By: Gooden H.B. No. 3450
A BILL TO BE ENTITLED
AN ACT
relating to a program to support the installation of certain
emmissions-free generation systems that do not use water in the
production of electricity and are located on publicly owned land or
government buildings and parking structures.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. 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 air quality research support program
established under Chapter 387;
(4) the clean school bus program established under
Chapter 390;
(5) the new technology implementation grant program
established under Chapter 391;
(6) the regional air monitoring program established
under Section 386.252(a)(5);
(7) a health effects study as provided by Section
386.252(a) [386.252(a)(7)];
(8) air quality planning activities as provided by
Section 386.252(a) [386.252(a)(8)]; [and]
(9) a contract with the Energy Systems Laboratory at
the Texas Engineering Experiment Station for computation of
creditable statewide emissions reductions as provided by Section
386.252(a); and
(10) the emissions-free generation grant program
established under Subchapter G [386.252(a)(9)].
SECTION 2. Section 386.252(a), Health and Safety Code, as
amended by Chapters 589 (S.B. 20) and 892 (S.B. 385), Acts of the
82nd Legislature, Regular Session, 2011, is reenacted and 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) not more than five 10 percent may be used for
on-road diesel purchase or lease incentives;
(C) five percent [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;
(D) five percent shall be used for the clean
fleet program;
(E) two percent may be used for the Texas
alternative fueling facilities program;
(F) not more [less] than 20 [16] percent shall be
used for the natural gas vehicle grant program; [and]
(G) not more than four percent may be used to
provide grants for natural gas fueling stations under Section
394.010; and
(H) 20 percent shall be used for the
emmissions-free generation grant program established under
Subchapter G;
(2) for the new technology research and development
program, nine percent of the money in the fund, of which:
(A) 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 387.002 [387.010]; and
(D) the balance is allocated each year to the
commission to be used to:
(i) implement and administer the new
technology research and development program 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 certain [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.
SECTION 3. Chapter 386, Health and Safety Code, is amended
by adding Subchapter G to read as follows:
SUBCHAPTER G. EMISSIONS-FREE GENERATION GRANT PROGRAM
Sec. 386.301. FINDINGS. The legislature finds that the
programs previously developed as part of the Texas Emissions
Reduction Plan are being effectively implemented and the continued
reduction of emissions in this state is necessary and requires the
development of additional programs. The legislature further finds
that the development of electric generation that has no emissions,
requires no water for the production of electricity, and can
provide energy production during periods of peak electric
consumption, is in the best interest of the state at this time.
Sec. 386.302. DEFINITION. In this subchapter,
"emissions-free generation" means electric generation with a
capacity of not more than 30 megawatts provided by an electric
generation technology that has no measurable air emissions.
Sec. 386.303. GRANT PROGRAM. (a) The commission shall
establish and administer an emissions-free generation grant
program using money allocated under Section 386.252 to promote
projects for the acquisition and installation of emissions-free
generation systems on publicly owned land, a building or parking
structure.
(b) A grant received under this section may be used to fund
not more than 30 percent of the total cost of acquiring and
installing the emissions-free generation system exclusive of any
federal incentives.
(c) An application for a grant must be submitted by the
entity that owns the land, building or parking structure and, if
applicable, by a co-applicant who may own the emissions-free
generation system. If the land, building or parking structure
owner's application relies on a co-applicant, the application must
include a copy of an agreement signed by the owner and the
co-applicant that specifies the ownership of the installed
emissions-free generation system.
(d) The commission by rule shall establish criteria for
projects eligible to receive a grant under this section and
procedures for grant applicants that prioritize qualified projects
based on;
(1) the lowest possible air emissions during the
production of electricity;
(2) the lowest amount of water used during the
production of electricity; and
(3) the capability to provide energy production to the
electric market during times of peak electric consumption.
(e) The commission shall establish as the initial grant
amounts:
(1) 60 cents per rated watt for installed
emissions-free generation with a capacity of up to 5 megawatts; and
(2) 30 cents per rated watt for installed
emissions-free generation with a capacity of more than 5 megawatts.
Sec. 386.304. ELIGIBILITY. A person is eligible to receive
a grant under a program established under this subchapter only for a
project to acquire and install an emissions-free generation system
on publicly owned land, or a building or parking structure that is:
(1) owned by or is located on property that is owned by
this state or a political subdivision of this state; and
(2) located in a nonattainment area or affected
county, as defined by Section 386.001.
SECTION 4. This Act takes effect immediately if it receives
two thirds of all members elected to each house, as provided by
Section 39, Article III of the Texas Constitution. If this does not
receive the vote necessary for immediate effect, this Act takes
effect September 1, 2013.