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  By: Averitt S.B. No. 16
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to the enhancement of air quality, including the capture
  of carbon dioxide and development of a greenhouse gas registry, the
  development of emissions reduction technologies, and the
  improvement of energy efficiency in buildings, vehicles, and
  appliances; providing civil penalties.
  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
  ARTICLE 1.  ADVANCED CLEAN ENERGY PROJECTS
         SECTION 1.01.  Subdivision (1-a), Section 382.003, Health
  and Safety Code, is amended to read as follows:
               (1-a)  "Advanced clean energy project" means a project
  for which an application for a permit under this chapter is received
  by the commission on or after January 1, 2008, and before January 1,
  2020, and that:
                     (A)  involves the use of coal, biomass, petroleum
  coke, solid waste, or fuel cells using hydrogen derived from such
  fuels, in the generation of electricity, or the creation of liquid
  fuels outside of the existing fuel production infrastructure while
  co-generating electricity;
                     (B)  is capable of achieving on an annual basis a
  99 percent or greater reduction of sulfur dioxide emissions, a 95
  percent or greater reduction of mercury emissions, and an emission
  rate for nitrogen oxides of 0.05 pounds or less per million British
  thermal units; and
                     (C)  captures at least 50 percent of the carbon
  dioxide in the fuel being combusted and sequesters that carbon
  dioxide through methods that include geologic storage [renders
  carbon dioxide capable of capture, sequestration, or abatement if
  any carbon dioxide is produced by the project].
         SECTION 1.02.  Section 382.003, Health and Safety Code, is
  amended by adding Subdivision (7-bb) to read as follows:
               (7-bb)  "Geologic storage" means the underground
  storage of carbon dioxide in a suitable geologic formation,
  including storage that is accomplished in conjunction with an
  enhanced oil recovery project.
         SECTION 1.03.  Subsection (b), Section 382.0567, Health and
  Safety Code, is amended to read as follows:
         (b)  The commission may not consider any technology or level
  of emission reduction to be achievable for purposes of a best
  available control technology analysis or lowest achievable
  emission rate analysis conducted by the commission under another
  provision of this chapter solely because the technology is used or
  the emission reduction is achieved by a facility receiving an
  incentive as an advanced clean energy project or new technology
  project, as described by Section 391.002.
  ARTICLE 2. NEW TECHNOLOGY IMPLEMENTATION GRANT PROGRAM
         SECTION 2.01.  Subsection (b), Section 386.051, Health and
  Safety Code, is amended to read as follows:
         (b)  Under the plan, the commission and the comptroller shall
  provide grants or other funding for:
               (1)  the diesel emissions reduction incentive program
  established under Subchapter C, including for infrastructure
  projects established under that subchapter;
               (2)  the motor vehicle purchase or lease incentive
  program established under Subchapter D;
               (3)  the new technology research and development
  program established under Chapter 387; [and]
               (4)  the clean school bus program established under
  Chapter 390;
               (5)  the new technology implementation grant program
  established under Chapter 391;
               (6)  the plug-in hybrid motor vehicle rebate program
  established under Subchapter G; and
               (7)  the energy-efficient appliance purchase incentive
  program established under Section 2305.080, Government Code.
         SECTION 2.02.  Subsection (b), Section 386.052, Health and
  Safety Code, is amended to read as follows:
         (b)  Appropriate commission objectives include:
               (1)  achieving maximum reductions in oxides of nitrogen
  to demonstrate compliance with the state implementation plan;
               (2)  preventing areas of the state from being in
  violation of national ambient air quality standards;
               (3)  achieving cost-saving and multiple benefits by
  reducing emissions of other pollutants; [and]
               (4)  achieving reductions of emissions of diesel
  exhaust from school buses; and
               (5)  advancing new technologies that reduce oxides of
  nitrogen and other emissions from facilities and other stationary
  sources.
         SECTION 2.03.  Subsection (b), Section 386.057, Health and
  Safety Code, is amended to read as follows:
         (b)  Not later than December 1, 2002, and not later than
  December 1 of each subsequent second year, the commission, in
  consultation with the advisory board, shall publish and submit to
  the legislature a biennial plan report.  The report must include:
               (1)  the information included in the annual reviews
  conducted under Subsection (a);
               (2)  specific information for individual projects as
  required by Subsection (c);
               (3)  information contained in reports received under
  Sections 386.205, 388.003(e), [and] 388.006, and 391.104; and
               (4)  a summary of the commission's activities under
  Section 386.052.
         SECTION 2.04.  Subsection (c), Section 386.251, Health and
  Safety Code, is amended to read as follows:
         (c)  The fund consists of:
               (1)  the amount of money deposited to the credit of the
  fund under:
                     (A)  Section 386.056;
                     (B)  Sections 151.0515 and 152.0215, Tax Code; and
                     (C)  Sections 501.138, 502.1675, and 548.5055,
  Transportation Code; and
               (2)  grant money recaptured under Section 386.111(d)
  and Chapters 387 and 391.
         SECTION 2.05.  Subsection (a), Section 386.252, Health and
  Safety Code, is 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; not more than 10 percent may be used
  for the new technology implementation program, of which a defined
  amount may be set aside for electricity storage projects related to
  renewable energy; and a specified percentage may be used for
  light-duty plug-in hybrid motor vehicle rebates;
               (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 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 2.06.  Subtitle C, Title 5, Health and Safety Code,
  is amended by adding Chapter 391 to read as follows:
  CHAPTER 391.  NEW TECHNOLOGY IMPLEMENTATION FOR FACILITIES AND
  STATIONARY SOURCES PROGRAM
  SUBCHAPTER A.  GENERAL PROVISIONS
         Sec. 391.001.  DEFINITIONS.  In this chapter:
               (1)  "Best available control technologies" or "BACT"
  has the meaning assigned by 42 U.S.C. Section 7479(3).
               (2)  "Commission" means the Texas Commission on
  Environmental Quality.
               (3)  "Facility" has the meaning assigned by Section
  382.003.
               (4)  "Incremental cost" has the meaning assigned by
  Section 386.001.
               (5)  "New technology" means emissions control
  technology that results in emissions reductions that exceed state
  or federal requirements existing at the time of submission of a new
  technology implementation grant application.
               (6)  "Stationary source" has the meaning assigned by 42
  U.S.C. Section 7602(z).
         Sec. 391.002.  PROGRAM.  (a)  The commission shall establish
  and administer a new technology implementation program to implement
  new technologies to reduce emissions from facilities and other
  stationary sources located within the state.  Under the program,
  the commission shall provide grants or other financial incentives
  for eligible projects to offset the incremental cost of emissions
  reductions.
         (b)  Projects that may be considered for a grant under the
  program include:
               (1)  advanced clean energy projects, as defined by
  Section 382.003;
               (2)  new technology projects that reduce emissions of
  regulated pollutants from point sources that involve capital
  expenditures that exceed $500 million; and
               (3)  electricity storage projects related to renewable
  energy.
         Sec. 391.003.  GUIDELINES AND CRITERIA.  (a)  The commission
  shall adopt grant guidelines and criteria consistent with the
  requirements of this chapter.
         (b)  Guidelines must include protocols to calculate
  projected emissions reductions, project cost-effectiveness, and
  safeguards to ensure that funded projects generate emissions
  reductions not otherwise required by state or federal law.
         (c)  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.
         (d)  Because the legislature finds that the current state of
  air quality in the state jeopardizes the state's ability to meet
  federal air quality requirements, the commission may adopt
  emergency rules under Section 2001.034, Government Code, with
  abbreviated notice, to carry out any rulemaking necessary to
  implement this chapter.
         (e)  Except as provided by Subsection (d), the rulemaking
  requirements of Chapter 2001, Government Code, do not apply to the
  adoption or revision of guidelines and criteria under this section.
         Sec. 391.004.  AVAILABILITY OF EMISSIONS REDUCTION CREDITS
  IN CERTAIN NONATTAINMENT AREAS.  A project funded under this
  chapter must comply with Sections 386.055 and 386.056, as
  applicable.
  [Sections 391.005-391.100 reserved for expansion]
  SUBCHAPTER B.  GRANT APPLICATIONS
         Sec. 391.101.  APPLICATION FOR GRANT.  (a)  Any person as
  defined by Section 382.003 that owns a facility located within the
  state may apply for a grant under the program established under
  Section 391.002.  The commission may adopt guidelines to allow a
  person other than the owner to apply for and receive a grant in
  order to improve the ability of the program to achieve its goals.
         (b)  An application for a grant under this chapter must be
  made on a form provided by the commission and must contain
  information required by the commission, including:
               (1)  a detailed description of the proposed project;
               (2)  information necessary for the commission to
  determine whether the project meets eligibility requirements for
  the type of project proposed, including a statement of the amounts
  of any other public financial assistance the project will receive;
  and
               (3)  other information the commission may require.
         (c)  An application for a grant under this chapter must
  contain a plan for implementation of a program that will provide
  project information and education to the public in the areas
  subject to public notice under federal and state permitting
  requirements for the proposed project until completion of the
  permitting process.  This plan shall include provision of a
  publicly accessible, informational website.
         Sec. 391.102.  GRANT APPLICATION REVIEW PROCEDURES.  
  (a)  The commission shall review an application for a grant for a
  project authorized under this chapter according to dates specified
  in a request for grant applications. If the commission determines
  that an application is incomplete, the commission shall notify the
  applicant and provide an explanation of what is missing from the
  application. The commission shall evaluate the completed
  application according to the appropriate project criteria.
         (b)  To the extent possible, the commission shall coordinate
  project review and approval with any timing constraints related to
  project purchases or installations to be made by an applicant.
         (c)  The commission may deny an application for a project
  that does not meet the applicable project criteria or that the
  commission determines is not made in good faith, is not credible, or
  is not in compliance with this chapter and the goals of this
  chapter.
         (d)  Subject to the availability of funds, the commission
  shall award a grant under this chapter in conjunction with the
  execution of a contract that obligates the commission to make the
  grant and the recipient to perform the actions described in the
  recipient's grant application.  Subject to Section 391.204, the
  contract must incorporate provisions for recapturing grant money
  for noncompliance with grant requirements.  Grant money recaptured
  under the contract provision shall be deposited in the Texas
  emissions reduction plan fund and reallocated for other projects
  under this subchapter.
         (e)  An applicant may seek reimbursement for qualifying
  equipment installed after the effective date of this program.
         (f)  The commission shall solicit review and comment from:
               (1)  the comptroller to assess the financial stability
  of the applicant, the economic benefit and job creation associated
  with the project, and any other information related to the duties of
  that office;
               (2)  the Public Utility Commission of Texas to assess
  the reliability of the proposed technology and the feasibility and
  cost-effectiveness of electric transmission associated with the
  project and any other information related to the duties of that
  agency; and
               (3)  the Railroad Commission of Texas to assess the
  availability and cost of the fuel involved with the project and any
  other information related to the duties of that agency.
         (g)  The commission may solicit review and comment from other
  state agencies or other entities with subject matter expertise as
  applicable, in reviewing grant applications.
         Sec. 391.103.  EVIDENCE OF EMISSIONS REDUCTION POTENTIAL
  REQUIRED.  (a)  An application for a new technology implementation
  grant under this chapter must show reasonable evidence that the
  proposed technology is capable of providing a significant reduction
  in emissions.
         (b)  The commission shall consider specifically, for each
  proposed technology implementation grant application:
               (1)  the projected potential for reduced emissions and
  the cost-effectiveness of the technology;
               (2)  the potential for the technology to contribute
  significantly to air quality goals; and
               (3)  the strength of the implementation plan.
         Sec. 391.104.  REPORTING REQUIREMENTS.  The commission shall
  prepare an annual report that summarizes the applications received
  and grant awards made in the preceding year.  Preparation of the
  report must include the participation of the state agencies
  involved in the review of applications under Section 391.102.
  [Sections 391.105-391.200 reserved for expansion]
  SUBCHAPTER C.  PROJECT REQUIREMENTS
         Sec. 391.201.  ELIGIBILITY OF PROJECTS FOR GRANTS.  (a)  The
  commission shall establish criteria for setting priorities for
  projects eligible to receive grants under this chapter.  The
  commission shall review and may modify the criteria and priorities
  as appropriate.
         (b)  A proposed project must meet the requirements of this
  section to be eligible for a grant under the program established
  under Section 391.002.
         (c)  Each proposed project must meet the cost-effectiveness
  requirements established by the commission.
         (d)  A new technology implementation project must document,
  in a manner acceptable to the commission, a reduction of the
  baseline emissions adopted by the commission for the relevant
  facility or stationary source.  After studying available emissions
  reduction technologies, the commission may adopt a minimum
  percentage reduction of emissions to be required by this subsection
  to improve the ability of the program to achieve its goals.
         (e)  If a baseline emissions standard does not exist for a
  facility, the commission, for purposes of this subchapter, shall
  establish an appropriate baseline emissions level for comparison
  purposes.
         (f)  Water usage for proposed projects must be consistent
  with the state water plan.
         Sec. 391.202.  CALCULATION OF COST-EFFECTIVENESS.  The
  commission shall establish reasonable methodologies for evaluating
  project cost-effectiveness consistent with accepted methods.
         Sec. 391.203.  COST-EFFECTIVENESS CRITERIA; DETERMINATION
  OF GRANT AMOUNT.  (a)  The commission may not award a grant that,
  net of taxes, provides an amount that exceeds the incremental cost
  of the proposed project.
         (b)  In determining the amount of a grant under this
  subchapter, the commission shall reduce the incremental cost of a
  proposed project by the value of any existing financial incentive
  that directly reduces the cost of the proposed project, including
  tax credits or deductions, other grants, or any other public
  financial assistance.
         Sec. 391.204.  COST SHARING.  (a)  The commission shall
  require an applicant to bear at least 50 percent of the costs of
  implementing a project funded under this chapter.
         (b)  The commission may not require repayment of grant money,
  except that the commission must require provisions for recapturing
  grant money for noncompliance with grant requirements.
         Sec. 391.205.  PREFERENCES.  (a)  In awarding grants under
  this chapter and except as provided by Subsection (c), the
  commission shall assign preference to:
               (1)  projects that use natural resources originating or
  produced in the state;
               (2)  projects that contain an energy efficiency
  component; or
               (3)  projects that include the use of solar, wind, or
  other renewable energy sources.
         (b)  higher preference shall be given to projects that
  include more than one of the criteria described by Subsection (a).
         (c)  Preferences described by Subsection (a) may be assigned
  only if the cost-effectiveness and emission performance of the
  project is comparable to a project not claiming a preference
  described by Subsection (a).
  [Sections 391.206-391.300 reserved for expansion]
  SUBCHAPTER D.  FUNDING; EXPIRATION
         Sec. 391.301.  RESTRICTION ON USE OF GRANT.  A recipient of a
  grant under this chapter must use the grant to pay the incremental
  costs of the purchase and installation of the project for which the
  grant is made, which may include reasonable and necessary expenses
  for the labor needed to install emissions-reducing equipment. The
  recipient may not use the grant for the costs of operation and
  maintenance of the emissions-reducing equipment.
         Sec. 391.302.  TIME OF USE OF GRANT FUNDING.  Funds
  appropriated for grants to be made by the commission under this
  chapter for a fiscal year may be distributed in subsequent fiscal
  years if the grant has been awarded and treated as a binding
  encumbrance by the commission before the end of the appropriation
  year of the funds appropriated for grant purposes.  Distribution of
  the grant funds is subject to Section 403.071, Government Code.
         Sec. 391.303.  EXPIRATION.  This chapter expires August 31,
  2019.
         SECTION 2.07.  Subsection (b), Section 403.071, Government
  Code, is amended to read as follows:
         (b)  A claim may not be paid from an appropriation unless the
  claim is presented to the comptroller for payment not later than two
  years after the end of the fiscal year for which the appropriation
  was made.  However, a claim may be presented not later than four
  years after the end of the fiscal year for which the appropriation
  from which the claim is to be paid was made if the appropriation
  relates to new construction contracts, to grants awarded under
  Chapter 391, Health and Safety Code, or to repair and remodeling
  projects that exceed the amount of $20,000, including furniture and
  other equipment, architects' and engineering fees, and other costs
  related to the contracts or projects.
  ARTICLE 3. LOW-INCOME VEHICLE REPAIR ASSISTANCE, RETROFIT, AND
  ACCELERATED VEHICLE RETIREMENT PROGRAM
         SECTION 3.01.  Subsection (d), Section 382.210, Health and
  Safety Code, is amended to read as follows:
         (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 the 14th
  [five] business day [days] after the date the county receives proof
  of the sale and any required administrative documents from the
  participating dealer.
  ARTICLE 4. TEXAS EMISSIONS REDUCTION PLAN
         SECTION 4.01.  Subsection (b-1), Section 501.138,
  Transportation Code, is amended to read as follows:
         (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 August 31, 2019 [September 1, 2015], shall be deposited to
  the credit of the Texas emissions reduction plan fund.
         SECTION 4.02.  Subsection (b-3), Section 501.138,
  Transportation Code, is amended to read as follows:
         (b-3)  This subsection and Subsection (b-2) expire August
  31, 2019 [September 1, 2015].
         SECTION 4.03.  Subsection (d), Section 151.0515, Tax Code,
  is amended to read as follows:
         (d)  This section expires August 31, 2019 [2013].
         SECTION 4.04.  Subsection (c), Section 152.0215, Tax Code,
  is amended to read as follows:
         (c)  This section expires August 31, 2019 [2013].
         SECTION 4.05.  Section 390.006, Health and Safety Code, is
  amended to read as follows:
         Sec. 390.006.  EXPIRATION.  This chapter expires August 31,
  2019 [2013].
         SECTION 4.06.  Section 386.001, Health and Safety Code, is
  amended by adding Subdivision (10-a) to read as follows:
               (10-a)  "Stationary engine" means a machine that
  converts fuel into mechanical motion, including turbines and other
  internal combustion devices used in nonmobile applications.
         SECTION 4.07.  Section 386.002, Health and Safety Code, is
  amended to read as follows:
         Sec. 386.002.  EXPIRATION.  This chapter expires August 31,
  2019 [2013].
         SECTION 4.08.  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. For a proposed project involving
  a mobile generator used for natural gas recovery purposes that is
  operated in a nonattainment area or affected county, the 75 percent
  of hours of operation in a nonattainment area or affected county
  projected for the project need not occur in the five years
  immediately following the award of a grant.
         SECTION 4.09.  Chapter 386, Health and Safety Code, is
  amended by adding Subchapter G to read as follows:
  SUBCHAPTER G. PLUG-IN HYBRID MOTOR VEHICLE REBATE PROGRAM
         Sec. 386.301.  DEFINITIONS.  In this subchapter:
               (1)  "Light-duty motor vehicle" has the meaning
  assigned by Section 386.151.
               (2)  "Motor vehicle" has the meaning assigned by
  Section 386.151.
               (3)  "Plug-in hybrid motor vehicle" means a vehicle
  that:
                     (A)  draws motive power from a battery with a
  capacity of at least four kilowatt-hours;
                     (B)  can be recharged from an external source of
  electricity for motive power; and
                     (C)  is a light-duty motor vehicle.
         Sec. 386.302.  COMMISSION DUTIES REGARDING PLUG-IN HYBRID
  MOTOR VEHICLE PURCHASE PROGRAM.  (a)  The commission shall develop
  a rebate program for new plug-in hybrid motor vehicles and shall
  adopt rules necessary to implement the program.
         (b)  The program shall authorize statewide rebates for the
  purchase of new plug-in hybrid motor vehicles for a purchaser who
  agrees to register the vehicle in this state and operate the vehicle
  in this state for not less than 75 percent of the vehicle's annual
  mileage.
         (c)  Only one rebate may be provided for each new plug-in
  hybrid motor vehicle.
         Sec. 386.303.  PLUG-IN HYBRID MOTOR VEHICLE REBATE.  A new
  plug-in hybrid motor vehicle is eligible for a $4,000 rebate.
         Sec. 386.304.  MODIFICATION OF INCENTIVE.  After evaluating
  new technologies, the commission may change the rebate established
  by Section 386.303 to improve the ability of the program to achieve
  its goals, including a phase out of the rebate based on the level of
  market saturation of each vehicle, consistent with federal
  regulations governing the phase out, if any, of incentives for
  hybrid vehicles.
         Sec. 386.305.  MANUFACTURER'S REPORT.  Not later than July 1
  of each year and preceding the beginning of the vehicle model year,
  a manufacturer of motor vehicles shall provide to the commission a
  list of the new vehicle models that the manufacturer intends to sell
  in this state during that model year that meet the definition of
  plug-in hybrid motor vehicles under Section 386.301.  The
  manufacturer may supplement the list provided to the commission
  under this section as necessary to include additional new vehicle
  models the manufacturer intends to sell in this state during the
  model year.
         Sec. 386.306.  LIST OF ELIGIBLE MOTOR VEHICLES.  (a)  On
  August 1 of each year the commission shall publish a list of the new
  model motor vehicles as listed for the commission under Section
  386.305.  The commission shall publish and supplement that list as
  necessary to include additional new vehicle models listed in a
  supplement to the original list provided by a manufacturer under
  Section 386.305.
         (b)  The commission shall distribute the list of eligible
  motor vehicles to all new motor vehicle dealers in this state.
         Sec. 386.307.  COMMISSION TO ACCOUNT FOR MOTOR VEHICLE
  REBATES.  (a)  The commission by rule shall develop a method to
  administer and account for the motor vehicle rebates authorized by
  this subchapter and to pay rebates to the purchaser of a new motor
  vehicle on application of the purchaser as provided by this
  subchapter.
         (b)  The commission shall develop and publish forms and
  instructions for the purchaser of a new motor vehicle to use in
  applying to the commission for a rebate under this subchapter.  The
  commission shall make the forms available to new motor vehicle
  dealers.  Dealers shall make the forms available to their
  prospective purchasers.
         (c)  In addition to other forms developed and published under
  this section, the commission shall develop and publish a
  verification form by which, with information provided by the
  dealer, the commission can verify the sale of a vehicle covered by
  this subchapter.  The verification form must include at least the
  name of the purchaser, the vehicle identification number of the
  vehicle involved, the date of the purchase, and the name of the new
  motor vehicle dealer involved in the transaction.  At the time of
  sale of a vehicle eligible for a rebate under this subchapter, the
  dealer shall complete the verification form supplied to the dealer
  by the commission.  The purchaser must include the completed
  verification form as part of the purchaser's application for a
  rebate.  The dealer shall maintain a copy of the completed
  verification form for at least two years from the date of the
  transaction.
         Sec. 386.308. SUSPENSION OF REBATES.  (a)  The commission
  shall track motor vehicle rebate applications and payments.
         (b)  If the balance of funds available for motor vehicle
  rebates falls below 15 percent of the total allocated for the
  rebates during a fiscal year, the commission may suspend the
  rebates until the date the commission can certify that the balance
  available in the fund for rebates is an amount adequate to resume
  the rebates or the beginning of the next fiscal year, whichever is
  earlier.  If the commission suspends the rebates, the commission
  shall immediately notify all new motor vehicle dealers that the
  rebates have been suspended.
         (c)  The commission shall establish a toll-free telephone
  number available to motor vehicle dealers to call to verify that
  rebates are available.  The commission may provide for issuing
  verification numbers over the telephone.
         (d)  Reliance by a dealer on information provided by the
  commission is a complete defense to an action involving or based on
  eligibility of a vehicle for a rebate or availability of vehicles
  eligible for a rebate.
  ARTICLE 5. NEW TECHNOLOGY RESEARCH
  AND DEVELOPMENT PROGRAM
         SECTION 5.01.  Subsection (a), Section 386.252, Health and
  Safety Code, is 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, nine [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 the energy efficient
  appliance purchase incentive program created under Subchapter E,
  Chapter 2305, Government Code, [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 the commission [a 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, 3.5 [three] percent of the money in
  the fund, of which two percent is allocated to the commission and
  1.5 percent is allocated to the laboratory.
         SECTION 5.02.  Section 387.003, Health and Safety Code, is
  amended to read as follows:
         Sec. 387.003.  NEW TECHNOLOGY RESEARCH AND DEVELOPMENT
  PROGRAM.  (a)  The commission [A 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 one or more well-qualified nonprofit
  organizations or institutions of higher education for
  administration of this program [more than one entity and may limit
  the amount of each grant contract accordingly].
         (b)  Under the program, the commission shall provide grants
  to be used to support development of emissions-reducing
  technologies that may be used for projects eligible for awards
  under Chapters [Chapter] 386 and 391 and other new technologies
  that show promise for commercialization. The primary objective of
  this chapter is to promote the development of commercialization
  technologies to reduce emissions of oxides of nitrogen in Texas
  nonattainment areas [that will support projects that may be funded
  under Chapter 386 and this chapter, including advanced technologies
  such as fuel cells, catalysts, and fuel additives].
         (c)  If the commission contracts with one or more nonprofit
  organizations to [The board of directors of a nonprofit
  organization under contract with the commission to establish and]
  administer a new technology research and development program under
  [as provided by] this chapter, the board of directors of each
  organization 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 or an institution
  of higher education under this program.
         (e) [(f)]  A nonprofit organization or an institution of
  higher education shall submit to the commission for approval a
  budget for the disposition of funds granted under this program.
         (f) [(g)]  The commission shall limit the use of grants for
  administrative costs incurred by a nonprofit organization or an
  institution of higher education to an amount not to exceed 10
  percent of the total program funding [provided to the nonprofit
  organization under this program].
         (g) [(h)]  A nonprofit organization that receives grants
  from the commission under this program is subject to Chapters 551
  and 552, Government Code.
         SECTION 5.03.  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 or an institution of higher education
  described by Section 387.003(a) [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 5.04.  Subsections (a), (b), and (f), Section
  387.005, Health and Safety Code, are amended to read as follows:
         (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 reduce emissions from the existing stock
  of engines and vehicles targeted by the Texas emissions reduction
  plan, provided that the technologies do not significantly reduce
  the fuel economy of those engines and vehicles;
               (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)  advanced technologies for reducing oxides of
  nitrogen and other emissions from stationary sources; and
               (4)  field validation of innovative technologies for
  reducing emissions of oxides that require demonstration of
  viability for full commercial acceptance.
         (b)  The commission, directly or through a nonprofit
  organization or an institution of higher education described by
  Section 387.003(a) [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.
         (f)  Selection of grant recipients by a nonprofit
  organization or an institution of higher education described by
  Section 387.003(a) [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 or an institution of higher education if the
  commission or executive director of the commission does not consent
  to the grant or contract.
         SECTION 5.05.  Section 387.006, Health and Safety Code, is
  amended to read as follows:
         Sec. 387.006. EVIDENCE OF COMMERCIALIZATION POTENTIAL
  REQUIRED.  (a)  An application for a technology grant under this
  chapter must show reasonable [clear and compelling] evidence that:
               (1)  the proposed technology project has a substantial 
  [strong] commercialization plan and organization; and
               (2)  the technology proposed for funding[:
                     [(A)]  is likely to be offered for commercial sale
  in this state as soon as practicable [but no later than five years]
  after the date of the application for funding[; and
                     [(B)     once commercialized, will offer
  opportunities for projects eligible for funding under Chapter 386].
         (b)  The commission shall consider specifically, for each
  proposed technology project application:
               (1)  the projected potential for reduced emissions of
  oxides of nitrogen and the cost-effectiveness of the technology
  once it has been commercialized including the impact on fuel
  consumption and maintenance costs for retrofits and rebuilds;
               (2)  the potential for the technology to contribute
  significantly to air quality goals; and
               (3)  the strength of the commercialization plan.
  ARTICLE 6.  ENERGY EFFICIENT APPLIANCE PURCHASE INCENTIVE PROGRAM
         SECTION 6.01.  Subchapter E, Chapter 2305, Government Code,
  is amended by adding Section 2305.080 to read as follows:
         Sec. 2305.080.  ENERGY EFFICIENT APPLIANCE PURCHASE
  INCENTIVE PROGRAM.  (a)  The energy office is the supervising state
  agency for the energy-efficient appliance purchase incentive
  program.
         (b)  The energy office may accept gifts, grants, or other
  assistance for the purpose of implementation of this section.
         (c)  The energy office shall use funds provided for the
  program to provide financial incentives designed to assist persons
  in the purchase of equipment and appliances that meet or exceed the
  federal Energy Star standards designated by the United States
  Environmental Protection Agency and the United States Department of
  Energy.
         (d)  Programs approved under this section must include the
  retirement of materials and appliances that contribute to energy
  consumption or peak energy demand to ensure the reduction of energy
  consumption, energy demand, or peak loads, and associated emissions
  of air contaminants.
         (e)  Appliances funded through the program under this
  section may include:
               (1)  air conditioning units; and
               (2)  refrigeration units.
  ARTICLE 7.  BUILDING ENERGY CODES
         SECTION 7.01.  Subsection (a), Section 388.003, Health and
  Safety Code, is amended to read as follows:
         (a)  To achieve energy conservation in single-family
  residential construction, the energy efficiency provisions 
  [chapter] of the International Residential Code, as it existed on
  May 1, 2009 [2001], is adopted as the energy code in this state for
  single-family residential construction.
         SECTION 7.02.  Subsection (b), Section 388.003, Health and
  Safety Code, is amended to read as follows:
         (b)  To achieve energy conservation in all other
  residential, commercial, and industrial construction, the
  International Energy Conservation Code as it existed on May 1, 2009
  [2001], is adopted as the energy code for use in this state for all
  other residential, commercial, and industrial construction.
         SECTION 7.03.  Subsection (b-1), Section 388.003, Health and
  Safety Code, as added by Section 3.01, Chapter 262 (S.B. 12), Acts
  of the 80th Legislature, Regular Session, 2007, is amended 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 sector energy efficiency and air quality impact, on
  average, 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.
         SECTION 7.04.  Subsection (c), Section 388.003, Health and
  Safety Code, is amended to read as follows:
         (c)  A municipality shall establish procedures:
               (1)  for the administration and enforcement of the
  codes; and
               (2)  to ensure that code-certified inspectors or
  approved energy efficiency program verifiers shall perform
  inspections and enforce the code in the inspectors' jurisdictions.
         SECTION 7.05.  Subsection (d), Section 388.003, Health and
  Safety Code, is amended to read as follows:
         (d)  A municipality or county may establish procedures to
  adopt local amendments to the International Energy Conservation
  Code and the energy efficiency provisions [chapter] of the
  International Residential Code.
         SECTION 7.06.  Subsection (e), Section 388.003, Health and
  Safety Code, is amended to read as follows:
         (e)  Local amendments may not result in less stringent
  overall energy efficiency requirements in nonattainment areas and
  in affected counties than the energy efficiency chapter of the
  International Residential Code or International Energy
  Conservation Code. Local amendments must comply with the National
  Appliance Energy Conservation Act of 1987 (42 U.S.C. Sections
  6291-6309), as amended. The laboratory, at the request of a
  municipality or county, shall determine the relative impact of
  proposed local amendments to an energy code, including whether
  proposed amendments are substantially equal to or less stringent
  than the unamended code. [For the purpose of establishing uniform
  requirements throughout a region, and on request of a council of
  governments, a county, or a municipality, the laboratory may
  recommend a climatically appropriate modification or a climate zone
  designation for a county or group of counties that is different from
  the climate zone designation in the unamended code.] The
  laboratory shall:
               (1)  report its findings to the council, county, or
  municipality, including an estimate of any energy savings potential
  above the base code from local amendments; and
               (2)  annually submit a report to the commission:
                     (A)  identifying the municipalities and counties
  whose codes are more stringent than the unamended code, and whose
  codes are equally stringent or less stringent than the unamended
  code; and
                     (B)  quantifying energy savings and emissions
  reductions from this program.
         SECTION 7.07.  Subsection (f), Section 388.003, Health and
  Safety Code, is amended to read as follows:
         (f)  Each municipality, and each county that has established
  procedures under Subsection (d), shall periodically review and
  consider revisions made by the International Code Council to the
  International Energy Conservation Code and the energy efficiency
  chapter of the International Residential Code adopted after May 1,
  2009 [2001].
         SECTION 7.08.  The following provisions of the Health and
  Safety Code are repealed:
               (1)  Subsection (b-1), Section 388.003, as added by
  Section 11, Chapter 939 (H.B. 3693), Acts of the 80th Legislature,
  Regular Session, 2007; and
               (2)  Subsection (b-2), Section 388.003, as added by
  Section 3.01, Chapter 262 (S.B. 12), Acts of the 80th Legislature,
  Regular Session, 2007.
  ARTICLE 8.  IDLING OF MOTOR VEHICLES
         SECTION 8.01.  Section 382.0191, Health and Safety Code, is
  amended to read as follows:
         Sec. 382.0191.  IDLING OF MOTOR VEHICLE WHILE USING SLEEPER
  BERTH.  (a)  In this section, "idling" means allowing an engine to
  run while the motor vehicle is not engaged in forward or reverse
  motion.
         (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.]
  ARTICLE 9.  EXEMPTION OF THE WEIGHT OF CERTAIN IDLE REDUCTION
  SYSTEMS FOR COMMERCIAL VEHICLES FROM MAXIMUM WEIGHT RESTRICTIONS
         SECTION 9.01.  Section 621.001, Transportation Code, is
  amended to read as follows:
         Sec. 621.001.  DEFINITIONS. In this chapter:
               (1)  "Commercial motor vehicle" means a motor vehicle,
  other than a motorcycle, designed or used for:
                     (A)  the transportation of property; or
                     (B)  delivery purposes.
               (2)  "Commission" means the Texas Transportation
  Commission.
               (3)  "Department" means the Texas Department of
  Transportation.
               (4)  "Director" means the executive director of the
  Texas Department of Transportation.
               (5)  "Idle reduction system" means any system that
  provides heating, cooling, or electrical service to a commercial
  vehicle cab for the purpose of reducing vehicle idling.
               (6)  "Motor vehicle" means a vehicle that is
  self-propelled.
               (7) [(6)]  "Semitrailer" means a vehicle without motive
  power that is designed, or used with a motor vehicle, so that some
  of its weight and the weight of its load rests on or is carried by
  the motor vehicle.
               (8) [(7)]  "Trailer" means a vehicle without motive
  power that is:
                     (A)  designed or used to carry property or
  passengers on its own structure exclusively; and
                     (B)  drawn by a motor vehicle.
               (9) [(8)]  "Truck-tractor" means a motor vehicle
  designed or used primarily for drawing another vehicle:
                     (A)  that is not constructed to carry a load other
  than a part of the weight of the vehicle and load being drawn; or
                     (B)  that is engaged with a semitrailer in the
  transportation of automobiles or boats and that transports the
  automobiles or boats on part of the truck-tractor.
               (10) [(9)]  "Vehicle" means a mechanical device, other
  than a device moved by human power or used exclusively upon
  stationary rails or tracks, in, on, or by which a person or property
  can be transported on a public highway.  The term includes a motor
  vehicle, commercial motor vehicle, truck-tractor, trailer, or
  semitrailer but does not include manufactured housing as defined by
  Chapter 1201, Occupations Code.
               (11) [(10)]  "Single axle weight" means the total
  weight transmitted to the road by all wheels whose centers may be
  included between two parallel transverse vertical planes 40 inches
  apart, extending across the full width of the vehicle.
               (12) [(11)]  "Tandem axle weight" means the total
  weight transmitted to the road by two or more consecutive axles
  whose centers may be included between parallel transverse vertical
  planes spaced more than 40 inches and not more than 96 inches apart,
  extending across the full width of the vehicle.
               (13) [(12)]  "Port of entry" means a place designated
  by executive order of the president of the United States, by order
  of the United States secretary of the treasury, or by act of the
  United States Congress at which a customs officer is authorized to
  accept entries of merchandise, collect duties, and enforce customs
  and navigation laws. The term includes a publicly owned or
  privately owned international port of entry between this state and
  the United Mexican States.
         SECTION 9.02.  Section 621.101, Transportation Code, is
  amended by adding Subsection (d) to read as follows:
         (d)  Notwithstanding any provision of this section or any
  other section to the contrary, the maximum gross vehicle weight
  limit, bridge formula limit, and axle weight limit for any vehicle
  or combination of vehicles equipped with an idle reduction system
  may be increased by a quantity necessary to compensate for the
  additional weight of the idle reduction system as provided for in 23
  U.S.C. Section 127.  In no case shall the additional weight increase
  allowed by this subsection be greater than 400 pounds.  On request
  by an appropriate law enforcement officer, the vehicle operator
  shall provide proof that the idle reduction technology is fully
  functional at all times and that the gross weight increase is not
  used for any purpose other than for the use of an idle reduction
  system.
  ARTICLE 10.  APPLIANCE EFFICIENCY STANDARDS
         SECTION 10.01.  Subtitle C, Title 5, Health and Safety Code,
  is amended by adding Chapter 392 to read as follows:
  CHAPTER 392.  APPLIANCE EFFICIENCY STANDARDS
  SUBCHAPTER A.  GENERAL PROVISIONS
         Sec. 392.001.  DEFINITIONS.  In this chapter:
               (1)  "Bottle-type water dispenser" means a water
  dispenser that uses a bottle or reservoir as the source of potable
  water.
               (2)  "Commercial hot food holding cabinet" means a
  heated, fully enclosed compartment with one or more solid or glass
  doors that is designed to maintain the temperature of hot food that
  has been cooked in a separate appliance.
               (3)  "Compact audio product," also known as a mini,
  mid, micro, or shelf audio system, means an integrated audio system
  encased in a single housing that includes an amplifier and radio
  tuner with attached or separable speakers that can reproduce audio
  from magnetic tape, compact disc, DVD, or flash memory.
               (4)  "Digital versatile disc" or "DVD" means a
  laser-encoded plastic medium capable of storing a large amount of
  digital audio, video, or computer data.
               (5)  "DVD player" means a digital versatile disc player
  that:
                     (A)  is a commercially available electronic
  product encased in a single housing that includes an integral power
  supply; and
                     (B)  is designed to decode digitized video signals
  on a DVD.
               (6)  "DVD recorder" means a digital versatile disc
  recorder that:
                     (A)  is a commercially available electronic
  product encased in a single housing that includes an integral power
  supply; and
                     (B)  is designed for the production or recording
  of digitized video signals on a DVD.
               (7)  "Energy Star Program" means the United States
  Environmental Protection Agency's Energy Star Program.
               (8)  "Portable electric spa" means a factory-built
  electric spa or hot tub, supplied with equipment for heating and
  circulating water.
               (9)  "Residential pool pump" means a pump used to
  circulate and filter residential swimming pool water to maintain
  the water's clarity and sanitation.
               (10)  "Water dispenser" means a factory-made assembly
  that mechanically cools and heats potable water and that dispenses
  the cooled or heated water by integral or remote means.
         Sec. 392.002.  APPLICABILITY; EXEMPTIONS.  (a)  This
  chapter applies to the following new products sold, offered for
  sale, or installed in this state:
               (1)  bottle-type water dispensers;
               (2)  commercial hot food holding cabinets;
               (3)  compact audio products;
               (4)  DVD players and recorders;
               (5)  portable electric spas;
               (6)  residential pool pumps; and
               (7)  any other products that are designated by the
  comptroller in accordance with Section 392.102.
         (b)  This chapter does not apply to:
               (1)  a new product manufactured in this state and sold
  outside the state;
               (2)  a new product manufactured outside this state and
  sold at wholesale inside the state for final retail sale and
  installation outside the state;
               (3)  a product installed in a mobile manufactured home
  at the time of the home's construction;
               (4)  a product designed expressly for installation and
  use in a recreational vehicle;
               (5)  a commercial heated glass merchandising cabinet,
  dresser warmer, or cook-and-hold appliance for hot food;
               (6)  a compact audio product that:
                     (A)  can be independently powered by internal
  batteries;
                     (B)  has a powered external satellite antenna; or
                     (C)  can provide a video output signal; or
               (7)  a DVD recorder that has an electronic programming
  guide function that provides an interactive, onscreen menu of
  television listings and downloads program information from the
  vertical blanking interval of a regular television signal.
  [Sections 392.003-392.050 reserved for expansion]
  SUBCHAPTER B.  EFFICIENCY STANDARDS
         Sec. 392.051.  MINIMUM EFFICIENCY STANDARDS FOR CERTAIN
  APPLIANCES.  (a)  Not later than September 1, 2010, the
  comptroller, in consultation with the state energy conservation
  office, shall adopt rules establishing minimum efficiency
  standards for each type of new product described by Section
  392.002(a).
         (b)  If the United States Environmental Protection Agency or
  the United States Department of Energy adopt an Energy Star rating
  for any appliances covered by this chapter, the standard contained
  in this chapter is preempted by the federal requirements.
         Sec. 392.052.  NEW OR INCREASED EFFICIENCY STANDARDS.  
  (a)  The comptroller may adopt rules to establish increased
  efficiency standards for a product listed in Section 392.002(a) or
  to establish standards for a product not listed in that subsection.
         (b)  In considering new or increased standards, the
  comptroller, in consultation with the state energy conservation
  office, shall prescribe new or increased efficiency standards if
  the comptroller determines that the standards would:
               (1)  serve to promote energy conservation in this
  state; and
               (2)  be cost-effective for consumers who purchase and
  use the new product.
         Sec. 392.053.  EFFECTIVE DATE OF STANDARDS.  A standard
  established under this subchapter takes effect on the first
  anniversary of the date the rule establishing the standard is
  adopted.
         Sec. 392.054.  BOTTLE-TYPE WATER DISPENSERS.  A bottle-type
  water dispenser designed for dispensing both hot and cold water may
  not have standby energy consumption greater than 1.2 kilowatt-hours
  per day, as measured in accordance with the test criteria contained
  in version 1 of the "Energy Star Program Requirements for Bottled
  Water Coolers," except that Section D, "Timer Usage," of those test
  criteria may not be used to test units with an integral, automatic
  timer.
         Sec. 392.055.  COMMERCIAL HOT FOOD HOLDING CABINETS.  (a)  A
  commercial hot food holding cabinet must have a maximum idle energy
  rate of not greater than 40 watts per cubic foot of interior volume,
  as determined by the "idle energy rate-dry test" in ASTM F2140-01,
  "Standard Test Method for Performance of Hot Food Holding
  Cabinets," copyright 2007 ASTM International.
         (b)  Interior volume must be measured in accordance with the
  method shown in the "Energy Star Program Requirements for
  Commercial Hot Food Holding Cabinets" as in effect on August 15,
  2003.
         Sec. 392.056.  COMPACT AUDIO PRODUCTS.  A compact audio
  product may not use more than two watts in standby-passive mode for
  a product without a permanently illuminated clock display and four
  watts in standby-passive mode for a product with a permanently
  illuminated clock display, as measured in accordance with
  International Electrotechnical Commission (IEC) test method
  62087:2002-2003(E), "Methods of Measurement for the Power
  Consumption of Audio, Video, and Related Equipment."
         Sec. 392.057.  DVD PLAYERS OR RECORDERS.  A DVD player or
  recorder may not use more than three watts in standby-passive mode,
  as measured in accordance with International Electrotechnical
  Commission (IEC) test method 62087:2002-2003(E), "Methods of
  Measurement for the Power Consumption of Audio, Video, and Related
  Equipment."
         Sec. 392.058.  PORTABLE ELECTRIC SPAS.  A portable electric
  spa may not have a standby power greater than 5(v) watts where v
  equals the total volume in gallons.  Standby power must be measured
  in accordance with the test method for portable electric spas
  contained in Section 1604, Title 20, California Code of
  Regulations, as of December 2006.
         Sec. 392.059.  RESIDENTIAL POOL PUMP MOTORS.  (a)  A
  residential pool pump motor manufactured on or after January 1,
  2006, may not be a split-phase or capacitor start-induction run
  type motor.
         (b)(1)  A residential pool pump motor with a pool pump motor
  capacity of one horsepower or more that is manufactured on or after
  January 1, 2008, must be capable of operating at two or more speeds
  with a low speed having a rotation rate that is not more than
  one-half of the motor's maximum rotation rate. The pump motor must
  be operated with a pump control that has the capability of operating
  the pump at a minimum of two speeds.
               (2)  A residential pool pump motor with a pool pump
  motor capacity of one horsepower or more that is manufactured on or
  after January 1, 2010, and installed in existing residential pool
  pumps as a replacement residential pool pump motor must be capable
  of operating at two or more speeds with a low speed having a
  rotation rate that is no more than one-half of the motor's maximum
  rotation rate. The pump motor must be operated with a pump control
  that is capable of operating the pump at a minimum of two speeds.
         (c)  A pool pump motor control manufactured on or after
  January 1, 2008, that is sold for use with a pool pump capable of
  operating at two or more speeds must be able to operate the pool
  pump at a minimum of two speeds.  The control's default circulation
  speed setting may be no more than one-half of the motor's maximum
  rotation rate.  Any high-speed override capability must be for a
  temporary period not to exceed one 24-hour cycle without resetting
  to default settings.
         Sec. 392.060.  TRACKING, REPORTING, AND CLAIMING EMISSION
  REDUCTION CREDITS ASSOCIATED WITH ENERGY EFFICIENCY.  The Texas
  Commission on Environmental Quality shall work with the Energy
  Systems Laboratory at the Texas Engineering Experiment Station of
  The Texas A&M University System to ensure that the state receives
  full credit in the state implementation plan for air emission
  reductions achieved through energy efficiency.
  [Sections 392.061-392.100 reserved for expansion]
  SUBCHAPTER C.  IMPLEMENTATION AND MODIFICATION OF EFFICIENCY
  STANDARDS
         Sec. 392.101.  PRODUCT COMPLIANCE.  (a)  A new product
  described by Section 392.002(a) may not be sold or offered for sale
  in this state unless the efficiency of the new product meets or
  exceeds the applicable efficiency standards prescribed by the rules
  adopted under Subchapter B.
         (b)  On or after the first anniversary of the date for the
  sale or offering for sale of a new product subject to an efficiency
  standard adopted under this chapter, that product may not be
  installed for compensation in this state unless the efficiency of
  the product meets or exceeds the applicable efficiency standards
  prescribed by the rules adopted under Subchapter B.
         Sec. 392.102.  APPLICATION FOR WAIVER.  For purposes of this
  chapter, the comptroller may apply for a waiver of federal
  preemption in accordance with federal procedures under 42 U.S.C.
  Section 6297(d) to authorize state efficiency standards for a
  product regulated by the federal government.
  [Sections 392.103-392.150 reserved for expansion]
  SUBCHAPTER D.  TESTING, CERTIFICATION, LABELING, AND ENFORCEMENT
         Sec. 392.151.  PRODUCT TESTING.  (a)  The manufacturer of a
  new product subject to an efficiency standard adopted under this
  chapter shall test samples of the product in accordance with the
  test procedures adopted under this chapter.
         (b)  The comptroller, in consultation with the state energy
  conservation office, by rule shall adopt test procedures for
  determining a product's energy efficiency if Subchapter B does not
  provide for the procedures. The comptroller shall adopt test
  methods approved by the United States Department of Energy or, in
  the absence of those test methods, other appropriate nationally
  recognized test methods.
         (c)  The comptroller may adopt revised test procedures when
  new versions of test procedures become available.
         Sec. 392.152.  PRODUCT CERTIFICATION.  (a)  Except as
  provided by Subsection (c), the manufacturer of a new product
  subject to an efficiency standard adopted under this chapter shall
  certify to the comptroller that the product is in compliance with
  that standard according to test results.
         (b)  The comptroller shall adopt rules governing the
  certification of products under this section and shall coordinate
  certification by this state with the certification programs of
  other states and federal agencies with similar standards.
         (c)  Subsection (a) does not apply to a manufacturer of
  single-voltage external AC to DC power supplies, walk-in
  refrigerators, or walk-in freezers.
         Sec. 392.153.  PRODUCT LABELING.  (a)  The manufacturer of a
  new product subject to an efficiency standard adopted under this
  chapter shall identify each product offered for sale or
  installation in this state as being in compliance with this chapter
  by means of a mark, label, or tag on the product and packaging at the
  time of sale or installation.
         (b)  The comptroller shall adopt rules governing the
  identification of products and packaging under this section. The
  rules must to the greatest practical extent be coordinated with the
  labeling programs of other states and federal agencies with
  equivalent efficiency standards. The comptroller shall allow the
  use of existing marks, labels, or tags that connote compliance with
  the efficiency requirements of this chapter.
         Sec. 392.154.  COMPTROLLER TESTING FOR EFFICIENCY STANDARDS
  COMPLIANCE.  (a)  The comptroller may test products subject to an
  efficiency standard adopted under this chapter for compliance with
  the applicable efficiency standards. If a product tested is found
  not to be in compliance with the standards, the comptroller shall
  impose against the manufacturer of the product an assessment in an
  amount sufficient to recover the costs of purchasing and testing
  the product.
         (b)  The comptroller shall make information available to the
  public on any product found under this section not to be in
  compliance with the standards.
         Sec. 392.155.  INSPECTIONS.  The comptroller may have
  periodic inspections conducted of a distributor or retailer of new
  products covered by Section 392.002 subject to an efficiency
  standard adopted under this chapter to determine compliance with
  this chapter. The inspections must be conducted at reasonable and
  convenient hours. Notice must be given before an inspection may be
  conducted.
         Sec. 392.156.  COMPLAINTS.  The comptroller shall
  investigate a complaint received concerning a violation of this
  chapter and shall report the results of the investigation to the
  attorney general.
         Sec. 392.157.  ATTORNEY GENERAL ENFORCEMENT.  The attorney
  general may institute proceedings to enforce this chapter.
         Sec. 392.158.  VIOLATIONS AND PENALTIES.  (a)  The
  comptroller shall issue a warning to a person for the person's first
  violation of this chapter.
         (b)  A person's second and subsequent violations are subject
  to a civil penalty of not more than $250.
         (c)  Each violation constitutes a separate violation, and
  each day that a violation continues constitutes a separate
  violation.
         (d)  A penalty assessed under this section is in addition to
  costs assessed under Section 392.154.
         Sec. 392.159.  RULES FOR IMPLEMENTATION AND ENFORCEMENT.  
  The comptroller may adopt additional rules necessary to ensure the
  proper implementation and enforcement of this chapter.
         SECTION 10.02.  (a)  The efficiency standards prescribed by
  rules adopted under Subchapter B, Chapter 392, Health and Safety
  Code, as added by this article, apply only to the sale or offer of
  sale of a new product to which that chapter applies that occurs on
  or after January 1, 2011.
         (b)  Notwithstanding Subsection (a) of this section, a new
  residential pool pump that does not meet the efficiency standards
  contained in Section 392.059, Health and Safety Code, as added by
  this article, may be sold in this state through December 31, 2011.
  ARTICLE 11.  GREENHOUSE GAS REGISTRY
         SECTION 11.01.  Chapter 382, Health and Safety Code, is
  amended by adding Subchapter J to read as follows:
  SUBCHAPTER J.  GREENHOUSE GAS REGISTRY
         Sec. 382.501.  GREENHOUSE GAS REGISTRY.  (a)  The commission
  along with the Railroad Commission of Texas and the Public Utility
  Commission of Texas shall jointly participate in the federal
  government process for developing federal greenhouse gas reporting
  requirements and the federal greenhouse gas registry requirements.
         (b)  The commission shall adopt rules to comply with any
  federal greenhouse gas reporting requirements adopted by the
  federal government for private and public facilities eligible to
  participate in the federal greenhouse gas registry. In adopting
  the rules, the commission shall adopt and incorporate by reference
  rules implementing the federal reporting requirements and the
  federal registry.
  ARTICLE 12.  PERMITTING
         SECTION 12.01.  Section 382.0518, Health and Safety Code, is
  amended by adding Subsection (c-1) to read as follows:
         (c-1)  In considering the issuance of a permit for a new
  electric generating facility, the commission shall analyze and
  consider:
               (1)  the cumulative effects of the facility's expected
  emissions together with the cumulative effects of the authorized
  emissions from all sources of pollution permitted under this
  section, as well as all sources of pollution from electric
  generating facility applications determined to be technically
  complete, that are located within a radius of impact specified by
  commission rule, or 100 miles, whichever is greater;
               (2)  whether the emissions from the facility will cause
  an area to be designated a nonattainment area; and
               (3)  whether the emissions from the facility will
  negatively affect compliance with the state implementation plan.
         SECTION 12.02.  Subsections (a) and (d), Section 382.055,
  Health and Safety Code, are amended to read as follows:
         (a)  A preconstruction permit issued or renewed by the
  commission is subject to review to determine whether the authority
  to operate should be renewed according to the following schedule:
               (1)  a preconstruction permit issued before December 1,
  1991, is subject to review not later than 10 [15] years after the
  date of the last renewal before January 1, 2010 [issuance];
               (2)  a preconstruction permit issued on or after
  December 1, 1991, is subject to review:
                     (A)  every 10 years after the date of issuance; or
                     (B)  on the filing of an application for an
  amendment to the permit, if:
                           (i)  the applicant is subject to Section
  382.056;
                           (ii)  the application is filed with the
  commission not more than three years before the date the permit is
  scheduled to expire; and
                           (iii)  the applicant does not object to
  having the permit subjected to review at that time; and
               (3)  for cause, a preconstruction permit issued on or
  after December 1, 1991, for a facility at a nonfederal source may
  contain a provision requiring the permit to be renewed at a period
  of between five and 10 years.
         (d)  In determining whether and under which conditions a
  preconstruction permit should be renewed, the commission shall
  consider, at a minimum:
               (1)  the performance of the owner or operator of the
  facility according to the method developed by the commission under
  Section 5.754, Water Code; [and]
               (2)  the condition and effectiveness of existing
  emission control equipment and practices;
               (3)  whether construction of the facility has been
  completed;
               (4)  whether the facility has been commercially
  operated; and
               (5)  whether the facility has ceased operation for the
  preceding five years or more.
  ARTICLE 13.  EFFECTIVE DATE
         SECTION 13.01.  This Act takes effect September 1, 2009.