Texas House Bill HB4599

Texas 2019 - 86th Regular

Caption

Relating to the establishment and implementation by the Texas Commission on Environmental Quality of a program to reduce the emissions of greenhouse gases in this state; authorizing a fee.

Impact

The bill mandates that the Texas Commission on Environmental Quality set a fee for emissions, beginning at a minimum of $5 per ton of carbon dioxide equivalent emitted. Funds from the collected fees will contribute to an emissions fee account, dedicated to supporting projects that reduce greenhouse gas emissions. This financial model aims to incentivize facilities to invest in technology that captures and sequesters carbon dioxide, potentially leading to significant reductions in overall greenhouse gas emissions across the state.

Summary

House Bill 4599 introduces a structured program aimed at reducing greenhouse gas emissions within Texas. Under this legislation, the Texas Commission on Environmental Quality is empowered to establish rules to manage greenhouse gas emissions effectively. This includes imposing fees on emissions resulting from the use or transfer of specified covered fuels—such as crude oil, natural gas, and coal—by entities designated as 'covered entities'. The bill outlines definitions and parameters for both greenhouse gases and the fees that would be applied based on the metric tons of carbon dioxide equivalent emissions.

Contention

Despite its intentions, HB4599 has sparked notable points of contention. Supporters argue that the bill is a crucial step towards addressing climate change and environmental degradation by holding major emitters accountable through financial incentives. Meanwhile, critics express concerns about the potential economic burden this fee may place on industries reliant on fossil fuels, questioning the efficacy and fairness of imposing fees that could lead to increased costs for consumers. Additionally, the exemptions for agricultural uses of covered fuels have attracted scrutiny, as they may create inequities in how different sectors are impacted by emissions regulations.