HBA-NRS S.B. 1561 77(R) BILL ANALYSIS Office of House Bill AnalysisS.B. 1561 By: Shapleigh Environmental Regulation 4/12/2001 Engrossed BACKGROUND AND PURPOSE Numerous air emission control programs implemented by the Texas Natural Resource Conservation Commission (TNRCC) on behalf of the state of Texas and the United States may benefit from the ability to encourage emissions reductions outside the United States. Senate Bill 1561 authorizes TNRCC to allow for the use of emissions reductions achieved outside the United States to satisfy otherwise applicable emissions requirements. RULEMAKING AUTHORITY It is the opinion of the Office of House Bill Analysis that this bill does not expressly delegate any additional rulemaking authority to a state officer, department, agency, or institution. ANALYSIS Senate Bill 1561 amends the Health and Safety Code to authorize the Texas Natural Resource Conservation Commission (TNRCC) to authorize the use of emissions reductions achieved outside the United States to satisfy otherwise applicable emissions reduction requirements if TNRCC finds that the emissions reductions achieved outside of the United States are surplus to requirements imposed by applicable law and are appropriately quantifiable and enforceable. The bill authorizes TNRCC to allow the use of reductions in emissions of one air contaminant to satisfy otherwise applicable requirements for reductions in emissions of another air contaminant if TNRCC finds that the substituted air contaminant emissions reductions are of equal or greater significance to the overall air quality of the area affected than reductions in emissions of the other air contaminant. The bill authorizes TNRCC to authorize substitution of emission reductions only if reductions in emissions of one air contaminant for which the area has been designated as nonattainment are substituted for reductions in emissions of another air contaminant for which the area has been designated as nonattainment and TNRCC finds that the substitution will clearly result in greater health benefits for the community as a whole than would reductions in emissions at the original facility. The bill requires TNRCC to report to the governor and the legislature regarding the implementation of the substitutions of reductions in emissions of air contaminants on or before January 3, 2003. EFFECTIVE DATE On passage, or if the Act does not receive the necessary vote, the Act takes effect September 1, 2001.