1 | 1 | | By: Blanco H.B. No. 4599 |
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2 | 2 | | |
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3 | 3 | | |
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4 | 4 | | A BILL TO BE ENTITLED |
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5 | 5 | | AN ACT |
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6 | 6 | | relating to the establishment and implementation by the Texas |
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7 | 7 | | Commission on Environmental Quality of a program to reduce the |
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8 | 8 | | emissions of greenhouse gases in this state; authorizing a fee. |
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9 | 9 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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10 | 10 | | SECTION 1. Subtitle C, Title 5, Health and Safety Code, is |
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11 | 11 | | amended by adding Chapter 396 to read as follows: |
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12 | 12 | | CHAPTER 396. GREENHOUSE GAS EMISSIONS REDUCTION PROGRAM |
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13 | 13 | | Sec. 396.0101. DEFINITIONS. In this chapter: |
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14 | 14 | | (1) "Carbon dioxide equivalent emissions" means the |
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15 | 15 | | number of metric tons of emissions of carbon dioxide that has the |
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16 | 16 | | same global warming potential as one metric ton of a compared |
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17 | 17 | | greenhouse gas. |
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18 | 18 | | (2) "Commission" means the Texas Commission on |
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19 | 19 | | Environmental Quality. |
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20 | 20 | | (3) "Covered entity" means: |
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21 | 21 | | (A) an entity permitted under Section 382.05102 |
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22 | 22 | | in a manner consistent with Section 382.051; and |
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23 | 23 | | (B) an entity or class of entities that, as |
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24 | 24 | | determined by the commission, is transporting, selling, or |
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25 | 25 | | otherwise using a covered fuel in a manner that emits a greenhouse |
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26 | 26 | | gas into the atmosphere. |
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27 | 27 | | (4) "Covered fuel" means crude oil, natural gas, coal, |
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28 | 28 | | or another product derived from crude oil, natural gas, biofuel or |
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29 | 29 | | coal that is used in a manner that emits greenhouse gases into the |
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30 | 30 | | atmosphere. |
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31 | 31 | | (5) "Greenhouse gas" includes carbon dioxide, |
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32 | 32 | | methane, nitrous oxide, sulfur hexafluoride, hydrofluorocarbons, |
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33 | 33 | | and perfluorocarbons. |
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34 | 34 | | Sec. 396.0102. GREENHOUSE GAS EMISSIONS REDUCTION PROGRAM; |
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35 | 35 | | FEE. The commission by rule shall establish a program that: |
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36 | 36 | | (1) reduces emissions of greenhouse gases in this |
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37 | 37 | | state; |
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38 | 38 | | (2) imposes a fee on emissions resulting from the use |
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39 | 39 | | or transfer of a covered fuel by a covered entity; and |
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40 | 40 | | (3) issues payments for facilities that capture and |
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41 | 41 | | sequester carbon dioxide. |
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42 | 42 | | Sec. 396.0103. FEE AMOUNT AND RATE. (a) The commission |
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43 | 43 | | shall impose a fee on the emission of a greenhouse gas in this state |
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44 | 44 | | for each metric ton of carbon dioxide equivalent emissions of the |
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45 | 45 | | greenhouse gas multiplied by the fee rate. |
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46 | 46 | | (b) The commission by rule shall establish a fee rate of not |
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47 | 47 | | less than $5. |
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48 | 48 | | Sec. 396.0104. DISPOSITION OF FEE. The commission shall |
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49 | 49 | | deposit to the credit of the emissions fee account the fees |
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50 | 50 | | collected under this chapter. |
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51 | 51 | | Sec. 396.0105. EMISSIONS FEE ACCOUNT. (a) The emissions |
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52 | 52 | | fee account is an account in the general revenue fund. |
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53 | 53 | | (b) The account is administered by the commission for the |
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54 | 54 | | benefit of the program established under this chapter. Interest |
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55 | 55 | | earned on the account is credited to the account. |
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56 | 56 | | (c) The account consists of fees deposited to the credit of |
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57 | 57 | | the account under Section 396.0104 and any other money appropriated |
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58 | 58 | | or transferred to the account. |
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59 | 59 | | (d) Money in the account may be used only for: |
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60 | 60 | | (1) payments made under Section 396.0107; |
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61 | 61 | | (2) administration of the program established under |
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62 | 62 | | this chapter; or |
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63 | 63 | | (3) other programs to reduce the emissions of |
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64 | 64 | | greenhouse gases in this state. |
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65 | 65 | | Sec. 396.0106. FEE EXEMPTIONS. The commission: |
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66 | 66 | | (1) shall exempt agricultural uses of covered fuel |
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67 | 67 | | from payment of the fee imposed under Section 396.0103; and |
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68 | 68 | | (2) may establish other appropriate exemptions under |
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69 | 69 | | the program. |
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70 | 70 | | Sec. 396.0107. SEQUESTRATION PAYMENTS. (a) The commission |
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71 | 71 | | shall pay to a facility that captures and sequesters carbon dioxide |
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72 | 72 | | an amount equal to the metric tons of carbon dioxide captured and |
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73 | 73 | | sequestered multiplied by the rate established under Section |
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74 | 74 | | 396.0103(b). |
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75 | 75 | | Sec. 396.0108. EMISSIONS REDUCTION SCHEDULE. The |
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76 | 76 | | commission shall establish a schedule for annual reductions of |
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77 | 77 | | emissions of greenhouse gases. |
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78 | 78 | | Sec. 396.0109. TERMINATION OF FEE. The commission may not |
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79 | 79 | | collect a fee under Section 396.0103 or make a payment under Section |
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80 | 80 | | 396.0107 if the executive director of the commission determines |
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81 | 81 | | that the actual emissions of greenhouse gases from covered fuels is |
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82 | 82 | | not more than 10 percent of the emissions of greenhouse gases from |
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83 | 83 | | covered fuels during the year 2016. |
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84 | 84 | | SECTION 2. This Act takes effect September 1, 2019. |
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