Part 1.
TEXAS NATURAL RESOURCE CONVERSATION COMMISSION
Chapter 101.
GENERAL AIR QUALITY RULES
Subchapter A. GENERAL RULES
30 TAC §101.27
The Texas Natural Resource Conservation Commission (commission)
proposes amendments to §101.27, Emissions Fees. The commission proposes
these amendments to Chapter 101, General Air Quality Rules; Subchapter A,
General Rules; and corresponding revisions to the state implementation plan
in order to implement Senate Bill 1 (General Appropriations Act), Article
VI (Natural Resources), Rider 30 (Appropriation: Operating Permit Fees) as
passed by the 77th Texas Legislature, 2001 (SB 1, Article VI, Rider 30).
BACKGROUND AND SUMMARY OF THE FACTUAL BASIS FOR THE PROPOSED RULES
The commission collects operating permit fees (emissions fees) from sources
that are subject to the permitting requirements of Title IV or V of the Federal
Clean Air Act Amendments of 1990 as required by Texas Health and Safety Code,
Texas Clean Air Act (TCAA), §382.0621, Operating Permit Fee. The current
rule language in §101.27 only includes emissions during normal operations
in the calculation of the total emissions from an account upon which the fee
is based. Upset and maintenance emissions are not currently included in the
basis for calculating the fee due. Senate Bill 1, Article VI, Rider 30 requires
that these upset and maintenance emissions be included in the total emissions
for each account. Funds generated by the inclusion of upset and maintenance
emissions shall be used for enforcement and monitoring activities for air
quality permitting, air quality assessment and planning, and enforcement and
compliance support.
SECTION BY SECTION DISCUSSION
Section 101.27(c), concerning basis for fees, currently states that the
fee applies to emissions during normal operations. These proposed amendments
state that emissions during all operational conditions will be included in
the fee basis. These proposed amendments also specifically state that all
emission events and all emissions from them, including upset, maintenance,
start-up, and shutdown conditions are to be included in the fee basis. The
intent of these proposed amendments is to include the total of both reportable
and non-reportable quantities under commission requirements related to upset
and maintenance conditions.
The proposed amendments also add a sentence to clarify that the emissions
fee basis is never less than the actual emissions at an account during the
basis year.
The proposed amendments reformat the fee table, and delete the definition
of "normal operations" which is no longer needed.
FISCAL NOTE: COSTS TO STATE AND LOCAL GOVERNMENT
John Davis, Technical Specialist with Strategic Planning and Appropriations,
determined that for each year of the first five-year period the proposed amendments
are in effect, the commission will experience an increase in revenues estimated
to be $1.1 million each year in air emissions fees. These revenues are dependent
on the magnitude and number of upset and maintenance emissions events by facilities
paying annual operating permit fees. There will be fiscal implications which
are not anticipated to be significant, for units of state and local government
which pay annual operating permit fees to the commission, as a result of administration
or enforcement of the proposed amendments. The proposed amendments will require
accounts that remit air emissions fees to the commission to pay emissions
fees based on emissions resulting from upset, maintenance, start-up, and shutdown
events, as well as allowable levels and/or actual emissions at the account.
Units of state and local government that experience these emission events
are anticipated to pay an additional $500 to $1,000 per account annually to
comply with the proposed amendments.
The proposed amendments are intended to implement SB 1, Article VI, Rider
30. This rider requires the commission to include upset and maintenance emissions
when calculating the emissions fees. Emissions fees are currently determined
by multiplying the current rate ($26 per emission ton) by the annual amount
of emissions at an account. The fee basis has a maximum of 4,000 tons per
regulated pollutant. The commission currently includes only emissions resulting
from normal operations, not upset, maintenance, start-up, or shutdown emissions
in the calculation of the fee basis. The inclusion of upset and maintenance
emissions into the calculation will increase the emissions fees for those
accounts that experience these emission events.
The proposed amendments will affect new or existing accounts that are subject
to the current rule which experience these emissions events. The agency estimates
that there are approximately 1,800 accounts subject to the current rule. Of
these, the agency estimates that less than 5% of the total number of accounts
are owned and operated by units of state and local government. Examples of
state and local government sites that could be affected by the proposed amendments
include: landfills, boilers, and power plants at universities or municipalities.
Only accounts that experience upset, maintenance, start-up, or shutdown
emissions will be required to pay additional fees. Based on analysis of 1998
emissions inventory data, the commission estimates there are less than ten
accounts that are owned by units of state and local governments that will
be impacted each year and required to pay the additional $500 - $1,000 to
comply with the proposed amendments.
The commission's costs to enforce and monitor the inclusion of upset, maintenance,
start-up, and shutdown emissions into an account's fee basis will be included
within the estimated annual $1.1 million additional revenues received from
emissions fees.
PUBLIC BENEFITS AND COSTS
Mr. Davis also determined for each of the first five years the proposed
amendments are in effect, the public benefit anticipated as a result of implementing
the proposed amendments will be a potential decrease in emissions from the
increased fees that may result from improved maintenance activities.
The proposed amendments are intended to implement SB 1, Article VI, Rider
30 which requires the commission to include upset and maintenance emissions
when calculating emissions fees. Emissions fees are currently determined by
multiplying the current rate ($26 per emission ton) by the annual amount of
emissions from an account. The fee basis has a maximum of 4,000 tons per regulated
pollutant. The commission currently includes only emissions resulting from
normal operations, not upset, maintenance, start-up, or shutdown emissions
in the calculation of the fee basis. The inclusion of upset and maintenance
emissions into the calculation will increase the emissions fees for those
accounts that experience these emission events.
The proposed amendments will affect new or existing accounts which experience
these emissions. The commission estimates that there are approximately 1,700
nongovernmentally owned and operated accounts that are required to pay emissions
fees. Examples of accounts affected by the proposed amendments include: oil
refineries, chemical plants, large oil and gas operations, and steam electric
power plants.
Only accounts that experience upset, maintenance, start-up, or shutdown
emissions will be required to pay additional fees beyond what is currently
owed to the commission. The commission estimates that the majority of accounts
that experience upset, maintenance, start-up, or shutdown emissions will pay
additional fees averaging between $3,000 and $5,000 annually per account to
comply with the proposed amendments. There will be accounts, however, that
may pay over $50,000 annually per account to comply with the amendments. These
accounts include large oil refineries and electric generating facilities.
SMALL BUSINESS AND MICRO BUSINESS ASSESSMENT
There will be adverse economic effects, which are not anticipated to be
significant, to small or micro-business as a result of the implementation
of the proposed amendments. The proposed amendments require accounts that
remit air emissions fees to the commission to include in the basis for the
fee emissions from upset, maintenance, start-up, and shutdown conditions in
addition to emissions from normal operations.
The proposed amendments will affect new or existing accounts which experience
these emissions. The commission estimates that there are approximately 1,700
nongovernmentally owned and operated accounts that are required to pay emissions
fees, some of which will be small or micro-businesses. Examples of small and
micro-businesses that could be affected by the proposed amendments include:
cotton seed oil mills; landfills; furniture manufacturing; asphalt batch plant
operators; and small manufacturers with coatings operations.
The commission estimates that although there are small or micro-businesses
affected by the proposed amendments, very few are likely to have upset, maintenance,
start-up, or shutdown emissions. Only accounts that experience upset or maintenance
emissions will be required to pay additional fees beyond what is currently
owed to the commission. The commission estimates that less than 20 small and
micro-businesses will experience these emissions each year. They may pay additional
fees less than $100 annually on average to comply with the amendments.
The following is an analysis of the cost per employee for small or micro-businesses
affected by the proposed amendments. Small and micro-business are defined
as having fewer than 100 or 20 employees respectively. A small business that
reports annual upset, maintenance, start-up, or shutdown emissions totaling
five tons would incur additional costs of approximately $130 or $1.30 per
employee. A micro-business that emits the same amount of upset, maintenance,
start-up, or shutdown emissions would incur additional costs of approximately
$130 or $6.50 per employee. The overall cost per employee will vary depending
on the annual amount of upset, maintenance, start-up, or shutdown emissions,
and the number of persons employed by an affected business. The cost per ton
would be the same for larger businesses affected by the proposed rulemaking.
DRAFT REGULATORY IMPACT ANALYSIS DETERMINATION
The commission reviewed the proposed rulemaking considering the regulatory
analysis requirements of Texas Government Code, §2001.0225, and determined
that the proposed amendments do not meet the definition of a "major environmental
rule" as defined in that statute. A "major environmental rule" is a rule that:
1) has the specific intent to protect the environment or reduce risks to human
health from environmental exposure; and 2) may adversely affect in a material
way the economy, a sector of the economy, productivity, competition, jobs,
the environment, or the public health and safety of the state or a sector
of the state. While the proposed amendments are not specifically intended
to protect the environment or reduce risks to human health from environmental
exposure, there could be a benefit to the environment from both how the fees
are utilized (for enforcement monitoring activities) and some deterrent effect
for companies who desire to avoid increased fees, where possible. The intent
of the proposed amendments is to include the total of both reportable and
non-reportable quantities under commission requirements related to upset and
maintenance conditions for the purpose of calculating the total emission fees
owed to the commission. While this may result in a larger amount of fees collected
by the commission, fee collection does not provide protection for the environment
or reduce risks to human health from environmental exposure. The commission
does not believe that these rule amendments will adversely affect in a material
way the economy, a sector of the economy, productivity, competition, jobs,
the environment, or the public health and safety of the state or a sector
of the state, because the proposed amendments do not change the existing provision
"capping" the total fees owed to the agency.
Additionally, even if the proposed amendments did meet the definition of
a major environmental rule, the requirement to conduct a regulatory analysis
would not apply. A regulatory analysis is only required if an agency adopts
a major environmental rule: 1) which exceeds a standard set by federal law,
unless the rule is specifically required by state law; 2) which exceeds an
express requirement of state law, unless the rule is specifically required
by federal law; 3) which exceeds a requirement of a delegation agreement or
contract between the state and an agency or representative of the federal
government to implement a state and federal program; or 4) solely under the
general powers of the agency instead of under a specific state law.
Title V of the Federal Clean Air Amendments of 1990 contains the statutory
requirements for the federal operating permit program, which these fees are
collected to support. The commission collects emissions fees under the specific
authority in the TCAA, §382.0621, Operating Permit Fee. Senate Bill 1,
Article VI, Rider 30 requires that upset and maintenance emissions be included
in the total emissions for each account. The requirements of the federal operating
permit program, 40 Code of Federal Regulations (CFR) Part 70, for which the
commission has been granted interim approval, do not contain any requirement
prohibiting the collection of fees for upset and maintenance emissions. Therefore,
the proposed amendments do not exceed a standard set by federal law; do not
exceed an express requirement of state law; do not exceed a requirement of
a delegation agreement or contract between the state and an agency or representative
of the federal government to implement a state and federal program; and are
not proposed solely under the general powers of the agency instead of under
a specific state law.
The commission invites public comment on the draft regulatory impact analysis
determination.
TAKINGS IMPACT ASSESSMENT
The commission reviewed the proposed amendments considering the requirements
of Texas Government Code, Chapter 2007. The following assessment is provided
in compliance with the requirements of Texas Government Code, Chapter 2007.
The intent of the proposed amendments is to include the total emissions of
both reportable and non-reportable quantities under commission requirements
related to upset and maintenance conditions for the purpose of calculating
the total emission fees owed to the commission. The expansion of the fees
to include upset and maintenance conditions will meet the express requirement
contained in SB 1, Article VI, Rider 30. There are no alternative actions
that would meet the express requirement contained in SB 1, Article VI, Rider
30. The calculation of total emissions upon which fees must be based will
not burden private real property, since they do not affect private real property,
and therefore does not constitute a taking under the Texas Government Code,
Chapter 2007.
CONSISTENCY WITH THE COASTAL MANAGEMENT PROGRAM
The commission determined that the rulemaking action relates to an action
or actions subject to the Texas Coastal Management Program (CMP) in accordance
with the Coastal Coordination Act of 1991, as amended (Texas Natural Resources
Code, §§33.201 et seq.), and the commission rules in 30 TAC Chapter
281, Subchapter B, concerning Consistency with the CMP. As required by 30
TAC §281.45(a)(3) and 31 TAC §505.11(b)(2), relating to actions
and rules subject to the CMP, commission rules governing air pollutant emissions
must be consistent with the applicable goals and policies of the CMP. The
commission reviewed this action for consistency with the CMP goals and policies
in accordance with the rules of the Coastal Coordination Council, and determined
that the action is consistent with the applicable CMP goals and policies.
The CMP goal applicable to this rulemaking action is the goal to protect,
preserve, and enhance the diversity, quality, quantity, functions, and values
of coastal natural resource areas (31 TAC §501.12(1)). The specific purpose
of this rulemaking action is to include the total emissions of both reportable
and non-reportable quantities under commission requirements related to upset
and maintenance conditions for the purpose of calculating the total emission
fees owed to the commission. The expansion of the fees to include upset and
maintenance conditions will meet the express requirement contained in SB 1,
Article VI, Rider 30. No new sources of air contaminants will be authorized
as a result of these rules. The CMP policy applicable to this rulemaking action
is the policy that commission rules comply with regulations in 40 CFR, to
protect and enhance air quality in the coastal area (31 TAC §501.14(q)).
This rulemaking action complies with 40 CFR 51. Therefore, in compliance with
31 TAC §505.22(e), the commission affirms that this rulemaking action
is consistent with CMP goals and policies.
Interested persons may submit comments on the consistency of the proposed
rules with the CMP during the public comment period.
ANNOUNCEMENT OF HEARING
The commission will hold a public hearing on this proposal on August 13,
2001, at 2:00 p.m., Texas Natural Resource Conservation Commission, 12100
Park 35 Circle, Building F, Room 2210, Austin. The hearing is structured for
the receipt of oral or written comments by interested persons. Individuals
may present oral statements when called upon in order of registration. Open
discussion will not occur during the hearing; however, agency staff members
will be available to discuss the proposal 30 minutes prior to the hearing,
and will answer questions before and after the hearing.
Persons with disabilities who have special communication or other accommodation
needs, and who are planning to attend the hearing, should contact the Office
of Environmental Policy, Analysis, and Assessment at (512) 239-4900. Requests
should be made as far in advance as possible.
SUBMITTAL OF COMMENTS
Written comments may be submitted to Lola Brown, Office of Environmental
Policy, Analysis, and Assessment, MC 205, P.O. Box 13087, Austin, Texas 78711-3087
or faxed to (512) 239-4808. All comments should reference Rule Log Number
2001-030-101-AI. Comments must be received by 5:00 p.m., August 13, 2001.
This proposal is available on the commission's web site at
http://www.tnrcc.state.tx.us/oprd/rules/propadopt.html
. For further
information, please contact Paul Henry at (512) 239-1527 or Alan Henderson
at (512) 239-1510.
STATUTORY AUTHORITY
The amendment is proposed under Texas Water Code (TWC), §5.103 and §5.105,
which authorize the commission to adopt rules necessary to carry out its powers
and duties under the TWC; and under the Texas Health and Safety Code, TCAA, §382.017,
concerning Rules, which authorizes the commission to adopt rules consistent
with the policy and purposes of the TCAA. The amendment is also proposed under
TCAA, §382.011, concerning General Powers and Duties, which authorizes
the commission to control the quality of the state's air; §382.012, concerning
State Air Control Plan, which authorizes the commission to prepare and develop
a general, comprehensive plan for the control of the state's air; §382.0335,
concerning Air Control Account, which authorizes the commission to collect
money from any source to carry out its duties under TCAA; and §382.0621,
concerning Operating Permit Fee, which requires the commission to adopt, charge,
and collect an annual fee based on emissions for each source; and SB 1, Article
VI, Rider 30, which requires upset and maintenance emissions be included in
the calculation of fees collected under TCAA, §382.0621.
The proposed amendment implements TCAA, §§382.011, 382.012, and
382.0621; TWC, §5.103 and §5.105; and SB 1, Article VI, Rider 30.
§101.27.Emissions Fees.
(a) - (b)
(No change.)
(c)
Basis for fees.
(1)
The emissions fee shall be based on allowable levels and/or
actual emissions at the account during the last full calendar year preceding
the beginning of the fiscal year for which the fee is assessed. For purposes
of this section, the term "allowable levels" are those limits as specified
in an enforceable document such as a permit or Commission Order which are
in effect on the date the fee is due.
Under no circumstances shall the
fee basis be less than the actual emissions at the account.
The fee
applies to the tonnage of regulated
pollutant emissions
[
Figure: 30 TAC §101.27(c)(1)
(2) - (3)
(No change).
(4)
For purposes of this section, the term "regulated pollutant"
shall include any VOC, any pollutant subject to the FCAA, §111, any pollutant
listed as a hazardous air pollutant under the FCAA, §112, each pollutant
for which a national primary ambient air quality standard has been promulgated
(including carbon monoxide), and any other air pollutant subject to requirements
under commission rules, regulations, permits, orders of the commission, or
court orders. [
(d) - (f)
(No change).
This agency hereby certifies that the proposal has been reviewed
by legal counsel and found to be within the agency's legal authority to adopt.
Filed with the Office of
the Secretary of State, on July 11, 2001.
TRD-200103976
Ramon Dasch
Acting Director, Environmental Law Division
Texas Natural Resource Conservation Commission
Earliest possible date of adoption: August 19, 2001
For further information, please call: (512) 239-0348
Subchapter I. NON-ROAD ENGINES
The Texas Natural Resource Conservation Commission (commission) proposes
the repeal of Subchapter I, Non-Road Engines; Division 2, Heavy Equipment
Fleets - Compression-Ignition Engines; §§114.410, 114.412, 114.416,
114.417, and 114.419; Division 4, Construction Equipment Operating Limitations; §§114.432,
114.436, 114.437, and 114.439; Division 8, Houston/Galveston Heavy Equipment
Fleets - Compression-Ignition Engines; §§114.470, 114.472, 114.476,
114.477, and 114.479; Division 9, Houston/Galveston Construction Equipment
Operating Restrictions; §§114.482, 114.486, 114.487, and 114.489;
and corresponding revisions to the state implementation plan (SIP). These
repeals are being proposed as part of the implementation of Senate Bill (SB)
5 (relating to the Texas Emission Reduction Plan) of the 77th Texas Legislature,
2001.
BACKGROUND AND SUMMARY OF THE FACTUAL BASIS FOR THE PROPOSED REPEALS
The rules under Divisions 2 and 4 being proposed for repeal were originally
adopted on April 19, 2000 as part of the SIP control strategy for the Dallas/Fort
Worth (DFW) ozone nonattainment area to achieve attainment with the national
ambient air quality standard (NAAQS) for ozone. The rules under Divisions
8 and 9 being proposed for repeal were originally adopted on December 6, 2000
as part of the SIP control strategy for the Houston/Galveston (HGA) ozone
nonattainment area to achieve attainment with the ozone NAAQS. The purpose
of the rules in Divisions 4 and 9 was to establish a restriction on the use
of construction and industrial equipment (non-road, heavy-duty diesel equipment
rated at 50 horsepower (hp) and greater) as an air pollution control strategy
to delay the emissions of nitrogen oxides (NO
x
),
a key ozone precursor, until later in the day, thus limiting ozone formation.
By delaying the hours of operation during the effective time period, the NO
The purpose of the rules in Divisions 2 and 8 was to achieve a reduction
of ozone levels by requiring the owners or operators of diesel-powered construction,
industrial, commercial, and lawn and garden equipment 50 hp and above to replace
their affected equipment with newer Tier 2 and Tier 3 equipment. The rules
would have required that the portion of the fleet with affected equipment
in the range from 50 hp to 100 hp would be 100% Tier 2 by the end of the calendar
year 2007. For the portion of the fleet in the 100 hp to 750 hp range, 50%
of such equipment would be Tier 3 and the remaining Tier 2 by the end of the
calendar year 2007. Finally, for the portion of the fleet greater than 750
hp, 100% of such equipment would be Tier 2 by the end of calendar year 2007.
Tier 2 and Tier 3 equipment emit less NO
x
and
VOC than Tier 1 and unregulated equipment, therefore formation of ozone would
be reduced.
Recently, the 77th Legislature of the State of Texas passed SB 5. Section
18 of SB 5 requires the commission to submit a SIP revision to the United
States Environmental Protection Agency (EPA) deleting the requirements of
these rules from the SIP no later than October 1, 2001. If adopted, these
rule repeals will be submitted to EPA as a SIP revision, thus implementing
this legislative requirement.
The diesel emission reduction incentive program contained in SB 5 will
replace the existing rules and result in a similar level of emission reductions.
Therefore, the NO
x
reductions previously claimed
in the DFW Attainment Demonstration SIP will, as a result of this rulemaking,
be achieved through an alternate, but equivalent federally enforceable mechanism.
FISCAL NOTE: COSTS TO STATE AND LOCAL GOVERNMENT
John Davis, Technical Specialist with Strategic Planning and Appropriations,
determined that for the first five-year period the proposed amendments are
in effect there will be no fiscal implications to units of state or local
government as a result of implementation of the proposed amendments, which
are intended to repeal the construction equipment operating limitations rules
and the accelerated purchase of Tier 2/Tier 3 diesel equipment rules for the
DFW nonattainment area adopted by the commission in April 2000, and adopted
for the HGA nonattainment area in December 2000.
Because the adopted April 2000 and December 2000 rules did not require
emission reductions until 2004, the commission estimates there have been no
significant fiscal expenditures to units of state and local government to
comply with the adopted rules which are now proposed for repeal.
The existing rules would have: 1) prohibited owners and operators of diesel-powered
construction and industrial equipment 50 hp and above from operating their
affected equipment during the ozone season from 6:00 a.m. - 10:00 a.m. in
DFW and 6:00 a.m. - noon in HGA beginning in 2005; and 2) required owner/operators
in DFW and HGA to replace their diesel-powered construction, industrial, commercial,
and lawn and garden equipment 50 hp and above with newer Tier 2 and Tier 3
equipment beginning in December 2004.
The existing rules would have affected units of state and local government
with ongoing or future construction projects and those units that owned and
operated diesel equipment 50 hp and larger used in the construction, general
industrial, lawn and garden, utility, and material handling categories in
the DFW and HGA ozone nonattainment areas. Examples of equipment in the construction
category include backhoes, bore/drill rigs, cement mixers, crawler tractors,
excavators, graders, off-highway trucks, pavers, paving equipment, plate compactors,
rollers, rubber-tire dozers, rubber-tire loaders, scrapers, signal boards,
skid-steer loaders, trenchers, and feller/bunchers. Examples of equipment
in the general industrial category include concrete/industrial saws, crushing
equipment, oil field equipment, refrigeration/air conditioning units, scrubber/sweepers,
and rail maintenance equipment. Examples of equipment used in the lawn and
garden category include garden tractors, rear engine mowers, and chipper/grinders.
Examples of equipment in the utility category include air compressors, hydro-power
units, pressure washers, pumps, generator units, irrigation units, and welders.
Examples of equipment in the material handling category include aerial lifts,
cranes, forklifts, and rough-terrain forklifts.
The commission estimated at the proposal of the original rules that it
would have cost affected owners and operators in DFW an estimated $50 - $70
million a year (actual cost was only derived for the Tier 2/3 rules) and owners
and operators in HGA an estimated $100 - $135 million a year ($70 - $93 million
for the construction operating restrictions rules and $30 - $42 million for
the Tier 2/3 rules) to comply with the rule requirements that are being repealed
in this rulemaking action. The specific number of units of state and local
government that would have had to comply with the existing rules, which are
now proposed to be repealed, was not identified during the proposal period
for these rules.
PUBLIC BENEFIT AND COSTS
Mr. Davis also determined that for each year of the first five years the
proposed repeals are in effect, the public benefit anticipated from the proposed
rulemaking will be the implementation of certain provisions of SB 5, which
directed the agency to delete the construction equipment operating restrictions
rules and the accelerated purchase of Tier 2/Tier 3 diesel equipment rules
from the SIP.
Because the existing rules, adopted in April 2000 and December 2000, did
not require emission reductions until 2004, the commission estimates there
have been no significant fiscal expenditures to individuals and businesses
to comply with the existing rules which are now proposed to be repealed.
The existing rules would have: 1) prohibited owners and operators of diesel-powered
construction and industrial equipment 50 hp and above from operating their
affected equipment during the ozone season from 6:00 a.m. - 10:00 a.m. in
DFW and 6:00 a.m. - noon in HGA beginning in 2005; and 2) require owner/operators
in DFW and HGA to replace their diesel-powered construction, industrial, commercial,
and lawn and garden equipment 50 hp and above with newer Tier 2 and Tier 3
equipment beginning in December 2004.
The existing rules would have affected individuals and businesses with
ongoing or future construction projects and those entities that owned and
operated diesel equipment 50 hp and larger used in the construction, general
industrial, lawn and garden, utility, and material handling categories in
the DFW and HGA ozone nonattainment areas.
The commission estimated at the proposal of the existing rules, that it
would have cost affected owners and operators in DFW an estimated $50 - $70
million a year (actual cost was only derived for the Tier 2/3 rules) and owners
and operators in HGA an estimated $100 - $135 million a year ($70 - $93 million
for the construction shift rules and $30 - $42 million for the Tier 2/3 rules)
to comply with the rule requirements that are being repealed in this rulemaking
action.
SMALL BUSINESS AND MICRO-BUSINESS ASSESSMENT
No adverse economic effects are anticipated to any small or micro-businesses
as a result of implementing the proposed changes, which would repeal the existing
rules regarding heavy equipment fleets, compression-ignition engines and the
rules regarding construction equipment operating restrictions which were adopted
in April 2000 for the DFW ozone nonattainment area and in December 2000 for
the HGA ozone nonattainment area.
Because the existing rules, adopted April 2000 and December 2000, did not
require emission reductions until 2004, the commission estimates there have
been no significant fiscal expenditures to small or micro-businesses to comply
with the existing rules which are now proposed to be repealed.
The existing rules would have: 1) prohibited owners and operators of diesel-powered
construction and industrial equipment 50 hp and above from operating their
affected equipment during the ozone season from 6:00 a.m. - 10:00 a.m. in
DFW and 6:00 a.m. - noon in HGA beginning in 2005; and 2) required owner/operators
in DFW and HGA to replace their diesel-powered construction, industrial, commercial,
and lawn and garden equipment 50 hp and above with newer Tier 2 and Tier 3
equipment beginning in December 2004.
The existing rules would have affected small and micro-businesses with
ongoing or future construction projects and those entities that owned and
operated diesel equipment 50 hp and larger used in the construction, general
industrial, lawn and garden, utility, and material handling categories in
the DFW and HGA ozone nonattainment areas.
The commission estimated at the proposal of the existing rules that it
would have cost affected owners and operators in DFW an estimated $50 - $70
million a year (actual cost was only derived for the Tier 2/3 rules) and owners
and operators in HGA an estimated $100 - $135 million a year ($70 - $93 million
for the construction shift rules and $30 - $42 million for the Tier 2/3 rules)
to comply with the rule requirements that are being repealed in this rulemaking
action. The specific number of small or micro-businesses that would have had
to comply with the existing rules, which are now proposed to be repealed,
was not identified during the proposal period of these rules.
DRAFT REGULATORY IMPACT ANALYSIS DETERMINATION
The commission reviewed the proposed rulemaking in light of the regulatory
analysis requirements of Texas Government Code, §2001.0225, and determined
that the rulemaking does not meet the definition of a "major environmental
rule" as defined in that statute. A "major environmental rule" is a rule the
specific intent of which is to protect the environment or reduce risks to
human health from environmental exposure and that may adversely affect in
a material way the economy, a sector of the economy, productivity, competition,
jobs, the environment, or the public health and safety of the state or a sector
of the state. The rules being proposed for repeal were intended to protect
the environment and reduce risks to human health from environmental exposure
to ozone and would have affected, in a material way, a sector of the economy,
competition, and the environment.
This rulemaking action is not subject to the regulatory analysis provisions
of Texas Government Code, §2001.0225(b), because the rules proposed for
repeal are being replaced by a reduction strategy which will result in NO
TAKINGS IMPACT ASSESSMENT
The commission prepared a takings impact assessment for this proposed repeal
of rules under Texas Government Code, §2007.043. The following is a summary
of that assessment. The specific purpose of this rulemaking is to repeal Subchapter
I, Non-Road Engines; Division 2, Heavy Equipment Fleets - Compression-Ignition
Engines; §§114.400, 114.412, 114.416, 114.417, and 114.419; Division
4, Construction Equipment Operating Limitations; §§114.432, 114.436,
114.437, and 114.439; Division 8, Houston/Galveston Heavy Equipment Fleets
- Compression-Ignition Engines; §§114.470, 114.472, 114.476, 114.477,
and 114.479; Division 9, Houston/Galveston Construction Equipment Operating
Restrictions; §§114.482, 114.486, 114.487, and 114.489; and corresponding
revisions to the SIP. These rules will be replaced by reductions resulting
from voluntary and incentive programs authorized by SB 5 which will obtain
the similar NO
x
reductions necessary for the
DFW and HGA ozone nonattainment areas to meet the NAAQS established under
federal law. These repeals do not burden private real property.
CONSISTENCY WITH THE COASTAL MANAGEMENT PROGRAM
When HGA and DFW rules regarding heavy equipment fleets, compression-ignition
engines and the rules regarding construction equipment operating restrictions
were originally adopted, the commission determined that the proposed rulemaking
related to an action or actions subject to the Texas Coastal Management Program
(CMP) in accordance with the Coastal Coordination Act of 1991, as amended
(Texas Natural Resources Code, §§33.201 et seq.), and the commission
rules in 30 TAC Chapter 281, Subchapter B, concerning Consistency with the
Texas Coastal Management Program. As required by 30 TAC §281.45(a)(3)
and 31 TAC §505.11(b)(2), relating to actions and rules subject to the
CMP, commission rules governing air pollutant emissions must be consistent
with the applicable goals and policies of the CMP. The commission reviewed
the previous adoption action for consistency with the CMP goals and policies
in accordance with the rules of the Coastal Coordination Council, and determined
that the action was consistent with the applicable CMP goals and policies.
The CMP goal applicable to the rulemaking action was the goal to protect,
preserve, and enhance the diversity, quality, quantity, functions, and values
of coastal natural resource areas (31 TAC §501.12(1)). No new sources
of air contaminants were authorized and NO
x
air
emissions were anticipated to be reduced as a result of these rules. The CMP
policy applicable to the rulemaking action was the policy that commission
rules comply with regulations in 40 Code of Federal Regulations (CFR), to
protect and enhance air quality in the coastal area (31 TAC §501.14(q)).
The rulemaking action complied with 40 CFR 50, National Primary and Secondary
Ambient Air Quality Standards, and 40 CFR 51, Requirements for Preparation,
Adoption, and Submittal Of Implementation Plans. Therefore, in compliance
with 31 TAC §505.22(e), these rulemaking actions were determined to be
consistent with CMP goals and policies.
The repeal of these rules will not invalidate the determination that the
previous rulemaking actions were consistent with CMP goals and policies, because
the rules proposed for repeal are being replaced by voluntary and incentive
programs authorized by SB 5, which will result in NO
x
emission reductions similar to the NO
x
reductions that would have been achieved by the rules. Therefore, this rulemaking
action is also consistent with CMP goals and policies.
Interested persons may submit comments on the consistency of the proposed
rules with the CMP during the public comment period.
ANNOUNCEMENT OF HEARINGS
The commission will hold public hearings on this proposal on August 13,
2001 at 2:00 p.m., Houston City Hall Council Chambers, 2nd Floor, 901 Bagby,
Houston; on August 14, 2001 at 9:00 a.m., Texas Natural Resource Conservation
Commission, Building E, Room 201S, 12100 Park 35 Circle, Austin; and on August
14, 2001 at 2:00 p.m., North Central Texas Council of Governments, Transportation
Board Room, 3rd Floor, 616 Six Flags Drive, Arlington. The hearings are structured
for the receipt of oral or written comments by interested persons. Registration
will begin 30 minutes prior to each hearing. Individuals may present oral
statements when called upon in order of registration. A four-minute time limit
may be established at the hearing to assure that enough time is allowed for
every interested person to speak. Open discussion will not occur during the
hearing; however, commission staff members will be available to discuss the
proposal 30 minutes before the hearing, and will answer questions before and
after the hearing.
Persons with disabilities who have special communication or other accommodation
needs, and who are planning to attend a hearing, should contact the Office
of Environmental Policy, Analysis, and Assessment at (512) 239-4900. Requests
should be made as far in advance as possible.
SUBMITTAL OF COMMENTS
Written comments may be submitted to Ms. Lola Brown, Office of Environmental
Policy, Analysis, and Assessment, MC 205, P.O. Box 13087, Austin, Texas 78711-3087;
faxed to (512) 239- 4808; or emailed to
terp@tnrcc.state.tx.us
. All comments should reference Rule Log Number 2001-025a-114-AI. Comments
must be received by 5:00 p.m., August 14, 2001. The latest version of these
proposed rules in Chapter114 and the SIP revision are available on the commission's
web site at
http://www.tnrcc.state.tx.us/oprd/sips/terp.html
. For further information, please contact Bill Jordan at (512) 239-2583
or Alan Henderson at (512) 239-1510.
2.
HEAVY EQUIPMENT FLEETS--COMPRESSION-IGNITION ENGINES
30 TAC §§14.410, 114.412, 114.416, 114.417, 114.419
(Editor's note: The text of the following sections proposed
for repeal will not be published. The sections may be examined in the offices
of the Texas Natural Resource Conservation Commission or in the Texas Register
office, Room 245, James Earl Rudder Building, 1019 Brazos Street, Austin.)
STATUTORY AUTHORITY
The repeals are proposed under Texas Water Code (TWC), §5.102, which
provides the commission with the general powers to carry out its duties under
TWC; §5.103, which authorizes the commission to adopt any rules necessary
to carry out the powers and the duties under the provisions of TWC and other
laws of this state; and §5.105, which authorizes the commission by rule
to establish and approve all general policy of the commission. These repeals
are also proposed under Texas Health and Safety Code, Texas Clean Air Act
(TCAA), §382.017, which authorizes the commission to adopt rules consistent
with the policy and purposes of TCAA; §382.011, which authorizes the
commission to establish the level of quality to be maintained in the state's
air and to control the quality of the state's air; and §382.012, which
authorizes the commission to prepare and develop a general, comprehensive
plan for the control of the state's air. Finally, these proposed repeals are
required as part of the implementation of SB 5, §18, Acts of the 77th
Legislature, 2001.
These proposed repeals implement SB 5, §18.
§114.410.Definitions.
§114.412.Control Requirements.
§114.416.Reporting and Recordkeeping Requirements.
§114.417.Exemptions.
§114.419.Affected Counties.
This agency hereby certifies that the proposal has been
reviewed by legal counsel and found to be within the agency's legal authority
to adopt.
Filed with the Office of
the Secretary of State, on July 11, 2001.
TRD-200103972
Ramon Dasch
Acting Director, Environmental Law Division
Texas Natural Resource Conservation Commission
Earliest possible date of adoption: August 19, 2001
For further information, please call: (512) 239-0348
30 TAC §§114.432, 114.436, 114.437, 114.439
(Editor's note: The text of the following sections proposed
for repeal will not be published. The sections may be examined in the offices
of the Texas Natural Resource Conservation Commission or in the Texas Register
office, Room 245, James Earl Rudder Building, 1019 Brazos Street, Austin.)
STATUTORY AUTHORITY
The repeals are proposed under Texas Water Code (TWC), §5.102, which
provides the commission with the general powers to carry out its duties under
TWC; §5.103, which authorizes the commission to adopt any rules necessary
to carry out the powers and the duties under the provisions of TWC and other
laws of this state; and §5.105, which authorizes the commission by rule
to establish and approve all general policy of the commission. These repeals
are also proposed under Texas Health and Safety Code, Texas Clean Air Act
(TCAA), §382.017, which authorizes the commission to adopt rules consistent
with the policy and purposes of TCAA; §382.011, which authorizes the
commission to establish the level of quality to be maintained in the state's
air and to control the quality of the state's air; and §382.012, which
authorizes the commission to prepare and develop a general, comprehensive
plan for the control of the state's air. Finally, these proposed repeals are
required as part of the implementation of SB 5, §18, Acts of the 77th
Legislature, 2001.
These proposed repeals implement SB 5, §18.
§114.432.Control Requirements.
§114.436.Recordkeeping Requirements.
§114.437.Exemptions.
§114.439.Affected Counties and Compliance Dates.
This agency hereby certifies that the proposal has been
reviewed by legal counsel and found to be within the agency's legal authority
to adopt.
Filed
with the Office of the Secretary of State, on July 11, 2001.
TRD-200103973
Ramon Dasch
Acting Director, Environmental Law Division
Texas Natural Resource Conservation Commission
Earliest possible date of adoption: August 19, 2001
For further information, please call: (512) 239-0348
30 TAC §§114.470, 114.472, 114.476, 114.477, 114.479
(Editor's note: The text of the following sections proposed
for repeal will not be published. The sections may be examined in the offices
of the Texas Natural Resource Conservation Commission or in the Texas Register
office, Room 245, James Earl Rudder Building, 1019 Brazos Street, Austin.)
STATUTORY AUTHORITY
The repeals are proposed under Texas Water Code (TWC), §5.102, which
provides the commission with the general powers to carry out its duties under
TWC; §5.103, which authorizes the commission to adopt any rules necessary
to carry out the powers and the duties under the provisions of TWC and other
laws of this state; and §5.105, which authorizes the commission by rule
to establish and approve all general policy of the commission. These repeals
are also proposed under Texas Health and Safety Code, Texas Clean Air Act
(TCAA), §382.017, which authorizes the commission to adopt rules consistent
with the policy and purposes of TCAA; §382.011, which authorizes the
commission to establish the level of quality to be maintained in the state's
air and to control the quality of the state's air; and §382.012, which
authorizes the commission to prepare and develop a general, comprehensive
plan for the control of the state's air. Finally, these proposed repeals are
required as part of the implementation of SB 5, §18, Acts of the 77th
Legislature, 2001.
These proposed repeals implement SB 5, §18.
§114.470.Definitions.
§114.472.Control Requirements.
§114.476.Reporting and Recordkeeping Requirements.
§114.477.Exemptions.
§114.479.Affected Counties.
This agency hereby certifies that the proposal has been
reviewed by legal counsel and found to be within the agency's legal authority
to adopt.
Filed
with the Office of the Secretary of State, on July 11, 2001.
TRD-200103974
Ramon Dasch
Acting Director, Environmental Law Division
Texas Natural Resource Conservation Commission
Earliest possible date of adoption: August 19, 2001
For further information, please call: (512) 239-0348
30 TAC §§114.482, 114.486, 114.487, 114.489
(Editor's note: The text of the following sections proposed
for repeal will not be published. The sections may be examined in the offices
of the Texas Natural Resource Conservation Commission or in the Texas Register
office, Room 245, James Earl Rudder Building, 1019 Brazos Street, Austin.)
STATUTORY AUTHORITY
The repeals are proposed under Texas Water Code (TWC), §5.102, which
provides the commission with the general powers to carry out its duties under
TWC; §5.103, which authorizes the commission to adopt any rules necessary
to carry out the powers and the duties under the provisions of TWC and other
laws of this state; and §5.105, which authorizes the commission by rule
to establish and approve all general policy of the commission. These repeals
are also proposed under Texas Health and Safety Code, Texas Clean Air Act
(TCAA), §382.017, which authorizes the commission to adopt rules consistent
with the policy and purposes of TCAA; §382.011, which authorizes the
commission to establish the level of quality to be maintained in the state's
air and to control the quality of the state's air; and §382.012, which
authorizes the commission to prepare and develop a general, comprehensive
plan for the control of the state's air. Finally, these proposed repeals are
required as part of the implementation of SB 5, §18, Acts of the 77th
Legislature, 2001.
These proposed repeals implement SB 5, §18.
§114.482.Control Requirements.
§114.486.Recordkeeping Requirements.
§114.487.Exemptions.
§114.489.Affected Counties and Compliance Dates.
This agency hereby certifies that the proposal has been
reviewed by legal counsel and found to be within the agency's legal authority
to adopt.
Filed
with the Office of the Secretary of State, on July 11, 2001.
TRD-200103975
Ramon Dasch
Acting Director, Environmental Law Division
Texas Natural Resource Conservation Commission
Earliest possible date of adoption: August 19, 2001
For further information, please call: (512) 239-0348
The Texas Natural Resource Conservation Commission (commission) proposes
new §§114.600 - 114.602 and 114.609 in new Division 1, On-Road Diesel
Vehicle Purchase or Lease Incentive Program; and new §§114.610 -
114.612, 114.616, 114.618, and 114.619 in new Division 2, Light-Duty Motor
Vehicle Purchase or Lease Incentive Program. These new sections and new divisions
are being proposed in new Subchapter K, Mobile Source Incentive Programs,
of Chapter 114 as part of the implementation of Senate Bill (SB) 5 (relating
to the Texas Emission Reduction Plan), Acts of the 77th Texas Legislature,
2001.
BACKGROUND AND SUMMARY OF THE FACTUAL BASIS FOR THE PROPOSED RULES
The 77th Legislature adopted SB 5 establishing the Texas Emission Reduction
Plan (TERP) which provides financial incentives for reducing emissions of
on-road and non-road motor vehicles and equipment, grants for the development
of new emission control technology, new building energy efficiency standards,
and research and development programs. The program is funded through surcharges
and fees established in the bill. Senate Bill 5 also required that the commission
delete the operating restriction on construction equipment rules and the Tier
2/Tier 3 accelerated purchase rules on construction equipment from the Dallas/Fort
Worth and Houston/Galveston state implementation plans and replace them with
programs from SB 5. The SB 5 programs are estimated to achieve reductions
in excess of the reductions expected from the rules that are being repealed.
In accordance with SB 5, the state implementation plan will be revised to
replace these rules with TERP.
The proposed rules will establish a state-wide incentive program for the
purchase or lease of new on-road diesel vehicles and light-duty motor vehicles
that meet emission standards more stringent than those required by federal
requirements. The incentive for eligible on-road diesel vehicles will be the
reimbursement of incremental costs to purchase the cleaner vehicle and the
incentive for eligible light- duty motor vehicles will be an award of a specified
dollar amount. Both incentives will be based on the emission standard to which
the vehicle is certified. The implementation and administration of the new
on-road diesel vehicle purchase or lease incentive program will be performed
by the commission. However, implementation and administration of the incentive
awards associated with the light-duty motor vehicle purchase or lease incentive
program will be the responsibility of the state comptroller's office.
SECTION BY SECTION DISCUSSION
The proposed new Subchapter K includes two new divisions which will establish
the rules concerning motor vehicle purchasing and leasing incentives. The
proposed new Division 1 includes the proposed new on-road diesel vehicle purchase
or lease incentive program rules found in the proposed new §§114.600
- 114.602, and 114.609. The proposed new Division 2 includes the proposed
new light-duty motor vehicle purchase or lease incentive program rules found
in the proposed new §§114.610 - 114.612, 114.616, 114.618, and 114.619.
The proposed new §114.600 contains definitions applicable to the on-road
diesel vehicle purchase or lease incentive program rules. These definitions
include: incremental costs, lease, lessee, motor vehicle, new on-road diesel
vehicle, and on-road diesel. The definitions of motor vehicle and on-road
diesel are as specified under SB 5, §1. The other definitions listed
were added for clarity.
The proposed new §114.601 establishes the state-wide applicability
of §§114.600, 114.602, and 114.609. All incentives are subject to
the availability of funding for this program. Because the funding for these
incentives is from surcharges which will be collected throughout the lifetime
of the program, and because there are statutory caps on the amount of funding
for this program, funding for incentives for eligible vehicles may be delayed
or unavailable. Incentives will be funded in the order of the submission of
a completed certification.
The proposed new §114.602 establishes the eligibility requirements
for the on-road diesel vehicle purchase or lease incentive to reimburse the
incremental costs of purchasing or leasing an on- road diesel vehicle that
is certified by the United States Environmental Protection Agency (EPA) to
meet an emission standard more stringent than that of a conventional on-road
diesel vehicle. The proposed new §114.602 also specifies that only one
incentive will be provided for each eligible new on-road diesel vehicle purchased
or leased in the state and that the incentive shall be provided to the lessee
and not to the purchaser if the on-road diesel vehicle is purchased for the
purpose of leasing the on-road diesel vehicle to another person. In addition,
the proposed new §114.602 specifies that the incentive for the lease
of an eligible new on-road diesel vehicle must be prorated based on an eight-year
lease term. This provision will likely prevent the excessive use of short
term leases in acquiring incentive funding.
The proposed new §114.609 establishes the schedule of emission standards
and incentive amounts from which the incremental cost reimbursement incentives
will be based.
The proposed new §114.610 contains definitions applicable to the light-duty
motor vehicle purchase or lease incentive program rules. These definitions
include: bin or emissions bin, lease, lessee, light-duty motor vehicle, and
new light-duty motor vehicle. The definitions of bin or emissions bin, light-duty
motor vehicle, and motor vehicle are as specified under SB 5, §1. The
other definitions listed were added for clarity.
The proposed new §114.611 establishes the state-wide applicability
of §§114.610, 114.612, 114.616, 114.618, and 114.619. All incentives
are subject to the availability of funding for this program. Because the funding
for these incentives is from surcharges which will be collected during the
pendency of the program, and because there are statutory caps on the amount
of funding for this program, funding for incentives for eligible vehicles
may be delayed or unavailable. Incentives established by these proposed rules
will be funded in accordance with rules and procedures adopted by the state
comptroller's office.
The proposed new §114.612 establishes the eligibility requirements
for the new light-duty purchase or lease incentive for the purchase or lease
of a new light-duty motor vehicle that is certified by the EPA to meet the
Tier 2 - Bin 4, Bin 3, Bin 2, or Bin 1 emission standards or to an emissions
standard that is at least as stringent. The proposed new §114.612 also
specifies that only one incentive will be provided for each eligible new light-duty
motor vehicle purchased or leased in the state and that the incentive shall
be provided to the lessee and not to the purchaser if the new light-duty motor
vehicle is purchased for the purpose of leasing the light-duty motor vehicle
to another person. In addition, the proposed new §114.612 specifies that
the incentive for the lease of an eligible new light-duty motor vehicle must
be prorated based on an four-year lease term. This provision will likely prevent
the excessive use of short-term leases in acquiring incentive funding.
The proposed new §114.616 establishes the requirements for a list
of eligible vehicles that vehicle manufacturers will be required to provide
to the executive director, or his designee, at the beginning, but no later
than July 1, of each year preceding the next new vehicle model year, beginning
January 1, 2002. The information to be included on this list will provide
the commission with sufficient data to verify the emission certification of
vehicles listed. The proposed new §114.616 will also allow the manufacturer
to supplement the list as necessary to include additional new light-duty motor
vehicle models that the manufacturer intends to sell in this state during
the model year. In addition, the proposed new §114.616 will require that
all dealers and leasing agents of new light- duty motor vehicles statewide
make copies of this list available to their prospective purchasers or lessees.
This provision will help provide awareness of this incentive program to dealers
state-wide and provide additional information to customers in making purchase
selection decisions.
The proposed new §114.618 establishes the requirements for a vehicle
emissions brochure that vehicle manufacturers will be required to publish
by September 1 of each year and distribute to customers regarding the vehicles
eligible to receive an incentive, beginning September 1, 2002. The dimensions
of the brochure are also established by the proposed new §114.618 for
the sake of uniformity in printing styles and so that the brochure may be
easily recognized by prospective purchasers and lessees. The proposed new §114.618
will also require each manufacturer to submit a copy of the brochure to the
executive director, or his designee, by September 1 of each year, beginning
September 1, 2002. In addition, the proposed new §114.618 will require
manufacturers that do not intend to sell new light-duty motor vehicles in
the state that may be eligible for the incentive to publish a brochure that
states a notice of that fact.
The proposed new §114.619 establishes the schedule of emission standards
and corresponding incentive amounts from which the incentives will be based.
FISCAL NOTE: COSTS TO STATE AND LOCAL GOVERNMENT
John Davis, Technical Specialist with Strategic Planning and Appropriations,
determined that for the first five-year period the proposed amendments are
in effect, there will be significant administrative costs to the commission
to implement provisions in this rulemaking. There may be potential cost savings
to units of state and local government that elect to participate in the voluntary
incentive programs that will be implemented by the proposed amendments. Units
of state and local government may receive incentives for purchases of cleaner
on-road diesel vehicles in an amount not to exceed $25,000 per vehicle and
incentives to purchase cleaner-running light-duty motor vehicles in an amount
not to exceed $5,000 per vehicle. The incentives proposed in this rulemaking
action would be available statewide.
The proposed amendments are intended to implement certain provisions of
SB 5. Specifically, the bill directed the commission to establish a state-wide
incentive program for the purchase or lease of new on-road diesel vehicles
and light-duty motor vehicles that meet emission standards more stringent
than those required by federal regulations. The incentive for eligible on-road
diesel vehicles will be the reimbursement of the cost difference between purchasing
a vehicle that meets current emission standards and purchasing a vehicle that
meets the more stringent emission standards as specified in this rulemaking.
The incentive for eligible light-duty motor vehicles will be an award of a
specified dollar amount, both incentives will be based on the emission standard
to which the vehicle is certified.
All diesel-powered motor vehicles with a gross vehicle weight rating (GVWR)
over 10,000 pounds that are required to be registered for use on public highways
are eligible for the incentives if the vehicle is certified by the EPA to
an emission standard at least as stringent as specified in this rulemaking.
Types of diesel-powered vehicles that would qualify for incentives include
large stepvans (such as those used by the United Parcel Service (UPS)), large
pickup trucks, 18-wheel trucks, and buses.
A wide range of light-duty motor vehicles would also qualify for the incentives
statewide. All light-duty motor vehicles with a GVWR less than 10,000 pounds
that are required to be registered for use on public highways are eligible
for incentives if the vehicle is certified by the EPA to an emission standard
at least as stringent as the Tier 2 - Bin 4, Bin 3, Bin 2, or Bin 1 emission
standards. A Bin is a set of emission standards applicable to exhaust pollutants
that get stricter the lower the Bin number. Vehicles that meet Bin 4 standards
are capable of emitting 0.04 grams/mile of nitrogen oxides (NO
x
) or less; Bin 3 vehicles can emit 0.03 grams/mile of NO
x
or less; Bin 2 vehicles can emit 0.02 grams/mile of NO
x
; and Bin 1 vehicles can emit 0.00 grams/mile NO
x
(zero emission vehicle). Examples of light-duty vehicles that would
qualify for incentives include: most cars, pickups, sport utility vehicles
(SUV), and passenger vans.
Incentives for the purchase or lease of on-road diesel vehicles manufactured
on or after January 1, 2001 until September 30, 2002 shall be based on the
following emission standards: vehicles emitting 2.5 grams per brake horsepower-hour
(g/bhp-hr) of NO
x
or less, are eligible for up
to $15,000; and vehicles emitting 1.5 g/bhp-hr or less, would be eligible
for up to $25,000. For those on- road diesel vehicles manufactured on or after
October 1, 2002 until September 30, 2006, the standards and incentives are
as follows: vehicles emitting 1.2 g/bhp-hr of NO
x
or less would be eligible for up to $15,000; and vehicles emitting 0.5 g/bhp-hr
or less, would be eligible for up to $25,000.
Incentives for the purchase or lease of light-duty motor vehicles for model
years 2003 through 2007 will be based on the following emission standards
and incentive amounts: Bin 4 is eligible for $1,250; Bin 3 is eligible for
$2,225; Bin 2 is eligible for $3,750; and Bin 1 is eligible for $5,000.
Senate Bill 5 established the TERP, providing financial incentives for
reducing emissions of on- road and non-road motor vehicles and equipment,
grants for the development of new emission control technology, new building
energy efficiency standards, and research and development programs. The program
is funded through newly created and increased fees and taxes established in
the bill. Specifically, 10% of the registration fee for truck trailers and
commercial vehicles statewide; 1% of the charge for each sale, lease, or rental
of new or used construction equipment statewide; 2.5% of the total charge
for every retail sale or lease of year 1996 and earlier on-road diesel motor
vehicles with a gross registered weight over 14,000 lbs; $225 fee on motor
vehicles registering for the first time in Texas, except military personnel;
and $10 fee per commercial motor vehicle inspection. The Comptroller has estimated
that approximately $133 million would be generated by these fees and taxes
and deposited into the TERP in 2002 with the amount increasing to $165 million
by 2006. The TERP fund would be used to fund the incentives and grants for
the various programs established by the bill and to pay for the administration
of the program. The collection of these fees is not part of this rulemaking.
Owners and operators that register, purchase, or lease truck trailers,
commercial vehicles, on- road diesel vehicles, construction equipment, and
out-of-state vehicles would pay the fees to fund the TERP fund. The Comptroller
has estimated that over 417,000 truck trailers and commercial vehicles, 440,000
out-of-state motor vehicles, and an unknown number of on-road diesel vehicles
and construction equipment would be affected by the newly created and increased
taxes and fees established by SB 5. Although units of state and local government
may be affected by the increased charges on vehicles and equipment, the proposed
amendments are intended to reduce the cost of acquiring cleaner- running vehicles.
The commission estimates that significant administrative costs will be
required to implement the proposed amendments. The commission was appropriated
an additional $1,125,401 in Fiscal Year (FY) 2002 and $966,402 in FY 2003
to administer the provisions of SB 5. The commission was also appropriated
an additional $103,616,840 in FY 2002 and $109,439,810 in FY 2003 out of the
TERP fund to be used as grants and incentives for the diesel emissions reduction
program. In addition to the additional appropriations, the commission was
authorized an additional five full-time equivalent personnel positions (FTE)
to develop and manage the program.
PUBLIC BENEFIT AND COSTS
Mr. Davis also determined that for each year of the first five years the
proposed amendments are in effect, the public benefit anticipated from enforcement
of and compliance with the proposed amendments would be potentially reducing
the amount of harmful emissions being emitted from motor vehicles and thereby
improving the overall air quality of the state.
The proposed amendments are intended to implement certain provisions of
SB 5, which directed the commission to establish a state-wide incentive program
for the purchase or lease of new on-road diesel vehicles and light-duty motor
vehicles that meet emission standards more stringent than those required by
federal regulations. The incentive for eligible on-road diesel vehicles will
be the reimbursement of the cost difference between purchasing a vehicle that
meets current emission standards and purchasing a vehicle that meets the more
stringent emission standards as specified in this rulemaking. The incentive
for eligible light-duty motor vehicles will be an award of a specified dollar
amount, both incentives will be based on the emission standard to which the
vehicle is certified.
All diesel-powered motor vehicles with a GVWR over 10,000 pounds that are
required to be registered for use on public highways are eligible for the
incentives if the vehicle is certified by the EPA to an emission standard
at least as stringent as specified in this rulemaking. Types of diesel- powered
vehicles that would qualify for incentives include large stepvans (such as
those used by UPS), large pickup trucks, 18-wheel trucks, and buses.
A wide range of light-duty motor vehicles would also qualify for the incentives
statewide. All light-duty motor vehicles with a GVWR less than 10,000 pounds
that are required to be registered for use on public highways are eligible
for incentives if the vehicle is certified by the EPA to an emission standard
at least as stringent as the Tier 2 - Bin 4, Bin 3, Bin 2, or Bin 1 emission
standards. Example of light-duty vehicles that would qualify for incentives
include: most cars, pickups, SUVs, and passenger vans.
Incentives for the purchase or lease of on-road diesel vehicles manufactured
on or after January 1, 2001 until September 30, 2002 shall be based on the
following emission standards: vehicles emitting 2.5 g/bhp-hr of NO
x
or less, are eligible for up to $15,000; and vehicles emitting 1.5
g/bhp-hr or less, would be eligible for up to $25,000. For those on-road diesel
vehicles manufactured on or after October 1, 2002 until September 30, 2006,
the standards and incentives are as follows: vehicles emitting 1.2 g/bhp-hr
of NO
x
or less would be eligible for up to $15,000;
and vehicles emitting 0.5 g/bhp-hr or less, would be eligible for up to $25,000.
Incentives for the purchase or lease of light-duty motor vehicles for model
years 2003 through 2007 will be based on the following emission standards
and incentive amounts: Bin 4 (0.04 grams/mile of NO
x
) is eligible for $1,250; Bin 3 (0.03 grams/mile of NO
x
) is eligible for $2,225; Bin 2 (0.02 grams/mile of NO
x
) is eligible for $3,750; and Bin 1 (0.00 grams/mile of NO
x
) is eligible for $5,000.
Senate Bill 5 established the TERP, which is funded through newly created
and increased fees and taxes established in the bill. Owners and operators
of truck trailers, commercial vehicles, on-road diesel vehicles, construction
equipment, and out-of-state vehicles would pay the fees to fund the TERP.
The Comptroller has estimated that over 417,000 truck trailers and commercial
vehicles, 440,000 out- of-state motor vehicles, and an unknown number of on-road
diesel vehicles and construction equipment would be affected by the newly
created and increased taxes and fees established by SB 5. Although individuals
and businesses will be affected by the increased charges on vehicles and equipment,
the proposed amendments are intended to reduce the cost of acquiring cleaner-running
vehicles.
The amount of incentives that can be provided annually is limited to what
the commission is appropriated from the TERP fund. The commission was appropriated
$103,616,840 for FY 2002, and $109,439,810 for FY 2003 to be used as grants
and incentives for the diesel emissions reduction program. This funding will
be used to provide incentives for the purchase or lease of new on-road diesel
vehicles and light-duty motor vehicles that exceed current emission standards
as described in this rulemaking, and to fund incentives and grants being proposed
in concurrent rulemaking. The commission does not have an estimate as to the
number and type of vehicles that will be purchased by individuals and businesses
through the proposed incentive programs.
SMALL BUSINESS AND MICRO-BUSINESS ASSESSMENT
There will be no adverse fiscal implications for small and micro-businesses
as a result of implementation of the proposed amendments. Senate Bill 5 directed
the commission to establish a state-wide incentive program for the purchase
or lease of new on-road diesel vehicles and light-duty motor vehicles that
meet emission standards more stringent than those required by federal regulations.
The incentive for eligible on-road diesel vehicles will be the reimbursement
of the cost difference between purchasing a vehicle that meets current emission
standards and purchasing a vehicle that meets the more stringent emission
standards as specified in this rulemaking. The incentive for eligible light-
duty motor vehicles will be an award of a specified dollar amount, both incentives
will be based on the emission standard to which the vehicle is certified.
Small and micro-businesses that purchase qualifying vehicles could potentially
receive up to as much as $25,000 per vehicle when purchasing on-road diesel
vehicles, and up to $5,000 per vehicle when purchasing qualifying light-duty
motor vehicles.
All diesel-powered motor vehicles with a GVWR over 10,000 pounds that are
required to be registered for use on public highways are eligible for the
incentives if the vehicle is certified by the EPA to an emission standard
at least as stringent as specified in this rulemaking. Types of diesel- powered
vehicles that would qualify for incentives include large stepvans (such as
those used by UPS), large pickup trucks, 18-wheel trucks, and buses.
A wide range of light-duty motor vehicles would also qualify for the incentives.
All light-duty motor vehicles with a GVWR less than 10,000 pounds that are
required to be registered for use on public highways are eligible for incentives
if the vehicle is certified by the EPA to an emission standard at least as
stringent as the Tier 2 - Bin 4, Bin 3, Bin 2, or Bin 1 emission standards.
A Bin is a set of emission standards applicable to exhaust pollutants. Example
of light-duty vehicles that would qualify for incentives include: most cars,
pickups, SUVs, and passenger vans.
Senate Bill 5 established the TERP which is funded through newly created
and increased fees and taxes established in the bill. Owners and operators
of truck trailers, commercial vehicles, on-road diesel vehicles, construction
equipment, and out-of-state vehicles would pay the fees to fund the TERP fund.
The Comptroller has estimated that over 417,000 truck trailers and commercial
vehicles, 440,000 out-of-state motor vehicles, and an unknown number of on-road
diesel vehicles and construction equipment would be affected by the newly
created and increased taxes and fees established by SB 5. Although there will
be small and micro-businesses affected by the increased charges, the proposed
amendments are intended to reduce the cost of acquiring cleaner-running vehicles.
The amount of incentives that can be provided annually is limited to what
the commission is appropriated from the TERP fund. The commission was appropriated
$103,616,840 for FY 2002 and $109,439,810 for FY 2003 to be used as grants
and incentives for the diesel emissions reduction program. This funding will
be used to provide incentives for the purchase or lease of new on-road diesel
vehicles and light-duty motor vehicles that exceed current emission standards
as described in this rulemaking, and to fund incentives and grants being proposed
in concurrent rulemaking. The commission does not have an estimate as to the
number and type of vehicles that will be purchased by small or micro-businesses
through the proposed incentive programs.
DRAFT REGULATORY IMPACT ANALYSIS DETERMINATION
The commission reviewed the proposed rulemaking in light of the regulatory
analysis requirements of Texas Government Code, §2001.0225, and determined
that the rulemaking does not meet the definition of a "major environmental
rule" as defined in that statute. A major environmental rule is a rule the
specific intent of which is to protect the environment or reduce risks to
human health from environmental exposure and that may adversely affect in
a material way the economy or a sector of the economy; productivity; competition;
jobs; the environment; or the public health and safety of the state or a sector
of the state. The proposed rules are intended to protect the environment or
reduce risks to human health from environmental exposure to ozone by providing
financial incentives for the purchase of cleaner on-road diesel vehicles and
light-duty motor vehicles. As such, the rules will not adversely affect in
a material way the economy, a sector of the economy, productivity, competition,
jobs, the environment, or the public health and safety of the state or a sector
of the state.
Additionally, Texas Government Code, §2001.0225 only applies to a
major environmental rule, the result of which is to: 1.) exceed a standard
set by federal law, unless the rule is specifically required by state law;
2.) exceed an express requirement of state law, unless the rule is specifically
required by federal law; 3.) exceed a requirement of a delegation agreement
or contract between the state and an agency or representative of the federal
government to implement a state and federal program; or 4.) adopt a rule solely
under the general powers of the agency instead of under a specific state law.
This proposed rulemaking action does not meet any of these four applicability
requirements because the rulemaking is specifically required by state law
in SB 5.
TAKINGS IMPACT ASSESSMENT
The commission assessed the takings impact for these proposed rules in
accordance with Texas Government Code, §2007.043. The following is a
summary of that assessment. The specific purpose of this rulemaking action
is to provide financial incentives for the purchase of cleaner on-road diesel
vehicles and light-duty motor vehicles. The rules will not burden private
real property because they implement a voluntary program and do not involve
changes to private real property. These proposed rules only affect motor vehicles
which are not considered to be private real property.
CONSISTENCY WITH THE COASTAL MANAGEMENT PROGRAM
The commission determined that the rulemaking action relates to an action
or actions subject to the Texas Coastal Management Program (CMP) in accordance
with the Coastal Coordination Act of 1991, as amended (Texas Natural Resources
Code, §§33.201 et seq.), and the commission rules in 30 TAC Chapter
281, Subchapter B, concerning Consistency with the CMP. As required by 30
TAC §281.45(a)(3) and 31 TAC §505.11(b)(2), relating to actions
and rules subject to the CMP, commission rules governing air pollutant emissions
must be consistent with the applicable goals and policies of the CMP. The
commission reviewed this action for consistency with the CMP goals and policies
in accordance with the rules of the Coastal Coordination Council, and determined
that the action is consistent with the applicable CMP goals and policies.
The CMP goal applicable to this rulemaking action is the goal to protect,
preserve, and enhance the diversity, quality, quantity, functions, and values
of coastal natural resource areas (31 TAC §501.12(1)). The specific purpose
of this rulemaking action is to provide financial incentives for the purchase
of cleaner on-road diesel vehicles and light-duty motor vehicles. No new sources
of air contaminants will be authorized and NO
x
air emissions will be reduced as a result of these rules. The CMP policy applicable
to this rulemaking action is the policy that commission rules comply with
regulations in 40 Code of Federal Regulations (CFR), to protect and enhance
air quality in the coastal area (31 TAC §501.14(q)). This rulemaking
action complies with 40 CFR 51. Therefore, in compliance with 31 TAC §505.22(e),
the commission affirms that this rulemaking action is consistent with CMP
goals and policies.
Interested persons may submit comments on the consistency of the proposed
rules with the CMP during the public comment period.
ANNOUNCEMENT OF HEARINGS
The commission will hold public hearings on this proposal on August 13,
2001 at 2:00 p.m., Houston City Hall Council Chambers, 2nd Floor, 901 Bagby,
Houston; on August 14, 2001 at 9:00 a.m., Texas Natural Resource Conservation
Commission, Building E, Room 201S, 12100 Park 35 Circle, Austin; and on August
14, 2001 at 2:00 p.m., North Central Texas Council of Governments, Transportation
Board Room, 3rd Floor, 616 Six Flags Drive, Arlington. The hearings are structured
for the receipt of oral or written comments by interested persons. Registration
will begin 30 minutes prior to each hearing. Individuals may present oral
statements when called upon in order of registration. A four-minute time limit
may be established at the hearing to assure that enough time is allowed for
every interested person to speak. Open discussion will not occur during the
hearing; however, commission staff members will be available to discuss the
proposal 30 minutes before the hearing, and will answer questions before and
after the hearing.
Persons with disabilities who have special communication or other accommodation
needs, who are planning to attend the hearing, should contact the Office of
Environmental Policy, Analysis, and Assessment at (512) 239-4900. Requests
should be made as far in advance as possible.
SUBMITTAL OF COMMENTS
Written comments may be submitted to Ms. Lola Brown, Office of Environmental
Policy, Analysis, and Assessment, MC 205, P.O. Box 13087, Austin, Texas 78711-3087;
faxed to (512) 239- 4808; or e-mailed to
terp@tnrcc.state.tx.us
. All comments should reference Rule Log Number 2001-025c-114-AI. Comments
must be received by 5:00 p.m., August 14, 2001. The latest version of these
proposed rules in Chapter 114 is available on the commission's web site at
1.
ON-ROAD DIESEL VEHICLE PURCHASE OR LEASE INCENTIVE PROGRAM
30 TAC §§114.600 - 114.602, 114.609
STATUTORY AUTHORITY
These new sections are proposed under Texas Water Code (TWC), §5.102,
which provides the commission with the general powers to carry out its duties
under TWC; §5.103, which authorizes the commission to adopt any rules
necessary to carry out the powers and duties under the provisions of TWC and
other laws of this state; and §5.105, which authorizes the commission
by rule to establish and approve all general policy of the commission. These
new sections are also proposed under Texas Health and Safety Code, Texas Clean
Air Act (TCAA), §382.017, which authorizes the commission to adopt rules
consistent with the policy and purposes of TCAA; §382.011, which authorizes
the commission to establish the level of quality to be maintained in the state's
air and to control the quality of the state's air; §382.012, which authorizes
the commission to prepare and develop a general, comprehensive plan for the
control of the state's air; and Chapter 386, which establishes the TERP. Finally,
these proposed new sections are required as part of the implementation of
SB 5, Acts of the 77th Legislature, 2001.
The proposed new sections implement TCAA, Chapter 386, and SB 5.
§114.600.Definitions.
Unless specifically defined in the TCAA or in the rules of the commission,
the terms used in this subchapter have the meanings commonly ascribed to them
in the field of air pollution control. In addition to the terms which are
defined by the TCAA, §§3.2, 101.1, and 114.1 of this title (relating
to Definitions), the following words and terms, when used in this division
shall have the following meanings, unless the context clearly indicates otherwise.
(1)
Incremental costs--The cost difference between the manufacturer's
suggested retail price (MSRP) to purchase or lease a new on-road diesel vehicle
certified by the EPA to meet the federal emission standards required at the
date of its manufacture and the MSRP to purchase or lease a comparable new
on-road diesel vehicle certified by the EPA to meet an emission standard at
least as stringent as those specified in §114.609 of this title (relating
to On-Road Diesel Vehicle Purchase or Lease Incentive Schedule).
(2)
Lease--The use and control of a new on-road diesel vehicle
in accordance with a rental contract for a term of twelve consecutive months
or more.
(3)
Lessee--A person who enters into a lease for a new on-road
diesel vehicle.
(4)
Motor vehicle--A self-propelled device designed for transporting
persons or property on a public highway that is required to be registered
under Texas Transportation Code, Chapter 502.
(5)
New on-road diesel vehicle--An on-road diesel that has
never been the subject of a first sale as defined under Title 43, Texas Administrative
Code, §17.2 (relating to Definitions), either within this state or elsewhere.
(6)
On-road diesel--An on-road diesel-powered motor vehicle
that has a gross vehicle weight rating of 10,000 pounds or more.
§114.601.Applicability.
The provisions of §§114.600, 114.602, 114.604, and 114.609
of this title (relating to Definitions; On-Road Diesel Vehicle Purchase or
Lease Incentive Requirements; On-Road Diesel Purchase or Lease Incentive Reporting
Requirements; and On-Road Diesel Vehicle Purchase or Lease Incentive Schedule)
apply statewide subject to the availability of funding.
§114.602.On-Road Diesel Vehicle Purchase or Lease Incentive Requirements.
(a)
The purchase or lease of a new on-road diesel vehicle certified
by the EPA to an emissions standard at least as stringent as those specified
under §114.609 of this title (relating to On-Road Diesel Vehicle Purchase
or Lease Incentive Schedule) shall be eligible for an incentive for the reimbursement
of incremental costs not to exceed that specified under §114.609 of this
title if the purchaser or lessee of the on-road diesel vehicle agrees to register
the vehicle in this state and meets the requirements of this section.
(b)
Only one incentive will be provided for each eligible new
on-road diesel vehicle purchased or leased in the state.
(c)
The incentive shall be provided to the lessee and not to
the purchaser if the on-road diesel vehicle is purchased for the purpose of
leasing the on-road diesel vehicle to another person.
(d)
An incentive for the lease of an eligible new on-road diesel
vehicle shall be prorated based on an eight-year lease term.
(e)
A person eligible to receive an incentive under this section
shall sign a certification that the person will operate the on-road diesel
vehicle in this state for not less than 75% of the vehicle's annual mileage
while owned or leased by the purchaser or lessee and while the purchaser or
lessee resides within the state before the reimbursement of incremental costs
can occur. The certification must contain, at a minimum:
(1)
the name, address, telephone number, and proof of identification
of the person receiving the incentive;
(2)
the purchase date, manufacturer, model, model year, vehicle
license number, vehicle identification number, gross vehicle weight rating,
current odometer reading, and certified emissions standard of the new on-road
diesel vehicle for which the incentive has been claimed under subsection (a)
of this section; and
(3)
a copy of the vehicle's registration and purchase invoice,
or lease agreement if applicable, to be attached to the certification.
§114.609.On-Road Diesel Vehicle Purchase or Lease Incentive Schedule.
(a)
The incentives provided under §114.602 of this title
(relating to On-Road Diesel Vehicle Purchase or Lease Incentive Requirements)
for new on-road diesel vehicles manufactured on or after January 1, 2001 until
September 30, 2002 shall be based on the following emission standards for
oxides of nitrogen (NO
x
) and accompanying reimbursement
amounts:
(1)
2.5 grams per brake horsepower-hour (g/bhp-hr) of NO
(2)
1.5 g/bhp-hr of NO
x
or less
is eligible for up to $25,000.
(b)
The incentives provided under §114.602 of this title
for new on-road diesel vehicles manufactured on or after October 1, 2002 until
September 30, 2006 shall be based on the following emission standards for
NO
x
and accompanying reimbursement amounts:
(1)
1.2 g/bhp-hr of NO
x
or less
is eligible for up to $15,000; and
(2)
0.5 g/bhp-hr of NO
x
or less
is eligible for up to $25,000.
This agency hereby certifies that the proposal has been
reviewed by legal counsel and found to be within the agency's legal authority
to adopt.
Filed with the Office of
the Secretary of State, on July 11, 2001.
TRD-200103990
Ramon Dasch
Acting Director, Environmental Law Division
Texas Natural Resource Conservation Commission
Earliest possible date of adoption: August 19, 2001
For further information, please call: (512) 239-0348
30 TAC §§114.610 - 114.612, 114.616, 114.618, 114.619
These new sections are proposed under Texas Water Code (TWC), §5.102,
which provides the commission with the general powers to carry out its duties
under TWC; §5.103, which authorizes the commission to adopt any rules
necessary to carry out the powers and duties under the provisions of TWC and
other laws of this state; and §5.105, which authorizes the commission
by rule to establish and approve all general policy of the commission. These
new sections are also proposed under Texas Health and Safety Code, Texas Clean
Air Act (TCAA), §382.017, which authorizes the commission to adopt rules
consistent with the policy and purposes of TCAA; §382.011, which authorizes
the commission to establish the level of quality to be maintained in the state's
air and to control the quality of the state's air; §382.012, which authorizes
the commission to prepare and develop a general, comprehensive plan for the
control of the state's air; and Chapter 386, which establishes the Texas Emission
Reduction Plan. Finally, these proposed new sections are required as part
of the implementation of SB 5, Acts of the 77th Legislature, 2001.
The proposed sections rules implement TCAA, Chapter 386, and SB 5.
§114.610.Definitions.
Unless specifically defined in the TCAA or in the rules of the commission,
the terms used in this subchapter have the meanings commonly ascribed to them
in the field of air pollution control. In addition to the terms which are
defined by the TCAA, §§3.2, 101.1, and 114.1 of this title (relating
to Definitions), the following words and terms, when used in this division
shall have the following meanings, unless the context clearly indicates otherwise.
(1)
Bin or emissions bin--A set of emissions standards applicable
to exhaust pollutants measured on the Federal Test Procedure according to
Title 40 Code of Federal Regulations, §86.1811-04.
(2)
Lease--The use and control of a new light-duty motor vehicle
in accordance with a rental contract for a term of twelve consecutive months
or more.
(3)
Lessee--A person who enters into a lease for a new light-motor
vehicle.
(4)
Light-duty motor vehicle--A motor vehicle with a gross
vehicle weight rating of less than 10,000 pounds.
(5)
Motor vehicle--A self-propelled device designed for transporting
persons or property on a public highway that is required to be registered
under Texas Transportation Code, Chapter 502.
(6)
New light-duty motor vehicle--A light-duty motor vehicle
that has never been the subject of a first sale as defined under Title 43,
Texas Administrative Code, §17.2 (relating to Definitions), either within
this state or elsewhere.
§114.611.Applicability.
The provisions of §§114.610, 114.612, 114.616, 114.618, and
114.619 of this title (relating to Definitions; Light-Duty Motor Vehicle Purchase
or Lease Incentive Requirements; Manufacturer's Report; Vehicle Emissions
Information Brochure; and Light-Duty Motor Vehicle Purchase or Lease Incentive
Schedule) apply statewide subject to the availability of funding.
§114.612.Light-Duty Motor Vehicle Purchase or Lease Incentive Requirements.
(a)
The purchase or lease of a new light-duty motor vehicle
certified by the EPA to an emissions standard at least as stringent as those
specified in §114.619 of this title (relating to Light-Duty Motor Vehicle
Purchase or Lease Incentive Schedule) shall be eligible for the incentive
specified in §114.619 of this title if listed under §114.616 of
this title (relating to Manufacturer's Report) and the purchaser or lessee
agrees to register the vehicle in this state and meets the requirements of
this section.
(b)
A person who purchases or leases a new light-duty motor
vehicle eligible for an incentive under subsection (a) of this section shall
be eligible to receive an incentive specified in §114.619 of this title
if the purchaser or lessee registers the new light-duty motor vehicle in this
state and signs a certification that the person will operate the light-duty
motor vehicle in this state for not less than 75% of the light-duty motor
vehicle's annual mileage while owned or leased by the purchaser or lessee
and while the purchaser or lessee resides within the state. The certification
must contain, at a minimum:
(1)
the name, address, telephone number, and proof of identification
of the person receiving the incentive;
(2)
the purchase date, manufacturer, model, model year, vehicle
license number (if assigned), vehicle identification number, gross vehicle
weight rating (if applicable), current odometer reading, and emissions test
group number to verify the certified emissions standard of the new light-duty
motor vehicle for which the incentive has been claimed under this section;
and
(3)
a copy of the vehicle's registration and purchase invoice,
or lease agreement if applicable, to be attached to the certification.
(c)
Only one incentive will be provided for each eligible new
light-duty motor vehicle purchased or leased in the state.
(d)
The incentive shall be provided to the lessee and not to
the purchaser if the eligible new light-duty motor vehicle is purchased for
the purpose of leasing the light-duty motor vehicle to another person.
(e)
An incentive for the lease of an eligible new light-duty
motor vehicle shall be prorated based on a four-year lease term.
§114.616.Manufacturer's Report.
(a)
A manufacturer of light-duty motor vehicles sold in the
state shall provide to the executive director, or his designee, a list of
the new light-duty motor vehicle models that the manufacturer intends to sell
in this state during that model year that are certified by the EPA to meet
the incentive emissions standards listed under §114.619 of this title
(relating to Light-Duty Motor Vehicle Purchase or Lease Incentive Schedule).
The list must contain for each light-duty motor vehicle listed, at a minimum:
(1)
the manufacturer name, model, and model year; and
(2)
the test group, evaporative/refueling family, engine displacement,
exhaust emission test fuel type, applicable emission standards, and certificate
number as listed on the Certificate of Conformity issued by the EPA.
(b)
Beginning January 1, 2002, the list required by subsection
(a) of this section shall be submitted to the executive director, or his designee,
at the beginning, but no later than July 1, of each year preceding the new
vehicle model year.
(c)
A manufacturer of new light-duty motor vehicles may supplement
the list required by subsection (a) of this section to include additional
new light-duty motor vehicle models the manufacturer intends to sell in this
state during the model year.
(d)
All new light-duty motor vehicle dealers and leasing agents
statewide shall make copies of the list required under this section available
to prospective purchasers or lessees of new light-duty motor vehicles.
§114.618.Vehicle Emissions Information Brochure.
(a)
Beginning September 1, 2002, a manufacturer of new light-duty
motor vehicles sold in the state covered under §114.616 of this title
(relating to Manufacturer's Report) shall publish and make available to its
dealers for distribution to the dealers' customers by September 1 of each
year, a brochure that includes at a minimum:
(1)
a list of eligible new light-duty motor vehicles as required
under §114.616 of this title;
(2)
the emissions and air pollution ratings, not including
fuel efficiency, for each eligible new light- duty motor vehicle listed under
paragraph (1) of this subsection based on data from the EPA Green Vehicle
Guide (
http://www.epa.gov/greenvehicles/index.htm
) and the light-duty motor vehicle Bin certification number;
(3)
an indication of where the Bin certification information
is located on each new light-duty motor vehicle listed under paragraph (1)
of this subsection and a clear explanation of how to interpret that information;
and
(4)
information on how the consumer may obtain further information
from the EPA Green Vehicle Guide.
(b)
The brochure required under subsection (a) or (d) of this
section shall be placed in a location within the dealer's showroom or sales
area so that it is clearly visible and available for distribution to the dealer's
customers.
(c)
The brochure required under subsection (a) or (d) of this
section shall have a page size no smaller than 8.5 inches by 11 inches and
the information required under subsection (a)(1) - (4) of this section shall
be printed in no less than 12-point type in a color contrasting with the intended
background.
(d)
Beginning September 1, 2002, a manufacturer of new light-duty
motor vehicles sold in this state not covered under §114.616 of this
title must publish a brochure that indicates that no eligible new light-duty
motor vehicles will be available for purchase or lease within the state from
the manufacturer for the upcoming new model year.
(e)
Beginning September 1, 2002, a manufacturer of new light-duty
motor vehicles sold in the state shall submit a copy of the brochure required
under subsection (a) or (d) of this section to the executive director, or
his designee, by September 1 of each year.
§114.619.Light-Duty Motor Vehicle Purchase or Lease Incentive Schedule.
The incentives provided under §114.612 of this title (relating
to Light-Duty Motor Vehicle Purchase or Lease Incentive Requirements) for
model years 2003 through 2007 light-duty motor vehicles shall be based on
the following emission standards and accompanying incentive amounts:
(1)
Bin 4 is eligible for $1,250;
(2)
Bin 3 is eligible for $2,225;
(3)
Bin 2 is eligible for $3,750; and
(4)
Bin 1 is eligible for $5,000.
This agency hereby certifies that the proposal has been
reviewed by legal counsel and found to be within the agency's legal authority
to adopt.
Filed
with the Office of the Secretary of State, on July 11, 2001.
TRD-200103989
Ramon Dasch
Acting Director, Environmental Law Division
Texas Natural Resource Conservation Commission
Earliest possible date of adoption: August 19, 2001
For further information, please call: (512) 239-0348
pollutants
] at the account, including those emissions from point and
fugitive sources [
during normal operations
].
The fee basis
shall include emissions during all operational conditions. For upset, maintenance,
start-up, and shutdown conditions, the basis shall include all events and
all quantities.
Although certain fugitive emissions are excluded for
applicability determination purposes under subsection (a) of this section,
all fugitive emissions must be considered for fee calculations after applicability
of the fee has been established. A maximum of 4,000 tons of each regulated
pollutant will be used for fee calculations except as provided in paragraph
(2) of this subsection. The fee for each fiscal year is set at the following
rates.
The term "normal operations" shall mean all operations
other than those documented under §101.6 of this title (relating to Upset
Reporting and Recordkeeping Requirements) or §101.7 of this title (relating
to Maintenance, Start-up and Shutdown Reporting, Recordkeeping, and Operational
Requirements).
]
Chapter 114.
CONTROL OF AIR POLLUTION FROM MOTOR VEHICLES
4.
CONSTRUCTION EQUIPMENT OPERATING LIMITATIONS
8.
HOUSTON/GALVESTON HEAVY EQUIPMENT FLEETS--COMPRESSION-IGNITION ENGINES
9.
HOUSTON/GALVESTON CONSTRUCTION EQUIPMENT OPERATING RESTRICTIONS
Subchapter K. MOBILE SOURCE INCENTIVE PROGRAMS
2.
LIGHT-DUTY MOTOR VEHICLE PURCHASE OR LEASE INCENTIVE PROGRAM
3.
DIESEL EMISSIONS REDUCTION INCENTIVE PROGRAM FOR ON-ROAD AND NON-ROAD VEHICLES