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AN ACT
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relating to the agricultural biomass and landfill diversion |
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incentive program. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 22.002, Agriculture Code, is amended by |
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amending Subdivisions (1) and (5) and adding Subdivisions (1-a) and |
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(5-a) to read as follows: |
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(1) "Co-firing biomass" means a solid fuel that: |
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(A) contains qualified agricultural biomass; |
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(B) is produced by a renewable biomass aggregator |
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and bio-coal fuel producer; and |
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(C) is used to supplement coal combustion for the |
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generation of electricity. |
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(1-a) "Diverter": |
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(A) means: |
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(i) a person or facility that qualifies for |
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an exemption under Section 361.111 or 363.006, Health and Safety |
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Code; |
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(ii) a handler of nonhazardous industrial |
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waste that is registered or permitted under Chapter 361, Health and |
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Safety Code; [or] |
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(iii) a facility that separates recyclable |
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materials from a municipal solid waste stream and that is |
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registered or permitted under Chapter 363, Health and Safety Code, |
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as a municipal solid waste management facility; or |
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(iv) a renewable biomass aggregator and |
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bio-coal fuel producer that operates an integrated harvesting, |
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transportation, and solid biofuel conversion facility for |
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qualified agricultural biomass; and |
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(B) does not include a facility that uses biomass |
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to generate electric energy. |
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(5) "Qualified agricultural biomass" means: |
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(A) agricultural residues that are of a type that |
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historically have been disposed of in a landfill, relocated from |
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their point of origin and stored in a manner not intended to enhance |
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or restore the soil, burned in open fields in the area from which |
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they are derived, or burned in fields and orchards that continue to |
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be used for the production of agricultural goods, and includes: |
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(i) field or seed crop residues, including |
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straw from rice or wheat, cotton gin trash, corn stover, grain |
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sorghum (milo) harvest residues, sugarcane bagasse, and |
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switchgrass; |
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(ii) fruit or nut crop residues, including |
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orchard or vineyard prunings and removals; |
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(iii) forest wood waste or urban wood |
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waste, including state designated forest management cuttings and |
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brush management cuttings from private lands; and |
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(iv) agricultural livestock waste |
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nutrients; and |
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(B) a crop grown and used specifically for its |
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energy generation value, including a crop consisting of a |
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fast-growing tree species. |
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(5-a) "Renewable biomass aggregator and bio-coal fuel |
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producer" means an operator of an integrated harvesting, |
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transportation, and fuel conversion facility that aggregates |
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qualified agricultural or forest biomass and produces renewable |
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fuel suitable for replacing coal or co-firing with coal. |
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SECTION 2. Section 22.003, Agriculture Code, is amended by |
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amending Subsections (a), (b), (c), (d), (e), and (f) and adding |
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Subsection (h) to read as follows: |
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(a) The department shall develop and administer an |
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agricultural biomass and landfill diversion incentive program to |
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make grants to farmers, loggers, [and] diverters, and renewable |
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biomass aggregators and bio-coal fuel producers who provide |
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qualified agricultural biomass, forest wood waste, urban wood |
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waste, co-firing biomass, or storm-generated biomass debris to |
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facilities that use biomass to generate electric energy in order to |
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provide an incentive for the construction of facilities for that |
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purpose and to: |
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(1) promote economic development; |
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(2) encourage the use of renewable sources in the |
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generation of electric energy; |
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(3) reduce air pollution caused by burning |
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agricultural biomass, forest wood waste, urban wood waste, |
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co-firing biomass, or storm-generated biomass debris in open |
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fields; and |
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(4) divert waste from landfills. |
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(b) Subject to Section 22.005, a farmer, logger, [or] |
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diverter, or renewable biomass aggregator and bio-coal fuel |
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producer is entitled to receive a grant in the amount of $20 for |
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each bone-dry ton of qualified agricultural biomass, forest wood |
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waste, urban wood waste, co-firing biomass, or storm-generated |
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biomass debris provided by the farmer, logger, [or] diverter, or |
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renewable biomass aggregator and bio-coal fuel producer in a form |
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suitable for generating electric energy to a facility that: |
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(1) is located in this state; |
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(2) was placed in service after August 31, 2009; |
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(3) generates electric energy sold to a third party by |
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using qualified agricultural biomass, forest wood waste, urban wood |
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waste, co-firing biomass, or storm-generated biomass debris; |
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(4) uses the best available emissions control |
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technology, considering the technical practicability and economic |
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reasonableness of reducing or eliminating the air contaminant |
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emissions resulting from the facility; |
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(5) maintains its emissions control equipment in good |
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working order; and |
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(6) is in compliance with its operating permit issued |
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by the Texas Commission on Environmental Quality under Chapter 382, |
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Health and Safety Code. |
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(c) The commissioner by rule may authorize a grant to be |
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made for providing each bone-dry ton of a type or source of |
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qualified agricultural biomass, forest wood waste, urban wood |
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waste, co-firing biomass, or storm-generated biomass debris in an |
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amount that is greater than the amount provided by Subsection (b) if |
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the commissioner determines that a grant in a greater amount is |
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necessary to provide an adequate incentive to use that type or |
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source of qualified agricultural biomass, forest wood waste, urban |
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wood waste, co-firing biomass, or storm-generated biomass debris to |
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generate electric energy. |
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(d) The Public Utility Commission of Texas and the Texas |
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Commission on Environmental Quality shall assist the department as |
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necessary to enable the department to determine whether a facility |
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meets the requirements of Subsection (b) for purposes of the |
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eligibility of farmers, loggers, [and] diverters, and renewable |
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biomass aggregators and bio-coal fuel producers for grants under |
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this chapter. |
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(e) To receive a grant under this chapter, a farmer, logger, |
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[or] diverter, or renewable biomass aggregator and bio-coal fuel |
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producer must deliver qualified agricultural biomass, forest wood |
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waste, urban wood waste, co-firing biomass, or storm-generated |
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biomass debris to a facility described by Subsection (b). The |
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operator of each facility described by that subsection shall: |
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(1) verify and document the amount of qualified |
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agricultural biomass, forest wood waste, urban wood waste, |
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co-firing biomass, or storm-generated biomass debris delivered to |
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the facility for the generation of electric energy; and |
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(2) make a grant on behalf of the department in the |
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appropriate amount to each farmer, logger, [or] diverter, or |
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renewable biomass aggregator and bio-coal fuel producer who |
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delivers qualified agricultural biomass, forest wood waste, urban |
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wood waste, co-firing biomass, or storm-generated biomass debris to |
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the facility. |
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(f) The department quarterly shall reimburse each operator |
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of a facility described by Subsection (b) for grants under this |
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chapter made by the operator during the preceding quarter to |
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eligible farmers, loggers, [and] diverters, and renewable biomass |
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aggregators and bio-coal fuel producers. To receive reimbursement |
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for one or more grants, an operator of a facility described by that |
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subsection must file an application with the department that |
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verifies the amount of the grants made by the operator during the |
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preceding quarter for which the operator seeks reimbursement. |
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(h) Notwithstanding Subsection (b)(2), a facility placed in |
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service before August 31, 2009, is eligible for reimbursement under |
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this chapter if another facility placed in operation after August |
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31, 2009, is located 25 miles or less from the existing facility. |
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SECTION 3. Section 22.004(c), Agriculture Code, is amended |
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to read as follows: |
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(c) Money in the account may be appropriated only to the |
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department for the purpose of implementing, [and] maintaining, and |
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administering the agricultural biomass and landfill diversion |
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incentive program. |
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SECTION 4. The heading to Section 22.005, Agriculture Code, |
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is amended to read as follows: |
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Sec. 22.005. LIMITATION ON GRANT AMOUNT; SCHEDULE OF |
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PAYMENTS. |
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SECTION 5. Section 22.005, Agriculture Code, is amended by |
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adding Subsection (c) to read as follows: |
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(c) On a determination that money in the agricultural |
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biomass and landfill diversion incentive account is insufficient to |
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pay reimbursements under Section 22.003 or grants under Section |
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22.006, the department, in consultation with interested parties, |
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may develop a proportionate and equitable schedule to pay the |
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reimbursements or grants. In developing a schedule to pay |
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reimbursements or grants under this subsection, the department may |
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consider a facility's: |
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(1) effect on wages and job creation or job retention; |
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(2) level of capital investment; and |
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(3) effect on the local economy and the economy of this |
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state. |
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SECTION 6. This Act takes effect September 1, 2009. |
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______________________________ |
______________________________ |
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President of the Senate |
Speaker of the House |
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I certify that H.B. No. 4031 was passed by the House on April |
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28, 2009, by the following vote: Yeas 139, Nays 0, 1 present, not |
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voting; and that the House concurred in Senate amendments to H.B. |
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No. 4031 on May 29, 2009, by the following vote: Yeas 145, Nays 0, |
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1 present, not voting. |
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______________________________ |
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Chief Clerk of the House |
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I certify that H.B. No. 4031 was passed by the Senate, with |
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amendments, on May 27, 2009, by the following vote: Yeas 31, Nays |
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0. |
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______________________________ |
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Secretary of the Senate |
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APPROVED: __________________ |
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Date |
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__________________ |
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Governor |