81R34452 JAM-D
By: Williams, et al. S.B. No. 1425
Substitute the following for S.B. No. 1425:
By: Legler C.S.S.B. No. 1425
A BILL TO BE ENTITLED
AN ACT
relating to the creation of an alternative fuel program to be funded
by the Texas emissions reduction plan fund.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 386.252, Health and Safety Code, is
amended by amending Subsection (a) and adding Subsection (d) 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, five
percent shall be used for the clean fleet 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.
(d) The commission may allocate unexpended money designated
for the clean fleet program to other programs described under
Subsection (a) after the commission allocates money to recipients
under the clean fleet program.
SECTION 2. Subtitle C, Title 5, Health and Safety Code, is
amended by adding Chapter 391 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, including electricity, compressed natural
gas, liquified natural gas, hydrogen, propane, or a mixture of
fuels containing at least 85 percent methanol by volume.
(2) "Commission" means the Texas Commission on
Environmental Quality.
(3) "Golf cart" has the meaning assigned by Section
502.001, Transportation Code.
(4) "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.
(5) "Incremental cost" has the meaning assigned by
Section 386.001.
(6) "Light-duty motor vehicle" has the meaning
assigned by Section 386.151.
(7) "Motor vehicle" has the meaning assigned by
Section 386.151.
(8) "Neighborhood electric vehicle" means a motor
vehicle that:
(A) is originally manufactured to meet, and does
meet, the equipment requirements and safety standards established
for "low-speed vehicles" in Federal Motor Vehicle Safety Standard
No. 500 (49 C.F.R. Section 571.500);
(B) is a slow-moving vehicle, as defined by
Section 547.001, Transportation Code, that is able to attain a
speed of more than 20 miles per hour but not more than 25 miles per
hour in one mile on a paved, level surface;
(C) is a four-wheeled motor vehicle;
(D) is powered by electricity or alternative
power sources;
(E) has a gross vehicle weight rating of less
than 3,000 pounds; and
(F) is not a golf cart.
(9) "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 the calendar year the entity purchases a new
on-road vehicle that:
(1) is certified to current federal emissions
standards;
(2) replaces a diesel-powered on-road vehicle of the
same weight classification and use; and
(3) is a hybrid vehicle or fueled by an alternative
fuel.
(b) A vehicle is not a qualifying vehicle if the vehicle:
(1) is a neighborhood electric vehicle;
(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 100
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 prioritizing
projects eligible to receive grants under this chapter. The
commission shall review and revise the criteria as appropriate.
(b) To be eligible for a grant under the program, a project
must:
(1) result in a reduction in emissions of nitrogen
oxides or other pollutants, as established by the commission, of at
least 25 percent, based on:
(A) the baseline emission level set by the
commission under Subsection (g); and
(B) the certified emission rate of the new
vehicle; and
(2) replace a vehicle that:
(A) is an on-road vehicle that has been owned,
registered, and operated by the applicant in Texas for at least the
two years immediately preceding the submission of a grant
application;
(B) satisfies any minimum average annual mileage
or fuel usage requirements established by the commission;
(C) satisfies any minimum percentage of annual
usage requirements established by the commission; and
(D) is in operating condition and has at least
two years of remaining useful life, as determined in accordance
with criteria established by the commission.
(c) As a condition of receiving a grant, the qualifying
vehicle must be continuously owned, registered, and operated in the
state by the grant recipient for at least five years from the date
of reimbursement of the grant-funded expenses. Not less than 75
percent of the annual use of the qualifying vehicle, either mileage
or fuel use as determined by the commission, must occur in the
state.
(d) The commission shall include and enforce the usage
provisions in the grant contracts. The commission shall monitor
compliance with the ownership and usage requirements, including
submission of reports on at least an annual basis, or more
frequently as determined by the commission.
(e) The commission by contract may require the return of all
or a portion of grant funds for a grant recipient's noncompliance
with the usage and percentage of use requirements under this
section.
(f) A vehicle or engine replaced under this program must be
rendered permanently inoperable by crushing the vehicle or making a
hole in the engine block and permanently destroying the frame of the
vehicle. The commission shall establish criteria for ensuring the
permanent destruction of the engine and vehicle. The commission
shall monitor and enforce the destruction requirements.
(g) The commission shall establish baseline emission levels
for emissions of nitrogen oxides for on-road vehicles being
replaced. The commission may consider and establish baseline
emission rates for additional pollutants of concern, as determined
by the commission.
(h) Mileage requirements established by the commission
under Subsection (b)(2)(B) may differ by vehicle weight categories
and type of use.
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. (a) The amount the
commission shall award for each vehicle being replaced is:
(1) 80 percent of the incremental cost for a
heavy-duty diesel engine:
(A) manufactured prior to implementation of
federal or California emission standards; and
(B) not certified to meet a specific emission
level by either the U.S. Environmental Protection Agency or the
California Air Resources Board;
(2) 70 percent of the incremental cost for a
heavy-duty diesel engine certified to meet the federal emission
standards applicable to engines manufactured in 1990 through 1997;
(3) 60 percent of the incremental cost for a
heavy-duty diesel engine certified to meet the federal emission
standards applicable to engines manufactured in 1998 through 2003;
(4) 50 percent of the incremental cost for a
heavy-duty diesel engine certified to meet the federal emission
standards applicable to engines manufactured in 2004 and later;
(5) 80 percent of the incremental cost for a
light-duty diesel vehicle:
(A) manufactured prior to the implementation of
certification requirements; and
(B) not certified to meet either mandatory or
voluntary emission certification standards;
(6) 70 percent of the incremental cost for a
light-duty diesel vehicle certified to meet federal emission
standards prior to 2004; and
(7) 60 percent of the incremental cost for a
light-duty diesel vehicle certified to meet federal emission
standards applicable after 2003.
(b) The commission may revise the standards for determining
grant amounts, as needed to reflect changes to federal emission
standards and decisions on pollutants of concern.
Sec. 391.008. EXPIRATION. This chapter expires August 31,
2017.
SECTION 3. (a) In this section:
(1) "Alternative fuel" means a fuel other than
gasoline or diesel 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.
(b) The commission shall conduct an alternative fueling
facilities study to:
(1) assess the correlation between the installation of
fueling facilities in nonattainment areas and the deployment of
fleet vehicles that use alternative fuels; and
(2) determine the emissions reductions achieved from
replacing a diesel-powered engine with an engine utilizing
alternative fuels.
(c) From the emissions reductions determined under
Subsection (b) of this section, the commission shall determine the
amount of emissions reductions which are fairly attributable to the
installation of an alternative fuel fueling facility and the
combustion of the alternative fuel in the vehicles fueled by the
alternative fuel fueling facility.
(d) In connection with the study conducted under this
section, the commission shall seek approval for credit in the state
implementation plan from the United States Environmental
Protection Agency for emissions reductions that can be:
(1) directly attributed to an alternative fuel fueling
facility; and
(2) achieved as a consequence of an alternative fuel
fueling facility encouraging the use of alternatively fueled
vehicles.
(e) The commission shall include in the commission's
biennial report to the legislature the findings of the study
conducted under this section and the status of the discussions with
the United States Environmental Protection Agency regarding credit
for emissions reductions in the state implementation plan which can
be achieved as a result of the installation of alternative fuel
fueling facilities.
(f) This section expires August 31, 2011.
SECTION 4. The Texas Commission on Environmental Quality
shall adopt rules under Section 391.005, Health and Safety Code, as
added by this Act, as soon as practicable after the effective date
of this Act.
SECTION 5. This Act takes effect September 1, 2009.