This website will be unavailable from Friday, April 26, 2024 at 6:00 p.m. through Monday, April 29, 2024 at 7:00 a.m. due to data center maintenance.

 
 
  S.B. No. 1672
 
AN ACT
relating to nitrogen oxide allowance allocation adjustments and the
incorporation of modifications to federal rules under the state
implementation plan.
       BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
       SECTION 1.  Subsections (b), (c), and (e), Section 382.0173,
Health and Safety Code, are amended to read as follows:
       (b)  The commission may require emissions reductions in
conjunction with implementation of the rules adopted under
Subsection (a) only for electric generating units. The commission
shall make permanent allocations that are reflective of the
allocation requirements of 40 C.F.R. Subparts AA through HH and
Subparts AAA through HHH of Part 96 and 40 C.F.R. Subpart HHHH of
Part 60, as applicable, at no cost to units as defined in 40 C.F.R.
Sections [Section] 51.123 and 60.4102 using the United States
Environmental Protection Agency's allocation method as specified
by 40 C.F.R. Section 60.4142(a)(1)(i)[, as issued by that agency on
May 12, 2005,] or 40 C.F.R. Section 96.142(a)(1)(i)[, as issued by
that agency on May 18, 2005], as applicable, with the exception of
nitrogen oxides which shall be allocated according to the
additional requirements of Subsection (c). The commission shall
maintain a special reserve of allocations for new units commencing
operation on or after January 1, 2001, as defined by 40 C.F.R.
Subparts AA through HH and Subparts AAA through HHH of Part 96 and
40 C.F.R. Subpart HHHH of Part 60, as applicable, with the exception
of nitrogen oxides which shall be allocated according to the
additional requirements of Subsection (c).
       (c)  Additional requirements regarding NOx allocations:
             (1)  The commission shall maintain a special reserve of
allocations for nitrogen oxide of 9.5 percent for new units.
Beginning with the 2015 control period, units shall be considered
new for each control period in which they do not have five years of
operating data reported to the commission prior to the date of
allocation for a given control period. Prior to the 2015 control
period, units that commenced operation on or after January 1, 2001,
will receive NOx allocations from the special reserve only.
             (2)  Nitrogen oxide allowances shall be established for
the 2009-2014 control periods for units commencing operation before
January 1, 2001, using the average of the three highest amounts of
the unit's adjusted control period heat input for 2000 through
2004, with the adjusted control period heat input for each year
calculated as follows:
                   (A)  if the unit is coal-fired during the year,
the unit's control period heat input for such year is multiplied by
90 percent;
                   (B)  if the unit is natural gas-fired during the
year, the unit's control period heat input for such year is
multiplied by 50 percent; and
                   (C)  if the fossil fuel fired unit is not subject
to Paragraph [Subparagraph] (A) or (B) of this subdivision
[paragraph], the unit's control period heat input for such year is
multiplied by 30 percent.
             (3)  Before the allocation date specified by EPA for
the control period beginning January 1, 2018 [2016], and every five
years thereafter, the commission shall adjust the baseline for all
affected units using the average of the three highest amounts of the
unit's adjusted control period heat input for periods one through
five of the preceding nine [seven] control periods, with the
adjusted control period heat input for each year calculated as
follows:
                   (A)  for units commencing operation before
January 1, 2001:
                         (i)  if the unit is coal-fired during the
year, the unit's control period heat input for such year is
multiplied by 90 percent;
                         (ii)  if the unit is natural gas-fired
during the year, the unit's control period heat input for such year
is multiplied by 50 percent; and
                         (iii)  if the fossil fuel fired unit is not
subject to Subparagraph (i) or (ii) [Subdivision (3)(A)(i) or
(3)(A)(ii)] of this paragraph [subparagraph], the unit's control
period heat input for such year is multiplied by 30 percent; and[.]
                   (B)  for units commencing operation on or after
January 1, 2001, in accordance with the formulas set forth by USEPA
in 40 C.F.R. 96.142 with any corrections to this section that may be
issued by USEPA prior to the allocation date.
       (e)  In adopting rules under Subsection (a), the commission
shall incorporate any modifications to the federal rules cited in
this section that result from:
             (1)  a request for rehearing regarding those rules that
is filed with the United States Environmental Protection Agency;
             (2)  [or from] a petition for review of those rules that
is filed with a court; or
             (3)  a final rulemaking action of the United States
Environmental Protection Agency.
       SECTION 2.  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. 1672 passed the Senate on
April 12, 2007, by the following vote:  Yeas 31, Nays 0.
______________________________ 
   Secretary of the Senate
       I hereby certify that S.B. No. 1672 passed the House on
April 27, 2007, by the following vote:  Yeas 133, Nays 0, two
present not voting.
______________________________ 
   Chief Clerk of the House
Approved:
______________________________ 
______________________________ 
            Date
______________________________ 
______________________________ 
          Governor