Bill Text: TX HB3582 | 2013-2014 | 83rd Legislature | Introduced


Bill Title: Relating to emission and water reduction in permitted generation facilities.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2013-04-16 - Left pending in committee [HB3582 Detail]

Download: Texas-2013-HB3582-Introduced.html
 
 
  By: Strama H.B. No. 3582
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to emission and water reduction in permitted generation
  facilities.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 382.003, Health and Safety Code, is
  amended by adding (1-b) to read as follows:
         (1-b)  "Emission and Water Reduction Project" means a
  project in which a generation facility has a valid permit under this
  chapter and which applies for a modified permit under this chapter
  before January 1, 2020, in order to achieve:
                     (A)  a 50% reduction in the annual average
  emission rate for nitrogen oxides;
                     (B)  a 25% reduction in the rate of water
  consumption; and
                     (C)  to maintain or exceed the previous rated
  capacity of the facility.
         SECTION 2.  The Health and Safety Code is amended by adding
  Chapter 395 to read as follows:
  CHAPTER 395.  EMISSION AND WATER REDUCTION INITIATIVE FOR
  PERMITTED GENERATION FACILITIES
  SUBCHAPTER A. GENERAL PROVISIONS
         Sec. 395.001.  DEFINITIONS. In this chapter:
               (1)  "Best available control technology" has the
  meaning assigned by Section 169 of the federal Clean Air Act (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 in effect at the time of submission of a new
  technology implementation grant application.
               (6)  "Stationary source" has the meaning assigned by
  Section 302 of the federal Clean Air Act (42 U.S.C. Section
  7602(z)).
         Sec. 395.002.  EMISSION AND WATER REDUCTION INITIATIVE.  (a)
  The commission shall establish and administer an emission and water
  reduction initiative to assist with the re-powering of electric
  generation facilities as a means of reducing emissions and water
  consumption in this state. Under the initiative, the commission
  shall provide loan guarantees or other financial incentives for
  eligible projects to facilitate the re-powering and modification
  needed to reduce emissions and water consumption.
         (b)  Emission and Water Reduction Projects as defined by
  Section 382.003 may be considered eligible projects.
         Sec. 395.003.  GUIDELINES AND CRITERIA. (a) The commission
  shall adopt loan guaranty guidelines and criteria consistent with
  the requirements of this chapter.
         (b)  The guidelines must include:
               (1)  protocols to compute projected emissions and water
  reductions;
               (2)  safeguards to ensure that the projects funded
  result in emissions reductions not otherwise required by state or
  federal law;
               (3)  rules to establish loan guarantees not to exceed
  85% of the direct cost of the project with the total cost of
  installed capacity not to exceed $1000 per KW; and
               (4)  rules to ensure the loan guaranty will expire upon
  the earlier of:
                     (A)  three years after the Public Utility
  Commission implements a forward capacity market; or
                     (B)  the loan to value of the clean energy project
  falls at or below 50%; or
                     (C)  18 years from the date of approval.
         (c)  The commission may propose revisions to the guidelines
  and criteria adopted under this section as necessary to improve the
  ability of the initiative to achieve the its goals.
         (d)  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. 395.004.  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.
  SUBCHAPTER B.  INITIATIVE APPLICATIONS AND REVIEW
         Sec. 395.101.  APPLICATION FOR LOAN GUARANTY.  (a) The owner
  of a facility located in this state may apply for a loan guaranty
  under the initiative established under Section 395.002. To improve
  the ability of the initiative to achieve its goals, the commission
  may adopt guidelines to allow a person other than the owner to apply
  for and receive a loan guaranty.
         (b)  An application for a loan guaranty 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 the commission's eligibility
  requirements, including a statement of the amounts of any other
  public financial assistance the project will receive; and
               (3)  other information the commission may require.
         Sec. 395.102.  LOAN GUARANTY APPLICATION REVIEW PROCEDURES.  
  (a) The commission shall review an application for a loan guaranty
  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 the information
  missing from the application. The commission shall evaluate the
  completed application according to the guidelines and criteria
  adopted under Section 395.003.
         (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 a loan guaranty application for
  a project that does not meet the applicable criteria or that the
  commission determines is not made in good faith, is not credible, or
  is not in compliance with this chapter or the goals of this chapter.
         (d)  Subject to the availability of funding, the commission
  shall award a loan guaranty under this chapter in conjunction with
  the execution of a contract that obligates the commission to make
  the loan guaranty and the recipient to perform the actions
  described by the recipient's application.
         Sec. 395.103.  EVIDENCE OF EMISSIONS REDUCTION POTENTIAL
  REQUIRED.  (a) An application for a emissions and water reduction
  project under this chapter must show reasonable evidence that the
  proposed project is capable of providing a significant reduction in
  emissions and water consumption.
         (b)  The commission shall consider specifically, for each
  application:
               (1)  the projected potential for reduced emissions; and
               (2)  the projected potential for reduced water
  consumption
         Sec. 395.104.  REPORTING REQUIREMENTS.  The commission
  annually shall prepare a report that summarizes the applications
  received and loan guarantees awarded in the preceding year.
  SUBCHAPTER C. PROJECT REQUIREMENTS
         Sec. 391.201.  ELIGIBILITY OF PROJECTS FOR LOAN GUARANTEES.  
  (a) The commission shall establish criteria for prioritizing
  projects eligible to receive loan guarantees 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 loan guarantee under the initiative
  established under Section 391.002.
         (d)  An emissions and water reduction project must document,
  in a manner acceptable to the commission, an achieved reduction
  from the baseline emissions adopted by the commission for the
  relevant facility or stationary source.
         (e)  If a baseline emissions standard does not exist for a
  facility, the commission, for purposes of this subchapter, shall
  adopt an appropriate baseline emissions level for comparison
  purposes.
         (f)  An emissions and water reduction project must document,
  in a manner acceptable to the commission, an achieved reduction in
  water consumption.  Planned water usage for proposed projects must
  be consistent with the state water plan.
         (g)  Upon completion of the project, the installed capacity
  must meet or exceed the previous rated capacity of the facility.
         Sec. 395.203.  DETERMINATION OF LOAN GUARANTY AMOUNT AND
  DURATION OF LOAN GUARANTY.
         (a)  The commission may not award a loan guaranty that, net
  of taxes, exceeds 85% of the project cost with the total project
  cost not to exceed $1000 per KW of installed capacity.
         (b)  The loan guaranty will expire upon the earlier of :
               (1)  18 years from the date of approval;
               (2)  three years after the Public Utility Commission
  implements a forward capacity market; or
               (3)  at any such time that the loan to value of the
  emission and water reduction project falls at or below 50%.
         Sec. 395.205.  PREFERENCES.  (a) On awarding grants under
  this chapter the commission shall give preference to projects that
  are located in non-attainment or near non-attainment areas of
  Texas.
  SUBCHAPTER D. FUNDING; EXPIRATION
         Sec. 395.302.  COMPTROLLER REVIEW OF USE OF GRANT FUNDS.  (a)
  The comptroller annually shall conduct a review of each recipient
  of a emission and water reduction project loan guaranty under this
  chapter to ensure that the recipient's use of the loan complies with
  state law and the terms of the award.
         (b)  To assist with a review under this section, the
  commission shall provide the comptroller with all monitoring
  reports received from loan guaranty recipients and any other
  documentation requested by the comptroller.
         (c)  On a finding of any misuse of loan money or other
  noncompliance with grant requirements, the comptroller shall
  provide a report to the commission with recommendations for
  subsequent action.
         (d)  The comptroller shall notify the Commission and the
  applicant when the loan to value of the emission and water reduction
  project falls at or below %50 and the loan guarantee is withdrawn.
         (d)  The comptroller may adopt rules to implement this
  section.
         Sec. 391.304.  EXPIRATION. This chapter expires August 31,
  2019.
         SECTION 3:  This Act takes effect immediately if it receives
  a vote of two-thirds of all the members elected to each house, as
  provided by Section 39, Article III, Texas Constitution. If this
  Act does not receive the vote necessary for immediate effect, this
  Act takes effect September 1, 2013.
feedback