Texas 2009 - 81st Regular

Texas House Bill HB4031 Compare Versions

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1	1	H.B. No. 4031
2	2
3	3
4	4	AN ACT
5	5	relating to the agricultural biomass and landfill diversion
6	6	incentive program.
7	7	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
8	8	SECTION 1. Section 22.002, Agriculture Code, is amended by
9	9	amending Subdivisions (1) and (5) and adding Subdivisions (1-a) and
10	10	(5-a) to read as follows:
11	11	(1) "Co-firing biomass" means a solid fuel that:
12	12	(A) contains qualified agricultural biomass;
13	13	(B) is produced by a renewable biomass aggregator
14	14	and bio-coal fuel producer; and
15	15	(C) is used to supplement coal combustion for the
16	16	generation of electricity.
17	17	(1-a) "Diverter":
18	18	(A) means:
19	19	(i) a person or facility that qualifies for
20	20	an exemption under Section 361.111 or 363.006, Health and Safety
21	21	Code;
22	22	(ii) a handler of nonhazardous industrial
23	23	waste that is registered or permitted under Chapter 361, Health and
24	24	Safety Code; [or]
25	25	(iii) a facility that separates recyclable
26	26	materials from a municipal solid waste stream and that is
27	27	registered or permitted under Chapter 363, Health and Safety Code,
28	28	as a municipal solid waste management facility; or
29	29	(iv) a renewable biomass aggregator and
30	30	bio-coal fuel producer that operates an integrated harvesting,
31	31	transportation, and solid biofuel conversion facility for
32	32	qualified agricultural biomass; and
33	33	(B) does not include a facility that uses biomass
34	34	to generate electric energy.
35	35	(5) "Qualified agricultural biomass" means:
36	36	(A) agricultural residues that are of a type that
37	37	historically have been disposed of in a landfill, relocated from
38	38	their point of origin and stored in a manner not intended to enhance
39	39	or restore the soil, burned in open fields in the area from which
40	40	they are derived, or burned in fields and orchards that continue to
41	41	be used for the production of agricultural goods, and includes:
42	42	(i) field or seed crop residues, including
43	43	straw from rice or wheat, cotton gin trash, corn stover, grain
44	44	sorghum (milo) harvest residues, sugarcane bagasse, and
45	45	switchgrass;
46	46	(ii) fruit or nut crop residues, including
47	47	orchard or vineyard prunings and removals;
48	48	(iii) forest wood waste or urban wood
49	49	waste, including state designated forest management cuttings and
50	50	brush management cuttings from private lands; and
51	51	(iv) agricultural livestock waste
52	52	nutrients; and
53	53	(B) a crop grown and used specifically for its
54	54	energy generation value, including a crop consisting of a
55	55	fast-growing tree species.
56	56	(5-a) "Renewable biomass aggregator and bio-coal fuel
57	57	producer" means an operator of an integrated harvesting,
58	58	transportation, and fuel conversion facility that aggregates
59	59	qualified agricultural or forest biomass and produces renewable
60	60	fuel suitable for replacing coal or co-firing with coal.
61	61	SECTION 2. Section 22.003, Agriculture Code, is amended by
62	62	amending Subsections (a), (b), (c), (d), (e), and (f) and adding
63	63	Subsection (h) to read as follows:
64	64	(a) The department shall develop and administer an
65	65	agricultural biomass and landfill diversion incentive program to
66	66	make grants to farmers, loggers, [and] diverters, and renewable
67	67	biomass aggregators and bio-coal fuel producers who provide
68	68	qualified agricultural biomass, forest wood waste, urban wood
69	69	waste, co-firing biomass, or storm-generated biomass debris to
70	70	facilities that use biomass to generate electric energy in order to
71	71	provide an incentive for the construction of facilities for that
72	72	purpose and to:
73	73	(1) promote economic development;
74	74	(2) encourage the use of renewable sources in the
75	75	generation of electric energy;
76	76	(3) reduce air pollution caused by burning
77	77	agricultural biomass, forest wood waste, urban wood waste,
78	78	co-firing biomass, or storm-generated biomass debris in open
79	79	fields; and
80	80	(4) divert waste from landfills.
81	81	(b) Subject to Section 22.005, a farmer, logger, [or]
82	82	diverter, or renewable biomass aggregator and bio-coal fuel
83	83	producer is entitled to receive a grant in the amount of $20 for
84	84	each bone-dry ton of qualified agricultural biomass, forest wood
85	85	waste, urban wood waste, co-firing biomass, or storm-generated
86	86	biomass debris provided by the farmer, logger, [or] diverter, or
87	87	renewable biomass aggregator and bio-coal fuel producer in a form
88	88	suitable for generating electric energy to a facility that:
89	89	(1) is located in this state;
90	90	(2) was placed in service after August 31, 2009;
91	91	(3) generates electric energy sold to a third party by
92	92	using qualified agricultural biomass, forest wood waste, urban wood
93	93	waste, co-firing biomass, or storm-generated biomass debris;
94	94	(4) uses the best available emissions control
95	95	technology, considering the technical practicability and economic
96	96	reasonableness of reducing or eliminating the air contaminant
97	97	emissions resulting from the facility;
98	98	(5) maintains its emissions control equipment in good
99	99	working order; and
100	100	(6) is in compliance with its operating permit issued
101	101	by the Texas Commission on Environmental Quality under Chapter 382,
102	102	Health and Safety Code.
103	103	(c) The commissioner by rule may authorize a grant to be
104	104	made for providing each bone-dry ton of a type or source of
105	105	qualified agricultural biomass, forest wood waste, urban wood
106	106	waste, co-firing biomass, or storm-generated biomass debris in an
107	107	amount that is greater than the amount provided by Subsection (b) if
108	108	the commissioner determines that a grant in a greater amount is
109	109	necessary to provide an adequate incentive to use that type or
110	110	source of qualified agricultural biomass, forest wood waste, urban
111	111	wood waste, co-firing biomass, or storm-generated biomass debris to
112	112	generate electric energy.
113	113	(d) The Public Utility Commission of Texas and the Texas
114	114	Commission on Environmental Quality shall assist the department as
115	115	necessary to enable the department to determine whether a facility
116	116	meets the requirements of Subsection (b) for purposes of the
117	117	eligibility of farmers, loggers, [and] diverters, and renewable
118	118	biomass aggregators and bio-coal fuel producers for grants under
119	119	this chapter.
120	120	(e) To receive a grant under this chapter, a farmer, logger,
121	121	[or] diverter, or renewable biomass aggregator and bio-coal fuel
122	122	producer must deliver qualified agricultural biomass, forest wood
123	123	waste, urban wood waste, co-firing biomass, or storm-generated
124	124	biomass debris to a facility described by Subsection (b). The
125	125	operator of each facility described by that subsection shall:
126	126	(1) verify and document the amount of qualified
127	127	agricultural biomass, forest wood waste, urban wood waste,
128	128	co-firing biomass, or storm-generated biomass debris delivered to
129	129	the facility for the generation of electric energy; and
130	130	(2) make a grant on behalf of the department in the
131	131	appropriate amount to each farmer, logger, [or] diverter, or
132	132	renewable biomass aggregator and bio-coal fuel producer who
133	133	delivers qualified agricultural biomass, forest wood waste, urban
134	134	wood waste, co-firing biomass, or storm-generated biomass debris to
135	135	the facility.
136	136	(f) The department quarterly shall reimburse each operator
137	137	of a facility described by Subsection (b) for grants under this
138	138	chapter made by the operator during the preceding quarter to
139	139	eligible farmers, loggers, [and] diverters, and renewable biomass
140	140	aggregators and bio-coal fuel producers. To receive reimbursement
141	141	for one or more grants, an operator of a facility described by that
142	142	subsection must file an application with the department that
143	143	verifies the amount of the grants made by the operator during the
144	144	preceding quarter for which the operator seeks reimbursement.
145	145	(h) Notwithstanding Subsection (b)(2), a facility placed in
146	146	service before August 31, 2009, is eligible for reimbursement under
147	147	this chapter if another facility placed in operation after August
148	148	31, 2009, is located 25 miles or less from the existing facility.
149	149	SECTION 3. Section 22.004(c), Agriculture Code, is amended
150	150	to read as follows:
151	151	(c) Money in the account may be appropriated only to the
152	152	department for the purpose of implementing, [and] maintaining, and
153	153	administering the agricultural biomass and landfill diversion
154	154	incentive program.
155	155	SECTION 4. The heading to Section 22.005, Agriculture Code,
156	156	is amended to read as follows:
157	157	Sec. 22.005. LIMITATION ON GRANT AMOUNT; SCHEDULE OF
158	158	PAYMENTS.
159	159	SECTION 5. Section 22.005, Agriculture Code, is amended by
160	160	adding Subsection (c) to read as follows:
161	161	(c) On a determination that money in the agricultural
162	162	biomass and landfill diversion incentive account is insufficient to
163	163	pay reimbursements under Section 22.003 or grants under Section
164	164	22.006, the department, in consultation with interested parties,
165	165	may develop a proportionate and equitable schedule to pay the
166	166	reimbursements or grants. In developing a schedule to pay
167	167	reimbursements or grants under this subsection, the department may
168	168	consider a facility's:
169	169	(1) effect on wages and job creation or job retention;
170	170	(2) level of capital investment; and
171	171	(3) effect on the local economy and the economy of this
172	172	state.
173	173	SECTION 6. This Act takes effect September 1, 2009.
174	174	______________________________ ______________________________
175	175	President of the Senate Speaker of the House
176	176	I certify that H.B. No. 4031 was passed by the House on April
177	177	28, 2009, by the following vote: Yeas 139, Nays 0, 1 present, not
178	178	voting; and that the House concurred in Senate amendments to H.B.
179	179	No. 4031 on May 29, 2009, by the following vote: Yeas 145, Nays 0,
180	180	1 present, not voting.
181	181	______________________________
182	182	Chief Clerk of the House
183	183	I certify that H.B. No. 4031 was passed by the Senate, with
184	184	amendments, on May 27, 2009, by the following vote: Yeas 31, Nays
185	185	0.
186	186	______________________________
187	187	Secretary of the Senate
188	188	APPROVED: __________________
189	189	Date
190	190	__________________
191	191	Governor