CHAPTER 22. AGRICULTURAL BIOMASS AND LANDFILL DIVERSION INCENTIVE PROGRAM
AGRICULTURE CODE
TITLE 2. DEPARTMENT OF AGRICULTURE
CHAPTER 22. AGRICULTURAL BIOMASS AND LANDFILL DIVERSION
INCENTIVE PROGRAM
For expiration of this chapter, see Section 22.009.
Sec. 22.001. POLICY AND PURPOSE. It is the policy of this state
and the purpose of this chapter to reduce air pollution, improve
air quality, protect public health, help this state diversify its
energy supply, and divert waste from landfills through new
price-support incentives to encourage the construction of
facilities to generate electric energy with certain types of
agricultural residues, forest wood waste, urban wood waste,
storm-generated biomass debris, and energy-dedicated crops.
Added by Acts 2007, 80th Leg., R.S., Ch.
1013, Sec. 1, eff. September 1, 2007.
Sec. 22.002. DEFINITIONS. In this chapter:
(1) "Co-firing biomass" means a solid fuel that:
(A) contains qualified agricultural biomass;
(B) is produced by a renewable biomass aggregator and bio-coal
fuel producer; and
(C) is used to supplement coal combustion for the generation of
electricity.
(1-a) "Diverter":
(A) means:
(i) a person or facility that qualifies for an exemption under
Section 361.111 or 363.006, Health and Safety Code;
(ii) a handler of nonhazardous industrial waste that is
registered or permitted under Chapter 361, Health and Safety
Code;
(iii) a facility that separates recyclable materials from a
municipal solid waste stream and that is registered or permitted
under Chapter 363, Health and Safety Code, as a municipal solid
waste management facility; or
(iv) a renewable biomass aggregator and bio-coal fuel producer
that operates an integrated harvesting, transportation, and solid
biofuel conversion facility for qualified agricultural biomass;
and
(B) does not include a facility that uses biomass to generate
electric energy.
(2) "Farmer" means the owner or operator of an agricultural
facility that produces qualified agricultural biomass.
(3) "Forest wood waste" includes residual tops and limbs of
trees, unused cull trees, pre-commercial thinnings, and wood or
debris from noncommercial tree species, slash, or brush.
(4) "Logger" means a harvester of forest wood waste, regardless
of whether the harvesting occurs as a part of the harvesting of
merchantable timber.
(5) "Qualified agricultural biomass" means:
(A) agricultural residues that are of a type that historically
have been disposed of in a landfill, relocated from their point
of origin and stored in a manner not intended to enhance or
restore the soil, burned in open fields in the area from which
they are derived, or burned in fields and orchards that continue
to be used for the production of agricultural goods, and
includes:
(i) field or seed crop residues, including straw from rice or
wheat, cotton gin trash, corn stover, grain sorghum (milo)
harvest residues, sugarcane bagasse, and switchgrass;
(ii) fruit or nut crop residues, including orchard or vineyard
prunings and removals;
(iii) forest wood waste or urban wood waste, including state
designated forest management cuttings and brush management
cuttings from private lands; and
(iv) agricultural livestock waste nutrients; and
(B) a crop grown and used specifically for its energy generation
value, including a crop consisting of a fast-growing tree
species.
(5-a) "Renewable biomass aggregator and bio-coal fuel producer"
means an operator of an integrated harvesting, transportation,
and fuel conversion facility that aggregates qualified
agricultural or forest biomass and produces renewable fuel
suitable for replacing coal or co-firing with coal.
(6) "Storm-generated biomass debris" means biomass-based
residues that result from a natural weather event, including a
hurricane, tornado, or flood, that would otherwise be disposed of
in a landfill or burned in the open. The term includes:
(A) trees, brush, and other vegetative matter that have been
damaged or felled by severe weather but that would not otherwise
qualify as forest wood waste; and
(B) clean solid wood waste that has been damaged by severe
weather but that would not otherwise qualify as urban wood waste.
(7) "Urban wood waste" means:
(A) solid wood waste material, other than pressure-treated,
chemically treated, or painted wood waste, that is free of
rubber, plastic, glass, nails, or other inorganic material; and
(B) landscape or right-of-way trimmings.
Added by Acts 2007, 80th Leg., R.S., Ch.
1013, Sec. 1, eff. September 1, 2007.
Amended by:
Acts 2009, 81st Leg., R.S., Ch.
1196, Sec. 1, eff. September 1, 2009.
Sec. 22.003. GRANT PROGRAM. (a) The department shall develop
and administer an agricultural biomass and landfill diversion
incentive program to make grants to farmers, loggers, diverters,
and renewable biomass aggregators and bio-coal fuel producers who
provide qualified agricultural biomass, forest wood waste, urban
wood waste, co-firing biomass, or storm-generated biomass debris
to facilities that use biomass to generate electric energy in
order to provide an incentive for the construction of facilities
for that purpose and to:
(1) promote economic development;
(2) encourage the use of renewable sources in the generation of
electric energy;
(3) reduce air pollution caused by burning agricultural biomass,
forest wood waste, urban wood waste, co-firing biomass, or
storm-generated biomass debris in open fields; and
(4) divert waste from landfills.
(b) Subject to Section 22.005, a farmer, logger, diverter, or
renewable biomass aggregator and bio-coal fuel producer is
entitled to receive a grant in the amount of $20 for each
bone-dry ton of qualified agricultural biomass, forest wood
waste, urban wood waste, co-firing biomass, or storm-generated
biomass debris provided by the farmer, logger, diverter, or
renewable biomass aggregator and bio-coal fuel producer in a form
suitable for generating electric energy to a facility that:
(1) is located in this state;
(2) was placed in service after August 31, 2009;
(3) generates electric energy sold to a third party by using
qualified agricultural biomass, forest wood waste, urban wood
waste, co-firing biomass, or storm-generated biomass debris;
(4) uses the best available emissions control technology,
considering the technical practicability and economic
reasonableness of reducing or eliminating the air contaminant
emissions resulting from the facility;
(5) maintains its emissions control equipment in good working
order; and
(6) is in compliance with its operating permit issued by the
Texas Commission on Environmental Quality under Chapter 382,
Health and Safety Code.
(c) The commissioner by rule may authorize a grant to be made
for providing each bone-dry ton of a type or source of qualified
agricultural biomass, forest wood waste, urban wood waste,
co-firing biomass, or storm-generated biomass debris in an amount
that is greater than the amount provided by Subsection (b) if the
commissioner determines that a grant in a greater amount is
necessary to provide an adequate incentive to use that type or
source of qualified agricultural biomass, forest wood waste,
urban wood waste, co-firing biomass, or storm-generated biomass
debris to generate electric energy.
(d) The Public Utility Commission of Texas and the Texas
Commission on Environmental Quality shall assist the department
as necessary to enable the department to determine whether a
facility meets the requirements of Subsection (b) for purposes of
the eligibility of farmers, loggers, diverters, and renewable
biomass aggregators and bio-coal fuel producers for grants under
this chapter.
(e) To receive a grant under this chapter, a farmer, logger,
diverter, or renewable biomass aggregator and bio-coal fuel
producer must deliver qualified agricultural biomass, forest wood
waste, urban wood waste, co-firing biomass, or storm-generated
biomass debris to a facility described by Subsection (b). The
operator of each facility described by that subsection shall:
(1) verify and document the amount of qualified agricultural
biomass, forest wood waste, urban wood waste, co-firing biomass,
or storm-generated biomass debris delivered to the facility for
the generation of electric energy; and
(2) make a grant on behalf of the department in the appropriate
amount to each farmer, logger, diverter, or renewable biomass
aggregator and bio-coal fuel producer who delivers qualified
agricultural biomass, forest wood waste, urban wood waste,
co-firing biomass, or storm-generated biomass debris to the
facility.
(f) The department quarterly shall reimburse each operator of a
facility described by Subsection (b) for grants under this
chapter made by the operator during the preceding quarter to
eligible farmers, loggers, diverters, and renewable biomass
aggregators and bio-coal fuel producers. To receive
reimbursement for one or more grants, an operator of a facility
described by that subsection must file an application with the
department that verifies the amount of the grants made by the
operator during the preceding quarter for which the operator
seeks reimbursement.
(g) The department may contract with and provide for the
compensation of private consultants, contractors, and other
persons to assist the department in administering the
agricultural biomass and landfill diversion incentive program.
(h) Notwithstanding Subsection (b)(2), a facility placed in
service before August 31, 2009, is eligible for reimbursement
under this chapter if another facility placed in operation after
August 31, 2009, is located 25 miles or less from the existing
facility.
Added by Acts 2007, 80th Leg., R.S., Ch.
1013, Sec. 1, eff. September 1, 2007.
Amended by:
Acts 2009, 81st Leg., R.S., Ch.
1196, Sec. 2, eff. September 1, 2009.
Sec. 22.004. AGRICULTURAL BIOMASS AND LANDFILL DIVERSION
INCENTIVE PROGRAM ACCOUNT. (a) The agricultural biomass and
landfill diversion incentive program account is an account in the
general revenue fund. The account is composed of:
(1) legislative appropriations;
(2) gifts, grants, donations, and matching funds received under
Subsection (b); and
(3) other money required by law to be deposited in the account.
(b) The department may solicit and accept gifts in kind,
donations, and grants of money from the federal government, local
governments, private corporations, or other persons to be used
for the purposes of this chapter.
(c) Money in the account may be appropriated only to the
department for the purpose of implementing, maintaining, and
administering the agricultural biomass and landfill diversion
incentive program.
(d) Income from money in the account shall be credited to the
account.
(e) The account is exempt from the application of Section
403.095, Government Code.
Added by Acts 2007, 80th Leg., R.S., Ch.
1013, Sec. 1, eff. September 1, 2007.
Amended by:
Acts 2009, 81st Leg., R.S., Ch.
1196, Sec. 3, eff. September 1, 2009.
Sec. 22.005. LIMITATION ON GRANT AMOUNT; SCHEDULE OF PAYMENTS.
(a) The total amount of grants awarded by operators of
facilities under Section 22.003 and by the department under
Section 22.006 during each state fiscal year may not exceed $30
million.
(b) During each state fiscal year, the department may not pay to
an operator of a facility as reimbursements under Section 22.003
or grants under Section 22.006 an amount that exceeds $6 million.
(c) On a determination that money in the agricultural biomass
and landfill diversion incentive account is insufficient to pay
reimbursements under Section 22.003 or grants under Section
22.006, the department, in consultation with interested parties,
may develop a proportionate and equitable schedule to pay the
reimbursements or grants. In developing a schedule to pay
reimbursements or grants under this subsection, the department
may consider a facility's:
(1) effect on wages and job creation or job retention;
(2) level of capital investment; and
(3) effect on the local economy and the economy of this state.
Added by Acts 2007, 80th Leg., R.S., Ch.
1013, Sec. 1, eff. September 1, 2007.
Amended by:
Acts 2009, 81st Leg., R.S., Ch.
1196, Sec. 4, eff. September 1, 2009.
Acts 2009, 81st Leg., R.S., Ch.
1196, Sec. 5, eff. September 1, 2009.
Sec. 22.006. ELIGIBILITY OF OPERATORS OF ELECTRIC ENERGY
GENERATION FACILITIES FOR GRANTS. (a) Except as provided by
Subsection (b), an operator of a facility that uses biomass to
generate electric energy is not eligible to receive a grant under
this chapter or under any other state law for the generation of
electric energy with qualified agricultural biomass, forest wood
waste, urban wood waste, or storm-generated biomass debris for
which a farmer, logger, or diverter has received a grant under
this chapter.
(b) An operator of a facility that uses biomass to generate
electric energy may receive a grant from the department under
this chapter for generating electric energy with qualified
agricultural biomass, forest wood waste, urban wood waste, or
storm-generated biomass debris that arrives at the facility in a
form unsuitable for generating electric energy and that the
facility processes into a form suitable for generating electric
energy.
(c) To receive a grant from the department under Subsection (b),
an operator of a facility must file an application with the
department that verifies the amount of qualified agricultural
biomass, forest wood waste, urban wood waste, or storm-generated
biomass debris that the facility processed into a form suitable
for generating electric energy. The department shall make grants
to eligible operators of facilities quarterly, subject to
appropriations. The provisions of this chapter governing grants
to farmers, loggers, and diverters, including the provisions
governing the amount of a grant, apply to a grant from the
department under Subsection (b) to the extent they can be made
applicable.
Added by Acts 2007, 80th Leg., R.S., Ch.
1013, Sec. 1, eff. September 1, 2007.
Sec. 22.007. RULES. The commissioner, in consultation with the
Public Utility Commission of Texas and the Texas Commission on
Environmental Quality, shall adopt rules to implement this
chapter.
Added by Acts 2007, 80th Leg., R.S., Ch.
1013, Sec. 1, eff. September 1, 2007.
Sec. 22.008. AVAILABILITY OF FUNDS. Notwithstanding any other
provision of this chapter, the department is not required to
administer this chapter or adopt rules under this chapter, and
the operator of a facility described by Section 22.003(b) is not
required to make a grant on behalf of the department, until funds
are appropriated for those purposes.
Added by Acts 2007, 80th Leg., R.S., Ch.
1013, Sec. 1, eff. September 1, 2007.
Sec. 22.009. EXPIRATION OF PROGRAM AND CHAPTER. The
agricultural biomass and landfill diversion incentive program
terminates on August 31, 2019. On September 1, 2019:
(1) any unobligated funds remaining in the agricultural biomass
and landfill diversion incentive program account shall be
transferred to the undedicated portion of the general revenue
fund; and
(2) this chapter expires.
Added by Acts 2007, 80th Leg., R.S., Ch.
1013, Sec. 1, eff. September 1, 2007.