Highlights 77th Texas Legislature - Senate

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NATURAL RESOURCES/Air
77 th Texas Legislature
Texas Air Emissions Reduction Plan - S.B. 5
by Senators Brown and Jackson
House Sponsor: Representative Wolens
Under the federal Clean Air Act, the United States Environmental Protection Agency (EPA) is authorized to
establish maximum allowable concentrations of certain pollutants that pose a threat to human health and
the environment. EPA may designate areas as nonattainment where pollutants exceed these standards
and all non-complying states face severe sanctions if they do not meet these standards by 2007. Texas
has four nonattainment and three near-nonattainment areas, comprising 37 counties. The Texas Natural
Resource Conservation Commission (TNRCC) has submitted a state implementation plan (SIP) to EPA to
regulate emissions in nonattainment areas.
Establishes the Texas emissions reduction plan (plan), an incentive plan targeting areas of potential
emissions reductions that TNRCC cannot regulate.
Requires TNRCC, the Public Utility Commission of Texas (PUC), the comptroller of public accounts
(comptroller), and the new Texas Council on Environmental Technology (council) to establish and
administer the plan.
Creates the Texas Emissions Reduction Plan Advisory Board (consisting of 15 appointed members) to
review the programs under the plan and make recommendations to TNRCC regarding revenue sources or
financial incentives, or any legislative, regulatory, or budgetary changes needed.
Establishes the Texas emissions reduction plan fund, an account in the state treasury administered by the
comptroller, with provisions relating to the fees, surcharges, and payments that comprise the fund.
States that equipment purchased before September 1, 2001, is not eligible for a grant or other funding
under the plan.
States that provisions relating to the plan expire August 31, 2008.
Diesel emissions reduction incentive program:
Requires TNRCC to:
• create and run a program providing grants for eligible projects to offset the incremental cost of
emissions-reducing projects for high-emitting diesel sources in nonattainment or affected counties;
and
• develop a purchase or lease incentive program for new on-road diesels, and adopt rules necessary
to both implement the program and reimburse eligible persons purchasing or leasing a heavy-duty
motor vehicle on a prorated basis, over an eight-year lease term.
Senate Research Center 214