By: Averitt S.B. No. 16
(In the Senate - Filed January 29, 2009; February 10, 2009,
read first time and referred to Committee on Natural Resources;
April 6, 2009, reported adversely, with favorable Committee
Substitute by the following vote: Yeas 7, Nays 4; April 6, 2009,
sent to printer.)
COMMITTEE SUBSTITUTE FOR S.B. No. 16 By: Averitt
A BILL TO BE ENTITLED
AN ACT
relating to the enhancement of air quality, including the capture
and storage of carbon dioxide and development of a greenhouse gas
registry, the development of emissions reduction technologies, and
the improvement of energy efficiency in buildings, vehicles, and
appliances; providing civil penalties.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
ARTICLE 1. ADVANCED CLEAN ENERGY PROJECTS
SECTION 1.01. Subdivision (1-a), Section 382.003, 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 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;
(B) is capable of achieving on an annual basis a
99 percent or greater reduction of sulfur dioxide emissions, a 95
percent or greater reduction of mercury emissions, and an emission
rate for nitrogen oxides of 0.05 pounds or less per million British
thermal units; and
(C) captures at least 50 percent of the carbon
dioxide in the fuel being combusted and sequesters that carbon
dioxide through methods that include geologic storage [renders
carbon dioxide capable of capture, sequestration, or abatement if
any carbon dioxide is produced by the project].
SECTION 1.02. Section 382.003, Health and Safety Code, is
amended by adding Subdivision (7-bb) to read as follows:
(7-bb) "Geologic storage" means the underground
storage of carbon dioxide in a suitable geologic formation,
including storage that is accomplished in conjunction with an
enhanced oil recovery project.
SECTION 1.03. Subsection (b), Section 382.0567, 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.
ARTICLE 2. NEW TECHNOLOGY IMPLEMENTATION GRANT PROGRAM
SECTION 2.01. Subsection (b), Section 386.051, 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;
(5) the new technology implementation grant program
established under Chapter 391;
(6) the plug-in hybrid purchase credit program
established under Subchapter G; and
(7) the energy-efficient appliance purchase incentive
program established under Subchapter H.
SECTION 2.02. Subsection (b), Section 386.052, 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 2.03. Subsection (b), Section 386.057, 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 2.04. Subsection (c), Section 386.251, 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 Chapters 387 and 391.
SECTION 2.05. 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 PROGRAM
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 391.001. DEFINITIONS. In this chapter:
(1) "Best available control technologies" or "BACT"
has the meaning assigned by 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 existing at the time of submission of a new
technology implementation grant application.
(6) "Stationary source" has the meaning assigned by 42
U.S.C. Section 7602(z).
Sec. 391.002. PROGRAM. (a) The commission shall establish
and administer a new technology implementation program to implement
new technologies to reduce emissions from facilities and other
stationary sources located within the 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 that 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) Guidelines must include protocols to calculate
projected emissions reductions, project cost-effectiveness, and
safeguards to ensure that funded projects generate emissions
reductions not otherwise required by state or federal law.
(c) The commission may propose revisions to the guidelines
and criteria adopted under this section as necessary to improve the
ability of the plan to achieve its goals.
(d) Because the legislature finds that the current state of
air quality in the state jeopardizes the state's ability to meet
federal air quality requirements, 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
Sec. 391.101. APPLICATION FOR GRANT. (a) Any person, as
defined by Section 382.003, that owns a facility located within the
state may apply for a grant under the program established under
Section 391.002. The commission may adopt guidelines to allow a
person other than the owner to apply for and receive a grant in
order to improve the ability of the program to achieve its goals.
(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 eligibility requirements for
the type of project proposed, 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. This plan shall include provision of a
publicly accessible informational 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 what is missing from the
application. The commission shall evaluate the completed
application according to the appropriate project criteria.
(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 an application for a project
that does not meet the applicable project criteria or that the
commission determines is not made in good faith, is not credible, or
is not in compliance with this chapter and the goals of this
chapter.
(d) Subject to the availability of funds, 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 in 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:
(1) shall solicit review and comment from:
(A) the comptroller to assess the financial
stability of the applicant, the economic benefit and job creation
associated with the project, and any other information related to
the duties of that office;
(B) the Public Utility Commission of Texas to
assess the reliability of the proposed technology and the
feasibility and cost-effectiveness of electric transmission
associated with the project and any other information related to
the duties of that agency; and
(C) the Railroad Commission of Texas to assess
the availability and cost of the fuel involved with the project and
any other information related to the duties of that agency;
(2) shall incorporate the review results into the
grant award decision process; and
(3) as part of the report required under Section
391.104, shall justify awards made to projects that have been
negatively reviewed by agencies under Subdivision (1).
(g) The commission may solicit review and comment from other
state agencies or other entities with subject matter expertise, as
applicable, in reviewing grant applications.
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 technology implementation grant application:
(1) the projected potential for reduced emissions and
the cost-effectiveness of the technology;
(2) the potential for the technology to contribute
significantly to air quality goals; and
(3) the strength of the implementation plan.
Sec. 391.104. REPORTING REQUIREMENTS. The commission shall
prepare an annual report that summarizes the applications received
and grant awards made 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 setting priorities for
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, a reduction of the
baseline emissions adopted by the commission for the relevant
facility or stationary source. After studying available emissions
reduction technologies, the commission may adopt a minimum
percentage reduction of emissions to be required by this subsection
to improve the ability of the program to achieve its goals.
(e) If a baseline emissions standard does not exist for a
facility, the commission, for purposes of this subchapter, shall
establish an appropriate baseline emissions level for comparison
purposes.
(f) Water usage for proposed projects must be consistent
with the state water plan.
Sec. 391.202. CALCULATION OF COST-EFFECTIVENESS. The
commission shall establish reasonable methodologies for evaluating
project cost-effectiveness consistent with accepted methods.
Sec. 391.203. COST-EFFECTIVENESS CRITERIA; 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. (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) In awarding grants under
this chapter and except as provided by Subsection (c), the
commission shall assign preference to:
(1) projects that use natural resources originating or
produced in the state;
(2) projects that contain an energy efficiency
component; or
(3) projects that include the use of solar, wind, or
other renewable energy sources.
(b) Higher preference shall be given to projects that
include more than one of the criteria described by Subsection (a).
(c) Preferences described by Subsection (a) may be assigned
only if the cost-effectiveness and emission performance of the
project is comparable to a project not claiming a preference
described by Subsection (a).
[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 operation and
maintenance of the emissions-reducing equipment.
Sec. 391.302. COMPTROLLER REVIEW OF USE OF GRANT FUNDS.
(a) The comptroller shall conduct an annual review of each
recipient of new technology implementation grant funds under this
chapter to ensure that the recipient's use of the funds 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 funds or other
noncompliance with grant requirements, the comptroller shall
report recommendations for subsequent action, including the
recapture of funds misused, to the commission.
(d) A finding of any misuse of grant funds by a recipient of
a grant under this chapter results in a debt owed to the state, and
the comptroller may place the recipient on warrant hold 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. Funds
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 funds appropriated for grant purposes. Distribution of
the grant funds is subject to Section 403.071, Government Code.
Sec. 391.304. EXPIRATION. This chapter expires August 31,
2019.
SECTION 2.06. Subsection (b), Section 403.071, 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.
ARTICLE 3. LOW-INCOME VEHICLE REPAIR ASSISTANCE, RETROFIT, AND
ACCELERATED VEHICLE RETIREMENT PROGRAM
SECTION 3.01. Subsection (d), Section 382.210, 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 3.02. Section 382.220, Health and Safety Code, is
repealed.
ARTICLE 4. TEXAS EMISSIONS REDUCTION PLAN
SECTION 4.01. Subsection (b-1), Section 501.138,
Transportation Code, is amended to read as follows:
(b-1) Fees collected under Subsection (b) to be sent to the
comptroller shall be deposited as follows:
(1) before September 1, 2008, to the credit of the
Texas emissions reduction plan fund; and
(2) on or after September 1, 2008, to the credit of the
Texas Mobility Fund, except that $5 of each fee imposed under
Subsection (a)(1) and deposited on or after September 1, 2008, and
before August 31, 2019 [September 1, 2015], shall be deposited to
the credit of the Texas emissions reduction plan fund.
SECTION 4.02. Subsection (b-3), Section 501.138,
Transportation Code, is amended to read as follows:
(b-3) This subsection and Subsection (b-2) expire August
31, 2019 [September 1, 2015].
SECTION 4.03. Subsection (d), Section 151.0515, Tax Code,
is amended to read as follows:
(d) This section expires August 31, 2019 [2013].
SECTION 4.04. Subsection (c), Section 152.0215, Tax Code,
is amended to read as follows:
(c) This section expires August 31, 2019 [2013].
SECTION 4.05. 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 4.06. 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 that
converts fuel into mechanical motion, including turbines and other
internal combustion devices used in nonmobile applications.
SECTION 4.07. 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 4.08. Subsection (c), Section 386.104, 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
a mobile generator used for natural gas recovery purposes that is
operated in a nonattainment area or affected county, the 75 percent
of hours of operation in a nonattainment area or affected county
projected for the project need not occur in the five years
immediately following the award of a grant.
SECTION 4.09. Chapter 386, Health and Safety Code, is
amended by adding Subchapters G and H to read as follows:
SUBCHAPTER G. PLUG-IN HYBRID MOTOR VEHICLE PURCHASE CREDIT PROGRAM
Sec. 386.301. DEFINITIONS. In this subchapter:
(1) "Golf cart" has the meaning assigned by Section
502.001, Transportation Code.
(2) "Light-duty motor vehicle" has the meaning
assigned by Section 386.151.
(3) "Motor vehicle" has the meaning assigned by
Section 386.151.
(4) "Neighborhood electric vehicle" means a motor
vehicle that:
(A) is originally manufactured to meet, and does
meet, the equipment requirements and safety standards established
for "low speed vehicles" in Federal Motor Vehicle Safety Standard
500 (49 C.F.R. Section 571.500);
(B) is a slow-moving vehicle, as defined by
Section 547.001, Transportation Code, that is able to attain a
speed of more than 20 miles per hour but not more than 25 miles per
hour in one mile on a paved, level surface;
(C) is a four-wheeled motor vehicle;
(D) is powered by electricity or alternative
power sources;
(E) has a gross vehicle weight rating of less
than 3,000 pounds; and
(F) is not a golf cart.
(5) "Plug-in hybrid motor vehicle" means a vehicle
that:
(A) draws motive power from a battery with a
capacity of at least four kilowatt-hours;
(B) can be recharged from an external source of
electricity for motive power; and
(C) is a light-duty motor vehicle capable of
operating at highway speeds, excluding golf carts and neighborhood
electric vehicles.
Sec. 386.302. COMMISSION DUTIES REGARDING PLUG-IN HYBRID
MOTOR VEHICLE PURCHASE CREDIT PROGRAM. (a) The commission shall
develop a credit-towards-purchase program for new plug-in hybrid
motor vehicles and shall adopt rules necessary to implement the
program.
(b) The program shall authorize statewide credits toward
the purchase of new plug-in hybrid motor vehicles for a purchaser
who is a state resident and who agrees to register the vehicle in
this state and operate the vehicle in this state for not less than
75 percent of the vehicle's annual mileage.
(c) Only one purchase credit may be provided for each new
plug-in hybrid motor vehicle.
Sec. 386.303. PLUG-IN HYBRID MOTOR VEHICLE PURCHASE CREDIT.
A new plug-in hybrid motor vehicle is eligible for a $4,000 purchase
credit.
Sec. 386.304. MODIFICATION OF INCENTIVE. After evaluating
new technologies, the commission may change the purchase credit
established by Section 386.303 to improve the ability of the
program to achieve its goals.
Sec. 386.305. MANUFACTURER'S REPORT. Not later than July 1
of each year and preceding the beginning of the vehicle model year,
a manufacturer of motor vehicles shall provide to the commission a
list of the new vehicle models that the manufacturer intends to sell
in this state during that model year that meet the definition of
plug-in hybrid motor vehicles under Section 386.301. The
manufacturer may supplement the list provided to the commission
under this section as necessary to include additional new vehicle
models the manufacturer intends to sell in this state during the
model year.
Sec. 386.306. LIST OF ELIGIBLE MOTOR VEHICLES. (a) On
August 1 of each year the commission shall publish a list of the new
model motor vehicles as listed for the commission under Section
386.305. The commission shall publish and supplement that list as
necessary to include additional new vehicle models listed in a
supplement to the original list provided by a manufacturer under
Section 386.305.
(b) The commission shall distribute the list of eligible
motor vehicles to all new motor vehicle dealers in this state.
Sec. 386.307. COMMISSION TO ACCOUNT FOR MOTOR VEHICLE
PURCHASE CREDITS. (a) The commission by rule shall develop a
method to administer and account for the motor vehicle purchase
credits authorized by this subchapter and to pay a refund for the
amount of the credit to a dealer of a new motor vehicle on
application of the dealer as provided by this subchapter.
(b) The commission shall develop and publish forms and
instructions for a new motor vehicle dealer to use in applying to
the commission for a refund for purchase credits authorized under
this subchapter.
(c) In addition to other forms developed and published under
this section, the commission shall develop and publish a
verification form by which, with information provided by the
dealer, the commission can verify the sale of a vehicle covered by
this subchapter. The verification form must include at least the
name of the purchaser, the vehicle identification number of the
vehicle, the date of the purchase, and the name of the new motor
vehicle dealer making the transaction. At the time of sale of a
vehicle eligible for a purchase credit under this subchapter, the
dealer shall complete the verification form supplied to the dealer
by the commission. The new motor vehicle dealer must include the
completed verification form as part of the dealer's application for
a refund. The dealer shall maintain a copy of the completed
verification form for at least two years after the date of the
transaction.
Sec. 386.308. SUSPENSION OF PURCHASE CREDITS. (a) The
commission shall track new motor vehicle dealer refund applications
and payments.
(b) If the balance of funds available for motor vehicle
purchase credits falls below 15 percent of the total allocated for
the credits during a fiscal year, the commission may suspend the
credits until the date the commission can certify that the balance
available in the fund for credits is an amount adequate to resume
the credits or the beginning of the next fiscal year, whichever is
earlier. If the commission suspends the purchase credits, the
commission shall immediately notify all new motor vehicle dealers
that the credits have been suspended.
(c) The commission shall establish a toll-free telephone
number and a website available to motor vehicle dealers to call or
access to easily verify that funds for purchase credits are
available. The commission may provide for issuing verification
numbers over the telephone or the website.
(d) Reliance by a dealer on information provided by the
commission is a complete defense to an action involving or based on
eligibility of a vehicle for a purchase credit or availability of
vehicles eligible for a purchase credit.
Sec. 386.309. EXPIRATION. This subchapter and the purchase
credit program authorized under this subchapter expire January 1,
2019.
[Sections 386.310-386.350 reserved for expansion]
SUBCHAPTER H. ENERGY-EFFICIENT APPLIANCE PURCHASE INCENTIVE
PROGRAM
Sec. 386.351. DEFINITION. In this subchapter,
"governmental entity" means the commissioners court of a
participating county or other appropriate governmental entity,
including a regional council of government or a metropolitan
planning organization.
Sec. 386.352. PURCHASE INCENTIVE PROGRAM. (a) The
commission is the supervising state agency for the energy-efficient
appliance purchase incentive program.
(b) The commission by rule shall establish, and authorize a
governmental entity to implement, an energy-efficient appliance
purchase incentive program subject to agency oversight that may
include reasonable periodic commission audits.
(c) The participating governmental entities shall use funds
provided for the program to provide financial incentives designed
to assist persons in the purchase of equipment and appliances that
meet or exceed the federal Energy Star standards designated by the
United States Environmental Protection Agency and the United States
Department of Energy.
(d) Programs approved under this section must include the
retirement of materials and appliances that contribute to energy
consumption or peak energy demand to ensure the reduction of energy
consumption, energy demand, or peak loads and of associated
emissions of air contaminants.
(e) Appliances funded under this section may include:
(1) air conditioning units; and
(2) refrigeration units.
Sec.386.353.ADMINISTRATION OF INCENTIVE PROGRAM.
(a) Money allocated by the commission under the incentive program
developed under this subchapter shall be administered by the
governmental entity implementing the program. A participating
governmental entity shall be reimbursed from the fund for costs
incurred in administering the incentive program established under
this subchapter. Reimbursable administrative costs of a
participating governmental entity may not exceed 10 percent of the
entity's total program budget.
(b) The commission and implementing governmental entities
may accept gifts, grants, or other assistance for the purpose of
implementing this section.
Sec. 386.354. IMPLEMENTATION GUIDELINES AND REQUIREMENTS.
(a) The commission by rule shall adopt guidelines to assist a
participating governmental entity in implementing an
energy-efficient appliance purchase incentive program. The
guidelines at a minimum shall recommend:
(1) a minimum and maximum amount towards purchase of
eligible appliances; and
(2) criteria for determining eligibility, taking into
account:
(A) the extent to which the incentive will reduce
energy consumption, energy demand, or peak loads and reduce
associated emissions of air contaminants;
(B) the condition of materials and appliances to
be retired; and
(C) any other relevant considerations.
(b) A participating governmental entity shall provide an
electronic means for distributing energy-efficient appliance
purchase incentive funds once all program criteria have been met
with regard to the purchase. The governmental entity shall ensure
that funds are transferred to the purchaser not later than 14
business days after the date the governmental entity receives proof
of the purchase and any required administrative documents from the
purchaser.
SECTION 4.10. Subsection (b), Section 152.002, Tax Code, is
amended to read as follows:
(b) "Total consideration" does not include:
(1) a cash discount;
(2) a full cash or credit refund to a customer of the
sales price of a motor vehicle returned to the seller;
(3) the amount charged for labor or service rendered
in installing, applying, remodeling, or repairing the motor vehicle
sold;
(4) a financing, carrying, or service charge or
interest on credit extended on a motor vehicle sold under a
conditional sale or other deferred payment contract;
(5) the value of a motor vehicle taken by a seller as
all or a part of the consideration for sale of another motor
vehicle, including any cash payment to the buyer under Section
348.404, Finance Code;
(6) a charge for transportation of the motor vehicle
after a sale;
(7) motor vehicle inventory tax; or
(8) an amount made available to the customer under
Subchapter G, Chapter 382, or Subchapter G, Chapter 386, Health and
Safety Code.
ARTICLE 5. NEW TECHNOLOGY RESEARCH
AND DEVELOPMENT PROGRAM
SECTION 5.01. Subsections (a) and (b), Section 386.252,
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 not more
than four percent may be used for the clean school bus program and
not more than 10 percent may be used for on-road diesel purchase or
lease incentives; not more than 10 percent may be used for the new
technology implementation program, of which a defined amount may be
set aside for electricity storage projects related to renewable
energy; and a specified percentage may be used for light-duty
plug-in hybrid motor vehicle purchase credits;
(2) for the new technology research and development
program, nine [9.5] percent of the money in the fund, of which up to
[$250,000 is allocated for administration, up to] $200,000 is
allocated for a health effects study, $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, not less than 20 percent
is to be allocated each year to support the energy-efficient
appliance purchase incentive program created under Subchapter H
[research related to air quality 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 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 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 of which, a portion shall be
allocated for research related to air quality administered by a
nonprofit organization or an institution of higher education; and
(3) for administrative costs incurred by the
commission and the laboratory, 3.5 [three] percent of the money in
the fund, of which two percent is allocated to the commission and
1.5 percent is allocated to the laboratory.
(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 5.02. 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 [more 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 Texas
nonattainment areas [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 nonprofit
organizations or institutions of higher education to [The board of
directors of a nonprofit 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 5.03. 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 5.04. Subsections (a), (b), and (f), Section
387.005, 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 for
reducing emissions of oxides that 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 5.05. 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 5.06. Chapter 387, Health and Safety Code, is
amended by adding Section 387.010 to read as follows:
Sec. 387.010. AIR QUALITY RESEARCH. (a) A nonprofit
organization or institution of higher education described by
Section 386.252(a)(2), under a contract with the commission, shall
establish and administer a program under this section supporting
research related to air quality.
(b) The board of directors of a nonprofit organization under
contract with the commission to establish and administer 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 to a nonprofit organization under the program
established under this section.
(d) A nonprofit organization 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 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 may not exceed 10
percent of the organization's total program budget.
(f) A nonprofit organization that receives grants from the
commission under this section is subject to Chapters 551 and 552,
Government Code.
ARTICLE 6. BUILDING ENERGY CODES
SECTION 6.01. Section 388.003, Health and Safety Code, is
amended by amending Subsections (a) and (b) and adding Subsection
(a-1) to read as follows:
(a) To achieve energy conservation in single-family and
duplex residential construction, the energy efficiency provisions
[chapter] of the International Residential Code, as it existed on
May 1, 2001, is adopted as the energy code in this state for
single-family and duplex residential construction. Beginning
January 1, 2012, the energy efficiency provisions of the
International Residential Code, as it existed on May 1, 2009, is
adopted as the energy code in this state for single-family and
duplex residential construction.
(a-1) For the purposes of energy code compliance under the
limited statutory warranties and building and performance
standards under Section 430.001, Property Code, and inspections of
new residential construction required under Subtitle F, Title 16,
Property Code, Subsection (a) of this section controls for
single-family and duplex residential construction located in
unincorporated areas not in the extraterritorial jurisdiction of a
municipality. To the extent of any conflict between this
subsection and any other law, including Section 430.001, Property
Code, this subsection prevails.
(b) To achieve energy conservation in all other
residential, commercial, and industrial construction, the
International Energy Conservation Code as it existed on May 1,
2001, is adopted as the energy code for use in this state for all
other residential, commercial, and industrial construction.
Beginning January 1, 2012, the International Energy Conservation
Code, as it existed on May 1, 2009, is adopted as the energy code in
this state for all other residential, commercial, and industrial
construction.
SECTION 6.02. Subsection (b-1), Section 388.003, Health and
Safety Code, as added by Section 3.01, Chapter 262 (S.B. 12), Acts
of the 80th Legislature, Regular Session, 2007, is amended to read
as follows:
(b-1) If the State Energy Conservation Office determines,
based on written recommendations from the laboratory, that the
latest published [edition of the] International Residential Code
energy efficiency provisions or the latest published edition of the
International Energy Conservation Code will result in residential
or commercial sector energy efficiency and air quality impact, on
average, that is equivalent to or better than the energy efficiency
and air quality achievable under the editions adopted under
Subsection (a) or (b), the office may by rule adopt the equivalent
or more stringent editions and substitute them for the energy codes
described by Subsection (a) or (b). The rule, if adopted, shall
establish an effective date for the new energy codes but not earlier
than nine months after the date of adoption. The laboratory shall
make its recommendations not later than six months after
publication of new editions at the end of each three-year code
development cycle of the International Residential Code and the
International Energy Conservation Code.
SECTION 6.03. Subsections (c), (d), (e), and (f), Section
388.003, Health and Safety Code, are amended to read as follows:
(c) A municipality shall establish procedures:
(1) for the administration and enforcement of the
codes; and
(2) to ensure that code-certified inspectors or
approved energy efficiency program verifiers shall perform
inspections and enforce the code in the inspectors' jurisdictions.
(d) A municipality [or county] may establish procedures to
adopt local amendments to the International Energy Conservation
Code and the energy efficiency provisions [chapter] of the
International Residential Code.
(e) Local amendments may not result in less stringent
overall energy efficiency requirements [in nonattainment areas and
in affected counties] than the energy efficiency chapter of the
International Residential Code or International Energy
Conservation Code. Local amendments must comply with the National
Appliance Energy Conservation Act of 1987 (42 U.S.C. Sections
6291-6309), as amended. The laboratory, at the request of a
municipality or county, shall determine the relative impact of
proposed local amendments to an energy code, including whether
proposed amendments are substantially equal to or less stringent
than the unamended code. [For the purpose of establishing uniform
requirements throughout a region, and on request of a council of
governments, a county, or a municipality, the laboratory may
recommend a climatically appropriate modification or a climate zone
designation for a county or group of counties that is different from
the climate zone designation in the unamended code.] The
laboratory shall:
(1) report its findings to the council, county, or
municipality, including an estimate of any energy savings potential
above the base code from local amendments; and
(2) annually submit a report to the commission:
(A) identifying the municipalities and counties
whose codes are more stringent than the unamended code, and whose
codes are equally stringent or less stringent than the unamended
code; and
(B) quantifying energy savings and emissions
reductions from this program.
(f) Each municipality, and each county that has established
procedures under Subsection (d), shall periodically review and
consider revisions made by the International Code Council to the
International Energy Conservation Code and the energy efficiency
chapter of the International Residential Code adopted after May 1,
2009 [2001].
SECTION 6.04. Chapter 388, Health and Safety Code, is
amended by adding Section 388.0035 to read as follows:
Sec. 388.0035. REQUIREMENT OF COMPATIBILITY WITH PLUG-IN
MOTOR VEHICLES. The State Energy Conservation Office by rule shall
amend the energy code as adopted under Section 388.003 to require
that buildings newly constructed after January 1, 2012, have an
electrical system, including outlets, that is capable of recharging
plug-in electric or plug-in hybrid electric motor vehicles.
SECTION 6.05. The following provisions of the Health and
Safety Code are repealed:
(1) Subsection (b-1), Section 388.003, as added by
Section 11, Chapter 939 (H.B. 3693), Acts of the 80th Legislature,
Regular Session, 2007; and
(2) Subsection (b-2), Section 388.003, as added by
Section 3.01, Chapter 262 (S.B. 12), Acts of the 80th Legislature,
Regular Session, 2007.
ARTICLE 7. IDLING OF MOTOR VEHICLES
SECTION 7.01. Section 382.0191, Health and Safety Code, is
amended to read as follows:
Sec. 382.0191. IDLING OF MOTOR VEHICLE WHILE USING SLEEPER
BERTH. (a) In this section, "idling" means allowing an engine to
run while the motor vehicle is not engaged in forward or reverse
motion.
(b) Except as provided by Subsection (c), the [The]
commission may not prohibit or limit the idling of any [a] motor
vehicle with a gross vehicle weight rating greater than 8,500
pounds that is equipped with a 2008 or subsequent model year
heavy-duty diesel engine that has been certified by the United
States Environmental Protection Agency or another state
environmental agency to emit no more than 30 grams of nitrogen
oxides emissions per hour when idling [is necessary to power a
heater or air conditioner while a driver is using the vehicle's
sleeper berth for a government-mandated rest period. Idling is not
necessary to power a heater or air conditioner if the vehicle is
within two miles of a facility offering external heating and air
conditioning connections at a time when those connections are
available].
(c) No driver using the vehicle's sleeper berth may idle the
vehicle in a residential area as defined by Section 244.001, Local
Government Code, or in a school zone or within 1,000 feet of a
hospital or a public school during its hours of operation. An
offense under this subsection shall be punishable by a fine not to
exceed $500.
(d) This section expires November [September] 1, 2010
[2009].
ARTICLE 8. EXEMPTION OF THE WEIGHT OF CERTAIN IDLE REDUCTION
SYSTEMS FOR COMMERCIAL VEHICLES FROM MAXIMUM WEIGHT RESTRICTIONS
SECTION 8.01. Section 621.001, Transportation Code, is
amended to read as follows:
Sec. 621.001. DEFINITIONS. In this chapter:
(1) "Commercial motor vehicle" means a motor vehicle,
other than a motorcycle, designed or used for:
(A) the transportation of property; or
(B) delivery purposes.
(2) "Commission" means the Texas Transportation
Commission.
(3) "Department" means the Texas Department of
Transportation.
(4) "Director" means the executive director of the
Texas Department of Transportation.
(5) "Idle reduction system" means any system that
provides heating, cooling, or electrical service to a commercial
vehicle cab for the purpose of reducing vehicle idling.
(6) "Motor vehicle" means a vehicle that is
self-propelled.
(7) [(6)] "Semitrailer" means a vehicle without motive
power that is designed, or used with a motor vehicle, so that some
of its weight and the weight of its load rests on or is carried by
the motor vehicle.
(8) [(7)] "Trailer" means a vehicle without motive
power that is:
(A) designed or used to carry property or
passengers on its own structure exclusively; and
(B) drawn by a motor vehicle.
(9) [(8)] "Truck-tractor" means a motor vehicle
designed or used primarily for drawing another vehicle:
(A) that is not constructed to carry a load other
than a part of the weight of the vehicle and load being drawn; or
(B) that is engaged with a semitrailer in the
transportation of automobiles or boats and that transports the
automobiles or boats on part of the truck-tractor.
(10) [(9)] "Vehicle" means a mechanical device, other
than a device moved by human power or used exclusively upon
stationary rails or tracks, in, on, or by which a person or property
can be transported on a public highway. The term includes a motor
vehicle, commercial motor vehicle, truck-tractor, trailer, or
semitrailer but does not include manufactured housing as defined by
Chapter 1201, Occupations Code.
(11) [(10)] "Single axle weight" means the total
weight transmitted to the road by all wheels whose centers may be
included between two parallel transverse vertical planes 40 inches
apart, extending across the full width of the vehicle.
(12) [(11)] "Tandem axle weight" means the total
weight transmitted to the road by two or more consecutive axles
whose centers may be included between parallel transverse vertical
planes spaced more than 40 inches and not more than 96 inches apart,
extending across the full width of the vehicle.
(13) [(12)] "Port of entry" means a place designated
by executive order of the president of the United States, by order
of the United States secretary of the treasury, or by act of the
United States Congress at which a customs officer is authorized to
accept entries of merchandise, collect duties, and enforce customs
and navigation laws. The term includes a publicly owned or
privately owned international port of entry between this state and
the United Mexican States.
SECTION 8.02. Section 621.101, Transportation Code, is
amended by adding Subsection (d) to read as follows:
(d) Notwithstanding any provision of this section or any
other section to the contrary, the maximum gross vehicle weight
limit, bridge formula limit, and axle weight limit for any vehicle
or combination of vehicles equipped with an idle reduction system
may be increased by a quantity necessary to compensate for the
additional weight of the idle reduction system as provided for in 23
U.S.C. Section 127. In no case shall the additional weight increase
allowed by this subsection be greater than 400 pounds. On request
by an appropriate law enforcement officer, the vehicle operator
shall provide proof that the idle reduction technology is fully
functional at all times and that the gross weight increase is not
used for any purpose other than for use as an idle reduction system.
ARTICLE 9. APPLIANCE EFFICIENCY STANDARDS
SECTION 9.01. Subtitle C, Title 5, Health and Safety Code,
is amended by adding Chapter 392 to read as follows:
CHAPTER 392. APPLIANCE EFFICIENCY STANDARDS
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 392.001. DEFINITIONS. In this chapter:
(1) "Bottle-type water dispenser" means a water
dispenser that uses a bottle or reservoir as the source of potable
water.
(2) "Commercial hot food holding cabinet" means a
heated, fully enclosed compartment with one or more solid or glass
doors that is designed to maintain the temperature of hot food that
has been cooked in a separate appliance.
(3) "Compact audio product," also known as a mini,
mid, micro, or shelf audio system, means an integrated audio system
encased in a single housing that includes an amplifier and radio
tuner with attached or separable speakers that can reproduce audio
from magnetic tape, compact disc, DVD, or flash memory.
(4) "Digital versatile disc" or "DVD" means a
laser-encoded plastic medium capable of storing a large amount of
digital audio, video, or computer data.
(5) "DVD player" means a digital versatile disc player
that:
(A) is a commercially available electronic
product encased in a single housing that includes an integral power
supply; and
(B) is designed to decode digitized video signals
on a DVD.
(6) "DVD recorder" means a digital versatile disc
recorder that:
(A) is a commercially available electronic
product encased in a single housing that includes an integral power
supply; and
(B) is designed for the production or recording
of digitized video signals on a DVD.
(7) "Energy Star Program" means the United States
Environmental Protection Agency's Energy Star Program.
(8) "Portable electric spa" means a factory-built
electric spa or hot tub, supplied with equipment for heating and
circulating water.
(9) "Residential pool pump" means a pump used to
circulate and filter residential swimming pool water to maintain
the water's clarity and sanitation.
(10) "Water dispenser" means a factory-made assembly
that mechanically cools and heats potable water and that dispenses
the cooled or heated water by integral or remote means.
Sec. 392.002. APPLICABILITY; EXEMPTIONS. (a) This
chapter applies to the following new products sold, offered for
sale, or installed in this state:
(1) bottle-type water dispensers;
(2) commercial hot food holding cabinets;
(3) compact audio products;
(4) DVD players and recorders;
(5) portable electric spas; and
(6) residential pool pumps.
(b) This chapter does not apply to:
(1) a new product manufactured in this state and sold
outside the state;
(2) a new product manufactured outside this state and
sold at wholesale inside the state for final retail sale and
installation outside the state;
(3) a product installed in a mobile manufactured home
at the time of the home's construction;
(4) a product designed expressly for installation and
use in a recreational vehicle;
(5) a commercial heated glass merchandising cabinet,
dresser warmer, or cook-and-hold appliance for hot food;
(6) a compact audio product that:
(A) can be independently powered by internal
batteries;
(B) has a powered external satellite antenna; or
(C) can provide a video output signal; or
(7) a DVD recorder that has an electronic programming
guide function that provides an interactive, onscreen menu of
television listings and that downloads program information from the
vertical blanking interval of a regular television signal.
[Sections 392.003-392.050 reserved for expansion]
SUBCHAPTER B. EFFICIENCY STANDARDS
Sec. 392.051. MINIMUM EFFICIENCY STANDARDS FOR CERTAIN
APPLIANCES. (a) Not later than September 1, 2010, the
comptroller, in consultation with the state energy conservation
office, shall adopt rules establishing minimum efficiency
standards for each type of new product described by Section
392.002(a).
(b) If the United States Environmental Protection Agency or
the United States Department of Energy adopt an Energy Star rating
for any appliance covered by this chapter, the standard contained
in this chapter is preempted by the federal requirements.
Sec. 392.052. NEW OR INCREASED EFFICIENCY STANDARDS.
(a) The comptroller may adopt rules to establish increased
efficiency standards for a product listed in Section 392.002(a) or
to establish standards for a product not listed in that subsection.
(b) In considering new or increased standards, the
comptroller, in consultation with the state energy conservation
office, shall prescribe new or increased efficiency standards if
the comptroller determines that the standards would:
(1) serve to promote energy conservation in this
state; and
(2) be cost-effective for consumers who purchase and
use the new product.
Sec. 392.053. EFFECTIVE DATE OF STANDARDS. A standard
established under this subchapter takes effect on the first
anniversary of the date the rule establishing the standard is
adopted.
Sec. 392.054. BOTTLE-TYPE WATER DISPENSERS. A bottle-type
water dispenser designed for dispensing both hot and cold water may
not have standby energy consumption greater than 1.2 kilowatt-hours
per day, as measured in accordance with the test criteria contained
in version 1 of the "Energy Star Program Requirements for Bottled
Water Coolers," except that Section D, "Timer Usage," of those test
criteria may not be used to test units with an integral automatic
timer.
Sec. 392.055. COMMERCIAL HOT FOOD HOLDING CABINETS. (a) A
commercial hot food holding cabinet must have a maximum idle energy
rate of not greater than 40 watts per cubic foot of interior volume,
as determined by the "idle energy rate-dry test" in ASTM F2140-01,
"Standard Test Method for Performance of Hot Food Holding
Cabinets," copyright 2007 ASTM International.
(b) Interior volume of a commercial hot food holding cabinet
must be measured in accordance with the method shown in the "Energy
Star Program Requirements for Commercial Hot Food Holding Cabinets"
as in effect on August 15, 2003.
Sec. 392.056. COMPACT AUDIO PRODUCTS. A compact audio
product may not use more than two watts in standby-passive mode for
a product without a permanently illuminated clock display and four
watts in standby-passive mode for a product with a permanently
illuminated clock display, as measured in accordance with
International Electrotechnical Commission (IEC) test method
62087:2002-2003(E), "Methods of Measurement for the Power
Consumption of Audio, Video, and Related Equipment."
Sec. 392.057. DVD PLAYERS OR RECORDERS. A DVD player or
recorder may not use more than three watts in standby-passive mode,
as measured in accordance with International Electrotechnical
Commission (IEC) test method 62087:2002-2003(E), "Methods of
Measurement for the Power Consumption of Audio, Video, and Related
Equipment."
Sec. 392.058. PORTABLE ELECTRIC SPAS. A portable electric
spa may not have a standby power greater than 5(v) watts where v
equals the total volume in gallons. Standby power must be measured
in accordance with the test method for portable electric spas
contained in Section 1604, Title 20, California Code of
Regulations, as of December 2006.
Sec. 392.059. RESIDENTIAL POOL PUMP MOTORS. (a) A
residential pool pump motor manufactured on or after January 1,
2006, may not be a split-phase or capacitor start-induction run
type motor.
(b)(1) A residential pool pump motor with a pool pump motor
capacity of one horsepower or more that is manufactured on or after
January 1, 2008, must be capable of operating at two or more speeds
with a low speed having a rotation rate that is not more than
one-half of the motor's maximum rotation rate. The pump motor must
be operated with a pump control that has the capability of operating
the pump at a minimum of two speeds.
(2) A residential pool pump motor with a pool pump
motor capacity of one horsepower or more that is manufactured on or
after January 1, 2010, and installed in existing residential pool
pumps as a replacement residential pool pump motor must be capable
of operating at two or more speeds with a low speed having a
rotation rate that is not more than one-half of the motor's maximum
rotation rate. The pump motor must be operated with a pump control
that is capable of operating the pump at a minimum of two speeds.
(c) A pool pump motor control manufactured on or after
January 1, 2008, that is sold for use with a pool pump capable of
operating at two or more speeds must be able to operate the pool
pump at a minimum of two speeds. The control's default circulation
speed setting may be no more than one-half of the motor's maximum
rotation rate. Any high-speed override capability must be for a
temporary period not to exceed one 24-hour cycle without resetting
to default settings.
Sec. 392.060. TRACKING, REPORTING, AND CLAIMING EMISSION
REDUCTION CREDITS ASSOCIATED WITH ENERGY EFFICIENCY. The Texas
Commission on Environmental Quality shall work with the Energy
Systems Laboratory at the Texas Engineering Experiment Station of
The Texas A&M University System to ensure that the state receives
full credit in the state implementation plan for air emission
reductions achieved through energy efficiency.
[Sections 392.061-392.100 reserved for expansion]
SUBCHAPTER C. IMPLEMENTATION AND MODIFICATION OF EFFICIENCY
STANDARDS
Sec. 392.101. PRODUCT COMPLIANCE. (a) A new product
described by Section 392.002(a) may not be sold or offered for sale
in this state unless the efficiency of the new product meets or
exceeds the applicable efficiency standards prescribed by the rules
adopted under Subchapter B.
(b) On or after the first anniversary of the date for the
sale or offering for sale of a new product subject to an efficiency
standard adopted under this chapter, that product may not be
installed for compensation in this state unless the efficiency of
the product meets or exceeds the applicable efficiency standards
prescribed by the rules adopted under Subchapter B.
[Sections 392.102-392.150 reserved for expansion]
SUBCHAPTER D. TESTING, CERTIFICATION, LABELING, AND ENFORCEMENT
Sec. 392.151. PRODUCT TESTING. (a) The manufacturer of a
new product subject to an efficiency standard adopted under this
chapter shall test samples of the product in accordance with the
test procedures adopted under this chapter.
(b) The comptroller, in consultation with the state energy
conservation office, by rule shall adopt test procedures for
determining a product's energy efficiency if Subchapter B does not
provide for the procedures. The comptroller shall adopt test
methods approved by the United States Department of Energy or, in
the absence of those test methods, other appropriate nationally
recognized test methods.
(c) The comptroller may adopt revised test procedures when
new versions of test procedures become available.
Sec. 392.152. PRODUCT CERTIFICATION. (a) Except as
provided by Subsection (c), the manufacturer of a new product
subject to an efficiency standard adopted under this chapter shall
certify to the comptroller that the product is in compliance with
that standard according to test results.
(b) The comptroller shall adopt rules governing the
certification of products under this section and shall coordinate
certification by this state with the certification programs of
other states and federal agencies with similar standards.
(c) Subsection (a) does not apply to a manufacturer of
single-voltage external AC to DC power supplies, walk-in
refrigerators, or walk-in freezers.
Sec. 392.153. PRODUCT LABELING. (a) The manufacturer of a
new product subject to an efficiency standard adopted under this
chapter shall identify each product offered for sale or
installation in this state as being in compliance with this chapter
by means of a mark, label, or tag on the product and packaging at the
time of sale or installation.
(b) The comptroller shall adopt rules governing the
identification of products and packaging under this section. The
rules must to the greatest practical extent be coordinated with the
labeling programs of other states and federal agencies with
equivalent efficiency standards. The comptroller shall allow the
use of existing marks, labels, or tags that connote compliance with
the efficiency requirements of this chapter.
Sec. 392.154. COMPTROLLER TESTING FOR EFFICIENCY STANDARDS
COMPLIANCE. (a) The comptroller may test products subject to an
efficiency standard adopted under this chapter for compliance with
the applicable efficiency standards. If a product tested is found
not to be in compliance with the standards, the comptroller shall
impose against the manufacturer of the product an assessment in an
amount sufficient to recover the costs of purchasing and testing
the product.
(b) The comptroller shall make information available to the
public on any product found under this section not to be in
compliance with the standards.
Sec. 392.155. INSPECTIONS. The comptroller may have
periodic inspections conducted of a distributor or retailer of new
products covered by Section 392.002 subject to an efficiency
standard adopted under this chapter to determine compliance with
this chapter. The inspections must be conducted at reasonable and
convenient hours. Notice must be given before an inspection may be
conducted.
Sec. 392.156. COMPLAINTS. The comptroller shall
investigate a complaint received concerning a violation of this
chapter and shall report the results of the investigation to the
attorney general.
Sec. 392.157. ATTORNEY GENERAL ENFORCEMENT. The attorney
general may institute proceedings to enforce this chapter.
Sec. 392.158. VIOLATIONS AND PENALTIES. (a) The
comptroller shall issue a warning to a person for the person's first
violation of this chapter.
(b) A person's second and subsequent violations are subject
to a civil penalty of not more than $250.
(c) Each violation constitutes a separate violation, and
each day that a violation continues constitutes a separate
violation.
(d) A penalty assessed under this section is in addition to
costs assessed under Section 392.154.
Sec. 392.159. RULES FOR IMPLEMENTATION AND ENFORCEMENT.
The comptroller may adopt additional rules as necessary to ensure
the proper implementation and enforcement of this chapter.
SECTION 9.02. (a) The efficiency standards prescribed by
rules adopted under Subchapter B, Chapter 392, Health and Safety
Code, as added by this article, apply only to the sale or offer of
sale of a new product to which that chapter applies that occurs on
or after January 1, 2011.
(b) Notwithstanding Subsection (a) of this section, a new
residential pool pump that does not meet the efficiency standards
contained in Section 392.059, Health and Safety Code, as added by
this article, may be sold in this state through December 31, 2011.
ARTICLE 10. GREENHOUSE GAS REGISTRY
SECTION 10.01. Chapter 382, Health and Safety Code, is
amended by adding Subchapter J to read as follows:
SUBCHAPTER J. GREENHOUSE GAS REGISTRY
Sec. 382.501. GREENHOUSE GAS REGISTRY. (a) The commission
along with the Railroad Commission of Texas 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 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.
ARTICLE 11. PERMITTING
SECTION 11.01. Section 382.0518, Health and Safety Code, is
amended by adding Subsections (c-1), (c-2), (c-3), (c-4), and (c-5)
to read as follows:
(c-1) In considering the issuance of a permit for a new
electric generating facility expected to emit 100 tons per year or
more of volatile organic compounds or nitrogen oxides, the
commission shall consider:
(1) the formation of ozone due to the cumulative
effects of the facilitys expected emissions, authorized emissions
from issued permits for a new major source or a major modification
to an existing major source, and actual authorized emissions from
all facilities permitted under this section, as applicable; and
(2) whether the emissions from the facility in regard
to the formation of ozone will negatively affect compliance with
the state's air quality state implementation plan.
(c-2) The commission shall conduct an analysis when a
facility described by Subsection (c-1) is located:
(1) in an unclassifiable or designated attainment area
for ozone; and
(2) within a distance of a designated ozone
nonattainment county as specified by commission rule.
(c-3) The commission shall specify by rule an ozone de
minimis impact level. The de minimis impact level shall be used to
determine the effect of a facility described by Subsection (c-1).
(c-4) A facilitys emissions that contribute at or below the
de minimis impact level will be presumed to have no significant
impact and will not be considered to cause or contribute to a
violation of the ozone national ambient air quality standard.
(c-5) A facilitys emissions that contribute above the de
minimis impact level may be required to reduce the impact of its
emissions to at or below the de minimis impact level by obtaining
sufficient emissions reductions. The commission may consider
federally enforceable reductions of projected emissions from the
facility or actual emissions from other sources within the area
described by Subsection (c-2) to meet this requirement.
SECTION 11.02. Subsections (a) and (d), Section 382.055,
Health and Safety Code, are amended to read as follows:
(a) A preconstruction permit issued or renewed by the
commission is subject to review to determine whether the authority
to operate should be renewed according to the following schedule:
(1) a preconstruction permit issued before December 1,
1991, is subject to review not later than 10 [15] years after the
date of the last renewal before January 1, 2010 [issuance];
(2) a preconstruction permit issued on or after
December 1, 1991, is subject to review:
(A) every 10 years after the date of issuance; or
(B) on the filing of an application for an
amendment to the permit, if:
(i) the applicant is subject to Section
382.056;
(ii) the application is filed with the
commission not more than three years before the date the permit is
scheduled to expire; and
(iii) the applicant does not object to
having the permit subjected to review at that time; and
(3) for cause, a preconstruction permit issued on or
after December 1, 1991, for a facility at a nonfederal source may
contain a provision requiring the permit to be renewed at a period
of between five and 10 years.
(d) In determining whether and under which conditions a
preconstruction permit should be renewed, the commission shall
consider, at a minimum:
(1) the performance of the owner or operator of the
facility according to the method developed by the commission under
Section 5.754, Water Code; [and]
(2) the condition and effectiveness of existing
emission control equipment and practices;
(3) whether construction of the facility has been
completed;
(4) whether the facility has been commercially
operated; and
(5) whether the facility has ceased operation for the
preceding five years or more.
SECTION 11.03. (a) Not later than September 1, 2011, the
Texas Commission on Environmental Quality shall adopt rules
governing the analysis to be conducted under Subsection (c-2),
Section 382.0518, Health and Safety Code, as added by this Act.
(b) Not later than December 1, 2010, the Texas Commission on
Environmental Quality shall submit an interim progress report to
the legislature regarding the analysis to be conducted under
Subsection (c-2), Section 382.0518, Health and Safety Code, as
added by this Act.
ARTICLE 12. EFFECTIVE DATE
SECTION 12.01. This Act takes effect September 1, 2009.
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