S.B. No. 12
 
 
 
 
AN ACT
  relating to programs for the enhancement of air quality, including
  energy efficiency standards in state purchasing and energy
  consumption; providing penalties.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
  ARTICLE 1. LOW-INCOME VEHICLE REPAIR ASSISTANCE, RETROFIT, AND
  ACCELERATED VEHICLE RETIREMENT PROGRAM
         SECTION 1.01.  Section 382.003, Health and Safety Code, is
  amended by adding Subdivisions (7-a), (9-a), and (10-a) to read as
  follows:
               (7-a)  "Hybrid motor vehicle" means a motor vehicle
  that draws propulsion energy from both gasoline or conventional
  diesel fuel and a rechargeable energy storage system.
               (9-a)  "Motor vehicle" means a fully self-propelled
  vehicle having four wheels that has as its primary purpose the
  transport of a person or persons, or property, on a public highway.
               (10-a)  "Qualifying motor vehicle" means a motor
  vehicle that meets the requirements of Section 382.210(b).
         SECTION 1.02.  Subsection (b), Section 382.0622, Health and
  Safety Code, is amended to read as follows:
         (b)  Except as provided by Subsection [Subsections] (b-1)
  [and (e)], Clean Air Act fees shall be deposited in the state
  treasury to the credit of the clean air account and shall be used to
  safeguard the air resources of the state.
         SECTION 1.03.  Section 382.209, Health and Safety Code, is
  amended by amending Subsections (b), (e), and (g) and adding
  Subsections (i) and (j) to read as follows:
         (b)  The commission shall provide funding for local
  low-income vehicle repair assistance, retrofit, and accelerated
  vehicle retirement programs with available funds collected under
  Section 382.202, 382.302, or other designated and available funds.
  The programs shall be administered in accordance with Chapter 783,
  Government Code. Program [Programmatic] costs may include call
  center management, application oversight, invoice analysis,
  education, outreach, and advertising. Not more than 10 percent of
  the money provided to a local low-income vehicle repair assistance,
  retrofit, and accelerated vehicle retirement program under this
  section may be used for the administration of the programs,
  including program costs.
         (e)  A vehicle is not eligible to participate in a low-income
  vehicle repair assistance, retrofit, and accelerated vehicle
  retirement program established under this section unless:
               (1)  the vehicle is capable of being operated;
               (2)  the registration of the vehicle:
                     (A)  is current; and
                     (B)  reflects that the vehicle has been registered
  in the county implementing the program for the 12 months preceding
  the application for participation in the program;
               (3)  the commissioners court of the county
  administering the program determines that the vehicle meets the
  eligibility criteria adopted by the commission, the Texas
  Department of Transportation, and the Public Safety Commission;
  [and]
               (4)  if the vehicle is to be repaired, the repair is
  done by a repair facility recognized by the Department of Public
  Safety, which may be an independent or private entity licensed by
  the state; and
               (5)  if the vehicle is to be retired under this
  subsection and Section 382.213, the replacement vehicle is a
  qualifying motor vehicle.
         (g)  A participating county may contract with any
  appropriate entity, including the regional council of governments
  or the metropolitan planning organization in the appropriate
  region, or with another county for services necessary to implement
  the participating county's low-income vehicle repair assistance,
  retrofit, and accelerated vehicle retirement program. The
  participating counties in a nonattainment region or counties
  participating in an early action compact under Subchapter H may
  agree to have the money collected in any one county be used in any
  other participating county in the same region. [The participating
  counties may also agree to contract with any appropriate entity,
  including the regional metropolitan planning organization or
  council of governments, to implement a program under Section
  382.217.]
         (i)  Notwithstanding the vehicle replacement requirements
  provided by Subsection (d)(2), the commission by rule may provide
  monetary or other compensatory assistance under the low-income
  vehicle repair assistance, retrofit, and accelerated vehicle
  retirement program, subject to the availability of funds, for the
  replacement of a vehicle that meets the following criteria:
               (1)  the vehicle is gasoline-powered and is at least 10
  years old;
               (2)  the vehicle owner meets applicable financial
  eligibility criteria;
               (3)  the vehicle meets the requirements provided by
  Subsections (e)(1) and (2); and
               (4)  the vehicle has passed a Department of Public
  Safety motor vehicle safety inspection or safety and emissions
  inspection within the 15-month period before the application is
  submitted.
         (j)  The commission may provide monetary or other
  compensatory assistance under the low-income vehicle repair
  assistance, retrofit, and accelerated vehicle retirement program
  for a replacement vehicle or replacement assistance for a pre-1996
  model year replacement vehicle that passes the required United
  States Environmental Protection Agency Start-Up Acceleration
  Simulation Mode Standards emissions test but that would have failed
  the United States Environmental Protection Agency Final
  Acceleration Simulation Mode Standards emissions test or failed to
  meet some other criterion determined by the commission; provided,
  however, that a replacement vehicle under this subsection must be a
  qualifying motor vehicle.
         SECTION 1.04.  Section 382.210, Health and Safety Code, is
  amended to read as follows:
         Sec. 382.210.  IMPLEMENTATION GUIDELINES AND REQUIREMENTS.
  (a)  The commission by rule shall adopt guidelines to assist a
  participating county in implementing a low-income vehicle repair
  assistance, retrofit, and accelerated vehicle retirement program
  authorized under Section 382.209. The guidelines at a minimum
  shall recommend:
               (1)  a minimum and maximum amount for repair
  assistance;
               (2)  a minimum and maximum amount toward the purchase
  price of a replacement vehicle qualified for the accelerated
  retirement program, based on vehicle type and model year, with the
  maximum amount not to exceed:
                     (A)  $3,000 for a replacement car of the current
  model year or the previous three model years, except as provided by
  Paragraph (C);
                     (B)  $3,000 for a replacement truck of the current
  model year or the previous two model years, except as provided by
  Paragraph (C); and
                     (C)  $3,500 for a replacement hybrid vehicle of
  the current model year or the previous model year;
               (3)  criteria for determining eligibility, taking into
  account:
                     (A)  the vehicle owner's income, which may not
  exceed 300 percent of the federal poverty level;
                     (B)  the fair market value of the vehicle; and
                     (C)  any other relevant considerations;
               (4)  safeguards for preventing fraud in the repair,
  purchase, or sale of a vehicle in the program; and
               (5)  procedures for determining the degree and amount
  of repair assistance a vehicle is allowed, based on:
                     (A)  the amount of money the vehicle owner has
  spent on repairs;
                     (B)  the vehicle owner's income; and
                     (C)  any other relevant factors.
         (b)  A replacement vehicle described by Subsection (a)(2)
  must:
               (1)  except as provided by Subsection (c), be a vehicle
  in a class or category of vehicles that has been certified to meet
  federal Tier 2, Bin 5 or a cleaner Bin certification under 40 C.F.R.
  Section 86.1811-04, as published in the February 10, 2000, Federal
  Register;
               (2)  have a gross vehicle weight rating of less than
  10,000 pounds; and
               (3)  be a vehicle the total cost of which does not
  exceed $25,000.
         (c)  The commission may adopt any revisions made by the
  federal government to the emissions standards described by
  Subsection (b)(1).
         (d)  A participating county shall provide an electronic
  means for distributing vehicle repair or replacement funds once all
  program criteria have been met with regard to the repair or
  replacement. The county shall ensure that funds are transferred to
  a participating dealer under this section not later than five
  business days after the date the county receives proof of the sale
  and any required administrative documents from the participating
  dealer.
         (e)  In rules adopted under this section, the commission
  shall require a mandatory procedure that:
               (1)  produces a document confirming that a person is
  eligible to purchase a replacement vehicle in the manner provided
  by this chapter, and the amount of money available to the
  participating purchaser;
               (2)  provides that a person who seeks to purchase a
  replacement vehicle in the manner provided by this chapter is
  required to have the document required by Subdivision (1) before
  the person enters into negotiation for a replacement vehicle in the
  manner provided by this chapter; and
               (3)  provides that a participating dealer who relies on
  a document issued as required by Subdivision (1) has no duty to
  otherwise confirm the eligibility of a person to purchase a
  replacement vehicle in the manner provided by this chapter.
         (f)  In this section, "total cost" means the total amount of
  money paid or to be paid for the purchase of a motor vehicle as set
  forth as "sales price" in the form entitled "Application for Texas
  Certificate of Title" promulgated by the Texas Department of
  Transportation. In a transaction that does not involve the use of
  that form, the term means an amount of money that is equivalent, or
  substantially equivalent, to the amount that would appear as "sales
  price" on the Application for Texas Certificate of Title if that
  form were involved.
         SECTION 1.05.  Section 382.213, Health and Safety Code, is
  amended by amending Subsection (a) and adding Subsections (d)
  through (i) to read as follows:
         (a)  Except as provided by Subsection (c) and Subdivision (5)
  of this subsection, a vehicle retired under an accelerated vehicle
  retirement program authorized by Section 382.209 may not be resold
  or reused in its entirety in this or another state. Subject to the
  provisions of Subsection (i), the automobile dealer who takes
  possession of the vehicle must submit to the program administrator
  proof, in a manner adopted by the commission, that the vehicle has
  been retired. The vehicle must be:
               (1)  destroyed;
               (2)  recycled;
               (3)  dismantled and its parts sold as used parts or used
  in the program;
               (4)  placed in a storage facility of a program
  established under Section 382.209 and subsequently destroyed,
  recycled, or dismantled and its parts sold or used in the program;
  or
               (5)  repaired, brought into compliance, and used as a
  replacement vehicle under Section 382.209(d)(2).
         (d)  Notwithstanding Subsection (a)(3), the dismantler of a
  vehicle shall scrap the emissions control equipment and engine.
  The dismantler shall certify that the equipment and engine have
  been scrapped and not resold into the marketplace. A person who
  causes, suffers, allows, or permits a violation of this subsection
  or of a rule adopted under this section is subject to a civil
  penalty under Subchapter D, Chapter 7, Water Code, for each
  violation. For purposes of this subsection, a separate violation
  occurs with each fraudulent certification or prohibited resale.
         (e)  Notwithstanding Subsection (d), vehicle parts not
  related to emissions control equipment or the engine may be resold
  in any state. The only cost to be paid by a recycler for the
  residual scrap metal of a vehicle retired under this section shall
  be the cost of transportation of the residual scrap metal to the
  recycling facility.
         (f)  Any dismantling of vehicles or salvaging of steel under
  this section must be performed at a facility located in this state.
         (g)  In dismantling a vehicle under this section, the
  dismantler shall remove any mercury switches in accordance with
  state and federal law.
         (h)  For purposes of this section, the commission shall adopt
  rules defining "emissions control equipment" and "engine."
         (i)  Notwithstanding any other provision of this section,
  and except as provided by this subsection, a dealer is in compliance
  with this section and incurs no civil or criminal liability as a
  result of the disposal of a replaced vehicle if the dealer produces
  proof of transfer of the replaced vehicle by the dealer to a
  dismantler. The defense provided by this subsection is not
  available to a dealer who knowingly and intentionally conspires
  with another person to violate this section.
         SECTION 1.06.  Subchapter G, Chapter 382, Health and Safety
  Code, is amended by adding Section 382.219 to read as follows:
         Sec. 382.219.  PURCHASE OF REPLACEMENT VEHICLE; AUTOMOBILE
  DEALERSHIPS. (a)  An amount described by Section 382.210(a)(2) may
  be used as a down payment toward the purchase of a replacement
  vehicle.
         (b)  An automobile dealer that participates in the
  procedures and programs offered by this chapter must be located in
  the state. No dealer is required to participate in the procedures
  and programs provided by this chapter.
         SECTION 1.07.  Subchapter G, Chapter 382, Health and Safety
  Code, is amended by adding Section 382.220 to read as follows:
         Sec. 382.220.  USE OF FUNDING FOR LOCAL INITIATIVE PROJECTS.
  (a)  Money that is made available to participating counties under
  Section 382.202(g) or 382.302 may be appropriated only for programs
  administered in accordance with Chapter 783, Government Code, to
  improve air quality. A participating county may agree to contract
  with any appropriate entity, including a metropolitan planning
  organization or a council of governments to implement a program
  under Section 382.202, 382.209, or this section.
         (b)  A program under this section must be implemented in
  consultation with the commission and may include a program to:
               (1)  expand and enhance the AirCheck Texas Repair and
  Replacement Assistance Program;
               (2)  develop and implement programs or systems that
  remotely determine vehicle emissions and notify the vehicle's
  operator;
               (3)  develop and implement projects to implement the
  commission's smoking vehicle program;
               (4)  develop and implement projects for coordinating
  with local law enforcement officials to reduce the use of
  counterfeit state inspection stickers by providing local law
  enforcement officials with funds to identify vehicles with
  counterfeit state inspection stickers and to carry out appropriate
  actions;
               (5)  develop and implement programs to enhance
  transportation system improvements; or
               (6)  develop and implement new air control strategies
  designed to assist local areas in complying with state and federal
  air quality rules and regulations.
         (c)  Money that is made available for the implementation of a
  program under Subsection (b) may not be expended for call center
  management, application oversight, invoice analysis, education,
  outreach, or advertising purposes.
         (d)  Fees collected under Sections 382.202 and 382.302 may be
  used, in an amount not to exceed $5 million per fiscal year, for
  projects described by Subsection (b). The fees shall be made
  available only to counties participating in the low-income vehicle
  repair assistance, retrofit, and accelerated vehicle retirement
  programs created under Section 382.209 and only on a matching
  basis, whereby the commission provides money to a county in the same
  amount that the county dedicates to a project authorized by
  Subsection (b).
         SECTION 1.08.  Subsection (b), Section 152.002, Tax Code, is
  amended to read as follows:
         (b)  "Total consideration" does not include:
               (1)  a cash discount;
               (2)  a full cash or credit refund to a customer of the
  sales price of a motor vehicle returned to the seller;
               (3)  the amount charged for labor or service rendered
  in installing, applying, remodeling, or repairing the motor vehicle
  sold;
               (4)  a financing, carrying, or service charge or
  interest on credit extended on a motor vehicle sold under a
  conditional sale or other deferred payment contract;
               (5)  the value of a motor vehicle taken by a seller as
  all or a part of the consideration for sale of another motor
  vehicle, including any cash payment to the buyer under Section
  348.404, Finance Code;
               (6)  a charge for transportation of the motor vehicle
  after a sale; [or]
               (7)  motor vehicle inventory tax; or
               (8)  an amount made available to the customer under
  Subchapter G, Chapter 382, Health and Safety Code.
         SECTION 1.09.  Section 7.102, Water Code, is amended to read
  as follows:
         Sec. 7.102.  MAXIMUM PENALTY. A person who causes, suffers,
  allows, or permits a violation of a statute, rule, order, or permit
  relating to Chapter 37 of this code, Chapter 366, 371, or 372,
  Health and Safety Code, Subchapter G, Chapter 382, Health and
  Safety Code, or Chapter 1903, Occupations Code, shall be assessed
  for each violation a civil penalty not less than $50 nor greater
  than $5,000 for each day of each violation as the court or jury
  considers proper. A person who causes, suffers, allows, or permits
  a violation of a statute, rule, order, or permit relating to any
  other matter within the commission's jurisdiction to enforce, other
  than violations of Chapter 11, 12, 13, 16, or 36 of this code, or
  Chapter 341, Health and Safety Code, shall be assessed for each
  violation a civil penalty not less than $50 nor greater than $25,000
  for each day of each violation as the court or jury considers
  proper. Each day of a continuing violation is a separate violation.
         SECTION 1.10.  The following provisions of the Health and
  Safety Code are repealed:
               (1)  Subsection (e), Section 382.0622;
               (2)  Subsections (q) and (r), Section 382.202; and
               (3)  Section 382.217.
         SECTION 1.11.  The Texas Commission on Environmental Quality
  shall review its current cutpoint levels for nitrogen oxide
  emissions and determine whether a lower cutpoint standard would
  best serve the interest of the public health and welfare. The
  determination shall be made by rule not later than January 1, 2008.
  If the commission adopts a lower cutpoint standard, the commission
  shall make the low-income vehicle repair assistance, retrofit, and
  accelerated vehicle retirement program under Section 382.209,
  Health and Safety Code, as amended by this article, available to
  owners of vehicles that did not meet the prior, more stringent
  standard.
         SECTION 1.12.  (a)  The Texas Commission on Environmental
  Quality shall seek to work in partnership with automobile
  manufacturers and dealers in the state to increase public awareness
  of and participation in the low-income vehicle repair assistance,
  retrofit, and accelerated vehicle retirement program under Section
  382.209, Health and Safety Code, as amended by this article.
         (b)  Funding for the partnership described by Subsection (a)
  of this section shall be used exclusively for the purpose of
  publicizing the program.
         SECTION 1.13.  (a)  The Texas Commission on Environmental
  Quality shall seek to work in partnership with the steel industry
  and automobile dismantlers to ensure that vehicles being replaced
  are scrapped and that proof of scrapping is provided to the
  commission.
         (b)  Not later than January 1, 2008, the Texas Commission on
  Environmental Quality shall adopt procedures for certifying that
  emissions control equipment and vehicle engines have been scrapped
  and not resold into the marketplace and shall by rule define
  "emissions control equipment" and "engine," as required by Section
  382.213, Health and Safety Code, as amended by this article.
  ARTICLE 2.  TEXAS EMISSIONS REDUCTION PLAN
         SECTION 2.01.  Section 386.002, Health and Safety Code, is
  amended to read as follows:
         Sec. 386.002.  EXPIRATION. This chapter expires August 31,
  2013 [2010].
         SECTION 2.02.  Subsection (a), Section 386.052, Health and
  Safety Code, is amended to read as follows:
         (a)  In administering the plan established under this
  chapter and in accordance with the requirements of this chapter,
  the commission:
               (1)  shall:
                     (A) [(1)]  manage plan funds and oversee the plan;
                     (B) [(2)]  produce guidelines, protocols, and
  criteria for eligible projects;
                     (C) [(3)]  develop methodologies for evaluating
  project cost-effectiveness;
                     (D) [(4)]  prepare reports regarding the progress
  and effectiveness of the plan; and
                     (E) [(5)]  take all appropriate and necessary
  actions so that emissions reductions achieved through the plan are
  credited by the United States Environmental Protection Agency to
  the appropriate emissions reduction objectives in the state
  implementation plan; and
               (2)  may hire staff and consultants needed to complete
  the commission's duties under this section and ensure timely review
  of applications and reimbursement of grant applicants' eligible
  project costs.
         SECTION 2.03.  Subsection (d), Section 386.053, Health and
  Safety Code, is amended to read as follows:
         (d)  The commission may propose revisions to the guidelines
  and criteria adopted under this section as necessary to improve the
  ability of the plan to achieve its goals. Revisions may include,
  among other changes, adding additional pollutants, adding
  stationary engines or engines used in stationary applications,
  adding vehicles and equipment that use fuels other than diesel, or
  adjusting eligible program categories, as appropriate, to ensure
  that incentives established under this chapter achieve the maximum
  possible emissions reductions. The commission shall make a
  proposed revision available to the public before the 30th [45th]
  day preceding the date of final adoption of the revision and shall
  hold at least one public meeting to consider public comments on the
  proposed revision before final adoption.
         SECTION 2.04.  Subsection (c), Section 386.104, Health and
  Safety Code, is amended to read as follows:
         (c)  For a proposed project as described by Section
  386.102(b), other than a project involving a marine vessel or
  engine, not less than 75 percent of vehicle miles traveled or hours
  of operation projected for the five years immediately following the
  award of a grant must be projected to take place in a nonattainment
  area or affected county of this state. The commission may also
  allow vehicle travel on highways and roadways, or portions of a
  highway or roadway, designated by the commission and located
  outside a nonattainment area or affected county to count towards
  the percentage of use requirement in this subsection. For a
  proposed project involving a marine vessel or engine, the vessel or
  engine must be operated in the intercoastal waterways or bays
  adjacent to a nonattainment area or affected county of this state
  for a sufficient amount of time over the lifetime of the project, as
  determined by the commission, to meet the cost-effectiveness
  requirements of Section 386.105.
         SECTION 2.05.  Subsection (a), Section 386.106, Health and
  Safety Code, is amended to read as follows:
         (a)  Except as provided by Section 386.107 and except for
  infrastructure projects and infrastructure purchases that are part
  of a broader retrofit, repower, replacement, or add-on equipment
  project, the commission may not award a grant for a proposed project
  the cost-effectiveness of which, calculated in accordance with
  Section 386.105 and criteria developed under that section, exceeds
  $15,000 [$13,000] per ton of oxides of nitrogen emissions reduced
  in the nonattainment area or affected county for which the project
  is proposed. This subsection does not restrict commission
  authority under other law to require emissions reductions with a
  cost-effectiveness that exceeds $15,000 [$13,000] per ton.
         SECTION 2.06.  Section 386.109, Health and Safety Code, is
  amended to read as follows:
         Sec. 386.109.  ELIGIBLE INFRASTRUCTURE PROJECTS. (a)  The
  commission may consider for funding under Section 386.108:
               (1)  the purchase and installation at a site of
  equipment that is designed primarily to dispense qualifying fuel,
  other than standard gasoline or diesel, or the purchase of on-site
  mobile fueling equipment;
               (2)  infrastructure projects, including auxiliary
  power units, designed to dispense electricity to:
                     (A)  motor vehicles;
                     (B)  [and] on-road and non-road diesels; and
                     (C)  marine vessels; and
               (3)  a project that involves a technology that allows a
  vehicle to replace with electric power, while the vehicle is
  parked, the power normally supplied by the vehicle's internal
  combustion engine.
         (b)  The commission may provide funding to other state
  agencies to implement projects under Subsection (a)(3), including
  funding for the lease, purchase, or installation of idle reduction
  technologies and facilities at rest areas and other public
  facilities on major highway transportation routes located in areas
  eligible for funding or for marine vessels operating on water
  routes eligible for funding. Funding under this subsection may
  include reasonable operational costs determined by the commission
  to be needed for the initial start-up and proper operation of the
  idle reduction technologies. The state agency leasing, owning, or
  operating the idle reduction facility constructed with funds
  provided under this subsection may, but is not required to, charge
  reasonable fees for the provision of idle reduction services
  provided that those fees are used to directly offset the cost of
  providing the services.
         (c)  In evaluating a request for funding of an eligible
  infrastructure project, the commission shall encourage the use of a
  technology that allows a vehicle to replace with electric power,
  while the vehicle is parked, the power normally supplied by the
  vehicle's internal combustion engine at the state's ports and
  border crossings in affected areas.
         SECTION 2.07.  Section 386.117, Health and Safety Code, is
  amended by adding Subsections (e) and (f) to read as follows:
         (e)  The commission shall:
               (1)  investigate the requirements for establishing an
  Internet-based application process for rebate grants and report
  those requirements to the legislature not later than December 31,
  2007; or
               (2)  implement an Internet-based application process
  for rebate grants not later than June 1, 2008.
         (f)  The commission or its designee shall notify potential
  applicants of any changes to the rebate grant process by its e-mail
  list service and posting those changes on its Internet website at
  least 30 days before the changes become effective.
         SECTION 2.08.  Subsection (b), Section 386.251, Health and
  Safety Code, is amended to read as follows:
         (b)  The fund is administered by the commission
  [comptroller] for the benefit of the plan established under this
  chapter. The fund is exempt from the application of Section
  403.095, Government Code. Interest earned on the fund shall be
  credited to the fund.
         SECTION 2.09.  Subsection (a), Section 386.252, Health and
  Safety Code, as amended by Section 3, Chapter 766, Section 3,
  Chapter 1095, and Section 11, Chapter 1125, Acts of the 79th
  Legislature, Regular Session, 2005, 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 not more
  than four percent may be used for the clean school bus program and
  not more than 10 percent may be used for on-road diesel purchase or
  lease incentives;
               (2)  for the new technology research and development
  program, 9.5 percent of the money in the fund, of which up to
  $250,000 is allocated for administration, up to $200,000 is
  allocated for a health effects study, $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, not less than 20 percent
  is to be allocated each year to support research related to air
  quality for the Houston-Galveston-Brazoria and Dallas-Fort Worth
  nonattainment areas by a nonprofit organization based in Houston of
  which $216,000 each year shall be contracted to the Energy Systems
  Laboratory at the Texas Engineering Experiment Station for the
  development and annual calculation of creditable statewide
  emissions reductions obtained through wind and other renewable
  energy resources for the State Implementation Plan, and the balance
  is to be allocated each year to a [that] nonprofit organization or
  an institution of higher education based in Houston to be used to
  implement and administer the new technology research and
  development program under a contract with the commission 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
               (3)  for administrative costs incurred by the
  commission and the laboratory, three percent of the money in the
  fund.
         SECTION 2.10.  Section 387.003, Health and Safety Code, is
  amended by amending Subsection (a) and adding Subsections (c)
  through (h) to read as follows:
         (a)  A [The] nonprofit organization or institution of higher
  education described by Section 386.252(a)(2), under a contract with
  the commission as described by that section, shall establish and
  administer a new technology research and development program as
  provided by this chapter. The commission may contract with more
  than one entity and may limit the amount of each grant contract
  accordingly.
         (c)  The board of directors of a nonprofit organization under
  contract with the commission to establish and administer a new
  technology research and development program as provided by this
  chapter may not have more than 11 members, must include two persons
  of relevant scientific expertise to be nominated by the commission,
  and may not include more than four county judges selected from
  counties in the Houston-Galveston-Brazoria and Dallas-Fort Worth
  nonattainment areas. The two persons of relevant scientific
  expertise to be nominated by the commission may be employees or
  officers of the commission, provided that they do not participate
  in funding decisions affecting the granting of funds by the
  commission to a nonprofit organization on whose board they serve.
         (d)  The commission may enter into a grant contract with an
  institution of higher education described by Section 386.252(a)(2)
  for the institution to operate a testing facility which would be
  available for demonstration of eligible projects receiving grants
  under this chapter.
         (e)  The commission shall provide oversight as appropriate
  for grants provided to a nonprofit organization under this program.
         (f)  A nonprofit organization shall submit to the commission
  for approval a budget for the disposition of funds granted under
  this program.
         (g)  The commission shall limit the use of grants for
  administrative costs incurred by a nonprofit organization to an
  amount not to exceed 10 percent of the funding provided to the
  nonprofit organization under this program.
         (h)  A nonprofit organization that receives grants from the
  commission under this program is subject to Chapters 551 and 552,
  Government Code.
         SECTION 2.11.  Section 387.004, Health and Safety Code, is
  amended to read as follows:
         Sec. 387.004.  SOLICITATION OF NEW TECHNOLOGY PROPOSALS.  
  The commission from time to time shall issue or contract with a
  nonprofit organization described by Section 386.252(a)(2) to issue
  specific requests for proposals (RFPs) or program opportunity
  notices (PONs) for technology projects to be funded under the
  program.
         SECTION 2.12.  Section 387.005, Health and Safety Code, is
  amended to read as follows:
         Sec. 387.005.  ELIGIBLE PROJECTS; PRIORITIES. (a)  Grants
  awarded under this chapter shall be directed toward a balanced mix
  of:
               (1)  retrofit and add-on technologies and other
  advanced technologies that [to] reduce emissions from the existing
  stock of engines and vehicles targeted by the Texas emissions
  reduction plan;
               (2)  the establishment of a testing facility to
  evaluate retrofits, add-ons, advanced technologies, and fuels, or
  combinations of retrofits, add-ons, advanced technologies, and
  fuels, to determine their effectiveness in producing emissions
  reductions, with emphasis on the reduction of oxides of nitrogen;
  and
               (3)  advanced technologies for new engines and vehicles
  that produce very-low or zero emissions of oxides of nitrogen,
  including stationary and mobile fuel cells[;
               [(3)     studies to improve air quality assessment and
  modeling; and
               [(4)     advanced technologies that reduce emissions from
  other significant sources].
         (b)  The commission, directly or through a nonprofit
  organization described by Section 386.252(a)(2), shall identify
  and evaluate and may consider making grants for technology projects
  that would allow qualifying fuels to be produced from energy
  resources in this state. In considering projects under this
  subsection, the commission shall give preference to projects
  involving otherwise unusable energy resources in this state and
  producing qualifying fuels at prices lower than otherwise available
  and low enough to make the projects to be funded under the program
  economically attractive to local businesses in the area for which
  the project is proposed.
         (c)  In soliciting proposals under Section 387.004 and
  determining how to allocate grant money available for projects
  under this chapter, the commission shall give special consideration
  to advanced technologies and retrofit or add-on projects that
  provide multiple benefits by reducing emissions of particulates and
  other air pollutants.
         (d)  A project that involves publicly or privately owned
  vehicles or vessels is eligible for funding under this chapter if
  the project meets all applicable criteria.
         (e)  [Studies authorized under Subsection (a)(3) shall be
  consistent with air quality research priorities identified by the
  commission and conducted in an independent and objective manner.
         [(f)]  If a commissioner is an employee or owner of an entity
  that applies for a grant under this chapter, the commissioner,
  before a vote on the grant, shall disclose the fact of the
  commissioner's employment or ownership. The disclosure must be
  entered into the minutes of the meeting. The commissioner may not
  vote on or otherwise participate in the awarding of the grant. If
  the commissioner does not comply with this subsection, the entity
  is not eligible for the grant.
         (f)  Selection of grant recipients by a nonprofit
  organization described by Section 386.252(a)(2) under contract
  with the commission for the purpose of establishing and
  administering a new technology research and development program as
  provided by this chapter is subject to the commission's review and
  to the other requirements of this chapter. A grant contract under
  this chapter using funds described by Section 386.252 may not be
  made by a nonprofit organization if the commission or executive
  director of the commission does not consent to the grant or
  contract.
         SECTION 2.13.  Subsection (d), Section 151.0515, Tax Code,
  is amended to read as follows:
         (d)  This section expires August 31, 2013 [September 30,
  2010].
         SECTION 2.14.  Subsection (c), Section 152.0215, Tax Code,
  is amended to read as follows:
         (c)  This section expires August 31, 2013 [September 30,
  2010].
         SECTION 2.15.  Subsections (a), (b), and (b-1), Section
  501.138, Transportation Code, are amended to read as follows:
         (a)  An applicant for a certificate of title, other than the
  state or a political subdivision of the state, must pay the county
  assessor-collector a fee of:
               (1)  $33 if the applicant's residence is a county
  located within a nonattainment area as defined under Section 107(d)
  of the federal Clean Air Act (42 U.S.C. Section 7407), as amended,
  or is an affected county, as defined by Section 386.001, Health and
  Safety Code; or
               (2)  $28 if the applicant's residence is any other
  county[; or
               [(3)     on or after September 1, 2010, $28 regardless of
  the county in which the applicant resides].
         (b)  The county assessor-collector shall send:
               (1)  $5 of the fee to the county treasurer for deposit
  in the officers' salary fund;
               (2)  $8 of the fee to the department:
                     (A)  together with the application within the time
  prescribed by Section 501.023; or
                     (B)  if the fee is deposited in an
  interest-bearing account or certificate in the county depository or
  invested in an investment authorized by Subchapter A, Chapter 2256,
  Government Code, not later than the 35th day after the date on which
  the fee is received; and
               (3)  the following amount to the comptroller at the
  time and in the manner prescribed by the comptroller:
                     (A)  $20 of the fee if the applicant's residence
  is a county located within a nonattainment area as defined under
  Section 107(d) of the federal Clean Air Act (42 U.S.C. Section
  7407), as amended, or is an affected county, as defined by Section
  386.001, Health and Safety Code; or
                     (B)  $15 of the fee if the applicant's residence
  is any other county[; or
                     [(C)     on or after September 1, 2010, $15
  regardless of the county in which the applicant resides].
         (b-1)  Fees collected under Subsection (b) to be sent to the
  comptroller shall be deposited as follows:
               (1)  before September 1, 2008, to the credit of the
  Texas emissions reduction plan fund; and
               (2)  on or after September 1, 2008, to the credit of the
  Texas Mobility Fund, except that $5 of each fee imposed under
  Subsection (a)(1) and deposited on or after September 1, 2008, and
  before September 1, 2015 [2010], shall be deposited to the credit of
  the Texas emissions reduction plan fund.
         SECTION 2.16.  Subsection (b-3), Section 501.138,
  Transportation Code, is amended to read as follows:
         (b-3)  This subsection and Subsection (b-2) expire September
  1, 2015 [2010].
         SECTION 2.17.  Subsection (c), Section 502.1675,
  Transportation Code, is amended to read as follows:
         (c)  This section expires August 31, 2013 [2010].
         SECTION 2.18.  Subsection (c), Section 548.5055,
  Transportation Code, is amended to read as follows:
         (c)  This section expires August 31, 2013 [2010].
         SECTION 2.19.  Section 12, Chapter 1125, Acts of the 79th
  Legislature, Regular Session, 2005, amending Subsection (a),
  Section 386.252, Health and Safety Code, is repealed.
  ARTICLE 3.  ENERGY EFFICIENCY
         SECTION 3.01.  Section 388.003, Health and Safety Code, is
  amended by adding Subsections (b-1) and (b-2) to read as follows:
         (b-1)  If the State Energy Conservation Office determines,
  based on written recommendations from the laboratory, that the
  latest published edition of the International Residential Code
  energy efficiency provisions or the latest published edition of the
  International Energy Conservation Code will result in residential
  or commercial energy efficiency and air quality that is equivalent
  to or better than the energy efficiency and air quality achievable
  under the editions adopted under Subsection (a) or (b), the office
  may by rule adopt the equivalent or more stringent editions and
  substitute them for the energy codes described by Subsection (a) or
  (b). The rule, if adopted, shall establish an effective date for
  the new energy codes but not earlier than nine months after the date
  of adoption. The laboratory shall make its recommendations not
  later than six months after publication of new editions at the end
  of each three-year code development cycle of the International
  Residential Code and the International Energy Conservation Code.
         (b-2)  The State Energy Conservation Office by rule shall
  establish a procedure for persons who have an interest in the
  adoption of energy codes under Subsection (b-1) to have an
  opportunity to comment on the codes under consideration and to have
  the commentary considered by the laboratory in developing its
  recommendations. The office shall consider persons who have an
  interest in adoption of those codes to include:
               (1)  commercial and residential builders, architects
  and engineers;
               (2)  municipal, county, and other local government
  authorities; and
               (3)  environmental groups.
         SECTION 3.02.  Section 388.005, Health and Safety Code, is
  amended to read as follows:
         Sec. 388.005.  ENERGY EFFICIENCY PROGRAMS IN INSTITUTIONS OF
  HIGHER EDUCATION, STATE AGENCIES, AND CERTAIN POLITICAL
  SUBDIVISIONS. (a)  In this section:
               (1)  "Institution of higher education" includes an
  institution of higher education as defined by Section 61.003,
  Education Code, and a private institution of higher education that
  receives funding from the state.
               (2)  "Political[, "political] subdivision" means:
                     (A) [(1)]  an affected county; or
                     (B) [(2)]  any political subdivision in a
  nonattainment area or in an affected county other than:
                           (i) [(A)]  a school district; or
                           (ii) [(B)]  a district as defined by Section
  36.001 or 49.001, Water Code, that had a total annual electricity
  expense of less than $200,000 in the previous fiscal year of the
  district.
               (3)  "State agency" means a department, commission,
  board, office, council, or other agency in the executive branch of
  government that is created by the constitution or a statute of this
  state and has authority not limited to a geographical portion of the
  state.
         (b)  Each political subdivision, institution of higher
  education, or state agency shall implement all energy efficiency
  measures that meet the standards established for a contract for
  energy conservation measures under Section 302.004(b), Local
  Government Code, in order to reduce electricity consumption by the
  existing facilities of the entity [the political subdivision].
         (c)  Each political subdivision, institution of higher
  education, or state agency shall establish a goal to reduce the
  electric consumption by the entity [political subdivision] by five
  percent each year for six [five] years, beginning September 1, 2007
  [January 1, 2002].
         (d)  A political subdivision, institution of higher
  education, or state agency that does not attain the goals under
  Subsection (c) must include in the report required by Subsection
  (e) justification that the entity [political subdivision] has
  already implemented all available measures. An entity that submits
  a report under this subsection indicating it has already
  implemented all available measures is exempt from the annual
  reporting requirement of Subsection (e) if a subsequent report
  would indicate no change in status. An entity may be required to
  provide notice that it is exempt to the State Energy Conservation
  Office.
         (e)  A political subdivision, institution of higher
  education, or state agency annually shall report to the State
  Energy Conservation Office, on forms provided by that office,
  regarding the entity's [political subdivision's] efforts and
  progress under this section. The State Energy Conservation Office
  shall provide assistance and information to the entity [political
  subdivisions] to help it [the political subdivisions] meet the
  goals set under this section.
         (f)  This section does not apply to an institution of higher
  education or a state agency if:
               (1)  the State Energy Conservation Office determines
  that, before September 1, 2007, the institution or agency adopted a
  plan for conserving energy under which the institution or agency
  has set a percentage goal for reducing electric consumption; and
               (2)  the institution or agency submits reports on its
  conservation plan not less than quarterly to the governor, the
  Legislative Budget Board, and the State Energy Conservation Office.
         SECTION 3.03.  Subsection (b), Section 44.901, Education
  Code, is amended to read as follows:
         (b)  The board of trustees of a school district shall
  establish a goal to reduce the annual electric consumption by five
  percent each year for six years, beginning September 1, 2007. The
  board of trustees of a school district may enter into an energy
  savings performance contract in accordance with this section.
         SECTION 3.04.  Subsection (d), Section 2155.068, Government
  Code, is amended to read as follows:
         (d)  As part of the standards and specifications program, the
  commission shall review contracts for opportunities to recycle
  waste produced at state buildings, shall develop and update a list
  of equipment and appliances that meet the energy efficiency
  standards of Section 2158.301, and shall assist state agencies in
  selecting products under that section as appropriate.
         SECTION 3.05.  Chapter 2158, Government Code, is amended by
  adding Subchapter F to read as follows:
  SUBCHAPTER F. ENERGY AND EFFICIENCY STANDARDS
  FOR EQUIPMENT AND APPLIANCES
         Sec. 2158.301.  ENERGY CONSERVATION. If available and cost
  effective, the commission or another state agency shall purchase
  equipment and appliances for state use that meet or exceed the
  federal Energy Star standards designated by the United States
  Environmental Protection Agency and the United States Department of
  Energy.
         SECTION 3.06.  (a)  The State Energy Conservation Office
  shall adopt rules implementing a procedure for stakeholder
  participation as required under Subsection (b-2), Section 388.003,
  Health and Safety Code, as added by this article, as soon as
  practicable after the effective date of this Act.
         (b)  The State Energy Conservation Office shall adopt rules
  as necessary to implement Subsection (b), Section 44.901, Education
  Code, as amended by this article, as soon as practicable after the
  effective date of this Act.
         SECTION 3.07.  (a)  The energy conservation standards for
  equipment and appliances under Section 2158.301, Government Code,
  as added by this article, apply to a purchase by a state agency on or
  after the effective date of this Act.
         (b)  The Texas Building and Procurement Commission shall
  develop a list of equipment and appliances under Section 2155.068,
  Government Code, as amended by this article, as soon as practicable
  after the effective date of this Act.
  ARTICLE 4.  IDLING OF MOTOR VEHICLES
         SECTION 4.01.  Subsections (b), (c), and (d), Section
  382.0191, Health and Safety Code, are amended to read as follows:
         (b)  The commission may not prohibit or limit the idling of a
  motor vehicle when idling is necessary to power a heater or air
  conditioner while a driver is using the vehicle's sleeper berth for
  a government-mandated rest period. Idling is not necessary to
  power a heater or air conditioner if the vehicle is within two miles
  of a facility offering external heating and air conditioning
  connections at a time when those connections are available.
         (c)  No driver using the vehicle's sleeper berth may idle the
  vehicle in a residential area as defined by Section 244.001, Local
  Government Code, or in a school zone or within 1,000 feet of a
  hospital or a public school during its hours of operation. An
  offense under this subsection shall be punishable by a fine not to
  exceed $500.
         (d)  This section expires September 1, 2009 [2007].
  ARTICLE 5. TEXAS COMMISSION ON ENVIRONMENTAL QUALITY NOTIFICATION
  REQUIREMENTS
         SECTION 5.01.  Section 382.0516, Health and Safety Code, is
  amended to read as follows:
         Sec. 382.0516.  NOTICE TO STATE SENATOR, STATE [AND]
  REPRESENTATIVE, AND CERTAIN LOCAL OFFICIALS. (a)  On receiving an
  application for a construction permit or an amendment to a
  construction permit, a special permit, or an operating permit for a
  facility that may emit air contaminants, the commission shall send
  notice of the application to the state senator and representative
  who represent the area in which the facility is or will be located.
         (b)  In addition to the notice required by Subsection (a),
  for an application that relates to an existing or proposed concrete
  batch plant, on receiving an application for a construction permit,
  an amendment to a construction permit, an operating permit, or an
  authorization to use a standard permit, the commission shall send
  notice of the application:
               (1)  to the county judge of the county in which the
  facility is or will be located; and
               (2)  if the facility is or will be located in a
  municipality or the extraterritorial jurisdiction of a
  municipality, to the presiding officer of the municipality's
  governing body.
         SECTION 5.02.  The notice provisions under Section 382.0516,
  Health and Safety Code, as amended by this article, apply only to an
  application for a permit that is submitted to the Texas Commission
  on Environmental Quality on or after the effective date of this
  article.
         SECTION 5.03.  This article takes effect September 1, 2007.
  ARTICLE 6. ENFORCEMENT ACTIONS BASED ON INFORMATION PROVIDED BY A
  PERSON
         SECTION 6.01.  Subchapter A, Chapter 7, Water Code, is
  amended by adding Section 7.00251 to read as follows:
         Sec. 7.00251.  INITIATION OF CERTAIN CLEAN AIR ACT
  ENFORCEMENT ACTIONS USING INFORMATION PROVIDED BY A PERSON.  If the
  commission determines that there are multiple violations based on
  information it receives as required by Title V of the federal Clean
  Air Act (42 U.S.C. Section 7661 et seq.) from a person, as defined
  in Section 382.003, Health and Safety Code, only those that require
  initiation of formal enforcement will be included in any proposed
  enforcement action. For all other violations that do not require
  initiation of formal enforcement, the commission may not include in
  the enforcement action the following:
               (1)  violations that are not repeat violations due to
  the same root cause from two consecutive investigations within the
  most recent five-year period; or
               (2)  violations that have been corrected within the
  time frame specified by the commission or for which the facility has
  not had the time specified by the commission to correct the
  violations.
  ARTICLE 7. SOLAR ENERGY DEMONSTRATION PROJECT
         SECTION 7.01.  Subchapter Z, Chapter 39, Utilities Code, is
  amended by adding Section 39.9051 to read as follows:
         Sec. 39.9051.  ENERGY EFFICIENCY DEMONSTRATION PROJECTS FOR
  SOLAR ELECTRIC SYSTEM; GRANT PROGRAM. (a)  The commission by rule
  shall establish grant programs for:
               (1)  a demonstration project for installation of solar
  electric systems for new residential subdivisions;
               (2)  a demonstration project for installation of solar
  electric systems for new or established affordable housing for
  persons with low incomes; and
               (3)  a demonstration project for installation of solar
  electric systems for not more than three small businesses.
         (b)  To qualify for a grant under this section, the solar
  electric system must be a device that:
               (1)  generates electricity using solar resources;
               (2)  has a generating capacity of not more than 1,000
  kilowatts; and
               (3)  is installed with a manufacturer's warranty
  against breakdown or undue degradation for a period of at least five
  years.
         (c)  A demonstration project grant program established under
  this section must provide for full or partial payment of the cost of
  equipment and installation for the solar electric systems. The
  commission shall establish for each grant program a competitive
  bidding process for grant applicants. The commission shall
  consider the value of funding demonstration projects in different
  parts of this state, after considering the demographic and
  geographic diversity of this state.
         (d)  To qualify for a grant under Subsection (a)(1), the
  applicant:
               (1)  must be a person whose primary business activity
  is the building of residential housing developments; and
               (2)  must have installed or must be contractually
  obligated to install qualifying solar electric systems in each
  residence constructed in a residential subdivision.
         (e)  To qualify for a grant under Subsection (a)(2), the
  applicant must have installed or be contractually obligated to
  install a qualifying solar electric system for residential real
  property:
               (1)  appraised in accordance with Section 23.21, Tax
  Code, as affordable housing property; or
               (2)  subject to a contractual obligation that the
  property will be appraised in accordance with Section 23.21, Tax
  Code, as affordable housing property within a reasonable time after
  the grant is received.
         (f)  To qualify for a grant under Subsection (a)(3), the
  applicant must be a small business or owner of a small business that
  meets qualifications adopted by the commission after consideration
  of federal Small Business Administration standards for
  qualification for loans from that administration.
         (g)  The commission shall issue a report to the governor,
  lieutenant governor, and speaker of the house of representatives
  not later than December 1 of each even-numbered year summarizing
  the status of the grant programs established under Subsection (a).
  The report must include the amount of money granted to each
  demonstration project and an evaluation of whether the projects
  demonstrate the economic and ecologic viability of solar electric
  system installations.
         (h)  This section expires December 31, 2010.
         SECTION 7.02.  (a)  The Public Utility Commission of Texas
  may not spend money to implement a demonstration project grant
  program established under Section 39.9051, Utilities Code, as added
  by this article, except for money described by Subsection (b) of
  this section that is appropriated to the commission.
         (b)  The Public Utility Commission of Texas may solicit and
  accept gifts, grants, and other donations from any source to carry
  out the demonstration grant program established under Section
  39.9051, Utilities Code, as added by this article.
         (c)  This section expires December 31, 2010.
  ARTICLE 8.  EFFECTIVE DATE
         SECTION 8.01.  This Act takes effect immediately if it
  receives a vote of two-thirds of all the members elected to each
  house, as provided by Section 39, Article III, Texas Constitution.
  If this Act does not receive the vote necessary for immediate
  effect, this Act takes effect September 1, 2007.
 
 
 
 
 
 
  ______________________________ ______________________________
     President of the Senate Speaker of the House     
 
         I hereby certify that S.B. No. 12 passed the Senate on
  March 21, 2007, by the following vote:  Yeas 29, Nays 0;
  May 21, 2007, Senate refused to concur in House amendments and
  requested appointment of Conference Committee; May 24, 2007, House
  granted request of the Senate; May 27, 2007, Senate adopted
  Conference Committee Report by the following vote:  Yeas 30,
  Nays 0.
 
 
  ______________________________
  Secretary of the Senate    
 
         I hereby certify that S.B. No. 12 passed the House, with
  amendments, on May 17, 2007, by the following vote:  Yeas 145,
  Nays 0, two present not voting; May 24, 2007, House granted request
  of the Senate for appointment of Conference Committee;
  May 28, 2007, House adopted Conference Committee Report by the
  following vote:  Yeas 144, Nays 0, two present not voting.
 
 
  ______________________________
  Chief Clerk of the House   
 
 
 
  Approved:
 
  ______________________________ 
             Date
 
 
  ______________________________ 
            Governor