Texas Register, Volume 38, Number 47, Pages 8313-8478, November 22, 2013 Page: 8,393
8313-8478 p. ; 28 cm.View a full description of this periodical.
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The commission proposes to amend 114.629 to update the list
of applicable counties in the Texas Emissions Reduction Pro-
gram (TERP) incentive program to be consistent with the latest
designation of nonattainment areas for the 2008 Ozone National
Ambient Air Quality Standard by the EPA. Subsection (a) would
be amended to add Wise County to the list of applicable counties
based on the addition of Wise County to the Dallas-Fort Worth
2008 Eight-Hour Ozone Nonattainment Area.
Fiscal Note: Costs to State and Local Government
Nina Chamness, Analyst, Strategic Planning and Assessment,
has determined that for the first five-year period the proposed
rulemaking is in effect, no significant fiscal implications are antic-
ipated for the agency as a result of administration or enforcement
of the proposed rules. The agency will use funding appropriated
out of the TERP - Account 5071 to implement the changes made
to the DERI Program in the proposed rule. For the 2014 - 2015
biennium, appropriated funding for DERI Program grants is ap-
proximately $34 million each year.
The proposed rulemaking would amend Chapter 114 to imple-
ment parts of SB 1727 and to update the list of applicable coun-
ties in the DERI Program as a result of changes to the EPA desig-
nation of nonattainment areas for the 2008 Ozone National Am-
bient Air Quality Standard. Specifically, the proposed rulemaking
would remove the maximum limits on the cost-effectiveness of a
project and add Wise County to the list of applicable counties.
If the commission establishes a cost-effectiveness limit for the
DERI Program that is higher than the original limit of $15,000
per ton of NOx reduced, state agencies and local governments
interested in applying for the program may benefit if their projects
qualify for a larger incentive amount. Applying for a grant would
be voluntary, and it is not known at this time how many state
agencies or local governments would do so. Under current rules,
the typical grant award ranges from $50,000 to $100,000. Under
the proposed changes, the average grant award could increase
depending on the limits established by the commission.
Public Benefits and Costs
Nina Chamness also determined that for each year of the first
five years the proposed rulemaking is in effect, the anticipated
public benefit will be an improvement in air quality in the 42
counties eligible to receive DERI Program grant funding since
a greater number of vehicles and equipment will become eligi-
ble for replacement or upgrade using grant funds.
The proposed rulemaking may not have a significant fiscal im-
pact on individuals unless they qualify for a DERI Program grant.
Individuals that can utilize DERI Program funding should expe-
rience the same cost benefits as a local government or large
business.
If the commission establishes a cost-effectiveness limit for the
DERI Program that is higher than the original limit of $15,000
per ton of NOx reduced, businesses interested in applying for
the program may benefit if their projects qualify for a larger in-
centive amount. Applying for a grant would be voluntary, and it
is not known at this time how many businesses would do so. Un-
der current rules, the typical grant award ranges from $50,000
to $100,000. Under the proposed changes, the average grant
award could increase depending on the limits established by the
commission.
Staff is not able to determine how many additional businesses
may become eligible to apply for a grant as a result of these
changes.Small Business and Micro-Business Assessment
No adverse fiscal implications are anticipated for small or mi-
cro-businesses as a result of the proposed rules. The proposed
rulemaking may make it easier for a small or micro-business to
qualify for a grant under the DERI Program. Small or micro-busi-
nesses are expected to experience the same benefits as a large
business. Staff is not able to determine how many additional
small and micro-businesses may become eligible to apply for a
DERI Program grant as a result of these changes.
Small Business Regulatory Flexibility Analysis
The commission has reviewed this proposed rulemaking and de-
termined that a small business regulatory flexibility analysis is not
required because the proposed rulemaking is required by state
law and does not adversely affect a small or micro-business in a
material way for the first five years that the proposed rulemaking
is in effect.
Local Employment Impact Statement
The commission has reviewed this proposed rulemaking and de-
termined that a local employment impact statement is not re-
quired because the proposed rulemaking does not adversely af-
fect a local economy in a material way for the first five years that
the proposed rulemaking is in effect.
Draft Regulatory Impact Analysis Determination
The commission reviewed the rulemaking in light of the reg-
ulatory analysis requirements of Texas Government Code,
2001.0225, and determined that this rulemaking action is not
subject to Texas Government Code, 2001.0225, because it
does not meet the definition of a "major environmental rule" as
defined in that statute. A "major environmental rule" means 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,
productivity, competition, jobs, the environment, or the public
health and safety of the state or a sector of the state.
The amended Chapter 114 rules are proposed in accordance
with SB 1727, 83rd Legislature, 2013, which amended THSC,
Chapter 386. The proposed rules add or revise eligibility require-
ments for a voluntary grant program. Because the proposed
rules place no involuntary requirements on the regulated com-
munity, the proposed rules will not adversely affect in a material
way the economy, a sector of the economy, productivity, compe-
tition, jobs, the environment, or the public health and safety of
the state or a sector of the state. In addition, the amendments
do not place additional financial burdens on the regulated com-
munity.
In addition, a regulatory impact analysis is not required because
the proposed rules do not meet any of the four applicability crite-
ria for requiring a regulatory analysis of a "major environmental
rule" as defined in the Texas Government Code. Texas Govern-
ment Code, 2001.0225, applies only to a major environmental
rule the result of which is to: 1) exceed a standard set by fed-
eral 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 rulemaking does not exceed a standard set by federal
law. In addition, this rulemaking does not exceed an expressPROPOSED RULES November 22, 2013 38 TexReg 8393
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Texas. Secretary of State. Texas Register, Volume 38, Number 47, Pages 8313-8478, November 22, 2013, periodical, November 22, 2013; Austin, Texas. (https://texashistory.unt.edu/ark:/67531/metapth379965/m1/81/: accessed July 17, 2024), University of North Texas Libraries, The Portal to Texas History, https://texashistory.unt.edu.; crediting UNT Libraries Government Documents Department.