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  S.B. No. 2000
 
 
 
 
AN ACT
  relating to a program to reduce the emissions of nitrogen oxides
  from certain stationary compressor engines.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Subsection (d), Section 382.051866, Health and
  Safety Code, is amended to read as follows:
         (d)  Money in the emissions reductions incentives account
  may be appropriated only to pay for emissions reduction project
  incentives under a program developed under Section 382.051867
  [382.051865] and administrative expenses associated with providing
  the incentives or the incentive program established under that
  section.
         SECTION 2.  Subchapter C, Chapter 382, Health and Safety
  Code, is amended by adding Section 382.051867 to read as follows:
         Sec. 382.051867.  RICH-BURN COMPRESSOR ENGINE GRANTS.  
  (a)  In this section, "rich-burn compressor engine" means a
  spark-ignited, Otto cycle, four-stroke, naturally aspirated or
  turbocharged compressor engine that is capable of being operated
  with an exhaust stream oxygen concentration equal to or less than
  0.5 percent by volume, as originally designed by the manufacturer.
         (b)  The commission by rule shall develop a grant program to
  assist facilities in reducing emissions of nitrogen oxides from
  stationary gas-fired, rich-burn compressor engines by installing
  nonselective catalytic reduction systems or other
  commission-approved control systems.
         (c)  To be eligible for a grant under the program, a person
  must, by the dates provided by Subsection (d) or (e), as applicable,
  install at a facility a system that limits a rich-burn compressor
  engine's discharge of nitrogen oxides and have verified that the
  system limits those emissions to:
               (1)  1.00 grams per horsepower hour for an engine with a
  rated maximum capacity of less than 500 horsepower;
               (2)  0.60 grams per horsepower hour for an engine with a
  rated maximum capacity of 500 horsepower or greater that is fired
  with landfill gas; or
               (3)  0.50 grams per horsepower hour for an engine with a
  rated maximum capacity of 500 horsepower or greater that is fired
  other than with landfill gas.
         (d)  Except as provided by Subsection (e), the grant program
  must provide for a partial reimbursement of the capital costs of
  installing a system for reducing nitrogen oxides emissions at a
  rate of:
               (1)  75 percent of those costs if the installation
  occurs and the emissions reductions are verified after August 31,
  2007, and before January 1, 2008; and
               (2)  50 percent of those costs if the installation
  occurs and the emissions reductions are verified after December 31,
  2007, and before April 1, 2008.
         (e)  This subsection applies only if the Act enacting this
  section takes immediate effect. If the Act enacting this section
  takes immediate effect, Subsection (d) has no effect. The grant
  program must provide for a partial reimbursement of the capital
  costs of installing a system for reducing nitrogen oxides emissions
  at a rate of:
               (1)  75 percent of those costs if the installation
  occurs and the emissions reductions are verified after April 30,
  2007, and before August 1, 2007; and
               (2)  50 percent of those costs if the installation
  occurs and the emissions reductions are verified after July 31,
  2007, and before April 1, 2008.
         (f)  The commission may adopt emergency rules under Section
  2001.034, Government Code, with abbreviated notice, to carry out
  any rulemaking necessary to implement this section.
         (g)  The commission may authorize the executive director to
  enter into contracts with a public agency, private person, or other
  entity for the purpose of implementing the emissions reduction
  grant program developed under this section.
         (h)  This section does not affect the responsibility or
  liability of an owner or operator of a stationary gas-fired,
  rich-burn compressor engine to reduce emissions under this chapter
  or a rule, permit, or order adopted under this chapter.
         (i)  The commission shall require verification of the
  reductions associated with the program before the commission
  distributes a grant.
         (j)  A grant under this section is contingent on the
  availability of funds. The commission shall award grants in the
  order in which applications with any required verification of
  reductions are received. The commission may not pay or otherwise
  provide a grant after August 31, 2008.
         (k)  This section expires August 31, 2008.
         SECTION 3.  Subsection (e), Section 382.051866, Health and
  Safety Code, is repealed.
         SECTION 4.  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. 2000 passed the Senate on
  May 2, 2007, by the following vote: Yeas 29, Nays 0; and that the
  Senate concurred in House amendment on May 24, 2007, by the
  following vote: Yeas 30, Nays 0.
 
 
  ______________________________
  Secretary of the Senate    
 
         I hereby certify that S.B. No. 2000 passed the House, with
  amendment, on May 23, 2007, by the following vote: Yeas 144,
  Nays 0, two present not voting.
 
 
  ______________________________
  Chief Clerk of the House   
 
 
 
  Approved:
 
  ______________________________ 
              Date
 
 
  ______________________________ 
            Governor