HBA-LJP C.S.H.B. 3415 77(R) BILL ANALYSIS Office of House Bill AnalysisC.S.H.B. 3415 By: McClendon Energy Resources 4/8/2001 Committee Report (Substituted) BACKGROUND AND PURPOSE Most of the waste we generate ends up in landfills where it decomposes and produces landfill gas. According to the United States Environmental Protection Agency (EPA), landfill gas is about 50 percent methane, a potent greenhouse gas that contributes to global climate change. EPA now requires landfills of a certain size to have a gathering system to collect the methane gas and burn it on site. Instead of burning the methane gas, this gas could be used for electricity production. The City of Riverview, Michigan, which owns and operates the Riverview Land Preserve landfill in Wayne County, developed a project with the local utility, Detroit Edison, to recover and sell landfill gas to generate energy. By starting this landfill gasto- energy project, the city not only took steps to improve the global environment, it also decreased the potential hazards associated with migrating landfill gas. This project has helped to improve the community economically and environmentally, while filling a local need for clean energy. C.S.H.B. 3415 requires the Public Utility Commission and the Texas Natural Resource Conservation Commission to promote the economic development and use of landfill gas through certain activities. 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 C.S.H.B. 3415 amends the Health and Safety Code to require the Public Utility Commission (PUC) and the Texas Natural Resource Conservation Commission (TNRCC) to jointly promote the economical development and use of landfill gas through certain activities. If TNRCC requires a person to register with TNRCC before undertaking landfill gas recovery activities, the bill requires TNRCC to give priority to processing applications for registration. In a joint effort, the bill requires the PUC and TNRCC to report to the legislature by November 1 of 2002, 2004, and 2006, on the state of development of landfill gas in Texas. The bill sets forth provisions regarding the information to be contained in the report. The bill establishes that the Act expires on September 1, 2007. EFFECTIVE DATE September 1, 2001. COMPARISON OF ORIGINAL TO SUBSTITUTE C.S.H.B. 3415 modifies the original to clarify the requirement that the Texas Natural Resource Conservation Commission (TNRCC) give priority to processing applications for registration, if TNRCC requires a person to register with TNRCC before undertaking landfill gas recovery activities.