81st Texas Legislature Recap

The following is a recap of legislative priorities concerning North Texas Transportation, Air Quality, Economic Development and Long Range Water Supply.

North Texas Transportation Priorities

Adopted Policy Positions	Outcome	Notes
Achieve authority for local option transportation fees and taxes to fund additional transportation investment including regional rail	No Progress	CSSB 855 (Carona) – the Texas Local Option Transportation Act (TLOTA) – would authorize counties in the large metro areas to ask their voters to consider ballots levying a gas tax, mobility improvement fee and/or driver’s license fee to pay for certain transportation improvements. Passed in the Senate but died in the House. Senator John Carona and Representative Vicki Truitt led the charge with great skill, passion and courage. SJR 52 (Wendy Davis) proposed constitutional amendment to authorize the legislature by general law to permit counties to assess and collect a local motor fuels tax and an additional vehicle registration fee to be used for mobility improvement projects including rail and transit. Passed in the Senate, but died in the House.
Appropriate all revenue from highway user fees and taxes to fund transportation and discontinue the diversion of transportation resources to other uses	Some Progress	Several bills filed but none advanced. Senators John Carona and Jeff Wentworth and Representatives Todd Smith and Joe Deshotel were the champions on this issue. SJR 9 did pass in the Senate but died on the House calendar. There was some progress made in appropriations: $365,650,880 less diversions than the current biennium. Diversions for FY 2008-09 total $1,567,351,574 versus FY 2010-11 total of $1,194,871,342.
Index the motor fuels tax to enable it to keep pace with growth in the economy and increase the rate to restore lost purchasing power	No Progress	Bills filed in both the House and the Senate–none got out of committee. Senator John Carona and Representative Todd Smith were the champions on this issue.
Approve enabling legislation and appropriate funds to implement Proposition 12 (A Constitutional Amendment was approved by the voters in November 2007 to issue $5 billion in general obligation bonds to fund transportation.)	Some Progress	The enabling legislation, SB 263 (Carona), passed in the Senate but died in the House.
Reallocate approximately $300 million in transportation tax and fee revenue from the general fund to the mobility fund to recapitalize the Texas Mobility Fund	No Progress	After failing to pass bills in the previous two sessions, no legislator stepped forward this session to file a bill.
Appropriate approximately $200 million to capitalize the Rail Relocation and Improvement Fund.	Some Progress	Several bills were filed but none was passed. Senator Watson got SB 1923 through committee but was unable to get 21 votes to bring it up on the floor. Rep McClendon successfully amended SB 1 on the House floor to include $182 million for rail relocation and improvement and it did survive the conference committee process.
Support clean air measures that extend the TERP program through 2019, appropriate all funds collected from TERP and LIRAP fees and any unexpended fund balances, and modify LIRAP to expand participation and strengthen the Infrastructure & Maintenance (I&M) program to deter fraudulent emissions inspections	Progress	Generally succeeded with TERP & LIRAP efforts; bills were filed but not passed to strengthen the I&M program. CSSB 16 (Averitt) and SB 1425 (Williams) passed in the Senate, died on the House calendar and were amended into HB 1796, which did pass. HB 3089 (Veasey) permits the commissioners court to order any vehicle retired as a requirement of a clean vehicle program to be crushed and if practicable recycled without going through an auction or bid process. CSSB 16 extends the TERP program and fees from 2015 to 2019; increases the time that a county has to transfer LIRAP funds to an automobile dealer from 5 to 10 business days; amends the uses of LIRAP funding for local initiative projects to prohibit using the funds for purchasing local government vehicles; reduces the percentage of funding for the new technology research and development program by a half percent in order to increase the funding for the administrative costs to TCEQ and to the Energy Systems Lab to implement and administer the new technology research and development program; requires TCEQ, TRRC, and PUC to jointly participate in the federal government process for developing federal greenhouse gas reporting requirements and the federal greenhouse gas registry; requires TCEQ to provide grants for eligible projects at facilities or other stationary sources to offset the incremental costs of emissions reductions; eligible projects include advanced clean energy projects, new technology projects with a capital cost above $500 million, and electricity storage projects related to renewable energy; all facilities in the state are eligible for grants; grant contracts must include a provision allowing recapture of the grant funds if the project does not achieve the reductions set out in the grant application; the applicant must bear at least 50% of the cost of a project; preference will be given to projects that use Texas natural resources, contain an energy efficiency component, or include renewable energy; the grant provision expires in 2019. SB 1425 directs the TCEQ to establish and administer the Texas clean fleet program to encourage replacing or converting diesel-powered or gasoline-powered vehicles to alternative fuel vehicles; directs the TCEQ to establish and administer the Texas alternative fueling facilities program to provide fueling facilities in nonattainment areas for alternative fuel; makes available a portion of the Texas Emissions Reduction Plan (TERP) funding for the programs.

Other North Texas Priorities

Air Quality

POSITION: Support clean air measures that extend the TERP program through 2019, appropriate all funds collected from TERP and LIRAP fees and any unexpended fund balances, and modify LIRAP to expand participation and strengthen the I & M program to deter fraudulent emissions inspections

RESULT: Generally succeeded with TERP & LIRAP efforts. Struck out on strengthening the I&M program - bills filed but didn’t gain support. The Averitt & Williams bills summarized below died in the House but got attached to HB 1796 as amendments and passed.

• CSSB 16 (Averitt) extends the TERP program and fees from 2015 to 2019; increases the time that a county has to transfer LIRAP funds to an automobile dealer from 5 to 10 business days; amends the uses of LIRAP funding for local initiative projects to prohibit using the LIP funds for purchasing local government vehicles; requires TCEQ to provide grants for eligible projects at facilities or other stationary sources to offset the incremental costs of emissions reductions; eligible projects include advanced clean energy projects, new technology projects (that involve capital expenditures that exceed $500 million), and electricity storage projects related to renewable energy; all facilities in the state are eligible for grants; grant contracts must include a provision allowing recapture of the grant funds if the project does not achieve the reductions set out in the grant application; the applicant must bear at least 50% of the cost of a project; preference will be given to projects that use Texas natural resources, contain an energy efficiency component, or include renewable energy; the grant provision expires in 2019; reduces the percentage of funding for the new technology research and development program by a half percent in order to increase the funding for the administrative costs to TCEQ and to the Energy Systems Lab to implement and administer the new technology research and development program; requires TCEQ, TRRC, and PUC to jointly participate in the federal government process for developing federal greenhouse gas reporting requirements and the federal greenhouse gas registry requirements.
• SB 1425 (Williams) directs the TCEQ to establish and administer the Texas clean fleet program designed to encourage entities that have a fleet of vehicles to either convert diesel-powered or gasoline-powered vehicles to alternative fuel vehicles or replace them with such vehicles, including hybrid-electric, compressed natural gas, liquefied natural gas, hydrogen, or other alternative fuel vehicles, to reduce the exposure of the citizens living in nonattainment areas of the state; directs the TCEQ to establish and administer the Texas alternative fueling facilities program designed to provide fueling facilities in nonattainment areas for alternative fuel; makes available a portion of the Texas Emissions Reduction Plan (TERP) funding for the programs. .
• HB 3089 (Veasey) permits the commissioners court to order any vehicle retired as a requirement of a clean vehicle program to be crushed and if practicable recycled without going through an auction or bid process.

Economic Development

POSITION: Support increased research funding for universities in North Texas
RESULT: Success. Still trying to figure out the funding picture but definitely got at least $50 million in seed money and possibly more.

• HB 51 (Branch, McCall, Coleman, McClendon, Madden w/87 co-authors) adds a new subsection to the appropriations section of the Higher Education Coordinating Board chapter of the Texas Education Code establishing a program to advance emerging research universities and requiring the coordinating board to recommend appropriate funding levels to support the program. Passed with lots of help from Senators Zaffirini, Duncan, Shapiro, Davis and others.
• SJR 35 (Duncan, Shapiro) proposes a constitutional amendment establishing the national research university fund to enable emerging research universities to achieve national prominence as major research universities and transferring the balance of the higher education fund to the national research university fund. Technically, it died in the House but was included as an amendment to HJR 14, which did pass.

POSITION: Support creation of downtown Dallas UNT School of Law

RESULT: Success on the policy front, not so on the funding front.

• SB 956 (West) authorizes the board of regents of the University of North Texas System to establish and operate a law school in the city of Dallas financed with the issuance of up to $30 million in bonds. Passed, but with no tuition revenue bond authority. Dan Branch led the charge in the House.

POSITION: Achieve Super Bowl Support

RESULT: Success

• SB 1515 (Watson) renames two economic development programs built primarily around sporting events to the Major Events trust fund and the Event trust fund; expands the counties and cities eligible for and allowed to participate in incentive funding under the programs, and expands the scope of activities eligible for incentive funding; provides the comptroller with more jurisdiction to gauge the economic impact of different bills and changes how the state administers both programs; authorize the comptroller to provide appropriated funds up front for Major Events fund events that are projected to collect; at least $15 million in tax revenues. Passed. Brian McCall carried it in the House.

Long Range Water Supply

POSITION: Support funding for new water resource development and protect ability to develop new water supplies – maintain unique water reservoir site designations, retain eminent domain authority to acquire property for future reservoir development, and resist expansion of property rights that mandate royalty payments for water use.

RESULT: Stuck out on new funding but played defense well–didn’t get hurt by any legislative actions.

• SB 18 (Estes) was a comprehensive eminent domain reform bill that would have had minor adverse impacts on a future water supply development….it passed the Senate but died on the House Major State Calendar.
• HB 1433 (Lucio III) increases the maximum annual water quality fee from $75,000 to $200,000 for wastewater discharge permit holders and water right users through permit or contract [applies to the Consolidated Water Quality Fee and the Water Use Assessment Fee administered by TCEQ]. Passed, effective Sept 1.
• SB 2313 (Averitt) creates a water plan projects fund to assist the Texas Water Development Board in funding certain projects identified in the state and regional water plans. Passed in the Senate, died on the House General State Calendar.