The Texas Commission on Environmental Quality (TCEQ) is inviting Texans to comment on a proposed rule change that may fundamentally alter the financial dynamics of air quality management in the state.
Environmental advocates warn that the new rule could allow industries to use funds from the Texas Emissions Reduction Plan (TERP) to offset pollution fees, which they believe undermines the initiative aimed at reducing emissions from vehicles.
TERP, established in 2001, collects fees from vehicle titles, and the registration and inspection of commercial vehicles, using the revenue to fund grants that target congestion and emissions reductions.
Katherine Guerra, an advocate with the nonprofit organization Public Citizen, has voiced significant concerns regarding the move, labeling it an “accounting trick.”
Guerra argues that the TCEQ’s proposal would neither generate new revenue nor contribute to actual pollution reduction efforts, contradicting its intended goals.
The Dallas-Fort Worth and Houston-Galveston-Brazoria regions are currently classified as being in “severe nonattainment” of the Environmental Protection Agency’s 2008 ozone pollution standard.
Ozone-related air quality issues pose severe health risks, particularly for vulnerable populations, including the elderly and children with respiratory conditions such as asthma.
Although Guerra recognizes the TERP program as a beacon of hope in Texas’s air quality efforts, she criticizes the proposed rule change for potentially negating that progress.
“They’re calling it an alternative fee program,” Guerra explained. “They’re going to borrow from TERP money, which is the program that motorists pay into, to forgive an industry debt and an obligation that Congress deliberately placed on industry.”
The foundation for the industry fees comes from Section 185 of the Clean Air Act, which addresses poor air quality in major urban areas like North Texas.
Should the region fail to achieve compliance by the end of 2026, the EPA would impose fees on large polluting industries like power plants and refineries.
Despite the backlash from advocates, TCEQ officials assert that the proposal would not impose a fee on motorists.
In a statement, TCEQ spokesperson Ricky Richter emphasized that the proposed rule would allow the crediting of revenue from the existing TERP program to offset Section 185 fees owed by large industrial facilities.
According to TCEQ, TERP’s design is intended to specifically reduce emissions from vehicles, construction equipment, and other sources that contribute significantly to ozone pollution, potentially more so than large industries in the affected areas.
However, Guerra argues that this proposal effectively redirects funds from motorists’ registration fees to alleviate an industry’s financial responsibilities.
“If you’re a motorist in Texas and you’re being told this is what we’re taking this money out of your registration fee for, that is, you know, what you expect it to be used for,” she noted. “Any other use of that money I think is dishonest.”
The rule change requires public feedback and will be followed by a vote from TCEQ commissioners.
The state is under pressure to submit its rule to the EPA by November; failure to do so will allow the agency to collect the fees with interest, without returning funds to Texas.
Guerra mentioned that under the previous administration, approval of such an alternative fee program by the EPA seemed unlikely.
However, with the shift in the federal administration, there’s speculation that TCEQ may move forward with this plan without significant opposition.
Public comment meetings are scheduled, with the North Central Texas Council of Governments set to hold a session on Tuesday, June 10, followed by a TCEQ gathering on Thursday, June 12.
This situation will continue to evolve as environmental advocates and Texas residents voice their opinions on the matter.
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