81R31382 JAM-D
By: Otto, Anchia H.B. No. 2978
Substitute the following for H.B. No. 2978:
By: Legler C.S.H.B. No. 2978
A BILL TO BE ENTITLED
AN ACT
relating to the creation of alternative fuel programs to be funded
by the Texas emissions reduction plan fund.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Sections 386.252(a) and (c), Health and Safety
Code, are amended to read as follows:
(a) Money in the fund may be used only to implement and
administer programs established under the plan and shall be
allocated as follows:
(1) for the diesel emissions reduction incentive
program, 87.5 percent of the money in the fund, of which not more
than four percent may be used for the clean school bus program, not
more than five percent may be used for the clean fleet program, not
more than two percent may be used for the alternative fueling
facilities program, and not more than 10 percent may be used for
on-road diesel purchase or lease incentives;
(2) for the new technology research and development
program, 9.5 percent of the money in the fund, of which up to
$250,000 is allocated for administration, up to $200,000 is
allocated for a health effects study, $500,000 is to be deposited in
the state treasury to the credit of the clean air account created
under Section 382.0622 to supplement funding for air quality
planning activities in affected counties, not less than 20 percent
is to be allocated each year to support research related to air
quality for the Houston-Galveston-Brazoria and Dallas-Fort Worth
nonattainment areas by a nonprofit organization based in Houston of
which $216,000 each year shall be contracted to the Energy Systems
Laboratory at the Texas Engineering Experiment Station for the
development and annual calculation of creditable statewide
emissions reductions obtained through wind and other renewable
energy resources for the State Implementation Plan, and the balance
is to be allocated each year to a nonprofit organization or an
institution of higher education based in Houston to be used to
implement and administer the new technology research and
development program under a contract with the commission for the
purpose of identifying, testing, and evaluating new
emissions-reducing technologies with potential for
commercialization in this state and to facilitate their
certification or verification; and
(3) for administrative costs incurred by the
commission and the laboratory, three percent of the money in the
fund.
(c) Money in the fund may be allocated to the clean school
bus program, the clean fleet program, and the alternative fueling
facilities program only if:
(1) the money is available for that purpose after
money is allocated for the other purposes of the fund as required by
the state implementation plan; or
(2) the amount of money deposited to the credit of the
fund in a state fiscal year exceeds the amount the comptroller's
biennial revenue estimate shows as the comptroller's estimated
amount to be deposited to the credit of the fund in that year.
SECTION 2. Subtitle C, Title 5, Health and Safety Code, is
amended by adding Chapters 391 and 392 to read as follows:
CHAPTER 391. TEXAS CLEAN FLEET PROGRAM
Sec. 391.001. DEFINITIONS. In this chapter:
(1) "Alternative fuel" means a fuel other than
gasoline or diesel fuel, other than biodiesel fuel, including
electricity, compressed natural gas, liquified natural gas,
hydrogen, propane, methanol, or a mixture of fuels containing at
least 85 percent methanol by volume.
(2) "Commission" means the Texas Commission on
Environmental Quality.
(3) "Hybrid vehicle" means a vehicle with at least two
different energy converters and two different energy storage
systems on board the vehicle for the purpose of propelling the
vehicle.
(4) "Incremental cost" has the meaning assigned by
Section 386.001.
(5) "Program" means the Texas clean fleet program
established under this chapter.
Sec. 391.002. PROGRAM. (a) The commission shall establish
and administer the Texas clean fleet program to encourage a person
that has a fleet of vehicles to convert diesel-powered vehicles to
alternative fuel or hybrid vehicles or replace them with
alternative fuel or hybrid vehicles. Under the program, the
commission shall provide grants for eligible projects to offset the
incremental cost of projects for fleet owners.
(b) An entity that places 25 or more qualifying vehicles in
service for use entirely in this state during a calendar year is
eligible to participate in the program.
Sec. 391.003. QUALIFYING VEHICLES. (a) A vehicle is a
qualifying vehicle that may be considered for a grant under the
program if during a calendar year the entity:
(1) purchases the vehicle and the vehicle is a hybrid
vehicle, or is fueled by an alternative fuel;
(2) converts the vehicle to be a hybrid vehicle or to
be fueled by an alternative fuel in a manner other than the manner
described by Subdivision (3); or
(3) replaces the vehicle's power source with a power
source that is fueled by an alternative fuel or that causes the
vehicle to be a hybrid vehicle.
(b) A vehicle is not a qualifying vehicle if the vehicle:
(1) is a neighborhood electric vehicle, as defined by
Section 551.301, Transportation Code;
(2) has been used as a qualifying vehicle to qualify
for a grant under this chapter for a previous reporting period or by
another entity; or
(3) has qualified for a similar grant or tax credit in
another jurisdiction.
Sec. 391.004. APPLICATION FOR GRANT. (a) An entity
operating in this state that operates a fleet of at least 10
vehicles may apply for and receive a grant under the program.
(b) The commission may adopt guidelines to allow a regional
planning commission, council of governments, or similar regional
planning agency created under Chapter 391, Local Government Code,
or a private nonprofit organization to apply for and receive a grant
to improve the ability of the program to achieve its goals.
(c) An application for a grant under this chapter must be
made on a form provided by the commission and must contain the
information required by the commission.
Sec. 391.005. ELIGIBILITY OF PROJECTS FOR GRANTS. (a) The
commission by rule shall establish criteria for setting priorities
for projects eligible to receive grants under this chapter. The
commission shall review and may modify the criteria and priorities
as appropriate.
(b) A qualifying vehicle must be used on a regular, daily
route and must have at least five years of useful life remaining.
(c) A qualifying vehicle must remain in the state for at
least five years. The commission by rule shall create a monitoring
program to ensure compliance under this subsection as well as
penalties against the recipient of the grant if the vehicle is
removed from the state before the fifth anniversary of the date the
grant is awarded.
Sec. 391.006. RESTRICTION ON USE OF GRANT. A recipient of a
grant under this chapter shall use the grant to pay the incremental
costs of the project for which the grant is made, which may include
the initial cost of the alternative fuel vehicle and the reasonable
and necessary expenses incurred for the labor needed to install
emissions-reducing equipment. The recipient may not use the grant
to pay the recipient's administrative expenses.
Sec. 391.007. AMOUNT OF GRANT. The amount the commission
shall award for each vehicle is:
(1) for a federally certified low-emission vehicle
fueled by an alternative fuel, 50 percent of the incremental cost;
(2) for a federally certified ultra-low-emission
vehicle or federally certified inherently low-emission vehicle
fueled by an alternative fuel, 75 percent of the incremental cost;
(3) for a federally certified
super-ultra-low-emission vehicle or federally certified
zero-emission vehicle fueled by an alternative fuel, 85 percent of
the incremental cost; or
(4) for a hybrid vehicle, 80 percent of the
incremental cost.
Sec. 391.008. EXPIRATION. This chapter expires August 31,
2017.
CHAPTER 392. TEXAS ALTERNATIVE FUELING FACILITIES PROGRAM
Sec. 392.001. DEFINITIONS. In this chapter:
(1) "Alternative fuel" means a fuel other than
gasoline or diesel fuel, other than biodiesel fuel, including
electricity, compressed natural gas, liquified natural gas,
hydrogen, propane, methanol, or a mixture of fuels containing at
least 85 percent methanol by volume.
(2) "Commission" means the Texas Commission on
Environmental Quality.
(3) "Program" means the Texas alternative fueling
facilities program established under this chapter.
Sec. 392.002. PROGRAM. (a) The commission shall establish
and administer the Texas alternative fueling facilities program to
provide fueling facilities in nonattainment areas for alternative
fuels. Under the program, the commission shall provide grants for
eligible projects to offset the cost of qualifying projects.
(b) An entity that constructs, reconstructs, or acquires an
alternative fuel refueling facility is eligible for a grant as
provided by this chapter.
Sec. 392.003. APPLICATION FOR GRANT. (a) An entity
operating in this state that constructs, reconstructs, or acquires
a facility to store, compress, charge, or dispense alternative
fuels may apply for and receive a grant under the program.
(b) The commission may adopt guidelines to allow a regional
planning commission, council of governments, or similar regional
planning agency created under Chapter 391, Local Government Code,
or a private nonprofit organization to apply for and receive a grant
to improve the ability of the program to achieve its goals.
(c) An application for a grant under this chapter must be
made on a form provided by the commission and must contain the
information required by the commission.
Sec. 392.004. ELIGIBILITY OF PROJECTS FOR GRANTS. The
commission by rule shall establish criteria for setting priorities
for projects eligible to receive grants under this chapter. The
commission shall review and may modify the criteria and priorities
as appropriate.
Sec. 392.005. RESTRICTION ON USE OF GRANT. A recipient of a
grant under this chapter shall use the grant to pay the costs of the
alternative fuel project. The recipient may not use the grant to
pay the recipient's administrative expenses.
Sec. 392.006. AMOUNT OF GRANT. The amount the commission
shall award for each alternative fueling facility is 50 percent of
the actual cost incurred to construct, reconstruct, or acquire a
facility to store, compress, charge, or dispense alternative fuels.
Sec. 392.007. LIMITATIONS. (a) An entity may not receive a
grant under this chapter in an amount that exceeds $500,000 for a
single facility.
(b) An entity receiving a grant under this chapter must make
the refueling facility accessible to persons other than the entity
at designated times during the day.
Sec. 392.008. EXPIRATION. This chapter expires August 31,
2017.
SECTION 3. The Texas Commission on Environmental Quality
shall adopt rules under Sections 391.005 and 392.004, Health and
Safety Code, as added by this Act, as soon as practicable after the
effective date of this Act.
SECTION 4. This Act takes effect September 1, 2009.