SHARING; RECAPTURING GRANT. (a) The
commission shall require an applicant to bear at least 50 percent of
the costs of implementing a project funded under this chapter.
(b) The commission may not require repayment of grant money,
except that the commission must require provisions for recapturing
grant money for noncompliance with grant requirements.
Sec. 391.205. PREFERENCES. (a) Except as provided by
Subsection (c), in awarding grants under this chapter the
commission shall give preference to projects that:
(1) use natural resources originating or produced in
this state;
(2) contain an energy efficiency component; or
(3) include the use of solar, wind, or other renewable
energy sources.
(b) Projects that include more than one of the criteria
described by Subsection (a) shall be given a greater preference in
the award of grants under this chapter.
(c) The commission may give preference under Subsection (a)
only if the cost-effectiveness and emission performance of the
project are comparable to those of a project not claiming a
preference described by that subsection.
[Sections 391.206-391.300 reserved for expansion]
SUBCHAPTER D. FUNDING; EXPIRATION
Sec. 391.301. RESTRICTION ON USE OF GRANT. A recipient of a
grant under this chapter must use the grant to pay the incremental
costs of the purchase and installation of the project for which the
grant is made, which may include reasonable and necessary expenses
for the labor needed to install emissions-reducing equipment. The
recipient may not use the grant for the costs of operating and
maintaining the emissions-reducing equipment.
Sec. 391.302. COMPTROLLER REVIEW OF USE OF GRANT FUNDS. (a)
The comptroller annually shall conduct a review of each recipient
of a new technology implementation grant under this chapter to
ensure that the recipient's use of the grant complies with state law
and the terms of the award.
(b) To assist with a review under this section, the
commission shall provide the comptroller with all monitoring
reports received from grant recipients and any other documentation
requested by the comptroller.
(c) On a finding of any misuse of grant money or other
noncompliance with grant requirements, the comptroller shall
provide a report to the commission with recommendations for
subsequent action, including the recapture of money misused.
(d) A finding of any misuse of grant money by a recipient of
a grant under this chapter results in a debt owed to the state, and
the comptroller may withhold warrants and electronic funds
transfers to the recipient in accordance with Section 403.055,
Government Code.
(e) The comptroller may contract with another state agency,
an institution of higher education, or a private entity to conduct a
review under this section or to assist the comptroller in
conducting any part of the review.
(f) The comptroller may adopt rules to implement this
section.
Sec. 391.303. TIME OF USE OF GRANT FUNDING. Money
appropriated for grants to be made by the commission under this
chapter for a fiscal year may be distributed in subsequent fiscal
years if the grant has been awarded and treated as a binding
encumbrance by the commission before the end of the appropriation
year of the money appropriated for grant purposes. Distribution of
the grant money is subject to Section 403.071, Government Code.
Sec. 391.304. EXPIRATION. This chapter expires August 31,
2019.
SECTION 10. Section 403.071(b), Government Code, is amended
to read as follows:
(b) A claim may not be paid from an appropriation unless the
claim is presented to the comptroller for payment not later than two
years after the end of the fiscal year for which the appropriation
was made. However, a claim may be presented not later than four
years after the end of the fiscal year for which the appropriation
from which the claim is to be paid was made if the appropriation
relates to new construction contracts, to grants awarded under
Chapter 391, Health and Safety Code, or to repair and remodeling
projects that exceed the amount of $20,000, including furniture and
other equipment, architects' and engineering fees, and other costs
related to the contracts or projects.
SECTION 11. Section 382.0622(a), Health and Safety Code, is
amended to read as follows:
(a) Clean Air Act fees consist of:
(1) fees collected by the commission under Sections
382.062, 382.0621, 382.202, and 382.302 and as otherwise provided
by law; [and]
(2) $2 of each advance payment collected by the
Department of Public Safety for inspection certificates for
vehicles other than mopeds under Section 548.501, Transportation
Code; and
(3) fees collected that are required under Section 185
of the federal Clean Air Act (42 U.S.C. Section 7511d).
SECTION 12. Section 382.210(d), Health and Safety Code, is
amended to read as follows:
(d) A participating county shall provide an electronic
means for distributing vehicle repair or replacement funds once all
program criteria have been met with regard to the repair or
replacement. The county shall ensure that funds are transferred to
a participating dealer under this section not later than the 10th
[five] business day [days] after the date the county receives proof
of the sale and any required administrative documents from the
participating dealer.
SECTION 13. Sections 382.220(c) and (d), Health and Safety
Code, are amended to read as follows:
(c) Money that is made available for the implementation of a
program under Subsection (b) may not be expended for local
government fleet or vehicle acquisition or replacement, call center
management, application oversight, invoice analysis, education,
outreach, or advertising purposes.
(d) Fees collected under Sections 382.202 and 382.302 may be
used, in an amount not to exceed $5 million per fiscal year, for
projects described by Subsection (b). The fees shall be made
available only to counties participating in the low-income vehicle
repair assistance, retrofit, and accelerated vehicle retirement
programs created under Section 382.209 and only on a matching
basis, whereby the commission provides money to a county in the same
amount that the county dedicates to a project authorized by
Subsection (b). The commission may reduce the match requirement
for a county that proposes to develop and implement independent
test facility fraud detection programs, including the use of remote
sensing technology for coordinating with law enforcement officials
to detect, prevent, and prosecute the use of counterfeit state
inspection stickers.
SECTION 14. Section 386.001, Health and Safety Code, is
amended by adding Subdivision (10-a) to read as follows:
(10-a) "Stationary engine" means a machine used in a
nonmobile application that converts fuel into mechanical motion,
including turbines and other internal combustion devices.
SECTION 15. Section 386.002, Health and Safety Code, is
amended to read as follows:
Sec. 386.002. EXPIRATION. This chapter expires August 31,
2019 [2013].
SECTION 16. Section 386.104(c), Health and Safety Code, is
amended to read as follows:
(c) 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 must be projected to take place in a nonattainment
area or affected county of this state. The commission may also
allow vehicle travel on highways and roadways, or portions of a
highway or roadway, designated by the commission and located
outside a nonattainment area or affected county to count towards
the percentage of use requirement in this subsection. For a
proposed project involving a marine vessel or engine, the vessel or
engine must 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. For a proposed project involving
non-road equipment used for natural gas recovery purposes, the
equipment must be operated in a nonattainment area or affected
county for a sufficient amount of use over the lifetime of the
project, as determined by the commission, to meet the
cost-effectiveness requirements of Section 386.105.
SECTION 17. Section 390.006, Health and Safety Code, is
amended to read as follows:
Sec. 390.006. EXPIRATION. This chapter expires August 31,
2019 [2013].
SECTION 18. Section 151.0515(d), Tax Code, is amended to
read as follows:
(d) This section expires August 31, 2019 [2013].
SECTION 19. Section 152.0215(c), Tax Code, is amended to
read as follows:
(c) This section expires August 31, 2019 [2013].
SECTION 20. Section 501.138(b-3), Transportation Code, is
amended to read as follows:
(b-3) This subsection and Subsection (b-2) expire August
31, 2019 [September 1, 2015].
SECTION 21. Section 502.1675(c), Transportation Code, is
amended to read as follows:
(c) This section expires August 31, 2019 [2013].
SECTION 22. Section 548.5055(c), Transportation Code, is
amended to read as follows:
(c) This section expires August 31, 2019 [2013].
SECTION 23. Sections 386.252(a) and (b), Health and Safety
Code, are amended to read as follows:
(a) Money in the fund may be used only to implement and
administer programs established under the plan and shall be
allocated as follows:
(1) for the diesel emissions reduction incentive
program, 87.5 percent of the money in the fund, of which:
(A) not more than four percent may be used for the
clean school bus program;
(B) [and] not more than 10 percent may be used for
on-road diesel purchase or lease incentives; and
(C) a specified amount may be used for the new
technology implementation grant program, from which a defined
amount may be set aside for electricity storage projects related to
renewable energy;
(2) for the new technology research and development
program, nine [9.5] percent of the money in the fund, of which:
(A) up to [$250,000 is allocated for
administration, up to] $200,000 is allocated for a health effects
study;
(B) [,] $500,000 is to be deposited in the state
treasury to the credit of the clean air account created under
Section 382.0622 to supplement funding for air quality planning
activities in affected counties;
(C) [,] not less than 20 percent is to be
allocated each year to support research related to air quality as
provided by Section 387.010; [for the Houston-Galveston-Brazoria
and Dallas-Fort Worth nonattainment areas by a nonprofit
organization based in Houston of which $216,000 each year shall be
contracted to the Energy Systems Laboratory at the Texas
Engineering Experiment Station for the development and annual
calculation of creditable statewide emissions reductions obtained
through wind and other renewable energy resources for the State
Implementation Plan,] and
(D) the balance is [to be] allocated each year to
the commission [a nonprofit organization or an institution of
higher education based in Houston] to be used to:
(i) implement and administer the new
technology research and development program [under a contract with
the commission] for the purpose of identifying, testing, and
evaluating new emissions-reducing technologies with potential for
commercialization in this state and to facilitate their
certification or verification; and
(ii) contract with the Energy Systems
Laboratory at the Texas Engineering Experiment Station for $216,000
annually for the development and annual computation of creditable
statewide emissions reductions obtained through wind and other
renewable energy resources for the state implementation plan; and
(3) two percent is allocated to the commission and 1.5
percent is allocated to the laboratory for administrative costs
incurred by the commission and the laboratory[, three percent of
the money in the fund].
(b) The [Up to 25 percent of the] money allocated under
Subsection (a) to a particular program [and not expended under that
program by January 1 of the second fiscal year of a fiscal biennium]
may be used for another program under the plan as determined by the
commission [in consultation with the advisory board].
SECTION 24. Section 387.003, Health and Safety Code, is
amended to read as follows:
Sec. 387.003. NEW TECHNOLOGY RESEARCH AND DEVELOPMENT
PROGRAM. (a) The commission [A nonprofit organization or
institution of higher education described by Section
386.252(a)(2), under a contract with the commission as described by
that section,] shall establish and administer a new technology
research and development program as provided by this chapter. The
commission may contract with one or more well-qualified nonprofit
organizations or institutions of higher education for
administration of this program [than one entity and may limit the
amount of each grant contract accordingly].
(b) Under the program, the commission shall provide grants
[to be used] to support development of emissions-reducing
technologies that may be used for projects eligible for awards
under Chapters [Chapter] 386 and 391 and other new technologies
that show promise for commercialization. The primary objective of
this chapter is to promote the development of commercialization
technologies to reduce emissions of oxides of nitrogen in
nonattainment areas designated in this state [that will support
projects that may be funded under Chapter 386 and this chapter,
including advanced technologies such as fuel cells, catalysts, and
fuel additives].
(c) If the commission contracts with one or more [The board
of directors of a] nonprofit organizations to [organization under
contract with the commission to establish and] administer a new
technology research and development program under [as provided by]
this chapter, the board of directors of each organization may not
have more than 11 members, must include two persons of relevant
scientific expertise to be nominated by the commission, and may not
include more than four county judges [selected from counties in the
Houston-Galveston-Brazoria and Dallas-Fort Worth nonattainment
areas]. The two persons of relevant scientific expertise to be
nominated by the commission may be employees or officers of the
commission, provided that they do not participate in funding
decisions affecting the granting of funds by the commission to a
nonprofit organization on whose board they serve.
(d) [The commission may enter into a grant contract with an
institution of higher education described by Section 386.252(a)(2)
for the institution to operate a testing facility which would be
available for demonstration of eligible projects receiving grants
under this chapter.
[(e)] The commission shall provide oversight as appropriate
for grants provided to a nonprofit organization or an institution
of higher education under this program.
(e) [(f)] A nonprofit organization or an institution of
higher education shall submit to the commission for approval a
budget for the disposition of funds granted under this program.
(f) [(g)] The commission shall limit the use of grants for
administrative costs incurred by a nonprofit organization or an
institution of higher education to an amount not to exceed 10
percent of the total program funding [provided to the nonprofit
organization under this program].
(g) [(h)] A nonprofit organization that receives grants
from the commission under this program is subject to Chapters 551
and 552, Government Code.
SECTION 25. Section 387.004, Health and Safety Code, is
amended to read as follows:
Sec. 387.004. SOLICITATION OF NEW TECHNOLOGY PROPOSALS.
The commission from time to time shall issue or contract with a
nonprofit organization or an institution of higher education
described by Section 387.003(a) [386.252(a)(2)] to issue specific
requests for proposals (RFPs) or program opportunity notices (PONs)
for technology projects to be funded under the program.
SECTION 26. Sections 387.005(a), (b), and (f), Health and
Safety Code, are amended to read as follows:
(a) Grants awarded under this chapter shall be directed
toward a balanced mix of:
(1) retrofit and add-on technologies and other
advanced technologies that reduce emissions from the existing stock
of engines and vehicles targeted by the Texas emissions reduction
plan, provided that the technologies do not significantly reduce
the fuel economy of those engines and vehicles;
(2) [the establishment of a testing facility to
evaluate retrofits, add-ons, advanced technologies, and fuels, or
combinations of retrofits, add-ons, advanced technologies, and
fuels, to determine their effectiveness in producing emissions
reductions, with emphasis on the reduction of oxides of nitrogen;
and
[(3)] advanced technologies for new engines and
vehicles that produce very-low or zero emissions of oxides of
nitrogen, including stationary and mobile fuel cells;
(3) advanced technologies for reducing oxides of
nitrogen and other emissions from stationary sources; and
(4) field validation of innovative technologies that:
(A) reduce emissions of oxides of nitrogen and
other emissions; and
(B) require demonstration of viability for full
commercial acceptance.
(b) The commission, directly or through a nonprofit
organization or an institution of higher education described by
Section 387.003(a) [386.252(a)(2)], shall 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. In considering projects under this subsection, the
commission shall 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 for which the project is
proposed.
(f) Selection of grant recipients by a nonprofit
organization or an institution of higher education described by
Section 387.003(a) [386.252(a)(2)] under contract with the
commission for the purpose of establishing and administering a new
technology research and development program as provided by this
chapter is subject to the commission's review and to the other
requirements of this chapter. A grant contract under this chapter
using funds described by Section 386.252 may not be made by a
nonprofit organization or an institution of higher education if the
commission or executive director of the commission does not consent
to the grant or contract.
SECTION 27. Section 387.006, Health and Safety Code, is
amended to read as follows:
Sec. 387.006. EVIDENCE OF COMMERCIALIZATION POTENTIAL
REQUIRED. (a) An application for a technology grant under this
chapter must show reasonable [clear and compelling] evidence that:
(1) the proposed technology project has a substantial
[strong] commercialization plan and organization; and
(2) the technology proposed for funding[:
[(A)] is likely to be offered for commercial sale
in this state as soon as practicable [but no later than five years]
after the date of the application for funding[; and
[(B) once commercialized, will offer
opportunities for projects eligible for funding under Chapter 386].
(b) The commission shall consider specifically, for each
proposed technology project application:
(1) the projected potential for reduced emissions of
oxides of nitrogen and the cost-effectiveness of the technology
once it has been commercialized, including the impact on fuel
consumption and maintenance costs for retrofits and rebuilds;
(2) the potential for the technology to contribute
significantly to air quality goals; and
(3) the strength of the commercialization plan.
SECTION 28. Chapter 387, Health and Safety Code, is amended
by adding Section 387.010 to read as follows:
Sec. 387.010. AIR QUALITY RESEARCH. (a) The commission
shall contract with a nonprofit organization or institution of
higher education to establish and administer a program to support
research related to air quality.
(b) The board of directors of a nonprofit organization
establishing and administering the research program related to air
quality under this section may not have more than 11 members, must
include two persons with relevant scientific expertise to be
nominated by the commission, and may not include more than four
county judges selected from counties in the
Houston-Galveston-Brazoria and Dallas-Fort Worth nonattainment
areas. The two persons with relevant scientific expertise to be
nominated by the commission may be employees or officers of the
commission, provided that they do not participate in funding
decisions affecting the granting of funds by the commission to a
nonprofit organization on whose board they serve.
(c) The commission shall provide oversight as appropriate
for grants provided under the program established under this
section.
(d) A nonprofit organization or institution of higher
education shall submit to the commission for approval a budget for
the disposition of funds granted under the program established
under this section.
(e) A nonprofit organization or institution of higher
education shall be reimbursed for costs incurred in establishing
and administering the research program related to air quality under
this section. Reimbursable administrative costs of a nonprofit
organization or institution of higher education may not exceed 10
percent of the program budget.
(f) A nonprofit organization that receives grants from the
commission under this section is subject to Chapters 551 and 552,
Government Code.
SECTION 29. Chapter 382, Health and Safety Code, is amended
by adding Subchapter J to read as follows:
SUBCHAPTER J. FEDERAL GREENHOUSE GAS REPORTING RULE
Sec. 382.501. DEVELOPMENT OF FEDERAL GREENHOUSE GAS
REPORTING RULE. (a) The commission and the Railroad Commission of
Texas, the Department of Agriculture, and the Public Utility
Commission of Texas shall jointly participate in the federal
government process for developing federal greenhouse gas reporting
requirements and the federal greenhouse gas registry requirements.
(b) The commission shall adopt rules as necessary to comply
with any federal greenhouse gas reporting requirements adopted by
the federal government for private and public facilities eligible
to participate in the federal greenhouse gas registry. In adopting
the rules, the commission shall adopt and incorporate by reference
rules implementing the federal reporting requirements and the
federal registry.
Sec. 382.502. VOLUNTARY ACTIONS INVENTORY. The commission
shall:
(1) establish an inventory of voluntary actions taken
by businesses in this state or by state agencies since September 1,
2001, to reduce carbon dioxide emissions; and
(2) work with the United States Environmental
Protection Agency to give credit for early action under any federal
rules that may be adopted for federal greenhouse gas regulation.
SECTION 30. The purpose of the changes in law made by this
Act is to encourage the development of onshore and offshore
geologic storage of carbon dioxide including by encouraging the
development of advanced clean energy projects that capture carbon
dioxide and sequester not less than 50 percent of the captured
carbon dioxide in onshore or offshore geologic repositories.
Securing the necessary capacity for geologic sequestration is
essential to the success of carbon capture strategies, such as the
advanced clean energy projects facilitated by the changes in law
made by this Act. The success of the offshore repositories
facilitated by this Act depends on an adequate supply of
anthropogenic carbon dioxide, which is not currently being captured
at industrial facilities in this state. The advanced clean energy
grants established in this Act are intended to create the supply of
anthropogenic carbon dioxide necessary to the success of the
offshore repositories facilitated by this Act.
SECTION 31. This Act takes effect September 1, 2009.
______________________________ ______________________________
President of the Senate Speaker of the House
I certify that H.B. No. 1796 was passed by the House on May 7,
2009, by the following vote: Yeas 144, Nays 0, 1 present, not
voting; that the House refused to concur in Senate amendments to
H.B. No. 1796 on May 29, 2009, and requested the appointment of a
conference committee to consider the differences between the two
houses; and that the House adopted the conference committee report
on H.B. No. 1796 on May 31, 2009, by the following vote: Yeas 143,
Nays 0, 1 present, not voting.
______________________________
Chief Clerk of the House
I certify that H.B. No. 1796 was passed by the Senate, with
amendments, on May 27, 2009, by the following vote: Yeas 31, Nays
0; at the request of the House, the Senate appointed a conference
committee to consider the differences between the two houses; and
that the Senate adopted the conference committee report on H.B. No.
1796 on June 1, 2009, by the following vote: Yeas 31, Nays 0.
______________________________
Secretary of the Senate
APPROVED: __________________
Date
__________________
Governor