CHAPTER 384. AREA EMISSION REDUCTION CREDIT ORGANIZATIONS
HEALTH AND SAFETY CODE
TITLE 5. SANITATION AND ENVIRONMENTAL QUALITY
SUBTITLE C. AIR QUALITY
CHAPTER 384. AREA EMISSION REDUCTION CREDIT ORGANIZATIONS
Sec. 384.001. DEFINITIONS. In this chapter:
(1) "Commission" means the Texas Natural Resource Conservation
Commission.
(2) "Emission reduction credit" means a credit recognized by the
commission and the United States Environmental Protection Agency
for reductions in emissions of air pollutants.
(3) "Nonattainment area" means an area so designated within the
meaning of Section 107(d) of the federal Clean Air Act (42 U.S.C.
Section 7407).
(4) "Organization" means an area emission reduction credit
organization in this state.
(5) "Regional council of governments" means a council of
governments designated as the metropolitan planning organization
or a metropolitan planning organization in the event the council
of governments is not so designated.
Added by Acts 1993, 73rd Leg., ch. 128, Sec. 1, eff. May 11,
1993. Amended by Acts 1995, 74th Leg., ch. 76, Sec. 11.201, eff.
Sept. 1, 1995.
Sec. 384.002. PURPOSE. The purpose of an area emission
reduction credit organization shall be to promote the coexistence
of the improvement of air quality and economic development within
the region through the acquisition and distribution of emission
reduction credits. Its activities may include the use of emission
reduction credits to help meet federal reasonable further
progress requirements as well as using emission reduction credits
to facilitate the issuance of permits.
Added by Acts 1993, 73rd Leg., ch. 128, Sec. 1, eff. May 11,
1993.
Sec. 384.003. ESTABLISHMENT OF ORGANIZATION. A regional council
of governments whose area of jurisdiction contains a
nonattainment area may establish an organization on approval by
the commission of its creation petition as provided by Section
384.015.
Added by Acts 1993, 73rd Leg., ch. 128, Sec. 1, eff. May 11,
1993. Amended by Acts 1995, 74th Leg., ch. 76, Sec. 11.202, eff.
Sept. 1, 1995.
Sec. 384.004. FUNCTIONS; ORGANIZATION. An organization created
under this chapter shall:
(1) represent all counties within a nonattainment area;
(2) have a board of directors appointed in accordance with the
provisions of this chapter;
(3) have the power, authority, and limitations provided by this
chapter; and
(4) have bylaws setting forth its organization and procedures,
including provisions for conflicts of interest.
Added by Acts 1993, 73rd Leg., ch. 128, Sec. 1, eff. May 11,
1993.
Sec. 384.005. OFFSET REQUIREMENTS. All transactions of an
organization involving emission reduction credits shall be
subject to the offset requirements of the federal Clean Air Act
(42 U.S.C. Section 7401 et seq.).
Added by Acts 1993, 73rd Leg., ch. 128, Sec. 1, eff. May 11,
1993.
Sec. 384.006. LOCATION RESTRICTION. There shall not be more
than one organization within a metropolitan statistical area or
consolidated metropolitan statistical area.
Added by Acts 1993, 73rd Leg., ch. 128, Sec. 1, eff. May 11,
1993.
Sec. 384.007. STAFF. The regional council of governments may
provide staff to an organization created under this chapter.
Added by Acts 1993, 73rd Leg., ch. 128, Sec. 1, eff. May 11,
1993.
Sec. 384.008. BOARD OF DIRECTORS. (a) The board of directors
of an organization shall consist of not less than six and not
more than 21 appointed members, provided, however, that the
number of appointed members is divisible by three. The appointed
members are appointed by and may be removed for cause by the
governing body of the regional council of governments. The
appointed members serve three-year terms, with one-third of the
members' terms expiring each year. In order to stagger the terms,
the initial appointees of a board of directors shall draw lots to
determine which one-third serves for one year, which one-third
serves for two years, and which one-third serves for three years.
In addition, the board of directors shall have one ex officio
nonvoting member from the commission, designated by the executive
director of the commission to act as a liaison between the
commission and the area emission reduction credit organization.
(b) The appointed members of the board of directors shall
represent the general public, large industrial sources of
emissions, small regulated businesses, and environmental and
economic development interests. Each county in the nonattainment
area shall be represented on the board of directors, and other
areas in the region shall be represented in a manner that
reflects the relative contributions of each area to total
emissions or potential emission reductions.
Added by Acts 1993, 73rd Leg., ch. 128, Sec. 1, eff. May 11,
1993. Amended by Acts 1995, 74th Leg., ch. 76, Sec. 11.203, eff.
Sept. 1, 1995.
Sec. 384.009. REMOVAL FOR CAUSE. The regional council of
governments appointing a member of the board of directors of an
organization may remove such member for cause if the member:
(1) cannot discharge the member's duties for a substantial
portion of the term for which the member is appointed because of
illness or disability; or
(2) is absent from more than half of the regularly scheduled
meetings that the member is eligible to attend during a calendar
year unless the absence is excused by a majority vote of the
board of directors.
Added by Acts 1993, 73rd Leg., ch. 128, Sec. 1, eff. May 11,
1993.
Sec. 384.010. CONFLICT OF INTEREST. A member of a board of
directors may not vote on a matter in which the member or the
member's employer has a direct financial interest.
Added by Acts 1993, 73rd Leg., ch. 128, Sec. 1, eff. May 11,
1993.
Sec. 384.011. AUTHORITY. The board of directors of an
organization shall have independent decision-making authority and
shall not be required to have its decisions reviewed by the
governing body of the regional council of governments. A regional
council of governments shall not have any liability under any
contracts entered into by an organization.
Added by Acts 1993, 73rd Leg., ch. 128, Sec. 1, eff. May 11,
1993.
Sec. 384.012. POWERS AND DUTIES. An organization shall have the
authority to:
(1) receive and use funds;
(2) have an account at the Texas Natural Resource Conservation
Commission Air Emission Reduction Credit Bank;
(3) acquire emission reduction credits through purchase,
donation, or other means;
(4) transfer emission reduction credits by sale or other means;
(5) identify, evaluate, promote, initiate, and facilitate
potential projects and strategies to generate emission reduction
credits;
(6) provide financial assistance for projects to generate
emission reduction credits;
(7) employ staff;
(8) enter into contracts; and
(9) consider sustainability of projects.
Added by Acts 1993, 73rd Leg., ch. 128, Sec. 1, eff. May 11,
1993. Amended by Acts 1995, 74th Leg., ch. 76, Sec. 11.204, eff.
Sept. 1, 1995.
Sec. 384.013. PROHIBITIONS. An organization created under this
chapter shall have no regulatory or taxing authority.
Added by Acts 1993, 73rd Leg., ch. 128, Sec. 1, eff. May 11,
1993.
Sec. 384.014. ANNUAL REPORT. By March 1 of each year each area
organization shall file with the commission and the regional
council of governments an annual report for the preceding
calendar year. The annual report shall contain a financial
accounting, an accounting of emission reduction credits, and a
listing of all emission reduction credit transactions entered
into by the organization.
Added by Acts 1993, 73rd Leg., ch. 128, Sec. 1, eff. May 11,
1993. Amended by Acts 1995, 74th Leg., ch. 76, Sec. 11.205, eff.
Sept. 1, 1995.
Sec. 384.015. PROCEDURE FOR FILING AND APPROVAL OF PETITION.
(a) A regional council of governments may authorize by
resolution the submission of a petition to the commission
requesting the creation of an organization under this chapter.
(b) The petition shall contain sufficient information to permit
a determination of compliance with the provisions of this chapter
and shall include a copy of the proposed bylaws and a plan for
ensuring compliance with the requirements of this chapter.
(c) The commission shall review the petition for compliance with
this chapter and hold a hearing in the region to obtain public
comment on the petition.
(d) The commission shall approve the petition and creation of
the organization if, after hearing, it finds that the
requirements of this chapter are met and that such creation would
be in the public interest.
Added by Acts 1993, 73rd Leg., ch. 128, Sec. 1, eff. May 11,
1993. Amended by Acts 1995, 74th Leg., ch. 76, Sec. 11.206, eff.
Sept. 1, 1995.
Sec. 384.016. AUDIT. The commission shall have the authority to
audit any organization created under this chapter.
Added by Acts 1993, 73rd Leg., ch. 128, Sec. 1, eff. May 11,
1993. Amended by Acts 1995, 74th Leg., ch. 76, Sec. 11.207, eff.
Sept. 1, 1995.
Sec. 384.017. WITHDRAWAL OF APPROVAL. The commission shall have
the authority to withdraw its approval of an organization created
under this chapter and to dissolve such organization if it finds,
after notice and hearing, that the organization has failed to
comply with the provisions of this chapter.
Added by Acts 1993, 73rd Leg., ch. 128, Sec. 1, eff. May 11,
1993. Amended by Acts 1995, 74th Leg., ch. 76, Sec. 11.207, eff.
Sept. 1, 1995.
Sec. 384.018. DISSOLUTION. An organization created under this
chapter shall be dissolved by the commission 12 years after its
creation unless the commission approves a petition, submitted and
approved in accordance with Section 384.015, for an additional
12-year term. The commission may continue to approve successive
12-year terms for the organization as long as the need for the
organization exists.
Added by Acts 1993, 73rd Leg., ch. 128, Sec. 1, eff. May 11,
1993. Amended by Acts 1995, 74th Leg., ch. 76, Sec. 11.207, eff.
Sept. 1, 1995.