89R11158 KRM-F     By: Turner H.B. No. 3263       A BILL TO BE ENTITLED   AN ACT   relating to a program for monitoring methane emissions using funds   from the Texas emissions reduction plan.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Chapter 382, Health and Safety Code, is amended   by adding Subchapter J-1 to read as follows:   SUBCHAPTER J-1.  METHANE EMISSIONS PROGRAM          Sec. 382.471.  DEFINITION. In this subchapter, "emission"   includes any emission of gas, including an emission caused by a   leak, blow out, or accident.          Sec. 382.472.  METHANE EMISSIONS PROGRAM. (a)  In   accordance with any provision of a state implementation plan   adopted to comply with federal rules regarding emissions of methane   and associated gases under Section 111 or 112 of the federal Clean   Air Act (42 U.S.C. Section 7411 or 7412), the commission by rule   shall:                (1)  adopt standards for:                      (A)  methane emissions; and                      (B)  emissions of gases associated with methane   emissions; and                (2)  establish a program in the manner provided by this   section to identify and monitor areas of concern in this state for   high emissions of methane and gases associated with methane.          (b)  The commission may require and issue permits for   emissions of methane or other gases associated with methane if   necessary to implement this section.          (c)  The commission shall establish a continuous emissions   monitoring program in areas of this state that have substantial   infrastructure associated with emissions of methane and associated   gases, such as oil and gas facilities, wastewater treatment plants,   or pulp and paper facilities.  The program must provide for the   operation of monitoring devices that:                (1)  detect, measure, and continuously monitor methane   and associated gas levels in the atmosphere to:                      (A)  identify background emission levels;                      (B)  detect locations where emissions exceed   expected background levels; and                      (C)  measure changes in background emission   levels over time; and                (2)  provide real-time data on methane and other   associated gas emissions from facilities that are subject to the   standards adopted under Subsection (a) to rapidly detect and   quantify leaks without the need for intermittent sampling.          (d)  The commission shall:                (1)  monitor emissions of methane and other associated   gases under Subsection (c) to identify areas of concern;                (2)  operate a network of sensors in each area of   concern to monitor and identify sources of emissions of methane and   other associated gases that are not in compliance with the   standards adopted under Subsection (a); and                (3)  assist operators of facilities in areas of concern   with reducing regulated emissions and complying with federal and   state regulations related to those emissions.          (e)  The commission may contract with a third party,   including an institution of higher education or a nonprofit   organization, to operate a sensor under the program.          Sec. 382.473.  ENFORCEMENT. (a)  If the commission   identifies a facility as the source of an emission of methane or   other associated gas under Section 382.472 that violates a standard   adopted under that section, the commission shall require the   operator of the facility to repair or shut off the source of the   emission not later than the 30th day after the date the commission   identifies the facility.  The operator may not resume operations at   the facility until the facility is repaired and the commission   authorizes the resumption.          (b)  The commission shall consider an operator's compliance   with Subsection (a) when determining whether to impose a penalty   for a violation of a standard adopted under Subsection (a).          SECTION 2.  Section 386.051(b), Health and Safety Code, is   amended to read as follows:          (b)  Under the plan, the commission and the comptroller shall   provide grants or other funding for:                (1)  the diesel emissions reduction incentive program   established under Subchapter C, including for infrastructure   projects established under that subchapter;                (2)  the motor vehicle purchase or lease incentive   program established under Subchapter D;                (3)  the air quality research support program   established under Chapter 387;                (4)  the clean school bus program established under   Chapter 390;                (5)  the new technology implementation grant program   established under Chapter 391;                (6)  the regional air monitoring program established   under Section 386.252(a);                (7)  a health effects study as provided by Section   386.252(a);                (8)  air quality planning activities as provided by   Section 386.252(d);                (9)  a contract with the Energy Systems Laboratory at   the Texas A&M Engineering Experiment Station for computation of   creditable statewide emissions reductions as provided by Section   386.252(a);                (10)  the Texas clean fleet program established under   Chapter 392;                (11)  the Texas alternative fueling facilities program   established under Chapter 393;                (12)  the Texas natural gas vehicle grant program   established under Chapter 394;                (13)  other programs the commission may develop that   lead to reduced emissions of nitrogen oxides, particulate matter,   or volatile organic compounds in a nonattainment area or affected   county;                (14)  other programs the commission may develop that   support congestion mitigation to reduce mobile source ozone   precursor emissions;                (15)  the seaport and rail yard areas emissions   reduction program established under Subchapter D-1;                (16)  conducting research and other activities   associated with making any necessary demonstrations to the United   States Environmental Protection Agency to account for the impact of   foreign emissions or an exceptional event;                (17)  studies of or pilot programs for incentives for   port authorities located in nonattainment areas or affected   counties as provided by Section 386.252(a);                (18)  the governmental alternative fuel fleet grant   program established under Chapter 395;                (19)  remittance of funds to the state highway fund for   use by the Texas Department of Transportation for congestion   mitigation and air quality improvement projects in nonattainment   areas and affected counties; [and]                (20)  the Texas hydrogen infrastructure, vehicle, and   equipment grant program established under Subchapter G; and                (21)  the methane emissions program established under   Section 382.472.          SECTION 3.  Section 386.252(a), Health and Safety Code, is   amended to read as follows:          (a)  Money in the fund and account may be used only to   implement and administer programs established under the plan.   Subject to the reallocation of funds by the commission under   Subsection (h) and after remittance to the state highway fund under   Subsection (a-1), money from the fund and account to be used for the   programs under Section 386.051(b) shall initially be allocated as   follows:                (1)  four percent may be used for the clean school bus   program under Chapter 390;                (2)  eight percent total may be used between the Texas   hydrogen infrastructure, vehicle, and equipment grant program   established under Subchapter G and the new technology   implementation grant program under Chapter 391, from which at least   $1 million will be set aside for electricity storage projects   related to renewable energy and not more than $8 million may be used   for the Texas hydrogen infrastructure, vehicle, and equipment grant   program;                (3)  five percent may be used for the Texas clean fleet   program under Chapter 392;                (4)  not more than $3 million may be used by the   commission to fund a regional air monitoring program in commission   Regions 3 and 4 to be implemented under the commission's oversight,   including direction regarding the type, number, location, and   operation of, and data validation practices for, monitors funded by   the program through a regional nonprofit entity located in North   Texas having representation from counties, municipalities, higher   education institutions, and private sector interests across the   area;                (5)  7.5 percent may be used for the Texas natural gas   vehicle grant program under Chapter 394;                (6)  not more than $6 million may be used for the Texas   alternative fueling facilities program under Chapter 393, of which   a specified amount may be used for fueling stations to provide   natural gas fuel, except that money may not be allocated for the   Texas alternative fueling facilities program for the state fiscal   year ending August 31, 2019;                (7)  not more than $750,000 may be used each year to   support research related to air quality as provided by Chapter 387;                (8)  not more than $200,000 may be used for a health   effects study;                (9)  at least $6 million but not more than 15 percent   may be used by the commission for administrative costs, including   all direct and indirect costs for administering the plan, costs for   conducting outreach and education activities, and costs   attributable to the review or approval of applications for   marketable emissions reduction credits;                (10)  six percent may be used by the commission for the   seaport and rail yard areas emissions reduction program established   under Subchapter D-1;                (11)  2.5 percent may be used for the light-duty motor   vehicle purchase or lease incentive program established under   Subchapter D;                (12)  not more than $500,000 may be used by the   commission to contract with the Energy Systems Laboratory at the   Texas A&M Engineering Experiment Station annually for the   development and annual computation of creditable statewide   emissions reductions for the state implementation plan that are   obtained through:                      (A)  wind and other renewable energy resources;                      (B)  energy efficiency programs administered by   the Public Utility Commission of Texas or the State Energy   Conservation Office; or                      (C)  the implementation of advanced building   energy codes;                (13)  not more than $500,000 may be used for studies of   or pilot programs for incentives for port authorities located in   nonattainment areas or affected counties to encourage cargo   movement that reduces emissions of nitrogen oxides and particulate   matter; [and]                (14)  not more than $2 million may be used by the   commission for the methane emissions program under Section 382.472;   and                (15)  the balance is to be used by the commission for   the diesel emissions reduction incentive program under Subchapter C   as determined by the commission.          SECTION 4.  This Act takes effect September 1, 2025.