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  S.B. No. 527
 
 
 
 
AN ACT
  relating to projects funded through the Texas emissions reduction
  plan.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  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 air quality research support [new technology
  research and development] program established under Chapter 387;
               (4)  the clean school bus program established under
  Chapter 390; [and]
               (5)  the new technology implementation grant program
  established under Chapter 391;
               (6)  the regional air monitoring program established
  under Section 386.252(a)(5);
               (7)  a health effects study as provided by Section
  386.252(a)(7);
               (8)  air quality planning activities as provided by
  Section 386.252(a)(8); and
               (9)  a contract with the Energy Systems Laboratory at
  the Texas Engineering Experiment Station for computation of
  creditable statewide emissions reductions as provided by Section
  386.252(a)(9).
         SECTION 2.  Subsection (a), Section 386.108, Health and
  Safety Code, is amended to read as follows:
         (a)  The commission shall provide funding under Section
  386.252(a) [386.252(a)(1)] for infrastructure projects.
         SECTION 3.  Subsection (a), Section 386.252, Health and
  Safety Code, as amended by Chapters 1125 (H.B. 1796) and 1232 (S.B.
  1759), Acts of the 81st Legislature, Regular Session, 2009, is
  reenacted and amended to read as follows:
         (a)  Money in the fund may be used only to implement and
  administer programs established under the plan and the total
  appropriation shall be allocated as follows:
               (1)  [for the diesel emissions reduction incentive
  program, 87.5 percent of the money in the fund, of which:
                     [(A)] not more than four percent may be used for
  the clean school bus program;
               (2)  [(B)] not more than 10 percent may be used for
  on-road diesel purchase or lease incentives; [and]
               (3)  [(C)] a specified amount may be used for the new
  technology implementation grant program, from which a defined
  amount may be set aside for electricity storage projects related to
  renewable energy;
               (4)  five percent shall be used for the clean fleet
  program;
               (5)  not more than $7 million shall be allocated in 2012
  and 2013 and not more than $3 million shall be allocated in 2014 and
  in subsequent years to fund a regional air monitoring program in
  commission Regions 3 and 4 to be implemented under the commission's
  oversight, including direction regarding the type, number,
  location, and operation of, and data validation practices for,
  monitors funded by the program through a regional nonprofit entity
  located in North Texas having representation from counties,
  municipalities, higher education institutions, and private sector
  interests across the area;
               (6)  a specified amount is to be allocated each year to
  support research related to air quality as provided by Chapter 387;
               (7)  [(2) for the new technology research and
  development program, nine percent of the money in the fund, of
  which:
                     [(A)] up to $200,000 is allocated for a health
  effects study;
               (8)  up to [(B)] $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;
               (9)  not more than $216,000 is allocated to the
  commission to [(C)     not less than 20 percent is to be allocated each
  year to support research related to air quality as provided by
  Section 387.010; and
                     [(D)     the balance is allocated each year to the
  commission to be used to:
                           [(i)     implement and administer the new
  technology research and development program 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
                           [(ii)]  contract with the Energy Systems
  Laboratory at the Texas Engineering Experiment Station [for
  $216,000] annually for the development and annual computation of
  creditable statewide emissions reductions obtained through wind
  and other renewable energy resources for the state implementation
  plan; [and]
               (10)  not more than $3,400,000 [(3) two percent] is
  allocated to the commission [and 1.5 percent is allocated to the
  laboratory] for administrative costs incurred by the commission;
               (11)  1.5 percent of the money in the fund is allocated
  for administrative costs incurred by [and] the laboratory; and
               (12)  the balance is allocated to the commission for
  the diesel emissions reduction incentive program.
         SECTION 4.  The heading to Chapter 387, Health and Safety
  Code, is amended to read as follows:
  CHAPTER 387. AIR QUALITY [NEW TECHNOLOGY] RESEARCH SUPPORT [AND
  DEVELOPMENT] PROGRAM
         SECTION 5.  Subdivision (2), Section 387.001, Health and
  Safety Code, is amended to read as follows:
               (2)  "Program" means the air quality research support
  [new technology research and development] program established
  under this chapter.
         SECTION 6.  Section 387.010, Health and Safety Code, is
  redesignated as Section 387.002, Health and Safety Code, and is
  amended to read as follows:
         Sec. 387.002  [387.010]. AIR QUALITY RESEARCH SUPPORT
  PROGRAM.  (a)  The commission shall contract with a nonprofit
  organization or institution of higher education to establish and
  administer a program to support research related to air quality.
         (b)  The board of directors of a nonprofit organization
  establishing and administering the research program related to air
  quality under this chapter [section] may not have more than 11
  members, must include two persons with 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 with 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.
         (c)  The commission shall provide oversight as appropriate
  for grants provided under the program established under this
  chapter [section].
         (d)  A nonprofit organization or institution of higher
  education shall submit to the commission for approval a budget for
  the disposition of funds granted under the program established
  under this chapter [section].
         (e)  A nonprofit organization or institution of higher
  education shall be reimbursed for costs incurred in establishing
  and administering the research program related to air quality under
  this chapter [section]. Reimbursable administrative costs of a
  nonprofit organization or institution of higher education may not
  exceed 10 percent of the program budget.
         (f)  A nonprofit organization that receives grants from the
  commission under this chapter [section] is subject to Chapters 551
  and 552, Government Code.
         SECTION 7.  Subsection (h), Section 447.011, Government
  Code, is amended to read as follows:
         (h)  The Texas Commission on Environmental Quality shall
  obtain information on any fuel-saving technology that appears to
  reduce particulate matter, oxides of nitrogen, carbon monoxide, or
  hydrocarbon emissions. [The Texas Commission on Environmental
  Quality may use this information to fund the United States
  Environmental Protection Agency verification of a technology in
  accordance with Section 387.003, Health and Safety Code.]
         SECTION 8.  Sections 387.003, 387.004, 387.005, 387.006, and
  387.007, Health and Safety Code, are repealed.
         SECTION 9.  A grant issued under Chapter 387, Health and
  Safety Code, before the effective date of this Act is governed by
  Chapter 387, Health and Safety Code, as it existed immediately
  before the effective date of this Act, and that law is continued in
  effect for that purpose.
         SECTION 10.  To the extent of any conflict, this Act prevails
  over another Act of the 82nd Legislature, Regular Session, 2011,
  relating to nonsubstantive additions to and corrections in enacted
  codes.
         SECTION 11.  This Act takes effect September 1, 2011.
 
 
 
 
 
  ______________________________ ______________________________
     President of the Senate Speaker of the House     
 
         I hereby certify that S.B. No. 527 passed the Senate on
  March 17, 2011, by the following vote:  Yeas 31, Nays 0.
 
 
  ______________________________
  Secretary of the Senate    
 
         I hereby certify that S.B. No. 527 passed the House on
  April 21, 2011, by the following vote:  Yeas 148, Nays 0, one
  present not voting.
 
 
  ______________________________
  Chief Clerk of the House   
 
 
 
  Approved:
 
  ______________________________ 
              Date
 
 
  ______________________________ 
            Governor