HBA-EDN H.B. 2134 77(R)BILL ANALYSIS Office of House Bill AnalysisH.B. 2134 By: Chisum Environmental Regulation 7/18/2001 Enrolled BACKGROUND AND PURPOSE Federal law requires certain air quality standards and imposes strict deadlines and penalties for noncompliance. The Texas Natural Resource Conservation Commission recently adopted new regulations requiring more than 90% reductions in auto emissions to comply with federal law. House Bill 2134 provides the Texas Natural Resource Conservation Commission and the Texas Department of Public Safety with expanded authority and flexibility relating to vehicle emissions testing. RULEMAKING AUTHORITY It is the opinion of the Office of House Bill Analysis that rulemaking authority is expressly delegated to the Department of Public Safety in SECTION 1 (Section 382.203, Health and Safety Code); to the Texas Natural Resource Conservation Commission in SECTION 1 (Secs. 382.210 and 382.212, Health and Safety Code); to the Texas Natural Resource Conservation Commission and the Department of Public Safety in SECTION 1 (Section 382.205, Health and Safety Code); and to the Texas Natural Resource Conservation Commission and the Public Safety Commission in SECTION 1 (Section 382.209, Health and Safety Code) of this bill. ANALYSIS House Bill 2134 amends the Health and Safety and Transportation codes relating to the regulation of motor vehicle emissions and provides for certain penalties. The bill amends the Health and Safety Code to require, rather than authorize, the Texas Natural Resource Conservation Commission (TNRCC) to adopt vehicle emissions inspection and maintenance requirements for counties not subject to a specific federal requirement and authorizes a contractor to retain an appropriate portion of the fee if the program relies on privately owned or contract-operated inspection or reinspection stations (Sec. 382.202). The bill requires TNRCC, no less frequently than biennially, to review the fees assessed for vehicle emissions-related inspections and authorizes TNRCC to use part of such fees to provide incentives, including financial incentives, for participation in the testing network to ensure availability of an adequate number of testing stations. The bill requires TNRCC to use part of the fees collected for vehicle emissions-related inspections to fund low-income vehicle repair assistance, retrofit, and accelerated vehicle retirement programs and to distribute available funding to participating counties in reasonable proportion to the amount of fees collected in those counties or regions. TNRCC is authorized to set fees at the same rate for each vehicle in a county and to set different fees for different counties or regions. TNRCC is authorized to suspend the emissions inspection program as it applies to pre-1996 vehicles in an affected county if the department certifies that the number of pre-1996 vehicles in the county subject to the program is 20 percent or less of the number of those vehicles that were in the county on September 1, 2001, and an alternative testing methodology that meets or exceeds federal EPA requirements is available (Sec. 382.202). The bill provides that the inspection and maintenance program applies to any gasoline-powered vehicle that is subject to test-on-resale requirements. The bill replaces references to "Dallas, Tarrant, El Paso, or Harris County" with "an affected county." The Department of Public Safety (DPS) is authorized, by rule, to waive program requirements for certain vehicles and vehicle owners. The program does not apply to a vehicle that is registered but not operated primarily in a county or group of counties subject to a motor vehicle emissions inspection program (Sec. 382.203). The bill requires TNRCC and DPS to jointly develop a program component for enforcing vehicle emissions testing and standards by use of remote or automatic emissions detection and analysis equipment and sets forth provisions relating to inspection equipment and procedures. The bill authorizes TNRCC, in consultation with DPS, to contract with private entities to provide testing equipment, training, and related services to inspection stations in exchange for part of the testing fee. The bill requires TNRCC at least once during each year to review each such contract and to subsequently prepare a report summarizing the review and to send a copy of the report to the speaker of the house of representatives, the lieutenant governor, and the governor (Secs. 382.204 and 382.205). The bill authorizes TNRCC and DPS, by joint rule, to adopt procedures to encourage a stable private market for providing emissions testing to the public in all areas of an affected county. Such rules and procedures must ensure that approved repair facilities participating in a low-income vehicle repair assistance, retrofit, and accelerated vehicle retirement program have access to adequate testing equipment (Sec. 382.205). H.B. 2134 requires TNRCC and the Public Safety Commission, by joint rule, to establish and authorize the commissioners court of a participating county to implement a low-income vehicle repair assistance, retrofit, and accelerated vehicle retirement program. The bill requires TNRCC to provide funding for vehicle repair assistance, retrofit, and accelerated vehicle retirement programs with available funds collected from vehicle-related emissions inspections and requires TNRCC, by rule, to adopt guidelines to assist a participating county in such a program (Secs. 382.209 and 382.210). The bill requires TNRCC, by rule, to authorize the assignment, transfer, use, or other disposition of an emissions reduction credit (Sec. 382.212). The bill authorizes TNRCC, TxDOT, and the Public Safety Commission to develop incentives for voluntary participation in a vehicle emissions inspection and maintenance program (Sec. 382.216). The bill sets forth provisions regarding the administration and operation of such programs and provides that a person commits a third degree felony who sells a vehicle with intent to defraud under an accelerated vehicle retirement program (Secs. 382.209-382.216). The bill amends the Transportation Code to prohibit a county assessor-collector from issuing a title receipt, TxDOT from issuing a certificate of title, and a county assessor-collector from registering a motor vehicle unless proof that the vehicle has passed a vehicle emissions test is provided, as well as to set forth certain exemptions from these prohibitions (Secs. 501.0276, 502.1535, 548.3011, and 548.3012). The bill provides that a person commits a misdemeanor offense if the person operates, or as an owner knowingly permits another person to operate a vehicle that emits visible smoke that meets certain criteria, except when travel conditions require the downshifting or use of lower gears to maintain reasonable momentum (Sec. 547.605). The bill requires an advisory committee consisting of members appointed by TNRCC and the Public Safety Commission to advise TxDOT on rules relating to the operation of a motor vehicle emissions inspection and maintenance program and to make recommendations to TxDOT relating to the content of rules involving the operation of the program and sets forth provisions regarding the appointment, terms, compensation, and conduct of committee members (Section 548.006 and SECTION 12). The bill provides that a motor vehicle emissions inspection and maintenance program may include reregistrationbased enforcement (Sec. 548.301). The bill modifies provisions relating to excessive motor vehicle emissions and sets forth provisions relating to administrative penalties for violations of motor vehicle emissions standards (Secs. 548.306 and 548.3065). EFFECTIVE DATE September 1, 2001.