By: Blanco H.B. No. 4599
A BILL TO BE ENTITLED
AN ACT
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.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subtitle C, Title 5, Health and Safety Code, is
amended by adding Chapter 396 to read as follows:
CHAPTER 396. GREENHOUSE GAS EMISSIONS REDUCTION PROGRAM
Sec. 396.0101. DEFINITIONS. In this chapter:
(1) "Carbon dioxide equivalent emissions" means the
number of metric tons of emissions of carbon dioxide that has the
same global warming potential as one metric ton of a compared
greenhouse gas.
(2) "Commission" means the Texas Commission on
Environmental Quality.
(3) "Covered entity" means:
(A) an entity permitted under Section 382.05102
in a manner consistent with Section 382.051; and
(B) an entity or class of entities that, as
determined by the commission, is transporting, selling, or
otherwise using a covered fuel in a manner that emits a greenhouse
gas into the atmosphere.
(4) "Covered fuel" means crude oil, natural gas, coal,
or another product derived from crude oil, natural gas, biofuel or
coal that is used in a manner that emits greenhouse gases into the
atmosphere.
(5) "Greenhouse gas" includes carbon dioxide,
methane, nitrous oxide, sulfur hexafluoride, hydrofluorocarbons,
and perfluorocarbons.
Sec. 396.0102. GREENHOUSE GAS EMISSIONS REDUCTION PROGRAM;
FEE. The commission by rule shall establish a program that:
(1) reduces emissions of greenhouse gases in this
state;
(2) imposes a fee on emissions resulting from the use
or transfer of a covered fuel by a covered entity; and
(3) issues payments for facilities that capture and
sequester carbon dioxide.
Sec. 396.0103. FEE AMOUNT AND RATE. (a) The commission
shall impose a fee on the emission of a greenhouse gas in this state
for each metric ton of carbon dioxide equivalent emissions of the
greenhouse gas multiplied by the fee rate.
(b) The commission by rule shall establish a fee rate of not
less than $5.
Sec. 396.0104. DISPOSITION OF FEE. The commission shall
deposit to the credit of the emissions fee account the fees
collected under this chapter.
Sec. 396.0105. EMISSIONS FEE ACCOUNT. (a) The emissions
fee account is an account in the general revenue fund.
(b) The account is administered by the commission for the
benefit of the program established under this chapter. Interest
earned on the account is credited to the account.
(c) The account consists of fees deposited to the credit of
the account under Section 396.0104 and any other money appropriated
or transferred to the account.
(d) Money in the account may be used only for:
(1) payments made under Section 396.0107;
(2) administration of the program established under
this chapter; or
(3) other programs to reduce the emissions of
greenhouse gases in this state.
Sec. 396.0106. FEE EXEMPTIONS. The commission:
(1) shall exempt agricultural uses of covered fuel
from payment of the fee imposed under Section 396.0103; and
(2) may establish other appropriate exemptions under
the program.
Sec. 396.0107. SEQUESTRATION PAYMENTS. (a) The commission
shall pay to a facility that captures and sequesters carbon dioxide
an amount equal to the metric tons of carbon dioxide captured and
sequestered multiplied by the rate established under Section
396.0103(b).
Sec. 396.0108. EMISSIONS REDUCTION SCHEDULE. The
commission shall establish a schedule for annual reductions of
emissions of greenhouse gases.
Sec. 396.0109. TERMINATION OF FEE. The commission may not
collect a fee under Section 396.0103 or make a payment under Section
396.0107 if the executive director of the commission determines
that the actual emissions of greenhouse gases from covered fuels is
not more than 10 percent of the emissions of greenhouse gases from
covered fuels during the year 2016.
SECTION 2. This Act takes effect September 1, 2019.